Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Office of Parliamentary Counsel—Report for 2013-14


Download PDF Download PDF

Annual Report 2013-2014

ISSN 1034-3202

With the exception of the Commonwealth Coat of Arms and where otherwise noted, all material presented in this publication is provided under a Creative Commons Attribution 2.5 Australia licence.

The details of the relevant licence conditions are available on the Creative Commons website (http://creativecommons.org/licenses/by/2.5/au/deed.en).

Content from this publication should be attributed to the Australian Office of Parliamentary Counsel.

Produced by Canprint Communications Pty Ltd

Contents

i

Contents First Parliamentary Counsel’s Review ....................................... 1

First full year of expanded functions .................................................................... 1

Bills 1

Repeal Day .............................................................................................................. 2

Instruments ............................................................................................................. 2

Sunsetting instruments ......................................................................................... 2

Drafting resources.................................................................................................. 3

Publications ............................................................................................................ 3

Documentation and training .................................................................................. 4

Liaison outside OPC .............................................................................................. 4

Corporate Services support .................................................................................. 5

Election projects..................................................................................................... 5

Placements in House and Senate ......................................................................... 6

Outlook for coming year ........................................................................................ 6

Chapter 1—Overview of OPC ...................................................... 7

Role and functions of OPC .................................................................................... 7

Organisational structure ........................................................................................ 8

Outcome and program structure .......................................................................... 9

Chapter 2—Report on performance ......................................... 10

Progress towards outcome ................................................................................. 10

Review of performance in relation to program and contribution to outcome ................................................................................................. 11

Actual performance in relation to deliverables and key performance indicators, and analysis of performance ............................................ 13

Influences on OPC’s performance ...................................................................... 34

OPC’s financial performance .............................................................................. 36

Chapter 3—Management and accountability .......................... 38 Corporate governance ......................................................................................... 38

Risk management and fraud control .................................................................. 40

Operational risks .................................................................................................. 41

Maintenance of ethical standards ....................................................................... 42

SES remuneration ................................................................................................ 43

External scrutiny .................................................................................................. 43

Chapter 4—Management of human resources ........................ 44 Survey of OPC staff .............................................................................................. 44

Management and development of human resources ........................................ 46

Contents

ii

Workplace diversity.............................................................................................. 51

Work health and safety ........................................................................................ 54

Chapter 5—Purchasing and consultants ................................. 57

Purchasing ............................................................................................................ 57

Consultants ........................................................................................................... 57

Chapter 6—Miscellaneous ........................................................ 59

Freedom of information ....................................................................................... 59

Advertising and market research etc.................................................................. 59

Ecologically sustainable development and environmental performance .......................................................................................... 59

Additional information ......................................................................................... 59

Appendix A—Agency resource statement and Expenses for outcome ..................................................... 60

Appendix B—Staffing statistics and salary ranges ................ 62

Appendix C—Reporting required by section 516A of the Environment Protection and Biodiversity Conservation Act 1999 ..................................................... 65

Appendix D—Financial Statements 2013-2014 ....................... 68

Appendix E—List of requirements ......................................... 118

Glossary ................................................................................... 123

Index ......................................................................................... 125

First Parliamentary Counsel’s Review

1

First Parliamentary Counsel’s Review

1 The year has been one of

great change for the Office of

Parliamentary Counsel (OPC).

First full year of expanded functions

2 This financial year was the

first full year of OPC’s expanded

functions. Legislation in 2012

amended the Parliamentary

Counsel Act 1970 to expand OPC’s

role to include the drafting of

legislative instruments and the

publication of legislation.

3 In addition, the legislation

transferred some functions under

the Legislative Instruments Act

2003 from the Secretary of the

Attorney-General’s Department to

First Parliamentary Counsel.

4 The transfer of functions is

now complete and the expanded

Office is running smoothly.

5 The one outstanding matter

is to co-locate the whole of OPC. It

is planned that this will occur late in

2014-2015.

Bills

6 Over the year 199 Bills,

totalling 5,916 pages, were

introduced. These figures include

Bills introduced in the last 2 weeks

of the 2014 Winter sittings even

though they were in July 2014. This

is to ensure that the figures are

properly comparable with other

years.

7 Major legislation was

introduced in the areas of public

governance, offshore petroleum

and greenhouse gas storage, and

employment law.

8 The Regulatory Powers

(Standard Provisions) Bill, which

provides for standard provisions

that can be applied to regulatory

schemes, was also reintroduced

and has since been passed. This

Act removes the need to repeat

First Parliamentary Counsel’s Review

2

substantial provisions in many Acts

and will also lead to greater

consistency in regulatory powers.

OPC was closely involved in this

project from its inception.

9 Taxation and

superannuation legislation

continues to be an area of

substantial demand.

10 There also continued to be

an expansion across portfolios in

the practice of preparing exposure

drafts of legislation across

portfolios. The volume of exposure

drafts is such that OPC is

considering how to accommodate

them while still delivering the

Government’s legislative program.

Repeal Day

11 OPC had a substantial

involvement in the first Repeal Day.

12 A Statute Law Revision Bill

was introduced as part of OPC’s

ongoing commitment to maintaining

the statute book.

13 In addition, OPC prepared

the Amending Acts 1901 to 1969

Repeal Bill 2014. This Bill repealed

1,120 Acts dating from 1901 to

1969. Doing this removed a large

amount of clutter from electronic

databases such as ComLaw.

14 OPC is in the process of

preparing further Bills to repeal

amending Acts from later years.

15 A range of other Bills were

also introduced on Repeal Day

including an Omnibus Bill

containing material from all

portfolios.

16 A number of instruments to

repeal substantial numbers of

redundant instruments were also

tabled on Repeal Day.

Instruments

17 During the year, some 259

Federal Executive Council (ExCo)

Instruments, totalling 5,823 pages,

drafted by OPC were made and

registered on the Federal Register

of Legislative Instruments.

18 OPC also drafted

approximately 97 other legislative

instruments, totalling 1,422 pages,

for government agency clients.

Sunsetting instruments

19 OPC continued to play a

key role in the project to achieve

the sunsetting of instruments.

20 The first date for the

sunsetting of instruments is now

approaching and OPC is working

with sunsetting coordinators in all

First Parliamentary Counsel’s Review

3

portfolios to encourage early action

on sunsetting.

21 OPC will continue to play

an important role in repealing spent

and redundant legislation and

ensuring that the Commonwealth

statute book is as coherent,

readable and readily accessible as

possible.

Drafting resources

22 Due to a reduction in

funding and the need to ensure that

the structure of OPC’s drafting

areas was suitable to meet the

future needs of the Office, OPC had

to undertake a process to reduce

the number of Assistant

Parliamentary Counsel Grade 1

and 2 staff.

23 This was done through a

“spill and fill” process combined

with offers of voluntary redundancy.

Four drafters accepted voluntary

redundancies through these

processes.

24 A number of other drafters

also left the Office through retiring

or transferring to other positions.

25 OPC was not in a position

to recruit any drafters during the

year.

Publications

26 The Publications group

functions include:

 managing the Federal Register

of Legislative Instruments,

including registering legislative

instruments and lodging them

for tabling in the Parliament;

 preparing compilations and

reprints of, and information

relating to, Commonwealth

laws;

 publishing Commonwealth

legislation and legislative

information;

 preparing and publishing the

Government Notices Gazette;

and

 developing and operating the

whole-of-government legislation

ComLaw website

(www.comlaw.gov.au).

27 Substantial work was done

during the year to:

 review the design and level of

publishing fees;

 liaise with agencies to prepare

for and manage the sunsetting

of legislative instruments; and

 work with agencies to obtain

and register a considerable

number of compilations (that

had not been lodged with OPC

during 2012-2013), for which

First Parliamentary Counsel’s Review

4

agencies were responsible for

preparation.

Documentation and training

28 The work to revise and

reissue the Drafting Directions that

guide drafters in aspects of their

work to ensure that they are

relevant for drafters of instruments

is largely complete. This was a

substantial task that was required

as a result of the transfer of

functions.

29 A program of training for

drafters who transferred from the

Office of Legislative Drafting and

Publishing was delivered

throughout the year. In addition,

training was provided in aspects of

the drafting process that related to

the drafting of instruments.

30 The expansion of our

functions has necessitated the

rewriting of the legislation process

course to cover the additional

functions. This is still underway and

we have therefore not run any

courses during this financial year.

31 Work has also commenced

on preparing training materials to

assist those in agencies who are

responsible for drafting a range of

legislative instruments.

Liaison outside OPC

32 Over the year, OPC has

continued to work on building closer

relations with a number of key

stakeholders. These have been in

the Treasury, in the Attorney-General’s Department and in the

Department of the Prime Minister

and Cabinet.

33 The liaison officer system

introduced over the past few years

has continued. The system

provides for a senior OPC drafter

and a senior staff member in the

relevant part of the Attorney-General’s Department to be initial

contacts for systemic issues that

arise. This system has worked well

in ensuring better communication

and resolving a number of issues

that have arisen.

34 OPC has also developed

closer ties with a range of areas

within the Attorney-General’s

Department on matters of mutual

interest. In particular, I am a

member of the Department’s

Legislation Design Committee.

35 Through my membership of

the Board of Taxation, I continued

to maintain a close involvement in

developments in taxation law and

the implementation of that law.

First Parliamentary Counsel’s Review

5

36 Staff involved in

Publications and Information

Technology continued to be

involved in the Australasian

Parliamentary Counsel’s

Committee IT Forum. This year the

meeting was held in Wellington,

New Zealand.

37 OPC met with drafters and

other officials from China who were

visiting Australia.

Corporate Services support

38 OPC’s Corporate Services

group has continued to provide

outstanding support to the whole of

OPC. Due to the small size of our

Corporate Services group, many

staff have duties covering a wide

range of disparate areas. All of the

Corporate Services staff have

worked well in the small team

environment to ensure that the

drafters, the senior management

team and other staff received all the

support that they needed.

39 In addition to the ongoing

administrative work of OPC,

significant administrative activity

during the year was devoted to:

 assisting staff affected by the

planned changes to OPC’s

structure and the reduction of

drafting positions;

 reviewing and updating

financial policies and

procedures;

 identifying and evaluating

suitable accommodation

options for co-location of staff;

 developing and implementing a

new time recording system in

OPC’s drafting databases;

 modifying OPC’s financial

management information

system and streamlining

processes to accommodate

new billing arrangements;

 migrating the internet gateway

to a new provider under the

whole-of-government internet

gateway reduction program;

 tendering for the provision of

cloud hosting for the ComLaw

system; and

 reviewing OPC’s Risk

Management framework,

processes and plan.

Election projects

40 During the caretaker period

for the 2013 election, OPC staff

undertook a range of projects to

assist OPC to be more effective in

the long term. These were mostly

projects that were unable to be

completed during normal

parliamentary sittings due to

First Parliamentary Counsel’s Review

6

drafters being fully occupied

working on Bills.

Placements in House and Senate

41 During the year we

continued the arrangements with

each of the two Houses of

Parliament to have drafters working

in Parliament House.

42 The arrangement with the

Senate is a secondment to the

procedure office for one of our

assistant drafters. This position is a

valuable learning exercise for the

drafters who are involved as well as

a practical way of OPC providing

some assistance to the Senate.

43 We also provided a senior

drafter to assist the House of

Representatives to deal with the

increase in Private Members’ work

arising from the make-up of the

House. This arrangement has been

quite successful and is being

continued.

Outlook for coming year

44 I believe that the next year

will see a continuation of the very

high level of demand for OPC’s

drafting resources. At the same

time, OPC will continue to

concentrate on the need to train

and retain the highest quality staff

in order to meet the demands of the

future.

45 Major projects will include

the move to a new building which

can house the whole of the Office

and the change to the hosting

arrangements for ComLaw.

Peter Quiggin PSM

First Parliamentary Counsel

Chapter 1—Overview of OPC

7

Chapter 1—Overview of OPC

Role and functions of OPC

46 OPC is the

Commonwealth’s principal provider

of professional legislative drafting

and publishing services. OPC

delivers timely, high quality drafting

and advisory services for Bills,

legislative instruments and other

instruments, prepares compilations

of laws as amended and publishes

legislation and government notices

on behalf of more than 70

agencies. OPC also provides

comprehensive, free access to

Commonwealth legislation and

related material through the

ComLaw website.

47 OPC was established

under the Parliamentary Counsel

Act 1970. Its functions are set out in

section 3 of the Act. During 2013-2014, they were:

 the drafting of proposed laws

for introduction into either

House of the Parliament;

 the drafting of amendments of

proposed laws that are being

considered by either House of

the Parliament;

 the drafting of subordinate

legislation;

 the preparing of compilations

and reprints of, and information

relating to, laws of the

Commonwealth;

 the publishing, and the making

of arrangements for the printing

and publishing, of:

- laws, and proposed laws, of

the Commonwealth;

- compilations and reprints of

laws of the Commonwealth;

and

- information relating to laws

of the Commonwealth;

 the preparing and publishing of

Government Notices Gazettes,

including Special and Periodic

Gazettes;

 functions conferred on the

Office (or on First

Parliamentary Counsel) under

the Acts Publication Act 1905,

the Legislative Instruments Act

2003 and any other laws of the

Commonwealth;

 with the written approval of the

Minister—the provision of

assistance to a foreign country

in relation to the drafting,

printing or publishing of laws of

the country or information

relating to those laws;

Chapter 1—Overview of OPC

8

 functions conferred by the

regulations; and

 functions incidental to any of

the preceding functions.

Organisational structure

48 OPC is headed by the First

Parliamentary Counsel and two

Second Parliamentary Counsel.

49 At the start of the year,

OPC had 4 groups: Bill Drafting,

Instrument Drafting, Publications

and Corporate Services. At the end

of the year the Bill Drafting group

and the Instrument Drafting group

were merged.

50 In the drafting groups,

drafting is carried out in teams

consisting of drafters (who are all

lawyers) supported by

administrative staff. Some of the

teams involve only 2 drafters (a

senior drafter and an assistant

drafter) but some involve more

drafters working together in a

variety of arrangements.

51 The First Parliamentary

Counsel, the Second Parliamentary

Counsel, the Principal Legislative

Counsel and all SES drafters are

senior drafters. They each head a

drafting team and report to the First

Parliamentary Counsel. The other

drafters are called assistant drafters

and are supervised by the senior

drafter who heads their team.

52 OPC’s Publications group,

headed by the General Manager

Publishing, consists of:

 the compilations team that

prepares compilations and

reprints of Commonwealth

legislation;

 a section responsible for the

operation of the Federal

Register of Legislative

Instruments, the publishing and

the making of arrangements for

the printing of Commonwealth

legislation, and the preparation

and publishing of Government

Notices Gazettes; and

 a team responsible for the

development and operation of

the ComLaw website.

53 OPC’s Corporate Services

group, headed by the General

Manager and Chief Finance Officer,

consists of:

 an Information Technology (IT)

section that manages,

maintains and supports OPC’s

IT environment;

 a legislation section that is

responsible for editorial

services, arranging for Bills to

be printed and similar tasks;

Chapter 1—Overview of OPC

9

 staff providing administrative,

human resources, financial and

security services; and

 service centres that provide

proofreading and editorial

checking and administrative

support for drafters.

Outcome and program structure

54 For 2013-2014, the

outcome for OPC is “A body of

Commonwealth laws and

instruments that give effect to

intended policy, and that are

coherent, readable and readily

accessible, through the drafting and

publication of those laws and

instruments”.

55 For 2013-2014, OPC had

one program and 5 program

components contributing to meeting

the outcome. The program was

legislative drafting and publication.

The program components were:

 Legislation;

 Program and project

management;

 Legislative drafting capability;

 Standardisation and quality

control of legislation; and

 Publication.

Chapter 2—Report on performance

10

Chapter 2—Report on performance

Progress towards outcome

56 OPC’s outcome for 2013-2014 is “A body of Commonwealth

laws and instruments that give

effect to intended policy, and that

are coherent, readable and readily

accessible, through the drafting and

publication of those laws and

instruments”.

Giving legal effect to intended policy

57 An important aspect of

parliamentary democracy is that an

elected government is able to

implement its policies through laws

and instruments that are legally

effective.

58 OPC meets this aspect of

its outcome by working with

government agencies to clarify

policy proposals and implement the

intended policy of the executive

government in legally effective

legislation. The legislation drafted is

comprehensible, workable and in a

form available for scrutiny, and

approval or rejection, by the

Parliament.

Coherent, readable and readily accessible

Commonwealth laws and instruments

59 Another important aspect of

parliamentary democracy is that the

public is able to access coherent

and readable legislation. OPC

aspires to make all Commonwealth

legislation coherent, readable and

accessible to the widest possible

audience. Through the ComLaw

website, OPC provides free online

access to up-to-date

Commonwealth legislation.

60 OPC also contributes to

meeting this aspect of the outcome

by:

 maintaining a high standard of

legislative drafting capability, in

particular by providing

substantial drafting training to

its employees and by

continuously improving drafting

techniques;

 progressing work on practical

measures to improve the clarity

and accessibility of

Commonwealth primary and

subordinate legislation;

 adopting a consistent layout

and format for legislation that

will enable ready accessibility

for the public when published;

Chapter 2—Report on performance

11

 preparing timely compilations of

legislation as amended and

publishing legislation and

government notices on behalf

of more than 70 government

agencies;

 continuing to work with other

agencies to manage the

sunsetting of legislative

instruments; and

 encouraging a high standard of

legislative drafting proposals by

providing advice to other

agencies on legislative projects

and by training staff of policy

agencies who might be

responsible for giving drafting

instructions to OPC.

Review of performance in relation to program and contribution to outcome

61 OPC’s outcome is

supported by the program for 2013-2014: “legislative drafting and

publication”. The objectives of this

program are to:

 enable the government to carry

out its legislative program

through the drafting of all Bills,

all legislative instruments to be

made or approved by the

Governor-General (Federal

Executive Council (ExCo)

instruments) and a range of

other instruments; and

 ensure Commonwealth laws

and instruments are freely

available and accessible to

everyone by publishing those

laws and instruments on the

ComLaw website.

62 OPC has met the

objectives of the program in the

2013-2014 year. Below is a

summary of OPC’s overall

performance in relation to the

program and contribution to the

outcome.

Summary of overall achievement of contributions to outcome

Program indicator Performance

Legislative drafting

All Bills and ExCo instruments are drafted in accordance with government

All Bills and ExCo instruments were drafted in accordance with government priorities and in a form suitable for consideration and enactment.

Chapter 2—Report on performance

12

Summary of overall achievement of contributions to outcome

Program indicator Performance

priorities, reflect sponsors’ policy intentions and are legally effective

Client feedback surveys during 2013-2014 indicated that all Bills and instruments reflected their sponsors’ policy intentions.

Minor technical flaws have been detected in a small number of Bills. These have been, or will be, corrected through the Statute Law Revision process. Minor technical flaws detected in regulations are addressed where possible through the next relevant drafting project.

Legislation drafted is coherent, readable and readily accessible

Drafting standards are issued and formatting conventions are set by the First Parliamentary Counsel to ensure a consistent approach is taken in drafting.

The drafting standards and formatting conventions were applied consistently to Bills and ExCo instruments.

