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Department of Administrative Services - Report - 1993-94


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Department of Administrative Services

Annual Report 1993-94

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Program Reports, Appendixes and Financial Statements

Department of Administrative Services

Annual Report 1993-94

© C om m onw ealth of A ustralia

ISSN 1032-1713

This w ork is copyright. A part from any u se as perm itted u nd er th e Copyright Act 1968, no p art may be rep ro du ced by any p ro cess w itho ut prior w ritten perm ission from th e

A ustralian G overnm ent Publishing Service. R e q u e sts an d inq uiries concerning rep ro du ction rig h ts sho uld be d irected to

The M an ager, C om m onw ealth Inform ation S erv ices, A u stralian G overnm ent Publishing Service, GPO Box 84, C anberra ACT 2601

Produced by the Australian Government Publishing Service

AUSTRALIAN DEPARTMENT OF ADMINISTRATIVE SERVICES

111 Alinga Street GPO Box 1920

Office of the Secretary

Canberra ACT 2601 Tel. (06) 275 3932 Telex AA 62183

Fax (06) 275 3828

The Hon Frank Walker QC MP Minister for Administrative Services Parliament House CANBERRA ACT 2600

Dear Minister

The 1993-94 Annual Report of the Department of Administrative Services records another year of improved performance. This was evident from the financial results of DAS's commercial businesses and our appropriation funded areas, from strong productivity growth, and from our customers who indicated greater satisfaction with the services we provide.

In accordance with subsection 25 (6) of the Public Service Act 1922 and subsection 34C(2) of the Acts Interpretation Act 1901, 1 submit to you the 1993-94 Annual Report.

Yours sincerely

J Mellors

18 October 1994

Table of contents Letter o f Transmittal iii

Preface vii

Introduction 1

Organisation structure 4

Programs and subprograms 5

DAS corporate overview 8

Program 1 — Business Services 12

1.1 Asset Services 14

1.2 Australian Construction Services 18

1.3 Australian Government Analytical Laboratories 21

1.4 Australian Government Publishing Service 25

1.5 Australian Property Group 29

1.6 Australian Surveying & Land Information Group 33

1.7 Australian Valuation Office 38

1.8 DAS Distribution 42

1.9 DASFLEET 44

1.10 Interiors Australia 49

1.11 DAS Removals 51

1.12 Business Support 54

Commercial Treasury 55

Commercial Marketing 55

Australian Operational Support Services 56

DAS Centre for Environmental Management 57

1.13 Support Services 58

1.14 Property Rationalisation 61

Program 2 — Government Services 64

2.1 Ministerial & Parliamentary Services 66

2.2 Ionospheric Prediction Service 69

2.3 Australian Estate Management 73

2.4 Overseas Property Group 77

2.5 COMCAR 81

Program 3 — Purchasing & Information 85

3.1 Purchasing Australia 87

3.2 Information & Advertising 91

Program 4 — Corporate Management 96

Corporate Resources 98

Corporate Policy & Government Relations 101

Corporate Development 104

Performance Review & Audit 106

v

Table of contents

Program 5 — Commonwealth Grants Commission 109

Program 7 — Commission of Inquiry into ASIS 113

Appendixes 114

Appendix 1 Index to government reporting requirements 115

Appendix 2 DAS staff 116

a) Permanent staff — DAS aggregate 116

b) Temporary staff — DAS aggregate 116

c) By classification and State or Territory 117

d) By program, State and Territory (expressed as full-time equivalents) — Program 1 Business Services 118

e) By program, State and Territory (expressed as full-time equivalents) — Program 2 Government Services 119

f) By program, State and Territory (expressed as full-time equivalents) — Program 3 Purchasing & Information 119

g) By program, State and Territory (expressed as full-time equivalents) — Program 4 Corporate Management 120

h) By program, State and Territory (expressed as full-time equivalents) — Program 5 Commonwealth Grants Commission 120

Appendix 3 Senior Executive Staff 121

Appendix 4 Reconciliation of subprograms and appropriation elements 122 Appendix 5 Equal Employment Opportunity 123

EEO statistics by occupation 126

Appendix 6 Social Justice 127

Appendix 7 Industrial Democracy 129

Appendix 8 Advertising & market research 132

Appendix 9 Internal and external scrutiny 133

Freedom Of Information Act 1982 - Section 8 Statement 133 Freedom of Information contact officers and access points 150 Administrative law statistics 151

Fraud control 153

Summary of Auditor-General’s reports 154

Submissions to inquiries by Parliamentary Committees 155 Appendix 10 Occupational Health & Safety 156

Appendix 11 Glossary of acronyms 160

Addresses — DAS Executive, business units and divisions 162

Index 181

Financial Statements 185

vi

Preface

The structure of the Department of Administrative Services Annual Report 1993-94 is consistent with the Department of Finance program structure for Budget purposes, depicted on page 3. The programs are: 1 Business Services; 2 Government Services; 3 Purchasing and Information; 4 Corporate Management; and 5 Commonwealth Grants Commission. Also included in the portfolio

is the Australian Electoral Commission which prepares and submits its own Annual Report.

The department’s organisation structure appears on page 4. Operationally, DAS is made up of three programs: Commercial; Business Development; and Corporate, each headed by an Executive General Manager.

This report contains reports from programs, subprograms and divisions, appendixes and audited financial statements according to the Requirements for departmental Annual Reports (see Appendix 1 page 115 — Index to government reporting requirements). The following material is required to be collected and is available on request:

Enactments administered by Minister Statutory authorities EEO appointments to statutory bodies List of non-statutory bodies and reporting arrangements Performance pay Training

Interchange scheme Claims and losses Purchasing and IT purchasing Payment of accounts

Consultants Capital works program Environment, heritage and energy consumption Property usage Requests for this information and other matters connected with the Annual Report, should be forwarded to the Annual Report Editor, Department of Administrative Services, GPO Box 1920, Canberra City ACT 2601, phone (06) 275 3175, fax (06) 275 3829.

vii

Introduction

Structure and senior management as at 30 June 1994 Under the ministerial arrangements of 23 December 1993, the Hon. Con Sciacca MP became DAS’s Parliamentary Secretary, taking over from the Hon. Janice Crosio MBE MP. The ministerial arrangements of 25 March 1994 resulted in the Hon. Frank Walker, QC MP replacing

Senator the Hon. Bob McMullan as DAS’s Minister, and, although DAS remained a separate department, it became located in the Finance portfolio. DAS no longer had a Parliamentary Secretary.

DAS experienced a number of senior management and ministerial changes during 1993-94. NoelTanzer, who had been DAS’s Secretary since March 1989, retired, and Andrew Podger became Secretary from 20 December 1993. Mr Podger was transferred as Secretary of the Department of Housing and Regional Development, and John Mellors was appointed as Secretary

of DAS on 26 April 1994.

As a consequence of the Administrative Arrangements Order of 30 January 1994, the Department of the Arts and Administrative Services was renamed the Department of Administrative Services. The Australian Cultural Development Office, Australian Archives and the various arts and cultural

agencies, including the National Film and Sound Archive, the National Science and Technology Centre and the group of statutory agencies which transferred to DAS in 1993, were transferred to the new Department of Communications and the Arts. The Office of Government Information and Advertising was, however, retained by DAS. The Department of Communications and the Arts is reporting for the Arts portfolio for the full 1993-94 year, while DAS reports on the Arts in the financial statements for the period 30 June 1993 to 30 January 1994. However, the figures for the Arts have been excluded from the DAS aggregate tables.

The Secretary and CEO The DAS Mission

John Mellors To exceed our customers’ best

expectations.

DAS Executive Committee

John Mellors Graham Bashford Michael Clarke Ross Divett

The DAS Goals

1 To be the first choice of our customers.

2 To be financially successful.

3 To be a good employer.

4 To be a responsible Australian enterprise.

The DAS Board John Mellors Graham Bashford David Chandler (private sector) Ross Divett Graham Harris (ACTU) John Menadue (private sector) Doug Powell (Defence) Elizabeth Proust (private sector)

The DAS Values

As proud public servants we value: • the belief that we can achieve business excellence in a Department of State;

• people who always put the needs of our customers first;

Department of Administrative Services A nnual Report 1993-94

teamwork and cooperation that: - recognises synergies; - respects differences; and - inspires commitments to the DAS

Vision and Mission; empowering individuals to lead change by: - taking initiatives; - managing risks; and - being innovative;

clarity, consistency and honesty in communications; honesty, fairness and professionalism in all our dealings; and leaders who act on, and communicate these values.

Key Result Areas 1993-94

• To improve customer focus

• To improve sales and marketing

• To improve communication

• To improve leadership

Locations

Head Office—Canberra

Regional Offices—all State capitals, the Northern Territory and the Australian Capital Territory.

In addition, DAS operated a nationwide network of business and service centres. Addresses for all DAS centres can be found

following the Appendixes, on page 162.

2

Introduction

A d m in istra tiv e S e rv ic e s P ortfolio Program Structure as at 30 June 1994

1 BUSINESS SERVICES

1.1 Asset Services

1.2 Aust. Construction Services

1.3 Aust. Govt Analytical Laboratories

1.4 Aust. Govt Publishing Service

1.5 Aust. Property Group

1.6 Aust. Surveying & Land Information Group

1.7 Aust. Valuation Office

1.8 DAS Distribution

1.9 DASFLEET

1.10 DAS Interiors Australia

1.11 DAS Removals

1.12 Business Support

1.13 Support Services

1.14 Property Rationalisation

2 GOVERNMENT SERVICES

2.1 Ministerial & Parliamentary Services

2.2 Ionospheric Prediction Service

2.3 Aust. Estate Management

2.4 Overseas Property Group

2.5 COMCAR

3.1 Purchasing

3 Purchasing & Australia Information 3.2 Information & Advertising

4 Corporate Management

5 Commonwealth Grants Commission

6 Australian Electoral Commission (reports independently)

7 Commission of Inquiry into Australian Secret Intelligence Service

3

Department of Administrative Services A nnual Report 1993-94

D ept of A d m in istra tiv e S e rv ic e s Organisation Structure as at 30 June 1994

MINISTER FOR ADMINISTRATIVE SERVICES

Secretary & CEO

DAS BOARD

EGM COMMERCIAL

W e st A ustralia

Sth A ustralia

Victoria

EXECUTIVE COMMITTEE (EXCOMj

EGM BUSINESS DEVELOPMENT

Aust. - A s s e t Services

—Construction Services _ A u s t. E state

M an ag em en t

Aust. Govt Publishing Service Aust. Govt

Aust. O perational —Analytical

Support Services L aboratories

- A u s t . Property Aust. Surveying &

Group — Land Information

Group

Commercial ~ T re a su ry & Aust. Valuation

M arketing ' O f f i c e

DAS Centre for -C O M C A R

Environmental M anagem ent Ionospheric

~ D A S Distribution Prediction Service

—DASFLEET

O verseas Property

— DAS Removals Group

— Interiors A ustralia — Support Services

Regional Regional

Coordinators: Coordinators:

N ew South W ales

Aust. Capital Territory

EGM CORPORATE

Corporate D evelopm ent

Corporate Policy ~& G ovt Relations

.C o rp o rate R esources

M inisterial & -P arliam entary Services

Purchasing A ustralia -(Policy & Development)

Purchasing -A u stralia (Operations)

Regional Coordinators:

Q ueensland

N orthern Territory

Tasm ania

Perform ance Review & Audit

4

Introduction

Programs and subprograms

The Department of Administrative Services was structured into three programs at 30 June 1994, each containing a number of businesses or subprograms. DAS also provided support for the AS1S Inquiry. Also in the portfolio are the Commonwealth Grants Commission and the Australian Electoral Commission.

Program 1 — Business Services

• Asset Services — a large maintenance and property improvement contractor which provides maintenance, repair and related services.

• Australian Construction Services (ACS) — an architectural and engineering consultancy for national and international projects which also provides construction project management services.

• Australian Government Analytical Laboratories (AGAL) — provision of independent services in analytical chemistry and microbiology to public and private sector clients.

• Australian Government Publishing Service (AGPS) — editing, printing, publishing and distribution services for all producers and consumers of Commonwealth information.

• Australian Property Group (APG) — real estate and portfolio management services to government property users.

• Australian Surveying & Land Information Group (AUSLIG) — a specialist in surveying, mapping, information systems and consultancy services.

• Australian Valuation Office (AVO)— advice to government departments and agencies on the value of real property and non-current assets.

• DAS Distribution — goods and document storage, transport, international freight forwarding and distribution services.

• DASFLEET — supplier of passenger and commercial vehicles to Commonwealth Government departments and agencies.

• DAS Interiors Australia — the Government’s interior design and fitout business which arranges the design and construction of internal working environments in new or refurbished, including heritage, buildings.

• DAS Removals — a broker for household and workplace removals and storage within Australia and to and from overseas locations.

• Business Support — Commercial Treasury, Commercial Marketing, Australian Operational Support Services (AOSS) and DAS Centre for Environmental Management (DASCEM).

Commercial Treasury provides a corporate perspective on the business planning, treasury management and performance monitoring of the DAS commercial businesses, and provides advice on business specific issues.

Commercial Marketing provides a range of marketing services to the DAS businesses and supplies the DAS Board and Executive with strategic sales and marketing analysis.

AOSS was established to satisfy the needs of the Department of Defence through the Commercial Support Program, which is a program to contract out various non-core activities of Defence. DASCEM operates in the environmental management field. Its functions include energy management, assessment and remediation of contaminated sites and halon management and recovery.

• Support Services — a comprehensive range of business support services which include payroll and personnel, staff development, accounting, records management, library, general business support and information technology consultancies and services.

5

Department of Administrative Services A nnual Report 1993-94

• Property Rationalisation — rationalisation of properties occupied by the former Transport and Storage Group: DAS Distribution, DASFLEET, COMCAR and DAS Removals.

Program 2 — Government Services

• Ministerial & Parliamentary Services — support services including accommodation, information technology, staff and travel related services to Ministers, parliamentary office­ holders, other members of the Commonwealth Parliament and their staff.

• Ionospheric Prediction Service (IPS) — services in the fields of defence, communications, aviation, geophysical exploration, space activities and national and international science.

• Australian Estate Management (AEM) — activities relating to the Commonwealth’s owned real property estate. These include management and construction of major office buildings, sales of surplus Commonwealth land and buildings and administration of land acquisition policy.

• Overseas Property Group (OPG) — office and residential accommodations in overseas locations for Commonwealth departments and agencies.

• COMCAR — a car-with-driver service to a wide range of Commonwealth customers.

Program 3 — Purchasing and Information

• Purchasing Australia — development, coordination and assistance with the Commonwealth’s purchasing and disposals policy, seeks to ensure that opportunities for Australian and New Zealand industry development are maximised through Commonwealth purchasing, manages the Commonwealth’s common use contracts and facilitates the linking of buyers and sellers in the Commonwealth market for their mutual benefit.

• Office of Government Information and Advertising (OGIA) — advice to government departments and agencies on advertising, market research, public relations, strategic planning, marketing, government information policy and the content and appropriateness of printed material for public use.

AUSPIC, the Government Photographic Service, provides a photographic service to Government House, the Prime Minister, Federal Ministers, Opposition office holders, Members and Senators and departments. AUSPIC also covers events of national importance to provide historic records.

OGIA also provides the secretariat for the Ministerial Committee on Government Information and Advertising (MCGIA) which oversees all government information activities.

Program 4 — Corporate Management

• Departmental Executive

• Corporate Resources — strategic planning and management of the department’s human and financial resources.

• Corporate Policy and Government Relations — executive and secretariat support, policy and legal advice and communications services to the Minister, Secretary and DAS Executive, and to a range of internal and external customers. It also provides an advisory service on Australian and foreign honours and awards, Australia’s national symbols, prerogative matters and environment and heritage issues that require a corporate focus.

• Corporate Development — services to support the introduction and improvement of customer focus skills and quality service throughout the department; and high level management, marketing and communication assistance to DAS businesses.

6

Introduction

• Performance Review and Audit — internal audits of all DAS operations, carries out investigations of alleged frauds and management irregularities, provides education, advice and support to operational areas of DAS, and manages the department’s responsibility to government to develop and implement annual performance evaluations.

Program 5 — Commonwealth Grants Commission • Advises Government about the distribution of Commonwealth general revenue grants.

Program 6 — Australian Electoral Commission

The function of the Australian Electoral Commission (AEC) is to ensure a fair and equitable Commonwealth electoral system. The commission comprises three subprograms: Parliamentary Elections and Refcrcndums; Industrial and Analogous Elections; and Program Support. The AEC produces its own Annual Report.

Program 7 — Commission of Inquiry into Australian Secret Intelligence Service Under the Administrative Arrangements Order the Department of Administrative Services is responsible for providing administrative support for Royal Commissions and certain other inquiries. In 1993-94, these comprised the Commission of Inquiry into ASIS and the Centenary

House Leasing Inquiry. The Centenary House Leasing Inquiry is reported under Program 4.

The Hon. G J Samuels AC QC and Mr Μ H Codd AC were appointed on 15 March 1994 to inquire into and to report, by 31 December 1994, on matters relating to the Australian Secret Intelligence Service.

7

DAS corporate overview

Significant developments In 1993-94 the department underwent significant reorganisations. These included losing Australian Archives, the Australian Cultural Development Office and cultural agencies to the Department of Communications and the Arts, whilst retaining the Office of Government Information and Advertising (OGIA). OGIA and Purchasing Australia amalgamated to form the new Purchasing and Information Program.

The Support Services subprogram moved from the Government Services Program to the Business Services Program and COMCAR moved from the Business Services Program to the Government Services Program. AUSLIG was restructured, AGPS revised its management structure and Stage 1

of the AEM review was completed.

A number of DAS businesses revised their working practices: self-managing teams were implemented in a number of Asset Services’ operations centres; AGPS’s overall efficiency and effectiveness were improved through the establishment of the AGPS Management Board, cost containment and a refocusing of customer relations; APG’s recruitment and staff development strategies resulted in a significant increase in qualified staff, higher profit per employee and increased customer satisfaction; and AUSLIG introduced total quality service and continuous improvement programs.

Draft workplace agreements for several DAS businesses were developed, with COMCAR’s agreement being signed in June 1994.

DAS reinforced its commitment to quality assurance in 1993-94 with 49 of Asset Services’ 50 work sites and most AUSLIG offices successfully achieving quality assurance accreditation to Australian standards. DASFLEET’s WA office also achieved accreditation.

AGAL obtained quality systems accreditation in all parts of its organisation.

COMCAR was awarded the Government Technology Productivity Gold Award. This award was for the COMCAR Modernisation Project which provided improved service and increased efficiencies in reservations, allocations, accounting and management information systems.

Purchasing Australia contributed to policy formulation on the role of purchasing in industry development by providing submissions and evidence to the House of Representatives Standing Committee on Industry, Science and Technology’s Inquiry into Australian Government Purchasing Policies and to the Government’s White Paper on Employment and Growth.

Stage one of the review of the Australian system of honours and awards (the Committee of Inquiry into Defence and Defence-related Awards) was successfully completed and the Government was briefed on its outcomes.

DAS Corporate Han Late in 1993-94 preparation of the next three-year Corporate Plan commenced. The approach was to involve staff from all regions of DAS, and from all levels and business units. The plan will

set out the key actions, and it addresses the need to meet changing circumstances and to ensure all parts of the department continue to provide value to customers, the Government and the Australian community. The plan will identify key areas where a coordinated approach will best meet customers’ needs. The DAS Corporate Plan provides the context for the individual units

within the department to revise their business plans.

8

Corporate overview

Busuiess Services Trust Account In 1993-94, the Business Services Trust Account (BSTA) generated a net operating profit of $44,761 million reflecting 66 per cent improvement on 1992-93 ($16,834 million). As a result of this continued growth in profit, the accumulated loss figure has been nearly eliminated in

1993-94, reducing from $25,607 million in 1992-93 to $0,470 million in 1993-94. This result is after an $18 million dividend payment was made to the Consolidated Revenue Fund.

At 30 June 1994, total assets for the BSTA rose to $810,965 million ($792,026 million at 30 June 1993) and net assets to $301,039 million ($270,829 million at 30 June 1993). The return to the Commonwealth during 1993-94 on equity from trading was 12.44 per cent (12.12 per cent in 1992-93).

Total operating revenue fell by 2.5 per cent reflecting the continuous pressure that most of the BSTA businesses face from operating in a highly competitive market. Businesses maintained their focus on addressing improvements in the efficiencies of their operations with total operating expenses continuing the downward trend of recent years, falling 3 per cent from 1992-93.

Financial and staffing resources summary — DAS aggregate

Total appropriation expenditure for 1993-94 was approximately $780 million with adjustments of approximately $422 million; total outlay to the department being approximately $358 million compared with approximately $362 million in 1992-93. Actual staffing resource usage was 8287 against a budget of 8446.

The table below identifies program and running costs of the department on a cash basis with comparative figures for 1993-93 and the 1993-94 Budget. Appendix 4 is a reconciliation of the subprograms of the department and appropriation elements for 1993-94 expenditure.

The table also presents the financial position of the department on an accrual basis. This information is sourced from the financial statements of the subprograms and businesses.

1992-93 1993-94 1993-94

Actual Budget Actual

$('000) srooo) $('000)

BUDGETARY (CASH) BASIS Program c o sts 450 823 700 844 561 359

(excluding running co sts) Running c o sts (Division 115) 130191 154346 145338

(Division 117) 71020 72 292 72185

(Division 127) 0 1673 1396

Total ap p ro p ria tio n s 652034 929 155 780278

Less a d ju stm e n ts 289697 442 258 421 885

Total o utlays 362337 486 897 358393

Total rev en u e 311428 435698 398 578

STAFFING Staff years (actual)* 9357 8446 8 287

S taff Years (Actual): th e A verage Staffing Level of th e d ep artm en t or th e real num ber of staff years (i.e. 3 p eop le w ho w orked for 4 m onths each , eq u als 1 staff year).

9

Department of Administrative Services A nnual Report 1993-94

ACCRUAL BASIS

1993-94 Actual $'000

Total o p eratin g e x p e n se s 984017

Total o p eratin g re v en u es 788 553

N et co st of services 195464

Total rev en u e from G overnm ent 253184

O p erating re su lt 57720

O perating re su lt an d ex traordin ary item s 57836

Total a s s e ts 855123

Total liabilities 541873

A d m inistered e x p e n se s 430748

A d m in istered re v e n u e s 351 020

A dm inistered a s s e ts 4303653

A dm inistered liabilities 705993

Social Justice and Equity overview

The Access and Equity Unit exists within the Corporate Policy and Government Relations Division to raise the profile of access and equity and social justice in the department and to provide one contact point on these issues. DAS is a member of the interdepartmental Access and Equity Contact Officers’ Network.

DAS contributed to the 1993 cross-portfolio Access and Equity Annual Report to the Prime Minister, and was cited as an example of an agency including Access and Equity modules in staff and management training programs.

For further information on Affirmative Action Purchasing Policy; International Year of the Indigenous People; International Year of the Family; Royal Commission into Aboriginal Deaths in Custody; and the Women’s Desk Officer, see Appendix 6 page 127.

Equal Employment Opportunity (EEO)

DAS has a dedicated EEO unit located within the Corporate Resources Division. EEO Coordinators are located in each region and assist in EEO initiatives and provide local advice and support on EEO matters. EEO Contact Officers and Sexual Harassment Contact Officers are available at the subprogram level.

During 1993-94 the 1992-94 EEO Action Plan was implemented. This included:

• distributing the DAS EEO standards to all staff;

• continuing EEO data monitoring and reporting;

• implementing business/subprogram specific EEO projects;

• incorporating EEO indicators in performance assessments for SES and Senior Officers; and

• progress on implementing the Aboriginal and Torres Strait Islander Recruitment and Career Development Plan.

Major achievements inducted: • implementing the 1992-94 DAS EEO Action Plan;

10

Corporate overview

• implementing the department’s Aboriginal and Torres Strait Islander Recruitment and Career Development Plan;

• DASCEM’s participation in the Interlink Work Observation Program, a work experience program for migrant professionals — DASCEM offered two placements in 1993-94;

• numeracy and literacy programs for staff from non-English speaking backgrounds in Asset Services, Western Australia and English language training in AGPS, DAS Distribution and for staff on the Staffing Adjustment Program; and

• development and delivery of a pilot cross cultural awareness program to DAS staff in Northern Territory.

DAS continued to reduce its overall staffing levels during 1993-94. This had an impact on DAS’s capacity to recruit staff from EEO target groups including Aboriginal and Torres Strait Islander people and people with disabilities. Although DAS has reduced its staff by approximately 1600,

statistics to the end of June 1994 (Appendix 5) indicate that the percentage of EEO group members has changed only marginally.

For further EEO information, see Appendix 5, page 123.

Internal and external scrutiny overview All cases of suspected fraud were evaluated in accordance with the terms of the Memorandum of Understanding between DAS and the Australian Federal Police (AFP). Where it is apparent that a fraud investigation is warranted, the investigation may be undertaken by the AFP, the department’s Fraud Control Unit (FCU) or a joint task force. Where a case does not support a fraud investigation, details are passed to management for consideration or disciplinary action under the Public Service Act 1922.

The FCU received 40 cases during 1993-94. Of these, 28 were completed. A total of 7 cases was referred to the AFP for investigation, taking to a total of 13 cases currently being handled by the AFP. Prosecution action was completed for two cases. Action was recommended under the Public Service Act 1922 for 6 cases.

DAS’s Internal Audit Unit conducted 47 internal audits during the 1993-94 financial year. Of these, two were conducted within the Australian Cultural Development Office prior to its transfer to the Department of Communication and the Arts.

During 1993-94, there were no Ombudsman reports, decisions of courts and tribunals nor Privacy Commissioner reports relating to DAS.

Further information on internal and external scrutiny, including Freedom of Information statistics and parliamentary committee inquiries, can be found in Appendix 9 page 133.

11

Program 1 — Business Services Organisation A sset S e rv ices General Manager

Ian W oonton

DAS Distribution General Manager M ichael W right

Australian V aluation Office General Manager M alcolm Coleman

DAS Rem ovals General Manager Ja n Mills

Australian Construction S e rv ices General Manager Terry H alestrap

Australian Surveying and Land Information Group General Manager Graham Bashford

Australian Government Publishing Service General Manager Alan Law

Support S ervices General Manager David Rome

Australian Government A nalytical Laboratories General Manager Drew Clarke a /g

A ustralian Property Group General Manager Cathy Argali

DASFLEET General Manager S teve Palywoda

B u sin ess Support General Manager Greg W illiam s

Property R ationalisation Property Rationalisation Board

Interiors Australia General Manager Ewan Hazeldine

Objective

Within a commercially competitive environment, to provide a wide range of services to the Commonwealth Government and other customers and to provide a return to government on its investment.

Financial and staffing resources summary P ro g r a m 1 — B u s i n e s s S e r v i c e s

1 9 9 2 - 9 3

A c t u a l

$C000)

1 9 9 3 - 9 4

B u d g e t

$f000)

1 9 9 3 - 9 4

A c t u a l

$C000)

B U D G E T A R Y ( C A S H ) B A S I S

Program c o sts 66434 92015 67252

(excluding running co sts) Running c o sts 55770 55942 53452

Total ap p ro p riatio n s 122204 147 957 120704

Less a d ju stm e n ts 17 736 117242 87922

Total outlays 104468 30715 32782

Total rev enu e 40132 115944 58 890

STAFFING Staff y ears (actual) 7 931 7 089 6939

12

Program 1 — Business Services

ACCRUAL BASIS

1993-94 Actual $'000

Total o p e ra tin g e x p e n se s 845 643

Total o p e ra tin g re v en u es 795 280

N et c o st of services 50363

Total rev en u e from G overnm ent 102845

O p erating resu lt 52482

O p erating re su lt an d extraordinary item s 52482

Total a s s e ts 825 928

Total liabilities 510 870

A d m in istered e x p e n se s 0

A d m in istered re v e n u e s 0

A dm inistered a s s e ts 158174

A dm inistered liabilities 180 764

13

Department o f Administrative Services A n n u a l Report 1993-94

1.1 Asset Services

Organisation

General Manager Ian Woonton ______ I_ _ _ _ _ _ _

Business Management Strategic Management Assistant General Manager Assistant General Manager Ken S w een ey Dennis Colombo

Special Projects Assistant General Manager G raem e Lowe

State Managers

New South Wales Victoria/Γasmania Queensland

Bob R osen Paul Rake N oel S h ack lad y

South Australia Brian T ierney Northern Territory F erg u s M cP h erso n

Western Australia Bob Evans

Australian Capital Territory Ken G osbell

Objective

To provide maintenance, installation and construction services to help customers make the best use of their buildings, plant and equipment.

Description of functions Asset Services is a large maintenance and property improvement contractor. It provides reliable maintenance, repairs and related operational services to its customers’ valuable buildings, plant and equipment. The customer sets the balance between prevention and repair while Asset Services ensures value-for-money and ease of access through its convenient Australia-wide network of depots.

The business offers the following services:

• assessing the condition of buildings and engineering services; • preparing asset life cycle analysis and costings; • assisting customers to select appropriate maintenance standards; • management of maintenance; • delivery of maintenance services; • property improvement including additions, alterations and refurbishment of buildings; and • professional advice on other customer needs such as energy management and asbestos

removal.

Strategies and performance outcomes

In 1993-94, Asset Services continued to build on its existing strategies. The business attempted to enhance competitiveness by strengthening customer relationships and providing innovative services, commercial pricing and reducing costs.

14

Program 1 — Business Services 1.1 Asset Services

Asset Services planned to offset sales reductions, which were anticipated as a result of untying of customers, by increasing its market share with selected Commonwealth agencies. In addition, the business expected higher margins from increased effectiveness and efficiencies.

Asset Services’ key strategies focused on:

Customer sendee quality

Since 1 July 1993, budget funded departments have had freedom of choice in their selection of service provider for maintenance of their buildings and engineering services. Asset Services wants to be the first choice of customers through recognition as an innovative and effective provider of maintenance planning and delivery. The two main initiatives being pursued were:

• quality assurance and continuous improvement program, with external accreditation; and

• customer focus program aimed at achieving a recognised enhanced service to customers.

P e r f o r m a n c e O u t c o m e

The business achieved its goal of being its customers' first choice in satisfying their maintenance needs. Asset Services was recognised by its customers as an innovative and effective provider of maintenance planning and delivery. The business achieved quality assurance accreditation to the Australian standard in 49 of its 50 sites. It is expected that the remaining site will achieve accreditation before the end of 1994.

Marketing and revenue generation The marketing thrust in 1993-94 was on retaining existing key departmental customers and increasing provision of maintenance services to Government Business Enterprises.

P e r f o r m a n c e O u t c o m e

In 1993-94 Asset Services:

• put in place long term maintenance service agreements with key customers such as the Department of Defence, the Australian Estate Manager, Telecom and the Department of Social Security (DSS);

• responded and contributed to Defence’s Commercial Support Program; • extended service agreements with the Department of Veterans Affairs and state health authorities to deliver maintenance services after handover of the repatriation hospitals to the state governments;

• attempted to regain maintenance work from Commonwealth agencies such as Federal Airports Corporation, Commonwealth Scientific and Industrial Research Organisation and the Commonwealth Bank; and • developed further its strategic maintenance methodologies. Not all the marketing and revenue generation strategies which were implemented turned into

sales revenue. Nonetheless, sales for maintenance products were close to target for 1993-94.

Human resourcing The Asset Services business is labour intensive. Success depends on having a highly motivated and commercially oriented workforce.

P e r f o r m a n c e O u t c o m e

In 1993-94 Asset Services was successful in implementing:

• increased commitment by means of employee participation and contribution at workplace change groups at all operational areas;

15

Department o f Administrative Services A n n u a l Report 1993-94

• increased effectiveness and productivity by implementing self-managing teams at most of the operations centres; and • systematic communication with staff on the progress and direction of the business and specific actions required to achieve on-going success.

A productivity improvement agreement to implement workplace reforms was negotiated enterprise bargaining during the financial year. It is anticipated that an Asset Services productivity improvement agreement will be approved in 1994-95.

Fbumdal management In 1993-94 Asset Services attempted to improve financial performance by increased effectiveness and efficiency. The business concentrated on:

• enhanced job estimating, planning and control;

• productivity improvements in the workplace; and

• transfer of work from subcontractors to existing in-house resources.

P e r f o r m a n c e O u t c o m e

The operating result for 1993-94 was well below plan. Customers exercised their right to choose other service providers. Sales for 1993-94 were well below expectation. The shortfall was in the property improvement product. Asset Services’ poor trading result reflected its

inability to quickly adjust costs to match an unexpected fall in sales.

The cost structure of the business was based on the predicted sales income of $317 million. The subsequent sales drop was not evenly distributed. There were inconsistencies across states and even within states. Resources could not be readily reduced nor could they be redistributed to meet the fluctuations in sales. Delays in transferring staff to the Staffing Adjustment Program had a direct effect on the trading line from which the business could not recover in

1993-94.

