Disclosures and legal compliance

Certification of key performance indicators

for the year ended 30 June 2013

I hereby certify that the key performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Public Sector Commission’s performance, and fairly represent the performance of the Public Sector Commission for the financial year ended 30 June 2013.

M C Wauchope
ACCOUNTABLE AUTHORITY
30 August 2013

A Alderson
CHIEF FINANCE OFFICER
30 August 2013

Auditor General’s report

Note: The Auditor General's report letter can be found in the PDF version. To request this letter in an alternative format, please contact the Public Sector Commission.

Statement of comprehensive income

for the year ended 30 June 2013

 

Note

2013 $000

2012 $000

COST OF SERVICES

Expenses

Employee benefits expense

6

17 373

18 034

Supplies and services

7

5 332

5 912

Depreciation and amortisation expense

8

63

81

Accommodation expenses

9

2 040

2 224

Grants and subsidies

10

267

1 176

Loss on disposal of non-current assets

11

-

138

Other expenses

12

79

65

Total cost of services

 

25 154

27 630

Income

Revenue

User charges and fees

13

597

865

Commonwealth grants and contributions

15

7

12

Other revenue

14

335

254

Total revenue

 

939

1 131

Total income other than income from State Government

 

939

1 131

NET COST OF SERVICES

 

24 215

26 499

INCOME FROM STATE GOVERNMENT

Service appropriation

 

27 730

24 121

Services received free of charge

 

1 282

1 337

Royalties for Regions Fund

 

397

231

Total income from State Government

16

29 409

25 689

SURPLUS/(DEFICIT) FOR THE PERIOD

 

5 194

(810)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

 

5 194

(810)

See also the ‘Schedule of income and expenses by service’. The ‘Statement of comprehensive income’ should be read in conjunction with the accompanying notes.

Statement of financial position

as at 30 June 2013

 

Note

2013 $000

2012 $000

ASSETS

Current assets

Cash and cash equivalents

28

6 284

2 288

Restricted cash and cash equivalents

17

159

212

Receivables

18

857

839

Amounts receivable for services

19

164

145

Other current assets

20

559

696

Total current assets

 

8 023

4 180

Non-current assets

Restricted cash and cash equivalents

17

515

384

Amounts receivable for services

19

6 094

5 432

Property, plant and equipment

21

63

96

Intangible assets

22

510

-

Total non-current assets

 

7 182

5 912

TOTAL ASSETS

 

15 205

10 092

LIABILITIES

Current liabilities

Payables

24

1 463

1 641

Provisions

25

4 480

4 527

Other current liabilities

26

141

-

Total current liabilities

 

6 084

6 168

Non-current liabilities

Provisions

25

1 052

1 049

Total non-current liabilities

 

1 052

1 049

TOTAL LIABILITIES

 

7 136

7 217

NET ASSETS

 

8 069

2 875

Equity

27

   

Accumulated surplus

 

8 069

2 875

TOTAL EQUITY

 

8 069

2 875

See also the ‘Schedule of assets and liabilities by service’. The ‘Statement of financial position’ should be read in conjunction with the accompanying notes.

Statement of changes in equity

for the year ended 30 June 2013

 

Note

Accumulated surplus/(deficit) $000

Total equity $000

Balance at 1 July 2011

27

3 877

3 877

Changes in accounting policy or correction of prior period errors

 

(192)

(192)

Restated balance at 1 July 2011

 

3 685

3 685

Total comprehensive income for the year

 

(810)

(810)

Balance at 30 June 2012

 

2 875

2 875

Total comprehensive income for the year

 

5 194

5194

Balance at 30 June 2013

 

8 069

8 069

The ‘Statement of changes in equity’ should be read in conjunction with the accompanying notes.

Statement of cash flows

for the year ended 30 June 2013

 

Note

2013 $000

2012 $000

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation

 

26 904

23 642

Holding account drawdowns

 

145

-

Royalties for Regions Fund

 

397

231

Net cash provided by State Government

 

27 446

23 873

Utilised as follows:

     

CASH FLOWS FROM OPERATING ACTIVITIES

     

Payments

     

Employee benefits

 

(17 245)

(18 186)

Supplies and services

 

(4 372)

(4 647)

Accommodation

 

(2 038)

(1 946)

Grants and subsidies

 

(267)

(962)

GST payments on purchases

 

(777)

(904)

GST payments to taxation authority

 

(138)

(165)

Receipts

User charges and fees

 

664

796

Commonwealth grants and contribution

 

7

12

GST receipts on sales

 

128

171

GST receipts from taxation authority

 

845

878

Other receipts

 

360

390

Net cash provided by/(used in) operating activities

28

(22 833)

(24 563)

CASH FLOWS FROM INVESTING ACTIVITIES

     

Payments

     

Purchase of non-current physical assets

 

(539)

(63)

Net cash provided by/(used in) investing activities

 

(539)

(63)

Net increase/(decrease) in cash and cash equivalents

 

4 074

(753)

Cash and cash equivalents at the beginning of period

 

2 884

3 637

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

28

6 958

2 884

The ‘Statement of cash flows’ should be read in conjunction with the accompanying notes.

Schedule of income and expenses by service

for the year ended 30 June 2013

 

Service 1 Public sector leadership

 

Service 2 Assistance and support

Service 3 Oversight and reporting

Total

 

2013
$000

2012
$000

 

2013
$000

2012
$000

2013
$000

2012
$000

2013
$000

2012
$000

COST OF SERVICES

Expenses

Employee benefits expense

2 012

1 737

 

12 670

13 553

2 691

2 744

17 373

18 034

Supplies and services

312

305

 

4 521

5 085

499

522

5 332

5 912

Depreciation and amortisation expense

3

7

 

32

67

28

7

63

81

Accommodation expenses

212

309

 

1 508

1 638

320

277

2 040

2 224

Grants and subsidies

18

-

 

220

1 176

29

-

267

1 176

Carrying amount of non-current assets disposed

-

9

 

-

111

-

18

-

138

Other expenses

7

9

 

66

43

6

13

79

65

Total cost of services

2 564

2 376

 

19 017

21 673

3 573

3 581

25 154

27 630

Income

User charges and fees

-

-

 

597

865

-

-

597

865

Commonwealth grants and contributions

-

-

 

7

12

-

-

7

12

Other revenue

29

18

 

274

226

31

10

335

254

Total income other than income from State Government

29

18

 

878

1 103

31

10

939

1 131

NET COST OF SERVICES

2 535

2 358

 

18 139

20 570

3 542

3 571

24 215

26 499

INCOME FROM STATE GOVERNMENT

Service appropriation

2 881

2 060

 

20 278

17 946

4 571

4 115

27 730

24 121

Assets assumed/(transferred)

-

-

 

-

-

-

-

-

-

Resources received free of charge

142

113

 

927

997

213

227

1 282

1 337

Royalties for Regions Fund

-

-

 

397

231

-

-

397

231

Total income from State Government

3 023

2 173

 

21 602

19 174

4 784

4 342

29 409

25 689

Surplus/(deficit) for the period

488

(185)

 

3 463

(1 396)

1 242

771

5 194

(810)

The ‘Schedule of income and expenses by service’ should be read in conjunction with the accompanying notes. Note 2(c) explains the restructure of the six services reported for 2011/12 to the three services reported for 2012/13.

