Disclosures and legal compliance

Certification of financial statements

for the year ended 30 June 2014

The accompanying financial statements of the Public Sector Commission have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ended 30 June 2014 and the financial position as at 30 June 2014.

At the date of signing we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.

M C Wauchope
ACCOUNTABLE AUTHORITY
8 August 2014

A Alderson
CHIEF FINANCE OFFICER
8 August 2014

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 2014

 

Note

2014
$000

2013
$000

COST OF SERVICES

Expenses

Employee benefits expense

6

18 717

17 373

Supplies and services

7

5 081

5 327

Depreciation and amortisation expense

8

221

63

Accommodation expenses

9

1 986

2 045

Grants and subsidies

10

1 150

267

Loss on disposal of non-current assets

11

1

-

Other expenses

12

76

79

Total cost of services

 

27 232

25 154

 

Income

Revenue

User charges and fees

13

660

597

Commonwealth grants and contributions

15

-

7

Other revenue

14

413

335

Total revenue

 

1 073

939

Total income other than income from State Government

1 073

939

 

NET COST OF SERVICES

 

26 159

24 215

 

INCOME FROM STATE GOVERNMENT

Service appropriation

 

26 664

27 730

Services received free of charge

 

1 565

1 282

Royalties for Regions Fund

 

179

397

Total income from State Government

16

28 408

29 409

 

SURPLUS/(DEFICIT) FOR THE PERIOD

 

2 249

5 194

 

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2 249

5 194

 

 

 

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 2014

 

Note

2014 $000

2013 $000

ASSETS

Current assets

Cash and cash equivalents

28

7 685

6 284

Restricted cash and cash equivalents

17

-

159

Receivables

18

708

857

Amounts receivable for services

19

173

164

Other current assets

20

609

559

Total current assets

 

9 175

8 023

Non-current assets

Restricted cash and cash equivalents

17

557

515

Amounts receivable for services

19

6 469

6 094

Property, plant and equipment

21

190

63

Intangible assets

22

348

510

Total non-current assets

 

7 564

7 182

TOTAL ASSETS

16 739

15 205

LIABILITIES

Current liabilities

Payables

24

1 274

1 463

Provisions

25

3 973

4 480

Other current liabilities

26

117

141

Total current liabilities

 

5 364

6 084

Non-current liabilities

Provisions

25

1 057

1 052

Total non-current liabilities

 

1 057

1 052

TOTAL LIABILITIES

 

6 421

7 136

NET ASSETS

10 318

8 069

Equity

 

 

 

Accumulated surplus

27

10 318

8 069

TOTAL EQUITY

 

10 318

8 069

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 2014

 

Note

Accumulated surplus/(deficit) $000

Total equity $000

Balance at 1 July 2012

27

2 875

2 875

Surplus/(deficit)

 

5 194

5 194

Other comprehensive income

 

-

-

Total comprehensive income for the period

 

5 194

5 194

Balance at 30 June 2013

 

8 069

8 069

Balance at 1 July 2013

 

8 069

8 069

Surplus/(deficit)

 

2 249

2 249

Other comprehensive income

 

-

-

Total comprehensive income for the period

 

2 249

2 249

Balance at 30 June 2014

 

10 318

10 318

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 2014

 

Note

2014 $000

2013 $000

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation

 

26 116

26 904

Holding account drawdowns

 

164

145

Royalties for Regions Fund

 

179

397

Net cash provided by State Government

 

26 459

27 446

Utilised as follows:

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Payments

 

 

 

Employee benefits

 

(19 186)

(17 245)

Supplies and services

 

(3 880)

(4 372)

Accommodation

 

(1 986)

(2 038)

Grants and subsidies

 

(1 150)

(267)

GST payments on purchases

 

(739)

(777)

GST payments to taxation authority

 

(106)

(138)

Receipts

User charges and fees

 

851

664

Commonwealth grants and contribution

 

-

7

GST receipts on sales

 

63

128

GST receipts from taxation authority

 

715

845

Other receipts

 

412

360

Net cash provided by/(used in) operating activities

28

(25 006)

(22 833)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

Payments

 

 

 

Purchase of non-current physical assets

 

(169)

(539)

Net cash provided by/(used in) investing activities

 

(169)

(539)

Net increase/(decrease) in cash and cash equivalents

 

1 284

4 074

Cash and cash equivalents at the beginning of period

 

6 958

2 884

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

28

8 242

6 958

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 2014

 

Service 1
Public sector leadership

Service 2
Assistance and support

Service 3
Oversight and reporting

Total

 