Quality assurance through editorial checking ensured drafting standards and formatting conventions were applied consistently and legislation was readable.

Client feedback surveys during 2013-2014 indicate that all Bills and instruments were easy to understand, having regard to the inherent complexity of the subject matter.

Publication

Commonwealth laws and instruments are freely available and accessible to everyone by publishing those laws and instruments on the ComLaw website

Commonwealth legislation was available free of charge in an authoritative form on OPC’s ComLaw website. The website was visited 6,865,715 times during the year.

The majority of ComLaw content, created and published since 2005, is consistent with international standards for accessibility. The BrowseAloud facility available through ComLaw offers text-to-speech technology so that people with literacy difficulties,

Chapter 2—Report on performance

13

Summary of overall achievement of contributions to outcome

Program indicator Performance

cognitive disabilities or visual impairments can more

easily access legislation.

New legislative instruments and Government Gazette notices were published promptly and within the timeframes set by client agencies.

Actual performance in relation to deliverables and key performance indicators, and analysis of performance

63 The program “legislative

drafting and publication” is further

supported by the following five

program components:

 Program component 1.1—

Legislation;

 Program component 1.2—

Program and project

management;

 Program component 1.3—

Legislative drafting capability;

 Program component 1.4—

Standardisation and quality

control of legislation;

 Program component 1.5—

Publication.

64 The sections below indicate

OPC’s performance during the year

in relation to the deliverables and

key performance indicators for each

program component that

contributes to the objectives of

OPC’s program and outcome.

Program component 1.1—Legislation

Indicator Performance

Deliverable: Drafting of Bills and ExCo instruments in accordance with government priorities

Key performance indicator: Bills and ExCo instruments are drafted

All Bills and ExCo instruments were drafted in accordance with government priorities and supplied in accordance with deadlines for legislation processes.

Chapter 2—Report on performance

14

Indicator Performance

in accordance with government priorities and supplied in accordance with deadlines for legislation processes

Deliverable: Drafting of private members’ Bills where resources permit

Key performance indicator: Private members’ Bills are drafted where resources permit

No requests to draft private members’ Bills were received, although a drafter was provided to the House of Representatives to assist the House with the drafting of Bills for private members and another drafter was seconded to the Senate to assist with drafting for private Senators.

Key performance indicator: Bills and ExCo instruments reflect sponsors’ policy intentions and are legally effective

100% of client feedback surveys indicated that all Bills and instruments drafted in 2013-2014 reflected their sponsors’ policy intentions and were legally effective. Minor technical flaws have been detected in a small number of Bills. These have been, or will be, corrected through the Statute Law Revision process.

An average rating of 4.9 (where 5 is the highest rating) was received on client survey forms for overall satisfaction with the drafting process and draft Bills.

An average rating of 4.7 (where 5 is the highest rating) was received on client survey forms for overall satisfaction with the drafting process and draft instruments.

Drafting standards and conventions were applied consistently to 100% of draft Bills and ExCo instruments.

Bills

65 Before each parliamentary

sittings, the Government formulates

the program of Bills that it requires

to be drafted for the sittings. Since

it may not be possible for all Bills on

Chapter 2—Report on performance

15

the program to be drafted, a

drafting priority is given to each Bill.

66 On the basis of this

program, departments or other

agencies instruct drafters in OPC

on the policy to be effected by each

Bill.

67 In consultation with

instructing officers, the drafters

consider the constitutional and legal

background against which the Bill is

to be framed, analyse the policy

and determine the structure of the

Bill. Then they draft the Bill in terms

intended to give effect to the policy

in as precise and clear a manner as

possible.

68 When a Bill is completed,

OPC arranges for the Bill to be

printed in sufficient numbers for

consideration by the Parliament.

69 If the Government decides

to amend a Bill during its passage

through the Parliament, drafters in

OPC prepare the necessary

amendments and provide copies to

the Parliament.

Drafting resources applied according to government priorities

70 Drafting resources were

applied, and Bills were drafted, in

accordance with government

priorities.

71 Most category T Bills were

drafted and introduced. Several

Bills retained category T status to

ensure access to drafting resources

throughout the sittings concerned.

Many category A Bills, and 4

Category B or C Bills, were drafted

and introduced. For a number of

Bills, no instructions were received.

Statistics for Bills introduced

72 Over the year 199 Bills,

totalling 5,916 pages, drafted in

OPC were introduced into the

Parliament. These figures include

Bills introduced in the last 2 weeks

of the 2014 Winter sittings even

though it was in July 2014. This is

to ensure that the figures are

properly comparable with other

years.

73 The table following

paragraph 78 gives more detailed

figures for those Bills, broken down

by parliamentary sittings periods.

74 It should be noted that the

Spring 2013 sittings was much

shorter than usual due to the

election.

75 The figures in the table also

indicate:

Chapter 2—Report on performance

16

 the total number of Bills on the

original program for each

sittings that is set by the

Parliamentary Business

Committee of the Cabinet

(PBC) at the end of the

preceding sittings (note that the

original program is subject to

variations during the sittings

concerned);

 the number of Bills on the

Government’s legislation

program for which OPC

received no instructions; and

 the number of Bills that OPC

was not able to complete

despite having received timely

instructions.

76 There are various

circumstances in which a Bill would

not fall into any of the categories

covered by a column in the table. A

Bill would not fall into any of those

categories if:

 instructions were received

during the sittings concerned,

but too late for the Bill to be

introduced even if drafting

resources had been available;

 instructions were received in

good time, and drafting was

started, but the Bill was too big

to be finished during the sittings

concerned;

 instructions were received, and

drafting was started, but

outstanding policy issues were

not resolved in time for the Bill

to be finished during the sittings

concerned;

 the Bill was completed but was

not approved by the Minister in

time for introduction during the

sittings concerned; or

 the Bill was overtaken by

events, and abandoned, after

drafting started (or after it

finished).

77 An understanding of the

programming approach used by

PBC is necessary to make sense of

the tables. This involves dividing

the legislation planned for a

parliamentary sittings into 4

categories:

 Category T (“time critical”):

These Bills are intended to be

introduced and passed in a

single sittings.

 Category A: Most important

after category T. Generally

intended for introduction, but

not passage, during the sittings.

 Category B: Next most

important. Generally intended

for introduction, but not

passage, during the sittings.

 Category C: Less important, or

less likely to be ready for

Chapter 2—Report on performance

17

introduction (e.g. because final

policy is dependent on the

findings of a review that will not

be completed until late in the

sittings).

78 Some Bills in categories A,

B and C may not be intended for

introduction in the sittings

concerned. These are Bills that are

very large, or are required for

consultation purposes before

introduction. Drafting of such Bills

needs to be started well before the

sittings proposed for introduction.

Bill statistics

Bills on

original PBC program

Bills introduced Bills for which no

instructions were received

Bills which were not able to be finished even though timely instructions were received

Spring 2013 (November—December 2013)

T 38 41 3 0

A 12 5 2 0

B 2 0 0 0

C 0 0 0 0

Total 52 46 5 0

Autumn 2014 (February—March 2014)

T 27 25 2 0

A 38 29 9 0

B 8 1 4 0

C 3 1 0 0

Total 76 56 15 0

Winter 2014 (May—July 2014)

T 31 80 6 0

A 26 11 5 0

B 15 1 7 1

C 1 0 0 0

Total 73 92 18 1

Chapter 2—Report on performance

18

79 Apart from the numbers of

Bills introduced, totalling the

numbers shown for the year may

be misleading as there is some

overlap from sittings to sittings (e.g.

the same Bill may be included in

the PBC program, or may be

covered by the heading “Bills for

which no instructions were

received” for 2 or even all sittings

during the year).

80 OPC surveys its direct

clients (agency instructors) about

all Bills drafted. Among other

things, clients are asked whether

the Bills as introduced reflect their

policy intentions. Survey responses

for 2013-2014 indicated that all Bills

reflected their sponsors’ policy

intentions. However, since Bills are

not introduced without clearance

from those sponsors, it would be

surprising if sponsors did not

believe that Bills reflected the

sponsors’ policy intentions when

they were introduced.

81 The target in the Portfolio

Budget Statements for the average

response to “overall satisfaction”

was 4.0 out of 5 (where 5 is the

highest rating). The result for this

year was 4.9 out of 5.

82 Comments included in

responses to the client surveys

reinforced this very high degree of

satisfaction with services provided

by OPC. Comments in response to

the question “What did you like

most about this experience with the

Office?” included:

“Most appreciated were the positive

working relationship, the

responsiveness to concerns and

comments and the very high quality

drafting of the requested

measures.”

“The zeal, professionalism and

good humour with which the

drafters approached the task.”

“The team’s depth of knowledge in

telecommunications legislation was

most helpful, as was their ability to

draw on relevant examples from

other legislative schemes. The

team was very accommodating with

our requests and addressed them

promptly.”

“The drafters were very

knowledgeable, took on board our

queries, provided options and were

readily available.”

“Everyone at OPC went out of their

way to make this process as

smooth as possible. We were

proactively informed of issues and

problems. Everyone did a great

job.”

Chapter 2—Report on performance

19

Parliamentary amendments

83 OPC keeps records of the

numbers of parliamentary

amendments drafted and the

proportion of those amendments

required to correct drafting errors in

the Bills concerned. The figures are

set out in the following table.

84 The table also shows

figures for reporting years since

2008-2009, to enable trends to be

identified. The table relates to the

numbers of amendments drafted in

OPC, not all of which were moved

in the Parliament.

Parliamentary amendment statistics

Number of amendments drafted (% of total)

Year Government policy change

Government new policy Government correction of

drafting errors

Non-government amendments

Total

2013-2014

191 (81.6) 19 (8.1) 1 (0.4) 23 (9.9) 234

2012-2013

786 (71.6) 254 (23.2) 14 (1.3) 43 (3.9) 1,097

2011-2012

734 (86.6) 52 (6.1) 23 (2.7) 39 (4.6) 848

2010-2011

529 (79.4) 58 (8.7) 3 (0.5) 76 (11.4) 666

2009-2010

1,110 (81.6) 97 (7.1) 61 (4.5) 92 (6.8) 1,360

2008-2009

812 (67.4) 340 (28.2) 14 (1.2) 38 (3.2) 1,204

85 The number of

amendments was substantially

lower than in previous years. A

major cause of this was the election

period which meant that the Spring

sittings was very short and there

were few amendments during that

sittings.

86 Amendments described as

“government policy change”

proposed changes to policy

positions already dealt with in the

Bill concerned. Amendments

Chapter 2—Report on performance

20

described as “government new

policy” added new material, dealing

with new policy, to the Bill.

Generally, these represented cases

in which a Bill already in the

Parliament was seen as a

convenient vehicle for additional but

urgent legislative provisions.

87 Amendments described as

“non-government amendments” are

very rarely drafted by OPC on

instructions from the non-government members concerned.

Usually they are prepared on

instructions from departmental or

ministerial staff for use in

negotiations with non-government

members.

88 The number of

amendments to correct drafting

errors was once again very low.

Instruments

89 OPC provides government

agencies with drafting services for

subordinate legislation.

90 OPC provides instrument

drafting services that are tied to

OPC under the Legal Services

Directions 2005 to sponsoring

agencies on a budget-funded basis.

OPC also provides instrument

drafting services that are not tied to

OPC to government agency clients

on a contestable, user-pays basis.

Budget-funded drafting services

91 Under the Legal Services

Directions 2005 the drafting of

regulations, Ordinances and

regulations of non-self-governing

Territories, and other legislative

instruments made or approved by

the Governor-General is tied to

OPC and is provided on a budget-funded basis. Drafting services are

also provided on a budget-funded

basis for Rules of court.

92 Regulations, other

legislative instruments made or

approved by the Governor-General

(apart from Ordinances and

regulations of non-self-governing

Territories) and Rules of court are

published as Select Legislative

Instruments.

93 During the year, some 259

Select Legislative Instruments,

totalling 5,823 pages, drafted by

OPC were made and registered on

the Federal Register of Legislative

Instruments.

User-pays drafting services

94 Instrument drafting services

that are not tied to OPC are

Chapter 2—Report on performance

21

provided on a contestable, user-pays basis. Editing, compilation and

related IT services for instruments

that are not tied to OPC are also

provided on a user-pays basis. The

fees for these services are

consistent with the competitive

neutrality guidelines and are relied

on by OPC as part of the funding

mix that assists to sustain the

delivery of all its functions.

95 During the year,

approximately 87 legislative

instruments, totalling 1,327 pages,

were drafted by OPC on a user-pays basis for government agency

clients and registered on the

Federal Register of Legislative

Instruments.

Client feedback

96 OPC surveys its direct

clients (agency instructors) about

instruments drafted by OPC.

97 The target in the Portfolio

Budget Statements for the average

response to “overall satisfaction”

was 4.0 out of 5 (where 5 is the

highest rating). The result for this

year was 4.7 out of 5.

98 Comments included in

responses to the client surveys

reinforced this very high degree of

satisfaction with services provided

by OPC. Comments in response to

the question “What did you like

most about this experience with the

Office?” included:

“Very professional, knowledgeable,

offered suggestions, identified

problems which resulted in one

overly complex provision being

abandoned.”

“Dealing with professional drafters

who provided timely drafts when

requested.”

“With the help of this team, we were

able to complete this legislative

project ahead of schedule.”

“Our drafter was extremely

responsive and was able to turn

around additional instructions very

quickly.”

“Prompt attention to the problem at

hand and quick turnover of drafts,

accessibility to drafters, and quality

of finished draft.”

“The drafter took the time to explain

different approaches to drafting the

instrument and provided us with the

instrument in a timely manner.”

Chapter 2—Report on performance

22

Program component 1.2—Program and project management

Indicator Performance

Deliverable: Allocation of drafting work in accordance with priorities and management of legislative projects, so as to make optimum use of drafting resources

Drafting work for Bills was allocated in accordance with the priorities set by the Parliamentary Business Committee, having regard to efficiencies available from a flexible application of those priorities, and legislative projects were managed, so as to make optimum use of drafting resources.

Drafting work for consideration by the Federal Executive Council was allocated in accordance with government priorities and meeting timeframes as guided by sponsoring agencies so as to make optimum use of drafting resources.

99 In managing OPC’s Bill

drafting resources, the First

Parliamentary Counsel applied the

programming categories described

above (see paragraph 77).

Generally, Bills are allocated for

drafting, and are drafted, in order of

priority. That is, category T Bills are

drafted in preference to category A

Bills, which are drafted in

preference to category B Bills, and

so on.

100 Occasionally, however,

there are efficiencies to be gained

from a slightly more flexible

approach to the categories. For

instance, it may be sensible to

delay allocation of a particular high

category Bill until a drafting team

with relevant expertise becomes

available.

101 The allocation of drafting

resources according to the

categories is borne out by the

figures in the table under paragraph

78 in the section on Program

component 1.1—Legislation. This

shows that the higher a Bill’s

category, the more likely it is that

drafting resources will be found to

enable it to be introduced and,

conversely, that the lower a Bill’s

category, the more likely it is to

miss out on introduction in a

particular sittings even if timely

drafting instructions are given to

OPC.

102 Drafting teams are usually

responsible for several Bills of

different categories at any one time.

This means that some work may be

done on lower category Bills during

Chapter 2—Report on performance

23

lulls in a drafter’s higher category

work (e.g. while clients are

considering a first draft of a higher

category Bill or awaiting ministerial

approval of detailed policy

proposals). This explains why some

lower category Bills are introduced

each sittings while other higher

category Bills are unable to be

finished; a drafter might be able to

finish a small category C Bill in the

intervals between work on category

T and A Bills, but might not have

enough “spare” time to be able to

make useful progress with a more

substantial category B Bill.

103 Government Bills were

supplied to the Parliament in

accordance with applicable

deadlines. However, most

deadlines for the introduction of

Bills are not immutable, and may

change to reflect progress in policy

development and drafting,

consultation requirements,

clearance processes or other

matters affecting the availability of

draft Bills for introduction.

104 Until recently, there was no

similar legislation program for

instrument drafting work.

105 During the year OPC

trialled a bidding and priority

system for instruments. This was

very closely based on the system

for Bills. The trial was a success

and the scheme has now been

implemented for all instrument

drafting work that is tied to OPC.

106 The main difference is that

there is no ministerial involvement

in determining the final priorities.

Where necessary, this will be done

by OPC in consultation with the

relevant Departments.

107 In addition, the priorities

used are 1, 2, 3 and 4 (rather than

T, A, B and C).

108 For most Bill and

instrument drafting projects, the

drafters advised instructors on

aspects of the management of the

project. For some projects

(especially large projects or ones

being handled by inexperienced

instructors), the drafters had to play

a major role in project

management.

109 As OPC drafts both Bills

and instruments, drafters have

been able to work closely on

significant projects that required

changes to both Acts and

subordinate legislation. This has

facilitated a more effective and

efficient management of projects

across both legislation processes.

Chapter 2—Report on performance

24

Program component 1.3—Legislative drafting capability

Indicator Performance

Deliverable: Training lawyers recruited to OPC in legislative drafting, to ensure the long-term viability of drafting resources

All assistant drafters worked closely with senior drafters. The primary purpose of this arrangement was to develop the drafting skills of the assistant drafters.

Deliverable: Training potential instructors in policy development and preparation of instructions, to ensure efficient use of drafting resources and quality of legislation

No legislation process courses for instructors and potential instructors for Bills were conducted during the year. As a result, OPC did not meet the target to run at least 10 courses each year.

The courses are being adapted to include material for instruments and will be extended to more extensively cover the processes for instruments for the next financial year.

Deliverable: Legislative drafters maintain and improve drafting skills and knowledge

Legislative drafters maintained and improved their drafting skills and knowledge through working in teams in a range of subject areas and through participating in various OPC professional development activities.

The Director of Drafter Training has implemented an extensive program of training sessions for drafters. A significant program of training was provided to integrate drafting approaches for Bills and instruments and build drafting knowledge across OPC in the drafting of both Bills and instruments.

Building and maintaining drafters’ capability for long-term viability of resources

110 In previous years, OPC’s

turnover of drafting staff has been

extremely low.

111 This very low turnover

(about 3% per annum) enabled

OPC to build up a strong group of

assistant drafters. It also means

that OPC did not need to recruit to

the same extent that it has in

previous years.

Chapter 2—Report on performance

25

112 During this year, due to a

reduction in funding and the need

to ensure that the structure of

OPC’s drafting groups was suitable

to meet the future needs of the

Office, OPC had to undertake a

process to reduce the number of

Assistant Parliamentary Counsel

Grade 1 and 2 staff.

113 This was done through a

“spill and fill” process combined

with offers of voluntary redundancy.

Four drafters accepted voluntary

redundancies through these

processes.

114 A number of other drafters

also left the Office through retiring

or transferring to other positions.

115 Assistant drafters working

on Bills work closely with senior

drafters (SES or Statutory Office

holders). The primary purpose of

this arrangement is to develop the

drafting skills of the assistant

drafters, while allowing the

assistant drafters to make a

significant contribution to OPC’s

drafting output.

116 Drafters working on

instruments generally work in a

team arrangement with about 7

assistant drafters and one SES

drafter. On any particular

instrument, there will generally be 2

drafters working together with one

doing the principal drafting and the

other checking or settling the work.

