Disclosures and legal compliance

Financial statements

Certification of financial statements

for the year ended 30 June 2015

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 2015.

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
12 August 2015

A Alderson
CHIEF FINANCE OFFICER
12 August 2015

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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.

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Statement of comprehensive income

for the year ended 30 June 2015

 

Note

2015
$000

2014
$000

COST OF SERVICES

Expenses

Employee benefits expense

6

18 540

18 717

Supplies and services

7

4 724

5 081

Depreciation and amortisation expense

8

225

221

Accommodation expenses

9

2 082

1 986

Grants and subsidies

10

512

1 150

Loss on disposal of non-current assets

11

-

1

Other expenses

12

87

76

Total cost of services

 

26 170

27 232

Income

Revenue

User charges and fees

13

361

660

Commonwealth grants and contributions

15

-

-

Other revenue

14

235

413

Total revenue

 

596

1 073

Total income other than income from State Government

596

1 073

NET COST OF SERVICES

 

25 574

26 159

INCOME FROM STATE GOVERNMENT

Service appropriation

 

25 380

26 664

Services received free of charge

 

1 533

1 565

Royalties for Regions Fund

 

850

179

Total income from State Government

16

27 763

28 408

SURPLUS/(DEFICIT) FOR THE PERIOD

 

2 189

2 249

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2 189

2 249

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

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Statement of financial position

as at 30 June 2015

 

Note

2015
$000

2014
$000

ASSETS

Current assets

Cash and cash equivalents

28

6 674

7 685

Restricted cash and cash equivalents

17

804

-

Receivables

18

442

708

Amounts receivable for services

19

173

173

Other current assets

20

986

609

Total current assets

 

9 079

9 175

Non-current assets

Restricted cash and cash equivalents

17

-

557

Amounts receivable for services

19

6 627

6 469

Property, plant and equipment

21

210

190

Intangible assets

22

168

348

Total non-current assets

 

7 005

7 564

TOTAL ASSETS

16 084

16 739

LIABILITIES

Current liabilities

Payables

24

1 309

1 274

Provisions

25

4 469

3 973

Other current liabilities

26

66

117

Total current liabilities

 

5 844

5 364

Non-current liabilities

Provisions

25

928

1 057

Total non-current liabilities

 

928

1 057

TOTAL LIABILITIES

 

6 772

6 421

NET ASSETS

9 312

10 318

Equity

Contributed equity

27

-

-

Accumulated surplus

27

9 312

10 318

TOTAL EQUITY

 

9 312

10 318

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

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Statement of changes in equity

for the year ended 30 June 2015

 

Note

Contributed equity
$000

Accumulated surplus/(deficit) $000

Total equity $000

Balance at 1 July 2013

27

-

8 069

8 069

Surplus/(deficit)

 

-

2 249

2 249

Total comprehensive income for the period

 

-

2 249

2 249

Balance at 30 June 2014

 

-

10 318

10 318

Balance at 1 July 2014

 

-

10 318

10 318

Surplus/(deficit)

 

-

2 189

2 189

Total comprehensive income for the period

 

-

2 189

2 189

Transactions with owners in their capacity as owners:

Capital appropriations

 

27

-

27

Distribution to owners

 

(3 222)

-

(3 222)

Transfer of contributed equity to Accumulated Surplus

 

3 195

(3 195)

-

Balance at 30 June 2015

 

-

9 312

9 312

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

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Statement of cash flows

for the year ended 30 June 2015

 

Note

2015
$000

2014
$000

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation

 

25 049

26 116

Holding account drawdowns

 

173

164

Non-retained revenue distributed to owner

 

(3 222)

-

Royalties for Regions Fund

 

877

179

Net cash provided by State Government

 

22 877

26 459

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee benefits

 

(18 106)

(19 186)

Supplies and services

 

(3 688)

(3 880)

Accommodation

 

(2 082)

(1 986)

Grants and subsidies

 

(512)

(1 150)

GST payments on purchases

 

(672)

(739)

GST payments to taxation authority

 

(92)

(106)

Receipts

User charges and fees

 

540

851

Commonwealth grants and contributions

 

-

-

GST receipts on sales

 

104

63

GST receipts from taxation authority

 

696

715

Other receipts

 

235

412

Net cash provided by/(used in) operating activities

28

(23 577)

(25 006)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments

Purchase of non-current physical assets

 

(64)

(169)

Net cash provided by/(used in) investing activities

 

(64)

(169)

Net increase/(decrease) in cash and cash equivalents

 

(764)

1 284

Cash and cash equivalents at the beginning of period

 

8 242

6 958

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

28

7 478

8 242

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

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Schedule of income and expenses by service

for the year ended 30 June 2015

 

Service 1
Public sector leadership

 

Service 2
Assistance and support

Service 3
Oversight and reporting

Total

 

2015
$000

2014(a)
$000

 

2015
$000

2014(a)
$000

2015
$000

2014(a)
$000

2015
$000

2014
$000

COST OF SERVICES

Expenses

Employee benefits expense

5 787

5 458

 

7 007

6 888

5 746

6 371

18 540

18 717

Supplies and services

1 738

2 020

 

1 726

1 612

1 260

1 449

4 724

5 081

Depreciation and amortisation expense

21

18

 

12

11

192

192

225

221

Accommodation expenses

718

654

 

633

597

731

735

2 082

1 986

Grants and subsidies

509

918

 

-

232

3

-

512

1 150

Carrying amount of non-current assets disposed

-

-

 

-

1

-

-

-

1

Other expenses

48

33

 

21

21

18

22

87

76

Total cost of services

8 821

9 101

 

9 399

9 362

7 950

8 769

26 170

27 232

Income

User charges and fees

359

659

 

1

1

1

-

361

660

Commonwealth grants and contributions

-

-

 

-

-

-

-

-

-

Other revenue

170

241

 

40

135

25

37

235

413

Total income other than income from State Government

529

900

 

41

136

26

37

596

1 073

NET COST OF SERVICES

8 292

8 201

 

9 358

9 226

7 924

8 732

25 574

26 159

INCOME FROM STATE GOVERNMENT

Service appropriation

8 595

8 635

 

8 610

8 807

8 175

9 222

25 380

26 664

Services received free of charge

486

393

 

548

528

499

644

1 533

1 565

Royalties for Regions Fund

850

179

 

-

-

-

-

850

179

Total income from State Government

9 931

9 207

 

9 158

9 335

8 674

9 866

27 763

28 408

Surplus/(deficit) for the period

1 639

1 006

 

(200)

109

750

1 134

2 189

2 249

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

(a) The distribution of income and expenses between Services for 2013/14 has been re-cast to reflect the current structure of the Commission.

