ANNUAL REPORT 2016–2017 Department of Water Department of Water 168 St Georges Terrace Perth Western Australia 6000 Telephone +61 8 6364 7000 Facsimile +61 8 6364 7001 National Relay Service 13 36 77 dwer.wa.gov.au Statement of compliance © Government of Western Australia | September 2017 For the year ended 30 June 2017 This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, Hon. Dave Kelly. MLA non-commercial use or use within your organisation. Apart from any use as Minister for Water permitted under the Copyright Act 1968, all other rights are reserved. Requests and inquiries concerning reproduction and rights should be addressed to the Department of Water. In accordance with section 63 of the Financial Management Act 2006, Disclaimer I hereby submit for your information and presentation to Parliament, This document has been published by the Department of Water. Any the Annual Report for the Department of Water for the financial year representation, statement, opinion or advice expressed or implied in this ended 30 June 2017. publication is made in good faith and on the basis that the Department of The Annual Report has been prepared in accordance with the Water and its employees are not liable for any damage or loss whatsoever provisions of the Financial Management Act 2006. which may occur as a result of action taken or not taken, as the case may be in respect of any representation, statement, opinion or advice referred to herein. Professional advice should be obtained before applying the information contained in this document to particular circumstances. The Department of Water and Environmental Regulation was established by the Government of Western Australia on 1 July 2017. It is a result of the amalgamation of the Department of Environmental Regulation, Department Matt Squires of Water and the Office of the Environmental Protection Authority. This Reporting Officer publication may contain references to previous government departments 14 September 2017 and programs. Please email the Department of Water and Environmental Regulation to clarify any specific information. This publication is available at our website dwer.wa.gov.au or for those with special needs it can be made available in alternative formats such as audio, large print, or Braille. ISBN 978-1-925524-46-8 (print) ISBN 978-1-925524-47-5 (online) DEPARTMENT OF WATER: ANNUAL REPORT 2016–2017 CONTENTS DISCLOSURES AND LEGAL COMPLIANCE 61 Financial statements 62 Auditor General's opinion 62 Certification of financial statements 65 SIGNIFICANT ISSUES IMPACTING THE AGENCY 59 Ministerial directives 112 Other financial disclosures 112 AGENCY PERFORMANCE 17 Significant issues 60 Governance disclosures 112 OVERVIEW OF THE AGENCY 1 Service 1: Government policy requirements 115 Water information and advice 18 Feedback form 119 About the department 2 Service 2: From the Director General 3 Water planning, allocation and Contact us 120 optimisation 26 Executive summary: 2016–2017 at a glance 4 Service 3: Operational structure 5 Water regulation, licensing and industry governance 41 Organisational structure 7 Actual results versus budget targets for Organisational chart 11 performance management frameworks 49 Performance management framework 12 Certification of key performance indicators 49 Outcome-based management framework 15 Outcome-based management framework 50 Key efficiency indicators 52 DEPARTMENT OF WATER: ANNUAL REPORT 2016–2017 iii iv water.wa.gov.au OVERVIEW In this section OVERVIEW OF THE AGENCY 1 About the department 2 From the Director General 3 Executive summary: 2016–2017 at a glance 4 Operational structure 5 Organisational structure 7 Organisational chart 11 Performance management framework 12 Outcome-based management framework 15 DEPARTMENT OF WATER: ANNUAL REPORT 2016–2017 1 About the department 2016–17 was the final year of the Department of Water’s In 2016–17, the Department of Water had stewardship In 2016–17, the Department of Water ensured the state’s operations. From 1 July 2017 it has combined with the of the water system in Western Australia and current and future water needs were protected and Department of Environmental Regulation and the Office undertook a holistic approach to balancing demands managed by providing: of the Environmental Protection Authority to form the on water resources. Department of Water and Environmental Regulation. • Certainty – in how water is protected and managed The department collaborated with the community, water for productive, sustainable use, and how it is Water is one of Western Australia’s most precious natural service providers, state government agencies and other managed in the landscape resources and the way water resources and water partners to develop policies and practices that facilitate services are managed and used is central to the state’s good water management outcomes. • Security – in providing confidence to users to make liveability, prosperity and natural environments. investment decisions that support economic The department’s statewide presence, combined development, including transparent decision-making Active management of water resources and effective with local knowledge and relationships and excellent and efficient water services enable Western Australian science, allowed it to actively monitor opportunities • Efficiency – in how water is used, including in natural communities and the economy to thrive, while and emerging issues and address them in a timely and settings such as public open space; by businesses, supporting and protecting the environment. effective way. such as irrigated agriculture and mining; and by communities, such as liveable neighbourhood Water is an enabler of economic and social By engaging, informing, listening to and collaborating programs development, when managed in an environmentally with stakeholders, the department developed and sustainable way. delivered mutually beneficial solutions. • Effectiveness – in how water is made available at a suitable quality, including how it is treated, accessed A growing population, expanding economy and the and delivered impacts of a variable and changing climate mean that effective and informed management is central to • Protection – for the natural environment, waterways balancing competing demands for the state’s water and drinking water quality resources and delivering effective water services. 2 OVERVIEW From the Director General A new Department of Water and Environmental This included boosting water sensitive design through We also cut red tape and made it easier to do business Regulation began 1 July 2017 – a combination of the the department’s involvement in the Co-operative by providing greater online accessibility to information former Department of Environment Regulation, Office Research Centre for Water Sensitive Cities and increased and services. of the Environmental Protection Authority and the collaboration with local government authorities to Department of Water. As such, 2016–17 was the final year identify and harness alternative water supply options for I thank our stakeholders and partners, in state and local of the Department of Water’s operations. irrigating parks, gardens and recreation areas. government, industry, academia and the community, who have worked with us in the management of Western The Premier announced the formation of the new We continued to progress water knowledge and Australia’s water resources. department in April 2017 and for the next two months, opportunities for irrigated agriculture across the state the Department of Water worked with the Department with the Water for Food program, as it entered its third I congratulate and recognise the work of our dedicated of Environment Regulation and the Office of the year of operation. Department of Water staff across the state who will by Environmental Protection Authority to establish the new now be working for the new Department of Water and department by 1 July. Other successful programs implemented during 2016–17 Environmental Regulation. included water demand modelling to enable investment The new Department of Water and Environmental decisions of regional and state significance, development Our staff are our foundation and our future and they Regulation is responsible for environment and water of drainage and water management projects, and can be very proud of the work they do in making such regulation. It will serve as a ‘one stop shop’ for industry several groundwater investigations. Each of these has an important contribution to the wellbeing of Western and developers, aiming to streamline and simplify helped us better manage water resources across the Australia and its population. regulation. state in light of Western Australia’s changing climate and growing population. I am pleased the successful programs, projects and policies of the Department of Water undertaken in Providing advice to reduce flood risk and the publication 2016–17 will form essential components of the new of latest research findings about aquifers, as well as Department of Water and Environmental Regulation. managing nutrients and waterways health, were other key projects conducted during the year. In 2016–17 the Department of Water continued to support the critical role of water in growing and Mike Rowe transforming the state. DEPARTMENT OF WATER: ANNUAL REPORT 2016–2017 3 OVERVIEW Executive summary: 2016–2017 at a glance This was the final year of the Department