117 The working arrangements

for drafters is a matter that OPC will

continue to work on over the next

year or so.

118 Legislative drafters have

maintained and improved their

drafting skills and knowledge

through working in teams in a range

of subject areas and through

participating in various OPC

professional development activities.

See Chapter 4 (Management of

human resources) for more details

about this.

119 The Director of Drafter

Training coordinates a program of

formal training activities. A key

component of this is the program of

in-house seminars for drafters. The

seminars cover emerging issues

that drafters need to be aware of,

as well as reminder sessions on

topics that continue to be of

relevance. The in-house seminars

have been running for a number of

years now and play an important

role in the training and development

of drafters.

Chapter 2—Report on performance

26

Building instructor capability to enable efficient use of drafting resources and quality legislation

120 In past years, OPC has

generally conducted around 10

legislation process courses each

year, with an average of 138

participants per year. A total of 224

legislation process courses have

been run since they began in 1994.

121 A project to rewrite the

materials to cover instrument

drafting as well as Bill drafting is

underway. Consequently, no

courses were run during the year.

122 It is hoped that the project

will be concluded in 2014-2015 and

that OPC will be able to resume

conducting the courses.

Program component 1.4—Standardisation and quality control of legislation

Indicator Performance

Deliverable: Consistently applying drafting standards and conventions to all Bills and ExCo instruments

Key performance indicator: Drafting standards and conventions are applied consistently to all Bills and ExCo instruments

Editorial checking ensured that drafting standards and conventions were applied consistently to 100% of Bills and instruments.

Further work was done to bring the drafting standards and formatting conventions for Bills and instruments even closer.

Discussions were held amongst drafters on the desirability of greater consistency in the drafting of provisions and ways in which such consistency could be achieved.

OPC rules, standards and conventions continued to be documented and promulgated as they were updated.

Deliverable: Preparation of a Statute Law Revision Bill to correct technical errors and to remove Acts that no longer have any operation

OPC prepared the Statute Law Revision Act (No. 1) 2014 in this financial year to correct technical errors and to remove Acts that no longer have any operation. The Bill was assented to on 27 May 2014.

The Publications group assisted with the preparation of this Bill by identifying most of the technical errors in the course of preparing compilations of Acts.

Chapter 2—Report on performance

27

Drafting standards and quality assurance

123 Editorial checking ensured

that drafting standards and

conventions and the normal rules of

grammar were applied consistently

to all Bills and ExCo instruments.

Editorial checking involves a range

of automated checks (including

spelling and grammar checking

built into our word-processing

software, and customised checks to

identify such things as departures

from OPC’s basic formatting

requirements), and “manual”

checks by an editorial team. This

“manual” checking detects errors of

various kinds, including:

 words missing from sentences;

 inconsistencies of expression;

 punctuation errors;

 grammatical errors (e.g.

inconsistencies of tense or lack

of agreement between subject

and verb);

 incorrect cross references;

 misdescribed amendments;

and

 clashing amendments.

124 The editorial checking work

is carried out by an editorial team

consisting of a Senior Editorial

Officer, an Editorial Officer and

Assistant Editorial Officers. The

number of staff who are trained in

editorial checking gives OPC

greater flexibility and also makes

OPC less vulnerable to skills

shortages if particular staff leave.

125 It should be noted that

apart from such things as basic

grammar, formatting requirements

and standard amending forms,

there are different drafting styles

and some will be more or less

appropriate than others for

particular legislation. This means

that while all OPC legislation should

(and does) look basically the same,

different legislation might make

different use of aids such as

outlines and notes, and use more

or less technical or colloquial

language, depending on such

things as the subject matter of the

legislation and its intended

audience.

126 OPC has a Drafting Manual

that gives an overview of drafting

matters and then refers the reader

to particular Drafting Directions for

greater detail.

127 The Drafting Directions are

organised on a subject-matter

basis. This arrangement makes the

Drafting Directions easy to use.

Chapter 2—Report on performance

28

128 The Drafting Manual and all

current Drafting Directions are

available from the OPC Documents

menu on OPC’s website:

www.opc.gov.au.

129 Over the past few years,

discussions have taken place

amongst drafters on the desirability

of even greater consistency in the

drafting of provisions and ways in

which such consistency could be

achieved. This has led to a

noticeable increase in consultation

between drafting teams about the

best drafting approach to adopt in

particular cases.

130 The compilations team

within the Publications group has

continued with significant work to

move the format of compilations of

Commonwealth legislation into a

standard style. The compilations

team also continues to provide an

important quality control function for

Commonwealth legislation.

131 OPC has regular meetings

of drafters. These have been used

to discuss drafting issues of general

interest. The meetings have been

very productive and have been the

subject of positive feedback from

drafters. OPC will continue to

review the meetings to see how

they can be improved.

Maintenance of the statute book

132 OPC prepared

amendments to correct a number of

minor errors in Acts, most of which

were identified by the Publications

group in the course of preparing

compilations of Acts.

133 One Statute Law Revision

Bill was prepared and assented to

in the financial year. The Statute

Law Revision Act (No. 1) 2014 was

introduced in the Autumn 2014

sittings and assented to on 27 May

2014. The Act included

amendments to:

 repeal spent and obsolete

provisions and Acts (which

resulted in the repeal of 17

spent Acts);

 remove specific references in

Acts to Ministers and replace

them with generic, more robust,

references and reduce the

need for Orders under

section 19B or 19BA of the Acts

Interpretation Act 1901 to be

made and read in conjunction

with the Acts;

 make amendments

consequential on amendments

of the Acts Interpretation Act

1901, including the repeal of

redundant provisions; and

Chapter 2—Report on performance

29

 modernise language in certain

legislation.

134 The Amending Acts 1901 to

1969 Repeal Act 2014

also repealed 1120 spent Acts. This

Act was introduced in the 2014

Autumn sittings and assented to on

27 May 2014.

135 Over 2013-2014, OPC

continued to lead whole-of-government work to identify

redundant legislative instruments

and repeal them in bulk. This work

has enabled the repeal of more

than 17,000 instruments since

legislation to enable bulk repeals

was enacted in late 2012. Further

bulk repeals will be undertaken as

needed.

136 OPC also worked with

sunsetting coordinators in all

portfolios to encourage early action

on sunsetting, including by

engaging all portfolios in the

preparation of sunset lists for

tabling in Parliament.

137 OPC will continue to play

an important role in repealing spent

and redundant legislation and

ensuring that the Commonwealth

statute book is as coherent,

readable and readily accessible as

possible.

Program component 1.5—Publication

Indicator Performance

Deliverable: Timely registration of new legislative instruments on the Federal Register of Legislative Instruments in accordance with statutory requirements

Key performance indicator: New legislative instruments that are lodged for registration are registered promptly on the Federal Register of Legislative Instruments

All new legislative instruments were registered promptly, and within timeframes set by client agencies, to ensure statutory requirements were met.

More than 97% of routine new legislative instruments were registered no later than 2 business days after the day they were lodged for registration.

100% of urgent new legislative instruments were registered as required by lodging agencies.

Chapter 2—Report on performance

30

Indicator Performance

Deliverable: Preparation and registration of compilations on the Federal Register of Legislative Instruments in accordance with statutory requirements

Compilations were registered on the Federal Register of Legislative Instruments promptly and in accordance with statutory requirements.

Deliverable: Electronic publication of Commonwealth Acts and preparation and electronic publication of compilations of Commonwealth Acts on ComLaw

Commonwealth Acts were published promptly on ComLaw and generally within one day of their being available.

Preparation and electronic publication of Act compilations were generally prompt. Where there were a substantial number of amendments affecting a large number of Acts that commenced on one day, OPC prioritised the preparation of compilations with particular regard to client feedback.

Deliverable: Accurate and timely preparation and publication of Government Gazette notices

Key performance indicator: Government Gazette notices are prepared and published promptly

Government Gazette notices were published accurately and within timeframes set by client agencies.

More than 97% of routine notices were published no later than 2 business days after the day they were lodged for publication.

100% of urgent notices were published as required by clients.

138 The Publications group

functions include:

 managing the Federal Register

of Legislative Instruments,

including registering legislative

instruments and lodging them

for tabling in the Parliament;

 preparing compilations and

reprints of, and information

relating to, Commonwealth

laws;

Chapter 2—Report on performance

31

 publishing Commonwealth

legislation and legislative

information;

 preparing and publishing the

Government Notices Gazette;

and

 developing and operating the

whole-of-government legislation

ComLaw website

(www.comlaw.gov.au).

139 The performance measures

for registration of legislative

instruments and publication of

Gazette notices were met during

2013-2014.

140 During 2013-2014 OPC

again reviewed the design and level

of its publishing fees as a result of

feedback from clients. The

publishing fees changed from 1

July 2014.

141 The fees continue to be

consistent with the Cost Recovery

Guidelines and attribute costs that

recognise the whole-of-life cost

(including IT infrastructure costs) in

publishing legislative instruments

and Gazette notices.

142 Liaison with agencies to

prepare for and manage the

sunsetting of legislative instruments

and related matters continued.

Under the Legislative Instruments

Act 2003 (LIA), all regulations and

other legislative instruments sunset

i.e. cease automatically after 10

years unless action is taken to

exempt or preserve them. The

purpose of sunsetting is to ensure

that legislative instruments are kept

up to date, and only remain in force

as long as they are required.

Sunsetting is also an important

mechanism to pursue clearer laws

and reduce red tape. The first

sunsetting list was tabled in 2013-2014.

143 The LIA requires a

legislative instrument compilation to

be registered as soon as

practicable after changes to a

legislative instrument take effect.

During 2012-2013 a considerable

number of compilations, for which

agencies were responsible for

preparation, had not been lodged

with OPC. This has been a

longstanding problem. This year,

OPC has successfully worked with

agencies to obtain and register

almost all required compilations.

OPC continues to work with

agencies to meet the requirements

of the LIA.

144 The demand for current

versions of legislation continues to

be met by the free online public

access provided by ComLaw. If a

printed version is required, clients

continue to use the print-on-

Chapter 2—Report on performance

32

demand function on ComLaw. This

enables them to purchase a printed

copy of the most current

compilation online and have it sent

to them.

145 Since 1 July 2013, Gazette

notices have not been printed; they

have only been published

electronically. This has enabled

quicker publication of Gazette

notices, reduced costs and better

access to Gazette notices.

146 Minor enhancements to

existing functionality have

continued to be made to the

ComLaw system. Minor general

improvements have also been

made to improve public access to

the website.

Statistics—Publishing

Registration/Publication Number of items Number of pages

2012-2013 2013-2014 2012-2013 2013-2014

Legislative instruments 2,403 1,820 27,176 20,282

Gazette notices 1,896 2,045 3,578 4,498

Numbered Acts 202 141 6,954 4,458

Act compilations 873 892 293,551 373,352

OPC prepared instrument compilations—budget-funded 333 368 76,324 118,068

OPC prepared instrument compilations—user-pays 247 321 24,212 31,295

Agency prepared instrument compilations

353 826 20,158 49,271

Note: The above statistics relate only to new items. They do not include backcaptured or republished historical documents.

Chapter 2—Report on performance

33

Statistics—Legislative instruments registered and repealed

Year Number registered Number repealed

2013-2014 1,820 17,446

2012-2013 2,403 1,242

Statistics—ComLaw website

Year Total visits Total unique

visits

Total page views

2013-2014 6,865,715 3,514,303 23,892,781

2012-2013 6,183,836 2,990,482 22,098,764

Note: Total unique visitors is the number of unduplicated (counted only once) visitors. Total page views is the total number of pages viewed. For page views, repeated views of a single page are counted.

Chapter 2—Report on performance

34

Influences on OPC’s performance

Transfer of instrument drafting and publication functions to OPC

147 The work connected to the

transfer of functions from the Office

of Legislative Drafting and

Publishing (OLDP) within the

Attorney-General’s Department

(AGD) is now substantially

complete.

148 The final aspect will be to

co-locate the Office to one location.

It is hoped that this will be achieved

in the 2014-2015 year.

The 2013 election

149 The timing of the 2013

election meant that the Spring 2013

sittings was much shorter than in a

normal year.

150 A consequence of this was

that the number of Bills introduced

in that sittings was below the

number for corresponding sittings in

recent years.

151 OPC used the caretaker

period to undertake a wide range of

projects that assist OPC to be more

effective in the long term.

152 These included reviewing a

range of drafting related documents

such as the Amending Forms

Manual and the Guide for Clients.

Demand for legislation from particular portfolios

153 There continued to be a

substantial demand for the drafting

of legislation for the Treasury and

legislation for the Attorney-General’s portfolio.

154 Another major project that

required substantial resources was

the public governance legislation.

155 Significant stand-alone

instrument projects for the year

included a package of regulations

for civil aviation, legislation to

support the new aged care

arrangements and legislation in the

areas of public governance and

offshore petroleum and greenhouse

gas storage.

156 The demands for drafting

from other agencies seemed to be

increasing towards the end of the

year.

2014 Autumn Repeal Day

157 On the 2014 Autumn

Repeal Day the Government

introduced legislation and tabled

documents to repeal more than

Chapter 2—Report on performance

35

10,000 pieces (more than 50,000

pages) of legislation.

158 During the Autumn 2014

sittings, OPC allocated significant

drafting, publications and corporate

services resources to prepare for

the Autumn 2014 Repeal Day. The

allocation of these resources

reflected the size of the project and

the high priority it was given by the

Government.

159 The legislation was

successfully completed in time for

the 2014 Autumn Repeal Day.

Changes to ComLaw arising from

the enactment of repeals have also

been successfully completed.

Exposure drafts

160 OPC’s performance

measures in relation to Bills are

also affected by an increasing

preference of the Government, and

among many of our clients, for

exposing draft legislation for public

comment before introduction into

Parliament. This influences

performance because the

timeframes to provide resources

are tighter for these Bills and further

work is often required after

consultation.

161 Since the adoption in 2002

of the Board of Taxation’s

recommendations on consultation

in the tax area, much of the tax

legislation drafted by OPC is

exposed for comment, either widely

or in targeted consultations, before

being finalised for introduction.

162 There is also an increasing

trend towards the release of

exposure drafts in other areas.

163 Sometimes, these

exposure drafts are public exposure

drafts. At other times, there are

exposure drafts that are shown to a

limited group with a particular

interest in the area covered by the

Bill.

164 Usually, exposure of a draft

Bill generates proposals for

change, and OPC receives drafting

instructions to revise the Bill before

introduction.

165 Sometimes, exposure

reveals flaws in the draft Bill.

Exposing a Bill for comment also

provides an opportunity to improve

the drafting of the Bill before

introduction. However, the

exposure process does absorb

extra drafting resources and

extends the elapsed time taken for

the drafting project. This means

that, increasingly, the Bills

introduced in a particular year may

reflect substantial work actually

Chapter 2—Report on performance

36

done by OPC in previous years,

while work done during the

reporting year is less visible.

166 For instruments, the time

required for consultation processes

is generally built into the

timeframes for development and

making. The development period

for projects also does not generally

extend beyond the financial year.

167 However, recently there

has been more demand for

instruments to be drafted and

available with a Bill to assist with

consideration of the package of

changes by Parliament. After the

transfer of functions, this work is

generally undertaken closely with

the Bill drafter and can provide

significant efficiencies for the

broader project.

OPC’s funding position

168 2013-2014 is the final year

OPC received additional funding for

previous budget measures, for the

increased legislative drafting

requirements arising from the

government’s taxation reform

agenda.

OPC’s financial performance

169 The legislative drafting and

publishing functions in the Attorney-General’s Department were

transferred to OPC on 1 October

2012. The 2013-2014 year is the

first full year of the transfer. This is

the primary reason for the

increases in revenue and

expenditure as detailed below.

170 The surplus attributable to

the Australian Government for OPC

for the 2013-2014 financial year

was $1.690 million (after adding

back non-cost recovered

depreciation, this resulted in a

surplus of $2.274 million). This

compares to a surplus of $1.024

million for 2012-2013 (after adding

back non-cost recovered

depreciation, a surplus of $1.479

million).

171 Revenue from government

increased by $1.284 million to

$16.039 million in 2013-2014,

compared to $14.755 million in

2012-2013.

172 Own-source revenue

increased by $0.875 million to

$6.694 million in 2013-2014,

compared to $5.819 million in 2012-2013.

Chapter 2—Report on performance

37

173 Total expenses increased

by $1.493 million to $21.043 million

in 2013-2014, compared to $19.550

million in 2012-2013.

174 Employee expenses

increased by $0.741 million to

$16.056 million in 2013-2014,

compared to $15.315 million in

2012-2013. This was due to:

 the 2012-2013 year only

including employee expenses

for transferred staff for 9

months of the financial year;

and

 a decrease in OPC’s average

staffing level by 10.5 due to a

reduction in the number of

Assistant Parliamentary

Counsel Grade 1 and 2

positions, the cessation of non-ongoing staff arrangements,

and a small number of staff

retirements and transfers.

175 Supplier expenses

increased by $0.352 million to

$3.711 million in 2013-2014,

compared to $3.359 million in 2012-2013.

176 At 30 June 2014, OPC had

net assets (assets less liabilities) of

$11.993 million compared to

$10.043 million for the previous

year.

177 At 30 June 2014, OPC had

financial assets of $15.490 million.

This includes $13.825 million of

undrawn appropriations that are

held in the Official Public Account

under the Government’s just-in-time

drawdown arrangements, and cash

at bank of $0.345 million.

178 The agency resource

statement, and expenses for

outcome statement, are set out in

Appendix A.

Chapter 3—Management and accountability

38

Chapter 3—Management and accountability

Corporate governance

Accountability

179 First Parliamentary Counsel

(FPC) is accountable to the

Parliamentary Business Committee

of the Cabinet (PBC) for the

allocation of drafting resources

according to the legislation program

determined by that Committee.

FPC attends PBC meetings

(usually held on the Monday of

each parliamentary sitting week) to

answer questions and provide

advice about how the drafting of

Bills is progressing.

Senior management team

180 FPC takes responsibility for

most of the decision-making within

OPC on strategic and high-level

management issues. FPC is

assisted in this by the other

members of the senior

management team (SMT).

181 The SMT consists of:

 First Parliamentary Counsel (Mr

Peter Quiggin);

 the two Second Parliamentary

Counsel (Ms Marina Farnan

and Mr Iain McMillan);

 the Principal Legislative

Counsel (Mr John Leahy); and

 the General Manager, who is

also the Chief Finance Officer

(Ms Susan McNeilly).

182 The SMT meets regularly.

Issues that the team considered

during the year included:

 changes to OPC’s structure

and staffing matters arising

from the changes;

 planning for new

accommodation to co-locate

staff;

 State of the Service survey

results;

 review of fees;

 recruitment policies and

strategies;

 corporate governance;

 enterprise bargaining;

 risk management;

 financial management;

 workforce planning;

 training and development of

drafters; and

 internal policies, practices and

processes.

Chapter 3—Management and accountability

39

Workplace Consultative Committee

183 OPC places importance on

the involvement of staff in the

decision-making process. This is

achieved through the Workplace

Consultative Committee (WCC).

