Governance of DTF The overarching governance body for the Department is the Treasury and Finance Board. The Board’s membership includes the Departmental Secretary and Deputy Secretaries. The Board’s primary function is to set and monitor the overall strategic direction, provide effective guidance and leadership, and to ensure the sound financial management and general compliance of the Department. The Board also provides high level monitoring and oversight of the Department’s people management and organisational strategies. The Board met eight times in 201617. The functions of the Board are supported by subcommittees. The current structure and role of each subcommittee is: Knowledge Management: supports organisational objectives by making optimal use of knowledge. It involves the design, implementation and review of capability, processes and systems to improve the creating, sharing and application of knowledge. People Committee: provides leadership to the Department and advises the Board on organisational culture, people, capability and communication issues and progresses initiatives defined within the People and Culture Strategy. Remuneration Committee: manages executive remuneration practice and procedures. DTF and Risk Committee membership and roles The Audit and Risk Committee independently reviews and assesses the effectiveness of the Department’s systems and controls for financial management, performance and sustainability, including risk management. The Audit and Risk Committee has external and independent members, including the Chair. The and Risk Committee comprised the following members as at 30 June 2017. Kathy Grigg – Chair (external) Jan West (external) Stefano Giorgini (external) Steve Mitsas Porthouse The Department’s internal audit services were provided by KPMG.
Cost Total output cost The 201617 outcome is higher than the 201617 target due to additional funding for land remediation, the West Gate Tunnel Project and Western Suburbs Roads Package, public spaces improvements and establishment of OPV. $ million 145.2 48.2 201.2 Deliver efficient whole of government common services to the Victorian public sector DTF assists Government agencies in providing a more integrated approach to the management of common services. Services to Government This output delivers of government services, policies and initiatives in areas including procurement, fleet and accommodation. The output contributes to the Department’s objective of delivering efficient whole of government common services to the Victorian public sector by: developing and maintaining a framework of whole of government policies, standards and guidelines which promote the efficient and effective use of common services including procurement, fleet and accommodation; implementing a program of whole of government procurement and contract management to ensure optimum benefit to government; supporting the operations of the Victorian Government Purchasing Board, facilitating the approval of major government procurements and developing procurement capability across government; and providing whole of government fleet and accommodation. Performance measures Unit of measure 201617 actual 201617 target Performance variation (%) Result Quantity Total accommodation cost $ per square per year 383 395 (3) Workspace ratio The workspace has been undertaken in Q1 201718. Information in relation to 50 Lonsdale Street is expected to be received in Q2 2017-18 square metre per FTE n/a 14.4 n/a n/a Quality Benefits delivered as a percentage of expenditure by mandated agencies under DTFmanaged state purchasing contracts, including reduced and avoided costs per cent 6 ≥5 – Client agencies’ satisfaction with the service provided by the Shared Service Provider per cent 73 70 4.3 Maintain ISO 9001 (Quality Management Systems) Certification per cent 100 100 – Cost Total output cost The 201617 outcome is lower than the 201617 target due to internal funding reprioritisation. $ million 41.8 43.8 (4.6) Discontinued operations There were no discontinued operations in 201617.
