Disclosures and legal compliance

Financial statements

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Certification of financial statements

for the year ended 30 June 2016

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 2016 and the financial position as at 30 June 2016.

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
16 August 2016

A Alderson
CHIEF FINANCE OFFICER
16 August 2016

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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 2016

  Note 2016
$000
2015
$000

COST OF SERVICES

Expenses

Employee benefits expense

6

17 745

18 540

Supplies and services

7

4 469

4 724

Depreciation and amortisation expense

8

204

225

Accommodation expenses

9

2 181

2 082

Grants and subsidies

10

1 032

512

Other expenses

11

78

87

Total cost of services

 

25 709

26 170

Income

Revenue

User charges and fees

12

155

361

Other revenue

13

227

178

Total Revenue

 

382

539

Total income other than income from State Government

 

382

539

NET COST OF SERVICES

 

25 327

25 631

INCOME FROM STATE GOVERNMENT

Service appropriation

 

27 478

25 380

Services received free of charge

 

1 093

1 533

Royalties for Regions Fund

 

26

907

Total income from State Government

14

28 597

27 820

SURPLUS/(DEFICIT) FOR THE PERIOD

 

3 270

2 189

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

 

3 270

2 189

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 2016

  Note 2016
$000
2015
$000

ASSETS

Current Assets

Cash and cash equivalents

26

10 191

6 674

Restricted cash and cash equivalents

15

-

804

Receivables

16

812

442

Amounts receivable for services

17

173

173

Other current assets

18

422

986

Total current assets

 

11 598

9 079

Non-current Assets

Amounts receivable for services

17

6 813

6 627

Property, plant and equipment

19

224

210

Intangible assets

20

-

168

Other non-current assets

18

104

-

Total non-current assets

 

7 141

6 350

TOTAL ASSETS

 

18 739

15 429

LIABILITIES

Current Liabilities

Payables

22

836

1 309

Provisions

23

4 432

4 469

Other current liabilities

24

73

66

Total current liabilities

 

5 341

5 844

Non-current Liabilities

Provisions

23

916

928

Total non-current liabilities

 

916

928

TOTAL LIABILITIES

 

6 257

6 772

NET ASSETS

 

12 482

8 657

EQUITY

Accumulated surplus/(deficit)

25

12 482

9 312

TOTAL EQUITY

 

12 482

9 312

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 2016

  Note Contributed
equity
$000
Accumulated
surplus/
(deficit)
$000
Total
equity
$000

Balance as 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 as at 30 June 2015

25

-

9 312

9 312

Balance as at 1 July 2015

 

-

9 312

9 312

Surplus/(deficit)

 

-

3 270

3 270

Other comprehensive income

 

-

-

-

Total comprehensive income for the period

 

-

3 270

3 270

Transactions with owners in their capacity as owners:

Distribution to owners

 

(100)

-

(100)

Transfer of contributed equity to Accumulated Surplus

 

100

(100)

-

Balance as at 30 June 2016

25

-

12 482

12 482

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 2016

  Note 2016
$000
2015
$000

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation

 

27 119

25 049

Holding account drawdowns

 

173

173

Non-retained revenue distributed to owner

 

(100)

(3 222)

Royalties for Regions Fund

 

26

934

Net cash provided by State Government

 

27 218

22 934

Utilised as follows

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee benefits

 

(17 956)

(18 106)

Supplies and services

 

(3 709)

(3 687)

Accommodation

 

(2 181)

(2 082)

Grants and subsidies

 

(926)

(512)

GST payments on purchases

 

(595)

(672)

GST payments to taxation authority

 

(45)

(92)

Receipts

User charges and fees

 

167

540

GST receipts on sales

 

34

104

GST receipts from taxation authority

 

560

696

Other receipts

 

214

178

Net cash provided by/(used in) operating activities

26

(24 437)

(23 633)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments

Purchase of non-current assets

 

(68)

(65)

Net cash provided by/(used in) investing activities

 

(68)

(65)

Net increase/(decrease) in cash and cash equivalents

 

2 713

(764)

Cash and cash equivalents at the beginning of period

 

7 478

8 242

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

26

10 191

7 478

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Summary of consolidated account appropriations and income estimates

for the year ended 30 June 2016

  2016
Estimate
$000
2016
Actual
$000
Variance
$000
2016
Actual
$000
2015
Actual
$000
Variance
$000

DELIVERY OF SERVICES

Item 7 - Net amount appropriated to deliver services

26 328

26 328

-

26 328

24 263

2 065

Amount authorised by Other Statutes
- Salaries and Allowances Act 1975

1 150

1 150

-

1 150

1 117

33

Total appropriations provided to deliver services

27 478

27 478

-

27 478

25 380

2 098

Details of Expenses by Service

Service 1 - Public sector leadership

10 267

7 157

3 110

7 157

8 821

(1 664)

Service 2 - Assistance and support

10 976

9 891

1 085

9 891

9 399

492

Service 3 - Oversight and reporting

8 828

8 661

167

8 661

7 950

711

Total Cost of Services

30 071

25 709

4 362

25 709

26 170

( 461)

Less Total Income(a)

(445)

(382)

(63)

(382)

(539)

157

Net Cost of Services

29 626

25 327

4 299

25 327

25 631

(304)

Adjustments

(2 148)

2 151

(4 299)

2 151

(251)

2 402

Total appropriations provided to deliver services

27 478

27 478

-

27 478

25 380

2 098

Capital Expenditure

Purchase of non-current assets

173

68

105

68

65

3

Adjustments for other funding sources

(173)

(68)

(105)

(68)

(37)

(31)

Capital appropriations

-

-

-

-

28

(28)

Adjustments comprise movements in cash balances and other accrual items such as receivables, payables and superannuation. Note 31 'Explanatory statement' provides details of any significant variations between estimates and actual results for 2016 and between the actual results for 2016 and 2015.

(a) The 2015 actual has been recast to match current year's reporting parameters.