184 The membership for the

WCC during 2013-2014 consisted

of the members of the senior

management team and 8 employee

representatives—one representing

each of 3 drafter workgroups, 2

representing the publications

workgroup, 2 representing the

corporate services workgroup, and

1 general employee representative.

One of the health and safety

representatives also attends

meetings.

185 The WCC is the primary

method for consultation with staff

on matters other than drafting-related matters. The WCC meets

every 6 weeks and is chaired by a

staff representative. The WCC has

proved to be an effective method of

ensuring staff can contribute to

decision-making within OPC in an

efficient manner.

Audit Committee

186 OPC’s Audit Committee

consisted of Mr Kevin Patchell, who

was the Chair and external to OPC,

together with two SES drafters who

hold office for 2 years at a time. In

addition, there is a standing

invitation to the Australian National

Audit Office to participate in the

Audit Committee meetings. The

General Manager and the Director

Finance also attend meetings.

187 Mr Kevin Patchell finished a

6 year term on the Audit Committee

at the end of September 2013. The

financial knowledge and experience

Mr Patchell brought to the role of

Chair was invaluable.

188 OPC engaged Mr Dale

Boucher as the new Chair of the

Audit Committee for an initial period

of 2 years. Mr Boucher brings to the

role substantial and high level

public sector experience, and

substantial experience as a Chair,

including on Audit Committees.

189 During the year, the

activities of the Audit Committee

included:

 providing advice to FPC and

the General Manager on the

preparation and review of

OPC’s Financial Statements;

and

 review of internal audit reports.

Chapter 3—Management and accountability

40

Other committees

190 Since the establishment of

the WCC, the need for other office

committees has diminished.

Staff meetings

191 As a result of the transfer of

functions, OPC staff are now in two

locations in Canberra. Regular staff

meetings are held monthly except

in January and July. Usually,

separate meetings are held for the

staff in each location. Occasionally,

a whole-of-office meeting is held in

place of the separate meetings.

192 The staff meeting is

primarily an information meeting,

and the agenda provides for FPC

and other members of OPC to

report on specified aspects of OPC

operations and developments, such

as the progress of the legislation

program, staff movements and IT

issues.

Risk management and fraud control

193 During the year, the review

of OPC’s risk management

framework was completed to take

account of the transfer of functions.

A further review and update of this

framework will be completed early

in 2014-2015 to ensure compliance

with the new Commonwealth Risk

Management Policy.

194 OPC has in place a Fraud

Control Policy and Plan and

appropriate fraud control

mechanisms that meet the needs of

OPC and comply with the

Commonwealth Fraud Control

Guidelines for the 2013-2014

financial year, including reporting

requirements. OPC has reviewed

the Fraud Control Policy and Plan

during the year. The review

included an assessment of risks.

No additional fraud control

initiatives were undertaken as a

result of the review.

195 OPC has in place

appropriate fraud prevention,

detection, investigation, reporting

and data collection procedures and

processes that meet OPC’s specific

needs and comply with the

Commonwealth Fraud Control

Guidelines.

196 A number of internal

policies and procedures have been

developed and updated to support

and complement our Chief

Executive Instructions, Risk

Management Policy and Plan, and

Fraud Control Policy and Plan.

Chapter 3—Management and accountability

41

197 An integral element of

OPC’s risk management framework

is business continuity management.

Operational risks

198 The major areas of

operational risk are:

 matters affecting the availability

of drafting resources; and

 matters affecting the availability

of OPC’s information

technology (IT) system.

Drafting resources

199 To ensure the availability of

drafting resources, OPC has

adopted measures to address both

short-term and long-term

operational risks.

200 To address short-term

risks, steps are taken to ensure that

OPC’s operations are not seriously

affected by the absence of

individual drafters. The allocation of

drafting projects to teams of 2 or

more drafters provides some

insurance against resource

problems caused by unexpected

absences of drafters. The team

arrangements ensure that current

projects can continue in the

absence of a team member.

Management monitors the leave

plans of all drafting staff to ensure

that there are no unacceptable

shortages of drafting resources

caused by planned leave.

201 Addressing long-term risks

of the availability of drafting

resources is a substantially more

complex issue. It takes

approximately 5 to 6 years to train a

legislative drafter to the point at

which they can take sole

responsibility for the drafting of

Bills. Consequently, ensuring the

availability of suitable drafting

resources requires all of the

following:

 a recruitment program to

ensure that high quality lawyers

are recruited;

 an approach to training that

ensures that recruits are given

the opportunity to develop high-level drafting skills in the

shortest possible time; and

 the retention of trained drafters

through the provision of

interesting work, good career

opportunities, attractive working

conditions and appropriate

remuneration.

202 In previous years, OPC’s

turnover of drafting staff has been

extremely low. This very low

turnover (about 3% per annum)

enabled OPC to build up a strong

group of assistant drafters.

Chapter 3—Management and accountability

42

203 During the year, OPC

undertook a process to reduce the

number of Assistant Parliamentary

Counsel Grade 1 and 2 staff. This

was due to a reduction in funding

and to ensure that the structure of

OPC’s drafting groups was suitable

to meet the future needs of the

Office.

Information technology systems

204 OPC is very dependent

upon its IT systems. These systems

provide substantial efficiencies and

are integral to the work of all OPC

staff. Therefore, any interruption to

the availability of the IT systems

would have a major effect upon

OPC.

205 Comprehensive risk

management and contingency

plans have been developed for

OPC’s IT systems. This has

ensured very few interruptions to

the availability of OPC’s IT

systems. In addition, OPC is

prepared for the possibility of major

damage to our IT systems.

206 OPC maintains an off-site

server facility. This provides OPC

with a high level of protection

against loss of IT services and

plays a key role in OPC’s Business

Continuity Management Plan.

207 OPC has reviewed the risk

management and contingency

plans as part of the work on

business continuity management

for the whole of OPC.

208 OPC continued to provide

secure remote access to OPC’s IT

systems for staff who requested it.

This enables staff to perform some

work from home and when

travelling and also provides a

contingency arrangement if OPC’s

buildings are unavailable.

209 OPC migrated its internet

gateway to a new provider as part

of the whole-of-government internet

gateway reduction program. This

has increased the internet

availability to 99.95%. This is

important for a number of systems

and will be particularly important

when ComLaw hosting is moved to

the cloud.

Maintenance of ethical standards

210 OPC has taken steps to

ensure that staff are aware of their

rights and obligations under the

Public Service Act 1999. These

include training courses for all staff

run by senior management and the

circulation of materials throughout

the office.

Chapter 3—Management and accountability

43

211 Formal procedures have

been established for determining

breaches of the Code of Conduct,

and for dealing with public interest

disclosures.

212 The APS Values, Code of

Conduct, Chief Executive

Instructions and other material

relevant to ethical conduct are

incorporated, as appropriate, into

OPC policies and guidelines.

213 All new employees to OPC

are given a copy of the relevant

material during their induction

program including information

about the Australian Public Service

Commission’s Ethics Advisory

Service. In addition, new

employees are provided with the

APS online induction program.

214 OPC sets very high ethical

standards. OPC’s policy on the

acceptance of gifts and hospitality

appears to be more restrictive than

that of most other Commonwealth

Government agencies. This policy

applies equally to members of the

SMT and to other staff.

SES remuneration

215 During the year,

remuneration for all SES staff was

determined under the OPC SES

Enterprise Agreement 2011-2014.

216 Under the Enterprise

Agreement, SES staff are entitled

to the same increases in their base

salary as are payable to non-SES

staff. In addition, the allowances

previously paid to SES staff have

been rolled into their base salary.

On top of their base salary and in

recognition of the value to OPC of

retaining trained and experienced

senior drafters, SES drafters are

entitled to a loading that depends

on the particular staff member’s

drafting experience. The

experience loading is subject to the

staff member concerned being

appraised as at least “fully

effective” each year.

External scrutiny

217 There have been no judicial

decisions or decisions of

administrative tribunals that have

had, or may have, a significant

direct impact on the operations of

OPC.

218 There have been no reports

on the operations of OPC by the

Auditor-General (other than the

report on financial statements), a

parliamentary committee or the

Commonwealth Ombudsman.

Chapter 4—Management of human resources

44

Chapter 4—Management of human resources

Survey of OPC staff

219 During May and June 2014

the Australian Public Service

Commission (APSC) conducted the

2014 State of the Service

Employee Census. Eighty seven

per cent of OPC staff participated in

the survey ensuring that the results

that we obtained were

representative.

220 This was the second survey

for OPC that included staff who

transferred from the Attorney-General’s Department to OPC in

October 2012. Overall OPC’s

results for 2014 were largely

consistent with the 2013 results,

and generally higher than the APS

results for 2013.

221 The reporting below

compares OPC’s results (from staff

who responded to the survey) for

2014 to OPC’s results for 2013, and

where available, to the APS results

for 2013. Where

percentages/scores are set out

below, the result in bold is the OPC

percentage/score for 2014, the

result in normal font is the OPC

percentage/score for 2013 and the

result in italics is the APS

percentage/score for 2013.

Working environment

222 75% of OPC staff agreed

that they were proud to work at

OPC (compared to 76% for OPC

and 62% for the APS in 2013); and

83% of OPC staff were satisfied

with their non-monetary

employment conditions, such as

leave, flexible work arrangements

and other benefits (compared to

88% for OPC and 79% for the APS

in 2013).

Employee engagement

223 Employee engagement

(predictors of productivity and

loyalty) covers 4 areas—employee

engagement with: the job they do;

the team to which they belong; their

immediate supervisor; and the

agency to which they belong. The

levels of staff engagement in OPC

for 2014 were similar to those for

the previous year and higher than

the APS results across all areas in

2013.

224 Across the 4 areas, OPC

rated (score out of 10) between 6.4

and 7.4 (compared to 6.4 and 7.3

for OPC, and 5.7 and 7.1 for the

APS in 2013).

Chapter 4—Management of human resources

45

Learning and development

225 72% of OPC staff were

satisfied with access to effective

learning and development. This

compared favourably with the 2013

results (66% for OPC and 61% for

the APS).

Leadership: supervisors and senior leaders

226 In 2014, OPC staff were

more satisfied with their immediate

supervisor’s leadership capabilities

across all areas compared with the

APS results for 2013, and except in

one area (communicates with

influence), the 2014 results were

also higher than the OPC results in

2013 across all areas (between:

67% and 86%; 64% and 84%; and

63% and 76%).

227 Overall, the 2014 rating by

OPC staff for satisfaction with SES

leadership was consistent with the

2013 rating. In comparison to the

APS results for 2013, OPC staff

rated SES leadership between 15

and 32 percentage points higher.

Health, safety and wellbeing

228 Another area where the

results were quite pleasing was

employee attitudes to health, safety

and wellbeing in the workplace.

This is particularly important during

a period of change for OPC.

229 In 2014, OPC staff agreed

that: the people in their workgroup

were committed to workplace safety

(84%, 83% and 83%); OPC

genuinely cares about employees

being healthy and safe at work

(74%, 76% and 64%); and,

considering their work and life

priorities, that they were satisfied

with their work-life balance (80%,

76% and 70%).

APS Values

230 Staff indicated that people

in OPC act in accordance with the

APS Values. The 2014 results for

senior leaders, supervisors and

workgroup colleagues were in the

range of 88% to 99%, compared to

83% to 89% for OPC and 69% to

88% for the APS in 2013.

Conclusion

231 Staff participation in these

surveys is a very useful exercise as

the results are directly comparable

to those of the APS as a whole.

The survey results provide

information on areas in which we

can improve.

232 Although the 2014 results

for senior leaders’ effectiveness in

Chapter 4—Management of human resources

46

leading and managing

organisational change (57%, 65%

and 41%), and engaging with staff

on how to respond to future

challenges (57%, 59% and 42%)

were much higher than the 2013

APS-wide results, they declined

against prior year results for OPC.

233 As there has been a lot of

change for OPC in recent years,

this is a key area that the Senior

Management Team needs to focus

on.

Management and development of human resources

Training and development

234 OPC sees training and

development as contributing

significantly to the consolidation

and improvement of its capability.

OPC undertakes its training and

development activities in order to:

 make the best use of human

resources available to OPC;

and

 enhance career and

development opportunities for

all staff.

Staff development arrangements

235 OPC’s Staff Development

Plan establishes the following

institutional arrangements for

OPC’s staff development activities:

 a senior drafter is designated

Director of Drafter Training;

 the Director of Drafter Training

and the General Manager have

joint responsibility for staff

development matters generally

(including monitoring

expenditure on staff

development activities);

 staff development decisions in

relation to particular staff are,

by and large, made by

supervisors jointly with either

the Director of Drafter Training

for staff who are drafters or the

General Manager for other

staff;

 staff development decisions are

made by reference to the

development needs of staff as

identified in the individual

development plans for staff that

are settled as part of the

performance management

programs;

 the Director of Drafter Training

and the General Manager have

the function of reviewing the

Staff Development Plan to

Chapter 4—Management of human resources

47

make sure it is up-to-date and

properly focused on OPC’s

needs;

 the Director of Drafter Training

has the function of ensuring

that a rolling program of

internally provided training for

drafters occurs.

236 These arrangements have

the advantages of:

 involving supervisors in all

aspects of staff development

decision-making (including

resource implications);

 linking staff development

closely to the performance

management programs;

 ensuring a high level of

consistency in staff

development decisions;

 ensuring there is proper equity

and balance in the resources

devoted to training staff who

are drafters and those devoted

to training other staff; and

 ensuring that the program of

internally provided training for

drafters is properly focused,

well planned and regular.

Program of internally provided training for drafters

237 In consultation with drafters

in OPC, a program of internally

provided training for drafters has

been developed. The program

involves a mix of presentations by

drafters within OPC and external

presenters (with an emphasis on

the areas of law that hold special

interest and importance for

drafters).

238 The program this year

emphasised internal presentations

facilitating the recent transfer of

additional functions to OPC.

239 During the year, the

program included presentations on:

 reducing complexity;

 Constitutional issues in

instruments;

 jurisdiction of courts;

 the Public Governance,

Performance and Accountability

Act 2013;

 application and transitional

issues;

 section 4 of the Acts

Interpretation Act 1901;

 subdelegation;

 simplified outlines;

 incorporation by reference;

 use of the narrative style;

 instrument making processes,

templates and billing;

 running meetings;

 project management;

Chapter 4—Management of human resources

48

 risk management in Bill

drafting;

 ComLaw; and

 various other technical drafting

and IT issues.

240 Drafters also attended

externally provided sessions on

topics relevant to deregulation, by

presenters including Professor

Malcolm Sparrow, Professor John

List, Dr David Halpem, Professor

Max Bazerman and Professor

Michael Hiscox.

241 OPC drafters also

participated in a range of other

external conferences and seminars

organised by the Australian

Government Solicitor, leading

academic institutions and law firms.

Staff undertaking higher studies under Studies Assistance arrangements

242 During the year, 2 OPC

staff members have accessed

OPC’s Studies Assistance

arrangements to pursue higher

studies relevant to their current

work and career development.

Information technology training

243 OPC’s legislative drafting

capability relies heavily on our

staff’s proficiency with IT to

undertake research and to prepare

Bills and legislative instruments for

the Australian Government.

244 During the year, OPC

provided substantial training in IT.

Most of that training was provided

in-house, enabling it to be both

cost-effective and responsive to the

particular needs of staff.

245 The feedback provided by

staff attending the various training

sessions was resoundingly positive

in terms of the content and

presentation of the training and its

relevance to current work.

246 OPC’s professional IT staff

also undertook external training

during the year to ensure that their

skills were maintained.

Productivity gains

247 Productivity gains have

been achieved through:

 the review and continued

updating of finance and other

Corporate Services processes;

 improved liaison with key

stakeholders;

 continued improvements

through the application of IT;

and

Chapter 4—Management of human resources

49

 cooperative agency

procurement of property and

services.

Staffing statistics

248 The staffing statistics for

OPC at 30 June 2014 are in

Appendix B.

249 All staff employed by OPC

are located in the ACT.

Coverage of workplace agreements

250 All OPC employees are

covered by Enterprise Agreements

which commenced on 15 July 2011

and run for 3 years.

Salary ranges

251 The full range of salaries

available under OPC’s Enterprise

Agreements as at 30 June 2014 is

set out in Appendix B.

Non-salary benefits for APS employees

252 SES staff have the option

of a fully maintained, privately

plated vehicle or an allowance in

lieu, and are provided with free on-site parking.

253 Staff occupying designated

positions closely involved with the

legislation process receive a

telephone allowance to cover the

cost of any work-related calls. SES

staff have had an amount included

in their salary to replace this

entitlement, on condition that they

maintain a home phone and allow

the number to be circulated to any

person who may need it in the

course of business.

254 To support the legislative

drafting and associated work of

OPC, staff can obtain remote

access to OPC’s IT system.

Recognising that staff need to have

internet access to use remote

access, OPC pays an allowance to

remote access users.

255 Other non-salary benefits

available to staff were:

 employer-sponsored

superannuation;

 the cost of prescription

spectacles or other eyewear up

to the value of $500 every 2

years or each time a new

prescription is issued if that

happens sooner;

 an allowance of $300 to eligible

staff to spend on health and

wellbeing activities or

equipment; and

 dependant care costs arising

from working arrangements that

Chapter 4—Management of human resources

50

are required in specific

circumstances.

Performance pay

256 There is no provision for

performance pay for APS

employees in OPC’s Performance

Management Programs.

257 However, OPC has

comprehensive Performance

Management Programs covering all

staff under which salary

advancement is dependent on staff

being rated as at least “fully

effective”. An experience loading

for SES staff is also dependent on

those SES staff being rated as at

least “fully effective”.

Staff changes and recruitment

258 During the year:

 Ms Bronwyn Livermore and Ms

Naomi Carde were promoted to

Senior Assistant Parliamentary

Counsel (SES Band 1); and

 the following staff were

recruited/promoted:

- one ComLaw Senior

Developer;

- one Assistant IT Director;

- one Senior IT Officer; and

- one Assistant Publishing

Officer.

Workforce planning

259 OPC’s workforce planning

document is an integral part of our

broader planning processes and

ensures that we have a workforce

capable of delivering on the

objectives of OPC now and into the

future.

260 OPC’s strategies for

ensuring that it has sufficient

human resources to maintain its

legislative drafting capability

include:

 providing support for the

Director of Drafter Training to

coordinate the training and

development of drafters;

 giving assistant drafters

intensive on-the-job training in

legislative drafting as well as

formal training in other relevant

areas (such as IT);

 supporting each assistant

drafter appointed to act as a

senior drafter by providing

access to another senior drafter

as a mentor;

 recognising that the

contribution individual drafters

make to achieving OPC’s

outcome increases as their

level of drafting experience

increases; and

Chapter 4—Management of human resources

51

 giving staff who do not have

access to flex-time access to

flexible working hours.

Effect of workplace agreements on staff retention

261 Retention of drafting staff

has been aided by:

 providing more flexible leave

arrangements, including annual

leave and personal/carer’s

leave;

 recognising the value of

experienced senior drafters by

providing for payment of an

experience loading;

 allowing some time off in

recognition of the excess hours

often worked by drafters

(without providing a full flex-time scheme for drafters);

 providing flexible working hours

arrangements that allow

drafters to better manage their

work and personal

commitments; and

 permitting part-time

arrangements for drafters (and

other staff) to allow them to

balance their work and

personal commitments (these

arrangements are available not

only to staff with caring

responsibilities, but also to any

staff member whose wish to

work part-time can be

accommodated by operational

requirements).