2014
$000

2013
$000

2014
$000

2013
$000

2014
$000

2013
$000

2014
$000

2013
$000

COST OF SERVICES

Expenses

Employee benefits expense

2 146

2 012

13 010

12 670

3 561

2 691

18 717

17 373

Supplies and services

457

312

3 831

4 516

793

499

5 081

5 327

Depreciation and amortisation expense

5

3

58

32

158

28

221

63

Accommodation expenses

255

212

1 345

1 513

386

320

1 986

2 045

Grants and subsidies

9

18

1 141

220

-

29

1 150

267

Carrying amount of non-current assets disposed

-

-

1

-

-

-

1

-

Other expenses

7

7

57

66

12

6

76

79

Total cost of services

2 879

2 564

19 443

19 017

4 910

3 573

27 232

25 154

Income

User charges and fees

-

-

660

597

-

-

660

597

Commonwealth grants and contributions

-

-

-

7

-

-

-

7

Other revenue

15

29

381

275

17

31

413

335

Total income other than income from State Government

15

29

1 041

879

17

31

1 073

939

NET COST OF SERVICES

2 864

2 535

18 402

18 138

4 893

3 542

26 159

24 215

 

INCOME FROM STATE GOVERNMENT

Service appropriation

3 149

2 881

18 584

20 278

4 931

4 571

26 664

27 730

Services received free of charge

221

142

1 005

927

339

213

1 565

1 282

Royalties for Regions Fund

-

-

179

397

-

-

179

397

Total income from State Government

3 370

3 023

19 768

21 602

5 270

4 784

28 408

29 409

Surplus/(deficit) for the period

506

488

1 366

3 464

377

1 242

2 249

5 194

The 'Schedule of income and expenses by service' should be read in conjunction with the accompanying notes.

Schedule of assets and liabilities by service

as at 30 June 2014

 

Service 1
Public sector leadership

Service 2
Assistance and support

Service 3
Oversight and reporting

General –
Not attributed

Total

 

2014
$000

2013
$000

2014
$000

2013
$000

2014
$000

2013
$000

2014
$000

2013
$000

2014
$000

2013
$000

ASSETS

Current assets

263

239

2 178

2 072

425

386

6 309

5 326

9 175

8 023

Non-current assets

917

714

4 927

4 861

1 720

1 607

-

-

7 564

7 182

Total assets

1 180

953

7 105

6 933

2 145

1 993

6 309

5 326

16 739

15 205

LIABILITIES

Current liabilities

533

669

3 675

4 283

836

880

320

252

5 364

6 084

Non-current liabilities

144

108

789

745

124

199

-

-

1 057

1 052

Total liabilities

677

777

4 464

5 028

960

1 079

320

252

6 421

7 136

NET ASSETS

503

176

2 641

1 905

1 185

914

5 989

5 074

10 318

8 069

The 'Schedule of assets and liabilities' should be read in conjunction with the accompanying notes.

Summary of consolidated account appropriations and income estimates

for the year ended 30 June 2014

 

2014 Estimate
$000

2014 Actual $000

Variance $000

2014 Actual
$000

2013 Actual $000

Variance $000

DELIVERY OF SERVICES

 

 

 

 

 

 

Item 6 – Net amount appropriated to deliver services

25 380

25 380

-

25 380

26 955

(1 575)

Section 25 Transfer of service appropriation

-

-

-

-

(466)

466

Amount authorised by other statutes

 

 

 

 

 

 

Salaries and Allowances Act 1975

1 284

1 284

-

1 284

1 241

43

Total appropriations provided to deliver services

26 664

26 664

-

26 664

27 730

(1 066)

GRAND TOTAL

26 664

26 664

-

26 664

27 730

(1 066)

Details of expenses by service

 

 

 

 

 

 

Service 1 – Public sector leadership

2 928

2 879

49

2 879

2 564

315

Service 2 – Assistance and support

22 261

19 443

2 818

19 443

19 017

426

Service 3 – Oversight and reporting

4 488

4 910

(422)

4 910

3 573

1 337

Total cost of services

29 677

27 232

2 445

27 232

25 154

2 078

Less total income

(899)

(1 073)

174

(1 073)

(939)

(134)

Net cost of services

28 778

26 159

2 619

26 159

24 215

1 944

Adjustments

(2 114)

505

(2 619)

505

3 515

(3 010)

Total appropriations provided to deliver services

26 664

26 664

-

26 664

27 730

(1 066)

 

 

 

 

 

 

 

Capital expenditure

 

 

 

 

 

 

Purchase of non-current physical assets

264

169

95

169

539

(370)

Adjustment for other funding sources

(264)

(169)

(95)

(169)

(539)

370

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 2014 and between the actual results for 2014 and 2013.

Notes to the financial statements

for the year ended 30 June 2014

1. Australian Accounting Standards

General

The Commission’s financial statements for the year ended 30 June 2014 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).

We have 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. There has been no early adoption of Australian Accounting Standards that have been issued or amended (but not operative) by the Commission for the annual reporting period ended 30 June 2014.

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 our 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.

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 2013/14 Budget statements, the Commission retained $1 722 000 in 2014 ($1 878 000 in 2013) from the following:

  • proceeds from fees and charges
  • GST input credits
  • GST receipts on sales
  • other receipts.
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
  • leasehold improvement – seven to 10 years.

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:

  • software(a) – three years
  • licenses – three years.

(a) Software that is not integral to the operation of any related hardware.

Licenses

Licenses have a finite useful life and are carried at cost less accumulated amortisation and accumulated impairment losses.

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 that can be reliably measured, are capitalised to the extent that they represent probable future economic benefits.

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. Operating 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:

  • loans and 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. Subsequent measurement is at amortised cost using the effective interest method.