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Schedule of assets and liabilities by service

as at 30 June 2015

 

Service 1
Public sector leadership

Service 2
Assistance and support

 

Service 3
Oversight and reporting

General –
Not attributed

Total

 

2015
$000

2014(a)
$000

2015
$000

2014(a)
$000

 

2015
$000

2014(a)
$000

2015
$000

2014(a)
$000

2015
$000

2014
$000

ASSETS

Current assets

1 598

751

1 607

1 336

 

957

779

4 917

6 309

9 079

9 175

Non-current assets

2 070

1 984

2 566

2 501

 

2 369

3 079

-

-

7 005

7 564

Total assets

3 668

2 735

4 173

3 837

 

3 326

3 858

4 917

6 309

16 084

16 739

LIABILITIES

Current liabilities

1 666

1 704

2 081

1 830

 

1 530

1 510

567

320

5 844

5 364

Non-current liabilities

372

356

368

420

 

188

281

-

-

928

1 057

Total liabilities

2 038

2 060

2 449

2 250

 

1 718

1 791

567

320

6 772

6 421

NET ASSETS

1 630

675

1 724

1 587

 

1 608

2 067

4 350

5 989

9 312

10 318

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

(a) The distribution of income and expenses between Services for 2013/14 has been re-cast to reflect the current structure of the Commission.

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Summary of consolidated account appropriations and income estimates

for the year ended 30 June 2015

 

2015 Estimate
$000

2015 Actual $000

Variance $000

2015 Actual
$000

2014(a) Actual $000

Variance $000

DELIVERY OF SERVICES

Item 7 – Net amount appropriated to deliver services

24 606

24 263

343

24 263

25 380

(1 117)

Amount authorised by other statutes

Salaries and Allowances Act 1975

1 117

1 117

-

1 117

1 284

(167)

Total appropriations provided to deliver services

25 723

25 380

343

25 380

26 664

(1 284)

Details of expenses by service

Service 1 – Public sector leadership

9 811

8 821

990

8 821

9 101

(280)

Service 2 – Assistance and support

9 536

9 399

137

9 399

9 362

37

Service 3 – Oversight and reporting

10 056

7 950

2 106

7 950

8 769

(819)

Total cost of services

29 403

26 170

3 233

26 170

27 232

(1 062)

Less total income

(1 649)

(596)

(1 053)

(596)

(1 073)

477

Net cost of services

27 754

25 574

2 180

25 574

26 159

(585)

Adjustments

(2 031)

(194)

(1 837)

(194)

505

(699)

Total appropriations provided to deliver services

25 723

25 380

343

25 380

26 664

(1 284)

Capital expenditure

Purchase of non-current physical assets

173

64

109

64

169

(105)

Adjustment for other funding sources

(173)

(37)

(136)

(37)

(169)

132

Capital appropriations

-

27

(27)

27

-

27

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 2015 and between the actual results for 2015 and 2014.

(a) With the implementation of a revised Outcome Based Management framework, the 2014 results have been recast for comparative purposes

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Notes to the financial statements for the year ended 30 June 2015

1. Australian Accounting Standards

General

The Commission's financial statements for the year ended 30 June 2015 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. 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 2015.

2. Summary of significant accounting policies

a) General statement

The Commission is a not-for-profit reporting entity that prepares general purpose financial statements in accordance with Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB 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 Australian 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 predominantly funded by Parliamentary appropriations.

Services

The Commission provides the following services:

  • Service 1 - Public sector leadership - This service develops and supports current and future leaders and builds the capacity of the public sector workforce through the delivery of leadership and workforce development products, programs and training.
  • Service 2 - Assistance and support - This service provides advice, assistance and support to public sector bodies and employees on a range of administration, management, integrity and governance matters.
  • Service 3 - Oversight and reporting - This service progresses changes to legislation and develops policies to improve public administration and management and provides independent oversight to monitor and report to Parliament and ministers on compliance with the Public Sector Management Act 1994, the Public Interest Disclosure Act 2003 and part IX of the Equal Opportunity Act 1984.

d) Contributed equity

AASB Interpretation 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 2014/15 Budget Statements, the Commission retained $2 336 000 in 2015 ($1 722 000 in 2014) 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, 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.

Gains

Realised and unrealised gains are usually recognised on a net basis. These include gains arising from the disposal of non-current assets and revaluations of non-current assets.

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 - 3 years
  • office equipment - 5 years
  • leasehold improvement - 7 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) - 3 years
  • licences - 3 years

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

Licences

Licences 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 recognised as property, plant and equipment. Software that is not an integral part of the related hardware is recognised 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 use two categories of financial instruments, which are:

  • loans and receivables; and
  • 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.
  • amounts 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 equivalent) 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 equivalents') 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 vary 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.

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 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 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 extinguish 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

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 or services received free of charge or for nominal cost, that the Commission would otherwise purchase if not donated, are recognised as income at fair value of the assets or services where they can be reliably measured. 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 fleet vehicles and 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 2014 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 and 1038 and Int 2, 4, 12, 13, 14, 17, 19, 131 and 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 and 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 and 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 and 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 and 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 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 Commission at reporting date.

AASB 9 - Financial Instruments

Operative for reporting periods beginning on/after 1 January 2018

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 2018 by AASB 2014-1 Amendments to Australian Accounting Standards. The Commission 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 and 1038 and Int 10 and 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 and 1038 and Int 2, 5, 10, 12, 19 and 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 application date of AASB 9 was subsequently deferred to 1 January 2018 by AASB 2014-1. 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

 

2015
$000

2014
$000

Wages and salaries(a)

16 965

17 139

Superannuation – defined contribution plans(b)

1 575

1 578

 

18 540

18 717

(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'. Employment on-costs liability is included at note 25 ' Provisions'.