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Schedule of income and expenses by service

for the year ended 30 June 2016

 

Service 1
Public sector leadership

Service 2
Assistance and support

Service 3
Oversight and reporting

Total

 

2016
$000

2015
$000

2016
$000

2015
$000

2016
$000

2015
$000

2016
$000

2015
$000

COST OF SERVICES

Expenses

Employee benefits expense

4 751

5 787

6 541

7 007

6 453

5 746

17 745

18 540

Supplies and services

1 307

1 738

1 829

1 726

1 333

1 260

4 469

4 724

Depreciation and amortisation expense

57

21

68

12

79

192

204

225

Accommodation expenses

656

718

752

633

773

731

2 181

2 082

Grants and subsidies

354

509

678

-

-

3

1 032

512

Other expenses

32

48

23

21

23

18

78

87

Total cost of services

7 157

8 821

9 891

9 399

8 661

7 950

25 709

26 170

Income

User charges and fees

154

359

1

1

-

1

155

361

Other revenue(a)

189

113

20

40

18

25

227

178

Total income other than income from State Government

343

472

21

41

18

26

382

539

NET COST OF SERVICES

6 814

8 349

9 870

9 358

8 643

7 924

25 327

25 631

INCOME FROM STATE GOVERNMENT

Service appropriation

8 434

8 595

9 934

8 610

9 110

8 175

27 478

25 380

Services received free of charge

220

486

423

548

450

499

1 093

1 533

Royalties for Regions Fund(a)

26

907

-

-

-

-

26

907

Total income from State Government

8 680

9 988

10 357

9 158

9 560

8 674

28 597

27 820

Surplus/(deficit) for the period

1 866

1 639

487

(200)

917

750

3 270

2 189

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Schedule of assets and liabilities by service

as at 30 June 2016

  Service 1
Public sector leadership
Service 2
Assistance and support
Service 3
Oversight and reporting
Total
2016
$000
2015
$000
2016
$000
2015
$000
2016
$000
2015
$000
2016
$000
2015
$000

ASSETS

Current assets

2 855

3 166

4 531

3 552

4 212

2 361

11 598

9 079

Non-current assets

1 748

2 070

2 586

2 566

2 807

2 369

7 141

7 005

Total assets

4 603

5 236

7 117

6 118

7 019

4 730

18 739

16 084

LIABILITIES

Current liabilities

1 209

1 937

2 247

2 270

1 885

1 637

5 341

5 844

Non-current liabilities

282

372

287

368

347

188

916

928

Total liabilities

1 491

2 309

2 534

2 638

2 232

1 825

6 257

6 772

NET ASSETS

3 112

2 927

4 583

3 480

4 787

2 905

12 482

9 312

The 'Schedule of Assets and Liabilities by Service' should be read in conjunction with the accompanying notes.

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Notes to the financial statements for the year ended 30 June 2016

1. Australian Accounting Standards

General

The Commission's financial statements for the year ended 30 June 2016 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 2016.

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. It provides training services on a fee-for-service basis. The fees charged are determined on a cost-recovery basis unless subsidised by the Commission and agreed upon with Treasury.

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 the Parliament of Western Australia and Ministers on compliance with the Public Sector Management Act 1994, the Corruption, Crime and Misconduct Act 2003, 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 most recent determination, as quantified in the 2015/16 Budget Statements, the Commission retained $1 038 000 ($2 336 000 in 2015) 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 on 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 - 5 to 10 years dependent on the life of the lease
  • Furniture, Fixtures and Fittings - 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 a specialised asset has been identified as a surplus asset, the recoverable amount is the higher of an asset's fair value less costs to sell and depreciated replacement cost.

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

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

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

i) Leases

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

j) Financial instruments

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

  • Loans and receivables
  • Financial liabilities measured at amortised cost.

Financial instruments have been disaggregated into the following classes.

Financial assets
  • Cash and cash equivalents
  • Restricted cash and cash equivalents
  • Receivables
  • 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 22 '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 15 '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.

q) 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 GESB.

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'.

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, GESBS or other superannuation funds. The employer contribution paid to GESB in respect of the GSS is paid back into the Consolidated Account by 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 the 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 2015 that impacted on the Commission.

AASB 2013-9

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

Part C of this Standard defers the application of AASB 9 to 1 January 2017. 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.

AASB 2014-8

Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) - Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB9 (2009 & 2010)].

This Standard makes amendments to AASB 9 Financial Instruments (December 2009) and AASB 9 Financial Instruments (December 2010), arising from the issuance of AASB 9 Financial Instruments in December 2014. The Commission has not yet determined the application or the potential impact of AASB 9.

AASB 2015-3

Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality.

This Standard completes the withdrawal of references to AASB 1031 in all Australian Accounting Standards and Interpretations, allowing that Standard to effectively be withdrawn. There is no financial impact.

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 or by an exemption from TI 1101. Where applicable, the Commission plans to apply the following Australian Accounting Standards from their application 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 is currently 1 January 2018 after being amended by AASB 2012-6, AASB 2013-9 and AASB 2014-1 Amendments to Australian Accounting Standards. The Commission has not yet determined the application or the potential impact of the Standard.

AASB 15 Revenue from Contracts with Customers

Operative for reporting periods beginning on/after 1 January 2018

This Standard establishes the principles that the Commission shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. The Commission has not yet determined the application or the potential impact of the Standard.

AASB 16 Leases

Operative for reporting periods beginning on/after 1 January 2019

This Standard introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The Commission has not yet determined the application or the potential impact of the Standard.

AASB 1057 Application of Australian Accounting Standards

Operative for reporting periods beginning on/after 1 January 2016

This Standard lists the application paragraphs for each other Standard (and Interpretation), grouped where they are the same. There is no financial impact.

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

Operative for reporting periods beginning on/after 1 January 2018

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

The mandatory application date of this Standard has been amended by AASB 2012- 6 and AASB 2014-1 to 1 January 2018. The Commission has not yet determined the application or the potential impact of the Standard.

AASB 2014-1 - Amendments to Australian Accounting Standards

Operative for reporting periods beginning on/after 1 January 2018

Part E of this Standard makes amendments to AASB 9 and consequential amendments to other Standards. It has not yet been assessed by the Commission to determine the application or potential impact of the Standard.