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 or 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

Annual leave is not expected to be settled wholly within 12 months after the end of the reporting period and is therefore considered to be ‘other long-term employees benefits’.

Annual and long service leave not expected to be settled within 12 months after the end of 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 end of 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 end of 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’ (GSS), a defined benefit lump sum scheme closed to new members since 1995.

Employees commencing employment prior to 16 April 2007 who were not members of either the Pension Scheme or the GSS became non-contributory members of the ‘West State Superannuation’ (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 have been able to choose their preferred superannuation fund provider. The Commission makes 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 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 Scheme or the GSS. 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.

The GESB makes all benefit payments in respect of the Pension Scheme and GSS, and is recouped from 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 is recognised in the profit or loss of the ‘Statement of Comprehensive Income’ and comprises 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 are recognised as income at fair value of the assets and/or the fair value of those services that can be reliably measured and the Commission would otherwise pay for. A corresponding expense is recognised for services received. 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

Initial application of an Australian Accounting Standard

The Commission has applied the following Australian accounting standards effective for annual reporting periods beginning on or after 1 July 2013 that impacted on the Commission.

AASB 13 – Fair Value Measurement

This Standard defines fair value, sets out a framework for measuring fair value and requires additional disclosures for assets and liabilities measured at fair value. There is no financial impact.

AASB 119 – Employee Benefits

This Standard supersedes AASB 119 (October 2010), making changes to the recognition, presentation and disclosure requirements.

The Commission assessed employee leave patterns to determine whether annual leave is a short-term or other long-term employee benefit. The resultant discounting of annual leave liabilities that were previously measured at the undiscounted amounts is not material.

AASB 1048 – Interpretation of Standards

This Standard supersedes AASB 1048 (June 2012), enabling references to the Interpretations in all other Standards to be updated by reissuing the service Standard. There is no financial impact.

AASB 2011-8 – Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 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]

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]

This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 119 in September 2011. The resultant discounting of annual leave liabilities that were previously measured at the undiscounted amounts is not material.

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

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 2012-5 – Amendments to Australian Accounting Standards arising from Annual Improvements 2009-11 Cycle [AASB 1, 101, 116, 132 & 134 and Int 2]

This Standard makes amendments to the Australian Accounting Standards and Interpretations as a consequence of the annual improvements process. There is no financial impact.

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

This Standard amends the mandatory effective date of AASB 9 Financial Instruments to 1 January 2015 (instead of 1 January 2013). Further amendments are also made to numerous consequential amendments arising from AASB 9 that will now apply from 1 January 2015. There is no financial impact.

AASB 2013-9 – Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments.

Part A of this omnibus Standard makes amendments to other Standards arising from revisions to the Australian Accounting Conceptual Framework for periods ending on or after 20 December 2013. Other Parts of this Standard become operative in later periods. There is no financial impact for Part A of the Standard.

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 that may impact the Commission. Where applicable, the Commission plans to apply these Australian Accounting Standards from their application date.

Int 21 Levies

Operative for reporting periods beginning on/after 1 January 2014

This Interpretation clarifies the circumstances under which a liability to pay a government levy imposed should be recognised. There is no financial impact for the Authority at reporting date.

AASB 9 - Financial Instruments

Operative for reporting periods beginning on/after 1 January 2017

This Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments. The mandatory application date of this Standard was amended to 1 January 2017. The Authority has not yet determined the application or the potential impact of the Standard.

AASB - 1031 Materiality

Operative for reporting periods beginning on/after 1 January 2014

This Standard supersedes AASB 1031 (February 2010), removing Australian guidance on materiality that is not available in IFRSs and refers to other Australian pronouncements that contain guidance on materiality. There is no financial impact.

AASB 1055 - Budgetary Reporting

Operative for reporting periods beginning on/after 1 July 2014

This Standard requires specific budgetary disclosures in the financial statements of not for profit entities within the General Government Sector. 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 2009-11

Operative for reporting periods beginning on/after 1 January 2015

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

AASB 2010-7

Operative for reporting periods beginning on/after 1 January 2015

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]

This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 9 in December 2010. The Commission has not yet determined the application or the potential impact of the Standard.

AASB 2012-3

Operative for reporting periods beginning on/after 1 January 2014

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

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. The Commission does not routinely hold financial assets and financial liabilities that it intends to settle on a net basis, therefore there is no financial impact.

AASB 2013-3

Operative for reporting periods beginning on/after 1 January 2014

Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets.

This Standard introduces editorial and disclosure changes. There is no financial impact.

AASB 2013-9

Operative for reporting periods beginning on/after 1 January 2014 and 1 January 2017

Amendments to Australian Accounting Standards - Conceptual Framework, Materiality and Financial Instruments.

This omnibus Standard makes amendments to other Standards arising from the deletion of references to AASB 1031 in other Standards for periods beginning on or after
1 January 2014 (Part B), and, defers the application of AASB 9 to 1 January 2017 (Part C). The Commission has not yet determined the application or the potential impact of AASB 9, otherwise there is no financial impact for Part B.