7. Supplies and services

 

2015
$000

2014
$000

Communications

29

29

Freight and mail services

8

13

Consultants and contractors

3 741

3 834

Consumables

328

334

Repair and maintenance

55

54

Travel

63

85

Insurance premiums

89

100

License, fees and registration

121

127

Operating lease, rental and hire cost

119

120

Other

171

385

 

4 724

5 081

8. Depreciation and amortisation expenses

 

2015
$000

2014
$000

Depreciation

   

Leasehold improvement

17

14

Computer hardware

1

-

Office equipment

27

27

Total depreciation

45

41

Amortisation

   

Computer software

77

77

Licenses

103

103

Total amortisation

180

180

Total depreciation and amortisation

225

221

9. Accommodation expenses

 

2015
$000

2014
$000

Lease rentals

2 082

1 985

Repairs and maintenance

-

1

 

2 082

1 986

10. Grants and subsidies

 

2015
$000

2014
$000

Government agency grants

475

681

Scholarships

35

460

External grants

2

9

 

512

1 150

11. Loss on disposal of non-current assets

 

2015
$000

2014
$000

Cost of disposal of non-current assets

Office equipment

-

1

Net loss

-

(1)

12. Other expenses

 

2015
$000

2014
$000

Employment on-costs

(4)

3

Professional services(a)

56

72

Doubtful debts expense

35

-

Other

-

1

 

87

76

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

13. User charges and fees

 

2015
$000

2014
$000

Fees

361

660

 

361

660

14. Other revenue

 

2015
$000

2014
$000

Recoups

39

116

Recoup insurance

-

22

Contributions by senior officers to the Government Vehicle Scheme

21

18

Regional workers' incentive

57

125

Australian Apprenticeships Incentive Program

89

83

Other miscellaneous revenue

29

49

 

235

413

15. Commonwealth grants and contributions

 

2015
$000

2014
$000

Recurrent grant

-

-

16. Income from State Government

 

2015
$000

2014
$000

Appropriation received during the year

Service appropriation(a)

25 380

26 664

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

Department of the Premier and Cabinet
– corporate support services

916

1 084

Department of Finance – accommodation lease services

465

401

Department of the Attorney General – legal services

152

80

 

1 533

1 565

Royalties for Regions Fund

Regional Community Services Account(b)

850

179

 

850

179

 

27 763

28 408

(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) This is a sub-fund within the over-arching 'Royalties for Regions Fund'. The recurrent funds are committed to projects and programs in WA regional areas.

17. Restricted cash and cash equivalent assets

 

2015
$000

2014
$000

Current

Royalties for Regions Fund(a)

149

-

Accrued salaries suspense account(b)

655

-

 

804

-

Non-current

Accrued salaries suspense account(b)

-

557

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

(b) Amount held in the suspense account is for the purpose of meeting the 27th pay in a financial year that occurs every 11th year.

18. Receivables

 

2015
$000

2014
$000

Current

Receivables

289

508

Allowance for impairment of receivables

(35)

-

GST receivable

131

167

 

385

675

Loans and advances:

Other debtors

57

33

 

57

33

Total current

442

708

Reconciliation of changes in the allowance for impairment of receivables

Balance at start of period

-

-

Doubtful debts expense

35

-

Amounts written off during the period

-

-

Impairment losses reversed during the period

-

-

Balance at end of period

35

-

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

19. Amounts receivable for services (Holding Account)

 

2015
$000

2014
$000

Current

173

173

Non-current

6 627

6 469

 

6 800

6 642

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

 

2015
$000

2014
$000

Current

Prepayments

986

609

 

986

609

21. Property, plant and equipment

 

2015
$000

2014
$000

Computer hardware

At cost

29

22

Accumulated depreciation

(23)

(22)

 

6

-

Office equipment

   

At cost

171

146

Accumulated depreciation

(65)

(71)

 

106

75

Leasehold improvement

   

At cost

129

129

Accumulated depreciation

(31)

(14)

 

98

115

Total property, plant and equipment

210

190

Reconciliation - Computer hardware

Carrying amount at start of period

-

-

Additions

7

-

Depreciation

(1)

-

Carrying amount at end of period

6

-

Reconciliation - Office equipment

   

Carrying amount at start of period

75

63

Additions

58

40

Other disposals

-

(1)

Depreciation

(27)

(27)

Carrying amount at end of period

106

75

Reconciliation - Leasehold improvements

Carrying amount at start of period

115

-

Additions

-

129

Depreciation

(17)

(14)

Carrying amount at end of period

98

115

Reconciliation - Total

Carrying amount at start of period

190

63

Additions

65

169

Other disposals

-

(1)

Depreciation

(45)

(41)

Carrying amount at end of period

210

190

22. Intangible assets

 

2015
$000

2014
$000

Licenses

At cost

310

310

Accumulated amortisation

(223)

(120)

Carrying amount at end of period

87

190

Computer software

At cost

248

248

Accumulated amortisation

(167)

(90)

Carrying amount at end of period

81

158

Total intangible assets

168

348

Reconciliation – Licenses

Carrying amount at start of period

190

293

Amortisation expense

(103)

(103)

Carrying amount at end of period

87

190

Reconciliation – Computer software

   

Carrying amount at start of period

158

217

Additions

-

18

Amortisation expense

(77)

(77)

Carrying amount at end of period

81

158

23. Impairment of assets

There were no indications of impairment to property, plant and equipment and intangible assets at 30 June 2015.

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

24. Payables

 

2015
$000

2014
$000

Current

Payables

634

679

Accrued salaries

454

379

Accrued expenses

221

216

 

1 309

1 274

25. Provisions

 

2015
$000

2014
$000

Current

Employee benefits provision

Annual leave including superannuation(a)

1 493

1 493

Long service leave including superannuation(b)

2 956

2 458

 

4 449

3 951

Other provisions

Employment on-costs(c)

20

22

 

4 469

3 973

Non-current

Employee benefits provision

Long service leave including superannuation(b)

924

1 051

 

924

1 051

Other provisions

Employment on-costs(c)

4

6

 

928

1 057

(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 end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

Within 12 months of the end of the reporting period

(1 198)

(1 003)

More than 12 months after the end of the reporting period

(295)

(490)

 

(1 493)

(1 493)

(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 end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

Within 12 months of the end of the reporting period

(1 508)

(962)

More than 12 months after the end of the reporting period

(2 371)

(2 547)

 

(3 879)

(3 509)

(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.

