Department of Justice and Regulation

Annual Report 2014–15

2 014–15 The Department of Justice and Regulation acknowledges the Traditional Custodians of the land of Victoria, the people of the Kulin Nations, and pays respect to their Elders, both past and present. Throughout this document the term ‘Koori’ is used to refer to both Aboriginal and Torres Strait Islander peoples. Use of the terms ‘Aboriginal’ and ‘Indigenous’ are retained in the names of some programs, titles and initiatives, and, unless noted otherwise, are inclusive of both Aboriginal and Torres Strait Islander peoples. Authorised and published by the Victorian Government, 1 Treasury Place, Melbourne Printed by On Demand, Port Melbourne October 2015 © Government of Victoria This report is protected by copyright. Apart from any use permitted under the Copyright Act 1968, and those explicitly granted below, all other rights are reserved.

Accessibility If you would like to receive this publication in an accessible format please telephone (03) 8684 0300. Also published in an accessible format on www.justice.vic.gov.au Unless indicated otherwise, this work is made available under the terms of the Creative Commons Attribution 3.0 Australia licence. To view a copy of this licence, visit creativecommons.org/licenses/by/3.0/au. It is a condition of this Creative Commons Attribution 3.0 Licence that you must give credit to the original author, who is the State of Victoria. Designed by Think Productions. This report is printed on Revive Laser, an Australian-made paper. Revive Laser is certified carbon neutral under the ‘National Carbon Offset Standard’ (NCOS). No bleaching occurs in the recycling process and Revive Laser is manufactured in Australia by an ISO 14001 certified mill. Sales of Revive supports Landcare Australia. Department of Justice and Regulation Annual Report 2014–15 Contents

Justice ministers and portfolios...... 4 Secretary’s foreword...... 5 About us...... 6 Who we are...... 6 Our focus...... 6 What we do...... 6 Key facts and figures...... 7 Organisational chart (at 30 June 2015)...... 8 Our divisions...... 9 Our Regional Service Network...... 10 Report of operations...... 12 Improving community safety through policing, law enforcement and prevention activities...... 14 Supporting the rule of law...... 24 Protecting individual rights and personal identity...... 30 Promoting community safety through effective management of prisoners and offenders and provision of opportunities for rehabilitation and reparation...... 34 Minimising injury and property loss through coordinated and integrated emergency management...... 39 Promoting responsible industry behaviour and an informed community through effective regulation, education, monitoring and enforcement...... 45 Five-year financial summary and review of financial conditions...... 52 Disclosure of grants and other transfers (other than contributions by owners)...... 53 Annual financial statements...... 56 Notes to the financial statements for the financial year ended 30 June 2015...... 64 Appendices...... 142 1: Disclosure index...... 142 2:  Budget portfolio outcomes...... 144 3: Governance...... 150 4: Statutory authorities and offices by ministerial portfolio 2014–15...... 151 5:  Acts administered by the Justice Portfolio and enacted during 2014–15...... 153 6: People management...... 159 7: Environmental performance and targets...... 171 8: Statutory compliance...... 178 9: Monitoring of corrections...... 183 10: Prison service statistics...... 186 11: Correctional system performance...... 187 12: Registry of Births, Deaths and Marriages...... 188 13: Inspector-General for Emergency Management...... 189 14: Additional departmental information available on request...... 193

3 Justice ministers and portfolios The Hon Martin Pakula MP Attorney-General Minister for Racing Dear ministers Annual Report 2014–15 In accordance with the Financial Management Act 1994, I am pleased to present the Department of Justice The Hon Jane Garrett MP and Regulation Annual Report for the Minister for Emergency Services year ended 30 June 2015. Minister for Consumer Affairs, Yours sincerely Gaming and Liquor Regulation

Greg Wilson The Hon Wade Noonan MP Minister for Corrections Secretary Minister for Police Department of Justice and Regulation October 2015

Mr Ben Carroll, MP Parliamentary Secretary

There was a change of government during the reporting year. The ministers above were sworn in on 4 December 2014. Justice ministers

4 Secretary’s foreword

The 2014–15 annual report represents another passed. Bills introduced reforms in laws relating productive year for the Department of Justice and to critical community safety issues including child Regulation. abuse, sexual offences and asbestos-related diseases, as well as new power of attorney laws. There were some significant changes to the justice Further, the department responded to nearly 25,000 portfolio, including the establishment of Court calls to the Victims of Crime Helpline and delivered Services Victoria on 1 July 2014 as an independent services to over 13,500 victims through the Victims statutory body corporate to provide services and Assistance Program. facilities to Victoria’s courts, Victorian Civil and Administrative Tribunal and the Judicial College Work continued on Aboriginal Justice Agreement of Victoria. The year also marked the creation of 3 initiatives to reduce Koori over-representation in Emergency Management Victoria, the Inspector the criminal justice, and the department delivered General for Emergency Management and the Crime $5.7million in Koori community grants to support Statistics Agency, with responsibility for publication of innovative approaches to reducing or preventing Victoria’s crime statistics. engagement with the justice system. The department contributed to the delivery of a The department made over 7900 consumer affairs range of government commitments. Areas of focus assistance visits and inspections to businesses included tackling family violence and the impact across Victoria to ensure that they are meeting of illicit drugs on the community; working towards consumer law obligations. It also prepared for the the establishment of custody officer roles for police state-wide roll out of the pre-commitment scheme cells; the Human Rights Charter Review; and key for all electronic gaming machines, which will enable Emergency Management reforms. players to set time or loss limits. I am pleased to note the breadth of the services the These achievements, and the many other department delivered in 2014–15 across the state. accomplishments throughout the year, have been Prominent achievements include managing the highest made possible through the dedicated effort of more correctional population in Victoria’s history and the than 6500 departmental staff and more than 100,000 implementation of significant reforms to the parole volunteers who support our work. system in response to the Callinan review, further I extend my thanks to everyone who has contributed strengthening the management of prisoners on parole. to the department’s successful delivery of justice The department prepared 35 Bills that were passed initiatives. by Parliament, representing 59 per cent of all Bills Secretary’s foreword Secretary’s

5 About us

Who we are Our extensive service delivery responsibilities range from managing the state’s prison system to providing The Department of Justice and Regulation leads the consumer information and enforcing court warrants. delivery of justice and regulation services in Victoria. We also manage the development of a range of laws, The department’s overarching vision is for a safe, just, develop and implement policy and regulation in areas innovative and thriving Victoria. across the portfolio (such as in consumer protection, gaming, racing and emergency management) and Our focus aim to ensure that all elements of the justice system are working efficiently and effectively. The department’s focus is to provide: The department delivers its services across seven • safer communities regions throughout Victoria. There are 28 Justice • a responsive, efficient justice system Service Centres that provide or assist in providing • well-equipped emergency services services through: • responsible, balanced regulation • Community Correctional Services • excellence in service delivery. • Consumer Affairs Victoria What we do • Dispute Settlement Centre of Victoria • Regional Aboriginal Justice Advisory Committees The department leads the delivery of justice and • Registry of Births, Deaths and Marriages regulation services in Victoria by providing policy • Sheriff’s Operations and organisational management that support our • Victims Support Services. vision for a safe, just, innovative and thriving Victoria, where the rule of law is upheld and rights and The department also operates three mobile Justice responsibilities are respected. Service Centre buses across all regions to ensure that services can be accessed by those living in rural and The department has productive partnerships with regional areas. more than 70 statutory entities and enjoys the support of more than 100,000 volunteers. About us

6 Department of Justice and Regulation Annual Report 2014–15

Key facts and figures

2013–14 2014–15 Frontline services Visits to www.justice.vic.gov.au 696,242 925,294

Visits to www.consumer.vic.gov.au 2,372,794 2,942,816

Smartphone apps downloads: RentRight 10,368 16,591

Clients assisted at Justice Service Centres (average monthly) 32,712 32,634

Victims receiving a service from the Victims of Crime Helpline, Victims Assistance and Counselling 11,468 24 950 Program, and Victims Register

Consumer Affairs Victoria information and advice (by telephone) 390,349 352,369

Consumer Affairs Victoria information and advice (by written correspondence, face-to-face and 133,729 129,430 dispute assistance)

Births, Deaths and Marriages: number of certificates issued 361,043 361,877

Dispute resolution services provided by Dispute Settlement Centre of Victoria 20,216 22,311 Community safety Square metres of graffiti removed 330,100 327,900

Working with Children Check applications processed 223,900 235,000

Incidents in which Emergency Alert used 104 26*

Crime prevention grants allocated ($) 5.78 million 2.4 million Policing and infringements Warrants actioned 964,043 962,721

Infringement notices issued 3.06 million 3.3 million Corrections

Total annual daily offenders under community-based supervision 1 7350 8362

Total annual daily average number of prisoners 5800 6350 Industry Total residential tenancies bond transactions 419,135 432,569

Registration and licensing transactions undertaken 67,520 70,679

Liquor and gambling licensing activities delivered by the Victorian Commission for 46,574 45,725 Gambling and Liquor Regulation

Victorian Racing Industry Fund grants made ($) 9.52 million 25.1 million

Victorian Racing Industry Fund grants made (number) 133 153 Policy Number of Acts administered – justice and regulation portfolio 204 203

Number of justice and regulation portfolio Bills, of total Bills passed by parliament 35 (of 92 Bills) 35 (of 59 Bills)

* There were significantly fewer emergency events in Victoria in 2014–15. 1 This includes prisoners on parole and offenders on supervised court orders. It does not include unsupervised offenders.

7 About us

Organisational chart (at 30 June 2015)

The Hon Martin Pakula MP Attorney-General Minister for Racing The Hon Jane Garrett MP Minister for Emergency Services Minister for Consumer Affairs, Gaming and Liquor Regulation The Hon Wade Noonan MP Minister for Corrections Minister for Police

Mr Ben Carroll, MP Parliamentary Secretary

Greg Wilson Secretary Department of Justice and Regulation

Donald Speagle Deputy Secretary Civil Justice Peter Ewer Marisa De Cicco Executive Director Deputy Secretary North West Criminal Justice Metropolitan Area Julia Griffith Deputy Secretary Corrections Neil Robertson Deputy Secretary Jan Noblett Emergency Management Executive Director Chief Executive Emergency West Area Management Victoria Dr Elizabeth Lanyon Acting Deputy Secretary Regulation

Cate Carr Jodi Henderson Executive Director Executive Director Liquor, Gaming and Racing North Area

Carolyn Gale Deputy Secretary Service Strategy Reform Gail Moody Gabrielle Levine Deputy Secretary Executive Director Corporate Governance South Area and Infrastructure Bridgid Connors Acting Deputy Secretary People and Stakeholders

Shaun Condron Chief Finance Officer

8 Department of Justice and Regulation Annual Report 2014–15

Our divisions of a number of independent statutory agencies in the Attorney-General’s portfolio. The division provides The department’s peak committee, the Justice Senior services through the Dispute Settlement Centre Executive Group (JSEG), comprises the Secretary, deputy of Victoria and the Registry of Births, Deaths and secretaries, five executive directors, the Chief Finance Marriages. It continues to advise the Attorney-General Officer, the Executive Director of People and Culture and the on courts and judicial policy issues following the Commissioner for Corrections. creation of Court Services Victoria on 1 July 2014.

Policy and program divisions Criminal Justice Civil Justice The Criminal Justice division provides policy support and advice to the Attorney-General and Minister for Police on The Civil Justice division provides policy advice and the criminal justice system. It is responsible for community support for civil law matters (including human rights crime prevention programs, the provision of services to and native title), as well as courts and tribunal matters victims of crime, support for Victoria’s honorary justices and within the Attorney-General’s legislative program. It the Working with Children Check. It also oversees delivery also provides support to the Attorney-General as first of Victoria’s infringements and road-safety camera systems law officer of the State, and oversees the operation and the Sheriff’s Office.

Justice regions in Victoria Loddon Mallee

Hume

Grampians

Barwon South West Gippsland

North West South East Metropolitan Metropolitan

NORTH WEST CENTRAL SOUTH

9 About us

Corrections Corporate service divisions The Corrections division is responsible for the direction, Service Strategy Reform management and operation of Victoria’s adult correctional system. It sets standards, policy and strategy for the The Service Strategy Reform division delivers enhanced management of prisoners and offenders and has staff at economic and data modelling and analysis, supports regions more than 50 Community Correctional Services (CCS) in delivering place-based initiatives, drives further integration of locations, 11 public prisons and one transition centre and services, tackles over-representation of Koories in the justice oversees two privately operated prisons. Justice Health system, and leads and manages divisional, regional and sets the policy and standards for health care in prisons. Victorian Government transformation and reform projects. It oversees the health care delivered across the prison system and contract manages the public prisons’ health Corporate Governance and Infrastructure service providers. The Corporate Governance and Infrastructure division provides governance of key public accountability Emergency Management Victoria requirements of the department. These include Public Emergency Management Victoria (EMV) began on 1 July Accounts and Estimates Committee responses, 2014. EMV strengthens community safety by providing procurement, budget paper submissions, corporate policy advice across the emergency management sector. and performance reporting, environmental performance It provides policy support and advice to the Minister for reporting, risk, audit, fraud prevention and delivery of major Emergency Services and advises on investment priorities infrastructure, procurement and ICT projects. The division and effective resource use to maintain and build the also delivers a range of shared services for the portfolio, individual and combined capacity and capabilities of including ICT services, accommodation planning and Victoria’s emergency service agencies. It focuses on infrastructure. effective governance, interoperability and building the capacity of paid staff and volunteers to contribute to People and Stakeholders emergency management. The People and Stakeholders division is responsible for leadership on workforce matters, including human resource Regulation policy and strategy, recruitment, development and retention This division provides policy advice and support to of staff, and occupational health and safety management. the Minister for Consumer Affairs, Liquor and Gaming Its functions include coordination of Cabinet and Regulation and combines consumer protection regulation Parliamentary processes, Executive Council appointments with key assurance functions, including the Office of and advice, Freedom of Information, information privacy, Correctional Services Review and the Inspector-General records management policy and administration of the for Emergency Management. Business units in the department’s electronic records. The division also provides division share best practice regulatory, monitoring and communication advice and manages community education review approaches, systems and resources to provide and awareness campaigns. for improved system outcomes in consumer protection, correctional services and emergency management. Office of the Secretary The division provides administrative support to several This office supports the Secretary to discharge his statutory offices and bodies, including the Business responsibilities as the head of the department and in relation Licensing Authority, the Motor Car Traders Claims to any non-delegable duties. It also comprises teams Committee and the Residential Tenancies Bond Authority, providing financial services and the regional support unit. as well as supporting Consumer Affairs ministerial advisory roles. Our Regional Service Network

Liquor, Gaming and Racing The Regional Service Network comprises four areas that cover the department’s seven operational regions across This division provides policy advice and support to Victoria. the Minister for Consumer Affairs, Gaming and Liquor Regulation and the Minister for Racing on liquor, gambling Central Area and racing portfolio issues. The division develops and implements legislation and regulation and provides advice North West Metropolitan Area on current and emerging issues affecting the portfolios. This area includes Melbourne’s central business district as It also manages a range of racing industry initiatives and well as its northern suburbs of Broadmeadows, Carlton, provides secretarial and policy support to the Responsible Collingwood, Greensborough, Heidelberg, Reservoir, Gambling Ministerial Advisory Council, the Liquor Control Essendon, Footscray, Melton, Sunshine and Werribee. Advisory Council and the Live Music Roundtable. The division works closely with the Victorian Commission Justice Service Centres (JSCs) are located at for Gambling and Liquor Regulation and the Victorian Broadmeadows, Carlton, Werribee, Melton and Sunshine. Responsible Gambling Foundation. Community Correctional Services (CCS) reporting locations

10 Department of Justice and Regulation Annual Report 2014–15

include all JSCs and Greensborough, Heidelberg, Reservoir Justice Service Centres (JSCs) are located in Dandenong, and the Neighbourhood Justice Centre in Collingwood. The Box Hill, Frankston, Moorabbin, Lilydale and Ringwood; area also has maximum-security prisons, which include each provides CCS reporting. Melbourne Assessment Prison, the Dame Phyllis Frost Centre for women, the Metropolitan Remand Centre, the Gippsland region privately operated Port Phillip Prison and the minimum- Located in Victoria’s south-east, this region includes the security Judy Lazarus Transition Centre. Development of a major centres of Bairnsdale, Morwell, Sale and Traralgon. new Public Private Partnership 1000-bed medium-security Justice Service Centres (JSCs) are located in Morwell, male prison is underway at Ravenhall. Bairnsdale, Sale and Korumburra, with co-located services in Warragul, Orbost and Wonthaggi. Wulgunggo Ngalu West Area Learning Place in Won Wron supports up to 18 Koori men Barwon South West region undertaking Community Correction Orders. The region Located in Victoria’s south-west, this region includes also has Fulham Correctional Centre, a privately operated the major regional centres of Geelong, Portland and medium-security prison. CCS reporting occurs at all JSCs. Warrnambool. North Area Justice Service Centres (JSCs) are located at Geelong and Warrnambool with CCS reporting locations at JSCs and Loddon Mallee region Hamilton, Portland and Colac. Two of the state’s prisons, Located in Victoria’s north-west, this region includes the maximum-security Barwon Prison and the medium- the major centres of Bendigo, Swan Hill and Mildura. security Marngoneet Correctional Centre, are located in Geographically, it is the largest of the eight operational this region. regions.

Grampians region Justice Service Centres (JSCs) are located in Bendigo, Mildura and Swan Hill. CCS reporting locations are Located in Victoria’s mid-west this region includes the major at all JSCs as well as in Kyneton, Kerang, Robinvale, regional centres of Ararat, Ballarat and Horsham. Castlemaine, Maryborough, Echuca and Ouyen. The region Justice Service Centres (JSCs) are located at Ballarat also has the female minimum-security Tarrengower Prison and Horsham. CCS reporting locations are at JSCs and and Loddon Prison (mixed restricted minimum and medium at Stawell, Ararat and St Arnaud. The region also has security). two prisons, the medium-security Hopkins Correctional Centre and the minimum-security Langi Kal Kal prison, and Hume region Corella Place, a residential facility that provides supported The Hume region is located in Victoria’s north-east and accommodation for serious sex offenders on post-sentence includes the major centres of Wangaratta, Wodonga and orders. Shepparton. Justice Service Centres (JSCs) are located at Wangaratta, South Area Shepparton, Seymour and Wodonga. CCS reporting South East Metropolitan region locations are at all JSCs, as well as Myrtleford, Benalla, This region, which covers a large area from the inner city to Cobram and Mansfield. The region has two minimum- the Mornington Peninsula, includes Box Hill, Dandenong, security prisons, Dhurringile Prison and the Beechworth Dromana, Frankston, Lilydale, Moorabbin, Port Melbourne, Correctional Centre. Ringwood and St Kilda.

11 Report of operations

The report of operations presents the progress made objectives. Environmental factors and other issues also by the department towards achieving its departmental impact changes in indicators. objectives. It comprises: Outputs • descriptions of key initiatives and achievements on Outputs are the goods and services provided to departmental strategic priorities government and community by the department, its • a report on progress towards achieving objectives agencies and statutory bodies. Output performance through indicators is provided by reporting actual outputs against targets • report on output performance. specified for the department in the 2014–15 Victorian The table below shows the department’s objectives, its Budget. Output performance tables appear at the end linked indicators and outputs. of each output. Indicators A specific explanation is provided for significant variations between the 2014–15 targets and actuals, Indicators have been selected to provide an indication particularly where performance was five per cent more of how the department is progressing in achieving its or less than the target.

Departmental objectives, indicators and outputs

Departmental objectives Indicators Outputs

Improving community • Community feelings of safety during the day • Policing services safety through policing, law • Community feelings of safety during the night • Infringement and orders management enforcement and prevention • Road deaths (rate per 100,000 registered • Enhancing community safety activities vehicles)

Supporting the rule of law • Total finalisations (national ranking) • Access to justice and support services • Law reform projects completed • Public Prosecutions

Protecting individual rights • Percentage of complaints finalised within • Protecting community rights and personal identity 12 months (Victorian Equal Opportunity and Human Rights Commission) • Accuracy of the births, deaths and marriages register

Promoting community • Escapes from secure perimeter, corrective • Prisoner supervision and support safety through effective facilities • Community-based offender supervision management of prisoners and • Percentage of community correction orders offenders and provision of completed opportunities for rehabilitation and reparation

Minimising injury and property • Property loss from structure fire (current year, • Emergency management capability loss through a coordinated dollars per person)1 and integrated emergency • Rate of deaths from emergency events response (per million people)

Promoting responsible • Percentage of licensed venues with rating • Gambling and liquor regulation and industry behaviour and that is greater than three stars racing industry development an informed community • Responsive Gambler’s Help services • Promoting and protecting consumer through effective regulation, • Wagering turnover on Victorian racing as a interests education, monitoring and proportion of the national market enforcement • Supporting informed and responsible consumers and traders

1 ‘Property loss from structure fire—current year, dollars per person (firefighter assessed property loss)’ was discontinued as a ROGS measure in 2015. ‘Total value of fire insurance claims, per person in the population’ is used as a proxy for reporting against this measure. Report of operations

12 Department of Justice and Regulation Annual Report 2014–15

Changes to the department in 2014–15 2014, it is no longer responsible for this objective, due to the establishment of Court Services Victoria (CSV), an Changes, made to the departmental objectives and independent statutory body corporate that is responsible output structure, took effect during the 2014–15 year. The for the administrative services and facilities to support the department was previously responsible for achieving the performance of Victoria’s courts, the Victorian Civil and objective of ‘Improving the efficiency of court processes’ Administrative Tribunal (VCAT) and the Judicial College of and its related output ‘Court Services’. Effective 1 July Victoria (JCV).

Departmental objective removed Outputs transferred Indicators transferred Change Improving the efficiency of court • Courts • Efficient clearance of criminal Transferred due to establishment processes caseload (finalisations/ of Court Services Victoria, lodgements) effective 1 July 2014. • Efficient clearance of civil caseload (finalisations/ lodgements)

As a consequence of machinery of government decisions announced by the government on 4 December 2014, and which took effect on 1 January 2015, the Department of Justice became the Department of Justice and Regulation (the department). Effective 1 January 2015, the objective ‘Promoting and monitoring integrity within the public sector’, along with its related outputs and indicators, were transferred to the Department of Premier and Cabinet. Departmental objective transferred Outputs transferred Indicators transferred Change Promoting and monitoring • Anti-corruption and public • Anti‑corruption and Freedom Transferred to Department of integrity within the public sector sector integrity of Information (FOI) education Premier and Cabinet, effective • Freedom of Information activities (FOI and IBAC) 1 January 2015. Commissioner Amendments were made to the objective ‘Protecting individual rights and encouraging community participation’. Outputs for privacy regulation and the State electoral roll and elections and associated indicators were also transferred to the Department of Premier and Cabinet, effective 1 January 2015. Departmental objective affected Outputs transferred Indicators transferred Change Protecting individual rights • Privacy regulation • Percentage of complaints Transferred to Department of and encouraging community • State electoral roll and finalised within 12 months Premier and Cabinet, effective participation elections (Privacy) 1 January 2015. • Proportion of voters enrolled out of total eligible

As a result, of this change the objective was reworded to ‘Protecting individual rights and personal identity’. The table below details the department’s amended objective, its remaining output and indicators. Department objective (from 1 January 2015) Output Indicators • Percentage of complaints finalised within 12 months (Victorian Protecting individual rights and • Protecting community rights Equal Opportunity and Human Rights Commission) personal identity • Accuracy of the births, deaths and marriages register

13 Improving community safety through policing, law enforcement and prevention activities

The aim of this objective is to provide a safe and Community feelings of safety secure environment for the Victorian community. ‘Community feelings of safety’ is defined by two It focuses on activities that enable Victorians to separate measures: undertake their lawful pursuits confidently, safely and without fear of crime. We do this through: • the proportion of people who felt ‘safe’ or ‘very safe’ at home during the night • support for Victoria Police in the provision of policing • the proportion of people who felt ‘safe’ or ‘very and law enforcement services that aim to prevent, safe’ in public places, including ‘walking locally’ detect, investigate and prosecute crime, and promote and travelling on public transport during the day a safer community and safer road user behaviour and at night. • facilitation of crime prevention activities aimed at enhancing community safety through strategies to Community feelings of safety reflect the department’s support local community engagement efforts to improve safety and provide a safe and secure environment for the community. A high or • delivery of Working with Children Checks that aim increasing proportion of people who felt safe or very to reduce the incidence of sexual and physical safe is desirable. offences against children by allowing only Victorian adults who pass the check to work with children Community feelings of safety during the day • fairly and effectively enforcing judicial fines, court Feelings of safety during the day have remained orders and warrants, and processing traffic and relatively stable in Victoria over the last four other infringement notices. years. In 2013–14, 90.2 per cent of Victorians ‘Improving community safety through policing, law surveyed felt safe or very safe when walking alone enforcement and prevention activities’ contributes to in their neighbourhood during the day. This result key government priorities, including: represented a 1.5 percentage points difference • funding programs to prevent crime in our from the national average (91.7 per cent) and a 1.6 communities percentage points decrease from the 2012–13 result (91.8 per cent). • continuing efforts on road safety, and modernising and upgrading the enforcement system 1 In 2013–14, 62 per cent of Victorians felt safe or very • funding police to enhance community safety. safe on public transport during the day. This result was above the national average of 59.3, and represented Progress towards achieving this objective a 0.3 percentage points increase from 2012–13 (61.7 per cent) (see Figure 1). In 2014–15, the department reported progress against this objective using the objective indicators Figure 1: Victorians surveyed who felt safe during the identified below, as well as through its report on output day: walking alone in their neighbourhood and on performance located at the end of each output. public transport, 2010–11 to 2013–14.

Walking alone in the neighbourhood Outputs On public transport • Enhancing community safety 100.0 • Policing services 90.0 • Infringement and orders management 80.0 Objective indicators • Community feelings of safety during the day 70.0 • Community feelings of safety during the night 60.0 Per cent (%) • Road deaths (rate per 100,000 registered vehicles) 50.0

40.0 The latest datasets available for the measures 30.0 ‘Community safety during the day and during the 2010–11 2011–12 2012–13 2013–14 night’ and ‘Road deaths per 100,000 registered Years vehicles’ are 2013–14 data sourced from the Report The percentage of Victorians surveyed who reported on Government Services (ROGS) 2015 Police feeling safe or very safe during the night shows Services dataset. minimal variation over four years across the three indicators of feelings of safety: at home alone, walking alone in the neighbourhood and on public transport. 1 Modernising and upgrading the enforcement system in Victoria will be achieved through the introduction of a new Report of operations fines recovery model established under theFines Reform Act 2014 (the Act).

14 Department of Justice and Regulation Annual Report 2014–15

The percentage of Victorians surveyed who felt safe or The rate of road deaths is also influenced by a number very safe at home alone during the night shows an upward of other factors, such as the condition of roads, driver positive trend, from 88.8 per cent in 2012–13 to 90.4 per education and media campaigns.3 cent in 2013–14. The national average for this measure in In 2013–14, there was a total of 256 road deaths in Victoria. 2013–14 was 89 per cent, 1.4 percentage points below the The trend in road deaths in Victoria shows a decrease over Victorian result. the past four years, from 7.0 deaths per 100,000 registered In 2013–14, 50.2 per cent of Victorians surveyed felt safe vehicles in 2010–11 to 5.7 deaths per 100,000 registered or very safe walking alone in their neighbourhood during the vehicles in 2013–14. This represented the second lowest night. This represents a slight decrease from 2012–13 (51.2 rate of road deaths of all states and territories in Australia per cent) and is 0.6 percentage points below the national and was below the national average (6.4 deaths per 100,000 average (50.8 per cent). registered vehicles), (see Figure 3).

Feelings of safety on public transport during the night in Figure 3: Rate of road deaths in Victoria, 2010–11 to Victoria was reported at 23.5 per cent, slightly below the 2013–14 2012–13 result (24.2 per cent) and below the national average (24.3 per cent). Road deaths in Victoria Perceptions of safety on public transport are influenced by a 8.0 number of factors external to the control of police services, 7.0 such as the frequency and types of public transport (such 6.0 as trains, buses, ferries and trams) in each jurisdiction that is availability and density, 2 (see Figure 2). 5.0 4.0 Figure 2: Victorians surveyed who felt safe during the 3.0 night: at home alone, walking alone in their neighbourhood and on public transport, 2010–11 to 2013–14. 2.0

Per 100,000 registered vehicles 1.0 At home alone 0 Walking alone in the neighbourhood 2010–11 2011–12 2012–13 2013–14 On public transport Years 100.0 90.0 Victoria Police continues to work closely with the Victorian 80.0 community and road safety partners to reduce road trauma 70.0 and create safer Victorian roads through key strategies, 60.0 including the Victoria Police Road Safety Strategy 2013–18, 50.0 and the Safer Country Roads Plan 2014–18. 40.0 Per cent (%) 30.0 Output: Enhancing community safety 20.0 10.0 Initiatives to prevent, reduce and respond to 0 family violence 2010–11 2011–12 2012–13 2013–14 Family violence is a whole-of-government priority. There Years were more than 68,000 incidents of family violence reported Road deaths to Victoria Police in 2014, an increase of more than 70 per cent from 2010. It is the leading contributor to death, injury Road deaths per 100,000 registered vehicles and disability in Victorian women aged 15 to 44 years. Road deaths per 100,000 registered vehicles is used Programs that prevent and respond to family violence as an indicator of the department’s objective to improve are delivered across the justice system, including through community safety through road safety. A low or decreasing crime prevention programs, policing, victims services, rate of road deaths per 100,000 registered vehicles is prosecutions and courts. desirable. In 2014–15, the Victorian Government established ‘Road deaths’ is defined as the number of road deaths the Royal Commission into Family Violence (the per 100,000 registered vehicles. One aim of policing is to Commission). The department has contributed to the contribute to a reduction in road crashes and related road preparation of the whole-of-government submission to deaths and hospitalisations. the Commission, has responded to requests for data

2 Source: Report on Government Services 2015, Chapter 6 ‘Police 3 Source: Report on Government Services 2015, Chapter 6 ‘Police Services’, page 6.23 – Box 6.8, Perceptions of Safety. Services’, page 6.47 – Box 6.17, Road Deaths.

15 Improving community safety through policing, law enforcement and prevention activities

and has prepared extensive witness statements and Family violence programs for prisoners and offenders supporting materials for department witnesses appearing The department delivers a range of initiatives within before the Commission. The department, supported correctional services to address family violence. The by the Victorian Government, will implement the Royal key focus of these initiatives is to strengthen perpetrator Commission recommendations after the Commission accountability through men’s behaviour change programs. reports in February 2016. In 2014–15, the department delivered: Throughout the year, the department delivered other initiatives to prevent, reduce and respond to family • three Domestic Abuse Programs to family violence violence, including the following. perpetrators within prison and community correctional settings – assisting approximately 26 offenders and Community crime prevention programs also offering simultaneous support and safety planning Throughout the year the department continued to support services to current and previous partners of program the delivery of 12 projects under the Reducing Violence participants. In April 2015, a new clinical intervention against Women and their Children grants program, which called Changeabout (for family violence perpetrators in focuses on primary prevention and early intervention prison and community correctional settings) replaced initiatives. the Domestic Abuse Program • eight Men’s Behaviour Change programs to offenders By tackling the attitudes and behaviour that lead to on Community Correction Orders, which include violence against women and children, these programs relevant treatment and rehabilitation conditions, assisting seek to prevent violence before it occurs. One-off grants of approximately 95 offenders, these programs are also up to $600,000 over three years to December 2015 were accompanied by a simultaneous support and safety provided to eight regional projects through the Community planning service offered to current and previous partners Crime Prevention Program. Four Koori Safety grants of program participants totalling $2.4 million over three years were also made to • intensive criminogenic violence intervention programs, enable Aboriginal organisations in Shepparton, Lakes which may include perpetrators of family violence Entrance, Mildura and northern metropolitan Melbourne addressing family and peer relationships to provide innovative community-based projects aimed at preventing violence. The evaluations on these • six programs in the women’s prisons for victims of family projects, due at the beginning of 2016, will help build the violence, assisting approximately 43 female prisoners. evidence base on primary prevention work, and will help In addition, between 2009–10 and 2014–15 the department inform work to implement the recommendations of the trained over 550 staff in the Common Risk Assessment Commission. Framework (the Framework) family violence risk assessment tool. This tool, which has been in place since 2009, enables Legal services to respond to family violence staff to identify risk factors associated with family violence Demand for legal services to support family violence victims and assist in responding appropriately to women and and respondents has risen significantly as a consequence children who are victims of family violence. The Framework of the increased volume of family violence matters coming is also used to support assessments of suitability for before the courts. restrictive Community Correction Orders conditions. In response to this demand, the government will invest an In 2015, Corrections Victoria received funding of $2 million additional $1.2 million in 2015–16 so that family violence in the 2015–16 State Budget for additional men’s behaviour duty lawyers from Community Legal Centres can help more change programs over two years for offenders on a Community victims at the Magistrates’ Court and provide a further $2.1 Correction Order with a relevant family violence offence. million to fund free legal assistance to ensure proper legal representation in family violence matters. Community crime prevention The government will also invest $2 million over two years As part of the Victorian Government’s Community Crime in a Community Legal Centre Assistance Fund to support Prevention Program, the department continued to help vital programs and services, including family violence local communities across the state implement projects to coordinators and lawyers and online services for rural and enhance community safety. regional youth. In 2014–15 the department managed the allocation of In 2014–15, the department, in consultation with the $2.4 million in new grants to local councils and community legal assistance sector, has worked to develop a suitable groups to implement crime prevention initiatives. This distribution model for the additional funding to Community included funding for practical crime prevention projects Legal Centres to ensure that the funding is directed such as security improvements for local community at priority service delivery gaps. Applications for the facilities, crime prevention education and awareness Community Legal Centre Assistance Fund and the Family programs, safer urban design initiatives, lighting and CCTV, Violence Duty Lawyer Fund opened on 29 June 2015; and graffiti prevention and removal projects. decisions about funding will be made in late 2015. In May 2015, the government appointed Parliamentary Secretary for Justice Ben Carroll to lead a review of the

16 Department of Justice and Regulation Annual Report 2014–15

Community Crime Prevention Program, announcing new • $1.04 million for 15 local justice workers to assist the funding of $5.8 million to continue the program while the Koori community to successfully resolve their fines, review is undertaken. The department is supporting the warrants and Community Correction Orders Parliamentary Secretary in his review, which is due to be • $2.9 million in other grants to support: completed in late 2015. »» culturally specific legal representation in Koori courts Pending this review, the department has continued to and child protection and family violence jurisdictions deliver the next rounds of the Community Crime Prevention »» assistance for young people with drug and alcohol Program grants, inviting applications for Community issues through the Baroona Youth Healing Service, Safety Fund, Public Safety Infrastructure Fund and Graffiti which provides a program to young Koori men that Prevention grants. Work has also been undertaken to includes a strong cultural and spiritual base, personal develop the government’s new place-based grants program development, education and vocational training, for crime hotspots, which will be rolled out in 2015–16. healthy lifestyle choices, counselling, traditional and contemporary healing, and life skills Reducing over-representation of Koories in the justice system »» volunteer programs that work with Victoria Police to ensure the safety of Koori people taken into custody Victoria’s Koori population is over-represented in the adult criminal justice system by 11 times that of the non-Koori • $220,000 for Community Initiatives Program grants population. to support research and innovative pilot activities that aim to reduce community violence and recidivism and On the current trajectory, closing this gap by 2031 is not support Koories transitioning from prison back into the achievable without changes in the approach to service community delivery and additional investment. The impact of additional • $660,000 for Frontline Youth Initiatives grants to policing, sentencing changes, including to parole, and support community organisations to undertake cultural growing rates of recidivism are seeing these rates rise. This strengthening, recreational and community activities is particularly an issue for Koori women with the average that build protective factors in young people and aim to daily number of Aboriginal women in prison increasing 40 prevent negative contact with the justice system. per cent in the past two years (2012–14). • $800,000 for Koori Community Safety Grants to deliver Action to address continuing over-representation is primary prevention programs to reduce family and progressed through the Aboriginal Justice Agreement (the community violence in Koori communities located in Agreement), a strong partnership between the Victorian Mildura, Shepparton, East Gippsland and northern Government and the Koori community, that began in 2000. metropolitan Melbourne. The department’s regions support nine Regional Aboriginal Justice Advisory Committees (RAJACs) and work with Koori family violence protocols relevant government departments and agencies. New Koori family violence police protocols have been developed that document an agreement between local Aboriginal Justice Agreement 3 Aboriginal communities and Victoria Police about what The third phase of the Agreement (AJA3), which runs from the local police response to Aboriginal family violence will 2013–18, contains a suite of programs and initiatives that be. The aim of the protocols is to strengthen the police aim to prevent offending through cultural strengthening response to all parties involved in incidents of family and investment in young people as well as maximising violence, including victims, children and perpetrators. The diversion, reducing conflict violence and victimisation, protocols are currently being piloted in three locations; and by addressing reoffending through culturally specific Mildura, Ballarat and northern metropolitan area, with supports and services for Koori prisoners and offenders Bairnsdale and Shepparton due to be operational in the and transition support. coming months; Dandenong, in development.

Koori community grants Koori women’s diversion The department delivered $5.7 million in Koori community In 2014–15, the department continued to support the grants throughout 2014–15. These grants are subject Koori Women’s Diversion Project, an initiative designed to comprehensive approvals, with the Koori community to increase the rate of diversion of Koori women from involved in all aspects of decision making. Grants are the criminal justice system and into community-based monitored through a rigorous financial and program projects. Two community-based pilot projects are being monitoring framework that includes departmental staff developed in collaboration with the Koori community, to working in partnership with the community to plan, deliver deliver integrated services and support to Koori women in and enhance each program. contact with the criminal justice system. The government has also extended its support for the Odyssey House The grants included: Women’s Diversion Pilot for a further two years. Six • $725,000 for five Koori Offender Support and Mentoring beds at Odyssey House, a residential drug and alcohol Programs located at Mildura, Shepparton, northern rehabilitation centre, are dedicated to women who are metropolitan Melbourne, Bairnsdale and Morwell referred through the justice system.

17 Improving community safety through policing, law enforcement and prevention activities

Aboriginal Social and Emotional Wellbeing Plan work or volunteer in certain types of child-related work The Aboriginal Social and Emotional Wellbeing Plan (the to undergo a check of their criminal record and a limited Plan) is an initiative of Justice Health and Corrections number of relevant professional disciplinary findings. Victoria, both business units of the department, designed to Since commencement, 2239 people have been issued improve outcomes for Aboriginal people in prison in Victoria. a negative notice, preventing them from working with children. The Plan was released in 2014–15. It identifies five priority areas that the department, in partnership with the Aboriginal The WWC Check is valid for five years and incorporates community, will focus on improving the mental health and a weekly check of an applicant’s criminal history. wellbeing of Aboriginal people while incarcerated and upon Applicants refused a WWC Check receive a negative their release: notice and are prohibited from working with children for a minimum of five years, after which time they are • prevention and health promotion eligible to re-apply. • culturally capable workforce The first full-year it has been possible to apply for a WWC • culturally safe and responsive services Check online is 2014–15. This has delivered improved • continuity of care customer service and business efficiencies. • working from and building an evidence base. The number of new applications received annually by The Plan recognises the fundamental role of culture, the WWC Check Unit has been steadily rising since community and spirituality in Aboriginal wellbeing and the scheme became fully implemented in 2010–11. In aims to support such connections. It sets out a number 2014–15, the number of new applications lodged was of objectives that aim to prevent, stabilise and effectively 31 per cent higher than was the case at the end of the manage mental illness while in prison, as well as improve five-year implementation period in 2010–11. transition processes to ensure that improvements are maintained upon release. In May 2015, the State Budget provided an additional $19.1 million for the next two years to fund the processing Working with Children Check of the rising number of applications and renewals. In 2014–15, the department’s Working with Children (WWC) Check unit received approximately 235,000 applications, Move-on laws repealed taking the total number to approximately 1.68 million since On 26 March 2015, the Summary Offences Amendment the establishment of the scheme in April 2006. (Move-on Laws) Act 2015 commenced (the Repeal Act). The Repeal Act implemented the incoming government’s The scheme helps to protect children from sexual or commitment to repeal the expanded move-on powers physical harm by ensuring that people who work with introduced into the Summary Offences Act 1966 by the or care for them are subject to a screening process. It is previous government through the Summary Offences underpinned by the Working with Children Act 2005 (the and Sentencing Amendment Act 2014 (the 2014 Act). Act) and the Working with Children Regulations 2006 and The Repeal Act returned the move-on powers to their is a mandatory minimum standard, requiring people who original form. Report on output performance

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result Quantity number Number of Working with Children Checks processed 235 200–250 0.0 P (‘000)

number Square metres of graffiti removed through the Graffiti Removal Program 327.9 246 33.3 P (‘000)

The actual is above the target due to access to larger work sites and a reduction of days lost due to inclement weather conditions.

Crime prevention initiatives established to support the Koori community number 35 35 0.0 P

18 Department of Justice and Regulation Annual Report 2014–15

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result Quality Community crime prevention grant payments made against per cent 100 100 0.0 P completion of milestones in funding agreement

Issuing of Working with Children Check assessments per cent 100 100 0.0 P in accordance with the Working with Children Act 2005 Cost Total output cost $ million 44.2 38.1 16.0 ¢

The actual expenditure is above target to meet demand for the Working with Children Check, which has significantly exceeded original projections.

Note: P Performance target achieved or exceeded. ¢ Performance target not achieved – exceeds 5 per cent variance.

Output: Policing services Funding of $17.7 million was provided in the 2015–16 State Budget for new booze and drug buses, and to maintain the current level of 100,000 roadside random drug tests per First step taken to tackle the problem of ice year for the next two years. An additional $4.5 million has The Victorian Government released an Ice Action Plan also been provided to Victoria Police to expand the capacity (the Plan) in March 2015, announcing priority initiatives of the Forensic Drug Branch to help drug profiling and designed to reduce the supply, demand and harm of intelligence gathering. methamphetamine, or ice. Ice-related ambulance call-outs and presentations to New agency for crime statistics begins operation emergency have dramatically risen in recent years and On 1 January 2015, the Crime Statistics Agency (CSA), deaths from acute drug toxicity involving methamphetamines began operation. Its responsibility is to process, analyse (including ice) have increased from one in 25 in 2010 to one and publish Victorian crime statistics, independent of in approximately 7.3 deaths in 2014.4 Victoria Police. The Plan is the first step in addressing the complex The CSA aims to provide an efficient and transparent challenges presented by ice. information service to assist and inform policy makers, researchers and the Victorian public. In 2014–15, as part of the Plan, the department began work on legislation for four new criminal offences, The first quarterly crime statistics report was published on including: 19 March 2015 and provided crime data for the twelve- month period to December 2014. The second report, • trafficking ice to school students or dealing near schools released on 18 June 2015, produced crime data for the • publishing or possessing instructions to manufacture ice twelve-month period to March 2015. In the most recent • allowing use of premises for the manufacture or release, the number of offences recorded by Victoria Police trafficking of ice increased by 1.3 per cent to 458,027 recorded offences. • using violence or threats to force another person to The offence rate decreased by 0.6 per cent during the same traffic ice. period to 7696.5 per 100,000 population. The department is continuing to negotiate with the The CSA also has a remit to conduct research into crime Commonwealth, states and territories for a national trends and issues. On 1 June 2015, the CSA published cooperative scheme on unexplained wealth laws and more its inaugural research agenda, which outlines broad focus nationally consistent control of precursor chemicals and areas for the research that will be conducted from 2015–17. equipment used in the manufacture of illicit drugs. The agenda focuses on family violence, drug and alcohol It has also begun work with the Department of Health and use and their relationship to crime, sexual offences and Human Services (DHHS) to develop training for frontline offending, and to Koori over-representation in the justice workers (police, paramedics, correctional staff, court staff) system. Research projects will also be based on themes who come into contact with people affected by ice. such as recidivism and re-victimisation, co-occurrence where individuals commit more than one type of offence, individual changes in offending over time and place-based analysis of where crime occurs.

4 Source: ‘Pharmaceutical drugs in fatal overdose: A coroner’s perspective’ by A. Jamieson, Coroner, Coroners Court of Victoria, presentation to International Medicine in Addiction Conference, 21 March 2015.

19 Improving community safety through policing, law enforcement and prevention activities

Improving Victoria’s criminal investigation powers • improving the existing legislative framework (for example Significant work is underway to develop the Criminal by introducing clear powers for police to establish a Investigation Powers Bill, which will consolidate Victoria’s crime scene, introducing a new legislative framework main investigation powers into a stand-alone Bill. This will for covert warrants and establishing a comprehensive be simpler for police, legal practitioners and the courts to oversight regime) use than the current provisions in the Crimes Act 1958 and • abolishing redundant and obsolete provisions. will improve accountability and transparency. The Bill will set out clearer and simpler procedures to enable In 2014–15, consultation on an Exposure Draft Bill the more efficient exercise of police powers to investigate generated a range of submissions that have resulted in a crime and ensure the integrity and admissibility of evidence. number of further improvements to the Bill, including: It will also include safeguards around the use of these • consolidating, simplifying and modernising existing powers such as protections for children, vulnerable adults powers, many of which are outdated, confusing and and incapable persons, and oversight of the exercise of complex, and have not kept up with modern technology these powers by the Independent Broad-based Anti-corruption Commission. Report on output performance

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result1 Quantity Criminal history checks conducted to contribute to number 477,500 508,000 –6.0 ¢ community safety

The variance is due to the demand for national police checks shifting from direct requests to Victoria Police to various CrimTrac accredited organisations.

Community calls for assistance to which a Victoria Police number 864,020 800,000 8.0 P response is dispatched

The increase in community calls for assistance to which a Victoria Police response is dispatched. These increases have been primarily driven by calls in the Eastern Region, which has more than doubled in recorded events since the start of 2012. The Western Region has also showed a significant increase.

Crimes against the person – excluding family violence related crime (rate per 100,000 population)

Victoria Police methodology 1 number 594.2 ≤653.8 9.1 š CSA methodology number 654.0 ≤653.8 0.0

Crimes against property – excluding family violence related crime (rate per 100,000 population)

Victoria Police methodology 1 number 4516.0 ≤4667.1 3.2 P CSA methodology number 4491.9 ≤4667.1 3.8

Crimes against the person – family violence related crime (rate per 100,000 population)

Victoria Police methodology 1 number 451.6 ≥323.0 39.8 P CSA methodology number 509.0 ≥323.0 57.6

The primary drivers of this increase are family violence related assaults, as well as stalking, harassment and threatening behaviour.

Crimes against property – family violence related crime (rate per 100,000 population)

Victoria Police methodology 1 number 150.5 ≥95.2 58.1 P CSA methodology number 146.7 ≥95.2 54.1

The primary driver of this measure is Property Damage (it is important to note that Property Damage is only increasing for family violence related crime, overall Property Damage has been decreasing).

20 Department of Justice and Regulation Annual Report 2014–15

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result1

Number of alcohol screening tests conducted number 1,136,326 1,100,000 3.3 P

Number of prohibited drug screening tests conducted number 79,986 40,000 100.0 P

The 2014–15 actual is above the target due to additional funding received from the Transport Accident Commission to expand testing capacity to 100,000 tests from 30 September 2014 to 30 September 2015.

Quality

Proportion of community satisfied with policing services per cent 77.8 70 11.1 P (general satisfaction)

Community members are surveyed through the National Survey of Community Satisfaction with Policing (NSCSP) and recorded above target satisfaction. Over time general satisfaction with policing services has been displaying an upward trend.

Proportion of the community who have confidence in police per cent 88.7 83 6.9 P (an integrity indicator)

Community members are surveyed through the NSCSP and recorded above target confidence. Over time confidence in police has been displaying an upward trend.

Proportion of drivers tested who comply with alcohol limits per cent 99.8 99.5 0.3 P

Proportion of drivers tested who comply with posted speed per cent 99.5 99.5 0.0 P limits

Proportion of drivers tested who return clear result for per cent 94.3 90 4.8 P prohibited drugs

Proportion of successful prosecution outcomes per cent 92.8 92 0.9 P

Victoria Police regions with plans, procedures and resources per cent 100 100 0.0 P in place for the bushfire season

Timeliness

Proportion of crimes against the person resolved within 30 days

Victoria Police methodology 1 per cent 37.9 36 5.3 P CSA methodology per cent 36.8 36 2.2

Proportion of property crime resolved within 30 days

Victoria Police methodology 1 per cent 20.4 19 7.4 P CSA methodology per cent 20.5 19 7.9

The positive variation in this measure is due to a steady increase in Theft and Deception offences.

Cost

Total output cost $ million 2463.7 2434.6 1.2 š

1. Note that the transition to the CSA has impacted the measurement of outcomes against BP3 targets for the 2014–15 financial year, which were set using Victoria Police crime categorisation methods. As a result, different counting rules apply to the target when compared to the CSA actual. However, to ensure consistency with the information provided in the 2015–16 Budget Papers, the actual results for crime measures have been provided based on both the CSA and Victoria Police methods of categorisation in the table above. The 2015–16 Budget Papers reflect the CSA methodology. P Performance target achieved or exceeded. š Performance target not achieved – within 5 per cent variance. ¢ Performance target not achieved – exceeds 5 per cent variance.

21 Improving community safety through policing, law enforcement and prevention activities

Output: Infringements and orders Road Safety Cameras management Victoria’s road safety camera network is an integral part of the State Government’s road safety strategy, helping to This output relates to management of traffic infringement ensure that Victorian roads are safe for all road users. notices and enforcement action by the Sheriff’s Office. Fixed and mobile road safety cameras contribute to Project Nexter reducing the road toll and improving road safety by their placement in high-risk or high-speed areas, areas with a Project Nexter commenced in 2013–14 and targeted history of road trauma, or areas that will provide a road people with outstanding warrants. The project sent safety benefit. people a letter that provided them with their total amount outstanding, as opposed to the standard approach of The Victorian Road Safety Camera program currently sending separate correspondence for each outstanding consists of 229 fixed camera sites, including 185 speed and obligation. red-light cameras at intersections and 44 speed cameras on highways. The mobile cameras operate more than 9300 The letters also directed people to deal with their hours per month, rotated through approximately 2000 outstanding matters by contacting Civic Compliance locations. Victoria or their local Justice Service Centres. In 2014–15, there were 3,251,215 infringements issued Throughout 2014–15 Project Nexter successfully resulted by road safety cameras, including fixed/mobile, on-the- in increased collection rates, increased contact rates and spot and tolling infringements. Victoria Police issues the decreased return-to-sender rates. infringements from road safety cameras. Project Nexter targeted approximately 450,000 people with More than 99 per cent of vehicles that passed a speed 800,000 outstanding warrants to the value of $280 million. camera in 2014–15 complied with the speed limit. By April 2015, the project had collected more than $85 million of unpaid fines. The department publishes the locations of all fixed road safety cameras in Victoria and the approved mobile road Images from road safety cameras available online safety camera sites for each month on the Cameras Save For those people receiving red light, speed or unregistered Lives website, camerassavelives.vic.gov.au. vehicle infringement notices, viewing images from road safety cameras became easier in 2015 when the Sheriff’s Office activities department made access to images relating to vehicle The recruitment of sheriff’s officers in Victoria helps boost infringement notices available free online via its Fines the range of targeted enforcement actions carried out Victoria website fines.vic.gov.au. across the state every day. Since the service began in mid February, approximately More sheriff’s officers on the ground means an increased 70,000 images have been viewed, with an average of ability of the Sheriff’s Office to enforce outstanding fines approximately 16,000 image views per month. This is about and warrants. In 2014–15, there were 192 sheriff’s officers, three times the number of people who viewed their images including eight new recruits. under the old system. In 2014–15, there were 962,721 warrants actioned. Joint The new service is a particular advantage for regional operations between sheriff’s officers, Victoria Police and Victorians, who are unable to attend Civic Compliance the Taxi Services Commission enhanced community Victoria (CCV), where they could view their images for free. understanding of these agencies’ roles and powers. Almost half the people accessing images (48.6 per cent) Road block operations used Automatic Number Plate are those who receive an infringement for speeding under Recognition technology, enabling officers to verify vehicle 10 kilometres per hour. registrations, the status of the vehicle owner’s driver licence and whether there were any outstanding warrants. Evidence from other states where this service has been established indicates that drivers who view images have a high level of acceptance of the offence and the penalties imposed and create lower levels of dispute.

22 Department of Justice and Regulation Annual Report 2014–15

Report on output performance

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result Quantity Warrants actioned number 962,721 995,000 –3.2 š number Infringement notices processed 3.3 2.8 – 3.0 8.4 P (million) The actual is above the target due to the introduction of fixed speed cameras in school zones and other 40 kmph sites, although a change in driver behaviour has been observed, with speed limits being exceeded at a lower level Quality Prosecutable images per cent 96.7 93 4.0 P Timeliness Clearance of infringements within 180 days per cent 75.7 75 0.9 P Assets converted within 90 day conversion cycle per cent 75.4 85 –11.3 ¢ The actual is below target due to slower turnaround of confiscated items of a personal nature, although asset sales in 2014-15 exceeded the previous year significantly. Cost Total output cost $ million 191.1 221.4 –13.7 P The actual expenditure is lower than the target due to re-phasing of funds into future years to align with milestones for the camera replacement programs, the Peninsula Link fixed digital road safety cameras and the automatic number plate recognition project. Note: P Performance target achieved or exceeded. š Performance target not achieved – within 5 per cent variance. ¢ Performance target not achieved – exceeds 5 per cent variance.

23 Supporting the rule of law

The department is responsible for delivering services Over the past two years, the number of law reform to the justice system that support legal processes, projects completed by VLRC has been steady, with including legal aid, prosecution services, community three projects completed in 2013–14 and in 2014–15. mediation services, support for victims of crime and In 2014-15, the VLRC completed three law reform the delivery of independent, expert forensic medical projects and in addition published four short information services. sheets, one issues paper and one consultation paper. Delivery of this objective also covers legal policy advice Law reform projects completed in 2014–15 included: to government, law reform, implementation of new or amended legislation and the provision of legal advice Attorney-General references to the Victorian Government. • The Forfeiture Rule: A report was delivered to the Supporting the rule of law aligns with the key Attorney-General in September 2014 and tabled in government priority Improving access to justice. Parliament in October 2014. • Trading Trusts: Oppressions Remedies: A report Progress towards achieving this objective was delivered to the Attorney-General in January 2015 and tabled in parliament in May 2015. In 2014–15, the department is reporting progress against this objective using the objective indicators Community Law Reform projects identified below, as well as through its report on output Photographing and filming tenant’s possessions: A performance located at the end of each output. report was delivered to the Attorney-General in March 2015 and tabled in parliament in May 2015. Outputs • Access to justice and support services Publications for law reform projects conducted in 2014–15 included: • Public prosecutions Objective indicators Attorney-General references • Total finalisations (national ranking)5 • ‘Role of Victims of Crime in the Criminal Justice System’: four short information papers were • Law reform projects completed published in May 2015.6 • ‘Medicinal Cannabis’: an issues paper was Law reform projects completed published in March 2015. The functions of the Victorian Law Reform Commission • ‘Use of Regulatory Regimes in preventing (VLRC) are set out in the Victorian Law Reform the infiltration of organised crime into lawful Commission Act 2000 (VLRC Act). The VLRC’s primary occupations and industries’: a consultation paper function, set out in section 5(1)(a) of the VLRC Act is was published in June 2015. ‘to examine, report and make recommendations to the The number of projects, their size and reporting Attorney-General on any proposal or matter relating to deadlines are matters largely outside the control of law reform in Victoria that is referred to the Commission the VLRC and is a function of the Attorney-General’s by the Attorney-General’. requirements, rather than being at VLRC’s discretion. A function the VLRC refers to as its community law While the community law reform role is at the reform role is set out in section 5(1)(b) of the VLRC Act, discretion of the VLRC, this function is limited by ‘to examine, report and make recommendations to the the requirement in the VLRC Act (s.5(1)(b)) that such Attorney-General on any matter that the Commission projects ‘not require a significant deployment of the considers raises relatively minor legal issues that are of resources available to the Commission’. general community concern’. Reports to the Attorney-General regarding both Output: Access to justice and support these purposes contain recommendations that aim services to improve and modernise the law, making it more relevant and effective. Collaboration with Court Services Victoria The first day of operation for Court Services Victoria (CSV) was on 1 July 2014, when it commenced as an 5 Total finalisations: With the establishment of Court Services Victoria (CSV) on 1 July 2014, responsibility for the provision of administrative independent statutory body corporate responsible for the services and facilities for Victoria’s courts, the Victorian Civil and administrative services and facilities to support Victoria’s Administrative Tribunal (VCAT) and the Judicial College of Victoria courts, and the Victorian Civil and Administrative was transferred from the department to CSV. This included all administrative and reporting responsibilities on behalf of the courts. As Tribunal, and the Judicial College of Victoria. a result of this transfer, it is no longer appropriate for the department to report on the objective indicator ‘Total finalisations (national ranking)’ on behalf of the courts. Reporting data for the courts may be found in Report of operations each court’s and VCAT’s annual report. This objective indicator will be removed in the future. 6 Counted as one publication for the purposes of reporting.