6. Employee benefits expense

 

2014
$000

2013
$000

Wages and salaries(a)

17 139

15 818

Superannuation – defined contribution plans(b)

1 578

1 555

 

18 717

17 373

(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component and leave entitlements including superannuation contribution component.

(b) 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

 

2014
$000

2013
$000

Communications

29

46

Freight and mail services

13

17

Consultants and contractors

3 834

3 971

Consumables

334

343

Repair and maintenance

54

69

Minor works

4

32

Travel

85

130

Insurance premiums

100

122

License, fees and registration

127

159

Operating lease, rental and hire cost

120

119

Other

381

319

 

5 081

5 327

8. Depreciation and amortisation expense

 

2014
$000

2013
$000

Depreciation

 

 

Leasehold improvement

14

-

Computer hardware

-

7

Furniture and fittings

-

-

Office equipment

27

26

Total depreciation

41

33

 

 

 

Amortisation

 

 

Computer software

77

13

Licenses

103

17

Total amortisation

180

30

Total amortisation and depreciation

221

63

9. Accommodation expense

 

2014
$000

2013
$000

Lease rentals

1 985

2 038

Repairs and maintenance

1

7

 

1 986

2 045

10. Grants and subsidies

 

2014
$000

2013
$000

Government agency grants

681

231

Scholarships

460

-

External grants

9

36

 

1 150

267

11. Loss on disposal of non-current assets

 

2014
$000

2013
$000

Proceeds from disposal of non-current assets

Office equipment

-

-

 

-

-

Cost of disposal of non-current assets

Office equipment

1

-

Net loss

(1)

-

12. Other expenses

 

2014
$000

2013
$000

Employment on-costs

3

21

Other(a)

73

58

 

76

79

(a) Includes Audit fees, see also note 32 ‘Remuneration of auditor’.

13. User charges and fees

 

2014
$000

2013
$000

Fees

660

597

 

660

597

14. Other revenue

 

2014
$000

2013
$000

Recoups

116

111

Recoup insurance

22

27

Contributions by senior officers to the Government Vehicle Scheme

18

23

Regional worker's incentive

125

-

Australian Apprenticeships Incentive Program

83

46

Contribution for office fit-out

-

100

Refund

29

23

Other miscellaneous revenue

20

5

 

413

335

15. Commonwealth grants and contributions

 

2014
$000

2013
$000

Recurrent grant

-

7

16. Income from State Government

 

2014
$000

2013
$000

Appropriation received during the year

Service appropriation(a)

26 664

27 730

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

 

 

Department of the Premier and Cabinet
– corporate support services

1 084

838

Department of Finance – accommodation lease services

401

355

Department of the Attorney General – legal services

80

89

 

1 565

1 282

Royalties for Regions Fund

Regional Community Services Account(c)

179

397

 

179

397

 

28 408

29 409

(a) 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.

(b) Discretionary transfers of assets (including grants) and liabilities between State Government agencies are reported under ‘Income from State Government’. Transfers of assets and liabilities in relation to a restructure of administrative arrangements are recognised as distribution to owners by the transferor and contribution by owners by the transferee under AASB 1004 in respect of net assets transferred. Other non-discretionary non-reciprocal transfers of assets and liabilities designated as contributions by owners under TI 955 are also recognised directly to equity.

(c) 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

 

2014
$000

2013
$000

Current

Royalties for Regions Fund(a)

-

159

Non-current

Accrued salaries suspense account(b)

557

515

(a) Unspent funds are committed to projects and programs in WA regional areas.

(b) 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

 

2014
$000

2013
$000

Current

Receivables

508

745

GST receivable

167

100

 

675

845

Loans and advances:

Other debtors

33

12

 

33

12

Total current

708

857

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

19. Amounts receivable for services (Holding Account)

 

2014
$000

2013
$000

Current

173

164

Non-current

6 469

6 094

 

6 642

6 258

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

 

2014
$000

2013
$000

Current

 

 

Prepayments

609

559

 

609

559

21. Property, plant and equipment

 

2014
$000

2013
$000

Computer hardware

At cost

22

22

Accumulated depreciation

(22)

(22)

Accumulated impairment losses

-

-

 

-

-

Office equipment

At cost

146

136

Accumulated depreciation

(71)

(73)

Accumulated impairment losses

-

-

 

75

63

Leasehold improvement

At cost

129

-

Accumulated depreciation

(14)

-

Accumulated impairment losses

-

-

 

115

-

Total property, plant and equipment

190

63

Reconciliation - Computer hardware

Carrying amount at start of period

-

7

Depreciation

-

(7)

Carrying amount at end of period

-

-

Reconciliation - Office equipment

Carrying amount at start of period

63

89

Additions

40

-

Transfers

-

-

Other disposals

(1)

-

Impairment losses

-

-

Depreciation

(27)

(26)

Carrying amount at end of period

75

63

Reconciliation - Leasehold improvements

Carrying amount at start of period

-

-

Additions

129

-

Transfers

-

-

Other disposals

-

-

Impairment losses

-

-

Depreciation

(14)

-

Carrying amount at end of period

115

-

Reconciliation - Total

Carrying amount at start of period

63

96

Additions

169

-

Transfers

-

-

Other disposals

(1)