AASB 2014-3 Amendments to Australian Accounting Standards - Accounting for Acquisitions of Interests in Joint Operations [AASB 1 & 11]

Operative for reporting periods beginning on/after 1 January 2016

The Commission establishes Joint Operations in pursuit of its objectives and does not routinely acquire interests in Joint Operations. Therefore, there is no financial impact on application of the Standard.

AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation [AASB 116 & 138]

Operative for reporting periods beginning on/after 1 January 2016

The adoption of this Standard has no financial impact for the Commission as depreciation and amortisation is not determined by reference to revenue generation, but by reference to consumption of future economic benefits.

AASB 2014-5 - Amendments to Australian Accounting Standards arising from AASB 15

Operative for reporting periods beginning on/after 1 January 2018

This Standard gives effect to the consequential amendments to other Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 15. The mandatory application date of this Standard has been amended by AASB 2015-8 to 1 January 2018. The Commission has not yet determined the application or the potential impact of the Standard.

AASB 2014-7 - Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)

Operative for reporting periods beginning on/after 1 January 2018

This Standard gives effect to the consequential amendments to Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 9 (December 2014). The Commission has not yet determined the application or the potential impact of the Standard.

AASB 2014-9 - Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements [AASB 1, 127 & 128]

Operative for reporting periods beginning on/after 1 January 2016

This Standard amends AASB 127, and consequentially amends AASB 1 and AASB 128, to allow entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their separate financial statements. The Commission has not yet determined the application or the potential impact of the Standard.

AASB 2014-10 - Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture [AASB 10 & 128]

Operative for reporting periods beginning on/after 1 January 2016

This Standard amends AASB 10 and AASB 128 to address an inconsistency between the requirements in AASB 10 and those in AASB 128 (August 2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture.

The Commission has not yet determined the application or the potential impact of the Standard.

AASB 2015-1 - Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012–2014 Cycle [AASB 1, 2, 3, 5, 7, 11, 110, 119, 121, 133, 134, 137 & 140]

Operative for reporting periods beginning on/after 1 January 2016

These amendments arise from the issuance of International Financial Reporting Standard Annual Improvements to IFRSs 2012–2014 Cycle in September 2014, and editorial corrections. The Commission has determined that the application of the Standard has no financial impact.

AASB 2015-2 - Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, 101, 134 & 1049]

Operative for reporting periods beginning on/after 1 January 2016

This Standard amends AASB 101 to provide clarification regarding the disclosure requirements in AASB 101. Specifically, the Standard proposes narrow-focus amendments to address some of the concerns expressed about existing presentation and disclosure requirements and to ensure entities are able to use judgement when applying a Standard in determining what information to disclose in their financial statements. There is no financial impact.

AASB 2015-6 - Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities [AASB 10, 124 & 1049

Operative for reporting periods beginning on/after 1 July 2016

The amendments extend the scope of AASB 124 to include application by not-for- profit public sector entities. Implementation guidance is included to assist application of the Standard by not-for-profit public sector entities. There is no financial impact.

AASB 2015-8 - Amendments to Australian Accounting Standards – Effective Date of AASB 15

Operative for reporting periods beginning on/after 1 January 2017

This Standard amends the mandatory effective date (application date) of AASB 15 Revenue from Contracts with Customers so that AASB 15 is required to be applied for annual reporting periods beginning on or after 1 January 2018 instead of 1 January 2017. The Commission has not yet determined the application or the potential impact of AASB 15.

AASB 2015-10 - Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 & 128

Operative for reporting periods beginning on/after 1 January 2016

This Standard defers the mandatory effective date (application date) of amendments to AASB 10 & 128 that were originally made in AASB 2014-10 so that the amendments are required to be applied for annual reporting periods beginning on or after 1 January 2018 instead of 1 January 2016. The Commission has not yet determined the application or the potential impact of AASB 2014-10.

AASB 2016-2 - Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

Operative for reporting periods beginning on/after 1 January 2017

This Standard amends AASB 107 Statement of Cash Flows (August 2015) to require disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. There is no financial impact.

AASB 2016-3 - Amendments to Australian Accounting Standards – Clarifications to AASB 15

Operative for reporting periods beginning on/after 1 January 2018

This Standard clarifies identifying performance obligations, principal versus agent considerations, timing of recognising revenue from granting a licence, and provides further transitional provisions to AASB 15. The Commission has not yet determined the application or the potential impact.

AASB 2016-4 - Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities

This Standard clarifies that the recoverable amount of primarily non-cash-generating assets of not-for-profit entities, which are typically specialised in nature and held for continuing use of their service capacity, is expected to be materially the same as fair value determined under AASB 13 Fair Value Measurement. The Commission has not yet determined the application or the potential impact.

6. Employee benefits expense

  2016
$000
2015
$000

Wages and salaries(a)

16 113

16 965

Superannuation - defined contribution plans(b)

1 632

1 575

 

17 745

18 540

(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component, 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 11 'Other expenses'.

Employment on-costs liability is included at Note 23 'Provisions'.

7. Supplies and services

  2016
$000
2015
$000

Communications

27

29

Freight and mail services

8

8

Consultants and contractors

3 008

3 741

Consumables

349

328

Repair and maintenance

50

55

Travel

54

63

Insurance premiums

133

89

Licences, fees and registration

182

121

Operating lease, rental and hire cost

145

119

Non-staff training initiatives

380

-

Other

133

171

 

4 469

4 724

8. Depreciation and amortisation expense

  2016
$000
2015
$000

Depreciation

   

Leasehold improvement

18

17

Computer hardware

2

1

Furniture and fittings

1

-

Office equipment

33

27

Total depreciation

54

45

Amortisation

Computer Software

63

77

Licences

87

103

Total amortisation

150

180

Total depreciation and amortisation

204

225

9. Accommodation expenses

  2016
$000
2015
$000

Lease rentals

2 181

2 082

 

2 181

2 082

10. Grants and subsidies

  2016
$000
2015
$000

Government agency grants

516

475

Scholarships

39

35

External grants

477

2

 

1 032

512

11. Other expenses

  2016
$000
2015
$000

Employment on-costs

2

(4)

Professional services(a)

72

56

Doubtful debts expense

4

35

 

78

87

(a) Includes Audit fees, see also Note 30 'Remuneration of auditor'.

