COMMONWEALTH GRANTS COMMISSION
Annual Report
2002-03
CANBERRA
Oc Australian Government 2003
ISSN 1322-7521
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without written permission from the Australian Government, available from AusInfo. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Government Information Access, GPO Box 84, Canberra ACT 2601.
This document does not necessarily conform to Australian Government style.
A copy of this annual report can be obtained by visiting the Commission’s web site at http://www.cgc.gov.au/cgc_annual_report.htm
Contact Officer
Enquires about this report should be directed to:
Mr Owen Rodda Director Administrative Support Services Commonwealth Grants Commission Cypress Court 5 Torrens Street BRADDON ACT 2612
Telephone: (02) 6229 8825 Facsimile: (02) 6229 8821 Email: [email protected]
Commonwealth Grants Commission
Chairman Alan G Morris
Cypress Court 5 Torrens Street Braddon ACT 2612 Tel: (02) 6229 8811 Fax: (02) 6229 8809 Internet: www.cgc.gov.au Email: [email protected]
TABLE OF CONTENTS
Page
OVERVIEW 1
Major outcomes and Commission performance — 2002-03 1 The financial results for 2002-03 1 The outlook for 2003-04 2
CHAPTER 1 THE COMMISSION AND ITS WORK 3
The Commission and its divisions 3 Organisational arrangements 4 Outcome groups 4
CHAPTER 2 PERFORMANCE OF THE COMMISSION IN 2002-03 6
Outcome — Fiscal Equalisation 6 2003 Update of State revenue sharing relativities 7 2004 Review of methods used to calculate relativities 10 Report on Jervis Bay Territory 11 Quality assurance 11 Resources 12 Information dissemination 12 Financial results 13 The Commission’s performance and social justice 13
CHAPTER 3 MANAGEMENT AND ACCOUNTABILITY 14
Corporate governance 14 The Commission and its employees 14 Relationship with the Department of Finance and Administration 14 Corporate plan 14 Risk management and fraud control 15 Reporting structures and responsibilities 15 Organisational chart 16 Committees 17 Internal and external scrutiny and compliance 18 Managing and developing human resources 19 Certified agreement 21 Australian workplace agreements 21 Training and development strategies 22 Other resource management matters 24 Purchasing 24 Asset management 24 Advertising and market research 24 Use of consultants 24
i
Ecologically sustainable development and environmental performance 25 Competitive tendering and contracting 25 Discretionary grants 26 Contact officer 26 Postal address 26 Internet address 26 ATTACHMENT A: COMMONWEALTH GRANTS COMMISSION ACT 1973 27
ATTACHMENT B: UPDATE OF STATE REVENUE SHARING RELATIVITIES, 2003 UPDATE, TERMS OF REFERENCE 43
ATTACHMENT C: REVIEW OF GENERAL REVENUE GRANT RELATIVITIES, 2004 TERMS OF REFERENCE 46
ATTACHMENT D: INQUIRY INTO THE FINANCING OF WORKS AND SERVICES IN THE JERVIS BAY TERRITORY, TERMS OF REFERENCE 48
ATTACHMENT E: INFORMATION DISSEMINATION 51 Reports 51 Working papers 52 Discussion Papers 52 Papers presented to conferences and seminars 54 Visitors to the Commission 54 Compliance with Senate Orders 54 ATTACHMENT F: MISSION STATEMENT AND STRATEGIC PLAN 55
ATTACHMENT G: FREEDOM OF INFORMATION ACT 1982 SECTION 8 STATEMENT 57
ATTACHMENT H: OCCUPATIONAL HEALTH AND SAFETY 60
ATTACHMENT I: CONSULTANTS ENGAGED DURING 2002-03 62
ATTACHMENT J: COMMONWEALTH DISABILITY STRATEGY 64
ATTACHMENT K: FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 65
GLOSSARY 98
INDEX 100
ii
OVERVIEW
Major outcomes and Commission performance — 2002-03
1. In terms of the outcome reporting framework applied in the 2002-03 Budget, the Commission had only one outcome during 2002-03 — fiscal equalisation. Its achievements during the year were as follows.
(i) The Report on State Revenue Sharing Relativities, 2003 Update was completed and presented to the Minister. Its recommendations were considered at the Ministerial Council for Commonwealth-State Financial Relations in March 2003 and used in the distribution of GST revenue and health care grants to the States and Territories in 2003-04. (ii) The Commission continued work associated with the review of the methods of calculating the relativities used to distribute GST and health care funding to the States — the report on this task is due in February 2004. (iii) The Report on Jervis Bay Territory was completed and presented to the Minister on 31 July 2002. That inquiry examined the costs of providing Australian standard levels of State and local government- type services to the residents of the Jervis Bay Territory.
The financial results for 2002-03
2. The Commission’s financial results for 2002-03 are summarised below.
Outcome 2002-03 2002-03 Variance Allocation Expenses $m $m $m Fiscal equalisation 5.385 5.669 (0.284)
Total 5.385 5.669 (0.284)
1 Overview
3. Expenses during 2002-03 on the fiscal equalisation outcome were higher than the allocation due to essential research and consultation tasks arising from the latter stages of the major review. These led to higher staffing requirements, accumulating increases such as the Comcover premium and higher overall administration costs.
4. The Commission’s expenditure pattern has a cyclical nature over a five year period. However, current funding is on a straight line basis. In years prior to 2002-03 the Commission has produced operating surpluses. However, 2002-03 and 2003-04 are the high point in the review. This resulted in an operating deficit for 2002-03 and a further operating deficit is also likely for 2003-04. There are sufficient cash reserves to meet commitments as they fall due.
5. To address the funding issues and prevent losses in subsequent years, an input base review will be completed in 2003-04. Discussions with the Department of Finance and Administration are continuing in this regard.
The outlook for 2003-04
6. In February 2004, the Commission will report on its major review of the methods applied in the distribution of GST revenue and health care grants to the States - the 2004 Review.
7. The Commission’s budget is being placed under extreme pressure by the essential tasks associated with completing that review, including the need to meet the demands of the States for high quality research across a wide range of issues and greater disclosure and major cost increases in superannuation and insurance.
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CHAPTER 1
THE COMMISSION AND ITS WORK
1. The Commission is a statutory authority operating under the Commonwealth Grants Commission Act 19731. It is an advisory body that responds to terms of reference from the Minister for Finance and Administration. Terms of reference for inquiries relating to the finances of the States2 are decided after discussions between the Australian Government and the States, conducted largely through their Treasuries. Terms of reference for other inquiries are developed by relevant Australian Government agencies.
2. The Commission’s main function is to recommend the share each State should receive of the pool of goods and services tax revenue and health care grants made available by the Australian Government. These recommendations are considered at meetings of the Ministerial Council for Commonwealth-State Financial Relations.
3. From time to time, the Commission has also reported on the finances of Australia’s Territories (including the non-self governing Territories), on local government matters and the financing of services for Indigenous people.
The Commission and its divisions
4. The members of the Commission during 2002-03 were:
Chairman (part-time): Mr Alan Morris, until 30 June 2004. Members (part-time): Mr Len Early, PSM, until 24 August 2004. Mrs Hylda Rolfe, until 24 November 2004. Prof Ken Wiltshire, AO, until 31 March 2004. Prof Ross Williams, until 31 March 2006. 5. Under the Commission’s legislation, inquiries are to be undertaken by a division of the Commission. The Chairman has the power to determine which members
1 Provided at Attachment A. 2 In this report, the word State(s) includes the Australian Capital Territory and the Northern Territory, unless the content indicates otherwise.
3 Chapter 1
form each division. A division must consist of the Chairman and not less than two other members. There were two divisions during 2002-03:
State Finances division
The Chairman plus Mr Early, Mrs Rolfe, Prof Wiltshire and Prof Williams.
Jervis Bay Inquiry division
The Chairman plus Mr Early and Mrs Rolfe.
Organisational arrangements
6. Commission employees are engaged under the provisions of the Public Service Act 1999, with the Secretary having overall responsibility as the chief executive.
7. Mr Bob Searle, Secretary of the Commission, retired in March 2003. Bob had been with the Commission in various capacities over many years and Secretary since 1993. The Commission acknowledges the very significant contributions Mr Searle made to the work of the Commission over this time and particularly during his time as Secretary.
8. Mr Malcolm Nicholas was subsequently appointed acting Secretary. The position will be filled on a substantive basis following the completion of the 2004 Review.
9. During 2002-03, there were two branches, each headed by an Assistant Secretary. They were:
(i) the Expenditure Analysis Branch; and
(ii) the Revenue, Budgets and Information Technology Branch.
A separate administrative support section reported direct to the Secretary. For some projects, employees worked in small teams with representatives from several sections and, where appropriate, across branches.
10. The average staffing level (excluding members) in 2002-03 was 47.1 compared with 47.8 in 2001-02. Further staffing details are in Chapter 3.
11. Under the Financial Management and Accountability Act 1997, the Commission is a Prescribed Agency within the Finance and Administration portfolio. This gives it independence from the policies of the department but imposes accountability requirements similar to those of a department.
Outcome groups
12. In 2002-03, the Commission had a single outcome — fiscal equalisation.
4 The Commission and its work
13. Fiscal equalisation is implemented by the distribution of Australian Government untied revenue3 between the States so that all State governments would have the financial capacity to provide services at the same standard if they made the same effort to raise revenue from their own sources and operate at the same level of efficiency. Fiscal equalisation is central to Commonwealth-State financial arrangements and is a feature of the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations signed by Heads of Government in June 1999.
14. The major activity of the Commission associated with this outcome relates to the five-yearly reviews of the methods used to calculate the distribution of untied revenue to the States. Work on the next review, to be completed in February 2004, proceeded throughout 2002-03 in accordance with a work program previously agreed with the States.
15. Other activity associated with this outcome includes annual updates of the recommended distribution of untied revenue among the States. In 2002-03, the main output of the fiscal equalisation outcome was a report in February 2003 that provided recommendations on the distribution of untied revenue to the States in 2003-04.
16. During 2001-02, the Commission undertook most of the work on an inquiry into the finances of the Jervis Bay Territory to ascertain, inter alia, what level of funding would be needed in that Territory to provide Australian average levels of service. This work was completed in 2002-03.
17. Figure 1-1 provides a diagrammatic representation of the work of the Commission in 2002-03.
Figure 1-1 OUTCOMES AND OUTPUTS STRUCTURE 2002-03
COMMONWEALTH GRANTS COMMISSION
Fiscal equalisation between the States, the ACT and the NT is achieved through the distribution of GST revenue and health care grants
2003 Update of Relativities 2004 Review of Relativities Jervis Bay Inquiry
3 The goods and services tax collections and health care grants.
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CHAPTER 2
PERFORMANCE OF THE COMMISSION IN 2002-03
1. The Commission’s outcome in 2002-03 was fiscal equalisation.
2. The outputs relating to this outcome are reports, or progress towards the completion of reports, containing advice for the Government. This chapter provides information on the Commission’s effectiveness in meeting Government requirements. It also provides an evaluation against the effectiveness indicators set out in the Portfolio Budget Statements 2002-03. These are:
• the timeliness of reports;
• the extent to which parties and the public generally are given opportunities to place their views before the Commission;
• the technical quality of the analytical work underlying and supporting the reports;
• the degree of acceptance of the reports by the Australian Government and State Governments; and
• the extent to which the Commission operates within its budget.
OUTCOME — FISCAL EQUALISATION
3. In 2002-03, the outputs relating to the fiscal equalisation outcome were:
(i) the completion of the Report on State Revenue Sharing Relativities, 2003 Update which provided per capita relativities for use in distributing GST revenue and health care grants among the States in 2003-04;
(ii) work associated with a review of methods for calculating general revenue grant relativities, to be completed by February 2004; and
(iii) completion of a report on the financing of works and services in the Jervis Bay Territory.
6 Performance of the Commission
4. The terms of reference for these inquiries are in Attachments B to D.
2003 Update of State revenue sharing relativities
5. The A New Tax System (Commonwealth-State Financial Arrangements) Act 1999 requires untied assistance to be distributed among the States on the basis of the principle of horizontal fiscal equalisation.
6. The terms of reference for the 2003 Update asked the Commission to apply the equalisation principle in preparing two sets of relativities for use in distributing funds in 2003-04. They were relativities for distributing:
(i) the combined pool of Goods and Services Tax (GST) revenue and health care grants; and
(ii) a combined pool of notional financial assistance grants (FAGs) and health care grants which would have resulted from a continuation of the Commonwealth-State financial arrangements that applied in 1999-2000.
7. As required, the Commission provided per capita relativities to the Australian Government and the States on 14 February, and a completed report to the Minister for Finance and Administration on 21 February 2003.
8. The quality of the Commission’s research and its extensive consultation with interested parties gave Governments confidence in the results. The Australian Government Treasury used the relativities to prepare estimates of expected revenue payments for the States in 2003-04. These were considered and, subject to adjustments for some minor technical issues, accepted at the meeting of the Ministerial Council for Commonwealth- State Financial Relations in March 2003. Commonwealth Budget Paper No 3, Federal Financial Relations 2003-04, outlines how the Commission’s relativities were used. A copy of the Report on States Revenue Sharing Relativities, 2003 Update can be found on the Commission’s web site — http://www.cgc.gov.au.
9. Distributive effects of the relativities. Figure 2-1 compares the shares of the untied assistance each State would receive if they were distributed on an equal per capita (EPC) basis and on the basis of horizontal equalisation. Under equalisation, New South Wales, Victoria and Western Australia receive less than an equal per capita share and the other States receive more.
10. The difference between a State’s equal per capita share of the grants and its share based on equalisation is explained by:
• its expenditure needs, which reflect above or below average demand for, or unit costs of providing, services;
• its revenue needs, which reflect above or below average capacity to raise taxes and charges; and
7 Chapter 2
• an adjustment for above or below average receipts of Specific Purpose Payments (SPPs) which the Commission regards as being available to meet the State’s need to fund services.
Figure 2-1 DISTRIBUTION OF UNTIED GRANTS: COMPARISON OF AN EQUAL PER CAPITA AND AN EQUALISATION DISTRIBUTION FOR 2003-04
40
35
30
25
% 20
15
10
5
0 NSW Vic Qld WA SA Tas ACT NT
EPC Equalisation distribution
11. Figure 2-2 shows each State’s average cost of service provision1 relative to the national averages assessed in the 2003 Update for the GST relativities. Figure 2-3 shows the relative revenue raising capacities2 underlying the 2003 Update GST relativities.
12. Figure 2-4 shows the relative per capita distribution of the SPPs included in the Commission’s assessments over the five years 1997-98 to 2001-02. In general terms, a State receiving a higher share of these SPPs would require a lower share of Australian Government untied funds, and vice versa.
1 The ratio for each State compares the per capita cost the Commission assesses it would incur in providing the Australian average standard of services, given its relative cost advantages and disadvantages, with the Australian average cost of providing those services. A ratio over 100 indicates that the State would need to spend more than the Australian average per capita amount if it were to provide the standard level of service. 2 These compare the per capita revenue the Commission assessed a State would raise if it applied the Australian average effort in collecting taxes and charges, with the Australian average revenue raised. A ratio over 100 indicates the State has an above average capacity to raise revenue from its own taxes and charges. If everything else were equal it would require a below average share of untied assistance from the Commonwealth.