 

2015
$000

2014
$000

Employment on-cost provision

Carrying amount at start of period

28

26

Additional provisions recognised

(4)

2

Payments/other sacrifices of economic benefits

-

-

Carrying amount at end of period

24

28

26. Other liabilities

 

2015
$000

2014
$000

Current

Income received in advance

66

117

 

66

117

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.

 

2015
$000

2014
$000

Contributed equity

   

Balance at start of period

-

-

Contributions by owners

   

Capital appropriations

27

-

Total contributions by owners

27

-

Distributions to owners

   

Transfer of surplus cash to the Consolidated Account

(3 222)

-

Total distributions to owners

(3 222)

-

Transfer of debit balance to Accumulated Surplus

3 195

-

Balance at end of period

-

-

     

Accumulated surplus

   

Balance at the start of period

10 318

8 069

Transfer of debt balance to Accumulated Surplus

(3 195)

-

Result for the period

2 189

2 249

Balance at end of period

9 312

10 318

     

Total Equity at the end of the period

9 312

10 318

28. Notes to the 'Statement of cash flows'

 

2015
$000

2014
$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

6 674

7 685

Restricted cash and cash equivalents (note 17)

804

557

 

7 478

8 242

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

Net cost of services

(25 574)

(26 159)

Non-cash items:

Depreciation and amortisation expense (note 8)

225

221

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

-

1

Services received free of charge (note 16)

1 534

1 565

(Increase)/decrease in assets:

Current receivables(a)

230

216

Other current assets

(377)

(50)

Increase/(decrease) in liabilities:

Current payables(a)

14

(231)

Current provisions

495

(507)

Non-current provisions

(130)

5

Net GST receipts/(payments)(b)

41

(79)

Change in GST receivables/payables(c)

(35)

12

Net cash provided by/(used in) operating activities

(23 577)

(25 006)

(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 non-current 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:

 

2015
$000

2014
$000

Salaries and Allowances Tribunal

Corporate Services

14

18

 

14

18

30. Commitments

The commitments below are inclusive of GST.

 

2015
$000

2014
$000

Non-cancellable operating lease commitments

   

Commitments for minimum lease payments are payable as follows:

Within 1 year

2 704

2 547

Later than 1 year and not later than 5 years

5 531

37

Later than 5 years

-

-

 

8 235

2 584

Capital expenditure commitments

Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows:

   

Within 1 year

73

-

Later than 1 year and not later than 5 years

-

-

Later than 5 years

-

-

 

73

-

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 1 year

2 098

1 441

Later than 1 year and not later than 5 years

1 807

940

Later than 5 years

-

24

 

3 905

2 405

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 ($)

2015

2014

60 001 - 70 000

1

-

70 001 - 80 000

2

-

100 001 - 110 000

1

-

130 001 - 140 000

1

2

150 001 - 160 000

2

-

160 001 - 170 000

-

1

180 001 - 190 000

-

1

190 001 - 200 000

-

-

200 001 - 210 000

1

-

210 001 - 220 000

-

1

220 001 - 230 000

1

-

250 001 - 260 000

-

1

280 001 - 290 000

2

-

290 001 - 300 000

-

1

410 001 - 420 000

-

1

460 001 - 470 000

-

1

520 001 - 530 000

1

-

 

2015
$000

2014
$000

Base remuneration and superannuation

2 184

2 312

Annual leave and long service leave accruals

26

(114)

Other benefits

78

55

Total remuneration of senior officers

2 288

2 253

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:

 

2015
$000

2014
$000

Auditing the accounts, financial statements and performance indicators

56

54

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 ten per cent or $10 000 000.

 

Variance note

Original budget 2015
$000

 

Actual 2015
$000

Actual 2014
$000

Variance between estimate and actual
$000

Variance between actual results for 2015 and 2014
$000

Statement of Comprehensive Income

(Controlled Operations)

Employee benefits expense

 

19 093

 

18 540

18 717

553

( 177)

Supplies and services

1

7 203

 

4 724

5 081

2 479

( 357)

Depreciation and amortisation expense

2

331

 

225

221

106

4

Accommodation expenses

3

2 325

 

2 082

1 986

243

96

Grants and subsidies

4, A

307

 

512

1 150

(205)

(638)

Loss on disposal of non-current assets

 

-

 

-

1

-

(1)

Other expenses

5, B

144

 

87

76

57

11

Total cost of services

 

29 403

 

26 170

27 232

3 233

(1 062)

Income

Revenue

User charges and fees

6, C

1 541

 

361

660

1 180

(299)

Commonwealth grants and contributions

7

78

 

-

-

78

-

Other revenue

8, D

30

 

235

413

(205)

(178)

Total revenue

 

1 649

 

596

1 073

1 053

(477)

Total income other than income from State Government

 

1 649

 

596

1 073

1 053

(477)

NET COST OF SERVICES

 

27 754

 

25 574

26 159

2 180

(585)

INCOME FROM STATE GOVERNMENT

Service appropriation

 

25 723

 

25 380

26 664

343

(1 284)

Services received free of charge

9

1 343

 

1 533

1 565

(190)

(32)

Royalties for Regions Fund

10, E

713

 

850

179

(137)

671

Total income from State Government

 

27 779

 

27 763

28 408

16

(645)

SURPLUS/(DEFICIT) FOR THE PERIOD

 

25

 

2 189

2 249

(2 164)

(60)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

 

25

 

2 189

2 249

(2 164)

(60)

 

Variance note

Original budget 2015
$000

 

Actual 2015
$000

Actual 2014
$000

Variance between estimate and actual
$000

Variance between actual results for 2015 and 2014
$000

Statement of Financial Position

(Controlled Operations)