12. User charges and fees

  2016
$000
2015
$000

Fees

155

361

 

155

361

13. Other Revenue

  2016
$000
2015
$000

Recoups

22

39

Contributions by senior officers to the Government Vehicle Scheme

23

21

Australian Apprenticeships Incentive Program

178

89

Other miscellaneous revenue

4

29

 

227

178

14. Income from State Government

  2016
$000
2015
$000

Appropriation received during the period

Service appropriation(a)

27 478

25 380

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

Department of the Premier and Cabinet - corporate support services

485

916

Department of Finance - accommodation lease services

453

465

Department of the Attorney General - legal services.

155

152

 

1 093

1 533

Royalties for Regions Fund

Regional Community Services Account(b)

2

850

Regional Workers Incentive(c)

24

57

 

26

907

 

28 597

27 820

(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 Western Australian regional areas.

(c) The 2015 actual has been recast to match current year's reporting parameters.

15. Restricted cash and cash equivalents

  2016
$000
2015
$000

Current

Royalties for Regions Fund(a)

-

149

Accrued salaries suspense account(b)

-

655

 

-

804

(a) Unspent funds are committed to projects and programs in Western Australian 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.

16. Receivables

  2016
$000
2015
$000

Current

Receivables

628

289

Allowance for impairment of receivables

(17)

(35)

GST receivable

177

131

 

788

385

Loans and advances

   

Other debtors

24

57

 

24

57

Total current

812

442

Reconciliation of changes in the allowance for impairment of receivables

Balance at start of period

35

-

Doubtful debts expense

4

35

Amounts written off during the period

(19)

-

Amounts recovered during the period

(1)

-

Impairment losses reversed during the period

(2)

-

Balance at end of period

17

35

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

17. Amounts receivable for services (Holding Account)

  2016
$000
2015
$000

Current

173

173

Non-current

6 813

6 627

 

6 986

6 800

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.

18. Other assets

  2016
$000
2015
$000

Current

Prepayments

422

986

Non-Current

Prepayments

104

-

 

526

986

19. Property, plant and equipment

  2016
$000
2015
$000

Computer hardware

At cost

29

29

Accumulated depreciation

(25)

(23)

 

4

6

Office equipment

At cost

171

171

Accumulated depreciation

(98)

(65)

 

73

106

Leasehold improvement

At cost

158

129

Accumulated depreciation

(49)

(31)

 

109

98

Furniture and fittings

At cost

39

-

Accumulated depreciation

(1)

-

 

38

-

Total property, plant and equipment

224

210

Reconciliation - Computer hardware

Carrying amount at start of period

6

-

Additions

-

7

Depreciation

(2)

(1)

Carrying amount at end of period

4

6

Reconciliation - Office equipment

Carrying amount at start of period

106

75

Additions

-

58

Depreciation

(33)

(27)

Carrying amount at end of period

73

106

Reconciliation - Leasehold improvements

Carrying amount at start of period

98

115

Additions

29

-

Depreciation

(18)

(17)

Carrying amount at end of period

109

98

Reconciliation - Furniture and fittings

Carrying amount at start of period

-

-

Additions

39

-

Depreciation

(1)

-

Carrying amount at end of period

38

-

Reconciliation - Total

Carrying amount at start of period

210

190

Additions

68

65

Depreciation

(54)

(45)

 

224

210

20. Intangible assets

  2016
$000
2015
$000

Licences

At cost

310

310

Accumulated amortisation

(310)

(223)

Carrying amount at end of period

-

87

Computer software

At cost

230

248

Accumulated amortisation

(230)

(167)

Carrying amount at end of period

-

81

Total intangible assets

-

168

Reconciliation - Licences

Carrying amount at start of period

87

190

Amortisation expense

(87)

(103)

Carrying amount at end of period

-

87

Reconciliation - Computer software

Carrying amount at start of period

81

158

Additions

-

-

Other disposals

(18)

-

Amortisation expense

(63)

(77)

Carrying amount at end of period

-

81

Reconciliation - Total

Carrying amount at start of period

168

348

Other disposals

(18)

-

Amortisation expense

(150)

(180)

Carrying amount at end of period

-

168

21. Impairment of assets

There were no indications of impairment to property, plant and equipment and intangible assets as at 30 June 2016.

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

22. Payables

  2016
$000
2015
$000

Current

Payables

399

634

Accrued salaries

245

454

Accrued expenses

192

221

 

836

1 309

23. Provisions

  2016
$000
2015
$000

Current

Employee benefits provision

Annual leave including superannuation(a)

1 470

1 493

Long service leave including superannuation(b)

2 941

2 956

 

4 411

4 449

Other provisions

Employment on-costs(c)

21

20

 

4 432

4 469

Non-current

Employee benefits provision

Long service leave including superannuation(b)

911

924

 

911

924

Other provisions

Employment on-costs(c)

5

4

 

916

928

(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.

1 127

1 198

More than 12 months after the end of the reporting period.

343

295

 

1 470

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.

1 523

1 508

More than 12 months after the end of the reporting period.

2 329

2 371

 

3 852

3 879

(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 11 'Other expenses'.

Movement in other provisions

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

  2016
$000
2015
$000

Employment on-cost provision

Carrying amount at start of period

24

28

Additional provisions recognised

2

(4)

Payments/other sacrifices of economic benefits

-

-

Carrying amount at end of period

26

24

24. Other liabilities

  2016
$000
2015
$000

Current

Income received in advance

73

66

 

73

66

25. 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.