8 Performance of the Commission
Figure 2-2 RELATIVE COSTS OF SERVICE PROVISION, AVERAGE OF 1997-98 TO 2001-02, GST RELATIVITIES
250
200
150
100
50
0 NSW Vic Qld WA SA Tas ACT NT
Figure 2-3 RELATIVE REVENUE RAISING CAPACITIES, AVERAGE OF 1997-98 TO 2001-02, GST RELATIVITIES
120
100
80
60
40
20
0 NSW Vic Qld WA SA Tas ACT NT
9 Chapter 2
Figure 2-4 RELATIVE RECEIPTS OF SPECIFIC PURPOSE PAYMENTS INCLUDED IN THE ASSESSMENTS, 1997-98 TO 2001-02
250
200
150
100
50
0 NSW Vic Qld WA SA Tas ACT NT
2004 Review of methods used to calculate relativities
13. The methods of calculating the per capita relativities used to distribute untied assistance to the States are reviewed every five years. This ensures the methods remain relevant to the circumstances in which States find themselves. The Commission received Part 1 of the terms of reference for the current review on 5 December 1999.
14. As required by those terms of reference, the Commission developed a work program in conjunction with the States. During 2002-03, the Commission, with the involvement of the States, progressed work on improving most of the assessments of State expenditure and revenue needs. It also involved the States in the review processes by:
(i) visiting Victoria, Western Australia, Tasmania and ACT for discussions with senior State officials on matters that affect the State’s cost of providing services or its capacity to raise revenue relative to the other States3;
(ii) holding conferences with the State Treasuries and senior Treasury officials to discuss issues for the review. The conferences were attended by 55 officers from State Treasuries, Australian Government Treasury and the Australian Bureau of Statistics (ABS);
3 The other States were visited during 2001-02.
10 Performance of the Commission
(iii) conducting a second round of discussions with senior officials in all States, except the ACT, to provide a further opportunity to present their case to the Commission; and
(iv) preparing and circulating discussion papers seeking the views of the States on a wide range of issues. These papers are detailed in Attachment E.
15. An agreement was reached with the ABS to allow an officer from that agency to be located with the Commission from May 2003 to February 2004. This reflects the extensive use of ABS data in the derivation of State relativities. The arrangement is jointly funded by the two agencies and will be reviewed in February 2004.
Report on Jervis Bay Territory
16. In July 2001, the Commission received terms of reference from the Minister asking it to inquire into the funding of works and services in the Jervis Bay Territory (JBT) and to report by July 2002.
17. The final report on the review was presented to the Minister in July 2002. The main findings of the report were as follows.
(i) With few exceptions, government services provided elsewhere were provided for JBT residents, infrastructure used in providing services was generally equivalent to that in similar sized communities in surrounding areas of New South Wales, and all State and local government-type revenues were payable by JBT residents.
(ii) Most services that were provided for JBT residents and all revenue collections were provided (or imposed) at Australian standards, but some services were below and some above that standard.
(iii) Precise calculation of the expense needed in 1999-2000 to provide all services to JBT residents at Australian standards was not possible but was estimated to have been about $8.8 million in net terms. Some services were provided by New South Wales at State expense.
(iv) A simple method of annually updating the funding requirement was proposed, but the 1999-2000 data did not provide a reliable base for the process.
Quality assurance
18. The Commission’s work has a large impact on the budgets of the States and thus must be of the highest quality and integrity. To ensure it retains the confidence of the States, the Commission engaged consultants to examine its processes and advise if any aspects of them required reconsideration. That review consulted a sample of major stakeholders in the Commission’s processes. It concluded that, in general, there was a high
11 Chapter 2
level of satisfaction with the Commission’s processes. It also considered that there was room for improvement in aspects of the quality assurance and the transparency and clarity of processes. In response to that work, the Commission has commenced an internal review aimed at strengthening the quality assurance processes for its research and assessments. It will address issues of transparency in the preparation of the report and other documentation for the 2004 Review of methods used to calculate relativities.
Information dissemination
19. Details of publications issued, papers presented to conferences by Commission representatives, and international visitors to the Commission during 2002-03 are in Attachment E.
Resources
20. Tables 2-1 and 2-2 show the financial and employee resources used in producing the outputs associated with the fiscal equalisation outcome. The Commission plans to undertake a input base review during 2003-04 to more appropriately reflect the price of its output.
Table 2-1 FINANCIAL RESOURCES FOR OUTCOME – FISCAL EQUALISATION
Price of Departmental outputs Budget(a) Actual Variation Budget expenses 2002-03 2003-04 2002-03 $’000 $’000 $’000 $’000 Output 1.1 - Reports on fiscal 5 315 5 669 -354 5 251 equalisation Revenue from Government 5 315 5 669 -354 5 251 (Appropriations) for departmental outputs Revenue from other sources 70 - 70 8 Total price of outputs 5 385 5 669 -284 5 259
TOTAL FOR OUTCOME 1 5 385 5 669 -284(b) 5 259 (a) Budget allocation to the Commission. (b) Further approved expenses, within Commission budget.
Table 2-2 STAFFING RESOURCES
2002-03 2003-04
Average staffing level (a) 47.1 48.0
(a) The average staffing level excluding members.
12 Performance of the Commission
Financial results
21. The Commission’s audited financial statements for the year ended 30 June 2003 are in Attachment K.
The Commission’s performance and social justice
22. The Australian Government attaches a high priority to its goals of social justice, access and equity. The Commission’s fiscal equalisation outcome contributes towards those objectives by providing State governments with the financial capacity to provide an Australian average range and quality of services to their residents, without having to make greater than average revenue raising demands on them. As part of its assessments, the Commission allows for the effects on State expenditures of differences in the socio-demographic characteristics of their populations — including where people live, their income levels, ability to speak English and Indigeneity.
23. The Commission ensures that the processes for the conduct of its inquiries are equitable and accessible to all interested parties. It promotes public awareness of its inquiries and provides opportunities for participation in them. Its conferences are open to the public and its reports and discussion papers are freely available. Where necessary, translations and interpreters are used to assist the understanding and participation of interested people.
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CHAPTER 3
MANAGEMENT AND ACCOUNTABILITY
CORPORATE GOVERNANCE
The Commission and its employees
1. The role of the Commission Chairman is set out in section 15(1) of the Commonwealth Grants Commission Act 1973. It is to ‘ensure the efficient and orderly conduct of the business of the Commission; determine the form of the record of meetings; decide which members shall take part in a particular inquiry; and direct and control the travel by members’. The Chairman also has responsibility for controlling the use of Australian Public Service (APS) employees by the Commission.
2. The Commission directs the work of its employees through meetings of the Divisions established for particular inquiries. Twenty eight Commission meetings were held during the year.
3. The employees of the Commission are headed by a Secretary who is responsible for their day-to-day activities.
Relationship with the Department of Finance and Administration
4. The Commission is part of the Finance and Administration Portfolio and reports direct to the Minister. It is a Prescribed Agency under the Financial Management and Accountability Act 1997 and the Secretary has been appointed Chief Executive Officer by the portfolio Agency Head for the purposes of that Act. The powers and functions of an Agency Head under the Public Service Act 1999 were delegated to the Chairman of the Commission. The Chairman has delegated these powers to the Secretary.
Corporate plan
5. Existing corporate plan. A copy of the current corporate plan is at Attachment F. A review of the Commission’s corporate plan is being undertaken.
14 Management and accountability
6. Strategic planning. Operational plans for the branches and sections are reviewed for each inquiry each year. The strategic planning program also calls for the periodic review of the Commission’s human resources management plan, IT strategic plan and information management plan.
Risk management and fraud control
7. A risk management plan was completed during 2001-02. The risk management framework is an important part of the Commission’s corporate governance responsibilities and risk management is oversighted by the internal audit committee. The Director, Administrative Support, is responsible to the executive for ensuring that risk management is aligned with overall business strategy.
8. The Report on Comcover’s Benchmarking Risk Management Program found that the Commission has sound risk management strategies, policies and practices in place.
9. As part of its risk management plan the Commission has prepared fraud risk assessments and a fraud control plan. It has in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the specific needs of the agency. These processes fully comply with the 2002 Commonwealth Fraud Control Guidelines.
10. The Commission is satisfied that it has prepared fraud risk assessments and fraud control plans, and has in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the specific needs of the Commission and comply with the Commonwealth Fraud Control Guidelines.
Reporting structures and responsibilities
11. The Commission’s human resources were organised into two branches — the Expenditure Analysis Branch; and the Revenue, Budgets and Information Technology Branch — and an Administrative Support Section. Senior executives and some employees have delegated powers for financial and employee management purposes. Figure 3-1 shows the organisational structure at 30 June 2003.
15 Chapter 3
Figure 3-1 ORGANISATIONAL CHART
THE COMMONWEALTH GRANTS COMMISSION
CHAIRMAN Alan Morris Executive Assistant Linda Pure MEMBERS Len Early PSM Hylda Rolfe Ken Wiltshire AO Ross Williams 16
SECRETARY Director Malcolm Nicholas Administrative Support Special projects (acting) Gautam Biswas Owen Rodda
Assistant Secretary Assistant Secretary Expenditure Analysis Revenue, Budgets and IT Catherine Hull Dermot Doherty (acting)
Expenditure A Expenditure B Expenditure C Revenue Budget Analysis IT Services Malcolm Pascoe John Barker Marc Boisseau Lintong Feng Priscilla Kan Stephen Sharp
Management and accountability
Committees
12. There are several standing committees to assist in the management of the organisation. Other committees or working groups are established as tasks arise.
13. Senior executive group. The role of the senior executive group is to:
(i) advise the Secretary on matters of corporate management, governance and resource allocation;
(ii) monitor and control the use of resources;
(iii) provide strategic advice to the Commission on the conduct of inquiries and methods to be adopted; and
(iv) provide strategic direction to Commission employees.
14. The group consists of the members of the senior executive with support provided by the Director, Administrative Support. It generally meets monthly.
15. Management group. The role of the management group is to:
(i) advise the Secretary and senior executive on matters of operational management, including the implementation of corporate management, governance and resource allocation matters referred to it;
(ii) provide advice to the executive on principles and methods related to the subject matter of Commission inquiries;
(iii) decide on common approaches to matters of inter-branch and inter-section responsibility;
(iv) provide a forum for the discussion of general management issues, communication within the Commission, the management of employees and planning; and
(v) provide operational direction to Commission employees.
16. The group consists of the members of the senior executive and the section heads, with other employees relevant to particular discussions also attending. It generally meets monthly.
17. Information management group. A sub-group of the management group, this committee progresses information management strategic planning and specific information management matters. It is made up of a branch head, a member of the IT section and another employee. It reports to meetings of the management group.
18. Workplace representative committee. This Committee is established under the provisions of the Commonwealth Grants Commission Certified Agreement 2002-2004.
17 Chapter 3
It is made up of three elected employee representatives and the union workplace delegate. The Committee meets with the Secretary at least once in each quarter to discuss workplace relations issues, including matters relating to the implementation and interpretation of the Certified Agreement. It complements the role of the management group as a means of additional discussion and consultation between employees and the Secretary.
19. Fraud control committee. This committee was established shortly after the Commission became a Prescribed Agency in 1998. It meets as required, includes the Director, Administrative Support and an employee from an inquiry branch, and reports to the Secretary. The main task of this committee has been to develop and implement a fraud control policy and monitor purchasing and other procedures where risk of fraud is highest. During the financial year, the Commission carried out a fraud risk assessment and reviewed its fraud control plan.
20. Internal audit committee. The internal audit committee monitors the Commission’s financial and administrative activities. It monitors and considers the Commission’s risk management processes and important risk management issues. A quality assurance audit is regularly completed for accounts payable. The committee, headed by a senior executive, reviews the monthly report and ensures that any discrepancies are investigated.
Internal and external scrutiny and compliance
21. The operations of the Commission are subject to scrutiny at several levels.
(i) Stakeholders. Advice provided by the Commission influences the GST revenue and health care grants received by the States from the Australian Government. Consequently, the appropriateness of its decisions and the accuracy of its work are scrutinised closely by Australian Government and State Treasury officials. Information on Freedom of Information is provided at Attachment G.
(ii) External administrative bodies. The Commission is also subject to external scrutiny by bodies such as Parliamentary Committees, the Ombudsman and the Administrative Appeals Tribunal.
(iii) Audit. An internal audit committee monitors the Commission’s administrative activities. The annual financial statements of the Commission are examined and approved by the Australian National Audit Office (ANAO). A copy of the Statements for 2002-03 is at Attachment K.
(iv) Performance audits. During 2002-03, ANAO performance audit reports did not comment on the Commission.
(v) Other Agencies. The Commission participated in the compilation of:
• the Australian Public Service Commission State of the Service Report 2003; and
18 Management and accountability
• the fraud control annual reporting requirements of the Attorney Generals Department.
MANAGING AND DEVELOPING HUMAN RESOURCES
22. At 30 June 2003, the Commission employed 47 people under the Public Service Act1, 45 of whom were full-time. Twenty three of these employees were female. Table 3-1 contains details of members and employees at 30 June 2003.
Table 3-1 EMPLOYEES BY CLASSIFICATION AND GENDER, 30 JUNE 2003
Classification Persons Full-time equivalents
Male Female Total
Commission
Chairman (part-time) 1 0.7 - 0.7 Members (part-time) 4 1.2 0.4 1.6
Total – Commission 5 1.9 0.4 2.3 Personnel employed under Public Service Act Senior Executive Service Band 2 1 1.0 - 1.0 Senior Executive Service Band 1 2 1.0 1.0 2.0 Executive Officer Level 2 8 7.0 1.0 8.0 Executive Officer Level 1 18 8.0 9.1 17.1 APS 6 8 5.0 3.0 8.0 APS 5 3 - 3.0 3.0 APS 4 6 2.0 4.0 6.0 APS 3 1 - 1.0 1.0
Total – full-time employees 45 24.0 21.0 45.0 Total – part-time employees 2 - 1.1 1.1 Total – all employees 47 24.0 22.1 46.1
Total – Commission and employees 52 25.9 22.5 48.4
23. Table 3-2 contains a summary of the employee movements for the year. Seven of the nine employees who commenced at the Commission during the year were female. Overall, there was an increase in the female employee proportion from 44 per cent at 30 June 2002 to 49 per cent at 30 June 2003.
1 Excludes the Chairman and four members of the Commission who are statutory appointees.
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24. At the executive level classifications, 42.3 per cent of employees were female (28.7 per cent in June 2002) and in the APS 5 and 6 group, 54.5 per cent were female (53.0 per cent in June 2002).
Table 3-2 EMPLOYEE MOVEMENTS DURING 2002-03(a)
In Out Total
1 July 2002 48 Appointments 4 4 Promotions/transfers 5 3 2 Non on-going employees 1 1 Resignations 2 (2) Deaths 1 (1) 30 June 2003 10 6 52 Source: CGC establishment records. (a) Including members.
