be prepared on a basis consistent with the agency’s financial statements; and provide readers with general information about the agency and its activities; operational highlights for the reporting period; future initiatives; and other relevant information not included in the financial statements. Information and analysis in the report of operations should be: balanced and objective; free from bias and complete; and even-handed (i.e. deal with both the positive and negative aspects of operations, financial condition, risks and opportunities). Report of Operations - Structure The MRO adopts the general structure for its report of operations set out in the table on the following page. However, the commentary in the MRO makes it clear that the contents and structure of a department’s or a public body’s report of operations will vary, depending on the nature of activities carried out by that department or public body. Your agency may choose where in the Report of Operations it reports disclosures, provided that it complies with all relevant reporting directions and legislation. However while there is some flexibility in the exact order in which disclosures can be reported in your agency’s report of operations, it is strongly recommended that you do not deviate much from the order of the disclosures in the MRO, and the headings for disclosures used in the MRO or this guide. Section of MRO Title of a disclosure – for a Department Main source of Title of a disclosure – for a DELWP Agency (if different to a Department) See in guide Accountable Officer’s declaration Accountable Officer’s declaration SD 4.2(j) Responsible Body’s declaration 3.1.1 Section 1: Year in Review Vision, Mission, Values MRO same - Secretary’s report None Chairman’s Report 8.1 Manner of establishment & responsible Minister/s FRD 22G same 8.3 Nature & range of services provided FRD 22G same 8.4 Objectives, functions, powers & duties FRD 22G same 8.5 Structural changes to the Department during 2015-16 SD 4.2(k) & FRD 8C (depts.) N/A 8.7 PERFORMANCE REPORTING – NON-FINANCIAL Departmental objectives, indicators and outputs FRD 22G, FRD 8C (depts.) & N/A N/A
MRO Reporting progress towards achieving departmental objectives in the Report of operations FRD 8C (depts.) N/A N/A Performance against output performance measures FRD 22G & MRO (& FRD 27C – for water corps) Performance against objectives (incl. Performance against key performance indicators (non-financial)) 8.6 Key Initiatives & Projects FRD 22G Key Initiatives & Projects 6.4 & 8.7 Discontinued operation SD 4.2(k) / FRD 8C (depts.) Structural changes to [Agency name] in affecting performance reporting 8.7 PERFORMANCE REPORTING - FINANCIAL Budget Portfolio Outcomes SD 4.2(l) and (m), N/A N/A Five year financial summary FRD 22G same 8.9 Current year financial review FRD 22G, MRO same 8.9 n/a FRD 27C – (for water corps) & FRD 22G Performance against key performance indicators (financial) Significant changes in financial position FRD 22G same 8.10 Significant changes or factors affecting performance FRD 22G same 8.11 Capital Projects [updated] MRO same 8.12 Disclosure of grants and transfer payments MRO same 8.13 Subsequent Events FRD 22G same 8.14 Section 2: Governance & Organisational Organisational structure & corporate governance arrangements Organisational chart FRD 22G same 9.1 & 9.2
Structure Senior Executives/ officers Governing board Audit committee membership and roles FRD 22G, SD 2.2(f)& (g) same 9.3, 3.4 Occupational Health & Safety FRD 22G & MRO same 9.5 Section 3: Workforce Data Public Administration values and employment principles FRD 22G same 10.1 Comparative Workforce Data FRD 22G FRD 29A same 10.2 Workforce Inclusion Policy FRD 22G same 10.3 Executive Officer data [revised] FRD 15C (depts) same 6.4 & 10.4 Section 4: Other disclosures Implementation of the Victorian Industry Participation Policy (VIPP) FRD 25B same 11.1 Consultancy expenditure FRD 22G same 11.2 Disclosure of major contracts FRD 12A same 11.3 Government advertising expenditure [revised] FRD 22G same 6.4 & 11.4 Information and Communication Technology expenditure [New] FRD 22G same 6.4 & 11.5 Freedom of Information FRD 22G same 11.6 Compliance with Building Act 1993 FRD 22G same 11.7 National Competition Policy FRD 22G same 11.8 Compliance with the Protected Disclosure Act 2013 FRD 22G, MRO same 11.9 Compliance with Carers Recognition Act 2012 MRO N/A (only applicable to departments) N/A Compliance with Technology Act 1991 Act*, MRO Compliance with [Establishing Act/ similar] 11.10 Office-based environmental impacts FRD 24C same 11.11
Additional Departmental information available on request FRD 22G Statement of availability of other information 11.13 Attestation for compliance with SD 4.5.5 Attestation for compliance with SD 4.5.5 [] SD 4.5.5 same 3.2, Chapter 5. Compliance with DataVic Access Policy MRO same 11.12 Financial Statements The MFS adopts the structure set out in the table below. Section of MFS Requirement See in guide Declaration (by accountable officer, CFAO and a member of the responsible body). SD 4.2(c) 3.1.2 Auditor-General’s report Audit Act 1994 12.3 Financial Statements Comprehensive operating statement (Referred to as an ‘Income Statement’ in the SDs)) Balance Sheet Statement of changes in equity (Referred to as a ‘Statement of recognised income and expense’ in the SDs) Cash Flow Statement Notes to the financial statements Including: Note 40 Responsible Persons Note 41 Remuneration of executives and payments to other personnel (i.e. contractors with significant management responsibilities) Note 43 Subsequent Events SD 4.2(b) See also: SD 4.2 (a), (d), (e), (f) 3.1.2 Appendices For ease of understanding and clarity, it is sometimes more appropriate to include detailed information in an appendix. Where this is done, the report of operations must still include a summary of the information, together with a cross-reference to the applicable appendices. The Appendices must also include an agency’s Disclosure Index (see chapter 7 of this guide).