ASSETS

Current assets

Cash and cash equivalents

11, F

5 019

 

6 674

7 685

(1 655)

(1 011)

Restricted cash and cash equivalents

12, G

-

 

804

-

(804)

804

Receivables

13, H

773

 

442

708

331

(266)

Amounts receivable for services

 

173

 

173

173

-

-

Other current assets

14, I

628

 

986

609

(358)

377

Total current assets

 

6 593

 

9 079

9 175

(2 486)

(96)

Non-current assets

Restricted cash and cash equivalents

15, G

674

 

-

557

674

(557)

Amounts receivable for services

 

6 848

 

6 627

6 469

221

158

Property, plant and equipment

16, W

260

 

210

190

50

20

Intangible assets

17, J

150

 

168

348

(18)

(180)

Total non-current assets

 

7 932

 

7 005

7 564

927

(559)

TOTAL ASSETS

 

14 525

 

16 084

16 739

(1 559)

(655)

LIABILITIES

Current liabilities

Payables

 

1 407

 

1 309

1 274

98

35

Provisions

K

4 322

 

4 469

3 973

(147)

496

Other current liabilities

18, L

717

 

66

117

651

(51)

Total current liabilities

 

6 446

 

5 844

5 364

602

480

Non-current liabilities

Provisions

19, M

752

 

928

1 057

(176)

(129)

Other Non-current liabilities

 

-

 

-

-

-

-

Total non-current liabilities

 

752

 

928

1 057

(176)

(129)

TOTAL LIABILITIES

 

7 198

 

6 772

6 421

426

351

NET ASSETS

 

7 327

 

9 312

10 318

(1 985)

(1 006)

EQUITY

Contributed equity

 

-

 

-

-

-

-

Accumulated surplus/(deficit)

20, N

7 327

 

9 312

10 318

(1 985)

(1 006)

TOTAL EQUITY

 

7 327

 

9 312

10 318

(1 985)

(1 006)

 

Variance note

Original budget 2015
$000

 

Actual 2015
$000

Actual 2014
$000

Variance between estimate and actual
$000

Variance between actual results for 2015 and 2014
$000

Statement of Cash Flows

(Controlled Operations)

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation

 

25 171

 

25 049

26 116

122

(1 067)

Holding account drawdowns

 

173

 

173

164

-

9

Non-retained revenue distributed to owner

21, O

-

 

( 3 222)

-

3 222

(3 222)

Royalties for Regions Fund

22, P

713

 

877

179

(164)

698

Receipts paid into the Consolidated Account

 

-

 

-

-

-

-

Net cash provided by State Government

 

26 057

 

22 877

26 459

3 180

(3 582)

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee benefits

 

( 19 006)

 

(18 106)

(19 186)

(900)

1 080

Supplies and services

23

( 5 873)

 

(3 688)

(3 880)

( 2 185)

192

Accommodation

24

( 2 325)

 

(2 082)

(1 986)

(243)

(96)

Grants and subsidies

25, Q

(307)

 

(512)

(1 150)

205

638

GST payments on purchases

26

(588)

 

(672)

(739)

84

67

GST payments to taxation authority

R

(87)

 

(92)

(106)

5

14

Receipts

User charges and fees

27, S

1 541

 

540

851

1 001

(311)

Commonwealth grants and contributions

28

78

 

-

-

78

-

GST receipts on sales

29, T

87

 

104

63

(17)

41

GST receipts from taxation authority

30

600

 

696

715

(96)

(19)

Other receipts

31, U

30

 

235

412

(205)

(177)

Net cash provided by/(used in) operating activities

 

( 25 850)

 

(23 577)

(25 006)

(2 273)

1 429

CASH FLOWS FROM INVESTING ACTIVITIES

Payments

Purchase of non-current assets

32, V

(173)

 

(64)

(169)

(109)

105

Net cash provided by/(used in) investing activities

 

(173)

 

(64)

(169)

(109)

105

Net increase/(decrease) in cash and cash equivalents

 

34

 

(764)

1 284

798

(2 048)

Cash and cash equivalents at the beginning of period

 

5 659

 

8 242

6 958

( 2 583)

1 284

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

 

5 693

 

7 478

8 242

(1 785)

(764)

Major variance narratives (controlled operations)

Variances between estimate and actual

1. Supplies and services underspent by $2.479 million (34 per cent) mainly due to a further refinement of training programs delivered ($0.8 million) as part of the 2015-16 Fees and Charges Review which include the Public Sector Management Program being transferred to the Queensland University of Technology from 1 January 2015 as a result of a tender process in 2014 and realignment of expenditure to employee benefits expense.

2. Depreciation and amortisation expense underspent by $106 000 (32 per cent) mainly due to a delay in the purchase of additional equipment and software.

3. Accommodation expenses underspent by $243 000 (10.5 per cent) mainly due to utility expenses of $73 000 actual expenditure being reported under supplies and services and lower costs from outgoing expenditure associated with lease.

4. Grants and subsidies exceeded estimates by $205 000 (67 per cent) mainly due to higher grants related to The Australia and New Zealand School of Government (ANZSOG).

5. Other expenses underspent by $57 000 (40 per cent) mainly due to external audit
($49 000) actual expenditure being reported under supplies and services.

6. User charges and fees was lower than estimate by $1.2 million (77 per cent) mainly due to the transfer of the Public Sector Management Program to the Queensland University of Technology from 1 January 2015 as a result of a tender process in 2014 and the projected increase in trainees did not eventuate.

7. The Commonwealth grants and contributions was reclassified to other revenue as it relates to the Australian Government Australian Apprenticeships. Please refer to note no. 8 below.

8. Other revenue was higher than estimated by $205 000 (683 per cent) mainly from the Australian Government Australian Apprenticeships of $78 000, additional income from prior years of $38 000 and IT Helpdesk and training rebates of $26 000.

9. Services received free of charge was higher than estimated by $190 000 (14 per cent) mainly due to increased cost of services provided by the Department of Premier and Cabinet.

10. Royalties for Regions Fund was higher than estimated by $137 000 (19 per cent) mainly due to additional recurrent funding as part of the 2014-15 Mid-Year Review in November 2014.