25. In February 2003, the Commission and its employees were saddened by the death of their colleague, Mr Doug Hughes. The Commission records its appreciation for the contribution Mr Hughes made during the nineteen years he worked with the Commission.
26. Salary ranges. Table 3-3 shows the salary ranges payable at 30 June 2003 and at 1 July 2003 as provided for in the Commonwealth Grants Commission Certified Agreement 2002-2004.
Table 3-3 SALARY RANGES PAYABLE
Classification As at 30 June 2003 As at 1 July 2003 $ $ APS 1 29 115 – 32 105 29 697 – 32 747 APS 2 32 858 – 36 362 33 515 – 37 089 APS 3 37 329 – 40 233 38 075 – 41 037 APS 4 41 524 – 45 026 42 354 – 45 926 APS 5 46 235 – 48 984 47 160 – 49 963 APS 6 49 880 – 57 194 50 877 – 58 338 Executive Officer Level 1 63 155 – 72 733 64 418 – 74 187 Executive Officer Level 2 73 820 – 85 095(a) 75 296 – 86 797(a) (a) Executive Officer Level 2 employees who are responsible for supervising a section also receive a supervisory allowance of $1 500 a year.
27. Performance pay. Under the terms of the Commonwealth Grants Commission Certified Agreement 2002-2004, employees who were assessed as ‘meets
20 Management and accountability
agreed expectations’ advanced one salary point within their classification or, if they were at the maximum of their classification, they received a lump sum of 1.5 per cent of their salary. Employees who were assessed as ‘outstanding’ either advanced two salary points in their classification or, if they were at the second last salary point of their classification, they advanced one salary point and received a lump sum of 1.5 per cent of their salary. Employees who were assessed as ‘outstanding’ and were at the maximum of their classification, received a lump sum payment of 2.5 per cent of their salary.
28. Table 3-4 shows the number of employees in each classification who received a lump sum payment during 2002-03. The total amount of lump sum payments was $27 957.
Table 3-4 NUMBER OF EMPLOYEES WHO RECEIVED LUMP SUM BONUS PAYMENTS 2002-03
Classification Number of Average Range of employees bonus paid bonuses paid $$ APS 4 4 788 675 - 1 126 APS 5 1 735 735 APS 6 5 858 858 Executive Officer Level 1 9 1 253 1 091 - 1 818 Executive Officer Level 2 6 1 418 1 276 - 2 127
29. All senior executive officers were assessed under the Commission’s performance feedback scheme and received lump sum bonus payments during 2002-03. Payments totalling $19 856 were made.
Certified agreement
30. Conditions of employment for non-senior executive employees at the Commission in 2002-03 were specified in the Commonwealth Grants Commission Certified Agreement 2002-2004. That agreement has a nominal expiry date of 30 June 2004. The certified agreement is available on the Commission’s web site at http://www.cgc.gov.au/.
Australian workplace agreements
31. Conditions of employment for senior executive employees at the Commission are specified in Australian Workplace Agreements. Salary increases for the senior executives have been the same as those for Commission employees working under the certified agreement. Table 3-5 details the remuneration paid to executives employed by the Commission. The aggregate remuneration paid to all executives during 2002-03 was $454 000.
21 Chapter 3
Table 3-5 REMUNERATION PAID TO EXECUTIVES - 2002-03 (a)
Remuneration range Number of employees $ 100 000 to 110 000 - 110 000 to 120 000 1 130 000 to 140 000 - 140 000 to 150 000 1 150 000 to 160 000 1 (a) The table indicates payments to individuals in excess of $100 000. Following the retirement of the Secretary in March 2003, another SES employee was engaged. The payments made to him during 2002-03 were less than $100 000.
Training and development strategies
32. During 2002-03, a number of training activities were conducted for Commission employees and regular notices were circulated to keep employees aware of training and development opportunities. The Commission’s performance feedback scheme is used to identify employees’ training needs and this information forms the basis of the annual training and development program. The program is discussed and endorsed through the Management and senior executive group meetings.
33. The main categories of training undertaken during the year were:
• report writing and writing in plain English;
• management development;
• professional/technical training;
• financial accounting/resource management; and
• induction.
34. The training was provided by means of:
• in-house courses — by Commission employees or external training providers on specific aspects of the Commission’s work and on the use of its word processing, spreadsheet and database packages;
• attendance at training opportunities — by the Department of Finance and Administration, Comcare, Comcover and the Australian Public Service Commission; and
• attendance at relevant courses and conferences conducted by private sector organisations.
22 Management and accountability
35. Senior executives attended in-house training sessions, including the use of computer packages, writing in plain English, and external courses and conferences on human resource management, public administration and financial arrangements in Federal systems.
36. Studies assistance. The Commission encourages and assists employees undertaking tertiary studies relevant to their employment at the Commission. One employee received study assistance during 2002-03.
37. In-house seminars. The Commission conducted in-house seminars during 2002-03. The objectives were to: provide employees (particularly new employees) with some Commission-specific training; give people an insight into the work being done in other areas; and provide details of the techniques used in the more complex aspects of the Commission’s analysis. Employees are strongly encouraged to support the seminar series. They do this by: attendance at presentations; presenting topics; and using them as the opportunity to share experiences and knowledge. Suggestions for topics of interest and/or external presenters are made by employees.
38. Induction. All employees new to the Commission undergo an induction program. The program introduces new employees to the APS, the Commission and their task. It has several layers of information and training, including information on: the structure, history, culture and work program of the Commission; working and living in the Commission and the general APS environment; and the necessary operational skills and tools, for example Word and Excel.
39. Resources. Resources allocated to training in 2002-03, amounting to 2.01 per cent of the salary expenditure, are shown in Table 3-6.
Table 3-6 RESOURCES ALLOCATED TO TRAINING 2002-03
Total pay-roll for 2001-02(a) $3 608 989 Net training expenditure(b) $72 447 Training expenditure as a percentage of pay-roll 2.01 Number of persons at the Commission at 30 June 2003(a) 47 Number of full-time equivalent person days spent on training 135 Number of persons who participated in training activities 43 (a) Excluding members. (b) Includes salaries for participants and training administrators, and course/seminar fees and expenses.
40. Other policies. The Commission has developed a draft workplace diversity policy. The Commission uses the policies of the Department of Finance and Administration for occupational health and safety. Further information on the occupational health and safety policy is in Attachment H. Details of the Commonwealth Disability Strategy are at Attachment J.
23 Chapter 3
OTHER RESOURCE MANAGEMENT MATTERS
Purchasing
41. Purchasing activities undertaken by Commission employees meet the requirements of the Commonwealth Procurement Guidelines and Best Practice Guidance released by the Minister for Finance and Administration in February 2002. Relevant employees are aware of the requirements and expectations when undertaking procurement activities and are guided by the Commission’s Chief Executive Instructions.
Asset management
42. The net written down value of non-current assets recorded in the Commission’s assets register at 30 June 2003 was $201 516. These assets include office fitout, furniture, computing equipment and other office machines. Commission assets were revalued (using a fair value basis) by the Australian Valuation Office at 1 July 2002. The next formal revaluation of Commission assets must be completed within 5 years. Attachment K provides more details of the Commission’s asset position over 2002-03.
Advertising and market research
43. During 2002-03, the only advertising arranged by the Commission was the advertising of vacant positions through United KFPW HR Services (formerly PricewaterhouseCoopers HR Services Pty Ltd).
44. The Commission paid amounts to media advertising agencies only in relation to the advertisement of positions vacant at the Commission.
45. The Commission did not conduct any market research during 2002-03.
Use of consultants
46. The Commission engages consultants when specialist knowledge or skills outside the capacities of the employees are needed to complete a task, or when it is more cost effective to do so. Decisions to engage consultants are taken after considering the importance of the task and possible in-house options. The procedures adopted to select consultants vary according to the nature of the task. Where there are a large number of potential consultants, expressions of interest are called, followed by requests for quotations. The successful consultant is chosen on the basis of specified selection criteria, and on the principle of ‘buying for better value’.
47. Where appropriate, the views of the State treasuries (main parties to Commission inquiries) are sought before invitations to quote are requested or before a consultant is chosen.
24 Management and accountability
48. The Commission used the services of the Australian Public Service Commission to assist in the selection of one consultant.
49. During 2002-03, the Commission engaged the services of seven consultants at a total cost (excluding GST) of $100 529. Details of the consultancies which cost $10 000 or more are in Attachment I. The details of consultancies and contracts which cost $2 000 or more are reported regularly in the Commonwealth Gazette, as required by Section 1.2 of the Commonwealth Procurement Guidelines, February 2002, issued by the Department of Finance and Administration.
Ecologically sustainable development and environmental performance
50. The Commission does not have any direct responsibilities in relation to the administration of environmental sustainability legislation. However, it is mindful of its responsibilities to minimise negative impacts on the environment. Measures are in place to monitor the use of non-renewable energy sources and to ensure the use is minimised.
51. The Commission will develop an environmental management system that will enable it to comply with AS/NZS ISO 1400:1996.
Competitive tendering and contracting
52. There were no independent competitive tendering and contracting activities at the Commission during 2002-03. However, Table 3-7 shows the services the Commission receives from outsourced providers as part of arrangements established for the Finance and Administration portfolio.
Table 3-7 SERVICES RECEIVED UNDER OUTSOURCE ARRANGEMENTS
Service Service Provider
Travel arrangements QANTAS Property management United KFPW Pty Ltd Telecommunications Optus Communications Personnel services United KFPW HR Services (formerly PricewaterhouseCoopers HR Services) Corporate services Outsource Australia Pty Ltd Office requisites Corporate Express Financial services Provided by Finance who use QSP Financial Information Systems
53. The Commission is included in contractual arrangements entered into by the Department of Finance and Administration in relation to personnel services. From 1 July 2003, human resource services have been provided by Spherion and SRC Solutions. Commission employees participated in the market testing arrangements conducted by the Department of Finance and Administration.
25 Chapter 3
54. The Commission ceased using the financial services provided by the Department of Finance and Administration from 1 July 2003. It now uses commercial software to perform the required financial processes and to meet reporting requirements.
Discretionary grants
55. The Commission does not administer any discretionary grants programs.
Contact officer
56. Enquires about this report should be directed to:
Mr Owen Rodda Director Administrative Support Section Telephone: (02) 6229 8825 Facsimile: (02) 6229 8821 Email: [email protected]
Postal address Cypress Court 5 Torrens Street BRADDON ACT 2612 Internet address http://www.cgc.gov.au/
26
ATTACHMENT A
COMMONWEALTH GRANTS COMMISSION ACT 1973
1. The following copy of the Commonwealth Grants Commission Act 1973 (Act No. 54, 1973) incorporates all amendments made to 30 June 2003. It has been prepared by the Commission by amending the Commonwealth Grants Commission Act 1973, reprinted (3rd) by the Commonwealth Government Printer as at 31 August 1991, to reflect the changes introduced since then. Details of the amendments to the original Act included in this consolidation are provided in the Tables in this Appendix.
2. The provisions of the Act as at 30 June 2003 are listed below.
TABLE OF PROVISIONS
Section
1. Short title [see Note 1] 2. Commencement [see Note 1] 4. Interpretation 5. Meaning of special assistance 6. Extension of Act to external Territories 7. Establishment of Commonwealth Grants Commission 8. Membership of Commission 9. Salary and allowances of member who has status of Judge 9A. Remuneration of other members 10. Leave of absence 11. Resignation and retirement 12. Termination of appointments 13. Acting members 14. Meetings 15. Duties of Chairperson 16. Assistance to States 16A. Assistance to the Northern Territory
27 Attachment A
TABLE OF PROVISIONS - continued
Section
16AA. Inquiries relating to the Australian Capital Territory 16B. Inquiries relating to Jervis Bay Territory 16C. Inquiries relating to Norfolk Island 16D. Inquiries relating to other external Territories 17. Assistance to States for local government purposes 18. Inquiries relating to Indigenous persons 19. Inquiries by Commission 20. Commission may take evidence 21. Evidence to be on oath 22. Administration of oath 23. Penalty for refusing to give evidence 24. Giving false evidence 25. Reports to be laid before Parliament 27. Regulations Notes
COMMONWEALTH GRANTS COMMISSION ACT 1973
An Act to establish a Grants Commission to make Recommendations concerning the Granting of Financial Assistance to the States and autonomous Territories and the financing of works and services in respect of the other Territories.
Short title [see Note 1] 1. This Act may be cited as the Commonwealth Grants Commission Act 1973.
Commencement [see Note 1] 2. This Act shall come into operation on a date to be fixed by Proclamation.
Interpretation 4. In this Act, unless the contrary intention appears: Chairperson means the Chairperson of the Commission. Commission means the Commonwealth Grants Commission established by this Act. indigenous person means: (a) a person of the Aboriginal race of Australia; or (b) a descendant of an indigenous inhabitant of the Torres Strait Islands.
28 Commonwealth Grants Commission Act 1973
local government authority means an authority, established by or under a law of a State, that is, in accordance with provision made by the regulations, a local government authority for the purposes of this Act. member means the Chairperson or another member of the Commission appointed under section 8. special assistance has the meaning given by section 5.
Meaning of special assistance 5. (1) References in this Act to the grant of special assistance to a State shall be read as references to the grant of financial assistance to a State for the purpose of making it possible for the State, by reasonable effort, to function at a standard not appreciably below the standards of other States.
(1A) References in this Act to the grant of special assistance to the Australian Capital Territory shall be read as references to the grant of financial assistance to that Territory for the purpose of making it possible for that Territory, having regard to the special circumstances arising from the location in it of the national capital and the seat of Government of the Commonwealth, by reasonable effort, to function in respect of matters for which the Australian Capital Territory Executive has responsibility, at standards not appreciably below the standards of the States and the Northern Territory.
(2) References in this Act to the grant of special assistance to the Northern Territory shall be read as references to the grant of financial assistance to the Northern Territory for the purpose of making it possible for the Northern Territory, by reasonable effort, to function, in respect of matters for which the Ministers of that Territory have executive authority, at standards not appreciably below the standards of the States.
(3) References in this Act to the grant of special assistance to the Territory of Norfolk Island are references to the grant of financial assistance to that Territory for the purpose of making it possible for that Territory, by reasonable effort, to function, in respect of matters for which the Ministers of that Territory have executive authority, at standards not appreciably below the standards of the States.
Extension of Act to external Territories 6. This Act extends to:
(a) the Territory of Heard Island and McDonald Islands;
(b) the Territory of Norfolk Island; and
(c) each of the other external Territories.
Establishment of Commonwealth Grants Commission 7. (1) The body by the name of the Grants Commission established by the sub- section for which this sub-section was substituted by the Commonwealth Grants Commission Act 1976 continues in existence, by force of this sub-section, under and subject to the provisions of this Act, under the name Commonwealth Grants Commission.
29 Attachment A
(2) The Commission has such functions as are conferred on it by this Act.
Membership of Commission 8. (1) The Commission shall consist of a Chairperson and not less than 2 other members.
(2) The members shall be appointed by the Governor-General.