-

Impairment losses

-

-

Depreciation

(41)

(33)

Carrying amount at end of period

190

63

22. Intangible assets

 

2014
$000

2013
$000

Licenses

 

 

At cost

310

310

Accumulated amortisation

(120)

(17)

Accumulated impairment losses

190

293

Computer software

At cost

248

230

Accumulated amortisation

(90)

(13)

Accumulated impairment losses

158

217

Total intangible assets

348

510

Reconciliation – Licenses

Carrying amount at start of period

293

-

Additions

-

310

Amortisation expense

(103)

(17)

Impairment losses

-

 

Carrying amount at end of period

190

293

Reconciliation – Computer software

Carrying amount at start of period

217

-

Additions

18

230

Amortisation expense

(77)

(13)

Impairment losses

-

 

Carrying amount at end of period

158

217

23. Impairment of assets

There were no indications of impairment to property, plant and equipment at
30 June 2014.

The Commission held no goodwill or intangible assets with an indefinite useful life during the reporting period.

24. Payables

 

2014
$000

2013
$000

Current

Payables

679

1 032

Accrued salaries

379

346

Accrued expenses

216

85

 

1 274

1 463

25. Provisions

 

2014
$000

2013
$000

Current

Employee benefits provision

Annual leave including superannuation(a)

1 493

1 769

Long service leave including superannuation(b)

2 458

2 690

 

3 951

4 459

Other provisions

Employment on-costs(c)

22

21

 

3 973

4 480

Non-current

Employee benefits provision

Long service leave including superannuation(b)

1 051

1047

 

1 051

1 047

Other provisions

Employment on-costs(c)

6

5

 

1 057

1 052

(a) 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:

 

2014
$000

2013
$000

Within 12 months of the end of the reporting period

(1 003)

1 069

More than 12 months after the reporting period

(490)

701

 

( 1 493)

1 770

(b) 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:

 

2014
$000

2013
$000

Within 12 months of the end of the reporting period

(962)

1 047

More than 12 months after the reporting period

(2 547)

2 690

 

( 3 509)

3 737

(c) 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:

 

2014
$000

2013
$000

Employment on-cost provision

Carrying amount at start of period

26

3

Additional provisions recognised

2

23

Payments/other sacrifices of economic benefits

-

-

Carrying amount at end of period

28

26

26. Other liabilities

 

2014
$000

2013
$000

Current

Income received in advance

117

141

 

117

141

27. Equity

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

 

2014
$000

2013
$000

Accumulated surplus

Balance at the start of period

8 069

2 875

Result for the period

2 249

5 194

Balance at the end of period

10 318

8 069

Total equity at the end of the period

10 318

8 069

28. Notes to the ‘Statement of cash flows’

 

2014
$000

2013
$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

7 685

6 284

Restricted cash and cash equivalents (note 17)

557

674

 

8 242

6 958

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

 

 

Net cost of services

(26 159)

(24 215)

Non-cash items:

 

 

Depreciation and amortisation expense (note 8)

221

63

Net gain/(loss) on disposal of non-current assets (note 11)

1

-

Resources received free of charge (note 16)

1 565

1 282

(Increase)/decrease in assets:

Current receivables(a)

216

(75)

Other current assets

(50)

137

Increase/(decrease) in liabilities:

Current payables(a)

(231)

(36)

Current provisions

(507)

(47)

Non-current provisions

5

1

Net GST receipts/(payments)(b)

(79)

58

Change in GST receivables/payables(c)

12

(1)

Net cash provided by/(used in) operating activities

(25 006)

(22 833)

(a) 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.

(b) This is the net GST paid/received, i.e. cash transactions.

(c) 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:

 

2014
$000

2013
$000

Salaries and Allowances Tribunal

Corporate Services

18

11

 

18

11

30. Commitments

The commitments below are inclusive of GST.

 

2014
$000

2013
$000

Non-cancellable operating lease commitments

Commitments for minimum lease payments are payable as follows:

Within one year

2 547

2 404

Later than one year and not later than five years

37

1 501

Later than five years

-

-

 

2 584

3 905

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

1 441

1 773

Later than one year and not later than five years

940

1 028

Later than five years

24

4

 

2 405

2 805

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:

Remuneration Band ($)

2014

2013

130 001 – 140 000

2

1

150 001 – 160 000

-

1

160 001 – 170 000

1

-

180 001 – 190 000

1

1

210 001 – 220 000

1

-

250 001 – 260 000

1

1

260 001 – 270 000

-

1

270 001 – 280 000

-

1

290 001 – 300 000

1

-

410 001 – 420 000

1

-

460 001 – 470 000

1

-

510 001 – 520 000

-

1

 

2014
$000

2013
$000

Base remuneration and superannuation

2 312

1 579

Annual leave and long service leave accruals

(114)

123

Other benefits

55

86

Total remuneration of senior officers

2 253

1 788

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:

 

2014
$000

2013
$000

Auditing the accounts, financial statements and performance indicators

54

50

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 2014

 

2014
Estimate
$000

2014
Actual
$000

Variance
$000

Net amount appropriated to deliver services

25 380

25 380

-

 

2014
Estimate
$000

2014
Actual
$000

Variance
$000

Service 1 – Public sector leadership

2 928

2 879

49

Service 2 – Assistance and support

22 261

19 443

2 818

Service 3 – Oversight and reporting

4 488

4 910

(422)

  • Service 2 – Assistance and support
    The saving was primarily due to an internal restructure within this Service area, therefore operating at lower than anticipated FTEs resulting in a reduction in operational costs and share of corporate overheads.
  • Service 3 – Oversight and reporting
    The higher expenditure is mainly due to payments provided under the Government enhanced voluntary severance scheme.

