About DTF Our purpose We strive for excellence in financial and economic management to improve the lives of all Victorians. We value our people and motivate them to lead, influence, collaborate and innovate. DTF’s role and objectives The Department provides economic, financial and resource management advice to help the Victorian Government deliver its policies, and supports the Treasurer and the Minister for Finance. This includes: supporting the Government in responsible budget and financial management; delivering innovative and timely policy advice, and influencing government decisions on a of economic, social and environmental issues; providing strategic leadership across the public sector on economic and financial sector reform; assisting the Government with implementing major infrastructure projects and frameworks; and contributing to decisions made by the Government on major contractual arrangements across the State. DTF’s objectives are to: support financial management of Victoria’s fiscal objectives; guide Government actions to increase Victoria’s productivity and competitiveness; drive improvement in public sector asset management and the delivery of infrastructure; deliver efficient of government common services to the Victorian public sector; and ensure DTF and its people have the capability to Government. We proactively look to improve our services, and the way in which they are delivered to ensure that we are: fiscally responsible; market focused; and reform oriented. Our Ministers Treasurer – Tim Pallas MP Tim Pallas MP commenced as Treasurer of Victoria in December 2014. The Treasurer is the minister in charge of government revenue and expenditure. His primary responsibilities are: preparing and delivering the annual state budget; promoting economic growth across the State of Victoria; promoting and encouraging investment opportunities in Victoria from interstate and abroad; developing the fiscal objectives and strategy for the State of Victoria; developing the economic policy of the Government; driving wages policy, which operates in conjunction with the industrial relations policies as developed and administered by the Industrial Relations Minister; overseeing the planning and delivery of major infrastructure projects undertaken across government; administering the Marketled Proposals Guideline, which provides the State with the means to access new and innovative ideas from the private sector; revenue policy and collection for the of Victoria, including stamp duty, payroll tax and land tax; borrowing, investment and financial arrangements to protect and manage the State’s financial interests; and providing investment and fund management services to the State and its statutory authorities. Minister for Finance – Robin Scott MP Robin Scott MP commenced as Minister for Finance in December 2014. The Minister’s primary responsibilities are: WorkSafe Victoria, the statutory body that manages the insurance scheme for workplace
Sound financial management of Victoria’s fiscal resources The Department of Treasury and Finance has a central role in shaping Victoria’s economic, social and fiscal policy to ensure that Government financial policies are fiscally sound. Budget and Financial Policy Advice This output contributes to the Department’s objective of providing sound financial management of Victoria’s fiscal resources through the provision of strategic, timely and comprehensive analysis and advice to Ministers, Cabinet and Cabinet Sub Committees on: resource allocation; and departmental financial, output and asset delivery performance to support government in making decisions on the allocation of the State’s fiscal resources. This output assists government to deliver responsible budgets and operating surpluses which contributes to sound financial management. The output also provides management of Cost Control and Efficiency Reviews. Performance measures Unit of measure 201516 actual 201516 target Performance variation (%) Result Quantity Cost Control and Efficiency Reviews (Funding Reviews) delivered The 201516 outcome is than the 201516 target due to the larger scale of reviews commenced. number 1 3 66.7 Quality Accuracy of the revised estimate of State budget expenditure per cent 0.5 ≤5.0 0 Maintain ISO 9001 (Quality Management Systems) Certification per cent 100 100 0 Timeliness Delivery of Cost Control and Efficiency Review reports within agreed timeframes per cent 100 100 0 Delivery of advice to Government on portfolio performance within agreed timeframes per cent 100 100 0 Cost Total output cost The 201516 outcome is lower than the 201516 target due to an internal restructure and the transfer of functions and employee expenses from this output. $ million 8.7 11.7 25.6 Financial Reporting This output contributes to the Department’s objective of providing sound financial management of Victoria’s fiscal resources by maintaining the integrity of systems and information for financial planning, management, monitoring and reporting of the State of Victoria through: publication of the State budget and budget related documents; reporting, monitoring and publication of financial and nonfinancial performance in the Victorian public sector; management of the Public Account operations; and best practice financial reporting framework, and whole of state management information systems, supporting financial reporting across the Victorian public sector.