(3) A member holds office, subject to this Act, for such period, being not less than one year or more than 5 years, as is specified in the instrument of his appointment, but is eligible for re-appointment.
(5) A member may be appointed as a full-time member or as a part-time member.
(5A) A person who is employed by the Commonwealth or by a State in a full-time capacity is not eligible for appointment as a part-time member.
(6) The performance of the functions or the exercise of the powers of the Commission is not affected by reason only of: (a) there being a vacancy in the office of Chairperson; or (b) the number of other members falling below 2 for a period of not more than 6 months. (6A) If the Chairperson was, immediately before his appointment, a Judge of a Federal Court or of the Supreme Court of a State or Territory, he shall have the same designation, rank, status and precedence as a Judge of the Supreme Court of the Australian Capital Territory.
Salary and allowances of member who has status of Judge 9. If sub-section 8(6A) applies to the Chairperson, he shall be paid salary, an annual allowance and travelling allowance at such respective rates as are fixed from time to time by the Parliament and such other allowances (if any) as are prescribed.
Remuneration of other members 9A. (1) A member, other than a member to whom sub-section 8(6A) applies, shall be paid such remuneration as is determined by the Remuneration Tribunal, but, if no determination of that tribunal is in operation, he shall be paid remuneration at the rate that was applicable immediately before the commencement of this section.
(2) A member, other than a member to whom sub-section 8(6A) applies, shall be paid such allowances as are prescribed.
(3) This section has effect subject to the Remuneration Tribunals Act 1973.
Leave of absence 10. (1) A full-time member has such recreation leave entitlements as are determined by the Remuneration Tribunal.
30 Commonwealth Grants Commission Act 1973
(2) The Minister may grant a full-time member leave of absence, other than recreation leave, on such terms and conditions as to remuneration or otherwise as the Minister determines.
Resignation and retirement 11. (1) A member may resign his office by writing under his hand delivered to the Governor-General.
(2) The Governor-General may, with the consent of the member, retire a member from office on the ground of invalidity.
Termination of appointments 12. (1) The Governor-General may suspend a member from office, for misbehaviour or physical or mental incapacity.
(2) Where the Governor-General suspends a member from office, the Minister shall cause a statement of the grounds of the suspension to be laid before each House of the Parliament within 7 sitting days of the House after the suspension.
(3) Where such a statement has been laid before a House of the Parliament, that House may, within 15 sitting days of that House after the day on which the statement has been laid before it, by resolution, declare that the member ought to be restored to office and, if each House so passes such a resolution, the Governor-General shall terminate the suspension.
(4) If, at the expiration of 15 sitting days of a House of the Parliament after the day on which the statement has been laid before that House, that House has not passed such a resolution, the Governor-General may remove the member from office.
(4A) If a part-time member becomes employed by the Commonwealth or by a State in a full-time capacity, the Governor-General shall remove the member from office.
(5) A member shall not be removed from office except as provided by this section.
(7) A member who is suspended from office under this section is not entitled to be paid any remuneration or allowances in respect of the period of his suspension unless he is restored to office.
Acting members 13. (1) Where: (a) the Governor-General suspends the Chairperson from office; (b) if the Chairperson is a full-time member — the Chairperson is, or is expected to be, absent from duty or from Australia; or (c) if the Chairperson is a part-time member — the Chairperson is, or is expected to be, unable (whether on account of illness or otherwise) to perform the duties of his office;
31 Attachment A
the Minister may appoint one of the members to act as Chairperson on such terms and conditions as the Minister determines, and may also appoint another person to be an acting member, during the suspension, absence or inability, as the case requires.
(1A) An acting Chairperson may be appointed as an acting full-time Chairperson or as an acting part-time Chairperson.
(2) Where: (a) the Governor-General suspends a member other than the Chairperson from office; (b) a full-time member other than the Chairperson is, or is expected to be, absent from duty or from Australia; or (c) a part-time member is, or is expected to be, unable (whether on account of illness or otherwise) to perform the functions of his office; the Minister may appoint a person to be an acting member during the suspension, absence or inability, as the case requires.
(3) An acting member may be appointed as an acting full-time member or as an acting part-time member.
(4) An acting member has all the powers, and shall perform all the duties, of a member.
(5) The Minister may, at any time, terminate an appointment under this section.
(6) A person appointed an acting member under sub-section (1) or (2) holds office on such terms and conditions as the Minister determines.
(7) Sections 10 and 11 apply in relation to an acting member appointed under this section in like manner as they apply in relation to a member.
(8) The validity of an act done by the Commission shall not be questioned in any proceedings on a ground arising from the fact that the occasion for the appointment of a person purporting to be appointed under this section had not arisen or that an appointment under this section had ceased to have effect.
Meetings 14. (1) The Commission shall hold such meetings as are necessary for the performance of its functions.
(2) The meetings of the Commission shall be convened by the Chairperson.
(3) Where the Minister requests the Chairperson to do so, the Chairperson shall forthwith convene a meeting of the Commission.
(4) At a meeting of the Commission, a quorum is constituted by a majority of the members holding office.
32 Commonwealth Grants Commission Act 1973
(5) The Chairperson shall preside at all meetings of the Commission at which he is present.
(6) If the Chairperson is not present at a meeting of the Commission, the members present shall elect one of their number to preside at the meeting.
(7) Questions arising at a meeting of the Commission shall be determined by a majority of the votes of the members present and voting.
(8) The Chairperson has a deliberative vote and, in the event of an equality of votes, also has a casting vote.
(9) In this section, a reference to the Chairperson includes an acting Chairperson.
Duties of Chairperson 15. (1) It is the duty of the Chairperson to ensure the efficient and orderly conduct of the business of the Commission and, for that purpose, he has, in addition to any other power, duty or function under this Act, power: (a) to determine the form of the records of meetings of the Commission to be kept in accordance with this Act and the procedure to be adopted at such a meeting;
(b) to determine which members shall take part in a particular inquiry by the Commission; and
(c) to direct and control travel by members in connection with their duties.
(2) Where the services of APS employees are made available to the Commission, the use of those services by members of the Commission is subject to the control of the Chairperson.
Assistance to States 16. The Commission shall inquire into and report to the Minister upon: (a) any application made by a State for the grant, under section 96 of the Constitution, of special assistance to the State; (b) any matters, being matters relating to a grant of assistance made under that section to a State either before or after the commencement of this Act, that are referred to the Commission by the Minister; and (c) any matters, being matters relating to the making of a grant of assistance under that section to a State, that are referred to the Commission by the Minister.
33 Attachment A
Assistance to the Northern Territory 16A. The Commission shall inquire into and report to the Minister upon: (a) any application made by the Northern Territory for a grant of special assistance to that Territory; (b) any matters, being matters relating to a grant of financial assistance made by the Commonwealth to the Northern Territory, that are referred to the Commission by the Minister; and (c) any matters, being matters relating to the making of a grant of financial assistance by the Commonwealth to the Northern Territory, that are referred to the Commission by the Minister.
Inquiries relating to the Australian Capital Territory 16AA.The Commission shall inquire into and report to the Minister upon: (a) any application made by the Australian Capital Territory to the Commission for a grant of special assistance to that Territory; (b) any matters, being matters relating to a grant of financial assistance made by the Commonwealth to the Australian Capital Territory, that are referred to the Commission by the Minister; and (c) any matters, being matters relating to the making of a grant of financial assistance by the Commonwealth to the Australian Capital Territory, that are referred to the Commission by the Minister. Inquiries relating to Jervis Bay Territory
16B. The Commission must inquire into and report to the Minister upon any matters, being matters relating to the financing of works and services provided by the Commonwealth or an authority of the Commonwealth in respect of the Jervis Bay Territory, that are referred to the Commission by the Minister.
Inquiries relating to Norfolk Island 16C. The Commission must inquire into and report to the Minister upon:
(a) any application made by the Territory of Norfolk Island to the Commission for a grant of special assistance to that Territory; and (b) any matters, being matters relating to a grant of financial assistance made by the Commonwealth to the Territory of Norfolk Island, that are referred to the Commission by the Minister; and (c) any matters, being matters relating to the making of a grant of financial assistance by the Commonwealth to the Territory of
34 Commonwealth Grants Commission Act 1973
Norfolk Island, that are referred to the Commission by the Minister.
Inquiries relating to other external Territories
16D. The Commission must inquire into and report to the Minister upon any matters, being matters relating to the financing of works and services provided by the Commonwealth or an authority of the Commonwealth in respect of a particular external Territory (other than the Territory of Norfolk Island), that are referred to the Commission by the Minister.
Assistance to States for local government purposes
17. (1) The Commission shall inquire into and report to the Minister upon any matters: (a) being matters relating to the making of a grant of assistance to a State, under section 96 of the Constitution, for local government purposes; or (b) being matters relating to a grant of assistance made to a State, under section 96 of the Constitution, for local government purposes, that are referred to the Commission by the Minister.
(2) In sub-section (1), a reference to a grant of assistance to a State for local government purposes shall be read as a reference to a grant of moneys to the State for the purpose of being applied by the State in payments to local government authorities situated in the State, or by way of expenditure for purposes declared by the regulations to be purposes to which this sub-section applies.
Inquiries Relating to Indigenous Persons
18. (1) The Commission must inquire into and report to the Minister upon any matters that the Minister refers to the Commission relating to: (a) works and services in respect of indigenous persons that are provided or funded (directly or indirectly) by the Commonwealth or an authority of the Commonwealth; or (b) a grant of financial assistance under section 96 of the Constitution to a State for the purpose of being applied by the State, or an authority of the State, to pay for works and services in respect of indigenous persons in the State; or (c) a grant of financial assistance made by the Commonwealth to a Territory, or an authority of the Territory, for the purpose of being applied by the Territory or the authority to pay for works and services in respect of indigenous persons in the Territory. (2) Sub-section (1) applies whether or not: (a) the works or services are provided or funded exclusively in respect of Indigenous persons; or
35 Attachment A
(b) the financial assistance is applied exclusively in respect of Indigenous persons. Inquiries by Commission 19. (1) Where the Commission is required to inquire into and report upon an application or matter, the Chairperson may, by writing under his hand, determine that the powers of the Commission under this Act may, for the purposes of the inquiry and report on that application or matter or on such part of that application or matter as is specified in the determination, be exercised by a Division of the Commission constituted, subject to sub-section (3), by such members as are specified in the determination.
(2) Where the Chairperson has made a determination under sub-section (1) he may, by writing under his hand, at any time before the Division of the Commission specified in the determination has completed the inquiry and report, revoke the determination or, subject to sub-section (3), amend the determination in relation to the membership of the Division or in any other respect, and, where the membership of the Division of the Commission is changed, the Division as constituted after the change may complete the inquiry and report.
(3) A Division of the Commission exercising the powers of the Commission in respect of an application or matter shall consist of the Chairperson and not less than 2 other members.
(4) For the purposes of an inquiry and report on an application or matter, or on a part of an application or matter, specified in a determination under sub-section (1), the Commission shall be deemed to consist of the Division of the Commission specified in the determination.
(5) At a meeting of a Division of the Commission: (a) if the Chairperson is present — the Chairperson shall preside; or (b) in any other case — a member of the Division appointed for the purpose by the Chairperson shall preside.
(6) At a meeting of a Division of the Commission, a majority of the members constituting the Division form a quorum.
(7) The Chairperson has, at a meeting of a Division of the Commission, a deliberative vote and, in the event of an equality of votes, also a casting vote.
(8) A meeting of a Division of the Commission may be held notwithstanding that a meeting of another Division of the Commission is being held at the same time.
Commission may take evidence
20. (1) Where an application or matter is referred to the Commission under this Act, the Commission may, for the purpose of inquiring into the application or matter, take evidence from persons who appear as witnesses before the Commission.
36 Commonwealth Grants Commission Act 1973
(2) Sub-section (1) does not prevent the Commission from inquiring into an application or matter in such other manner as it sees fit.
Evidence to be on oath 21. The evidence given by a witness appearing before the Commission shall be given on oath or affirmation.
Administration of oath 22. A member may administer an oath or affirmation to a person appearing as a witness before the Commission.
Penalty for refusing to give evidence 23. (1) Where the Commission takes evidence in the course of inquiry into a matter, a person appearing as a witness before the Commission shall not, without lawful excuse, refuse or fail to answer a question, being a question relevant to the inquiry, that is put to him by the Commission.
Penalty: $1 000.
(2) For the purpose of sub-section (1), a question shall be deemed to have been put to a witness by the Commission: (a) if it is put by any of the members who are exercising the powers of the Commission in relation to the matter; or (b) if, with the approval of a majority of the members who are exercising the powers of the Commission in relation to the matter, it is put by a person authorised by a majority of those members to appear in connection with the taking of the evidence.
Giving false evidence 24. A person shall not, in the course of giving evidence before the members of the Commission who are exercising the powers of the Commission in relation to a matter, make a statement that he knows to be false or misleading in a material particular.
Penalty: Imprisonment for 5 years.
Reports to be laid before Parliament 25. (1) The Minister may cause a report made by the Commission under section 16, 16A, 16AA, 16B, 16C, 16D, 17 or 18 to be laid before each House of the Parliament.
(2) Before a proposed law relating to the subject of a report made by the Commission under section 16, 16A, 16AA, 16B, 16C, 16D, 17 or 18 is introduced into the Parliament, the Minister shall cause the report to be laid before each House of the Parliament.
37 Attachment A
(3) The Minister may cause to be attached to a report of the Commission that is laid before the Houses of the Parliament under this section such statement, recommendation or comment by him as he thinks proper.
Regulations
26. The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act, and, in particular, for regulating the practice and procedure of the Commission.
38 Commonwealth Grants Commission Act 1973
Notes to the Commonwealth Grants Commission Act 1973
1. The Commonwealth Grants Commission Act 1973, as shown in this reprint, comprises Act No. 54, 1973, amended as indicated in the Tables below.
Table of Acts
Act Number Date of Date of Application, And year Assent Commencement saving or transitional provisions Grants Commission Act 54, 1973 18 June 1973 20 Sept 1973 (see Gazette 1973 1973, No.123, p.2)
Statute Law Revision 216, 1973 19 Dec 1973 31 Dec 1973 Ss. 9(1) and 10 Act 1973
Grants Commission Act 59, 1975 19 June 1975 S. 3(b); 1 Oct 1984 Ss. 2(2) and 4(2) 1975 Reminder: Royal Assent
Commonwealth Grants 47, 1976 2 June 1976 2 June 1976 Ss. 15(2) and 16 Commission Act 1976
Remuneration and 111, 1977 28 Oct 1977 Ss. 1, 2, 5, 9(2), 13, Allowances Amendment 16, 18 and 19(2): Royal Act 1977 Assent Remainder: 1 June 1977
Commonwealth Grants 143, 1977 10 Nov 1977 10 Nov 1977 Commission Amendment Act 1977
Commonwealth Grants 86, 1978 22 June 1978 Ss. 3, 5, 9 and 15: 1 July Commission Amendment 1987. Remainder: Royal Act 1978 Assent
Commonwealth Grants 6, 1980 24 Mar 1980 24 Mar 1980 Commission Amendment Act 1980
Commonwealth Grants 173, 1981 2 Dec 1981 2 Dec 1981 S. 3(2) Commission Amendment Act 1981
Cocos (Keeling) Islands 46, 1984 24 June 1984 Part VII (ss. 22-26): 6 Apr Self-Determination 1984. Remainder: Royal (Consequential Assent Amendments) Act 1984 as amended
39 Attachment A
Table of Acts (continued)
Act Number Date of Date of Application, And year Assent Commencement saving or transitional provisions As amended by Statute Law 65, 1985 5 June 1985 S. 3: 25 June 1984 (a) (Miscellaneous Provisions) Act (No. 1) 1985
Statute Law 65, 1985 5 June 1985 S. 3: 3 July 1985 (b) (Miscellaneous Provisions) Act (No. 1) 1985
A.C.T. Self-Government 109, 1988 6 Dec 1988 S. 32: 11 May 1989 (see (Consequential Provisions) Gazette 1989, No. S164) Act 1988 (c)
Administrative 5, 1989 13 Mar 1989 S. 4(d): 31 Jan 1989 (see s. Services Legislation 2(1)) Amendment Act 1989 S. 7 (in part): 22 Apr 1989 (see s. 2(2) and Gazette 1989, No. S137) Remainder: Royal Assent.