11. Cash and cash equivalents was higher than estimates by $1.655 million (33 per cent) mainly due to the cash management saving measure where $3.222 million was returned to the Consolidated Account, a reduction to Current Liabilities of $602 000 and offset by an operating cash surplus of $2.164 million.

12. Restricted cash and cash equivalents (current) of $804 000 (100 per cent) was transferred from non-current assets to current assets in 2014-15 and comprised of accrued salaries ($655 000) and unspent funds committed to projects and programs in WA regional areas ($149 000).

13. Receivables was lower than estimate by $331 000 (43 per cent) mainly due to reduced income from user charges and fees.

14. Other current assets was higher than estimate by $358 000 (57 per cent) mainly due to a prepayment for ANZSOG training grants of $473 000.

15. Restricted cash and cash equivalents (non-current) was transferred from non-current assets to current assets in 2014-15. Please refer to note no. 12.

16. Property, plant and equipment was lower than estimate of $50 000 (19 per cent) mainly due to the expense of purchased computer hardware that did not meet the capitalisation threshold.

17. Intangible assets was higher than estimate of $18 000 (12 per cent) mainly due to lower intangibles budget.

18. Other current liabilities was lower than estimate of $651 000 (91 per cent) mainly due to reduced income received in advance related to user charges and fees.

19. Provisions (non-current) was higher than estimate of $176 000 (23 per cent) mainly due to delays in staff taking Long Service Leave and increases in the discounted bond rate from the actuarial assessment.

20. Accumulated surplus was higher than estimate of $1.985 million (27 per cent) mainly due to an operating surplus of $2.164 million and offset by movements in assets and liabilities.

21. Non-retained revenue distributed to owner of $3.222 million (100 per cent) was due to the cash management saving measure where $3.222 million was returned to the Consolidated Account.

22. Please refer to note no.10 above.

23. Supplies and Services payment was lower than estimate of $2.185 million (37 per cent) mainly due to a further refinement of training programs delivered ($0.8 million) as part of the 2015-16 Fees and Charges Review which include the Public Sector Management Program being transferred to the Queensland University of Technology from 1 January 2015 as a result of a tender process in 2014 and realignment of expenditure to employee benefits expense.

24. Accommodation payment was lower than estimate by $243 000 (10.5 per cent) mainly due to utility expenses of $73 000 actual payment being reported under supplies and services and lower costs from outgoing expenditure associated with lease.

25. Grants and Subsidies payment was higher than estimate by $205 000 (67 per cent) mainly due to higher payments related grants from The Australia and New Zealand School of Government (ANZSOG).

26. GST payment on purchases was higher by $84 000 (14 per cent) mainly due to timing differences when purchases were paid.

27. User charges and fees was lower than estimate by $1.001 million (65 per cent) mainly due to the transfer of the Public Sector Management Program to the Queensland University of Technology from 1 January 2015 as a result of a tender process in 2014 and the projected increase in trainees did not eventuate.

28. The Commonwealth grants and contributions was reclassified to other receipts as it relates to the Australian Government Australian Apprenticeships.

29. GST receipts on sales was higher than estimate by $17 000 (20 per cent) mainly due to timing differences of receipts.

30. GST receipts from taxation authority was higher than estimate by $96 000 (16 per cent) mainly due to timing differences of receipts.

31. Other receipts was higher than estimate by $205 000 (683 per cent) mainly from the Australian Government Australian Apprenticeships of $78 000, additional income from prior years of $38 000 and IT Helpdesk and training rebates of $26 000.

32. Purchase of non-current assets was lower than estimate by $109 000 (63 per cent) mainly due to the expense of purchased computer hardware that did not meet the capitalisation threshold and delay in the purchase of additional equipment and software.

Variances between actual results for 2015 and 2014

A. Grants and subsidies decreased by $638 000 (55 per cent) mainly due to one-off scholarships related to leadership development offered in 2014.

B. Other expenses increased by $11 000 (14 per cent) mainly due to doubtful debt allowance offset by $35 000 and offset by lower professional services expenditure.

C. User charges and fees decreased by $299 000 (45 per cent) mainly due to lower number of participants from the Public Sector Leadership course ($314 000).

D. Other revenue decreased by $178 000 (43 per cent) mainly due to reduced regional workers incentive of $70 000 and recoups of $95 000.

E. Royalties for Regions fund increased by $671 000 (375 per cent) mainly due to a disbursement adjustment of $279 000 in the 2014-15 Mid-Year Review in November 2014 and a reflow of 2012-13 funding of $382 000.

F. Cash and cash equivalents decreased by $1.011 million (13 per cent) mainly due to the cash management saving measure where $3.222 million was returned to the Consolidated Account and offset by an operating cash surplus of $2 million.

G. Restricted cash and cash equivalents (current) of $804 000 (100 per cent) was transferred from non-current assets to current assets in 2014-15 and comprised of accrued salaries ($655 000) and unspent funds committed to projects and programs in WA regional areas ($149 000).

H. Receivables decreased by $266 000 (38 per cent) mainly due to lower user charges and fees.

I. Other current assets increased by $377 000 (62 per cent) mainly due to an increase in the prepayment of ANZSOG training programs and offset by other training programs.

J. Intangible assets decreased by $180 000 (52 per cent) mainly due to the accumulated amortisation of assets.

K. Provisions (current) increased by $496 000 (12 per cent) mainly due to delays in staff taking Long Service Leave and increases in the discounted bond rate from the actuarial assessment.

L. Other current liabilities decreased by $51 000 (44 per cent) mainly due to reduced income received in advance from user charges and fees.

M. Provisions (non-current) decreased by $129 000 (12.2 per cent) mainly due to the resignation of long serving staff or the transfer to other agencies.

N. Accumulated surplus/(deficit) decreased by $1.006 million (10 per cent) mainly due to the cash management saving measure where $3.222 million was returned to the Consolidated Account and offset by an operating surplus of $2 million.

O. Non-retained revenue distributed to owner of $3.222 million (100 per cent) was due to the cash management saving measure where $3.222 million was returned to the Consolidated Account in 2015.