Financial and staffing performance

1992-93 1993-94 1993-94

Actual Plan Actual

$'000 $'000 $O00

FINANCIAL Total o p eratin g rev enu e 345781 322841 302722

O perating profit / (loss) 8321 7961 -12541

N et operating p ro f it/( lo s s ) 1588 8932 -19757

R evenue per em p lo y ee 107 111 103

C osts p er em ployee 105 109 108

O perating profit/(loss) p er em ployee 2.58 2.75 4 .2 8

O perating profit a s % rev enu e 2.41% 2.47% 4 .14 %

Return on total a s s e ts (%) 7.49% 6.50% -8.35%

Return on n et a s s e ts (%) 27.24% 22.40%-56.22%

D eb tors turno ver days 44 45 39

OTHER Q uality a ssu ra n c e accred itatio n N.A 100% 100%

Enter into service a g re e m e n ts w ith m ajor cu sto m ers N.A 50% 44%

(per ce n t of s a le s value) STAFFING S taff Years (Actual) 3228 2900 2930 1

16

Program 1 — Business Services 1.1 Asset Services

«Dutlook 1994-95

The business anticipates a further sales fall in 1994-95 as the full effect of the untying of the market takes effect. The business will restructure its operations to meet a cost structure below the anticipated sales level without destroying the skills base within the business. This restructure will provide a platform for growth in future years.

Asset Services will concentrate on: • continuing to build visible value into its services/products; • continuing the customer focus program by strengthening relationships with customers; • enhancing its marketing methodology to make it more systematic; • adjusting the mix of direct and support staff; • optimising gains from its new information technology applications; • continuing the training program; and

• concentrating more on leadership skills development.

17

Department o f Administrative Services A n n u a l Report 1993-94

1.2 Australian Construction Services

Organisation

General Manager Terry Halestrap

Business Development National Manager M ichael W illiam s

Operations National Manager Bob R osenbauer

Finance

National Manager Hisham El-Ansary

State Managers

Quality

National Manager Brian Horan

Human Resources National Manager Cliff Sam son

N ew South Wales Victoria/Tasmania C h a rle s D iam ond A llan K e rsh aw

Queensland Bill V allance

Western Australia Phil H arlo w

South Australia Northern Territory Aust. Capital Territory

S a m K oukourou Bill Bellion M ervyn Cole

Objective

To provide construction design and management consultancy services for national and international projects.

Description o f functions The core business of Australian Construction Services (ACS) is to provide:

• professional consulting services, which include architectural design and documentation and multidisciplinary engineering documentation and design;

• project management services, which include project management, construction management and construction supervision; and

• laboratory services which include testing of building products and materials, to Commonwealth departments and authorities.

Strategies To meet its objective, ACS has adopted the following strategies:

• understanding the culture of its customers and focusing on their needs;

• providing the highest level of service to the complete satisfaction of its customers;

• managing operations to ensure that work is completed within time and cost constraints, and to realise anticipated profit; and

18

Program 1 — Business Services 1.2 Australian Construction Services

"· creating a workplace environment that earns the respect of staff who are committed to achieving its goals.

Performance information

ACS measures its performance by financial performance indicators supported by a range of quantitative cost, revenue and productivity targets.

Performance outcome

The most significant developments for ACS in 1993-94 included:

• a fall in net revenue from $79,709 million in 1992-93 to $59,343 million in 1993-94, as market share continued to adjust;

• a significant fall in costs, associated with the transfer of 343 staff to the DAS Staffing Adjustment Program;

• an actual loss $4,069 million against a budgeted operating loss of $7.0 million; and

• significant involvement with Aboriginal and Torres Strait Islander people in the course of delivery of consultancy services to communities and ATSIC.

Financial and staffing performance

1992-33 Actual SOOO

1993-94 Plan SOOO

1993-94 A ctual SO00

FINANCIAL N et o p eratin g rev en u e * 79709 80036 59343

Operating p r o f it/( lo s s ) -7 0 5 3 - 7 000 - 4 069

N et operating profit / (loss) -1 6 9 1 3 0 - 4 360

N et rev en u e p er em p lo y ee * 71 103 79

N et c o sts p er em p loy ee * 77 112 84

O perating profit/(loss) p er em p lo y ee -6 .3 0 -9 .0 3 -5.39

O perating profit a s % rev en u e -8.85% -8 .7 5%-6 .8 6%

Return on to tal a s s e ts (%) -5 .7 2% -8 .3 2%-3 .4 2 %

D ebtors tu rn o v er days 47 43 47

STAFFING Staff y ears (actual) 1120 775 755

* N et of co n tracto r re c e ip ts an d p ay m en ts

Outlook ACS starts 1994-95 ready to capitalise on the success of decisions made and implemented in 1993- 94. The restructuring of ACS has provided the platform for structural stability and operational progress through the year.

Of the four precepts underpinning ACS — revenue, costs, performance and human resources — the winning of revenue will be the most challenging. Competition from the private sector for work in ACS’s traditional market is not only expected to increase, but to be more competitive as it gains better understanding of this market, resulting in more focused marketing and improved sales.

19

Department of Administrative Services A n n u a l Report 1993-94

ACS's response will be to focus on three strategies: improved marketing, sales and performance in traditional markets; expansion into new markets with traditional and new services; and the development of new commercial directions.

Trading costs have now been stabilised and are controllable within budget through functional responsibility and accountability.

ACS expects a continued improvement in its performance through better project appreciation, process methodology and commercial focus.

Increased improvement in staff relationships and productivity is expected through high profile individual training and development programs initiated within ACS, enhanced by a better workplace environment achieved through an enterprise agreement with the unions.

Emphasis on a national cultural identity within ACS will facilitate the objective of ACS operating as a national organisation with the competitive strengths giving greater flexibility, more options, and providing better customer service.

With stabilisation of net revenue levels in 1994-95 expected at $60 million, and costs now below projected revenue, ACS expects to return a profit in 1994-95.

20

Program 1 — Business Services 1.3 Australian Government Analytical Laboratories

1.3 Australian Government Analytical Laboratories

Organisation

General Manager and Australian Government Analyst Drew Clarke a/g

Deputy Aust. Government Analyst and Assistant General Manager Dr Anne W eekley i

Principal Scientist Business Manager Technical Specialist S ta n le y G allow ay Principal Scientist Dr J o e S m ith

Research & Development Director Dr Bob W ells Regional Managers

New South Wales J o h n D alins -

Western Australia R onald Hogg -

Victoria Keith L aw s-H erd

South Australia -D r P ieter S c h e e lin g s

Tasmania T ony C haffey

Objective To safeguard Australian consumers and producers by delivering analytical services in chemistry and microbiology.

Description of functions

The Australian Government Analytical Laboratories (AGAL) provides essential services in analytical chemistry and microbiology so that public and private sector clients can meet their responsibilities and client Australian industries can compete for domestic and overseas markets with quality products.

AGAL’s role is:

• to maintain in the public interest an independent response capability in chemistry and microbiology able to support regulatory policies protecting the health, safety and revenue of the nation; and

• to provide, in a timely and efficient manner, quality, independent services in analytical chemistry and microbiology to enable:

- client Government departments and agencies to meet their responsibilities in protecting public health, collecting revenue on imported goods, enforcing laws against the importation of illicit drugs or drugs of abuse and protecting the good name of export agricultural products; and

- client Australian industries to compete for domestic and overseas markets with products independently certified for quality and safety.

AGAL also seeks to assist in and promote, on a nationwide basis, the maintenance of high analytical standards and good laboratory practices in chemistry and microbiology.

21

Department of Adm inistrative Services A nnual Report 1993-94

AGAL’s primary market is the Commonwealth Government. However, the general public and the private sector are also important client segments. Services are provided for commercially competitive fees. Most of AGAL’s clients are untied: tied arrangements are in place for analytical work covering health, safety and drugs required under Customs (Prohibited Imports) Regulations, Trade Practices and Quarantine Acts, including imported foods inspection.

The maintenance of laboratory response capacity, development of standards and quality in laboratory analyses, and the provision of scientific information and advice to the Government are funded from the Budget as public interest activities (community service obligations — CSO).

Strategies and performance outcomes

AGAL has completed its third year of full commercial operation. Its priorities have been to ensure that AGAL continues to improve on its past performance and becomes an effective, efficient and profitable organisation.

Commonwealth clients provided 42 per cent of revenue excluding CSO. This included work for the Australian Federal Police, and the imported foods inspection program and the national residue survey activities of the Department of Primary Industries and Energy. Work for government business enterprises (12 per cent), state government (18 per cent) and private sector clients was mainly environmental testing and the provision of compositional and nutritional labelling for the food industry. AGAL focused its marketing efforts on complex testing and on testing requiring considerable levels of quality control.

AGAL has six major business strategies. Organisational performance against these strategies was measured by financial results and other indicators, and by delivering CSO services according to the agreed schedule.

To completely satisfy our customers' needs by providing personalised services developed through a constant cycle of customer/market surveys, skills development, process improvement and feedback assessment

P e r fo r m a n c e O u t c o m e

AGAL has participated in the Customer Focus program and has obtained personal feedback from customers on its performance. Very significant improvements were achieved in the timing and delivery of results and this was acknowledged by customers.

To differentiate our analytical services from our competitors through our use of highly trained and customerfocused staff, our use of established but more specialised instrumentation and procedtcres, mid our reputation for delivering quality and innovative services at competitive pices.

P e r f o r m a n c e o u t c o m e

AGAL has differentiated its services on the basis of quality and innovation, and is putting further emphasis on these areas. Quality certification to the Australian Standard 3901 has been achieved for the whole operation. This involved a sustained effort over some 18 months and consumed considerable resources. The next step will be to take advantage of this achievement, building on the association between AGAL and quality and service.

22

Program 1 — Business Services 1.3 Australian Government Analytical Laboratories

To develop partnership agreements with customers and adopt strategies that will facilitate joint managenwnt of ptograms to improve the outcomes for both parties. Such partnerships will strengthen the bonds with current clients and be used as die vehicle by which additional value added services and new products are introduced.

P e r f o r m a n c e o u t c o m e

AGAL has a number of ongoing partnerships with clients and these have resulted in additional, higher profile, joint projects generally related to wider industry association concerns. The number of such partnership arrangements has not been as many as predicted, but the strategic direction is correct, and is being actively pursued.

To seek new business through a conceited national sales program, with environmental and food contaminant monitoring as die central theme.

P e r f o r m a n c e o u t c o m e

AGAL’s national sales programs achieved only modest success in a very tight market. Consequently, AGAL has not seen the increase in growth expected. Sales have increased this year but the prevailing market price has fallen resulting in decreased profitability.

To improve business efficiency and pmductivity through quality systems management, die application ofbestpmctice, cost conbvl and more effective management of small volume work

P e r f o r m a n c e o u t c o m e s

Quality systems certification has been obtained in all parts of the organisation. This has resulted in additional overheads which have not yet been overtaken by the productivity gains that will eventuate. Quality systems has identified areas for improvement, particularly in the work systems related to processing large volume samples. Costs have been constrained, the largest of these have been rents where savings of 30 per cent have been achieved. AGAL is

discouraging unprofitable small volume work.

To develop appropriate competitor and threat response strategies which emphasise our role in government, independence, national network, comnitment to quality and commercial operating status.

P e r f o r m a n c e o u t c o m e s

AGAL has strengthened its national network through the establishment of centres of excellence and improved service delivery arrangements. Market research into competitor behaviour has commenced. Current marketing strategies emphasise AGAL’s independence and role in government.

Performance indicators and results AGAL ended the year with a loss of approximately $2.6 million. The main influence on this result was the decision of the Department of Primary Industries and Energy to decrease the size of the national residue survey program from $4.5 million per annum to $1.6 million and to put the program out to tender in small parcels. Although AGAL won $1.2 million of this work, and secured other work contracts from other clients, there was a revenue gap of some $3 million to the planned budget. AGAL was unable to make up this difference through its marketing efforts and

was not able to reduce its staff numbers and resources quickly in line with market demand.

23

Department o f Administrative Services A n n u a l Report 1993-94

AGAL is now preparing to enter 1994— 95 with a staff reduction of 45, arising from declared excess staff and some voluntary redundancies. This together with an enhanced and aggressive sales and marketing program for the new year will enable a substantial improvement in business performance in 1994-95.

Financial and staffing performance

1992-93 1993-94 1993-94

Actual Plan Actual

$000 SOOO $■000

FINANCIAL Total o p eratin g re v e n u e 19493 20426 17 592

O perating profit / (loss) -1 0 0 7 -450 -2 6 2 8

N et o peratin g p ro f it/( lo s s ) -7 28 -450 -2 5 8 5

R evenue p er em p lo y ee 74 79 70

C osts per em p loy ee 78 80 81

O perating p ro fit/(lo ss| p er em ployee -3.83 -1.73 -10.47

O perating profit a s % rev enu e -5.17% -2 .2 0% -14.94%

Return on total a s s e ts (%) ^1.00% -0.12% -14.39%

Return on n e t a s s e ts (%) -13.88% -5 .8 3% -36.50%

D ebtors turno ver days 39 59 50

STAFFING S taff y ears (actual) 263 260 251

Review

Price Waterhouse was commissioned to carry out an evaluation of the economic and social benefit of the Australian Government Analytical Laboratories. The social benefits accruing to the community from AGAL’s existence were difficult to quantify. However, the economic benefit of the CSO program was conservatively estimated at 7 or 8 times its cost. This values AGAL CSO program at about $45 million per annum. The review concluded that, given that the CSO program is one third of the activities, and the majority of the remainder is related to servicing regulatory needs, AGAL’s value is considerably greater than the cost of maintaining the operations.

24

Program 1 — Business Services 1.4 Australian Government Publishing Service

1.4 Australian Government Publishing Service

Organisation

General Manager Alan Law

Client Services Production & Services Assistant General Manager Assistant General Manager Carolyn Hogg

Change Integration A n d re w M oran I Human Resource

Management P e te r V inicom be I Account Management &

Business Development J e n n if e r C oggan I Distribution Services

Rob F o n tan o t I A GPS Press T erry G illm ore

Commonwealth Information Services M ic h a el H arrington

Print Procurement Ian O 'C onnor

Duncan Drew

Printing Operations Northern Region P e te r R ourke I Printing Operations

Southern Region B ruce D olphin I Finance Upali D harm akirti

Purchasing & Property M ick H ourigan

Electronic Services Manager N ic v a n den Berg

Electronic Solutions Research Paul M ullins I Information Technology ServicesP e te r lo w th e rI Instant Print & Copy CentresCol B ruceElectronic Information AccessKim N elsonMicro SolutionsD anny Savich

Corporate Coordination Rob H incksm an

Objective To manage, integrate and deliver the means by which the Parliament and Government can produce and disseminate information and to facilitate easy and affordable access to Commonwealth information for all consumers.

Description of functions The Australian Government Publishing Service (AGPS) provides a comprehensive range of services for all producers and consumers of Commonwealth information. This flows from its role

as the primary publisher and distributor of Commonwealth Parliamentary and Government information. These functions are set out in the Commonwealth Charter o f Printing and Publishing Responsibilities 1989.

AGPS fulfils its responsibilities through a total service approach covering integrated print and electronic publishing solutions and distribution services on a commercial basis. It also administers Commonwealth copyright in such information materials.

Wide public access to Commonwealth information is facilitated by AGPS for all consumers, including government, business and the community, through a range of distribution activities including Commonwealth Government bookshops and mail order services.

25

Department o f Administrative Services A n nual Report 1993-94

As a fundamental part of its function, AGPS also undertakes a number of Appropriation funded non-commercial and public interest services for government. These include provision of community access to Commonwealth legislation; editorial and graphic design services, maintenance and provision of advice on government publishing standards, centralised cataloguing of Commonwealth publications, administration and distribution arrangements under the Commonwealth’s Library Deposit and Free Issue schemes; and provision of official publications for Ministers and Members of Parliament.

Strategies and performance outcomes

The 1993-94 financial year was one of substantial challenge for AGPS with major targets being improved profitability and fundamental re-alignment of strategic business directions.

The AGPS business strategy had two distinct components:

Implementation of a number of measures to improvefinancial performance, rfficiency and effectiveness cf business activity

P e r f o r m a n c e O u t c o m e

Action taken to improve efficiency and effectiveness of operations included a revised management structure and senior management team; substantive work practice and work organisation changes; a fundamental restructuring and refocusing of customer relationships

and account management; cost containment; business development initiatives to improve revenue and profit; and infrastructure investment in information technology, electronic services and printing capability.

An AGPS Management Board comprising AGPS and DAS senior management membership was established to provide strategic management support and advice, evaluate and monitor business plans, review performance and participate in the decision making process for long term business direction. A strengthening of the Board’s role, including appointment of external representation, is planned over a transitional period beginning early in 1994-95.

AGPS was restructured into three branches — Client Services, Production & Services and Electronic Services to meet service needs. This was accompanied by the recruitment of a number of new managers to strengthen the broad management skills within the business.

A major joint management/union review of the future role and overall operations of the Government Printing Office, part of the Production and Services Branch, was nearing finalisation at the end of the financial year.

Within printing operations, improved efficiency and productivity were achieved through the commissioning of a new publications perfect binding line and a laser passport number perforator at the Kingston plant. The introduction of quality assurance was also progressed with the objective of accreditation by Standards Australia in the major printing plants in Canberra and Melbourne during 1994-95.

Financial savings were achieved through progressively improved management of energy, property, maintenance, communications, purchasing contracts and security arrangements. Reductions in such overheads in 1993-94 exceeded $300 000 and are expected to deliver

savings in excess of $1 million annually in subsequent years.

Continued occupation of the AGPS central office and plant site at Kingston in the ACT was of major concern due to the inefficiency and high cost associated with the building. A purpose- built facility equipped to meet organisational and industrial needs of the early sixties, the premises are no longer compatible with contemporary industry requirements, particularly in

respect of efficient use of accommodation, application of new technology, occupational health and safety, maintenance and energy management. A rationalisation plan and options for relocation are currently being developed and explored.

26

Program 1 — Business Services 1.4 Australian Government Publishing Service

Comprehensive andfundamental customerfocused review of overall AGPS operations to establish and implement a long term badness strategy

P e r f o r m a n c e O u t c o m e

Change strategies involving work practices and organisation arising from an exhaustive customer focus review were progressively implemented throughout AGPS.

New business initiatives were realised and improved operational efficiencies achieved through the development of a broader range of integrated services and value-added products, particularly to meet emerging demands of government, business and the community for access

to information, particularly in electronic forms; and the introduction within AGPS of internal systems networking. Electronic media versions of the 1994-95 Federal Budget and Working Nation: The White Paper on Employment and Growth were well received in the marketplace.

On-line electronic access to legislation was scheduled for introduction in Commonwealth Government bookshops in July 1994 and the feasibility of demand printing from the same outlets was under investigation.

An increased focus on facilities management business resulted in two new instant print and copy operations being established within client premises. This took the number of such centres operated nationally to eighteen.

Prices Surveillance Authority inquiry The Government is currently finalising its response to the 1992 Prices Surveillance Authority (PSA) inquiry into the AGPS publications pricing policy following consideration of the recommendations by an interdepartmental committee. Both the general PSA comments and

specific recommendations have been carefully considered within the AGPS strategic planning context with business planning reflecting the general thrust of the review findings. Particular emphasis has been placed on the development of an equitable publications pricing mechanism

aimed at eliminating cross subsidisation between classes and sizes of publications.

Financial and staffing performance

1992-93 Actual $O00

1993-94 Plan SOOO

1993-94 Actual $O00

FINANCIAL N et o p e ra tin g rev en u e * 71151 75 840 69603

O perating p ro f it/( lo s s ) 4 776 7514 5327

N et o peratin g profit / (loss) 2767 5 942 8352

N et re v e n u e per em p loy ee * 96 108 101

N et c o sts p er em ployee * 90 97 93

O perating profit/(loss) p e r em ployee 6.46 10.67 7.73

O p erating profit a s % rev en u e 6.71% 9.91% 6.98%

R eturn on to tal a s s e ts (%) 8.40% 11.71% 8.84%

Return on n e t a s s e ts (%) 33.33% 38.29% 26.01%

D eb tors tu rn o v er days 31 43 30

STAFFING S taff y ears (actual) 739 704 689

* N et of co n tracto r receip ts an d paym ents

27

Department o f Administrative Services A nnual Report 1993-94

The net profit for the year of $8,352 million after accounting for abnormal items was $2,410 million in excess of target. Abnormal items included $1,370 million reversal of a provision for pre-commercialisation compensation costs expended in prior years which will now be met by Comcare; and $1,292 million reimbursement received from the department for the pre­ commercialisation element of redundancy packages paid out.

The operating profit for the year of $5,327 million was up $0,551 million on the previous year, but fell $2.2 million short of target mainly because of the delays experienced in achieving the necessary restructure of the Government Printing Office and a significant downturn in business experienced by the Brunswick factory operation.

R esults against perform ance indicators

Outlook The AGPS future business strategy centres on the consolidation of its role as the key facilitator of access to government information. A fundamental factor in this process will involve the implementation of new and technologically innovative distribution mechanisms.

The broad strategic focus over 1994-95 will be to strengthen the AGPS public interest and standards setting roles within government; redefine, broaden and grow AGPS commercial activities; and provide customers with better value for money services and products. Allied with action flowing from the PSA inquiry, AGPS will also be looking to a major revision of the Charter to reflect better the contemporary information production, management and distribution requirements of the Parliament, Government and public.

28

Program 1 — Business Services 1.5 Australian Property Group

1.5 Australian Property Group

Organisation

General Manager Cathy Argali

N ational Operations State Operations

Sales Neil Peach Business & People Performance

Arthur Gallery

NSW, ACT Vic. Jo h n W ilson M ichael B arnes a id Graham Duffy

Product & Market Financial Control WA Development Jo y Lobo D enis Forte

Richard M cIntosh

SA

Alan Hewitt Tas. Phil Gouldson

NT

Keith W atkinson

Objective

To provide strategic property management and accommodation services.

Description of functions

The Australian Property Group (APG) represents the interests of tenants in all lease and lease management matters. APG provides real estate and portfolio management services to property users.

APG offers four key service options:

• s t r a t e g ic P l a n n in g which links to the customer’s corporate objectives and business structures

to provide a platform for effective, ongoing portfolio management.

• p o r t f o l i o M a n a g e m e n t which provides ongoing advice on the complete range of property

issues confronting the customer’s total property assets.

• O p e r a t io n a l M a n a g e m e n t which consists of three components:

- property management;

- real estate services; and

- property consultancy services.

• e n v ir o n m e n t a l S e rv ice s provide a cost effective and environmentally sensitive approach to

property management.

Strategies

In 1993-94, APG continued to focus on its core market of government departments and budget-funded agencies. Its major strategies were:

29

Department o f Administrative Services A n n u a l Report 1993-94

• to improve customer sales by —

- improving traditional service delivery in Portfolio Management and Real Estate Project Management;

- re-engineering existing service lines and introducing new services for sale in 1993-94;

- researching and developing new markets;

- developing strategic business alliances; and

- continuing quality customer service initiatives.

• to improve business efficiency by —

- undertaking organisation design review;

- identifying and eliminating non-value added activities;

- continuing cost control to identify and implement best business practice for all indirect cost categories;

- ensuring experience/skills match customer needs; and

- reviewing future systems needs.

• to improve people efficiency by —

- ensuring all staff understand and embrace the vision and direction established in the business plan;

- developing staff and defining roles to achieve customer satisfaction targets;

- encouraging and rewarding service leadership at all levels in APG; and

- empowering people to think nationally and act locally.

Financial and staffing performance

1992-93 1993-94 1993-94

Actual Plan Actual

$000 $O00 SOOO

FINANCIAL Total o p eratin g rev en u e 37869 34 472 33625

O perating profit / (loss) 2310 2011 2435

N et operating p ro f it/( lo s s ) 3038 2011 2678

R even ue p er e m p lo y ee 96 91 93

C osts p er em p loy ee 90 86 86

O perating profit/(loss) p er em p loy ee 586 5.31 6.71

O perating profit a s % rev en u e 6.10% 5.83% 7.24%

Return on total a s s e ts (%) 9.48% 8.23% 9.73%

Return on n e t a s s e ts (%) 20.10% 18.42% 19.53%

D ebtors turnover days 27 39 46

STAFFING S taff y ears (actual) 394 379 363

30

Program 1 — Business Services 1.5 Australian Property Group

Budget-funded Commonwealth departments and agencies spend about $700 million on 4 million square metres of office space per annum. About $300 million per annum is spent on non-office real estate activity. APG currently represents 95 per cent of this market. APG uses the aggregate purchasing power represented by its market share, coupled with specialist property and project management skills, to minimise overall Commonwealth property costs.

In 1993-94 APG’s leverage in Australian central business district markets resulted in aggregate savings to the Commonwealth o f $85 million.

With its comprehensive knowledge of government property and purchasing policies, APG is also able to protect the integrity of the Commonwealth’s property purchasing and sales transactions as well as ongoing Commonwealth occupation and use.

As a successful commercial enterprise within government returning an annual dividend on operations and a competitive return on equity, APG represents a good investment for government.

The strategies in the 1993-94 Business Plan were achieved through the establishment of committees devoted to each of the three Key Result Areas — customers; business; and people.

Customer sales In 1993-94 APG continued to focus on its core market — government departments and budget-funded agencies. Alternative markets — broader government and private sector franchising niches — were researched and market penetration commenced.

A series o f property workshops were developed for ACT customers with a focus on property market trends and forecasts; essential elements of property resource agreements and property operating expenses; and environmental and energy management.

APG continued its commitment to quality customer service by matching customer needs, business objectives and staff performance; product and process improvement; product and service development and innovation and cost reduction.

The business expanded its contract cleaning, security and maintenance services, offering customers savings of up to 50 per cent on their property costs, and extended its range to include environmental services to enhance effective property and office management. Energy management workshops were held for Canberra, Melbourne and Sydney customers. ECO Office services were introduced to customers through a facilitation workshop approach.

Marketing efforts in 1993-94 were aimed at presenting a more business-like, consistent and professional presence for APG in its markets and to establish and consolidate a more competitive APG in the minds of customers.

APG Property News, a quarterly newsletter designed to inform customers of the latest trends in Australian commercial office markets, was launched in March 1994.

M a r k e t su r v e y s

APG has surveyed core customers over a five year period in different regions and customer groups to generate measurable improvements in service performance over time. The resultant customer satisfaction index provided an on-going form of assessment and evaluation of the degree o f satisfaction that APG’s customers feel about its service provision, and provided a platform for developing individual customer profiles.

In 1993-94 the most important customer factors were:

R esults against perform ance indicators

Department o f Administrative Services A nnual Report 1993-94

• best value for money;

• consistent performance;

• strong, exclusive advocacy;

• proactive responsiveness; and

• technical excellence.

P r o d u c t d e v e l o p m e n t

Strategic portfolio management services were a major feature of product development during 1993-94. These services were introduced successfully in the Commonwealth and broader government sectors, resulting in the development of long term relationships with current and new customers, and flow-on real estate work.

Sales targets were within 3 per cent of budget for the year and good progress was made towards meeting customer satisfaction targets.

Business efficiency A PG ’s year end results reflect successful efforts at all levels of the business to shore up sales, and to reduce costs in a very serious manner. Costs were well below APG’s original budget for the year. This is an excellent result given that the budgets allowed for a large cost reduction on the previous year.

The structure continued to reflect the needs o f the business with the appointment of national product managers to drive new product development and sales. Operations Managers in larger regions were employed to ensure ongoing quality service delivery while freeing State Managers for sales and promotional activities. The success of these strategies was demonstrated by an increase in budgeted net operating margin of almost $1 million for 1993-94.

People ffficiency APG employed 368 staff at July 1993 and 355 staff at 30 June 1994. APG recognises that its people are its major asset and is committed to supporting and developing staff at all levels. Strategies focused on skills needs identification, gap analysis and recruitment and development

to supplement gaps. Over the last four years there has been a significant increase in the number of qualified staff: from 24 per cent of a total staff of 566 in 1990-91 to 58 per cent of a total 355 staff in 1993-94.

Profit per employee and customer satisfaction rose, demonstrating the success of these strategies.

Outlook

Further expansion will continue in 1994-95. The development of environmental services in 1993- 94, particularly ECO Office and Energy, has sought to fulfil the emerging environmental needs of agencies across market sectors.

Re-engineering of current services including property management; i.e. new facilities on Australian Property Portfolio Review and Information Systems (APPRAIS) will continue in 1994- 95 in order to meet ongoing customer needs.

32

Program 1 — Business Services 1.6 Australian Surveying (sf Land Information Group

1.6 Australian Surveying & Land Information Group

Organisation

General Manager Graham Bashford

Business Development A ssistant General Manager Drew Clarke i

Marketing & Sales Manager M ich ael P hillips

International Manager Bill H arvey I Product Management

Manager T ony W h e e le r I Research & Development

Manager Bill H irst

Public Interest Policy & Coordination Manager G rah am B aker

National Quality Manager J im Riddell

Canberra Manager P e te r H olland

Manager Fred P ark er

Dandenong/Hobart Manager B ruce L ew is

Darwin/A dela ide Manager P e te r O 'D onnell I Brisbane/Townsville

Manager W a y n e A b e rd e e n I Perth

Manager A lis te r N airn

Business Management A ssistant General Manager

Doug W hite i Geodesy Manager J o h n M an n in g

Australian Centre for Remote Sensing Manager Paul T rezise

Data Centre Manager Ian S u th e rla n d I Corporate Services

Manager D avid H obson

Objective To support Australia’s economic and social development through the provision of geographic information management services.

Description of functions

AUSLIG is part of the information services industry, specialising in surveying, mapping, information systems and consultancy services. Its geographic information solutions support such activities as public administration, defence and emergency services, resource and environmental

studies, transport and communications, property design, construction and maintenance of Commonwealth assets.

AUSLIG’s geodesy, mapping (digital, topographic, thematic and atlases), remote sensing, offshore boundary information and coordination of Commonwealth activities are public interest activities and funded from the Budget. These represent AUSLIG’s core activities which underpin its commercial activities.

33

Department o f Administrative Services A n nual Report 1993-94

AUSLIG’s strategic framework is to:

• maintain an efficient, effective, client oriented public interest program as the core of AUSLIG’s activities, which embraces the concept of Total Quality Service and is based on customer needs;

• improve the efficiency of delivery of public interest products and services;

• develop and deliver services based on adding value to public interest products and services;

• adopt a brokerage role where current commercial activities are unprofitable and continuation of this work is important strategically.

AUSLIG undertook the following activities in accordance with the strategic framework during 1993-94;

Total Qttality ServicefTotal Qiiality Management

P e r f o r m a n c e o u t c o m e s

A Total Quality Service program was introduced into AUSLIG during 1993-94. The program consisted of staff and customer focus groups, strategic workshops for senior and middle managers and implementation workshops. The implementation workshops developed detailed strategies for improving client focus and increasing business in each office.

AUSLIG received quality assurance certification, under Australian Standard 3902, for most of its offices during 1993-94. The remaining offices will undergo their implementation audits early next year.

A National Quality Manager was appointed to oversee AUSLIG’s continuous improvement programs.

Organisation

P e r f o r m a n c e o u t c o m e s

Changes to AUSLIG’s structure were undertaken in January to improve customer focus, integrate commercial and public interest activities, provide total solutions for customers and to improve project management.

AUSLIG’s research and development and product management functions were realigned during the restructure to enable improved management of key product development activities.

Marketing mid sales

P e r f o r m a n c e o u t c o m e s

AUSLIG continued its efforts to improve marketing and sales capabilities with emphasis on new products, selling total service contracts to corporate clients and the development of strategic alliances. A detailed marketing and sales plan was developed focusing on the key areas identified in the Business Plan. A review was conducted of the selling structures within AUSLIG. A management information system was developed to improve marketing and sales management.

Strategies and performance outcom es

34

Program 1 — Business Services 1.6 Australian Surveying &? Land Information Group

Reskilling

P e r fo r m a n c e o u t c o m e s

There was a shortage of key technical and commercial skills needed to support AUSLIG in its current and future goals as well as some degree of mismatch between existing staff and key skills caused by the change away from traditional services.

To address this, AUSLIG recruited a small number of technical specialists in Geographic Information Systems (GIS) and Global Positioning Systems (GPS) technology. Details of training needs analyses are being collected for all officers and priorities are being established for training programs.

Cost reduction/Productivity

P e r f o r m a n c e o u t c o m e s

Cost reductions were achieved through the continuation of AUSLIG’s accommodation rationalisation plan, a reduction in overheads following the restructure and staff reductions via voluntary redundancy and the DAS Staffing Adjustment Program.

Productivity is being improved through the implementation of AUSLIG’s continuous improvement programs, the introduction of a project management methodology throughout the organisation and the integration of commercial and public interest activities following the restructure. Significant progress was made with an enterprise bargaining agreement which, when finalised, will see further improvements in productivity.

Public interest program reforms

P e r f o r m a n c e o u t c o m e s

A new policy and accountability framework was developed covering the principles and funding arrangements that apply to AUSLIG’s public interest program.

Results against performance indicators

Financial perfonnance AUSLIG’s profitability target for 1993-94 was dependent upon securing a major outsourcing job. Whilst this was not achieved, the trading loss of $3.2 million was within $0.77 million of target largely attributable to containment of costs. This performance was a significant improvement over that of recent years when losses of $7.6 million (1992-93) and $6.9 million (1991-92) were recorded. The extent of cost savings is not reflected in the cost per employee indicators as AUSLIG’s ASL is 20 less than budget.