Schedule of assets and liabilities by service

as at 30 June 2013

 

Service 1
Public sector leadership

Service 2
Assistance and support

Service 3
Oversight and reporting

General -
Not attributed

Total

 

2013
$000

2012
$000

2013
$000

2012
$000

2013
$000

2012
$000

2013
$000

2012
$000

2013
$000

2012
$000

ASSETS

Current assets

239

187

2 072

2 310

386

359

5 326

1 324

8 023

4 180

Non-current assets

714

501

4 861

4 416

1 607

995

-

-

7 182

5 912

Total assets

953

688

6 933

6 726

1 993

1 354

5 326

1 324

15 205

10 092

LIABILITIES

Current liabilities

669

617

4 283

4 353

880

864

252

334

6 084

6 168

Non-current liabilities

108

71

745

762

199

216

-

-

1 052

1 049

Total liabilities

777

688

5 028

5 115

1 079

1 080

252

334

7 136

7 217

NET ASSETS

176

-

1 905

1 611

914

274

5 074

990

8 069

2 875

The ‘Schedule of assets and liabilities by service’ should be read in conjunction with the accompanying notes. Note 2(c) explains the restructure of the six services reported for 2011/12 to the three services reported for 2012/13.

Summary of consolidated account appropriations and income estimates

for the year ended 30 June 2013

 

2013
Estimate
$000

2013
Actual
$000

Variance
$000

2013
Actual
$000

2012
Actual
$000

Variance
$000

DELIVERY OF SERVICES

Item 6 - Net amount appropriated to deliver services

27 779

26 955

824

26 955

22 915

4 040

Section 25 Transfer of service appropriation

-

(466)

466

(466)

-

(466)

Amount authorised by other statutes

           

Salaries and Allowances Act 1975

1 224

1 241

(17)

1 241

1 206

35

Total appropriations provided to deliver services

29 003

27 730

1 273

27 730

24 121

3 609

GRAND TOTAL

29 003

27 730

1 273

27 730

24 121

3 609

             

Details of expenses by service

 

Service 1 - Public sector leadership

4 129

2 564

1 565

2 564

2 376

188

Service 2 - Assistance and support

20 020

19 017

1 003

19 017

21 673

(2 656)

Service 3 - Oversight and reporting

7 251

3 573

3 678

3 573

3 581

(8)

Contribution to Responsible Financial Management

(550)

-

(550)

-

-

-

Total cost of services

30 850

25 154

5 696

25 154

27 630

(2 476)

Less total income

(933)

(939)

6

(939)

(1 131)

192

Net cost of services

29 917

24 215

5 702

24 215

26 499

(2 284)

Adjustments

(914)

3 515

(4 429)

3 515

(2 378)

5 893

Total appropriations provided to deliver services

29 003

27 730

1 273

27 730

24 121

3 609

             

Capital expenditure

 

Purchase of non-current physical assets

145

539

(394)

539

63

476

Adjustment for other funding sources

(145)

(539)

394

(539)

(63)

(476)

Capital contribution (appropriation)

-

-

-

-

-

-

Adjustments comprise movements in cash balances and other accrual items such as receivables, payables and superannuation. Note 33 ‘Explanatory statement’ provides details of any significant variations between estimates and actual results for 2013 and between the actual results for 2013 and 2012. Note 2(c) explains the restructure of the six services reported for 2011/12 to the three services reported for 2012/13.

Notes to the financial statements

for the year ended 30 June 2012

1. Australian Accounting Standards

General

The Commission’s financial statements for the year ended 30 June 2013 have been prepared in accordance with Australian Accounting Standards. The term ‘Australian Accounting Standards’ includes Standards and Interpretations issued by the Australian Accounting Standards Board (AASB).

The Commission has adopted any applicable, new and revised Australian Accounting Standards from their operative dates.

Early adoption of standards

The Commission cannot early adopt an Australian Accounting Standard unless specifically permitted by Treasurer’s Instruction 1101 - Application of Australian Accounting Standards and Other Pronouncements. No Australian Accounting Standards that have been issued or amended but not operative have been early adopted by the Commission for the annual reporting period ended 30 June 2013.

2. Summary of significant accounting policies

a) General statement

The Commission is a not-for-profit entity that prepares general purpose financial statements prepared in accordance with Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AAAB as applied by the Treasurer’s instructions. Several of these are modified by the Treasurer’s instructions to vary application, disclosure, format and wording.

The Financial Management Act 2006 and the Treasurer’s instructions impose legislative provisions that govern the preparation of financial statements and take precedence over Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB.

Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements.

b) Basis of preparation

The financial statements have been prepared on the accrual basis of accounting using the historical cost convention.

The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated.

The financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars ($000).

Note 3 ‘Judgements made by management in applying accounting policies’ discloses judgements that have been made in the process of applying the Commission’s accounting policies resulting in the most significant effect on the amounts recognised in the financial statements.

Note 4 ‘Key sources of estimation uncertainty’ discloses key assumptions made concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

c) Reporting entity

The reporting entity comprises the Commission.

Mission

The Commission’s mission is to lead and promote excellence and integrity in the public sector.

The Commission is mainly funded by parliamentary appropriations. It provides training services on a fee for service basis.

Services

The Commission provides the following services:

  • Service 1 Public sector leadership – To identify and develop policy and strategic initiatives that will position the public sector to meet future challenges.
  • Service 2 Assistance and support – To develop the effectiveness of the public sector workforce by providing advice, assistance and training to Ministers, agencies and employees.
  • Service 3 Oversight and reporting – To monitor and report to parliament and ministers on compliance with the Public Sector Management Act 1994 and the Public Interest Disclosure Act 2003.

A review and restructure of the Commission’s services has resulted in the six (6) services reported for 2011/12 being amalgamated into three (3) services effective from 1 July 2012. The six former services (which appeared in the 2012/13 Budget papers) were:

  • Service 1 – Advice and assistance
  • Service 2 – Public sector reform
  • Service 3 – Professional development and training
  • Service 4 – Development and monitoring of human resource standards, ethical codes and public interest disclosure guidelines
  • Service 5 – Advice and evaluation of equity and diversity in public employment
  • Service 6 – Independent chief executive officer selection and recruitment advice

d) Contributed equity

AASB Interpretations 1038 - Contributions by owners made to wholly-owned public sector entities requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions. Capital appropriations have been designated as contributions by owners by Treasurer’s Instruction 955 - Contributions by owners made to wholly owned public sector entities and have been credited directly to contributed equity.

The transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal.

e) Income

Revenue recognition

Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows:

Provision of services

Revenue is recognised on delivery of the service to the client or by reference to the stage of completion of the transaction.

Service appropriations

Service appropriations are recognised as revenues at fair value in the period in which the Commission gains control of the appropriated funds. The Commission gains control of appropriated funds at the time those funds are deposited into the Commission’s bank account or credited to the ‘Amounts receivable for services (Holding Account)’ held at Treasury.

Net appropriation determination

The Treasurer may make a determination providing for prescribed receipts to be retained for services under the control of the Commission. In accordance with the determination specified in the 2012/13 Budget statements, the Commission retained $1 878 000 in 2013 ($1 991 000 in 2012) from the following:

  • proceeds from fees and charges
  • Commonwealth grants and contributions
  • other revenue
  • GST input credits
  • GST receipts on sales.

Grants, donations, gifts and other non-reciprocal contributions

Revenue is recognised at fair value when the Commission obtains control over the assets comprising the contributions which is usually when cash is received.

Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

Royalties for Regions funds are recognised as revenue at fair value in the period in which the Commission obtains control over the funds. The Commission obtains control of the funds at the time the funds are deposited into the Commission’s bank account.

f) Property, plant and equipment

Capitalisation/expensing of assets

Items of property, plant and equipment costing $5000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment costing less than $5000 are immediately expensed direct to the ‘Statement of comprehensive income’ (other than where they form part of a group of similar items which are significant in total).

Initial recognition and measurement

Property, plant and equipment are initially recognised at cost.