 

2014
Estimate
$000

2014
Actual
$000

Variance
$000

Capital expenditure

264

169

95

The lower expenditure is due to the expensing of computing equipment which did not meet the asset capitalisation threshold.

Total appropriations provided to deliver services
—significant variances between the actual results for 2014 and for 2013

 

2014
Actual
$000

2013
Actual
$000

Variance
$000

Net amount appropriated to deliver services

25 380

26 489

(1 109)

The reduction in Appropriation largely reflects decreased funding for external leadership programs and the Commission’s contribution to external data improvement programs.

Service expenditure
—significant variances between the actual results for 2014 and for 2013

 

2013
Actual
$000

2012
Actual
$000

Variance
$000

Service 1 – Public sector leadership

2 879

2 564

315

Service 2 – Assistance and support

19 443

19 017

426

Service 3 – Oversight and reporting

4 910

3 573

1 337

  • Service 1 – Public sector leadership
    The increase is primarily associated with the Service area functioning at an increased level of FTE and attracting a higher share of corporate overhead costs.
  • Service 3 – Oversight and reporting
    The increase reflects this Service area operating at a higher FTE level resulting in an increase in the share of corporate overheads. It also includes payments provided under the Government enhanced voluntary severance scheme.

 

2014 Actual $000

2013 Actual $000

Variance $000

Capital expenditure

169

539

(370)

The higher expenditure in 2012-13 was due to the purchase of software system and associated licences. Expenditure in 2013-14 was related to minor office fitout and replacement of office equipment.

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, loans and 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 instruments 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 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:

 

2014 $000

2013 $000

Financial assets

Cash and cash equivalents

7 685

6 284

Restricted cash and cash equivalents

557

674

Loans and receivables(a)

7 183

7 015

Financial liabilities

Payables

1 274

1 463

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

c) Financial instrument disclosures

Credit risk

The ‘Ageing analysis of financial assets’ table details the Commission’s maximum exposure to credit risk 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 financial assets as shown below. The table discloses the ageing of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the Commission.

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

Liquidity risk and interest rate exposure

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

Ageing analysis of financial assets

 

Carrying amount
$000

Not past due and not impaired
$000

Past due but not impaired

Impaired financial assets
$000

Up to 1 month
$000

1-3 months
$000

3 months to 1 year
$000

1-5 years
$000

More than 5 years
$000

2014

Cash and cash equivalents

7 685

7 685

-

-

-

-

-

-

Restricted cash and cash equivalents

557

557

-

-

-

-

-

-

Receivables(a)

541

366

54

87

18

16

-

-

Amounts receivable for services

6 642

6 642

-

-

-

-

-

-

 

15 425

15 250

54

87

18

16

 

 

2013

Cash and cash equivalents

6 284

6 284

-

-

-

-

-

-

Restricted cash and cash equivalents

674

674

-

-

-

-

-

-

Receivables(a)

757

574

10

90

77

6

-

-

Amounts receivable for services

6 258

6 258

-

-

-

-

-

-

 

13 973

13 790

10

90

77

6

 

-

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

Interest rate exposures and maturity analysis of financial assets and financial liabilities

 

Weighted average effective interest rate
%

Carrying amount
$000

Interest rate exposure

Nominal amount
$000

Maturity dates

Fixed interest rate
$000

Variable interest bearing
$000

Non-interest bearing
$000

Up to 1 month
$000

1–3 months
$000

3 months to a year
$000

1–5 years
$000

> 5 years
$000

2014

Financial assets

Cash and cash equivalents

 

7 685

 

 

7 685

7 685

7 685

 

 

 

 

Restricted cash and cash equivalents

 

557

 

 

557

557

-

 

 

557

 

Receivables(a)

 

541

 

 

541

541

541

 

 

 

 

Amounts receivable for services

 

6 642

 

 

6 642

6 642

 

 

173

6 469

 

 

 

15 425

-

-

15 425

15 425

8 226

-

173

7 026

 

Financial liabilities

Payables

 

1 274

 

 

1 274

1 274

1 205

 

69

 

 

 

 

1 274

-

-

1 274

1 274

1 205

-

69

-

-

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

Interest rate exposures and maturity analysis of financial assets and financial liabilities

 

Weighted average effective interest rate
%

Carrying amount
$000

Interest rate exposure

Nominal amount
$000

Maturity dates

Fixed interest rate
$000

Variable interest bearing
$000

Non-interest bearing
$000

Up to 1 month
$000

1–3 months
$000

3 months to a year
$000

1–5 years
$000

> 5 years
$000

2013

Financial assets

Cash and cash equivalents

 