Performance measures Unit of measure 201516 actual 201516 target Performance variation (%) Result Quality AuditorGeneral qualification relating to material weaknesses in financial reporting systems and processes for the State of Victoria Financial Report or Estimated Financial Statements While the 201415 Annual Financial Report received two qualifications from the Acting AuditorGeneral (and the Estimated Financial Statements were similarly qualified for the Education Asset balances) these did not relate to material weaknesses in DTF’s financial reporting systems and processes. number 0 0 0 Maintain ISO 9001 (Quality Management Systems) Certification per cent 100 100 0 Supporting the financial reporting framework across the VPS (survey data) per cent 81 80 1.3 Timeliness Annual Budget published by date agreed by Treasurer date 27 Apr 2016 May16 0 Budget Update, Financial Report for the State of Victoria, MidYear Financial Report, and Quarterly Financial Reports are transmitted by legislated timeline The 201516 outcome is lower than the 201516 target as the audited 201415 Financial Report (incorporating Quarterly Financial Report No. 4) could not be transmitted to Parliament by the legislated date of 15 October 2015. per cent 71 100 29 Cost Total output cost The 201516 outcome is higher than the 201516 target due to costs associated with improvements to the State’s financial reporting system SRIMS. $ million 10.3 9.5 8.4 Financial and Resource Management Frameworks Maintenance and Support This output develops and maintains cohesive financial and resource management frameworks that sound financial and resource management practices in the Victorian public sector (VPS). This includes enhancing key frameworks to drive performance, monitoring VPS entities’ compliance, and advising government and key stakeholders on financial and resource management and compliance issues. The output contributes to the Department’s objective of ensuring sound financial management of the State’s fiscal resources by: ensuring that financial and resource management frameworks are established and complied with; promoting continuous improvement in resource allocation and management through regular reviews and updates to ensure the frameworks represent good practice; and promoting awareness of financial management accountabilities and roles. Performance measures Unit of measure 201516 actual 201516 target Performance variation (%) Result Quality Maintain ISO 9001 (Quality Management Systems) Certification per cent 100 100 0
Budget portfolio outcomes The budget portfolio outcomes statements provide a comparison between the actual financial information of all general government entities within the portfolio and the forecasted financial information published in the budget papers. The budget portfolio outcomes comprise the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement, and administered items statement. The budget portfolio outcomes have been prepared on a consolidated basis and include all general government entities within the portfolio. Financial transactions and balances are classified into either controlled or administered, consistent with the published statements in the budget papers. The following budget portfolio outcomes statements are not subject to audit by the Victorian AuditorGeneral’s Office. They are not prepared on the same basis as the Department’s financial statements as they include the consolidated financial information of Essential Services Commission and CenITex in addition to that of the Department. Essential Services Commission and CenITex are not consolidated in the Department’s audited financial statements enclosed within this annual report, as they prepare separate annual reports for tabling in Parliament. Further, the Department’s audited financial statements include certain whole of government transactions, as referred to in Note 22. Otherwise, albeit in different format, the following statements are reflective of the audited financial statements.