Commercial sales were $0.08 million less than 1992-93. This represented a decline of 1 per cent compared with 20 per cent and 22 per cent in the previous two years.

AUSLIG’s strategy to undertake public interest activities in regional offices provided opportunities for commercial sales of value added public interest products and services. This, together with a concerted effort to promote and sell other high margin products and services, resulted in AUSLIG meeting its average gross margin target.

Increased sales of these high margin products and services, including value adding to public interest products and services, will be the major avenue for further improvements in AUSLIG’s financial performance.

35

Department o f Administrative Services A n n u a l Report 1993-94

Financial and staffing perform ance

1992-93 A ctual $'000

1993-94 Plan SOOO

1993-94 Actual SO00

FINANCIAL Total o p e ra tin g rev enu e 36388 38 360 37243

O perating p ro f it/( lo s s ) - 7 576 -2 4 0 0 -3 1 7 9

N et o perating p ro fit/(lo s s ) -1 616 -2 4 0 0 326

R even ue p e r em p lo y ee 98 122 126

C osts p er em p lo y ee . 118 130 137

O perating profit/(loss) per em ployee -20.31 -7.65 -10.78

O perating profit a s % revenue -20.82% -6.25% -8 .5 4%

Return on total a s s e ts (%) -26.74% -10.92% -9 .5 1%

D ebtors tu rn o v er days 45 50 35

OPERATIONAL PERFORMANCE M apping d a ta (produced a n d /o r m ain tain ed m ap areas) 461 417

GEODATA T o p o -2 5 0 K G e o d e s y Ranging to a g re e d sa te llite s 70% 67%

S tan d ard error of m ea su rem en t to sa te llite s 0.015 0.010

Product s a le s R em ote sen sin g product s a le s ($'000) 2000 1920

M apping p rod uct s a le s (S'OOO) 1830 1630

Customer related perform ance 95% in 92% in

R em ote sen sin g order turn around tim e 3 w eek s 3 w eek s

M apping o rd er turn around tim e 5 days 5 days

STAFFING S taff y ears (actual) 373 315 295

Opeinticmal performance The 10 per cent shortfall in the mapping data target will be met in the first month of the new financial year. It represents the successful and timely completion of stage one of the Australian Geographic Data Base (AGDB) program. This result is an example of the improved efficiency in public interest product and service delivery achieved through the integration of public interest and commercial activities.

The GEODATA products derived from the AGDB program provide the fundamental base layer of geographic information for a variety of applications. They are being used to assist with management of natural resources including forest, agriculture, water and minerals; conservation of the environment including wildlife management, pollution control and environment impact assessment; communication planning including transmitter site selection, on-location broadcast logistics and coverage pattern analysis; and emergency services support including contingency planning and emergency command and control.

AUSLIG’s Orroral Valley Observatory is a world class laser ranging system, capable of highly reliable and precise measurements to earth orbiting satellites. The Observatory contributes to Australian mapping and land information systems programs as a key part of the national geodetic network. It also plays a key role in the international satellite tracking program due to its unique position in the southern hemisphere.

Observations are required for maintaining compilations of satellite orbits used in the study of earth rotation, climate change, monitoring gravity and oceanographic studies. While 1946 satellite

36

Program 1 — Business Services 1.6 Australian Surveying & Land Information Group

passes were acquired during the year, the full ranging target was not achieved due to telescope equipment failure which caused disruptions for two months. The National Aeronautics and Space Administration (NASA), the major client for laser ranging, has however, acknowledged the quality of Orroral’s overall service by upgrading its status from engineering support to mission support.

Exceeding the standard error of measurement target was a significant achievement. The accuracy of measurement to satellites impacts on the global reference frame which enables the optimal application of satellite positioning techniques such as GPS.

Public interest product sales

Sales of GEODATA products contributed to the above budget data sales for the year. Sales are expected to increase progressively as more data becomes available. Total mapping product sales, however, were 11 per cent under budget reflecting the lingering effect of the recession and the age of the mapping and aerial photo products. Aerial photo products also faced increased competition

with many state governments producing aerial photos of extended areas of their state. The revision of paper maps had been suspended to enable resources to be diverted to the AGDB program in response to a high level of demand from the mapping community. With the resumption of the

revision program in 1994-95, the availability of more up to date maps should increase demand.

AUSLIG’s remote sensing product sales target was based on the availability of a new data set from the Landsat 6 satellite, which was due for launch in October 1993. This satellite was equipped with a new sensor which would acquire images at 15 metre resolution, which is not possible from other satellites. Unfortunately, the launching failed and AUSLIG will not have access to the new data set until the next launch.

AUSLIG was still able to expand the remote sensing market from the previous year, and came within 4 per cent of the sales target. This result reflected the improved effectiveness of the distributor network, which, as a result of a revamp, has seen distributor sales increase from 50 per cent of total sales in 1992-93 to 70 per cent in 1993-94.

Customer related performance The introduction of continuous improvement programs has seen AUSLIG become a more customer focused and efficient organisation. This awareness of customer requirements has seen order turnaround targets achieved for both remote sensing and mapping products. Quicker

turnaround times have been set for future years.

AUSLIG ensures wide community access to its public interest products and services in accordance with social justice principles. Its mapping products are made available to a broad section of the community through a national network of map shops, retail outlets, newsagents, bookshops and tourist centres.

37

Department o f Administrative Services A n n u a l Report 1993-94

1.7 Australian Valuation Office

Organisation

General Manager Malcolm Coleman

Director G raham Taylor

Valuations Business

Management Director Tony Groube

Marketing & National Projects Director Ian W illiam s

Information Technology Director C harles B artlett

R e g i o n a l M a n a g e r s

N ew South Wales T erry S te v e n s

Victoria David S m ith a /g Queensland J o h n M cA uliffe

I V e s f e m Australia J o h n P e rs s e

South Australia G erald D oody

Tasmania C hris T u ttle a /g Northern Territory Bill Burford

Aust. Capital Territory Bryan Murrell

Objectives

To provide independent valuation services.

Description of functions

The Australian Valuation Office (AVO) provides government departments and agencies with independent and professional advice on the valuations of real property and non-current assets. A V O ’s range o f services are provided for:

• asset test purposes;

• rating and taxation;

• financial reporting;

• rental;

• sale and purchase;

• compulsory acquisition; and

• insurance purposes.

Through the provision of these services A VO makes a direct input into the efficient and effective management of government programs. AVO’s valuation advice supports the administration of Commonwealth outgoings (Department of Social Security (DSS), Department of Veteran Affairs (DVA), and Department of Employment, Education, and Training (DEET) welfare programs), an

Commonwealth revenue (Australian Taxation Office (ATO)). In addition, A VO is retained by the Northern Territory and Australian Capital Territory governments to provide valuation services for rating and taxation purposes.

38

Program 1 — Business Services 1. 7 Australian Valuation Office

Strategies

As the government’s authority on valuation matters, AVO remains financially viable and continues to provide a value added service that focuses on:

• further strengthening relationships with key customers by working closer with them in meeting their legislative and administrative requirements;

• developing a balance of skilled and committed human resources to meet both existing and future needs of customers;

• increasing sales by vigorously marketing and raising the AVO profile within government, developing new products and product mixes, and providing total solutions to asset management; and

• achieving a competitive edge through strong leadership and implementation o f AVO’s Productivity Agreement.

Financial and staffing performance

1992-93 1993-94 1993-94

Actual Plan Actual

$O00 $O00 SO00

FINANCIAL T otal o p e ra tin g rev en u e 22907 23404 22914

O perating p ro f it/( lo s s ) 3151 3019 3000

N et o peratin g profit / (loss) 3137 301 9 3437

R even ue p er em p lo y ee 93 95 98

C o sts p er em p loy ee 80 83 85

O perating p ro fit/d o ss) p e r em p loy ee 12.76 12.22 12.77

O p erating profit a s % rev en u e 13.76% 12.90% 13.09%

Return on total a s s e ts (%) 28.04% 27.55% 26.00%

Return on n e t a s s e ts (%) 57.79% 54.93% 51.76%

D eb to rs turno ver days 22 23 32

OTHER P e rc e n ta g e of job s co m pleted on tim e 85% 75%

P e rc e n ta g e of rev en u e from u ntied cu sto m ers 34% 32%

To red u ce “d efect rate" in V aluation Office 2.59%

Inform ation System (VOIS) STAFFING S taff y ears (actual) 247 247 235

39

Department o f Administrative Services A n nual Report 1993-94

Results against performance indicators

Financial A VO successfully turned around a declining market and potential loss situation at mid-year, by focusing on strategies to address the shortfalls in workloads and cost structure inconsistencies. At 30 June AVO recorded a net operating profit of $3,437 million, $0,418 million above plan and $0.3 million above 1992-93. Revenue from fees exceeded 1992-93 by $0,037 million, AVO's regional sales were down substantially for the year ($1.25 million), and national sales exceeded

planned targets by more than $0.5 million.

Business specific AVO focused on timeliness, and the accuracy of data recorded on the Valuation Office Information! System (VOIS) through the year.

T im e l in e s s:

AVO staff focused on timeliness recording and the work practices involved to ensure that the reporting data was accurate. As a consequence national timeliness performance was increased during the year to an average maximum of 87 per cent, with some regions consistently above 9(C per cent per month. The redundancy program and increased workloads over the final three months had an impact on timeliness and the annual timeliness performance of 75 per cent of job* completed on time compared with the goal of 85 per cent. This was an overall increase of 7 per cent from the 1992-93 result. Results were reported to staff on a weekly basis.

D e f e c t iv e d a t a :

A defective data report was developed in July 1993 which measured errors and/or omissions from data fields within VOIS. Initial measurements taken in July 1993 showed the defective datt; rate at 70 per cent. Processes were established to correct all defective records and to ensure the source of defective data was identified and strategies developed to remedy it. All regions

responded well and the defective data rate was steadily reduced from 15 per cent in August 1992 to less than 3 per cent in June 1994.

P e r c e n t a g e o f r e v e n u e f r o m u n t ie d c u s t o m e r s

AV O ’s goal was to increase revenue from untied customers from 32 per cent to 34 per cent. While AVO was marketing strongly within the public sector, it also increased sales substantially to ATO and DEET, and thereby negated any movement in percentiles. The end of year result was that revenue from untied customers remained at 32 per cent.

Outlook

There is an increasing requirement at all levels of government for the valuation of non-current assets including real property, plant and equipment, office fitout and intangible assets for financial reporting. AVO recognised this as an emerging market several years ago and is now strategically placed to provide this service including: establishment of asset registers; bar coding; stocktaking; providing software applications; establishing life cycles; determining condition; and the valuation.

An increasing percentage of AVO’s sales is occurring in this area, and during 1993-94 AVO completed major valuation projects at the Commonwealth, State, and local government level.

Program l — Business Services 1.7 Australian Valuation Office

Productivity Agreement

A V O ’s Productivity Agreement is expected to be finalised by August 1994. The proposal offers: a 1 per cent salary increase on signing an agreement; a 2 per cent salary increase on the introduction o f Personal Operational Plans; and annual bonuses of 2-5 per cent to individual staff in recognition o f notable personal results.

The agreement is to include staff at the Senior Officer level, who have accepted appraisal to Personal Operational Plans in lieu of Performance Based Pay. The agreement is self funding and subject to the gainsharing principles and is linked to both A V O ’s Business Plan and Continuous Improvement Program.

AV O ’s Productivity Agreement is integrated with AVO’s Continuous Improvement Program (CLP) and will strengthen AVO’s commercial position through commitment to enhanced customer service, work practices, systems, procedures and professional development. The three year program is designed to identify best practices, set internal and external benchmarks and to ultimately gain accreditation to AS3(X)0/IS09000 quality standards.

A s p a r t o f th e P ro d u c tiv ity A g re e m e n t a ll sta ff, in c o n ju n c tio n w ith th e ir s u p e rv is o r, sh a ll d e v e lo p in d iv id u a l P e r s o n a l O p e r a tio n a l P la n s w h ic h are lin k e d d ir e c tly to A V O ’s B u s in e s s P la n .

Department o f Administrative Services A n n u a l Report 1993-94

1.8 DAS D istribution

O rganisation

Operations Ken Thornton

General Manager M ichael W right I______________ ,

State Offices

Marketing G eorge M cN am ara a/g

New South Wales Ian G ra in g er

Victoria D avid A u b rey

Finance Ziggy Kominek

Queensland Ian Loudon

Western Australia Fran S m ith

System s R u d y Ja g e r

South Australia A lan Logan

Tasmania R ichard Taylor

Human R esources M anagem ent — Terry Forde a /g

Aust. Capital Territory G ra e m e S k elto n

Objective To provide transport, storage and logistic support services.

D escription o f fu nctions

The business:

• stores goods in long and short-term storage areas;

• transports goods locally and interstate;

• distributes high turnover items such as forms;

• provides international freight forwarding services and Customs clearance; and

• provides specialist services such as document storage and retrieval.

Strategies DAS Distribution’s priority is to maintain service excellence through efficiency, stability, security and integrity. Its strategy is to differentiate itself in the marketplace on guaranteed quality of service. DAS Distribution performs higher margin work in-house and lower margin work is brokered through a panel of quality assured subcontractors.

To improve profitability, DAS Distribution’s main strategies for 1993-94 included property rationalisation, reduction in vehicle fleet, reduction in contractor costs as a result of improved in­ house productivity, staff reductions and closure of the Northern Territory office.

42

Program 1 — Business Services 1.8 DAS Distribution

Performance outcom e

Financial The sales objective to reach $31.24 million was not met with a shortfall in sales of $2.31 million. Costs were $26,000 higher than the $32.24 million budgeted. The result was a loss of $1.68 million,

some $0.66 million higher than the predicted loss of $1.02 million. The predicted gross profit of 10.37 per cent was not achieved with a shortfall of 1.36 per cent.

Improvements were achieved, however, with this year’s loss being substantially less than the previous year. This was an improvement of $1.29 million. Another improvement was the establishment of a more useful management information system which among other things provides trend information for more accurate management decision making.

Progress has been made in developing a more accurate job costing system which will be fully developed with the introduction of a new computer system for DAS Distribution.

Financial and staffin g perform ance

1992-93 Actual S'OOO

1993-94 Plan S'OOO

1993-94 Actual S'OOO

FINANCIAL Total o perating revenue 3 2 1 0 5 31 242 28 932

O perating p ro fit/(lo s s ) - 6 094 - 1 295 - 3 570

Net operating p ro fit/(lo s s ) - 2 976 - 1 019 - 1 684

Revenue p er em ployee 84 89 99

Costs p er em ployee 100 93 111

O perating profit/(loss) p er em ployee -1 5 .9 5 -3 .7 0 -1 2 .1 8

O perating profit a s % revenue -1 8 .9 8 % -4 .1 5 % -1 2 .3 4 %

Return on total a s s e ts (%) -6 4 .2 0 % -7 .2 2 % -4 3 .1 8 %

D ebtors turnover days 52 53 48

OTHER P ercen tage of d am ag e claim s to jo b s perform ed 0.32%

STAFFING Staff y ears (actual) 382 350 293

43

Department o f Administrative Services A n n u a l Report 1993-94

1.9 DASFLEET

Organisation

General Manager Steve Palywoda

M arketing & S ervice Finance & S ystem s Delivery A ssista n t General - 1 1 1

A ssista n t General M anager National Leasing National Rentals National Fleet

M anager A r t h u r H a rd y Manager Manager Manager

Rod Gibson Paul A p p e lb y a /g H o w ard Faulks

1 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

P e te r Cotterill

I i

Marketing & Sales State & Territory IT Manager . Γ

Disposals

1

Insurance

Manager Managers C hris S m yth Manager Manager

P a t C onw ay P a t O 'H anlon a /g Bob F o ster

NSW

1

Vic.

1

Human Resource &

1

Quality Assurance

R oss F au lk n er David S pivey Policy Development Manager

1 1 Manager Barry S later

Sth Old Tas. G avan C a tta n a c h a /g

Franco M a rc e si Rob C larke

1

SA

1

ACT

G rah am Box I T ony H a rn e tt NT WA

Rick H arlock C arm el Lynch

Nth Old

J u lie H u g h e s a /g

Objective

To provide vehicle leasing, rentals and fleet management services.

Description of functions

DASFLEET supplies passenger and commercial vehicles to Commonwealth Government departments and agencies. Services comprise vehicle leases, short term vehicle rentals and fleet management services through the use of external contractors and from in-house facilities.

DASFLEET’s primary market is the Commonwealth Government. Services are provided on a commercial basis. Departments and agencies operating on the Commonwealth Public Account (CPA) are required to lease civilian vehicles from DASFLEET but are free to use private sector operators or DASFLEET for short term rentals, fleet management and maintenance requirements.

44

Program 1 — Business Services 1.9 DASFLEET

Strategies

Key strategies were:

• pricing and competitiveness — competitive prices whilst maintaining quality service to underpin long-term business profitability, including knowing our competitors’ prices and ensuring that our customers are aware that our prices are competitive;

• mutually beneficial relationships with customers — delivering commercially appropriate solutions to specific customer vehicle leasing, rentals and fleet management needs, including advice about vehicles and fleet management and energy efficiency;

• cost control — striving for best business practices to improve responsiveness, reduce cycle times and in the process contain costs;

• leadership and achievement through our people — achieving business success through effective leadership and committed, customer-focused staff, supported by appropriate training to ensure that all staff have the skills and knowledge required to deliver high quality service to customers; and

• customer and management information systems — providing customers and DASFLEET staff and management with information, enabling them to deliver high quality service to customers.

Financial and staffing performance

DASFLEET’s performance for 1993-94 compared to the targets set for 1993-94 and the 1992-93 results are as follows:

1992-93 Actual S'000

1993-94 P lan * S'000

1993-94 Actual S'000

FINANCIAL Total o peratin g rev enu e 130191 99953143 943

O perating p ro f it/( lo s s ) 43999 19 591 55 719

N et operating p ro fit/(lo s s ) 43999 19 591 56 909

R evenue p er em p lo y ee 354 285 397

C osts per em ployee 234 229 243

O perating p ro fit/(lo ss| per em p loy ee 119.56 55.81 153.50

O perating profit a s % revenue 33.80% 19.60% 38.71%

Return on total a s s e ts (%) 16.68% 8.19%17.70%

Return on n e t a s s e ts (%) 24.06% 10.01%25.72%

D eb tors turnover days 59 42 63

STAFFING S taff y ears (actual) 368 351 363

* T argets a s s e t b efore th e G overnm ent 1 9 9 3 -9 4 Budget decision

45

Department o f Administrative Services A n n u a l Report 1993-94

Results against performance indicators

Genavl In the 1993-94 Budget, the Government determined that departments and agencies that operate through the Commonwealth Public Account (CPA) are required to secure their vehicle leasing, purchasing and disposal activities through DASFLEET. CPA customers are free to select DASFLEET services or an alternative supplier in relation to fleet management and rentals services. The year 1993-94 was very successful for DASFLEET. Sales in all areas of activity grew. The strong

used-vehicle market contributed significantly to the $57 million profit for the year.

Sales targets achieved 1993-94 was a buoyant year. The original sales target of $99.95 million was set before the Government’s decision to retain the tied arrangements. A revised sales target of $115,188 million was subsequently established. In 1993-94, DASFLEET achieved sales of $143.94 million, which consistec of leasing sales of $83.75 million, rentals sales of $19.22 million, and fleet management sales of $38.28 million. The increase in sales was achieved despite an average 15 per cent reduction in lease rates in 1993-94 over the lease rates applying in 1992-93. The strong demand for used vehicles saw DASFLEET achieve a profit on the sale of vehicles of $21.91 million.

Return on net assets, return on total assets, profit per employee Return on net assets was 26 per cent compared to targeted 10 per cent (13 per cent post Budget decision); return on total assets was 18 per cent compared to targeted 8 per cent (10 per cent post Budget decision); profit per employee was $153,496, compared with targeted $55,812 ($77,874 post Budget decision).

Percentage of tenders won During the year, DASFLEET submitted 10 tender proposals for vehicle leasing and rentals. There was significant competition from private leasing companies seeking to enter the public sector market. DASFLEET was able to win 40 per cent of the work tendered for, with 20 per cent still to be decided. Tenders for vehicle leasing were won with Australia Post, SBS and the Australian Wheat Board.

Number cf customers lost DASFLEET’s vehicle leasing contract with the Civil Aviation Authority was not renewed, which was the only major loss for the year, but DASFLEET was able to win a tender for the provision of rental services for the authority.

Service agreements In accordance with the 1993-94 Budget decision, negotiations have been proceeding with the Department of Finance to introduce revised financial arrangements for DASFLEET which are as close

as is practicable to those generally established in the private sector.

In late June 1994, agreement was reached at officer level on DASFLEET’s revised financial arrangements. The introduction of the new financial arrangements has allowed for lease rates to drop by up to 30 per cent from 1 July 1994, subject to CPA customers entering into Service Agreements which are designed to clearly identify the respective responsibilities of DASFLEET and its customers in relation to leasing of vehicles. During 1994-95, DASFLEET will be negotiating Service Agreements with those remaining non-CPA customers who currently do not have Service Agreements in place.

46

Program 1 — Business Services 1.9 DASFLEET

Customer Satisfaction Index A customer satisfaction survey was undertaken in late 1992-93 and from the survey the customer satisfaction index was developed. The results, which for the most part were very positive, were implemented during 1993-94. As a result of the 1992-93 survey a number of changes and improvements were made in 1993— 94. These included:

• improvements to customer reports;

• establishment of additional Customer Service Centres;

• establishment of the Rentals Booking Centre (RBC) and DASFLEET Maintenance Approval Centre (DMAC);

• introduction of an external newsletter, DASFLEET News;

• production of an insurance booklet; and

• extension of operating hours of rentals desks, particularly at airports and improved location and appearance signage of facilities at airports.

Percentage reduction in customers' time dealing with DASFLEET DASFLEET continues to recognise that its customers require their transactions to be done in the shortest possible time. Initiatives include:

• introduction of a single number national Rentals Booking Centre and rentals cards to speed up the process of booking, collecting and returning rentals vehicles;

• establishment of additional Customer Service Centres in locations where customers require the service, thus reducing the lime customers need to travel to access DASFLEET’s services;

• establishment of the DMAC which can authorise repairs and maintenance with external contractors for non-metropolitan customers; and

• progressively benchmarking services against industry to ensure that DASFLEET’s services are on a ‘best practice’ basis.

Improved cyde times DASFLEET’s profitability is dependent on employing its resources as effectively as possible. To this end, it is important that the time taken by DASFLEET to deliver and dispose of vehicles is kept to the minimum. Considerable effort has been invested in streamlining procedures in these areas to ensure this happens. Similarly, with Rental vehicles improvements have been achieved during the year in turn

around time from de-hire to rchire.

Improvements in productivity DASFLEET entered into negotiations with unions under Workplace Bargaining arrangements. Unfortunately these negotiations stalled when bans and limitations were imposed in a number of regions in support of DAS-wide industrial issues. Following the lifting of the bans in February 1994 negotiations recommenced in an effort to further streamline work practices and share productivity

improvement gains with staff. A review of workshops was undertaken in early 1994 and the implementation of the recommended productivity improvements is part of the Workplace Bargaining negotiations.

DASFLEET recognises that productivity improvements will be gained by implementing quality systems throughout all its business activities and in 1993-94 considerable effort was put into

47

Department o f Administrative Services A n n u a l Report 1993-94

preparatory work for business-wide Quality Assurance accreditation. In April 1994, DASFLEET’s Western Australian regional office led the way and was awarded quality assurance accreditation for its operations. By the end of June 1994, preliminary audits had been undertaken, were underway or were scheduled for Tasmania, South Australia, South Queensland, North Queensland and the Northern

Territory. In New South Wales, Victoria and the Australian Capital Territory major preparatory work is also now underway. By the end of 1994— 95, it is expected that all DASFLEET’s regional offices will have been awarded Quality Assurance accreditation.

Training targets achieved The 1993-94 DAS FLEET Business Plan recognises that staff knowledge and skill is a vital element of success. Training continues to emphasise financial and commercial skills, knowledge of the business, understanding and use of the systems and customer service.

Customer report production timetable achieved DASFLEET provides customer reports to departments or agencies in line with their requests often at monthly intervals. Reports available are detailed in an information booklet which has been distributed to customers. In consultation with the Department of Primary Industries and Energy, DASFLEET has developed reports to assist departments and agencies report on the level of energy usage of their vehicle fleet for annual report purposes.

System’s implementation timetable achieved During 1993-94, DASFLEET invested considerable time and resources in the re-engineering of IT resources to meet the needs of the business. This re-engineering is to ensure that quality management information systems are available to provide customers and managers with the information that is required to make informed decisions.

Outlook

The revised financial arrangements that will underpin DASFLEET’s operations in 1994-95 will mean that revenue and profits will be significantly reduced over that achieved in 1993-94. These reductions represent the flow-on effect of DASFLEET significantly reducing lease rates, by up to 30 per cent, to all CPA customers from 1 July 1994. It is also anticipated that the used car market will flatten out during the year and the profit on the disposal of vehicles will decline significantly. Much tighter control over costs and margin management will be necessary to ensure DASFLEET meets its targets in

Sponsored by the DASFLEET Customer Forum, DASFLEET will fund an independent benchmarking assessment of its tied leasing and disposal activities in early 1995. The results of this study will feed into the Government’s proposed review of the efficiency and effectiveness of the existing tied arrangements for CPA customers.

DASFLEET will continue to ensure that its operations are conducted in an environmentally responsible way. DASFLEET encourages departments and agencies to take environmental considerations into account in their decision making, particularly in relation to reducing energy consumption. DASFLEET also tests the environmental feasibility of new products and procedures and where appropriate recommends them to customers. During 1994-95 DASFLEET will conduct a national driver training campaign for all customers aimed at both reducing energy consumption and increasing safety.

48

Program 1 — Business Services 1.10 Intenors Australia

1.10 Interiors Australia

Organisation

General Manager Ewan Hazeldine

Business Development Manager Phil M iles

National Finance Manager Di Baker

State Managers

NSW A lison M uir Vic. Old WA SA ACT

A bigail B u tler Rod C a se y M ike Avila A lfred H uang B en C am eron

Objective

To provide interior design and construction management services.

Description of functions

Interiors Australia is the Commonwealth Government’s interior design and fitout business. It arranges the design and construction of internal working environments in new or refurbished buildings.

Strategies

In order to improve the awareness and skills of staff in all aspects of customer care and service delivery, the business aimed to build on the Customer Focus initiative commenced in 1992-93 through tailored staff development plans and follow-on customer research.

To meet its objective of delivering guaranteed solutions to customers’ needs, the business planned to use customised project plans and Quality Assurance (QA) accreditation as a means of assessing customer satisfaction and obtaining structured feedback on process improvement.

To achieve financial success, Interiors Australia aimed to pursue essential productivity improvements through workplace bargaining, tight control of job costs within budget and improved cash management.

The business undertook to make a strong commitment to marketing and building reputation through quality performance. Focused sales plans would be implemented to pursue selected new markets and maintain and build market share.

Results against performance indicators

Improvement in customer reactions and perceptions of service delivery against February 1993 qualitative research A survey of client perceptions was undertaken in April 1994 by an independent market researcher to identify the impact of changes made by Interiors Australia in the last twelve months. The survey reported that the business was making strong headway and that changes were

49

Department o f Administrative Services A n n u a l Report 1993-94

creating a professional organisation. The researcher recommended that Interiors Australia systematically build relationships with staff and introduce regular report back to clients and end of project meetings.

These recommendations were accepted and reporting procedures were put in place.

Projects to meet customer expectations as agreed in project plans Project plans were also developed which highlighted customer needs and the business response to those needs. Incorporation of the project plans in formal Quality Assurance procedures commenced.

Sales of $11.92 million in 1993-94 Sales were $16.9 million, 40 per cent above budget, attributed to a focused program of marketing to established and new clients, both within and outside the traditional Commonwealth department base.

Outlook

Strong pressure on market fee levels is expected to continue through 1994-95 and the business will need to enhance project budgeting and cost control systems to assist in rigorous management of projects. Continuous improvement in work practices and in cash management will be required and the viability of individual offices in the context of future business development will be closely monitored.

Marketing tactics will place a high priority on closer strategic partnerships with other DAS business units.

Staff development and staff appraisal will be incorporated into QA procedures in order to upgrade skill levels.

Financial and staffing performance

1992-33 1993-94 1993-94

A ctual Plan A ctual

$'000 S'000 $O00

FINANCIAL Total o p eratin g rev enu e 18685 12198 17243

O perating p ro f it/( lo s s ) 296 226 290

N et o peratin g profit /(lo ss ) 265 226 122

R even ue p er em p loy ee 231 169 265

C osts per em p loy ee 227 166 261

O perating profit/(loss) p er em p loy ee 3.65 3.14 4.46

O perating profit a s % revenue 1.58% 1.85% 1.68%

Return on total a s s e ts (%) 0.96% 1.35% 1.07%

Return on n e t a s s e ts (%) 18.29% 12.62% 14.41%

D eb tors turno ver days 83 45 73

STAFFING S taff years (actual) 81 72 65

50

Program 1 — Business Services 1.11 D AS Removals

1.11 DAS Removals

Organisation

General Manager Jan M ills

Area Director Carl Ripphausen Area Director Geoff W alsh

Business Director Roger Brown

Finance & Systems Director Lean Ooi

Regional Managers

Regional Managers

Business Human Finance Systems

Support Resources

NSW- - - - - - ACT Vic.- - - - - WA Sales & Marketing

Customer Service

Sth Old---- Nth did SA- - - - - - Tas.

NT

Objective To arrange household and workplace removals in Australia and overseas.

Description of function DAS Removals is the Commonwealth’s removals manager. It arranges household and workplace removals and storage within Australia and to and from overseas locations. It provides cover against loss or damage to personal effects as part of its household services. It takes care of all

arrangements saving customers’ time and resources. It obtains competitive prices and guarantees a top quality move. DAS Removals does not carry out the removals itself, but outsources from a panel comprising some 120 private contractors accredited to DAS Removals standards.

Strategies

DAS Removals’ major strategies during 1993-94 were to:

• strengthen ties with key customers and diversify into other market segments;

• continue to improve service across all products;

• improve productivity and ensure that staff have the structures, skills, tools and processes to meet customers’ needs; • provide packaged services in conjunction with other DAS businesses; and

• continue to deliver savings to government with services which are more cost effective than departments, agencies or individuals can purchase any other way.

ΓΓ Review Andersen Consulting was engaged from the Restricted Panel of Systems Integrators in June 1993 to assist with the review of all aspects of information technology within the business. This project

was completed in November 1993 and delivered a strategy to modernise the business in this area.

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Department o f Administrative Services A n n u a l Report 1993-94

The key recommendations involved moving into an open systems environment and acquiring new hardware and software to exploit technology advances and to update our systems to meet the current and emerging business needs. Implementation of the first part of the strategy, replacement of desktop equipment, was commenced in May 1994.

Training DAS Removals continued with its planned business specific training programs during the off peak in 1993-94. These programs included process mapping techniques and focused on continuous improvement of business processes.

Staff involved in enterprise bargaining process improvement projects were given specific training.

Sales staff were given on-the-road follow-up training and participated in an advanced sales skills workshop in September 1993.

All managers and senior staff attended leadership programs in February and May 1994. All staff attended customer focus and business planning programs between May and July 1994.

Workplace agreement An enterprise bargaining committee comprising CPSU national representatives, workplace delegates and management was established in early 1993 to develop an enterprise agreement within DAS Removals. The committee met on several occasions during the year to negotiate elements of the agreement and the associated issues of core competency standards, process improvements and benchmarking. It is anticipated that a workplace agreement will be put in place early in 1994-95.

Financial and staffing performance

1992-93 1993-94 1993-94

A ctual Plan Actual

$'000 S'000 $'000

F I N A N C I A L N et o peratin g rev enu e * 17400 17 657 16109

O perating p ro f it/( lo s s ) 6542 5042 5372

N et operating p ro fit/(lo s s ) 6542 5042 5372

N et rev enu e p er em p loy ee * 143 140 134

N et c o sts p er em ployee * 89 100 89

O perating profit/(loss) per em ployee 5362 40.02 44.77

O perating profit a s % rev enu e 37.60% 28.56% 33.35%

Return on total a s s e ts (%) 31.73% 23.49% 17.19%

R eturn on n e t a s s e ts (%) 54.37% 39.89% 41.70%

D eb tors tu rn o v er days 28 25 24

S T A F F I N G

S taff years (actual) 122 126 120

* N et of co n tracto r receip ts an d paym ents

52

Program 1 — Business Services 1.11 D A S Removals

Outcomes 1993-94

For the third consecutive year DAS Removals has achieved higher than budgeted profit; $5.37 million was achieved against the budgeted profit of $5.04 million. This represents a return on Commonwealth equity for 1993-94 of 41 per cent. DAS Removals achieved the good result through a combination of effective cost management and improved productivity. Other

performance highlights of 1993-94 were:

• the business delivered $1.88 million savings to clients through 10 per cent lower indemnity premiums;

• the costs of claims in the year fell by more than 10 per cent reflecting DAS Removals continuing emphasis on the management of loss and damage claims through improved quality control and contractor performance;

• the volume of workplace removals undertaken was double that of 1992-93; and

• new clients have been obtained for household removals in Australia and overseas.