Workplace diversity

OPC’s Workplace Diversity Program

262 The objectives of OPC’s

Workplace Diversity Program are:

 to raise awareness of

workplace diversity and of the

value of a diverse workforce to

OPC;

 to ensure that workplace

structures, conditions, systems

and procedures foster diversity

and allow employees to

manage work and personal life;

 to ensure equity in employment

is promoted and upheld;

 to continue to provide

opportunities for employees to

participate and contribute to the

work of OPC; and

 to prevent and eliminate

bullying, harassment and

unlawful discrimination in the

workplace.

263 At the end of 2013-2014,

the APSC conducted the 2014

State of the Service Employee

Census. Eighty seven per cent of

OPC’s employees participated in

the survey.

Chapter 4—Management of human resources

52

264 The following table shows

OPC’s results against the

performance indicators for each

objective:

Objectives and Performance Indicators (PI)

% Agreed

OPC PI

1 The people in my workgroup are accepting of people from diverse backgrounds.

My supervisor is accepting of people from diverse backgrounds.

OPC is committed to creating a diverse workforce.

81

81

42*

75

75

75

2 Employees are satisfied with their work-life balance in OPC.

Employees are satisfied with their ability to access and use flexible working arrangements.

OPC’s workplace culture supports employees to achieve a good work-life balance.

80

76

70

75

75

75

3 OPC routinely applies merit in decisions

46* 75

Objectives and Performance Indicators (PI)

% Agreed

OPC PI

regarding engagement and promotion.

4 Communication between senior leaders and staff is effective.

Employees are satisfied with the workplace attributes that impact on job satisfaction.

61*

78

75

75

5 I would recommend OPC as a good place to work.

Employees indicate that they have not been subjected to bullying or harassment.

60*

93

75

90

265 OPC’s results from the

survey indicate that in some areas

OPC is meeting the objectives of

the Workplace Diversity Program.

266 However, there are some

key areas where the results are

significantly below OPC’s survey

results from 2012 and earlier (these

are indicated by an * against the

performance indicator in the table

above). There continued to be a

Chapter 4—Management of human resources

53

substantial number of neutral

responses of “neither agree nor

disagree” for these survey

questions which may mean that

staff are unsure about these

attributes of OPC.

267 These are areas that OPC

is already working to address and

will look to improve on in the

coming year.

OPC’s Reconciliation Action Plan

268 OPC is committed to the

process of reconciliation between

Indigenous and other Australians

and recognises the importance of

reconciliation to Australia’s future.

269 OPC’s Reconciliation

Action Plan (RAP) was developed

in consultation with staff to promote

reconciliation both within OPC and

across the broader Australian

community. OPC’s RAP includes

strategies for the recruitment and

employment of Indigenous

Australians and the promotion of an

understanding of Indigenous culture

and issues among all our staff.

270 During the year, the

activities undertaken as part of the

RAP included:

 attendance at Attorney-General’s Portfolio

Reconciliation Committee

meetings and forums, and

participation in relevant working

groups;

 displaying of Indigenous

Australian art in public areas of

OPC; and

 provision of information on

OPC’s RAP to all new

employees as part of their

induction program.

Breastfeeding Friendly Workplace accreditation

271 OPC has undertaken a

commitment to provide a supportive

environment for breastfeeding

women.

272 OPC staff are located in 2

premises, in Barton and Deakin.

OPC first achieved accreditation as

a “Breastfeeding Friendly

Workplace” for our Barton facilities

in 2010. During the year, OPC also

received accreditation for the

Deakin premises.

273 OPC maintains

accreditation as a “Breastfeeding

Friendly Workplace” from the

Australian Breastfeeding

Association by providing:

 guidance to staff about our

workplace facilities and

practices that support women

Chapter 4—Management of human resources

54

to meet both their work and

family commitments;

 appropriate facilities that double

as parenting rooms; and

 information to staff about our

breastfeeding policies in our

induction program and a

“comeback pack” for staff

commencing maternity leave.

Changes to disability reporting in annual reports

274 Since 1994,

Commonwealth departments and

agencies have reported on their

performance as policy adviser,

purchaser, employer, regulator and

provider under the Commonwealth

Disability Strategy. In 2007-2008,

reporting on the employer role was

transferred to the Australian Public

Service Commission’s State of the

Service Report and the APS

Statistical Bulletin. These reports

are available at www.apsc.gov.au.

From 2010-2011, departments and

agencies were no longer required

to report on these functions.

275 The Commonwealth

Disability Strategy has been

overtaken by the National Disability

Strategy 2010-2020, which sets out

a ten-year national policy

framework to improve the lives of

people with disability, promote

participation and create a more

inclusive society. A high level two-yearly report will track progress

against each of the six outcome

areas of the Strategy and present a

picture of how people with disability

are faring. The first of these reports

will be available in late 2014, and

can be found at www.dss.gov.au.

Work health and safety

Policy

276 OPC commits itself to

taking, at all times, reasonably

practicable steps to ensure the

health and safety of its workers

(staff and contractors) and visitors

to the workplace. In ensuring their

health and safety, OPC:

 provides and maintains a

healthy and safe work

environment;

 consults and cooperates with

its workers, their health and

safety representatives, and

other duty holders, to achieve a

healthy and safe workplace;

 complies with the Work Health

and Safety Act 2011 (WHS

Act) as a minimum standard,

and implements in full the

requirements of the WHS Act

and its regulations;

 ensures that appropriate

organisational arrangements

Chapter 4—Management of human resources

55

are in place to facilitate the

implementation of the WHS

Act;

 provides appropriate resources

to ensure that necessary health

and safety programs and

activities are established and

maintained; and

 informs all workers about

relevant health and safety

matters and provides that

information in languages other

than English where this might

be necessary.

Health and safety committee

277 The WHS Act requires the

establishment of a health and

safety committee at the request of a

health and safety representative or

5 or more workers at the workplace.

If a health and safety committee is

not required to be established,

other consultation procedures can

be established for a workplace.

278 In OPC, the WCC fulfils the

requirements of the WHS Act with

respect to consultation with

workgroups on health and safety

matters. In addition, the WCC has

incorporated the functions of a

health and safety committee as a

standing agenda item. One of the

health and safety representatives

attends each WCC meeting.

Initiatives taken during the year

279 As part of Mental Health

Week, OPC staff participated in a

one hour mental health

organisational awareness

workshop, delivered by a

beyondblue facilitator.

280 A physiotherapist or

occupational therapist visited OPC

regularly to conduct workstation

assessments. They checked

whether furniture and equipment

were ergonomically sound and

discussed any problems with

members of staff.

281 During the year, OPC paid

for influenza vaccinations for

interested staff.

282 OPC maintained a policy of

requiring staff to take an eye test,

paid for by OPC, once every 2

years. OPC also provided

reimbursement to staff for

prescription eyewear up to the

value of $500 required as a result

of the eye tests.

283 During the year, an

allowance of $300 was paid to

eligible staff to spend on health and

wellbeing activities or equipment.

Chapter 4—Management of human resources

56

284 The induction program for

new members of staff includes a

session specifically aimed at

enhancing their awareness of the

importance of health and safety

issues in the workplace and

emphasising the responsibilities of

both staff and management in that

regard.

285 OPC maintains an

appropriate collection of

publications relating to health and

safety in our library.

Health and safety outcomes

286 The following outcomes

were achieved as a result of

initiatives taken during the year or

in past years:

 improvements were made to

workplace safety;

 comprehensive workstation

assessments by qualified

health professionals ensured

good outcomes for staff

returning to work from injuries;

and

 staff awareness of the

importance of health and safety

in the workplace was raised.

287 Although hard to measure,

OPC considers that modest outlays

on health promotion activities

provide good value for money,

given the potential lost work time

annually due to the effects of health

issues.

Notifiable incidents

288 There were no notifiable

incidents during the year requiring

notification under section 38 of the

WHS Act.

Investigations

289 OPC has not been the

subject of any investigation and no

notices have been issued to OPC

during the year under Part 10 of the

WHS Act.

Chapter 5—Purchasing and consultants

57

Chapter 5—Purchasing and consultants

Purchasing

290 Generally, during the year,

OPC’s purchasing was confined to

simple procurement processes.

Given the nature and extent of

OPC’s procurement activity, there

is no current need to establish an

accredited procurement unit within

OPC.

291 OPC continues to consider

cooperative agency procurement as

an option when procuring property

and services. A number of

contracts are in place where a

cooperative arrangement has been

used, with OPC benefiting from

support and savings, and reduced

procurement costs, by accessing

contracts from larger portfolio

agencies.

292 OPC has complied with the

core policies and practices as

identified in the Commonwealth

Procurement Rules and OPC’s

Chief Executive Instructions and

Office Procedural Circulars.

293 OPC’s Annual Procurement

Plan for the 2014-2015 financial

year was published on the

AusTender website at

www.tenders.gov.au in June 2014.

Consultants

294 OPC engages consultants

where it lacks specialist expertise

or when independent research,

review or assessment is required.

Consultants are typically engaged

to: investigate or diagnose a

defined issue or problem; carry out

defined reviews or evaluations; or

provide independent advice,

information or creative solutions to

assist OPC’s decision-making.

295 Prior to engaging

consultants, OPC takes into

account the skills and resources

required for the task, the skills

available internally, and the cost-effectiveness of engaging external

expertise. The decision to engage a

consultant is made in accordance

with the Financial Management and

Accountability Act 1997, related

regulations, the Commonwealth

Procurement Rules and relevant

internal policies.

296 During 2013-2014, 4 new

consultancy contracts for valuation,

financial assessment, and property

assessment and evaluation

services were entered into,

involving total actual expenditure of

$89,986.56 (including GST).

Chapter 5—Purchasing and consultants

58

297 The procurement method

for the 4 consultancy contracts was

by limited tender as the values of

the services to be procured were

under the relevant procurement

threshold.

298 In addition, one ongoing

consultancy contract for internal

audit services was active during the

2013-2014 year, involving total

actual expenditure of $42,445.27

(including GST).

299 Annual reports contain

information about actual

expenditure on contracts for

consultancies. Information on the

value of contracts and

consultancies is available on the

AusTender website at

www.tenders.gov.au or from the

OPC Documents menu on OPC’s

website at www.opc.gov.au.

Chapter 6—Miscellaneous

59

Chapter 6—Miscellaneous

Freedom of information

300 Agencies subject to the

Freedom of Information Act 1982

(FOI Act) are required to publish

information to the public as part of

the Information Publication Scheme

(IPS). This requirement is in Part II

of the FOI Act and has replaced the

former requirement to publish a

section 8 statement in an annual

report. Each agency must display

on its website a plan showing what

information it publishes in

accordance with the IPS

requirements.

Advertising and market research etc.

301 The following information is

required to be given by

section 311A of the Commonwealth

Electoral Act 1918.

302 During 2013-2014, no

money was paid by, or on behalf of,

OPC to any advertising agency,

market research organisation,

polling organisation, direct mail

organisation or media advertising

organisation.

Ecologically sustainable development and environmental performance

303 Reporting required by

section 516A of the Environment

Protection and Biodiversity

Conservation Act 1999 is set out in

Appendix C.

Additional information

304 The contact officer for

additional information about OPC is

the General Manager, Ms Susan

McNeilly, who can be contacted by

telephone on (02) 6270 1486, by

fax on (02) 6270 1403 and by email

at admin@opc.gov.au.

305 OPC’s website address is

www.opc.gov.au. This report is

available on that site at

www.opc.gov.au/about/documents.

htm.

Appendix A—Agency resource statement and Expenses for outcome

60

Appendix A—Agency resource statement and Expenses for outcome

Agency resource statement

Actual available approp-riation for

2013-14 ($’000)

Payments made 2013-14 ($’000)

Balance remaining 2013-14 3

($’000)

ORDINARY ANNUAL SERVICES

Departmental appropriation

Prior year departmental appropriation 1

11,826 - 11,826

Departmental appropriation 2 16,327 13,983 2,344

s 31 relevant agency receipts 6,205 6,205 -

Total ordinary annual services 34,358 20,188 14,170

Total net resourcing for agency 34,358 20,188 14,170

1

Adjusted to take into account that on 5 August 2013 the Finance Minister

issued the Instrument to Reduce Appropriations (No. 1 of 2013-14) which

reduced the 2012-13 departmental appropriation by $38,000. This was

recognised as a return of contributed equity in the 2013-14 Financial

Statements.

2 Includes an amount of $0.288 million for the Departmental Capital Budget. For

accounting purposes, this amount has been designated as “contributions by

owners”.

3

The remaining balance is made up of the operating surplus attributable to

OPC, unspent Departmental Capital Budget and outstanding liabilities.

Appendix A—Agency resource statement and Expenses for outcome

61

Expenses for Outcome 1 Outcome 1—A body of Commonwealth laws and instruments that give effect to intended policy, and that are coherent, readable and readily accessible, through the drafting and publication of those laws and instruments

Budget 2013-14 1

($’000)

Actual expenses 2013-14 ($’000)

Variance 2013-14 ($’000)

(a) (b) (a) - (b)

Program 1.1: Legislative drafting and publication

Departmental expenses

Ordinary annual services (Appropriation Bill

No. 1) 15,416 13,765 1,651

Revenues from independent sources (section

31) 5,512 6,652 (1,140)

Expenses not requiring appropriation in the

budget year 440 626 (186)

Total for Program 1.1 21,368 21,043 325

Total expenses for Outcome 1 21,368 21,043 325

Actual 2012-13

Actual 2013-14

Average staffing level (number) 113.9 103.4

1

Estimated expenses as disclosed in the 2014-15 Portfolio Budget Statements.

Appendix B—Staffing statistics and salary ranges

62

Appendix B—Staffing statistics and salary ranges

Ongoing and non-ongoing employees as at 30 June 2014 As at 30 June 2014, OPC had 1 casual employee.

As at 30 June 2013, OPC had 9 non-ongoing employees, including 5 casual

employees.

Full-time and part-time employees as at 30 June 2014

Category

Total staff Full-time Part-time

13 14 13 14 13 14

Statutory office holders

3 3 3 3 0 0

SES Band 2

6 6 5 6 1 0

SES Band 1

16 1 14

5 12 11 4 3

Assistant Parliamentary Counsel Grade 3 24

2 20

6 17 15 7

9

5 11

Assistant Parliamentary Counsel Grade 2 8

3 6 8 4 0 2

Assistant Parliamentary Counsel Grade 1 3 3

7 2 2 1 1

Executive Level 2

5 6 4 6 1 0

Executive Level 1

9 7 8 7 1 0

OPC Broadband B (APS 4 - 6)

50 4 43

8 40 39 10

10

4

OPC Broadband A (APS 1 - 3)

1 0 1 0 0 0

Totals 125 108 100 93 25 15

1 Includes 2 employees on maternity leave. 2 Includes 3 employees on leave without pay. 3 Includes 1 employee on maternity leave. 4 Includes 3 employees on maternity leave and 2 employees on leave without pay. 5 Includes 1 employee on maternity leave and 1 employee on leave without pay. 6 Includes 1 employee on leave without pay. 7 Includes 1 employee on maternity leave and 1 employee on temporary transfer. 8 Includes 2 employees on maternity leave, 1 employee on leave without pay and 2

employees on temporary transfer. 9 Includes 1 casual employee. 10 Includes 4 casual employees. 11 Includes 1 casual employee.

Appendix B—Staffing statistics and salary ranges

63

Male and female employees as at 30 June 2014

Category

Total staff Male Female

13 14 13 14 13 14

Statutory office holders

3 3 2 2 1 1

SES Band 2

6 6 4 4 2 2

SES Band 1

16 1 14

5 4 2 12 12

Assistant Parliamentary Counsel Grade 3 24

2 20

6 13 11 11 9

Assistant Parliamentary Counsel Grade 2 8

3 6 4 3 4 3

Assistant Parliamentary Counsel Grade 1 3 3

7 0 0 3 3

Executive Level 2

5 6 2 4 3 2

Executive Level 1

9 7 4 4 5 3

OPC Broadband B (APS 4 - 6)

50 4 43

8 10 10 40 33

OPC Broadband A (APS 1 - 3)

1 0 0 0 1 0

Totals 125 108 43 40 82 68

1 Includes 2 employees on maternity leave. 2 Includes 3 employees on leave without pay. 3 Includes 1 employee on maternity leave. 4 Includes 3 employees on maternity leave and 2 employees on leave without pay. 5 Includes 1 employee on maternity leave and 1 employee on leave without pay. 6 Includes 1 employee on leave without pay. 7 Includes 1 employee on maternity leave and 1 employee on temporary transfer. 8 Includes 2 employees on maternity leave, 1 employee on leave without pay and 2

employees on temporary transfer.

Appendix B—Staffing statistics and salary ranges

64

Salary ranges as at 30 June 2014

Category

Minimum ($)

Maximum ($)

Salary ranges—SES positions

First Assistant Parliamentary Counsel (SES Band 2), Senior Assistant Parliamentary Counsel (SES Band 1) and General Manager (SES Band 1)

147,234 243,318

Salary ranges—Non-SES drafting positions

Assistant Parliamentary Counsel Grade 3 110,838 133,438

Assistant Parliamentary Counsel Grade 2 96,356 117,001

Assistant Parliamentary Counsel Grade 1 59,413 110,838

Salary ranges—Non-SES non-drafting positions

Executive Level 2 110,838 133,438

Executive Level 1 96,356 117,001

OPC Broadband B:

APS 6 75,824 87,100

APS 5 70,201 74,443

APS 4 62,940 68,340

OPC Broadband A:

APS 3 56,473 60,953

APS 2 49,580 54,983

APS 1 43,812 48,420

Appendix C—Reporting required by section 516A of the Environment Protection and Biodiversity Conservation Act 1999

65

Appendix C—Reporting required by section 516A of the Environment Protection and Biodiversity Conservation Act 1999

How OPC’s activities accorded with principles of ecologically sustainable development

1 OPC’s activities are fully

described in Chapter 1 of this

report.

2 Given that OPC did not

administer any legislation during

the year and OPC’s activities were

undertaken largely on the

instructions of clients, there was

little scope for OPC’s activities to

give effect to the principles of

ecologically sustainable

development listed in section 3A of

the Environment Protection and

Biodiversity Conservation Act 1999.

3 However, OPC staff took

opportunities in their drafting work

to draw the attention of instructors

to the long-term and short-term

ecological implications of legislation

embodying their instructions. This

accords with the first of the

principles listed in that section

(“decision-making processes

should effectively integrate both

long-term and short-term economic,

environmental, social and equitable

considerations”).

Appropriations Act outcome contributing to ecologically sustainable development

4 OPC has only one

Appropriations Act outcome: “A

body of Commonwealth laws and

instruments that give effect to

intended policy, and that are

coherent, readable and readily

accessible, through the drafting and

publication of those laws and

instruments”. It is difficult to

conclude that this outcome makes

any identifiable contribution to

ecologically sustainable

development.