24 Department of Justice and Regulation Annual Report 2014–15

During 2013–14, the department undertook considerable the previous year. The increase is, in part, due to additional work to ensure the administrative transition of departmental funding for five full-time staff to VAP in 2014–15, with more operations to CSV. This transitional work continued during appointments projected for the next year. 2014–15. VSA also manages the Victims Register, which provides Arrangements for the assignment by the State of relevant victims of violent crime with information about the adult personal property, rights and liabilities to CSV were offender who is under sentence in Victoria for committing formalised, through two allocation statements agreed a crime against them. It coordinates responses across the pursuant to section 28 of the Court Services Victoria justice system to the Victims Charter Act 2006. Act 2014. The first allocation statement took effect on 3 The VSA also provides secretariat support to the Victims of November 2014 and the second—relating primarily to the Crime Consultative Committee (VOCCC), a forum for victims, County Court—commenced on 31 July 2015. Additionally, crime and justice agencies to discuss policies, practices management of Crown land used by courts, VCAT and and service delivery to victims, and provides advice to the CSV was vested in CSV through two vesting orders made Attorney-General. Membership of VOCCC includes five by the Governor in Council on the recommendation of judicial officers, a deputy commissioner from Victoria Police, the Attorney‑General. Those vesting orders took effect on the Victims of Crime Commissioner, senior representatives 1 November 2014 and 30 June 2015, respectively. from Court Network, the Victims Assistance Program, the The department and CSV, together with the Department Office of Public Prosecutions and victims of crime. of Treasury and Finance, developed a memorandum of understanding (MOU) to guide the working relationship Co-location of victims support with police between CSV and the executive government. The Chief Research shows that victims linked to services at an early Justice and the Attorney‑General signed the MOU in stage recover more quickly, are more able to participate May 2015. The MOU sets out agreed principles and in the criminal justice process and have a higher level processes regarding the relationship between CSV and of confidence in the justice system, irrespective of the executive government, including how the parties will outcome than do those who are linked to services later. share information, consult with each other, and deal with In 2014–15, the department worked with Victoria Police financial information and budget processes. The MOU is to develop and sign a protocol to co-locate victim support available on the CSV and department websites. caseworkers to designated police stations across Victoria. The department will continue to work with CSV and Building on the successful 2010–13 co-location pilot, this other departments to consolidate the new and changed innovative service delivery model has been rolled out to arrangements and support the commitments contained in seventeen 24 hour police stations in Victoria. the MOU. Victoria leads the way with the establishment of a Legislative amendments were made to the financial dedicated victim support service in the new Victoria Police management and certain other arrangements for CSV, Spencer Street Complex, Melbourne. The new complex through the Court Services Victoria and Other Acts co-locates the victim services to support the major crime Amendment Act 2015, which responded to issues identified taskforces, including homicide, sexual crimes, armed during CSV’s first six months of operation. The amendments crimes, identity crimes and cold cases. are largely technical clarifications to existing provisions. The Act commenced on 30 June 2015. Victims of Crime Commissioner In October 2014, the new role of Victims of Crime Support for victims strengthened Commissioner was established. It is the role of the The department, through the Victims Support Agency Commissioner to ensure that the rights and needs of (VSA), administers the delivery of support services to victims are recognised and respected across all government victims of crime through a state-wide network, including: agencies. The Commissioner is also an advocate for victims and provides advice to government about how the justice • administration of the Victims of Crime Helpline, which system can better meet their needs. provides help and referral to support services for victims of crime from 8am – 11pm, seven days per week, Victims reference to the Victorian Law Reform Commission including public holidays In October 2014, the then Attorney-General announced • funding of the Victims Assistance Program (VAP), a network a reference to the Victorian Law Reform Commission of local support services providing practical assistance (Commission) to undertake a detailed inquiry into the role and counselling for those impacted by violent crime. of victims of crime in the criminal trial process. The review In 2014–15, the Victims of Crime Helpline responded to will examine all aspects of how the criminal justice system over 24,772 calls and referrals. VAP provided services to treats victims and whether they should have greater rights a total of 13,628 clients, including 8903 new clients and to be involved at various stages of the trial process. Four 4725 clients whose cases were carried forward from the information papers were published in May 2015 by way previous year. This was a 4.6 per cent increase in the of background. The Commission released a consultation number of new victims and a 16.8 per cent increase in new paper in July 2015 and will report to the Attorney-General in and existing victims who received services from VAPs in September 2016.

25 Supporting the rule of law

National Partnership Agreement on Legal parliament in November 2013). That report found that Assistance Services it was inappropriate to apply civil limitation periods to The National Partnership Agreement on Legal Assistance child abuse victims, who often suppress and conceal Services (NPALAS) governs the Commonwealth their abuse from others for many years. government’s financial contribution to Victoria Legal Aid Legislation passed through the Victorian Parliament (VLA) for the delivery of Commonwealth legal aid services. in early 2015, and commenced on 1 July 2015 to VLA is an independent statutory body established remove limitation periods for civil actions founded on under the Legal Aid Act 1978 (Vic.) that provides free child sexual abuse or child physical abuse, as well as legal information and education to the community, for psychological abuse that arises from an instance of Victorian and Commonwealth law matters, with a focus physical or sexual abuse. on prevention and early resolution of legal problems. Previously, the law applied different limitation periods, VLA focuses services on more intensive legal assistance, depending upon the identity of the alleged perpetrator such as legal advice and representation for people who and the time and context of the abuse. The reforms meet eligibility criteria based on their financial situation, remove these distinctions and treat all victims of child the nature and seriousness of their problem and their abuse equally, enabling victims of child abuse to seek individual circumstances. compensation through the courts. In 2014–15, the NPALAS provided approximately 30 per The Victorian Government also supports all of the cent of VLA’s total Commonwealth Government funding and other recommendations made by the Betrayal of Trust the remaining funds were provided through the Victorian report and is committed to implementing each of State Budget and the Public Purpose Fund. This was the them. Recognising that not all victims of child abuse last year of funding under the current NPALAS, which wish to take their claims to court, the department expired on 30 June 2015. developed a consultation paper on a potential Victorian During 2014–15, the department participated in redress scheme for victims of institutional child negotiations at officer level with the Commonwealth abuse, which the government released on 5 August government for a new NPALAS. For the first time, as part 2015. The consultation paper asks for public input of the new agreement, the Commonwealth Government on an alternative justice mechanism for survivors of included funding for Victorian Community Legal Centres institutional child abuse. (CLCs) as part of the NPALAS, in addition to the funding for VLA. CLCs are independent not-for-profit organisations Dispute Settlement Centre of Victoria that play a critical role in providing free advice, casework Dispute Settlement Centre of Victoria (DSCV) provides free and legal education to their communities. dispute resolution advice and services, including: telephone advice on alternative dispute resolution, conflict coaching On 25 June 2015, the Victorian Government entered into a and mediation for neighbourhood and community-based new five-year NPALAS, from the 1 July 2015. disputes, appropriate Personal Safety Intervention Order Under the new NPALAS, in aggregate funding terms, (PSIO) disputes, civil disputes under $40,000 from the Victoria continues to receive the lowest per capita funding Magistrates’ Court (in some areas of the state) and referrals allocation of all states and territories. from Victoria Police; and family meetings in relation to options for older Victorians. DSCV also delivers formal The Commonwealth Government made some significant mediation training and mediator accreditation to national policy concessions during the course of the negotiations, standards. such as reversing previously announced funding cuts to the CLC sector and guaranteeing national funding levels In 2014–15, dispute resolution services were accessed by for the next two years for the legal assistance sector. 22,311 Victorians, an increase of 10 per cent on 2013–14. However, Commonwealth funding for Victorian CLCs will The DSCV experienced record levels of demand during the decrease by approximately 30 per cent from 2017–18 period February to May 2015. and beyond. After receiving extensive training, six additional Dispute The department will work closely with the legal assistance Assessment Officers became operational in December sector to determine how best to deal with the significant 2014. The new staff, who are the result of additional funding cut anticipated to CLCs and the rising demand funding, provided DSCV with increased capacity to meet being experienced the legal assistance sector. demand. Further growth in the program occurred for mediation of Greater access to justice for survivors civil disputes in the Magistrates’ Court over the second half of child abuse of 2014–15, following the formal implementation of referrals The Limitation of Actions Amendment (Child Abuse) from the Magistrates’ Courts in Colac, Frankston, Hamilton, Act 2015 was developed in response to the Betrayal Moorabbin, Portland, Wangaratta and Warrnambool. of Trust report, from the landmark Inquiry into the Handling of Child Abuse by Religious and other Non- DSCV continued to develop formal referral pathways Government Organisations (which reported to Victorian throughout the year. A referral program with Seniors

26 Department of Justice and Regulation Annual Report 2014–15

Rights Victoria and the Office of the Public Advocate • introducing a new fault element in rape and sexual further enabled members of the community to access assault offences, where the accused does not DSCV’s family meetings to assist with the prevention or reasonably believe that the complainant is consenting management of disputes arising from assets for care or • making jury directions in rape and sexual assault powers of attorney arrangements. trials simpler and better tailored to the specifics of Dispute Assessment Officers have also been working each case closely with Community Legal Centres in Casey, Cardinia • providing for exceptions to child pornography offences and the Eastern region to provide services, while the where minors engage in non-exploitative, consensual Fences Amendment Act 2014 (Vic.) gave the DSCV an sexting with their peers opportunity to work more closely with all councils on • introducing new summary offences relating to the referring suitable neighbourhood conflicts to mediation. distribution of intimate images • removing time limitations on the prosecution of certain DSCV continues to support newly emerging and CALD sexual offences against children committed before 1991 communities by working with settlement and migrant support services that provide workshops about Victoria’s • introducing a new course of conduct charge that will legal system and resolving conflict at an early stage. assist in the prosecution of people who engage in repeated and systematic sexual abuse. Reforms to sexual offences laws These reforms were developed in consultation with In 2014–15, the department progressed legislative reforms stakeholders, following the release of the department’s Review arising from a comprehensive review of sexual offences, of Sexual Offences: Consultation Paper in October 2013. which began in 2010. The next stage of reforms to sexual offences will focus In particular, the Crimes Amendment (Sexual Offences on sexual offences against children, incest and child and Other Matters) Act 2014 was passed by the pornography laws. These reforms are being developed Victorian Parliament in October 2014. This Act made in consultation with the Sexual Offences Advisory Group, a number of improvements to Victorian sexual offence which includes senior representatives from the Magistrates’ laws, including: and County Courts, the Office of Public Prosecutions, Victoria Legal Aid and the Criminal Bar Association. Report on output performance

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result

Quantity

Community education and consultation sessions conducted by number 103 60 71.7 P Victorian Law Reform Commission (VLRC)

The actual is above the target due to the number of sessions varying according to the nature of the community related reviews being conducted by VLRC. The VLRC has also been tasked with additional unexpected references in 2014–15.

Law reform projects conducted by VLRC number 6 3 100.0 P

The actual is above the target due to additional projects and references requested by the Attorney-General in 2014–15.

Groups in negotiation towards resolution of Native Title claims number 2 2 0.0 P

Provision of expert forensic medical and scientific evidence in court number 191 250 –23.6 ¢ by Victorian Institute of Forensic Medicine (VIFM)

The actual is below the target due to a lower demand from courts and Victoria Police for VIFM court appearances.

Clinical forensic medical services (VIFM) number 2269 2100–2500 0.0 P

Grants of legal assistance provided by Victoria Legal Aid number 34,681 33,000 5.1 P

The actual is above the target due to an increase in grants across a number of VLA’s program areas. Increased demand was predominant in infringement, sexual offences, summary and youth crime, child protection and independent children’s lawyers cases.

Legal advice and minor assistance for clients Victoria Legal Aid (VLA) number 48,806 47,000 3.8 P

Community Legal Education and Information Services (VLA) number 137,668 90,000 53.0 P

The actual is above the target due to the implementation of a new client intake/triage process in Melbourne and Regional Office locations, allowing a larger number of better targeted services to be provided.

27 Supporting the rule of law

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result

Victims receiving a service from the Victims of Crime Helpline, number 24,950 21,000 18.8 P Victims Assistance and Counselling Program and Victims Register

The actual is above the target due to an increase in the number of Male Family Violence Referrals received by the Helpline.

Medico-legal death investigations (VIFM) number 6224 5000–5300 17.4 P

The actual is above the target due to a consistent upward trend in the number of reportable death cases, following the introduction of VIFM’s Coronial Admissions and Enquiries Office. The Office has markedly improved VIFM’s engagement with clinicians on deaths required to be reported.

Duty lawyer services (VLA) number 83,674 74,000 13.1 P

The actual is above the target due to increased demand for duty lawyer services across most of VLA’s program areas (particularly in mental health and disability, summary and youth crime, family violence and child protection). The increase is driven by external factors, including VLA’s expanded mental health and disability services in response to legislative changes, increased police initiations and an increase in family violence and child protection matters coming before the courts.

Dispute resolution services provided in the Dispute Settlement number 22,311 21,500 3.8 P Centre of Victoria (DSCV)

Quality

Stakeholder satisfaction with consultation/education processes per cent 88.3 85 3.9 P (VLRC)

Client satisfaction with quality of legal advice provided (VGSO) per cent 85 80 6.3 P

The actual is above the target due to business process improvements to advice templates, which have received a positive response from clients.

Victorian Institute of Forensic Medicine quality audit (VIFM) per cent 98 95 3.2 P

Timeliness

Client satisfaction with timeliness of legal advice provided (VGSO) per cent 80 80 0.0 P

Proportion of Native Title negotiations progressed in accordance with the department’s annual work plan and timeframes monitored per cent 100 100 0.0 P by the Federal Court

Applications for legal aid processed within 15 days (VLA) per cent 93.2 95 –1.9 š

Medico-legal death investigation reports issued within agreed per cent 66 60–70 0.0 P period (VIFM)

Medical and scientific investigations on the body of the deceased per cent 77 75–85 0.0 P completed within two days

Intake and mediation services conducted within agreed timeframes per cent 86 85 1.2 P by the Dispute Settlement Centre of Victoria (DSCV)

Cost

Total output cost $ million 274.3 264 3.9 š

Note: P Performance target achieved or exceeded. š Performance target not achieved – within 5 per cent variance. ¢ Performance target not achieved – exceeds 5 per cent variance.

28 Department of Justice and Regulation Annual Report 2014–15

Public prosecutions

This output delivers activities relating to Victoria’s public prosecutions service. The Office of Public Prosecutions (OPP) provides an independent, effective and efficient prosecutions service on behalf of the Director of Public Prosecutions (DPP). In addition to the prosecution of serious crimes, the OPP also provides professional support to prosecution witnesses and victims of crime involved in its cases. Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result

Quantity

Number of briefs prepared and hearings attended number 70,100 68,500–73,500 0.0 P

Judicial Officer sitting days requiring prosecutors number 9542 9500–10,500 0.0 P

Number of victim and witness consultations number 10,482 9750–10,750 0.0 P

Quality

Guilty outcomes (guilty pleas and trial convictions) as a per cent 89.0 85 4.7 P percentage of case completions

Timeliness

Proportion of trials listed which did not proceed to per cent 98.9 99 –0.1 š adjournment on application of the Crown

Cost

Total output cost $ million 66.6 69.6 –4.3 P

Note: P Performance target achieved or exceeded. š Performance target not achieved – within 5 per cent variance.

29 Protecting individual rights and personal identity

These services safeguard the Victorian community By achieving a high accuracy rate, BDM is able to through the provision of services relating to rights and ensure a high level of confidence concerning personal equal opportunity, life-event registration and identity identity, particularly identity in relation to a citizen’s birth protection as well as advocacy and guardianship for and the significant life events of marriage and death. Victorians with a disability or mental illness. BDM continually aims to increase the level of accuracy of its registers. Changes to this objective during 2014–15 As a result of machinery of government changes, Percentage of complaints finalised within which took effect on 1 January 2015, amendments 12 months, Victorian Equal Opportunity and were made to this objective during 2014–15. Human Rights Commission (VEOHRC) The objective was previously ‘protecting individual The objective indicator ‘Percentage of complaints rights and encouraging community participation’, finalised within 12 months (VEOHRC)’ focuses on the however, outputs for privacy regulation and the State timely resolution of complaints. For Budget Paper 3 electoral roll and elections and associated indicators performance reporting purposes, the percentage of were transferred to the Department of Premier and complaints finalised within six months is also reported. Cabinet effective 1 January 2015. As a result, the Due to the nature and complexity of complaints objective was reworded to ‘protecting individual rights received, some complaints require longer than 12 and personal identity’. months to be finalised, such as where an alteration to a building is required to enable disabled access. Some Progress towards achieving this objective parties to a complaint may also require more than 12 months to participate in dispute resolution due to their In 2014–15, the department is reporting progress personal circumstances or health. Data for the past against this objective using the objective indicators four years are presented below identified below, as well as through its report on output performance located at the end of each output. Percentage of complaints finalised within 12 months (VEOHRC) (per cent)

Outputs 2011–12 2012–13 2013–14 2014–15 • Protecting Community Rights 96 95 98 98 Objective indicators VEOHRC has consistently finalised complaints within • Accuracy of the births, deaths and marriages register 12 months. In 2013–14 and 2014–15, 98 per cent of • Percentage of complaints finalised within 12 months complaints were finalised within a 12 month period. (Victorian Equal Opportunity and Human Rights VEOHRC contributes to the department’s objective Commission) of ‘Protecting individual rights and personal identity’ by achieving dispute resolution objectives as Accuracy of the births, deaths and marriages defined in theEqual Opportunity Act 2010 (the Act). register Approximately 1050 complaints are received annually The objective indicator ‘Accuracy of the births, deaths and the Act requires dispute resolution to be offered in and marriages register’ is defined as the percentage a manner appropriate to the dispute, that is fair to all of the total number of registrations for a year that parties and consistent with the objectives of the Act. contain an error in the details. It includes errors made The dispute resolution process is designed to avoid parties by the Births, Deaths and Marriages Registry (BDM) becoming entrenched in the dispute and to respond to and errors by the external data entry contractor circumstances where matters are urgent in nature, for in recording information provided by applicants. It example, when employment may be terminated. excludes errors made by an applicant in supplying the information. Data for the past four years of this Output: Protecting community rights objective indicator are presented in the table below:

Average accuracy of the Births Deaths and Marriages New powers of attorney laws register (per cent) The Powers of Attorney Act 2014 (the Act) received Royal Assent in August 2014 and commenced on 2011–12 2012–13 2013–14 2014–15 1 September 2015. 99.75 99.81 99.70 99.69 The Act clarifies and consolidates aspects of the The accuracy of the births, deaths and marriages laws for general and enduring powers of attorney register has remained above 99.5 per cent over the (POA) under the Instruments Act 1958, and enduring last four years. This is a result of continuous monitoring powers of guardianship under the Guardianship and and business improvements undertaken to maintain a Administration Act 1986, to encourage more Victorians Report of operations high level of accuracy. to use, understand and recognise POAs.

30 Department of Justice and Regulation Annual Report 2014–15

The Act provides a new, consolidated enduring power of on behalf of the State, led development of an alternative attorney for financial and personal matters, creates the new legislative framework for recognising traditional owners’ role of supportive attorney, provides guidance on assessing rights and enhancing economic and cultural outcomes for a person’s decision making capacity and improves the Indigenous people in Victoria. This framework is set out in the protection of vulnerable people against abuse of enduring Traditional Owner Settlement Act 2010 (Vic.) (the Act). powers of attorney. A settlement package negotiated under the Act can include In a legal first for Australia, the changes allow a person with an Indigenous Land Use Agreement to permanently settle all decision making capacity to appoint a supportive attorney native title claims along with a suite of agreements, including: to support them to make or give effect to some or all of • a Recognition and Settlement Agreement that formally their own decisions, be they personal, financial or other recognises a traditional owner group and its rights over decisions. Crown land, and includes measures to strengthen its In preparation for the commencement of the Act, the identity and culture department developed a number of forms prescribed in • a Land Agreement that provides for grants of freehold regulations, as well as online forms available on the Office title for cultural or economic purposes, or Aboriginal title of the Public Advocate website. of parks and reserves to be jointly managed with the In partnership with other government agencies and State (through a Traditional Owner Land Management professional bodies, the department undertook an Agreement under the Conversation, Forests and Lands education campaign to ensure that key groups of Victorians Act 1987 (Vic.) are aware of the changes and to encourage take up of the • a Funding Agreement to enable traditional owner reforms. Target groups include: corporations to manage their obligations, pursue their aspirations and undertake economic development activities • Aboriginal and culturally and linguistically diverse (CALD) • a Natural Resource Agreement to provide for participation communities where the use of powers of attorney is low and employment in the management of land and natural • senior Victorians and people with a disability, particularly resources and to give effect to traditional owners’ rights for the introduction of supportive attorney appointments to take and use specific natural resources • legal, medical and financial professionals. • a Land Use Activity Agreement to enable activities to proceed on Crown land while demonstrating respect Registry system replacement underway for traditional owner rights, accommodating traditional The Registry of Births, Deaths and Marriages (BDM) is owners’ interests and compensating them for the impact responsible for managing civil registration in Victoria, including on their rights. keeping in perpetuity the registers for births, deaths, In 2014–15, the department led a range of negotiations marriages, adoptions, domestic and caring relationships, under the Act on behalf of the State: and changes of name. BDM maintains more than 14 million digital records, images and indexes in its system. • continued re-negotiation of the 2007 native title agreement with the Gunditjmara people, to bring those In 2013, a project to replace the core business system agreements within the Victorian Act commenced. The 25 year old core business system is reaching the end of its life and is no longer meeting BDM’s • worked with the Wotjobaluk native title group to business needs or the expectations of the community. determine their readiness to renegotiate their 2005 native title agreements under the Act During 2014–15, BDM undertook an innovative • assessed that the Taungurung people had met the procurement process, which included global market testing, threshold requirements for entering into negotiations in collaborating with short­-listed vendors to ensure a sound September 2014. In March 2015 the Victorian Government understanding of BDM’s requirements and releasing a select agreed to commence negotiations under the Act tender. A contract was awarded in June 2015. • commenced evaluation of the Eastern Maar threshold The successful vendor, Object Consulting Pty Ltd, will statement using the State’s Threshold Guidelines to deliver the replacement system in the first half of 2017 and determine whether the Eastern Maar people are ready to will provide its support and maintenance until 2028. negotiate under the Act. BDM has commenced data cleansing activities to prepare Barrier to compensation removed for sufferers of for the migration of quality data from the existing system to asbestos-related disease the new system. In the remainder of 2015, system design In March 2015, the Wrongs Amendment (Asbestos Related workshops will take place that will involve the vendor, Claims) Act 2015 (the Act) came into operation. The Act subject matter experts, service partners and citizens. operates retrospectively and prospectively to exempt Native title negotiations continue plaintiffs suffering asbestos-related diseases who make a claim for non-economic loss, from needing to show that Acknowledging the difficult nature of having native title they have suffered a ‘significant injury’ under theWrongs determined under the Native Title Act 1993 (Cwlth), and Act 1958 (the Wrongs Act). seeking to achieve positive policy outcomes, the department,

31 Protecting individual rights and personal identity

The procedures for demonstrating significant injury set out The offence had been criticised by the Law Institute of in the Wrongs Act can take several months to complete Victoria, the Criminal Bar Association, Liberty Victoria, the but plaintiffs with asbestos-related diseases (asbestosis, Human Rights Law Centre, Living Positive Victoria and the mesothelioma, asbestos-related pleural disease and Victorian AIDS Council. The major criticism of the offence asbestos-induced carcinomas) are usually gravely ill. The was that it was discriminatory, in that it could only be amendments alleviate the extra burden and delay these committed by persons living with HIV. Section 19A applied procedures create for plaintiffs and their families. a harsher penalty for transmission of HIV compared with other similar offences. The maximum penalty for offences The need for the amendments was triggered by the involving the intentional transmission of any other disease Supreme Court judgement in Multari v Amaca, in which is 20 years imprisonment. These offences will continue to the Court held that the Wrongs Act applied to a plaintiff apply to conduct that involves the deliberate transmission with an asbestos-related disease in the same way as other of HIV. plaintiffs who had to establish that they had a significant injury, despite the imminence of death due to the disease. This law unfairly stigmatised those living with HIV and had the potential to discourage HIV testing. Reforms to Victoria’s succession laws The Justice Legislation Amendment (Succession and Regulation of legal profession now more Surrogacy) Act 2014 was passed in October 2014. It consistent made changes to Victoria’s succession laws, which A new Uniform Law to regulate the legal profession began govern what happens to the assets of Victorians after on 1 July 2015. The law is template legislation designed they die and the transfer of wealth from one generation to harmonise the regulation of the legal profession in to the next. participating states and territories. Changes were made to the Administration and Probate Act NSW and Victoria are currently the only states participating, 1958 to: but collectively represent 72 per cent of the Australian legal profession. Both states are encouraging other jurisdictions • make the rules for payment of debts of an estate easier to join the scheme. to understand • improve the small estates scheme so that more people The benefits of the change for the profession and could take advantage of the scheme consumers include: • simplify the procedure to make a statutory will. • standardised regulatory obligations These changes were designed to ensure that the law • better and more flexible complaints-handling of succession operates justly, fairly and in accordance procedures with community expectations. Complex and changing • a standard cost disclosure form relationships and family structures, longer life spans and a • more effective and targeted regulatory tools for local more accessible legal system have all affected the operation regulatory bodies, including the power to audit law of succession laws. practices and issue management system directions The law of family provision, which regulates who can • lower barriers to entry for appropriately qualified foreign challenge the distribution of a deceased’s estate, was lawyers. also amended to make it clear that only relatives and Under the Uniform Law, lawyers who work for government dependants of the deceased can make claims for further will be required to hold a current practising certificate in provision from an estate. These changes responded to much the same way that inhouse counsel working for community concern that it was too easy to challenge a business are required to do. In order to give government will in Victoria and that estates were open to opportunistic lawyers sufficient time to apply for a practising certificate, claims from non-family members. this requirement will come into force on 1 October 2015. The changes were informed by recommendations from A Legal Services Council was established in late 2014 to the Victorian Law Reform Commission’s Succession Laws set policy under the new scheme and monitor its operation. Report released in August 2013. The Council Chair is the Hon Michael Black AC QC. A Commissioner for Uniform Legal Services Regulation, Discriminatory offence repealed Mr Dale Boucher, was also appointed in 2014 to act as the Section 19A of the Crimes Act 1958, introduced in 1993, Chief Executive Officer of the Council and to oversee the made it an offence for a person to intentionally cause Uniform Law complaints-handling framework. another person to be infected with a ‘very serious disease’, The Council and the respective jurisdictional authorities are defined exclusively to mean the human immuno-deficiency working together on implementation and on future reform virus (HIV). The maximum penalty for this offence was 25 proposals. The Council is also publicising its role and years imprisonment. meeting with other jurisdictions to promote the expansion In 2014–15, the department developed legislation to repeal of the scheme. this offence. The Crimes Amendment (Repeal of Section 19A) Act 2015 came into effect on 3 June 2015.

32 Department of Justice and Regulation Annual Report 2014–15

Report on output performance

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result Quantity Enquiries made by the community to Victorian Equal Opportunity and Human Rights Commission (VEOHRC) number 9157 8500–9000 1.7 P for information and advice Complaint files received and handled by VEOHRC number 1060 1050–1200 0.0 P Proportion of finalised complaint files resolved through per cent 40.4 35 15.4 P dispute resolution (VEOHRC) The actual is above the target due to the ongoing review of work practices (based on peer review), mentoring and coaching of conciliation staff, which has improved resolution rates. Public Advocate protective interventions for people with number 2643 2510 5.3 P a disability The actual is above the target due to increased demand for advocacy matters as a result of an influx of matters relating to the National Disability Insurance Scheme. Community education/training programs, services and events number 86 80–100 0.0 P delivered by VEOHRC Quality Births, Deaths and Marriages registration transaction error per cent 1 <1 0.4 P rate Customer satisfaction rating: Community education/training programs, services and events per cent 88 85 3.5 P delivered by VEOHRC Timeliness Timely provision of Births, Deaths and Marriages certificates per cent 94.4 90 4.9 P VEOHRC complaints finalised within agreed timeframe per cent 86 85 1.2 P Cost Total output cost $ million 35.9 34.1 5.3 ¢ The actual expenditure is above target due to website development during 2014–15 for the Office of the Public Advocate and additional cost associated with the Registry of Births, Deaths and Marriages. Note: P Performance target achieved or exceeded. ¢ Performance target not achieved – exceeds 5 per cent variance.

33 Promoting community safety through effective management of prisoners and offenders and provision of opportunities for rehabilitation and reparation

The overarching purpose of the correctional system that include at least one condition other than is to promote community safety through effective community work. Unsupervised orders comprise a management of prisoners and offenders and to range of orders that include only a community work provide opportunities for rehabilitation and reparation. condition. The most common unsupervised orders are Community Correction Orders and Fine Default There are 11 public prisons, two private prisons Orders. Parole occurs when a prisoner is placed on and one transition centre in Victoria. Community supervised conditional release. Correctional Services (CCS) are delivered through more than 50 locations across the state. Data for ‘Percentage of community correction orders completed’ are provided in the table below: Progress towards achieving this objective Completion of orders (per cent) In 2014–15, the department is reporting progress against this objective using the objective indicators 2011–12 2012–13 2013–14 2014–15 identified below, as well as through its report on 58.7 63.2 66.4 66.5 output performance located at the end of each output. Data for this objective indicator are collected quarterly and published on a disaggregated basis Outputs for performance reporting purposes. These data are also published annually in ROGS on a disaggregated • Prisoner Supervision and Support basis, which reflects the performance of the different • Community-based Offender Supervision activity streams (parole, supervised court orders, Objective indicators and unsupervised orders). The aggregated objective indicator provides a useful overall snapshot of the • Escapes from secure perimeter, corrective facilities performance of the system. • Percentage of community correction orders completed The successful completion of community correction orders provides an indication of the capacity to effectively and appropriately manage offenders in Escapes from secure perimeter, corrective the community. This includes providing opportunities facilities for rehabilitation and reparation through case The objective indicator ‘escapes from secure perimeter, management and enforcing compliance with corrective facilities’ includes escapes by prisoners conditions, including alcohol and other drug programs, from secure corrective services custody. This does not mental health programs and community work. include escapes from open camp prisons. Data for escapes from secure perimeter, corrective Output: Prisoner supervision and support facilities are provided in the table below: Increased capacity in the Victorian prison Escapes from secure perimeter, corrective facilities system

2011–12 2012–13 2013–14 2014–15 In 2014–15, 816 new prison beds for male prisoners were added to the Victorian prison system, comprising: 0 0 0 0 • a 236-bed restricted minimum facility (Middleton) Data for this objective indicator are collected on located as an annexe to the medium security an annual basis and published in the Report on Loddon Prison Government Services (ROGS). • 30 beds in portable accommodation units at The level of escapes from secure perimeter corrective Loddon Prison facilities provides an indication of the ability of the • 27 beds in portable accommodation units at the system to provide safe and secure containment of medium security Marngoneet Correctional Centre prisoners, thereby contributing to community safety. • two new units at the maximum security Metropolitan Remand Centre (100-bed and 101- Percentage of community correction orders bed respectively) completed • 126 beds in new units at the minimum security The objective indicator ‘Proportion of community Dhurringile Prison correction orders completed’ measures all orders • 54 beds in portable accommodation at the medium successfully completed that are managed by CCS. security Fulham Correctional Centre This includes parole, supervised court orders and • 142 beds at the medium security Hopkins unsupervised orders. Correctional Centre (as part of a 350 bed Supervised court orders are predominantly expansion of the prison, which is to be completed Report of operations Community Correction Orders issued by the courts later in 2015).

34 Department of Justice and Regulation Annual Report 2014–15

Fold-out beds, which were introduced at a number of male post-sentence orders when suitable accommodation prisons to provide temporary surge capacity while permanent cannot be found elsewhere in the community. As a capacity was constructed, were removed during 2014–15. consequence of increasing demand for beds at Corella Place, an additional site with 15 beds opened in April 2015. While Victoria experienced its highest prison muster of 6506 on 31 January 2015, prisoner numbers declined from early In May 2015, the government announced a review of 2015 onwards. The prison muster was 6182 prisoners the Serious Sex Offenders (Detention and Supervision) on 30 June 2015. This decline enabled beds at some Act 2009 led by former Court of Appeal Judge, the locations to be decommissioned. These beds will be used Honourable Justice David Harper. in the future as surge capacity in the event of unanticipated The Harper Review is considering how the Serious increases in prisoner numbers. Sex Offenders (Detention and Supervision) Act 2009 The Ravenhall Prison Project (RPP) will deliver a full service could be improved or another post-sentence legislative medium security prison that will accommodate 1000 framework be created to strengthen the protection prisoners, with capacity to expand to accommodate up to of the community from complex adult victim sex 1300 prisoners and include facilities to provide prisoners offenders and improve the management of complex with specialist mental health treatment. adult victim sex offenders who may also be violent. It is also considering the governance models for improved The RPP is a state project of significance, with a net present decision making and case management between the value of $2.7 billion ($6.3 billion nominal). The project criminal justice and mental health service systems in remains on track. Construction began in early 2015 and will relation to these offenders. The report is due to be become operational by late 2017. completed by 30 October 2015. Long-term master planning for all public prison locations was completed in June 2015, providing a blueprint for future Clinical and therapeutic services expanded expansion of the prison system and identifying required Prisoners and offenders have higher levels of chronic changes to supporting infrastructure and utilities. Based on disease, alcohol and drug dependency and mental illness. these master plans, $124.9 million in funding was provided Victorian research shows that over 30 per cent of those in the 2015–16 State Budget for expansion of critical who have had contact with mental health services have a infrastructure and services in the men’s prison system. history of arrest or conviction for criminal offences. To meet demand in the women’s system, funding of In 2014–15, the department worked closely with $119 million was approved for expansion of the women’s stakeholders, including Victoria Police, the Department of prison system in the 2015–16 State Budget. This funding Health and Human Services (DHHS) and Court Services provides for expansion at the maximum security Dame Victoria to take a whole-of-system approach to the interface Phyllis Frost Centre (DPFC) and minimum security issues for mental health and justice domains, including Tarrengower women’s prison locations to meet demand pathways between police, courts and custodial and non- for prison beds. This includes construction of a much- custodial mental health care. needed new dedicated mental health unit at DPFC, as well as supporting infrastructure and services for women The department also: prisoners and offenders. • increased primary health services in the public prison system by 37 per cent, including the initiation of Sex offender management reception activity at the Metropolitan Remand Centre The Serious Sex Offenders (Detention and Supervision) • completed the implementation of JCare, the electronic Act 2009 requires serious sex offenders who present an health record system, in all Victorian prisons, which unacceptable risk to the community to be subject to post- enables timely and accurate prisoner medical sentence supervision or detention. These orders include information conditions designed to reduce risk and facilitate treatment • introduced a Mobile Forensic Mental Health Service at and rehabilitation. the Metropolitan Remand Centre The specialist approach to the management of serious sex • increased clinical resources at the Melbourne offenders is necessary to effectively manage and reduce Assessment Prison, including new therapeutic services long-term sexual recidivism, increase community safety for men at high suicide risk and reduce crime. Reducing risk to the community posed • increased consultant psychiatry services and mental by serious sex offenders continues to be a prominent and health nursing across the public system ongoing priority. • implemented the Statewide Hepatitis Program for As at 30 June 2015, there were 116 serious sex offenders Victorian prisoners with hepatitis B and C, which will subject to a supervision order and two were in custody significantly improve the way hepatitis is assessed, subject to a detention order. managed and treated in Victorian prisons • continued implementation of tele-health to provide Serious sex offenders may be ordered to reside at the improved prisoner access to specialist clinics at Corella Place Residential Facility. This facility provides St Vincent’s Hospital, Melbourne supported accommodation for serious sex offenders on

35 Promoting community safety through effective management of prisoners and offenders and provision of opportunities for rehabilitation and reparation

• commenced a mobile radiology pilot service that offers conditions on offenders who have been directed to non-urgent ultrasound testing and X-ray services for reside at a residential facility. Other amendments for the prisoners at a number of public prisons. administration of orders. A memorandum of understanding between the department Corrections Amendment (Smoke-Free Prisons) Act 2014 and Department of Health and Human Services (DHHS) • Legal definitions commenced 2 July 2014. was signed in April 2015, transferring funding responsibility for public hospital services for prisoners to DHHS from • Ban on smoking in prisons commenced 1 July 2015. 1 July 2015. This provides a more transparent and Amends the Tobacco Act 1987 to make it an offence for sustainable funding mechanism. any person to smoke tobacco at or in any part of a prison. The 2015–16 State Budget provides funding to deliver Includes tobacco product and tobacco smoking eight new high dependency beds at the Thomas Embling accessory as prohibited substances or articles that are Hospital as well as a new purpose-built 44-bed mental not permitted on or in a prison (unless approved by the health facility at the Dame Phyllis Frost Centre. The Budget Governor in Council). also provides funding to expand secondary health beds for Permits the Governor in Council to make regulations male prisoners. with regard to the prohibition and regulation of smoking and tobacco products in prisons. Legislative amendments A number of legislative amendments commenced during Corrections Amendment (Breach of Parole) Act 2013 2014–15, including: • Commenced 1 July 2014. Corrections Amendment (Further Parole Reform) Makes it an offence for a prisoner who is on parole to Act 2014 breach a prescribed term or condition of their parole without reasonable excuse. The penalty for this offence • Commenced 1 July 2014. is a term of imprisonment of up to three months. Provides a two-tier process for release of a prisoner on Police will have the power to arrest and detain a person parole for a serious violent or sexual offence. Establishes if they are in breach of a term or condition of their parole. a serious violent offender and sexual offender (SVOSO) division of the parole board. Any additional sentence imposed for the new offence will be served cumulatively after the completion of other Specifies a new requirement to be met before a prisoner, prison sentences. who had parole cancelled and was convicted of an offence while on parole, will be eligible for release on parole. Major contractual developments If a prisoner is sentenced to another prison sentence Major contract extensions or new contracts that while on parole, the prisoner’s parole is taken to have commenced during 2014–15 include: been cancelled on the sentence being imposed. On 15 September 2014, the State of Victoria entered into Corrections Legislation Amendment Act 2014 a contract with GEO Consortium to design, build, finance, • Series of amendments commenced 1 July 2014. maintain and operate a new male prison to be located at Ravenhall in Melbourne’s western suburbs. Construction A number of amendments were made to the Corrections of the facility commenced in early 2015 and the project is Act 2014, including to expand the circumstances in proceeding according to the timelines set out in the project which letters can be stopped and censored, broaden agreement. The new prison will initially accommodate 1000 the circumstances in which escort officers may prisoners, with built capacity for 1300 prisoners should this discharge firearms and list conditions to which a parole be required in the future. order is subject if the Adult Parole Board (APB) attaches an electronic monitoring requirement. Creation of an A new five-year contract with G4S Custodial Services for offence for failure to comply with electronic monitoring the transport of prisoners between courts, prisons, youth condition of a parole order and other parole-related justice centres and police stations has been signed and will amendments. commence on 1 October 2015. Amended the Prisoners (Interstate Transfer) Act 1983 to An extension of the contract with the GEO Group to operate reflect changes made to the national scheme. the Fulham Correctional Centre for a further 19 years and Amended the Serious Sex Offenders (Detention and three months has been signed and will commence on Supervision) Act 2009 to enable the APB to impose 1 July 2016.

36 Department of Justice and Regulation Annual Report 2014–15

Report on output performance

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result Quantity Total annual daily average number of prisoners number 6350 6480–6985 –2.0 š Average daily prison utilisation rate of total prison capacity per cent 90.2 90–97 0.0 P Proportion of benchmark measures in prison services per cent 84.8 90 –5.8 ¢ agreement achieved The actual is below the target due to the continuing impact of the expansion of the prison system, which has influenced prison performance against service delivery outcome benchmarks. While performance on measures related to assault and drug use has improved since the previous year, the rapid expansion of the prison system has impacted measures related to prison industry capacity, staff WorkCover and occupational health and safety and prisoner survey results. Quality Rate of return to prison within two years per cent 44.1 <40.3 –9.4 ¢ The actual is above the maximum target due to more prisoners having parole cancelled and being returned to custody due to changes to policy and practice in the operation of the parole system. Rate of prisoner participation in education per cent 35.7 >33.1 7.9 P The actual is above the target, which is based on the national average from the prior year. Proportion of eligible prisoners in employment per cent 89.3 >74.4 20 P The actual is above the target, which is based on the national average from the prior year. Cost Total output cost $ million 901.1 942.1 –4.4 P Note: P Performance target achieved or exceeded. š Performance target not achieved – within 5 per cent variance. ¢ Performance target not achieved – exceeds 5 per cent variance.

Output: Community-based offender supervision • The new dedicated workforce in CCS, focusing on the management of parolees, commenced on 1 Enhancements to correctional services April 2015. Implementation of this initiative included recruitment and training of 150 CCS staff between Corrections Victoria implemented a significant reform November 2014 and April 2015. agenda across prisons and Community Correctional Services (CCS) in 2014–15 as a result of the review of • The new process requiring prisoners to apply for parole the adult parole system in Victoria by former High Court was commenced in March 2015, with more than 600 Judge, the Honourable Justice Ian Callinan AC. The applications from prisoners received by the Adult reforms and system enhancements include the following: Parole Board between March and the end of May 2015. • Contracts for new pre-and post-release programs • Implementation of legislative provisions that introduced to assist prisoners in their transition from custody to a new offence of breach of parole, were commenced the community were awarded in October 2014. The on 1 July 2014. This includes work between CCS, the programs commenced in January 2015 and are being Adult Parole Board and Victoria Police. delivered by the Victorian Association for the Care and • The new Offending Behaviour Programs service Resettlement of Offenders (VACRO), the Australian delivery model, was introduced on 1 April 2015. The Community Support Organisation (ACSO), Jesuit new model provides a state-wide approach to the Social Services and the Victorian Aboriginal Legal delivery of offending behaviour programs and services, Service (VALS). which ensures consistency, credibility and confidence • The new risk of re-offending assessment tool for in service delivery. offenders, which commenced operation in January 2015 across CCS and prisons, was introduced. At the end of 2014–15, 22 of the 23 measures Ongoing training is scheduled on a regular basis. recommended had been fully implemented. The one outstanding measure, the case workflow system • Implementation of the Adult Parole Board two-tier at the Adult Parole Board, will be implemented by decision-making process for granting parole to serious December 2015. violent or sex offenders commenced on 1 July 2014.

37 Promoting community safety through effective management of prisoners and offenders and provision of opportunities for rehabilitation and reparation

Increasing number of offenders under Community To support Corrections Victoria’s capacity to manage this Correctional Services supervision increasing demand, the 2015–16 State Budget provided In the latter part of 2014–15, the number of offenders $65 million in output funding and $26 million in capital on supervised court orders significantly increased. After funding to expand the capacity of CCS to supervise increasing by more than 1000 in 2014, the number of offenders in the community. This included $2 million offenders on supervised court orders increased by more over two years for family violence programs to address than 1500 in the six months to 30 June 2015. Since perpetrator behaviour. March, the number of offenders on supervised court orders The funding provides for 143 additional CCS staff, a increased by approximately 70 per week. number of new CCS locations and a suite of programs The key drivers of this growth in offender numbers are and services aimed at reducing recidivism and increasing the abolition of suspended sentences, increased use of opportunities for offenders to make reparation to the a combined sentence of imprisonment and a Community community. The Budget also provides pilot funding for Correction Order (CCO), and the Guideline Judgement four mental health clinicians across the Melbourne and on the CCO handed down by the Court of Appeal on 22 Sunshine Magistrates’ courts. These staff will provide December 2014. The Guideline Judgement confirmed that advice to inform the appropriateness of including a mental the CCO is capable of being highly punitive and, as such, health treatment and rehabilitation condition for inclusion may be suitable for relatively serious offences that might on a CCO. The pilot aims to improve the quality of mental previously have received a medium term of imprisonment health screening and recommendations provided to the (Boulton v The Queen; Clements v The Queen; Fitzgerald v court when magistrates are considering including a mental The Queen [2014] VSCA 342). health condition on a CCO. Report on output performance

Unit of Performance Performance measures measure 2014–15 actual 2014–15 target variation (%) Result Quantity Average daily offenders under community-based number 8362 7798 7.2 P supervision The actual is above the target due to significant growth in the number of supervised offenders. number Community-work hours performed 739.5 650–750 0.0 P (‘000) Quantity Rate of return to corrective services within two years per cent 24.9 <24.8 –0.4 š of discharge from a community corrections order Offenders with a supervised order that has been per cent 59.9 60–65 –0.2 š successfully completed Offenders with an unsupervised order that has been per cent 72.7 61 19.2 P successfully completed The actual is above the target due to an increased focus on the completion of community work hours within Community Correctional Services. Timeliness Offenders with a treatment or personal development program condition who have been appropriately referred per cent 95.1 95 0.1 P to a program within set timelines Cost Total output cost $ million 127.5 153.3 –16.8 P The actual expenditure is below target due to the transfer of funding to the Prisoner Supervision and Support output relating to the implementation of parole reform and the carryover of funding into 2015–16. Note: P Performance target achieved or exceeded. š Performance target not achieved – within 5 per cent variance.

38 Minimising injury and property loss through coordinated and integrated emergency management

This objective supports the delivery of a coordinated, fires and explosions reported to Insurance Statistics all hazards approach to emergency management, Australia (ISA).9 focusing on risk mitigation and active partnership with The value of domestic insurance claims from fire the Victorian community. events reflects efforts to reduce the likelihood, effect Emergency management encompasses prevention, and consequences of emergencies on communities. preparation and planning for, responding to and Lower or decreasing asset losses from fire events recovering from natural disasters (such as bushfires, represent a desirable outcome. These data are floods and severe storms), the consequences sourced from the ROGS 2015 Fire and Ambulance of terrorism, hazardous material incidents (such Services dataset. as chemical spills and gas leaks), and individual In Victoria from 2010–11 to 2013–14, the value of and personal emergencies (such as land and sea domestic fire event insurance claims for: rescues, car accidents and individual residential and commercial residence fires). • average claims—showed a 35.0 per cent increase from an average claim of $32,978 in ‘Minimising injury and property loss through a 2010–11 to an average claim of $44,524 in coordinated and integrated emergency response’ 2013–14 contributes to the following key government priorities: • claim per person—showed a 27.8 per cent increase from $18.35 per person in the population • continue to drive closer collaboration of in 2010–11 to $23.45 per person in the population emergency management agencies through in 2013–14. governance and reform The above costs in Victoria are comparable to those • manage risks to critical infrastructure nationally from 2010–11 to 2013–14, where domestic • strengthen the sustainability, capability and fire event insurance claims increased for: capacity of employees and volunteers • increase support for volunteers • average claims—showing a 22.7 per cent increase, from an average claim of $36,429 • strategically invest to drive an all-hazards all in 2010–11 to an average claim of $44,714 in agencies approach through interoperable assets, 2013–14 networked systems, infrastructure and services. • claim per person—showing a 5.3 per cent Progress towards achieving this objective increase, from $17.80 per person in the population in 2010–11 to $18.74 per person in the population In 2014–15, the department is reporting progress in 2013–14.10 against this objective using the objective indicators See Figures 4 and 5 for Victorian trends. identified below, as well as through its report on output performance located at the end of each output. Figure 4: Average value of domestic fire event insurance claims in Victoria, 2010–11 to 2013–14. Outputs • Emergency management capability Domestic fire event insurance claims (Victorian households) Objective indicators 50 000 • Value of domestic fire insurance claims7 45 000 • Rate of deaths from emergency events 40 000 (per million people)8 35 000 30 000 25 000 Value of domestic fire insurance claims 20 000 Average value The value of asset losses from fire events is defined 15 000 as the estimated monetary value of the damage 10 000 to domestic property and contents caused by the 5 000 fire and firefighting operations based on insurance 0 claims. It does not include land value. The value of 2010–11 2011–12 2012–13 2013–14 insurance claims from fire events is the sum of the Years incurred claims on insurance companies related to

7 The ROGS measure ‘total value of fire insurance claims per person in the population’ is used as a proxy for ‘property loss from structure fire – current year dollars per person (firefighter assessed property loss), 9 Report on Government Services 2015, Chapter 9 ‘Fire and Ambulance which was discontinued as a ROGS measure in 2015. Services’, page 9.37 – Box 9.13, Value of asset losses from structure fire. Report of operations 8 The most recent data available for ‘Rate of deaths from emergency 10 Report on Government Services 2015, Chapter 9 ‘Fire and Ambulance events’ is 2013 (Australian Bureau of Statistics). Services’, page 9.37.

39 Minimising injury and property loss through coordinated and integrated emergency management

Figure 5: Total value of domestic fire event insurance Road crash incidents are the single largest contributor to claims per person in the population in Victoria, 2010–11 reported deaths from emergency events by a substantial to 2013–14. factor. A low or decreasing number of deaths from emergency Total value of domestic fire event 13 insurance claims (Victorian households) events is desirable. These data are sourced from the ROGS 2015 Emergency Management dataset (2012), 26.00 Australian Bureau of Statistics Causes of Death data and 24.00 Estimated Resident population data (2013).14 22.00 The trend in deaths from emergency events in Victoria has 20.00 been decreasing over the four years from 2010 to 2013.15 In 18.00 2013, there were 47.9 deaths per million people, a 31 per 16.00 cent decrease from 2010, when there were 69.8 deaths per 14.00 million people from emergency events (see Figure 6). 12.00 The Victorian result is similar to the national trend, which 10.00 showed a 22 per cent decrease in the rate of deaths from 2010–11 2011–12 2012–13 2013–14 Claims per person in the population $ emergency events from 2010 (74.5 deaths per million Years people) to 2013 (60.9 deaths per million people). Historically, Victoria has been vulnerable to a range of hazards. Figure 6: Deaths from emergency events in Victoria (per Bush and grass fires pose the largest annual risk to the safety of Victorians; however, other hazards also pose serious risks million people), 2010 to 2013 to the physical, social, environmental and economic wellbeing Deaths from emergency events (Victorian) of Victoria.11 Such events may contribute to an increase 80.0 in insurance claims, where landowners have experienced building, livestock or crop loss as a result of fires. 70.0 60.0 Data relating to insurance claims may not reflect actual 50.0 asset losses due to the following factors: 40.0 • insurance payouts are limited by the estimated value of 30.0 assets a policy holder provides when taking out insurance 20.0 • data provided by Insurance Statistics Australia (ISA) Rate per million people 10.0 cover an estimated 68.9 per cent of Australian dwellings 2010 2011 2012 2013 • new for old policies replace an old asset for a new Years equivalent • most small fire incidents will not be recorded in the Between September 2010 and March 2014, there have insurance data due to the need for policy holders to pay been a number of incidents in Victoria, including severe 12 an excess prior to claim. thunderstorms (February 2011), a tornado in north-east­­ Victoria (March 2013) and a grassfire in the Mickleham/ Rate of deaths from emergency events Kilmore area (February 2014)16 that contributed to trends in ‘Deaths from emergency events’ is defined as the number insurance claims and the rate of deaths and injury. of deaths per million people in a calendar year. This measure consists of three categories: The frequency and severity of these events is beyond the control of Emergency Management Victoria (EMV); • road traffic deaths—deaths primarily caused by however, the organisation continues to work closely with accidents involving road transport vehicles (mainly cars) communities, government, agencies and business to • fire deaths—deaths primarily caused by exposure to reduce the impact of emergency events. Current and future smoke, fire or flames EMV programs and initiatives are focused on strengthening • deaths from exposure to forces of nature—including capacity to withstand, plan for, respond to and recover from exposure to excessive natural heat or cold, exposure emergencies. to sunlight, being a victim of lightning, earthquake, volcanic eruption or avalanche, landslide and other earth movements, being a victim of cataclysmic storm, and victim of flood. 13 Report on Government Services 2015, Volume D ‘Emergency Management’, page D.21 – Box D.7, Deaths from Emergency Events. 14 ABS 3303.0 Causes of death, Australia, 2013; ABS 3303.3 Causes of death, Victoria, 2013; ABS 310104 Estimated Resident Population, States and Territories (Number). 15 The time delay for these data relates to the time it takes the coronial court to 11 Emergency Management Strategic Action Plan 2015-2018. Sourced from verify a code for a case, and then close the case. This can take greater than www.emv.vic.gov.au/plans/strategic-action-plan/ (August 2015) 12 months, depending on the circumstances surrounding a death. 12 Report on Government Services 2015, Chapter 9 Fire and Ambulance 16 Emergency Management Strategic Action Plan 2015–2018. Available online Services, pages 9.38 – 9.39. at emv.vic.gov.au/plans/strategic-action-plan/ (August 2015).