Motor vehicles under finance lease 5 618 5 901 Less: accumulated depreciation (1 752) (1 709) 3 866 4 192 Total plant and equipment 4 630 6 308 property, plant and equipment 549 063 500 104 Valuations The basis of valuation of land and buildings (including heritage buildings) is fair value. Fair value is determined by direct reference to recent market transactions for land of comparable size and location. For buildings (including heritage buildings), fair value is determined by applying an appropriate capitalisation rate based on factors such as building design, location, tenancy size on the average rental income of the building area. The latest revaluations of building assets were based on independent assessments as at 30 June 2012, carried out by Valuer-General Victoria, Urbis, Napier and Blakeley Pty. Ltd. and Herron Todd White Pty. Ltd. The Department’s land assets were managerially revalued in accordance with FRD 103F as at 30 June 2016. The revaluation process normally occurs every five years, based on the asset’s government purpose classification. In the intervening period, annual assessments are made of all property, plant and equipment as to whether the fair value of a class of assets may differ materially from its carrying amount, being revalued amount, or cost for recently acquired items, less applicable accumulated depreciation. Restricted assets The carrying amount of buildings listed as heritage assets is $78 million (2015 – $81.3 million). heritage assets cannot be modified nor disposed of without formal Ministerial approval.
DTF’s performance against OHS management measures Measure KPI 201314 201415 201516 Incidents Number of incidents 7 22 18 Rate per 100 FTE 1.24 4.34 3.49 Claims Number of standardised claims (a) 2 4 1 Rate per 100 FTE 0.35 0.79 0.19 Number of lost time claims (b) 1 2 1 Rate per 100 FTE 0.17 0.39 0.19 Number of claims exceeding 13 0 2 0 Rate per 100 FTE 0 0.39 0 Fatalities Fatality claims 0 0 0 Claim costs Average cost per standard claim (c) $3 012 $57 669 The increase in claims cost is associated with one claim being incorrectly coded by Workers Compensation Agent. This has not affected the 201516 premium. $5 108 Return to work Percentage of claims with return to work plan <30 days n/a n/a 100 per cent Management commitment Evidence of OHS policy statement, OHS objectives, regular reporting to senior management on OHS, and OHS plans (signed by CEO or equivalent) Statement of commitment signed by Secretary. Monthly reporting to senior executives, including OHS Committee minutes. OHS plan included in human resources business plan. Statement of Commitment reviewed and revised and signed by Secretary. Routine tabling of minutes from Health and Safety Committee (HSC) to People and Culture Committee (PCC). Senior manager (Director, Corporate Services) assumed role of Chair of HSC from February 2015. OHS plan included in human resources business plan. Statement of Commitment signed by Secretary. OHS issues are raised monthly with Directors. Increased visibility of OHS reporting and issues for wider Department via OHS newsletter. DTF participated in whole of Victorian government interdepartmental Health and Safety Subcommittee, and Subcommittee working group. Evidence of OHS criteria in purchasing guidelines (including services and personnel) Purchasing guidelines contain OHS criteria. Purchasing guidelines contain OHS criteria. Staff engaged through a proactive approach towards workstation assessments, with subsequent purchase of ergonomic workstation related equipment.
Appendix 4 Environmental reporting Officebased environmental impacts DTF monitored the environmental impacts of its operations during 201516. This was undertaken via DTF’s officebased environmental management system (EMS), which is based on international standard AS/NZS ISO14001 Environmental Management Systems Requirements. The officebased EMS controls all operational activities within DTF’s offices and aims to minimise the generation of and the use of energy, water, paper, travel, vehicle fleet and greenhouse gas emissions in the course of operations. The suite of environmental indicators presented below is based on Financial Reporting Direction 24C. Energy The Department’s energy consumption comprises its CBD office facilities. Core DTF staff were located at 1 Treasury Place, 1 Macarthur Street and 2 Lonsdale Street. Indicator 201516 201415 Electricity Natural gas power Total Electricity Natural gas Green power Total Total energy usage segmented by primary source (MJ) 2 949 182 2 949 182 3 064 141 3 064 141 Greenhouse gas emissions associated with energy use, segmented by primary source and offsets (t CO2e) 1 032 1 032 1 157 1 157 Percentage of electricity purchased as green power Units of energy used per FTE (MJ/FTE) 5 156 6 041 Units of energy used per unit of office area (MJ/m2) 193 201 Actions undertaken Earth Hour DTF participated in the 2016 Earth Hour event. Result Energy consumption was down 3.7 per cent from 201415. Explanatory notes Billing data was used to calculate the Department’s energy use. Where billing data is unavailable, average consumption from the previous billing period is used. The decrease in units of energy used per FTE (MJ/FTE) was attributed to a consolidation of DTF FTE to the Treasury Reserve and replacement of endoflife atmospheric boilers. Paper use covered staff located in 1 Treasury Place, 1 Macarthur Street and 2 Lonsdale Street. Indicator 201516 201415