Industrial Relations 122, 1991 27 June 1991 Ss. 4(1), para 10(b) and S. 31(2) Legislation Amendment Act 15-20: 1 Dec 1988. 1991 Ss. 28(b)-(e), 30 and 31: 10 Dec 1991 (see Gazette 1991, No. S332. Remainder: Royal Assent.
Territories Law Reform Act 104, 1992 30 June 1992 Ss. 1, 2, 25 and 26: Royal Assent Ss. 9, 10, 19, 21 and 22: 22 June 1993 (see Gazette 1993, No. S196. Remainder: 1 July 1992.
Aboriginal Land Grant and 103, 1995 29 Sept 1995 29 Sept 1995 Sch. 3 (item 1) Management (Jervis Bay Territory) Legislation Amendment Act 1995
Commonwealth Grants 112, 1999 12 Sept 1999 12 Sept 1999 Commission Amendment Act 1999
Public Employment 146, 1999 11 Nov 1999 Schedule 1 (items 318, (Consequential and 319): 5 Dec 1999 (see Transitional) Amendment Act Gazette 1999, No. S584) 1999 (d)
40 Commonwealth Grants Commission Act 1973
Act Notes (a) The Cocos (Keeling) Islands Self-Determination (Consequential Amendments) Act 1984 was amended by section 3 only of the Statute Law (Miscellaneous Provisions) Act (No. 1) 1985, sub-section 2(12) of which provides as follows: (12) The amendments of the Cocos (Keeling) Islands Self-Determination (Consequential Amendments) Act 1984 made by this Act shall be deemed to have come into operation immediately after the commencement of section 1 of that first-mentioned Act.
(b) The Commonwealth Grants Commission Act 1973 was amended by section 3 only of the Statute Law (Miscellaneous Provisions) Act (No. 1) 1985, sub-section 2 (1) of which provides as follows: (1) Subject to this section, this Act shall come into operation on the twenty-eighth day after the day on which it receives the Royal Assent.
(c) The Commonwealth Grants Commission Act 1973 was amended by section 32 only of the A.C.T. Self- Government (Consequential Provisions) Act 1988, subsection 2(3) of which provides as follows: (3) The remaining provisions of this Act (including the amendments made by Schedule 5) commence on a day or days to be fixed by Proclamation.
(d) The Commonwealth Grants Commission Act 1973 was amended by Schedule 1 (items 318 and 319) only of the Public Employment (Consequential and Transitional) Amendment Act 1999, subsections 2(1) and (2) of which provide as follows: (1) In this Act, commencing time means the time when the Public Service Act 1999 commences. (2) Subject to this section, this Act commences at the commencing time.
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected How affected
Title ...... am. No. 47, 1976; No. 86, 1978; No. 104, 1992; No. 103, 1995; No. 112, 1999
S. 3 ...... rep. No. 173, 1981 S. 4 ...... am. No. 47, 1976; No. 86, 1978; No. 173, 1981; No. 103, 1995; No. 112, 1999
S. 5 ...... am. No. 86, 1978; No. 109, 1988; No. 103, 1995 S. 6 ...... rep. No. 47, 1976 ad. No. 46, 1984 rs. No. 104, 1992; No. 103, 1995 S. 7 ...... am. No. 47, 1976 S. 8 ...... am. No. 216, 1973; No. 59, 1975; No. 47, 1976; No. 143, 1977; No. 86, 1978; No. 173, 1981; No. 65, 1985; No. 5, 1989; No. 103, 1995 S. 9 ...... rs. No. 59, 1975; No. 111, 1977 am. No. 103 1995 S. 9A ...... ad. No. 59, 1975 am. No. 173, 1981
41 Attachment A
Table of Amendments (continued)
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected How affected
S. 10 ...... rs. No. 112, 1991 am. No. 146, 1999 S. 12 ...... am. No. 86, 1978; No. 173, 1981 S. 13 ...... am. No. 5, 1989 S. 14 . . . . . am. No. 103, 1995 Heading to S. 15 . . . . . rs. No. 103, 1995 S. 15 ...... am. No. 86, 1978; No. 173, 1981; No. 103, 1995; No. 146, 1999 S. 16A ...... ad. No. 86, 1978 S. 16AA . . . . ad. No. 109, 1988 S. 16B ...... ad. No. 6, 1980; No. 103, 1995 rep. No. 109, 1988 ad. No. 103 1995 S. 16C ...... ad. No. 46, 1984 am. No. 104, 1992 rs . No. 103, 1995 S. 16D ...... ad. No. 103, 1995 S. 17 ...... rs. No. 47, 1976 S. 18 ...... rep. No. 47, 1976ad. No. 112, 1999 S. 19 ...... am. No. 47, 1976; No. 86, 1978; No. 173, 1981; No. 103, 1995 S. 19A ...... ad. No. 86, 1978 rep. No. 173, 1981 S. 20 ...... am. No. 47, 1976 S. 22 ...... am. No. 86, 1978; No. 173, 1981 S. 23 ...... am. No. 47, 1976; No. 86, 1978; No. 173, 1981 S. 24 ...... rs. No. 47, 1976 am. No. 86, 1978; No. 173, 1981 S. 25 ...... am. No. 47, 1976; No. 86, 1978; No. 6, 1980; No. 46, 1984 (as am. by No. 65, 1985); No. 109, 1988; No. 104, 1992; No. 103, 1995; No. 112, 1999 S. 26 ...... am. No. 47, 1976 rep. No. 86, 1978 S. 27 ...... rs. No. 47, 1976
42
ATTACHMENT B
GENERAL REVENUE GRANT RELATIVITIES, 2003 UPDATE, TERMS OF REFERENCE
SENATOR THE HON NICK MINCHIN Minister for Finance and Administration
22 October 2002
Mr Alan Morris Chairman Commonwealth Grants Commission Cypress Court 5 Torrens Street CANBERRA ACT 2612
Dear Mr Morris,
I am writing to provide you with terms of reference (attached) which ask the Commonwealth Grants Commission to update the per capita relativities used to distribute Commonwealth payments to the States and Territories in 2003-04.
The terms of reference require the Commission to provide the relativities to the Commonwealth, States and Territories by 14 February 2003 and the report by 21 February 2003. This timing would provide the Commonwealth, States and Territories with sufficient time to prepare for the Ministerial Council meeting in late-March 2003.
Yours sincerely
Nick Minchin
43 Attachment B
Terms of Reference for the 2003 Update of State Revenue Sharing Relativities
COMMONWEALTH GRANTS COMMISSION ACT 1973
I, Nicholas Minchin, Minister for Finance and Administration, pursuant to sections 16, 16A and 16AA of the Commonwealth Grants Commission Act 1973, refer for inquiry and report by 21 February 2003 the question of the per capita relativities used to distribute Commonwealth payments to the States, the Northern Territory and the Australian Capital Territory (collectively referred to as the States) in 2003-04. Notwithstanding the above, the Commission should provide the per capita relativities to the Commonwealth and the States by 14 February 2003.
2. The Commission’s assessments of per capita relativities should be based on the review period 1997-98 to 2001-02 inclusive. Where possible, the Commission should use the latest available data, with the exception that the use of the 2001 Census data should be limited to State mean populations and State-wide age and sex distributions, as other Census data will not be fully released in time to be included in the 2003 Update.
3. The Commission should provide per capita relativities for determining the distribution of:
(a) a combined pool of GST revenue grants and health care grants; and
(b) a combined pool of financial assistance grants and health care grants (based on the assumption of a continuation of the Commonwealth-State financial arrangements which applied in 1999-2000).
4. Subject to paragraphs 5 to 9, the Commission’s assessments should be based on the application of the same:
(a) principles;
(b) items of revenue and government services;
(c) methods of assessment of those items;
(d) range and methods of measuring revenue and expenditure disabilities; and
(e) range and methods of treatment of Commonwealth revenue payments that the Commission used to calculate the per capita relativities in its 2002 Update.
5. The Commission’s assessments should take into account the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations which was signed by Heads of Government in June 1999. The Commission should also take into account the decision to implement a National Excise Scheme for Low Alcohol Beer, and the decision to cease the bi-annual indexation of Petroleum Revenue Replacement
44 Update of State Revenue Sharing Relativities 2003, Terms of Reference
Payments forgone, for the purposes of the Guaranteed Minimum Amount as outlined in the Treasurer’s press release No. 12 of 22 March 2002.
6. Where it is necessary to accommodate later budget developments, the Commission’s assessments should be based on the principles, methods of measuring revenue and expenditure disabilities, and methods of treating Commonwealth revenue payments that conform to those applied in similar circumstances in the 2002 Update.
7. The Commission should prepare its assessments on a basis consistent with the Commonwealth’s intention that the per capita relativities should not be affected by the following specific purpose payments to the States:
(a) the Extension of the First Home Owners Grant program; and
(b) the Roads to Recovery program.
8. A separate assessment should be made of the special fiscal needs of the Australian Capital Territory.
9. The Commission should consult the Commonwealth and the States before deciding on any changes in methods considered appropriate to fulfil its obligations in respect of these terms of reference.
10. To the extent possible, the Commission should, upon reporting, provide all parties with details underpinning its calculations and assessments, and endeavour to meet requests for supplementary calculations.
NICHOLAS MINCHIN
45
ATTACHMENT C
REVIEW OF GENERAL REVENUE GRANT RELATIVITIES, 2004, TERMS OF REFERENCE
5 December 1999
Mr Alan Morris Chairman Commonwealth Grants Commission Cypress Court 5 Torrens Street BRADDON ACT 2612
Dear Mr Morris
I am writing to convey to you Part 1 of the terms of reference for the Commonwealth Grants Commission to review the methods used to determine and report upon the question of the per capita relativities for distribution of GST revenue grants and health care grants which the Commission would regard as appropriate to apply after 2003-04.
The terms of reference are as follows:
1. Pursuant to sections 16, 16A and 16AA of the Commonwealth Grants Commission Act 1973, I hereby refer to the Commission for inquiry into and report upon, by 25 February 2004 at the latest, the question of per capita relativities which the Commission would regard as appropriate to apply after 2003-04 for the distribution of the combined pool of GST revenue grants and health care grants among the States, the Northern Territory and the Australian Capital Territory.
2. The Commission should review whether the allowances for special circumstances granted to the Australian Capital Territory continue to be necessary and, if so, make appropriate assessments. 3. The Commission should commence a work programme for improving methods of assessment and consult with the States and the Commonwealth in deciding the priorities for the work programme.
46 Review of General Grant Relativities 2004, Terms of Reference
Further terms of reference will be provided to the Commission at a later date in light of consultations with the Commonwealth and States.
Yours sincerely
JOHN FAHEY
47
ATTACHMENT D
INQUIRY INTO THE FINANCING OF WORKS AND SERVICES IN THE JERVIS BAY TERRITORY TERMS OF REFERENCE
23 July 2001
Mr Alan G. Morris Chairman Commonwealth Grants Commission Cypress Court 5 Torrens Street CANBERRA ACT 2601
Dear Mr Morris
I am writing to provide the Commonwealth Grants Commission with terms of reference to: inquire into the financing of works and services in the Jervis Bay Territory; to recommend an appropriate level of funding for the Territory in 2002-03 (net of revenue); and to recommend a mechanism to update funding requirements on an annual basis. The Government’s objective is to investigate, on a ‘no commitment’ basis, the costs associated with and the options for turning over to New South Wales some of the services currently provided in the Territory.
The terms of reference are as follows:
1. Pursuant to section 16B of the Commonwealth Grants Commission Act 1973, I ask the Commission, by July 2002 at the latest, to inquire into and report on the following in respect of the 1999-2000 financial year:
48 Jervis Bay Territory Inquiry, Terms of Reference
(i) the State and local government type services and grants that were provided by the Commonwealth, ACT, NSW and local government authorities to Jervis Bay Territory residents;
(ii) the level of expenditure that was required to provide the services reported on in 1(i);
(iii) estimates of the State and local government type revenues (including taxes, fees, fines and charges) that were raised in the Jervis Bay Territory and from Jervis Bay Territory residents; and
(iv) the infrastructure and other assets that were associated with the provision of State and local government type services, their age profile, state of repair, and other details which would assist in quantifying the cost of maintaining or replacing these assets.
2. The Commission will make recommendations on:
(i) the expenditure that would have been required to provide: (a) State, and (b) local government-type services, to Jervis Bay Territory residents at Australian standards (adjusted for the special characteristics of Jervis Bay Territory) in 1999-2000;
(ii) the services that were being provided at a level above Australian standard, and those below Australian standard;
(iii) the capacity for raising revenues from Jervis Bay Territory residents at Australian standards in 1999-2000;
(iv) the funding in 1999-2000 that would have been required by the NSW Government to:
• bring the provision of the services identified in (ii) as ‘below standard’ up to Australian standard levels; and
• maintain the provision of the services identified in (ii) as ‘standard’ or ‘above standard’ at these levels;
• less the revenue that can be raised from Jervis Bay Territory residents at Australian or NSW standards; and
(v) the capital expenditure that would be required to ensure that the condition of assets identified in 1(iv) was at Australian standard levels.
3. The Commission will further recommend a mechanism for updating the funding levels recommended in 2(iv) to ensure appropriate levels of funding could be provided in future years, and in particular, make a recommendation on the funding
49 Attachment D
that would be required by the NSW Government to provide services at levels described in 2(iv) for the 2002-03 financial year.
For the purposes of its inquiries, the Commission should assume that any future agreement between the Commonwealth and NSW Governments for service provision to the Jervis Bay Territory would provide for the Commonwealth to fund NSW on an annual basis through specific purpose payments (SPPs).
The Commonwealth Department of Transport and Regional Services has undertaken to provide the information required for this inquiry in a timely manner.
I have provided a copy of this correspondence to the Treasurer; the Minister for Transport and Regional Services; the Minister for Regional Services; Territories and Local Government; the New South Wales Special Minister of State; and the Australian Capital Territory Government.