Outlook DAS Removals’ key strategies for 1994-95 will maintain the business in a strong competitive position by:

• seeking to deal with the reducing volume o f Defence household removals by diversifying into other government sector markets (customers and products) while retaining existing market share;

• working more closely with the removals industry to ensure enhanced service quality and value for money are obtained; and • increasing business efficiency and productivity through close control of costs, continuous process improvement and development of staff.

These strategies are aimed at achieving growth in all sectors and products over the next few years thus ensuring DAS Removals’ profitability is enhanced.

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Department o f Administrative Services A n n u a l Report 1993-94

1.12 Business Support

Organisation

COMMERCIAL TREASURY & MARKETING General Manager Greg W illiams

i i

Trust Account AGM Marketing Specialist Adviser Neil Smail Ann Thorpe a /g

Financial Analysis & Business Support Reporting J o h n T rain

L au ren ce Daly

A O SS

General Manager Denis Baguley National Manager _ _Business Development

C hris P ickett National Manager

Administration - L Finance & Systems P e te r D oolan J e f f W h ite

National Manager Operations M ike Kenny National Manager

DASCEM General Manager John Dickenson Technical Director National Marketing

Dr B re n t D a v e y ----- Manager Paul H uxley

National Manager Halon Bank S u s a n n e C larke

Objective To support the DAS Board, Executive and businesses by providing practical finance, marketing and business development support, including the management of new business initiatives and to provide a facility for the aggregate management of trust account resources.

Financial and staffing resources summary

S u b p r o g r a m 1.12 — B u s i n e s s S u p p o r t

1992-33 Actual SC000)

1993-94 Budget STOOD)

1993-94 Actual S('OOO)

BUDGETARY (CASH) BASIS Program C osts 100 32200 6615

(excluding running co sts) Running c o sts 0 0 0

Total a p p ro p riatio n s 100 32 200 6615

Less a d ju stm e n ts -3 62 27797 3 698

Total outlays 462 4403 2917

Total rev en u e 5700 30 000 4 483

STAFFING S taff y ears (actual) 44 44 47

54

Program 1 — Business Services 1.12 Business Support

Commercial Treasury

Description of functions In October 1993 Corporate Planning and Finance was restructured in the Corporate Management Program, to form two separate sections — Commercial Treasury to be located in the Business Services Program, and Corporate Resources to remain within the Corporate Management Program.

Commercial Treasury’s activities during the year centred on meeting the needs of its customers — the DAS Board, departmental executives and DAS businesses -— by providing a corporate perspective on the business planning, treasury management and performance monitoring of the

DAS commercial businesses, and as well, providing advice on business specific issues. In 1993­ 94 the unit was funded from appropriations, with cost recoveries from the DAS business units. In 1994— 95 the unit will be funded through the Business Services Trust Account (BSTA) by way of

a levy on the businesses.

Strategies and performance The key strategies adopted during 1993-94 focused on:

• assisting DAS businesses to prepare and disseminate their financial management and reporting information;

• providing strategic policy advice and analysis to the DAS Executive on a range of commercial issues; and

• liaising with DAS businesses and stakeholders to identify and resolve financial management and emerging finance related issues.

Commercial Treasury’s performance is measured primarily against its ability to meet its customers’ reporting and analytical requirements within a predetermined budget.

Commercial Treasury met all information request deadlines during the year. In terms of quality of its responses, the DAS Board and Executive expressed overall satisfaction with the information provided.

The actual running costs of Commercial Treasury were $0,870 million in 1993— 94, well below its budget of $1,278 million, resulting in significant savings for the DAS businesses. The average staffing for 1993-94 was 8.5 staff years against a budget of 11 staff years.

Commercial Marketing

Description of functions Commercial Marketing provides a range of marketing services to the DAS businesses and supplies the DAS Board and Executive with strategic sales and marketing analysis. The unit is funded by a combination of a corporate charge on BSTA businesses and consultancy fee for

service activities.

Strategies and performance Commercial Marketing’s strategies are to facilitate relationships with key DAS customers, facilitate cross business opportunities within DAS, and to raise the level of marketing and sales skills throughout DAS.

55

Department of Administrative Services A n n u a l Report 1993—94

Some of the activities undertaken during the year to meet these strategies included:

• production of a quarterly report to the DAS Board which provides a strategic overview and analysis of DAS markets, customers and marketing and sales activities;

• provision of strategic input to DAS commercial and corporate projects and reviews (e.g. analysis of business and marketing plans, participation in the review of commercialisation of DAS);

• sponsorship of a strong national network of sales and marketing staff from DAS businesses;

• the development/maintenance of relationships with key customers (e.g. Defence and networked departments), as well as developing business opportunities in new markets such as tertiary education and local government;

• undertaking fee for service marketing consultancy activities and placements in the businesses to help instil a commercial marketing and sales focus; and

• provision of support for the DAS international marketing function.

The actual running costs of Commercial Marketing were $1,478 million in 1993-94, against a budget of $1,950 million. The average staffing for 1993-94 was 12.8 staff years against a budget of 17 staff years.

Australian Operational Support Services (AOSS)

Description of functions

AOSS was set up to satisfy the needs of Defence through the Commercial Support Program (CSP). The CSP is a program to contract out various non-core activities of Defence. In addition to Defence, other Commonwealth and government agencies are increasingly looking to concentrate on their core functions and gain control of their non-core business costs.

AOSS has established a recognised and quality consortium consisting of public and private sector service providers and DAS businesses. AOSS was regarded as highly technically compliant in CSP Tier 1 and has achieved prequalification status for RAAF Tier 2 base support contracts.

Strategies and performance

AOSS developed commercial business skills in tender preparation, pricing and costing, benchmarking, risk management analysis, quality management systems and implementation planning in order to meet the diverse needs of other government customers.

The major activities undertaken in 1993-94 covered the coordination of DAS businesses and private sector providers to enable the preparation of bids for CSP tenders. Three bids were prepared. Decisions are due in the 1994-95 financial year.

AOSS worked with Commonwealth and other government organisations to develop proposals for activities to be outsourced. A total of eight proposals have been developed. All are under consideration with decisions due in 1994-95.

AOSS incurred a net loss of $0,780 million in 1993-94, against a budgeted loss of $0,819 million. The average staffing for 1993-94 was 11.3 staff years against a budget of 17 staff years.

56

Program 1 — Business Services 1.12 Business Support

Outlook

AOSS’s primary target in 1994-95 is Defence’s CSP Tier 2 base support contracts. Defence schedules indicate seven base support tenders will be advertised during 1994-95.

Various agencies, including DAS, are seeking alternative solutions to in-house delivery of services. AOSS will continue to assist a number of them in analysing the most cost effective solutions to their non-core business costs with a view to securing a share of the outsourcing opportunities.

Success in 1994-95 in both the CSP Tier 2 market and in other agency outsourcing initiatives will establish AOSS’s capability and position AOSS to pursue the expanding Defence market and migrate our consortium to the emerging other government markets.

DAS Centre for Environmental Management (DASCEM)

Description of functions

DASCEM is a commercial business unit that operates in the environmental management field. Its objectives are to satisfy customers’ environmental management needs for independent specialist advice and cost effective solutions.

DASCEM’s functions include:

• energy management;

• assessment and remediation of contaminated sites; and

• halon management and recovery (Halon Bank).

Strategies and performance

DASCEM’s strategies to achieve its objectives included:

• generating growth by extending established products to new customers and developing new products in environmental management;

• bringing new products to profitability quickly to fund growth from within the business; and

• specifically to; - provide tailored solutions to customers’ environmental needs; - focus on the Commonwealth sector as our primary market; - earn profits from the established contaminated sites market; - develop halon management as a niche market; and - develop energy management as the next key product.

DASCEM’s specific performance indicators are to:

• achieve a customer satisfaction rating of 90 per cent in 1993-94;

• achieve sales of $7,750 million; and

• establish an effective management information system.

The net profit of DASCEM was $0.0004 million in 1993-94, against a budget of $1,129 million. The average staffing for 1993-94 was 6.4 staff years against a budget of 6.4 staff years.

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Department o f Administrative Services A n n u a l Report 1993-94

1.13 Support Services

Organisation

General Manager David Rome

1 Staff IT Services 1 NOMAD Γ SupportDevelopment A ssistant General A ssistant General ServicesNational Manager Manager Manager A ssistant GeneralM ike N e ls o n R ichard E m erton C hris E dm ondson Manager T ony P earlm anPersonnel ServicesNational Manager D en is T aylorFinance & GeneralNational Manager Ken T aylorNational Manager National Manager J e n n ie F ischer M ich ael CliffObjectiveTo provide services to support the activities of the department and other government agencies.Description o f functionsSupport Services provides, on a fee for service basis, a range of business services to DAS businesscs/units and other public sector customers. These services include:• Personnel Services;• Staff Development and Training;• Finance and General Services;• Information Technology Services; and• Development and marketing of the National Organisational Management Database (NOMAD).Financial and staffing resources summaryS u b p ro g r a m 1.13 — S u p p o r t S e r v i c e s1992-93ActualSTOOD)1993-94Budget STOOP)1993-94Actual STOOP)BUDGETARY (CASH) BASIS Program c o sts 559 2627 2578(excluding running co sts)Running c o sts 55770 55942 53452Total a p p ro p riatio n s 56329 58569 56 030Less a d ju stm e n ts 29990 34 596 30360Total outlays 26339 23973 25 670Total rev en u e 29 990 34596 30 360STAFFINGS taff years (actual) 569 565 53258

Program 1 — Business Services 1.13 Support Services

Strategies

In 1993-94, Support Services sought to achieve a significant improvement in its financial results, to become a more customer focused organisation and to equip itself to conduct business more efficiently.

Strategies to achieve these objectives were:

• to review each service area to reduce costs and improve productivity;

• to concentrate on improving services for existing customers, especially in terms of quality and price; and

• to allocate additional marketing and sales resources to win new business.

Performance indicators

B u s in e ss S p ecific

Planned 1993-94

A ctual 1993-94

T arget 1994-95

Gross s a le s p er em p lo y ee $82796 $89698 $103 995

Total c o sts p er em ployee $95327 ($100104) $108067

Profit p er em ployee ($12531) ($10406) ($4 072)

Return on to tal a v e ra g e a s s e ts (35.1%) (36%) (9.3%)

Return on n e t a v e ra g e a s s e ts (62.4%) (91%) (16.7%)

Gross m argin (2.4%) (2.8%) 2.6%

Debtors (days s a le s o u tstan d in g ! 50 29 50

Performance outcomes Support Services made considerable improvement in its financial results. Following a loss of $12.2 million in 1992-93 the forecast loss for 1993-94 was $7.08 million. The actual loss for 1993-94 was $6.55 million.

Two service areas, Personnel Services and IT Services, were able to reduce their prices during 1993-94. During the year, each service area reviewed its costs. Reductions were achieved in most areas.

Customer feedback indicated that customer attitudes became more favourable and in some instances their expectations were exceeded. A lot of effort was put into getting the customers to understand service processes and why prices were set at certain levels.

Marketing and sales efforts resulted in increased business, particularly for Personnel Services and IT Services. Success had been achieved in demonstrating to some customers that NOMAD warranted a higher annual licence fee.

Outlook Support Services will improve its financial performance in 1994-95 and has budgeted to reduce its operating loss to $1.94 million.

There will continue to be a need to get closer to customers to ensure value for money services. Assisting this process will be efforts to further develop a positive and enthusiastic business culture. This will be facilitated by timely team briefings and training for all staff.

In 1994— 95, Support Services plans to achieve new business of the order of $4 million. It will further reduce its costs and improve productivity by re-engineering some service areas. An expected outcome from this initiative will be reductions in real price levels for some services. With

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Department o f Administrative Services A n n u a l Report 1993-94

respect to NOMAD, market research suggests that prices can be increased for a reliable, well supported product. The 1993-94 success in demonstrating to some customers that NOMAD warranted a higher annual licence fee will continue throughout 1994-95 with all other NOMAD clients.

In summary, in 1994-95 Support Services plans to increase its revenue by around $2 million and reduce its costs by about $1.3 million compared to its 1993-94 outcomes.

60

Program 1 — Business Services 1.14 Property Rationalisation

1.14 Property Rationalisation

Objective To rationalise, modernise and replace properties covering DASFLEET, DAS Distribution, DAS Removals and COMCAR.

Financial and staffing resources summary

S u b p ro g r a m 1.14 — P ro p e r ty R a tio n a lis a tio n

1932-33 Actual $('000)

1933-94 Budget $(■000)

1993-94 Actual $(■000)

Budgetary (cash) b a sis Program c o sts 0 0 0

(excluding running co sts) Running c o sts 0 0 0

Total ap p ro p riatio n s 0 0 0

Less ad ju stm en ts -1 4 7 6 18212 5206

Total outlays 1476 -1 8 2 1 2 - 5 206

Total rev en u e 0 15000 0

Staffing Staff y ears (actual) 1 1 1

Description of function

The purpose of the Transport & Storage Group Property Rationalisation Trust Account (PRTA) is ‘rationalisation, modernisation and replacement’ of properties occupied by the Distribution, COMCAR, DASFLEET and Removals business units. A decision on whether an occupied property should be rationalised is made by the Property Rationalisation Board on the basis of option analyses, valuations, business plans and market trends. Properties that are rationalised are marketed and if new premises are required the proceeds of sale funds the fitout for the new premises, relocation of the business and salc/pre-lease commitment fees.

The PRTA is administered by a board consisting of the General Managers of the former Transport and Storage Group, i.e. Distribution, COMCAR, DASFLEET and Removals business units, a Portfolio Finance & Corporate Planning representative and a Commercial Treasury representative. Decisions made by the board are implemented by a full time program coordinator.

Performance outcome Five properties were settled during 1993-94 and monies were received for four: Lord St Botany, Hale St Botany, O’Riordan St Alexandria and McElhone St Woolloomooloo were settled and monies received prior to 30 June 1994. Barrack Rd Cannon Hill was settled on 30 June 1994 and monies were received in July. The program’s sales were below estimate due to the sale of St Marys falling through with no replacement as yet.

Expenditure for the year of $9.7 million included major construction works of $6.5 million and fitout of $1.3 million. This is lower than estimated expenditure ($14.7 million) due to delays in contracts in the ACT development.

Although estimated revenue was not achieved in the financial year, delays in corresponding projects has ensured adequate funding levels for current commitments. The delay in achieving

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Department o f Administrative Services A n n u a l Report 1993-94

target this year was the failed sale of St. Marys. This should sell in the next financial year. Delays in rationalisation have been due mainly to lack of funding, unrealisable values of properties and environmental impact of contamination on properties.

Current status

Properties Originally the program was expected to run until 1992. The program is now expected to run for a further two years when the balance of the trust will revert to Consolidated Revenue Fund (CRF).

Current estimates are that the trust will pay $29.5 million to CRF by the end of 1995-96 compared to the original estimate of $30 million. The program of revenue and expenditure has reduced from $70 million to $61 million in revenue and $40 million to $31 million in expenditure. Although the target for CRF is likely to remain around $30 million, the program is volatile due to market fluctuations.

Of the 29 properties identified at the commencement of the program:

14 properties (and a part of 3 others) have been sold — value $36.3 million;

1 part property settlement is pending — value $0.6 million.;

6 properties (and part of 2 others) have been or are in the process of being placed on the market — possible value $24.1 million; and

9 properties (including 3 parts) will be retained for operational use.

Rent Target rent reductions for the four businesses appear achievable. Rental estimates for the businesses for 1993-94 are $7.7 million (excluding Property Adjustment Program (PAP)) which

is $4.4 million less than the original $12 million estimated annual rent costs at the beginning of the program. This represents a reduction of 36 per cent to date compared to the target of 50 per cent at completion of the program. Based on current and planned rationalisation and PAP (both continuing until 30 June 1996) it would appear that a target of 50 per cent reduction is achievable by the completion of this program.

62

Program 1 — Business Services 1.14 Properly Rationalisation

Status of properties managed by Property Rationalisation Trust Account as at 30 June 1994

S ta te Property S t a tu s

NSW 85-91 O 'Riordan S t, A lexandria Sold

Portm an S t, Z etland Sold

2 Forrester Rd, S t Marys Land S o ld /M ark etin g

Lord St, Botany S old

H ale St, Botany Sold

16 M cElhone S t, W oolloom ooloo Sold

VIC 39 C ordite Ave, M aribyrnong E nvironm ental A sse ssm e n t

B eachley S t, T ottenham P art M arketing

A shley S t, Braybrook M arketin g

109 Dudley St, W e st M elbourne E nvironm ental A sse ssm e n t

A shw orth Rd, O aklands Not for S ale

OLD 51 Barrack Rd, Cannon Hill Sold

87 W e b ste r Rd, Stafford Sold

1949 M urrarrie Rd, Cannon Hill Sold

W A 1 1 3 -1 2 5 W ellin gto n St, Perth N ot for S ale

M ooro Drive, M t C larem ont R ation alisin g

S p a rk es Rd, H en derso n Sold

SA 32 Audley St, W oodville North P art Sold an d Final due

31/12/94

62 Audley St, W oodville North Sold

Park Ave, Pennington Part S o ld /M ark eting

210 G rate S t, A delaide Not for S ale

Edinburgh Rd, Salisbury Not for S ale

TAS 174 Elizabeth St, Hobart Sold

Hull St, G lenorchy Sold

21-23 Pitcairn St, Glenorchy N ot for S ale

NT H udson Fysh Ave, Parap M arketin g

ACT N ew castle St (North), Fyshwick Not for S ale

N ew castle St (South), Fyshwick Sold

W e n tw o rth Ave, Kingston M ark etin g

63

Program 2 — Government Services M inisterial & P arlia m e n ta ry S erv ices General Manager

Julie McKinnon

I o n o s p h e r i c P r e d ic t io n S e r v i c e s A u s tr a lia n E s ta te M a n a g e m e n t

General Manager General Manager

Dr David Cole Richard W illiams

O v e r s e a s P ro p e rty G roup COMCAR

General Manager General Manager

John Kent Mel Box a/g

Objective To deliver a range of appropriation funded government services which support the Parliament, the Australian Public Service and the community and the department.

Financial and staffing resources summary P r o g r a m 2 — G o v e rn m e n t S e r v i c e s 1992-33 Actual

STOOD)

1993-94 Budget SC000)

1993-94 Actual sroooi

BUDGETARY (CASH) BASIS Program c o sts 355610 529677 450397

(excluding running co sts) Running c o sts (division 115) 28 008 35344 33926

Running c o sts (division 117) 71020 72292 72185

Total aoD rooriations 454 638 637313 556508

L ess a d ju stm e n ts 250 060 297 486 321936

Total outlays 204578 339827 234572

Total rev en u e 255 549 299224 319662

STAFFING S taff years (actual) 911 816 820

64

Program 2 — Government Services

ACCRUAL BASIS

1993-94 Actual £000

Total o p eratin g e x p e n se s 87585

Total o p eratin g re v en u es 9476

Net co st of services 78109

Total rev en u e from G overnm ent 81616

O perating resu lt 3507

O perating re su lt an d ex traordin ary item s 3507

Total a s s e ts 22 705

Total liabilities 19241

A dm inistered e x p e n se s 431395

A d m inistered re v e n u e s 338 085

A dm inistered a s s e ts 4 189 926

A dm inistered liabilities 570037

65

Department o f Administrative Services A n nual Report 1993-94

2.1 Ministerial & Parliamentary Services

Organisation

G e n e ra l M a n a g e r Julie McKinnon

i

Client Services Assistant General Manager Paul O'Neill

1

Communications & Facilities Assistant General Manager Vladimir Shevchenko

Objective

To provide advice and support services to Senators and Members of Parliament and their staff to enable them to meet their representational and ministerial responsibilities, and to provide services to the Australian Political Exchange Program.

Description of functions The Ministerial and Parliamentary Services Division provides a range of support services including accommodation, information technology, staff and travel related services, to Ministers, parliamentary office-holders, other members of the Commonwealth Parliament and their staff. The responsibilities of the division relate to responsibilities which the Minister for Administrative

Services exercises under the Ministers of State Act 1952, Members o f Parliament (Staff) Act 1984, Remuneration and Allowances Act 1990 and the Parliamentary Entitlements Act 1990 and to the administration of certain entitlements determined by the Remuneration Tribunal or by the government.

Financial and staffing resources summary

P ro g ra m 2.1 — M in is te r ia l & P a r l i a m e n t a r y S e r v i c e s

1932-93 Actual SC000)

1993-94 Budget $(■000)

1993-94 Actual $C0O0)

BUDGETARY (CASH) BASIS Program c o sts (Division 115) 355 371 234

(Division 117) 33221 34942 33771

(excluding running costs) 45530 51086 48699

Running c o sts (Division 115) 5968 6960 6983

(Division 117 71020 72292 72185

Total ap p ro p riatio n s 156094 165651 161872

Less a d ju stm e n ts 1018 837 1407

Total outlays 155 076 164 814 160465

Total rev enu e 1018 837 1407

STAFFING Staff y ears (actual) 127 113 113

66

Program 2 — Government Services 2.1 M inisterial Parliamentary Services

Strategies

The strategies developed by the division are to:

• deliver the services and facilities its customers need by gaining a better understanding of their needs and values and building mutually beneficial relationships with service suppliers;

• provide an environment to account for the views, aspirations and needs of DAS staff and customers by developing between work colleagues an awareness of current and upcoming issues, encouraging the free flow of ideas and views by opening up communication channels and ensuring that managers acquire relevant communications skills;

• inspire staff to develop the capacity to achieve a discreet and efficient service so that our customers can make best use of their entitlements in the performance of their public duties by establishing organisational and individual training;

• improve systems for division staff and clients by upgrading the quality of system output and upgrading electorate office equipment and software;

• redesign the format and content of resource management reports to reflect customer needs; and

• expand the Political Exchange Program into the ASEAN/Indo Chinese region and increase private sector involvement in itineraries for incoming delegations through the recently established Board of Trustees.

Performance indicators and outcomes

Program of regular meetings between client service managers and parliamentary clients

O u t c o m e

Visits were made to at least half of the electorate offices to obtain a better understanding of client requirements. A separate survey of randomly selected electorate offices was carried out to focus on electorate office accommodation and the working environment with a view to meeting individual client operational requirements better.

Survey of senators and members to establish future information technology needs

O u t c o m e

More than 170 forms, providing useable data, were returned from 223 Senators and Members.

Client focus video sessions

O u t c o m e

Client focus video sessions were held and used as the basis for assessing and improving the quality of service.

Twice yearly divisional con ferences

O u t c o m e

Divisional conferences were held in November and May to develop plans to achieve continuous improvement in service and delivery arrangements.

67

Department o f Administrative Services A n n u a l Report 1993-94

Consultation with cowiteipml organisations of tiie Political Exchange Program aid feedback from mid through assessment forms sent to Australian mid overseas delegates

O u t c o m e

Negotiations are currently being undertaken with Indonesia and Korea to establish exchange links with those countries. The inaugural Australian Political Exchange Program delegation visit to Vietnam is scheduled for November 1994.

Improved systems for division staff and clients

O u t c o m e

Improvements were made to the computer systems used in the automated payment of airline accounts. Facilities were developed and put into production for extracting data required and ai integrated Windows based software suite has been selected for use in electorate offices and in Parliament House. Installation of the software and a replacement program to provide high speed laser printers in electorate offices has commenced.

The ministerial communications network has been extended to include all parliamentary secretaries. Five external locations and 15 facsimile machines have been added to the network, and in many locations services have been extended to include computer data links.

Individual burning programs

O u t c o m e

Staff attended a range of general training courses offered by the department and external organisations.

For accrual reporting of the division’s accounts, staff have been trained in financial management skills to allow for the successful implementation of accrual accounting practices.

68

Program 2 — Government Services Program 2.2 Ionospheric Prediction Service

2 2 Ionospheric Prediction Service

Organisation

Director Dr David Cole

E xecutive Support Deputy Director

Kay M itchell Dr Phil W ilkinson

Culgoora Solar Observatory Customer Services Engineering Manager Manager Manager

D r R i c h a r d T h o m p s o n G e o f f R o b i n s o n B r u c e P a t e r s o n

IPS-USAF Solar Observatory Principal Physicist Dr Joh n K ennew ell

IT Services Consultancy & M anager Development

C r a i g B e v i n s Manager

Dr J o h n C aru an a

Objective To provide timely and reliable radio propagation and space environment advice to the Australasian community.

Financial and staffing resources summary

S u b p ro g ram 2 . 2 — I o n o s p h e r i c P r e d ic t io n S e r v i c e

1992-33 A c t u a l

$ ( ‘0 0 0 )

1993-94 B u d g e t

$ ( ' 0 0 0 )

1993-94 A c t u a l

$ ( ' 0 0 0 )

B U D G E T A R Y ( C A S H ) B A S I S Program c o sts 0 0 0

(excluding running co sts) Running c o sts 3226 3424 3214

Total a p p ro p riatio n s 3226 3424 3214

Less a d ju stm e n ts 190 167 192

Total o utlays 3036 3257 3 022

Total rev en u e 190 167 192

S T A F F I N G Staff y ears (actual) 40 42 37

Description of functions The Ionospheric Prediction Service (IPS) has a comprehensive range of services for public and private sector customers in the fields of defence, communications, aviation, geophysical

exploration, space activities and national and international science. IPS forewarns customers of temporal and geographical variations of the ionosphere and of the earth’s magnetic field based on known changes in solar activity. IPS information about solar-geophysical events helps to minimise the effects of disturbances on customer operations.

IPS services include:

• radio propagation advice and training to enable users of radio communication systems to obtain optimum use from their facilities;

69

Department o f Administrative Services A n n u a l Report 1993-94

• prompt technical advice on disturbances in the sun-earth environment for operators of satellite navigation, communication and other systems that use that environment;

• support for Australian participation in international sun-earth and space science; and

• preparation of Australian policy on standard setting bodies such as the International Telecommunications Union and the International Union for Radio Science.

Strategies IPS satisfies customer needs by providing professional personalised services, within customer time frames. IPS listens to the customers defining their goals and needs. To achieve this there is a strong emphasis placed on customer relations and staff training. Where extra skills are required to meet customer needs IPS will train staff or look to contractors for help.

IPS produces reliable, accurate and professionally competent services. These services are customised to serve the clients’ applications, using IPS initiative as necessary. IPS streamlines the systems that support and deliver services so as to give customers prompt access.

IPS promotes its services by emphasising its specialist knowledge and by backing it with highly trained and motivated staff and with tools that have been tailored to meet the needs of major clients. IPS aims for continuous improvement in quality. Teamwork is encouraged through staff participation in customer related actions and through team communications.

IPS develops strategic information links with the users of radio and space science within the Australasian and international community in order to maintain its high profile and to ensure state- of-the-art services. IPS seeks to work alongside other organisations on contracts to develop business skills and to promote services.

Performance indicators

I n d ic a to r 1992-93 1993-94

N um ber of ro utin e cu sto m ers 1314 1208

N um ber of Prediction S ystem s sa le s 412 549

N um ber of services 1.1 million 1.0 million

N um ber of c o n su ltan cies 12 10

N um ber of cu sto m er co ntacts 100 350

A ccuracy of m onthly predictions 60 p er cen t 75 per c en t

Accuracy of daily predictions 90 per cen t 90 per cen t

' P e rcen tag e of tim ely w arnings 70 p er cen t 80 per cen t

S taff develo pm en t participation 60 per cen t 85 p er cen t

B udget p erform ance w ithin 2 p er cen t Y e s Y es

Results against performance indicators

Customers To emphasise customer contact a Customer Services Section was established. Tasks include marketing, customer relations and service delivery.

There has been a major increase in the number of contacts with customers. This has led to increased sales and revenue as well as more work in hand. Customers have been assisted to make predictions in-house using IPS software. As a consequence, the number of customers and services

has decreased slightly and routine tasks have been replaced by consultancy work.

Routine radio frequency predictions tasks (and customers) have continued to decrease as more customers take up the option of purchasing IPS prediction software for their own use. Use of the

70

Program 2 — Government Services Program 2.2 Ionospheric Prediction Service

IPS software for High Frequency (HF) radio frequency management has continued to spread to many other countries including Indonesia, USA and New Zealand. The Australian Defence Force (ADF) evaluated and accepted a new personal computer software package designed to help

frequency managers plan HF ground wave propagation paths.

A Consultancy and Development section was formed to provide special customer services and improve prediction systems. Engineering support to consultancy services was enhanced with HF antenna modelling capabilities.

Services The quality of short-term forecasts has been maintained at the 90 per cent level with an increase in the timeliness of the IPS response after an event being reported.

Regular training courses were presented to customers during the year and special training and demonstrations were set up with other departments and industry, for scientists from Indonesia and Korea, for scientists participating in the space physics research programs in Antarctica during 1994, and for ADF frequency managers.

Special services were provided for ADF communications units operating as part of the United Nations (UN) forces in Cambodia, Somalia and Western Sahara. Radio Australia was assisted with advice on broadcasting to ADF personnel in Africa.

A solar X-ray alert system designed to assist operations of the Jindalee Over-the-horizon (OTH) Radar became operational using hardware supplied by the Royal Australian Air Force (RAAF) and software developed by IPS staff at the Learmonth Solar Observatory. Also, monitoring of trans-ionospheric paths started at the Learmonth Observatory in September 1993 to provide new services for earth-satellite radio systems.

IPS successfully completed a number of increasingly larger consultancy tasks for government agencies and contractors. These have included work for:

• Jindalee Over-the-horizon Radar Network;

• Defence High Frequency Modernisation Project;

• Minimum Essential Emergency Network project (Department of Defence);

• Headquarters ADF Spectrum Management System;

• Defence Science and Technology Organisation (DSTO) low latitude sounding equipment installation in Papua New Guinea;

• Civil Aviation Authority (CAA) International and Domestic HF Network;

• Domestic HF Broadcasting Service in Laos for Telstra; and the

• Australian and New Zealand Global Maritime Distress and Safety Systems.

IPS radio spectrograph equipment has interested overseas agencies because it provides a unique warning of solar disturbances. In conjunction with Australian industry, a commercial version of the radio spectrograph was sold to Indonesia.

The deployment of IPS-designcd ionosondes was suspended due to hardware problems. A computerised version of the current ionosondes was introduced instead. This eliminates primary records on film and will lead to real-time ionospheric monitoring services.

Work was started on the US Global Oscillation Network Group (GONG) solar equipment site at Learmonth, Western Australia, where seismic waves in the sun will be monitored (under an Australia-US Memorandum of Understanding) to predict future solar behaviour.

Staff Research seminars were given by both Australian and visiting overseas scientists in order to broaden the experience of IPS staff in their area of work.

71

Department o f Administrative Services A n n u a l Report 1993-94

The potential for IPS engineering staff to gain experience with the Royal Australian Navy Test and Evaluation group was explored. Collaborative work was undertaken with DSTO and Antarctic Division to improve communications between these groups. IPS chairs the Ionosonde Network Advisory Group which is responsible for maintaining standards for ionospheric data.

Eighty-five per cent of staff participated in appropriate development training.

Management IPS is a budget funded subprogram and received $3.2 million in 1993-94. This allocation was augmented by $0.19 million of revenue from specialist services. Of these funds, $1.9 million was spent on salaries. IPS has total assets valued at $2.4 million. The average staffing level for the year was 37.

A Charter has been established for the work of IPS. This defines the scope of IPS activities and will act as a guide to the core business of IPS.

Management procedures were streamlined during the year by the refinement of the Executive Committee, with fewer people, better defined responsibility for decisions, and regular monthly meetings. Accrual reporting was trialled successfully with audited and approved opening balances.

Brief weekly reports on IPS work provide communication for all staff, including management, on IPS activities. Major projects also produce monthly reports. The level of reporting is being reviewed.

Outlook Over the next three years IPS will seek to expand its services overseas, particularly in the areas of radio propagation software, training and consultancy work.

The IPS marketing plan was completely revised during 1993-94 and will be implemented during 1994-95.

As a result of a Government decision, IPS is preparing to introduce in July 1994 a service charge to users of its general services which include frequency predictions and space environment report services. IPS already charges for consultancy, software and training services.

IPS will continue to develop the commercial aspects of the solar radio spectrograph instrument and its software during 1994-95.

Software is being developed to integrate the Learmonth Observatory trans-ionospheric data into IPS services for earth-satellite radio propagation systems

72

Program 2 — Government Seruices 2.3 Australian Estate Management

2.3 Australian Estate Management

Organisation

General Manager Richard W illiams

Assistant General Manager Paul M igus

Deputy General Manager Greg W eir

National Manager Investment Bruce Norton

National Manager Development Management Frank M estrov

[

Business Development National Manager

M aria G arvey

1

Information

1

Portfolio Portfolio R e g i o n a l M a n a g e m e n t

Services Management Management 1

National Manager North South 1 ~ I

W a y n e M c G reg o r a /g Manager Manager NSW Vic.

C h ristin e D on D illey Regional Manager Regional Manager Francis J o h n M a d d e n

1

Ken Leigh 1

Accounting Development Manager Patrick A tk in so n

Financial Management National Manager M ic h a el W illiam s

a /g

SthQld Nth Old

Regional Manager Regional Manager Paul D ore M artin C rute

WA SA

Regional Manager Regional Manager R ichard T an G rah am T u ffee

Tas.