Effect of OPC’s activities on the environment

5 OPC’s operations have

direct and indirect effects on the

environment, particularly through

the use of energy, transport, office

equipment and materials in office

equipment. The following table,

which relates to some of those

commodities in the year, gives an

indication of those effects and a

comparison with the 2012-2013

year.

Appendix C—Reporting required by section 516A of the Environment Protection and Biodiversity Conservation Act 1999

66

Commodity Amount bought in 2013-2014

Amount bought in 2012-2013

Comments

Electricity used on OPC’s Barton premises

Electricity used on OPC’s Deakin premises

110,518 kWh

265,783 kWh

115,865 kWh

211,437 kWh

This does not include electricity used in air-conditioning and lift services supplied by the lessor of the premises, as figures reflecting OPC’s use of those services are not available.

In 2013-2014, 10,377 kWh of the electricity was “green power” provided by ERM Power Retail through a Whole-of-Government agreement administered by the Department of Defence.

OPC assumed responsibility for an additional office lease, effective 1 October 2012, as a result of a Machinery of Government change.

The Deakin lease is for an entire building with a net lettable area of 1,776m 2

and OPC is responsible for the costs of central services such as air-conditioning and lifts.

In 2013-2014, 26,578 kWh of the electricity was “green power” provided by ERM Power Retail.

Copy paper 6.9 t 12.6 t The copy paper is used in office

printers and copiers. The substantial difference in paper bought in 2012-2013 can be attributed to the creation of “reserve supplies” to assist with the implementation of business continuity plans.

6 These figures do not

include energy and paper used by

the contractor engaged by OPC to

print Bills for introduction into the

Parliament.

7 No figures on OPC’s use of

water are available for the Barton

Appendix C—Reporting required by section 516A of the Environment Protection and Biodiversity Conservation Act 1999

67

premises, as there is no separate

metering of water used by OPC on

the premises it leases. Figures for

OPC’s use of water on the Deakin

premises were not available for this

financial year.

Measures to minimise the effect of OPC’s activities on the environment

8 The following measures

were in place throughout the year

to minimise the effect of OPC’s

activities on the environment:

 energy efficiency is routinely

taken into account in decisions

about acquiring equipment for

OPC;

 double-sided printing and

photocopying facilities are

available, and staff are

encouraged to use those

facilities;

 where possible, OPC is moving

to online publication of

documents to reduce the

number of copies being printed;

 work procedures are modified

to avoid paper use where

practicable by, for example,

editing documents on screen,

using electronic forms of

communication and filing

documents in the electronic

records management system;

 OPC has arrangements to

collect toner cartridges, paper,

glass, plastic and aluminium

used in the office for recycling;

 staff are encouraged to turn off

lights and office equipment

when not in use.

Appendix D—Financial Statements 2013-2014

68

Appendix D—Financial Statements 2013-2014

Contents

Auditor-General’s Report on Financial Statements

Certification of Financial Statements

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Cash Flow Statement

Schedule of Commitments

Notes to Financial Statements

Appendix D—Financial Statements 2013-2014

69

Appendix D—Financial Statements 2013-2014

70

Appendix D—Financial Statements 2013-2014

71

Appendix D—Financial Statements 2013-2014

72

OFFICE OF PARLIAMENTARY COUNS EL S TATEMENT OF COMPREHENS IVE INCOME for the period ended 30 June 2014

2014 2013

Notes $’000 $’000

NET COS T OF S ERVICES EXPENS ES Employee benefits 3A 16,056 15,315

Supplier expenses 3B 3,711 3,359

Depreciation and amortisation 3C 1,269 854

Finance costs 3D 7 8

Write-down and impairment of assets 3E - 12

Loss on asset sales 3F - 2

Total expenses 21,043 19,550

LES S : OWN-S OURCE INCOME Own-source revenue

Sale of goods and rendering of services 4A 6,475 5,611

Other revenue 4B 219 208

Total own-source revenue 6,694 5,819

Total own-source income 6,694 5,819

Net cost of (contribution by) services (14,349) (13,731)

Revenue from Government 4C 16,039 14,755

S urplus attributable to the Australian Government 1,690 1,024

OTHER COMPREHENS IVE INCOME Changes in asset revaluation surplus 10 436

Total comprehensive income attributable to the Australian Government 1,700 1,460

The above statement should be read in conjunction with the accompanying notes.

Appendix D—Financial Statements 2013-2014

73

2014 2013

Notes $’000 $’000

AS S ETS Financial Assets Cash and cash equivalents 6A 345 372

Trade and other receivables 6B 15,145 12,988

Total financial assets 15,490 13,360

Non-Financial Assets Land and buildings 7A/7C 390 701

Plant and equipment 7B/7C 581 753

Intangibles 7D/7E 2,666 3,441

Other non-financial assets 7F 232 175

Total non-financial assets 3,869 5,070

Total Assets 19,359 18,430

LIABILITIES Payables

Suppliers 8A 273 781

Other payables 8B 746 745

Total payables 1,019 1,526

Provisions Employee provisions 9A 6,075 6,586

Other provisions 9B 272 275

Total provisions 6,347 6,861

Total Liabilities 7,366 8,387

Net Assets 11,993 10,043

EQUITY Parent Entity Interest Contributed equity 5,842 5,592

Reserves 1,604 1,594

Retained surplus (accumulated deficit) 4,547 2,857

Total Equity 11,993 10,043

OFFICE OF PARLIAMENTARY COUNS EL S TATEMENT OF FINANCIAL POS ITION as at 30 June 2014

The above statement should be read in conjunction with the accompanying notes.

Appendix D—Financial Statements 2013-2014

74

S TATEMENT of CHANGES in EQUITY for the period ended 30 June 2014

2014

2013

2014

2013

2014

2013

2014

2013

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

Balance carried forward from previous period

2,857

1,833

1,594

1,158

5,592

212

10,043

3,203

Adjustment for changes in accounting policies

-

-

-

-

-

-

-

-

Adjusted opening balance

2,857

1,833

1,594

1,158

5,592

212

10,043

3,203

Comprehensive income Other comprehensive income - changes to asset revaluation

surplus

-

-

10

436

-

-

10

436

Surplus (Deficit) for the period

1,690

1,024

-

-

-

-

1,690

1,024

Total comprehensive income

1,690

1,024

10

436

-

-

1,700

1,460

Transactions with owners Contributions by owners

Return of contributed equity

-

-

-

-

(38)

-

(38)

-

Departmental capital budget

-

-

-

-

288

1,055

288

1,055

Restructuring

-

-

-

-

-

4,325

-

4,325

S ub-total transactions with owners

-

-

-

-

250

5,380

250

5,380

Closing balance at 30 June

4,547

2,857

1,604

1,594

5,842

5,592

11,993

10,043

The above statement should be read in conjunction with the accompanying notes. OFFICE OF PARLIAMENTARY COUNS EL

Retained Earnings

Asset Revaluation

Contributed

Opening balance

S urplus

Equity/Capital

Total Equity

Appendix D—Financial Statements 2013-2014

75

2014 2013

Notes $’000 $’000

OPERATING ACTIVITIES Cash received Appropriations 20,149 16,852

Sales of goods and rendering of services 6,947 5,206

Net GST received 257 191

Total cash received 27,353 22,249

Cash used Employees 16,564 14,107

Suppliers 4,611 3,323

Section 31 receipts transferred to the Official Public Account 6,205 4,517

Total cash used 27,380 21,947

Net cash from (used by) operating activities 11 (27) 302

INVES TING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment - 3

Total cash received - 3

Cash used Purchase of property, plant and equipment 11 238

Purchase of intangibles - 493

Total cash used 11 731

Net cash from (used by) investing activities (11) (728)

FINANCING ACTIVITIES Cash received Contributed equity 11 731

Total cash received 11 731

Net cash from (used by) financing activities 11 731

Net increase (decrease) in cash held (27) 305

Cash and cash equivalents at the beginning of the reporting period 372 67

Cash and cash equivalents at the end of the reporting period 6A 345 372

The above statement should be read in conjunction with the accompanying notes.

OFFICE OF PARLIAMENTARY COUNS EL CAS H FLOW S TATEMENT for the period ended 30 June 2014

Appendix D—Financial Statements 2013-2014

76

2014 2013

BY TYPE $’000 $’000

Commitments receivable GST recoverable on commitments 265 355

Total commitments receivable 265 355

Commitments payable Operating lease 1 2,116 3,778

Other commitments 797 126

Total commitments payable 2,913 3,904

Net commitments by type 2,648 3,549

BY MATURITY

Commitments receivable

Operating lease income One year or less 153 151

From one to five years 39 192

Over five years - -

Total operating lease income 192 343

Other commitments receivable One year or less 24 9

From one to five years 49 3

Over five years - -

Total other commitments receivable 73 12

Total commitments receivable 265 355

Commitments payable Operating lease commitments One year or less 1,687 1,662

From one to five years 429 2,116

Over five years - -

Total operating lease commitments 2,116 3,778

Other commitments One year or less 257 92

From one to five years 540 34

Over five years - -

Total other commitments 797 126

Total commitments payable 2,913 3,904

Net commitments by maturity 2,648 3,549

Notes

NB: Commitments are GST inclusive where relevant.

1.  Operating lease consists of two leases for office accommodation and a licence for car parking.

OFFICE OF PARLIAMENTARY COUNS EL S CHEDULE OF COMMITMENTS as at 30 June 2014

Appendix D—Financial Statements 2013-2014

77

Nature of lease/general description of leasing arrangement Barton Office Lease for office accommodation

Licence agreement for car parking

Deakin office Lease for office accommodation

The above schedule should be read in conjunction with the accompanying notes.

Lease payments are reviewed to market every two years. The next rent review is on 2 October 2014. An option to extend the lease by three years from 2 October 2012 was exercised on the same terms and conditions as the existing lease. A further term of 2 years is available from 2 October 2015 at OPC's option.

Lease payments will increase by 3.5% each year of the lease. The next increase is on 1 October 2014. The lease is due to expire on 30 September 2015. There is no option to extend the lease.

Licence payments are subject to the CPI increase every two years. The next licence review is on 2 October 2014. The licence was renewed for a further term of three years from 2 October 2012 at OPC's option and on the same terms and conditions as the existing licence. A further term of 2 years is available from 2 October 2015 at OPC's option.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

78

Table of Contents - Notes

Note 1: Summary of Significant Accounting Policies Note 2: Events after the Reporting Date Note 3: Expenses Note 4: Income Note 5: Fair Value Measurement Note 6: Financial Assets Note 7: Non-Financial Assets Note 8: Payables Note 9: Provisions Note 10: Restructuring Note 11: Cash Flow Reconciliation Note 12: Contingent Assets and Liabilities Note 13: Senior Executive Remuneration Note 14: Remuneration of Auditors Note 15: Financial Instruments Note 16: Financial Assets Reconciliation Note 17: Appropriations Note 18: Compensation and Debt Relief Note 19: Reporting of Outcomes Note 20: Net Cash Appropriation Arrangements

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

79

1.1 Objectives of Office of Parliamentary Counsel (OPC)

OPC is an Australian Government controlled entity. It is a not-for-profit entity. The objectives of OPC are:  to provide a timely and high quality service in the performance of its drafting and publication functions;

 to draft legislation in as clear a style as possible, consistent with maintaining precision;  to promote the development of new approaches to legislative drafting to reflect changes in legal policy and in the expectations of the community;  to pursue staff development so that the best use is made of the resources available to

OPC and career and advancement opportunities for all staff are enhanced;  to promote the efficient and effective management of the resources of OPC;  to manage its financial affairs in accordance with the relevant legislative requirements

as set out in the Parliamentary Counsel Act 1970, the Financial Management and Accountability Act 1997, and the Finance Minister’s Orders, and maintain high standards of corporate governance; and  to adhere to and support the Australian Public Service Code of Conduct and Values.

OPC is structured to meet one outcome:

Outcome 1: A body of Commonwealth laws and instruments that give effect to intended policy, and that are coherent, readable and readily accessible, through the drafting and publication of those laws and instruments.

OPC's activities contributing toward this outcome are classified as departmental. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by OPC in its own right.

OPC has one program, legislative drafting and publishing, and five program components contributing to meeting Outcome 1. The program components are as follows:  Legislation  Program and project management

 Legislative drafting capability  Standardisation and quality control of legislation  Publication

The continued existence of OPC in its present form is dependent on Government policy and on continuing appropriations by Parliament for OPC’s administration and programs.

1.2 Basis of Preparation of the Financial Statements

The Financial Statements and notes are required by section 49 of the Financial Management and Accountability Act 1997 and are general purpose financial statements.

The Financial Statements and notes have been prepared in accordance with:  Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2011; and  Australian Accounting Standards and Interpretations issued by the Australian

Accounting Standards Board (AASB) that apply for the reporting period.

Note 1: Summary of Significant Accounting Policies

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

80

The Financial Statements have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The Financial Statements are presented in Australian dollars and values are rounded to the nearest thousand unless otherwise specified.

Unless an alternative treatment is specifically required by an Accounting Standard or the FMOs, assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrealised are reported in the Schedule of Commitments and the Schedule of Contingencies.

Unless alternative treatment is specifically required by an Accounting Standard, income and expenses are recognised in the Statement of Comprehensive Income when, and only when, the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

The Australian Government continues to have regard to developments in case law, including the High Court’s decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth program. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

During 2012-13 additional legal advice was received that indicated there could be breaches of section 83 of the Constitution under certain circumstances with payments for long service leave, goods and services tax and payments under determinations of the Remuneration Tribunal. OPC has reviewed its processes and controls over payments for these items to minimise the possibility for future breaches as a result of these payments. OPC has determined that there is a low risk of the certain circumstances mentioned in the legal advice applying to OPC. OPC is not aware of any specific breaches of section 83 in respect of these items.

1.3 Significant Accounting Judgements and Estimates

No accounting assumptions and estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.4 Changes in Australian Accounting Standards

Adoption of new Australian Accounting Standard requirements

No Accounting Standard has been adopted earlier than the application date as stated in the standard.

The following new standard, has been issued and is applicable to the current reporting period and had a material effect on the entity’s financial statements.

Standard/ Interpretation

Nature of change in accounting policy, transitional provisions, and adjustment to financial statements

AASB 13 Fair Value Measurement Additional disclosure in Note 5

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

81

Future Australian Accounting Standard requirements

The following new standard has been issued and is applicable to future reporting periods and will have a material effect on the entity’s financial statements.

Standard/ Interpretation

Application date for the entity

Nature of impending change/s in accounting policy and likely impact on initial application

AASB 1055 Budgetary Reporting 1 July 2014 Additional disclosure to identify variances between actuals to budget with explanation for

major variances.

1.5 Revenue

Revenue from the sale of goods is recognised when:  the risks and rewards of ownership have been transferred to the buyer;  the seller retains no managerial involvement nor effective control over the goods;  the revenue and transaction costs incurred can be reliably measured; and  it is probable that the economic benefits associated with the transaction will flow to the

entity.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:  the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

 the probable economic benefits associated with the transaction will flow to the entity.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at balance date. Allowances are made when collectability of the debt is no longer probable.

Resources Received Free of Charge

Resources received free of charge are recognised as gains when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements.

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue when the agency gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.

Appropriations receivable are recognised at their nominal amounts.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

82

1.6 Gains

Sale of Assets

A gain from disposal of non-current assets is recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner

Equity injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in Contributed Equity in that year.

1.8 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of balance date are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Long-term employee benefits are measured at total net present value of the defined benefit obligation at the end of the reporting period.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of OPC is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that applied at the time the leave is taken, including OPC's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave is calculated using the shorthand method. This method provides probability weights for each band of years of service. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. OPC will recognise a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

Staff of OPC are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or a complying fund chosen by the employee.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and other funds are defined contribution schemes.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

83

The liability for defined benefits is recognised in the Financial Statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance as an administered item.

OPC makes employer contributions to the employee superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. OPC accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

1.10 Borrowing Costs

All borrowing costs are expensed as incurred.

1.11 Fair Value Measurement

The entity deems transfers between levels of the fair value hierarchy to have occurred at the end of each reporting period.

1.12 Cash

Cash is recognised at its nominal amount.

Cash and cash equivalents includes cash on hand, any deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

1.13 Financial assets

OPC classifies its financial assets as loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

84

Impairment of financial assets

Financial assets are assessed for impairment at each balance date.

Financial assets held at amortised cost - If there is objective evidence that an impairment loss has been incurred for loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

1.14 Financial Liabilities

OPC classifies financial liabilities as other financial liabilities. Financial liabilities are recognised and derecognised upon trade date.

Other financial liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. The other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.15 Contingent Liabilities and Contingent Assets

Contingent Liabilities and Contingent Assets are not recognised in the Statement of Financial Position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.16 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor Agency’s accounts immediately prior to the restructuring.

1.17 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $1,000, which are expensed in the year

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

85

of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in the lease for office accommodation taken up by OPC where there exists an obligation to yield up the premises in good and tenantable repair having regard to the condition of the premises at the commencement of the term. These costs are included in the value of OPC's leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Revaluations

Each year, a review of the carrying amounts of assets is conducted and presented to OPC's Senior Management Team as an "officer's valuation". Where it is considered that the carrying amount of an asset at the date of reporting would materially differ from the fair value, an independent valuation is recommended. All property, plant and equipment is subject to a formal valuation at least once every three years.

Following initial recognition at cost, property, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through operating result. Revaluation decrements for a class of assets are recognised directly through operating result except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to OPC using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2014 2013

Leasehold improvements Lease term Lease term

Plant and equipment 3 to 20 years 3 to 20 years

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

86

Impairment

All assets were assessed for impairment at 30 June 2014. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if OPC were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

All items of property, plant and equipment are derecognised upon disposal or when no further future economic benefits are expected from their use.

1.18 Intangibles

OPC's intangibles comprise purchased computer software and internally developed software. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life.

The useful life of OPC’s intangibles are as follows:

2014 2013

Purchased software 4 to 5 years 4 to 5 years

Internally generated software 7 years 7 years

All software assets were assessed for indications of impairment as at 30 June 2014.

1.19 Taxation

OPC is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and services tax (GST).

Revenues, expenses and assets are recognised net of GST:  except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and  except for receivables and payables.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

87

Note 2: Events after the Reporting Date

There is no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the entity.