  2016
$000
2015
$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

(100)

(3 222)

Total distributions to owners

(100)

(3 222)

Transfer of debit balance to Accumulated Surplus

100

3 195

Balance at end of period

-

-

Accumulated surplus/(deficit)

Balance at the start of period

9 312

10 318

Transfer of debit balance to Accumulated Surplus

(100)

(3 195)

Result for the period

3 270

2 189

Balance at end of period

12 482

9 312

Total Equity at the end of the period

12 482

9 312

26. Notes to the Statement of Cash Flows

  2016
$000
2015
$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

10 191

6 674

Restricted cash and cash equivalents (note 15)

-

804

 

10 191

7 478

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

Net cost of services(a)

(25 327)

(25 631)

Non-cash items

Depreciation and amortisation expense (note 8)

204

225

Services received free of charge (note 14)

1 093

1 533

(Increase)/decrease in assets

Current receivables(b)

(324)

230

Other current assets

564

(377)

Other non-current assets

(104)

-

Increase/(decrease) in liabilities

Current payables(b)

(448)

16

Current provisions

(37)

495

Non-current provisions

(12)

(130)

Net GST receipts/(payments)(c)

17

41

Change in GST in receivables/payables(d)

(63)

(35)

Net cash provided by/(used in) operating activities

(24 437)

(23 633)

     

(a) The 2015 actual has been recast to match current year’s reporting parameters.

(b) Note that the Australian Taxation Office 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.

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

(d) This reverses out the GST in the receivables and payables.

27. Services provided free of charge

During the period the following services were provided to other agencies free of charge for functions outside the normal operations of the Commission.

  2016
$000
2015
$000

Equal Opportunity Commission

Executive Support

128

-

Salaries and Allowances Tribunal

Corporate Services

15

14

 

143

14

28. Commitments

The commitments below are inclusive of GST.

  2016
$000
2015
$000

Non-cancellable operating lease commitments

Commitments for minimum lease payments are payable as follows.

   

Within 1 year

2 649

2 704

Later than 1 year and not later than 5 years

2 696

5 531

 

5 345

8 235

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

 

-

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

1 954

2 098

Later than 1 year and not later than 5 years

510

1 807

 

2 464

3 905

29. 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 various remuneration bands are as follows.

  2016
$000
2015
$000

30 001 - 40 000

1

-

60 001 - 70 000

1

1

70 001 - 80 000

1

2

100 001 - 110 000

-

1

110 001 - 120 000

1

-

130 001 - 140 000

1

1

150 001 - 160 000

-

2

190 001 - 200 000

1

-

200 001 - 210 000

1

1

210 001 - 220 000

1

-

220 001 - 230 000

1

1

250 001 - 260 000

1

-

280 001 - 290 000

-

2

470 001 - 480 000

1

-

520 001 - 530 000

-

1

Base remuneration and superannuation

1 955

2 184

Annual Leave and long service leave accruals

(35)

26

Other benefits

60

78

Total remuneration of senior officers

1 980

2 288

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.

30. Remuneration of auditor

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

  2016
$000
2015
$000

Auditing the accounts, financial statements and performance indicators

57

56

31. Explanatory statement

All variances between estimates (original budget) and actual results for 2016, and between the actual results for 2016 and 2015 are shown below. Narratives are provided for key variations selected from observed major variances, which are generally greater than:

  • 5% and $523 000 for the Statements of Comprehensive Income and Cash Flows
  • 5% and $322 000 for the Statement of Financial Position.
  Variance
Note
Original Budget 2016
$000
Actual 2016
$000
Actual 2015
$000
Variance between estimate and actual
$000
Variance between actual results for 2016 and 2015
$000

Statement of Comprehensive Income (Controlled Operations)

Employee benefits expense

1, A

21 442

17 745

18 540

(3 697)

(795)

Supplies and services

2

5 058

4 469

4 724

(589)

(255)

Depreciation and amortisation expense

 

359

204

225

(155)

(21)

Accommodation expenses

 

2 389

2 181

2 082

(208)

99

Grants and subsidies

 

589

1 032

512

443

520

Other expenses

 

234

78

87

(156)

(9)

Total cost of services

 

30 071

25 709

26 170

(4 362)

(461)

Income

Revenue

User charges and fees

 

337

155

361

(182)

(206)

Other revenue(a)

 

108

227

178

119

49

Total revenue

 

445

382

539

(63)

(157)

Total income other than income from State Government

 

445

382

539

(63)

(157)

NET COST OF SERVICES

 

29 626

25 327

25 631

(4 299)

(304)

INCOME FROM STATE GOVERNMENT

Service appropriation

B

27 478

27 478

25 380

-

2 098

Services received free of charge

 

1 358

1 093

1 533

(265)

(440)

Royalties for Regions Fund(a)

3, C

669

26

907

(643)

(881)

Total income from State Government

 

29 505

28 597

27 820

(908)

777

SURPLUS/(DEFICIT) FOR THE PERIOD

 

(121)

3 270

2 189

3 391

1 081

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

 

(121)

3 270

2 189

3 391

1 081

(a) The 2015 actual has been recast to match current year's reporting parameters.

  Variance
Note
Original Budget 2016
$000
Actual 2016
$000
Actual 2015
$000
Variance between estimate and actual
$000
Variance between actual results for 2016 and 2015
$000

Statement of Financial Position (Controlled Operations)

ASSETS

Current assets

Cash and cash equivalents

4, D

4 518

10 191

6 674

5 673

3 517

Restricted cash and cash equivalents

E

-

-

804

-

(804)

Receivables

F

698

812

442

114

370

Amounts receivable for services

 

173

173

173

-

-

Other current assets

G

630

422

986

(208)

(564)

Total current assets

 

6 019

11 598

9 079

5 579

2 519

Non-current assets

Amounts receivable for services

 

6 813

6 813

6 627

-

186

Property, plant and equipment

 

198

224

210

26

14

Intangible assets

 

78

-

168

(78)

(168)

Other non-current assets

 

81

104

-

23

104

Total non-current assets

 

7 170

7 141

6 350

( 29)

136

TOTAL ASSETS

 

13 189

18 739

15 429

5 550

2 655

LIABILITIES

Current liabilities

Payables

H

1 092

836

1 309

(256)

(473)

Provisions

5

3 885

4 432

4 469

547

(37)

Other current liabilities

 

139

73

66

(66)

7

Total current liabilities

 