For items of property, plant and equipment acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

Subsequent measurement

The Commission does not hold land, buildings or infrastructure assets. All items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.

Depreciation

All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits.

Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are:

  • computer hardware - three years
  • office equipment - five years

Works of art controlled by the Commission are classified as property, plant and equipment which are anticipated to have very long and indefinite useful lives. Their service potential has not, in any material sense, been consumed during the reporting period and so no depreciation has been recognised.

g) Intangible assets

Capitalisation/expensing of assets

Acquisitions of intangible assets costing $5000 or more and internally generated intangible assets costing $50 000 or more are capitalised. The cost of utilising the assets is expensed (amortised) over their useful lives. Costs incurred below these thresholds are immediately expensed directly to the ‘Statement of comprehensive income’.

Intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses.

Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life which is reviewed annually) on the straight line basis. All intangible assets controlled by the Commission have a finite useful life and zero residual value. The expected useful lives for each class of intangible asset are:

  • computer software - three years
  • lIcenses - three years

Computer software

Software that is an integral part of the related hardware is treated as property, plant and equipment. Software that is not an integral part of the related hardware is treated as an intangible asset. Software costing less than $5000 is expensed in the year of acquisition.

Website costs

Website costs are charged as expenses when they are incurred unless they relate to the acquisition or development of an asset when they may be capitalised and amortised. Generally, costs in relation to feasibility studies during the planning phase of a website, and ongoing costs of maintenance during the operating phase are expensed. Costs incurred in building or enhancing a website, to the extent that they represent probable future economic benefits that can be reliably measured, are capitalised.

h) Impairment of assets

Property, plant and equipment and intangible assets are tested for any indication of impairment at the end of each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. Where an asset measured at cost is written down to recoverable amount, an impairment loss is recognised in profit or loss. Where a previously revalued asset is written down to recoverable amount, the loss is recognised as a revaluation decrement in other comprehensive income. As the Commission is a not-for-profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of the asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs.

Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period irrespective of whether there is any indication of impairment.

The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value of future cash flows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at the end of each reporting period.

i) Leases

The Commission holds operating leases for its office accommodation and motor vehicles. Lease payments are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased property and vehicles.

j) Financial instruments

In addition to cash, the Commission has two categories of financial instrument:

  • receivables
  • financial liabilities measured at amortised cost.

Financial instruments have been disaggregated into the following classes:

Financial assets

  • cash and cash equivalents
  • restricted cash and cash equivalents
  • receivables
  • amount receivable for services

Financial liabilities

  • payables

Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or the face value.

The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material.

k) Cash and cash equivalents

For the purpose of the ‘Statement of cash flows’, cash and cash equivalent (and restricted cash and cash equivalents) assets comprise cash on hand and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value.

l) Accrued salaries

Accrued salaries (refer note 24 ‘Payables’) represent the amount due to staff but unpaid at the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. The Commission considers the carrying amount of accrued salaries to be equivalent to its fair value.

The accrued salaries suspense account (see note 17 ‘Restricted cash and cash equivalent assets’) consists of amounts paid annually into a suspense account over a period of 10 financial years to largely meet the additional cash outflow in each eleventh year when 27 pay days occur instead of the normal 26. No interest is received on this account.

m) Amounts receivable for services (holding account)

The Commission receives funding on an accrual basis. The appropriations are paid partly in cash and partly as an asset (holding account receivable). The accrued amount receivable is accessible on the emergence of the cash funding requirement to cover leave entitlements and asset replacement.

n) Receivables

Receivables are recognised at original invoice amount less an allowance for any uncollectible amounts (i.e. impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written-off against the allowance account. The allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the Commission will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30 days.

o) Payables

Payables are recognised at the amounts payable when the Commission becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as settlement is generally within 30 days.

p) Provisions

Provisions are liabilities of uncertain timing and amount and are recognised where there is a present legal or constructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period.

Provisions - employee benefits

All annual leave and long service leave provisions are in respect of employees’ services up to the end of the reporting period.

Annual leave and long service leave

The liability for annual and long service leave expected to be settled within 12 months after the reporting period is recognised and measured at the undiscounted amounts expected to be paid when the liability is settled. Annual and long service leave not expected to be settled within 12 months after the reporting period is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using the market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash flows.

The provision for annual leave is classified as a current liability as the Commission does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Unconditional long service leave provisions are classified as current liabilities as the Commission does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Conditional long service leave provisions are classified as non-current liabilities because the Commission has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

Superannuation

The Government Employees Superannuation Board (GESB) and other fund providers administer public sector superannuation arrangements in Western Australia in accordance with legislative requirements. Eligibility criteria for membership in particular schemes for public sector employees varies according to commencement and implementation dates.

Eligible employees contribute to the ‘Pension Scheme’, a defined benefit pension scheme closed to new members since 1987, or to the ‘Gold State Superannuation Scheme’ (GSS), a defined benefit lump sum scheme closed to new members since 1995.

The GSS is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, it is a defined contribution plan for agency purposes because the concurrent contributions (defined contributions) made by the Commission to GESB extinguishes the agency’s obligations to the related superannuation liability.

The Commission has no liabilities under the Pension or the GSS schemes. The liabilities for the unfunded Pension Scheme and the unfunded GSS transfer benefits attributable to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS obligations are funded by concurrent contributions made by the Commission to the GESB.

Employees commencing employment prior to 16 April 2007 who were not members of either the Pension or the GSS Schemes became non-contributory members of the ‘West State Superannuation Scheme’ (WSS). Employees commencing employment on or after 16 April 2007 became members of the ‘GESB Super Scheme’ (GESBS). From 30 March 2012, existing members of the WSS or GESBS and new employees became able to choose their preferred superannuation fund providers. The Commission makes concurrent contributions to GESB or other fund providers on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. Contributions to these accumulation schemes extinguish the Commission’s liability for superannuation charges in respect of employees who are not members of the Pension Scheme or GSS.

The GESB makes all benefit payments in respect of the Pension and GSS, and is recouped by the Treasurer for the employer’s share.

Provisions - other

Employment on-costs

Employment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are included as part of ‘Other expenses’ and are not included as part of the Commission’s ‘Employee benefits expense’. The related liability is included in ‘Employment on-costs provision’.

q) Superannuation expense

The superannuation expense in the ‘Statement of comprehensive income’ comprises of employer contributions paid to the GSS (concurrent contributions), the WSS and the GESBS or other superannuation funds. The employer contribution paid to the GESB in respect of the GSS is paid back into the Consolidated Account by the GESB.

r) Assets and services received free of charge or for nominal cost

Assets and services received free of charge or for nominal cost that can be reliably measured are recognised as income at fair value. Where the resource received represents a service that the Commission would otherwise pay for, a corresponding expense is recognised. Receipts of assets are recognised in the ‘Statement of financial position’.

Assets or services received from other State Government agencies are separately disclosed under Income from State Government in the ‘Statement of comprehensive income’.

s) Comparative figures

Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year.

3. Judgements made by management in applying accounting policies

The preparation of financial statements requires management to make judgements about the application of accounting policies that have a significant effect on the amounts recognised in the financial statements. The Commission evaluates these judgements regularly.

Operating lease commitments

The Commission has entered into a number of leases for office accommodation and vehicle fleet whereby it has been determined that the lessor retains substantially all the risks and rewards incidental to ownership. Accordingly, these leases have been classified as operating leases.

4. Key sources of estimation uncertainty

Key estimates and assumptions concerning the future are based on historical experience and various other factors that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Long service leave

Several estimations and assumptions used in calculating the Commission’s long service leave provision include expected future salary rates, discount rates, employee retention rates and expected future payments. Changes in these estimations and assumptions may impact on the carrying amount of the long service leave provision.