40 Department of Justice and Regulation Annual Report 2014–15

Output: Emergency management capability The Hazelwood Mine Fire Inquiry Report made recommendations and affirmations to improve safety at A new approach to emergency management in the three major coalmines in the Latrobe Valley and across Victoria is now established Victoria. The Emergency Management Act 2013 (the Act) The Victorian Government’s Implementation Plan was commenced on 1 July 2014. The Act focuses on mitigation, tabled on 14 October 2014. emergency preparedness, coordination and networked During 2014–15, the department led or participated in response and recovery. the implementation of a number of response initiatives New governance arrangements are now operating for including: emergency management in Victoria, establishing an all • the establishment of a new Latrobe City CFA District hazards all agencies approach that reduces and mitigates the impact of emergencies on communities. • the creation of a dedicated taskforce with relevant agencies and the four Victorian brown coal mine The new management arrangements include: operators to work together on planning and • the State Crisis and Resilience Council (SCRC) as the preparedness for the 2014–15 and future fire seasons statutory peak emergency management advisory body • fire prevention and mitigation undertakings by the responsible for whole of government policy and strategy Latrobe Valley and Anglesea coal mine operators across the emergency management spectrum. • progressing the adoption of safety standards in relation • Emergency Management Victoria has overarching to carbon monoxide, airborne particles, community and responsibility for the implementation of emergency firefighter safety standards and protocols, and smoke management reform in Victoria and supports the guidance Emergency Management Commissioner. • progressing the development of community focused • The Emergency Management Commissioner has engagement and emergency information initiatives. legislated coordination and control responsibilities On 26 May 2015, the Victorian Government announced over major emergencies in the State of Victoria. The the reopening of the Hazelwood Mine Fire Inquiry, to be Commissioner is responsible for the overall response led by the Honourable Bernard Teague AO who joined by to major emergencies including coordinating the Professor John Catford and Mrs Anita Roper. The reopened management of the consequences of the emergency. inquiry’s limited terms of reference focus on human health The Commissioner also drives sector improvements in impacts and mine rehabilitation. operational capability and interoperability. EMV will continue to contribute to the government’s • the Inspector-General for Emergency Management, implementation and monitoring plan and provide evidence who provides assurance to the government and the to the reopened inquiry as required. community in respect of emergency management arrangements and fosters continuous improvement of Interim Strategic Action Plan delivers emergency management in Victoria. achievements • volunteers, who are vital to delivery of all aspects of emergency management, have a new Volunteer In its first year, EMV’s focus included delivering against Consultative Forum which focuses on volunteer-related the actions outlined in the one-year Interim Strategic issues and sector reform. A major challenge facing Action Plan (ISAP). The ISAP actions concentrated on the sector is the recruitment, retention and training strengthening Victoria’s emergency management capability of volunteers in the context of an ageing population, under the three key themes of Risk and Resilience, particularly in regional areas. Response and Capability, and Relief and Recovery. Since its creation on 1 July 2014, Emergency Management Key achievements of the Interim Strategic Action Plan Victoria (EMV) has pursued an agenda of whole-of- 2014–15 include: government, multi-agency reform to achieve a safer and • completion of five community-based emergency more resilient Victoria. management plans and the continuing development of additional plans in priority risk areas Response to the Hazelwood Mine Fire Inquiry • update of existing standard operating procedures and The report of the independent inquiry into the circumstances development of others, required for joint operations by of the Hazelwood mine fire of February 2014 was tabled in responder agencies the Victorian Parliament on 2 September 2014. • ongoing development of shared protocols to foster more The Latrobe Valley, and in particular Morwell, endured effective joint operations by responder agencies significant impacts from smoke and ash during the • the Country Fire Authority and Metropolitan Fire Brigade Hazelwood mine fire. The inquiry examined the emergency conducting the first joint recruit course to deliver fire-fighter response to the fire and the support provided to Morwell training at the new Victorian Emergency Management residents and other affected communities. Training Centre (VEMTC) located in Craigieburn

41 Minimising injury and property loss through coordinated and integrated emergency management

• development of an impact assessment model and Mobile data network extended associated guidelines to assist with recovery planning The Emergency Services Telecommunications Authority and reduce duplication of effort by multiple agencies (ESTA) and EMV, on behalf of the State, negotiated • completion of the Victorian Emergency Management a two-year extension, with provision for a further two Capability Blueprint, which outlines the current optional one-year extensions, to the existing Mobile and desired future state for Victoria’s emergency Data Network (MDN). The MDN is a data switching management capability. network for Victoria Police and Ambulance Victoria, On 1 July 2015, the Victorian Emergency Management providing connectivity between mobile data equipment Strategic Action Plan (SAP) 2015–2018 was released. The in the field, their corporate databases, and the call- SAP is a three-year rolling plan that outlines state-wide taking and dispatch environment, enabling the efficient strategic priorities, with corresponding actions, to support dispatch of emergency service resources to events Victoria in achieving its vision of safer and more resilient in the field. The renegotiated contract provides an communities. It guides reform, identifies priority actions across upgrade path to move the sector towards a future government and assists with investment decision making. broadband network, a key action of the Operational Communications Plan, by: Upgrading operational communications • moving away from the use of dedicated equipment The Emergency Management Operational Communications and infrastructure Program (the Program) sets out a 10 to 15 year plan to • trialling a range of off-the-shelf, strengthened user transition over 20 existing operational communication devices, such as tablets and smartphones networks into a single, secure, state-wide system and • leveraging commercial broadband data networks in provide broadband data capability by leveraging the addition to the dedicated network and commercial 2G commercial telecommunications networks. network on which the service currently operates. Victoria currently spends over $150 million annually Radio blackspot remediation program completed on dedicated emergency management operational communications. The complexity of existing contracts, CFA completed a program to fix radio blackspots caused technological transitions and a high level of interdependency by a lack of radio signal due to forests or steep terrain. require detailed planning for the state to effectively The CFA radio blackspot remediation program consisted strategically source, procure and transition services. of 78 sites for priority treatment. At July 2015, 52 have been fully remediated. The remaining 26 sites are The Program aims to deliver significantly greater capability technically complete and ready to be switched on. for the sector, largely within the existing funding envelope, by eliminating duplication in operational communications. Mobile blackspot remediation announced Centralised governance, delivered through EMV, will ensure In June 2015, a major project was announced to joined up operational arrangements and a consistent and construct 109 mobile towers across rural and regional coordinated approach to funding, procurement and delivery Victoria to reduce communication blackspots and of the Program. improve mobile phone coverage. The Victorian Key achievements for 2014–15 include: Government committed $21 million to the Victorian Mobile Project in a joint bid with Telstra for federal Regional radio dispatch service established funds from the Commonwealth government’s $100 The full transition of all 16 Country Fire Authority districts million Mobile Black Spots Program. The Emergency to the Regional Radio Dispatch System was completed in Management Commissioner is actively contributing to the August 2014. The new digital system provides significantly Victorian Government’s work, to ensure that emergency more reliable communications between the Triple Zero (000) management priorities and bushfire vulnerable areas are dispatch service and CFA responders, including improved addressed through this program. radio coverage, voice quality and coordination. CFA is now Digital radio upgrade for regional police in the process of transitioning its remaining radio operations, including command, to the system. In the 2015–16 State Budget $11.5 million was provided for a new digital in-car mobile and portable radio system As the network service is a state contract, now known as to operate on a secure and encrypted network that will Regional Mobile Radio (RMR), other agencies will be able replace the outdated analogue police radio system used to move onto the network over time, subject to funding in regional areas. Victoria Police will also transition regional available for new digital radios and network capacity. communications onto the RMR network. Victoria State Emergency Service, Life Saving Victoria and Sheriff’s Office Victoria are in the process of transitioning A voice for emergency management volunteers operations onto the RMR network after receiving funding Volunteers are critical to Victoria’s current and future in the 2013–14 State Budget. This transition is a key step emergency management capability. There are over towards realising the Operational Communications Plan 100,000 emergency management volunteers across a vision of a single, integrated voice and narrowband data wide range of agencies. network for Victoria.

42 Department of Justice and Regulation Annual Report 2014–15

In recognition of the services and programs they deliver, as reviews, evaluations, monitoring and reporting. It also along with the needs of volunteers, the emergency describes IGEM’s assurance approach and activities and management Volunteer Consultative Forum (VCF) was will support continuous improvement across the sector. established in 2013 to provide a voice for volunteers to the In addition, throughout 2014–15, IGEM also delivered the Minister for Emergency Services and government. following initiatives. The VCF is made up of volunteers and agency nominees from Ambulance Victoria, Australian Volunteer Coast Guard, Monitored fire season compliance Country Fire Authority, Volunteer Fire Brigades Victoria, The 2013–14 Fire Season Compliance Report (released Life Saving Victoria, Red Cross, Salvation Army, St John October 2014) outlined the sector’s progress in Ambulance, Victoria State Emergency Service, Victoria implementing 86 specific actions from the 2013–14 fire Emergency Service Association and Victorian Council of season reports. Taking into account that these fire season Churches. reports were completed and released in July 2014, IGEM noted the sector’s considerable progress towards During 2014–15, the VCF made considerable progress in implementing the vast majority of actions relating to: identifying strategic priorities for emergency management volunteering in Victoria, following on from the 2013–14 • improving road traffic management focus on identifying common issues, barriers and enablers • increasing community involvement in fire preparedness, of sustainable volunteering. response and recovery The goal now is to translate this into insights that inform • initial attack and utilisation of resources sector and agency strategy, investment and planning. This • cross-border fire arrangements. strategic approach is important to ensuring that volunteering IGEM continued to monitor the sector’s progress on the is well prepared for the future and that it enables agencies, remaining actions throughout the 2014–15 fire season, to government and business to work together to modernise ensure that the recommendations identified within the report roles, systems and culture adapted to meeting people’s were implemented in full. IGEM will provide a follow-up expectations of a volunteering experience. progress report to the Minister for Emergency Services in August 2015. A program to support retention, recognition and recruitment of volunteers Monitored emergency call-taking performance The Valuing Volunteers Program (VVP) provides an IGEM undertook performance monitoring to assess the opportunity to develop innovative volunteer initiatives and non-financial performance of the Emergency Services pilot programs that directly support volunteers. Telecommunications Authority (ESTA) against agreed performance standards and reported to the Minister for In 2014–15, the department delivered approximately Emergency Services on any identified issues. $1.38 million through the VVP to deliver volunteer training, leadership and health and wellbeing initiatives. In 2014–15, IGEM assessed 79 performance-related incidents in ESTA’s call taking and dispatch activities to Recipients in 2014–15 included: the Australian Volunteer ensure that ESTA had identified systemic root causes Coast Guard Association, Country Fire Authority, Emergency and had taken appropriate actions to prevent similar Services Foundation, Life Saving Victoria, Volunteer Fire issues recurring. IGEM undertook one formal performance Brigades Victoria and Victoria State Emergency Service. investigation relating to a dispatch delay to a patient. These monitoring activities assist ESTA in identifying high-risk A new era of assurance of emergency activities, which in turn assists the organisation to develop management begun continuous improvement strategies designed to reduce Mr Tony Pearce was appointed Victoria’s inaugural potential negative outcomes for the community. Inspector-General for Emergency Management (IGEM) under the Emergency Management Act 2013 on 28 July Reviewed performance targets for bushfire fuel 2014. Under the Act, IGEM has the objectives of providing management on public land assurance to the government and the community in respect At the request of the Minister for Environment, Climate of emergency management arrangements in Victoria Change and Water and the Minister for Emergency and fostering continuous improvement of emergency Services, IGEM reviewed performance targets for bushfire management in Victoria. fuel management on public land. IGEM was asked to make In 2014–15, IGEM undertook extensive consultation with a recommendation about whether the current hectare- the emergency management sector, including agencies, based target should continue or a bushfire risk-reduction organisations and departments, to develop the Monitoring target be adopted. Following recommendations made by and Assurance Framework for Emergency Management, the 2009 Victorian Bushfires Royal Commission a hectare- which was endorsed by government in June 2015. The based target was established. The ability to reach these Framework provides the emergency management sector targets has been widely examined by the Bushfires Royal with a consistent and coordinated approach to assessing its Commission Implementation Monitor and other government capacity, capability and performance through activities such inquiries. IGEM’s comprehensive review concluded that a

43 Minimising injury and property loss through coordinated and integrated emergency management

bushfire risk-reduction target is the most effective form of In his final report, tabled in August 2014, he advised that performance target for bushfire fuel management on public implementation of 56 of the 67 recommendations was land. IGEM presented its report and recommendations to complete. government in April 2015. Following the conclusion of Mr Comrie’s appointment Monitored Bushfires Royal Commission in 2014, the government asked IGEM to monitor recommendations recommendations and related actions from the 2009 Victorian Bushfires Royal Commission reported as Since his appointment in 2010, Bushfires Royal ‘ongoing’ in his 2014 annual and final report. Commission Implementation Monitor, Mr Neil Comrie AO, APM, produced four progress updates on implementation IGEM provided its first progress report to the Minister for actions in relation to the 2009 Victorian Bushfires Royal Emergency Services on 1 August 2015, and will do so Commission recommendations. annually thereafter, until all of the implementation actions are complete. Report on output performance

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result Quantity Permanent operational staff number 2906 2833 2.6 P Permanent support staff number 1356 1385 –2.1 š Volunteers—Operational number 38,799 43,000–44,000 –9.8 ¢ The actual is below the target due to fluctuations in demand for emergency services response activities. The CFA has undertaken a data quality check, which resulted in reclassification of a number of volunteers from operational to support. Volunteers—Support number 25,376 18,000–19,000 33.6 P The actual is above the target due to a CFA data quality check, which resulted in reclassification of a number of volunteers from operational to support. Quality Road–crash rescue accredited brigades/units number 130 130 0.0 P Level 3 Incident Controller trained staff and volunteers number 152 129 17.8 P The actual is above the target due to CFA and MFB conducting training and accreditation sessions ahead of schedule and an increased emphasis on Incident Controller training. Structural fire confined to room of origin per cent 84.3 80 5.4 P The actual is above the target due to fluctuations inherent in the nature and location of fires in metropolitan and medium urban areas of Victoria. This is viewed as a positive result. Timeliness Emergency response times meeting benchmarks— per cent 87.7 90 –2.6 š structural fires Emergency response times meeting benchmarks— per cent 92.9 90 3.2 P road accident rescue response Emergency response times meeting benchmarks— per cent 94.2 90 4.7 P emergency medical response Cost Total output cost $ million 952.2 933.1 2.0 š Note: P Performance target achieved or exceeded. š Performance target not achieved – within 5 per cent variance. ¢ Performance target not achieved – exceeds 5 per cent variance.

44 Promoting responsible industry behaviour and an informed community through effective regulation, education, monitoring and enforcement

The department oversees a wide range of regulatory Victorians and informs them of their consumer rights functions, including regulation of businesses and and obligations. landlords, regulation of the gambling and liquor Consumption of CAVs consumer, tenant and business industries, and support and development of the information has risen by 80 per cent since 2012–13. racing industry. It aims to promote a well-functioning The CAV website had more than 2.9 million visits in market economy through balanced regulation and 2014–15, an increase of 24 per cent compared to the support to consumers and businesses. previous year; its social media presence also continues Progress towards achieving this objective to grow, with nearly 7000 Twitter followers and more than 23,000 Facebook page likes. In 2014–15, the department is reporting progress CAV anticipates that access to digital information by against this objective using the objective indicators consumers, tenants and businesses will continue to identified below, as well as through its report on output increase. As CAV moves towards digital transactions performance located at the end of each output. and completes its ICT transformation, it is expected that web traffic will continue to increase as businesses Outputs and community organisations use the website to • Gambling and liquor regulation and racing industry manage their licensing and registration requirements. development • Promoting and protecting consumer interests Percentage of licensed liquor venues with a rating greater than three stars Objective indicators This objective indicator demonstrates how the • Supporting informed and responsible consumers department is encouraging and rewarding responsible and traders behaviours. A star rating system for licensed venues • Percentage of licensed venues with rating that is commenced in February 2012. Under this system, greater than three stars permanent and club licences receive a star rating • Responsive Gamblers Help services based on the following criteria. • Wagering turnover on Victorian racing as a Rating Criteria proportion of the national market One star Three or more non-compliance incidents in the previous 12 months Supporting informed and responsible Two star One or two non-compliance incidents in the consumers and traders previous 12 months This objective indicator measures the volume of consumer, tenant and business information Three star No non-compliance incidents in the previous 12 months disseminated throughout the community, predominantly through access to online information provided by Four star No non-compliance incidents in the previous Consumer Affairs Victoria (CAV). 24 months The data for this objective indicator is a monthly Five star No non-compliance incidents in the previous 36 months net figure, derived from online or digital information provided by CAV and comprises of: The star rating of each permanent and club licence is recorded on 31 December as part of the process • visits to CAV website of calculating annual licence fees for the forthcoming • Facebook likes year. Permanent and club licences only receive a star • Twitter followers rating after two years without any non-compliance • CAV YouTube video views incidents. Consequently, 2014–15 is the first year • CAV SoundCloud audio plays that any licence had a sufficient compliance history to • CAV e-newsletter subscribers qualify for a rating of greater than three stars. • CAV mobile app downloads. Percentage of licensed venues with a rating that is greater Supporting informed and responsible consumers and traders than three stars

2011–12 2012–13 2013–14 2014–15 2011–12 2012–13 2013–14 2014–15 (%) (%) (%) (%) N/A 1,865,875 2,891,942 3,366,742 N/A N/A N/A 87 The increasing use of technology and rapidly The star rating system encourages responsible developing digital marketplace requires CAV to be a business practices in licensed premises and modern and effective regulator through traditional and contributes to the department’s objective to promote online channels. By providing accurate information responsible industry behaviour. The Victorian and support across digital channels, CAV empowers Report of operations Commission for Gambling and Liquor Regulation

45 Promoting responsible industry behaviour and an informed community through effective regulation, education, monitoring and enforcement

(VCGLR) regulates the liquor and gaming industries to Output: Promoting and protecting achieve high levels of voluntary compliance with liquor consumer interests laws by setting clear expectations, encouraging the right behaviour and taking strong enforcement action where Businesses held to account required. Experience has shown that when businesses comply, Responsive Gambler’s Help services consumers are protected. The department’s consumer affairs strategy is focused on achieving high levels of The indicator Responsive Gambler’s Help services measures business compliance by working with industry and partners, the percentage of Gamblers Help Service clients who receive thereby protecting the community at large. a service within five days of referral through funded agencies of the Victorian Responsible Gambling Foundation (VGRF). In 2014–15, Consumer Affairs Victoria (CAV) undertook 4433 compliance assistance visits and 3470 inspections of Percentage of clients who receive a service within five days businesses across Victoria to ensure that they are meeting of referral their consumer law obligations. It took action against 2011–12 2012–13 2013–14 2014–15 businesses that consistently flouted the law or committed (%) (%) (%) (%) serious breaches. This included finalising 21 prosecutions and 66 civil actions. Some of the key court outcomes 97 99 100 100 related to misleading and deceptive conduct, misuse Responsive Gambler’s Help services contributes to the of trust money by estate agents and the sale of unsafe objective by demonstrating the responsiveness of these products. CAV provides news alerts to the community help services and the effective education of people about many of its courts outcomes on its website at adversely affected by gambling. consumer.vic.gov.au. Over the last two financial years, performance for this This year CAV launched its new myCAV licensing objective indicator has exceeded the target, with 100 per and registrations system, an important milestone in cent of clients receiving a service within five days of referral. its transition to digital. The first regulatory scheme to move to myCAV was incorporated associations. myCAV Wagering turnover on Victorian racing as a provides secretaries of incorporated associations with a proportion of the national market direct and personalised way to manage their responsibilities towards their club or association. This objective indicator is used to determine the health of the Victorian racing industry by measuring the proportion of Prior to the introduction of myCAV, they were required to Tabcorp customers nationwide who bet on Victorian racing. complete paper forms, forward them to CAV and wait for The measure includes all racing turnover held by Tab Ltd a response. myCAV provides instant updating of records, and Tabcorp relating to Victorian events after excluding immediate registration of new incorporated associations and turnover on international events. the ability to download registration certificates without delay. Since the system was launched, 11,928 myCAV accounts Data for the indicator Wagering turnover on Victorian racing have been created, 6534 transactions completed using the as a proportion of the national market are sourced from online system and 557 new associations incorporated. Tabcorp on an annual basis and are outlined in the table below: Consumers supported to assert their rights Wagering turnover on Victorian racing as a proportion of the The department continues to support consumers by national market ensuring that they have the information and tools that 2011–12 2012–13 2013–14 2014–15 empower them to exercise their consumer rights. (%) (%) (%) (%) Contemporary digital channels are used to support responsible, confident and informed businesses, tenants 38.3 38.8 38.0 39.2 and consumers in Victoria. CAV’s digital first approach While Victoria has approximately 25 per cent of the national enables businesses, tenants and consumers to get the population and hosts around 25 per cent of the national information they need, whenever and wherever they want it. racing program, it attracts almost 40 per cent of the national In 2014–15, CAV continued to make the most of new wagering pool, as shown in the table above. technology to enable consumers to resolve their own This objective indicator displays that the level of public problems and assert their rights, while recognising that confidence in Victorian racing is high and reflects not all consumers and businesses are able to utilise this government and industry commitment to a racing industry technology, and therefore retain traditional services for when that is well managed and fairly conducted. they are required. Victorian Government support for racing is based on its In 2014–15, CAV ran information campaigns on scams, economic, social and cultural contribution to communities. understanding retirement villages, safe products for children The health of the racing industry is demonstrated through and how to assert your rights when booking travel. the professional presentation of racing events.

46 Department of Justice and Regulation Annual Report 2014–15

Consumer laws kept modern and effective Fairer, Safer Housing To deliver a modern and effective consumer law framework, CAV will play a critical role in the Victorian Government’s the department leads and participates in policy and broader program for Fairer, Safer Housing by legislative reviews. undertaking a review of the Residential Tenancies Act 1997. The rental market has changed significantly over This year, legislation was introduced into the parliament the last 20 years, and growing numbers of Australians to protect Victorians from unfair and misleading practices are renting for longer. of some private car park operators. The Road Safety Amendment (Private Car Parks) Bill 2015 removes the In June, the Minister for Consumer Affairs, Liquor and ability of private car park operators to obtain the names Gaming Regulation, Jane Garrett MP, launched the Fairer, and addresses of vehicle owners from VicRoads to recover Safer Housing website fairersaferhousing.vic.gov.au, which private car park fees. details the Victorian Government’s work program to ensure that all Victorians have access to safe, affordable and A number of car park operators require customers to buy secure housing. The website will also serve as a hub for a ticket for the time they expect to spend in a car park, the community to engage with the government on housing- and then display it on their dashboard. If a customer related initiatives. fails to obtain a ticket or parks for longer than the period they paid for, a notice may be placed on the vehicle’s The review of the Act will examine Victoria’s rental windscreen. This notice is similar to an infringement notice, laws against the modern rental market, and aim to but is a claim for liquidated damages. balance the rights and responsibilities of tenants and landlords. The first step of the review will be to uncover When a customer does not pay the amount specified trends and behaviours in the rental market through an in the payment notice, a preliminary discovery order is initial consultation paper, Laying the Groundwork. The obtained in the Magistrates’ Court of Victoria that requires consultation paper, which describes characteristics and VicRoads to disclose the name and address of the trends in the rental market, is available on the Fairer Safer registered owner of the customer’s vehicle. The car park Housing website. It is anticipated that the review will be operator will then write letters of demand for the amount completed by early to mid 2018. owed plus an additional late payment fee. The department is encouraging community engagement It is also common practice for car park operators to throughout the review, through public submissions, sell their debts to debt collection agencies, who write polls, discussion papers and videos. CAV will engage threatening letters of demand to customers. These stakeholders and the broader Victorian community practices have given rise to a number of matters of through blogs, social media and web content to significant public concern. empower all Victorians to have their say on Victoria’s The legislation before the parliament will address these issues rental laws. and protect Victorians from unfair and misleading practices.

Report on output performance

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result Quantity Information and advice provided: number 352,369 375,000 –6.0 ¢ • through telephone service The actual is below the target due to an increased focus on directing contacts to the CAV website rather than the telephone service. • through other services, including written correspondence, number 129,430 140,000 –7.6 ¢ face-to-face and dispute assistance The actual is below the target due to a reduction in the number of conciliations as consumers increasingly resolve their own disputes by using information available on the CAV website. Compliance activities, from compliance assistance through number 11,344 12,000 –5.5 ¢ to court actions The actual is below the target due to a lower than anticipated increase in market monitoring activity. This was offset by increases in inspections conducted and infringement notices issued. Transactions undertaken: number 70,679 69,500 1.7 P • registration and licensing transactions • Residential Tenancies Bonds Authority (RTBA) transactions number 432,569 448,000 –3.4 š

47 Promoting responsible industry behaviour and an informed community through effective regulation, education, monitoring and enforcement

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result Quality Customer satisfaction with services provided per cent 95.6 90 6.2 P The actual is above the target and is reflective of the high satisfaction levels of people served by CAV through the Information and Dispute Services Centre (IDSC) and Regulatory Transactions Centre (RTC) according to a customer satisfaction survey. Timeliness Services provided within agreed timeframes per cent 90.5 90 0.6 P Cost Total output cost $ million 119.1 123.4 –3.5 P

Note: P Performance target achieved or exceeded. š Performance target not achieved – within 5 per cent variance. ¢ Performance target not achieved – exceeds 5 per cent variance.

Gaming and liquor regulation and racing Expert group on responsible gambling industry development reinvigorated The Responsible Gambling Ministerial Advisory Council Voluntary pre-commitment system tested (the Council) is a statutory body established under the and ready Gambling Regulation Act 2003 (the Act) to provide advice to government on responsible gambling policy and Significant preparatory work undertaken during 2014–15 gambling research matters. has positioned Victoria for the roll out of a state-wide, networked, pre-commitment scheme for electronic gaming The Council currently consists of 20 members drawn from machines ahead of any other state or territory in Australia. industry, academia, local government and community groups who bring significant expertise to the issues The voluntary scheme, which will be fully operational by surrounding the promotion of responsible gambling and December 2015, enables people using gaming machines minimising gambling-related harm. to make informed decisions about their gaming machine play and assist them to stay in control. Participants in the The Council met five times in 2014–15 and provided scheme will be able to set time and/or loss limits, change advice on Responsible Gambling Codes of Conduct, how those limits, track their play across the state and obtain to encourage the take-up of pre-commitment in gaming player activity statements. Information about play and limits venues and on sports betting advertising. will be available to participants at the venue or online or on The department provides support to the Council and its a smart phone or tablet. working groups. Intralot Gaming Services Pty Ltd (Intralot), which holds the monitoring licence for electronic gaming machines in Gambling regulations remade Victoria, has been appointed to deliver the system. The The Gambling Regulation Regulations 2005 (the 2005 legislative framework for pre-commitment is provided by Regulations) were due to expire on 21 June 2015. the Gambling Regulation Amendment (Pre-commitment) Act 2014. In 2014–15, the department undertook comprehensive work to review the 2005 Regulations and other In 2014–15, Intralot completed the system design and special purpose regulations made under the Gambling build, and system testing. The Victorian Commission for Regulation Act 2003 (the Act) and to prepare regulations Gambling and Liquor Regulation (VCGLR) approved version to replace them. The purpose of the regulations is to 1.0 of the pre-commitment system in April 2015, with a live support the objectives of the Act, which include fostering field trial involving full deployment and testing of the system responsible gambling and ensuring that gambling is conducted in four gaming venues in May 2015. Version 1.1 conducted honestly and free from criminal influence. was approved by the VCGLR in June 2015. The department released a Regulatory Impact Statement Immediately after this, also in June 2015, a system pilot, (RIS) for the proposed Gambling Regulations 2015 enabling full deployment and testing, began in 14 venues (Regulations 2015), which considered the costs and throughout the state. Full state-wide roll out of the system benefits of the proposed regulations. As a result, minor and will occur in the second half of 2015. technical amendments were made. The department will deliver a $2 million pre-commitment The Regulations 2015 were made on 20 June 2015 information program over two years to inform players and and include provisions relating to the responsible use venue staff about the system, its features and benefits. of gaming machines in Victoria, requirements relating to

48 Department of Justice and Regulation Annual Report 2014–15

fairness to players, the integrity of gambling providers, Wholesale alcohol data to support ensuring that the benefits of gambling are distributed evidence-based policy appropriately and prescribed fees. From 1 July 2015, under amendments made to the Liquor Control Reform Act 1998, Victorian liquor licensees who sell Post-2018 lotteries licence project begun alcohol on a wholesale basis are required to provide annual In 2014–15, the department started a project to review wholesale alcohol sales information to government. current policy settings for public lotteries and to manage the The change will provide government with valuable process of awarding a new public lottery licence or licences information to support evidence-based policy development in accordance with the Gambling Regulation Act 2003. As aimed at reducing the annual cost of alcohol-related harm, part of this process, consultation was undertaken seeking which is estimated to be approximately $4.3 billion. the community’s views on current and future licensing arrangements. Work on the project is ongoing and it is Before the reforms came into effect, the department envisaged that a new licence or licences will be awarded in consulted stakeholders on the development of regulations mid 2017. and a Ministerial Order that gives effect to the reform. Consultation was undertaken with industry to identify the Liquor Control Advisory Council burden of reporting; some small independent producers of The Liquor Control Advisory Council (the Council) is a wine, beer, spirits and cider have been exempted from the statutory body established under section 5 of the Liquor requirement to provide sales information. Control Reform Act 1998 to advise the Minister on problems of alcohol abuse and other matters referred to it Program to support live music launched by the Minister. The Council plays a key role in informing the The Victorian Government launched a $250,000 Live government’s work in minimising the impacts of alcohol- Music Noise Attenuation Assistance Program (the related harm. program) in June 2015 to help live music venue owners and operators pay for the cost of soundproofing and other Council membership is drawn from industry, health and noise attenuation measures. community sector agencies, researchers and government agencies. The department provides secretariat support to An amendment to Victorian Planning Provisions (Amendment the Council and its working groups. VC120), which became effective on 4 September 2014, established the agent of change principle for live music Issues considered by the Council in 2014–15 included entertainment venues and noise sensitive residential use in the freeze on new late-night liquor licences in inner-city their vicinity. The change requires an applicant for a live music municipalities and the online supply of liquor. The Council entertainment venue or noise sensitive residences near a is expected to provide advice on the regulation of liquor venue to include appropriate noise attenuation measures as supplied online in the near future. part of a planning application. Late-night liquor licensing freeze continues Prior to the amendment, the live music venue would be solely with greater clarity for exemptions responsible for any required noise attenuation works—even On 16 June 2015, a freeze on the issuing of new liquor though it may have existed first. licences (or extended trading hours for current licences) for Some venues undertook noise attenuation works prior to supply of alcohol after 1am was extended until 30 June 2019. the introduction of the agent of change principle and have The freeze, originally implemented in May 2008, applies to had to bear the cost of these works. This program means the municipalities of Melbourne, Port Phillip, Stonnington that eligible venues that have undertaken works can now and Yarra. apply for reimbursement of those costs. The extension of the freeze is consistent with the Successful applicants to the Live Music Noise Attentuation recommendation made to government by the Liquor Assistance Program will be reimbursed for works Control Advisory Council. completed, contracted or formally quoted between 4 September 2010 and 4 September 2014. While the freeze was introduced as a holding strategy to minimise harm and prevent alcohol abuse, it was extended The initiative recognises that live music is an important on five occasions: March 2009, January 2010, March 2011, part of the social and cultural fabric of Victoria and that it June 2013 and June 2015. provides considerable economic benefit to the state with many people employed directly or indirectly in the industry. New guidelines for the Victorian Commission for Gambling and Liquor Regulation’s (VCGLR) assessment of exemption The department also provides secretariat support for applications took effect on 1 July 2015. This means the Live Music Roundtable (the Roundtable), which was certain licensees will be able to apply to the VCGLR for an established in July 2012 to support a vibrant, successful exemption to serve alcohol after 1am if they meet specified and responsible live music industry in Victoria. The criteria, such as that the extension is for the purposes of a Roundtable has 19 members drawn from the music major tourist or cultural event, a major live music or charity industry, live music venues, local councils, Victoria Police, event, or New Year’s Eve. academia and government.

49 Promoting responsible industry behaviour and an informed community through effective regulation, education, monitoring and enforcement

Protecting integrity in the racing industry Keeping Victorian racing strong In the first half of 2015, serious allegations were made The Victorian racing industry, which consists of against racing industry participants, including: live baiting thoroughbred, harness and greyhound racing, contributes of greyhounds; race fixing; the use of unauthorised about $2.8 billion in annual economic activity to Victoria; sulkies in harness racing; and the use of cobalt chloride it directly employs more than 114,000 people as workers and other prohibited substances in the training of racing or participants. animals across all three codes of racing. The department continued to administer the Victorian The Victorian Government has received the following Racing Industry Fund (VRIF), which is funded entirely from reports on certain aspects of racing regulation: unclaimed wagering dividends and on course wagering taxes. These funds are returned to the racing industry to • in April 2015, a comprehensive audit report on improve racing and training infrastructure and customer Harness Racing Victoria facilities, and for projects aimed at increasing on course • in May 2015, the Racing Integrity Commissioner’s (RIC) attendance at Victorian racetracks. findings from his special inquiry into the late scratching of horses from the 2014 Ballarat Pacing Cup During 2014–15, more than $23.8 million of VRIF funds • in June 2015, the Chief Veterinary Officer’s (CVO) was committed to support 138 projects with a total value report of his investigation into animal welfare and in excess of $50.2 million. All VRIF projects are co-funded, cruelty in the Victorian greyhound industry with the applicant or industry controlling body providing • in June 2015, the Racing Integrity Commissioner’s the balance of funding. Projects funded in 2014–15 2015 Own Motion Inquiry Into Live Baiting In Victoria. included: Allegations regarding the use of cobalt chloride in • $5 million to Racing Victoria and the Pakenham Racing thoroughbred and harness racing are currently the Club to install track lighting at the new Pakenham subject of investigations by racing industry stewards, Racecourse (Racing.com Park) recently opened at with charges laid under the rules of racing. Tynong. The racecourse is anticipated to generate up to $688 million in economic benefits to the Cardinia Allegations of live baiting in the greyhound racing industry Shire and support up to 1800 jobs have resulted in charges being laid by Greyhound Racing • $3.4 million to enable a complete reconstruction of the Victoria against 11 industry participants for breaches of racecourse at Seymour, which plays a strategic role in the rules of racing. Investigations into possible related servicing the racing and training needs of north-east criminal offences are being pursued by the RSPCA and Victoria Victoria Police. • almost $3 million through the Raceday Attraction The RIC and CVO recommended that responsibility for Program to support 76 projects across all three codes racing integrity should be separated from the commercial to encourage patrons back to the track controlling bodies and be vested in a separate statutory • $1.35 million for track renovations at Caulfield and for authority. the installation of a big screen to improve the customer The department has been requested by the Minister for experience Racing to identify potential regulatory models and provide • almost $1 million for on course stabling at the advice on the outcomes of these investigations, including Cranbourne Training Centre consultation with racing industry stakeholders and • more than $1.6 million for improvements to customer options for future governance, and integrity arrangements facilities at the Meadows and Sandown greyhound for the Victorian racing industry. racing tracks • more than $800,000 for track and facility upgrades at the Warragul, Echuca and Horsham harness racing tracks.

50 Department of Justice and Regulation Annual Report 2014–15

Report on output performance

Unit of 2014–15 2014–15 Performance Performance measures measure actual target variation (%) Result Quantity Liquor and gambling compliance activities (VCGLR) number 26,000 25,000 4.0 P Liquor and gambling licensing activities (VCGLR) number 46,020 43,000 7.0 P The actual is above the target due to a higher than expected number of liquor and licensing applications as a result of strong industry demand. Liquor and gambling information and advice (VCGLR) number 133,104 128,000 4.0 P Office of Liquor, Gaming and Racing briefings processed number 648 700 –7.4 ¢ The actual is below the target due to a reduction in the number of briefings processed during the caretaker period of the November 2014 state election. Racing industry development initiatives delivered number 7 7 0.0 P Racing matters processed (including licences, permits, number 269 274 –1.8 š appeals, registrations and grant applications) Quality Liquor and gambling licensing client satisfaction (VCGLR) per cent 84 80 5.0 P The actual is above the target due to consistent positive feedback from industry participants in the annual survey of the VCGLR operations. Timeliness Liquor and gambling information and advice responsiveness per cent 94.9 96 –1.1 š (VCGLR) Liquor and gambling compliance inspection outcomes per cent 91.1 98 –7.0 ¢ provided within set timeframes (VCGLR) The actual is below the target due to delays in the finalisation process, including the requirement for staff to wait for the release of gambling results, staff discussions with management in the event of serious breaches and staffing arrangements. Gamblers Help Service clients who receive a service within per cent 100 98 2.0 P five days of referral Cost Total output cost $ million 115.1 115.9 –0.7 P Note: P Performance target achieved or exceeded. š Performance target not achieved – within 5 per cent variance. ¢ Performance target not achieved – exceeds 5 per cent variance.

51 Five-year financial summary and review of financial conditions

2015 2014(i) 2013 (ii) 2012 (iii) 2011 (iii) $’000 $’000 $’000 $’000 $’000 Revenue from Government 5,178,419 5,226,476 4,294,634 4,091,615 3,970,828 Total income from transactions 5,280,733 5,330,781 4,400,704 4,230,760 4,127,710 Total expenses from transactions (5,267,511) (5,292,871) (4,359,460) (4,190,471) (4,124,315) Net result from transactions 13,222 37,910 41,244 40,289 3,395 Net result for the period (682) 50,150 42,623 37,328 3,552 Net cash flow from operating activities 96,214 136,283 85,508 119,382 103,982 Total assets 3,607,606 4,164,738 3,809,517 3,449,383 3,357,529 Total liabilities 1,085,039 1,454,352 1,313,404 1,053,115 1,070,160 i The 2013-14 comparative has been adjusted to correct a prior period error and remove balances relating to the office of the Freedom of Information Commissioner. See note 1(V) in the notes to the financial statements. ii The 2012-13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee Benefits. iii The 2011-12 and 2010-11 comparative figures have been adjusted to reflect the reclassification of the appropriation that was previously recognised as a grant paid to the Victorian Law Reform Commission.

Revenue from Government and total income from transactions decreased in 2014-15 due to: • Decrease in annual and special appropriations funding driven by the separation of Court Services Victoria effective on 1 July 2014. • Machinery of Government changes becoming effective on 1 January 2015 that transferred Data Protection Victoria, the Independent Broad-based Anti-corruption Commission, Public Interest Monitor, the Victorian Electoral Commission and the Victorian Inspectorate to the Department of Premier and Cabinet. • Reduction in income received from Residential Tenancies Bond Authority. • These decreases are partially offset by additional funding received for increased police and protective services officers, increased prison beds and funding to implement parole reforms. Total expenses from transactions decreased in 2014-15 due to: • Reduction in employees expenses, depreciation, interest expenses, and supplies and services as per the separation of Court Services Victoria on 1 July 2014. • The decrease is partially offset by an increase in grants to Victoria Police for additional Protective Services Officers and Police Officers. • There was also a large increase in grants to the Victorian Electoral Commission due to costs associated with the Victorian State election in November 2014. The decrease in the net result for 2014-15 was mainly due to: • An impairment loss on the Infringement Management Enforcement Services Software Development. • A reduction in unrealised gains on investments within the Victorian Property Fund. • Loss on other economic flows driven by movements in interest rates. Net cash flow from operating activities decreased in 2014-15 due to: • Decrease in receipts from Government due to the separation of Court Services Victoria and entities transferring to the Department of Premier and Cabinet announced as per the Machinery of Government changes. Total assets decreased in 2014-15 due to the separation of Court Services Victoria. Detailed financial information about the performance of each of the department’s output activities is contained in note 2 to the financial statements. In general, delivery of services by the output activities of the department were within defined budgetary objectives. A comparison of budget and actual financial statements is contained under Budget Portfolio Outcomes. Report of operations

52 Disclosure of grants and other transfers (other than contributions by owners)

The department has provided assistance to certain companies and organisations. Financial assistance provided in 2014-15 was as follows:

Organisation ($’000)

Policing

Victoria Police 2,434,295

Sub total 2,434,295

Infringements and enforcing community safety

Court Services Victoria 1,556

Community support groups 6,883

Local councils 3,154

Other 3,168

Sub total 14,761

Supporting legal processes and law reform

Office of Public Prosecutions 59,902

Sentencing Advisory Council 1,753

Victoria Legal Aid 130,127

Victorian Institute of Forensic Medicine 27,575

Court Services Victoria 3,670

Community support groups 11,599

Other 981

Sub total 235,607

Personal identity, individual rights and participation in civic life

Office of the Victorian Privacy Commissioner 422

Office of the Commissioner for Privacy and Data Protection Victoria 1,014

Victorian Electoral Commission 46,395

Victorian Equal Opportunity and Human Rights Commission 7,985

Court Services Victoria 378

Community support groups 53

Other 233

Sub total 56,480

Enforcing and managing correctional orders

Court Services Victoria 9,628

Community support groups 1,379

Other 2,484

Sub total 13,491 Report of operations

53 Disclosure of grants and other transfers (other than contributions by owners)

Organisation ($’000)

Supporting the State’s fire and emergency services

Court Services Victoria 1,396

Country Fire Authority 451,214

Emergency Services Telecommunications Authority 24,376

Metropolitan Fire and Emergency Services Board 325,705

Victoria State Emergency Service 47,191

Ambulance Victoria 11,908

Life Saving Victoria 4,388

Local councils 5,357

Community support groups 1,609

Other 668

Sub total 873,812

Industry regulation and support

Court Services Victoria 18,412

Victorian Commission for Gambling and Liquor Regulation 32,454

Victorian Responsible Gambling Foundation 997

Racing clubs 18,501

Community support groups 23,653

Other 3,594

Sub total 97,611

Public sector integrity

Independent Broad-based Anti-corruption Commission 14,873

Victorian Inspectorate 1,389

Freedom of Information Commissioner 1,402

Sub total 17,664

Total 3,743,721

54 Department of Justice and Regulation Annual Report 2014–15

55 Annual financial statements

Contents

Accountable Officer’s and Chief Finance and Accounting Officer’s declaration...... 57 Independent Auditor’s report...... 58 Comprehensive operating statement...... 60 Balance sheet...... 61 Statement of changes in equity...... 62 Cash flow statement...... 63 Notes to the financial statement Note 1. Summary of significant accounting policies...... 64 Note 2. Departmental (controlled) outputs...... 83 Note 3. Administered (non-controlled) items...... 88 Note 4. Income from transactions...... 90 Note 5. Expenses from transactions...... 90 Note 6. Other economic flows included in net result...... 92 Note 7. Restructuring of administrative arrangements...... 93 Note 8. Receivables...... 98 Note 9. Investments and other financial assets...... 99 Note 10. Inventories...... 99 Note 11. Non-financial physical assets classified as held for sale...... 100 Note 12. Property, plant and equipment...... 101 Note 13. Intangible assets...... 107 Note 14. Payables...... 108 Note 15. Borrowings...... 109 Note 16. Provisions...... 110 Note 17. Superannuation...... 112 Note 18. Leases...... 113 Note 19. Commitments for expenditure...... 114 Note 20. Contingent assets and contingent liabilities...... 116 Note 21. Financial instruments...... 116 Note 22. Cash flow information...... 124 Note 23. Physical asset revaluation surplus...... 125 Note 24. Summary of compliance with annual parliamentary appropriations and special appropriations...... 126 Note 25. Ex-gratia expenses...... 130 Note 26. Annotated income agreements...... 130 Note 27. Trust account balances...... 131 Note 28. Responsible persons...... 135 Note 29. Remuneration of executives and payments to other personnel ...... 136 Note 30. Remuneration of auditors...... 137 Note 31. Glossary of terms and style convention...... 138 Financial statements

56 Department of Justice and Regulation Annual Report 2014–15

Accountable Officer’s and Chief Finance and Accounting Officer’s declaration

The attached financial statements for the Department of Justice and Regulation have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2015 and financial position of the department as at 30 June 2015. At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 14 October 2015.

Shaun Condron Greg Wilson Chief Finance and Accounting Officer Secretary Department of Justice and Regulation Department of Justice and Regulation Melbourne Melbourne 14 October 2015 14 October 2015

57 58 Department of Justice and Regulation Annual Report 2014–15

59 Financial statements

Comprehensive operating statement for the financial year ended 30 June 2015 Note 2015 2014 $’000 $’000 Income from transactions Output appropriations 24(a) 5,129,248 5,092,933 Special appropriations 24(b) 49,171 133,543 Interest 4(a) 39,579 35,109 Grants 4(b) 3,976 10,392 Other income (i) 4(c) 58,759 58,804 Total income from transactions (i) 5,280,733 5,330,781

Expenses from transactions Employee expenses (i) 5(a) (605,223) (756,653) Depreciation and amortisation (i) 5(b) (95,778) (109,485) Interest expense (i) 5(c) (21,542) (32,095) Grants and other transfers (i) 5(d) (3,743,721) (3,540,308) Capital asset charge (ii) (102,213) (129,213) Supplies and services (i) 5(e) (699,034) (725,117) Total expenses from transactions (i) (5,267,511) (5,292,871)

Net result from transactions (net operating balance) (i) 13,222 37,910

Other economic flows included in net result Net gain/(loss) on non-financial assets(iii) 6(a) (11,970) 1,730 Net gain/(loss) on financial instruments(iv) 6(b) 710 9,760 Other gains/(losses) from other economic flows(i) 6(c) (2,644) 750 Total other economic flows included in net result(i) (13,904) 12,240

Net result (i) (682) 50,150

Other economic flows – other comprehensive income Items that will not be reclassified to net result Changes in physical asset revaluation surplus (v) 23 (5,000) (1,600) Total other economic flows – other comprehensive income (5,000) (1,600)

Comprehensive result (i) (5,682) 48,550

(i) The 2013–14 comparative has been adjusted (refer to note 1V). (ii) Further information on the capital asset charge is provided in note 1H. (iii) Includes realised gains/(losses) from impairments and disposal of physical assets. (iv) Includes bad and doubtful debts from other economic flows, and realised and unrealised gains/(losses) from financial instruments. (v) The change in physical asset revaluation surplus relates to an impairment loss of a building previously revalued. The above comprehensive operating statement should be read in conjunction with the accompanying notes included on pages 64 to 141. It should also be noted that the Court Services Victoria, Public Interest Monitor and Freedom of Information Commissioner transferred out of the department in 2014–15 as a consequence of machinery government changes, refer note 7.

60 Department of Justice and Regulation Annual Report 2014–15

Balance sheet as at 30 June 2015 Note 2015 2014 $’000 $’000 Assets

Financial assets Cash and deposits 22(a) 280,556 250,515 Receivables 8 848,863 740,030 Investments and other financial assets 9 233,564 249,092 Total financial assets 1,362,983 1,239,637

Non-financial assets Prepayments 2,435 5,354 Inventories 10 6,932 7,513 Non-financial physical assets classified as held for sale 11 1,608 1,879 Property, plant and equipment (i) 12 2,212,999 2,818,524 Intangible assets 13 20,649 91,831 Total non-financial assets (i) 2,244,623 2,925,101

Total assets (i) 3,607,606 4,164,738

Liabilities Payables (i) 14 724,790 929,041 Borrowings (i) 15 200,671 320,998 Provisions (i) 16 159,578 204,313 Total liabilities (i) 1,085,039 1,454,352

Net assets (i) 2,522,567 2,710,386

Equity (ii) Accumulated surplus/(deficit)(i) 1,018,584 669,864 Physical asset revaluation surplus 23 603,231 957,633 Contributed capital (i) 900,752 1,082,889 Net worth (i) 2,522,567 2,710,386

Commitments for expenditure 19 Contingent assets and contingent liabilities 20

(i) The 2013–14 comparative has been adjusted (refer to note 1V). (ii) Refer to the Statement of Changes in Equity for movements in the equity amounts. The above balance sheet should be read in conjunction with the accompanying notes included on pages 64 to 141. It should also be noted that the Court Services Victoria, Public Interest Monitor and Freedom of Information Commissioner transferred out of the department in 2014–15 as a consequence of machinery government changes, refer note 7.

61 Financial statements

Statement of changes in equity for the financial year ended 30 June 2015

($’000) Physical asset Accumulated revaluation surplus/ Contributed Note surplus (deficit)(i) Capital (i) Total

Balance at 1 July 2013 959,233 619,714 912,285 2,491,232 Net result for the year 0 50,150 0 50,150 Other comprehensive income for the year 23 (1,600) 0 0 (1,600) Transactions with the State in its capacity as owners 0 0 267,246 267,246 Capital contribution passed onto agencies within the 0 0 (67,945) (67,945) Justice Portfolio Equity transfer within Government 0 0 (29,341) (29,341) Administrative restructure – net assets received 0 0 644 644

Balance at 30 June 2014 957,633 669,864 1,082,889 2,710,386

Net result for the year 0 (682) 0 (682) Other comprehense income for the year (ii) 23 (5,000) 0 0 (5,000) Transfer to accumulated surplus (ii) 7, 23 (349,402) 349,402 0 0 Transactions with the State in its capacity as owners 0 0 554,612 554,612 Capital contribution passed onto agencies within the 0 0 (83,280) (83,280) Justice Portfolio Equity transfer within Government 0 0 (26,266) (26,266) Administrative restructure – net assets transferred 7 0 0 (627,203) (627,203)

Balance at 30 June 2015 603,231 1,018,584 900,752 2,522,567

(i) The 2013–14 comparative has been adjusted (refer to note 1V). (ii) The physical asset revaluation surplus relating to assets transferred to Court Services Victoria has been reclassified to accumulated surplus in 2014–15 (refer to note 7 and note 23). The resulting net change in the physical asset revaluation surplus of $349.4 million does not affect the Comprehensive Operating Statement, but is reflected in the Statement of Changes in Equity. The remaining net change in the physical asset revaluation surplus of $5 million relating to an impairment loss of a building asset does affect and is reflected in the Comprehensive Operating Statement. The above statement of changes in equity should be read in conjunction with the accompanying notes included on pages 64 to 141. It should also be noted that the Court Services Victoria, Public Interest Monitor and Freedom of Information Commissioner transferred out of the department in 2014–15 as a consequence of machinery government changes, refer note 7.

62 Department of Justice and Regulation Annual Report 2014–15

Cash flow statement for the financial year ended 30 June 2015 Note 2015 2014 $’000 $’000 Cash flows from operating activities Receipts Receipts from Government (i) 5,133,260 5,216,306 Receipts from other entities 3,976 10,392 Goods and services tax recovered from the ATO (ii) 118,665 102,330 Interest received 41,281 32,532 Dividends received 10,059 6,509 Other receipts (i) 32,902 51,565 Total receipts (i) 5,340,143 5,419,634

Payments Payments of grants and other transfers (i) (3,743,720) (3,540,308) Payments to suppliers and employees (i) (1,376,454) (1,581,735) Capital asset charge payments (102,213) (129,213) Interest and other costs of finance paid(i) (21,542) (32,095) Total payments (i) (5,243,929) (5,283,351)

Net cash flows from/(used in) operating activities(i) 22(b) 96,214 136,283

Cash flows from investing activities Payments for investments (i) (87,229) (40,615) Proceeds from sale of investments (i) 103,522 29,222 Purchases of non-financial assets(i) (421,223) (256,816) Sales of non-financial assets 3,281 5,927 Net cash flows from/(used in) investing activities(i) (401,649) (262,282)

Cash flows from financing activities Owner contributions by State Government (i) 457,398 259,171 Capital contribution passed on to agencies with government (83,280) (67,945) Equity transfers within government (i) (27,429) (29,740) Proceeds from borrowings (i) 5,314 7,548 Repayment of borrowings and finance leases(i) (16,527) (26,460) Net cash flows from/(used in) financing activities(i) 335,476 142,574

Net increase/(decrease) in cash and cash equivalents 30,041 16,575 Cash and cash equivalents at beginning of financial year 250,515 233,940

Cash and cash equivalents at end of financial year 22(a) 280,556 250,515

Reconciliation of non-cash transactions are disclosed in note 22(b). (i) The 2013–14 comparative has been adjusted (refer to note 1V). (ii) GST received from ATO is presented on a net basis. The above cash flow statement should be read in conjunction with the accompanying notes included on pages 64 to 141. It should also be noted that the Court Services Victoria, Public Interest Monitor and Freedom of Information Comissioner transferred out of the department in 2014–15 as a consequence of machinery government changes, refer note 7.

63 Notes to the financial statements for the financial year ended 30 June 2015

Note 1. Summary of significant accounting policies

These annual financial statements represent the audited general purpose financial statements for the Department of Justice and Regulation (the department) for the year ended 30 June 2015. The purpose of the report is to provide users with information about the department’s stewardship of resources entrusted to it. (A) Statement of compliance These general purpose financial statements have been prepared in accordance with theFinancial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS), including Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector Financial Reporting. Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. To gain a better understanding of the terminology used in this report, a glossary of terms and style conventions can be found in note 31. These annual financial statements were authorised for issue by the Secretary of the Department of Justice and Regulation on 14 October 2015. (B) Basis of accounting preparation and measurement The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. The only exception is for special appropriation revenue, which is recognised on a cash basis when the amount appropriated for a specific purpose is received by the department. Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates relate to: • the fair value of land, buildings, plant and equipment (refer to note 1(M)) • superannuation expense (refer to note 1(H)) • assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (refer to note 1(N)) • assumptions for other provisions based on updated mortality and financial (discount rate and indexation) assumptions (refer to note 1(N)). • the estimated useful life of property, plant and equipment and intangible assets (refer to note 1(H)) These financial statements are presented in Australian dollars, and prepared in accordance with the historical cost convention except for: • non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value. • managed investment schemes after initial recognition, which are measured at fair value with changes reflected in the comprehensive operating statement (fair value through profit or loss). Consistent with AASB 13 Fair Value Measurement, the department determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, and financial instruments and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant Financial Reporting Directions. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

64 Department of Justice and Regulation Annual Report 2014–15

• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities • Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For the purpose of fair value disclosures, the department has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. In addition, the department determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Valuer-General Victoria (VGV) is the department’s independent valuation agency. The department, in conjunction with VGV, monitors changes in the fair value of each asset and liability through relevant data sources to determine whether revaluation is required. (C) Reporting entity The financial statements cover the department as an individual reporting entity. The department is a government department of the State of Victoria, established pursuant to an order made by the Premier under the Administrative Arrangements Act 1983. The department is an administrative agency acting on behalf of the Crown. The financial statements include all the controlled activities of the department. The office of the Road Safety Camera Commissioner has been consolidated into the department’s financial statements pursuant to a determination, dated 16 July 2012, made by the Minister for Finance under section 53(1)(b) of the Financial Management Act 1994 (Act No.18). The office of the Fire Services Levy Monitor has been consolidated into the department’s financial statements pursuant to a determination, dated 23 May 2013, made by the Minister for Finance under section 53(1)(b) of the Financial Management Act 1994 (Act No.18). The office of the Freedom of Information Commissioner was previously consolidated into the department’s financial statements pursuant to a determination, dated 10 July 2013, made by the Minister for Finance under section 53(1)(b) of the Financial Management Act 1994 (Act No.18). However, this determination no longer applied once the machinery of government change occurred on 1 January 2015 which transferred this entity to the Department of Premier and Cabinet. The financial statements have been updated to remove this entity as if it had never been consolidated (refer to note 1(V) and note 7). A number of entities within the Justice Portfolio, which report separately, receive regular grants or transfer payments from the department (refer note 5). These are: • Country Fire Authority • Emergency Services Telecommunications Authority • Independent Broad-based Anti-corruption Commission (transferred to Department of Premier and Cabinet on 1 January 2015) • Judicial College of Victoria (transferred to Court Services Victoria on 1 July 2014) • Metropolitan Fire and Emergency Services Board • Office of Public Prosecutions • Office of Victorian Privacy Commissioner (ceased operations on 16 September 2014) • Office of Commissioner for Privacy and Data Protection (commenced operations on 17 September 2014 and transferred to Department of Premier and Cabinet on 1 January 2015) • Sentencing Advisory Council • Victorian Inspectorate (transferred to Department of Premier and Cabinet on 1 January 2015) • Victoria Legal Aid • Victoria Police • Victorian Commission for Gambling and Liquor Regulation • Victorian Electoral Commission (transferred to Department of Premier and Cabinet on 1 January 2015) • Victorian Equal Opportunity and Human Rights Commission • Victorian Institute of Forensic Medicine • Victorian Responsible Gambling Foundation • Victoria State Emergency Service Authority. 65 Note 1. Summary of significant accounting policies

The following organisations also form part of the Justice Portfolio and they report separately but do not receive regular grants or transfer payments from the department: • Greyhound Racing Victoria • Harness Racing Victoria • Legal Practitioners Liability Committee • Legal Services Board • Legal Services Commissioner • Professional Standards Council • Residential Tenancies Bond Authority • Victorian Law Reform Commission. A description of the nature of the department’s operations and its principal activities is included in the report of operations, which does not form part of these financial statements. Objectives and funding The department’s key objectives: • improving community safety through policing, law enforcement and prevention activities; • supporting the rule of law; • protecting individual rights and encouraging community participation; • promoting community safety through effective management of prisoners and offenders and provision of opportunities for rehabilitation and reparation; • minimising injury and property loss through a coordinated and integrated emergency response; • promoting responsible industry behaviour and an informed community through effective regulation, education, monitoring and enforcement; and • promoting and monitoring integrity in the public sector. The department is predominantly funded by accrual based parliamentary appropriations for the provision of outputs. Outputs of the department Information about the department’s output activities, and the expenses, income, assets and liabilities, which are reliably attributable to those output activities, is set out in the output activities schedule (note 2). Information about expenses, income, assets and liabilities administered by the department are given in the schedule of administered income and expenses and the schedule of administered assets and liabilities (note 3). (D) Basis of consolidation In accordance with AASB 10 Consolidated Financial Statements: • The financial statements of the department incorporate assets and liabilities of all reporting entities controlled by the department as at 30 June 2015, and their income and expenses for that part of the reporting period in which control existed. • The financial statements of the department also include entities that have a current determination under Section 53 (1) (b) of the Financial Management Act 1994 (Act No. 18) • The financial statements exclude bodies within the department’s portfolio that are not controlled by the department and therefore are not consolidated. Bodies and activities that are administered (see explanation below under administered items) are also not controlled and not consolidated. Where control of an entity is obtained during the financial period, its results are included in the comprehensive operating statement from the date on which control commenced. Where control ceases during a financial period, the entity’s results are included for that part of the period in which control existed. Where dissimilar accounting policies are adopted by entities and their effect is considered material, adjustments are made to ensure consistent policies are adopted in these financial statements. In the process of preparing financial statements for the department, all material transactions and balances between consolidated entities are eliminated. Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the department. Administered items Certain resources are administered by the department on behalf of the State. While the department is accountable for transactions involving administered items, it does not have the discretion to deploy the resources for its own benefit or the achievement of the department’s objectives. Accordingly, transactions and balances relating to administered items are not recognised as departmental income, expenses, assets or liabilities within the body of the financial statements.