6 284

 

 

6 284

6 284

6 284

 

 

 

 

Restricted cash and cash equivalents

 

674

 

 

674

674

159

 

 

515

 

Receivables(a)

 

757

 

 

757

757

757

 

 

 

 

Amounts receivable for services

 

6 258

 

 

6 258

6 258

 

 

164

6 094

 

 

 

13 973

-

-

13 973

13 973

7 200

-

164

6 069

 

Financial liabilities

Payables

 

1 463

 

 

1 463

1 463

1 463

 

 

 

 

 

 

1 463

-

-

1 463

1 463

1 463

-

-

-

-

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

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 $1 007 000 for 2013-14 ($985 000 for 2012-13).

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 and Conservation (DEC). In accordance with the Act, DEC 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.

return to top

Key performance indicators

Certification of key performance indicators for the year

ended 30 June 2014

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 Commission for the financial year ended 30 June 2014.

M C Wauchope
ACCOUNTABLE AUTHORITY
8 August 2014

Overview of key performance indicators

The Commission is responsible for assisting 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, we provide services to public sector entities to achieve our agency-level government-desired outcome of an efficient and effective public sector that operates with integrity.

The Commission 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 (KEIs) measure the extent to which our activities are achieving, or are progressing towards, our agency-level outcome. To measure how we are performing against our KEIs, an annual client perception survey is issued to the chief executive officers (CEOs) and ministers of the Commission’s core clients.

In 2012/13, our core clients comprised of 37 departments and 17 ministerial offices. Following internal and external stakeholder engagement, this definition was changed for the 2013/14 financial year to more accurately reflect the Commission’s key stakeholders and, therefore, provide a better indication of our performance against our KEIs. Our core clients for 2013/14 capture a much larger scope of 155 clients comprising of:

  • 38 departments created under section 35 of the Public Sector Management Act 1994 (PSM Act)
  • 17 ministerial offices
  • 49 SES organisations (as defined under the PSM Act) specified in column 2 of Schedule 2 of the PSM Act
  • 51 non-SES organisations including government boards and committees that have undertaken the Commission’s good governance and ethical decision-making professional development within the financial year.

The 2013/14 client perception survey asked our core clients to rate how the advice and guidance offered by the Commission assisted them with the promotion of integrity, effectiveness and efficiency within their organisation. The survey also asked clients to rate how our assistance has helped them meet their statutory obligations under the Public Interest Disclosure Act 2003 (PID Act) and under Part IX of the Equal Opportunity Act 1984 (EO Act).

The rating was a four-step rating from strongly agree to strongly disagree with an additional ‘not applicable’ option. The Commission received a 70 per cent response rate to the survey.

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

Key effectiveness indicator

Target 2013/14

Actual 2013/14

Actual 2012/13

Actual 2011/12

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)

85%

95%

98%

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)

85%

90%

95%

NA

The portion of core clients who indicate that assistance provided by the Commission has helped them to meet their statutory obligations under the PID Act.(c)

75%

84%

78%

NA

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

75%

78%

60%

NA

(a) 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.

(b) 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.

(c) This indicator measures how the Commissioner is increasing the understanding of issues related to compliance with the PID Act by public authorities through advisory services, product delivery and professional development. Data for this measure was collected from the client perception survey.

(d) This indicator measures how the Commissioner is increasing the understanding of issues related to compliance with Part IX of the EO Act by public authorities through advisory services, product delivery and professional development. Data for this measure was collected from the client perception survey.

The 2013/14 effectiveness indicators show that the Commission is meeting its projected targets across all areas. The difference between the first two actual indicators for 2012/13 and 2013/14 can be attributed to the much larger scope of our core clients that were issued the survey for the 2013/14 financial year.

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 staff employed—full-time equivalent (FTE).

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.

Service 1 – Public sector leadership

Target 2013/14

Actual 2013/14

Actual 2012/13

Actual 2011/12

Average cost per hour addressing legislative and policy development

$108

$116

$94

NA

With the implementation of a revised outcome-based management framework in 2012/13, there is no comparative data for 2011/12 actuals.

The actual average cost for supporting authorities through legislative and policy development in 2013/14 is higher than budgeted due to internal structural changes within the Commission that included the transference of the workforce planning function and the Director of Equal Opportunity in Public Employment to this service area.

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.

Service 2 – Assistance and support

Target 2013/14

Actual 2013/14

Actual 2012/13

Actual 2011/12

Average cost per hour of assistance and support provided

$126

$112

$101

NA

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

$116

$146

$103

NA

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

$115

$105

$85

NA

Average cost per leadership development product, program and training hour

$109

$162

$112

NA

With the implementation of a revised outcome-based management framework in 2012/13, there is no comparative data for 2011/12 actuals.

The actual average cost for assisting and supporting authorities in 2013/14 is lower than budgeted due to the Commission functioning with reduced FTE levels, associated operating costs attributed to the whole of sector recruitment freeze and our commitment to reducing the leave liability during this financial year.