5. Disclosure of changes in accounting policy and estimates

Future impact of Australian Accounting Standards not yet operative

The Commission cannot early adopt an Australian Accounting Standard unless specifically permitted by Treasurer’s Instruction 1101 - Application of Australian Accounting Standards and Other Pronouncements. Consequently, the Commission has not applied early any of the following Australian Accounting Standards that have been issued and which may impact the Commission. Where applicable, the Commission plans to apply these Australian Accounting Standards from their application date.

AASB 9 - Financial Instruments

Operative for reporting periods beginning on/after 1 January 2015

This Standard supersedes AASB 139 - Financial Instruments: Recognition and measurement, introducing a number of changes to accounting treatments. AASB 2012-6 Amendments to Australian Accounting Standards - Mandatory Effective Date of AASB 9 and Transition Disclosures amended the mandatory application date of this standard to 1 January 2015. The Commission has not yet determined the application or the potential impact of the Standard.

AASB 13 - Fair Value Management

Operative for reporting periods beginning on/after 1 January 2013

This Standard defines fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. There is no financial impact.

AASB 119 - Employee Benefits

Operative for reporting periods beginning on/after 1 January 2013

This Standard supersedes AASB 119 (October 2010), making changes to the recognition, presentation and disclosure requirements. As the Commission does not operate a defined benefit plan, the impact of the change is limited to measuring annual leave as a long-term employee benefit. The resultant discounting of the annual leave benefit has an immaterial impact.

AASB 1053 - Application of Tiers of Australian Accounting Standards

Operative for reporting periods beginning on/after 1 July 2013

This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements. There is no financial impact.

AASB 1055 - Budgetary Reporting

Operative for reporting periods beginning on/after 1 July 2014

This Standard specifies the nature of budgetary disclosures, the circumstances in which they are to be included in the general purpose financial statements of not-for-profit entities within the GGS. The Commission will be required to disclose additional budgetary information and explanations of major variances between actual and budgeted amounts, though there is no financial impact.

AASB 2010-2 - Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 & 1052 and Int 2, 4, 5, 15, 17, 127, 129 & 1052]

Operative for reporting periods beginning on/after 1 July 2013

This Standard makes amendments to Australian Accounting Standards and Interpretations to introduce reduced disclosure requirements for certain types of entities. There is no financial impact.

AASB 2010-7 - Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Int 2, 5, 10, 12, 19 & 127]

Operative for reporting periods beginning on/after 1 January 2015

This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 9 in December 2010.

AASB 2012-6 amended the mandatory application date of this standard to 1 January 2015. The Commission has not yet determined the application or the potential impact of the Standard.

AASB 2011-8 - Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Int 2, 4, 12, 13, 14, 17, 19, 131 & 132]

Operative for reporting periods beginning on/after 1 January 2013

This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations as the result of issuing AASB 13 in September 2011. There is no financial impact.

AASB 2011-10 - Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) [AASB 1, 8, 101, 124, 134, 1049 & 2011-8 and Int 14]

Operative for reporting periods beginning on/after 1 January 2013

This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 119 in September 2011. There is limited financial impact.

AASB 2011-11 - Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements

Operative for reporting periods beginning on/after 1 July 2013

This Standard gives effect to Australian Accounting Standards - Reduced Disclosure Requirements for AASB 119 (September 2011). There is no financial impact.

AASB 2012-1 - Amendments to Australian Accounting Standards - Fair Value Measurement - Reduced Disclosure Requirements [AASB 3, 7, 13, 140 & 141]

Operative for reporting periods beginning on/after 1 July 2013

This Standard establishes and amends reduced disclosure requirements for additional and amended disclosures arising from AASB 13 and the consequential amendments implemented through AASB 2011-8. There is no financial impact.

AASB 2012-2 - Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets and Financial Liabilities [AASB 7 & 132]

Operative for reporting periods beginning on/after 1 January 2013

This Standard amends the required disclosures in AASB 7 to include information that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position. There is no financial impact.

AASB 2012-3 - Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities [AASB 132]

Operative for reporting periods beginning on/after 1 January 2014

This Standard adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria, including clarifying the meaning of ‘currently has a legally enforceable right of set-off’ and that some gross settlement systems may be considered equivalent to net settlement. There is no financial impact.

AASB 2012-6 - Amendments to Australian Accounting Standards - Mandatory Effective Date of AASB 9 and Transitional Disclosures [AASB 9, 2009-11, 2010-7, 2011-7 & 2011-8]

Operative for reporting periods beginning on/after 1 January 2013

This Standard amends the mandatory effective date of AASB 9 Financial instruments to 1 January 2015. Further amendments are also made to consequential amendments arising from AASB 9 that will now apply from 1 January 2015 and to consequential amendments arising out of the Standards that will still apply from 1 January 2013. There is no financial impact.

AASB 2012-7 - Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 7, 12, 101 & 127]

Operative for reporting periods beginning on/after 1 July 2013

This Standard adds to or amends the Australian Accounting Standards to provide further information regarding the differential reporting framework and the two tiers of reporting requirements for preparing general financial statements. There is no financial impact.

AASB 2012-10 - Amendments to Australian Accounting Standards - Transition Guidance and Other Amendments [AASB 1, 5, 7, 8, 10, 11, 12, 13, 101, 102, 108, 112, 118, 119, 127, 128, 132, 133, 134, 137, 1023, 1038, 1039, 1049, & 2011-7 and Int 12]

Operative for reporting periods beginning on/after 1 January 2013

This Standard makes amendments to AASB 10 and related standards to revise the transition guidance relevant to the initial application of those Standards, and to clarify the circumstances in which adjustments to an entity’s previous accounting for its involvement with other entities are required and the timing of such adjustments.

The Standard was issued in December 2012. The Commission has not yet determined the application or the potential impact of the Standard.

6. Employee benefits expense

 

2013
$000

2012
$000

Wages and salaries(a)

15 818

16 556

Superannuation - defined contribution plans(b)

1 555

1 478

 

17 373

18 034

  1. Includes the value of the fringe benefit to the employee plus the fringe benefits tax component and leave entitlements including superannuation contribution component.
  2. Defined contribution plans include West State, Gold State, GESB and other eligible funds.

Employment on-costs expenses such as workers’ compensation insurance are included at note 12 ‘Other expenses’. The employment on-costs liability is included at note 25 ‘Provisions’.

7. Supplies and services

 

2013
$000

2012
$000

Communications

64

136

Consultants and contractors

4 374

4 894

Consumables

449

658

Travel

130

93

Other

315

131

 

5 332

5 912

8. Depreciation and amortisation expense

 

2013
$000

2012
$000

Depreciation

 

Computer hardware

7

11

Furniture and fittings

-

52

Office equipment

26

18

Amortisation

 

Computer software

13

-

Licenses

17

-

 

63

81

9. Accommodation expenses

 

2013
$000

2012
$000

Lease rentals and outgoings

2 038

2 221

Repairs and maintenance

2

2

Cleaning

-

1

 

2 040

2 224

10. Grants and subsidies

 

2013
$000

2012
$000

Recurrent

 

Government agency grants

231

445

External grants

36

731

 

267

1 176

11. Loss on disposal of non-current assets

 

2013
$000

2012
$000

Proceeds from disposal of non-current assets

 

Computer hardware

-

1

 

-

1

Cost of disposal of non-current assets

 

Furniture and fittings

-

136

Computer hardware

-

3

 

-

139

Net loss

-

138

12. Other expenses

 

2013
$000

2012
$000

Employment on-costs

21

16

Other(a)

58

49

 

79

65

  1. Audit fees, see also note 32 ‘Remuneration of auditor’.

13. User charges and fees

 

2013
$000

2012
$000

Fees

597

865

 

597

865

14. Other revenue

 

 

2013
$000

2012
$000

Recoups

111

148

Recoup insurance(a)

27

-

Contributions by senior officers to the Government Vehicle Scheme

23

27

Other miscellaneous revenue

174

79

 

335

254

  1. Insurance recoups were not separately identified in 2011/12

15. Commonwealth grants and contributions

 

2013
$000

2012
$000

Recurrent grant

7

12

The recurrent grant was a non-reciprocal grant of $6607.58 from Government Skills Australia. The grant was for 2013 and the terms specified that it was to be used for staff training across the public sector. The grant has been recognised in its entirety on receipt as the only condition applying to its use is how it is expended and it is not subject to performance measures in terms of service delivery.