66 Department of Justice and Regulation Annual Report 2014–15

Administered income includes taxes, fees and fines. Administered assets include government income earned but yet to be collected. Administered liabilities include government expenses incurred but yet to be paid. Except as otherwise disclosed, administered resources are accounted for on an accrual basis using the same accounting policies adopted for recognition of the departmental items in the financial statements. Both controlled and administered items of the department are consolidated into the financial statements of the State. Disclosures related to administered items can be found in note 3. Funds held in trust Other trust activities on behalf of parties external to the Victorian Government The department has responsibility for transactions and balances relating to trust funds on behalf of third parties external to the Victorian Government. Income, expenses, assets and liabilities managed on behalf of third parties are not recognised in these financial statements as they are managed on a fiduciary and custodial basis, and therefore are not controlled by the department or the Victorian Government. These transactions and balances are reported in note 27. Funds under management Funds under management do not form part of the assets of the department. These funds are administered by the department on behalf of various beneficiaries. These receipts, and any related expenditure, are excluded from the income, expenditure and assets of the department, which is acting as Trustee. These funds under management are disclosed in note 27(b) Third party funds under management. (E) Scope and presentation of financial statements Comprehensive operating statement The comprehensive operating statement comprises three components, being ‘net result from transactions’ (or termed as ‘net operating balance’), ‘other economic flows included in net result’, as well as ‘other economic flows – other comprehensive income’. The sum of the former two represents the net result. The net result is equivalent to profit or loss derived in accordance with Australian Accounting Standards (AAS). This classification is consistent with the whole of government reporting format and is allowed under AASB 101Presentation of Financial Statements. ‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (e.g. assets provided / given free of charge or for nominal consideration) or where the financial consideration is cash. ‘Other economic flows’ are changes arising from market re-measurements. They include gains and losses from disposals; revaluations and impairments of non-financial physical and intangible assets; and fair value changes of financial instruments. Balance sheet Assets and liabilities are presented in liquidity order, with assets aggregated into financial assets and non-financial assets. Current assets and liabilities, and non-current assets and liabilities (those expected to be recovered or settled more than 12 months after the reporting period) are disclosed in the notes, where relevant. Statement of changes in equity The statement of changes in equity presents reconciliations of non-owner and owner changes in equity from opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘comprehensive result’ and amounts recognised in ‘other economic flows - other movements in equity’ related to ‘transactions with owner in its capacity as owner’. Cash flow statement Cash flows are classified according to whether they arise from operating, investing, or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows. For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as borrowings on the balance sheet. Rounding Amounts in the financial statements (including the notes) have been rounded to the nearest thousand dollars, unless otherwise stated. Figures in the financial statements may not equate due to rounding.

67 Note 1. Summary of significant accounting policies

(F) Changes in accounting policies Subsequent to the 2013–14 reporting period, the following new and revised Standards, and Financial Reporting Directions have been adopted in the current period with their financial impact detailed as below. AASB 10 Consolidated Financial Statements AASB 10 provides a new approach to determine whether an entity has control over an entity, and therefore must present consolidated financial statements. The new approach requires the satisfaction of all three criteria for control to exist over an entity for financial reporting purposes: • The investor has power over the investee; • The investor has exposure, or rights to variable returns from its involvement with the investee; and • The investor has the ability to use its power over the investee to affect the amount of investor’s returns. Based on the new criteria prescribed in AASB 10, the department has reviewed the existing arrangements to determine if there are any additional entities that need to be consolidated into the group. The department has concluded that there has been no additional entities that have met the control criteria. (G) Income from transactions Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured at fair value. Appropriation income Appropriated income becomes controlled and is recognised by the department when it is appropriated from the consolidated fund by the Victorian Parliament and applied to the purposes defined under the relevant appropriations act. Additionally, the department is permitted under section 29 of the Financial Management Act 1994 to have certain income annotated to the annual appropriation. The income which forms part of a section 29 agreement is recognised by the department and the receipts paid into the consolidated fund as an administered item. At the point of income recognition, section 29 provides for an equivalent amount to be added to the annual appropriation. Examples of receipts which can form part of a section 29 agreement are Commonwealth specific purpose grants, the proceeds from the sale of assets, and income from the sale of products and services. Where applicable, amounts disclosed as income are net of returns, allowances, duties and taxes. All amounts of income over which the department does not have control are disclosed as administered income in the schedule of administered income and expenses (see note 3). Income is recognised for each of the department’s major activities as follows: Output appropriations Income from the outputs the department provides to government is recognised when those outputs have been delivered and the relevant Minister has certified delivery of those outputs in accordance with specified performance criteria. Special appropriations Special appropriation revenue is recognised on a cash basis when the amount appropriated for a specific purpose is received by the department. Refer to note 24(b) for a listing of special appropriation funding received by the department and an outline of their specific purposes. Interest Interest income includes interest received on bank term deposits and other investments. Interest income is recognised using the effective interest method which allocates the interest over the relevant period. Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are reported either as part of income from other economic flows in the net result or as unrealised gains and losses taken directly to equity, forming part of the total change in net worth in the comprehensive result. Grants Income from grants (other than contribution by owners) is recognised when the department obtains control over the contribution. Where such grants are payable into the consolidated fund, they are reported as administered income (refer to note 1(D) and (J)). For reciprocal grants (i.e. equal value is given back by the department to the provider), the department is deemed to have assumed control when the department has satisfied its performance obligations under the terms of the grant. For non- reciprocal grants, the department is deemed to have assumed control when the grant is receivable or received. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

68 Department of Justice and Regulation Annual Report 2014–15

Other income Other income includes income from fines and regulatory fees, dividends from investments, and fair value of assets received free of charge or for nominal consideration. Dividends from investments Dividend income is recognised when the right to receive payment is established. Fair value of assets received free of charge or for nominal consideration Contributions of resources received free of charge or for nominal consideration are recognised at their fair value when control is obtained over them, irrespective of whether these contributions are subject to restrictions or conditions over their use. (H) Expenses from transactions Expenses from transactions are recognised as they are incurred, and reported in the financial year to which they relate. Employee expenses Refer to the section in Note 1 (N) regarding employee benefits. These expenses include all costs related to employment including wages and salaries, superannuation, fringe benefits tax, leave entitlements, redundancy payments and WorkCover premiums. Superannuation The amount recognised in the comprehensive operating statement is the employer contributions for members of both defined benefit and defined contribution superannuation plans that are paid or payable during the reporting period. The Department of Treasury and Finance (DTF) in their annual financial statements, recognises on behalf of the State as the sponsoring employer, the net defined benefit cost related to the members of these plans. Refer to DTF’s annual financial statements for more detailed disclosures in relation to these plans. Depreciation and amortisation All buildings, plant and equipment and other non-financial physical assets (excluding items under operating leases and assets held for sale) that have finite useful lives are depreciated. Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. Refer to note 1(M) for the depreciation policy for leasehold improvements. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments made where appropriate. The following are typical estimated useful lives for the different asset classes for current and prior years. Asset Useful life Buildings 5 to 47 years Leasehold buildings 26 to 34 years Leasehold improvements 2 to 20 years Plant and equipment 1 to 25 years Intangible assets 2 to 7 years

Land and core cultural assets, which are considered to have an indefinite life, are not depreciated. Depreciation is not recognised in respect of these assets as their service potential has not, in any material sense, been consumed during the reporting period. Intangible produced assets with finite useful lives are amortised as an expense from transactions on a systematic (typically straight-line) basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. Interest expense Interest expense is recognised in the period in which it is incurred. Refer to glossary of terms and style conventions in note 31 for an explanation of interest expense items.

69 Note 1. Summary of significant accounting policies

Grants and other transfers Grants and other transfers to third parties (other than contributions to owners) are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as: grants, personal benefit payments made in cash to individuals, other transfer payments made to State owned agencies, local government, and community groups. Refer to glossary of terms and style conventions in note 31 for an explanation of grants and other transfers. Capital asset charge The capital asset charge is calculated on the budgeted carrying amount of applicable non-financial physical assets. Supplies and services Supplies and services costs are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed. Bad and doubtful debts Refer to note 1(L) Impairment of financial assets. Fair value of assets and services provided free of charge or for nominal consideration Contributions of resources provided free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another government department or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such a transfer will be recognised at its carrying value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. The department provides resources and services free of charge to a number of statutory offices and bodies within the Justice Portfolio. These contributions are not recognised in the financial statements as their fair values can not be reliably determined and are considered immaterial. Examples of the resources and services that may be provided include the use of the department’s financial systems such as Oracle Financials, Axiom and payroll systems. Services that may be provided include cash management, accounts receivable, payroll, general ledger management and in some cases the provision of IT networks. Borrowing costs of qualifying assets In accordance with the paragraphs of AASB 123 Borrowing Costs applicable to not-for-profit public sector entities, the department continues to recognise borrowing costs immediately as an expense, to the extent that they are directly attributable to the acquisition, construction or production of a qualifying asset. (I) Other economic flows included in net result Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows: Revaluation gains/(losses) of non-financial physical assets Refer to note 1(M) Revaluations of non-financial physical assets. Net gain/(loss) on disposal of non-financial assets Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is determined by deducting from the proceeds the carrying value of the asset at that time. Impairment of non-financial assets Intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for impairment (as described below) and whenever there is an indication that the asset may be impaired. All other assets are assessed annually for indications of impairment, except for non-financial physical assets held for sale, and assets arising from construction contracts. If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off as an other economic flow, except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that class of asset.

70 Department of Justice and Regulation Annual Report 2014–15

If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years. It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. Refer to note 1(M) in relation to the recognition and measurement of non-financial assets. Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes: • realised and unrealised gains and losses from revaluations of financial instruments at fair value; • impairment and reversal of impairment for financial instruments at amortised cost (refer to note 1(K)); and • disposals of financial assets. Revaluations of financial instruments at fair value Refer to note 1(K) Financial instruments. Other gains/(losses) from other economic flows Other gains/(losses) from other economic flows include the gains or losses from: • the revaluation of the present value of the long service leave liability due to changes in the bond interest rates; and • transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition or reclassification. (J) Administered income Taxes, fines and regulatory fees The department does not gain control over assets arising from taxes, fines and regulatory fees, consequently no income is recognised in the department’s financial statements. Administered income is mainly represented by taxation and fees for gaming, racing and lotteries collected on behalf of the State by the Victorian Commission for Gambling and Liquor Regulation and fine revenue is recognised upon the issue of infringement notices. These fines are managed by the Infringement Management and Enforcement Services unit of the department. The department collects these amounts on behalf of the Crown. Accordingly, the amounts are disclosed as income in the schedule of Administered Items (see note 3). Refer to Note 1(G) Income from transactions for the accounting of grants. Commonwealth grants The department’s administered grants mainly comprise of funds provided by the Commonwealth to assist the State Government in meeting general or specific service delivery obligations, primarily for the purpose of aiding in the financing of the operations of the recipient, capital purposes and/or for on passing to other recipients. The department also receives grants for on passing from other jurisdictions. The department does not have control over these grants, and the income is not recognised in the department’s financial statements. Administered grants are disclosed in the schedule of Administered Items in note 3. (K) Financial instruments Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the department’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract. However, guarantees issued by the Treasurer on behalf of the department are financial instruments because, although authorised under statute, the terms and conditions for each financial guarantee may vary and are subject to an agreement. Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not. The following refers to financial instruments unless otherwise stated.

71 Note 1. Summary of significant accounting policies

Categories of non-derivative financial instruments Loans and receivables Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Loans and receivables category includes cash and deposits (refer to note 1(L)), term deposits with maturity greater than three months, trade receivables and loans, but not statutory receivables. Financial assets at fair value through profit or loss Financial assets are categorised as fair value through profit or loss at trade date if they are classified as held for trading or designated as such upon initial recognition. Financial instrument assets are designated at fair value through profit or loss on the basis that the financial assets form part of a group of financial assets that are managed by the entity concerned based on their fair values, and have their performance evaluated in accordance with documented risk management and investment strategies. Financial instruments at fair value through profit or loss are initially measured at fair value and attributable transaction costs are expensed as incurred. Subsequently, any changes in fair value are recognised in the net result as other economic flows. Any dividend or interest on a financial asset is recognised in the net result from transactions. Financial liabilities at amortised cost Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method (refer to note 31). Financial instrument liabilities measured at amortised cost include all of the department’s contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss. Offsetting financial instruments Financial instrument assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the department concerned has a legal right to offset the amounts and intend either to settle on a net basis or to realise the asset and settle the liability simultaneously. Reclassification of financial instruments Subsequent to initial recognition and under rare circumstances, non-derivative financial instrument assets that have not been designated at fair value through profit or loss upon recognition, may be reclassified out of the fair value through profit or loss category, if they are no longer held for the purpose of selling or repurchasing in the near term. Financial instrument assets that meet the definition of loans and receivables may be reclassified out of the fair value through profit or loss category into the loans and receivables category, where they would have met the definition of loans and receivables had they not been required to be classified as fair value through profit or loss. In these cases, the financial instrument assets may be reclassified out of the fair value through profit or loss category, if there is the intention and ability to hold them for the foreseeable future or until maturity. (L) Financial assets Cash and deposits Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Receivables Receivables consist of: • contractual receivables, such as debtors in relation to goods and services, and accrued investment income; and • statutory receivables, such as amounts owing from the Victorian Government and GST input tax credits recoverable. Contractual receivables are classified as financial instruments and categorised as loans and receivables (refer to note 1(K) for recognition and measurement). Statutory receivables, are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract.

72 Department of Justice and Regulation Annual Report 2014–15

Receivables are subject to impairment testing as described below. A provision for doubtful receivables is recognised when there is objective evidence that the debts may not be collected, and bad debts are written off when identified. Investments and other financial assets Financial assets at fair value through profit or loss The department classified its managed investment schemes at fair value through profit or loss on initial recognition. These financial assets are managed and their performance is evaluated on a fair value basis, in accordance with documented risk management or investment strategy, and information is provided internally to key management personnel. Financial assets held at fair value through profit or loss are measured initially at fair value excluding any transaction costs that are directly attributable to the acquisition or issue of the financial asset. Subsequent to initial recognition, all instruments held at fair value through profit or loss are measured at fair value with any resultant gain / (loss) recognised in the net result as other economic flows. Loans and receivables The department classifies its investments in term deposits with a maturity of greater than 3 months as loans and receivables. Any dividend or interest earned on the financial asset is recognised in the comprehensive operating statement as a transaction. Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: • the rights to receive cash flows from the asset have expired; or • the department retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or • the department has transferred its rights to receive cash flows from the asset and either: »» has transferred substantially all the risks and rewards of the asset; or »» has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Where the department has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the department’s continuing involvement in the asset. Impairment of financial assets At the end of each reporting period, the department assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment. Receivables are assessed for bad and doubtful debts on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and allowance for doubtful receivables are classified as other economic flows in the net result. The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets. (M) Non-financial assets Prepayments Prepayments represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period. Inventories Inventories include goods and other property held either for sale, or for distribution at zero or nominal cost, or for consumption in the ordinary course of business operations. Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories are measured at the lower of cost and net realisable value. Where inventories are acquired for no cost or nominal consideration, they are measured at current replacement cost at the date of acquisition.

73 Note 1. Summary of significant accounting policies

Cost, includes an appropriate portion of fixed and variable overhead expenses and measured on the basis of a weighted average cost. Bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired. Non-financial physical assets classified as held for sale Non-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when: • the asset is available for immediate use in the current condition; and • the sale is highly probable and the asset’s sale is expected to be completed within 12 months from the date of classification. These non-financial physical assets, related liabilities and financial assets are measured at the lower of the carrying amount and fair value less costs to sell, and are not subject to depreciation or amortisation. Property, plant and equipment All non-financial physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a machinery of government change are transferred at their carrying amount. The initial cost for non-financial physical assets under a finance lease (refer to note 1(O)) is measured at amounts equal to the fair value of the lease asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. Non-financial physical assets such as Crown land and heritage assets are measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply. The fair value of cultural assets and collections, heritage assets and other non-financial physical assets that the State intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where applicable, accumulated depreciation (calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset) and any accumulated impairment. These policies and any legislative limitations and restrictions imposed on their use and/or disposal may impact their fair value. The fair value of plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost. Certain assets are acquired under finance leases, which may form part of a service concession arrangement. Refer to notes 1(O) Leases and 1(Q) Commitments for more information. The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads. For the accounting policy on impairment of non-financial physical assets, refer to impairment of non-financial assets under note 1(I) Impairment of non-financial assets. Leasehold improvements The cost of leasehold improvements is capitalised as an asset and depreciated over the shorter of the remaining term of the lease or the estimated useful life of the improvements. Restrictive nature of cultural and heritage assets, and Crown land The department holds cultural assets, heritage assets, and Crown land, which are deemed worthy of preservation because of the social rather than financial benefits they provide to the community. Consequently, there are certain limitations and restrictions imposed on their use and/or disposal. Revaluations of non-financial physical assets Non-financial physical assets are measured at fair value on a cyclical basis, in accordance with the Financial Reporting Directions (FRDs) issued by the Minister for Finance. A full revaluation normally occurs every five years, based on the asset’s

74 Department of Justice and Regulation Annual Report 2014–15

government purpose classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations. Any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value. Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are recognised in ‘Other economic flows - other comprehensive income’, and accumulated in equity under the asset revaluation surplus. However, the net revaluation increase is recognised in the net result to the extent that it reverses a net revaluation decrease in respect of the same class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result. Net revaluation decreases are recognised in ‘Other economic flows - other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment. Otherwise, the net revaluation decreases are recognised immediately as other economic flows in the net result. The net revaluation decrease recognised in ‘Other economic flows - other comprehensive income’ reduces the amount accumulated in equity under the asset revaluation surplus. Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes. Any asset revaluation surplus is not normally transferred to accumulated funds on derecognition of the relevant asset. Intangible assets Purchased intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the State. When the recognition criteria in AASB 138 Intangible Assets are met, internally generated intangible assets are recognised and measured at cost less accumulated amortisation and impairment. The department’s intangible assets consist only of software. Refer to note 1(H) Depreciation and amortisation and (I) Impairment of non-financial assets. Expenditure on research activities is recognised as an expense in the period in which it is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following are demonstrated: • the technical feasibility of completing the intangible asset so that it will be available for use or sale; • an intention to complete the intangible asset and use or sell it; • the ability to use or sell the intangible asset; • the intangible asset will generate probable future economic benefits; • the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and • the ability to measure reliably the expenditure attributable to the intangible asset during its development. (N) Liabilities Payables Payables consist of: • contractual payables, such as accounts payable. Accounts payable represent liabilities for goods and services provided to the department prior to the end of the financial year that are unpaid, and arise when the department becomes obliged to make future payments in respect of the purchase of those goods and services; and • statutory payables, such as goods and services tax and fringe benefits tax payables. Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost (refer to note 1(K)). Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract. Borrowings All interest bearing liabilities are initially recognised at fair value of the consideration received, less directly attributable transaction costs (refer to note 1(O) Leases).

75 Note 1. Summary of significant accounting policies

Subsequent to initial recognition, interest bearing liabilities are measured at amortised cost. Any difference between the initial recognised amount and the redemption value is recognised in the net result over the period of the borrowing using the effective interest method. Provisions Provisions are recognised when the department has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using discount rates that reflect the time value of money and risks specific to the provision. When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably. Other provisions Other provisions mainly represent amounts agreed under legal settlement to be paid in future years. Employee benefits Provision is made for benefits accruing to employees in respect of annual leave, long service leave, and on-costs for services rendered to the reporting date. Annual leave Liabilities for annual leave are recognised in the provision for employee benefits, classified as current liabilities. Those liabilities which are expected to be settled within 12 months of the reporting period, are measured at nominal values. Those liabilities that are not expected to be settled within 12 months are also recognised in the provision for employee benefits as current liabilities, but are measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. Long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefits. • Current liability – unconditional LSL (representing 7 or more years of continuous service for all staff) is disclosed in the notes to the financial statements as a current liability, even where the department does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. The components of this current LSL liability are measured at: »» nominal value – component that the department expects to settle within 12 months »» present value – component that the department does not expect to settle within 12 months • Non-current liability – conditional LSL (representing less than 7 years of continuous service for all staff) is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value using a model provided by the Department of Treasury and Finance (DTF). This model uses a wage inflation rate based on the average of forward estimates of the rates as assumed in the 2014–15 Budget plus 1% for progression and promotion. The values are then discounted using the Reserve Bank of Australia’s indicative Mid Rates of Commonwealth Government Securities. Any gain or loss following revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an other economic flow (refer to note 1(I)Other economic flows included in net result). The probability that staff will remain with the department and become entitled to their long service leave is also factored in the calculation of the provision for long service leave. Employee benefits on-costs Employee benefits on-costs such as payroll tax, workers compensation, and superannuation are recognised separately from the provision for employee benefits. Derecognition of financial liabilities A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

76 Department of Justice and Regulation Annual Report 2014–15

(O) Leases A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases. Finance leases Department as lessee At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is accounted for as a non-financial physical asset. Where the asset reverts back to the State at the end of the lease term, the asset is depreciated over its estimated useful life. Where the asset does not revert back to the State at the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum finance lease payments are apportioned between reduction of the outstanding lease liability, and periodic finance expense which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement. Contingent rentals associated with finance leases are recognised as an expense in the period in which they are incurred. Leases are recognised at the commencement of the lease term. Operating leases Department as lessee Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet. (P) Equity Contributions by owners Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributions by owners. Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners. (Q) Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to note 19) at their nominal value and inclusive of the goods and services tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet. (R) Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer to note 20) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively. (S) Service concession arrangements (public private partnerships) The department sometimes enters into certain arrangements with private sector participants to design and construct or upgrade an asset used to provide public services. These arrangements are typically complex and usually include the provision of operational and maintenance services for a specified period of time. These arrangements are often referred to as either public private partnerships (PPPs) or service concession arrangements (SCAs). These SCAs usually take one of two main forms. In the more common form, the department pays the operator over the period of the arrangement, subject to specified performance criteria being met. At the date of commitment to the principal provisions of the arrangement, these estimated periodic payments are allocated between a component related to the design and construction or upgrading of the asset and components related to the ongoing operation and maintenance of the asset. The former component is accounted for as a lease payment (see note 1(O) Leases). The remaining components are accounted for as commitments (see note 1(Q) Commitments) for operating costs which are expensed in the comprehensive operating statement as they are incurred.

77 Note 1. Summary of significant accounting policies

The other, less common form of SCA, is one in which the department grants to an operator, for a specified period of time, the right to collect fees from users of the SCA asset, in return for which the operator constructs the asset and has the obligation to supply agreed upon services, including maintenance of the asset for the period of the concession. These private sector entities typically lease land, and sometimes state works, from the State and construct infrastructure. At the end of the concession period, the land and State works, together with the constructed facilities, will be returned to the grantor department. There is currently no authoritative accounting guidance applicable to grantors (the department) on the recognition and measurement of the right of the department to receive assets from such concession arrangements. Due to the lack of such guidance, there has been no change to existing policy and those assets are not currently recognised. (T) Accounting for the Goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of associated GST, except where GST incurred is not recoverable from the taxation authority. In this case, the GST payable is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow. Commitments and contingent assets and liabilities are also stated inclusive of GST (refer to Note 1(Q) and Note 1 (R)). (U) Events after the reporting period Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the department and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed in the reporting period. Note disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent years. (V) Restatement of 2013–14 comparatives Correction of prior period error The department, as part of the State Coronial Services Centre redevelopment project, gained control over the Victorian Institute of Forensic Medicine’s building in the 2011–12 financial year. The building asset should have transferred from the Victorian Institute of Forensic Medicine to the department in the 2011–12 financial year, and the value of the building asset should have reduced as soon as part of the building was demolished in the 2011–12 financial year. The error has been corrected by restating each of the affected line items in the current set of financial statements for the 2013–14 comparative year. Removal of Freedom of Information Commissioner (FOI Commissioner) The office of the Freedom of Information Commissioner was previously consolidated into the department’s financial statements pursuant to a determination, dated 10 July 2013, made by the Minister for Finance under section 53(1)(b) of the Financial Management Act 1994 (Act No.18). Due to a machinery of government change effective from 1 January 2015, the FOI Commissioner transferred to the Department of Premier and Cabinet. The financial statements have been updated to remove this entity as if it had never been consolidated. Reclassification between line items The 2013–14 comparative has also been adjusted to reclassify staff training from employee expenses to other supplies and services, and reclassify funds received mainly from Residential Tenancies Bond Authority (RTBA) from other supplies and services to other income. The 2013–14 comparative in the cash flow statement has also been adjusted due to the reclassification of some items between line items.

78 Department of Justice and Regulation Annual Report 2014–15

Restated line items from the Comprehensive Operating Statement

Adjustment Adjustment for prior to remove Adjustment period error consolidation for 2014 for VIFM of FOI reclassified 2014 Notes Published building Commissioner amounts Restated

$’000 $’000 $’000 $’000 $’000

Income from transactions

Other income 4(c) 44,224 0 0 14,580 58,804

Total income from transactions 5,316,201 0 0 14,580 5,330,781

Expenses from transactions

Employee expenses 5(a) (765,392) 0 1,835 6,904 (756,653)

Depreciation and amortisation 5(b) (109,354) (168) 37 0 (109,485)

Interest expense 5(c) (32,096) 0 1 0 (32,095)

Grants and other transfers 5(d) (3,537,236) 0 (3,072) 0 (3,540,308)

Supplies and services 5(e) (704,856) 0 1,223 (21,484) (725,117)

Total expenses from transactions (5,278,147) (168) 24 (14,580) (5,292,871)

Net result from transactions (net operating balance) 38,054 (168) 24 0 37,910

Other economic flows included in net result

Other gains/(losses) from other economic flows 6(c) 751 0 (1) 0 750

Total other economic flows included in net result 12,241 0 (1) 0 12,240

Net result 50,295 (168) 23 0 50,150

Comprehensive result 48,695 (168) 23 0 48,550

79 Note 1. Summary of significant accounting policies

Restated line items from the Balance Sheet

Adjustment Adjustment for prior to remove Adjustment period error consolidation for 2014 for VIFM of FOI reclassified 2014 Notes Published building Commissioner amounts Restated

$’000 $’000 $’000 $’000 $’000

Non-financial assets

Property, plant and equipment 12 2,823,623 (4,961) (138) 0 2,818,524

Total non-financial assets 2,930,200 (4,961) (138) 0 2,925,101

Total assets 4,169,837 (4,961) (138) 0 4,164,738

Liabilities

Payables 928,636 0 405 0 929,041

Borrowings 321,020 0 (22) 0 320,998

Provisions 204,769 0 (456) 0 204,313

Total liabilities 1,454,425 0 (73) 0 1,454,352

Net assets 2,715,412 (4,961) (65) 0 2,710,386

Equity

Accumulated surplus/(deficit) 674,716 (4,961) 109 0 669,864

Contributed capital 1,083,063 0 (174) 0 1,082,889

Net worth 2,715,412 (4,961) (65) 0 2,710,386

Restated line items from the Statement of Changes in Equity

Adjustment Adjustment for prior to remove Adjustment period error consolidation for 2014 for VIFM of FOI reclassified 2014 Notes Published building Commissioner amounts Restated

$’000 $’000 $’000 $’000 $’000

Accumulated surplus/(deficit)

Balance at 1 July 2013 624,421 (4,793) 86 0 619,714

Net result for the year 50,295 (168) 23 0 50,150

Balance at 30 June 2014 674,716 (4,961) 109 0 669,864

Contributed capital

Balance at 1 July 2013 912,459 0 (174) 0 912,285

Balance at 30 June 2014 1,083,063 0 (174) 0 1,082,889

80 Department of Justice and Regulation Annual Report 2014–15

Restated line items from the Cash Flow Statement

Adjustment Adjustment for prior to remove Adjustment period error consolidation for 2014 for VIFM of FOI reclassified 2014 Notes Published building Commissioner amounts Restated

$’000 $’000 $’000 $’000 $’000

Cash flows from operating activities

Receipts

Receipts from Government 5,207,831 0 400 8,075 5,216,306

Other receipts 36,985 0 0 14,580 51,565

Total receipts 5,396,579 0 400 22,655 5,419,634

Payments

Payments of grants and other transfers (3,537,236) 0 (3,072) 0 (3,540,308)

Payments to suppliers and employees (1,580,570) 0 2,693 (3,858) (1,581,735)

Interest and other costs of finance paid (32,096) 0 1 0 (32,095)

Total payments (5,279,115) 0 (378) (3,858) (5,283,351)

Net cash flows from/(used in) operating activities 117,464 0 22 18,797 136,283

Cash flows from investing activities

Payments for investments (11,393) 0 0 (29,222) (40,615)

Proceeds from sale of investments 0 0 0 29,222 29,222

Purchases of non-financial assets (247,030) 0 (36) (9,750) (256,816)

Net cash flows from/(used in) investing activities (252,496) 0 (36) (9,750) (262,282)

Cash flows from financing activities

Owner contributions by State Government 267,246 0 0 (8,075) 259,171

Equity transfers within government (28,697) 0 0 (1,043) (29,740)

Proceeds from borrowings 0 0 0 7,548 7,548

Repayment of borrowings and finance leases (18,997) 0 14 (7,477) (26,460)

Net cash flows from/(used in) financing activities 151,607 0 14 (9,047) 142,574 (W) Australian Accounting Standards issued that are not yet effective Certain new AASs have been published that are not mandatory for the 30 June 2015 reporting period. DTF assesses the impact of these new standards and advises the department of their applicability and early adoption where applicable. As at 30 June 2015, the following standards and interpretations that are applicable to the department had been issued but were not mandatory for the financial year ending 30 June 2015. Standards and Interpretations that are not applicable to the department have been omitted. The department has not early adopted these standards.

81 Note 1. Summary of significant accounting policies

Applicable for annual Standard/ reporting periods Impact on departmental financial Interpretation Summary beginning after statements

AASB 9 Financial This standard simplifies requirements for the Beginning The preliminary assessment has identified instruments classification and measurement of financial that the financial impact of available for 1 January 2018 assets resulting from Phase 1 of the sale (AFS) assets will now be reported IASB’s project to replace IAS 39 Financial through other comprehensive income Instruments: Recognition and Measurement (OCI) and no longer recycled to the profit (AASB 139 Financial Instruments: and loss. Recognition and Measurement). Impacts arising from adoption of AASB 9 will continue to be monitored and assessed.

AASB 15 Revenue The core principle of AASB 15 requires 1 Jan 2017 The changes in revenue recognition from Contracts with an entity to recognise revenue when the requirements in AASB 15 may result (Exposure Draft Customers entity satisfies a performance obligation by in changes to the timing and amount 263 – potential transferring a promised good or service to a of revenue recorded in the financial deferral to 1 Jan customer. statements. The Standard will also require 2018) additional disclosures on service revenue and contract modifications. A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods. Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening returned earnings if there are no former performance obligations outstanding.

AASB 2014‑1 Amends various AASs to reflect the AASB’s 1 Jan 2018 This amending standard will defer the Amendments to decision to defer the mandatory application application period of AASB 9 to the 2018- Australian Accounting date of AASB 9 to annual reporting periods 19 reporting period in accordance with the Standards [Part E beginning on or after 1 January 2018 transition requirements. Financial Instruments] as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.

AASB 2014‑4 Amends AASB 116 Property, Plant and 1 Jan 2016 The assessment has indicated that there is Amendments to Equipment and AASB 138 Intangible Assets no expected impact as the revenue-based Australian Accounting to: method is not used for depreciation and Standards – Clarification amortisation. • establish the principle for the basis of of Acceptable Methods depreciation and amortisation as being of Depreciation and the expected pattern of consumption of Amortisation the future economic benefits of an asset; [AASB 116 & AASB 138] • prohibit the use of revenue‑based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.

82 Department of Justice and Regulation Annual Report 2014–15

Note 2. Departmental (controlled) outputs

A description of departmental outputs performed during the year ended 30 June 2015, and the objectives of these outputs, are summarised below. Policing Description of output This output group reports on activities relating to the provision of effective police and law enforcement services that aim to prevent, detect, investigate and prosecute crime, and promote safer road user behaviour. It focuses on activities which enable Victorians to undertake their lawful pursuits confidently, safely and without fear of crime. Objectives • This output group contributes to the department’s objective of improving community safety through policing, law enforcement and prevention activities. Infringements and enhancing community safety Description of output This output group reports on activities relating to the fair and effective enforcement of judicial fines, court orders and warrants, and processing of traffic and other infringement notices. It also reports on prevention activities aimed at enhancing community safety through the implementation of strategies to support local community engagement in crime prevention activities. Objectives • This output group contributes to the department’s objective of improving community safety through policing, law enforcement and prevention activities. Court services This output group was transferred to Court Services Victoria on 1 July 2014 as a consequence of a machinery of government change. Supporting legal processes and law reform Description of output This output group relates to the provision of services that support legal processes and law reform. Services that support legal processes include legal aid, prosecution services, community mediation services, support for victims of crime and the delivery of independent, expert forensic medical services to the justice system. Other services in this output group include legal policy advice to government, law reform, implementation of new or amended legislation and the provision of legal advice to the government. Objectives • This output group contributes to the department’s objective of supporting the rule of law. Personal identity, individual rights and participation in civic life Description of output This output group delivers services that safeguard the Victorian community through the provision of services relating to rights and equal opportunity, life event registration and identity protection, privacy regulation, advocacy and guardianship for Victorians with a disability or mental illness and the administration of the Victorian electoral system. The outputs relating to privacy regulation and the Victorian electoral system were transferred to the Department of Premier and Cabinet on 1 January 2015 as a consequence of a machinery of government change. Objectives • This output group contributes to the department’s objective of protecting individual rights and encouraging community participation. Enforcing and managing correctional orders Description of output This output group relates to the management of the State’s correctional system. Objectives • This output group contributes to the department’s objective of promoting community safety through effective management of prisoners and offenders and provision of opportunities for rehabilitation and reparation.

83 Note 2. Departmental (controlled) outputs

Supporting the State’s fire and emergency services Description of output This output group supports the delivery of a coordinated, all-hazards approach to emergency management, focusing on risk mitigation and active partnership with the Victorian community. Objectives • This output group contributes to the department’s objective of minimising injury and property loss through a coordinated and integrated emergency response. Industry regulation and support Description of output This output group delivers activities relating to regulating the gambling and liquor industries, harm minimisation, and support and development of the racing industry. This output group also promotes the empowerment of consumers and businesses to know their rights and responsibilities to promote a well-functioning market economy through regulation and support to consumers and businesses. There is a specific focus on the needs of vulnerable and disadvantaged consumers. Objectives • This output group contributes to the department’s objective to promote responsible industry behaviour and an informed community through effective regulation, education, monitoring and enforcement. Public sector integrity Description of output This output group focuses on achieving a high standard of public sector integrity. The Independent Broad-based Anti- corruption Commission (IBAC) aims to identify and investigate serious corrupt conduct within the Victorian public sector and misconduct in Victoria Police. The Freedom of Information (FOI) Commissioner aims to enhance Victorian Government openness, transparency and access to information by promoting the object and operation of FOI legislation, and reviewing and handling FOI decisions and complaints. This output group was transferred to the Department of Premier and Cabinet on 1 January 2015 as a consequence of a machinery of government change. Objectives • This output group contributes to the department’s objective of promoting and monitoring integrity within the public sector. Other information In addition to, and incorporated in, the above output activities are a number of entities within the Justice Portfolio which report separately. The financial statements contain the appropriation revenue for these entities and the expenditure is represented in the receipt of regular grants expense and transfer payments. These are: Policing • Victoria Police Court services • Judicial College of Victoria (transferred to Court Services Victoria on 1 July 2014) Supporting legal processes and law reform • Office of Public Prosecutions • Sentencing Advisory Council • Victoria Legal Aid • Victorian Institute of Forensic Medicine • Victorian Law Reform Commission

84 Department of Justice and Regulation Annual Report 2014–15

Personal identity, individual rights and participation in civic life • Office of the Victorian Privacy Commissioner (ceased operations on 16 September 2014) • Office of the Commissioner for Privacy and Data Protection (commenced operations on 17 September 2014 and transferred to Department of Premier and Cabinet on 1 January 2015) • Victorian Electoral Commission (transferred to Department of Premier and Cabinet on 1 January 2015) • Victorian Equal Opportunity and Human Rights Commission Support the State’s fire and emergency services • Country Fire Authority • Emergency Services Telecommunications Authority • Metropolitan Fire and Emergency Services Board • Victoria State Emergency Service Authority Industry regulation and support • Residential Tenancies Bond Authority • Victorian Commission for Gambling and Liquor Regulation • Victorian Responsible Gambling Foundation Public sector integrity • Freedom of Information Commissioner (transferred to Department of Premier and Cabinet on 1 January 2015) • Independent Broad-based Anti-corruption Commission (transferred to Department of Premier and Cabinet on 1 January 2015) • Victorian Inspectorate (transferred to Department of Premier and Cabinet on 1 January 2015) The following organisations form part of the Justice Portfolio but are excluded from the above output activities as they are not funded out of the Budget Sector: • Greyhound Racing Victoria • Harness Racing Victoria • Legal Practitioners Liability Committee • Legal Services Board • Legal Services Commissioner • Professional Standards Council

85 Note 2. Departmental (controlled) outputs

Schedule A – Controlled income and expenses for the year ended 30 June 2015 Personal identity, Infringements and Supporting legal individual rights Enforcing and Supporting the Industry enhancing processes and and participation managing State’s fire and regulation and Public Departmental Policing community safety Court Services (i) law reform in civic life (ii) correctional orders emergency services support sector integrity (iii) total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Continuing operations Income from transactions Output appropriations 2,432,158 2,273,827 240,870 227,073 0 293,736 320,705 335,874 34,629 36,571 1,031,723 842,466 947,115 953,121 103,600 95,436 18,448 34,829 5,129,248 5,092,933 Special appropriations 2,137 1,963 0 0 0 107,988 0 0 46,395 23,062 105 58 534 472 0 0 0 0 49,171 133,543 Interest 0 0 0 0 0 0 0 0 0 0 160 138 0 0 39,419 34,971 0 0 39,579 35,109 Grants 0 0 59 81 0 0 88 320 1,114 1,221 274 370 56 6,136 2,385 2,263 0 1 3,976 10,392 Other income (iv) 0 0 1,638 2,014 0 17,492 229 225 129 35 346 242 12,478 14,459 43,939 24,343 0 (6) 58,759 58,804 Total income from transactions (iv) 2,434,295 2,275,790 242,567 229,168 0 419,216 321,022 336,419 82,267 60,889 1,032,608 843,274 960,183 974,188 189,343 157,013 18,448 34,824 5,280,733 5,330,781

Expenses from transactions Employee expenses (iv) 0 0 54,832 51,571 0 237,002 52,582 50,301 16,944 17,153 410,893 336,392 24,340 18,361 45,014 44,625 618 1,248 605,223 756,653 Depreciation and amortisation (iv) 0 0 10,070 10,560 0 29,775 3,422 1,273 877 893 59,362 51,892 21,313 14,239 656 719 78 134 95,778 109,485 Interest expense (iv) 0 0 123 174 0 10,171 (36) (61) 8 4 21,439 21,831 (4) (35) 12 9 0 2 21,542 32,095 Grants and other transfers (iv) 2,434,295 2,275,790 14,761 14,228 0 4,052 235,607 235,902 56,480 33,162 13,491 6,286 873,812 885,733 97,611 52,310 17,664 32,845 3,743,721 3,540,308 Capital asset charge 0 0 3,189 2,455 0 50,574 1,114 853 256 194 95,794 73,560 1,809 1,396 51 39 0 142 102,213 129,213 Supplies and services (iv) 0 0 152,416 146,614 0 88,738 40,572 49,237 8,764 9,643 428,125 355,900 31,005 37,000 38,064 37,646 88 339 699,034 725,117 Total expenses from transactions (iv) 2,434,295 2,275,790 235,391 225,602 0 420,312 333,261 337,505 83,329 61,049 1,029,104 845,861 952,275 956,694 181,408 135,348 18,448 34,710 5,267,511 5,292,871 Net result from transactions 0 0 7,176 3,566 0 (1,096) (12,239) (1,086) (1,062) (160) 3,504 (2,587) 7,908 17,494 7,935 21,665 0 114 13,222 37,910 (net operating balance) (iv)

Other economic flows included in net result Net gain/(loss) on non-financial assets 0 0 (12,954) 207 0 0 183 308 31 56 558 800 116 195 96 161 0 3 (11,970) 1,730 Net gain/(loss) on financial instruments 0 0 (2) (132) 0 (39) (2) (196) 0 (36) (52) (606) (1) (124) 767 10,895 0 (2) 710 9,760 Other gains/(losses) from other 0 0 (290) 39 0 398 (439) 59 (75) 11 (1,340) 175 (274) 36 (227) 31 1 1 (2,644) 750 economic flows(iv) Total other economic flows 0 0 (13,246) 114 0 359 (258) 171 (44) 31 (834) 369 (159) 107 636 11,087 1 2 (13,904) 12,240 included in net result (iv) Net result (iv) 0 0 (6,070) 3,680 0 (737) (12,497) (915) (1,106) (129) 2,670 (2,218) 7,749 17,601 8,571 32,752 1 116 (682) 50,150

Other economic flows – other comprehensive income Items that will not be reclassified to net result Changes in physical asset 0 0 0 0 0 0 0 0 0 0 (5,000) (1,465) 0 (135) 0 0 0 0 (5,000) (1,600) revaluation surplus Total other economic flows – 0 0 0 0 0 0 0 0 0 0 (5,000) (1,465) 0 (135) 0 0 0 0 (5,000) (1,600) other comprehensive income Comprehensive result (iv) 0 0 (6,070) 3,680 0 (737) (12,497) (915) (1,106) (129) (2,330) (3,683) 7,749 17,466 8,571 32,752 1 116 (5,682) 48,550

Schedule B – Controlled assets and liabilities as at 30 June 2015 Assets Financial assets 389,111 366,775 68,405 57,525 0 57,746 76,725 60,728 9,756 14,846 200,112 146,491 108,329 52,874 510,545 482,426 0 226 1,362,983 1,239,637 Non-financial assets(iv) 0 0 51,759 84,301 0 853,787 192,474 17,837 1,734 5,213 1,922,771 1,859,197 72,697 92,938 3,188 10,739 0 1,089 2,244,623 2,925,101 Total assets (iv) 389,111 366,775 120,164 141,826 0 911,533 269,199 78,565 11,490 20,059 2,122,883 2,005,688 181,026 145,812 513,733 493,165 0 1,315 3,607,606 4,164,738

Liabilities Total liabilities (iv) 389,111 366,775 48,402 48,259 0 185,583 58,656 63,214 8,483 14,911 500,390 708,394 43,997 36,876 36,000 29,541 0 799 1,085,039 1,454,352 Net assets (iv) 0 0 71,762 93,567 0 725,950 210,543 15,351 3,007 5,148 1,622,493 1,297,294 137,029 108,936 477,733 463,624 0 516 2,522,567 2,710,386

(i) Output group transferred to Court Services Victoria on 1 July 2014 as a consequence of a machinery of government change. (ii) Outputs relating to privacy regulation and the victorian electoral system were transferred to the Department of Premier and Cabinet on 1 January 2015 as a consequence of a machinery of government change. (iii) Output group transferred to the Department of Premier and Cabinet on 1 January 2015 as a consequence of a machinery of government change. (iv) The 2013–14 comparative has been adjusted (refer to note 1V).

86 Department of Justice and Regulation Annual Report 2014–15

Schedule A – Controlled income and expenses for the year ended 30 June 2015 Personal identity, Infringements and Supporting legal individual rights Enforcing and Supporting the Industry enhancing processes and and participation managing State’s fire and regulation and Public Departmental Policing community safety Court Services (i) law reform in civic life (ii) correctional orders emergency services support sector integrity (iii) total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Continuing operations Income from transactions Output appropriations 2,432,158 2,273,827 240,870 227,073 0 293,736 320,705 335,874 34,629 36,571 1,031,723 842,466 947,115 953,121 103,600 95,436 18,448 34,829 5,129,248 5,092,933 Special appropriations 2,137 1,963 0 0 0 107,988 0 0 46,395 23,062 105 58 534 472 0 0 0 0 49,171 133,543 Interest 0 0 0 0 0 0 0 0 0 0 160 138 0 0 39,419 34,971 0 0 39,579 35,109 Grants 0 0 59 81 0 0 88 320 1,114 1,221 274 370 56 6,136 2,385 2,263 0 1 3,976 10,392 Other income (iv) 0 0 1,638 2,014 0 17,492 229 225 129 35 346 242 12,478 14,459 43,939 24,343 0 (6) 58,759 58,804 Total income from transactions (iv) 2,434,295 2,275,790 242,567 229,168 0 419,216 321,022 336,419 82,267 60,889 1,032,608 843,274 960,183 974,188 189,343 157,013 18,448 34,824 5,280,733 5,330,781

Expenses from transactions Employee expenses (iv) 0 0 54,832 51,571 0 237,002 52,582 50,301 16,944 17,153 410,893 336,392 24,340 18,361 45,014 44,625 618 1,248 605,223 756,653 Depreciation and amortisation (iv) 0 0 10,070 10,560 0 29,775 3,422 1,273 877 893 59,362 51,892 21,313 14,239 656 719 78 134 95,778 109,485 Interest expense (iv) 0 0 123 174 0 10,171 (36) (61) 8 4 21,439 21,831 (4) (35) 12 9 0 2 21,542 32,095 Grants and other transfers (iv) 2,434,295 2,275,790 14,761 14,228 0 4,052 235,607 235,902 56,480 33,162 13,491 6,286 873,812 885,733 97,611 52,310 17,664 32,845 3,743,721 3,540,308 Capital asset charge 0 0 3,189 2,455 0 50,574 1,114 853 256 194 95,794 73,560 1,809 1,396 51 39 0 142 102,213 129,213 Supplies and services (iv) 0 0 152,416 146,614 0 88,738 40,572 49,237 8,764 9,643 428,125 355,900 31,005 37,000 38,064 37,646 88 339 699,034 725,117 Total expenses from transactions (iv) 2,434,295 2,275,790 235,391 225,602 0 420,312 333,261 337,505 83,329 61,049 1,029,104 845,861 952,275 956,694 181,408 135,348 18,448 34,710 5,267,511 5,292,871 Net result from transactions 0 0 7,176 3,566 0 (1,096) (12,239) (1,086) (1,062) (160) 3,504 (2,587) 7,908 17,494 7,935 21,665 0 114 13,222 37,910 (net operating balance) (iv)

Other economic flows included in net result Net gain/(loss) on non-financial assets 0 0 (12,954) 207 0 0 183 308 31 56 558 800 116 195 96 161 0 3 (11,970) 1,730 Net gain/(loss) on financial instruments 0 0 (2) (132) 0 (39) (2) (196) 0 (36) (52) (606) (1) (124) 767 10,895 0 (2) 710 9,760 Other gains/(losses) from other 0 0 (290) 39 0 398 (439) 59 (75) 11 (1,340) 175 (274) 36 (227) 31 1 1 (2,644) 750 economic flows(iv) Total other economic flows 0 0 (13,246) 114 0 359 (258) 171 (44) 31 (834) 369 (159) 107 636 11,087 1 2 (13,904) 12,240 included in net result (iv) Net result (iv) 0 0 (6,070) 3,680 0 (737) (12,497) (915) (1,106) (129) 2,670 (2,218) 7,749 17,601 8,571 32,752 1 116 (682) 50,150

Other economic flows – other comprehensive income Items that will not be reclassified to net result Changes in physical asset 0 0 0 0 0 0 0 0 0 0 (5,000) (1,465) 0 (135) 0 0 0 0 (5,000) (1,600) revaluation surplus Total other economic flows – 0 0 0 0 0 0 0 0 0 0 (5,000) (1,465) 0 (135) 0 0 0 0 (5,000) (1,600) other comprehensive income Comprehensive result (iv) 0 0 (6,070) 3,680 0 (737) (12,497) (915) (1,106) (129) (2,330) (3,683) 7,749 17,466 8,571 32,752 1 116 (5,682) 48,550

Schedule B – Controlled assets and liabilities as at 30 June 2015 Assets Financial assets 389,111 366,775 68,405 57,525 0 57,746 76,725 60,728 9,756 14,846 200,112 146,491 108,329 52,874 510,545 482,426 0 226 1,362,983 1,239,637 Non-financial assets(iv) 0 0 51,759 84,301 0 853,787 192,474 17,837 1,734 5,213 1,922,771 1,859,197 72,697 92,938 3,188 10,739 0 1,089 2,244,623 2,925,101 Total assets (iv) 389,111 366,775 120,164 141,826 0 911,533 269,199 78,565 11,490 20,059 2,122,883 2,005,688 181,026 145,812 513,733 493,165 0 1,315 3,607,606 4,164,738

Liabilities Total liabilities (iv) 389,111 366,775 48,402 48,259 0 185,583 58,656 63,214 8,483 14,911 500,390 708,394 43,997 36,876 36,000 29,541 0 799 1,085,039 1,454,352 Net assets (iv) 0 0 71,762 93,567 0 725,950 210,543 15,351 3,007 5,148 1,622,493 1,297,294 137,029 108,936 477,733 463,624 0 516 2,522,567 2,710,386

(i) Output group transferred to Court Services Victoria on 1 July 2014 as a consequence of a machinery of government change. (ii) Outputs relating to privacy regulation and the victorian electoral system were transferred to the Department of Premier and Cabinet on 1 January 2015 as a consequence of a machinery of government change. (iii) Output group transferred to the Department of Premier and Cabinet on 1 January 2015 as a consequence of a machinery of government change. (iv) The 2013–14 comparative has been adjusted (refer to note 1V).

87 Note 3. Administered (non-controlled) items

In addition to the specific departmental operations which are included in the financial statements (comprehensive operating statement, balance sheet, statement of changes in equity and cash flow statement), the department administers or manages other activities and resources on behalf of the State. The transactions relating to these activities are reported as administered items (refer to Note 1(D) and 1(J)) in this note.

Infringements Supporting legal Personal identity, Enforcing and Supporting the Industry and enhancing processes and individual rights and managing State’s fire and regulation Public sector Policing community safety Court Services (i) law reform participation in civic life (ii) correctional orders emergency services and support integrity (iii) Departmental total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Administered income from transactions Appropriations – Payments made on behalf of the State 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28,871 28,644 0 0 28,871 28,644 Special appropriations applied 0 0 4,109 3,940 0 39,122 0 546,113 8,913 16 0 0 0 0 0 0 0 0 13,022 589,191 Sale of goods and services 0 0 32,057 31,928 0 57,071 48,566 50,687 6,155 7,194 12,924 10,983 34,504 29,169 1,061 902 0 0 135,267 187,934 Commonwealth grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Taxation income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,809,533 1,700,893 0 0 1,809,533 1,700,893 Fines 0 0 648,263 606,829 0 24,461 0 0 346 430 192 194 0 0 146 63 0 0 648,947 631,977 Fees 0 0 255,664 262,790 0 92 2 2 9,138 8,649 0 0 0 0 12,773 12,316 0 0 277,577 283,849 Other income 0 0 22,094 14,617 0 2,109 621 488 115 351 2,429 1,870 387 303 19,717 14,416 0 5 45,363 34,159 Total administered income from transactions 0 0 962,187 920,104 0 122,855 49,189 597,290 24,667 16,640 15,545 13,047 34,891 29,472 1,872,101 1,757,234 0 5 2,958,580 3,456,647

Administered expenses from transactions Payments made on behalf of the State 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28,871 28,644 0 0 28,871 28,644 Payments into the Consolidated Fund 0 0 566,803 514,779 0 66,238 46,931 50,645 6,534 7,602 24,268 21,738 34,504 29,169 2,211,728 1,768,619 0 0 2,890,768 2,458,790 Other expenses 0 0 5,076 8,180 0 40,471 293 546,544 8,964 94 1,230 1,760 185 273 153 193 0 5 15,901 597,520 Total administered expenses from transactions 0 0 571,879 522,959 0 106,709 47,224 597,189 15,498 7,696 25,498 23,498 34,689 29,442 2,240,752 1,797,456 0 5 2,935,540 3,084,954 Total administered net result from 0 0 390,308 397,145 0 16,146 1,965 101 9,169 8,944 (9,953) (10,451) 202 30 (368,651) (40,222) 0 0 23,040 371,693 transactions (net operating balance)

Administered other economic flows included in administered net result Net gain/(loss) on non-financial assets 0 0 (54) (13) 0 (1) (4) (16) (24) (3) (279) (832) (2) (4) (2) 0 12 (12) (353) (881) Net gain/(loss) on financial instruments 0 0 (284,302) (268,097) 0 (466) 0 0 0 (50) 0 0 0 0 (3,023) (4,866) 0 0 (287,325) (273,479) Other gains/(losses) from other economic flows 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total administered other economic flows 0 0 (284,356) (268,110) 0 (467) (4) (16) (24) (53) (279) (832) (2) (4) (3,025) (4,866) 12 (12) (287,678) (274,360) Total administered comprehensive result 0 0 105,952 129,035 0 15,679 1,961 85 9,145 8,891 (10,232) (11,283) 200 26 (371,676) (45,088) 12 (12) (264,638) 97,333

Administered financial assets Cash and deposits 0 0 12,076 11,914 0 6,801 19,733 16,682 259 544 12,984 12,491 974 1,024 838 886 0 18 46,864 50,360 Receivables 0 0 1,069,417 964,877 0 1,879 (30,276) (32,011) (4,480) (4,287) (6,966) (6,930) (19,598) (21,783) 664,708 645,735 0 (7) 1,672,805 1,547,473 Equity investments in other justice portfolio entities 0 0 0 0 0 0 42,224 42,195 0 0 0 0 530,958 503,334 11,098 11,098 0 0 584,280 556,627 Total administered financial assets 0 0 1,081,493 976,791 0 8,680 31,681 26,866 (4,221) (3,743) 6,018 5,561 512,334 482,575 676,644 657,719 0 11 2,303,949 2,154,460

Administered liabilities Creditors and accruals 0 0 0 67 0 0 0 0 0 0 2 1 0 0 2,315 2,057 0 0 2,317 2,125 Deposits payable 0 0 12,117 12,757 0 6,853 19,465 16,433 222 253 9,595 9,408 820 881 675 727 0 15 42,894 47,327 Provisions 0 0 0 0 0 0 0 0 0 0 40 39 0 0 0 0 0 0 40 39 Unearned revenue 0 0 19 40 0 0 38 59 509 978 87 183 17 38 1,512,387 1,162,855 0 1 1,513,057 1,164,154 Other 0 0 0 0 0 2,100 0 0 0 43 0 0 0 0 43,320 0 0 0 43,320 2,143 Total administered liabilities 0 0 12,136 12,864 0 8,953 19,503 16,492 731 1,274 9,724 9,631 837 919 1,558,697 1,165,639 0 16 1,601,628 1,215,788 Total administered net assets 0 0 1,069,357 963,927 0 (273) 12,178 10,374 (4,952) (5,017) (3,706) (4,070) 511,497 481,656 (882,053) (507,920) 0 (5) 702,321 938,672

(i) Output group transferred to Court Services Victoria on 1 July 2014 as a consequence of a machinery of government change. (ii) Outputs relating to privacy regulation and the victorian electoral system were transferred to the Department of Premier and Cabinet on 1 January 2015 as a consequence of a machinery of government change. (iii) Output group transferred to the Department of Premier and Cabinet on 1 January 2015 as a consequence of a machinery of government change. Administered income from fines is recognised upon the issue of infringement notices. These fines are managed by the Infringement Management and Enforcement Services unit of the department. All fines collected during the year are paid into the Consolidated Fund. The majority of the fines $648.263 million (2014: $606.829 million) disclosed under the Infringements and Enhancing Community Safety activity comprises traffic camera fines of $311.031 million (2014: $274.991 million) and on the spot fines of $165.464 million (2014: $163.228 million) issued by Victoria Police.

88 Department of Justice and Regulation Annual Report 2014–15

In addition to the specific departmental operations which are included in the financial statements (comprehensive operating statement, balance sheet, statement of changes in equity and cash flow statement), the department administers or manages other activities and resources on behalf of the State. The transactions relating to these activities are reported as administered items (refer to Note 1(D) and 1(J)) in this note.