Our actual average cost for assisting and supporting authorities with workforce and diversity programs in 2013/14 is higher than budgeted due to the introduction of a range of new workforce initiatives and training programs, developed through a series of tender processes and delivered at no cost to participants across the sector.

Our actual average cost for assisting and supporting authorities to sustain standards of ethics and integrity in 2013/14 is lower than budgeted due to the Commission functioning with reduced FTE levels, associated operating costs attributed to the whole of sector recruitment freeze and our commitment to reducing leave liability of our staff during this financial year.

The actual average cost for assisting and supporting authorities with leadership and professional development in 2013/14 is higher than budgeted due to the introduction of the Centre for Public Sector Excellence and a change in the divisional structure to support the Centre, including change in salary of the divisional head. Further increase is attributed to the associated development opportunities provided to directors general, CEOs, members of the senior executive service and high potential employees across the sector.

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.

Service 3 – Oversight and reporting

Target 2013/14

Actual 2013/14

Actual 2012/13

Actual 2011/12

Average cost per hour of performance and oversight activity

$92

$95

$74

NA

Percentage of oversight actions completed within target timeframes

90%

91%

83%

NA

With the implementation of a revised outcome-based management framework in 2012/13, there is no comparative data for 2011/12 actuals.

The percentage of oversight actions completed within the targeted timeframes can be attributed to a new case management system and attention to timeliness in acquitting cases.

return to top

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 2013/14 was $170 407.
    2. Expenditure was incurred in the following areas:

Applications

2012/13

Advertising agencies

  • Adcorp

$147 351

  • CareerHub

$164

Market research organisations

Nil

Polling organisations

Nil

Direct mail organisations

Nil

Media advertising organisations

  • Radio advertising - Aboriginal traineeship program

$7020

  • The West Australian

$9649

  • Various publications - Aboriginal traineeship program

$5747

  • Government Gazette

$476

Record keeping plan

Our record keeping plan covers records of the Commission and recognises these services are provided through a bureau service arrangement with the Department of the Premier and Cabinet (DPC). Accordingly, we share common records management procedures and a controlled vocabulary with DPC which are reviewed annually. We provide an online records awareness training to our staff which complements the record awareness component of our employee induction program.

Occupational safety and health

The Commission is committed to ensuring the occupational health, safety and welfare of our and any other people who may be affected by our 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 in the Workforce and diversity plan 2012–2014.

The OSH committee provides oversight of a range of safety and health management practices, including education, training, reporting, discussion and accountability. The OSH 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 2013/14, some of the initiatives on offer included complimentary health assessments, influenza vaccinations and corporate health fund discounts, as well as the opportunity to undertake mental health first aid and disability awareness training. Staff also took up the opportunity to participate in the ‘10 000 steps Australia’ walking challenge.

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 our intranet.

Over the last 12 months, the OSH 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 OSH management systems meet WorkSafe’s criteria as set out in the WorkSafe plan.

Measures

Actual results for 2013/14 are based on calculations of 131 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.

 

2013/14

2012/13

2011/12

Target

Comment

Number of fatalities

0

0

0

0

Achieved

Percentage of time lost injury/disease incidence rate

0.76%

1.49%

0.69%

0 or 10% improvement on the previous three years

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

Percentage of time lost injury/disease severity rate

0

0

0

0 or 10% reduction (actual target can be stated)

 

Percentage of injured workers returned to work within 26 weeks

100% within 13 weeks

100% within 13 weeks

100% within 13 weeks

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

100% within 26 weeks

 

Achieved

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

97%

82%

71%

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 2013/14.
A more comprehensive breakdown our statistics is provided in the annual report of the Office of the Information Commissioner.

Applications

2013/14

2012/13

2011/12

Received during the year

4

10

24

Finalised during the year

4

9

24

Average time to process (days)

40

28

29

Outcomes

2013/14

2012/13

2011/12

Full access

0

0

0

Edited access

3

4

15

Deferred access

0

0

0

Section 26 access

0

1

2

Section 28 access

0

0

0

Access refused

0

3

3

Total decisions

3

8

20

Transferred to other agencies

1

0

0

Withdrawn

0

1

4

Total applications finalised

4

9

24

return to top

Salaries and Allowances Tribunal

The Salaries and Allowances Tribunal (SAT) is an independent statutory body established under section 5 of the Salaries and Allowances Act 1975. Consisting of a chairman and two members, the SAT is appointed by the Governor to determine and report on the remuneration of parliamentarians, the judiciary and a range of senior state and local government office holders.

The Treasurer has determined that the SAT is to be an affiliated body of the Commission in accordance with section 60(1)(b) of the Financial Management Act 2006.

As an affiliated body of an agency under the Public Sector Management Act 1994, the SAT’s statutory operational independence is recognised. This independence is also recognised by the SAT’s separate parliamentary budget appropriation and resource agreement with the Premier and Treasurer.

Under these financial arrangements, the Commission is obliged to provide the SAT with certain financial services during the year, including the preparation of financial information to facilitate the discharge of statutory reporting obligations.

As a consequence of the SAT’s affiliated body status, this report appears in the annual report of the Commission.


Page last updated 4 November 2015