Regional Manager Brian S p a rk e s

NT

Regional Manager D ave Barclay

ACT

Deputy General Manager Tony M c N es s

Objective To derive optimum benefit for the Australian Government from ownership of the real property which AEM manages.

Description of functions

Australian Estate Management (AEM) is responsible for a broad range of management activities related to the Commonwealth’s owned real property estate, including: investment management; portfolio management; development management and construction of major Commonwealth office buildings; sales of surplus Commonwealth land and buildings; and land acquisition policy.

Other responsibilities include advising the Minister on the administration of the Lands Acquisition Act 1989 (LAA), performance reporting to Government and other matters associated with the Commonwealth’s use of real estate.

The program is budget funded but also receives revenue from rentals of office buildings and sales of surplus assets which arc returned to the Consolidated Revenue Fund.

73

Department o f Administrative Services A n n u a l Report 1993-94

Financial and staffing resources summary

S u b p r o g r a m 2.3 — A u s tr a li a n E s ta te M a n a g e m e n t 1992— 93 A ctual $('000)

1993-94 Budget $0000)

1993-94 Actual $0000)

BUDGETARY (CASH) BASIS Program c o sts 124714 241 616 199061

(excluding running co sts) Running c o sts 14 526 17 305 16575

Total ap p ro p riatio n s 139240 258 921 215636

L ess a d ju stm e n ts 236512 237 966 270157

Total o utlays -9 7 272 20955 -5 4 521

Total re v e n u e 236512 237 966 270157

STAFFING S taff years (actual) 208 240 235

Key Result Areas

Key Result Areas identified in the 1993-94 Business Plan were:

• to build mutually beneficial long term relationships with all existing and potential customers;

• to contribute to the Government’s economic, social and environmental objectives;

• to achieve a competitive operating environment;

• to create a corporate identity of common purpose, cooperation and success; and

• to widen AEM’s customer base.

Strategies, performance indicators and outcomes

To build mutually beneficial long term relationships with all existing mid potential customers This was addressed by developing programs of regular contacts at the appropriate levels with customers and by undertaking a formal customer focus diagnostic process.

I n d ic a t o r

Positive customer feedback.

O u t c o m e

The Total Customer Focus process which was carried out by AEM revealed that the business had improved relationships with its customers.

To contribute to the Government’s economic, social and environmental objectives Strategies included cost minimisation and the achievement of rental targets for the office estate, and the development of strategic programs of works to maintain the earning capacity of buildings in real terms. Programs addressing environmental measures were implemented and properties with existing or potential heritage value are being reviewed and identified. Other strategies included the

74

Program 2 — Government Services 2.3 Australian Estate Management

development of options for the management of the non-commercial estate and providing timely, quality advice to the Minister.

I n d ic a t o r s

Reduction in running costs;

achievement of income targets (rental and land sales);

implementation of approved works programs; and

achievement of program targets on time and within budget.

O u t c o m e

AEM achieved a savings of $0,561 million in its running costs during the 1993-94 financial year. Financial performance of the Estate is assessed on the basis of

• net return to the Consolidated Revenue Fund; and

• return on investment.

The program’s target of $207,685 million was returned to consolidated revenue from rents on commercial property during the 1993-94 financial year.

Sales of Real Property Assets returned $57,840 million, an increase of $48,070 million over the budget figure. Actual achievement was a yield of 10.22 per cent.

AEM carried out major, medium and minor construction projects during 1993-94. Major projects currently underway include York Park Offices, ACT, Terrica Place, Queensland and ATO Offices, Belconnen, ACT.

Expenditure during 1993-94 on construction, refurbishment and acquisition activities amounted to $149,057 million against the original budget of $179,354 million. During the year $8.2 million was incurred in estate management expenses, $0,539 million below the budget of $8,739 million and for the management of the non-commercial estate there was an expenditure of $3,719 million

in line with the Budget estimate.

To achieve a competitive operating environment AEM strategies under this key objective included the development of budgetary reform proposals, the improvement of business and financial management systems and improving AEM’s building asset management. The strategics also addressed a review of AEM’s delegations and the development of tenancy agreements with clients for the office estate.

I n d ic a t o r s

Completion of Stage 1 AEM Review;

acceptance by Government of the review team’s recommendations; and

revised delegations in place.

O u t c o m e

Stage 1 of the AEM Review was completed and was considered by the Expenditure Review Committee on 8 April 1994 and agreed to by Government.

75

Department o f Administrative Services A n nual Report 1993-94

Government approved the recommendations which flowed from Stage 1 of the AEM Review. The changes agreed to by Government will give AEM additional financial flexibility to allow it to ■ · compete more effectively with private sector building owners and developers.

AEM has reviewed its financial, staffing and LAA delegations. Revised delegations have been put in place for the LAA and staffing delegations and the revised financial delegations have been forwarded for approval by the relevant delegate.

To create a corporate identity of common pwpose, cooperation mid success Strategies included the development and implementation of a plan to become a better employer by fostering pride in the organisation, implementing appropriate training for AEM’s staff, establishing an effective communications network and reviewing the subprogram’s organisational structure.

I n d ic a t o r s

Complete a training needs analysis; and

organisational structure reviewed.

O u t c o m e

AEM’s Training Needs Analysis has been completed. The analysis identified a number of general needs for additional training in the areas of Accrual Accounting, Customer Service and Centrcman training which arc being addressed.

AEM’s organisation structure has been reviewed and changes to SES responsibilities put in place.

To widen AEM’s customer base This strategy was addressed by commencing development of a strategic marketing plan for the Estate.

I n d ic a t o r

Completion of a strategic marketing plan.

O u t c o m e

The completion of the marketing plan was not achieved this financial year however AEM has undertaken extensive research into its customer base and its own property holdings and the development of a sales and marketing plan is well advanced.

76

Program 2 ■— Government Services 2.4 Overseas Property Group

2.4 O verseas Property Group

O rganisation

Overseas Estate Assistant General Manager Dane Dahl berg I Estate Management StrategyDirector Ian H itch co ck

Estate Management Policy Director Ian Hall

General Manager John Kent

Overseas Construction & Services Assistant General Manager Denis W ilson

Outposted

Regional Director IAmericas) O liver H ow ie

Technical Services Chief Engineer W olf M e ffe rt

Construction Management A Director R ichard H ancock

Construction Management B Director Brian Franklin

Business Management Business Manager Fernan do Da Q uinta

O bjectives

To provide suitable accommodation overseas and to maximise the overall economic benefit to the Commonwealth Government.

F in an cial and staffin g resources sum m ary

S u b p r o g r a m 2 . 4 — O v e r s e a s P r o p e r t y G r o u p

1992-93 Actual S('OOO)

1993-94 Budget $('000)

1993-94 Actual SC000)

BUDGETARY (CASH) BASIS Program co sts 138 224 1 7 8 26 2 146 632

(excluding running co sts) Running c o sts 4 288 7 655 7 1 5 4

Total ap p ro p riatio n s 1 4 2 5 1 2 185 917 153 786

Less a d ju stm e n ts 17 829 57 698 47 533

Total outlays 124 683 1 2 8 21 9 106 253

Total revenue 17 829 57 698 47 533

STAFFING S taff y ears (actual) 54 70 73

77

Department o f Administrative Services A n nual Report 1993-94

D escrip tion o f fu nctions The Overseas Property Group (OPG) is the Commonwealth Government’s central agency and construction authority for the provision and management of office and residential accommodation in overseas locations.

OPG acts on behalf of two groups — Commonwealth agencies as users of property, and the Commonwealth Government as the owner of the property and the source of funds.

OPG’s main role is to provide overseas accommodation in the most cost efficient manner consistent with its clients’ operational needs. It maximises the value of the overseas estate through innovative property management and development practices while efficiently outsourcing many of its routine

property services.

OPG also performs a regulatory role in the monitoring and establishing of rent ceilings, and overseas accommodation standards and guidelines. Other services provided by OPG include the provision of furniture, fittings and supply programs and property maintenance programs.

S trategies, perform ance indicators and outcom es

Properly investment and strategy OPG will respond to the needs of its customers by:

• maintaining the physical assets of the overseas estate so their long term effectiveness and their capital value are safeguarded;

• ensuring all accommodation meets appropriate standards and security issues are considered so that posts are able to operate effectively;

• increasing the proportion of estate owned where this is possible and investment appraisal shows it to be cost effective;

• ensuring more flexible funding mechanisms.

I n d ic a t o r

The internal benchmark for rents over approved ceilings that had to be approved by Head of Mission OPG are below 10 percent of leases.

Furniture delivery time to posts from the period of order is 6 months.

Optimal level of estate ownership is at 65 per cent based on the 1994 Operational Review. Currently OPG owns 42 per cent of the properties it manages.

The total rental bill is expected to be reduced by $9.2 million over 11 years in Jakarta, 7 years in Hanoi and 12 years in Bangkok.

Maintenance of owned properties has improved with the expansion of Mainpac and the posting of Building Services Officers in key locations. A system is being set up to measure the percent of maintenance expenditure over property value.

O u t c o m e

Rents over approved ceilings that had to be approved by Head of Mission OPG in 1993-94 were 7.7 per cent of leases.

An operational review in January 1994 enabled OPG to look critically at its strategies in servicing and managing the overseas estate. A systematic method was established to analyse leased properties by quantifying the relative merits of leasing, purchasing or developing. The review indicated that an annual savings of $18.1 million can be achieved if the recommended ownership

78

Program 2 — Government Services 2.4 Overseas Property Group

level of 65 per cent can be implemented. The major region for increased ownership is Asia and the least change envisaged is in North America.

The new OPG operated property unit has now taken over the entire Port Moresby property portfolio. The unit has been most successful in rationalising property expenditure and providing a central focus for property management.

The Building Automation System is being implemented in Beijing and an upgrade will be provided for Paris, Washington and Bangkok to control the maintenance operations of large owned complexes.

Major projects completed include:

• The $24.9 million construction project for 45 staff residences and recreational facilities in Konedobu was completed in July 1993;

• The $3.8 million facade refurbishment project for the Washington chancery was completed in December 1993;

• The new chancery in Jakarta was occupied in July 1993. The new chancery provided better facilities for embassy users and staff.

Quality management OPG will ensure quality management by;

• establishing procedural systems for the execution of its activities; and

• achieving time, costs and quality standards through technical competence.

In d ic a t o r

The internal benchmark for construction projects completed within 10 per cent of budget is above 75 per cent of total projects.

The internal benchmark for construction projects completed within 10 per cent of target time is above 75 per cent of total projects.

A Customer Value Model and quality procedures have been developed for the Estate Management and the Construction Management branches.

O u t c o m e

88 per cent of construction projects were completed within 10 per cent of budget for 1993-94.

65 per cent of construction projects were completed within 10 per cent of target time for 1993-94.

A commercial approach to contract delivery, particularly using the partnering method, was implemented in Jakarta, Bangkok and Hanoi. OPG works closely with the contractor to ensure quality control and efficiency, and The redevelopment of OPG’s estate and construction management procedures has been highly

successful in improving the quality of OPG’s operations and services.

Teamwork and leadership OPG will respond to its internal needs by:

• increasing staff satisfaction and upgrading property and business skills of its staff.

In d ic a t o r

Development of staff training needs analysis.

79

Department o f Administrative Services A nnual Report 1993-94

O u t c o m e

Staff Development completed interviews with staff to carry out a Staff Training Needs analysis.

Outlook

Property Investment and Strategy OPG is to undertake a four year program worth $38.6 million to improve accommodation, including:

• construction of a new official residence in Singapore. The cost of the project will be offset by the sale of Glencaird, the current official residence;

• Rent and maintenance savings will be achieved from the construction of 12 residential housing units in Hanoi. Current monthly rent is costing up to $10,000 a month with escalation rate of 10 per cent and initial costing of up to $100,000 in essential maintenance work;

• Construction of chancery in Islamabad to overcome serious accommodation deficiencies;

• A $14.3 million refurbishment program for Australia House in London which will incorporate an Australian Centre. There has been no comprehensive renovation of the building for 76 years;

• Acquisition of site in Shanghai for seven townhouscs. The project will be offset by rent savings of $2.1 million each year from 1997-98; and

• Owned properties will be analysed for their performance and the property ownership ratio will continue to be increased through appropriate financial structures where possible.

(Quality Management Quality procedures will be extended to include the Technical Services and the Business Management sections.

Client satisfaction measurement will be developed.

Appropriate systems to support accrual reporting will be implemented.

Teamwork and Leadership Appropriate training programs to improve staff skills in property and business will be developed.

80

Program 2 — Government Services 2.5 COM CAR

2.5 COMCAR

Organisation

General Manager Mel Box a/g

VIP visits and Customer Service National Manager Bob Collins

Finance Manager David M edley

Northern Regional Manager NSW. Old. NT David Fink

Southern Regional Manager Vic., Tas.. WA, SA Y avarK han

ACT Operations/ Training Manager C hris G abriel

National Reservations/ Allocations Manager M ark G reen

Objective To provide car-with-driver service for the movement of government leaders, officials, and dignitaries.

Description of functions

COMCAR operates on commercial lines through the DAS Business Services Trust Account. COMCAR provides a secure, high quality car-with-driver service on a fee for service basis to a wide range of Commonwealth customers.

COMCAR operates a fleet of late model Ford LTDs and Holden Caprices. The fleet also includes fully protected vehicles for use where protected transport is required.

Strategies

Business strategies during 1993-94 were:

• to concentrate on supplying the appropriate service to its core customers — the Governor- General, the Prime Minister, other Ministers, other Members and Senators, Judges, and major guests of government. A customer contact program was initiated. Entitlees were contacted to obtain information regarding service levels provided by COMCAR;

• to continue to service the general public service and Veterans Affairs beneficiaries sectors. This program has continued in the 1993-94 financial year, although beneficiary transport has been moving progressively to other forms of transport; • to withdraw from non-Commonwealth work on 1 November 1993;

• to reduce costs to the maximum extent by negotiating with unions and staff under enterprise bargaining; changing work practices; and by taking advantage of new technology. COMCAR initiated enterprise bargaining discussions with the Transport Workers Union (TWU) and the Commonwealth Public Sector Union (CPSU) in May 1993. In December 1993 an independent mediator was appointed by the Australian Industrial Relations Commission (AIRC) to oversee these negotiations. In June 1994 an agreement was signed and certified by the AIRC. The

81

Program 2 — Government Services 2.5 COM CAR

this appears as a late job. Further delays can occur due to traffic conditions or the supply of an incorrect address.

Percentage of calls The percentage of calls answered in the first threshold for this financial year is 81.6 per cent. The first threshold was raised from seven seconds to fifteen seconds during the year as the original target was an unrealistic time span. During the beginning of the financial year, the

national reservations experienced initial systems problems, and coupled with new staff has led to the current performance level. The original target is on track as COMCAR moves out of the economy market during the 1994-95 financial year.

Minutes cf system downtime The average unscheduled downtime for the system was fourteen minutes for the financial year. After experiencing initial implementation problems, the systems specified in the modernisation program have been completed. They are operating reliably and within expectations. The

systems are providing flexibility and adaptability to the organisation as it downsizes to a VIP fleet by 1 July 1995.

Management and Technology Consulting (MTC) was commissioned to review COMCAR’s modernisation project in September 1993 following a number of problems and delays to the project. The review found the new system was supporting COMCAR’s operations reasonably well and had great potential for supporting them even further when components of the system

are made more efficient and effective. The review made nine recommendations, of which six have been implemented and three are in the process of being implemented.

In March 1994, COMCAR was awarded the Government Technology Productivity Gold Award for the COMCAR Modcmation Project. The award is a recognition of achievements that have been made to date in COMCAR in relation to improved service and increased efficiencies in reservations, allocations, accounting and management information systems since the modernisation program was initiated.

Debtor days A comprehensive debt collection contact program was initiated during the financial year. This led to debtor days being reduced to 56 days. The modernisation program provided benefits in the form of more accurate billing, resulting in further improving the debtor days.

Total staff The 1993-94 Budget decision required COMCAR to downsize to a VIP only fleet by 1 July 1995 and a round of voluntary redundancies was offered to all staff. A better than expected figure was achieved with a higher proportion of staff electing to take up voluntary

redundancies.

Sales Revenue was up by 22 per cent compared to budget. This is attributed to the fact that COMCAR did not withdraw from the economy market during the 1993-94 financial year, although this factor attributed to an increase of 11 per cent in cost of sales. The major impact was increased usage in contractors and an increase in overtime to cover the excess work loads.

Other Costs Other cost were also reduced by 38 per cent as gains were made with reduction in office staff and savings from the modernisation program began to be realised.

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Department o f Administrative Services A n n u a l Report 1993-94

Staff Comprehensive staff development programs continued during the 1993-94 financial year. In particular, specialist training was provided to all personnel who staff the National Allocations Centre. Skills needs analysis was commenced on most employee groups’ duties. Anti-terrorist driver development and re-certification courses were held in Canberra and a number of driving

staff successfully completed or were re-certified at these demanding programs.

Further driver development programs concentrating on passenger comfort and safety, evasive skills and specialist motorcade skills were conducted in each state. COMCAR also initiated a customer focus program with the key elements designed to sensitise all staff to the requirements of both external and internal customers. The program will be on-going and is aimed at continuing improvements in the delivery of a total quality customer care service to all customers.

Enterprise Bargaining Agreement

The Enterprise Bargaining Agreement signed by COMCAR and its unions provides for standardisation and flexibility of operational procedures within each state. As the organisation has centralised its key operational functions in the ACT region, it was considered vital that all other states have a standardised and flexible operation which would lead to efficiencies in managing the business.

A key element of the agreement was the principle of gain sharing. Benefits derived from improved productivity achieved through this agreement will be shared by COMCAR staff, COMCAR, COMCAR’S customers, and the government on the taxpayer’s behalf.

The agreement is structured in two parts. Two increases of 1.4 per cent on the relevant base pay rate, the first on signing of the agreement, the second, four months later from the date on which the agreement came into force, plus a one off payment of $400.00, providing that productivity

outcomes agreed to were obtained.

The second half of the agreement provides for COMCAR to enter into a new agreement involving flexible hours as its centre piece.

Review The organisation has been subject to a number of major reviews over recent years in an attempt to improve its performance. It was examined in the 1993-94 Budget context at which time it was

decided to focus COMCAR’S operation on its core business — serving the Governor-General, the Prime Minister, Guests of government, other Ministers, other Members and Senators, the judiciary, and statutory office holders. Other customers such as repatriation beneficiaries, Commonwealth departments and agencies and GBEs, would continue to be served where the cost of doing so could be covered.

The move to a VIP fleet is to be completed by 1 July 1995.

84

Program 3 — Purchasing & Information

Organisation

P u r c h a s in g A u s tr a lia General Manager Policy & Development Bill Peel

P u r c h a s i n g A u s tr a lia General Manager Operations Paul Taylor

Office of G o v e r n m e n t In form ation & A d v ertisin g Assistant General Manager Tony Robinson

Program objective To work in partnership with our customers to achieve responsive, value for money purchasing solutions.

Financial and staffing resources summary

P ro g ram 3 — P u r c h a s i n g & In fo rm a tio n

1992-93 Actual STOOD)

1993-94 Budget S('OOO)

1993-94 Actual S('OOO)

BUDGETARY (CASH) BASIS Program c o sts 1999 2 046 2 046

(excluding running co sts) Running co sts 18635 23735 24 082

Total ap p ro p riatio n s 20634 25 781 26128

Less ad ju stm en ts 14 072 13144 11673

Total outlays 6562 12 637 14455

Total rev en u e 15150 13144 12707

S T A F F I N G S taff y ears (actual) 228 244 248

85

Department o f Administrative Services A n nual Report 1993-94

ACCRUAL BASIS

1993-94 A ctual $Ό00

Total o p e ra tin g e x p e n se s 30 536

Total o p e ra tin g re v en u es 1336

N et c o st of serv ices 29200

Total rev en u e from G overnm ent 29389

O p erating re su lt 189

O perating re su lt and ex traordin ary item s 189

Total a s s e ts 3199

Total liabilities 5999

A d m in istered e x p e n se s 0

A d m in istered re v e n u e s 11826

A d m inistered a s s e ts 98

A dm inistered liabilities 0

86

Program 3 — Purchasing and Information 3 .1 Purchasing Australia

3.1 Purchasing Australia

Operations General Manager Paul Taylor

I

OGIA

A ssistant General Manager Tony R obinson

CommTel IT Contracts &

A ssistant General Standards

Manager A ssistant General

B aldev Bedi Manager

R oger W e b b

General Operations A ssistant General Manager

C ath i M o o re

Policy & Development General Manager Bill Peel '

i

Promotions & Policy Projects A ssistant General Manager

L aurie Le Fevre

Strategic Policy & Marketing A ssistant General Manager

S am Skrzypek

Objective To serve the Commonwealth with enterprise and skill to achieve and support best buying.

Description of functions In 1993-94 the program’s functions were to:

• develop and coordinate Commonwealth purchasing and disposals policy;

• play a key role as an agent of change in Commonwealth purchasing;

• seek to ensure that opportunities for Australian and New Zealand industry development are maximised through Commonwealth purchasing;

• manage the Commonwealth’s common use contracts and provide assistance with agency purchasing and disposals services on a cost recovery basis; and

• facilitate the linking of buyers and sellers in the Commonwealth market for their mutual benefit.

During the year the responsibilities of Purchasing Australia were widened to include the Office of Government Information and Advertising (OGIA) and the Commonwealth Telecommunications Group (CommTel). Information on OGIA is at a separate section of this report.

Strategies Purchasing Australia’s Business Plan for 1993-94 focused on enhancing the ability of the business to ensure high performance in its Australian Public Service-wide role as both a policy and service delivery organisation. To this end strategies were developed to:

• ensure that the Government’s objectives for Commonwealth procurement are achieved;

87

Department o f Administrative Services A n n u a l Report 1993-94

• emphasise customer focus in all areas of Purchasing Australia with the aim of operating in partnership with Commonwealth buyers so that the range and quality of services offered meet customer needs;

• respond to the needs of suppliers to gain a better understanding of the government market and facilitate purchases from small and medium sized enterprises; and

• develop the competence of Purchasing Australia so that staff are justifiably confident of their abilities and customers recognise their expertise.

Financial and staffing resources summary

S u b p r o g r a m 3.1 — P u r c h a s i n g A u s tra lia

1992-93 Actual $(000)

1993-94 Budget S('OOO)

1993-94 Actual $('000)

BUDGETARY (CASH) BASIS Program c o sts 0 0 0

(excluding running co sts) Running c o sts 17081 21760 22135

Total ap p ro p riatio n s 17081 21 760 22135

Less ad ju stm en ts 13 271 12 523 12086

Total outlays 3810 9237 10 049

Total rev en u e 14 604 12 523 12086

STAFFING Staff years (actual) 209 223 227

Results against key performance indicators

Evidence cf stakeholder satisfaction with the peiformance cf Purchasing Australia which indicates recognition cf its role mid ongoing suppoii Consistent with its role as coordinator of APS purchasing policy, Purchasing Australia contributed

to the public debate about purchasing policy and administration through the Purchasing Review Task Force established by the Minister for Administrative Services in October 1993; provision of submissions and evidence to the House of Representatives Standing Committee on Industry, Science and Technology Inquiry into Australian Government Purchasing Policies; and through its

contribution to the Government’s White Paper on Employment and Growth.

A number of the options proposed by the Purchasing Review Task Force were adopted as recommendations by the House of Representatives Standing Committee on Industry, Science and Technology in its report Australian Government Purchasing Policies — Buying Our Future tabled in March 1994 and were included in the White Paper on Employment and Growth presented in May 1994 by the Prime Minister.

Significant progress was also made during the year in implementing the Government’s January 1993 purchasing initiatives to assist local industry to compete for government business and improve the professionalism and efficiency of government purchasing.

Some key results to date include:

• National Training Board endorsement of the Commonwealth Procurement Competency Standards, and their wide acceptance throughout the APS. The standards are being used to develop, in conjunction with the Australian Committee for Training Curriculum, three new purchasing training courses: the Basic Purchasing Statement of Competency; the Advanced

Certificate in Public Sector Procurement and the Postgraduate Diploma in Public Sector

88

Program 3 — Purchasing and Information 3.1 Purchasing Australia

Procurement. The courses will be submitted for accreditation to the relevant authorities in 1994-95;

• encouragement of prospective suppliers, through the Meet the Buyers Events, to seek government business. Evaluation results indicate that; 43 per cent of suppliers have submitted tenders or quotes to government buyers since the Sydney event in October 1993; 48 per cent of buyers believe suppliers have a better understanding of the government buying process; and 41 per cent believe it is now easier to identify suppliers;

• successful placement of staff from Commonwealth agencies with industry associations for agreed periods to improve their knowledge of industry capabilities and commercial issues, and to improve industry understanding of government purchasing policies under the industry placement scheme; and

• development and distribution to subscribers of an Australian information industry capability database. The database assists both government buyers and systems integrators from the private sector, to source information technology products and services. It is updated quarterly and is currently being evaluated.

Success of new promotion campaigns and an overall increase in the use and sales of products/services and in customer satisfaction Evaluation of a number of Purchasing Australia products indicates a high level of customer satisfaction and success of products, services and promotional campaigns. For example:

• a benchmark study by AGB McNair has indicated a high level of customer satisfaction with Purchasing Australia’s Advisory Services. AGB McNair believes the findings are very encouraging by comparison with similar studies for other organisations.

• subscriptions increased by 100 per cent for the PE54 small systems software contract;

• the evaluation in January 1994 of the new Guide to the Government Marketplace, a publication for businesses looking to expand their share of the government market, found that the publication has been positively received by subscribers and that Purchasing Australia’s efforts to assist small and medium sized businesses is widely acknowledged;

• the Nationwide Purchasing Training and Awareness campaign has achieved a significant increase in participation in purchasing training. A formal evaluation of the campaign has yet to be conducted but early indications are that participation in purchasing training more than doubled during the year;

• the establishment of the CommTel Board of Management and the willingness of agencies to be involved in whole-of-govcmment initiatives related to telecommunication services indicates that the services provided by CommTel arc being favourably received; and

• increased liaison with State governments to determine areas for rationalisation and improved use of telecommunications.

Progress of Total (Xudity Service initiatives Opportunities to improve the customer focus of Purchasing Australia’s service delivery were identified, including an integrated approach to customer relations and the establishment of a single customer database, and the measures for improvement included in the Business Plan for

1994-97.

As part of the ongoing review of customer services, improvements were made to the common use arrangements for supply of photocopy machines to include the total service option commonly known as ‘click charging’, and the upgrade of the Period Contract Awareness Service is on target with the inquiry system nearing completion. A start has also been made to the development of a quality management system which will meet international standards.

89

Department o f Administrative Services A nnual Report 1993-94

In relation to telecommunication services, whole-of-govcmmcnt agreements have already been negotiated with Telecom, Optus, Vodac and AAP Telecommunications resulting in savings estimated at approximately $15 million per annum.

The whole-of-govemment pricing arrangements with Microsoft have resulted in annual savings of $15 million and caused other software vendors to consider lower government pricing.

Staff satisfaction and competence based on surveys andfeedback from staff Although staff satisfaction surveys were not undertaken due to the heavy policy and project workload experienced throughout the year, staff feedback was obtained through the TQS workshop activities and used in the development of the Business Plan for 1994-97. Branches also introduced staff development planning activities and took advantage of a number of opportunities for staff exchanges between central and regional offices and secondment to other organisations including the Industrial Supplies Office, the Joint Australian Public Service Training Council, the House of Representatives Standing Committee on Industry, Science and Technology, the Canadian Government and the Council of Small Business Organisations of Australia Ltd.

Evidence of sbnctwalflexibility to improve adminisb'ative efficiency and responsiveness Purchasing Australia has led major reforms of the Commonwealth’s purchasing policy and administration in recent years while also managing a wide range of complex procurement activities on behalf of Commonwealth agencies. Some internal re-organisation was undertaken early in the year to improve the focus of policy review and development activities and achieve better coordination between the policy and operational areas of the organisation.

In addition to an increasing workload generated by policy review activities, Purchasing Australia’s range of responsibilities has been expanded by the addition of OGIA and CommTel.

CommTel was established following a decision in the 1993-94 Budget to adopt a whole-of- govemment approach to the procurement of telecommunications within government. The Commonwealth Government is the largest single user of telecommunications services in Australia spending in excess of $300 million annually from a range of suppliers. It is therefore in a position to take advantage of the competition resulting from the Government’s micro-economic reform of the telecommunications industry to achieve savings in its communications costs.

In recognition of the increased workload and the Government’s increased emphasis on industry development, Purchasing Australia now comprises two divisions: Policy and Development, and Operations, and is managed jointly by two General Managers. A review of Purchasing Australia’s

structure and operations is underway and is due to be completed in September 1994.

90

Program 3 — Purchasing and Information 3.2 Information Advertising

3.2 Information & Advertising

Organisation

Assistant General Manager Tony Robinson

Government Advertising Service Director Philip R utledge

Project Management Service Director Ros Cornish

Standards, Liaison and Media Services Director W endy Hamilton

Objective

To advise and assist departments and government on how to achieve the most expert, efficient, effective and equitable communication of government information to all Australians. To provide expert, efficient and cost-effective photographic and media liaison services to Parliament and associated agencies.

Description of functions The Office of Government Information and Advertising (OGIA) advises government departments and agencies on advertising, market research, public relations, strategic planning,

marketing, government information policy and the content and appropriateness of printed material for public use. An extensive training program is also run for staff in government departments to develop and extend their skills in conducting information activities. OGIA also

provides the secretariat for the Ministerial Committee on Government Information and Advertising (MCGIA) which oversees all government information activities.

Finance Direction 25D requires Commonwealth advertising to be arranged through the centralised advertising system in accordance with the arrangements notified by OGIA.

OGIA also provides photographic services under the name AUSPIC on a partial cost recovery basis to Government House, the Prime Minister, Federal Ministers, Opposition Office Holders and Members and Senators. AUSPIC also provides ad hoc services to departments on a fee for service basis. Events of national importance are also covered to provide historical records.

Funding is a mix of cost recovery and budget funding.

Key objectives Strategies addressed these key objectives in 1993-94:

• to provide specialist services and consultancy advice, on all aspects of public communication, to meet our clients’ needs;

• to focus on the Government’s policy on Quality Assurance and the implications for OGIA and the communication industry; • to create a corporate ethos of responsive client service, professionalism and cooperation; and • to manage and monitor the effectiveness of the advertising component of the Australian

Made campaign.

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Department o f Administrative Services A n n u a l Report 1993—94

Financial and staffing resources summary

S u b p r o g r a m 3 . 2 — I n f o r m a t i o n a n d A d v e r t i s i n g

1992-93

A c t u a l

$ ( ' 0 0 0 )

1993-94

B u d g e t

SCOOO)

1993-94

A c t u a l

$ ( ' 0 0 0 )

B U D G E T A R Y ( C A S H ) B A S I S

Program c o sts 1999 2046 2 046

(excluding running co sts) Running c o sts 1554 1975 1947

Total a p p ro p riatio n s 3553 4021 3993

L ess a d ju stm e n ts 801 621 -4 13

Total outlays 2752 3400 4406

Total rev en u e 546 621 621

S T A F F I N G Staff years (actual) 19 21 21

Strategies against key objectives

To provide specialist services and amsidtancy advice, on ad aspects of public communicaticm, to meet our clients’needs This was addressed by assisting clients with their communication activities, including assisting them through the Ministerial Committee scrutiny process, advising on the Government’s policies in this area, improving client skills through a training program, providing photographic services, managing the central advertising system and providing

the secretariat to the MCGIA.

P e r f o r m a n c e in d ic a t o r s

1 Level of client satisfaction with OGIA services and consultancy advice, demonstrated by repeat clients and new clients.

2 Positive evaluations of training courses.

3 Increase in number of photographic projects undertaken including number of images stored electronically for instant retrieval and historical events covered.

4 Number of meetings of the MCGIA and number of matters considered.

5 Advertising expenditure through the central advertising system including the number of campaigns; low advertising rates.

6 Adherence of advertising to government guidelines on the portrayal of women and minorities.

O u t c o m e s

1 OGIA provided advice and assistance to departments and agencies on more than 167 new non-advertising communication projects. A large proportion of these (67 per cent) were assistance with market research projects. The level of client satisfaction is indicated by the number of regular clients or clients referred by other OGIA clients (there were

135 of these). In addition there were 32 new clients.

Several focus groups were held to explore client views of OGIA services. Most clients reported satisfaction with OGIA services, with the outcome of research commissioned and with the performance of consultants. Clients also commented favourably on the

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Program 3 — Purchasing and Information 3.2 Information & Advertising

OGIA newsletter and suggested some format changes for OGIA’s newsletter Dialogue which were implemented with the February edition.

2 Activities in 1993-94 included five full day seminars, one four day conference at Batemans Bay and one lunchtime seminar. The training courses are usually fully booked and participant evaluations show they are highly regarded and of great practical benefit.

3 AUSPIC covered 1429 assignments, an increase of 119 (9 per cent) over the previous financial year. This compares with 1310 projects in 1992-93, 874 in 1991-92, 532 in 1990-91 and 678 in 1989-90.

