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Our Finance Policies and Procedures

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Our Finance Policies and Procedures Our Finance Policies and Procedures The following pages provide an overview of the Department’s financial position and related activities including: financial resource summary asset management and risk management strategy Government procurement contribution and grants. Department of Premier and Cabinet Annual Report 2007-08 126 Financial Resources Summary In 2007-08, on a cash basis, the outputs of the Department of Premier and Cabinet and Ministerial and Parliamentary Support were funded as follows: $'000 Opening Balance 18,494 Receipts Consolidated Fund: Recurrent Services 68,490 Reserved by Law 5,695 Works and Services 249 Total Consolidated Fund 74,434 Other Receipts Proceeds from sale of assets/equipment …. Grants 51 Special Capital Investment Fund 1,520 Departmental revenue not paid into Consolidated Fund 26,660 GST collections and input tax credits 2,667 Proceeds from the disposal of non-financial assets 8 Other cash receipts 930 Total Other Receipts 31,836 Less: Transfer to the Consolidated Fund (16) TOTAL SOURCE OF FUNDS 124,748 Less: Closing Balance Approved provisions (185) Other (12,610) Total Closing Balance (12,795) TOTAL FUNDING OF OUTPUTS 111,953 Full details are shown in the Financial Statements. Department of Premier and Cabinet Annual Report 2007-08 127 Asset Management, Pricing and Risk Management Policies Major capital projects There were no capital works undertaken during 2007-08. Asset management policies The Department, excluding TMD, records heritage items and purchases of equipment, furniture and fittings with a value greater than $10,000 as assets. Purchases of these items valued at less than $10,000 are recorded as expenses. For business purposes, TMD maintains an asset recognition threshold of $5,000. Assets are recognised and valued on an individual basis, as follows: Non-current physical assets are valued in accordance with AASB 116, Property, Plant and Equipment, and Treasurer's Instructions. Minor equipment and other non- current assets are valued at cost. Heritage assets are valued on a fair value basis. The written-down book value of assets is determined by depreciating them over the period of their expected useful economic life, using the straight-line method. The useful economic life is three to five years, depending on the asset and depreciated in the year of acquisition or from the time the asset is ready for use. Heritage assets are not depreciated. Pricing policies for goods and services The Department’s pricing policy is based on full cost recovery. Full cost includes direct salaries, employer superannuation contributions, payroll tax, all operating expenditure, rental, fringe benefits tax, provision for annual and long service leave entitlements and in some cases provision for capital reinvestment. TMD charges for telecommunications and computing services and receives no government appropriation from the Consolidated Fund. The Office of the Parliamentary Counsel charges for drafting services as follows: 1. Full costs are charged when: the instructing agency is off budget, a statutory authority or a government business enterprise the legislation being drafted is part of a major project which will result in direct financial return to the State non-consolidated external funding is available. 2. Partial costs are charged when: it is a major review of legislation or subordinate legislation instructions are provided without adequate lead time. The Training Consortium (TTC), incorporated within the Public Sector Management Office, charges on a full cost recovery basis for training services. Department of Premier and Cabinet Annual Report 2007-08 128 Service Tasmania receives funding from government departments, Government Business Enterprises, other external organisations such as Marine and Safety Tasmania (MAST), local government, Australian Government agencies and the private sector for services delivered through Service Tasmania shops. Risk Management Policies As part of the Department’s risk management strategy the following activities were undertaken during 2007-08: purchased insurance where it was indicated that it would minimise risk reduced the cost of insurance premiums by retaining a significant part of each risk to a maximum total exposure in one year of $50,000 required all landlords and building managers of premises leased and occupied to minimise risk to buildings from the elements and from intrusion maintained a process for the handling of confidential documents maintained budgetary control by using regular monitoring and reporting and devolving financial management responsibility to managers. Department of Premier and Cabinet Annual Report 2007-08 129 Government Procurement The Department receives requests for financial assistance from a variety of organisations within the community. Allocation of funding is made from funds appropriated to the Department for specific grant programs or to fund grants of a miscellaneous nature that do not readily fall within the responsibility of other government agencies. The amounts noted below are GST exclusive. Summary of Participation by Local Business 2006-07 2007-08 Total number of contracts awarded. 