Infringements Supporting legal Personal identity, Enforcing and Supporting the Industry and enhancing processes and individual rights and managing State’s fire and regulation Public sector Policing community safety Court Services (i) law reform participation in civic life (ii) correctional orders emergency services and support integrity (iii) Departmental total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Administered income from transactions Appropriations – Payments made on behalf of the State 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28,871 28,644 0 0 28,871 28,644 Special appropriations applied 0 0 4,109 3,940 0 39,122 0 546,113 8,913 16 0 0 0 0 0 0 0 0 13,022 589,191 Sale of goods and services 0 0 32,057 31,928 0 57,071 48,566 50,687 6,155 7,194 12,924 10,983 34,504 29,169 1,061 902 0 0 135,267 187,934 Commonwealth grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Taxation income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,809,533 1,700,893 0 0 1,809,533 1,700,893 Fines 0 0 648,263 606,829 0 24,461 0 0 346 430 192 194 0 0 146 63 0 0 648,947 631,977 Fees 0 0 255,664 262,790 0 92 2 2 9,138 8,649 0 0 0 0 12,773 12,316 0 0 277,577 283,849 Other income 0 0 22,094 14,617 0 2,109 621 488 115 351 2,429 1,870 387 303 19,717 14,416 0 5 45,363 34,159 Total administered income from transactions 0 0 962,187 920,104 0 122,855 49,189 597,290 24,667 16,640 15,545 13,047 34,891 29,472 1,872,101 1,757,234 0 5 2,958,580 3,456,647

Administered expenses from transactions Payments made on behalf of the State 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28,871 28,644 0 0 28,871 28,644 Payments into the Consolidated Fund 0 0 566,803 514,779 0 66,238 46,931 50,645 6,534 7,602 24,268 21,738 34,504 29,169 2,211,728 1,768,619 0 0 2,890,768 2,458,790 Other expenses 0 0 5,076 8,180 0 40,471 293 546,544 8,964 94 1,230 1,760 185 273 153 193 0 5 15,901 597,520 Total administered expenses from transactions 0 0 571,879 522,959 0 106,709 47,224 597,189 15,498 7,696 25,498 23,498 34,689 29,442 2,240,752 1,797,456 0 5 2,935,540 3,084,954 Total administered net result from 0 0 390,308 397,145 0 16,146 1,965 101 9,169 8,944 (9,953) (10,451) 202 30 (368,651) (40,222) 0 0 23,040 371,693 transactions (net operating balance)

Administered other economic flows included in administered net result Net gain/(loss) on non-financial assets 0 0 (54) (13) 0 (1) (4) (16) (24) (3) (279) (832) (2) (4) (2) 0 12 (12) (353) (881) Net gain/(loss) on financial instruments 0 0 (284,302) (268,097) 0 (466) 0 0 0 (50) 0 0 0 0 (3,023) (4,866) 0 0 (287,325) (273,479) Other gains/(losses) from other economic flows 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total administered other economic flows 0 0 (284,356) (268,110) 0 (467) (4) (16) (24) (53) (279) (832) (2) (4) (3,025) (4,866) 12 (12) (287,678) (274,360) Total administered comprehensive result 0 0 105,952 129,035 0 15,679 1,961 85 9,145 8,891 (10,232) (11,283) 200 26 (371,676) (45,088) 12 (12) (264,638) 97,333

Administered financial assets Cash and deposits 0 0 12,076 11,914 0 6,801 19,733 16,682 259 544 12,984 12,491 974 1,024 838 886 0 18 46,864 50,360 Receivables 0 0 1,069,417 964,877 0 1,879 (30,276) (32,011) (4,480) (4,287) (6,966) (6,930) (19,598) (21,783) 664,708 645,735 0 (7) 1,672,805 1,547,473 Equity investments in other justice portfolio entities 0 0 0 0 0 0 42,224 42,195 0 0 0 0 530,958 503,334 11,098 11,098 0 0 584,280 556,627 Total administered financial assets 0 0 1,081,493 976,791 0 8,680 31,681 26,866 (4,221) (3,743) 6,018 5,561 512,334 482,575 676,644 657,719 0 11 2,303,949 2,154,460

Administered liabilities Creditors and accruals 0 0 0 67 0 0 0 0 0 0 2 1 0 0 2,315 2,057 0 0 2,317 2,125 Deposits payable 0 0 12,117 12,757 0 6,853 19,465 16,433 222 253 9,595 9,408 820 881 675 727 0 15 42,894 47,327 Provisions 0 0 0 0 0 0 0 0 0 0 40 39 0 0 0 0 0 0 40 39 Unearned revenue 0 0 19 40 0 0 38 59 509 978 87 183 17 38 1,512,387 1,162,855 0 1 1,513,057 1,164,154 Other 0 0 0 0 0 2,100 0 0 0 43 0 0 0 0 43,320 0 0 0 43,320 2,143 Total administered liabilities 0 0 12,136 12,864 0 8,953 19,503 16,492 731 1,274 9,724 9,631 837 919 1,558,697 1,165,639 0 16 1,601,628 1,215,788 Total administered net assets 0 0 1,069,357 963,927 0 (273) 12,178 10,374 (4,952) (5,017) (3,706) (4,070) 511,497 481,656 (882,053) (507,920) 0 (5) 702,321 938,672

Administered income also includes taxation income for gaming, racing and lotteries collected on behalf of the State by the Victorian Commission for Gambling and Liquor Regulation totalling $1,809.533 million (2014: $1,700.893 million). Administered expenses reflect payments made to other states for their share of Tattersall’s duty payments which are collected and on-passed to other jurisdictions totalling $28.871 million (2014: $28.644 million). Administered receivables comprises $1,748.333 million (2014: $1,666.456 million) debtors, plus $667.718 million (2014: $648.976 million) taxes receivable, less $743.246 million (2014: $767.959 million) provision for doubtful debts. Administered liabilities includes unearned revenue from gambling licence renewals totalling $1,512.370 million (2014: $1,162.814 million). Special appropriations applied and other expenses in 2013–14 include a $540.468 million court ordered crown proceedings payment to Tatts Group in settlement of gambling licences litigation.

89 Note 4. Income from transactions

2015 2014 $’000 $’000 (a) Interest Interest from financial assets at fair value through profit/loss: – Interest from investments 8,609 9,798 – Interest from real estate agent trust accounts 30,970 25,311 Total interest 39,579 35,109

(b) Grants Other specific purpose from: – General government outside portfolio 3,528 9,785 – Other states and local government 448 607 Total grants 3,976 10,392

(c) Other income Fines and fees 13,223 12,063 Sale of goods 145 106 Dividends from investments 9,959 6,637 Income from Residential Tenancies Bond Authority (RTBA) (i) 10,000 12,300 Other (i) 16,805 13,544 Fair value of assets received free of charge or for nominal consideration 8,627 14,154 Total other income (i) 58,759 58,804

Note 5. Expenses from transactions 2015 2014 $’000 $’000 (a) Employee expenses Salary and wages (i) 460,981 581,806 Superannuation (note 17) (i) 45,849 52,898 Annual leave and long service leave expense (i) 59,924 73,752 Other on-costs (fringe benefits tax, payroll tax and workcover levy)(i) 37,826 47,384 Departure packages 643 813 Total employee expenses (i) 605,223 756,653

(b) Depreciation and amortisation Buildings (i) 35,225 37,972 Buildings leasehold 15,939 21,657 Leasehold improvements (i) 7,859 9,964 Plant and equipment 15,756 13,480 Leased plant and equipment (i) 4,508 7,030 Software 16,491 19,382 Total depreciation and amortisation (i) 95,778 109,485

(c) Interest expense Interest on finance leases(i) 21,542 32,095 Total interest expense (i) 21,542 32,095

(i) The 2013–14 comparative has been adjusted (refer to note 1V).

90 Department of Justice and Regulation Annual Report 2014–15

Note 5. Expenses from transactions

2015 2014 $’000 $’000 (d) Grants and other transfers Payments for specific purpose to: – Victoria Police 2,434,295 2,275,790 – Country Fire Authority 451,214 467,023 – Metropolitan Fire and Emergency Services Board 325,705 329,695 – Victoria Legal Aid 130,127 127,390 – Office of Public Prosecution 59,902 57,908 – Victoria State Emergency Service 47,191 46,975 – Victorian Electoral Commission 46,395 23,062 – Court Services Victoria 35,040 0 – Victorian Commission for Gambling and Liquor Regulation 32,454 34,502 – Victorian Institute of Forensic Medicine 27,575 28,223 – Independent Broadbased Anti–corruption Commission 14,873 27,353 – Emergency Services Telecommunications Authority 24,376 14,450 – Victorian Equal Opportunity and Human Rights Commission 7,985 7,956 – Freedom of Information Commissioner (i) 1,402 3,072 – Victorian Inspectorate 1,389 2,418 – Judicial College of Victoria 0 2,206 – Office of the Victorian Privacy Commissioner 422 2,040 – Office of the Commissioner for Privacy and Data Protection 1,014 0 – Sentencing Advisory Council 1,753 1,681 – Victorian Responsible Gambling Foundation 997 689 – Other parties 99,612 87,875 Total grants and other transfers (i) 3,743,721 3,540,308

(e) Supplies and services Outsourced contracted costs 383,034 347,158 Contractors, professional services, and consultants (i) 105,993 114,895 Prison operating expenses 32,757 26,441 Accommodation and property services (i) 55,619 76,767 Printing, stationery and other office expenses(i) 27,815 38,296 Technology services costs (i) 38,054 52,874 Other (i) 55,762 68,686 Total supplies and services (i) 699,034 725,117

(i) The 2013–14 comparative has been adjusted (refer to note 1V).

91 Note 6. Other economic flows included in net result

2015 2014 $’000 $’000 (a) Net gain/(loss) on non-financial assets Impairment of intangible asset (13,076) 0 Net gain/(loss) on disposal of property, plant and equipment 1,106 1,730 Total net gain/(loss) on non-financial assets (11,970) 1,730

(b) Net gain/(loss) on financial instruments Impairment of loans and receivables (i) 1,103 (429) Bad debts written off by unilateral agreement (1,158) (808) Net gain/(loss) on disposal of financial instruments 138 984 Net gain/(loss) from revaluation of financial assets at fair value 627 10,013 Total net gain/(loss) on financial instruments 710 9,760

(c) Other gains/(losses) from other economic flows Net gain/(loss) from revaluation of long service leave liability (ii)(iii) (2,456) 1,028 Net gain/(loss) from revaluation of other provisions (iv) (188) (278) Total other gains/(losses) from other economic flows (2,644) 750

(i) Includes increase/decrease in provision for doubtful debts from other economic flows. (ii) Revaluation gain/(loss) due to changes in bond rates. (iii) The 2013–14 comparative has been adjusted (refer to note 1V). (iv) Revaluation gain/(loss) due to changes in bond rates and actuarial assumptions.

92 Department of Justice and Regulation Annual Report 2014–15

Note 7. Restructuring of administrative arrangements

Transfer of net assets to Courts Services Victoria On 1 July 2014, Court Services Victoria commenced operations as a statutory public sector body under the Court Services Victoria Act 2014. On commencement, the responsibility for the administrative services and facilities that support the Victorian courts, Victorian Civil and Administrative Tribunal, and Judicial College of Victoria, transferred from the department to Court Services Victoria. As part of this restructure of administrative arrangements, the department transferred a number of employees and other net assets to Court Services Victoria. The net assets transferred out of the department as a result of the administrative restructure were recognised at the carrying amount of those assets in the balance sheet immediately prior to the transfer. The net assets transfer was treated as a contribution of capital by the State in compliance with the accounting requirements of Financial Reporting Direction 119A Transfers Through Contributed Capital. In respect of the activities relinquished, the following assets and liabilities were transferred at the date of transfer:

2015 2014 $’000 $’000 Controlled Assets Cash 1,933 0 Receivables 41,183 0 Prepayments 1,305 0 Property, plant and equipment - carrying value 731,586 0 Intangible assets – carrying value 35,489 0 Liabilities Employee provisions (65,106) 0 Other liabilities (119,899) 0 Controlled net assets transferred 626,491 0

Net capital contribution (626,491) 0

Administered Assets Cash 6,801 0 Receivables 1,878 0 Liabilities Other liabilities (8,953) 0 Administered net assets transferred (274) 0

Net capital contribution 274 0

The revaluation surplus in relation to certain relinquished non-financial physical assets of $349.4 million was also reclassified to accumulated surplus in accordance with FRD119A at the date of transfer.

93 Note 7. Restructuring of administrative arrangements

Transfer of net assets to Department of Premier and Cabinet On 1 January 2015, the office of the Public Interest Monitor was transferred from the department to the Department of Premier and Cabinet as a result of a machinery of government change announced by the Victorian Government on 4 December 2014. As part of this restructure of administrative arrangements, the department transferred a number of employees and other net assets to the Department of Premier and Cabinet. The net assets transferred out of the department as a result of the administrative restructure were recognised at the carrying amount of those assets in the balance sheet immediately prior to the transfer. The net assets transfer was treated as a contribution of capital by the State in compliance with the accounting requirements of Financial Reporting Direction 119A Transfers Through Contributed Capital. In respect of the activities relinquished, the following assets and liabilities were transferred at the date of transfer:

2015 2014 $’000 $’000 Controlled Assets Cash 17 0 Receivables 268 0 Property, plant and equipment – carrying value 733 0 Liabilities Employee provisions (253) 0 Other liabilities (53) 0 Controlled net assets transferred 712 0

Net capital contribution from the Crown (712) 0

94 Department of Justice and Regulation Annual Report 2014–15

Transfer of office of Freedom of Information Commissioner to Department of Premier and Cabinet On 1 January 2015, the office of the Freedom of Information Commissioner, which is a statutory reporting entity, was transferred from the department to the Department of Premier and Cabinet as a result of a machinery of government change announced by the Victorian Government on 4 December 2014. The office of the Freedom of Information Commissioner was previously consolidated into the department’s financial statements pursant to a determination, dated 10 July 2013, made by the Minister for Finance under Section 53(1)(b) of the Financial Management Act 1994 (Act No. 18). The department’s financial statements have been updated to remove this entity as if it had never been consolidated. The office of the Freedom of Information Commissioner’s main financial statements to 31 December 2014 would be as per the following:

Comprehensive operating statement for the financial year to: 31 December 2014 30 June 2014 $’000 $’000 Income from transactions Grant revenue 1,402 3,072 Total income from transactions 1,402 3,072

Expenses from transactions Employee expenses 985 1,813 Depreciation and amortisation 19 37 Interest expense 1 1 Supplies and services 401 1,245 Total expenses from transactions 1,406 3,096

Net result from transactions (net operating balance) (4) (24)

Other economic flows included in net result Other gains/(losses) from other economic flows 4 1 Total other economic flows included in net results 4 1

Net result 0 (23)

Comprehensive result 0 (23)

95 Note 7. Restructuring of administrative arrangements

Balance sheet as at: 31 December 2014 30 June 2014 $’000 $’000 Asset Financial assets Receivables 706 709 Total financial assets 706 709 Non-financial assets Property, plant and equipment 160 138 Total non-financial assets 160 138

Total assets 866 847

Liabilities Payables 272 304 Borrowings 56 22 Provisions 473 456 Total liabilities 801 782

Net assets 65 65

Equity Accumulated surplus/(deficit) (109) (109) Contributed capital 174 174 Net worth 65 65

Statement of changes in equity as at: Accumulated Contributed surplus/(deficit) capital $’000 $’000 Balance at 1 July 2013 (86) 174

Net result for the year (23) 0

Balance at 30 June 2014 (109) 174

Net result for the year 0 0

Balance at 31 December 2014 (109) 174

96 Department of Justice and Regulation Annual Report 2014–15

Cash flow statement as at: 31 December 2014 30 June 2014 $’000 $’000 Cash flows from operating activities

Receipts Receipts from Government 1,405 2,672 Total receipts 1,405 2,672

Payments Payments to suppliers and employees (1,396) (2,693) Interest and other costs of finance paid (1) (1) Total payments (1,397) (2,694)

Net cash flows from/(used in) operating activities 8 (22)

Cash flows from investing activities Purchase of non-financial assets (42) 0 Sales of non-financial assets 0 36 Net cash flows from/(used in) investing activities (42) 36

Cash flows from financing activities Proceeds from borrowings 42 0 Repayment of borrowings and finance leases (8) (14) Net cash flows from/(used in) financing activities 34 (14)

Net increase/(decrease) in cash and cash equivalents 0 0

Cash and cash equivalents at beginning of financial year 0 0

Cash and cash equivalents at end of financial year 0 0

97 Note 8. Receivables

2015 2014 $’000 $’000 Current receivables Contractual Other receivables (i) 21,220 12,154 Provision for doubtful contractual receivables (i) (See also note 8(a) below) (775) (1,878) 20,445 10,276 Statutory Amounts owing from Victorian Government (ii)* 651,484 514,493 GST input tax credit recoverable 34,218 54,746 685,702 569,239 Total current receivables 706,147 579,515 * $266.668 million (2014: $231.102 million) relates to Victoria Police.

Non-current receivables Contractual Advance to Metropolitan Fire and Emergency Services Board 1,665 0 Other receivable 1,603 0 3,268 0 Statutory Amounts owing from Victorian Government (ii)* 139,448 160,515 139,448 160,515 Total non-current receivables 142,716 160,515 Total receivables 848,863 740,030 * $122.443 million (2014: $135.673 million) relates to Victoria Police. (i) The department’s policy on the average credit period on sales of goods is 30 days. No interest is charged on other receivables. An allowance has been made for estimated irrecoverable amounts from the sale of goods when there is objective evidence that an individual receivable is impaired. The increase was recognised in the net result for the current financial year. (ii) The amounts recognised from the Victorian Government represent funding for all commitments incurred through the appropriations and are drawn from the Consolidated Fund as the commitments fall due.

(a) Movement in the provision for doubtful contractual receivables 2015 2014 $’000 $’000 Balance at beginning of the year 1,878 1,449 Reversal of unused provision recognised in net result (3) 0 Increase in provision recognised in the net result 0 1,100 Reversal of provision for receivables written off during the year as uncollectible (1,100) (671) Balance at end of the year 775 1,878

(b) Ageing analysis of contractual receivables Please refer to note 21(b) (table 21.4) for the ageing analysis of contractual receivables.

(c) Nature and extent of risk arising from contractual receivables Please refer to note 21 for the nature and extent of credit risk arising from contractual receivables.

98 Department of Justice and Regulation Annual Report 2014–15

Note 9. Investments and other financial assets

2015 2014 $’000 $’000 Current investments and other financial assets – Term deposits (i) > 3 months 7,500 100,600 Total current investments and other financial assets 7,500 100,600

Non-current investments and other financial assets Managed investment schemes: – Equity trust – Australian dollar (ii) 88,372 86,915 – Equity trust – foreign currency (ii) 27,600 0 – Fixed interest trust (ii) 89,795 43,023 – Unlisted property trust (ii) 20,297 18,554 Total non-current investments and other financial assets 226,064 148,492

Total investments and other financial assets 233,564 249,092

(i) Term deposits under ‘investments and other financial assets’ class include only term deposits with maturity greater than 3 months. (ii) The department designated all its managed investment schemes at fair value through profit or loss.

(a) Ageing analysis of investments and other financial assets Please refer to note 21(b) (Table 21.4) for the ageing analysis of investments and other financial assets.

(b) Nature and extent of risk arising from investments and other financial assets Please refer to note 21 for the nature and extent of risks arising from investments and other financial assets.

Note 10. Inventories

2015 2014 $’000 $’000 Current inventories Supplies and consumables – at cost 3,378 3,467 Raw materials – at cost 3,554 4,046 Work in progress – at cost 0 0 Total inventories 6,932 7,513

99 Note 11. Non-financial physical assets classified as held for sale

2015 2014 $’000 $’000 Non-financial physical assets classified as held for sale: Land held for sale 1,514 1,514 Finance lease vehicles held for sale 94 365 Total non-financial physical assets classified as held for sale 1,608 1,879

Liabilities directly associated with assets classified as held for sale: Finance lease vehicles liabilities 82 361 Total liabilities directly associated with assets classified as held for sale 82 361

(a) Fair value measurement of non-financial physical assets classified as held for sale The following table provides the fair value measurement hierarchy of the department’s non-financial physical assets classified as held for sale, excluding the finance lease assets. The fair value measurement heirarchy does not apply to finance lease assets.

($’000) Carrying amount as at Fair value measurement at end of 2015 30 June 2015 reporting period using: Level 1(i) Level 2(i) Level 3(i) Land held for sale 1,514 0 0 1,514 Total assets classified as held for sale 1,514 0 0 1,514

(i) Classified in accordance with the fair value hierarchy, see note 1(B).

($’000) Carrying amount as at Fair value measurement at end of 2014 30 June 2014 reporting period using: Level 1(i) Level 2(i) Level 3(i) Land held for sale 1,514 0 0 1,514 Total assets classified as held for sale 1,514 0 0 1,514

(i) Classified in accordance with the fair value hierarchy, see note 1(B).

100 Department of Justice and Regulation Annual Report 2014–15

Note 12. Property, plant and equipment

Classification by ‘Public Safety and Environment’ purpose group – Carrying amounts

Gross carrying Accumulated Net carrying amount depreciation amount 2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000 Land at fair value (ii) 216,533 377,278 0 0 216,533 377,278

Buildings at fair value (i)(ii) 1,014,229 1,025,681 (113,565) (110,558) 900,664 915,123

Buildings leasehold at fair value (ii) 504,412 743,793 (63,754) (68,651) 440,658 675,142

Leasehold improvements at fair value (i)(iii) 84,698 105,276 (45,959) (47,935) 38,739 57,341

Plant and equipment at fair value (i)(iv) 189,376 177,907 (84,514) (77,424) 104,862 100,483

Plant and equipment under finance lease at fair value(i)(iv) 19,504 28,710 (8,122) (10,294) 11,382 18,416

Assets under construction at cost (i) 500,161 674,741 0 0 500,161 674,741

Total property, plant and equipment (i) 2,528,913 3,133,386 (315,914) (314,862) 2,212,999 2,818,524

(i) The 2013–14 comparative has been adjusted (refer to note 1V). (ii) Fair value assessments have been performed for all classes of assets and the decision was made that movements were not material (less than or equal to 10 per cent) for a full revaluation. An independent valuation of the department’s land, buildings, leased buildings and cultural assets was performed by the Valuer General in 2010–11. The next scheduled full revaluation of the department’s land, buildings, leased buildings and cultural assets will be conducted in 2016 (refer to note 1(M)). (iii) Fair value of leasehold improvements is depreciated cost. Expenditure is depreciated over the life of the lease agreement, to reflect the consumption of economic resources over the period of the agreement. (iv) The fair value of plant and equipment is depreciated cost. This represents a reasonable approximation of fair value as there is no evidence of a reliable market-based fair value for this class of asset.

101 Note 12. Property, plant and equipment

Classification by ‘Public Safety and Environment’ Purpose Group – Movements in carrying amounts

Buildings Plant & Leased Assets Buildings leasehold Leasehold equipment plant & under Land at at fair at fair improvements at fair equipment construction fair value (ii) value (ii) value (ii) at fair value value at fair value at cost Total 2015 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Opening written down balance(i) 377,278 915,123 675,142 57,341 100,483 18,416 674,741 2,818,524

Additions 0 3,857 0 2,062 6,694 7,782 183,223 203,618

Disposals 0 0 0 0 (11) (2,164) 0 (2,175)

Transfer out of assets under 0 333,111 0 4,670 15,996 0 (353,777) 0 construction

Impairment of assets 0 0 (5,000) 0 0 0 0 (5,000)

Reclassification between classes 0 14 0 96 (1,329) 0 1,219 0

Machinery of government transfer in 0 0 0 0 0 0 0 0

Machinery of government transfer out (161,965) (316,694) (213,545) (17,267) (9,549) (8,055) (5,245) (732,320)

Fair value of assets received free of 0 0 0 0 8,623 4 0 8,627 charge or for nominal consideration

Fair value of assets provided free of 0 0 0 (135) (109) 0 0 (244) charge or for nominal consideration

Depreciation(iii) 0 (35,225) (15,939) (7,859) (15,756) (4,508) 0 (79,287)

Transfer to disposal group held for sale 0 0 0 0 0 (94) 0 (94)

Net transfers contributed capital 1,220 478 0 (169) (180) 1 0 1,350

Closing written down balance 216,533 900,664 440,658 38,739 104,862 11,382 500,161 2,212,999

(i) The 2013–14 comparative has been adjusted (refer to note 1V). (ii) Fair value assessments have been performed for all classes of assets and the decision was made that movements were not material (less than or equal to 10 per cent) for a full revaluation. The next scheduled revaluation will occur in 2016 (refer to note 1(M)). (iii) Aggregate depreciation allocated during the year is recognised as an expense and disclosed in Note 5(b) to the financial statements.

102 Department of Justice and Regulation Annual Report 2014–15

Classification by ‘Public Safety and Environment’ Purpose Group – Movements in carrying amounts

Buildings Plant & Leased Assets Buildings leasehold Leasehold equipment plant & under Land at at fair at fair improvements at fair equipment construction fair value value(i) value at fair value value at fair value at cost(i) Total 2014 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening written down balance (i) 377,506 862,958 696,799 61,889 87,721 18,348 438,372 2,543,593

Additions (i) 1,160 2,100 0 5,392 10,792 11,510 319,667 350,621

Disposals 0 0 0 0 (150) (4,047) 0 (4,197)

Transfer out of assets under 0 89,850 0 583 5,574 0 (96,007) 0 construction (i)

Impairment of assets (134) (1,466) 0 0 0 0 0 (1,600)

Reclassification between classes 0 0 0 0 (1,641) 0 9,558 7,917

Machinery of government transfer in 0 0 0 277 367 0 0 644

Machinery of government transfer out 0 0 0 0 0 0 0 0

Fair value of assets received free of 0 0 0 0 11,003 0 3,151 14,154 charge or for nominal consideration

Depreciation (i) 0 (37,972) (21,657) (9,964) (13,480) (7,030) 0 (90,103)

Transfer to disposal group held for sale (454) 0 0 0 0 (365) 0 (819)

Net transfers contributed capital (800) (347) 0 (836) 297 0 0 (1,686)

Closing written down balance(i) 377,278 915,123 675,142 57,341 100,483 18,416 674,741 2,818,524

(i) The 2013–14 comparative has been adjusted (refer to note 1V). Aggregate depreciation allocated during the year is recognised as an expense and disclosed in Note 5(b) to the financial statements.

103 Note 12. Property, plant and equipment

Fair value measurement hierarchy for assets as at 30 June 2015 ($’000) 2015 Carrying amount as at Fair value measurement at end of reporting 30 June 2015 period using: Level 1 (i) Level 2 (i) Level 3 (i)

Land at fair value Non-specialised land 0 0 0 0 Specialised land 216,533 0 0 216,533 Total land at fair value 216,533 0 0 216,533

Buildings at fair value Specialised buildings 900,664 0 0 900,664 Heritage buildings 0 0 0 0 Total buildings at fair value 900,664 0 0 900,664

Leasehold improvements at fair value Leasehold improvements 38,739 0 0 38,739 Total leasehold improvements at fair value 38,739 0 0 38,739

Plant and equipment at fair value Artwork (ii) 25 0 25 0 Other plant and equipment 104,837 0 0 104,837 Total plant and equipment at fair value 104,862 0 25 104,837

($’000) 2014 Carrying amount as at Fair value measurement at end of reporting 30 June 2014 period using: Level 1 (i) Level 2 (i) Level 3 (i)

Land at fair value Non-specialised land 1,000 0 1,000 0 Specialised land 376,278 0 0 376,278 Total land at fair value 377,278 0 1,000 376,278

Buildings at fair value Specialised buildings (iii) 887,839 0 0 887,839 Heritage buildings 27,284 0 0 27,284 Total buildings at fair value (iii) 915,123 0 0 915,123

Leasehold improvements at fair value Leasehold improvements (iii) 57,341 0 0 57,341 Total leasehold improvements at fair value (iii) 57,341 0 0 57,341

Plant and equipment at fair value Artwork (ii) 840 0 840 0 Other plant and equipment (iii) 99,643 0 0 99,643 Total plant and equipment at fair value (iii) 100,483 0 840 99,643

(i) Classified in accordance with the fair value hierarchy, see note 1(B). (ii) Artworks have been valued by an independent valuer at market values. (iii) The 2013–14 comparative has been adjusted (refer to note 1V). There have been no transfers between levels during the period.

104 Department of Justice and Regulation Annual Report 2014–15

Restricted assets All of the department’s heritage buildings were transferred to Courts Services Victoria on 1 July 2014. Non-specialised land, non-specialised buildings and artworks Non-specialised land, non-specialised buildings and artworks are valued using the market approach. Under this valuation method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value. For non-specialised land an independent valuation was performend by the independent valuers G. M. Brien & Associates Pty Ltd to determine the fair value using the market approach. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued. From the sales analysed, an appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is 30 June 2011. The independent Valuer for buildings was Napier & Blakeley Pty Lty and also has an effective date of 30 June 2011. For artwork, valuation of the assets is determined by a comparison to similar examples of the artists work in existence throughout Australia and research on prices paid for similar examples offered at auction or through art galleries in recent years. No revaluation was performed for artwork for the financial period ended at 30 June 2015 (the last valuation occurred as at 30 June 2011 by the independent valuer the Dominion Group). To the extent that non-specialised land, non-specialised buildings and artworks do not contain significant, unobservable adjustments, these assets are classified as level 2 under the market approach. Specialised land and specialised buildings The market approach is also used for specialised land, although is adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued. The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as level 3 assets. For department’s majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the associated depreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified as level 3 fair value measurements. An independent valuation of the departments’ specialised land and specialised buildings was performed by the Valuer- General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2011. Heritage assets Heritage assets are valued using the depreciated replacement cost method. This cost represents the replacement cost relate to costs to replace the current service capacity of the asset. Economic obsolesence has also been factored into the depreciated replacement cost calculation. Plant and equipment Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using the depreciated replacement cost method. There were no changes in valuation techniques throughout the period to 30 June 2015. For all assets measured at fair value, the current use is considered the highest and best use.

105 Note 12. Property, plant and equipment

Reconciliation of level 3 fair value ($’000) Specialised Specialised Heritage Leasehold Plant and 2015 land buildings buildings improvements equipment

Opening balance (i) 376,278 887,839 27,284 57,341 99,643 Purchases (sales) 1,220 337,460 0 6,524 29,684 Transfers in (out) of level 3 (160,965) (289,410) (27,284) (17,267) (8,734) Depreciation 0 (35,225) 0 (7,859) (15,756) Impairment loss 0 0 0 0 0 Closing balance 216,533 900,664 0 38,739 104,837

($’000) Specialised Specialised Heritage Leasehold Plant and 2014 land buildings buildings improvements equipment

Opening balance (i) 376,506 833,689 29,269 61,889 86,915 Purchases (sales) (i) (94) 91,603 0 5,416 26,208 Depreciation (i) 0 (35,987) (1,985) (9,964) (13,480) Impairment loss (134) (1,466) 0 0 0 Closing balance (i) 376,278 887,839 27,284 57,341 99,643

(i) The 2013–14 comparative has been adjusted (refer to note 1V).

Description of significant unobservable inputs to level 3 valuations:

Valuation Significant Range (weighted Sensitivity of fair value measurement to technique unobservable inputs average) changes in significant unobservable inputs

Specialised Market approach Community service 25% Significant increases (decreases) in the CSO land obligation (CSO) adjustment would result in a significantly lower adjustment (higher) fair value.

Specialised Depreciated Useful life 5–47 years Significant increases (decreases) in the buildings replacement cost estimated useful life of the asset would result in a significantly higher (lower) valuation.

Heritage Depreciated Useful life 5–23 years Significant increases (decreases) in the buildings replacement cost estimated useful life of the asset would result in a significantly higher (lower) valuation.

Leasehold Depreciated Term of lease 2–20 years Significant increases (decreases) in the improvements replacement cost estimated useful life of the asset would result in a significantly higher (lower) valuation.

Plant and Depreciated Useful life 1–25 years Significant increases (decreases) in the equipment replacement cost estimated useful life of the asset would result in a significantly higher (lower) valuation.

106 Department of Justice and Regulation Annual Report 2014–15

Note 13. Intangible assets

2015 2014 $’000 $’000 Gross carrying amount Opening balance 138,174 130,674 Additions 0 7,387 Reclassification from/(to) plant and equipment 0 (7,917) Net additions to/(from) software works in progress 3,174 9,214 Refund on termination of contract (i) (9,300) 0 Disposals 0 (1,184) Impairment (i) (13,076) 0 Machinery of government transfer out (51,285) 0 Closing balance 67,687 138,174

Accumulated amortisation Opening balance 46,343 28,145 Amortisation expense (ii) 16,491 19,382 Disposals 0 (1,184) Machinery of government transfer out (15,796) 0 Closing balance 47,038 46,343

Net book value at end of financial year 20,649 91,831

(i) In March 2015, the department reached an agreement to terminate the Infringement Management & Enforcement Services (IMES) software development contract, a refund of $9.3 million and an impairment loss of approximately $13.1 million was recognised for the period. Impairment losses are included in the line item ‘net gain/(loss) on non-financial assets’ in the comprehensive operating statement. (ii) The consumption of intangible produced assets is included in the ‘depreciation and amortisation’ expense line item in note 5(b) and the comprehensive operating statement. Significant intangible assets The department has a software asset valued at $14.8 million relating to the Location Based Early Warning System. This is a national system that broadcasts warnings to all landline and mobile phones during emergencies such as bush fires.

107 Note 14. Payables

2015 2014 $’000 $’000 Current payables Contractual Trade creditors and other payables (i)(ii)(iii)(iv) 135,586 100,818 Accrued capital works 151,998 398,801 Salaries and wages (iii) 5,487 13,792 293,071 513,411 Statutory Pay as you go (PAYG) tax withheld (iv) 6,101 7,534 Payroll tax 4,224 4,462 Fringe benefits tax(iii) 176 833 Amounts payable to government agencies * (iii) 297,110 267,128 307,611 279,957 Total current payables (iii) 600,682 793,368

* $266.668 million (2014: $231.102 million) relates to Victoria Police.

Non-current payables Contractual Amounts payable to government 1,665 0

Statutory Amounts payable to government agencies * 122,443 135,673 Total non-current payables 124,108 135,673 Total payables (iii) 724,790 929,041 * $122.443 million (2014: $135.673 million) relates to Victoria Police. (i) The department’s policy on the average credit period is 30 days. (ii) This amount includes accrued expenses and other payables. (iii) The 2013–14 comparative has been adjusted to remove balances relating to the office of the Freedom of Information Commissioner (refer to note 1V). (iv) The 2013–14 comparative has been adjusted to reclassify pay as you go (PAYG) tax withheld from being a contractual payable to a statutory payable.

(a) Maturity analysis of contractual payables Please refer to note 21(c) (table 21.5) for the maturity analysis of contractual payables.

(b) Nature and extent of risk arising from contractual payables Please refer to note 21 for the nature and extent of risks arising from contractual payables.

108 Department of Justice and Regulation Annual Report 2014–15

Note 15. Borrowings

2015 2014 $’000 $’000 Current borrowings Finance lease liabilities (i) (note 18) - PPP related finance lease liabilities 13,326 20,504 - Non-PPP related finance lease liabilities(ii) 6,236 10,000 Total current borrowings (ii) 19,562 30,504

Non-current borrowings Finance lease liabilities (i) (note 18) - PPP related finance lease liabilities 175,894 281,560 - Non-PPP related finance lease liabilities 5,215 8,934 Total non current borrowings 181,109 290,494 Total borrowings (ii) 200,671 320,998

(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the event of default. (ii) The 2013–14 comparative has been adjusted (refer to note 1V).

(a) Maturity analysis of borrowings Please refer to note 21(c) (table 21.5) for the maturity analysis of borrowings.

(b) Nature and extent of risk arising from borrowings Please refer to note 21 for the nature and extent of risk arising from borrowings.

(c) Defaults and breaches During the current and prior years, there were no defaults and breaches of any of the loans.

109 Note 16. Provisions

2015 2014 $’000 $’000 Current provisions Employee benefits(i) (note 16(a)) – annual leave: - Unconditional and expected to be settled within 12 months (ii)(iv) 36,268 39,663 - Unconditional and expected to be settled after 12 months (iii)(iv) 5,192 6,328 Employee benefits(i) (note 16(a)) – long service leave: - Unconditional and expected to be settled within 12 months (ii)(iv) 38,848 56,268 - Unconditional and expected to be settled after 12 months (iii)(iv) 24,371 36,435 104,679 138,694 Provisions for on-costs (note 16(a) and (b)): - Unconditional and expected to be settled within 12 months (ii) 16,061 19,422 - Unconditional and expected to be settled after 12 months (iii) 5,693 7,037 Other provisions (note 16(b)) 3,970 2,892 25,724 29,351 Total current provisions (iv) 130,403 168,045

Non-current provisions Employee benefits(i)(iv) (note 16(a)) 16,071 24,257 Provisions for on-costs (note 16(a) and (b)) 2,648 3,444 Other provisions (note 16(b)) 10,456 8,567 Total non-current provisions (iv) 29,175 36,268

Total provisions (iv) 159,578 204,313

(a) Employee benefits(i) and related on-costs Current employee benefits Annual leave entitlements (iv) 41,460 45,991 Long service leave entitlements (iv) 63,219 92,703 104,679 138,694 Non-current employee benefits Long service leave entitlements (iv) 16,071 24,257 Total employee benefits(iv) 120,750 162,951 Current on-costs 21,754 26,459 Non-current on-costs 2,648 3,444 Total on-costs 24,402 29,903 Total employee benefits and related on-costs(iv) 145,152 192,854

(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts. (iii) The amounts disclosed are discounted to present value. (iv) The 2013–14 comparative has been adjusted (refer to note 1V).

110 Department of Justice and Regulation Annual Report 2014–15

(b) Movement in provisions Employee benefit Other 2015 on-costs provisions Total $’000 $’000 $’000 Opening balance 29,903 11,459 41,362 Additional provisions recognised 12,946 5,740 18,686 Reductions arising from payments/other sacrifices of future economic benefits (10,125) (2,892) (13,017) Unwind of discount and effect of changes in the discount rate 0 119 119 Reduction due to transfer out (8,322) 0 (8,322) Closing balance 24,402 14,426 38,828 Current 21,754 3,970 25,724 Non-current 2,648 10,456 13,104

Employee benefit Other 2014 on-costs provisions Total $’000 $’000 $’000 Opening balance 27,656 10,900 38,556 Additional provisions recognised 15,069 3,070 18,139 Reductions arising from payments/other sacrifices of future economic benefits (12,822) (2,813) (15,635) Unwind of discount and effect of changes in the discount rate 0 302 302 Closing balance 29,903 11,459 41,362 Current 26,459 2,892 29,351 Non-current 3,444 8,567 12,011

111 Note 17. Superannuation

Employees of the department are entitled to receive superannuation benefits and the department contributes to both defined benefit and defined contribution plans. The defined benefit plans provides benefits based on years of service and final average salary. The department does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its disclosure for administered items. However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of the department. The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by the department are as follows:

Fund Paid contribution Contribution outstanding for the at year end 2015 2014 2015 2014 $’000 $’000 $'000 $'000 Defined benefit plans: Emergency Services and State Super - revised and new (i) 4,917 7,532 40 41 Defined contribution plans: VicSuper (i) 32,694 36,376 289 213 Various other (i) 7,837 8,682 72 54 Total 45,448 52,590 401 308

(i) The 2013–14 comparative has been adjusted (refer to note 1V). The basis for contributions is determined by the various schemes.

112 Department of Justice and Regulation Annual Report 2014–15

Note 18. Leases

Leasing arrangements As part of the Corrections’ Long Term Management Strategy, the State entered into a 25 year public private partnership (PPP) arrangement for the design, construction and maintenance of two prisons, Marngoneet Correctional Centre and Metropolitan Remand Centre. The Marngoneet Correctional Centre is a medium security facility located at Lara, providing intensive treatment and offender management programs for males who are at moderate to high risk of re-offending. The Metropolitan Remand Centre is a maximum security facility located at Ravenhall for unsentenced male prisoners. The finance leases for the provision of these prison facilities end in 2031, and are disclosed in the table below. The commitments for facilities maintenance and security services, which also expire in 2031, are disclosed in note 19. The State also entered into finance leases for the provision of prison facilities for 20 years at Fulham Correctional Centre and 15 years at Port Phillip Prison. Fulham Correctional Centre accommodates predominantly mainstream sentenced prisoners. Port Phillip Prison is a maximum security facility providing remand, mainstream, protection and specialist accommodation for prisoners. The finance lease for Fulham’s prison facilities ends in 2017, and is disclosed in the table below. The finance lease for Port Phillip’s prison facilities ended in September 2012. The commitments for facilities maintenance and correctional services for both prisons are disclosed in note 19. The State also entered into a 20 year contract with the private sector for the design, construction and management of the County Court. The facility provides the County Court and court users with accommodation services at the facility throughout the term of the contract, which ends in 2022. The finance lease and commitments in relation to these facilities transferred to Court Services Victoria on 1 July 2014.

Finance lease liabilities payable Minimum future lease Present value of minimum payments future lease payments 2015 2014 2015 2014 $'000 $'000 $'000 $'000

PPP related finance lease liabilities payable Not longer than 1 year 33,918 50,572 13,326 20,503 Longer than 1 year and not longer than 5 years 113,054 192,884 34,085 87,252 Longer than 5 years 334,208 412,766 141,809 194,309 481,180 656,222 189,220 302,064 Other finance lease liabilities payable Not longer than 1 year (i) 6,620 10,749 6,236 10,000 Longer than 1 year and not longer than 5 years 5,416 9,278 5,215 8,934 Longer than 5 years 0 0 0 0 12,036 20,027 11,451 18,934

Minimum future lease payments* (i) 493,216 676,249 200,671 320,998 Less future finance charges (292,545) (355,251) 0 0

Present value of minimum lease payments (i) 200,671 320,998 200,671 320,998 Included in the financial statements as: Current borrowings lease liabilities (note 15) (i) 19,562 30,504 Non-current borrowings lease liabilities (note 15) 181,109 290,494 200,671 320,998 * Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual. (i) The 2013–14 comparative has been adjusted (refer to note 1V).

(a) Maturity analysis of finance lease liabilities Please refer to note 21(c) (table 21.5) for the maturity analysis of finance lease liabilities. (b) Nature and extent of risk arising finance lease liabilities Please refer to notes 21(c) and (d) for the nature and extent of risk arising from finance lease liabilities.

113 Note 19. Commitments for expenditure

(a) Commitments other than public private partnerships (i) ($’000) 2015 2014 Nominal Nominal value value Capital expenditure commitments Property, plant and equipment 113,452 130,313 Total capital expenditure commitments 113,452 130,313

Intangible asset commitments Software 8,935 20,648 Total intangible asset commitments 8,935 20,648

Operating lease commitments Accommodation leases 204,540 237,590 Other 12 880 Total operating lease commitments 204,552 238,470

Outsourcing commitments Prison operation and maintenance contracts 435,190 446,375 Prisoner transportation contracts 99,854 0 Infringement Management and Enforcement Services contracts 95,653 76,277 Traffic camera services contracts 77,495 31,490 Health services contracts 140,567 148,767 Working with children contracts 7,017 14,847 Other 78,626 55,434 Total outsourcing commitments 934,402 773,190 Total commitments other than public private partnerships 1,261,341 1,162,621 (i) The figures presented are inclusive of GST.

(b) Public private partnerships Commissioned public private partnerships (i)(ii)(iii) ($’000) 2015 2014 Other commitments Other commitments Net present Nominal Net present Nominal value value value value Private Prisons 1,446,629 1,921,707 520,705 611,543 County Court 0 0 34,360 45,431 Sub-total 1,446,629 1,921,707 555,065 656,974

Uncommissioned public private partnerships (iv) ($’000) 2015 2014 Minimum Minimum lease Other Total lease Other Total payments commitments commitments payments commitments commitments Discounted Present Nominal Discounted Present Nominal value value value value value value Private Prison (v) 791,623 2,652,215 7,459,820 0 0 0 Sub-total 791,623 2,652,215 7,459,820 0 0 0 Total commitments for public private 4,098,844 9,381,527 555,065 656,974 partnerships

114 Department of Justice and Regulation Annual Report 2014–15

(i) The present values of the minimum lease payments for commissioned public private partnerships (PPPs) are recognised on the balance sheet and are not disclosed as commitments. (ii) The year on year increase of the commissioned private prisons’ other commitments reflect the renewed contract for operating and maintaining Fulham prison for a further 20 years. (iii) Refer to note 18 for further details on the commissioned public private partnership projects. (iv) The discounted values of the minimum lease payments for uncommissioned PPPs have been discounted to the projects’ expected dates of commissioning, and the present values of other commitments have been discounted to 30 June of the respective financial years. (v) In September 2014, the State entered into a contract with GEO Consortium to design, construct, operate and maintain a new medium security men’s prison for an operating period of 25 years. (c) Commitments payable (i) ($’000) 2015 2014 Nominal Nominal value value Capital expenditure commitments payable Less than 1 year 103,356 126,021 Longer than 1 year and not longer than 5 years 10,096 4,292 Longer than 5 years 0 0 Total capital expenditure commitments 113,452 130,313

Intangible assets commmitments payable Less than 1 year 2,298 20,648 Longer than 1 year and not longer than 5 years 6,637 0 Longer than 5 years 0 0 Total intangible assets commitments 8,935 20,648

Operating lease commitments payable Less than 1 year 34,366 39,531 Longer than 1 year and not longer than 5 years 116,771 118,842 Longer than 5 years 53,415 80,097 Total operating lease commitments 204,552 238,470

Outsourcing commitments payable Less than 1 year 249,517 196,855 Longer than 1 year and not longer than 5 years 306,771 181,588 Longer than 5 years 378,114 394,747 Total outsourcing commitments 934,402 773,190

Public private partnership commitments payable Less than 1 year 154,008 150,030 Longer than 1 year and not longer than 5 years 1,270,871 365,955 Longer than 5 years 7,956,648 140,989 Total public private partnership commitments 9,381,527 656,974

Total commitments 10,642,868 1,819,595 (i) For future finance lease payments refer to note 18.

115 Note 20. Contingent assets and contingent liabilities

2015 2014 $'000 $'000 Contingent assets Nil contingent assets Contingent liabilities Make good provisions 3,272 4,589 Liabilities pending the outcome of legal action 4,625 3,395 7,897 7,984

Unquantifiable contingent liability Native title A number of claims have been filed with the Federal Court under the CommonwealthNative Title Act 1993 that affect Victoria. It is not feasible at this time to quantify any future liability.

Note 21. Financial instruments

(a) Financial risk management objectives and policies The department’s principal financial instruments comprise of: • cash assets • term deposits • receivables (excluding statutory receivables) • managed investment schemes • payables (excluding statutory payables) • finance lease payables. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements. The main purpose in holding financial instruments is to prudentially manage the department’s financial risks within the government policy parameters. The department’s main financial risks include credit risk, liquidity risk, interest rate risk, and equity price risk. The department manages these financial risks in accordance with its financial risk management policy. The department uses different methods to measure and manage the different risks to which it is exposed. Primary responsibility for the identification and management of financial risks rests with the department’s Finance Committee. The carrying amounts of the department’s contractual financial assets and financial liabilities by category are in Table 21.1.

116 Department of Justice and Regulation Annual Report 2014–15

Categorisation of financial instruments(i) Table 21.1 ($’000) Contractual financial Contractual Contractual assets/liabilities financial assets financial designated at fair value loans and liabilities at 2015 through profit or loss receivables amortised cost Total Contractual financial assets Cash and deposits 0 280,556 0 280,556 Receivables 0 23,713 0 23,713 Investments and other contractual financial assets: – Managed investment schemes 226,064 0 0 226,064 – Term deposits > 3 months 0 7,500 0 7,500 Total contractual financial assets 226,064 311,769 0 537,833

Contractual financial liabilities Payables: – Trade creditors and other payables 0 0 135,586 135,586 – Accrued capital works 0 0 151,998 151,998 – Salary and wages 0 0 5,487 5,487 – Amounts payable to government 0 0 1,665 1,665 Borrowings: – Finance lease liabilities 0 0 200,671 200,671 Total contractual financial liabilities 0 0 495,407 495,407

($’000) Contractual financial Contractual Contractual assets/liabilities financial assets financial designated at fair value loans and liabilities at 2014 through profit or loss receivables amortised cost Total Contractual financial assets Cash and deposits 0 250,515 0 250,515 Receivables 0 10,276 0 10,276 Investments and other contractual financial assets: – Managed investment schemes 148,492 0 0 148,492 – Term deposits > 3 months 0 100,600 0 100,600 Total contractual financial assets 148,492 361,391 0 509,883

Contractual financial liabilities Payables: – Trade creditors and other payables (ii)(iii) 0 0 100,818 100,818 – Accrued capital works 0 0 398,801 398,801 – Salary and wages (ii) 0 0 13,792 13,792 – Amounts payable to government 0 0 0 0 Borrowings: – Finance lease liabilities (ii) 0 0 320,998 320,998 Total contractual financial liabilities(ii) 0 0 834,409 834,409 (i) Amounts disclosed in this table exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable and tax payable). (ii) The 2013–14 comparative has been adjusted to remove balances relating to the office of the Freedom of Information Commissioner (refer to note 1V). (iii) The 2013–14 comparative has been adjusted due to pay as you go (PAYG) tax withheld being reclassfied from a contractual payable to a statutory payable.

117 Note 21. Financial instruments

Net holding gain/(loss) on financial instruments by category(i) Table 21.2 ($’000) Total interest Net holding income/ 2015 gain/(loss) (expense) Total Contractual financial assets Designated at fair value through profit or loss 627 0 627 Loans and receivables (at amortised cost) (55) 8,609 8,554 Total contractual financial assets 572 8,609 9,181

Contractual financial liabilities At amortised cost 0 21,542 21,542 Total contractual financial liabilities 0 21,542 21,542

($’000) Total interest Net holding income/ 2014 gain/(loss) (expense) Total Contractual financial assets Designated at fair value through profit or loss 10,013 0 10,013 Loans and receivables (at amortised cost) (1,237) 9,798 8,561 Total contractual financial assets 8,776 9,798 18,574

Contractual financial liabilities At amortised cost (ii) 0 32,095 32,095 Total contractual financial liabilities(ii) 0 32,095 32,095 (i) Amounts disclosed in this table exclude holding gains and losses related to statutory financial assets and liabilities. (ii) The 2013–14 comparative has been adjusted (refer to note 1V). The net holding gains or losses disclosed above are determined as follows: • for cash and deposits, and loans or receivables, the net gain or loss is calculated by taking the movement in the fair value of the asset, the interest income, and minus any impairment recognised in the net result • for financial liabilities measured at amortised cost, the net gain or loss is the interest expense • for financial assets designated at fair value through profit or loss, the net gain or loss is calculated by taking the movement in the fair value of the financial asset. (b) Credit risk Credit risks arise from the contractual financial assets of the department, which comprises of cash and deposits, non- statutory receivables and investments and other contractual financial assets. The department’s exposure to credit risk arises from the potential default of a counterparty on their contractual obligations resulting in financial loss to the department. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the department’s contractual financial assets is minimal because the main debtor is the Victorian Government. Credit risk in relation to receivables is also monitored by management by reviewing the ageing of receivables on a monthly basis. In addition, the department does not engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. Credit risk in relation to the department’s investments and other contractual financial assets is managed by Treasury Corporation Victoria and the Victorian Funds Management Corporation. Provision of impairment for contractual financial assets is recognised when there is objective evidence that the department will not be able to collect on a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents the department’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

118 Department of Justice and Regulation Annual Report 2014–15

Credit quality of contractual financial assets that are neither past due nor impaired(i) Table 21.3 ($’000) Financial Government 2015 institutions agencies Other Total Cash and deposits (1,248) 61,471 220,333 280,556 Receivables 2,265 13,917 4,881 21,063 Investments and other financial assets 0 0 233,564 233,564 Total contractual financial assets 1,017 75,388 458,778 535,183

2014 Cash and deposits (2,312) 67,503 185,324 250,515 Receivables 2,250 2,988 3,560 8,798 Investments and other financial assets 0 0 249,092 249,092 Total contractual financial assets (62) 70,491 437,976 508,405

(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable). Contractual financial assets that are either past due or impaired There are no material financial assets which are individually determined to be impaired. Currently the department does not hold any collateral as security nor credit enhancements relating to any of its financial assets. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The ageing analysis table below discloses the ageing only of contractual financial assets that are past due but not impaired.

Ageing analysis of contractual financial assets(i) Table 21.4 ($’000) Past due but not impaired Not past Carrying due and not Less than 1 to 3 3 months 1 to 5 2015 amount impaired 1 month months to 1 year years Receivables: – Accrued interest 3,926 3,926 0 0 0 0 – Other receivables 19,787 17,137 1,053 672 912 13 Investments and other contractual financial assets: – Managed investment schemes 226,064 226,064 0 0 0 0 – Term deposits 7,500 7,500 0 0 0 0 257,277 254,627 1,053 672 912 13 2014 Receivables: – Accrued interest 5,627 5,627 0 0 0 0 – Other receivables 4,649 3,171 822 564 42 50 Investments and other contractual financial assets: – Managed investment schemes 148,492 148,492 0 0 0 0 – Term deposits 100,600 100,600 0 0 0 0 259,368 257,890 822 564 42 50

(i) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

119 Note 21. Financial instruments

(c) Liquidity risk Liquidity risk arises when the department is unable to meet its financial obligations as they fall due. The department operates under the government’s fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. The department’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the balance sheet. The exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. The carrying amount detailed in the following table of contractual financial liabilities recorded in the financial statements represents the department’s maximum exposure to liquidity risk. Table 21.5 discloses the contractual maturity analysis for the department’s contractual financial liabilities. Maturity analysis of contractual financial liabilities(i)(ii) Table 21.5 ($’000) Maturity dates(i) Greater Carrying Nominal Less than 1 to 3 3 months 1 to 5 than 5 2015 amount amount 1 month months to 1 year years years Contractual payables: – Other payables 294,736 294,736 294,775 (16) (5) (18) 0 Borrowings: – Finance lease liabilities 200,671 493,216 4,594 6,499 29,445 118,470 334,208 495,407 787,952 299,369 6,483 29,440 118,452 334,208 2014 Contractual payables: – Other payables (iii)(iv) 513,411 513,411 513,466 (24) (30) (1) 0 Borrowings: – Finance lease liabilities (iii) 320,998 676,249 6,671 9,809 44,841 202,162 412,766 834,409 1,189,660 520,137 9,785 44,811 202,161 412,766 (i) Maturity analysis is presented using the contractual undiscounted cash flow. (ii) The carrying amounts disclosed exclude statutory amounts (e.g. GST payable). (iii) The 2013–14 comparative has been adjusted to remove balances relating to the office of the Freedom of Information Commissioner (refer to note 1V). (iv) The 2013–14 comparative has been adjusted due to pay as you go (PAYG) tax withheld being reclassfied from a contractual payable to a statutory payable.

(d) Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The department’s exposures to market risk are insignificant and primarily through interest rate risk and equity price risk, with only minimal exposure to foreign currency risk. Foreign currency risk The department is not exposed to significant foreign currency risk through its payables relating to purchases of supplies from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement. Interest rate risk Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The department does not hold any interest bearing financial instruments that are measured at fair value, and therefore has no exposure to fair value interest rate risk. Cash flow interest rate risk is the risk that future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The department has minimal exposure to cash flow interest rate risks through its cash and deposits that are at floating rate. Management has concluded for cash at bank, it can be left at floating rate without necessarily exposing the department to significant risk. Management monitors movement in interest rates on a regular basis.

120 Department of Justice and Regulation Annual Report 2014–15

Interest rate exposures are insignificant and arise predominantly from assets bearing variable interest rates. The aim is to reduce risk by implementing a duration limits policy and restricting exposure to illiquid, long dated floats. Minimisation of risk on financial liabilities is achieved by undertaking fixed rate finance lease arrangements. The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in Table 21.6. Equity price risk The department is exposed to equity price risk through its managed investment schemes. The department appointed the Victorian Funds Management Corporation to manage its investment portfolio in accordance with the Investment Risk Management Plan approved by the Treasurer. The fund manager on behalf of the department closely monitors performance and manages the equity price risk through diversification of its investment portfolio. Interest rate exposure of financial instruments(i) Table 21.6 ($’000) Interest rate exposure Weighted average effective Carrying Fixed Variable Non-interest 2015 interest rate % amount interest rate interest rate bearing Financial assets Cash and deposits: 2.46% 280,556 231,856 4,978 43,722 Receivables: – Accrued interest 1.67% 3,926 3,926 0 0 – Other receivables 19,787 0 0 19,787 Investment and other contractual financial assets 2.35% 233,564 7,500 0 226,064 Total financial assets 537,833 243,282 4,978 289,573

Financial liabilities Payables: – Amounts payable to government agencies 9,660 0 0 9,660 – Other payables 285,076 0 0 285,076 Borrowings: – Finance lease liabilities 8.41% 200,671 200,671 0 0 Total financial liabilities 495,407 200,671 0 294,736

2014

Financial assets Cash and deposits: 2.99% 250,515 208,297 2,715 39,503 Receivables: – Accrued interest 3.22% 5,627 5,627 0 0 – Other receivables 4,649 0 0 4,649 Investment and other contractual financial assets 3.36% 249,092 100,600 0 148,492 Total financial assets 509,883 314,524 2,715 192,644

Financial liabilities Payables: – Amounts payable to government agencies 9,439 0 0 9,439 – Other payables (ii)(iii) 503,972 0 0 503,972 Borrowings: – Finance lease liabilities (ii) 8.71% 320,998 320,998 0 0 Total financial liabilities(ii) 834,409 320,998 0 513,411

(i) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government, GST input tax credit recoverable, and GST payable). (ii) The 2013–14 comparative has been adjusted to remove balances relating to the office of the Freedom of Information Commissioner (refer to note 1V). (iii) The 2013–14 comparative has been adjusted due to pay as you go (PAYG) tax withheld being reclassfied from a contractual payable to a statutory payable.