Photographic coverage of historical events included:

• The International Parliamentary Union conference

• Various Parliamentary Delegations and Committees from both Senate and House of Representatives

• On-going photographic record of public works within Parliament House.

New computer systems have been installed to allow permanent storage and retrieval of significant images. More than 200 images are now available.

4 There were 10 meetings in 1993-94 compared with 16 in 1992-93, largely because it took some time for the Committee to be reconstituted following changes to the Ministry. A total of 43 agenda items were considered and an additional 23 urgent items were approved by the Minister during the time the

committee was being reconstituted.

5 The aggregation of buying power through the Commonwealth’s master agencies enables OGIA to negotiate favourable rates for the benefit of all departments and eligible statutory authorities. Further savings for Commonwealth advertisers are achieved by the central advertising system, which pays the fees for creative

agencies appointed to plan and produce campaign advertising. Production costs for campaign advertising are billed to clients for the net cost only.

The Commonwealth spent $62.57 million on advertising and associated projects through the central advertising system during the 1993-94 financial year compared with $70.12 million in 1992-93 and $47.58 million in 1991-92.

Highly competitive advertising rates are negotiated annually by the Government’s campaign master agencies.

A total of 94 advertising projects were arranged through OGIA of which 55 were major campaigns — an increase from last year’s total of 84 campaigns. Campaigns included:

• Australian Made Campaign (Department of Administrative Services)

• Unleaded Petrol — “no lead no worries” (Commonwealth Environment Protection Agency — Department of the Environment, Sport and Territories)

• Commonwealth Scrum Laboratories public share offer (Department of Finance)

• Workplace Bargaining Campaign (Department of Industrial Relations)

• Drink Driving, Young Drivers and Rural Safety (Department of Transport and Communications)

• Australian Electoral Commission (Department of Administrative Services)

• Recruitment for Navy, Army and Airforce (Department of Defence)

• AIDS anti-discrimination campaign “AIDS doesn’t discriminate, people do” (Department of Human Services and Health)

93

Department o f Administrative Services A n n u a l Report 1993-94

• Drug Offensive campaign (Department of Human Services and Health).

6 All campaign advertising prepared for OGIA clients was scrutinised for compliance with the government’s guidelines on the non-discriminatory portrayal of women in advertising.

Tofocus on the government’s policy on Qttality Assurance and the implicationsfor OGIA and the communication industry This was addressed by consulting with the industry and Government agencies, developing a position on the application of Quality Assurance (QA) for the industry and examining

the certification process to determine whether OGIA should seek certification.

P e r f o r m a n c e in d ic a t o r

Industry consulted and implementation plan produced to apply QA policy to OGIA and the industry.

O u t c o m e

OGIA worked with the communication industry and with clients, helping them to understand the implications of the government’s QA policy. This involved organising several seminars on the issue and providing speakers for relevant forums. A number of major agencies have embarked on the certification process, and industry attitudes have become increasingly positive.

After investigating the certification process, OGIA began work toward achieving Quality Assurance certification. A consultant has been contracted to assist in the process.

The Minister determined that the Government would not require QA certification for services from the communication industry at this stage but it may be regarded as important in some circumstances. This will be reviewed in 1996.

To create a corporate etltos of responsive client service, ptxfessionalism and cooperation Strategies included emphasising and addressing customer requirements and feedback and providing staff with opportunities to improve their skills and keep up-to-date with the industry and relevant technology.

P e r f o r m a n c e in d ic a t o r s

1 Client service commitment by staff.

2 Opportunities provided to staff to develop their skills.

3 Tools provided to assist staff.

O u t c o m e s

1 Greater emphasis was placed on client service including seeking feedback from clients in a number of ways. Some work processes were changed to provide better services, particularly in the area of project management.

2 Staff training needs were identified and in many cases were met by on-the-job training and attendance at some OGIA and external courses; 2.1 per cent of OGIA’s staff budget was devoted to training — about $27,000. A communication audit determined staff information needs. Close contact with professional associations was maintained, and staff attended a number of professionally-rclevant conferences and seminars. Senior staff presented papers at several conferences.

3 Systems and technology were upgraded and staff trained appropriately.

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Program 3 — Purchasing and Information 3.2 Information 6? Advertising

Manage Vie advertising component of the Australian Made campaign mid monitor its effectiveness This was addressed by developing and implementing a strategy for the 1993-94 campaign and by commissioning market research to evaluate its effectiveness.

P e r f o r m a n c e in d ic a t o r s

1 Public awareness of campaign messages and enhanced consumer perceptions of the benefits of buying Australian Made products.

2 Campaign conducted within budget.

O u t c o m e s

1 Research undertaken in February 1993-94 indicates that Australian Made promotional activities and advertising have had a positive effect on consumers’ purchasing habits. About 77 per cent of consumers look for Australian Made indicators when shopping, increased from 41 per cent in 1986; 78 per cent recalled the campaign; and 96 per cent recognised the Australian Made logo. An economic appraisal concluded that the net sales benefit to Australian manufacturers was between $185 and $350 million, plus a minimum boost to employment of 900 to 1000 people.

2 The advertising campaign was conducted within the allocated budget of $2 million.

Review OGIA received the final Mugford/Martin report on Government Information Dissemination and OGIA’s role in the process. An assessment of this report’s recommendations was included as one of the terms of reference for an independent review of OGIA’s practices and procedures by John Lleonart.

The Lleonart review was completed in March, and made a number of constructive proposals to improve OGIA services. These proposals have been incorporated in OGIA’s Business Plan for 1994-95.

The Australian National Audit Office also conducted a preliminary study, and decided to proceed with an efficiency audit of government information activities. The audit will be completed during the 1994-95 financial year.

OGIA appeared before the Senate Standing Committee on Community Affairs in an inquiry into the tendering and management of the Disability Reform Package consultancy.

95

Department o f Administrative Services A n nual Report 1993-94

Program 4 — Corporate Management Organisation

C o rp o ra te P o lic y & G o v e rn m e n t R e la tio n s General Manager Graham Semmens a/g

C o rp o ra te D e v e lo p m e n t General Manager Richard Lansdowne

C o r p o r a te R e s o u r c e s General Manager Trevor Barrell

P e r f o r m a n c e R e v ie w & Audit General Manager Peter Grills

Objective

The objective of the Corporate Management Program is to provide the following services:

• high level executive support and policy advice to the Minister and executive management of the department;

• resource management guidance to the department;

• management of key corporate projects;

• maintenance of high standards of DAS behaviour, performance and accountability to DAS stakeholders;

• support services for investigation of complaints concerning purchasing services; and

• a means for formal recognition of Australian citizens.

Description of functions

The program comprises a number of Budget funded organisational units:

• Departmental Executive

• Corporate Resources — business planning, budgets, financial analysis and reporting, accounting policy and corporate property management;

• Corporate Policy & Government Relations — ministerial and cabinet liaison, legal and environmental support, corporate policy advice and the Genetic Manipulation Advisory Committee (GMAC);

• Corporate Development; and

• Performance Review & Audit — audit services; fraud control unit; performance evaluation; and policy and coordination.

96

Program 4 — Corporate Management

Financial and staffing resources summary

P r o g r a m 4 — C o r p o r a t e M a n a g e m e n t

1992-93

Actual $<'000)

1993-94

B udget ST O O D )

1993-94

Actual ST000)

BUDGETARY (CASH) BASIS Program c o sts 26780 77106 41664

(excluding running co sts) Running c o sts 23501 35375 30183

Total a p p ro p riatio n s 50281 112481 71847

Less a d ju stm e n ts 7 827 14381 348

Total outlays 42454 98100 71499

Total rev en u e 595 7 381 7313

S T A F F I N G S taff y ears (actual) 233 247 221

ACCRUAL BASIS

1993-94 Actual SOOO

Total o peratin g e x p e n se s 34385

Total o p eratin g re v e n u e s 1181

N et co st of services 33204

Total rev en u e from G overnm ent 34 741

O perating resu lt 1537

O perating re su lt an d ex traordin ary item s 1653

Total a s s e ts 3881

Total liabilities 5863

A d m inistered e x p e n se s 3109

A d m in istered re v e n u e s 4865

A dm inistered a s s e ts 795

A dm inistered liabilities 532

97

Department o f Administrative Services A n nual Report 1993—94

Corporate Resources

Organisation

General Manager Trevor Barrell

Employee Relations & Management Bill Gray a/g

Human Resource Development & Deployment W endy Stow

Portfolio Finance & Corporate Planning Laurie W alsh a /g

Objective

The objective of Corporate Resources is to provide the following services:

• high level executive support and policy advice to the Minister and executive management of the department on strategic planning and management of the department’s human and financial resources;

• resource management guidance to the department;

• management of key coiporate projects in relation to strategic planning and corporate human and financial resource management; and

• maintenance of high corporate standards of DAS behaviour, performance and accountability to DAS stakeholders.

Description of functions

Corporate Resources provides a corporate focus for strategic planning and management of the department’s human and financial resources. Major responsibilities are itemised within three Budget funded organisational units:

• Portfolio Finance & Corporate Planning — budgeting and accounting policy and procedures, financial reporting & analysis, corporate property management, Corporate Plan & business planning processes;

• Employee Relations & Management — industrial relations, workplace bargaining, social justice programs, human resource management; and

• Human Resource Development & Deployment — human resource development, corporate development programs, management of surplus staff within the department.

Matters associated with the transition from traditional public sector arrangements to a commercial operation covered within Corporate Resources include:

• managing transitional funds associated with property that is excess or unsuitable for commercial requirements; and

• managing the surplus staff of DAS under a Staffing Adjustment Program, which supports the retraining, redeployment and interim public interest work pending redeployment of staff surplus to commercial requirements.

Strategies

Strategies underlying the activities used to achieve the objectives:

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Program 4 — Corporate Management

• coordinate the development of a DAS-wide enterprise bargaining framework and assist in the development of individual subprogram agreements and their implementation. This in turn supports the department’s pursuit of improved productivity and financial performance;

• develop and promulgate corporate standards, policies and guidelines on human resource issues, eg competency based training, performance appraisal/pay, EEO action plan, industrial relations policies, management of surplus staff, human resource development;

• facilitate implementation of a competency based approach to training and development across the whole department;

• ensure that any DAS staff identified as surplus have every opportunity for access to vacant positions;

• achieve Business Plan targets within budget;

• foster work satisfaction and commitment in Corporate Resources staff and provide career development opportunities suited to individual and organisational needs;

• contribute to and develop initiatives and implement appropriate policies for the achievement of the Government’s and department’s financial objectives; and

• review and improve divisional financial operations.

Performance indicators • Improved customer understanding of the role and range of services offered by the three branches of Corporate Resources.

• Level of satisfaction of Minister, Secretary and other stakeholders.

• Achievement of budget.

• Improvement in staff work environment satisfaction.

Performance outcome

Organisational changes mid-year resulted in the creation of Corporate Resources and involved some elements of the previous Corporate Centre then becoming part of the new Corporate Resources. Similarly, the restructuring saw the division of the previous financial function into discrete components for Budget-funded subprograms and commercial units. With this as

background, some program objectives were not achieved to the same depth as would have occurred without organisational changes. Corporate Resources, as a new division, is in the process of formulating its performance indicators as part of the business planning process and

will be in a position to report against these in the next year’s Annual Report.

During the year, Corporate Resources was strengthened to maintain the standards of DAS behaviour, performance and accountability to DAS stakeholders. The division provides a small core of executive support for the Secretary and to all DAS operating units to meet their

objectives, particularly in relation to human resource issues. Corporate activities emphasise the particular contribution made towards DAS ‘being a good employer’. Major projects included:

• the development to draft stage of workplace bargaining agreements for several DAS businesses, with finalisation expected early 1994-95.

• the development of a draft workplace bargaining agreement for all Budget funded subprograms.

• continued consultations with staff associations on the transfer of surplus staff from businesses to the Staffing Adjustment Program, together with joint management/union involvement in the review of handling surplus staff within DAS.

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Department o f Administrative Services A n n u a l Report 1993—94

With an emphasis on customer focus, a series of workshops was held with customers to determine their knowledge of services that Corporate Resources provide, their views on the delivery of those services, and to identify the services they require (if these differed). From these workshops, Customer Value Models and Key Result Areas were drawn up for implementation through the business plan processes. Customers’ views on delivery of services are updated every six months, as are staff views on service quality issues for the customers.

The assessment of Senior Officers Grades (SOGs) A, B and C against the DAS core competency model for middle managers was completed, along with an evaluation of this work. The Queensland University of Technology has designed a Graduate Certificate for DAS which takes into account the people management and communication skills required under the

model. A process to recognise prior learning has been adopted for Graduate Administrative Assistants (GAAs) and a number of ASOs 1 to 5 in DAS in order for them to participate in the APS core competency programs. A competency kit for staff and managers in DAS which gives information on competency-based training for staff from ASO 1 to SOG A is being prepared.

DAS has participated in the Steering Committee for Development of Competencies for General Services Officers across the APS. The conduct of focus groups and pilot workshops has resulted in the development of a core competency model and curriculum for staff in this category. DAS continues to participate in the JAPSTC Subcommittee on functional competencies and the Steering Committee for Development of Customer Service

Competencies.

The division coordinated the performance appraisal process for DAS SES for the 1992-93 financial year and for Senior Officers for the period 1 April to 31 October 1993. Performance pay was delivered to both groups during the year.

The division also responded to the review of performance appraisal and pay conducted jointly by the Senate Standing Committee on Finance and Public Administration and the Australian National Audit Office.

Social justice Corporate Resources has a central role in social justice issues affecting the department. With responsibility for formulating departmental policy on both EEO and OH&S, the division is concerned to ensure that DAS staff arc aware of the issues and are able to work in a non-biased and safe environment.

Implementation of specific EEO projects nominated by DAS businesses and subprograms as part of the 1992-94 EEO Plan arc reaching finalisation. Many projects are on-going activities related to EEO training and raising the awareness of EEO issues generally.

The Aboriginal and Torres Strait Islander Recruitment and Career Development Plan has been developed during the year, and is now being implemented. As part of this plan, a Cross Cultural Awareness Program, developed by the Centre for Aboriginal and Islander Studies in the Northern

Territory, has been piloted in the Northern Territory. Following its success, it is intended to extend this initiative DAS-wide, tailoring it as necessary to suit differing regional requirements.

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Program 4 — Corporate Management

Corporate Policy & Government Relations

Organisation

General Manager Graham Semmens a/g

Government & Legal Jo h n Gavin

Corporate Policy Paul Ferrari a/g

Corporate Communications Fay Stym an

Awards & National Symbols Lembit Suur a /g

Description of functions

The division provides high level executive support, policy and legal advice and communications services to the Minister, the Secretary and the DAS Executive, and to a range of internal and external customers.

Its diverse responsibilities are grouped into four units whose functions are:

• Government & Legal Branch — production of Annual Report, legal advice, social justice, the processing of Cabinet, Ministerial and Parliamentary documents and general coordination;

• Corporate Policy Branch — development of policy advice on corporate DAS-wide issues, provision of secretariat services, and departmental coordination on special projects;

• Corporate Communications Branch— internal and external communications, media liaison; and

• Awards and National Symbols — advice on Australian and foreign honours and awards, Australian national symbols and prerogative matters, support to the Secretary in his ex officio involvement on committees assessing honours nominations.

At the start of the 1993-94 financial year the division consisted of only the Corporate Policy Branch and the Legal and Accountability Branch. In October 1993 the Corporate Communications Branch was added, and the Awards and National Symbols Branch was added in January 1994.

Centenary House Leasing Inquiry During 1993-94, the Centenary House Leasing Inquiry was established. Because the Centenary House Leasing Inquiry involved DAS, an arrangement was established whereby DAS had no formal role in the inquiry itself and in the expenditure. However, in its normal role of servicing Commissions of Inquiry, DAS is performing an accounts payable function out of special appropriation.

The aim of the division is to satisfy customers and stakeholders by utilising a range of strategies

• providing high quality, coordinated and timely advice to customers, through personal consultation whenever this is possible;

• serving as an effective bridge between the department and the Minister and strengthening relations between the Minister and his office, and the department;

Strategies

including:

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Department o f Administrative Services A nnual Report 1993-94

• promoting DAS’s image and raising DAS’s profile among staff, customers and stakeholders, subject to the DAS-wide corporate planning process;

• building staff awareness of other DAS businesses and divisions and the value of working as a federation;

• communicating and disseminating information throughout the department;

• providing advice to divisions and business units to assist them in meeting their corporate obligations, including administrative and legal obligations;

• providing high quality secretariat services to the Genetic Manipulation Advisory Committee (GMAC) and other committees and department bodies;

• ensuring that staff are capable and confident of their capacity to meet customer needs; and

• building and maintaining formal and informal liaison networks.

Performance outcomes

Timeliness and quality The particular requirements of the division’s principal customers focused performance on timeliness and quality. Two new Ministers, a new Parliamentary Secretary and a new Secretary, were provided with high quality briefings covering the functions of the department and canvassing

significant issues.

Strategic policy advice particularly where coordination was required across more than one DAS business or division was provided to the Minister and the DAS Executive to meet their needs in Cabinet, at Parliamentary Committees and in their deliberations on departmental issues. This included the preparation of a submission to the Joint Committee on Public Accounts Inquiry into

Commercialisation for which those involved were awarded a DAS Excellence Award.

The division’s $1 million energy management program was completed within very tight time frames and has resulted in DAS being considered a leader amongst departments in meeting the Government’s energy objectives. Secretariat services provided to the DAS Environment Committee and its predecessors, to the Genetic Manipulation Advisory Committee and the Purchasing Complaints Commissioner have been acknowledged by those customers for the high

standard of support provided.

Projects undertaken by the division which received special acknowledgment include the production of DAS PAK (an information package about DAS businesses and services), stage one of the review of the Australian system of Honours and Awards, and the transfer of relevant Ministerial, Cabinet and Parliamentary services to the Department of Communication and the Arts following the transfer of the Australian Cultural Development Office to that department.

Strengthening relations with the Minister mid staff Ministerial changes during the year generated a special emphasis on the need to develop close and effective working relationships with Ministers, the Parliamentary Secretary and their offices, providing them with high level policy advice and briefings as well as procedural and processing support. This included the review of the department’s Corporate Obligations Tracking System (COTS), a system for registering, tracking and reporting on correspondence and other matters handled by the department which incur a corporate obligation.

Promotion (if DAS among staff and customers The Corporate Communications Branch worked to obtain positive, informative media coverage, as well as responding to breaking issues. One of the year’s highlights was the national media coverage obtained for Defence-related awards in the lead up to Anzac Day 1994.

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Program 4 — Corporate Management

The department’s capacity to deal effectively with the media was enhanced by the development of corporate media guidelines and a crisis communications plan, implementation of stage one of a corporate media strategy and a program of staff media training.

In the department’s overall environment of change, internal communications continued to be a key focus. Communications strategies were developed and implemented for the 1992-93 and 1993-94 Federal Budgets to ensure staff were accurately and rapidly briefed. The main internal publication, DASNEWS, became a monthly (instead of bimonthly) full colour magazine with

special features on regional operations.

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Department o f Administrative Services A n nual Report 1993-94

Corporate Development

General Manager Richard Lansdowne

Customer Focus & Quality Management

Regional Coordination

Description of functions

Corporate Development comprises two Budget-funded units:

• Customer Focus & Quality Management — services to support the introduction and improvement of customer focus skills and quality service across DAS; and

• Regional Coordination — the Executive and Minister with high level management, marketing and communication assistance. To facilitate a direct link between the regions and the Executive, each Executive General Manager works closely with nominated regions and their regional coordinators. However, for financial management purposes, all regional coordination functions are brought together in Corporate Development.

Strategies The key strategy for Customer Focus is to complete the transition of DAS to a totally customer focused organisation by providing tailored customer focus services, sharing best practice and providing strategic change management advice.

The key strategy for Regional Coordination is facilitating customer relationships and sharing marketing information and best practices with DAS units in the regions.

Performance indicators The effectiveness of the Customer Focus & Quality Management program is assessed in terms of the satisfaction level of customers and changes in individual business unit environments. Progress is measured against achievements of the performance indicators measured qualitatively and

quantitatively in terms of providing services that satisfy the expectations and values of customers.

The effectiveness of Regional Coordination is assessed in terms of customer satisfaction with DAS services, and the effective implementation in regions of corporate initiatives.

Performance outcome

The successful impact of the Customer Focus Task Force on implementing a customer driven culture across DAS was recognised through a DAS Excellence Award in change management. The Customer Focus program was undertaken in eight of the department’s operating units, both

commercial and Budget-funded.

Assistance was provided in:

undertaking customer and employee research (with an emphasis on the underlying factors involved in quality customer service); and

in developing a service strategy based on the research findings, and commencing the implementation process with each unit.

104

Program 4 — Corporate Management

The program has resulted in substantial increases in value delivered for DAS customers.

Implementation of the service strategy is carried out by the individual units. Assistance was also provided in revising the DAS Business Planning Guidelines to adopt a customer focused approach. A scries of Customer Focus Network meetings was established to share best practice

with DAS units.

Regional Coordination played a major role in developing integrated solutions to meet customers’ needs. They effectively supported corporate initiatives in communications and industrial relations. In addition, they facilitated sharing of information and best practice between Commonwealth agencies.

Outlook The Customer Focus Task Force has had a significant impact on implementing a customer driven culture across DAS. In 1994-95 the structured customer focus/quality service change process will

be completed with the remaining DAS operating units.

To ensure that a customer focused culture is firmly embedded across all parts of DAS, further support with implementation will be provided to businesses. New services will also be developed to meet changing customer needs to support new directions.

The Regional Coordination function will continue to play a vital role in bringing all the elements of DAS together to meet the needs of customers, and to meet government’s broader objectives.

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Department o f Administrative Services A n n u a l Report 1993-94

Performance Review & Audit

General Manager Peter Grills

Audit Services Coordinator A n n e H azell a /g

Policy & Coordination Director S te v e M itchell

Fraud Control Director H o w ard M urray

Performance Evaluation Director R o g er H arris

Objectives To provide high level executive support and policy advice to the Minister and executive management of the department.

To provide resource management guidance to the department.

To maintain high standards of DAS behaviour, performance and accountability to DAS stakeholders.

In the Performance Review & Audit (PR&A) 1993-94 Business Plan a number of more specific objectives were set. These include to:

• deliver the products and services customers need;

• develop staff so that they have the skills and confidence to achieve our service strategy; and

• achieve the work program as approved by the departmental Audit Committee.

Description of functions

The branch has four distinct functions.

• The Audit Services Section undertakes the internal audit of all DAS operations both individually and corporately. There are three account managers, each of whom is responsible for meeting the audit needs of a discrete group of customers.

• The Fraud Control Unit carries out investigations of alleged frauds and management irregularities and provides education, advice and support to operational areas of DAS in fulfilling their responsibilities in this regard.

• The Performance Evaluation Section manages the department’s responsibility to Government to develop and implement annual performance evaluations.

• In addition to providing fundamental and strategic management support to other branch activities, the Policy and Coordination Section:

- manages the department’s relationship with the Australian National Audit Office (ANAO) and the Joint Committee of Public Accounts (JCPA);

- provides a secretariat to the Departmental Audit Committee (DAC);

- tests and develops new products and services for the branch; and

- provides policy advice on departmental issues affecting the branch.

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Program 4 — Corporate Management

Strategies, indicators and outcomes

In relation to the specific objectives set in the PR&A 1993-94 Business Plan the following strategics were established. ,

To deliver the products and services customers need

St r a t e g ie s

• Gain a better understanding of customers’ needs and values;

• implement an Account Manager structure to enable PR&A to deliver the range of products needed by the customers;

• establish or improve systems to deliver the products and services customers need; and

• develop customer focus ability.

I n d ic a t o r

Customer satisfaction:

• Identified customers give PR&A division at least an 80 per cent satisfaction rating.

O u t c o m e

• Audit customers provided feedback to the branch in the form of Customer Satisfaction Surveys which are completed at the conclusion o f each audit. At the end of the 1993-94 financial year an overall 84 per cent satisfaction rating was achieved.

• A number o f Customer Focus Groups were held in June 1994 which helped to identify customers’ views of PR&A performance. Feedback from these sessions has indicated that a satisfactory level of service is being provided.

Develop staff so that Otey have die skills m id confidence to achieve the service strategy.

St r a t e g ie s

• Translate the components of the Service Strategy into achievable outcomes,

• ensure staff have the right mix of skills to provide customers with the products and services that meet their needs,

• attract and retain staff with the right mix of skills to provide customers with the products and services that meet their needs, and

• improve systems and support for staff to enhance the division’s ability to add value for customers.

I n d ic a t o r

Internal value chain:

• Staff rate their work satisfaction and confidence in the branch’s ability to meet its objectives as being at least 80 per cent by the end of the 1993-94 financial year as measured by a staff satisfaction survey.

O u t c o m e

• Due to the high level of staff turnover in the branch during the financial year, it was agreed that this performance indicator would not be an effective measure as the staffing situation had not stabilised and individuals had insufficient time to settle into their respective positions.

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Department o f Administrative Services A n n u a l Report 1993-94

• Employee Focus Groups were used in June 1994 to identify employee perceptions of the work being undertaken by the branch and their role in the branch operations.

Achieve the ivork program as approved by tite departmental A u dit Committee.

St r a t e g y

• Develop and deliver a work program incorporating the Audit philosophy and risk management initiatives approved by the DAC.

I n d ic a t o r

Delivery o f outcomes

• By the end of the 1993-94 financial year the DAC rates PR&A work achievements for 1993-94 as being substantially improved.

O u t c o m e

• Feedback from DAC members via an assessment form issued at the June DAC meeting indicates a high level of satisfaction with the audit services being provided and the quality of agenda papers presented to committee meetings.

108

Program 5 — Commonwealth Grants Commission

Organisation

Chairman— C.R. Rye M em ber— W.R Lane M em ber— R.D. Barnes Member — F. Argy

Secretary Bob S earle

Expenditure Analysis Branch M alcolm Nicholas

Revenue, Budgets & IT Branch C atherine Hull

Expenditure A Expenditure B Expenditure C

J o h n B arker D e rm o t D oherty J o h n H e n d e rs o n

Revenue IT Budget

Analysis M artin L ange Analysis

Phil B ubb Florian Falez

Management Services and Information Control T revor H ughes

Objective To give reliable and objective advice to government to facilitate decisions about the distribution of Commonwealth general revenue grants to the States and Territories, and about other matters referred to the commission by the Minister.

Description of functions The Commonwealth Grants Commission is an independent statutory authority which operates under the Commonwealth Grants Commission Act 1973. It provides advice, as requested by the

Minister, on:

• the allocation of general revenue assistance among the States, the Northern Territory and the Australian Capital Territory;

• the distribution of general revenue funds to the States and Territories for local government purposes; and

• assistance for the Territories of the Cocos (Keeling) Islands and Christmas Island.

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Department o f Administrative Services A n n u a l Report 1993-94

Strategies To achieve its objective, the commission has adopted the following strategies:

• to explain clearly the objectives of inquiries;

• to provide adequate opportunities for parties to present their views;

• to foster a wider understanding among the parties and the general community of the principles guiding the commission;

• to promote the capacity of staff to perform effectively;

• to undertake professional, technical analyses of matters relevant to inquiries;

• to foster the exercise of sound and impartial judgement; and

• to ensure that reports address the issues fairly, comprehensively and clearly.

Financial and staffing resources summary

P r o g r a m 5 — C o m m o n w e a l t h G r a n ts C o m m is s io n 1992-93 Actual $('000)

1993-94 Budget SCOTO)

1993-94 Actual SC000)

BUDGETARY (CASH) BASIS Program c o sts 0 0 0

(excluding running co sts) Running c o sts 4277 3950 3695

Total ap p ro p riatio n s 4277 3950 3695

Less a d ju stm e n ts 2 5 6

Total outlays 4275 3945 3689

Total rev en u e 2 5 6

STAFFING S taff y ears (actual) 54 50 47

ACCRUAL BASIS

1993-94 Actual $O00

Total o p eratin g e x p e n se s 4 341

Total o p eratin g rev en u es 11

N et c o st of services 4330

Total rev en u e from G overnm ent 4335

O perating re su lt 5

O perating re su lt and ex traordin ary item s 5

Total a s s e ts 486

Total liabilities 976

A d m in istered e x p e n se s 0

A d m in istered re v e n u e s 0

A d m inistered a s s e ts 0

A dm inistered liabilities 0

( 110

Program 5 — Commonwealth Grants Commission

Reports to the Minister

The commission reported on the following activities during 1993-94.

• The report on the General Revenue Grant Relativities 1994 Update of the per capita relativities used to distribute general revenue and hospital funding grants among the States and Territories was completed in February 1994.

• The inquiry into the extent to which the government has fulfilled a commitment made at the United Nations to raise the standards of living and level of services of the Cocos Malay community on the Cocos (Keeling) Islands to Australian mainland standards by 1994 was presented to the Minister on 30 July 1993. However, the commission subsequently received

revised data which affected the major findings of the published report and, on 25 October, presented the Minister with a supplementary report based on the revised data.

Performance indicators

Since the commission is an advisory body, the assessment of its performance is, in the main, based on subjective indicators. These include:

• the timeliness of presentation of reports;

• the extent to which parties and the public generally were given opportunities to place their views before the commission;

• the technical competence of the analytical work underlying and supporting the reports;

• the degree of acceptance of the reports by Commonwealth, State and Territory governments; and

• its success in operating within its resource budget.

Performance outcome The outcomes in relation to the performance indicators were as follows.

Timeliness

The Report on 1994 Update was required a month earlier than previous years’ Updates due to the changes in the Government’s budgetary timetable. The report was produced in accordance with this earlier reporting date and with the other requirements of the terms of reference. The relativities were adopted at the April 1994 Premiers’ Conference.

The commission’s main report on the Cocos Inquiry was also produced in accordance with the timing requirements of the reference. The supplementary report was finalised in a timely manner which allowed the Department of Environment, Sport and Territories to prepare its policy options within the new budget timetable.

Consultation The strategy of canvassing a wide range of views and options pertaining to matters under reference was fully implemented in each inquiry. In particular, the commission provided the States and Territories with a discussion paper outlining the new issues which had arisen since the 1993 Review and which had to be decided in the 1994 Update. It also made several other

requests for views from the Commonwealth, States and Territories. A total of 28 submissions were received in response to these initiatives.

Ill

Department o f Administrative Services A n nual Report 1993-94

Technical competence

Since the completion of the 1994 Update, there has been considerable feedback from the parties commenting favourably on the high quality of the complex, technical analysis contained in the report. The commission has also received many favourable comments from States and media representatives on the improvements in the ‘readability’ of the report.

However, the Update process indicated that some serious errors were made in the assessments for the 1993 Review. In response to this finding, the commission took steps to see that similar errors did not occur in the assessments for the 1994 Update. It reviewed and, where necessary, amended its procedures to ensure that the highest possible levels of accuracy will be attained in the future.

Acceptability o f findings

The conclusions of the 1994 Update have not been criticised on the grounds of technical competency and the method used to determine the relativities is, with minor variations, to be used in future years.

The relativities contained in the report were adopted by the Premiers’ Conference to distribute the Financial Assistance and Hospital Funding Grants among the States and Territories in 1994-95. In the statement following that conference, the Commonwealth acknowledged the vital and integral role of the commission in achieving horizontal fiscal equalisation among State and Territory governments in Australia.

The findings of the reports of the 1993 Cocos (Keeling) Islands inquiry were generally accepted by the parties to that inquiry and have been an important input into the preparation of policies for the future development of the Islands.

Adherence to budget

The commission conducted its inquiries within its resource budget for the year.

Social Justice

The principle of fiscal equalisation outlined in Section 5 of the Commonwealth Grants Commission Act 1973 is designed to ensure that each State and Territory government has the financial capacity to provide its residents with the average standard of government services, provided it makes an average revenue raising effort and operates at the average level of efficiency. To the extent that the commission’s findings are accepted, its activities complement the government’s social justice policy in that they provide a basis for all residents of Australia to enjoy equality of access to State and Territory services. In addition, social justice is the basis of the government’s commitment to the Cocos Malay people, and it is the commission’s role to ensure that they are treated similarly to mainland Australians.

The development of the commission’s social justice strategies will benefit from the experience of one of its senior officers who spent 1993-94 on an Aboriginal and Torres Strait Islander Commission middle management course and undertook work placements in that Commission and

with the Cocos (Keeling) Islands Shire Council.

112

Program 7 — Commission of Inquiry into ASIS

Royal commissions and inquiries Under the Administrative Arrangements Order the Department of Administrative Services is responsible for providing administrative support for Royal Commissions and certain other inquiries. In 1993-94, these comprised the Commission of Inquiry into ASIS and the Centenary House Leasing Inquiry.

Commission c f Inquiry into Ausbxdian Secret Intelligence Service

The Hon. G J Samuels AC QC and Mr Μ H Codd AC were appointed on 15 March 1994 to inquire into and to report, by 31 December 1994, on matters relating to the Australian Secret Intelligence Service.