16. Income from State Government

 

2013
$000

2012
$000

Appropriation received during the year

 

Service appropriations(a)

27 730

24 121

Services received free of charge from other State Government agencies during the period:

 

Department of the Premier and Cabinet - corporate support services

838

1 134

Department of Finance - accommodation lease services

355

154

Department of the Attorney General - legal services

89

49

 

1 282

1 337

Royalties for Regions Fund

 

Regional Community Services Account(b)

397

231

 

397

231

 

29 409

25 689

  1. Service appropriations fund the net cost of services delivered. Appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the budgeted depreciation expense for the period and any agreed increase in leave liabilities during the year.
  2. This is a sub-fund within the overarching ‘Royalties for Regions Fund’. The recurrent funds are committed to projects and programs in WA regional areas.

17. Restricted cash and cash equivalent assets

 

2013
$000

2012
$000

Current

 

Royalties for Regions Fund(a)

159

212

Non-current

 

Accrued salaries suspense account(b)

515

384

  1. Unspent funds are committed to projects and programs in WA regional areas.
  2. Amount held in the suspense account is only to be used for the purpose of meeting the 27th pay in a financial year that occurs every 11 years.

18. Receivables

 

2013
$000

2012
$000

Current

 

Receivables

745

682

GST receivable

100

157

 

845

839

Loans and advances

 

Other debtors

12

-

 

12

-

Total current

857

839

The Commission does not hold any collateral as security or other credit enhancements relating to receivables.

19. Amounts receivable for services (Holding Account)

 

2013
$000

2012
$000

Current

164

145

Non-current

6 094

5 432

 

6 258

5 577

Represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability.

20. Other assets

 

2013
$000

2012
$000

Current

 

Prepayments

559

696

 

559

696

21. Property, plant and equipment

 

2013
000$

2012
$000

Computer hardware

 

At cost

22

22

Accumulated depreciation

(22)

(15)

Accumulated impairment losses

-

-

 

-

7

Office equipment

 

At cost

136

136

Accumulated depreciation

(73)

(47)

Accumulated impairment losses

-

-

 

63

89

 

63

96

Reconciliation - Computer hardware

 

Carrying amount at start of period

7

21

Additions

-

-

Transfers

-

-

Other disposals

-

(3)

Impairment losses

-

-

Depreciation

(7)

(11)

Carrying amount at end of period

-

7

Reconciliation - Office equipment

 

Carrying amount at start of period

89

44

Additions

-

63

Transfers

-

-

Other disposals

-

-

Impairment losses

-

-

Depreciation

(26)

(18)

Carrying amount at end of period

63

89

22. Intangible assets

 

2013
$000

2012
$000

Licenses

 

At cost

310

-

Accumulated amortisation

(17)

-

 

293

-

Computer software

 

At cost

230

-

Accumulated amortisation

(13)

-

 

217

-

Total intangible assets

510

-

Reconciliation - Licenses

 

Carrying amount at start of period

-

-

Additions

310

-

Amortisation expense

(17)

-

Carrying amount at end of period

293

-

Reconciliation - Computer software

 

Carrying amount at start of period

-

-

Additions

230

-

Amortisation expense

(13)

-

Carrying amount at end of period

217

-

23. Impairment of assets

There were no indications of impairment to property, plant and equipment at 30 June 2013.

The Commission held no goodwill or intangible assets with an indefinite useful life during the reporting period. At the end of the reporting period there were no intangible assets not yet available for use.

24. Payables

 

2013
$000

2012
$000

Current

 

Payables

1 032

327

Accrued salaries

346

347

Accrued expenses

85

967

 

1 463

1 641

25. Provisions

 

2013
$000

2012
$000

Current

 

Employee benefits provision

 

Annual leave(a)

1 611

1 677

Long service leave(b)

2 433

2 420

Superannuation on-cost

415

428

 

4 459

4 525

Other provisions

 

Employment on-costs(c)

21

2

 

4 480

4 527

Non-current

 

Employee benefits provision

 

Long service leave(b)

942

956

Superannuation on-cost

105

92

 

1 047

1 048

Other provisions

 

Employment on-costs(c)

5

1

 

5

1

 

1 052

1 049

  1. Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after the reporting period. Assessments indicate that actual settlement of the liabilities will occur as follows:

Within 12 months of the end of the reporting period

1 069

950

More than 12 months after the reporting period

701

891

 

1 770

1 841

  1. Long service leave liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after the reporting period. Assessments indicate that actual settlement of the liabilities will occur as follows:

Within 12 months of the end of the reporting period

1 047

1 231

More than 12 months after the reporting period

2 689

2 504

 

3 736

3 735

  1. The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers’ compensation insurance. The provision is the present value of expected future payments. The associated expense, apart from the unwinding of the discount (finance cost), is disclosed in note 12 ‘Other expenses’.

Movement in other provisions

Movements in each class of provisions during the period, other than employee benefits, are set out below:

 

2013
$000

2012
$000

Employment on-cost provision

 

Carrying amount at start of period

3

3

Additional provisions recognised

23

1

Payments/other sacrifices of economic benefits

-

(1)

Carrying amount at end of period

26

3

26. Other liabilities

 

2013
$000

2012
$000

Current

 

Income received in advance

141

-

 

141

-

27. Equity

Equity represents the residual interest in the net assets of the Commission. The Government holds the equity interest in the Commission on behalf of the community.

 

2013
$000

2012
$000

Accumulated surplus/(deficit) (retained earnings)

 

Balance at the start of the year

2 875

3 877

Result for the period

5 194

(810)

Income and expense recognised directly in equity

-

(192)

Balance at the end of the year

8 069

2 875

Total equity at the end of the period

8 069

2 875

28. Notes to the ‘Statement of cash flows’

 

2013
$000

2012
$000

Reconciliation of cash

 

Cash at the end of the financial year as shown in the ‘Statement of cash flows’ is reconciled to the related items in the ‘Statement of financial position’ as follows:

 

Cash and cash equivalents

6 284

2 288

Restricted cash and cash equivalents (note 17)

674

596

 

6 958

2 884

Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities

 

Net cost of services

(24 215)

(26 499)

Non-cash items:

 

Depreciation and amortisation expense (note 8)

63

81

Net gain/(loss) on disposal of non-current assets

-

138

Resources received free of charge (note 16)

1 282

1 337

(Increase)/decrease in assets:

 

Current receivables(a)

(75)

31

Other current assets

137

69

Increase/(decrease) in liabilities:

 

Current payables(a)

(36)

6

Current provisions

(47)

184

Non-current provisions

1

154

Net GST receipts/(payments)(b)

58

18

Change in GST receivables/payables(c)

(1)

(82)

Net cash provided by/(used in) operating activities

(22 833)

(24 563)

  1. Note that the Australian Taxation Office (ATO) receivable/payable in respect of GST and the receivable/payable in respect of the sale/purchase of assets are not included in these items as they do not form part of the reconciling items.
  2. This is the net GST paid/received, i.e. cash transactions.
  3. This reverses out the GST in the receivables and payables.