Yours sincerely
JOHN FAHEY
50
ATTACHMENT E
INFORMATION DISSEMINATION
1. At the conclusion of each inquiry, a report is produced and presented to the Minister for Finance and Administration. After presentation, and subject to the approval of the Minister, copies of the report are provided to the parties to the inquiry. The reports are usually tabled in Parliament. Reports are normally accompanied by a volume of supporting information and/or working papers which have a more limited distribution.
2. During inquiries, the Commission issues Discussion Papers to ensure that the parties to the inquiry and interested members of the public are aware of the major issues to be considered and that all relevant matters receive adequate consideration.
3. Commission reports are also published on the internet at the Commission’s website http://www.cgc.gov.au/. The website also contains the Discussion Papers issued by the Commission, most submissions received by the Commission, Working Papers and some transcripts of meetings between the Commission and interested parties.
4. In recent years there has been a growing interest in the Commission and its work by academics and authorities in Australia and other countries. This has resulted in:
• the Chairman and Commission employees presenting papers to seminars and conferences;
• international delegations or academics visiting the Commission for discussions with the Chairman and senior employees; and
• the Chairman and senior employees visiting several countries at the request of international agencies to explain the Australian system of fiscal transfers and fiscal equalisation.
5. This attachment contains details of reports and other publications issued by the Commission, papers presented to conferences and seminars by Commission representatives, and visitors to the Commission during 2002-03.
Reports
6. The reports produced during 2002-03 were the:
• Report into the finances of the Jervis Bay Territory;
51 Attachment E
• Commonwealth Grants Commission Annual Report 2001-2002; and
• Report on General Revenue Grant Relativities 2003 Update.
Working papers
7. Five volumes of working papers were produced in support of the Report on General Revenue Grant Relativities 2003 Update. Copies of the working papers were made available to the parties to the inquiry and were deposited in the National Library, State Reference Libraries; and Federal and State Parliamentary Libraries. Those working papers were:
Volume 1 Standard Budgets of the States and the Territories — Background Information Volume 2 Revenue Assessments Volume 3 Expenditure Assessments: Calculation of Major Factors Volume 4 Expenditure Assessments: Category Assessments — Social and Community Services Volume 5 Expenditure Assessments: Category Assessments — Administrative and Economic Services, and User Charges.
Discussion Papers
8. The Commission issued the following Discussion Papers in 2002-03.
CGC 2002/1 Size of Equalisation Redistributions CGC 2002/2 Contemporaneity CGC 2002/3 Scope and structure of the standard budget CGC 2002/4 Global Revenue Assessments CGC 2002/5 Cross Border, Special Circumstances of the ACT CGC 2002/6 Economic development CGC 2002/7 Implications for Assessments of Developments in Technology and Public Administration Practice CGC 2002/10 Population Issues CGC 2002/11 Treatment of Capital Grants CGC 2002/12 Not issued CGC 2002/13 Land Revenue Assessment CGC 2002/14 Payroll Tax Assessment CGC 2002/15 Mining CGC 2002/16 Gambling
52 Information dissemination
CGC 2002/17 Financial Transaction Taxes CGC 2002/18 Insurance Taxes CGC 2002/19 Conveyances CGC 2002/20 Input Costs CGC 2002/21 Socio-Demographic Composition CGC 2002/22 Dispersion CGC 2002/23 Administrative Scale CGC 2002/24 Urbanisation CGC 2002/25 Depreciation CGC 2002/26 Debt Charges CGC 2002/27 Urban Transit CGC 2002/28 Schools Education CGC 2002/29 Inpatient Services CGC 2002/30 Non - Inpatient and Community Health Services CGC 2002/31 Population and Preventative Health CGC 2002/32 Welfare Part 1: Aged and Disabled Services CGC 2002/33 Housing CGC 2002/34 Roads CGC 2002/35 Concessions and Community Service Obligations CGC 2002/36 Law and Order CGC 2002/37 Services to Indigenous communities CGC 2002/38 Services to Industry CGC 2002/39 Superannuation CGC 2002/40 Vocational Education and Training CGC 2002/41 Public Safety and Emergency Services CGC 2002/42 National Parks and Wildlife Services CGC 2002/43 Isolation CGC 2002/44 New Developments (U2003) CGC 2002/45 Welfare Part 2: Family and Child Services CGC 2002/46 Welfare Part 3: Homeless and General CGC 2003/1 Privately Financed Projects CGC 2003/2 Treatment of Specific Purpose Payments CGC 2003/3 Education - Analysis of Post-compulsory Enrolments CGC 2003/4 Input Costs - Wages and Salaries CGC 2003/5 Treatment of Economic Development Assistance CGC 2003/6 Law and Order - Fees and Fines CGC 2003/7 Privately Financed Projects - Second Paper CGC 2003/8 Impact of Technology on Assessments.
53 Attachment E
Papers presented to conferences and seminars
9. During 2002-03, Commission representatives presented the following papers to conferences and seminars.
• Specific Purpose Payments. A presentation in the Department of Finance Seminar Series, Canberra, Catherine Hull, November 2002.
• Public Sector Revenue, Tax Reform and Fiscal Equalisation in Australia. Korean Association of Local Finance, 2002 Conference (Intergovernmental Fiscal Relations in a Globalizing World), Korea, Bob Searle, September 2002.
• Financial Arrangements in Australia. Forum of Federations, Canadian Conference on Fiscal Equalisation and Economic Development Policy within Federations, Canada, Malcolm Nicholas, October 2002.
• The Allocation of GST Revenue, Managing Government Grants Conference, Canberra, Malcolm Nicholas, April 2003.
Visitors to the Commission
10. International academic and official visitors to the Commission included:
• Local Government Finance Commission of Uganda, August 2002;
• Professor Iain McLean, Professor of Politics at Oxford University, September 2002;
• State Development and Planning Commission of the Peoples Republic of China, October 2002;
• Hefrizal Handra, Indonesian PhD student, September 2002; and
• India-Australia Training and Capacity Building Project, May 2003.
Compliance with Senate Orders
• Senate Order on Government Agency Contracts. The information required to comply with this order is available through the Commission’s web site – http://www.cgc.gov.au/.
• Senate Continuing Order No 6 for the Production of Departmental File Lists. The information required to comply with this order is available through the Commission’s web site – http://www.cgc.gov.au/.
54
ATTACHMENT F
MISSION STATEMENT AND STRATEGIC PLAN
MISSION STATEMENT
1. To give reliable and objective advice to government to facilitate decisions about the distribution of Australian Government general revenue and hospital funding grants to the States and the Territories, and about other matters referred to the Commission by the Minister.
2. Fulfilling the mission requires:
Integrity -
• treating all parties to inquiries equitably;
• making the process of inquiries accessible and transparent to all parties; and
• providing impartial advice.
Judgement -
• recognising the limits of what can and should be measured; and
• forming a view in the absence of full information.
Professional competence -
• in the analysis of material and in drawing conclusions therefrom; and
• in the effective management of the resources available to the Commission.
The Commission will foster these qualities among its employees and give support by way of training.
3. The mission will be achieved by the adoption of the following strategic plan.
55 Attachment F
STRATEGIC PLAN
OBJECTIVES
1. To canvass the full range of views and options relevant to each inquiry.
2. To assess those views and options.
3. To provide reports which are clear and include well-reasoned recommendations.
4. Each of these objectives can be viewed from the perspective of the Commission or its employees. The formal responsibility for achieving them rests with the Commission. The role of the employees is to provide advice and support to the Commission.
To achieve these objectives we adopt the following strategies:
(a) clearly explain the objectives of inquiries;
(b) provide adequate opportunities for parties to present their views;
(c) foster a wider understanding among the parties and the general community of the principles guiding the Commission;
(d) promote the employees’ capacity to perform effectively;
(e) undertake professional technical analyses of matters relevant to inquiries;
(f) foster the exercise of sound and impartial judgement; and
(g) ensure that reports address the issues fairly, comprehensively and clearly.
A full review of the mission statement and strategic plan will be undertaken in 2003-04.
56
ATTACHMENT G
FREEDOM OF INFORMATION ACT 1982 SECTION 8 STATEMENT
Establishment
1. The Commission was established under the Commonwealth Grants Commission Act 1933 which was replaced by the Commonwealth Grants Commission Act 1973.
Organisation
2. The Chairman and other members of the Commission may be appointed in either a full-time or part-time capacity. The membership of the Commission during 2002-03 consisted of a part-time Chairman and four part-time members. The Secretary has responsibility for providing advice to the Chairman and members on matters relating to the Commission’s functions. The Commission had two branches and an Administrative Support Section in 2002-03. The organisational structure and senior personnel are shown in Chapter 3 of this report. There are no State or regional offices.
Functions
3. The Commission is an independent statutory authority. It is required to inquire into and report upon matters referred to it by the Minister under the provisions of the Commonwealth Grants Commission Act. The Act is at Attachment A of this report.
Arrangements for outside participation
4. The Commission’s Act allows it to inform itself ‘in such … manner as it sees fit’. All Australian Government, State and other parties involved in inquiries are invited to make written submissions and, where necessary, to discuss those submissions at public conferences. Submissions tabled at the conferences are generally public documents, although sensitive information may be received in confidence and treated accordingly.
Categories of documents
5. Reports issued by the Commission are those which relate to specific inquiries, research reports, and annual reports. Once released, copies of reports and the working papers associated with them are available for inspection in the National Library, State Reference Libraries and the Commission’s library. Commission reports are also
57 Attachment G
published on the internet at the Commission’s website http://www.cgc.gov.au/. The website also contains Discussion Papers issued by the Commission, most submissions received by the Commission, Working Papers prepared by the Commission and some transcripts of meetings between the Commission and interested parties. The time the documents remain on the website is determined by the needs of the inquiry to which they relate.
6. Other documents held by the Commission include:
• submissions from interested parties (including the States, the Australian Government Treasury, Australian Government departments, the Norfolk Island government, local government authorities, individuals and private organisations);
• discussion papers issued by the Commission as part of its inquiries;
• agendas, papers and minutes of Commission meetings and conferences;
• registry files on information and data requests and other matters relating to the conduct of inquiries; and
• documents concerned with daily internal administration and management, including files on employees, personnel, finance, budgets, stores and assets.
7. The Commission also holds:
• manuals on IT and records management procedures (prepared by employees of the Commission);
• a manual on style and procedures for the preparation of Commission reports (prepared by employees of the Commission); and
• manuals on accounting, delegations, finance, organisation management, personnel management, rates of pay, superannuation and records management (prepared by other agencies).
Facilities for access
8. Facilities are provided in the Commission’s offices in Canberra to enable people to consult documents. Preferably, an appointment to inspect such documents should be made in advance.
FOI procedures and initial contact points
9. Inquiries concerning access to documents or other matters relating to freedom of information should be directed to the Commission’s FOI Co-ordinator, as follows:
58 Freedom of Information section 8 statement
FOI Co-ordinator Commonwealth Grants Commission Cypress Court 5 Torrens Street BRADDON ACT 2612 Telephone (02) 6229 8829 Facsimile (02) 6229 8821
10. Business hours are 8.30 am to 5.00 pm, Monday to Friday. The Secretary, as principal officer, has power under section 23 of the Freedom of Information Act 1982 to deny access to a document.
11. There were no requests for access to documents under the Freedom of Information Act during 2002-03.
59
ATTACHMENT H
OCCUPATIONAL HEALTH AND SAFETY
1. The Commission operates under the occupational health and safety (OH&S) policy of the Department of Finance and Administration.
2. The Commission has also adopted the Department’s rehabilitation policy with COMCARE for employees injured at work, and uses the specialist services of UnitedKFPW HR Services (formerly PricewaterhouseCoopers (PwC)) and, from 1 July 2003, SRC Solutions, the Department’s outsourced service provider, to administer its compensation cases.
3. Details of the Departmental policies are published in the Department of Finance and Administration’s Annual Report, 2002-03.
4. The Commission has been approved as a Designated Work Group (DWG) under the Occupational Health and Safety Act 1991. Commission employees have an OH&S representative.
5. The Commission’s OH&S representative, in conjunction with the service provider’s representative, provide advice to employees on methods of minimising or avoiding occupational health problems, particularly those associated with the use of computing equipment. They also monitor the work environment and provide advice to management on matters of health and safety. To minimise the risk of accident or injury, management responds to matters raised as soon as possible.
6. In compliance with the OH&S requirements for the use of computers in the workplace, the Commission provides all employees with ergonomic furniture such as desks, chairs and monitor stands. Employees are given regular advice on the correct posture and keyboard techniques to reduce fatigue.
7. Under Australian Public Service Commission guidelines, all employees who spend more than 25 per cent of their time using screen-based equipment are eligible to have their eyes tested once every two years. The Commission has procedures in place to ensure that all eligible employees, are tested regularly. During the year, seventeen employees undertook screen-based eyesight testing.
8. During 2002-03, two employees were appointed as first aid officers. The required number of fire wardens were appointed and training provided where appropriate.
60 Occupational health and safety
9. Hazardous materials are sometimes found in the grounds of the Commission’s offices. To reduce the risk of injury to employees and members of the public, several employees in the Commission’s Administrative Support Section have been trained in procedures for the safe disposal of such material.
10. There were no accidents or dangerous events at the Commission’s offices during the year. The Commission received no directions or notices under sections 30, 45, 46 or 47 of the Occupational Health and Safety (Commonwealth Employment) Act 1991.
61
ATTACHMENT I
CONSULTANTS ENGAGED DURING 2002-03
1. Consultants engaged by the Commission during 2002-03 at a cost exceeding $10 000 are shown in the following table.
Name of Description of project Cost Justification consultant (excluding GST)
Professor Jeff Empirical analysis of $10 000 To provide analysis of data Borland labour market costs, highly relevant to the wages and salaries Commission. Prof Borland is being the most highly regarded in this field and important cost of was judged to have the required providing government expertise and to be best value for services. money.
GISCA Provision of an $40 320 To release employees for (National accessibility research projects, the services of Centre for remoteness index of this organisation were used. Social Australia. GISCA is the developer of the Application of ARIA index used in most public Geographic sector research and by the ABS. Information Systems)
Blake Dawson Consultancy on $20 079 They were judged to have the Waldron differences between required expertise and to be best the States and value for money. Territories in the scope of their provisions for stamp duty on conveyances.
62 Consultants engaged during 2002-03
Name of Description of project Cost Justification consultant (excluding GST)
Dimension Supply and install $10 000 Dimension data have provided Data Firewall, risk router configuration services assessment and policy previously and have detailed preparation, annual knowledge of the Commission maintenance. operating system. Their ability to provide the required services when required was a distinct advantage.
Australian Scoping studies. $20 130 Walter Turnbull proposal was Public Service judged to be more comprehensive Commission and best suited to Commission (Walter needs. Turnbull)
63
ATTACHMENT J
COMMONWEALTH DISABILITY STRATEGY
1. The Commonwealth Disability Strategy recognises that the Australian Government has an impact on the lives of people with disabilities. The Commission plays a role in assisting the Australian Government to meet its obligations in two key areas: as a policy adviser and as an employer.