Note 3: Expenses

2014 2013

$’000 $’000

Note 3A: Employee benefits Wages and salaries 11,269 10,518

Superannuation:

Defined benefit plans 2,217 1,725

Defined contribution plans 568 526

Leave and other entitlements 1,748 2,546

Separation and redundancies 254 -

Total employee benefits 16,056 15,315

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

88

Note 3: Expenses

2014 2013

Note 3B: S upplier expenses $’000 $’000

Goods and services IT & telecommunications 789 966

Printing 279 282

Property 201 163

Human resources 193 92

Staff training & development 135 114

Library 127 104

Consultancies 90 -

Accounting/audit services 79 57

Legal 61 8

Office supplies 41 69

Travel general 22 68

Other 132 113

Total goods and services 2,149 2,036

Goods supplied in connection with Related parties 17 2

External parties 75 159

Total goods supplied 92 161

S ervices rendered in connection with Related parties 507 682

External parties 1,550 1,193

Total services rendered 2,057 1,875

Total goods and services supplied or rendered 2,149 2,036

Other supplier expenses Operating lease rentals - external parties:

M inimum lease payments 1,331 1,169

Contingent rentals 186 110

Workers compensation expenses 45 44

Total other supplier expenses 1,562 1,323

Total supplier expenses 3,711 3,359

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

89

Note 3: Expenses

2014 2013

$’000 $’000

Note 3C: Depreciation and amortisation Depreciation:

Property, plant and equipment 183 224

Leasehold improvements 311 130

Total depreciation 494 354

Amortisation:

Intangibles:

Computer software purchased 90 101

Internally developed software 685 399

Total amortisation 775 500

Total depreciation and amortisation 1,269 854

Note 3D: Finance costs Unwinding of discount 7 8

Total finance costs 7 8

Note 3E: Write-Down and Impairment of Assets Write-down of receivables - 1

Impairment on intangible assets - 11

Total write-down and impairment of assets - 12

Note 3F: Loss from asset sales Property, Plant and equipment Proceeds from sales - ( 3)

Carrying value of asset sold - 4

- 1

Intangibles Proceeds from sales - -

Carrying value of asset sold - 1

- 1

Total loss from asset sales - 2

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

90

Note 4: Income

2014 2013

Own-source Revenue $’000 $’000

Note 4A: S ale of goods and rendering of services S ale of goods in connection with Related parties 175 65

External parties 112 9

Total sale of goods 287 74

Rendering of services in connection with Related parties 6,173 5,514

External parties 15 23

Total rendering of services 6,188 5,537

Total sale of goods and rendering of services 6,475 5,611

Note 4B: Other revenue Reimbursement of expenses 177 166

Resources received free of charge 42 42

Total other revenue 219 208

Revenue from Government

Note 4C: Revenue from Government

Appropriations:

Departmental appropriation 16,039 14,755

Total revenue from Government 16,039 14,755

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

91

Note 5A: Fair Value Measurement

Fair value $'000 Level 1 inputs $'000

Level 2 inputs $'000

Level 3 inputs $'000

Non-financial assets:

Leasehold improvements 390 - - 390

Plant and equipment 581 - 402 179

Total non-financial assets 971 - 402 569

Non-financial assets 971 - 402 569

Fair value Measurement - Highest and Best Use

OPC's assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of the assets is considered the highest and best use.

Note 5: Fair Value Measurement

The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability.

Fair value measurements at the end of the reporting period by hierarchy for non-financial assets in 2014 Fair value measurements at the end of the reporting period using

Total fair value measurements of assets in the S tatement of Financial position

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

92

Note 5B: Valuation technique and inputs for Level 2 and Level 3 fair value measurements

Non-financial assets: Category (Level 2 or Level 3)

Fair value $'000

Valuation

technique(s) 1

Inputs used Range (weighted

average) 2

Leasehold improvements 3 390 Depreciated

Replacement Cost (DRC)

Replacement Cost New (price per square metre) n/a

Consumed economic benefit / Obsolescence of asset

25.0% - 7.69% (8.77%) per annum

Plant and equipment 2 402 Market Approach adjusted market

transactions

n/a

Plant and equipment 3 179 Depreciated

Replacement Cost (DRC)

Replacement Cost New n/a

Consumed economic benefit / Obsolescence of asset

25.0% - 5% (7.72%) per annum

Note 5: Fair Value Measurement

Rodney Hyman Asset Services (RHAS) undertook a comprehensive valuation of all asset classes as at 30 June 2012. The Australian Valuation Office (AVO) undertook a comprehensive valuation of all Leasehold Improvement assets at 30 June 2013. Australian Valuation Solutions (AVS) undertook an asset materiality review on land and buildings and plant and equipment at 30 June 2014 and determined that the values were not materially different from fair value.

OPC tests the procedures of the valuation model as an internal management review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. AVS provided written assurance that the model developed complies with AASB 13 Fair Value M easurement.

Level 2 and 3 fair value measurements - valuation technique and the inputs used for assets in 2014

1. There has been no changes to valuation techniques.

2. Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category. There were no significant inter-relationships between unobservable inputs that materially affect fair value.

Recurring Level 3 fair value measurements - valuation processes

Significant Level 3 inputs used by OPC are derived and evaluated as follows:

Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost (Depreciated Replacement Cost or DRC) approach. Under the DRC approach the estimated cost to replace the asset is calculated and then adjusted to take into account its consumed economic benefit / asset obsolescence (accumulated Depreciation). Consumed economic benefit / asset obsolescence has been determined based on professional judgment regarding physical, economic and external obsolescence factors relevant to the asset under consideration. The weighted average is determined by assessing the fair value measurement as a proportion of the total fair value for the class against the total useful life of each asset.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

93

Note 5: Fair Value Measurement

The significant unobservable inputs used in the fair value measurement of the entity’s leasehold improvements and infrastructure, plant and equipment asset classes relate to asset obsolescence (annual depreciation). A significant increase (decrease) in this input would result in a significantly lower (higher) fair value measurement.

Recurring Level 3 fair value measurements - sensitivity of inputs

Note 5C: Reconciliation for recurring Level 3 fair value measurements

Leasehold Improvements 2014 $'000

Plant and equipment 2014 $'000

Total

2014 $'000

Opening balance 701 266 967

Total gains/(losses) in accumulated depreciation (311) (87) (398)

Purchases - - -

Closing balance 390 179 569

OPC's policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

Recurring Level 3 fair value measurements - reconciliation for assets Non-financial assets

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

94

Note 6: Financial Assets

2014 2013

$’000 $’000

Note 6A: Cash and cash equivalents Cash on hand or on deposit 345 372

Total cash and cash equivalents 345 372

Note 6B: Trade and other receivables Goods and services receivable in connection with Related entities 1,227 1,420

External parties 28 3

Total goods and services 1,255 1,423

Appropriations receivable:

For existing program 13,825 11,492

Total appropriations receivable 13,825 11,492

Other receivables:

GST receivable from the Australian Taxation Office 65 73

Total other receivables 65 73

Total trade and other receivables (gross) 15,145 12,988

Less Impairment allowance account:

Goods and services - -

Other - -

Total trade and other receivables (net) 15,145 12,988

Receivables are expected to be recovered in:

No more than 12 months 15,145 12,988

M ore than 12 months - -

Total trade and other receivables (net) 15,145 12,988

Receivables are aged as follows:

Not overdue 14,942 12,864

Overdue by:

Less than 30 days 121 52

30 to 60 days 13 13

61 to 90 days 36 11

M ore than 90 days 33 48

Total receivables (gross) 15,145 12,988

Appropriations receivable are appropriations controlled by OPC but held in the Official Public Account under the Government's just-in-time draw down arrangements.

Credit terms for goods and services are net 30 days (2013: 30 days)

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

95

Note 7: Non-Financial Assets

2014 2013

$’000 $’000

Leasehold improvements: Fair value 701 701

Accumulated depreciation (311) -

Total land and buildings 390 701

Note 7B: Plant and equipment

Plant and equipment: Fair value 992 981

Accumulated depreciation (411) (228)

Total plant and equipment 581 753

No indicators of impairment were found for property, plant and equipment.

Only minor items of property, plant and equipment are expected to be disposed of within the next 12 months.

Note 7A: Land and buildings

No indicators of impairment were found for land and buildings.

All revaluations are conducted in accordance with the revaluation policy stated in Note 1. In 2013-14, an independent valuer, Australian Valuation Solutions, undertook an asset materiality review on land and buildings, and plant and equipment and determined that the values were not materially different from fair value.

A revaluation increment of $nil for land and buildings (2013: $395,424), an increment of $nil for plant and equipment (2013: $nil) were made to the asset revaluation reserve and an increment of $nil for plant and equipment was recognised as income (2013: $nil).

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

96

Note 7: Non-Financial Assets

Buildings - Leasehold Improvements Plant &

Equipment Total

$’000 $’000 $’000

As at 1 July 2013 Gross book value 701 981 1,682

Accumulated depreciation and impairment - (228) (228)

Net book value 1 July 2013 701 753 1,454

Additions:

By purchase - 11 11

Depreciation expense (311) (183) (494)

Disposals:

Other disposals - - -

Net book value 30 June 2014 390 581 971

Net book value as of 30 June 2014 represented by:

Gross book value 701 992 1,693

Accumulated depreciation and impairment (311) (411) (722)

390 581 971

Note 7C: Reconciliation of opening and closing balances of property, plant and equipment 2014

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

97

Note 7: Non-Financial Assets

Buildings - Leasehold Improvements Plant &

Equipment Total

$’000 $’000 $’000

As at 1 July 2012 Gross book value 420 628 1,048

Accumulated depreciation and impairment - - -

Net book value 1 July 2012 420 628 1,048

Additions: By purchase 15 223 238

From acquisition of entities or operations (including restructure) - 130 130

Revaluations recognised in other comprehensive income 396 - 396

Revaluations recognised in the operating result - - -

Depreciation expense (130) (224) (354)

Disposals:

Other disposals - (4) (4)

Net book value 30 June 2013 701 753 1,454

Net book value as of 30 June 2013 represented by:

Gross book value 701 981 1,682

Accumulated depreciation and impairment - (228) (228)

701 753 1,454

Note 7C: Reconciliation of opening and closing balances of property, plant and equipment 2013

2014 2013

$’000 $’000

Note 7D: Intangibles

Computer software Internally developed - in use 4,444 4,444

Purchased 514 519

Accumulated amortisation (2,281) (1,511)

Accumulated impairment (11) (11)

Total computer software 2,666 3,441

No intangibles are expected to be sold or disposed of within the next 12 months.

An impairment review was undertaken and intangible assets were impaired by $nil (2013: $11,088).

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

98

Note 7: Non-Financial Assets

Internally developed software

Computer software purchased Total

$’000 $’000 $’000

As at 1 July 2013 Gross book value 4,444 519 4,963

Accumulated amortisation and impairment (1,245) (277) (1,522)

Net book value 1 July 2013 3,199 242 3,441

Additions:

By purchase - - -

Impairment recognised in the operating result - - -

Amortisation (685) (90) (775)

Disposals: -

Other disposals - - -

Net book value 30 June 2014 2,514 152 2,666

Net book value as of 30 June 2014 represented by:

Gross book value 4,444 514 4,958

Accumulated amortisation and impairment (1,930) (362) (2,292)

2,514 152 2,666

Internally developed software

Computer software purchased Total

$’000 $’000 $’000

As at 1 July 2012 Gross book value - 451 451

Accumulated amortisation and impairment - (157) (157)

Net book value 1 July 2012 - 294 294

Additions:

By purchase 461 32 493

From acquisition of entities or operations (including restructure) 3,137 29 3,166

Impairment recognised in the operating result - (11) (11)

Amortisation (399) (101) (500)

Disposals:

Other disposals - (1) (1)

Net book value 30 June 2013 3,199 242 3,441

Net book value as of 30 June 2013 represented by:

Gross book value 4,444 519 4,963

Accumulated amortisation and impairment (1,245) (277) (1,522)

3,199 242 3,441

Note 7E: Reconciliation of the opening and closing balances of intangibles 2014

Note 7E: Reconciliation of the opening and closing balances of intangibles 2013

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

99

Note 7: Non-Financial Assets

2014 2013

$’000 $’000

Note 7F: Other non-financial assets Prepayments

- -

Prepayments 232 175

Total other non-financial assets 232 175

Total other non-financial assets are expected to be recovered in:

No more than 12 months 227 175

M ore than 12 months 5 -

Total other non-financial assets 232 175

No indicators of impairment were found for other non-financial assets.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

100

Note 8: Payables

2014 2013

$’000 $’000

Note 8A: S uppliers Trade creditors and accruals 236 754

FBT payable 37 27

Total suppliers 273 781

Suppliers in connection with Related parties 84 575

External parties 189 206

Total suppliers 273 781

Settlement is usually made within 30 days.

Note 8B: Other Payables Salaries and wages 488 498

Salary packaging 20 19

Unearned income 135 133

Rent Payable 22 16

Total other payables 746 745

Total other payables are expected to be settled in:

No more than 12 months 740 723

M ore than 12 months 6 22

Total other payables 746 745

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

101

Note 9: Provisions

2014 2013

$’000 $’000

Note 9A: Employee provisions Leave 6,075 6,586

Total employee provisions 6,075 6,586

Employee provisions are expected to be settled in: No more than 12 months 2,004 974

M ore than 12 months 4,071 5,612

Total employee provisions 6,075 6,586

Note 9B: Other provisions Provision for restoration obligations 272 275

Total other provisions 272 275

Other provisions are expected to be settled in: No more than 12 months - -

M ore than 12 months 272 275

Total other provisions 272 275

Provision for restoration

Total

$’000 $’000

Carrying amount 1 July 2013 275 275

Additional provisions made - -

Amounts used - -

Amounts reversed (10) (10)

Unwinding of discount or change in discount rate 7 7

Closing balance 2014 272 272

OPC currently has one agreement for the leasing of premises which have provisions requiring OPC to restore the premises to their original condition at the conclusion of the lease. OPC has made a provision to reflect the present value of this obligation.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

102

2014 2013

Office of Legislative Drafting Attorney-General's

Department 1

$’000 $’000

FUNCTIONS AS S UMED Assets recognised

Trade debtors - 414

Appropriation receivable - 2,615

Work in Progress - 136

Infrastructure, plant and equipment - 3,166

Intangibles 130

Total assets recognised - 6,461

Liabilities recognised

Income in advance - 123

Trade creditors - 2,012

Total liabilities recognised - 2,135

Net assets/(liabilities) assumed 2

- 4,326

Income assumed

Recognised by the receiving entity - 5,568

Recognised by the losing entity - 1,261

Total Income assumed - 6,829

Expenses assumed

Recognised by the receiving entity - 8,314

Recognised by the losing entity - 2,444

Total Expenses assumed - 10,758

Notes:

2. The net assets/liabilities assumed from all entities were $nil (2013: $4.326m).

3. The net assets/liabilities relinquished to all entities were $nil (2013: $nil).

Note 10: Restructuring

Note 10: Departmental Restructuring

1. The functions of the Office of Legislative Drafting and Publishing were assumed from the Attorney-General's Department on 1 October 2012 due to a restructuring of administrative arrangements.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

103

Note 11: Cash Flow Reconciliation

2014 2013

$’000 $’000

Reconciliation of cash and cash equivalents as per S tatement of Financial Position to Cash Flow S tatement

Cash and cash equivalents as per:

Cash Flow Statement 345 372

Statement of Financial Position 345 372

Difference - -

Net cost of services (14,349) (13,731)

Add revenue from government 16,039 14,755

Adjustments for non-cash items Depreciation /amortisation 1,269 854

Write down of impairment - 12

Loss on disposal of assets - 2

Increase in asset revaluation reserve due to change in makegood liability 10 40

Changes in assets/liabilities (Increase) in net receivables (1,919) (3,282)

(Increase) in prepayments (55) (100)

Increase / (decrease) in employee provisions (511) 914

Increase / (decrease) in supplier payables (508) 553

Increase in other payables - 318

(Decrease) in other provisions (3) (33)

Net cash from / (used by) operating activities (27) 302

Reconciliation of net cost of services to net cash from operating activities:

Note 12: Contingent Assets and Liabilities

OPC has no quantifiable or unquantifiable contingent assets or liabilities. (2013: $nil).

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

104

Note 13: Senior Executive Remuneration

Note 13A: S enior executive expenses for the reporting period 1

2014 2013

$ $

S hort-term employee benefits:

Salary 3,765,756 3,232,899

Performance bonus 93,954 93,954

Allowances 2

896,969 709,008

Other 73,615 66,684

Total short-term employee benefits 4,830,294 4,102,545

Post- employment benefits:

Superannuation 1,064,874 720,505

Total post employment benefits 1,064,874 720,505

Other long-term benefits:

Annual leave accrued ( 3,713) 27,135

Long service leave 122,971 288,323

Total other long-term benefits 119,258 315,458

Total senior executive remuneration expenses 6,014,426 5,138,508 Notes

2. Allowances includes motor vehicle and experience allowance.

1. This note was prepared on an accrual basis (the performance bonus expenses disclosed above differ from the cash 'bonus paid') in Note 13B. This note excludes acting arrangements and part-year service where remuneration expensed for a senior executive was less than $195,000.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

105

Average annual reportable remuneration

¹

S enior

Executives

Reportable

salary

²

Contributed

superannuation

³

Reportable allowances

⁴

Bonus paid

⁵

Total reportable remuneration

No.

$

$

$

$

$

Total remuneration (including part-time arrangements):

less than $195,000

6

133,661

32,880

-

-

166,541

$195,000 to $224,999

2

171,066

44,103

-

-

215,169

$225,000 to $254,999

8

196,501

46,970

-

-

243,471

$255,000 to $284,999

2

211,639

58,876

-

-

270,515

$285,000 to $314,999

3

250,128

47,108

-

-

297,236

$375,000 to $404,999

2

282,170

52,060

-

46,977

381,207

$435,000 to $464,999

1

375,957

61,829

-

-

437,786

Total

24

Average annual reportable remuneration

¹

Senior

Executives

Reportable salary

²

Contributed

superannuation

³

Reportable allowances

⁴

Bonus paid

⁵

Total reportable remuneration

No.

$

$

$

$

$

Total remuneration (including part-time arrangements):

less than $195,000

7

134,353

25,189

-

-

159,542

$195,000 to $224,999

6

181,205

34,116

-

-

215,321

$225,000 to $254,999

3

193,659

37,208

-

-

230,867

$255,000 to $284,999

1

212,924

43,298

-

-

256,222

$285,000 to $314,999

2

244,937

50,291

-

-

295,228

$345,000 to $374,999

2

273,379

42,251

-

46,977

362,607

$405,000 to $434,999

1

368,125

60,097

-

-

428,222

Total

22

Note

13 : Senior Executive Remuneration

Note 13B: Average Annual Reportable Remuneration Paid to S ubstantive S enior Executives During the Reporting Period

2014 2013

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

106

Notes: 3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period. 4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries. 5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year. Note

13 : Senior Executive Remuneration

Note 13B: Average Annual Reportable Remuneration Paid to S ubstantive S enior Executives During the Reporting Period 1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band. 2. 'Reportable salary' includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column); b) reportable fringe benefits (at the net amount prior to 'grossing up' for tax purposes); c) reportable employer superannuation contributions; and d) exempt foreign employment income.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

107

Average annual reportable remuneration

¹

Other

highly paid

staff

Reportable

salary

²

Contributed

superannuation

³

Reportable allowances

⁴

Bonus paid

⁵

Total reportable remuneration

No.