Financial and staffing resources summary P r o g r a m 1 — B u s i n e s s S e r v i c e s

1 9 9 2 - 9 3

A c t u a l

$(’000)

1 9 9 3 - 9 4

B u d g e t

$(’000)

1 9 9 3 - 9 4

A c t u a l

$(’000)

B U D G E T A R Y ( C A S H ) B A S I S

Program c o sts 0 0 0

(excluding running co sts) Running c o sts 0 1673 1396

Total ap p ro p riatio n s 0 1673 1396

Less ad ju stm en ts 0 0 0

Total outlays 0 1673 1396

Total rev en u e 0 0 0

Accrual basis The Section 50 Accrual Reporting results for Program 7 are incorporated in Program 4.

Appendix 1 Appendix 2

Appendix 3 Appendix 4 Appendix 5

Appendix 6 Appendix 7 Appendix 8 Appendix 9

Appendix 10 Appendix 11

Appendixes Index to government reporting requirements DAS staff a) Permanent staff — DAS aggregate b) Temporary staff — DAS aggregate c) By classification and State or Territory d) By program, State and Territory (expressed as

full-time equivalents) — Program 1 Business Services e) By program, State and Territory (expressed as full-time equivalents) — Program 2 Government

Services

f) By program, State and Territory (expressed as full-time equivalents) — Program 3 Purchasing & Information g) By program, State and Territory (expressed as

full-time equivalents) — Program 4 Corporate Management h) By program, State and Territory (expressed as full-time equivalents) — Program 5

Commonwealth Grants Commission Senior Executive Staff Reconciliation of subprograms and appropriation elements Equal Employment Opportunity EEO statistics by occupation

Social Justice Industrial Democracy Advertising & market research Internal and external scrutiny

Freedom Of Information Act 1982 - Section 8 Statement Freedom of Information contact officers and access points Administrative law statistics Fraud control Summary of Auditor-General’s reports Submissions to inquiries by Parliamentary Committees Occupational Health & Safety Glossary of acronyms

115 116 116 116 117

118

119

119

120

120 121 122 123 126 127 129 132 133 133 150 151 153 154 155 156 160

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Department o f Administrative Services A n nual Report 1993-94

Appendix 2

DAS staff as at 30 June 1994

a) Permanent staff — DAS aggregate

Cent. Office NSW Victoria QLd W A 5/1

STAFF M f M f M F M F M F M F

Full-time 855 5221354 205 1253 225669 89 365 74 436 64

Part-tim e (Full Time Equiv) 7 32 2 4 1 3 1 5 1 2 1 5

Total Paid Staff 862 5541356 209 1254 228 670 94 366 76437 69

Total Unpaid Inops 12 25 25 84 5 3 4 7 1 1 9

Tasmania NT ACT Total

STAFF M F M F M F Male Female Staff

Full-time 124 28 169 41 965 304 6190 1552 7742

Part-tim e (FTE) 1 0 1 0 1 8 16 59 75

Total Paid Staff 125 28 170 41 966 312 6206 1611 7817

Total U npaid Inops 0 0 0 0 2 6 58 112

b) Temporary staff — DAS aggregate STAFF CO NSW Victoria QLd W A SA

M F M F M F M F M F M F

Full-time 69 79 85 41 83 19 15 14 70 10 31

Part-tim e (FTE) 3 11 1 2 15 0 0 0 0 02

Total Paid Staff 72 90 86 43 84 24 15 14 70 10 33

Total U npaid Inops 0 0 01 0 0 00 0 0 0 0

STAFF Tasmania NT ACT Total

M F M F M F M F Staff

Full-time 14 3 43 8 29 22 411 197 608

Part-tim e (FTE) 1 2 1 1 25 9 28 37

Total Paid Staff 15 5 44 9 31 27 420 225 645

Total U npaid Inops 0 0 0 0 0 0 0 1 1

116

Appendix 2 DAS sta ff statistics

c) By classification and State or Territory (expressed as full-time equivalents) Cent. Office N SW Victoria Queensland W A

j Classification M F M F M F M F M F

Secretary 1 0 0 0 0 0 0 0 0 0

1 S E S

57 Ϊ 2 | 6 0 6 0 2 0 2 0

Sen. O fficers/A SO s 523 510 271 173 275 180 162 99 98 75

IT Officers 47 7 3 1 5 0 2 0 2 0

Professional Officers 37 9 161 24 168 17 60 1 63 5

! Technical Officers 31 15 169 25 143 15 88 0 47 1

Valuers 6 0 301 26 3 28 1 9 0

Public Affairs Officers 9 9 0 0 0 0 0 0 0 0

| Research Officers 3 3 0 0 0 00 0 0 0

Stores 4 0 11 0 10 1 3 0 8 0

Transport Officers 24 23 7 1 5 2 2 1 2 1

General S erv ice Officers 183 54 729 27 664 33 295 4 190 3

Registered N urse 1 0 1 0 00 0 0 0 0 0

A p pren tice/O ther 10 0 57 0 36 1 45 0 15 1

Actual S taff N um bers 935 643 1444 252 1339 252 687 106 436 86

Tasmania NT ACT Total

Classification M F M F M F M F M F Staff

Secretary 0 0 0 0 0 0 0 0 1 0 1

SES 1 0 Π Γ 0 0 0 10 0 61 12 96

Sen. O fficers/ASOs 106 53 56 25 44 46 264 279 1800 1440 3240

IT Officers 1 0 0 0 0 0 56 10 116 18 134

Professional O fficers 57 6 15 1 17 0 106 21 684 84 768

Technical Officers 58 3 12 4 35 1 146 4 729 68 797

Valuers 17 0 6 1 10 0 11 2 143 8 151

Public Affairs Officers — o 1 0 0 0 00 0 0 9 9 18

Research Officers 0 0 0 0 0 0 4 4 7 7 14

Stores 5 0 0 0 0~ o 1 7 0 48 1 49

Transport Officers 4 0 0 1 0 0 6 1 50 30 80

General S erv ice Officers 188 9 44 1 107 1 359 15 2759 147 2906

Registered N urse 1 0 0 00 0 0 0 ~ Ύ 0 1 1

A pprentice/O ther 5 0 6 0 3 0 27 3 204 5 209

Actual Staff Num bers*442 71 139 33 216 48 996 3396634 1830 8464

Actual Staff Numbers: All paid staff em ployed under th e Public Service Act a s a t 30 J u n e 1994. Part tim e staff a re ex p ressed a s full-tim e eq uivalen ts (i.e. som eon e w ho w orks 4 d ays a w eek eq uals 0.8).

117

Department o f Administrative Services A nnual Report 1993-94

dj B y program, State and Territory (expressed as full-time equivalents) — Program 1 B u sin ess Services

Cent. Office N S W Victoria Queensland W A

Program M F M F M F M F M F

A sse t S erv ices 28 12 796 45 609 48 321 21 214 17

ACS 15 5 121 6 109 15 61 3 50 6

AGAL 9 10 54 52 29 20 10 0 19 6

AGPS 349 199 5 3 62 23 8 6 7 3

APG 13 19 55 32 34 23 32 13 18 9

AUSLIG 20 13 15 4 46 4 30 1 13 1

AVO 13 4 32 6 30 6 31 7 9 4

DAS Distribution 14 8 51 12 394 19 1 15 1

DASFLEET 48 31 52 12 43 15 21 13 106

DAS Interiors 3 3 7 3 5 4 6 2 4 0

DAS R em ovals 7 9 16 7 11 11 14 6 5 3

B u sin ess S up po rt 14 9 0 0 0 0 0 0 0 0

S u p p o rt S erv ices 4 7 3218 25 22 15 12 11 12

P roperty R ation alisatio n 0 1 0 0 00 0 00 0

Total Program 1 537 330 1236 200 1042 195571 85 375 68

■M Tasmania NT ACT Total

Program M F M F M F M F M ale Female Staff

A s s e t S erv ices 164 8 37 3 123 17 346 31 2639 202 2841

ACS 46 2 10 1 25 1 80 18 520 57 577

AGAL 20 11 9 7 0 0 00 141 106 247

AGPS 5 6 6 2 0 0 1 3 443 244 687

APG 16 6 15 4 10 3 32 21 226 130 356

AUSLIG 9 0 1 0 12 2 116 14 262 40 302

AVO 19 4 7 2 10 4 11 7 162 44 206

DAS D istribution 24 0 7 0 0 0 54 io 223 36 259

DASFLEET 32 3 8 2 8 2 5316 275 100 375

DAS Interiors 6 0 0 0 0 0 6 2 37 15 52

DAS Rem ovals 6 1 2 0 1 4 9 6 73 46 119

B u sin ess S up po rt 1 0 0 0 0 0 0 0 15 9 24

S u p p o rt S erv ices 17 11 10 4 3 9 154 156 269 252 521

P roperty R ation alisatio n 0 0 00 0 0 0 0 0 1 1

Total Program 1 365 52 112 25 192 42 862 284 5285 1282 6567

118

Appendix 2 DAS sta ff statistics

e) By program, State and Territory (expressed as full-time equivalents) — Program 2 Government Services

Cent. Office N S W Victoria Queensland W A

Program M F M F M F M F M F

M in/Parl S erv ices 43 40 4 3 4 3 5 1 2 2

IPS 20 9 2 2 0 0 1 0 2 1

AEM 24 18 28 11 27 11 13 9 4 5

OPG 62 14 0 0 0 0 0 0 0 0

COMCAR 33 30 € 3 49 10 21 2 16 1

Total Program 2 182 111 80 19 80 24 40 12 24 9

Tasmania NT ACT Total

Program M F M F M F M F M F Staff

M in/Parl S erv ices 2 2 0 0 0 0 0 0 61 51 112

IPS 0 0 0 0 0 0 1 0 26 12 38

i AEM 9 3 8 1 4 1 32 27 149 86 235

OPG 0 0 a 0 0 0 0 0 62 14 76

COMCAR 18 1 2 0 0 0 49 3 234 50 284

Total Program 2 29 6 10 1 4 1 82 30 532 213 745

f) By program, State and Territory (expressed as full-time equivalents) — Program 3 Purchasing & Information

Cent. Office N S W Victoria Queensland W A

Program M F M F M F M F M F

P urchasin g 72 64 15 7 72 6 11 3 4 5

0GIA 12 8 2 2 1 20 0 0 0

Total Program 3 84 72 17 9 23 8 11 3 4 5

SA Tasmania NT ACT Total

Program M F M F M F M F M F Staff

P urchasin g 8 5 4 3 4 2 8 10 148 105 253

0GIA 0 0 0 0 0 0 0 0 15 12 27

Total Program 3 8 5 4 3 4 2 8 10 163 117 280

119

Department o f Administrative Services A nnual Report 1993-94

g) B y program, State and Territory (expressed as full-time equivalents) — Program 4 Corporate M anagem ent

Cent. Office N SW Victoria Queensland WA

Program M F M F M F M F M F

Total C orpo rate M a n a g e m e n t 100 106 109 25 187 23 74 6 32 4

SA Tasmania NT ACT Total Total Total

Program M F M F M F M F M F Staff

Total C orporate M a n a g e m e n t 40 8 13 4 16 3 40 15 611 193 804

Cent. Office N SW Victoria Queensland W A

Program M F M F M F M F M F

Staffing A djustm ent P rogram 1 0 107 21 186 22 69 5 31 3

SA Tasmania NT ACT Total

Program M M F M f M f M Staff

Staffing A djustm ent Program 40 6 12 3 13 2 39 14 498 76 574

h) By program, State and Territory (expressed as full-time equivalents) — Program 5 Commonwealth Grants Commission

Cent. Office /V SW Victoria Queensland

Program M M F M F M F M f

C om m onw ealth Grants Com mission 27 19 0 0 0 0 0 0 00

SA Tasmania NT ACT Total

Program M F M F M f M F M f Staff

C om m onw ealth Grants Com mission 0 0 0 0 0 0 0 0 27 19 46

120

Appendix 3 Senior Executive S ta ff

Senior Executive Staff nominally as at 30 June 1994

Appendix 3

Does not include non SES officers on higher duties in SES positions. These SES officers are counted at their nominal position not their acting position.

Gains L o s s e s

M a le Fem ale M a le Fem ale M a le Fem ale

Band 1 44* 6 1 3 8 5

S p e cia list 7 0 1 0 0 0

B and2 2 1 " 2 1 0 5

B and3 3 " * 0 1 0 1 0

Total 75 8 4 3 14 6

* inclu des officer on LWOP ** includes officer on loan to S ta te G overnm ent D ep artm en t *** inclu des officer seco n d ed to a n o th e r C om m onw ealth D epartm ent One prom otion from Band 2 to Band 3 w ithin D epartm ent. Band 3 ap po in ted a s S ecretary of D ep artm en t of A dm inistrative S e rv ic e s .

Inter-agency mobility

As a result of Administrative Arrangements, seven officers (the Arts) and three officers (Australian Archives) transferred to Department of Communications and the Arts; one officer transferred to Bureau of Mineral Resources; one officer transferred to Australian Mint; one officer transferred from Australian National Audit Office; one officer transferred from Department of Social Security; one officer was promoted from the Insurance and Superannuation Commission

Participation by Senior Executive Service officers in staff development activities

Of the nominal SES officers in the department, 42 have attended one or more staff development activities in the 1993-94 financial year. Four of those attending were females.

121

hC hO

S u b p r o g r a m

A p p r o p r i a t i o n

B il ls 1 & 3

($ooo·)

+

A p p r o p r i a t i o n

B i l l s 2 & 4

($ 000·)

+

S p e c i a l

A p p r o p r i a t i o n s

($ooo·)

P r o g r a m 1

1.1 A sset Services 8 466 615

1.2 A ustralian C onstruction S erv ices 4 727 1.3 AGAL 5 742 800

1.4 AG PS 7 924

1.5 Australian Property Group 1 815 1.6 AUSLIG 24 325

1.7 A ustralian Valuation Office 1 806 1.8 DAS Distribution 1 400

1.9 DAS FLEET 226

1.10 DAS Interiors A ustralia 182 1.11 DAS Removals 31

1.12 B usiness Support 1 115 5 500

1.13 Support Services 44 283 2 578

1.14 Prooertv R ationalisation Sub-Total Propram 1 102042 9493 o

P r o g r a m 2

2.1 M inisterial & Parliam entary 112 861 48 699

Services 2.2 lonosnheric Prediction Service 3 1 7 8

2.3 Australian E state M an aq em en t 47 368 1 6 8 14 4 2.4 O verseas Property Group 104 258 36 566

2.5 COMCAR 22 000

Sub-Total Propram 2 289665 204 710 48 699

P r o g r a m 3

3.1 Purchasino Australia 21 912

3.2 Information and Advertisino 3 372

Sub-Total Prooram 3 25284 0 0

P r o g r a m 4

4 Cornorate M an aoem ent 71 536

P r o g r a m 5

5 C o m m o n w e a l t h G r a n t s C o m m i s s i o n 3 690 P r o g r a m 7

7 Commission of Inquiry into ASIS 1 396 TOTAL 493 613 214 203 48 699

A n n o t a t e d

A p p r o p r i a t i o n s

( $ 000·)

9 1 6 9

9169

312

36 124

12 962

13434

223 621 844

23 763

P r o g a m

A p p r o p r i a t i o n s

($000')

9 081 4 727 6 542 7 924

1 815 24 325 1 806 1 400

226 182 31 6 6 1 5

56 030 ______0 _

120 704

161 872

3 2 1 4 215 636 153 786 22 000

556508

2 2 1 3 5 3 993 26128

71 847

3 695

1 396

780 278

A d j u s t m e n t s

($000' |

- 1 3 465 - 4 247

- 1 4 1 8

7 016 16 736 301 828 - 2 014

28 494 - 8 260

24 687 3 698 30 360 5 2 0 6 87922

1 407

192

270 157 47 533 2 647 321936

12 086 -4 1 3 11673

348

P r o g r a m

O u tla y s

( $ 000·)

22 546 8 974 7 960 908 - 1 4 921

24 024 978 3 4 1 4 - 2 8 268

8 442 - 2 4 656 2 9 1 7 25 670

- 5 206 32 782

160 465

3 022

- 5 4 521 106 253 19 353 234 572

10 049

4 406

421 885

14 455

71 499

3 689

1 396

358 393

Appendix 4

R e c o n c i l i a t i o n o f s u b p r o g r a m s a n d a p p r o p r i a t i o n e l e m e n t s 1 9 9 3 - 9 4

Appendix 5

Equal Employment Opportunity

Appendix 5

Equal Employment Opportunity

The Department of Administrative Services Equal Employment Opportunity Program (1991-1994) approved by the Public Service Commission expired on 30 June 1994.

The department is evaluating its 1991-94 EEO Program to assist in the development of the EEO Program 1994­ 97.

The EEO program promotes DAS Corporate Goals, particularly that of ‘being a good employer’. The objectives of the program are to:

• increase the numbers of members of EEO groups (ie women, people of non-English speaking background, Aboriginal and Torres Strait Islander peoples and people with disabilities) in all areas of the department and improve their career opportunities;

• eliminate discrimination, both direct and indirect; maintain commitment and support for EEO within the department; and integrate EEO principles in the department’s personnel management practices. This financial year saw the implementation of the 1992-1994 EEO Action Plan. During this period the department has:

• distributed DAS EEO standards to all staff. These standards convey to all DAS staff the department’s very real commitment to fair and equitable work practices and promote a harassment free workplace. • continued to monitor and report on EEO data, including statistics on numbers and proportions of EEO group members in recruitment for Senior Officer and SES positions, the number of EEO group members accepting

voluntary redundancies and the representation of EEO members throughout the organisation; • implemented business/subprogram specific EEO projects; and • incorporated EEO in performance assessments for SES and Senior Officers

Aboriginal and Torres Strait Islander Recruitment and Career Development Plan

Another significant element of the department’s EEO strategy is the Aboriginal and Torres Strait Islander Recruitment and Career Development Plan.

The plan aims to establish a range of appropriate recruitment, training and career development programs, together with support measures, that will increase access by Aboriginal and Torres Strait Islander people to permanent full time employment in DAS.

A key objective of the Plan is to promote an environment which supports Aboriginal and Torres Strait Islander people’s recruitment and progression throughout DAS. A pilot Cross Cultural Awareness Program has been developed to support this objective. The program called ‘Didinba’, a Walpiri word meaning a sharing of insights,

has been developed by the Centre for Aboriginal and Islander Studies (CAIS) for DAS. More than 100 staff in the Northern Territory have attended the pilot program, which will be extended into other DAS regions during 1994­ 95.

A DAS Aboriginal and Torres Strait Islander network has been established. Aboriginal Liaison Officers who represent the interests of Aboriginal staff in regions of the department, meet quarterly to discuss relevant issues and progress with implementation of the Plan.

EEO resources

DAS has a dedicated EEO unit located in the Employee Relations and Management Branch of the Corporate Resources Division. The unit is staffed by a Senior Officer Grade C, and an Administrative Service Officer Grade 6. In addition the Aboriginal Project Officer (Administrative Service Officer Grade 5), is located in Darwin, Northern Territory. This position has particular responsibility for coordinating implementation of the Aboriginal

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Department o f Administrative Services A nnual Report 1993-94

and Torres Strait Islander Recruitment and Career Development Plan. The EEO Unit reports to the DAS Senior Executive Responsible for EEO, (Assistant General Manager, Employee Relations and Management Branch).

EEO Coordinators are located in each region and assist in EEO initiatives and provide local advice and support on EEO matters. EEO Contact Officers and Sexual Harassment Contact Officers are available at the business/subprogram level to provide a local point of contact and to provide advice on EEO matters.

Consultative mechanisms

The DAS EEO Committee was established by the National Consultative Council (NCC), DAS’s peak consultative forum. The committee, which meets quarterly, has representation from the Community and Public Sector Union, the Automotive, Food, Metals & Engineering Union and the Construction, Forestry, Mining & Energy Union, Aboriginal and Torres Strait Islander staff and DAS management. The primary role of the Committee is to oversee the development and implementation of the department’s EEO Program.

In addition to the DAS EEO committee, there are other business/subprogram forums to address EEO issues at the national and regional level.

EEO databases and statistical data

EEO information in relation to DAS employees is recorded on the department’s National Organisational Management Database (NOMAD). The database allows the department to report on EEO related issues from a statistical perspective including representation of EEO groups in DAS, by classification and occupational groups.

The DAS EEO data base is continually being developed to enable more detailed analysis of EEO profiles eg Temporary Employees.

Monitoring and evaluation

The DAS EEO committee monitors the implementation and effectiveness of the DAS EEO Program. DAS business and subprograms report on a range of EEO issues including involuntary redundancies and any EEO initiatives. The committee submits a report to the NCC twice yearly on implementation of the EEO Program as a whole.

DAS reports to the Minister on a quarterly basis against the program and on other developments related to EEO issues.

The National EEO Manager maintains close links with all areas of DAS, including attendance at EEO network meetings in regional offices.

EEO grievances

The National EEO Manager together with local EEO Coordinators/Sexual Harassment Contact Officers offers advice to staff relating to workplace sexual harassment. Most incidents relating to workplace sexual harassment are resolved by conciliation.

During 1993-94 three cases were referred to the Human Rights and Equal Opportunity Commission for investigation. All employees in DAS have access to a toll free 008 number to raise concerns related to workplace sexual harassment with the National EEO Manager.

S ig n ifica n t ach iev em en ts 1993-94

The major EEO achievements for 1993-94 included: • implementation of the 1992-94 DAS EEO Action Plan; • implementation of the department’s Aboriginal and Torres Strait Islander Recruitment and Career Development Plan;

124

Appendix 5

Equal Employment Opportunity

■ DASCEM participation in the Interlink Work Observation Program. To date DASCEM has sponsored placements for two women (an Egyptian Chemical Engineer and most recently a Ukrainian Civil Engineer); • implementation of an Employee Assistance Program in Support Services Tasmania; • AUSLIG’s Women’s Network organising presentations on the application of the Myers-Brigg Type

Indicator, image building and AUSLIG’s vision for the year 2000; • COMCAR incorporating EEO training in all induction training courses conducted by COMCAR; • Asset Services in Western Australia arranging numeracy and literacy training programs for staff from a non English speaking background. This program is being developed in conjunction with Edith Cowan University

in Western Australia; • developing and delivering a pilot Cross Cultural Awareness Program to DAS staff in the Northern Territory; • presentation of papers to the Public Service Commission Seminar on Women in non Administrative

Classifications; and • implementation of English language training in several areas of DAS including AGPS, DAS Distribution and to staff on the Staffing Adjustment Program.

Organisational implications for EEO

DAS continued to reduce its overall staffing levels during 1993-94. This had an impact on DAS’s capacity to recruit staff from EEO target groups including Aboriginal and Torres Strait Islander people and people with disabilities. The Annual Report statistics to end of June 1994 indicate that the percentage of EEO group members have experienced limited change overall despite a reduction of some 1600 staff in the department.

Special issues and major priorities in 1994-95

Major tasks for the year ahead will be: • to develop and implement a 1994-97 DAS EEO Program based on the evaluation of the 1991-94 EEO Program; • to continue to implement the DAS Aboriginal and Torres Strait Islander Recruitment and Career

Development Plan; • to further develop the EEO database and analyse EEO data more extensively to evaluate EEO performance; • to work closely with DAS managers and staff to improve communication and understanding of EEO policies,

objectives and strategies; • to assist DAS businesses/subprograms implement and monitor EEO standards; and • to implement a Cross Cultural Awareness Program throughout DAS.

125

Department o f Administrative Services A nnual Report 1993-94

EEO statistics by occupation

SES figures include non SES officers on higher duties in SES positions

O ccupational Group Total W om en %

Total NESB %

Admin. Service Officer 3485 1485 4261% 440 16.62%

Physical 49 1 2.04% 9 34.61%

P ro fe ssio n a l 786 93 11.83% 214 2887%

SES 97 12 12.37% 9 10.00%

T ech nical 931 86 9.23% 156 18.77%

T ra d e s 2906 147 5.05% 279 20.26%

M is c e lla n e o u s 210 6 2.85% 17 11.18%

Total 8464 1830 21.62% 1124 19.17%

O ccupational Group Total ATSI % PWD %

S t a f f w ith EEO Data %

Admin. Service Officer 3485 25 0.94% 194 7.33% 2646 74.05%

P hysical 49 0 0.00% 2 7.69% 26 56.52%

P ro fe ssio n a l 786 1 0.13% 34 4.58% 741 87.58%

SES 97 0 0.00% 4 4.44% 90 87.37%

T echnical 931 6 0.72% 49 5.89% 831 84.96%

T ra d e s 2906 15 1.08% 124 9.00% 1377 43.74%

M is c e lla n e o u s 210 3 1.97% 12 7.89% 152 51.70%

Total 8464 50 0.85% 419 7.14% 5863 65.23%

126

Appendix 6 Social Justice

Appendix 6

Social Justice

Affirmative Action Purchasing Policy

On 1 January 1993 the Commonwealth Government introduced a contract compliance policy whereby all organisations which fail to comply with the Affirmative Action (Equal Employment Opportunity for Women) Act 1986 are ineligible for government contracts and specified forms of industry assistance. The Affirmative Action Agency produces regular lists of companies which do not comply with the Act. These lists are widely

distributed within the department. To evaluate the impact of this policy the government has decided that a review will be undertaken by the Affirmative Action Agency in 1995 of instances where competitive bids from non compliant suppliers are rejected.

International Year of the Indigenous People

Between June and December 1993 DAS was actively involved in promoting the 1993 International Year of the World’s Indigenous People.

Activities associated with indigenous cultures, art and the access of records of particular interest to Aboriginal and Torres Strait Islander people were promoted in Australia and overseas.

DAS continued to provide details to the IYWIP secretariat for its final report following the transfer of the Australian Cultural Development Office and the Australian Archives to the Department of Communications and the Arts in early 1994.

International Year of the Family

Since the commencement of the International Year of the Family in January 1994, DAS has participated in the preparation of material on the Agenda for Families; DAS Removals was nominated in a national International Year of the Family project on best practice in Commonwealth funded organisations, and DAS commented on the

Department of Human Services and Health cabinet submission on an Australian Government Agenda for Families. Preparatory work has been undertaken on a DAS brochure on family responsibilities and material for a management module on workers with family responsibilities.

IYF has been promoted in the department through internal publications, such as DASNEWS, and regular mail- outs of information.

DAS is looking into assistance for workers with responsibilities for other family members such as elderly or disabled relatives.

Planning is already underway for the International Year of Tolerance 1995, which also marks the commencement of the Decade of the World’s Indigenous People.

Royal Commission into Aboriginal Deaths in Custody (RCIADIC)

DAS is a member of the Standing Group of Commonwealth Representatives, represented by Corporate Policy and Government Relations Division and Purchasing Australia.

RCIADIC recommendations directly affecting DAS relate to Purchasing Australia (recommendations 307 and 326). Two new policies have been implemented in response to these recommendations. The first aims to maximise employment opportunities for Aboriginal and Torres Strait Islander people through Commonwealth contracting. The second aims to increase Aboriginal and Torres Strait Islander participation in the award of contracts for construction and associated works within their communities.

127

Department o f Administrative Services A n n u a l Report 1993-94

Purchasing Australia is currently developing evaluation models to test the effectiveness of these policies.

Preparatory work was undertaken in June 1994 to engage a consultant to review DAS progress on RCIADIC and advise DAS on business opportunities with the Aboriginal and Torres Strait Islander communities.

Women’s Desk Officer

The Women’s Desk Officer represents DAS at inter-departmental meetings of Womens’ Desk Officers, a valuable forum for the exchange of ideas. Information on the Review of Government Policy Advice Mechanisms on the Status of Women and the National Strategy on Violence Against Women was disseminated through the

department.

The Women’s’ Desk Officer function was reviewed in June 1994, as part of a broader informal review of the Access and Equity/EEO functions. It was decided that the role should remain in Government and Legal Branch.

Regular statistical summaries are provided to the Office of Status of Women (OSW). The appointment of women and members of other EEO target groups to the various boards, councils and committees of the department is monitored through the APPOINT computer system administered by OSW. DAS managers are encouraged to use the OSW Register of Women when considering vacancies on boards and committees.

128

Appendix 7 Industrial Democracy

Appendix 7

Industrial D em ocracy

Industrial D em ocracy P lan status

The DAS Industrial Democracy Plan foreshadowed in last year’s Annual Report is being further developed to be more adaptable to the needs of the Department of Administrative Services, particularly with enterprise bargaining negotiations being conducted at the subagency level within the commercial businesses. The focus of the draft revised

plan is action planning at the divisional level to enable them to facilitate enterprise bargaining and the implementation of enterprise.agreements at the local level.

The Industrial Democracy Plan links with other key DAS documents, including: • the Corporate Plan; • individual business unit plans and operational unit plans; • the.Occupational Health & Safety Agreement; • a.Memorandum of Understanding on Technological Change;

• the.Equal Employment Opportunity Plan; and • the.Aboriginal and Torres Strait Islander Recruitment and Career Development Plan.

C onsultative m echanism s

A formal consultative framework is the platform for DAS’s approach to industrial democracy.

The.National Consultative Council (NCC) is the peak consultative forum within the department. Representatives of senior management, eight federal unions (representing all unions with coverage in DAS) and the ACTU form the membership of the council. It meets twice a year, and reflects budgetary cycle timing.

Committees of the NCC cover Occupational Health and Safety, Equal Employment Opportunity, Industrial Democracy and Organisational Change. The EEO, OH&S and ID committees meet on a quarterly basis. The Organisational Change committee meets on an ‘as required’ basis.

Regional Joint Consultative forums are established in each State and the Northern Territory. The majority of DAS businesses and divisions have their own consultative bodies which meet as determined by the parties, taking account of size, geographic location and the consultative mechanisms in place. A DAS Advisory Board supporting DAS business unit policy and operations includes two nominees of the ACTU in its membership. Other consultative bodies in the department include: the Human Resource Development Advisory Committee; the Departmental Audit Committee; the Environment Committee, and the Information Technology Advisory Committee. Joint working

parties and review groups have been established from time to time to deal with specific issues, both across DAS and within the businesses/divisions.

Resources Guidelines on the provision of facilities for union representatives attending DAS consultative meetings have been established by the NCC, and provide the basis of resourcing for the NCC and its committees. They also form the basis of resourcing for other consultative forums within the department. There is an annual allocation of funds for the operation of the NCC and its committees. These funds are primarily used to cover travel and other expenses

associated with the conduct of the meetings, although specific activities endorsed by the NCC (such as the DAS contribution to the annual Trade Union Training Authority course for workplace delegates) are also covered. Each business/division funds its own consultative forums and other industrial democracy initiatives.

129

Department of Administrative Services A nnual Report 1993-94

General Managers are responsible for the ongoing implementation of industrial democracy within their business on- division. Responsibility for the provision of staff to assist with the implementation of industrial democracy resides; with each business or division. The dedication of staff resources varies, depending on the nature, size and activities between businesses from staff who have industrial democracy as part of other duties to dedicated resources. Some DAS businesses have established national delegates networks to facilitate negotiations in consultative forums and it enterprise bargaining process.

The businesses/divisions are assisted in their activities by two full time staff members of the Corporate Resources Division. These two staff provide guidance, advice and practical assistance to businesses where required as well as providing secretariat services to the NCC.

The senior executive responsible for industrial democracy is the Assistant General Manager, Employee Relations a Management Branch of the Corporate Resources Division.

In form al arrangem ents

Informal employee participation arrangements have developed within and across the various divisions/businesses. These informal arrangements include Team Briefings, weekly newsletters and regular branch/section meetings. Sta. are also provided with feedback from business strategy meetings and Regional Managers and Branch Heads meetings. The informal arrangements complement formal processes and provide staff with linkages to them.

In addition to these informal processes some businesses have other employee participation initiatives in place. Asse Services has established Workplace Change Committees in each Operations Centre and Regional Office and is trialing the introduction of Self Managed Teams. Employee participation arrangements in other businesses should evolve from the enterprise bargaining process.

B u sin ess p lan n in g processes

The.DAS Corporate Plan provides the basis for DAS’s business planning process, oriented to a customer focus approach to business planning. This involves staff in a series of workshops to analyse future requirements and directions of their business or division, which is then incorporated in the business plan. Staff are then encouraged ta discuss and comment on draft business plans prior to their submission to the Executive for approval. Business or division business plans are supported, in the main, by Branch action plans.

The business planning process has been developed to ensure that staff are involved in the development of business plans and performance evaluation with the aim of providing them with ownership of DAS’s objectives, performance and reputation.

S p ecial issu es

The implementation of industrial democracy in DAS is influenced by a range of issues, not the least of which this year has been enterprise bargaining. Enterprise agreements are being negotiated in each of the DAS commercial businesses and one agreement is being negotiated to cover the Budget funded areas. This process has involved considerable investment of resources by the department and unions.

Other issues include: • its size (more than 9000 staff) and the large reduction in staff numbers; • geographical spread, DAS being represented in all Stales and Territories; • the diversity and complexity of its operations and functional responsibilities; and • its union coverage.

130

Appendix 7 Industrial Democracy

S ign ificant ach ievem en ts

The Industrial Democracy in Action training program for ASO 1-4 grades (and equivalents) has been established as a regular part of the training calender. An ‘Industrial Democracy Awareness course for ASO 5 to SOG A grades (and equivalents) has been developed and will be available to staff in 1994-95.

