Department of Finance Annual Report 2018 –19 ANNUAL Overview REPORT Performance Agency Statements Financial Indicators PerformanceKey Disclosures Overview Statement of compliance Performance Agency For the year ended 30 June 2019 About this report Disclosure and compliance HON BEN WYATT MLA Welcome to our 2018-19 Annual Report. Includes our financial statements TREASURER; MINISTER FOR FINANCE; The Report outlines and actual results for both financial ABORIGINAL AFFAIRS; LANDS our operational, financial and business and non-financial performance. performance for the financial year and is In accordance with section 63 of the Financial We encourage feedback. Statements Financial structured Management Act 2006, I hereby submit for Please email us so we can improve in the following areas: your information and presentation to Parliament, our Annual Report next year. the Annual Report of the Department of Finance for the financial year ended 30 June 2019. Overview Contact details for the Department Includes comments from the Director are listed on the back of the report. The Annual Report has been prepared General, Jodi Cant, outlines the changes [email protected] in accordance with the provisions of the made to the organisation over the Financial Management Act 2006. year and provides a snapshot of our Department of Finance Annual Report performance. 2018-19 © Department of Finance 2019 Agency performance Showcases the achievements ISN 2203-594X (Print) Jodi Cant of our people across our main functional ISN 2203-5958 (Online) Director General Indicators PerformanceKey areas – Advise, Build, 23 August 2019 Buy and Collect. Key legislation The Department of Finance Significant issues complies with all relevant legislation Outlines the issues we faced over the that governs its functions. year and our approach to solving these issues. The Department also has responsibility for the administration of 21 Acts and collected taxes, duties and fees, and paid subsidies, grants and rebates during 2018-19 in accordance with legislation. Disclosures Cover: Construction of Bob Hawke College (formerly known as the Inner City College), Subiaco Overview Contents Overview Performance Agency 06 Agency Performance 18 Statements Financial Financial 60 Statements Key Performance Indicators 124 Indicators PerformanceKey Disclosures 144 Contact Us 162 Disclosures Artist impression of the New Museum Department of Finance Annual Report 2018-19 | 5 Overview Overview Performance Agency Performance Management Director General’s Overview Framework Year in Review Advise, Build, Buy and Collect Statements Financial Operational Structure and Governance Indicators PerformanceKey Disclosures We collected around $7 billion of We are passionate about There were plenty of challenges Overview revenue on behalf of government modernising the way in which the we faced over the past year. I am for civic use, and did so with the public service operates through the particularly focused on getting the customer in mind. Our ongoing focus transition to Activity Based Work right people in the right jobs while on the transition to digital services – an agile, collaborative and also improving our gender and provides flexibility and reduces sustainable work environment. diversity balance. How can we deliver the administrative burden on the services to the public if we do not We are inspiring and influential taxpayer. accurately reflect the public? in our implementation of the This year marked the start of an Aboriginal Procurement Policy. We remain committed to responding Director organisational review. We have We recognise the benefits that to our challenges and to delivering listened to our customers and staff government contracts can have on practical, cost-effective and quality and are reorganising our structure to Aboriginal communities and the new outcomes across government to Performance Agency improve services to our wide range employment opportunities that they benefit Western Australians. of stakeholders and better utilise the can create for Aboriginal people General’s talent we have within the business. across the State. We are conducting business with We are honest and respectful. our values in mind. Finance staff are located across the State, including in 12 regional offices, We are bold and innovative and we value honest and respectful Overview as evident in our approach to communication with each other digital solutions. and our customers. Finance invests We are committed to realising in its people, through training and savings for government and the events, mentoring opportunities and taxpayer, as demonstrated by our nationally recognised graduate Statements Financial the $113 million in savings for the program. Government Office Accommodation The Department of Finance government and reduce the Reform Program. continues to be a central government confusion experienced by public agency providing strategic advice, sector employees in procuring goods leadership and cost-effective services and works. services to our customers. We again played a significant role I joined as Director General in August 2018 I joined as Director General in August in the construction of major public enthusiastic about enhancing 2018 enthusiastic about enhancing infrastructure, including the New Finance’s role within the public Museum project, while also delivering Finance’s role within the public sector sector and becoming functional new developments and upgrades to leaders in delivering the whole-of- schools, health facilities and prisons. and becoming functional leaders in Indicators PerformanceKey government targets outlined in the This year we delivered more than 75 delivering the whole-of-government targets WA Government’s Our Priorities: projects with a combined budget Sharing Prosperity strategy. of approximately $480 million on behalf of other departments including We are an agency that delivers Education, Justice and Health. Jodi Cant – Director General a wide variety of services to our customers. Put simply, we advise, Finance continues to realise significant build, buy and collect. savings in government procurement by using government’s buying power This year we have advised to get value-for-money on behalf Government and our agency of the taxpayer. I am particularly counterparts on whole-of-government impressed with the savings we have Disclosures reform initiatives, including leading the generated through the electricity Enhance Public Sector Procurement Common Use Arrangement (CUA). reform initiative. A framework has been developed with an intent to make it easier for suppliers and contractors to do business with Department of Finance Annual Report 2018-19 | 6 Department of Finance Annual Report 2018-19 | 7 Year in Overview review Performance Agency 4% $113m 75 Four per cent of government Achieved a total saving of more Delivered more than 75 contracts were awarded to Aboriginal than $113 million as part of the infrastructure projects with a 7 OF 20 businesses in the first six months Government Office Accommodation combined budget in excess of the Aboriginal Procurement Reform Program. of $480 million. Transitioned approximately 850 Contributed to 7 of the 20 whole-of-government Policy, representing a 400 per cent on premise servers to 330 virtual reform projects, including leading the Enhance Public exceedance of the first year target. servers using cloud technology. Sector Procurement initiative. Statements Financial MAINTENANCE COLLECTED AROUND REQUESTS $7 BILLION TAXATION Actioned more than 160,000 maintenance REVENUE ON BEHALF requests from government OF GOVERNMENT. agencies across the 160,000 financial year. $7b Indicators PerformanceKey Manage 33 2 CUA contracts through which $1 billion of goods 560,000m Disclosures AUSTRALIA’S and services 97% is purchased A 97 per cent satisfaction NUMBER 1 GRADUATE Manage over 560,000 square metres of annually. rate in Finance procurement office accommodation in leased and owned professionalism. EMPLOYER VOTED BY buildings across the State. GRADUATES. 33 Department of Finance Annual Report 2018-19 | 8 Department of Finance Annual Report 2018-19 | 9 Values The transition to the new structure is Committees Overview expected to be challenging but the As part of the transformation to There is an increased focus Corporate Executive strongly believe the new structural model we have on our values; delivering services it will position the agency to achieve streamlined our processes to be that are reflective of being: its new objectives and become a more efficient and customer focused. bold and innovative stronger asset for government. As a result, the following committees were disbanded this year: inspiring and influential Enabling legislation • Finance and Procurement Operational passionate and committed The Department of Finance was Committee; established as a department on • People and Communications honest and respectful 1 July 2011, under section 35 of the Committee; and Public Sector Management Act 1994. Examples of our values in action this • Digital Services Information Performance Agency Structure and year are showcased as case studies Responsible Minister Committee. throughout the Annual Report. The Department of Finance reports The functions and responsibilities to the Minister for Finance, held by Consultation with staff will of these committees have transferred the Hon Ben Wyatt MLA. continue into the next financial to the Corporate Executive. Governance year with a confirmed operating The Audit and Risk Management