29. Services provided free of charge

During the year, resources were provided to other agencies free of charge for functions outside the normal operations of the Commission as follows:

 

2013
$000

2012
$000

Salaries and Allowances Tribunal

 

Corporate Services

11

-

30. Commitments

The commitments below are inclusive of GST.

 

2013
$000

2012
$000

Non-cancellable operating lease commitments

 

Commitments for minimum lease payments are payable as follows:

 

Within one year

2 404

2 464

Later than one year and not later than five years(a)

1 501

8 911

Later than five years

-

-

 

3 905

11 375

Other expenditure commitments

 

Other expenditure commitments contracted for at the end of the reporting period but not recognised as liabilities, are payable as follows:

 

Within one year

1 773

-

Later than one year and not later than five years

1 028

-

Later than five years

4

-

 

2 805

-

  1. The significant reduction reflects changed arrangements in relation to accommodation.

31. Remuneration of senior officers

The number of senior officers, whose total of fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year fall within the following bands are:

$

2013

2012

130 001 - 140 000

1

1

150 001 - 160 000

1

2

180 001 - 190 000

1

-

210 001 - 220 000

-

1

250 001 - 260 000

1

2

260 001 - 270 000

1

-

270 001 - 280 000

1

-

500 001 - 510 000

-

1

510 001 - 520 000

1

-

 

2013
$000

2012
$000

Total remuneration of senior officers

1 788

1 678

The total remuneration includes the superannuation expense incurred by the Commission in respect of senior officers.

No senior officers are members of the Pension Scheme.

32. Remuneration of auditor

Remuneration paid or payable to the Auditor General in respect of the audit for the current financial year is as follows:

 

2013
$000

2012
$000

Auditing the accounts, financial statements and performance indicators

50

45

33. Explanatory statement

Significant variations between estimates and actual results for income and expense as presented in the financial statement titled ‘Summary of consolidated account appropriations and income estimates’ are shown below. Significant variations are considered to be those greater than five per cent or $100 000.

Total appropriations provided to deliver services – significant variances between estimate and actual for 2013

 

2013 Estimate $000

2013
Actual
$000

Variance
$000

Net amount appropriated to deliver services

27 779

26 489

1 290

The reduction is primarily due to a combination of changes such as corrective measures to cap FTE ceiling, section 25 transfer of functions and repositioning of appropration to better match expenditure.

Service expenditure – significant variances between estimate and actual for 2013

 

2013 Estimate $000

2013 Actual $000

Variance $000

Service 1 - Public sector leadership

4 129

2 564

1 565

Service 2 - Assistance and support

20 020

19 017

1 003

Service 3 - Oversight and reporting

7 251

3 573

3 678

  • Service 1 - Public sector leadership
    The saving was a result of lower FTEs over the course of the financial year together with the resultant reduction in the share of corporate overheads applied to this Service. It also reflects a portion of the savings required to meet the Commission’s contribution to responsible financial management.
  • Service 2 - Assistance and support
    The saving was a result of lower FTEs over the course of the financial year together with the resultant reduction in the share of corporate overheads applied to this Service. It also reflects a portion of the savings required to meet the Commission’s contribution to responsible financial management.
  • Service 3 - Oversight and reporting
    The saving was a result of lower FTEs over the course of the financial year together with the resultant reduction in the share of corporate overheads applied to this Service. It also includes savings on the allocation for the St Andrews Hostel Inquiry and delays in implementing the Aboriginal employment strategy 2011-2015.

Note 2(c) explains the restructure of the six services reported for 2011/12 to the three services reported for 2012/13.

 

2013 Estimate $000

2013 Actual $000

Variance $000

Capital expenditure

145

539

(394)

The higher expenditure is due to the purchase of software system and associated licences.

Total appropriations provided to deliver services – significant variances between the actual results for 2013 and for 2012

 

2013 Actual $000

2012 Actual $000

Variance $000

Net amount appropriated to deliver services

26 489

22 915

3 574

The increased appropriation largely reflects $1.5m for the St Andrews Hostel Inquiry and $1m for the Aboriginal employment strategy 2011-2015 to place trainees in public sector employment.

Service expenditure – significant variances between the actual results for 2013 and for 2012

 

2013 Actual $000

2012 Actual $000

Variance $000

Service 1 - Public sector leadership

2 564

2 376

188

Service 2 - Assistance and support

19 017

21 673

(2 656)

  • Service 1 - Public sector leadership
    The minor increase is primarily associated with an increased level of activities in this Service area.
  • Service 2 - Assistance and support
    The saving was a result of lower FTEs over the course of the financial year together with the resultant reduction in the share of corporate overheads applied to this Service. It also reflects a portion of the savings required to meet the Commission’s contribution to responsible financial management.
 

2013 Actual $000

2012 Actual $000

Variance $000

Capital expenditure

539

63

476

The higher expenditure is due to the purchase of software system and associated licences.

34. Financial instruments

a) Financial risk management objectives and policies

Financial instruments held by the Commission are cash and cash equivalents, restricted cash and cash equivalents, receivables and payables. The Commission has limited exposure to financial risks. The Commission’s overall risk management program focuses on managing the risks identified below.

Credit risk

Credit risk arises when there is the possibility of the Commission’s receivables defaulting on their contractual obligations resulting in financial loss to the Commission.

The maximum exposure to credit risk at the end of the reporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any allowance for impairment, as shown in the table at note 34(c) ‘Financial instrument disclosures’ and note 18 ‘Receivables’.

Credit risk associated with the Commission’s financial assets is minimal because the main receivable is the amount receivable for services (holding account). For receivables other than government, the Commission trades only with recognised, creditworthy third parties. The Commission has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the Commission’s exposure to bad debts is minimal. At the end of the reporting period there were no significant concentrations of credit risk.

Liquidity risk

Liquidity risk arises when the Commission is unable to meet its financial obligations as they fall due. The Commission is exposed to liquidity risk through its trading in the normal course of business.

The Commission has appropriate procedures to manage cash flows including drawdown of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the Commission’s income or the value of its holdings of financial instruments. The Commission does not trade in foreign currency and is not materially exposed to other price risks. The Commission is not exposed to interest rate risk because apart from minor amounts of restricted cash, all other cash and cash equivalents and restricted cash are non-interest bearing, and the Commission has no borrowings.

b) Categories of financial instruments

The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are:

 

2013
$000

2012
$000

Financial assets

 

Cash and cash equivalents

6 284

2 288

Restricted cash and cash equivalents

674

596

Receivables(a)

7 015

6 259

Financial liabilities

 

Payables

1 463

1 641

  1. The amount of receivables excludes GST recoverable from ATO (statutory receivable).

c) Financial instrument disclosures

Credit risk and interest rate risk exposures

The ‘Interest rate exposures and ageing analysis of financial assets’ table details the Commission’s maximum exposure to credit risk, interest rate exposures and the ageing analysis of financial assets. The Commission’s maximum exposure to credit risk at the end of the reporting period is the carrying amount of the financial assets as shown below. The table discloses the ageing of financial assets that are past due but not impaired and impaired financial assts. The table is based on the information provided to senior management of the Commission.

The Commission does not hold any collateral as security or other credit enhancements relating to the financial assets it holds.

The Commission does not hold any financial assets that had to have their terms renegotiated that would have otherwise resulted in them being past due or impaired.