$

$

$

$

$

Total remuneration (including part-time arrangements):

$195,000 to $224,999

1

170,896

33,377

-

-

204,273

Total

1

Notes: 1. This table reports substantive staff: a) who were employed by the entity during the reporting period; b) whose reportable remuneration was $195,000 or more for the reporting period; and c) who were not required to be disclosed in Tables A or B. Each row is an averaged figure based on headcount for individuals in the band. 2. 'Reportable salary' includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column); b) reportable fringe benefits (at the net amount prior to 'grossing up' for tax purposes); c) reportable employer superannuation contributions; and d) exempt foreign employment income. 3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to other highly paid staff in that reportable remuneration band during the reporting period. 4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries. 5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year. There were no other highly paid staff with total remuneration greater than $195,000 in 2013. Not

e 13

: Senior Executive Remuneration

2014

Note 13C: Average Annual Reportable Remuneration Paid to Other Highly Paid S taff during the Reporting Period

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

108

Note 14: Remuneration of Auditors

2014 2013

$’000 $’000

Financial statement audit services are provided free of charge to OPC by the Australian National Audit Office (ANAO).

The fair value of the services received:

Financial Statement audit services 42 42

Total fair value of services received 42 42

No other services were provided by the ANAO.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

109

2014 2013

$’000 $’000

Note 15A: Categories of financial instruments Financial Assets Loans and receivables Cash and cash equivalents 345 372

Trade & other receivables 1,255 1,423

Total financial assets 1,600 1,795

Financial Liabilities Other Liabilities Payables - suppliers 236 754

Other Payables 746 745

Total financial liabilities 982 1,499

Note 15B: Net gains or losses from financial assets

Loans and receivables

There was an impairment expense of $nil (2013: $1,100) from financial assets not at fair value.

Note 15C: Net gains or losses from financial liabilities

Other Liabilities

Note 15D: Fair value of financial instruments

Note 15: Financial Instruments

There are no gains or losses from financial assets not at fair value through the profit and loss in either the current and comparative year.

There are no gains or losses from financial liabilities not at fair value through the profit and loss in either the current or comparative year.

The fair value of each category of OPC's financial assets and financial liabilities equals its carrying amount for both the current and comparative years.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

110

Note 15E: Credit risk

OPC holds no collateral to mitigate against credit risk.

Credit quality of financial instruments not past due or individually determined as impaired.

Not Past Due Nor Impaired

Not Past Due Nor Impaired

Past due or impaired

Past due or impaired

2014 2013 2014 2013

$’000 $’000 $’000 $’000

Loans and receivables

Cash and cash equivalents 345 372 - -

Trade & other receivables 1,052 1,299 203 124

Total 1,397 1,671 203 124

Ageing of financial assets that are past due but not impaired for 2014

0 to 30 31 to 60 61 to 90 90+

days days days days Total

$’000 $’000 $’000 $’000 $’000

Loans and receivables Trade receivables 121 13 36 33 203

Total 121 13 36 33 203

Ageing of financial assets that are past due but not impaired for 2013

0 to 30 31 to 60 61 to 90 90+

days days days days Total

$’000 $’000 $’000 $’000 $’000

Loans and receivables Trade receivables 52 13 11 48 124

Total 52 13 11 48 124

There are no financial assets which are impaired.

Note 15: Financial Instruments

OPC is exposed to minimal credit risk as loans and receivables are cash and trade receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade receivables in 2014: $1,255,599 (2013: $725,239). OPC has assessed the risk of the default on payment and has not recognised any impairment allowance for doubtful debts in 2014: $nil (2013: $nil).

Due to the nature of our services, OPC customers are primarily other government agencies and departments. In addition, OPC has policies and procedures in place that guide debt recovery techniques that are to be applied.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

111

Note 15F: Liquidity risk

M aturities for non-derivative financial liabilities 2014

On within 1 1 to 5 > 5

demand year years years Total

2014 2014 2014 2014 2014

$’000 $’000 $’000 $’000 $’000

Other Liabilities

Payables - suppliers - 236 - - 236

Other Payables - 740 6 - 746

Total - 976 6 - 982

Maturities for non-derivative financial liabilities 2013

On within 1 1 to 5 > 5

demand year years years Total

2013 2013 2013 2013 2013

$’000 $’000 $’000 $’000 $’000

Other Liabilities Payables - suppliers - 754 - - 754

Other Payables - 723 22 - 745

Total - 1,477 22 - 1,499

OPC had no derivative financial liabilities in either the current or prior years.

Note 15G: Market risk

OPC holds basic financial instruments that do not expose OPC to any market risks. OPC holds no assets that have been pledged or held as collateral.

Note 15: Financial Instruments

OPC's financial liabilities are payables. The exposure to liquidity risk is based on the notion that OPC will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to the appropriation funding available to OPC.

OPC receives appropriation funding from the Australian Government. OPC manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, internal policies and procedures are in place to ensure that there are appropriate resources to meet its financial obligations.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

112

Notes 2014 2013

Note 16A: Financial Assets $’000 $’000

Total financial assets as per S tatement of Financial Position 15,490 13,360 Less: non-financial instrument components:

Appropriations Receivable 6B 13,825 11,492

GST receivable from the Australian Taxation Office 6B 65 73

Total non-financial components 13,890 11,565

Total financial assets as per financial instruments note 15A 1,600 1,795

Note 16: Financial Assets Reconciliation

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

113

Annual

Appropriation

¹

Appropriations

reduced

S ection 30

S ection 31

S ection 32

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

DEPARTMENTAL Ordinary annual services

16,327

-

-

6,205

-

22,532

(20,188)

2,344

Total departmental

16,327

-

-

6,205

-

22,532

(20,188)

2,344

Annual

Appropriation

Appropriations

reduced¹

S ection 30

S ection 31

S ection 32

Variance

²

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

DEPARTMENTAL Ordinary annual services

11,114

(38)

-

4,517

4,696

20,289

(17,278)

3,011

Total departmental

11,114

(38)

-

4,517

4,696

20,289

(17,278)

3,011

Note 17: Appropriations Table A: Annual Appropriations ('Recoverable GS T exclusive')

2014 Appropriations

Appropriation applied in 2014 (current and prior years)

Variance

²

Appropriation Act

FMA Act

Total

appropriation

² The variance is mainly due to the surplus for the year (after adding back non-cost recovered depreciation) and unspent appropriation transferred from the Attorney-General's Department due to restructuring of administrative arrangements. ¹ On 5th August 2013 the Finance M inister issued 'Instrument to Reduce Appropriations (No.1 of 2013-2014)'. This instrument reduced OPC's departmental Appropriation Act (No. 1) 2012-2013 by $38,000 under section 12 of appropriations Act (No. 1) 2012-2013. ¹ Includes $23,000 for 2013-14 departmental appropriation which has been quarantined. No formal determination has been made.

2013 Appropriations

Appropriation applied in 2013 (current and prior years)

Appropriation Act

FMA Act

Total

appropriation

² The variance is mainly due to the surplus for the year after adding back non-cost recovered depreciation.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

114

FMA Act

Annual

Appropriation

Appropriations

reduced

S ection 32

$'000

$'000

$'000

$'000

$'000

$'000

$'000

DEPARTMENTAL

Ordinary annual services - Departmental Capital Budget

1

288

-

-

288

(11)

(11)

277

Total departmental

288

-

-

288

(11)

(11)

277

FMA Act

Annual

Appropriation

Appropriations

reduced

S ection 32

$'000

$'000

$'000

$'000

$'000

$'000

$'000

DEPARTMENTAL

Ordinary annual services - Departmental Capital Budget

1

279

-

776

1,055

(731)

(731)

324

Total departmental

279

-

776

1,055

(731)

(731)

324

Notes: 2. Payments made on non-financial assets include purchase of assets and expenditure on assets which have been capitalised. Note 17: Appropriations Table B: Departmental Capital Budgets ('Recoverable GS T exclusive')

2014 Capital Budget Appropriations

Capital Budget Appropriation

applied in 2014

(current and prior years)

Variance

Appropriation Act

Total

appropriation

Payments for non-financial

assets

2

Total payments

1. Departmental Capital Budgets are appropriated through Appropriation Acts (No. 1, 3, 5). They form part of ordinary services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriation, see Table A: Annual Appropriations.

2013 Capital Budget Appropriations

Capital Budget Appropriation

applied in 2013

(current and prior years)

Variance

Appropriation Act

Total

appropriation

Payments for non-financial

assets

2

Total payments

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

115

Note 17: Appropriations

2014 2013

$'000 $'000

Appropriation Act (No. 1) 2012-13 823 11,864

Appropriation Act (No. 1) 2013-14 * 13,347 -

Total 14,170 11,864

Table C: Unspent Departmental Annual Appropriations ('Recoverable GS T exclusive')

Authority

Note * Amount includes cash at bank of $345,425 (2013: $372,351)

Note 18: Compensation and Debt Relief

2014 2013

$ $

Compensation and Debt Relief

No 'Acts of Grace' payments were expended during the reporting period (2013:$nil) - -

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2013: $nil) - -

No payments were provided under the Compensation for Detriment caused by Defective Administration Scheme during the reporting period (2013: $nil) - -

No ex-gratia payments were provided during the reporting period (2013: $nil) - -

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 during the reporting period (2013:$nil) - -

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

116

Note 19: Reporting of Outcomes

2014 2013

$’000 $’000

Expenses 21,043 19,550

Own source income

Sale of goods and rendering of services 6,475 5,611

Other revenue 219 208

Total own source income 6,694 5,819

Net cost of outcome delivery 14,349 13,731

Note 19: Net Cost of Outcome Delivery

Outcome 1

Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.

2014 2013

$’000 $’000

Total Comprehensive Income less depreciation/amortisation

expenses previously funded through revenue appropriation 1 2,284 1,915

Less:

Depreciation and amortisation expenses previously funded through revenue appropriation (584) (455)

Total comprehensive income as per the S tatement of Comprehensive Income 1,700 1,460

Note 20: Net Cash Appropriation Arrangements

1. From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. OPC now receives a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

Appendix D—Financial Statements 2013-2014

OFFICE OF PARLIAMENTARY COUNSEL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2014

117

Appendix E—List of requirements

118

Appendix E—List of requirements

Ref Part of

Report Description Require-

ment

Loca- tion

8(3) & A.4 Letter of transmittal Mandatory

A.5 Table of contents Mandatory

A.5 Index Mandatory

A.5 Glossary Mandatory

A.5 Contact officer(s) Mandatory Chapter 6

A.5 Internet home page address and internet

address for report

Mandatory Chapter 6

9 Review by Secretary Mandatory

9(1) Review by departmental secretary Mandatory FPC’s

Review

9(2) Summary of significant issues and

developments

Suggested FPC’s Review

9(2) Overview of department’s performance

and financial results

Suggested FPC’s Review

9(2) Outlook for following year Suggested FPC’s

Review

9(3) Significant issues and developments -

portfolio

Portfolio departments - suggested

N/A

10 Departmental Overview Mandatory

10(1) Role and functions Mandatory Chapter 1

10(1) Organisational structure Mandatory Chapter 1

10(1) Outcome and program structure Mandatory Chapter 1

10(2) Where outcome and program structures

differ from PBS/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change

Mandatory N/A

10(3) Portfolio structure Portfolio

departments - mandatory

N/A

11 Report on Performance Mandatory

11(1) Review of performance during the year in

relation to programs and contribution to outcomes

Mandatory Chapter 2

11(2) Actual performance in relation to

deliverables and KPIs set out in PBS/PAES or other portfolio statements

Mandatory Chapter 2

* The reference is to the location of the item in the Requirements - e.g., “A.4” refers to the fourth item in Attachment A.

Appendix E—List of requirements

119

Ref Part of

Report Description Require-

ment

Loca- tion

11(2) Where performance targets differ from

the PBS/PAES, details of both former and new targets, and reasons for the change

Mandatory N/A

11(2) Narrative discussion and analysis of

performance

Mandatory Chapter 2

11(2) Trend information Mandatory Chapter 2

11(3) Significant changes in nature of principal

functions/services

Suggested Chapter 2

11(3) Performance of purchaser/provider

arrangements

If applicable, suggested N/A

11(3) Factors, events or trends influencing

departmental performance

Suggested Chapter 2

11(3) Contribution of risk management in

achieving objectives

Suggested Chapter 2

11(4) Performance against service charter

customer service standards, complaints data, and the department’s response to complaints

If applicable, mandatory N/A

11(5) Discussion and analysis of the

department’s financial performance Mandatory Chapter 2

11(6) Discussion of any significant changes in

financial results from the prior year, from budget or anticipated to have a significant impact on future operations

Suggested Chapter 2

11(7) & E Agency resource statement and summary resource tables by outcomes

Mandatory Appendix A

12 Management and Accountability

Corporate Governance

12(1) Agency heads are required to certify that

their agency complies with the Commonwealth Fraud Control Guidelines

Mandatory Chapter 3

12(2) Statement of the main corporate

governance practices in place Mandatory Chapter 3

12(3) Names of the senior executive and their

responsibilities

Suggested Chapter 3

12(3) Senior management committees and their roles Suggested Chapter 3

12(3) Corporate and operational plans and

associated performance reporting and review

Suggested N/A

12(3) Internal audit arrangements including

approach adopted to identifying areas of significant financial or operational risk and arrangements to manage those risks

Suggested Chapter 3

Appendix E—List of requirements

120

Ref Part of

Report Description Require-

ment

Loca- tion

12(3) Policy and practices on the establishment

and maintenance of appropriate ethical standards

Suggested Chapter 3

12(3) How nature and amount of remuneration

for SES officers is determined Suggested Chapter 3

External Scrutiny

12(4) Significant developments in external

scrutiny

Mandatory Chapter 3

12(4) Judicial decisions and decisions of

administrative tribunals and by the Australian Information Commissioner

Mandatory Chapter 3

12(4) Reports by the Auditor-General, a

Parliamentary Committee, the Commonwealth Ombudsman or an agency capability review

Mandatory Chapter 3

Management of Human Resources

12(5) Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

Mandatory Chapter 4

12(6) Workforce planning, staff retention and

turnover

Suggested Chapter 4

12(6) Impact and features of enterprise or

collective agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and AWAs

Suggested Chapter 4

12(6) Training and development undertaken

and its impact

Suggested Chapter 4

12(6) Work health and safety performance Suggested Chapter 4

12(6) Productivity gains Suggested Chapter 4

12(7) Statistics on staffing Mandatory Chapter 4

and Appendix B

12(8) Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs

Mandatory Chapter 4 and Appendix B

12(9) & B Performance pay Mandatory Chapter 4

Assets management 12(10)-(11) Assessment of effectiveness of assets

management

If applicable, mandatory N/A

Purchasing

12(12) Assessment of purchasing against core

policies and principles

Mandatory Chapter 5

Appendix E—List of requirements

121

Consultants

12(13)-(22) The annual report must include a

summary statement detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website.

Mandatory Chapter 5

Australian National Audit Office Access Clauses 12(23) Absence of provisions in contracts

allowing access by the Auditor-General Mandatory N/A

Exempt contracts 12(24) Contracts exempted from publication in AusTender Mandatory N/A

Financial Statements 13 Financial Statements Mandatory Appendix

D

Other Mandatory Information

14(1) & C.1 Work health and safety (Schedule 2, Part

4 of the Work Health and Safety Act 2011)

Mandatory Chapter 4

14(1) & C.2

Advertising and Market Research (section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory Chapter 6

14(1) & C.3

Ecologically sustainable development and environmental performance (section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory Chapter 6 and Appendix C

14(1) Compliance with the agency’s obligations under the Carer Recognition Act 2010 If applicable, mandatory

N/A

14(2) & D.1 Grant programs Mandatory N/A

14(3) & D.2

Disability reporting - explicit and transparent reference to agency-level information available through other reporting mechanisms

Mandatory Chapter 4

14(4) & D.3

Information Publication Scheme statement Mandatory Chapter 6

Appendix E—List of requirements

122

14(5) Correction of material errors in previous

annual report

If applicable, mandatory N/A

F List of requirements Mandatory Appendix

E

Glossary

123

Glossary

AASB Australian Accounting Standards Board

ACT Australian Capital Territory

AGD Attorney-General’s Department

ANAO Australian National Audit Office

APS Australian Public Service (OPC staff below Executive Level

are classified as APS 1 to 6)

APSC Australian Public Service Commission

assistant drafter a drafter other than a senior drafter

ExCo Federal Executive Council

FMOs Finance Minister’s Orders

FOI Act Freedom of Information Act 1982

FPC First Parliamentary Counsel

IPS Information Publication Scheme

IT information technology

KPI key performance indicator

LIA Legislative Instruments Act 2003

OLDP Office of Legislative Drafting and Publishing

OPC Office of Parliamentary Counsel

PAES Portfolio Additional Estimates Statements

PBC Parliamentary Business Committee (a committee of the

Cabinet)

PBS Portfolio Budget Statement

RAP Reconciliation Action Plan

124

senior drafter First Parliamentary Counsel, a Second Parliamentary

Counsel, Principal Legislative Counsel or a drafter in the

SES

SES Senior Executive Service

SMT Senior Management Team

WCC Workplace Consultative Committee

WHS Act Work Health and Safety Act 2011

Index

125

Index

Accountability Paragraph 179

Advertising and market research Paragraph 301

Agency resource statement and Expenses for

outcome

Appendix A

Audit Committee Paragraph 186

Bills Paragraph 65

Breastfeeding policy Paragraph 271

Consultants Paragraph 294

Contact officer for additional information Paragraph 304

Corporate governance Paragraph 179

Disability reporting Paragraph 274

Drafting resources Paragraph 199

Environmental reporting Appendix C

Ethical standards—maintenance of Paragraph 210

External scrutiny Paragraph 217

Financial performance—discussion and analysis Paragraph 169

Financial Statements Appendix D

First Parliamentary Counsel’s Review Paragraph 1

Freedom of information Paragraph 300

Full-time and part-time employees Appendix B

Human resources—management of Chapter 4

Influences on OPC’s performance Paragraph 147

Index

126

Information technology systems Paragraph 204

Instruments Paragraph 89

Internet address Paragraph 305

Male and female employees Appendix B

Management and accountability Chapter 3

Non-salary benefits Paragraph 252

Operational risks Paragraph 198

Organisational structure Paragraph 48

Outcome and program structure Paragraph 54

Outcome—coherent, readable and readily

accessible Commonwealth laws and instruments

Paragraph 59

Outcome—giving legal effect to intended policy Paragraph 57

Overview of OPC Chapter 1

Parliamentary amendments Paragraph 83

Performance information—actual performance, and

analysis of performance

Paragraph 63

Performance information—review of performance Paragraph 61

Performance pay Paragraph 256

Productivity gains Paragraph 247

Progress towards outcome Paragraph 56

Purchasing Paragraph 290

Purchasing and consultants Chapter 5

Reconciliation Action Plan Paragraph 268

Index

127

Report on performance Chapter 2

Requirements Appendix E

Risk management and fraud control Paragraph 193

Role and functions of OPC Paragraph 46

Salary ranges Appendix B

Senior management team Paragraph 180

SES remuneration Paragraph 215

Staff development arrangements Paragraph 235

Staffing changes and recruitment Paragraph 258

Staffing statistics Appendix B

Staff meetings Paragraph 191

Staff retention Paragraph 261

Studies Assistance arrangements Paragraph 242

Survey of OPC staff Paragraph 219

Training and development Paragraph 234

Training—drafters Paragraph 237

Training—information technology Paragraph 243

Workforce planning Paragraph 259

Work health and safety Paragraph 276

Workplace agreements—coverage Paragraph 250

Workplace Consultative Committee Paragraph 183

Workplace diversity Paragraph 262