9 15 Total number of contracts awarded to Tasmanian suppliers. 6 10 Total value of contracts awarded. $34,824,143 $8,051,937 Total value of contracts awarded to Tasmanian suppliers. $3,787,225 $922,437 Total number of tenders called and written quotation 8 6 processes run. Total number of bids and/or written quotations received. 43 70 Total number of bids and/or written quotations received 20 27 from Tasmanian businesses. During the 2007-08 financial year six exemptions were granted in accordance with the Government Procurement Guidelines. Three contracts were extended. The panel of preferred providers of marketing services contracts (three suppliers Clemenger Tasmania Pty Ltd, Corporate Communications and Custard Pty Ltd t/as Red Jelly) ended in May 2008. A panel of preferred marketing service providers were appointed for the period May 2008 to April 2010, to provide services to the Department of Premier and Cabinet and the Department of Health and Human Services. The panel includes the following suppliers: Clemenger Tasmania Pty Ltd Corporate Communications (Tas) Pty Ltd Red Jelly Gray Matters Advertising Helen Bryen: Designer Futago Blue Box. Department of Premier and Cabinet Annual Report 2007-08 130 Contracts in 2007-08 with a value of $50,000 or over Contractor Location Description Period Total value ($) Clemenger Hobart TAS Production distribution and Nov 2004 443,298 Tasmania Pty Ltd marketing of the Seniors Card to Directory of Savings and its the Nov 2008 Supplement. Empower Kent Town Human Resources System Apr 2004 286,527 SA Support. to Mar 2009 Gartner Australasia Melbourne Provide services to the Oct 2005 390,000 Pty Ltd VIC Tasmanian Government and to related organisations on Sept 2008 business and technical aspects of information and communications technology. SAIC Pty Ltd Carlton Provision of system support for Jan 2006 350,000 VIC the EnAct Legislation System. to Jun 2009 Red Jelly Hobart TAS Environment Protection Nov 2007 57,706 Authority (EPA) advertising to campaign. Jan 2008 Clemenger Hobart TAS Advertising and promotional May 2007 67,356 Tasmania Pty Ltd services for Seniors Week to 2007. Oct 2007 Clemenger Hobart TAS Communications campaign on Jul 2007 189,289 Tasmania Pty Ltd the proposed Pulp Mill. to Aug 2007 Clemenger Hobart TAS Tasmania brand promotion. Jan 2008 671,139 Tasmania Pty Ltd to Jun 2008 Clemenger Hobart TAS Climate change campaign. Mar 2008 132,054 Tasmania Pty Ltd to Dec 2008 Clemenger Hobart TAS Tasmania Together Youth Jul 2007 69,151 Tasmania Pty Ltd Challenge. to Aug 2007 Clemenger Hobart TAS Advertising and promotional Apr 2008 63,395 Tasmania Pty Ltd services for Seniors Week to 2008. Oct 2008 Red Jelly Hobart TAS Government Concessions Guide. May 2008 58,455 to Jul 2008 Corporate Express Hobart TAS Provision of new photocopiers Feb 2008 650,000 Australia Ltd and their support and to (Konica Minolta) maintenance. Dec 2012 Department of Premier and Cabinet Annual Report 2007-08 131 Contractor Location Description Period Total value ($) Deloitte Touche Hobart TAS Internal audit services. Jan 2008 135,000 Tomatsu to Dec 2010 Prologic Pty Ltd Hobart TAS Purchase of software licences Apr 2008 137,437 and technical support for to INGRES database. Apr 2009 Alphawest Ltd North Ryde VMWare, Server Visualisation Apr 2008 1,022,500 NSW Software. to Apr 2011 Consultancy contracts in 2007-08 with a value of $50,000 or over Consultant Location Description Period Total value ($) Profile Management Sydney Services to promote the Mar 2004 429,846 Consultants Pty Ltd NSW interests of the Tasmanian to Government in Canberra. Mar 2009 Clive Willingham Kingston Industrial Relations advice to Mar 2006 90,000 TAS the Department and other to agencies. Aug 2007 SWECO PIC Finland Assessment of the Northern Apr 2007 460,000 Tasmania Pulp Mill Project to against environmental Aug 2007 emission limit guidelines. Parsons Brinkerhoff Sydney Tasmanian Government Mar 2008 285,000 NSW greenhouse gas emissions to inventory, reduction, Aug 2008 monitoring and reporting program. Millward Brown Pty St Kilda VIC Conduct and report on the May 2007 102,000 Ltd Tasmanian Community to Survey. June 2008 Department of Premier and Cabinet Annual Report 2007-08 132 Common use contracts Total value Contract Contractor Location Period ($) Tasmanian Government Telstra Sydney Mar 2006 4,000,000 Mobiles Corporation NSW to Mar 2008 Networking Tasmania II Telstra Melbourne Jun 2007 30,000,000 Corporation VIC to May 2010 Networking Tasmania II Broadband Hobart TAS Jun 2007 300,000 Wireless Pty Ltd to trading as BBW May 2010 Telecom Networking Tasmania II Aurora Energy Pty Hobart TAS Jun 2007 1,500,000 Ltd to May 2010 Tasmanian Government Optus Mobile North Ryde Jun 2008 5,000,000 Mobiles NSW to Apr 2011 Whole of Government IBM Limited Sydney Jan 2008 720,000 Lotus Notes Licensing NSW to Agreement Dec 2010 Department of Premier and Cabinet Annual Report 2007-08 133 Contributions and Grants The Premier and Ministers often receive requests for financial assistance from a variety of organisations within the community.
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