121 Note 21. Financial instruments

Taking into account past performance, future expectations, economic forecasts and fund managers’ knowledge and experience of the financial markets, the department believes the following movements are ‘reasonably possible’ over the next 12 months:

Market risk sensitivity Table 21.7 ($’000) Interest rate risk Other price risk Net result Equity Net result Equity Net result Equity Net result Equity Carrying 2015 amount (+)1.0% (+)1.0% (-)1.0% (-)1.0% (+)10% (+)10% (-)10% (-)10% Contractual financial assets: Cash and deposits 4,978 50 50 (50) (50) 0 0 0 0 Managed investment schemes: – Equity trust - Australian dollar 88,372 0 0 0 0 8,837 8,837 (8,837) (8,837) – Equity trust – foreign currency 27,600 0 0 0 0 2,760 2,760 (2,760) (2,760) – Fixed interest trust 89,795 0 0 0 0 8,980 8,980 (8,980) (8,980) – Unlisted property trust 20,297 0 0 0 0 2,030 2,030 (2,030) (2,030) Total impact 231,042 50 50 (50) (50) 22,607 22,607 (22,607) (22,607)

($’000) Interest rate risk Other price risk Net result Equity Net result Equity Net result Equity Net result Equity Carrying 2014 amount (+)1.0% (+)1.0% (-)1.0% (-)1.0% (+)10% (+)10% (-)10% (-)10% Contractual financial assets: Cash and deposits 2,715 27 27 (27) (27) 0 0 0 0 Managed investment schemes: – Equity trust – Australian dollar 86,915 0 0 0 0 8,692 8,692 (8,692) (8,692) – Equity trust – foreign currency 0 0 0 0 0 0 0 0 0 – Fixed interest trust 43,023 0 0 0 0 4,302 4,302 (4,302) (4,302) – Unlisted property trust 18,554 0 0 0 0 1,855 1,855 (1,855) (1,855) Total impact 151,207 27 27 (27) (27) 14,849 14,849 (14,849) (14,849)

122 Department of Justice and Regulation Annual Report 2014–15

(e) Fair value The fair values and net fair values of financial instrument assets and liabilities are determined as follows: • Level 1 – the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices; • Level 2 – the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and • Level 3 – the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs. The department’s managed investment schemes are within level 2 of the fair value hierarchy. The department considers that the carrying amount of financial assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short term nature of the financial instruments and the expectation that they will be paid in full. The following table shows that the fair values of the contractual financial assets and liabilities are the same as the carrying amounts.

Comparison between carrying amount and fair value (i) Table 21.8 ($’000) Carrying amount Fair value Carrying amount Fair value 2015 2015 2014 2014 Contractual financial assets Cash and deposits 280,556 280,556 250,515 250,515 Receivables: – Accrued interest 3,926 3,926 5,627 5,627 – Other receivables 19,787 19,787 4,649 4,649 Investment and other contractual financial 233,564 233,564 249,092 249,092 assets Total contractual financial assets 537,833 537,833 509,883 509,883

Contractual financial liabilities Payables: – Amounts payable to government agencies 9,660 9,660 9,439 9,439 – Other payables (ii)(iii) 285,076 285,076 503,972 503,972 Borrowings: – Finance lease liabilities (ii) 200,671 200,671 320,998 320,998 Total contractual financial liabilities(ii) 495,407 495,407 834,409 834,409 (i) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government, GST input tax credit recoverable, and GST payable). (ii) The 2013–14 comparative has been adjusted to remove balances relating to the office of the Freedom of Information Commissioner (refer to note 1V). (iii) The 2013–14 comparative has been adjusted due to pay as you go (PAYG) tax withheld being reclassfied from a contractual payable to a statutory payable.

123 Note 22. Cash flow information

(a) Reconciliation of cash and cash equivalents For the purposes of the cash flow statement and balance sheet, cash includes cash on hand and in banks and investments in term deposits of less than three months, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows:

2015 2014 $'000 $'000

Cash (i) (1,159) (2,219) Funds held in trust (ii) – cash 49,859 44,437 – term deposits 231,856 208,297 280,556 250,515

The above figures are reconciled to cash at the end of the financial year as shown in the cash flow statement as follows:

Balance as per cash flow statement 280,556 250,515 Term deposits comprise the following: – Victorian Consumer Law Fund 1,000 1,008 – Domestic Builders Fund 14,882 11,150 – National Gambling Research Trust 1,126 1,662 – Residential Tenancies Fund 14,807 22,204 – Victorian Property Fund 200,041 172,273 231,856 208,297

(i) Due to the State of Victoria’s investment policy and government funding arrangements, government departments generally do not hold a large cash reserve in their bank accounts. Cash received by a department from the generation of revenue is generally paid into the State’s bank account, known as the Public Account. Similarly, any departmental expenditure, including those in the form of cheques drawn by the department for the payment of goods and services to its suppliers and creditors are made via the Public Account. The process is such that, the Public Account would remit to the department the cash required for the amount drawn on the cheques. This remittance by the Public Account occurs upon the presentation of the cheques by the department’s suppliers or creditors. The above funding arrangements often result in departments having a shortfall in the cash at bank required for payment of unpresented cheques at the reporting date. At 30 June 2015, cash at bank includes the amount of a shortfall for the payment of unpresented cheques of $0.929 million (2014: $1.942 million). (ii) Funds held in trust are quarantined for use specifically for the purposes under which each trust fund has been established and is not used for operating purposes.

124 Department of Justice and Regulation Annual Report 2014–15

(b) Reconciliation of net result for the period 2015 2014 $'000 $'000 Net result for the period (i) (682) 50,150

Non-cash movements:

Net (gain)/loss on disposal of non-current assets (1,106) (1,730) Depreciation and amortisation of non-current assets (i) 95,778 109,485 Impairment of non-current assets 13,076 0 Resources (received)/provided free of charge or for nominal consideration (8,383) (14,153) Net (gain)/loss from financial instruments (710) (9,760) Net gain/(loss) from revaluation of long service leave liability (i) 2,456 (1,028) Net gain/(loss) from revaluation of other provisions 188 278

Movements in assets and liabilities:

Decrease/(increase) in receivables (55,075) (48,218) Decrease/(increase) in inventories 581 (1,460) Decrease/(increase) in prepayments 1,613 69 Increase/(decrease) in payables (i) 30,498 37,672 Increase/(decrease) in provisions (i) 17,980 14,978

Net cash flows from/(used in) operating activities(i) 96,214 136,283

(i) The 2013–14 comparative has been adjusted (refer to note 1V).

Note 23. Physical asset revaluation surplus

2015 2014 $’000 $’000 Physical asset revaluation surplus: (i) Balance at beginning of financial year 957,633 959,233 Land Balance at beginning of financial year 220,321 220,455 Revaluation increment/(decrement) during the year 0 (134) Transfer to accumulated surplus (ii) (93,427) 0 Balance at end of financial year 126,894 220,321

Buildings Balance at beginning of financial year 737,312 738,778 Impairment losses (5,000) (1,466) Transfer to accumulated surplus (ii) (255,975) 0 Balance at end of financial year 476,337 737,312

Total physical asset revaluation surplus 603,231 957,633 Net change in physical asset revaluation surplus (354,402) (1,600)

(i) The physical asset revaluation surplus arises from the revaluation of land and buildings. (ii) The physical asset revaluation surplus relating to assets transferred to Court Services Victoria has been reclassified to accumulated surplus in 2014–15 (refer to note 7). The resulting net change in the physical asset revaluation surplus of $349.4 million does not affect the Comprehensive Operating Statement, but is reflected in the Statement of Changes in Equity. The remaining net change in the physical asset revaluation surplus of $5 million relating to an impairment loss of a building asset does affect and is reflected in the Comprehensive Operating Statement.

125 Note 24. Summary of compliance with annual parliamentary appropriations and special appropriations

(a) Summary of compliance with annual parliamentary appropriations The following table discloses the details of the various parliamentary appropriations received by the department for the year. In accordance with accrual output-based management procedures ‘provision of outputs’ and ‘additions to net assets’ are disclosed as ‘controlled’ activities of the department. Administered transactions are those that are undertaken on behalf of the State over which the department has no control or discretion.

APPROPRIATION ACT FINANCIAL MANAGEMENT ACT 1994 Annual Advance from Section 35 Total Parliamentary Appropriations Appropriation Treasurer Section 3(2) Section 29 Section 30 Section 32 MOG Advances Authority Applied Variance $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 Controlled Provision of outputs 5,008,233 4,791,642 14,652 10,011 0 0 199,472 255,947 28,015 78,386 129,861 95,595 (48,553) 0 0 0 5,331,680 5,231,581 5,129,248 5,092,933 202,432 138,648 (i) Victorian Law Reform 721 747 0 0 0 0 0 0 0 0 0 0 0 0 0 0 721 747 720 741 1 6 Commission 5,008,954 4,792,389 14,652 10,011 0 0 199,472 255,947 28,015 78,386 129,861 95,595 (48,553) 0 0 0 5,332,401 5,232,328 5,129,968 5,093,674 202,433 138,654

Additions to net assets 739,115 708,894 3,908 335 0 0 935 10,152 (28,015) (78,386) 105,649 117,263 (2,672) 0 0 0 818,920 758,258 554,612 262,827 264,308 495,431 (ii)

Administered Payments made on 54,461 54,461 0 0 0 0 0 0 0 0 0 0 0 0 0 0 54,461 54,461 28,871 28,644 25,590 25,817 (iii) behalf of the State

Total 5,802,530 5,555,744 18,560 10,346 0 0 200,407 266,099 0 0 235,510 212,858 (51,225) 0 0 0 6,205,782 6,045,047 5,713,451 5,385,145 492,331 659,902

126 Department of Justice and Regulation Annual Report 2014–15

APPROPRIATION ACT FINANCIAL MANAGEMENT ACT 1994 Annual Advance from Section 35 Total Parliamentary Appropriations Appropriation Treasurer Section 3(2) Section 29 Section 30 Section 32 MOG Advances Authority Applied Variance $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 Controlled Provision of outputs 5,008,233 4,791,642 14,652 10,011 0 0 199,472 255,947 28,015 78,386 129,861 95,595 (48,553) 0 0 0 5,331,680 5,231,581 5,129,248 5,092,933 202,432 138,648 (i) Victorian Law Reform 721 747 0 0 0 0 0 0 0 0 0 0 0 0 0 0 721 747 720 741 1 6 Commission 5,008,954 4,792,389 14,652 10,011 0 0 199,472 255,947 28,015 78,386 129,861 95,595 (48,553) 0 0 0 5,332,401 5,232,328 5,129,968 5,093,674 202,433 138,654

Additions to net assets 739,115 708,894 3,908 335 0 0 935 10,152 (28,015) (78,386) 105,649 117,263 (2,672) 0 0 0 818,920 758,258 554,612 262,827 264,308 495,431 (ii)

Administered Payments made on 54,461 54,461 0 0 0 0 0 0 0 0 0 0 0 0 0 0 54,461 54,461 28,871 28,644 25,590 25,817 (iii) behalf of the State

Total 5,802,530 5,555,744 18,560 10,346 0 0 200,407 266,099 0 0 235,510 212,858 (51,225) 0 0 0 6,205,782 6,045,047 5,713,451 5,385,145 492,331 659,902

127 Note 24. Summary of compliance with annual parliamentary appropriations and special appropriations

(a) Summary of compliance with annual parliamentary appropriations (continued) (i) Provision of outputs (including Victorian Law Reform Commission) The majority of the $202.433 million variance (2014: $138.654 million) relates to rephasing and carryover of output appropriations from 2014–15 to 2015–16. The primary drivers of the rephasing and carryover are: • Infringement Management and Enforcement Services (IMES) – Rephasing of funding into future years for projects including Peninsula Link Fixed Digital Safety Cameras, National Heavy Vehicle Regulator, the Mobile Camera Replacement program and Reforming collection and enforcement of legal debt in Victoria. • Victorian Racing Industry Fund Grants – Owing to the size and scope of some of the VRIF’s capital works programs, the timing of certain projects may extend beyond the financial year in which they are approved or initially anticipated to occur. While funds are committed, the precise timing of claims is dependant upon receipt of appropriate documentation indicating project stages have been completed in line with Ministerial approval, payment is then facilitated. Funding has been rephased into future years to align with the expected payment obligations. • IT Refresh – Funding was required to be recashflowed to future years for the implementation of the department’s IT Transformation/Refresh program. This program was delayed into 2015–16 due to uncertainty surrounding the future of Cenitex. • Corrections – Funding originally provided for the expansion of prison capacity, predominantly at the new Ararat prison, was not required in 2014–15 due to construction delays. This funding was redirected in the 2015–16 Budget towards Enhancing Community Correctional Services to meet demand. (ii) Additions to net asset base (ATNAB) The majority of the $264.308 million variance (2014: $495.431 million) relates to rephasing and carryover of ATNAB appropriation into 2015–16. The primary drivers of the rephasing and carryover are: • Barwon High Security Unit and Yard Upgrade (40 beds) – Commencement of the construction was delayed due to an Environment Protection Biodiversity Conservation referral to the Department of the Environment. The project has progressed through a procurement process and a contractor has been appointed for the construction of the facility. The new cash flows reflect the information provided by the contractor to align the building program to the reflected time frames. The project is on track for delivery in June 2016. • Additional Beds and Recommissioning Beds (DPFC – 88 beds) – The original cash flow was submitted based on comparable projects and projected timelines. The project is now progressing through design stage and has been reviewed by a cost consultant. The 88 beds remain on schedule to be delivered in June 2016, with ancillary capital works, with respect to the gatehouse and other supporting infrastructure, to be completed post this date. Project cashflows have been re-aligned to match the delivery schedule. • Marngoneet Correctional Centre Annex (300 beds) – Delays have been experienced in the scoping and procurement phase of this project. Funding has been re-cashflowed to future years. The project has now progressed through a competitive tender/procurement process and a contractor appointed for the construction of the facility. The new cash flows reflect the information provided by the contractor to align the building program to the project timeframes. The project is currently on track for delivery in 2016. • Critical Infrastructure and Services – Supporting Recent Prison Expansion – Funding in 2014–15 not required as part of previous initiatives to expand prison capacity was redirected to this initiative as part of the 2015–16 budget. (iii) Administered – Payments on behalf of state The variance of $25.590 million (2014: $25.817 million) is due to an over estimate of amounts paid/payable to other states and jurisdictions for their share of Tattersall’s taxation which is collected in Victoria.

128 Department of Justice and Regulation Annual Report 2014–15

(b) Summary of compliance with special appropriations Authority Purpose Appropriations applied 2015 2014 $’000 $’000 1 Constitution Act 1975 (No. 8750/1975), s.82 (7) Remuneration to Judges of the Supreme Court of 0 18,807 Victoria and the Chief Justice 2 Constitution Act 1975 (No. 8750/1975), s.82 (7) Remuneration to the President and Judges of the Court 0 6,513 of Appeal Division of the Supreme Court of Victoria 3 County Court Act 1958 Remuneration to Judges of the County Court of Victoria 0 27,248 (No. 6230/1958) s.10 (7) 4 Victorian Civil and Administrative Tribunal Act Remuneration to non-judicial members 0 6,725 1998 (No. 53/1998), s.17 5 Victims of Crime Assistance Act 1996 (No. Operating costs of the Victims of Crime Assistance 0 2,880 81/1996), s.69 Tribunal 6 Electoral Act 2002 (No. 23/2002), s.181 Cost incurred by the Victorian Electoral Commission 46,395 23,062 7 Magistrates’ Court Act 1989 (No. 51/1989), Remuneration to Magistrates of the Magistrates’ Court 0 45,795 sch.1 Pt 1 cl.10 of Victoria 8 Juries Act 2000 (No. 53/2000), s.59 Compensation to jurors from the WorkCover Authority 0 20 Fund under the Accident Compensation Act 1985 9 VicSES Volunteer Work Comp (Victoria State Payments to SES volunteers for work related injuries 351 150 Emergency Service Act 2005 (Act No. 51/2005), under 2005 Act s.52) 10 Volunteer Work Comp (Emergency Management Payments to volunteers for work related injuries under 183 322 Act 1986 (Act No. 30/1986), s.32) 1986 Act 11 Corrections Act 1986 (No. 117/1986), s.104ZW Compensation to CCS from the WorkCover Authority 105 58 Fund under the Accident Compensation Act 1985 12 Financial Management Act 1994 (No. 18/1994), Payment of a Commonwealth grant to Victoria Police 2,137 1,963 s.10 under Section 10 of the Financial Management Act 1994 Total 49,171 133,543 13 Electoral Act 2002 (No. 23/2002), s.181 Capital component of remuneration to Victorian 0 2,330 Electoral Commission 14 Constitution Act 1975 (No. 8750/1975), s.82 (7) Capital component of remuneration to Judges of the 0 365 Supreme Court of Victoria. 15 Constitution Act 1975 (No. 8750/1975), s.82 (7) Capital component of remuneration to Judges of the 0 98 Court of Appeals Division of the Supreme Court of Victoria 16 County Court Act 1958 Capital component of remuneration to Judges of the 0 560 (No. 6230/1958) s.10 (7) County Court of Victoria 17 Magistrates’ Court Act 1989 (No. 51/1989), Capital component of remuneration to Magistrates of 0 1,066 sch.1 Pt 1 cl.10 the Magistrates’ Court of Victoria 0 4,419 Administered Special Appropriations Applied 18 Crown Proceedings Act 1958 Payments due for Crown Proceedings in the Supreme 0 546,113 (No. 6232/1958), s.26 Court of Victoria 19 Victims of Crime Assistance Act 1996 Costs incurred by the Tribunal and payments to victims 0 39,122 (No. 81/1996), s.69 of crime 20 Melbourne City Link Act 1995 Payments to City Link 2,609 2,584 (No. 107/1995), s.14 (4) 21 EastLink Project Act 2004 Payments to East Link 1,500 1,357 (No 39/2004), s.26 22 Electoral Act 2002 (No. 23/2002), s.215 Electoral entitlements 8,913 15 Total 13,022 589,191

129 Note 25. Ex-gratia expenses

2015 2014 $’000 $’000 Ex-gratia expenses Compensation for economic loss 1 0 Total ex-gratia expenses (i) 1 0 (i) Ex-gratia expenses are also presented under other supplies and services in note 5(e).

Note 26. Annotated income agreements

The following is a listing of Annotated Revenue Retention Agreements approved by the Treasurer under Section 29 of the Financial Management Act 1994:

2015 2014 $'000 $'000

User charges, or sales of goods and services

Application fees collected with VCAT 0 5,746 Birth, Deaths and Marriages 5,405 5,485 Civil Marriage Services (Magistrates Court) 0 35 Court Fees 0 49,680 Dispute Settlement Services Victoria 202 240 Infringement Court Services – Filing Fees 31,761 31,919 National Emergency Warning System 12,599 6,310 Office of the Emergency Services Commissioner 20,996 18,827 OPA Public Information and Education Programs 17 66 Prison Industries 11,456 10,841 Probate Notification Fees 0 899 Retailing of Court Data (Magistrates Court) 0 711 Sale of Business Name Information 89 105 Secretariat for Council of Legal Education and Board of Examiners 1,349 1,144 Solicitor Fees 36,682 40,678 State Control Centre Facility Charge 3,298 4,132 Victorian Workcover Authority (Magistrates Court) 0 7,954 VCGLR Licence and Permit Application Investigations 743 788 VEOHRC Community Education Programs 508 469 Victorian Institute of Forensic Medicine Services 9,896 8,607 Victoria Police Information, Security, Events and Training Services 11,154 11,053 146,155 205,689

Asset sales

Victoria Police asset sales proceeds 935 10,152 935 10,152

Commonwealth specific purpose payments

Emergency Management Council 7,078 4,891 National Coronial Information System 441 424 Victoria Legal Aid 45,798 44,943 53,317 50,258

Total annotated income agreements 200,407 266,099

130 Department of Justice and Regulation Annual Report 2014–15

Note 27. Trust account balances

(a) Trust account balances relating to trust accounts controlled and/or administered by the department: Cash and cash equivalents and investments Opening Total Total Closing balance receipts payments balance as as at at 30 June 2015 1 July 2014 2015 $’000 $’000 $’000 $’000

Controlled Trusts

Victorian Consumer Law Fund 1,091 43 0 1,134 - Australian Consumer Law and Fair Trading Act 2012 (No. 21/2012), s.134 - Holds monies paid into and out of the fund under s.134 and Part 6.2 respectively of this Act. Correctional Enterprises Working Account 7,145 11,858 11,509 7,494 - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for Correctional Enterprises Crime Prevention and Victims’ Aid Fund 41 0 0 41 - Confiscation Act 1997 (No. 108/1997), s.134 - Holds monies paid into and out of the fund under s.134 of this Act. Domestic Builders Fund 13,245 12,940 7,650 18,535 - Domestic Building Contracts Act 1995 (No 91/1995), s.124 - Holds monies paid into and out of the fund under s.124 of this Act. Motor Car Traders’ Guarantee Fund 991 4,314 3,505 1,800 - Motor Car Traders Act 1986 (No. 104/1986), s.74 - Holds monies paid into and out of the fund under s.74 of this Act. National Gambling Research Trust 2,184 36 1,017 1,203 - Memorandum of Understanding between the State and Federal Governments. - Funds a multi jurisdictional group devoted to national gambling research Residential Tenancies Fund 41,290 25,668 27,861 39,097 - Residential Tenancies Act 1997 (No. 109/1997), s.491 - Holds monies paid into and out of the fund under s.492 and s.493 respectively of this Act. Sex Work Regulation Fund 488 1,549 1,392 645 - Sex Work Act 1994 (No. 102/1994), s.66 - Holds monies paid into and out of the fund under s.66 of this Act. Treasury Trust Fund 28,783 9,322 11,794 26,311 - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for the department Vehicle Lease Trust Account 0 1,205 1,205 0 - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for the sale of VicFleet motor vehicles Victorian Property Fund 406,568 55,180 42,731 419,017 - Estate Agents Act 1980 (No. 9428/1980), s.72 - Holds monies paid into and out of the fund under s.73 and s.75 respectively of this Act. Total Controlled Trusts 501,826 122,115 108,664 515,277

131 Note 27. Trust account balances

Opening Closing balance balance as as at Total Total at 30 June 2015 1 July 2014 receipts payments 2015 $’000 $’000 $’000 $’000

Administered Trusts

Asset Confiscation Office Retained Monies Trust Account 15,935 6,096 6,336 15,695 - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for the Asset Confiscation Office Courtlink Trust Account 1,102 0 1,102 0 - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for the Magistrates Courts’ court orders Departmental Suspense Account 4,345 472 805 4,012 - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for the department Public Service Commuter Club (899) 2,381 1,688 (206) - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for the Public Service Commuter Club Revenue Suspense 16 0 0 16 - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for the allocation of revenue Sundry Deposits 28 1 0 29 - Financial Management Act 1994 (No. 18/1994), Part 4 - Holds monies in term deposits for the Victorian Government Solicitors Office Treasury Trust Fund 8,383 1,092 1,812 7,663 - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for the department Security Account 22 0 22 0 - Financial Management Act 1994 (No. 18/1994), Part 4 - Holds monies as security for good behaviour Victorian Government Solicitor’s Trust Account 15,041 75,018 71,889 18,170 - Financial Management Act 1994 (No. 18/1994), Part 4 - Working account for the Victorian Government Solicitors Office Total Administered Trusts 43,973 85,060 83,654 45,379

132 Department of Justice and Regulation Annual Report 2014–15

Opening Closing balance balance as as at Total Total at 30 June 2014 1 July 2013 receipts(i) payments(i) 2014 $’000 $’000 $’000 $’000

Controlled Trusts Victorian Consumer Law Fund, Act No. 21/2012, s.134 597 743 249 1,091 Correctional Enterprises Working Account 5,479 11,609 9,943 7,145 Crime Prevention and Victims' Aid Fund, Act No. 108/1997, s.134 41 0 0 41 Domestic Builders Fund, Act No. 91/1995, s.124 13,711 9,500 9,966 13,245 Motor Car Traders' Guarantee Fund, Act No. 104/1986, s.74 603 4,193 3,805 991 National Gambling Research Trust 3,031 571 1,418 2,184 Residential Tenancies Fund, Act No. 109/1997, s.491 36,451 29,057 24,218 41,290 Sex Work Regulation Fund, Act No. 102/1994, s.66 328 1,765 1,605 488 Treasury Trust Fund 25,474 15,095 11,786 28,783 Vehicle Lease Trust Account 0 1,942 1,942 0 Victorian Property Fund, Act No. 9428/1980, s.72 376,961 53,628 24,021 406,568 Total Controlled Trusts 462,676 128,103 88,953 501,826

Administered Trusts Asset Confiscation Office Retained Monies Trust Account 12,953 9,846 6,864 15,935 Courtlink Trust Account 1,098 36,225 36,221 1,102 Departmental Suspense Account 6,292 860 2,807 4,345 Public Service Commuter Club (725) 2,846 3,020 (899) Revenue Suspense (38) 54 0 16 Sundry Deposits 27 1 0 28 Treasury Trust Fund 6,773 1,639 29 8,383 Security Account 5 20 3 22 Victorian Government Solicitor's Trust Account 18,445 90,789 94,193 15,041 Total Administered Trusts 44,830 142,280 143,137 43,973

(i) The 2013–14 comparative figures for total receipts and total payments have been adjusted due to a change in the method of calculating the figures.

133 Note 27. Trust account balances

(b) Third party funds under management The third party funds under management are funds held in trust for certain clients. They are not used for government purposes and therefore are not included in the department’s financial statements. Any earnings on the funds held pending distribution are also applied to the trust funds under management as appropriate.

2015 2014 $'000 $'000 Courts

Bail Monies (i) 0 2,601 Courts Infant Investment Accounts (i) 0 25 Crimes Compensation Infant Investment Accounts (i) 0 1,861 Funds under management by the Senior Master of the Supreme Court (Funds in Court) 0 1,479,597 0 1,484,084 (i) Included under Court Services output group in note 3 Administered Items, which transferred to Court Services Victoria on 1 July 2014.

2015 2014 $’000 $’000 Non-government transactions

Prisoner Private Monies Account (ii)

Cash 5,117 4,889 Amounts owing to prisoners (5,117) (4,889) 0 0 Prisoner Compensation Quarantine Account (ii)

Cash 260 229 Amounts owing to prisoners (260) (229) 0 0 Non-government fines(iii)

Receivables 250,730 259,570 less provision for doubtful debts (231,240) (237,303) 19,490 22,267 Amounts owing to non-government entities (19,490) (22,267) 0 0 (ii) Included under Enforcing and Managing Correctional Orders output group in note 3 Administered Items. (iii) Note disclosure only - not included in the balance sheet or note 3 Administered Items.

134 Department of Justice and Regulation Annual Report 2014–15

Note 28. Responsible persons

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

Names The persons who held the positions of Ministers and Accountable Officers in the department are as follows:

Attorney-General The Hon. Robert Clark, MP 1 July 2014 to 3 December 2014 The Hon. Martin Pakula, MP 4 December 2014 to 30 June 2015 Acting Attorney-General The Hon. Jane Garrett, MP 24 December 2014 to 6 January 2015 Minister for Consumer Affairs The Hon. Heidi Victoria, MP 1 July 2014 to 3 December 2014 Minister for Liquor and Gaming Regulation The Hon. Edward O’Donohue, MLC 1 July 2014 to 3 December 2014 Minister for Consumer Affairs, Gaming & Liquor The Hon. Jane Garrett, MP 4 December 2014 to 30 June 2015 Regulation

Acting Minister for Consumer Affairs, Gaming & The Hon. Wade Noonan, MP 3 April 2015 to 13 April 2015 Liquor Regulation 26 June 2015 to 30 June 2015 Minister for Corrections The Hon. Edward O’Donohue, MLC 1 July 2014 to 3 December 2014 The Hon. Wade Noonan, MP 4 December 2014 to 30 June 2015 Acting Minister for Corrections The Hon. Jane Garrett, MP 9 January 2015 to 18 January 2015 Minister for Police and Emergency Services The Hon. Kim Wells, MP 1 July 2014 to 3 December 2014 Minister for Police The Hon. Wade Noonan, MP 4 December 2014 to 30 June 2015 Minister for Emergency Services The Hon. Jane Garrett, MP 4 December 2014 to 30 June 2015 Acting Minister for Police The Hon. Jane Garrett, MP 9 January 2015 to 18 January 2015 Acting Minister for Emergency Services The Hon. Wade Noonan, MP 3 April 2015 to 13 April 2015 26 June 2015 to 30 June 2015 Minister for Racing The Hon. Denis Napthine, MP 1 July 2014 to 3 December 2014 The Hon. Martin Pakula, MP 4 December 2014 to 30 June 2015 Acting Minister for Racing The Hon. Jane Garrett, MP 24 December 2014 to 6 January 2015 Minister for Bushfire Response The Hon. Kim Wells, MP 1 July 2014 to 3 December 2014 *This Ministerial position ceased to exist on 4 December 2014. Minister for Crime Prevention The Hon. Edward O’Donohue, MLC 1 July 2014 to 3 December 2014 *This Ministerial position ceased to exist on 4 December 2014. Secretary Greg Wilson 1 July 2014 to 30 June 2015 Acting Secretary Julia Griffith 7 July 2014 to 13 July 2014 Claire Noone 22 January 2015 to 8 February 2015

Remuneration Remuneration received or receivable by the Accountable Officer (Secretary) in connection with the management of the department during the reporting period was in the range: $470,000 – $479,999 ($460,000 – $469,999 in 2013–14) Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.

135 Note 29. Remuneration of executives and payments to other personnel

(a) Remuneration of executives The number of executive officers from the department, other than Ministers and the Accountable Officer, whose total remuneration exceeded $100,000 during the reporting period, are shown in their relevant income bands in the first two columns of the table below. The total remuneration of executive officers includes base remuneration, which is shown in the third and fourth columns, plus bonus payments, long service leave payments, redundancy payments and retirement benefits. The total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period. The variation from last year’s base and total remuneration figures is primarily due to the executive officer remuneration review, which was payable from 1 July 2014. Furthermore, a number of executive officers received performance bonus outcomes in 2014–15 in relation to the 2013–14 financial year.

Income band Total remuneration Base remuneration 2015 2014 2015 2014 No. No. No. No. $100,000-109,999 0 0 2 0 $110,000-119,999 1 1 0 1 $120,000-129,999 2 1 2 2 $130,000-139,999 1 3 2 4 $140,000-149,999 1 2 3 0 $150,000-159,999 3 0 2 0 $160,000-169,999 4 1 2 4 $170,000-179,999 4 3 7 4 $180,000-189,999 3 4 2 7 $190,000-199,999 3 4 4 3 $200,000-209,999 3 7 2 7 $210,000-219,999 5 6 9 4 $220,000-229,999 8 1 7 5 $230,000-239,999 3 7 1 2 $240,000-249,999 2 3 3 4 $250,000-259,999 3 0 2 0 $260,000-269,999 3 3 3 1 $270,000-279,999 2 2 0 2 $280,000-289,999 1 0 1 1 $290,000-299,999 0 1 2 0 $300,000-309,999 1 2 0 0 $310,000-319,999 2 1 0 1 $320,000-329,999 1 1 1 1 $380,000-389,999 1 1 0 0

Total number of executives 57 54 57 53 Total annualised employee equivalent (AEE)(i) 53.2 49.7 53.2 49.6 Total amount $12,312,713 $11,365,746 $11,560,593 $10,431,224 (i) Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over 52 weeks for a reporting period. The above table includes 6 executives from the Victorian Government Solicitor’s Office. The 2013–14 comparatives have been adjusted to reflect the removal of data relating to the Victorian Law Reform Commission (1 executive officer) and the Sentencing Advisory Council (1 executive officer), both of which report this data in their respective annual reports. This maintains parity with data presented in the 2014–15 financial year. The reconciliation between the above table and the actual number of executive officers employed at 30 June 2015 is included in the supplementary information to the annual report in Appendix 6 Reconciliation of executive numbers.

136 Department of Justice and Regulation Annual Report 2014–15

In 2014–15 there were 9 executive officers (2013–14:11) whose total remuneration paid by the department was less than $100,000 for the year, and 9 executive officers (2013–14:12) whose base remuneration paid by the department was less than $100,000 for the year. Related parties Related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report. (b) Payments to other personnel (i.e. contractors with significant management responsibilities) The following disclosures are made in relation to other personnel of the department, i.e. contractors charged with significant management responsibilities. Payments were made to a contractor with significant management responsibilities in the 2013–14 financial year, as disclosed in the below table. This contractor was responsible for planning, directing or controlling, directly or indirectly, the department’s activities. This contractor did not work for the department in the 2014–15 financial year and therefore the balances for the year are zero.

Expense band 2015 2014 No. No. $450,000-459,999 0 1

Total expenses (exclusive of GST) $0 $455,400

Note 30. Remuneration of auditors 2015 2014 $’000 $’000 Victorian Auditor-General’s Office

Audit of the financial statements 315 416

315 416

137 Note 31. Glossary of terms and style convention

Amortisation Amortisation is the expense which results from the consumption, extraction or use over time of a non-produced physical or intangible asset. This expense is classified as an other economic flow. Borrowings Borrowings refers to interest-bearing liabilities mainly raised from public borrowings raised through the Treasury Corporation of Victoria, finance leases and other interest-bearing arrangements. Borrowings also include non-interest-bearing advances from government that are acquired for policy purposes. Capital asset charge The capital asset charge represents the estimated opportunity cost of capital invested in the non-financial physical assets used in the provision of outputs. Commitments Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources. Comprehensive result The net result of all items of income and expense recognised for the period. It is the aggregate of operating results and other comprehensive income. Current grants Amounts payable or receivable for current purposes for which no economic benefits of equal value are receivable or payable in return. Depreciation Depreciation is an expense that arises from the consumption through wear or time of a produced physical or intangible asset. This expense is classified as a ‘transaction’ and so reduces the ‘net result from transactions’. Effective interest method The effective interest method is used to calculate the amortised cost of a financial asset or liability and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument, or, where appropriate, a shorter period. Employee benefits expenses Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments and superannuation contributions. Ex-gratia expenses Ex-gratia expenses mean the voluntary payment of money or other non-monetary benefit (e.g. a write off) that is not made either to acquire goods, services or other benefits for the entity or to meet a legal liability, or to settle or resolve a possible legal liability or claim against the entity. Financial asset A financial asset is any asset that is: (a) cash; (b) an equity instrument of another entity; (c) a contractual or statutory right: - to receive cash or another financial asset from another entity; or - to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will or may be settled in the entity’s own equity instruments and is: - a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or - a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.

138 Department of Justice and Regulation Annual Report 2014–15

Financial instrument A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a result of statutory requirements imposed by governments) are not financial instruments. Financial liability A financial liability is any liability that is: (a) a contractual or statutory obligation: - to deliver cash or another financial asset to another entity; or - to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will or may be settled in the entity’s own equity instruments and is: - a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or - a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments. Financial statements A complete set of financial statements comprises: (a) A statement of financial position (balance sheet) as at the end of the period; (b) A statement of profit or loss and other comprehensive income (comprehensive operating statement) for the period; (c) A statement of changes in equity for the period; (d) A statement of cash flows (cash flow statement) for the period; (e) Notes, comprising a summary of significant accounting policies and other explanatory information; (f) Comparative information in respect of the preceding period as specified in paragraph 38 of AASB 101Presentation of Financial Statements; and (g) A statement of financial position (balance sheet) as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements in accordance with paragraph 41 of AASB 101. Grants and other transfers Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can be either operating or capital in nature. While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non-reciprocal transfers. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes. Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use. Intangible produced assets Refer to produced assets in this glossary. Intangible non-produced assets Refer to non-produced assets in this glossary. Interest expense Costs incurred in connection with the borrowing of funds. Interest expense includes the interest component of finance lease repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time.

139 Note 31. Glossary of terms and style convention

Interest income Interest income includes interest received on bank term deposits, interest from investments, and other interest received. Net result Net result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other economic flows - other comprehensive income’. Net result from transactions/net operating balance Net result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies. Net worth Assets less liabilities, which is an economic measure of wealth. Non-financial assets Non-financial assets are all assets that are not ‘financial assets’. It includes inventories, land, buildings, plant and equipment, cultural and heritage assets and intangible assets. Non-produced assets Non-produced assets are assets needed for production that have not themselves been produced. They include land, subsoil assets, and certain intangible assets. Non-produced intangibles are intangible assets needed for production that have not themselves been produced. They include constructs of society such as patents. Other economic flows included in net result Other economic flows included in net result are changes in the volume or value of an asset or liability that do not result from transactions. It includes: (a) gains and losses from disposals, revaluations and impairments of non-financial physical and intangible assets (b) fair value changes of financial instruments. Other economic flows – other comprehensive income Other economic flows – other comprehensive income comprises items (including reclassification adjustments) that are not recognised in net result as required or permitted by other Australian Accounting Standards. The components of other economic flows – other comprehensive income include: (a) Changes in physical asset revaluation surplus (b) Gains and losses on remeasuring available-for-sale financial assets. Payables Includes short and long term trade debt and accounts payable, grants and interest payable. Produced assets Produced assets include buildings, plant and equipment, inventories, cultivated assets and certain intangible assets. Intangible produced assets may include computer software, and research and development costs (which does not include the start up costs associated with capital projects). Receivables Includes amounts owing from government through appropriation receivable, short and long term trade credit and accounts receivable, accrued investment income, grants, taxes and interest receivable. Sales of goods and services Refers to income from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services, and work done as an agent for private enterprises. User charges includes sale of goods and services income.

140 Department of Justice and Regulation Annual Report 2014–15

Supplies and services Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the department. Taxation income Taxation income represents income received from the State’s taxpayers and includes: - gambling taxes levied mainly on private lotteries, electronic gaming machines, casino operations and racing - other taxes, including licence fees. Transactions Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the government. Style conventions Figures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components reflect rounding. Percentage variations in all tables are based on the underlying unrounded amounts. The notation used in the tables is as follows:

(xxx.x) negative numbers 201x year period 201x–1x year period

The financial statements and notes are presented based on the illustration for a government department in the 2014–15 Model Report for Victorian Government Departments. The presentation of other disclosures is generally consistent with the other disclosures made in earlier publications of the department’s annual reports.

141 1: Disclosure index

The annual report of the Department of Justice and Regulation is prepared in accordance with all Victorian legislation and pronouncements. This index has been prepared to facilitate identification of the department’s compliance with statutory disclosure requirements. Legislation Requirement Page

Ministerial Directions Report of Operations—Financial Reporting Directions (FRD) guidance Charter and purpose FRD 22F Manner of establishment and the relevant ministers ...... 4 FRD 22F Objectives, functions, powers and duties...... 6 FRD 22F Nature and range of services provided...... 6 Management and structure FRD 22F Organisational structure...... 8 Financial and other information FRD 8C Budget portfolio outcomes ...... 144 FRD 10 Disclosure index ...... 142 FRD 12A Disclosure of major contracts ...... 178 FRD 15B Executive officer disclosures ...... 162 FRD 22D, SD 4.2(k) Operational and budgetary objectives and performance against objectives...... 12 FRD 22F Employment and conduct principles ...... 159 FRD 22F Occupational health and safety policy...... 166 FRD 22F Summary of the financial results for the year...... 52 FRD 22F Significant changes in financial position during the year...... 52 FRD 22F Major changes or factors affecting performance ...... 12 FRD 22F Application and operation of Freedom of Information Act 1982...... 182 FRD 22F Compliance with building and maintenance provisions of Building Act 1993 ...... 181 FRD 22F Statement on National Competition Policy ...... 181 FRD 22F Application and operation of the Protected Disclosure Act 2012...... 182 FRD 22F Application and operation of the Carers Recognition Act 2012 ...... 169 FRD 22F Details of consultancies over $10,000 ...... 178 FRD 22F Details of consultancies under $10,000 ...... 178 FRD 22F Statement of availability of other information ...... 193 FRD 24C Reporting of office-based environmental impacts...... 171 FRD 25B Victorian Industry Participation Policy disclosures ...... 180 FRD 29A Workforce data disclosures ...... 159 SD 4.5.5 Risk management compliance attestation ...... 180 SD 4.5.5.1 Ministerial Standing Direction 4.5.5.1 compliance attestation ...... 180 SD 4.2(g) Specific Information requirements ...... 12 SD 4.2(j) Sign-off requirements ...... 4 Appendices

142 Department of Justice and Regulation Annual Report 2014–15

Financial statements Financial statements required under Part 7 of the Financial Management Act 1994 (FMA) SD 4.2(a) Statement of changes in equity ...... 62 SD 4.2(b) Operating statement ...... 60 SD 4.2(b) Balance sheet ...... 61 SD 4.2(b) Cashflow statement ...... 63 Other requirements under Standing Directions (SD) 4.2 SD 4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements ...... 57 SD 4.2(c) Compliance with Ministerial Directions ...... 57 SD 4.2(d) Rounding of amounts ...... 67 SD 4.2(c) Accountable officer’s declaration ...... 57 SD 4.2(f) Compliance with Model Financial Report ...... 141 Other disclosures as required by FRDs in notes to the financial statements FRD 9A Departmental disclosure of administered assets and liabilities ...... 88 FRD 11A Disclosure of ex-gratia payments ...... 130 FRD 13 Disclosure of parliamentary appropriations ...... 126 FRD 21B Disclosures of Responsible Persons, executive officers and other personnel (contractors with significant management responsibilities) in theFinancial Report ...... 135 FRD 102 Inventories ...... 99 FRD 103E Non-current physical assets ...... 101 FRD 106 Impairment of assets ...... 73 FRD 109 Intangible assets ...... 107 FRD 110 Cashflow statements ...... 63 FRD 112D Defined benefit superannuation obligations...... 112 FRD 114A Financial Instruments—general government entities and public non-financial corporations...... 116 FRD 119A Transfers through contributed capital ...... 93 Legislation Freedom of Information Act 1982...... 182 Building Act 1993 ...... 181 Protected Disclosure Act 2001...... 182 Carers Recognition Act 2012 ...... 169 Victorian Industry Participation Policy Act 2003...... 180 Financial Management Act 1994...... 57

143 2: Budget portfolio outcomes

The budget portfolio outcomes provide comparisons between the actual financial statements of all general government sector entities within the portfolio and the forecast financial information (initial budget estimates) published in Budget Paper No.5 Statement of Finances (BP5). The budget portfolio outcomes comprise the comprehensive operating statements, balance sheets, cash flow statements, statements of changes in equity, and administered item statements. The budget portfolio outcomes have been prepared on a consolidated basis and include all general government sector entities within the portfolio. Financial transactions and balances are classified into either controlled or administered categories consistent with the published statements in BP5. The following budget portfolio outcomes statements are not subject to audit by the Victorian Auditor-General’s Office and are not prepared on the same basis as the department’s financial statements as these include the financial information of the following entities: • Department of Justice and Regulation • Independent Broad-based Anti-corruption Commission (transferred to Department of Premier and Cabinet on 1 January 2015) • Judicial College of Victoria (transferred to Court Services Victoria on 1 July 2014) • Office of Public Prosecutions • Office of Victorian Privacy Commissioner (ceased operations on 16 September 2014) • Office of Commissioner for Privacy and Data Protection (commenced 17 September 2014 and transferred to Department of Premier and Cabinet on 1 January 2015) • Residential Tenancies Bond Authority • Sentencing Advisory Council • Victoria Police • Victoria State Emergency Service Authority • Victorian Commission for Gambling and Liquor Regulation • Victorian Electoral Commission (transferred to Department of Premier and Cabinet on 1 January 2015) • Victorian Equal Opportunity and Human Rights Commission • Victorian Inspectorate (transferred to Department of Premier and Cabinet on 1 January 2015) • Victorian Institute of Forensic Medicine • Victorian Law Reform Commission • Victorian Responsible Gambling Foundation Appendices

144 Department of Justice and Regulation Annual Report 2014–15

Comprehensive operating statement for the year ended 30 June 2015 Department of Justice and Regulation

2014–15 2014–15 Actual Published Budget Variation (a) ($ million) ($ million) % Income from transactions Output appropriations 5,130.0 5,233.8 (2.0) Special appropriations 49.2 73.8 (33.3) Interest 62.2 67.3 (7.6) Sale of goods and services 18.8 16.6 13.3 Grants 58.3 48.7 19.7 Fair value of assets and services received free of charge or for nominal consideration 8.7 0.0 — Other income 37.3 11.5 224.3 Total income from transactions 5,364.5 5,451.8 (1.6) Expenses from transactions Employee benefits 2,596.0 2,555.1 1.6 Depreciation 185.2 167.3 10.7 Interest expense 23.8 28.8 (17.4) Grants and other transfers 1,086.4 1,055.4 2.9 Capital asset charge 196.0 196.1 0.1 Other operating expenses 1,271.0 1,461.8 (13.1) Total expenses from transactions 5,358.4 5,464.5 (1.9) Net result from transactions (net operating balance) 6.1 (12.7) (148.0) Other economic flows included in net result Net gain/(loss) on non-financial assets (4.4) 10.7 (141.1) Net gain/(loss) on financial instruments and statutory receivables/payables (1.3) 0.0 — Other gains/(losses) from economic flows (9.0) 0.0 — Total other economic flows included in net result (14.7) 10.7 (237.4) Net result (8.6) (2.0) 330.0 Other economic flows – other comprehensive income Asset revaluation reserve (5.0) 0.0 — Other 2.1 0.0 — Total other economic flows – other comprehensive income (2.9) 0.0 — Comprehensive result (11.5) (2.0) 475.0

(a) Variation between 2014–15 Actual and 2014–15 Published Budget. Note: The 2014-15 Published Budget excluded the courts, but included those entities that transferred to the Department of Premier and Cabinet on 1 January 2015.

145 2: Budget portfolio outcomes

Balance sheet as at 30 June 2015 Department of Justice and Regulation

2014–15 2014–15 Actual Published Budget Variation (a) ($ million) ($ million) % Assets Financial assets Cash and deposits 362.9 295.5 22.8 Receivables 877.7 750.5 16.9 Other financial assets 248.6 280.2 (11.3) Total financial assets 1,489.2 1,326.3 12.3 Non-financial assets Inventories 13.7 15.4 (11.0) Non-financial assets classified as held for sale, including disposal group assets 11.3 9.2 22.8 Property, plant and equipment 3,761.1 3,821.2 (1.6) Intangible assets 40.9 84.9 (51.8) Other 4.8 9.9 (51.5) Total non-financial assets 3,831.8 3,940.6 (2.8) Total assets 5,321.0 5,266.9 1.0 Liabilities Payables 409.2 241.8 69.2 Borrowings 278.8 235.7 18.3 Provisions 689.5 662.3 4.1 Total liabilities 1,377.5 1,139.8 20.9 Net assets 3,943.5 4,127.2 (4.5) Equity Accumulated surplus/(deficit) 1,101.7 674.3 63.4 Reserves 1,181.5 1,540.0 (23.3) Contributed capital 1,660.3 1,912.9 (13.2) Total equity 3,943.5 4,127.2 (4.5)

(a) Variation between 2014–15 Actual and 2014–15 Published Budget. Note: The 2014-15 Published Budget excluded the courts, but included those entities that transferred to the Department of Premier and Cabinet on 1 January 2015.

146 Department of Justice and Regulation Annual Report 2014–15

Statement of changes in equity for the year ended 30 June 2015 Department of Justice and Regulation

2014–15 2014–15 Actual Published Budget Variation (a) ($ million) ($ million) % Accumulated surplus/(deficit)

Opening balance 757.4 676.2 12.2

Comprehensive result (11.5) (2.0) 475.0

Transfer from revaluation surplus to accumulated surplus 351.8 0.0 —

Other 4.0 0.0 —

Closing balance 1,101.7 674.3 63.4

Revaluation surplus

Opening balance 1,538.3 1,540.0 (0.1)

Transfer from revaluation surplus to accumulated surplus (351.8) 0.0 —

Other (5.0) 0.0 —

Closing balance 1,181.5 1,540.0 (23.3)

Contributions by owners

Opening balance 1,799.6 1,892.3 (4.9)

Transactions with owners in their capacity as owners (139.3) 20.6 (776.2)

Closing balance 1,660.3 1,912.9 (13.2)

Total equity 3,943.5 4,127.2 (4.5)

(a) Variation between 2014–15 Actual and 2014–15 Published Budget Note: The 2014-15 Published Budget excluded the courts, but included those entities that transferred to the Department of Premier and Cabinet on 1 January 2015.

147 2: Budget portfolio outcomes

Cash flow statement for the year ended 30 June 2015 Department of Justice and Regulation

2014–15 2014–15 Actual Published Budget Variation (a) ($ million) ($ million) % Cash flows from operating activities Receipts Receipts from Government 4,870.3 5,311.5 (8.3) Receipts from other entities 62.9 58.6 7.3 Interest received 64.2 66.7 (3.7) Other receipts 56.4 15.1 273.5 Total receipts 5,053.8 5,451.9 (7.3) Payments Payments of grants and other transfers (1,087.1) (1,056.0) 2.9 Payments to suppliers and employees (3,842.6) (3,977.8) (3.4) Capital asset charge (196.1) (196.1) 0.0 Interest and other costs of finance paid (23.7) (28.6) (17.1) Total payments (5,149.5) (5,258.5) (2.1) Net cash flows from/(used in) operating activities (95.7) 193.4 (149.5) Cash flows from investing activities Net investment 21.3 (79.3) (126.9) Payments for non-financial assets (620.4) (852.3) (27.2) Proceeds from sale of non-financial assets 31.0 34.0 (8.8) Net loans to other parties (1.7) 0.0 — Net cash flows from/(used in) investing activities (569.8) (897.5) (36.5) Cash flows from financing activities Owner contributions by State Government 631.7 728.5 (13.3) Repayment of finance leases (112.8) (17.6) 540.9 Net borrowings 187.2 (11.3) (1,756.6) Net cash flows from/(used in) financing activities 706.1 699.6 0.9 Net increase/(decrease) in cash and cash equivalents 40.6 (4.5) (1,002.2) Cash and cash equivalents at beginning of the financial year 322.3 300 7.4 Cash and cash equivalents at end of the financial year 362.9 295.5 22.8 (a) Variation between 2014–15 Actual and 2014–15 Published Budget Note: The 2014-15 Published Budget excluded the courts, but included those entities that transferred to the Department of Premier and Cabinet on 1 January 2015.

148 Department of Justice and Regulation Annual Report 2014–15

Administered items statement for the year ended 30 June 2015 Department of Justice and Regulation

2014–15 2014–15 Variation (a) Actual Published Budget % ($ million) ($ million) Administered income Appropriations - payments made on behalf of the State 28.9 54.5 (47.0) Special appropriations 13.0 20.7 (37.2) Sale of goods and services 443.3 395.4 12.1 Grants 5.2 9.3 (44.1) Interest 17.0 7.8 117.9 Other income 2,463.6 2,569.1 (4.1) Total administered income 2,971.0 3,056.7 (2.8) Administered expenses Expenses on behalf of the State 7.4 12.7 (41.7) Grants and other transfers 22.5 15.7 43.3 Payments into Consolidated Fund 2,922.4 2,686.0 8.8 Total administered expenses 2,952.3 2,714.5 8.8 Income less expenses 18.7 342.2 (94.5) Other economic flows included in net result Net gain/(loss) on non-financial assets (0.1) 0.7 (114.3) Other gains/(losses) from other economic flows (285.5) (280.9) 1.6 Total other economic flows included in net result (285.6) (280.2) 1.9 Net result (266.9) (62.1) (529.8) Other economic flows – other comprehensive income Other (0.6) 0.0 — Total other economic flows – other comprehensive income (0.6) 0.0 — Comprehensive result (267.5) (62.1) (530.8) Administered assets Cash and deposits 68.5 65.1 5.2 Receivables 1,630.9 1,448.1 12.6 Other financial assets 0.0 4.0 — Total administered assets 1,699.4 1,517.2 12.0 Administered liabilities Payables 1,578.6 1,092.8 44.5 Provisions 0.6 0.6 0.0 Total administered liabilities 1,579.2 1,093.3 44.4 Net assets 120.2 423.9 (71.6)

(a) Variation between 2014–15 Actual and 2014–15 Published Budget. Note: The 2014-15 Published Budget excluded the courts, but included those entities that transferred to the Department of Premier and Cabinet on 1 January 2015.

149 3: Governance

Under the Public Administration Act 2004, the Secretary is responsible for the general conduct and the effective, efficient and economical management of the department. The department’s organisational chart is shown on page 8. A number of standing executive committees ensure good corporate governance with a focus on improving organisational performance.