P. Royalties for Regions fund increased by $698 000 (390 per cent) mainly due to a disbursement adjustment of $279 000 in the 2014-15 Mid-Year Review in November 2014 and a reflow of 2012-13 funding of $382 000.

Q. Grants and subsidies decreased by $638 000 (55 per cent) mainly due to one-off scholarships related to leadership development offered in 2014.

R. GST payments to taxation authority decreased by $14 000 (13 per cent) mainly due to lower expenditure that included GST.

S. User charges and fees decreased by $311 000 (37 per cent) mainly due to lower number of participants to the Public Sector Leadership course of $314 000.

T. GST receipts on sales was higher than actual by $41 000 (65 per cent) mainly due to timing differences of receipts.

U. Other receipts decreased by $177 000 (43 per cent) mainly due to reduced regional workers incentive of $70 000 and recoups of $95 000.

V. Purchase of non-current assets decreased by $105 000 (62 per cent) mainly due to purchased computers that did not meet the capitalisation threshold and were expensed.

W. Property, plant and equipment increased by $20 000 (11 per cent) mainly due to purchase of $65 000 of computer hardware and office equipment and offset by
$45 000 depreciation expenditure.

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:

 

2015
$000

2014
$000

Financial assets

Cash and cash equivalents

6 674

7 685

Restricted cash and cash equivalents

804

557

Loans and Receivables(a)

7 111

7 183

Financial liabilities

Payables

1 309

1 274

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

c) Financial Instrument Disclosures

Credit risk

The following 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.

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

2015

Cash and cash equivalents

6 674

6 674

-

-

-

-

-

-

Restricted cash and cash equivalents

804

804

-

-

-

-

-

-

Receivables(a)

311

200

14

23

6

33

-

35(b)

Amounts receivable for services

6 800

6 800

-

-

-

-

-

-

 

14 589

14 478

14

23

6

33

-

35

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

-

-

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

(b) Impairment provided for potential uncollectable debts.

Liquidity risk and interest rate exposure

The following 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.

Interest rate exposure 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 1 year
$000

1–5 years
$000

> 5 years
$000

2015

Financial assets

Cash and cash equivalents

-

6 674

-

-

6 674

6 674

6 674

-

-

-

-

Restricted cash and cash equivalents

-

804

-

-

804

804

804

-

-

-

-

Receivables(a)

-

311

-

-

311

311

249

23

6

33

-

Amounts receivable for services

-

6 800

-

-

6 800

6 800

-

-

173

6 627

-

   

14 589

-

-

14 589

14 589

7 727

23

179

6 660

-

Financial liabilities

Payables

-

1 309

-

-

1 309

1 309

1 158

151

-

-

-

   

1 309

-

-

1 309

1 309

1 158

151

-

-

-

(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 1 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).

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 $1 023 000 for 2014/15 ($1 007 000 for 2013/14).

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.

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Key performance indicators

Certification of key performance indicators for the year ended 30 June 2015

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 2015.

M C Wauchope
ACCOUNTABLE AUTHORITY
12 August 2015

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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, the Commission provides services to public sector entities to achieve its 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

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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 CEOs and ministers of the Commission's core clients.

Following internal and external stakeholder engagement, the definition of the Commission's core clients was amended 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. The 2014/15 survey adopted the same definition, with a total of 155 core clients engaged to complete the survey.

The Commission's core clients for 2014/15 captured a large scope of clients, comprising of:

  • 39 departments created under section 35 of the PSM Act
  • 17 ministerial offices
  • 49 SES organisations specified in column Two of Schedule Two of the PSM Act
  • 50 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 2014/15 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 the Commission's 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 survey offered a four-step rating from strongly agree to strongly disagree, with an additional 'not-applicable' option. The Commission received a 72 per cent response rate to the survey, an improvement of 2 per cent on last year's response rate.

For a population of 155, responses must be received from 111 organisations to achieve a confidence interval of within +/- 5 per cent at the 95 per cent confidence level. This was achieved in the current year, however the Commission will actively seek opportunities to improve the response rate in the following financial years as a result of not exceeding the lowest required response rate in order to provide sufficient confidence.

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

Key effectiveness indicator

Target 2014/15

Actual 2014/15

Variance between target and actual

Actual 2013/14

Actual 2012/13

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%

97%

12%(i)

95%

98%

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%

89%

4%

90%

95%

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%

75%

-

84%

78%

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%

69%

(6%)(ii)

78%

60%

(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.

(i) The variance between the targeted and actual key effectiveness indicator responses likely reflects the continued delivery of high quality policy, assistance and oversight by the Commission to its core clients.

(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 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
(note- 23 per cent selected 'non-applicable').

(d) 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.

(ii) The variance between the targeted and actual key effectiveness indicator responses may be attributed to agencies having established strong equal opportunity mechanisms over previous years, resulting in a decreased need to seek advice from the Commission in this area. It should be noted that 28 per cent of respondents selected 'non-applicable'.

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, which are excluded because it is considered this is not a cost of delivering services.

Service 1 – Public sector leadership

This service develops and supports current and future leaders and builds the capacity of the public sector workforce through the delivery of leadership and workforce development products, programs and training.

Key effectiveness indicator

Target 2014/15

Actual 2014/15

Variance between target and actual

Actual 2013/14

Actual 2012/13

Average Cost per Leadership Development Product, Program or Training Hour

$140

$109

($31)(1)

$135

$128

Average Cost per Workforce Development Program, Product or Training Hour

$145

$118

($27)(2)

$154

$111

With the implementation of a revised Outcome Based Management framework, the prior year actuals have been recast for comparative purposes.

(1) The actual average cost for supporting authorities with leadership and development in 2014/15 is lower than budgeted due to the Centre for Excellence's new approach to delivering professional development programs. This has moved from an outsourcing methodology to an in-house delivery model.

(2) The actual average cost for supporting authorities through workforce development and diversity programs in 2014/15 is lower than budgeted, mainly due to the Commission's focus on the efficient delivery of development programs with reduced FTE levels and associated operating costs.

Service 2 – Assistance and Support

This service provides advice, assistance and support to public sector bodies and employees on a range of administration, management, integrity and governance matters.