Transitional arrangements from 2003 SDs to 2016 SDs The following table summarises the applicable Directions and requirements for internal and public attestation, for the 2015-16, 2016-17 and 2017-18 compliance years: 2015-16 compliance year 2016-17 compliance year 2017-18 compliance year Directions 2003 All Directions applicable n/a n/a Directions 2016 n/a All Directions applicable, subject to transitional arrangements under 2016 Direction 1.4. All Directions applicable, subject to transitional arrangements under 2016 Direction 1.4. Compliance reporting/ Internal attestation 2005 Financial Management Compliance Framework Compliance reporting as required under 2016 Instruction 5.1, including trial attestation. Compliance reporting as required under 2016 Instruction 5.1. Public attestation in Annual Report 2003 Direction 4.5.5 Risk management framework and processes 2003 Direction 4.5.5 Risk management framework and processes Attestation in relation to all applicable Directions and Instructions under 2016 Direction 5.1.4. ! Standing Direction 3.4.8 - Commission on employee payroll deductions SD 3.4.8 was updated in 2015, and applies for 2015-16 reporting period. As part of the Standing Direction 3.4.8- Commission on employee payroll deductions, the health insurance contributions rate is now annually indexed by the 'annual rate' set by the Treasurer under the Monetary Units Act 2004, which is set at 2.75 per cent for the 2015-16 financial year. As a result, the indexed rate of commission on health contributions for is at $11.80 per contributor, per annum ($11.50 in 2015-16).
FRD 108A only applies to entities that are listed in Appendix A as being ‘For Profit’ entities. This list includes: Melbourne Water Corporation, City West Water Corporation, Yarra Valley Water Corporation and South East Water Corporation. FRD 114A applies to all public bodies, apart from public financial corporations (PFCs). FRD116 applies to PFCs. FRD 116 applies to all entities classified as public financial corporations (PFC’s) in the State of Victoria Annual Financial Report (AFR). Voluntary FRD 21B applies to all "public bodies" (& departments), as defined in section 3 of the Financial Management Act 2004. A public sector entity classified as a public financial corporation (PFC) or public non-financial corporation (PNFC) within the AFR that does not meet the definition of a "public body" is encouraged to comply. FRDs affecting the Report of Operations FRD Depts Public bodies See in this guide ( ) 6.4 (a) ( ) 6.4 & 7 (b) (FRD 12B ) (c) 11.3 (d) ( ) 6.4 & 10.4 ( ) 6.4, 8, 9, 10 & 11 Guidance notes for FRD 22G: (on the definition of consultancies) (additional information available on request). (e) 11.11 Guidance notes for FRD 24C: 11.1 (f) 8.6 (g) 6.4 & 10.2. Guidance note for FRD 29A: () 6.4 & 12 Notes: FRD 10A also applies to matters contained in the Financial Statements. FRD 12A also applies to the Financial Statements. FRD 12A applies to departments. However DELWP agencies are encouraged to comply, to the extent applicable. The Model Report states that “The policy requires that all other public sector entities document their policies on disclosure, having regard to the Government’s policy on openness and probity”. Refer to the MRO for details regarding the relevant Government policy.