Standing executive committees

Justice Senior Executive Group

Accommodation Planning Steering Committee Environment Committee Adequate controls Justice Implementation Governance and Audit and Risk Monitoring Committee Appropriate and timely Management information Justice Finance Committee Committee Sound resource management Knowledge Management Committee Clear planning and direction Occupational Health and Safety Executive Committee People Strategy and Policy Committee Security Executive Committee

Special project steering groups

The Justice Senior Executive Group (JSEG) is the peak body in the corporate governance structure. JSEG advises the Secretary on the management and administration of the department to ensure compliance with government directives, guidelines and legislation. It is responsible for integrating governance functions across the department and working collaboratively with portfolio agencies. JSEG receives performance and strategic issues reports from a number of standing committees. The Secretary or his delegate chairs each of these committees, with the exception of the Audit and Risk Management Committee, which is independently chaired. Details of the responsibilities, functions, membership, and relationships between each of the standing committees are available from the office of the secretary. Appendices

150 4: Statutory authorities and offices by ministerial portfolio 2014–15

Attorney-General Electoral Boundaries Commission (transferred to Department of Premier and Cabinet on 1 January 2015) Statutory offices Independent Broad-based Anti-corruption Chief Examiner and Examiner (jointly administered with Commission (transferred to Department of Premier and the Minister for Police) Cabinet on 1 January 2015) Commissioner and Deputy Commissioners, Judicial College of Victoria Independent Broad-based Anti-corruption Commission (transferred to Department of Premier Judicial Remuneration Tribunal and Cabinet on 1 January 2015) Legal Practitioners Liability Committee Commissioner for Uniform Legal Services Regulation Legal Services Council (Uniform Legal Services Crown Counsel Regulation) Crown Counsel (Advisings) Office of Public Prosecutions Crown Prosecutors Panel of Independent Reviewers—Legal Aid Act Director of Public Prosecutions Sentencing Advisory Council Electoral Commissioner and Deputy Electoral Victorian Civil and Administrative Tribunal Rules Commissioner (transferred to Department of Premier Committee and Cabinet on 1 January 2015) Victoria Law Foundation Freedom of Information Commissioner (transferred Victoria Legal Aid to Department of Premier and Cabinet on 1 January 2015) Victorian Legal Services Board Inspector, Victorian Inspectorate (transferred to Victorian Electoral Commission (transferred to Department of Premier and Cabinet on 1 January Department of Premier and Cabinet on 1 January 2015) 2015) Office of the Privacy Commissioner (abolished on Victorian Equal Opportunity and Human Rights 16 September 2014) Commission Office of the Privacy and Data Protection Victorian Inspectorate (transferred to Department of Commissioner (commenced operations on Premier and Cabinet on 1 January 2015) 17 September 2014) (transferred to Department of Victorian Institute of Forensic Medicine Premier and Cabinet on 1 January 2015) Victorian Law Reform Commission Principal Public Interest Monitor and Deputy Public Interest Monitors (transferred to Department of Premier Victorian Professional Standards Council and Cabinet on 1 January 2015) Victorian Traditional Owners Trust Public Advocate Judicial and quasi-judicial bodies Solicitor-General Children’s Court of Victoria Victorian Legal Services Commissioner Coroners Court of Victoria Administrative offices County Court of Victoria Victorian Government Solicitor’s Office Court of Appeal Statutory authorities Magistrates’ Court of Victoria Appeal Costs Board Municipal Electoral Tribunals Board of Examiners Supreme Court of Victoria Coronial Council of Victoria Victims of Crime Assistance Tribunal Council of Legal Education Victorian Civil and Administrative Tribunal Court Services Victoria Appendices

151 4: Statutory authorities and offices by ministerial portfolio 2014–15

Consumer Affairs, Gaming and Liquor Statutory authorities Regulation Country Fire Authority Country Fire Authority Appeals Commission Statutory offices Emergency Management Victoria Arbitrator, Sale of Land Act Emergency Services Telecommunications Authority Chief Executive Officer, Victorian Responsible Gambling Foundation Inspector–General Emergency Management Director of Consumer Affairs Victoria Metropolitan Fire and Emergency Services Appeals Commission Fire Services Levy Monitor and Deputy Fire Services Levy Monitor (abolished on 31 December 2014) Metropolitan Fire and Emergency Services Board Victoria State Emergency Service Authority Statutory authorities Business Licensing Authority Police Consumer Utilities Advocacy Centre Ltd Statutory offices Estate Agents Council Chief Commissioner and Deputy Commissioners of Police Funeral Industry Ministerial Advisory Council (abolished on Chief Examiner and Examiner (jointly administered with the 13 August 2014) Attorney-General) Liquor Control Advisory Council Commissioner for Law Enforcement Data Security Motor Car Traders Claims Committee (abolished on 16 September 2014) Residential Tenancies Bond Authority Road Safety Camera Commissioner Responsible Gambling Ministerial Advisory Council Statutory authorities Sex Work Ministerial Advisory Committee Police Registration and Services Board Victorian Commission for Gambling and Liquor Regulation Firearms Appeals Committee

Victorian Responsible Gambling Foundation Portfolio agencies Corrections Victoria Police Statutory authorities Racing Adult Parole Board Statutory offices Emergency services Racing Integrity Commissioner Statutory offices Statutory authorities Bushfires Royal Commission Implementation Monitor Greyhound Racing Victoria (abolished on 30 September 2014) Harness Racing Victoria Emergency Management Commissioner Racing Appeals and Disciplinary Boards

152 5: Acts administered by the Justice Portfolio and enacted during 2014–15

Acts administered by the Justice Portfolio Corporations (Ancillary Provisions) Act 2001 as at 30 June 2015 Corporations (Commonwealth Powers) Act 2001 Corporations (Victoria) Act 1990 Attorney-General Council of Law Reporting in Victoria Act 1967 Acts Enumeration and Revision Act 1958 County Court Act 1958 Administration and Probate Act 1958 Court Security Act 1980 Administrative Law Act 1978 Court Services Victoria Act 2014 Adoption Act 1984 Courts (Case Transfer) Act 1991 • this Act is jointly and severally administered with the Minister for Families and Children Crimes (Assumed Identities) Act 2004 Age of Majority Act 1977 Crimes (Mental Impairment and Unfitness to be Tried) Appeal Costs Act 1998 Act 1997—except: Attorney-General and Solicitor-General Act 1972 • Sections 48–55, 57A, 57B, 58, 58A and 60–63(1). Division 3 of Part 7 and Part 7A (these provisions Bail Act 1977 are jointly administered with the Minister for Births, Deaths and Marriages Registration Act 1996 Housing, Disability and Ageing and the Minister for Mental Health) Charities Act 1978 • Part 5A (this Part is jointly administered with the Charter of Human Rights and Responsibilities Act 2006 Minister for Families and Children, the Minister for Mental Health and the Minister for Housing, Children, Youth and Families Act 2005 Disability and Ageing) • this Act is jointly and severally administered with • Part 7C (this Part is jointly administered with the the Minister for Families and Children Minister for Mental Health). Choice of Law (Limitation Periods) Act 1993 Crimes Act 1958 Civil Procedure Act 2010 Crimes at Sea Act 1999 Classification (Publications, Films and Computer Crimes (Controlled Operations) Act 2004 Games) (Enforcement) Act 1995 Criminal Organisations Control Act 2012 Commercial Arbitration Act 2011 Criminal Procedure Act 2009 Commonwealth Places (Administration of Laws) Crown Proceedings Act 1958 Act 1970 Defamation Act 2005 Commonwealth Powers (De Facto Relationships) Act 2004 Domestic Building Contracts Act 1995 Commonwealth Powers (Family Law-Children) Act 1986 • Part 5 Confiscation Act 1997 (the Act is otherwise administered by the Minister for Consumer Affairs, Gaming and Liquor Regulation) Constitution Act 1975 Domicile Act 1978 • Part III • Section 88 insofar as it relates to the appointment Electoral Act 2002 of Crown Counsel and Crown Counsel (Advisings) • Part 8 (The Act is otherwise administered by the Premier (the Act is otherwise administered by the Premier and the Special Minister of State) and the Special Minister of State) Constitution (Supreme Court) Act 1989 Electronic Transactions (Victoria) Act 2000 Constitutional Powers (Coastal Waters) Act 1980 Equal Opportunity Act 2010 Constitutional Powers (Request) Act 1980 Evidence (Miscellaneous Provisions) Act 1958 Co-operative Schemes (Administrative Actions) Evidence Act 2008 Act 2001 Family Violence Protection Act 2008 Coroners Act 2008 • the Act is jointly and severally administered with the Appendices Corporations (Administrative Actions) Act 2001 Minister for the Prevention of Family Violence

153 5: Acts administered by the Justice Portfolio and enacted during 2014–15

Federal Courts (State Jurisdiction) Act 1999 (the Act is otherwise administered by the Minister for Finance, the Minister for Corrections, the Minister for Fences Act 1968 Environment, Climate Change and Water, the Minister Fines Reform Act 2014 for Health, the Minister for Ports and the Minister for Roads and Road Safety) Foreign Judgments Act 1962 Land Titles Validation Act 1994 Fortification Removal Act 2013 Legal Aid Act 1978 Guardianship and Administration Act 1986 Legal Profession Act 2004 Honorary Justices Act 2014 Legal Profession Uniform Law Application Act 2014 Imperial Acts Application Act 1980 Legal Profession Uniform Law (Victoria) Imprisonment of Fraudulent Debtors Act 1958 Leo Cussen Institute (Registration as a Company) Act 2011 Infringements Act 2006 Limitation of Actions Act 1958 Instruments Act 1958—except: Local Government Act 1989 • insofar as it relates to the functions of the Registrar- General and the management of the Office of the • Sections 44–46, 48 and 49 Registrar-General (insofar as it relates to those matters, • Section 243 insofar as it relates to municipal electoral the Act is administered by the Minister for Planning) tribunals Interpretation of Legislation Act 1984 • Schedule 4 Judgment Debt Recovery Act 1984 (the Act is otherwise administered by the Special Minister of State, the Minister for Local Government and Judicial College of Victoria Act 2001 the Minister for Roads and Road Safety) Judicial Proceedings Reports Act 1958 Magistrates’ Court Act 1989 Judicial Remuneration Tribunal Act 1995 Maintenance Act 1965 Judicial Salaries Act 2004 Major Crime (Investigative Powers) Act 2004—except: Juries Act 2000 • Part 3 (this Part is jointly administered with the Minister Jurisdiction of Courts (Cross-vesting) Act 1987 for Police) Jury Directions Act 2015 Marriage Act 1958 Land Acquisition and Compensation Act 1986 Open Courts Act 2013 Land Act 1958 Penalty Interest Rates Act 1983 • insofar as it relates to the exercise of powers relating Perpetuities and Accumulations Act 1968 to leases and licences under Subdivisions 1 and 2 of Personal Property Securities (Commonwealth Powers) Division 9 of Part I in respect of land described as Crown Act 2009 allotment 22D of section 30, Parish of Melbourne North being the site of the Victorian County Court Personal Property Securities (Statute Law Revision and Implementation) Act 2010 • insofar as it relates to the land described as Crown Allotment 16 of Section 5, at Elwood, Parish of Prahran Personal Safety Intervention Orders Act 2010 being the site of the former Elwood Police Station: Powers of Attorney Act 2014 »» except Division 6 of Part I, Subdivision 3 of Division 9 of Part I, section 209 and the remainder of the Act Professional Standards Act 2003 where it relates to the sale and alienation of Crown Property Law Act 1958—except: lands as set out in Administrative Arrangements Order No. 58 (which are administered by the Minister • insofar as it relates to the functions of the Registrar- for Finance) General and the management of the Office of the »» except sections 201, 201A and 399 Registrar-General (insofar as it relates to those matters, • Sections 22C–22E the Act is administered by the Minister for Planning) • Sections 201, 201A and 399, insofar as they relate to Public Notaries Act 2001 the land described as Crown Allotment 16 of Section 5, Public Prosecutions Act 1994 at Elwood, Parish of Prahran being the site of the former Elwood Police Station (insofar as they relate to that land, Relationships Act 2008 these provisions are jointly administered with the Minister • the Act is jointly and severally administered with the for Finance) Minister for Equality

154 Department of Justice and Regulation Annual Report 2014–15

Religious and Successory Trusts Act 1958 Valuation of Land Act 1960 Residential Tenancies Act 1997 • Divisions 1 and 2 of Part III, Divisions 4 and 5 of Part III where they relate to the determination of appeals • Sections 446-448 (except subsections 447(1)), 452, by a Land Valuation Division of the Victorian Civil and 472, 473, 479 and 485 Administrative Tribunal and Part IV, insofar as it relates to (the Act is otherwise administered by the Minister for the administration of the above provisions Consumer Affairs, Gaming and Liquor Regulation, the (the Act is otherwise administered by the Minister for Minister for Housing, Disability and Ageing and the Planning) Minister for Planning) Vexatious Proceedings Act 2014 Royal Victorian Institute for the Blind and other Agencies (Merger) Act 2005 Victims’ Charter Act 2006 Sentencing Act 1991—except: Victims of Crime Assistance Act 1996 • Subdivision 4 of Division 2 of Part 3 (this Subdivision is Victoria Law Foundation Act 2009 jointly administered with the Minister for Families and Victoria Park Land Act 1992 Children) • Division 2 of Part 3BA (this Division is jointly administered Victorian Civil and Administrative Tribunal Act 1998 with the Minister for Housing, Disability and Ageing Victorian Institute of Forensic Medicine Act 1985 • Divisions 3 to 6 of Part 3A (these Divisions are jointly administered with the Minister for Corrections) Victorian Law Reform Commission Act 2000 Settled Land Act 1958 Vital State Projects Act 1976 Severe Substance Dependence Treatment Act 2010 • Sections 5-16 • Sections 9–11 and 14–22 (the Act is otherwise administered by the Premier) (the Act is otherwise administered by the Minister for Wills Act 1997 Mental Health) Working with Children Act 2005 Sheriff Act 2009 Workplace Injury Rehabilitation and Compensation St Andrew’s Foundation Act 1997 Act 2013 Status of Children Act 1974 • Division 1 of Part 6 Summary Offences Act 1966 (the Act is otherwise administered by the Minister for Finance) Supreme Court Act 1986 Wrongs Act 1958 Surveillance Devices Act 1999 Telecommunications (Interception) (State Provisions) Minister for Consumer Affairs, Gaming and Liquor Act 1988 Regulation Associations Incorporation Reform Act 2012 Terrorism (Commonwealth Powers) Act 2003 Australian Consumer Law and Fair Trading Act 2012 Terrorism (Community Protection) Act 2003—except: Business Licensing Authority Act 1998 • Part 4 (this Part is administered by the Minister for Police) Business Names (Commonwealth Powers) Act 2011 • Part 6 (this Part is administered by the Premier) Casino Control Act 1991—except: Traditional Owner Settlement Act 2010 • Sections 128H–128L, except section 128K(2) (these Transfer of Land Act 1958—except: provisions are administered by the Minister for Planning) • insofar as it relates to the functions of the Registrar of • Section 128K(2) (this section is administered by the Titles and the management of the Office of Titles (insofar Minister for Finance) as it relates to those matters, the Act is administered by Casino (Management Agreement) Act 1993 the Minister for Planning) Chattel Securities Act 1987 Trustee Act 1958 Company Titles (Home Units) Act 2013 Trustee Companies Act 1984 Consumer Credit (Victoria) Act 1995 • the Act is jointly administered with the Treasurer Conveyancers Act 2006 Unauthorized Documents Act 1958 Co-operatives National Law Application Act 2013

155 5: Acts administered by the Justice Portfolio and enacted during 2014–15

Co-operatives National Law (Victoria) • Part 5 Credit Act 1984 • Section 43 (insofar as it relates to Part 5) (The Act is otherwise administered by the Minister for Credit (Administration) Act 1984 Planning) Credit (Commonwealth Powers) Act 2010 Travel Agents Repeal Act 2014 Domestic Building Contracts Act 1995—except: Veterans Act 2005 • Part 5 (this Part is administered by the Attorney-General) • Part 4 Estate Agents Act 1980 (the Act is otherwise administered by the Minister for Fundraising Act 1998 Veterans) Funerals Act 2006 Victorian Commission for Gambling and Liquor Regulation Act 2011 Gambling Regulation Act 2003—except: Victorian Responsible Gambling Foundation Act 2011 • Section 2.2.9 (this section is administered by the Minister for Racing) Warehousemen’s Liens Act 1958 • Division 5A of Part 5 of Chapter 2 (this Division is jointly administered with the Minister for Racing) Minister for Corrections • Section 3.4.33 (this section is administered by the Community Based Sentences (Transfer) Act 2012 Treasurer) Corrections Act 1986 • Division 2 of Part 2 of Chapter 4 (this Division is jointly administered with the Minister for Racing) Crown Land (Reserves) Act 1978 • Section 4.3.12 (this section is administered by the • Sections 17B, 17BAA, 17BA, 17CA, 17D, 17DAA, 18A Treasurer) and 18B, insofar as they relate to the exercise of powers • Part 5 of Chapter 4 (this Part is jointly administered with in relation to the land as shown as Crown Allotment 15 the Minister for Racing) on Certified Plan 009176 and Crown Allotment 16 on • Division 1 of Part 3 of Chapter 10 (this Division is Certified Plan 1, Section B1, Parish of Ararat, lodged administered by the Treasurer) with the Central Plan Office Goods Act 1958 (the Act is otherwise administered by the Minister for Finance, the Minister for Environment, Climate Change Liquor Control Reform Act 1998 and Water, the Minister for Health, the Minister for Ports, Motor Car Traders Act 1986 the Minister for Tourism and Major Events and the Premier) Owners Corporations Act 2006 International Transfer of Prisoners (Victoria) Act 1998 Partnership Act 1958 Land Act 1958 Residential Tenancies Act 1997 – • Insofar as it relates to the exercise of powers relating to • Sections 23A–25, 27, 32, 33, 45–48, 74–77, 82, 90, leases and licences under Subdivision 1 of Division 9 of 91, 91A, 102, 102A, 103, 104(1), 104(4), 104(5), 104(6), Part I in respect of 105(2), 105(2A), 105(3), 124, 128, 130–134, 141–142B, 142D–212, 213AA–215, 230, 232-234, 241, 277, 289A, »» land identified in Certified Plan 114680-A dated 291–327, 329-333, 335-339, 341, 343-366, 373-376, 8 February 1995 385, 388, 388A, 390, 390A, 395-398, 399A–439M, »» land shown as Allotment 8B, section 13 on Certified 480, 486–499, 501–504, 505A–510C and 511 Plan 116685 and Allotment 4A, section 17 on • Section 66(1) (this section is jointly administered with the Certified Plan 116944 lodged in the Central Plan Minister for Housing, Disability and Ageing) Office (the Act is otherwise administered by the Attorney- »» land shown as hatched on the plan numbered General, the Minister for Housing, Disability and Ageing LEGL./95-80 lodged in the Central Plan Office and the Minister for Planning) (the Act is otherwise administered by the Minister for Finance, the Attorney-General, the Minister for Retirement Villages Act 1986 Environment, Climate Change and Water, the Minister Sale of Land Act 1962 for Health, the Minister for Ports and the Minister for Roads and Road Safety) Second-Hand Dealers and Pawnbrokers Act 1989 Parole Orders (Transfer) Act 1983 Sex Work Act 1994 Prisoners (Interstate Transfer) Act 1983 Subdivision Act 1988

156 Department of Justice and Regulation Annual Report 2014–15

Sentencing Act 1991 Minister for Racing • Divisions 3 to 6 of Part 3A (these Divisions are jointly Gambling Regulation Act 2003 administered with the Attorney-General) • Section 2.2.9 (the Act is otherwise administered by the Attorney- • Division 5A of Part 5 of Chapter 2 (this Division is jointly General, the Minister for Families and Children and the administered with the Minister for Consumer Affairs, Minister for Housing, Disability and Ageing) Gaming and Liquor Regulation) Serious Sex Offenders (Detention and Supervision) • Division 2 of Part 2 of Chapter 4 (this Division is jointly Act 2009 administered with the Minister for Consumer Affairs, Gaming and Liquor Regulation) Minister for Emergency Services • Part 5 of Chapter 4 (this Part is jointly administered with the Minister for Consumer Affairs, Gaming and Liquor Country Fire Authority Act 1958 Regulation) Emergency Management Act 1986 (the Act is otherwise administered by the Minister for Emergency Management Act 2013 Consumer Affairs, Gaming and Liquor Regulation and the Treasurer) Emergency Services Telecommunications Authority Act 2004 Racing Act 1958 Metropolitan Fire Brigades Act 1958 Victoria Racing Club Act 2006 Victoria State Emergency Service Act 2005 Legislation enacted in 2014–15 (passed Minister for Police between 1 July 2014 and 30 June 2015) Australian Crime Commission (State Provisions) Act 2003 Attorney-General Commissioner for Law Enforcement Data Security Act 2005 Courts Legislation Miscellaneous Amendments Act 2014 Control of Weapons Act 1990 Court Services Victoria and Other Acts Amendment Crime Statistics Act 2014 Act 2015 Firearms Act 1996 Crimes Amendment (Abolition of Defensive Homicide) Act 2014 Graffiti Prevention Act 2007 Crimes Amendment (Repeal of Section 19A) Act 2015 Major Crime (Investigative Powers) Act 2004 Crimes Amendment (Sexual Offences and Other Matters) • Part 3 (this Part is jointly administered with the Attorney- Act 2014 General) Criminal Organisations Control and Other Acts Amendment (the Act is otherwise administered by the Attorney- Act 2014 General) Family Violence Protection Amendment Act 2014 Police Assistance Compensation Act 1968 Fines Reform Act 2014 Police Regulation (Pensions) Act 1958—except: Freedom of Information and Victorian Inspectorate Acts • Part III (this Part is administered by the Minister for Amendment Act 2014 Finance) Private Security Act 2004 Interpretation of Legislation Amendment Act 2015 Road Safety Camera Commissioner Act 2011 Jury Directions Act 2015 Seamen’s Act 1958 Justice Legislation Amendment (Succession and Surrogacy) Act 2014 Sex Offenders Registration Act 2004 Justice Legislation (Confiscation and Other Matters) Terrorism (Community Protection) Act 2003 Act 2014 • Part 4 Legal Profession Uniform Law Application Amendment (the Act is otherwise administered by the Attorney- Act 2015 General and the Premier) Limitation of Actions Amendment (Child Abuse) Act 2015 Unlawful Assemblies and Processions Act 1958 Powers of Attorney Act 2014 Victoria Police Act 2013 Privacy and Data Protection Act 2014 Witness Protection Act 1991 Sentencing Amendment (Baseline Sentences) Act 2014

157 5: Acts administered by the Justice Portfolio and enacted during 2014–15

Sentencing Amendment (Correction of Sentencing Error) Minister for Consumer Affairs, Gaming and Liquor Act 2015 Regulation Sentencing Amendment (Coward’s Punch Manslaughter Consumer Affairs Legislation Amendment Act 2014 and Other Matters) Act 2014 Gambling and Liquor Legislation Amendment Sentencing Amendment (Emergency Workers) Act 2015 (Modernisation) Act 2014 Sentencing Amendment (Historical Homosexual Convictions Gambling and Liquor Legislation Further Amendment Expungement) Act 2014 Act 2014 Summary Offences Amendment (Move-on Laws) Act 2015 Veterans and Other Acts Amendment Act 2015

Working with Children Amendment (Ministers of Religion Minister for Emergency Services and Other Matters) Act 2014 Emergency Management Amendment (Critical Infrastructure Wrongs Amendment (Asbestos Related Claims) Act 2015 Resilience) Act 2014 Wrongs Amendment (Prisoner Related Compensation) Act 2015 Minister for Police Crime Statistics Act 2014 Minister for Corrections Sex Offenders Registration Amendment Act 2014 Corrections Amendment (Smoke-Free Prison) Act 2014 Minister for Racing Nil

158 6: People management

Workforce data

Staffing numbers (Full-time equivalent) 30 June 2014 30 June 2015

Executive Management 19.0 86.8

Emergency Management Victoria 96 111.4

Corrections 528.6 630.5

North West Metro (formerly Central Area) 1404.0 1558.9

North Area 671.9 773.3

South Area 369.6 397.9

West Area 1085.2 1266.9

People and Stakeholders 195.4 179.6

Regulation 414.1 386.8

Liquor, Gaming and Racing (formerly part of Regulation) N/A 38.8

Corporate Governance and Infrastructure 242.6 253

Civil Justice 231.1 245.7

Criminal Justice 507.8 541.2

Service Strategy Reform 40.8 59.4

Courts and Tribunal Services 1587.3 N/A

Total 7393.4 6530.2

Notes: • Central Area was renamed North West Metropolitan Area. • Liquor, Gaming and Racing was separated from Regulation to be established as a division. • Courts and Tribunal Services separated from the department to form Court Services Victoria. • Finance moved from Corporate Governance and Infrastructure to Executive Management. • Regional Support Unit moved from North West Metro Area to Executive Management. • Increases in the regions were due to the Prison Expansion Project.

Fixed-term Ongoing Ongoing Ongoing Ongoing and casual

Employees Full-time Part-time Full-time Full-time (head count) (head count) (head count) equivalent (FTE) equivalent (FTE)

As at 30 June 2014 6771 6082 689 6518.6 874.8

As at 30 June 2015 5854 5370 484 5683.2 847 Appendices

159 6: People management

As at 30 June 2014 As at 30 June 2015

Fixed-term Fixed-term Ongoing Ongoing and casual Ongoing Ongoing and casual

Head count FTE FTE Head count FTE FTE

Gender

Male 3140 3120.1 452.7 2994 2977.1 413.5

Female 3631 3398.5 422.1 2860 2706.1 433.5

Age

Under 25 312 308.6 85.3 174 172 88.4

25–34 1682 1620.9 349.3 1382 1339.1 281.3

35–44 1726 1623.9 187.6 1568 1502.3 209.3

45–54 1784 1732.3 167.3 1638 1602.6 180.4

55–64 1120 1094.6 69.1 984 965.8 75.8

Over 64 147 138.3 16.2 108 101.4 11.8

As at 30 June 2014 As at 30 June 2015

Fixed-term Fixed-term Ongoing Ongoing and casual Ongoing Ongoing and casual

Employees Employees Employees Employees Employees Employees Classification (head count) (FTE) (FTE) (head count) (FTE) (FTE)

VPS 1 6 2.5 1.4 4 1.3 0.8

VPS 2 864 806.5 156.1 522 490.2 85

VPS 3 767 726.9 119.6 571 547.5 77.1

VPS 4 640 610.1 45.3 534 506.4 49.6

VPS 5 639 613.5 37.1 571 549.3 73.4

VPS 6 521 504 19 475 457.4 43.4

STS 20 19.9 1 21 20.5 1

Executives 54 53.6 0 54 53.1 0

Clerks of Court

Trainee Registrar 168 167.4 0 0 0 0

Deputy Registrar 46 42.6 0 0 0 0

Registrar Grade 3 194 166.7 0 0 0 0

Registrar Grade 4 31 27.9 0 0 0 0

Registrar Grade 5 36 34 0 0 0 0

Registrar Grade 6 18 18 0 0 0 0

Community Corrections Officers (CCO)

Trainee CCO 135 130.2 57.5 103 99.8 88

CCO 33 29.6 0 37 33.5 2

Leading CCO 215 207.6 6 217 208.7 16.2

Senior CCO 129 120.6 3 160 151 2

160 Department of Justice and Regulation Annual Report 2014–15

As at 30 June 2014 As at 30 June 2015

Fixed-term Fixed-term Ongoing Ongoing and casual Ongoing Ongoing and casual

Employees Employees Employees Employees Employees Employees Classification (head count) (FTE) (FTE) (head count) (FTE) (FTE)

Officer in Charge 27 26.6 0 24 23.8 0

Location Manager 23 23 0 34 34 1

General Manager 8 8 0 8 8 0

Custodial Officers

COG 1 20 20 134 0 0 46

COG 2a 1116 1108.5 282 1337 1328.5 346.1

COG 2b 524 522.9 1 608 607.4 2

COG 3 174 174 0 213 213 0

COG 4 44 44 0 41 41 0

COG 5 2 2 1 4 4 0

COG 6 9 9 1 11 11 0

Sheriff’s Officers

Trainee Sherriff’s 7 7 0 15 15 2 Officers

Sheriff’s Officer 23 23 0 14 14 0

Senior Sheriff’s 115 114.6 0 114 112.9 0 Officer

Supervisor 24 23.5 0 24 23.5 0

Regional Manager 10 10 0 9 9 0

Deputy Sheriff 2 2 0 1 1 0

Allied Health 109 101.9 9.8 120 111.5 10.5

Legal Officers 15 14 0 7 5.9 0.9

Other 3 3 0 1 1 0

Notes: All figures reflect active employees in the last pay period of June each year. The figures exclude those persons on leave without pay or absent on secondment, external contractors or consultants, temporary staff employed by employment agencies and a small number of people who are not employees but are appointees to a statutory office, as defined in thePublic Administration Act 2004 (such as persons appointed to a non-executive board member role, to an office of Commissioner or to a judicial office). ‘Ongoing employee’ means people engaged on an open-ended contract of employment and executives engaged on a standard executive contract who were active in the last pay period of June. The following agencies are discrete agencies within the Justice portfolio. The heads of these agencies are public service body heads who employ public servants independent of the departmental Secretary. These agencies are required to produce their own annual reports. Employee numbers for these agencies are published in those annual reports: • Fire Services Levy Monitor • Office of Public Prosecutions • Road Safety Camera Commissioner • Victoria Police • Victorian Electoral Commission • Victorian Government Solicitor’s Office • Victorian Equal Opportunity and Human Rights Commission • Victorian Commission for Gambling and Liquor Regulation • Victorian Responsible Gambling Foundation. These data exclude Victorian Institute of Forensic Medicine medical and executive staff.

161 6: People management

Reconciliation of executive numbers at Portfolio entities definition 30 June 2015 For the department’s portfolio authorities (public authorities as defined under thePublic Administration Act 2004), an Executive officers definition EO is defined as a person employed as an EO at an annual remuneration rate not less than an EO employed by a An executive officer (EO) is defined as a person employed department. as a public service body head or other executive under Part 3, Division 5 of the Public Administration Act 2004. The following tables disclose the EOs of the department All figures reflect employment levels at the last full pay and its portfolio authorities for 30 June 2015: period in June of the current and corresponding previous • Table A1 discloses the number of EOs in the categories reporting year. of ‘ongoing’ and ‘special projects’ and the total numbers The definition of an EO does not include Governor in of EOs for the department Council appointments as statutory office holders. • Table A2 provides a breakdown of EOs according to gender for the categories of ‘ongoing’ and ‘special Executives are classified into two distinct categories based projects’ on the following definitions: • Table A3 provides a reconciliation of executive numbers • ongoing executives are responsible for functions or presented between the report of operations and Note 29 outputs that are expected to be ongoing at the end of ‘Remuneration of executives’ in the financial statements the reporting period; and • Table A4 provides the total executive numbers for all of • special projects executives are employed for a specific the Department’s portfolio agencies project. These projects are generally for a fixed period of • Table A1 to A4 also discloses the variations, denoted by time and relate to a specific government priority. ‘var’, between the current and previous reporting periods. Table A1: Number of executive officers classified into ongoing and special projects

All Ongoing Special projects Classification No. Var No. Var No. Var

Secretary 1 0 1 0 — —

EO1 0 –2 0 –2 — —

EO2 30 –5 30 –5 — —

EO3 26 –3 26 –3 — —

Total 57* –10 57 –10 — —

Note: * Includes five vacancies filled temporarily as at 30 June 2015

Table A2: Breakdown of executive officers into gender for ongoing and special projects

Ongoing Special projects Male Female Vacancies Male Female Vacancies

Classification No. Var No. Var No. Var No. Var No. Var No. Var

Secretary 1 0 0 0 0 0 — — — — — —

EO1 0 –1 0 0 0 –1 — — — — — —

EO2 15 –3 12 –1 3 –1 — — — — — —

EO3 10 –2 14 –1 2 0 — — — — — —

Total 26 –6 26 –2 5 –2 — — — — — —

Note: • The number of executives in the report of operations is based on the number of executive positions that are occupied at the end of the financial year. Note 29 in the Financial Statement lists the actual number of and amount of remuneration paid to EOs over the course of the reporting period. The Financial Statement note does not distinguish between executive levels, does not disclose separations, vacant positions, executives whose total remuneration is below $100,000, and does not include the Accountable Officer (Secretary). Separations are those executives who received more than $100,000 in the financial year and have left the Department during this year. To assist readers, these two disclosures are reconciled below.

162 Department of Justice and Regulation Annual Report 2014–15

Table A3: Reconciliation of executive numbers

2014 2015

Executives with total remuneration over $100,000 53 57 (Financial Statement Note 29)

Add Vacancies at 30 June (Table A2) 7 5

Executives employed with total remuneration below $100,000 11 9

Executive Officer (Secretary) 1 1

Executives not included in Note 29 ‘Remuneration of executives’ [a] 2 1

Less Separations –7 –10

Executives of the Victorian Government Solicitor’s Office [b] N/A –6

Total executive officer numbers at 30 June 2015 67 57

Notes: [a] For 2013–14 Chief Executive Officer, Victorian Law Reform Commission and Chief Executive Officer, Sentencing Advisory Council. For 2014–15, Chief Executive Officer, Sentencing Advisory Council. [b] Executives of the Victorian Government Solicitor’s Office are no longer included in the department’s executive numbers, although they continue to be included in the department’s financial statement. They were last reported in the department’s executive numbers in 2013–14. Table A4: Number of executive officers for the department’s portfolio agencies

Total active Male Female

Portfolio agencies No. Var. No. Var. No. Var

Consumer Utilities Advocacy Centre 1 0 — — 1 0

Country Fire Authority 23 –9 20 –7 3 –2

Emergency Services Telecommunications Authority 12 0 4 –2 8 2

Greyhound Racing Victoria 8 2 8 2 0 0

Harness Racing Board of Victoria 8 –1 8 –1 0 0

Metropolitan Fire and Emergency Services Board 21 3 16 4 5 –1

Office of Public Prosecutions 1 –1 1 –1 0 0

Office of the Chief Commissioner of Police 22 4 12 4 10 0

Victoria Law Foundation 1 0 0 0 1 0

Victoria Legal Aid 8 1 3 –1 5 2

Victoria State Emergency Service 5 0 4 0 1 0

Victorian Commission for Gambling and Liquor Regulation 2 –1 0 0 2 –1

Victorian Equal Opportunity and Human Rights Commission 1 1 0 0 1 1

Victorian Government Solicitor’s Office (VGSO)* 6 1 3 0 3 1

Victorian Institute of Forensic Medicine 2 0 1 0 1 0

Victorian Legal Services Board and Commissioner 2 0 2 0 0 0

Victorian Responsible Gambling Foundation 0 –1 0 0 0 –1

Total 123 –1 82 –2 41 1

Note: • All figures reflect active executives in the last pay period of June 2015. * VGSO is an administrative office under thePublic Administrations Act 2004.

163 6: People management

Recruitment Services streams to differentiate the case management of parole, Community Correction Orders and community work. The Recruitment Services branch within People and To strengthen the case management of parolees, 91 Culture provides expert advice and support to the new parole positions were introduced in CCS between department on all recruitment related matters, including June 2014 and the end of April 2015 including four new attraction, selection, redeployment and other recruitment Aboriginal Parole Officer roles. Within the agreed period, and retention practices. 171 staff were recruited to establish the parole stream and Youth Employment Scheme maintain resourcing levels in community corrections. The Youth Employment Scheme (YES) is a Victorian Koori Employment Policy Government initiative to increase the workforce To strengthen workforce inclusion across all divisions the participation of young people, particularly those facing Koori Employment Policy was implemented. The policy significant barriers to employment. clearly outlines strategies and support for all areas of the Through this program, 12 month traineeships are made department to assist with Koori attraction and employment available to young people aged between 15 and 24. These under the department’s Koori Employment Strategy placements provide meaningful work experience and 2011–15. formal training, giving a solid foundation to a sustainable This policy outlines the process for hiring managers career. In 2014–15, the department had a target to seeking to recruit Koori staff, to effectively encourage Koori recruit 30 YES trainees. The department has successfully applicants and provide a culturally sensitive and appropriate provided places in the scheme to 38 trainees, including selection processes. seven Koori trainees. The People and Culture Koori Reference Group was Graduate Recruitment and Development Scheme established in 2014. It provides a strong framework of The Victorian Public Service Graduate Recruitment collaboration with key Koori community representatives and Development Scheme is a high-profile whole- to create a culturally inclusive workplace and increase of-government initiative that provides government Koori employment in the department. During 2014–15 the departments with an annual intake of high-calibre department’s unique Koori Mentoring program commenced university graduates. The scheme provides graduates its second intake with nine mentoring relationships. with 12 months of structured experience that aims Other Koori-specific initiatives, such as the Koori Graduate to develop graduate’s core capabilities for a career in Recruitment and Development Scheme (KGRADS), government. and the Koori Youth Employee Scheme (YES), provide The department recruited 11 graduates for the 2014 a specific entry-level pathway for Koori candidates into program, three of whom are part of the department’s Koori department roles. Graduate Recruitment and Development Scheme. Koori inclusion Volume Recruitment and Projects The department continued its facilitation of the Koori Volume Recruitment and Projects (VRP) is a specialised Inclusion Action Plan (KIAP) Mingu Gadhaba: Beginning unit within Recruitment Services and is responsible for Together, which began in 2011. Seventeen divisional attracting, recruiting and selecting entry-level corrections and regional inclusion plans express the department’s officers, including Prison Officers (POs), Community commitment to increasing the effectiveness of service Corrections Officers (CCOs) and Field Officers (FOs) across delivery to the Koori community. all regions in Victoria. This function operates against an In 2014–15, the Country Fire Authority, Victoria Legal agreed Service Level Agreement between People and Aid, and the Office of the Public Advocate completed Culture and Corrections Victoria (CV). VRP recruited a total their strategies for Koori inclusion, and the department of 666 corrections officers in 2014–15 comprising 499 POs, continues to work with the Metropolitan Fire Brigade, 138 CCOs and 29 FOs, of which 21 were Koori recruits. Victorian State Emergency Service and Victoria Police on the development of their KIAPs. The department Parole System Reform Recruitment Project continues to oversee the committees that inform the work In order to achieve the government’s proposed changes being done across the state, including the community of to the Community Correctional Services (CCS) portfolio of practice, project board and steering committee. CV, the department committed to divide CCS into three

164 Department of Justice and Regulation Annual Report 2014–15

Learning and development department’s learning and development strategy for our current and future leaders. Each program has a particular The Justice Learning Program focus on building leadership in public sector management and policy, building networks, understanding the personal The central calendar of learning for staff is known as the impact on others, and other pertinent issues for Justice Learning Program (JLP). In 2014–15, 150 individual government leaders. training sessions were delivered to approximately 2300 staff centrally and in regional locations. During 2014–15, 25 departmental staff from VPS Grade 4 to executive level attended an external program of Sessions in the 2014–15 JLP included: leadership development. • staff induction The department also has a number of internal programs • managing aggressive and substance-affected clients of leadership and management that target staff at all • resilience and positive psychology levels of the organisation. These include the Management • performance management Development Program and the Potential and New • leadership and management Managers Program. Seventy participants across the • presentation skills department participated in these programs. • writing in the government context Koori Cultural Awareness Training • dealing with clients from varied cultural backgrounds • mental health and disability awareness In October 2011, the department appointed a Koori Cultural Awareness Training Officer to develop and deliver Koori • change management Cultural Awareness Training. By 30 June 2015, over 4000 • communication skills staff from the department and related statutory entities had • team building. attended the training. All programs are evaluated to measure participant response, learning and behavioural change in the workplace. People Matter Survey The department participated in the 2014–15 People eLearning Matter Survey (PMS). The PMS enables staff to provide Nexus, the department’s learning and performance their feedback on the culture and working conditions at management system, hosted a wide range of training the department. The results informed a range of targeted materials and resources, work-based learning guides, online activities intended to make the department a better place to communities of practice, virtual classrooms and a range of work, and informed a number of training programs offered other eLearning options. by the JLP. In total, the department has developed more than 160 eLearning courses. Approximately 90 per cent of staff Training for prison staff completed the eight eLearning courses related to their statutory obligations and policy requirements. Prison Officer Recruit Training Program In 2014–15, 431 staff completed the Prison Officer (PO) In addition, staff commenced over 2600 eLearning courses Recruit Training Program. The program provides recruits that are accessible from a purchased library of 200 with the knowledge needed to work safely, ethically and professional development modules that cover topics such effectively in a prison. It provides training on corrections as computer applications, leadership and communication legislation, policy and procedures and prepares recruits for skills, conflict management and business writing. the challenges of working in a prison, including the need to recognise and act upon their duty of care to prisoners. Workforce planning Participants are enrolled in the CSC30112 Certificate III in The department has developed workforce and succession Correctional Practice. planning frameworks to ensure that each business unit plans for the capability and capacity requirements of their Supervisory Development Program workforce to deliver business priorities. Information gathered The Supervisory Development Program is a 12 month through workforce and succession planning activities program for custodial prison staff aspiring to be senior provides the department with greater understanding of the prison officers and supervisors. Participants attend monthly workforce and succession risks and helps to inform learning training days that cover topics aligned to the key leadership and development priorities, now and into the future. and operational aspects of senior prison roles. Participants undertake a three month higher duties assignment and Leadership development are enrolled in the CSC40112 Certificate IV in Correctional The department supports participation of staff and Practice. In 2014–15, 21 participants graduated in October managers in various external leadership development 2014 and 28 participants commenced the next program in programs. These programs are a valuable part of the February 2015.

165 6: People management

Management program for prison supervisors Statements The Management Program for Prison Supervisors builds Statements of attainment issued the operational competence and leadership capacity of existing prison supervisors. Each month, participants CHC—Mediation units 87 attend two-day sessions delivered by senior corrections CSC30112 Certificate III in Correctional Practice 12 staff and subject matter experts. Participants take part in [Custodial] a 360 degree feedback process and complete a project at their location. In May 2015, 20 prison supervisors CSC40112 Certificate IV in Correctional Practice 9 graduated the program; another 24 participants will CSCSAS206—Respond to medical emergencies 17 commence the 2015–16 program. PSP40312 Certificate IV in Government [Court 86 Leader as Coach Program for prison operations Services] managers BSB—Recordkeeping Units 16 The Leader as Coach program is a 20 week teleconference development program for prison Total statements issued 227 operations managers. The aim of the program is to develop the leadership capacity and confidence of Note: operations managers to meet future challenges. Eight • A statement of attainment recognises that one or more accredited participants completed the program in the second half of unit has been achieved, and may be from one of the certificates awarded by the department. 2014 and another nine commenced in February 2015. The following new enrolments occurred in 2014–15. Registered Training Organisation The department is committed to ensuring that staff in key Enrolments in qualifications and units Numbers operational roles have access to nationally accredited training. The department achieves this goal by operating a CSC30112 Certificate III in Correctional Practice 596 Registered Training Organisation (RTO). The RTO partners with business units to develop training programs that are CSC40112 Certificate IV in Correctional Practice 108 specifically designed to meet the needs of employees PSP40312 Certificate IV in Government [Court 18 who join the department, or those seeking professional Compliance] development in roles within: Total staff enrolments in qualifications 722 • Infringement Management and Enforcement Services (sheriff’s officers) CSCSAS206—Respond to Medical Emergencies 98 • Corrections Victoria (community corrections officers and custodial officers) CHC—Mediation units 30 • Dispute Settlement Centre of Victoria (mediators) Total staff enrolments in units 128 • Courts and Tribunals • record keeping areas. Total staff enrolments 2014–15 850 The department awarded the following certificates and statements of attainment in 2014–15. Safety and wellbeing

Awards The department’s Occupational Health and Safety Qualification issued Strategy 2011–15, Working Well, focuses on five priority areas: leadership and accountability, consultation and CSC30112 Certificate III in Correctional Practice 110 communication, management of risks, proactive wellbeing and WorkCover management. CSC40112 Certificate IV in Correctional Practice 27 As part of the strategy, a robust governance model and safety management framework were established. PSP40312 Certificate IV in Government [Court 19 A state wide action plan was developed requiring regular Compliance] reporting to senior management. Health and safety was promoted through training programs and improved injury Total qualifications awarded 156 management processes.

166 Department of Justice and Regulation Annual Report 2014–15

Health and safety programs Incident management The safety and wellbeing team supported a number of There were 1429 employee-reported incidents recorded safety and wellbeing projects in 2014–15. They include the on the department’s online Accident, Incident Reporting following. System (AIRS) in 2014–15. An incident is reported for any event resulting in or that has the potential for injury, • Health and safety eLearns. Staff are required to complete ill health, damage or loss. All reported incidents are a range of health and safety training programs. More than investigated. 90 per cent of staff completed the health and safety at work and the emergency preparedness eLearns. The following table illustrates the number and rate of • Hepatitis B immunisation program. The department incidents reported across the department for the past provides a range of programs to help staff improve their five financial years. The department this year recorded health. In 2014–15, 881 staff accessed the department’s an increase in the number of incident reports and rate of hepatitis B immunisation program. incidents compared to last year. • Influenza program. The department also funded the Number of incidents and rate per 100 FTE influenza vaccination program. Almost 2300 staff received a flu vaccination in 2014–15. 2010–11 2011–12 2012–13 2013–14 2014–15 • Wellbeing programs. The department promoted a range Incidents 1224 1260 1216 1424 1429 of health and wellbeing programs, including the VPS Open Minds peer support group and the Livewell staff Rate 147.56 151.97 149.44 170.66 187.36 resource centre. The department also provided specialist Note: wellbeing awareness training to over 150 supervisors. • Courts and Tribunal Services information is included in the data for • Employee Assistance Program (EAP). EAP provides a 2010–11 to 2013–14, but is not included in the 2014–15 data for free and confidential short-term advice and counselling incident reporting and claims performance. service to staff experiencing personal or work-related concerns. In the past year, more than 311 staff WorkCover premium contacted EAP and received telephone or face-to-face The premium rate is a calculation to determine costs counselling. EAP also assisted in 42 critical incidents for maintaining workers compensation insurance. The by providing onsite briefings for affected staff. premium calculation is based on a combination of the total number of employees, the remuneration total, the Compliance reporting industry risk factor and claims history. Although the The department has 97 designated work groups in which department’s premium rate has increased over the past 189 health and safety representatives have been nominated six financial years (since 2009–10), the department is still or elected to represent staff on workplace safety issues. performing 17 per cent better than the industry average. WorkSafe inspectors may visit the workplace for a range The graph below shows the industry average against the of issues relating to provisional improvement notices, department’s premium rate for rates recorded over the complaints or notifiable incidents. The department recorded past nine financial years. 78 visits in this period with, nine notices.

Figure A1: Workcover: Premium rate and industry rate

2.5

2.0

1.5

1.0

0.5

0.0 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 2012–13 2013–14 2014–15 Premium rate % 1.89 1.37 1.13 0.98 1.13 1.22 1.31 1.41 1.75 Industry rate % 2.25 1.71 1.51 1.49 1.51 1.58 1.64 1.83 2.32

167 6: People management

Claims management claims per 1000 FTE; the claim rate for this financial year This year there has been a decrease in the number of was 21.13 claims per 1000 FTE. The lost time claim rate standard claims lodged, and therefore a decrease in decreased from 12.83 to 8.08 claims per 1000 FTE. There the department’s claim rate. Last year there were 22.55 was an increase in the 13-week claim rate compared to last year, from 4.92 to 4.98 claims per 1000 FTE.

Figure A2: Standard claims: Number and rate per 1000 FTE

1000

100

10

1 2010–11 2011–12 2012–13 2013–14 2014–15 Claims 158 154 144 188 157 Rate 19.05 18.57 17.70 22.55 21.13

Figure A3: Lost time claims: Number and rate per 1000 FTE

110

100

10

1 2010–11 2011–12 2012–13 2013–14 2014–15 Claims 62 66 61 107 60 Rate 7.47 7.96 7.50 12.83 8.08

168 Department of Justice and Regulation Annual Report 2014–15

Figure 4: Claims over 13 weeks: Number and rate per 1000 FTE

100

10

1 2010–11 2011–12 2012–13 2013–14 2014–15 Claims 33 31 29 41 37 Rate 3.98 3.74 3.56 4.92 4.98

Carers Recognition Act 2012 Disability and diversity

In 2014–15 the department took all practical measures to The Disability Action Plan 2012–16 and the Cultural comply with its obligations under the Carers Recognition Diversity Plan 2012–16 present initiatives in the Act 2012. These measures included providing all staff with department’s engagement of Victorians living with disability, the opportunity to balance their caring responsibilities with their families and carers as well as Victorians from culturally their work commitments. This includes providing access to and linguistically diverse backgrounds. Both plans present a personal leave that can be used for caring purposes and range of initiatives to promote engagement and accessibility access to a wide range of flexible working arrangements. across the department’s portfolio. Each plan details initiatives across common goals: The department also made reasonable accommodations to support staff who require a carer to attend the workplace • a strong foundation for learning, obtaining and wherever necessary, considering the carer relationships maintaining employment principles set out in the Act when setting policies and • protecting rights and promoting full participation providing services. • access to justice information, goods, services and The department has established a range of people facilities management policies that support the guiding principles of • inclusive and responsive justice systems. the Carers Recognition Act 2012. These policies include: During the year, the department undertook an internal mid-term evaluation of both plans. The evaluations have • Flexible Working Arrangements Policy monitored progress in the delivery of disability and cultural • Personal Leave Policy diversity initiatives identifying activities to be progressed • Respect in the Workplace Policy. as the current plans reach conclusion. Outcomes of the evaluation will also contribute to the preparation of plans Family Violence Support covering the 2016–20 period. In 2014–15, the department released a Family Violence Support Guideline and Related Policy. This document was State Disability Plan developed in recognition that departmental employees The Victorian State Disability Plan 2013–16 includes a range may face situations of violence or abuse in their of strategies contributed by the department. In 2014–15, personal lives that may impact on their attendance and the department acted on initiatives in the plan, including: performance at work, as well as on their overall health and • leading the government response to a range of wellbeing. The aim of the document is to assist employees parliamentary inquiries remain in paid employment while accessing family violence • making it easier for people with a disability who are support services. victims of crime to exercise their rights in the criminal The department employs professionally trained family justice system violence officers within the Victims Support Agency who • improving access to consumer information provide assistance and support to any employee who is a • providing specialised prison and community-based victim of family violence. These family violence officers can programs for people with a disability to address their be contacted by departmental employees via the People offending behaviour. and Culture hotline.

169 6: People management

Disability scholarships enables them to share experiences in their professional The department continued in its administration of a and personal environments as well as considering issues, scholarship program to support Victorian tertiary students including: with a disability undertaking justice-related studies. • recognition and awareness of the wide range of disability Promotion of the department’s program extends into types Victorian universities as well as a range of disability sector • how disability affects the lives of community members organisations. Three students were awarded scholarships and their families comprising one major scholarship of $40,000 over two years • disability and mental health issues that may affect and two scholarships of $10,000, each over two years. departmental clients and users of the Victorian justice As an extension of its Disability Scholarships Program, the system department also awarded a staff member with a disability • strategies for ensuring that accessible justice services a scholarship allowance of $5000 per annum to engage in are delivered to Victorians with a disability. a professional development activity. General diversity training for trainee registrars in the courts system continued through the year. This training includes Forums and community examination of the Victorian population, responsibilities The department once again hosted a range of forums under the Victorian Public Service Code of Conduct, the to examine diversity-related themes and developments. values of the department, language services provision and Beyond doubt: telling the police about crime featured disability. presenters from the Victorian Human Rights and Equal Opportunity Commission delivering summaries and CALD Victorians—justice reporting promoting discussion around the VEOHRC report of the The department once again participated in the whole of same name. This forum also presented an opportunity Victorian Government reporting on Multicultural Affairs. The for the awarding of Department of Justice and Regulation reporting process seeks information from state government Disability Scholarships. departments concerning activity and expenditure as Finding Voice – Protecting rights for people with disability it relates to engagement with Victorians from CALD in justice systems through the use of intermediaries and backgrounds. support persons saw the department host members of the public along with justice and disability sector Refugee-related activities representatives to examine models of protection in the The department continued to fund the Refugee Youth justice system for people living with disability, in particular, Project and the Refugee Court Program. intermediary models adopted in the United Kingdom. Joyce Plotnikoff DBE and Dr Richard Woolfson from the The Refugee Youth Project is an early intervention United Kingdom joined with Colleen Pearce, Victorian program, that aims to prevent young people from refugee Public Advocate, and a range of panel speakers to share backgrounds from becoming disengaged from the insights into protections for people with disability in the community and becoming negatively involved in the criminal justice system. justice system. Continuing its focus on rights protection for victims of crime The Refugee Court Program currently operates in with disability, the Victims Support Agency also hosted the Magistrates’ Court at Melbourne, Sunshine and Responses to Victims with Disabilities, a forum to raise Dandenong. The program can be used as part of a awareness about the services available for adult victims of diversion process or a sentencing option, including as part sexual assault. of a community correction order. The intention of both programs is to restore hope and Training and education trust in the justice system, thereby enabling young The department continued its delivery of disability people from refugee backgrounds to establish a safe and awareness and mental health awareness training. Staff are productive future. provided with opportunities to engage in training, which

170 7: Environmental performance and targets

The Environmental Management System (EMS) was Reporting Direction 24C—Reporting of office-based implemented to reduce the department’s impact on environmental data by government entities (FRD24C). the environment and meet government requirements. The FRD24C framework is provided to assist Victorian The EMS is modelled on the international standard ISO public sector entities meet reporting obligations. 14001. The EMS framework includes: Every year, the Commissioner for Environmental Sustainability (CfES) publishes a Strategic Audit • an Environment Management and Sustainability policy of EMS in Victorian Government departments • an Environmental Management Plan (EMP), and agencies as required by the Commissioner consisting of projects and targets; this plan for Environmental Sustainability Act 2003. focuses on activities with significant impacts while Recommendations from the audits are incorporated ensuring compliance with legal requirements. The into the department’s EMP and REAPs. This section is implementation of the EMP is supported by the also in accordance with the Global Reporting Initiative Regional Environmental Action Plans (REAPs) environmental indicators (EN): EN5, EN18 and EN29. • a communications plan, which details communication channels and communication frequency with a range Changes to the scope of reporting of stakeholders, including external parties, to raise Environmental performance was previously reported awareness and support for environmental initiatives. in four categories: ‘Office’, ‘Complex’, ‘Courts’ and On behalf of the Secretary, an executive environment ‘Correctional Centre’. Since 1 July 2014, Court committee, now in its fifth year, is responsible for Services Victoria (Courts) is no longer part of the providing leadership and setting direction to meet department’s portfolio. As a result, environmental data legislative and reporting requirements and monitoring have been revised to exclude Courts performance. department’s performance. In addition, voluntary The reporting process has been streamlined to: environmental representatives in each region and the ‘Correctional Centre (including prisons)’ and ‘Office’ CBD support the implementation of the department’s categories. Data cover the period from 1 April 2014 to environment program. 31 March 2015 with information sourced from retailer’s Environmental performance and targets billing information and logbooks. Summary data have been amalgamated for office and The following section details the department’s correctional centres to ensure that the department environmental performance as prescribed by presents a material representation of its environmental the Financial Management Act 1994, Financial impacts.

Environmental performance Table A5: Summary trend report 2014–15 trend compared to 2012–13 2013–14 2014–15 2013–14 (%) Department of Justice and Regulation

Energy (MJ/m2) 982 1014 1020 1 (330)* (349)* (318)* (–9)*

Waste (kg/FTE)* 65 72 73 1

Paper (reams/FTE) 15 16 14 –13 (20)* (21)* (19)* (–10)*

Water (kL/m2) 1.93 2.2 2.3 5 (0.85)* (0.75)* (0.74)* (–1)*

Transportation fleet (tonnes 0.25 0.22 0.21 –5 CO2e/1,000km)

Notes: • MJ/m2 = megajoule per square metre, kg = kilograms, FTE = Full Time Equivalent staff, ream = 500 sheets of A4 size equivalent

paper, kL= kilolitres, CO2e = carbon dioxide equivalent. • The emission factor for carbon dioxide equivalent is sourced from National Greenhouse Accounts Factor, December 2014. • Data for sites where a complete year of bills is not available have been extrapolated to reflect a complete year of usage as per the FRD24C guidelines. • The 2006–07 baseline has been replaced with trend data, as per FRD24C. * This figure represents only office-based data to allow for direct comparison with other government departments as required

by the CfES. Appendices

171 7: Environmental performance and targets

Energy System (NABERS) energy rating of 4.5 out of 5 stars. Correctional centres account for 91 per cent of the A number of energy reduction projects were implemented department’s energy use. Electricity is the predominant during 2014–15, including: source of energy used. This includes energy used for lighting, heating, industry operations and construction • replacement of inefficient lights with light emitting diode works. Natural gas and bottled gas (liquefied petroleum gas) (LED) lights are other sources of energy used largely for heating and • increasing the generation of renewable energy by cooling. Increased energy use this year can be attributed to 28 kilowatts (kW) through the installation of solar ongoing construction works and a 12.6 per cent increase in panels. prisoner numbers compared with last year. The department achieved 235 kW towards its 470 kW of Within offices, energy is predominantly used for lighting, renewable energy generation target. It is anticipated that heating and cooling. The department’s central office, the target will be achieved by end 2015–16. located at 121 Exhibition Street, Melbourne, houses approximately 30 per cent of staff. The building has 2015–16 energy target achieved a National Australian Built Environment Rating Increase renewable energy capacity by installing large-scale renewable energy systems (solar).

Table A6: Energy use 2014–15

Total energy usage segmented by primary source—megajoules (MJ)

Correctional centres Office Total

Electricity 102,809,018 21,363,613 124,172,631

Electricity (green power) 0 0 0

Natural gas 118,260,466 2,721,779 120,982,245

LPG 35,114,864 — 35,114,864

Total 256,184,348 24,085,392 280,269,740

Total greenhouse gas emissions segmented by primary source (tonnes of CO2e) Electricity 38,268 7952 46,220

Electricity (green power) 0 0 0

Natural gas 6070 140 6210

LPG 2103 — 2103

Notes: 2 • MJ = megajoules, CO2e = carbon dioxide equivalent, FTE = Full Time Equivalent, m = square metres. • The department stopped purchasing green power and carbon offsets in 2011, as per government requirements. • Office-based energy data represent 51 per cent of the department’s total FTE and 27.6 per cent of the department’s total facility footprint.

Table A7: Energy intensity 2014–15 Correctional centre Office Total**

Energy used per person (MJ/FTE)* — 7385 —

Energy used per unit of space (MJ/m2) 1288 318 1020

Notes: * Energy used per FTE (MJ/FTE) is applicable only to office-based buildings; usage for operational facilities cannot be apportioned against FTE. ** The ‘Total’ value reflects the average MJ consumed per m2 across the department (correctional centres and offices).

172 Department of Justice and Regulation Annual Report 2014–15

Water • the use of recycled water for horticulture irrigation at Water usage at correctional centres accounts for 91 per Beechworth Correctional Centre cent of the department’s total water consumption. Activities • recommissioning of the black-water treatment system, that consume water include prison industries, kitchen which produces reclaimed water for crop irrigation, also operations and showers. at Beechworth Correctional Centre • changes to native gardens within prison, which are less For offices, water is generally used in cooling towers, water intensive. bathroom and kitchen amenities and for consumption. To reduce water use, a number of buildings have flow restrictors The department’s water target for 2014–15 was to reduce on taps and dual flush toilets. The department’s central office, water usage at the three most intensive sites by 3 per cent; located at 121 Exhibition Street, Melbourne has a black- the water use at these sites has decreased by 12.8 per water treatment facility to reduce potable water use, and has cent. achieved a NABERS water rating of 3.5 out of 6 stars. 2015–16 water target Departmental water reduction projects include: Ensure that all primary horticulture plots within prisons have • rainwater capture for use in the Dhurringile Prison dairy access to harvested or recycled water. washdown

Table A8: Total department potable water usage 2014–15

Correctional centre Office Total

Kilolitres 537,223 50,040 587,263

Notes • Potable water: water that is safe or suitable for human consumption as drinking water. • Office water data covers 50 per cent of the department’s total FTE and 36 per cent of the department’s total facility footprint.