Liquidity risk

The ‘Interest rate exposures and maturity analysis of financial liabilities’ table details the contractual maturity analysis for financial assets and liabilities. The table includes both interest and principal cash flows. The interest exposure section analyses only the carrying amount of each item.

Fair values

All financial assets and liabilities recognised in the ‘Statement of financial position’, whether they are carried at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair values unless otherwise stated in the applicable notes.

Interest rate exposures and ageing analysis of financial assets

 

Weighted average effective interest rate
%

Carrying amount
$000

Interest rate exposure

Past due but not impaired

Impaired financial assets
$000

Variable interest rate
$000

Non-interest bearing
$000

Up to 3 months
$000

3-12 months
$000

1-2 years
$000

2-3 years
$000

3-4 years
$000

4-5 years
$000

> 5 years
$000

2013

 

Cash and cash equivalents

6 284

-

6 284

-

-

-

-

-

-

-

-

Restricted cash and cash equivalents

674

-

674

-

-

-

-

-

-

-

-

Receivables(a)

757

-

757

687

70

-

-

-

-

-

-

Amounts receivable for services

6 258

-

6 258

-

-

-

-

-

-

-

-

   

13 973

-

13 973

687

70

-

-

-

-

-

-

2012

 

Cash and cash equivalents

2 288

-

2 288

-

-

-

-

-

-

-

-

Restricted cash and cash equivalents

596

-

596

-

-

-

-

-

-

-

-

Receivables(a)

682

-

682

658

24

-

-

-

-

-

-

Amounts receivable for services

5 577

-

5 577

-

-

-

-

-

-

-

-

   

9 143

-

9 143

658

24

-

-

-

-

-

-

  1. The amount of receivables excludes GST recoverable from the Australian Tax Office (statutory receivable).

Interest rate exposures and maturity analysis of financial liabilities

 

Weighted average effective interest rate
%

Carrying amount
$000

Interest rate exposure

Maturity dates

Variable interest rate
$000

Non-interest bearing
$000

Adjustment for discounting
$000

Total nominal amount
$000

Up to 3 months
$000

3-12 months
$000

1-2 years
$000

2-3 years
$000

3-4 years
$000

4-5 years
$000

> 5 years
$000

2013

 

Payables

1 463

-

1 463

-

-

1 463

-

-

-

-

-

-

Other liabilities

-

-

-

-

-

-

-

-

-

-

-

-

   

1 463

-

1 463

-

-

1 463

-

-

-

-

-

-

2012

 

Payables

1 641

-

1 641

-

-

1 627

14

-

-

-

-

-

Other liabilities

-

-

-

-

-

-

-

-

-

-

-

-

   

1 641

-

1 641

-

-

1 627

14

-

-

-

-

-

The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities.

35. Events occurring after the end of the reporting period

There were no events occurring after the reporting date that impact on the financial statements.

36. Affiliated bodies

Salaries and Allowances Tribunal

The Tribunal, established by section 5 of the Salaries and Allowances Act 1975, is a government affiliated body that received administrative support from, but is not subject to operational control by, the Commission. It is funded by parliamentary appropriation of $985 000 for 2012/13 ($647 000 for 2011/12).

37. Contingent liabilities and contingent assets

Contingent liabilities

The Commission has no contingent liabilities.

Contaminated sites

Under the Contaminated Sites Act 2003, the Commission is required to report known and suspected contaminated sites to the Department of Environment Regulation (DER). In accordance with the Act, the DER classifies these sites on the basis of the risk to human health, the environment and environmental values. Where sites are classified as ‘contaminated - remediation required’ or ‘possibly contaminated - investigation required’, the Commission may have a liability in respect of investigation or remediation expenses.

The Commission has no known or suspected contaminated sites.

Contingent assets

The Commission has no contingent assets.

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Key performance indicators

Certification of key performance indicators

I hereby certify that the key performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Public Sector Commission’s performance, and fairly represent the performance of the Public Sector Commission for the financial year ended 30 June 2013.

M C Wauchope
ACCOUNTABLE AUTHORITY
30 August 2013

Overview of key performance indicators

The Commission is charged with the responsibility of assisting the Government, through the delivery of services, to achieve the broad goal of a ‘Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians’.

To realise this goal, the Commission provides services to public authorities that achieve our key agency-level Government-desired outcome of an efficient and effective public sector that operates with integrity.

A realignment of the Commission’s services resulted in the conversion of six service areas reported in 2011/12 into three service areas, effective from 1 July 2012. The six former services reported in 2011/12 were:

  1. advice and assistance
  2. public sector reform
  3. professional development and training
  4. development and monitoring of human resource standards, ethical codes and public interest disclosure guidelines
  5. advice and evaluation of equity and diversity in public employment
  6. independent CEO selection and recruitment advice.

The Commission’s structure now provides the following three service areas to public authorities:

  1. public sector leadership
  2. assistance and support
  3. oversight and reporting.

Measurement of agency-level outcomes

Key effectiveness indicators

The Commission’s key effectiveness indicators measure the extent to which our activities are achieving, or are progressing towards the one agency-level outcome.

To measure the effectiveness of the Commission during 2012/13, the CEOs of departments created under section 35 of the PSM Act, and ministers or their chiefs of staff were surveyed and asked to rate how the advice and guidance offered by the Commission assisted them to promote integrity, effectiveness and efficiency within their organisation. The Commission received a 77 per cent response rate.

In addition, statutory authorities, public universities and local governments were surveyed to measure the effectiveness of assistance provided by the Commission to help them meet their statutory obligations under the PID Act and Part IX of the EO Act. The Commission received a 46 per cent response rate.

The rating was a five-step rating from strongly agree to strongly disagree.

Outcome: An efficient and effective public sector that operates with integrity

Key effectiveness indicator

Target 2012/13

Actual 2012/13

Actual 2011/12

Actual 2010/11

The portion of core clients who indicate the Commission has delivered policy, assistance and oversight that has assisted them to enhance integrity within their agencies.(a)

95%

98%

NA

NA

The portion of core clients who indicate the Commission has delivered policy, assistance and oversight that has assisted them to enhance the effectiveness and efficiency of their agencies.(b)

95%

95%

NA

NA

The portion of public authorities who indicate assistance provided by the Commission has helped them to meet their statutory obligations under Part IX of the EO Act.(c)

95%

60%

NA

NA

The portion of public authorities who indicate assistance provided by the Commission has helped them to meet their statutory obligations under the PID Act.(d)

95%

78%

NA

NA

  1. This indicator measures the Commission’s capability at enhancing integrity in agencies through the minimum requirements of the principles of merit, equity, probity, integrity in official conduct, ethical codes and human resource management. Data for this measure was collected from the client perception survey.
  2. This indicator measures the Commission’s capacity at enhancing effectiveness and efficiency of public administration and management in agencies through legislative reform, the accountability framework, policies, advisory services and professional development. Data for this measure was collected from the client perception survey.
  3. This indicator measures how the Commissioner is increasing the understanding of issues related to compliance of Part iX of the EO Act in public authorities through advisory services, product delivery and professional development. Data for this measure was collected from the client perception survey.
  4. This indicator measures how the Commissioner is increasing the understanding of issues related to compliance of the PID Act in public authorities through advisory services, product delivery and professional development. Data for this measure was collected from client perception survey.

The effectiveness indicators show the Commission is meeting its projected targets.

The difference between the target and actual achievement for services provided in relation to Part IX of the EO Act can be attributed to the increased profile of workforce planning initiatives undertaken by the Commission, of which diversity is one element. This – together with employment programs for Aboriginal people, young people and people with disabilities being progressed under the broader Commission profile – may have resulted in clients not recognising those programs as having an equal opportunity focus. It should also be noted that equal opportunity is a mature function, with agencies experienced in delivering these services since 1984.