Budget portfolio outcomes Comprehensive operating statement for the year ended 30 June 2017 Controlled 201617 actual 201617 budget Variation $m $m % Income from transactions Output appropriations 353.2 258.5 36.6 Interest 1.3 1.7 (24.6) Sale of goods and services 180.2 163.6 10.2 Grants 3.3 – n/a Fair value of assets and services received free of charge or for nominal consideration 0.2 – n/a Other income 24.9 30.4 (18.1) income from transactions 563.1 454.2 24.0 Expenses from transactions Employee benefits 206.4 200.5 2.9 Depreciation 36.8 42.5 (13.4) Interest expense – 0.2 (100.0) Grants and other transfers 10.9 5.5 98.6 Capital asset charge 21.8 21.8 – Other operating expenses (a) 274.1 171.8 59.6 Total expenses from transactions 550.1 442.3 24.4 Net result from transactions 13.0 11.9 9.4 Other economic flows included in net result Net gain/(loss) on nonfinancial assets 0.1 (7.1) (101.6) Net gain/(loss) on financial instruments and statutory receivables/payables – (0.3) (100.0) Other gains/(losses) from other economic flows 1.5 – n/a Total other economic flows included in net result 1.6 (7.4) (122.1) Net result 14.7 4.5 225.6 Other economic flows – other comprehensive income (b) 251.9 29.7 747.1 Comprehensive result 266.5 34.2 678.6 (a) increase is attributable to a provision to remediate a land site. (b) increase driven by completion of the fiveyear cyclical revaluation in 201617. Budget portfolio outcomes Balance sheet as at 30 June 2017 Controlled 2017 actual 2017 budget Variation $m $m % Financial assets Cash and deposits 92.8 98.6 (5.9) Receivables 297.2 224.0 32.7 Other financial assets 35.0 – n/a financial assets 425.0 322.6 31.7 Nonfinancial assets Inventories 8.9 – n/a
Capital projects/asset investment programs The Department and its related portfolio entities manage a range of capital projects to deliver services for government. Information on the new and existing capital projects for Departments and the broader Victorian public sector is contained in Budget Paper No. 4 State Capital Program, which is available on DTF’s website. No major projects with a total estimated investment of $10 million or greater were completed during the year. Style conventions Figures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components reflect rounding. Percentage variations in all tables are based on the underlying unrounded amounts. The notation used in the tables is as follows: – zero, or rounded to zero 1 billion 1 000 million 200x year period 200x0x year period n/a not available or not applicable (xxx.x) negative numbers
Maturity analysis of contractual payables Maturity dates(a) Carrying amount Nominal amount Less than 1 month 1–3 months 3 1 year 1–5 years Greater than 5 years 2017 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Payables 33 283 33 283 33 283 2016 Payables 31 981 31 981 31 981 Note: (a) The amounts disclosed are the contractual undiscounted cash flows. Nonfinancial assets classified as held for sale 2017 $’000 2016 $’000 Vehicles held for sale 21 93 Properties held for sale 4 555 8 893 Total nonfinancial assets classified as held for sale 4 576 8 986 Nonfinancial assets classified as held for sale comprise property and vehicles that the Department no longer utilises and which it intends to dispose of within the next 12 months. No impairment losses were recognised on reclassification of the property as held for sale or at balance date. Nonfinancial physical assets are classified as held for sale and treated as current assets if their carrying amount will be recovered through a sale transaction rather than continuing use. This condition is regarded as met only when the asset is available for immediate use in the current condition and the sale is highly probable and is expected to be completed within one year from the date of classification. Nonfinancial assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation. Surplus land and buildings that fall within the Government’s asset sales program, and which are not controlled by the Department, are reported by the relevant agency and not by this Department. Reporting responsibility for these assets remains with the relevant agency until the total sale price is fully discharged. Unearned income Unearned income relates mainly to accommodation rentals on government owned buildings invoiced in advance to tenants. Advances for capital works received in advance for capital works managed on behalf of other departments and agencies are recognised as current liabilities until the associated capital expenditure is incurred. Advances for capital works are managed through the Finance Agency Trust.
2017 Bourke Street Fund Account – Financial Management Act 1994 To receive donations and other contributions to assist the immediate families of the deceased and injured individuals and their immediate families affected by the 2017 Bourke St tragedy. Victorian Social Housing Growth Fund – Financial Management Act 1994 To support innovative approaches to increase the supply of social housing either directly through dedicated construction of social and affordable housing or by subsidising rental properties in the private market. During the year, the Bourke Street Fund and the Victorian Social Housing Growth Fund were established under the Financial Management Act 1994. The mediumterm lease of the Port of Melbourne concluded on 31 October 2016 with proceeds of approximately $9.7 billion. The proceeds were paid into the Victorian Transport Fund to fund infrastructure projects.