Table A9: Water intensity 2014–15

Correctional centre Office Total**

Water used per FTE (kL/FTE)* — 17.5* —

Water used per unit of space (kL/m2) 2.9 0.7 2.3

Notes: • kL = kilolitres; FTE = Full Time Equivalent; m2 = square metres. * Water used per FTE (kL/FTE) is applicable only to office-based buildings. Usage for operational facilities cannot be apportioned against FTE. ** The ‘Total’ value reflects the average kL consumed per m2 across the department’s portfolio (correctional centres and offices).

Paper and procurement The department has incorporated environmental The department procures a range of goods and services, considerations into the planning stage of the procurement including: process, for example: • contractor and consultancy services • disclosing of the environmental ratings (energy, water) of supplier products • management of property accommodation • provision of information on the sustainability credentials • printing, stationery and other office equipment of supplier companies • technology services • identifying of steps suppliers have taken to reduce • correctional centre operating equipment. product packaging and to assist the department to Examples of paper and procurement projects include: recycle packaging, thus meeting the department’s • purchase of environmentally friendly products for use in target of implementing a project to reduce packaging of a work programs major goods • purchase of environmentally friendly stationery and • using the sustainability scorecard in tender documents paper with high recycled content for expansion works at correctional centres. • ensuring that all offset and digital print jobs meet a With a paper consumption of 14 reams per FTE, the minimum two-star (out of five) green accreditation. department is well placed to achieve the whole of

173 7: Environmental performance and targets

government average of 13.6 reams per FTE by 2016. Staff departments in other states and territories have similar paper consumption within offices remains at 19 reams per constraints on paper usage. FTE. Research has been undertaken and presented to the executive environment committee, confirming that the 2015–16 paper and procurement target legislative and compliance focus of the department (both Include environmental considerations into a number of paper-intensive activities) affect paper usage. This has been procurement templates for tenders and capital projects. addressed through various digitalisation processes. Justice

Table A10: Total department paper usage 2014–15

Description Correctional centre Office Total

Reams 27,809 62,940 90,749

104 237 341 Paper use (tonnes CO2e)

Notes:

• CO2e = carbon dioxide equivalent; reams = 500 sheets of A4 equivalent size paper; FTE = Full Time Equivalent. • The WOVG supplier, Staples, provided paper usage data. Paper purchased outside the WOVG supplier is not included.

Table A11: Paper intensity 2014–15

Description Correctional centre Office Total*

Paper used per FTE (reams/FTE) — 19 14

Recycled content (per cent)

>75 per cent 90 89 89

50–75 per cent 0 0 0

<50 per cent 10 11 11

Notes: • Paper usage in the ‘less than 50 per cent recycled content’ category includes A4 coloured paper. * The totals provided reflect the average reams of paper consumed per FTE across the department’s (correctional centres and offices). Apportioned paper data are available only for offices.

Sustainable transport and fleet This year, the department has increased the number of Travel is undertaken using the departmental fleet and video conferencing facilities, thus reducing the requirement hire cars from the State Government vehicle pool. The for travel, resulting in a reduction in travel-based emissions department delivers its services through a range of facilities and increased time efficiency. While every region practices in seven regions across the state. Staff undertaking certain some form of car pooling, only two regions had a types of work are often required to travel between offices systematic approach to this process; consequently, the and other work sites. For example, staff supervise offenders 2014–15 target of car-pooling in three regions was not met. in unpaid community work and rehabilitation programs, which requires travel to work sites. Other requirements 2015–16 sustainable transport and fleet target for travel include management of projects, for example, Increase the use of video conferencing facilities by 5 per construction projects that are offsite. cent in 2015–16 from 2014–15.

174 Department of Justice and Regulation Annual Report 2014–15

Fleet Table A12: Total department transportation (vehicle fleet performance by fuel type) 2014–15

Description Passenger fleet Other Total

Fuel consumption (megajoules)

Petrol 32,235 2922 35,157

Diesel 834 10,413 11,247

LPG 1253 338 1591

E-10 1269 45 1314

Total 35,591 13,718 49,309

Distance travelled (kilometres)

Petrol 11,566,329 767,271 12,333,600

Diesel 268,637 2,563,432 2,832,069

LPG 392,289 101,812 494,101

E-10 393,464 56,368 449,832

Total 12,620,719 3,488,883 16,109,602

Greenhouse gas emissions (tonnes CO2e) Petrol 2244 203 2447

Diesel 58 728 786

LPG 76 21 97

E-10 82 3 85

Total 2460 955 3415

Table A13: Transport intensity (vehicle fleet performance by fuel type) 2014–15

Description Passenger fleet Other Total

Greenhouse gas emissions efficiency (tonnes CO2e/1,000km) Petrol 0.19 0.27 0.20

Diesel 0.22 0.28 0.28

LPG 0.19 0.20 0.20

E-10 0.21 0.05 0.19

Total 0.19 0.27 0.21

Notes:

• CO2e = carbon dioxide equivalent. • The ‘Total’ column is the total value for ‘Passenger fleet’ and ‘Other’. ‘Other’ includes optional reporting of commercial vehicles and the departmental executive fleet. • Fleet data are sourced from vehicle logbooks and fuel purchase records (fuel cards and petty cash records) of the department fleet and State Government Vehicle Pool. Approved fleet growth is not included. Departmental fleet data include a number of statutory entities, including Victorian Equal Opportunity and Human Rights Commission and Public Advocate.

175 7: Environmental performance and targets

Transport 2015–16 waste target The department’s air travel has increased by 10 per cent Reduce food waste to landfill by 10 per cent, compared since last year. A large portion of the department’s air travel to 2014–15 levels, for buildings that undergo waste audits is used for emergency management, such as sending under FRD24C. support crews, including fire fighters, interstate. The demand for this varies pending weather conditions. Table A16: Office-based waste 2014–15 Table A14: International and domestic air travel 2014–15 Description Total (kg) Kg per FTE Description Total Landfill 39,751 19 Distance travelled (kilometres) 1,788,591 Recycling 99,054 48 Greenhouse gas emissions (tonnes CO e) 415 2 Compost 11,030 5

Note: Total 149,835 73 • Departmental air travel data include a number of statutory entities, excluding the Office of Public Prosecutions, which independently Recycling rate (%) 73 discloses its air travel. Greenhouse emissions from waste 48

Table A15: Sustainable transport 2014–15 to landfill (tonnes of CO2e) This percentage covers staff commuter choices (train, tram, bus, bicycle and walking) to and from work only. Notes: • A five-day waste audit was undertaken at 121 Exhibition Street and 80 Collins St, Melbourne, which covered 32 per cent of the Percentage of staff who travel to and from work department’s FTE. This represents 13.6 per cent of departmental Area sustainably (using train, tram, bus, bicycle or walking) (%) locations. CBD 94 • The waste data have been extrapolated in accordance with FRD24C guidelines to reflect a complete year’s waste stream. Metro 71 • Data do not include e-waste (computers, telephones and multi- functional devices). Regions 16

Note: • Sustainable transport information is taken from the department’s Environmental compliance, communication environment survey completed in 2015. and training

Waste The department is required to comply with a number Typically, there are three waste streams in offices and of state and federal legislative requirements with regard correctional centres: landfill, compost and recycling. to its environmental impacts, including the Environment Some correctional centres operate industries that Protection Act 1970 and the Water Act 1989. These Acts generate other types of waste such as wood, steel and provide a legal framework to ensure that the department’s paint, and waste from farming and livestock production operations and services have the least impact on the activities. Eight out of 11 publicly operated correctional environment. The department works closely with key centres had a waste reduction project implemented stakeholders, such as local councils, government over the last two years. This figure did not meet the departments and other regulators, for example, the 100 per cent target for 2014–15. A business case for Environment Protection Authority, to ensure compliance the waste projects at the remaining correctional centres with licence and regulatory requirements. This year, the has been developed and implementation is scheduled department has not received any fines or non-monetary for 2015–16. sanctions related to environmental compliance. Examples of implemented waste reduction An e-learning environmental module, which has been activities are: developed for staff, provides a broad overview of the department’s legal obligations and legislative compliance • diverting food waste to a composting system, requirements for various activities. In addition, site-based with the resultant compost used on horticultural environmental legal compliance training was carried out plots in the correctional centres in all publicly operated prisons, meeting the department’s • using pallet off cuts to make new furniture 2014–15 target. The training provided information • recycling cardboard and off cuts such as steel on site-specific obligations, monitoring and reporting from correctional centre industries requirements. To complement this training, a walkthrough • recycling toners, office furniture, cardboard, of each site was undertaken to identify any new or paper, batteries, phones and chargers potential risks. • re-using stationery supplies, including folders.

176 Department of Justice and Regulation Annual Report 2014–15

The environmental licences and agreements held by the provides offenders with the opportunity to give back to department include: the community and assists with their rehabilitation by developing and improving work-related skills. Suitable • EPA licences, commonly related to wastewater prisoners also engage in work for the community that treatment and discharge provides environmental benefits. Examples of Corrections • bore, surface and groundwater licences Victoria 2014–15 community work with an environmental • trade waste permits and septic tanks licences. focus includes: Other communication and training initiatives included: • restoration work in Barmah National Park • re-instatement of the Environment Fund, a competitive • fuel reduction works in fire prone areas and re-fencing fund that enables staff to seek project funding for after fires to contain livestock, including around native proposals that will deliver environmental, social and growth areas financial benefits • participation in horticulture and landscaping courses, • a successful World Environment Day lunchtime quiz, obtaining new skills with over 80 staff participating, including regional staff • a range of land management activities, from picking up via video-conferencing rubbish to general grounds maintenance • provision of keepcups at inductions, training sessions • refurbishment of donated or abandoned bicycles and and events to reduce the amount of disposable provision of the bicycles to community groups cups entering landfill and to raise awareness of the • growth of seedlings (vegetables and native trees) and environment program distribution to community groups • the development of case studies and fact sheets • the recycling of wood off cuts into wildlife nesting boxes, • the promotion of, and response to, the environment toys, chairs, planters and benches annual survey, which survey raises awareness of, • conservation of locally indigenous vegetation; vermin and provides feedback on, the environment program. control to protect the orange-bellied parrot habitat Twenty-five per cent of staff participated. Of those who participated, 85 per cent felt that the department is • the use of recycled water and biodegradable cleaning committed to improving its environmental performance, products in the graffiti removal program. Since up 6 per cent from last year. Eighty per cent of staff said its inception in 2005, the program has removed, they considered the environment in their day-to-day conservatively, 15,344 bags of rubbish and 2,371,817 work practice. square metres of graffiti. The Landmate program is a joint venture with the 2015–16 communication and training target Department of Environment, Land, Water and Planning. Increase by 20 per cent, the number of staff who are aware Landmate has been in operation for over 20 years. Over of the department’s environment program, as per the results the years, approximately 1250 prisoners have planted in of the environment survey. excess of 500,000 trees; erected 2500 kilometres of fencing and provided valuable labour for a diverse range of other environmental and disaster recovery activities. In particular, Partnerships and land management in the north-east of the state, in the Beechworth and The department’s Community Correctional Services area Stanley areas, prisoners carried out fire reclamation works, works in partnership with other government departments, flood preparation and reparation work at Wangaratta, industries, education institutions and not-for-profit Nathalia, Numurka and Tallygaroopna, and cleaned up at organisations to develop and manage community work Benalla and Violet Town. programs using offender labour. Community work

177 8: Statutory compliance

Disclosure of major contract compliance Consultancies engaged in 2014–15 The department has disclosed all contracts entered into In 2014-15, there were 13 consultancies where the during 2014–15 for goods and services and construction total fees payable were $10,000 or greater. Total greater than $100,000 (including GST). The disclosed expenditure in relation to these consultancies was contracts can be viewed at tenders.vic.gov.au. $379,093.99 (ex GST). In 2014-15, there were five consultancies where the total fees payable were less Where contracts exceed $10 million, the contracts were than $10,000. Total expenditure in relation to these disclosed (in part or full) except for certain material that consultancies was $9,900.00 (ex GST). is categorised within one or more criteria contained in Part IV of the Freedom of Information Act 1982.

Total approved Expenditure Future project fee 2014–15 expenditure Consultant Purpose Start date End date ($ ex GST) ($ ex GST) ($ ex GST) Consultancies with a value greater than $10,000 Ernst & Young Unlawful Releases Review 14/07/2014 3/10/2014 192,646.00 192,646.00 $0.00 Effective Management Lake Tyers 10-year Review 22/06/2015 30/09/2015 64,364.00 27,636.36 36,727.64 Solutions Pty. Ltd. David Jones Independent Review of 1/07/2014 1/11/2014 50,000.00 7,527.27 42,472.73 Unlawful Releases KPMG Administrative Review Project 1/07/2014 31/07/2014 29,450.20 26,772.91 2,677.29 – Completion Final Report Price Waterhouse Advice in relation to proposed 15/08/2014 14/08/2015 25,500.00 20,400.00 5,100.00 Coopers legislation regarding funds in court Cube Management Strategic business planning 01/07/2014 30/06/2015 23,000.00 22,526.45 473.55 Consulting Pty Ltd advisory services Flanagan Brown-Greaves Capability framework & 05/05/2015 29/05/2015 22,727.28 22,500.00 227.28 Pty Ltd organisational design advisory services Benefit Management Benefits management 11/05/2015 12/06/2015 22,700.00 22,400.00 300.00 Pty Ltd framework advisory services Regina Hill Effective Consulting Services 26/06/2015 18/09/2015 28,000.00 0.00 28,000.00 Consulting Group Pty Cultivating Place and Cultivating People Project CDL & Associates Pre-release tender evaluation 01/08/2014 31/07/2015 15,000.00 14,915.00 85.00 Pty Ltd advisory services Plan 6 Group Pty Change management and 01/07/2014 30/09/2014 14,000.00 0.00 14,000.00 leadership advisory services Regina Hill Effective Consulting Services: 15/06/2015 15/08/2015 12,000.00 12,000.00 0.00 Consulting Group Pty Preparation of Area and Business Unit Strategic Plans CDL & Associates Pty Ltd Ravenhall Advisory Services 01/07/2014 30/06/2015 10,000.00 9,770.00 230.00 Consultancies with a values less than $10,000 001 IT Security Services PCI-DSS compliance proposal 13/04/2014 12/04/2015 6,000.00 0.00 6,000.00 Spencer Mcdonald Budgeting and accounting 12/03/2015 18/03/2015 5,000.00 5,000.00 0.00 Consulting Pty. Ltd. advisory services Cecilia Anthony Review of the Victorian 05/06/2015 11/06/2015 4,900.00 4,900.00 0.00 Consulting Charter of Human Rights The Trustee For JM & Aboriginal Cultural Audit 05/08/2014 30/08/2014 4,400.00 0.00 4,400.00 TDM Mifsud Family Trust Program

Appendices CDL & Associates Pty Ltd CV Enterprise Bargaining 01/08/2014 30/09/2014 2,000.00 0.00 2,000.00 Agreement costing

178 Department of Justice and Regulation Annual Report 2014–15

Government advertising expenditure

Table A17: Campaigns with a media spend of $150,000 or greater

Campaign Campaign summary Start/end date Expenditure 2014–15 ($ excluding GST)

Creative and Other Advertising campaign Research and Print and campaign (Media) development evaluation collateral expenditure

Summer Fire The Summer Fire Campaign November 2,878,992 182,876 140,150 0 201,431 Campaign aims to raise awareness of the 2014–March 2014–15 risk of fire among high-risk fire 2015 communities, prompts people to plan and prepare for fire and encourages people to leave early in the event of high-risk days and in the event of fire.

Law and The Law and Order campaign August– 962,795 139,371 73,693 15,000 6009 Order informed Victorians of legislative September campaign changes such as minimum 2014 sentences and the introduction of new laws targeting drug traffickers and crime gangs. The campaign focused on a number of messages, which included the abolition of suspended sentences, reforms to sentencing and tougher laws for offenders who were previously prosecuted for a drug trafficking offence.

Play it Safe Play it Safe by the Water is a December 697,946 183,510 152,021.33 0 27,650 by the Water community safety campaign that 2014–March 2014–15 aims to increase safety around 2015 water in a bid to reduce the number of fatal and near-fatal drowning incidents in Victoria. Advertising is an important element in raising mass awareness among priority audiences.

Corrections The Corrections Recruitment June– 891,333.73 445,987.50 43,148 11,158.40 108,611.33 Recruitment campaign aimed to increase the August 2014 campaign number of prospective applicants for prison officers, community corrections officers and field staff within the Victorian Corrections system. The campaign aimed to encourage a positive shift in attitudes and contemplation of a career in corrections. It also linked with job creation in regional Victoria. The advertising was targeted to areas close to prisons and community corrections offices, but was not linked to specific vacancies.

179 8: Statutory compliance

Campaign Campaign summary Start/end date Expenditure 2014–15 ($ excluding GST)

Creative and Other Advertising campaign Research and Print and campaign (Media) development evaluation collateral expenditure

RentRight RentRight is Consumer Affairs 20 February– 199,683 13,367 0 0 6795 tenant Victoria’s smartphone app 19 April 2015 campaign that provides information and functionality to help first time Victorian tenants with their renting rights and responsibilities. The 2015 RentRight tenant campaign was the second phase in Consumer Affairs Victoria’s renting communications strategy, focusing on driving downloads of RentRight. It followed the education campaign supporting the launch of the RentRight smartphone app in November 2013.

Retirement The retirement villages campaign 18 March– 185,727.16 47,677.40 22,600.00 11,449.20 26,824.00 villages was launched to educate and 30 June 2015 campaign inform retirees how to make a confident and informed retirement lifestyle decision.

Victorian Industry Participation Policy

The Victorian Industry Participation Policy (VIPP) applies to all government projects with a value of more than $3 million in metropolitan Melbourne and more than $1 million in regional Victoria. All shortlisted bidders who fall within the VIPP guidelines are required to complete a statement outlining the level of local content, and possible skills and technology transfers the project could create. If two or more bidders are found to offer equivalent value for money in the tender evaluation phase, the policy statements are used to identify the bidder who will have the best outcomes for Victorian industry.

New contracts in 2014–15 to which the VIPP applied

Contracts Regional/metro Value ($m) Jobs % Local Skills and technology content transfer

HM Prison Barwon—New High Regional 23.80 120 92 Three new apprenticeships and Security Unit- Head Contractor traineeships created

Risk Attestation for the Department of Justice and Regulation 2014–15

Attestation I, Greg Wilson certify that the Department of Justice and Regulation has complied with the Ministerial Standing Direction 4. 5. 5 – Risk Management Framework and Processes, with the exception of the obligation to ‘provide required below deductible claims data for self-managed claims to VMIA’, with which the department is partially compliant. To address this the department is in the process of implementing a below deductible claims system, which will be completed by 30 September 2015. The Department of Justice and Regulation Audit and Risk Management Committee has verified this view.

Andrew Dix Greg Wilson Acting Chair Secretary Audit and Risk Management Committee Department of Justice and Regulation 24/07/2015 30/07/2015

180 Department of Justice and Regulation Annual Report 2014–15

National competition policy to ensure compliance, including the issuing of building permits and occupancy certificates and inspection of works. The Department of Justice and Regulation continues to Agencies of the department are exempt from lodging comply with the requirements of the National Competition building plans with local councils. Policy. An exemption for prison industries was given by the Department of Premier and Cabinet as the primary focus Buildings maintained in a safe and serviceable of their activities is employing prisoners and undertaking condition vocational training. Mechanisms in place within the department to ensure that buildings are maintained in a safe and serviceable condition Statement of compliance with the include: Building Act 1993 • a contract with an external service provider to manage The Minister for Finance guidelines, pursuant to Section all building essential service tasks, in accordance with 220 of the Building Act 1993, promote better standards for legislative requirements buildings owned by the Crown and public authorities, and • the development of a departmental works program to require entities to report on achievements. The department form part of the overall departmental investment strategy is responsible for 84 properties that are used for legal, • a program to monitor and review effectiveness of these court, prison and emergency services. Other corporate mechanisms. entities within the Justice portfolio, such as the Country Fire Authority, the Metropolitan Fire and Emergency Services Existing buildings conforming to standards Board and Victoria Police, will report separately on building All departmental buildings comply with Minister for Finance compliance issues. guidelines. The mechanisms established by the department are intended to maintain compliance, the effectiveness of New buildings conforming to standards those mechanisms is continuously monitored. In 2014–15, all works controlled by the department were required to be conducted in accordance with the provisions Registered building practitioners of the Building Act 1993, relevant building regulations and The department requires building practitioners carrying out other statutory requirements. building works to be registered and for registration to be The department has established appropriate mechanisms maintained throughout the course of the works.

Table A18: 2014–15 Statement of compliance with the Building Act 1993 Total project Capital project budget ($m) Permits issued and works to be certified at end

Commenced

Dame Phyllis Frost Centre: additional beds and 33.8 Permits issued and works to be certified at end recommissioning beds

Melbourne Assessment Prison: upgrade of cellular 5.55 Permits issued and works to be certified at end accommodation

Barwon Prison: High Security Unit 35 Permits issued and works to be certified at end

Completed

Bull Street, Bendigo: refurbishment 12.07 Works certified at practical completion

Fulham Correctional Centre: 40 portable beds 2 Works certified at practical completion

Loddon Prison: 236 bed project 79 Works certified at practical completion

Loddon Prison: 30 portable beds 2 Works certified at practical completion

Marngoneet Correctional Centre: 21 portable beds 1 Works certified at practical completion

Dhurringile Prison: 126 bed project 13.3 Works certified at practical completion

Metropolitan Remand Centre: 100 bed project 32 Works certified at practical completion

Hopkins Prison: Corella Place expansion 2.5 Works certified at practical completion

Barwon Prison: Banksia Unit upgrade 4 Works certified at practical completion

181 8: Statutory compliance

Freedom of Information Act 1982 for documents in the possession of the Department of Justice and Regulation should be addressed to: The Freedom of Information Act 1982 allows the public a Freedom of Information Unit right of access to documents held by the department. Department of Justice and Regulation Activity and compliance 121 Exhibition Street Melbourne VIC 3000 For the 12 months ending 30 June 2015, the department received 698 applications. Of these requests, 12 were from Requests can also be lodged online at foi.vic.gov.au. members of parliament, 29 were from the media and the Requests for documents held by Justice portfolio statutory remainder were from the general public. bodies that are subject to Freedom of Information, such Of the total access decisions made by the department, 86.6 as Victoria Police, the Metropolitan Fire and Emergency per cent were granted in part or in full. The most frequently Services Board, the Country Fire Authority, the Emergency applied exemptions related to the protection of an Services Telecommunications Authority, the Victoria State individual’s personal affairs, information that is confidential Emergency Service and the Office of Public Prosecutions, under another Act (such as the Corrections Act 1986) and should be sent directly to the relevant statutory body. A list law enforcement information. Twenty-nine requests went of Justice statutory bodies that are subject to Freedom of to review by the Freedom of Information Commissioner, Information can be found at justice.vic.gov.au. with three appeals to the Victorian Civil and Administrative Access charges may apply for example, for photocopying Tribunal. and search and retrieval charges, once documents have The average time taken by the department to finalise requests been processed and a decision on access is made. was 26.4 days. The department processed 99.3 per cent Further information regarding Freedom of Information of requests within the statutory requirement of 45 days; the including the department’s Part II Information Statement can remaining 0.7 per cent of requests within 46–90 days. be found at justice.vic.gov.au. Making a request Telephone enquiries can be made to the department’s FOI unit on (03) 8684 0063. Access to documents may be obtained through written request to the Freedom of Information unit, as detailed in Protected Disclosures Act 2012 Section 17 of the Freedom of Information Act 1982. In summary, the requirements for making a request are: Information about how to make a disclosure about the conduct of the Department of Justice and Regulation • it should be in writing or its officers and relevant contact details are available • it should identify as clearly as possible which document on the Department of Justice and Regulation website at is being requested justice.vic.gov.au. • it should be accompanied by the appropriate application Number of disclosures notified to the Independent fee (the fee may be waived in certain circumstances). Broad-based Anti-corruption Commission from A Freedom of Information request needs to be made to the 1 July 2014 to 30 June 2015: 1. agency that holds the documents being requested. Requests

182 9: Monitoring of corrections

The Office of Correctional Services Review (OCSR) relation to the prisoners’ placement at a minimum- supports the Secretary to the Department of Justice security location. The review found that Corrections and Regulation to fulfil their statutory obligation under Victoria had taken appropriate action to reduce Section 7 of the Corrections Act 1986 to monitor the risk of further incidents. The OCSR made one performance in the provision of all correctional services recommendation in relation to improving prisoner to achieve the safe custody and welfare of prisoners engagement at Dhurringile Prison, which was and offenders. accepted and implemented.

The OCSR functions as an internal review and Desktop review of Corrections Victoria’s management assurance mechanism and provides the Secretary of alleged assaults by staff in prisons in 2012 and 2013 with accurate and current information on whether The OCSR reviewed Corrections Victoria’s risks to fulfilling their obligation are being appropriately management of alleged assaults by staff in 2012 and controlled and managed. This is to ensure that the 2013, including compliance with incident reporting correctional system operates in a fair, accountable requirements. The review found that prisons are and humane way that minimises risk to the managing allegations of assault by staff well and community, while meeting the needs of prisoners, compliance with procedures improved in 2013. The offenders and correctional staff. Where the OCSR review did not make any recommendations, but identifies opportunities for improvement, it makes identified several opportunities to further improve recommendations for change in consultation with compliance in relation to reporting, management of Corrections Victoria. CCTV and photographs, and referrals for medical The OCSR’s functions include: assessment following an incident.

• proactive reviews and inspections into areas of risk Review of the management of temporary beds in in correctional operations and services prisons in 2014 • reviews into serious incidents and allegations in the The review considered Corrections Victoria’s corrections system management of prisoner growth through the rollout • monitoring the performance of all prisons, of temporary beds across the system between Community Correctional Services and other September 2013 and June 2014. The OCSR found correctional facilities and services against service general goodwill across the locations in relation to delivery requirements temporary beds. • coordinating the Minister for Corrections’ volunteer Independent Prison Visitor Scheme Key risks identified by the OCSR included maintaining • reviewing prisoner deaths and some parolee safety and security and ensuring that infrastructure deaths. and services were adequate to meet the demands of increased prisoner numbers when the temporary The performance of the OCSR is overseen by the beds were in place in 2014. The OCSR made one independently chaired OCSR Advisory Committee, recommendation concerning contingency planning in comprising four independent members and three these areas should similar circumstances arise in future. senior departmental members. Review of recommendations made by the OCSR Reviews completed in 2014–15 The review identified key themes in OCSR The OCSR completed 11 reviews in 2014–15. recommendations over a two-year period and examined Corrections Victoria’s response to these Whole-of-prison review of the Judy Lazarus recommendations. The review found that OCSR Transitional Centre recommendations were most commonly made in the The OCSR conducted a whole-of-facility review of areas of prisoner welfare, safety, security and searching, the Judy Lazarus Transition Centre in March 2014. reflecting the unit’s focus on the areas presenting the The OCSR found a positive and engaging culture greatest risk to safe custody and welfare. at the Centre. Corrections Victoria accepted two The review found that 82 per cent of OCSR recommendations made by the OCSR, including recommendations were accepted, with 99 per cent of reviewing the resident mix to identify prisoners with those either implemented or proceeding in a manner the greatest transitional needs and consideration of a reflecting the OCSR’s intent. work program to develop job skills aligned with current labour market demands. Unannounced inspections of the management of valuable prisoner property Thematic review of escapes from Dhurringile Prison The OCSR conducted unannounced inspections to In 2013–14, there were eight escape incidents from assess compliance with policy in the management Dhurringile Prison. The OCSR reviewed Corrections of valuable prisoner property, such as credit cards Victoria’s management of the prisoners and response and jewellery. The inspections found that practices Appendices to the escapes and did not identify any issues in relating to the management of prisoner valuables

183 9: Monitoring of corrections

were generally robust, thorough and compliant with the identify if any further recommendations were required to relevant requirements. mitigate any previously unidentified risks. The OCSR made two recommendations in relation to the The review found the recommendations from the protection and regular reconciliation of property, which were independent review and audit would address a significant accepted and implemented. number of the issues raised by the incidents from November 2014 to January 2015. The OCSR made one Unannounced inspections of barrier control at medium- recommendation to improve communication between the security prisons Magistrates’ Court and Corrections Victoria in relation to The OCSR inspected compliance with, and effectiveness sentence consolidations, which was accepted and is being of, barrier control systems and processes at all four medium implemented. security prisons. The inspections found that barrier control practices were sufficient, with opportunities for greater Review of the management of seized contraband consistency in some areas. The OCSR recommended that The OCSR conducted unannounced inspections at Corrections Victoria review the benefits of portable ion four prisons to examine compliance with requirements scanners, which was accepted and completed. governing the management of seized contraband. The review found all prisons met the required standards in Management of at risk prisoners and compliance with regards to access to contraband and chain of custody, at risk procedures in medium security prisons and identified areas for potential improvement in regards The review examined medium security prisons’ compliance to photographing seized items and the frequency of with procedural requirements for prisoners at risk of internal auditing. suicide or self-harm. The review found that identification and timely referrals of at risk prisoners were generally good Prison performance data validation reviews across the locations, but identified room for improvement The OCSR undertakes Service Delivery Outcomes in the associated administrative tasks. (SDO) validation reviews at private prisons (annually) The review made two recommendations to enhance the and public prisons (every three years) in order to verify consistent management of at risk prisoners across public that performance data reported to the Commissioner, and privately operated prisons, which were accepted and Corrections Victoria is true and accurate. completed. In 2014–15, the OCSR conducted six prison validation reviews at the two private prisons and at four of the public Management of General Manager’s Disciplinary prisons. The reviews concluded that the monthly SDO data Hearings for psychiatrically unwell prisoners and reported by the prisons were generally true and accurate prisoners at risk and the documentation was comprehensively maintained This review considered whether the mental health of and oversighted by senior staff. prisoners at the time when they commit prison offences is The OCSR also conducted a validation review of incident given due consideration at subsequent internal disciplinary reporting by G4S Prisoner Transport Services to identify hearings. The review found inconsistencies in staff training unreported incidents during its reporting year. This review on this matter and room for greater clarity in reporting concluded that reporting was generally accurate and the requirements. documentation comprehensive. The review made two recommendations to improve the disciplinary processes for psychiatrically ill prisoners Incident reviews and prisoners at risk of suicide or self-harm. The The OCSR uses its incident review function to review recommendations focused on reviewing training materials the circumstances and management of critical incidents and ensuring that the disciplinary process accounts within prisons, Community Correctional Services and other for prisoners’ special needs and circumstances, in corrections facilities to provide the Secretary with objective line with procedural requirements. Corrections Victoria advice on the operation of the corrections system and accepted both recommendations and is in the process of opportunities for systemic improvement. implementing them. In 2014–15, the OCSR initiated 10 reviews and completed Review of unlawful releases and detentions between 22 reviews into a range of matters, including alleged November 2014 and January 2015 assaults by staff, alleged assaults by prisoners on The review analysed all instances of unlawful release and other prisoners, alleged sexual assaults, escapes from detention that occurred between November 2014 and correctional facilities, offender management by Community January 2015, in the context of recommendations made in Correctional Services, management of security breaches 2014 by an independent review of two previous unlawful and prisoner self-harm incidents. releases and an audit of Corrections Victoria’s management of unlawful releases and detentions. The review sought to

184 Department of Justice and Regulation Annual Report 2014–15

Reviews commenced in 2014–15 • In the interests of fair and informed internal prison disciplinary processes, Corrections Victoria agreed to The OCSR also began another four reviews during amend its policies to ensure that such proceedings 2014–15: take into account any special needs or circumstances • interaction of Family Violence Intervention Orders with of prisoners who commit prison offences while correctional services psychiatrically ill. • joint Corrections Victoria / OCSR review of the Charlotte Safety and security. Management Unit, Port Phillip Prison • Improvements were made to barrier control and security • review of Community Correctional Services completion procedures at a medium security prison after the OCSR rates for supervised court orders identified risks in areas such as scanning and searching • follow-up review of Corella Place. procedures. Major incident at the Metropolitan Remand Centre • New procedures were developed at a maximum On 30 June 2015, prisoners at the Metropolitan Remand security prison for undertaking risk assessments on cell Centre rioted. Corrections Victoria, in partnership with other compatibility prior to placing prisoners in shared cells to agencies such as Victoria Police, regained control of the reduce the risk of incidents between cellmates. facility in the early hours of 1 July 2015. During the incident • A maximum security prison strengthened its morning significant damage occurred to prisoner and staff areas count process by implementing procedures that require within the prison; a key focus of the start of 2015–16 will be staff to elicit a verbal and physical response from returning the Metropolitan Remand Centre to full operations. prisoners as a welfare and safety check. The riot will be the subject of a number of reviews, including Management of prisoners at risk of self-harm or suicide. by Corrections Victoria, the Office of Correctional Services • G4S Prisoner Transport Services established an ongoing Review and an independent review by former Victoria Police training program for its prisoner transport officers to Deputy Commissioner, Kieran Walshe. These reviews will enhance their capacity to manage prisoners at risk of consider all parties’ involvement in responding to the riot self-harm or suicide. and will help Corrections Victoria learn from the incident. • Corrections Victoria amended its procedures on the management of prisoners at risk of self-harm or Prisoner and offender deaths suicide to more accurately reflect the seriousness of There were 15 deaths in custody in Victoria between 1 self-asphyxiation and clarify processes for the use of July 2014 and 30 June 2015, compared with 11 in the restraints. previous year. The majority of deaths in this period have been or are likely to be deemed the result of natural Independent Prison Visitors causes. The OCSR prepares a report for the Secretary The Independent Prison Visitor Scheme, established in and Coroner on each prisoner death in Victoria and 1986, is coordinated by the OCSR. Independent Prison monitors coronial inquests and any recommendations. Visitors are volunteers and are appointed by the Minister for During 2014–15, the OCSR provided the Coroner with 17 Corrections for a five-year term. prisoner death review reports. There are currently 41 visitors, 28 of whom were appointed The OCSR also prepares a report for the Coroner in the in 2014–15 following the expiration of a number of event of the death of a parolee within three months of appointments in September 2014. The new volunteers release from prison or, at the request of the Coroner, include three Aboriginal visitors, bringing the number of for any person who has been in custody or under the Aboriginal visitors to five, which meets the target set out in supervision of Community Correctional Services. In the Aboriginal Justice Agreement. 2014–15, the OCSR prepared 16 reports for the Coroner into offender deaths. The volunteers regularly visit prisons to speak with prisoners and staff, and provide the Minister for Corrections with Impact of reviews independent and objective advice on the operation of In addition to the matters identified in the completed Victoria’s prisons from a community perspective. reviews noted above, a broad range of changes and During 2014–15, visitors provided more than 200 reports, improvements were made in 2014–15 as a result of OCSR reporting over 1300 matters regarding issues such as work. Examples include the following. missing prisoner property, accommodation and facilities, Prisoner welfare the introduction of the smoking ban, parole reforms, the impact of prisoner population growth on services and prison • A training package for the management of prisoners operations generally. with mental illness was extended to include staff at the Dame Phyllis Frost women’s prison.

185 10: Prison service statistics

2010–11 2011–12 2012–13 2013–14 2014–15 Average daily prison population 4586 4831 5120 5800 6350 Containment and Supervision—escapes (a) Number of escapes—total 0 1 3 7 5 Number of escapes—secure prisons 0 0 0 0 0 Number of escapes—open prisons 0 1 3 7 5 Number of escapes—other 0 0 0 0 0 Escape rate—total (per 100 prisoners) 0.0 0.02 0.06 0.12 0.08 Escape rate—secure prisons (per 100 prisoners) 0.0 0.0 0.0 0.0 0.0 Escape rate—open prisons (per 100 prisoners) 0.0 0.18 0.44 0.77 0.49 Number of attempted escapes 2 2 7 4 1 Containment and Supervision—deaths (b) Total number of deaths in custody 10 4 13 11 15 Death rate (per 100 prisoners) 0.22 0.08 0.25 0.19 0.24 Number of deaths from apparent unnatural causes 2 0 3 0 3 Death rate apparent unnatural causes (per 100 prisoners) 0.04 0.00 0.06 0.00 0.05 Total number of Aboriginal deaths in custody 1 0 0 1 1 Number of Aboriginal deaths from apparent unnatural causes 0 0 0 0 0 Aboriginal death rate apparent unnatural causes 0.00 0.00 0.00 0.00 0.00 (per 100 prisoners) Containment and Supervision—self-harm Self-mutilations (per 100 prisoners) 7.0 7.8 8.3 6.9 5.9 Attempted suicides (per 100 prisoners) 0.4 0.3 0.2 0.2 0.1 Containment and Supervision—assaults (c) Assault rate—assaults on prisoners by other prisoners 14.9 18.3 18.7 19.1 20.3 Assault rate—assaults on staff or other persons by prisoners 2.7 3.9 4.3 5.6 4.5 Containment and Supervision—illicit drugs Percentage of positive random drug tests (d) 3.43 4.23 4.38 5.40 4.28 Number of visits (average per prisoner) 23.6 23.0 23.0 21.8 22.0 Reparation—Employment (e) Employment rate—all prisoners (%) 87.2 88.9 89.1 88.1 89.3

Notes: (a) The escape categories conform with the current definition of escapes in theReport on Government Services prepared by the Steering Committee for the Review of Commonwealth/State Service Provision. Escapes by prisoners on unescorted leave, in work parties or activities outside the prison perimeter without direct one-to-one supervision are classified as ‘other’ escapes. All other escapes, including during transfers between prisons or escorts outside the prison under one-to-one supervision, are classified according to the security level of the prison. Five of the seven attempted escapes in 2012–13 were from a single incident. (b) The cause of all prisoner deaths is subject to confirmation by the Coroner. (c) The assault rate is based on the number of victims of all assaults. The measure in this report differs from the definition adopted for the Report on Government Services, which disaggregates assaults by seriousness but excludes minor assaults that did not result in bodily harm or require any form of medical intervention. (d) The rate for 2014–15 is preliminary as at 4 August 2015 and subject to change. (e) The prisoner employment rate is calculated as the proportion of all prisoners except those in full-time education or programs, remandees who chose not to work and others whose situation precludes their participation in work, for example, hospital patients, aged prisoners and prisoners in transit. Appendices

186 11: Correctional system performance

Escapes from custody in Victoria Self-harm, assaults and offender care in There were five escapes from prison custody in Victorian prisons Victoria during 2014–15. Four prisoners escaped from The rate of self-harm by prisoners in Victorian prisons the minimum security Dhurringile Prison, and one from in 2014–15 was the lowest for the five-year period the minimum security Tarrengower Prison. All were under review. Similarly, the attempted suicide rate was subsequently re-captured. also the lowest during the same period. The rate of assault on prisoners by other prisoners Deaths of prisoners in custody in Victoria was the highest for the period, while the rate of assault There were 15 deaths in prison custody in Victoria on staff by prisoners was the second highest for the during 2014–15. The provisional cause of death past five years. in 11 of the cases was natural causes, while two cases involved apparent suicide, one case apparent National Corrective Services performance misadventure and one case apparent unknown cause. comparisons The cause of all prisoner deaths is subject to National performance data from all Australian states subsequent confirmation by the Coroner. and territories are compiled to compare the efficiency and effectiveness of a range of government services, Drug testing in Victorian prisons including Corrective Services. The data are published Victoria operates one of the most extensive urine annually in the Report on Government Services by the testing programs in Australia. Steering Committee for the Review of Government Services Provision. The percentage of positive random drug test results decreased from 5.40 per cent in 2013–14 to 4.28 per Data published in early 2015 relating to the provision cent in 2014–15. This represented the first decrease of services in 2013–14 showed Victoria had the third in the percentage of positive tests recorded, after lowest imprisonment rate and the lowest community increasing continuously for five years. corrections rate in Australia. In 2014–15, the total number of drug tests of Victoria also had the highest overall prisoner prisoners, including random, general and targeted employment rate in the country, while the participation tests, was 32,754, an increase of 15.5 per cent when rate for prisoner education was the fourth highest in compared with the 28,353 tests in 2013–14. Australia and slightly above the national average. In addition, 17,355 breath tests were conducted in In Victoria in 2013–14, there were no prisoner deaths 2014–15, an increase of 33 per cent when compared from apparent unnatural causes, no escapes from with 2013–14 and about 56 per cent when compared secure custody and seven escapes from open with 2010–11. The number of breath tests returning custody. positive results increased from two in 2013–14 to three Comparative data for 2014–15 will be published in in 2014–15. early 2016. Appendices

187 12: Registry of Births, Deaths and Marriages

The Registry of Births, Deaths and Marriages (BDM) manages Victoria’s donor treatment registers (Central records in perpetuity all births, adoptions, marriages, Register and Voluntary Register). Other services relationships and deaths occurring in the state of include family history resources and products through Victoria and provides certificates of these events to Vic Heritage™ and civil marriage services at the individuals. It also registers changes of name and Victorian Marriage Registry.

Business operations

Registrable events 2014–15 Births (Births, Deaths and Marriages Registration Act 1996, Part 3) (a) 73,525 Changes of Name (Births, Deaths and Marriages Registration Act 1996, Part 4) 10,321 Marriages (Births, Deaths and Marriages Registration Act 1996, Part 5) 27,514 Deaths (Births, Deaths and Marriages Registration Act 1996, Part 6) 37,591 Registered relationships (Relationships Act 2008, Part 2.5) 1174 Revoked relationships (Relationships Act 2008, Part 2.5) 86 Adoptions (b) 77 Stillbirths 397 Total 150,685 Certificates issued 2014–15 Standard certificates (c) 245,999 Commemorative certificates 35,636 Historical certificates 13,938 Historical images 66,304 Total 361,877 Donor Treatment Registers Registrations of donor births to the Central Register (Assisted Reproductive Treatment Act 2008, Part 6) 505 Central Register applications 34 Voluntary Register applications 61 Total 600 Recognition of sex 2014–15 Persons born in Victoria (Part 4 A, Div 1) Approved applications 18 Refused applications 0 Subtotal 18 Victorian residents born elsewhere (Part 4 A, Div 2) Approved applications 8 Refused applications 0 Subtotal 8 Total 26

Notes: Data was generated 1 July 2015. Data may vary depending on the time and date they are generated. Full definitions of data values are available by contacting BDM via bdm.vic.gov.au (a) Total number of births registered in Victoria, including those that occurred in a previous year but were registered for the first time in the reporting period. Figures exclude stillbirths and incomplete registrations (for example where BDM is yet to receive formal notification from either the parents or medical facility where birth occurred). (b) Total number of adoption orders handled. (c) Total number of standard certificates issued, including those issued with commemorative birth certificate orders. Appendices

188 13: Inspector-General for Emergency Management

The Inspector-General for Emergency Management its subcommittees and the Emergency Services (IGEM) is a dedicated assurance entity created through Leadership Group. the reform of Victoria’s emergency management Development of the framework fulfils a legislative arrangements. requirement of IGEM and complements and supports Established on 1 July 2014 under the Emergency government’s broader reforms to strengthen the Management Act 2013 (the Act), IGEM’s activities state’s emergency management arrangements. contribute to building a sustainable and efficient emergency management system that minimises the Continuous improvement through likelihood, effect and consequence of emergencies on evaluation and review the Victorian community and ultimately contributes to a safer and more resilient Victoria. In supporting achievement of its legislated objectives, IGEM undertakes systemwide reviews based on an In July 2014, government announced the annual forward plan developed in consultation with the appointment of Mr Tony Pearce as Victoria’s first emergency management sector. Inspector-General. In developing the 2015 Annual Forward Plan Role of the Inspector-General for of Reviews, IGEM consulted with departmental Emergency Management Secretaries and the heads of emergency management agencies on key strategic system IGEMs legislative objectives are to: level issues and risks affecting the emergency management sector. • provide assurance to the government and the community in respect of emergency management The results of consultations were assessed against arrangements in Victoria relevant criteria and resulted in the following reviews. • foster continuous improvement of emergency • Connecting with and preparing communities for management in Victoria. major emergencies in Victoria. These two objectives are integrated into practice • Victoria’s emergency management sector‘s through all IGEM’s work. To deliver on its legislative preparedness for major emergencies. mandate, IGEM undertakes monitoring, review and • Community recovery following the 2013–14 evaluation of Victoria’s emergency management Victorian bushfires. arrangements and the sector’s performance, capacity and capability. Following provision of the 2015 Annual Forward Plan of Reviews to the Minister for Emergency Services Through reliable, evidence-based information, in February, IGEM is conducting the three reviews in IGEM identifies what is working well and where collaboration with the emergency management sector, improvements can be made. to be completed by the end of 2015. IGEM works with its emergency management partners and Victorian communities to identify opportunities Proposing a new way forward in bushfire fuel to improve the performance of the emergency management management sector. In early 2015, the Minister for Environment, Climate Change and Water and the Minister for A coordinated approach to assurance Emergency Services requested IGEM to conduct a review into performance targets for bushfire fuel In June 2015, government launched the Monitoring management on public land and specifically to make and Assurance Framework for Emergency recommendation whether to continue the hectare- Management (the Framework), developed by IGEM based target or adopt a bushfire risk-reduction in consultation with its emergency management target. partners. Following recommendations made by the 2009 As the overarching assurance framework for the Victorian Bushfires Royal Commission (VBRC), the emergency management sector, it clarifies the roles hectare-based target for fuel reduction through and responsibilities associated with assurance planned burning was implemented in Victoria. The activities and provides the sector with a starting point practice of planned burning and the ability of the state for a coordinated and collaborative approach to to reach the target has been widely examined through sector-wide assurance. the activities of the Bushfires Royal Commission In developing the Framework, IGEM undertook Implementation Monitor (BRCIM) and other government extensive stakeholder consultation, including inquiries. The target was considered the best available agencies, departments and organisations in the option at the time the VBRC made its findings. emergency management sector, all members of The review sought a range of opinions and technical Appendices the State Crisis and Resilience Council (SCRC), information from the responsible departments, the

189 13: Inspector-General for Emergency Management

emergency management sector, subject matter experts • Mt Ray-Boundary Track Fire January–March 2014 and individuals and organisations with expertise and Community Report. knowledge of bushfire fuel management on public land. Collectively, the reports identified opportunities for IGEM also commissioned an independent policy evaluation improvement through 86 specific actions for the to compare the hectare-based target with a bushfire emergency management sector. risk-reduction target. This assessment, the technical information and opinion provided strong evidence for On 4 August 2014, government requested IGEM to IGEM to conclude that a risk-reduction target is the most investigate and prepare a compliance report on the effective form of performance target for bushfire fuel progress and implementation of identified actions from management on public land to protect life and property the 2013–14 fire season reports. The identified actions and guide investments in fuel reduction burning. related to: The report was presented to government in April and • road traffic management subsequently released publicly on 21 May. • community involvement in fire preparedness, response and recovery The report makes recommendations, including a shift away from a hectare-based fuel reduction target with a move • initial attack and utilisation of resources toward a risk-reduction approach where the most at-risk • cross border fire arrangements areas are prioritised for fuel reduction. • other systemic issues identified from the 2013–14 fire season reports. Government will provide a full response to the Inspector- General’s report in late 2015. On 7 October 2014, IGEM provided government with its 2013–14 Fire Season Compliance Report, commending Monitoring of Victoria’s emergency management the commitment and progress made towards arrangements implementing the vast majority of the 86 actions by the sector. The willingness of the East Gippsland communities Each year Victoria’s emergency management to share their views and knowledge in the community organisations conduct reviews as part of a continuous consultations was an integral element to the evidence improvement program that highlights the successes base of the report. and the improvements required within the emergency management sector. As requested by government, IGEM continues to monitor implementation of remaining actions from this report, There is a need to provide assurance to government including a report on progress throughout the 2014–15 fire and the community that lessons identified through these season, to be delivered before the 2015–16 fire season. review processes turn into sustainable improvements to emergency management arrangements that make a lasting Hazelwood Mine Fire Inquiry difference. In February and March 2014, a fire burned in the With the establishment of IGEM, the state now has a Hazelwood Coal Mine for 45 days. Later in March, dedicated entity to monitor the progress, implementation an independent inquiry into the circumstances of the and sustainability of recommendations and actions to Hazelwood Coal Mine Fire was established. ensure that they are being implemented, and are effective and sustainable in the long term. The Hazelwood Mine Fire Inquiry Report was tabled in the parliament on 2 September 2014. In response to The 2013–14 Fire Season Compliance Report Recommendation One of the Inquiry Report, government appointed Mr Neil Comrie AO, APM, as the Hazelwood The 2013–14 Victorian fire season was one of significance, Mine Fire Inquiry Implementation Monitor. challenging both emergency management organisations and communities. Among 78 significant fires were the In October 2014, government released its Goongerah–Deddick Trail and the Mt Ray–Boundary Track Implementation and Monitoring Plan setting out how fires in East Gippsland. the recommendations and affirmations of government actions—with respect to the government’s regulation of, In response to community concerns and as preparation for, and response to future emergencies—will part of established debriefing and observation be implemented and monitored. collection processes, the Emergency Management Commissioner and the emergency management IGEM monitors the affirmations of Victorian Government sector compiled or contributed to three reports related actions that fall within the scope of IGEM’s role and to that fire season: legislated objectives: • Post Season Operations Review Fire Danger Period • provide assurance to the government and the 2013–14 (Post-Season Operations Review) community in respect of emergency management • Goongerah-Deddick Trail Fire January–March 2014 arrangements in Victoria Community Report • foster continuous improvement of emergency management in Victoria.

190 Department of Justice and Regulation Annual Report 2014–15

The affirmations directed at the government in the Performance of the Emergency Services Inquiry Report are based on the actions set out by the Telecommunications Authority government in its second submission. Many of these actions are underway as part of the government’s reforms On 1 July 2014, IGEM assumed responsibility for determining to emergency management, and therefore monitoring a standards for and monitoring the non-financial performance number of these actions was already being undertaken by of the Emergency Services Telecommunications Authority IGEM in its legislative capacity. (ESTA). This responsibility was previously undertaken by the The Implementation Monitor and IGEM will report annually (former) Emergency Services Commissioner. in a consolidated report, prepared by the Implementation The emergency services organisations specify the services Monitor. they require, then work collaboratively with ESTA to propose a set of standards to IGEM for determination in The 2009 Victorian Bushfires Royal Commission accordance with Section 30 of the Emergency Services Since his appointment in 2010, Bushfires Royal Telecommunications Authority Act 2004 (the Act). Commission Implementation Monitor Mr Neil Comrie On 1 July 2014, the Inspector-General signed new AO, APM produced a total of four progress updates on determinations for the quantitative and qualitative implementation actions in relation to the 2009 Victorian performance standards for ESTA in accordance with the Bushfires Royal Commission recommendations. Act. These standards replaced the previous determinations In his final report, tabled in August 2014, he advised that made by the Emergency Services Commissioner. implementation of 56 of the 67 recommendations was ESTA provides IGEM with monthly performance reports. complete. IGEM monitors ESTA’s performance through analysis of Following the conclusion of Mr Comrie’s appointment these monthly reports and meetings with its operational in 2014, government asked IGEM to monitor management. IGEM also provides ESTA with commentary recommendations and related actions from the 2009 on its performance and, as required through the Emergency Victorian Bushfires Royal Commission reported as ongoing Management Act 2013, provides assurance to the Minister in his 2014 annual and final report. for Emergency Services on performance matters as required. The progressive implementation of the 67 As a statutory entity, ESTA also reports performance against recommendations has provided a platform for continuous these standards in its annual report. improvement of the state’s emergency management arrangements, and consistent with the provisions of the Performance against standards Emergency Management Act 2013, it is fitting that as the Under Section 71 of the Emergency Management Act state’s new emergency management assurance body, 2013, IGEM is responsible for “monitoring and investigation IGEM continues monitoring implementation of the remaining of the performance (in matters that are not financial recommendations and actions. matters) of the Emergency Services Telecommunications Undertaking this monitoring activity provides evidence- Authority in relation to the provision of services by the based, meaningful and timely information for the sector, Authority to emergency services and other related services government and the community about the progress of organisations”. the emergency management sector in addressing the ESTA reported a high level of compliance against all recommendations and associated actions. standards relating to answering emergency category A and IGEM will provide its first progress report to the Minister B calls within five seconds, primarily calls made through for Emergency Services by 1 August 2015, and will do so Triple Zero (000). annually thereafter until all of the implementation actions In all months and for all emergency services agencies, ESTA are complete. met or exceeded emergency call answer compliance. An exception, was metropolitan ambulance emergency calls, Supporting emergency management reform which, during August and September, were 5.5 per cent The Victorian Emergency Management Strategic Action and 5.9 per cent respectively below the benchmark of 90 Plan drives the government’s emergency management per cent. reform agenda, sets priorities, and assists in determining Throughout the year, ESTA also met most of its dispatch investment decisions. Under the Emergency Management performance standards. Act 2013, IGEM has a specific role to monitor and report to the Minister for Emergency Services on the implementation Ambulance Victoria Code 1 dispatch of the Strategic Action Plan. performance IGEM is working closely with Emergency Management The performance benchmark requires ESTA to dispatch 90 Victoria to ensure a streamlined approach to monitoring and per cent of metropolitan ambulance code 1 events within reporting on the plan’s implementation. 150 seconds.

191 13: Inspector-General for Emergency Management

Throughout the financial year ESTA achieved steady report from ESTA before determining whether IGEM needs improvements in metropolitan ambulance code 1 dispatch to undertake its own investigation or, referral to another performance, achieving a 21-month high of 80.7 per authority. cent in May 2015; however, it did not meet the dispatch IGEM reviews ESTA’s report findings and recommendations performance benchmark in any given month to ensure that they identify the root cause and that During the year, IGEM placed a specific focus on this recommendations made address identified performance area, continuing to engage with ESTA and Ambulance issues. Victoria for performance improvement. IGEM also supports During 2014–15, IGEM screened 79 potentially significant performance improvement through participation on the ESTA performance-related issues or complaints, including Victorian Government’s Ambulance Policy and Performance undertaking one formal investigation. For context, this Consultative Committee’s Call Taking and Dispatch Working represents one incident for every 30,549 calls answered Group. by ESTA during the year. The majority of these events were ESTA has also undertaken a range of internal reviews reported directly to IGEM, demonstrating the commitment in relation to its dispatch processes, identifying strong in working together to improve emergency management link between its ability to meet this dispatch standard arrangements. and availability of Ambulance Victoria’s resources. A range of strategies to address the performance gap ESTA implementation monitoring has been collaboratively developed between ESTA and Through monitoring ESTA’s implementation of Ambulance Victoria. However, these strategies have some recommendations from investigations—both internal interdependencies that are not within the control of ESTA. and external reviews and enquiries—IGEM is providing The continuing work of the Ambulance Policy and assurance that recommendations and related actions are Performance Consultative Committee will provide effective and sustainable in the long term. strategic direction for both these organisations to address IGEM has continued to monitor implementation of performance issues in 2015–16 and beyond. recommendations from the Emergency Services Investigations Commissioner’s 2013 report into the series of computer aided dispatch (CAD) outages. ESTA has implemented the In accordance with its legislative continuous improvement majority of recommendations from this review, including the function, IGEM has worked closely with ESTA in assuring its key projects relating to upgrading its CAD system, which internal quality assurance and investigation processes are was implemented in October 2014. effective and fit-for-purpose. Since the review, ESTA experienced only one unplanned IGEM screens each potentially significant incident and outage during the 2014–15. determines if it is appropriate to await a final investigation

192 14: Additional departmental information available on request

The Directions of the Minister for Finance require a 9 details of assessments and measures undertaken range of information to be prepared in relation to to improve the occupational health and safety of the financial year. This information, listed below, has employees been collected and, subject to the provisions of the 10 a general statement on industrial relations within Freedom of Information Act 1982, is retained by the the entity and details of time lost through industrial department: accidents and disputes 1 a statement that declarations of pecuniary interests 11 a list of major committees sponsored by the entity, have been duly completed by all relevant officers the purposes of each committee and the extent to 2 details of shares held by a senior officer as which the purposes have been achieved nominee or held beneficially in a statutory authority 12 details of all consultancies and contractors or subsidiary including: 3 details of publications produced by the entity about »» consultants or contractors engaged itself and how these can be obtained »» services provided 4 details of changes in prices, fees, charges, rates »» expenditure committed to for each and levies charged by the entity engagement. 5 details of any major external reviews carried out on The information is available at justice.vic.gov.au. the entity Further enquiries should be directed to: 6 details of major research and development Director activities undertaken by the entity Strategic Communication Branch 7 details of overseas visits undertaken, including Department of Justice and Regulation a summary of the objectives and outcomes of GPO Box 4356 each visit MELBOURNE VICTORIA 3000 8 details of major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the entity and its services Appendices

193 Published by Department of Justice & Regulation, Victoria, Australia © Copyright State of Victoria 2015, Department of Justice & Regulation Authorised by the Department of Justice & Regulation, 121 Exhibition St, Melbourne October 2015

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