5 116

5 341

5 844

225

(503)

Non-current liabilities

Provisions

 

1 117

916

928

(201)

(12)

Other non-current liabilities

 

6

-

-

( 6)

-

Total non-current liabilities

 

1 123

916

928

(207)

(12)

TOTAL LIABILITIES

 

6 239

6 257

6 772

18

(515)

NET ASSETS

 

6 950

12 482

8 657

5 532

3 170

EQUITY

Contributed equity

   

-

-

-

-

Accumulated surplus/(deficit)

6, I

6 950

12 482

9 312

5 532

3 170

TOTAL EQUITY

 

6 950

12 482

9 312

5 532

3 170

  Variance
Note
Original Budget 2016
$000
Actual 2016
$000
Actual 2015
$000
Variance between estimate and actual
$000
Variance between actual results for 2016 and 2015
$000

Statement of Cash Flows (Controlled Operations)

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation

J

27 119

27 119

25 049

-

2 070

Holding account drawdowns

 

173

173

173

-

-

Non-retained revenue distributed to owner

K

-

(100)

(3 222)

(100)

3 122

Royalties for Regions Fund(a)

7, L

669

26

934

(643)

(908)

Receipts paid into the Consolidated Account

 

-

-

-

-

-

Net cash provided by State Government

 

27 961

27 218

22 934

(743)

4 284

Utilised as follows

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee benefits

8

(22 019)

(17 956)

(18 106)

4 063

150

Supplies and services

 

(3 790)

(3 709)

(3 687)

81

(22)

Accommodation

 

(2 389)

(2 181)

(2 082)

208

(99)

Grants and subsidies

 

(589)

(926)

(512)

(337)

(414)

GST payments on purchases

 

(498)

(595)

(672)

(97)

77

GST payments to taxation authority

 

(87)

(45)

(92)

42

47

Receipts

User charges and fees

 

337

167

540

(170)

(373)

Commonwealth grants and contributions

 

-

-

-

-

-

GST receipts on sales

 

87

34

104

(53)

(70)

GST receipts from taxation authority

 

506

560

696

54

(136)

Other receipts(a)

 

108

214

178

106

36

Net cash provided by/(used in) operating activities

 

(28 334)

(24 437)

(23 633)

3 897

(804)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments

Purchase of non-current assets

 

(173)

(68)

(65)

105

(3)

Net cash provided by/(used in) investing activities

 

(173)

(68)

(65)

105

(3)

Net increase/(decrease) in cash and cash equivalents

 

(546)

2 713

(764)

3 259

3 477

Cash and cash equivalents at the beginning of period

 

5 064

7 478

8 242

2 414

(764)

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

 

4 518

10 191

7 478

5 673

2 713

(a)The 2015 actual has been recast to match current year's reporting parameters.

Major Variance Narratives (Controlled Operations)

Variances between estimate and actual
  1. Employee benefits expense underspent by $3.697 million (17 per cent) mainly due to vacancies not being filled during a functional review and realignment of the Commission's operations and structure in the first half of 2015/16, a decline in the number of Aboriginal trainees (down from expected 48 FTEs to 30 FTEs as at 30 June 2016) and a whole of sector recruitment freeze during the second half of 2015/16.
  2. Supplies and services underspent by $589 000 (12 per cent) mainly due to lower resources received free of charge from the Department of the Premier and Cabinet of $431,000 and an underspend of $100 000 on IT Development and Implementation.
  3. Royalties for Regions Fund was lower than estimated by $643 000 (96 per cent) mainly due to the completion of the Royalties for Regions projects and recurrent funding was revised and endorsed by Cabinet as part of the 2016/17 Budget process.
  4. Cash and cash equivalents were higher than estimate by $5.673 million (126 per cent) mainly due to an operating cash surplus of $3.260 million and changes in receivables and payables.
  5. Provisions (current) are higher than estimated by $547 000 (14 per cent) mainly due to delays in staff taking long service leave and a reduction in the discount rate from the actuarial assessment, in line with change in the bond yield.
  6. Accumulated surplus was higher than estimated by $5.777 million mainly due to an operating surplus of $3.515 million and changes in receivables and payables.
  7. Royalties for Regions Fund was lower than estimated by $643 000 (96 per cent) mainly due to the completion of the Royalties for Regions projects and recurrent funding was revised and endorsed by Cabinet as part of the 2016/17 Budget process.
  8. Employee benefits expense underspent by $4.063 million (18 per cent) mainly due to vacancies not being filled during a functional review and realignment of the Commission's operations and structure in the first half of 2015/16, a decline in the number of Aboriginal trainees (down from expected 48 FTEs to 30 FTEs as at 30 June 2016) and a whole of sector recruitment freeze during the second half of 2015/16.
Variances between actual results for 2016 and 2015
  1. Employee benefits expense decreased by $795 000 (4 per cent) mainly due to vacancies not being filled during a functional review and realignment of the Commission's operations and structure in the first half of 2015/16, a decline in the number of Aboriginal trainees (down from expected 48 FTEs to 30 FTEs as at 30 June 2016) and a whole of sector recruitment freeze during the second half of 2015/16.
  2. Service Appropriation increased by $2.098 million (8 per cent) mostly due to the transfer of responsibility for minor misconduct ($1.600 million) and Streamlined Budget Process of $480 000.
  3. Royalties for Regions Fund has decreased by $881 000 (97 per cent) due to the phased completion of the Royalties for Regions projects.
  4. Cash and cash equivalents increased by $3.517 million (53 per cent) mainly due to an operating cash surplus of $3.477 million.
  5. Restricted cash and cash equivalent decreased by $804 000 (100 per cent) mainly due to 27 pay periods ($655,000) and the return of unspent funds ($100 000) for the completed Royalties for Regions projects to the Department of Regional Development in 2015/16.
  6. Receivables increased by $370 000 (84 per cent) mainly due to increased income from the CEO/Classification review and recruitment recoup.
  7. Other assets (current) decreased by $564 000 (57 per cent) mainly due to lower prepaid expenses.
  8. Payables (current) decreased by $473 000 (36 per cent) mainly due to the accrual of eight days of salaries and wages in 2014/15.
  9. Accumulated surplus increased by $3.415 million (37 per cent) mainly due to an operating surplus of $3.515 million and changes in receivables and payables.
  10. Service Appropriation increased by $2.070 million (8 percent) mostly due to the transfer of responsibility for minor misconduct $1.600 million and Streamlined Budget Process of $480 000.
  11. Non-retained revenue distributed to owner decreased by $3.122 million (97 per cent) mainly due to the cash management saving measure in 2014/15 where $3.222 million was returned to the Consolidated Account and the return of unspent funds ($100 000) for the completed Royalties for Regions projects to the Department of Regional Development in 2015/16.
  12. Royalties for Regions Fund decreased by $908 000 (97 per cent) mainly due to the completion of the Royalties for Regions projects.