Similarly, the difference between the target and actual achievement for services provided in relation to the PID Act can be attributed the delivery of service to a broader stakeholder group. With the recent changes to the PID Act, the Commission has recommenced delivery of this service.

Key efficiency indicators

Key efficiency indicators provide a measure of the cost of inputs required to achieve outcomes. In all instances, the Commission’s indicators include all direct costs associated with the particular service and a share of the corporate and executive support costs allocated to each service in accordance with the number of full-time equivalent (FTE) employed.

Exceptions to this are the value of grants paid during the year and the cost of redeployees from other agencies, which are excluded because it is considered they are not a cost of delivering services.

Service 1 - Public sector leadership

This service is responsible for the identification and development of legislative changes, policy and strategic initiatives that position the public sector to meet future challenges.

 

Target 2012/13

Actual 2012/13

Actual 2011/12

Actual 2010/11

Average cost per hour addressing legislative and policy development

$105

$94

NA

NA

With the implementation of a revised outcome-based management framework, 2012/13 budget results have been recast for comparative purposes. There is no comparative data for 2011/12 actuals and 2010/11 actuals.

The actual average cost for supporting authorities through legislative and policy development in 2012/13 is lower than budgeted due to the Commission functioning with reduced FTE levels and operating costs.

Service 2 - Assistance and support

This service builds the capacity and develops the public sector workforce by providing advice, assistance and professional development to public authorities.

 

Target 2012/13

Actual 2012/13

Actual 2011/12

Actual 2010/11

Average cost per hour of assistance and support provided

$91

$101

NA

NA

Average cost per workforce and diversity program, product or training hour

$104

$103

NA

NA

Average cost per public administration, standards and integrity program, product or training hour

$106

$85

NA

NA

Average cost per leadership development product, program and training hour

$157

$112

NA

NA

With the implementation of a revised outcome-based management framework, 2012/13 budget results have been recast for comparative purposes. There is no comparative data for 2011/12 actuals and 2010/11 actuals.

Grants of $106 747 in 2012/13 have been excluded as they are not considered to be a cost of service delivery.

The actual average cost per hour for assistance and support in 2012/13 is higher than targeted due to the Aboriginal employment strategy 2011-2015 being considered in the budget as a grant to agencies. This grant was excluded from the calculation of average cost for assistance and support.

The actual average cost per hour for workforce planning is on target.

The actual average cost per hour for public administration, standards and integrity and leadership development is lower than budgeted due to the Commission functioning with reduced FTE levels and operating costs. The Commission’s recent approach to developing products and delivering professional development in-house is also a contributing factor.

Service 3 - Oversight and reporting

This service provides independent oversight to monitor and report to Parliament and ministers on compliance with the PSM Act and the PID Act.

 

Target 2012/13

Actual 2012/13

Actual 2011/12

Actual 2010/11

Average cost per hour of performance and oversight activity

$95

$74

NA

NA

Percentage of oversight actions completed within target timeframes

90%

90%

NA

NA

With the implementation of a revised outcome-based management framework, 2012/13 budget results have been recast for comparative purposes. There is no comparative data for 2011/12 actuals and 2010/11 actuals.

The actual average cost per hour of performance and oversight activity in 2012/13 is lower than targeted. Increased efficiencies in delivering performance and oversight activities, particularly in relation to reduced time frames, have contributed to the reduction in average cost per hour.

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Other legal requirements

Electoral Act 1907 Section 175ZE

In accordance with section 175ZE of the Electoral Act 1907, the Commission incurred the following expenditure in advertising, market research, polling, direct mail and media advertising:

  1. Total expenditure for 2012/13 was $113 712.
  2. Expenditure was incurred in the following areas:

Applications

2012/13

Advertising agencies

  • Adcorp

$113 712

Market research organisations

Nil

Polling organisations

Nil

Direct mail organisations

Nil

Media advertising organisations

Nil

Disability access and inclusion plan outcomes

Disability Services Act 1993, section 29

Through our Disability access and inclusion plan 2010-2015 we demonstrated our commitment to implement a range of strategies that aim to improve access and inclusion for people with disabilities to our services, facilities and information. The implemented strategies have been successful in providing people with disabilities the same opportunities, rights and responsibilities enjoyed by others in the community. Understanding equal employment opportunity and diversity principles by staff were raised through professional learning.

Occupational safety and health

The Commission is committed to ensuring the occupational health, safety and welfare of its employees and any other people who may be affected by the Commission’s operations. Creating these environments requires the commitment of our corporate executive and Occupational Safety and Health (OSH) Committee, as well as all employees working together to achieve a standard of excellence in OSH and injury management in the workplace. Our commitment to health, safety and wellbeing is evidenced in its inclusion to the Workforce and diversity plan 2012-2014.

The OSH Committee provided oversight of the implementation of a range of safety and health management practices, including education, training, reporting, discussion and accountability. The committee meets quarterly, or as required, and comprises elected representatives from each division, who are accessible to employees and management to discuss safety and health matters in the workplace.

These key initiatives are further supported by our wellness program to encourage workplace and personal wellbeing. In 2012/13, the program included mental health first aid, lunch-time fitness classes, blood donations, flu vaccinations and manual handling training. We recognise the continuing importance of workplace wellbeing for our staff.

The Commission takes a proactive approach to injury management, and has established workers’ compensation, injury management and return to work policies, procedures and documentation in accordance with the Workers’ Compensation and Injury Management Act 1981. All OSH related policies and procedures are available to staff on the intranet.

Over the last 12 months, the Committee reviewed its OSH policies and procedures, provided training, undertook regular workplace inspections and provided quarterly OSH reports to the corporate executive to ensure continuous improvement.

The Commission has continued to ensure its occupational safety and health management systems meet WorkSafe’s criteria as set out in the WorkSafe Plan. We also maintained our silver certificate of achievement, awarded in 2011, for our OSH management systems.

Measures

Actual results for 2012/13 are based on calculations of 144 FTE and one lost time injury. This injury resulted in lost time being less than 60 days and the worker returned to work within 13 weeks.

 

2012/13

2011/12

2010/11

Target

Comment

Number of fatalities

0

0

0

0

Achieved

Lost time injury/disease incidence rate

1.49%

0.69%

0

0 or 10% improvement on the previous three years

The Commission had one lost time injury for the year which increased the incidence rate slightly above target

Percentage of injured workers returned to work within 26 weeks

100% within 13 weeks

100% within 13 weeks

0

Greater than or equal to 80% return to work within 26 weeks

The Commission’s one lost time claim resulted in the injured worker returning to work within 13 weeks

 

100% within 26 weeks

100% within 26 weeks

0

 

Achieved

Percentage of managers trained in occupational safety, health and injury management responsibilities

82%

71%

61%

Greater than or equal to 80%

The Commission has exceeded the 80% target.

Freedom of information

The Commission aims to assist freedom of information (FOI) applicants to access available documents at the least possible cost.

The table below provides a summary of the FOI applications finalised during this period. A more comprehensive breakdown of the statistics of the Commission is provided in the annual report of the Office of the Information Commissioner.

Applications

2012/13

2011/12

Received during the year

10

24

Finalised during the year

9

24

Average time to process (days)

28

29

Outcomes

2012/13

2011/12

Full access

0

0

Edited access

4

15

Deferred access

0

0

Section 26 access

1

2

Section 28 access

0

0

Access refused

3

3

Total decisions

8

20

Transferred to other agencies

0

0

Withdrawn

1

4

Total applications finalised

9

24

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Page last updated 10 September 2014