Key effectiveness indicator

Target 2014/15

Actual 2014/15

Variance between target and actual

Actual 2013/14

Actual 2012/13

Average Cost per Hour of Assistance and Support Provided

$93

$93

-

$108

$92

Average Cost per Public Administration, Standards and Integrity Program, Product or Training Hour

$101

$120

$19(i)

$105

$87

With the implementation of a revised Outcome Based Management framework, the prior year actuals have been recast for comparative purposes.

(i) The actual average cost for assisting and supporting authorities to sustain standards of ethics and integrity in 2014/15 is higher than budgeted, due to internal structural changes within the Commission, including the transfer of the integrity promotion function to this area.

Service 3 – Oversight and Reporting

This service progresses changes to legislation and develops policies to improve public administration and management, and provides independent oversight to monitor and report to Parliament and ministers on compliance with the Public Sector Management Act 1994, the PID Act and part IX of the EO Act.

Key effectiveness indicator

Target 2014/15

Actual 2014/15

Variance between target and actual

Actual 2013/14

Actual 2012/13

Average Cost per Hour Addressing Legislative and Policy Development

$93

$97

$4

$109

$94

Average Cost per Hour of Performance and Oversight Activity

$89

$102

$13(1)

$99

$95

Percentage of Oversight Actions Completed within Target Timeframes

90%

89%

(1%)

91%

83%

With the implementation of a revised Outcome Based Management framework, the prior year actuals have been recast for comparative purposes.

(1) The actual average cost per hour of performance and oversight activity in 2014/15 is higher than budgeted, due to an increase in the complexity of investigations and reviews involved in the oversight program.

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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 2014/15 was $125 337
  2. Expenditure was incurred in the following areas:

Applications

2014/15 expenditure

Advertising agencies:

  • Adcorp
  • Career Hub

 

$120 668

$164

Market research organisations

Nil

Polling organisations

Nil

Direct mail organisations

Nil

Media advertising organisations:

Radio advertising – Aboriginal traineeship program

 

$4 505

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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, the Commission shares common records management procedures and a controlled vocabulary with DPC which are reviewed annually. We provide online records awareness training for staff which complements the record awareness training component of the Commission's induction program.

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Occupational safety and health

The Commission is committed to ensuring the occupational health, safety and welfare of its employees, contractors and visitors by providing and maintaining a safe working environment. Creating this environment requires the commitment of the Commission's 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.

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 of elected representatives from across the Commission who are accessible to employees and management to discuss safety and health matters in the workplace.

These OSH initiatives are further supported by our health and wellness program to encourage workplace and personal wellbeing. In 2014/15, key achievements include at-work influenza vaccinations, promotion of corporate health fund discounts, provision of a superannuation and retirement planning seminar to assist a positive transition to retirement, recognition and participation in community events as well as the opportunity to undertake Mental Health First Aid training.

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 Occupational Safety and Health Act 1984 and 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 OSH committee has undertaken 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.

Measures

Actual results for 2014/15 are based on calculations of 124.5 FTE and one lost time injury. This injury resulted in lost time being less than 60 days and the employee returned to work within 13 weeks.

 

2014/15

2013/14

2012/13

2011/12

Target

Comment

Number of fatalities

0

0

0

0

0

Achieved

Percentage of lost time injury/disease incidence rate

0.80%

0.76%

1.49%

0.69%

0 or 10% improvement on the previous three years

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

Percentage of lost time injury/disease severity rate

0

0

0

0

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

Achieved

Percentage of injured workers returned to work within 26 weeks

100% within
13 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 employee returning to work within 13 weeks.

 

100% within
26 weeks

100% within
26 weeks

100% within
26 weeks

100% within
26 weeks

   

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

95%

97%

82%

71%

Greater than or equal to 80%

The Commission has exceeded the
80% target.

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Substantive equality

Substantive equality seeks to eliminate systemic forms of discrimination in the delivery of public sector services and to promote awareness of the different needs of client groups.

The Commission's commitment to the state government's Substantive Equality Policy Framework is reflected in its Code of Conduct and Workforce and diversity plan, which are available to all staff via the Commission's intranet.

The principles of the policy framework form part of the Commission's business practices, service delivery to client groups and is embedded into our human resource policies, procedures and guidelines.

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Compliance with public sector standards and ethical codes

The administration of the Commission complies with the Public Sector Standards in Human Resource Management, the Western Australian Public Sector Code of Ethics and the Commission's Code of Conduct. The applications made for breach of standards review and the corresponding outcomes for the reporting period are detailed in the following table.

Applications for breach of standard and corresponding outcomes for 2014/15

Number lodged

0

Number of breaches found

0

Number still under review

0

The Commission has procedures and policies in place designed to ensure compliance with public sector standards, public sector code of ethics and public sector standards in human resource management. In addition, the Commission's internal code of conduct specifies appropriate standards of employee behaviour, with direct relevance to the Commission's unique role and responsibilities.

Measures we use to inform our employees of these standards and requirements include providing information to new employees as part of the induction process, publishing the documentation on the Commission's intranet and regular information sharing sessions for all employees.

Human Resources provides advice, support and guidance to managers and employees in relation to the Public Sector Standards. Notification of the right to lodge a breach of standard claim is provided as required by the Public Sector Management (Breaches of Public Sector Standards) Regulations 2005.

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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 2014/15. A more comprehensive breakdown of our statistics is provided in the annual report of the Office of the Information Commissioner.

Applications

2014/15

2013/14

2012/13

2011/12

Received during the year

9*

4

10

24

Finalised during the year

8

4

9

24

Average time to process (days)

42

40

28

29

Outcomes

2014/15

2013/14

2012/13

2011/12

Full access

0

0

0

0

Edited access

8

3

4

15

Deferred access

0

0

0

0

Section 26 access

0

0

1

2

Section 28 access

0

0

0

0

Accessed refused

0

0

3

3

Total decisions

8

3

8

20

Transferred to other agencies

0

1

0

0

Withdrawn

0

0

1

4

Total applications

8

4

9

24

Salaries and Allowances Tribunal

The Salaries and Allowances Tribunal (SAT) is an independent statutory body established under section 5 of the Salaries and Allowance 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.

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Page last updated 24 September 2015