32. 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 32(c) 'Financial instruments disclosures' and note 16 '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 and 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 all cash and cash equivalents and restricted cash are non-interest bearing, and the Commission has no borrowings. As a result of not being exposed to interest rate risk, the Commission is not required to undertake an interest rate sensitivity analysis.

b) Categories of financial instruments

The carrying amounts for each of the various categories of financial assets and financial liabilities at the end of the reporting period are as follows.

  2016
$000
2015
$000

Financial assets

Cash and cash equivalents

10 191

6 674

Restricted cash and cash equivalents

-

804

Loans and receivables(a)

7 621

7 111

Financial liabilities

Payables

836

1 309

(a) The amount of receivables excludes GST recoverable from Australian Taxation Office (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.

32. Financial instruments continued

Ageing analysis of financial assets

  Carrying amount
$000
Not past due and not impaired
$000
Past due but not impaired Impaired financial assets
Up to 1 month
$000
1-3 months
$000
3 months to 1 year
$000
1-5 years
$000
More than 5 years
$000

2016

Cash and cash equivalents

10 191

10 191

-

-

-

-

-

-

Restricted cash and cash equivalents

-

-

-

-

-

-

-

-

Receivables(a)

635

502

83

22

28

-

-

17(b)

Amounts receivable for services

6 986

6 986

-

-

-

-

-

-

 

17 812

17 679

83

22

28

-

-

17

2015

Cash and cash equivalents

6 674

6 674

-

-

-

-

-

-

Restricted cash and cash equivalents

149

149

-

-

-

-

-

-

Receivables(a), (c)

311

235

14

23

6

33

-

35(b)

Amounts receivable for services

6 800

6 800

-

-

-

-

-

-

 

13 934

13 858

14

23

6

33

-

35

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

(b) Impairment provided for potential uncollectable debts.

(c) The 2015 actual has been recast to match current year's reporting parameters.

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
  Interest rate exposure Nominal amount
$000
Maturity dates
Weighted average effective interest rate % Carrying amount
$000
Fixed interest rate
$000
Variable interest rate
$000
Non-interest bearing
$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

2016

Financial Assets

Cash and cash equivalents

-

10 191

-

-

10 191

10 191

10 191

-

-

-

-

Restricted cash and cash equivalents

-

-

-

-

-

-

-

-

-

-

-

Receivables(a)

-

635

-

-

635

635

585

22

28

-

-

Amounts receivable for services

-

6 986

-

-

6 986

6 986

-

-

173

6 813

-

   

17 812

-

-

17 812

17 812

10 776

22

201

6 813

-

Financial Liabilities

Payables

-

836

-

-

836

836

836

-

-

-

-

   

836

-

-

836

836

836

-

-

-

-

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 Australian Taxation Office (statutory receivable).

33. Events occurring after the end of the reporting period

There were no events occuring after the end of the reporting period that impact on the financial statements.

34. 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 $1 077 000 for 2015/16 ($1 023 000 for 2014/15).

35. 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.

36. Supplementary financial information

Write-offs

During the financial year $23 205.59 (2014/15: nil) was written off the Commission's receivables relating to salary overpayments deemed unrecoverable under the authority of:

  2016
$000
2015
$000

The Accountable Authority.

23

0

 

23

0

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Key performance indicators

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Certification of key performance indicators for the year ended 30 June 2016

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 2016.

M C Wauchope
ACCOUNTABLE AUTHORITY

16 August 2016

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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 our agency-level Government-desired outcome of an efficient and effective public sector that operates with integrity.

The Commission's service delivery areas are:

  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.

The 2015/16 survey retained the set of 150 core clients, identified in the previous financial year, to complete the survey.

The Commission's core clients for 2015/16 captured a large scope of clients, comprised of:

  • 39 Departments created under section 35 of the PSM Act
  • 17 ministerial offices
  • 48 SES organisations specified in Schedule 2, Column 2, of the PSM Act
  • 46 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 2015/16 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 PID Act and under Part IX of the 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 74 per cent response rate to the survey, an improvement of 2 per cent on last year's response rate.

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

Key effectiveness indicator Target 2015/16 Actual 2015/16 Variance between target and actual Actual 2014/15 Actual 2013/14

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

85%

95.5%

10.5%(i)

97%

95%

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%

85.6%

0.6%

89%

90%

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%

83.8%

8.8%(i)

75%

84%

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%

72.1%

(2.9%)(ii)

69%

78%

(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 Commission 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.

(d) This indicator measures how the Commission 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.

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 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 efficiency indicator Target 2015/16 Actual 2015/16 Variance between target and actual Actual 2014/15 Actual 2013/14

Average cost per leadership development product, program or training hour

$87

$117

$30(1)

$109

$135

Average cost per workforce development program, product or training hour

$139

$117

($22)(2)

$118

$154

(1) The actual average cost for supporting authorities with leadership and development in 2015/16 is higher than budgeted mainly due to an increased focus on the delivery of executive leadership workshops, management and leadership essentials programs.

(2) The actual average cost for supporting authorities through workforce development and diversity programs in 2015/16 is lower than budgeted, mainly due to the Commission's continuous focus on the efficient delivery of development programs with reduced FTE levels and associated operating costs, and in line with the whole-of-sector recruitment freeze.