The Commission as policy adviser
2. Since the Commission has no role in delivering programs to the wider Australian community, no new policies or programs were developed and/or implemented by the Commission in 2002-03. However, the Commission operates a public website and web entry points that have been created in accordance with the accessibility requirements of the Government Online strategy.
The Commission as an employer
3. In its role as an employer, the Commission works across a number of areas to ensure that it provides fair and equitable employment opportunities for all members of the community.
4. In 2001-02, four per cent of employees who completed a voluntary questionnaire identified themselves as having some form of disability. The actual level of employees with disabilities may be higher than this figure due to non-disclosure. A similar survey is planned for 2003-04.
5. The Commission operates under employment policies, procedures and practices that comply with the Disability Discrimination Act 1992. The Commission actively meets these requirements by issuing guidelines on eliminating workplace harassment, by its provision for 'supported wage systems' within its Certified Agreement and other flexible employment conditions. It also works toward ensuring that the premises it operates from provide access for people with disabilities.
6. The Commission has developed dispute resolution procedures that give employees access to both internal and external mechanisms to address workplace issues. Commission employees have access to an employee assistance program offered by an external provider which assists employees experiencing both personal and professional difficulties. The Commission will continue to recognise issues related to workplace diversity and the Commonwealth Disability Strategy.
64
ATTACHMENT K
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003
This attachment contains the:
• Audit Report;
• Statement by the Chief Executive;
• Statement of Financial Performance;
• Statement of Financial Position;
• Statement of Cash Flows;
• Schedule of Commitments;
• Schedule of Contingencies; and
• Notes to and forming part of the Financial Statements.
65 Attachment K
66 Financial statements for the year ended 30 June 2003
67 Attachment K
68 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission STATEMENT OF FINANCIAL PERFORMANCE for the year ended 30 June 2003
Notes 2003 2002 $’000 $’000 Revenues from ordinary activities Revenues from Government 3A 5 315 5 065 Sales of goods and services 60 173 Interest 10 123 Other - 44 Revenues from ordinary activities 5 385 5 405
Expenses from ordinary activities Employees 4A 4 000 3 786 Operating lease rentals 587 544 Suppliers 4B 1 004 856 Depreciation 78 131 Write-down of assets - 46 Expenses from ordinary activities 5 669 5 363
Net surplus/(deficit) (284) 42
Total changes in equity other than those resulting from transactions with owners as owners (284) 42
This statement should be read in conjunction with the accompanying notes.
69 Attachment K
Commonwealth Grants Commission STATEMENT OF FINANCIAL POSITION as at 30 June 2003
Notes 2003 2002 $’000 $’000 ASSETS Financial assets Cash 5A 518 2 933 Receivables 5B 2 752 53 Total financial assets 3 270 2 986
Non-financial assets Infrastructure plant and equipment 6A,B 202 197 Other 7 51 56 Total non-financial assets 253 253
TOTAL ASSETS 3 523 3 239
LIABILITIES Provisions Employees 8A 1 544 1 528 Lease – make good 75 - Capital use charge - 169 Total provisions 1 619 1 697
Payables Suppliers 9A 152 171 Employee payable 9A 50 - Total payables 202 171
TOTAL LIABILITIES 1 821 1 868
EQUITY Contributed Equity 917 337 Reserves 151 116 Retained Surpluses 634 918 TOTAL EQUITY 10A 1 702 1 371
Current assets 3 321 3 042 Non-current assets 202 197 Current liabilities 639 868 Non-current liabilities 1 182 1 000
This statement should be read in conjunction with the accompanying notes.
70 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission STATEMENT OF CASH FLOWS for the year ended 30 June 2003
Notes 2003 2002 $’000 $’000 OPERATING ACTIVITIES Cash received Appropriations 5 262 5 057 Sales of goods and services 59 171 Interest 41 92 GST received from ATO 154 36 Total cash received 5 516 5 356
Cash used Employees 4 027 3 916 Suppliers 1 667 1 366 Other-Return to OPA 2 600 - Total cash used 8 294 5 282 Net cash from/(used by) operating activities 11 (2 778) 74
INVESTING ACTIVITIES Total cash received - -
Cash used Purchase of property, infrastructure plant 48 49 and equipment Total cash used 48 49 Net cash (used by) investing activities (48) (49)
FINANCING ACTIVITIES Cash received Appropriations-contributed equity 580 - Total Cash received 580 -
Cash used Capital use charge paid 169 204 Total cash used (169) 204 Net cash from (used by) financing activities 411 (204)
Net increase/(decrease) in cash held (2 415) (179) Cash at beginning of the reporting period 2 933 3 112 Cash at the end of reporting period 5A 518 2 933
This statement should be read in conjunction with the accompanying notes.
71 Attachment K
Commonwealth Grants Commission SCHEDULE OF COMMITMENTS as at 30 June 2003
2003 2002 $’000 $’000 BY TYPE
Other Commitments Operating leases 1 1 704 2 187 Other 74 91 Total other commitments 1 778 2 278
Commitments receivable 162 207 Net commitments 1 616 2 071
BY MATURITY Other commitments One year or less 576 522 From one to five years 1 202 1 549 Net commitments 1 778 2 071
Operating Lease commitments One year or less 456 439 From one to five years 1 093 1 549 Net commitments by maturity 1 549 1 988
This statement should be read in conjunction with the accompanying notes.
NB: Commitments are GST inclusive where relevant. 1 Operating Leases included are effectively non-cancellable and comprise: Nature of lease General description of leasing arrangement Leases for office accommodation • Lease payments are subject to annual increases of 4% as negotiated; • The initial periods of office accommodation leases are still current and each may be renewed for up to four years at the Agency’s option.
Agreements for the provision of • Purchase options are available to Agency motor vehicles to senior executives executive. • No contingent rentals exist.
72 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission SCHEDULE OF CONTINGENCIES as at 30 June 2003
2003 2002 $’000 $’000
CONTINGENCIES Nil Nil
This schedule should be read in conjunction with the accompanying notes.
73 Attachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 1: Summary of Significant Accounting Policies
1.1 Objectives of the Commonwealth Grants Commission
The Commission is a prescribed agency operating under the Commonwealth Grants Commission Act 1973.
In 2002-03, the Commission was structured to meet one outcome:
Outcome 1: Fiscal equalisation between the States and Territories is achieved through the distribution, by Government, of GST revenue and Health Care Grants.
1.2 Basis of Accounting
The financial statements are required under section 49 of the Financial Management and Accountability Act 1997 and are a general purpose financial report.
The statements have been prepared in accordance with:
• Finance Minister’s Orders (or FMOs, being the Financial Management and Accountability (Financial Statements for reporting periods ending on or after 30 June 2003) Orders); • Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and • Consensus Views of the Urgent Issues Group.
The Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with historical cost conventions, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.
The continued existence of the Commission in its present form, and with its present programs, is dependent on Government policy and on continuing appropriations by Parliament for the Commission’s administration and programs.
Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. Liabilities and assets which are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies.
74 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
1.2 Basis of Accounting (cont.)
Revenues and expenses are recognised in the Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.
1.3 Changes in Accounting Policy
The accounting policies used in the preparation of these financial statements are consistent with those used in 2001-02, except in respect of: • the accounting for output appropriations (refer to Note 1.4);
• measurement of certain employee benefits at nominal amounts (refer to Note 8A); and
• the initial revaluation of property plant and equipment on a fair value basis (refer to note 1.10).
1.4 Revenue
The revenues described in this Note are revenues relating to core operating activities of the Commission.
Revenues from Government
Departmental outputs appropriations for the year (less any savings offered up in Portfolio Additional Estimates Statements) are recognised as revenue, except for certain amounts which relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.
Resources Received Free of Charge
Services received free of charge are recognised as revenue when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
75 Attachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
1.4 Revenue (cont.)
Other Revenue
Revenue from the sale of goods is recognised upon the delivery of the goods to customers.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Revenue from the disposal of non-current assets is recognised when control of the asset has passed to the buyer.
1.5 Transactions with the Government as Owner
Capital Use Charge
A Capital Use Charge of 11% (2002: 11%) is imposed by the Government on the departmental net of the Agency at year end. The net assets figure is adjusted to take account of asset gifts and revaluation increments during the financial year. The Charge is accounted for as a dividend to Government.
In accordance with the recommendations of a review of Budget estimates and Framework, the Government has decided that the Charge will not operate after 30 June 2003.
Other distributions to owners
The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. There have been no distributions in 2002-03.
1.6 Employee Benefits
Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.
Liabilities for wages and salaries (including non-monetary benefits), annual leave and sick leave are measured at their nominal amounts. Other employee benefits expected to be settled within 12 months of the reporting date are also measured at their nominal amounts.
76 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
1.6 Employee Benefits (cont.)
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. This is a change in accounting policy from last year required by the initial application of a new Accounting Standard AASB 1028 from 1 July 2002. As the Commission’s certified agreement raises rates on 1 July each year, the financial effect of this change has been noted in the financial statements.
All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission is estimated to be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees’ remuneration, including the Commission’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.
The non-current portion of the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2003. In determining the present value of the liability, the Commission has taken into account attrition rates and pay increases through promotion and inflation.
Superannuation
Employees of the Commission are members of the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS). The liability for their superannuation benefits is recognised in the financial statements of the Commonwealth and is settled by the Commonwealth in due course.
The Commission makes employer contributions to the Commonwealth at rates determined by an actuary to be sufficient to meet the cost to the Commonwealth of the superannuation entitlements of the Commission’s employees.
No liability for superannuation is recognised as at 30 June as the employer contributions fully extinguish the accruing liability assumed by the Commonwealth.
77 Attachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
1.6 Employee Benefits (cont.)
Superannuation (cont.)
Contributions to CSS, PSS and the Employer Superannuation Productivity Benefit amounting to $469 865 (2001-02: $513 322) have been expended in 2002-03. A provision of $114 248 (2001-02: $115 949) for superannuation on-costs associated with leave benefits has been included in accordance with AASB 28 Employee Benefits.
1.7 Leases
Operating lease payments are expensed on a basis, which is representative of the pattern of benefits derived from the leased assets. The net present value of future net outlays in respect of surplus space under non-cancellable lease agreements is recorded as an expense in the period in which the space becomes surplus.
The Commission has no finance leases.
1.8 Cash
Cash means notes, coins and any deposits held at call or on deposit with a bank or financial institution.
1.9 Financial Instruments
Accounting policies for financial instruments are stated at Note 16.
1.10 Acquisition of Assets Assets are recorded at cost on acquisition. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.
78 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
1.11 Plant and Equipment Asset Recognition Threshold
Purchases of plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $2000 which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).
Revaluations Basis Plant and equipment are carried at valuation. Revaluations undertaken up to 30 June 2002 were done on a deprival basis; revaluations since that date are at fair value. This change in accounting policy is required by Australian Accounting Standard AASB 1041 Revaluation of Non-Current Assets.
Fair and deprival values for each class of asset are determined as shown below:
Asset Class Fair value measured at: Deprival value measured at:
Plant and equipment Market selling price Depreciated replacement cost
Under both deprival and fair value, assets which are surplus to requirements are measured at their net realisable value. At 30 June 2003 the Commission had no assets in this situation.
The financial effect for 2002-03 of this change in policy relates to those assets to be recognised at fair value at 30 June 2003. The financial effect of the change is given by the difference between the carrying amounts at 30 June 2002 of these assets and their fair values as at 1 July 2002. The financial effect by class is as follows:
Asset Class Adjustment Contra Account
Plant and equipment $34 475 CR Revaluation Reserve
79 Attachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
1.11 Plant and Equipment (cont.)
Conduct and Frequency
The valuation on 1 July 2002 was an independent valuation conducted by the Australian Valuation Office. The Chief Finance Officer considers that after taking into account depreciation for the period, the carrying amounts of assets at 30 June 2003 do not differ materially from their fair value at 1 July 2002.
Assets acquired after the last revaluation date are reported at cost until subsequent revaluation.
Recoverable Amount Test
From 1 July 2002, Schedule 1 no longer requires the application of the recoverable amount test in Australian Accounting Standard AAS 10 Recoverable Amount of Non-Current Assets to the assets of agencies when the primary purpose of the asset is not the generation of net cash inflows.
No plant and equipment assets have been written down to recoverable amount per AAS 10. Accordingly, the change in policy has had no financial effect.
Depreciation
Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Commission using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.
Estimated lives applying to the depreciable assets for 2002-03 range from 2 to 5 years.
1.12 Taxation
The Commission is exempt from all forms of taxation except fringe benefits tax and the goods and services tax (GST).
Revenues, expenses and assets are recognised net of GST:
• except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and • except for receivables and payables.
80 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
1.13 Insurance
The Commission has insured for risks through the Government’s insurable risk managed fund, called ‘Comcover’. Workers compensation is insured through the Government’s Comcare Australia.
1.14 Comparative figures
Comparative figures have been adjusted to conform with changes in presentation in these financial statements where required.
1.15 Rounding off
Amounts have been rounded to the nearest $1000 except in relation to:
• act of grace payments and waivers; • remuneration of executives; • remuneration of auditors; and • appropriation note disclosures.
81 Attachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 2: Events Occurring after Reporting Date
There were no events that occurred after the balance date which would affect the balances in the financial statements.
2003 2002 $’000 $’000 Note 3: Operating Revenues
Note 3A - Revenues from Government Appropriations for outputs 5 307 5 057 Resources received free of charge 8 8 Total revenues from government 5 315 5 065
Note 4: Operating Expenses
Note 4A - Employee Expenses Wages and Salary 3 034 2 832 Superannuation 490 508 Leave and other entitlements 403 374 Other employee expenses 73 72 Separation and redundancy - - Total employee expenses 4 000 3 786
Note 4B – Supplier Expenses Goods from related entities 43 60 Goods from external entities 183 156 Services from related entities 233 210 Services from external entities 545 430 Total supplier expenses 1 004 1 400
82 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
2003 2002 $’000 $’000 Note 5: Financial Assets
Note 5A – Cash Cash at bank and on hand 518 933 Term deposits (current) - 2 000 Total cash 518 2 933 All cash recognised is a current asset.
Note 5B – Receivables Goods and services 3 33 GST receivable from the Australian Taxation Office 15 20 Employee receivable 89 - Appropriation receivable 2 645 - Total receivables (net) 2 752 53 All receivables are current assets.
Receivables (gross) are aged as follows: Not overdue 2 752 53
Note 6: Non-Financial Assets
Note 6A – Infrastructure plant and Equipment
Infrastructure plant and equipment - at cost 48 206 Accumulated depreciation (9) (83) 39 123
Infrastructure plant and equipment - at valuation (fair value) 232 619 1 July 2002 Accumulated depreciation (69) (545) 163 74
Total Infrastructure Plant and Equipment (non-current) 202 197
All revaluations have been conducted in accordance with the revaluation policy stated at Note 1.