units of copy paper used (reams) 5 826 5 258 Units of copy paper used per FTE (reams/FTE) 10.2 10.4 Percentage of 75–100 recycled content copy purchased 38 9 Percentage of 50–75 recycled content copy paper purchased 0 0 Percentage of 0–50 recycled content copy paper purchased 62 91 Greenhouse gas emissions related to use (t CO2e) 22.3 19.7 Optional indicators Total units of A4 equivalent paper used in publications (reams) 2 395 2 969 Actions undertaken eReviewing DTF expanded the number of publications managed by eReviewing (eDrafts), reducing the requirement to print hard copy drafts. Review of requirement for hard copy publications DTF, as part of planning for major publications, continues to review the number of hard copy versions required and directs stakeholders to online versions as an alternative. Targets The following target was set for 201516: Reduce by 0.2 reams per FTE from 201415 result. Result Paper use decreased by 0.2 reams per FTE from 201415 result. Explanatory notes use is calculated using the information provided under the whole of government office stationery contract. Where data is unavailable, average use from the previous billing period is used. In addition to the decrease in paper use per FTE the Department has increased the purchase of higher recycled content paper by 29 per cent from 201415. Water Water data covered staff located in 1 Treasury Place and 1 Macarthur Street. Indicator 201516 201415 Total units of metered water consumed by usage types (kilolitres) 8 647 8 966 Units of metered water consumed in offices per FTE (litres/FTE) 15 170 17 678 of metered water consumed in offices per unit of office area (litres/m2) 566 587 Actions undertaken DTF continues to make improvements to the plumbing infrastructure on the reserve.
Appendix 9 Freedom of Information The Department of Treasury and Finance is an ‘agency’ for the purposes of the Freedom of Information Act 1982 (the Act) and is therefore subject to the Act. The Department’s website (below) provides additional information that might assist in making a request. The Department’s Part II Statement is also published on this website as required by the Act. The Department’s Freedom of Information (FOI) Officers are authorised to deal with requests for access to documents in the possession of the Department. This authorisation does not extend to documents in the possession of the State Revenue Office (SRO) and any such requests should be sent directly to the SRO. During 201516, the Department received 81 FOI requests. Of those, 56 were from Members of Parliament, 10 were from media organisations and 15 were from members of the public. Timeliness The Department made 78 FOI decisions during the 12 months ended 30 June 2016. 40 decisions were made within the statutory 45 day time period, 24 decisions were made within 46 to 90 days and 14 decisions were made in greater than 90 days. The average time taken to finalise requests in 201516 was 55.5 days. Information about other aspects of the Department’s FOI performance is available in the 201516 FOI Annual Report, prepared by the Office of the Freedom of Information Commissioner. Section 17 of the Act sets out the formal requirements for making a request. In summary, the requirements for making a request are that: it should be in writing; it should identify as clearly as possible what document is being requested; and it should be accompanied by an application fee. Requests for documents in the possession of DTF should be addressed as follows: Freedom of Information Officer Department of Treasury and Finance GPO Box 4379 Melbourne VIC 3001 Access charges In addition to the application fee, certain other charges such as search fees and photocopying charges may apply in relation to the provision of documents as stipulated in the Freedom of Information (Access Charges) Regulations 2014. Further information Further information regarding the operation and scope of FOI can be obtained from: the Act; regulations made under the Act; and . Freedom of Information contact Vivian Chung, Tel: (03) 9651 2115 Mark HamiltonSmith, Tel: (03) 9651 1413