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 efficiency indicator Target 2015/16 Actual 2015/16 Variance between target and actual Actual 2014/15 Actual 2013/14

Average cost per hour of assistance and support provided

$93

$92

($1)

$93

$108

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

$80

$85(i)

$5

$120(i)

$105

(i) The actual average cost for assisting and supporting authorities to sustain standards of ethics and integrity in 2015/16 is lower than the average cost in 2014/15 mainly due to the Commission functioning at reduced associated operating costs attributed to an internal functional review and realignment of the Commission's operations and structure.

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 the Parliament and Ministers on compliance with the PSM Act, the CCM Act, the PID Act and Part IX of the EO Act.

Key efficiency indicator Target 2015/16 Actual 2015/16 Variance between target and actual Actual 2014/15 Actual 2013/14

Average cost per hour addressing legislative and policy development

$95

$91

($4)

$97

$109

Average cost per hour of performance and oversight activity

$93

$98

$5

$102

$99

Percentage of oversight actions completed within target timeframes

90%

93%

3%(a)

89%

91%

(a) The percentage of oversight actions completed within the targeted timeframes can be attributed to improvements in assessment processes, attention to timeliness in acquitting cases and structural changes to the oversight teams in conjunction with the transfer of the minor misconduct function from the CCC.

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Other legal requirements

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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.

Applications 2015/16 Expenditure

Advertising agencies

• Adcorp

$152 590

• Seek

$255

• Innovatek Limited

$300

Market research organisations

Nil

Polling organisations

Nil

Direct mail organisations

Nil

Media advertising organisations

• Radio advertising: Aboriginal Traineeship Program

$5272

Total expenditure

$158 417

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Record keeping plan

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

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Occupational health and safety

The Commission is committed to ensuring the occupational health, safety and welfare of its employees, contractors and visitors by maintaining a safe working environment. Creating this environment requires the commitment of our corporate executive, Occupational Safety and Health (OSH) committee and all employees to achieving a standard of excellence in OSH and injury management.

The OSH committee oversees a range of safety and health management practices, including education, training, reporting, discussion and accountability. The OSH committee comprises elected representatives from across the Commission who are available to meet quarterly, or as required, to discuss safety and health matters.

In 2015/16 the Commission promoted employee health and wellbeing by providing at-work influenza vaccinations, corporate health fund discounts, ergonomic assessments, superannuation and retirement planning sessions and by participating in community events. Employees also had the opportunity to undertake mental health awareness training and are entitled to an eyesight screening and testing subsidy every two years. The Commission continues to provide employees and their family members access to an Employee Assistance Program.

The Commission takes a proactive approach to injury management. We have established workers' compensation, injury management and return to work policies, and developed 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. First aid officers are located throughout the Commission to ensure that immediate assistance is available when required.

Over the last 12 months the OSH committee undertook regular workplace inspections and provided quarterly OSH reports to the corporate executive to ensure continuous improvement.

The Commission has continued to ensure its occupational safety and health management systems meet WorkSafe's criteria as set out in the WorkSafe plan.

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', that is:

  • public sector leadership
  • assistance and support
  • oversight and reporting.

Measures

Actual results for 2015/16, as provided in the table on page 129, are based on calculations of 129.59 FTE and two lost time injuries. These injuries resulted in lost time being less than 60 days and the employees returned to work within 13 weeks.

Target 2015/16 2014/15 2013/14 2012/13 2011/12 Target Comment

Number of fatalities

0

0

0

0

0

0

Achieved

Percentage of lost time injury/disease severity rate

1.5%

0.80%

0.76%

1.49%

0.69%

0 or 10% improvement on the previous three years

The two lost time injuries for the financial year increased the incidence rate slightly above target.

Percentage of lost time injury/disease severity rate

0

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

100% within 13 weeks

 

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

 

100% within 26 weeks

100% within 26 weeks

100% within 26 weeks

100% within 26 weeks

100% within 26 weeks

 

Achieved

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

89%

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 both available to staff on the intranet. Our people, our future - Workforce and diversity plan 2015-17 reflects our commitment to providing a fair and equitable working environment. The plan is reviewed regularly to ensure that the strategies and indicators continue to reflect the requirements of the Commission.

The principles of the policy framework form part of the Commission's business practices and 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 Commission complies with the Public Sector Standards in Human Resource Management and the Western Australian Public Sector Code of Ethics. Applications made for breach of standards review and the corresponding outcomes for the reporting period are provided in the table below.

Applications for breach of standard and corresponding outcomes for 2015/16

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, and the public sector Code of Ethics and 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 hosting regular information sharing sessions for all employees.

Human resource officers provide advice, support and guidance to managers and employees in relation to the Public Sector Standards in Human Resource Management. 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 assists Freedom of Information (FOI) applicants to access available documents at the lowest possible cost. The table below provides a summary of the FOI applications finalised during 2015/16. A more comprehensive breakdown of our statistics is provided in the annual report of the Office of the Information Commissioner.

Applications 2015/16 2014/15 2013/14 2012/13 2011/12

Received during the year

6

9*

4

10

24

Finalised during the year

6

8

4

9

24

Average time to process (days)

45

42

40

28

29

* One application incomplete.

Applications 2015/16 2014/15 2013/14 2012/13 2011/12

Full access

0

0

0

0

0

Edited access

4

8

3

4

15

Deferred access

0

0

0

0

0

Section 26 access

0

0

0

1

2

Section 28 access

0

0

0

0

0

Accessed refused

0

0

0

3

3

Total decisions

4

8

3

8

20

Transferred to other agencies

1

0

1

0

0

Withdrawn

1

0

0

1

4

Total applications

6

8

4

9

24

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Salaries and Allowances Tribunal

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

The Treasurer has determined that 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 PSM Act SAT's statutory operational independence is recognised. This independence is also recognised by SAT's separate parliamentary budget appropriation and resource agreement with the Premier and Treasurer.

Under these financial arrangements the Commission is obliged to provide 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 SAT's affiliated body status, this report appears in the annual report of the Commission.

 


Page last updated 19 September 2016