83 Attachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 6B - Analysis of Infrastructure Plant and Equipment
TABLE A — Reconciliation of the opening and closing balances of infrastructure plant and equipment
$’000 As at 1 July 2002 Gross value 825 Accumulated depreciation (628) Net Book Value 197
Additions by purchase 48
Net revaluation increment 35 Depreciation expense (78)
As at 30 June 2003 Gross Book Value 280 Accumulated depreciation (78) Net book value 202
TABLE B — Assets at valuation $’000
As at 30 June 2003 Gross value 232 Accumulated depreciation (69) Net book value 163 As at 30 June 2002 Gross value 619 Accumulated depreciation (545) Net book value 74
84 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
2003 2002 $’000 $’000 Note 7: Other Non-Financial Assets
Prepayments Lease rental 37 36 Books /subscriptions 9 6 Other 5 14 Total prepayments 51 56
All other non-financial assets are current assets.
Note 8: Provisions
Note 8A - Employee Provisions Salaries and wages 124 75 Annual leave 561 453 Long service leave 859 1 000 Redundancy and separation - - Aggregate employee benefit liability and related on-costs 1 544 1 528
Current 541 528 Non-current 1 003 1 000
Note 9: Payables
Note 9A - Payables Trade creditors 152 167 Employee Payable 50 - Other - 4 Total payables 202 171
Payables are represented by: Current 202 171 Non-current - - Total payables 202 171
85
A Commonwealth Grants Commission ttachment K
Notes to and forming part of the Financial Statements
Note 10: Equity
Note 10A - Analysis of Equity
Item Accumulated Asset Revaluation Contributed TOTAL EQUITY Results Reserve Equity 2003 2002 2003 2002 2003 2002 2003 2002 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
86 Opening Balance as at 1 July 918 1 045 116 116 337 337 1 371 1 498 Net surplus/deficit (284) 42 - - - - (284) 42 Net revaluation increment - - 35 - - - 35 -
Transactions with owner: Capital use charge (CUC) - (169) - - - - - (169) Contribution of Equity/Appropriation - - - - 580 - 580 -
Closing balance as at 30 June 634 918 151 116 917 337 1 702 1 371
Total equity attributable to the Commonwealth 634 918 151 116 917 337 1 702 1 371
Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
2003 2002 Note 11: Cash Flow Reconciliation $’000 $’000
Reconciliation of Cash per Statement of Financial Position to Statement of Cash Flows Cash at year end per Statement of Cash Flow 518 2 933
Statement of Financial Position items comprising above cash: ‘Financial Asset - Cash’ 518 2 933
Reconciliation of net surplus to net cash from operating activities: Net surplus (deficit) (284) 42 Depreciation/amortisation 78 131 Net loss on sale of assets - 46 (Increase)/Decrease in receivables (2 699) (41) Decrease in prepayments 5 2 (Decrease) in employee provisions 16 (131) Increase in make good provision 75 - Increase/(Decrease) in supplier provisions and payables 31 25 Net Cash from/(used by) operating activities (2 778) 74
Note 12: Executive Remuneration
The number of executives who received or were due to receive total remuneration of $100 000 or more:
2003 2002 Number Number $110 001 - $120 000 1 - $130 001 - $140 000 - 1 $140 001 - $150 000 1 1 $150 001 - $160 000 1 - $170 001 - $180 000 - 1
The aggregate amount of total remuneration of executives shown above. $453 833 $463 681
No redundancy payments were made to executives during the year. Separation payments were made to one executive during the year. 1 -
87 Attachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 13: Remuneration of Auditors
2003 2002 $ $ Financial statement audit services are provided free of charge by the Auditor General. The fair value of the service provided was: $8 000 $8 000
No other services were provided by the Auditor-General.
Note 14: Average Staffing Levels 2003 2002
The average staffing levels for the Commission during the year were: 47.1 47.8
Note 15: Act of Grace Payments, Waivers and Defective Administration Scheme
No ‘Act of Grace’ payments were made during the reporting period. (2000-01:0)
No waivers of amounts owing to the Commonwealth were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2000-01:0)
No payments were made under the Defective Administration Scheme during the reporting period. (2000-01:0)
88
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 16: Financial Instruments
Note 16A - Terms, Conditions and Accounting Policies
Financial Instrument Notes Accounting Policies and Methods (including Nature of Underlying Instrument (including significant terms and recognition criteria and measurement basis) conditions affecting the amount, timing and certainty of cash
flows) F inancial statements forthe yearended 30June 2003
89 89 FINANCIAL Financial assets are recognised when control over future ASSETS economic benefits is established and the amount of the benefit can be reliably measured.
Cash 5A Cash is recognised at its nominal amount. Interest on The Commission invested funds with a commercial bank at call. cash at Bank is credited to revenue as it accrues. Monies in the Commission’s bank account is swept into the Official Public Account nightly and interest was earned on the daily balance at rates based on money market call rates. Term deposits were invested with the Reserve Bank of Australia and interest was paid at maturity.
Receivables for goods 5B These receivables are recognised at the nominal amounts All receivables are with entities external to the Commonwealth. and services due less any provision for bad and doubtful debts. Credit terms are net 30 days (2002: 30 days). Collectability of debts is reviewed at balance date. Provisions are made when collection of the debt is judged to be less rather than more likely.
Appropriation 5B These receivable are recognised at their nominal Amounts appropriated by the Parliament in the current or previous receivable amounts. years which are available to be drawn down by the Commission.
A ttachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 16: Financial Instruments (cont.)
Note 16A - Terms, Conditions and Accounting Policies (cont.)
Financial Instrument Note Accounting Policies and Methods (including Nature of Underlying Instrument (including significant terms and
90 90 recognition criteria and measurement basis) conditions affecting the amount, timing, and certainty of cash flows)
FINANCIAL Financial liabilities are recognised when a present LIABILITIES obligation to another party is entered into and the amount of the liability can be reliably measured.
Capital Use Charge This payable is recognised as the amount outstanding on The final amount payable for the year will be 11% (2002: 11%) of the payable the estimated amount to be paid in accordance with the closing balance of Equity less movements in the Asset Revaluation calculations outlined by the Department of finance and Reserve and any capital injections, less any amount settled before 30 Administration. June.
Trade creditors 9A Creditors and accruals are recognised at their nominal No creditors are part of the Commonwealth legal entity. Settlement is amounts, being the amounts at which the liabilities will usually made net 30 days. be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced)
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 16: Financial Instruments (cont.)
Note 16B - Interest Rate Risk
Financial Instrument Notes Floating Interest Fixed Interest Rate Non-Interest Bearing Total Weighted Average Rate 1 year or Less Effective Interest Rate 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 % %
Financial Assets 91 Cash at bank 5A 518 933 - - - - 518 933 2.0 2.0 Financial statements for the year ended 30 June 2003 Term deposits 5A - - - 2 000 - - - 2 000 4.7 4.7
Receivables for goods & 5B - - - - 3 33 3 33 n/a n/a services-gross
Appropriation Receivable 5B - - - - 2 645 - 2 645 - n/a n/a
Employee Receivable 5B - - - - 89 - 89 - n/a n/a
GST Receivable 5B - - - - 15 - 15 - n/a n/a
Total 518 933 - 2 000 2 752 33 3 270 2 966
Total Assets 3 523 3 239
Attachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 16: Financial Instruments (cont.)
Note 16B - Interest Rate Risk (cont.)
Financial Notes Floating Interest Fixed Interest Non-Interest Bearing Total Weighted Average Instrument Rate Rate 1 year or Effective Interest Rate Less 92 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 % % Financial Liabilities
Trade creditors 9A - - - - 152 167 152 167 n/a n/a Total ----152 167 152 167 Total Liabilities 1 821 1 868
Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 16: Financial Instruments (cont.)
Note 16C - Net Fair Values of Financial Assets and Liabilities
2003 2002 Total Aggregate Total Aggregate Carrying Net Fair Carrying Net Fair Amount Value Amount Value Note $’000 $’000 $’000 $’000 Departmental Financial Assets
Cash at bank 5A 518 518 933 933 Receivables for Goods and 5B 3333 33 Services (net) Appropriation receivable 5B 2 645 2 645 - - Term deposits 5B --2 000 2 000 Total Financial Assets 3 166 3 166 2 966 2 966
Financial Liabilities (Recognised)
Trade creditors 9A 152 152 167 167
Total Financial Liabilities 152 152 167 167 (Recognised)
Financial Assets The net fair values of cash and non-interest-bearing monetary financial assets are approximated by their carrying amounts. Financial Liabilities The net fair values for trade creditors are approximated by their carrying amounts.
93 Attachment K
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 16: Financial Instruments (cont.)
Note 16D - Credit Risk Exposures
The Commission’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Statement of Financial Position. The Commission has no significant exposure to any concentrations of credit risk. No figures for credit risk take into account the value of any collateral or other security.
Note 17: Appropriations
Note 17A – Cash Basis Acquittal of Appropriations from Acts 1 and 3
Particulars Departmental Outputs-Outcome 1 Year ended 30 June 2003 $ Balance carried from previous year 2 933 000 Appropriation for reporting period (Act 1) 5 262 000 GST credits (FMA s 30A) 154 000 Annotations to ‘net appropriations’ (FMA s 31) 100 000 Other -
Available for payments 8 449 000 Payments made 5 286 000 Balance carried forward to next year 3 163 000 Represented by Cash 518 000 Add: Appropriations receivable 2 645 000 Total 3 163 000
Year ended 30 June 2002 Available for payments 2002 8 468 000 Payments made 2002 5 535 000 Balance carried forward to 1 July 2002 2 933 000 Represented by Cash 2 933 000 Total 2 933 000
94 Financial statements for the year ended 30 June 2003
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 17: Appropriations (cont.)
Note 17B – Cash Basis Acquittal of Appropriations from Acts 2 and 4
Particulars Departmental Outputs-Outcome 1 Year ended 30 June 2003 $ Balance carried from previous year - Appropriation for reporting period (Act 2) 580 000
Available for payments 580 000 Payments made 580 000 Balance carried forward to next year - Total -
Year ended 30 June 2002 -
95
A ttachment K Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 18: Reporting of Outcomes
Note 18A – Net Cost of Outcome Delivery
Outcome 1 Total 2003 2002 2003 2002 $’000 $’000 $’000 $’000
96 Departmental expenses 5 669 5 363 5 669 5 363 Total expenses 5 669 5 363 5 669 5 363 Other external revenues Departmental Interest on cash deposits 10 123 10 123 Other 60 217 60 217 Total other external revenues 70 340 70 340
Net cost of outcome 5 599 5 023 5 599 5 023
Outcome 1 is described in Note 1.1. The Capital Use Charge is not included in any of the outcomes as it is not an operating expense in end-of-year financial reports.
Commonwealth Grants Commission
Notes to and forming part of the Financial Statements
Note 18: Reporting of Outcomes (cont.)
Note 18B - Major Classes of Departmental Revenues and Expenses by Output Group and Outputs
Outcome 1 Output Group 1 Total 2003 2002 2003 2002 F
$’000 $’000 $’000 $’000 forinancial statements theyearended 30June 2003 Departmental Expenses Employees 4 000 3 786 4 000 3 786 97 Suppliers 1 591 1 400 1 591 1 400 Depreciation and amortisation 78 131 78 131 Other expenses - 46 - 46 Total departmental expenses 5 669 5 363 5 669 5 363 Funded by Revenues from government 5 315 5 065 5 315 5 065 Sale of goods and services 60 173 60 173 Interest 10 123 10 123 Other non-taxation revenues - 44 - 44 Total departmental revenues 5 385 5 405 5 385 5 405
Outcome 1 is described in Note 1.1. The Capital Use Charge is not included in any of the outcomes as it is not an operating expense in end-of-year financial reports.
GLOSSARY
Terms used in fiscal equalisation equal per capita assessment method (EPC) The assessment of standardised expenditure or revenue in a category for each State as equal to the Australian average amount per head of population. financial assistance grants That element of the general revenue pool which is not allocated to a particular purpose and is not special revenue assistance. fiscal equalisation A distribution of general revenue grants which gives each State the capacity to provide the average standard of State-type public services assuming that it does so at an average level of operational efficiency and makes the average effort to raise revenue from its own sources. general revenue grants Untied grants from the Australian Government to the States. In accordance with the terms of reference, grants are sometimes reclassified retrospectively by the Commission from specific purpose payments to general revenue grants to match changed Commonwealth- State financial arrangements in the year of application. general revenue pool or general revenue grants pool The pool of funds made available by the Australian Government as untied financial assistance. needs The difference between standardised expenditure and standard expenditure or standard revenue and standardised revenue. Needs can be either positive or negative. pool See general revenue pool. relativity A per capita weight applied to a State’s population to calculate its share of the general revenue pool. relevant population The eligible population from which demand for a service arises; often the whole State population.
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Glossary
review The process in which from time to time the Commission reconsiders the methods used to calculate State relativities, according to terms of reference provided by the responsible Minister. review period The years which form the basis of the assessments. specific purpose payments (SPPs) Australian Government payments to States, under section 96 of the Constitution, to be used for purposes specified by the Australian Government. Some are conditional on States incurring a specified level or proportion of expenditure from their own resources. standard The benchmark against which the performance or characteristics of a State can be assessed. It is derived from the experience of Australia as a whole (the Australian average standard), and may be a financial standard or a policy standard. update The annual assessment of State relativities undertaken by the Commission between reviews. Update assessments incorporate new budgetary developments and the most recent available data, as required by terms of reference provided by the responsible Minister. In general, the methods used to calculate the relativities are those adopted in the most recent review. year of application The year to which the relativities assessed by the Commission are to be used to distribute the pool. years of review See review period.
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INDEX
2003 Update of State revenue sharing relativities 7 2004 Review of methods used to calculate relativities 10 Advertising and market research 24 Asset management 24 Australian workplace agreements 21 Certified agreement 21 Committees 17 Commonwealth Disability Strategy 64 Commonwealth Grants Commission Act 1973 27 Competitive tendering and contracting 25 Compliance with Senate Orders 54 Consultants engaged during 2002-03 62 Contact officer 26 Corporate governance 14 Corporate plan 14 Discretionary grants 26 Discussion papers 52 Divisions of the Commission 3 Ecologically sustainable development and environmental performance 25 Financial results 13 Financial statements for the year ended 30 June 2003 65 Freedom of Information 57 Information dissemination 12, 51 Internal and external scrutiny and compliance 18 Internet address 26 Major outcomes 1 Management and accountability 14 Managing and developing human resources 19
100 Index
Mission statement and strategic plan 55 Occupational health and safety 60 Organisational arrangements 4 Organisational chart 16 Outcome – fiscal equalisation 6 Outcome groups 4 Outlook for 2003-04 2 Overview 1 Papers presented to conferences and seminars 54 Performance of the Commission 6 Postal address 26 Purchasing 24 Relationship with the Department of Finance and Administration 14 Report on Jervis Bay Territory 11 Reporting structures and responsibilities 15 Reports 51 Risk management and fraud control 15 Social justice 13 Terms of Reference, General Revenue Grant Relativities, 2003 Update 43 Terms of Reference, Jervis Bay Territory 48 Terms of Reference, Review of General Revenue Grant Relativities, 2004 46 The Commission and its employees 14 Training and development strategies 22 Use of consultants 24 Visitors to the Commission 54 Working papers 52
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