Most DAS businesses and divisions have concentrated on consolidating previous achievements in the area of industrial democracy and the move to less formal employee participation practices that has developed with the introduction of performance appraisal.

Some of the special initiatives that have been implemented in parts of the department include: • staff participation in the introduction of Quality Assurance programs; • staff involvement in the introduction of Total Quality Service programs; • the development of staff personal operational plans; and • the use of working groups and conferences to involve staff to look at certain aspects of operations.

M onitoring, review and evaluation

The ongoing review and evaluation of the effectiveness of implementation of industrial democracy is integral to the DAS Industrial Democracy Plan. The Industrial Democracy Committee receives regular reports on progress and issues in implementation.

P riorities for 1994-95

• Develop industrial democracy processes in light of the 1994-97 DAS Corporate Plan; • review the formal consultative arrangements to ensure that they meet the requirements of the enterprise bargaining environment; • develop informal industrial democracy arrangements that facilitate implementation of enterprise bargaining

outcomes; and • evaluate the effectiveness of formal and informal consultative arrangements and practices in DAS.

131

Appendix 9

Internal & external scrutiny

Appendix 9

Internal and external scrutiny

F reed o m O f I n fo r m a tio n A c t 1982 - Section 8 Statement

This statement is correct to 30 June 1994. On 18 November 1986 an amendment to theFreedom of Information (FOI) Act 1982 required all future section 8 statements to be incorporated in agencies’ annual reports. This statement contains:

■ a brief description of the functions for all the divisional areas within the department; • a description of the types of documents held by those areas; and • arrangements for public involvement in work of the agency.

For more detailed information about the operations of the individual divisions please refer to the relevant sections of this annual report.

An overall portfolio organisation chart appears on page 3 of this report. The organisation for each division is at the beginning of each division’s entry.

Powers

The department’s powers are derived from legislation detailed in material which is available on request (see Preface). Decision making powers for the purpose of the FOI Act are listed in this statement.

Arrangements for outside participation

DAS Board of Management A DAS Board was established in 1990 to advise the Secretary on the operations of the department. It meets monthly and comprises, in addition to the departmental Executive, prominent people from private enterprise, the union movement and clients.

The role of the board is to be the Secretary’s chief advisory body. It deals with the strategic and critical tactical issues facing the department.

National Consultative Coioicil The Secretary to the department, together with a union representative, chairs a National Consultative Council comprising departmental officers and representatives of staff organisations with members in the department. The council meets twice yearly to consider matters that are of concern to the department. Some of the issues considered include technological change, occupational health and safety, equal employment opportunity, industrial democracy and organisational change.

Environmental Futures Group (EFG) The EFG was a small advisory body which examined and made recommendations to the Minister on ways in which the department could best contribute to the Government’s environmental objectives. It was established in 1991 and was disbanded in January 1994. It had eight members appointed by the Minister, five from the private

sector and three from the department. Its place was taken by a new body within the department, the DAS Environment Committee.

Further information on these and other departmental programs that involve the participation of organisations and individuals from outside the department are detailed in the body of the annual report._____________________

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Categories of documents

The categories of documents held by the department are shown in the following sections of this statement under each program area. Documents are kept in a variety of ways, e.g.;

• on computers; • audio or visual recordings; • in registers; and • in filing systems.

Most categories of documents arc held in both central and regional offices of the department. Where the availability of documents mentioned under each program area varies:

(*) < * * ) (***) ^****^

a single asterisk, identifies documents available for purchase by the public; two asterisks identify those available free of charge to the public; three asterisks identify those available for public inspection upon payment of a fee; and four asterisks identify those documents which contain commercial-in-confidence material.

Facilities for access

Members of the public may make inquiries on FOI matters at the central and regional offices shown at the end of this Appendix.

These offices are open for business between 9.00 am and 4.30 pm, Monday to Friday (except public holidays), and officers are available to receive inquiries and supervise inspections of documents.

Photocopying facilities are also available at the addresses shown, however, informal enquiries may be made at any departmental address shown in a local telephone directory or in the Commonwealth Government Directory.

Information on access for people with physical disabilities may be obtained by contacting the inquiries officers listed at the end of this Appendix.

The department also provides a reading room at its central office for the examination of documents to which access is provided.

FOI procedures and initial contact points

Inquiries may be made by letter, telephone or in person. Formal FOI requests in writing should be lodged at one of the addresses shown at the end of this statement. Request forms are available from the addresses listed at the end of this Appendix and can be used in making formal FOI requests. Use of the form is not obligatory but helps the department identify and process an FOI request.

The charging policy of the department under FOI is outlined in its Administrative Law Procedures Handbook which is available for inspection at the FOI Access point in the department’s central office, the address of which is listed at the end of this Appendix.

Officers authorised to make decisions under the FOI Act

The classification, designation and number (in brackets) of officers authorised to approve and deny access to documents under the FOI Act:

Senior Executive Service Band 3 (3), Senior Executive Service Band 2 (25), Senior Executive Service Band 1 (66), Senior Professional Officer Grade A (1).

The classification, designation and number of officers authorised to impose charges, remit charges and remit application fees under the FOI Act.

Senior Executive Service Band 3 (3), Senior Executive Service Band 2 (1), Senior Executive Service Band 1 (2), Senior Officer Grade B (5), Senior Officer Grade C (2), Administrative Service Officer Class 6 (5).

134

The classification, designation and number of officers authorised to conduct a section 54 Internal Review under the FOI Act:

Senior Executive Service Band 3 (3), Senior Executive Band 2 (25), Senior Executive Band 1 (66), Senior Professional Officer Grade A (1).

Appendix 9

Internal & external scrutiny

1 B u s i n e s s S e r v i c e s P r o g r a m

Asset Services

Functions Asset Services plans, manages and delivers maintenance, repairs and related operational services and property improvement works for Commonwealth departments and authorities.

Categories of documents • various Asset Services publications • file records of project, policy, administrative and personnel matters • manuals on technical and administrative policy and procedures • technical directives and instructions • contract documents ****

• bulletins • maps • plans • computer data holdings • computer programs ****

• budgets and estimates **** • Asset Services business plans **** • correspondence, not otherwise covered, with the public and other agencies

Australian Construction Services

Functions Provide professional consulting services which include architectural design and documentation, project management, construction management and construction supervision, and laboratory services, principally to

Commonwealth departments and authorities, on a fee for services basis.

Categories of documents

• business plans **** • quality system **** • promotional material • budgets and estimates **** • computer programs/data holdings **** • personnel administration **** • contract/project documents **** • common library holdings • correspondence, not otherwise covered, with public and other agencies

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Australian Government Analytical Laboratories

Functions • act as the Commonwealth’s principal agency for the delivery of chemical and microbiological analytical services, being the first point of reference for departments seeking such services and acting as required on behalf of client departments in arranging for work to be contracted to external laboratories

• provide expert capability in the critical evaluation of the design and results of programs proposed by clients and in assessing the scientific quality of external service provided to Commonwealth agencies

• provide services to the Commonwealth Government, industry and private bodies which involve:

- the examination of advice and consulting services on technical matters in the fields of chemical, physical or microbiological characteristics and the provision of reports on their composition or compliance with relevant legislation, prescribed standards or specifications in relation to their nature, quality and/or composition;

- the provision of advice and consulting services on technical matters in the fields of chemistry and microbiology, on matters arising from the interpretation of Commonwealth legislation and on matters requiring expert court testimony; - the development of new or improved methods of analysis and research into problems associated with work

of the laboratory so that up-to-date techniques can be used as the basis for services provided to clients; - the provision of quality assurance and proficiency testing programs and assistance in the formulation of public policy regarding standards and quality in the fields of chemistry and microbiology; - the promotion of chemical and microbiological laboratory competence in Australia through participation

in scientific meetings, involvement in collaborative studies and the provision of training in analytical and microbiological techniques; - the provision of essential services in the event of emergencies; - the provision of other services, either directly or through subcontractors, which complement the principal

services provided in chemistry and microbiology; - the publishing of information on analytical techniques and with the concurrence of clients, results of analysis of interest to the scientific community and the public; - cooperating with individuals and organisations whether government or private, Federal, State or

international in the furtherance of government policy; and - promoting its services to government and the community and charging for such services, except for those designated as being in the national interest

Categories of documents • establishment and staffing • research investigations **** • results of analyses * • technical manuals * • financial administration **** • personnel administration • ministerial and deparunent matters • method of analysis **** • client liaison • service information • costing and charging **** • stores and equipment • correspondence, not otherwise covered, with the public and other agencies

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Internal & external scrutiny

Australian Government Publishing Service

Functions

• AGPS provides Parliament and Commonwealth Government and its agencies with value for money solutions which meet their needs to produce and distribute information. It is the primary publisher and distributor of Parliamentary and Government information in printed and electronic formats. Information is distributed through Commonwealth Government bookshops and centralised mail order services and subscription services.

• AGPS aims to ensure all Australians have easy and affordable access to Australian Government information.

• AGPS provides a range of products and services to meet public interest information access needs. These include developing and maintaining Australian Government publication standards, providing design and editorial services, maintaining a catalogue of Australian Government publications and administering the Library Deposit Scheme. AGPS publishes and distributes Commonwealth legislation, gazettes and Commonwealth Government and Ministerial directories.

Categories of documents • printing production and planning **** • procurement of individual publishing and printing requirements and specifications **** • commissioning of authors, editors and designers ****

• copyrights and reproduction permissions, including design and Commonwealth publications standards **** • compilation of service publications including the Commonwealth of Australia Gazette * • Commonwealth editorial style guidelines *** • editorial policy control of Commonwealth publications ***

• internal administration and management, including financial statements, estimates and reports **** ■ correspondence, not otherwise covered, with the public and other agencies

Australian Surveying and Land Information Group

Functions • provide surveying services for all Commonwealth agencies, other government bodies and where appropriate, the private sector • provide technical advice on surveying, mapping, geodesy, remote sensing, land information and maritime

boundaries to all Commonwealth agencies, other government bodies and where appropriate the private sector • maintain a national coverage of topographic and thematic maps and provide mapping services to clients • develop and maintain a national coverage of digital map data • provide Geographic Information System and Graphical Facilities Information Systems solutions to client

requirements • arrange aerial photography and photogrammetry services for clients and obtain aerial photography for mapping purposes • acquire remotely sensed data of Australia and its territories by satellite and provide a remote sensing

application service to clients • maintain the national geodetic survey infrastructure and monitor the Earth’s geodetic parameters • provide the survey infrastructure to support mapping, land administration and land information systems in Commonwealth territories

• participate in the coordination of Commonwealth, State and Territory surveying, mapping and related activities • provide technical advice to support Australia’s international development assistance program and Australian industry in overseas projects

• maintain a precise time service for communications, navigation and other purposes • provide a calibration service for survey equipment and aerial cameras • provide secretariat functions to related land information committees and councils

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Department o f Administrative Services A n nual Report 1993-94

• provide photolithographic services to government agencies and other clients

Categories of documents • AUSLIG Business Plan **** • topographic and thematic maps of Australia, the continental shelf and external territories * • internal administration documents, for example, finance allocations and expenditure, travel, office

accommodation and equipment, stores and supplies, staff and structure • aerial photographs of Australia and external territories * • satellite remotely sensed imagery of Australia and external territories * • indexes to various mapping scries, aerial photography and satellite remotely sensed imagery ** • records and indexes of survey control stations used for the national geodetic survey network or for national

mapping purposes * • plans of Commonwealth property and buildings • data bases of mapping and land related information • computer and calculator programs * • world aeronautical charts • tactical and thematic atlases of Australia * • publications on AUSLIG activities • publicity brochures for AUSLIG • poster photomaps and tourist maps * • audio-visual material on surveying and related activities * • technical specifications and procedures manuals and instructions • project related documentation (field books and job files) • ministerial correspondence and submissions • assets register • conference, seminar and commission reports • secretariat papers • agreements with agencies for the reception and distribution of satellite remote sensing data **** • agreements with client agencies for provision of services **** • correspondence not otherwise covered, with the public and other agencies • AUSLIG financial information ****

Australian Property Group

Functions Provides a broad range of specialist property services on a fee for service basis. Major areas of service include:

• strategic planning • consultative services • portfolio management services • property management • real estate services

Categories of documents • business and operational plans **** • practice notes **** • correspondence with customers **** • service proposals and agreements **** • financial and operational administration **** • personnel and other administration (some staff-in-confidence) • ADP within Australian Property Group **** • publications on real estate matters

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Appendix 9

Internal & external scrutiny

• real estate information relevant to Australian Property Group functions • correspondence, not otherwise covered, with the public and other agencies

Australian Valuation Office

Functions • maintain the Commonwealth’s central valuation service authority for valuation of real property and associated matters • provide the following range of valuations:

- market valuations - rental valuations - non-current asset (including office based assets and plant and equipment) - cost estimates, and - unimproved and capital values for rating purposes (ACT and NT) • investigate and research the real estate market • undertake feasibility studies focusing on evaluation of investment opportunities • provide advice to clients • provide professional expertise in negotiations • appear as witnesses in Court and Tribunal hearings ■ provide departments and instrumentalities with valuation information and technical reports for real property in

city, urban and rural areas for the administration of Commonwealth Statutes and Ordinances • maintain registers and records of valuations made and an analysis of sales of real property Australia-wide, and • research and record legal decisions applicable to the valuation functions

Categories ofdocuments • statistical and other information relating to valuation matters • Valuing for the Public Sector ** • Australian Valuation Office Business Plan **** • correspondence, not otherwise covered, with the public and other agencies

Note: documents relating to finance and administration of personnel for the A VO are held by DAS Support Services.

Support Services

Functions • provide a range of computing, communications and other IT services to various DAS clients and some external agencies • development and marketing of the NOMAD personnel and financial management system, including

implementation and support of the system within DAS • provision of a personnel bureau service for DAS and some external clients • provision of financial, records management, office support, library and accounting and related services for

DAS clients and some external clients • undertake staff development programs and conduct training

Categories of documents • a range of support services publications • fde and computer data records of administrative, financial, policy and personnel matters • manual guidelines on procedures and policies for the various areas of support services

• service agreements and contract documents **** ’ computer programs

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Department o f Administrative Services A n nual Report 1993-94

• business plans **** • DAS library holdings • correspondence, otherwise not covered, with the public and other agencies

DAS Distribution

Fwtctions • As a central common service agency provide the following services to Commonwealth departments and Authorities: - deposit storage;

- distribution and related activities; - metropolitan freight; - international freight forwarding; and

- interstate and intrastate freight

The services are provided on a full cost recovery basis and the business unit’s activities are open to private sector competition.

In addition, the business unit may extend its services to all Commonwealth agencies, State and local government bodies and where the Minister agrees, to the private sector.

Categories of documents • publications (various) on matters relating to storage, freight and distribution (generally restricted to contractors and client departments and their officers) • business plans **** • meetings with outside organisations **** • internal management meetings **** • policies and procedures on stores, freight and distribution services • transport orders * * * * • customs documentation **** • contract performance * * * * • driver worksheets **** • client department correspondence **** • private firms and persons correspondence **** ■ storage vouchers **** • financial administration **** • personnel administration **** • ADP;services for the business unit **** • correspondence, not otherwise covered with the public and other agencies

DASFLEET

Functions • DASFLEET is the major supplier of passenger and commercial vehicle services to Commonwealth Government departments and agencies.

• it provides operating leases, short term vehicle rentals and fleet management services from its own resources or through the use of external contractors.

• the services are provided on a full cost recovery basis. Commonwealth Government departments and agencies operating on the Commonwealth Public Account are tied to using DASFLEET’s vehicle lease service. DASFLEET’s other services are open to competition.

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Internal & external scrutiny

• DASFLEET may extend its services to all Commonwealth agencies, State and local government bodies and tertiary institutions.

Categories of documents • publications on matters relating to vehicles (generally restricted to contractors and client departments and their officers)**** • meetings with outside organisations**** • policies and procedures on vehicle services • contracts and contract performance reports **** • vehicle accident, vehicle defect and vehicle evaluation reports **** • client department correspondence (some commercial-in-confidence) **** • private firms and persons correspondence (some commercial-in-confidence) ****

• vehicle maintenance and workshop storage vouchers ** • financial administration (some commercial-in-confidence) **** • personnel administration (some staff-in-confidence)

• ADP services within DASFLEET ***, **** • register of Commonwealth vehicles **, *** • vehicle/plant auction catalogues * or ** • other vehicle/plant auction documentation **** • requests for Tender ** • Business Plans **** • Internal operational, business and management reports (some commercial-in-confidence) **** • correspondence, not otherwise covered, with public and other agencies • papers, monthly reports and decisions of the DASFLEET Strategy Committee **** • Quality Manual, Procedures, Current Best Practice ****

Interiors Australia

Functions Interiors provides a wide range of interiors services to customers, covering fitout, refurbishment, needs analysis, space planning, design, documentation, construction management, furniture selection and technical advice.

Categories of documents • various Interiors publications • file records of project, policy, administrative and personnel matters • manuals on technical and administrative policy and procedures

• technical directives and instructions • technical specifications • contract documents • bulletins

• maps • plans • computer data holdings • budgets and estimates

■ business plans**** • correspondence, not otherwise covered, with the public and other agencies

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DAS Removals

Functions Arranges domestic and international household removals and storage and workplace relocations on a fee for service basis. Services are provided through industry contractors.

Categories cf documents • publications (various) on matters relating to removals (generally restricted to contractors and clients and their officers) • removal inventory formats • meetings with outside organisations**** • internal management, planning**** • contract performance**** • client correspondence**** • private firms and persons correspondence** * * • financial administration**** • personnel administration****

• management information systems within DAS Removals**** • correspondence, not otherwise covered, with the public and other agencies****

Business Support

Commercial Treasury and Marketing

Functions • To support DAS businesses and the Executive by providing practical finance, marketing and business development services, and facilitate customer relationships.

Categories of documents • business and marketing Plans **** • business planning guidelines **** • files relating to marketing, market research, product development and sales analysis **** • brochure regarding DAS business services ** • accounting policies and procedures for DAS businesses **** • DAS Board minutes **** • internal management meeting minutes **** • financial administration of the Business Services Trust Account (BSTA) ****

• financial analyses of DAS BSTA businesses **** • administration records (e.g. financial, staffing, asset register) • correspondence, not otherwise covered, with other agencies and members of the public

Australian Operational Support Services

Functions Draws together the services of DAS Businesses and private sector teaming partners to provide, as prime contractors, non-core operational support services principally to Commonwealth departments and authorities.

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Internal & external scrutiny

Categories ofdocuments • business plans **** • quality system **** • promotional material • budgets and estimates **** • computer programs/data holdings **** • personnel administration **** • contract/project documents • correspondence, not otherwise covered, with the public and other agencies

DAS Centre for Environmental Management

Functions Manages the Halon Bank and provides a range of environmental management services to customers covering, energy management and implementation plans, indoor environment valuation and energy audits.

Categories ofdocuments

• various DASCEM publications • meetings with outside organisations • internal management, planning • contract performance

• client correspondence • private firms and persons correspondence • financial administration • management information systems within DASCEM • correspondence, not otherwise covered, with the public and other agencies

2 G o v e r n m e n t S e r v i c e s P r o g r a m

Ministerial & Parliamentary Services

Functions • implement and maintain secure communications facilities for Ministers, Parliamentary Secretaries and departments, and install and maintain office systems in the electorate offices of Senators and Members • represent Ministers, as users, in relation to matters concerning the Ministerial Wing of Parliament House • provide resource support services to Ministers and other Members of Parliament, including staff, office

accommodation and related services and travel services • provide policy advice to the Minister on entitlements issues for parliamentarians and their staff • provide secretariat support for the Australian Political Exchange Council and manage the council’s program

of delegations visits.

Categories cf documents • computer systems training manuals for electorate staff • training manuals for the Parliament House Executive Wing • office handbooks for Members of Parliament on the range of services delivered by the department

• determinations under the Members of Parliament (Staff) Act 1984 • records of persons employed by Members of Parliament under the Members of Parliament (Staff) Act 1984

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Department o f Administrative Services A n n u a l Report 1993-94

• records of the use of services by electorate offices (automated Parliamentary Resource and Management Recording System) • other records about the range of services provided to Members of Parliament and their staff • correspondence, not otherwise covered, with members of the public and other agencies

Ionospheric Prediction Service

Functions • provide radio communications predictions to appropriate Commonwealth departments, authorities and organisations; • provide forecasts and warnings of disturbances to the solar geophysical environment to appropriate

Commonwealth departments, authorities and organisations; • monitor and interpret ionospheric, geophysical conditions and solar activity at sites in and around Australia; • provide professional consultancy and training services in radio communications to organisations with mutual

interests; • publish solar-geographical data; • exchange solar-terrestrial data with world data centres and international institutions with mutual interests; • advise national policy on radio communications, radio science, solar-terrestrial physics, and space science.

Categories of documents • computer files, microfilm, and paper records of ionospheric, solar and geophysical data • research and topic review reports, conference reports • publications on IPS activities • ministerial correspondence • assets register • business plans **** • correspondence, not otherwise covered, with the public and other agencies

Australian Estate Management

Functions Australian Estate Management is responsible for managing some 186 office buildings, comprising a major part of the Commonwealth Estate. Approximately one-third of the total office accommodation occupied by the Australian Public Service is included in this portfolio — the rest being supplied by the private sector. The Commercialised Estate is comprised of the Office Estate and the Industrial and Special Purpose Estate.

As well as having responsibility for the general ongoing management of the Office Portfolio, Australian Estate Management administers the Lands Acquisition Act 1989, advises Government on land acquisition and disposal activities, property development and construction initiatives and heritage and environmental matters pertaining to the Estate.

Categories of documents • Australian Estate Management Business Plan **** • budgets and estimates • acquisition of property • disposal of property • office construction and refurbishment • repairs and maintenance • ADP assets and Commonwealth Estate rentals/payments/receipts **** • accommodation • property management

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Appendix 9

Internal iP external scrutiny

• establishment and staffing ■ occupational health and safety issues (asbestos, air-conditioning etc) • Commonwealth Fire Board • agents (property management, construction, valuation, survey, legal etc.) **** • ministerial correspondence • correspondence, not otherwise covered, with the public and other agencies

Overseas Property Group

Functions • provide or arrange for the acquisition and disposal of property overseas on behalf of Commonwealth departments and specified authorities • act as the Government’s construction and maintenance authority for overseas properties

• provide policy and economic management advice to Commonwealth departments and authorities on overseas property administration • establish guidelines, standards and administrative arrangements as appropriate for implementation of approved policy in relation to overseas property

Categories of documents • Manual of Overseas Property (4 Volumes) • budgets and estimates • overseas property financial programs (acquisitions, leasing, disposals, administrative, furniture and fittings,

construction works, plant and equipment, repairs and maintenance) ■ overseas property titles • overseas property leases • overseas property valuations **** ■ overseas property floor plans • overseas property disposal approvals • visit reports **** • construction management and estate management procedures workbooks • tender specifications and contracts for:

- furniture and fittings - fitout - construction work - repairs and maintenance, and - plant and equipment overseas rent ceiling determinations computer data listings ****

staffing and establishment business plans **** correspondence, not otherwise covered, with the public and other agencies ****

COMCAR

Functions • To provide a secure car-with-driver service to the Governor-General, the Prime Minister, other Ministers, other Members and Senators, the judiciary, statutory office holders, guests of government and senior public servants. The service is also provided to Commonwealth GBEs and to repatriation beneficiaries through the

Department of Veterans’ Affairs.

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Department o f Administrative Services A n nual Report 1993-94

• to provide a transport management service, particularly for special visits from heads of state and other guest of government via the Department of the Prime Minister and Cabinet, the Department of Foreign Affairs an Trade and the Department of Defence.

The service is provided on a cost recovery basis.

Categories cfdocum ents

• policies and procedures on transport service • driver worksheets • client department correspondence • private firms and persons correspondence • financial administration **** • personnel administration • ADP services within COMCAR • business plans • systems review of COMCAR • correspondence not otherwise covered with the public and other agencies

Corporate Management Program

Corporate D evelopm ent

Functions

• through Customer Focus and Quality Management provide services to support the introduction and improvement of customer focus skills and quality service skills across DAS; and

• through the Regional Coordinators network facilitate a direct link between DAS Executive and the regions, and also facilitate customer relationships, sharing of marketing information and best practice within DAS businesses in the regions.

Categories o f documents

• Total Quality Service (TQS) diagnostic and analysis material **** • business and marketing plans **** • brochures regarding DAS business services • administration records (eg. financial, staffing, asset register) • correspondence, not otherwise covered, with other agencies and members of the public

Corporate P olicy & G overnm ent R elations

Functions

• provide Executive support, policy and legal advice to the Minister, DAS Executive and a range of internal and external customers; • coordinate Executive Council (EXCO) documents • provide a range of administrative and secretariat services to a range of bodies and committees; • meet the department’s administrative law, environment and public works related responsibilities; • promote the Government’s social justice policy in the department; • administer the Lobbyists’ Registration Scheme • provide an advisory service on Australian and foreign honours and awards and national symbols;

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Appendix 9

Internal external scrutiny

• process applications for the Civilian Service Medal 1939-45; • support the Minister and department with public affairs and communication strategies and services.

Categories o f documents

• financial and staffing administration and delegations for the division; • correspondence on honours, awards and national symbol matters generally (including applications for the Civilian Service medal 1939-45); • documents concerning the administration of the Lobbyists’ Registration Scheme; • index of honours awarded to Australians since 1901; • guidelines, reports and newsletters relating to GMAC work; • procedures for assessment of the planned release of recombinant DNA organisms; • proposals received for assessment by GMAC; • minutes and records for the division and certain committees and bodies; • plans, strategies and guidelines; • media kits and promotional materials; ■ communication tools; ■ correspondence, not otherwise covered, with the public and other agencies.

Corporate R esources

Functions

• advise on corporate industrial relations issues and service associated consultative arrangements • coordinate and advise on corporate social justice, EEO and OH&S matters • provide policy advice on human resource management issues for the department • coordinate Budget estimates, negotiations, Budget documentation and appearance before the Senate Estimates

Committee • advise the Minister, Secretary and Executive on portfolio resource allocation issues • oversight the portfolio’s staff and financial resource usage, financial delegations, and provide accounting

policy guidance • advise on corporate policy towards DAS facilities and property assets • coordinate and provide a consulting service to managers on financial management accounting systems • develop corporate reporting arrangements in relation to the performance of departmental Budget-funded

subprograms • assist program managers to develop business plans for departmental Budget-funded elements • provide policy advice on human resource development issues for the department • administer corporate development programs in DAS (e.g. Senior Women In Management (SWIM), Executive

Development Scheme (EDS), and SES Fellowships) • administer a range of study awards and provide administrative support for Study Bank • administer for DAS Graduate Administrative Assistant (GAA) program ■ facilitate the mobility and training of DAS staff in accordance with emerging business needs

Categories c f documents

■ National Consultative Council papers • DAS EEO Plan and related papers • Minutes, correspondence and related papers on OH&S matters • Portfolio Budget Measures Statements (PBMS) * • Portfolio Budget papers ** • DAS Accounting Policy Manual (Volume 1) ***

• financial administration information for the portfolio • divisional administration records • Corporate Resources Business Plan • DAS Corporate Plan

■ internal records of policy, training, development and administrative matters

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Department o f Administrative Services A nnual Report 1993-94

• individual applications for awards, details of study leave arrangements and academic results • copies of applications and their work placement histories as participants on the various external development programs • individual files for each Graduate Administrative Assistant (GAA) containing information on their

recruitment, training and development, work placements, progress and performance • administration, divisional and branch • correspondence not otherwise covered, with members of the public and other agencies

P erform ance R eview & A u dit

Functions

• provide an internal audit service to the department • provide a performance evaluation service for the department • provide a fraud investigation and awareness service for the department

Categories o f documents

• Business Plan *** • internal audit program *** • internal audit reports • correspondence on ANAO reports affecting the department • Departmental Portfolio Evaluation Plan *** • performance evaluation reports • fraud investigation reports • fraud awareness documentation • internal audit manual *** • Departmental Fraud Control Plan *** • internal administrative correspondence • external correspondence with other agencies and the public

3 Purchasing Program

Purchasing Australia

Functions • develop, maintain and revise Commonwealth purchasing policies and related guidance consistent with the principles of the Government’s Financial Management Improvement Program • disseminate information on purchasing policies through presentations and through the creation and

distribution of guidelines • monitor implementation of purchasing policies and reform activities within Commonwealth agencies • provide assistance and advice on agencies purchasing plans, procedures and systems • develop and coordinate the implementation of Government Open Systems Interconnection Profile (GOSIP)

and other IT standards within the Commonwealth ■ establish and maintain common-use contracts for use by agencies • provide an independent centre of expertise to assist agencies in complex, high value, or sensitive civil

purchases • facilitate the redeployment and sale of surplus Commonwealth assets other than real property, working weapons systems, military platforms and warlike stores with the aim of maximising the net return to clients

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Appendix 9

Internal & external scrutiny

establish coordinated business arrangements with carriers and suppliers for both existing and new telecommunications services and products encourage and influence the development of telecommunications products and services to better meet the business requirements of departments and agencies develop and coordinate common/inter agency telecommunications services e.g. e-mail, trunk radio network, electronic kiosks, video conferencing

through the Office of Government Information and Advertising provide assistance to government departments and agencies on advertising and other methods of public communication including the provision of training to develop and extend skills in conducting information activities provide policy advice to Government through the Minister on the full range of government information activities provide the secretariat for the Ministerial Committee on Government Information and Advertising provide the Government Advertising Service which administers the central advertising system operate the Government Photographic Service (AUSPIC) which provides a comprehensive photographic

service on a partial cost recovery basis to Government House, Federal Ministers, Opposition Office Holders, Members and Senators and the five Parliamentary departments on behalf of the Joint House Department and to other government departments on a fee for service basis. Events of national importance are also covered to provide historical records.

Categories o f documents

Purchasing policy guidelines and circulars and source files and documents occasional papers, newsletters, brochures and other documents explaining Government policy and practice purchasing systems planning documents financial and staffing administration and delegations for the division

auction catalogues * documents relating to Commonwealth Information Technology Purchasing Policy documents relating to general conditions of contracts of particular application ** request for tender ** documents relating to GOSIP including manuals, guidelines, files and circulars documents relating to the procurement of goods and services including procurement demands, period contract requests, tender responses and contracts **** documents relating to sales of surplus Commonwealth assets, including contracts for sale of surplus stores, Ministerial submissions and general correspondence *, **, ***, **** documents relating to supplier and goods/services performance **** documents relating to purchasing policy, including Cabinet Submissions and briefings, minutes, surveys of

purchasing officers, surveys of projected purchasing by departments and agencies and general correspondence **** Business plans, internal management documents and documents relating to financial administration **** General administrative files research documents

working papers on all subjects concerning the development and implementation of various Government policy relevant to the office media information including policy on selection of advertising agencies and general procedures and practices

photographs, negatives, slide formats and guidelines on the use of the Government Photographic Service information programs including advertising papers on current practices and new techniques in information dissemination financial and staffing information for the office

ministerial submissions, replies and briefings relevant to the office replies to ministerial representations and parliamentary questions relevant to the office general ministerial correspondence

ministerial reports correspondence, not otherwise covered, with the public and other agencies

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Department o f Administrative Services A nnual Report 1993-94

Freedom of Information contact officers and access points C e n t r a l O f f ic e a n d A C T

Greg Smith Legal and Accountability Section Government and Legal Branch Corporate Policy and Government Relations Floor 5 East

111 AlingaStreet Canberra ACT 2601

GPO Box 1920 Canberra ACT 2601

Phone: (06) 275 3748

NSW

Esther Lauw Support Services Zenith Centre (Tower A) 821-843 Pacific Highway Chatswood NSW 2067

Locked Bag No. 40 Post Office Chatswood NSW 2067

Phone: (02)414 8140 V ic t o r ia

John Kearney Support Services Floor 11 Casselden Place

2 Lonsdale Street

GPO Box 250B Melbourne Vic 3001

Phone: (03) 649 4810 Q u e e n s l a n d

Robin Lawrance Support Services Santos House 313 Adelaide Street Brisbane Qld 4000

GPO Box 920 Brisbane Qld 4001

Phone: (07) 233 7921

WA

Ken Isaacs Support Services Sheraton Court 207 Adelaide Tee Perth WA 6004

GPO Box P1233 Perth WA 6001

Phone: (09) 326 9264 SA Haydon O’Shaughnessy

Support Services Capita Centre 10-20 Pulteney Street

Adelaide SA 5000

GPO Box 1263 Adelaide SA 5001

Phone: (08)228 6510

T a sm a n ia

Bruce Hull Support Services Commonwealth Government Centre 188 Collins Street Hobart Tas 7000

GPO Box 519E Hobart Tas 7001

Phone: (002) 20 4168

Terry Stafford Support Services TCG Building 80 Mitchell Street Darwin NT 0800

GPO Box 927 Darwin NT 0801

Phone: (089) 46 0727

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A p p e n d ix 9

In te r n a l & e x te r n a l scru tin y

Administrative law statistics

Freedom O f Information A ct 1982 Statistics Requests received

Carried over from 1 9 9 2 -9 3 10

Total received during 1 9 9 3 -9 4 57

Action on requests

Access g ran ted in full 25

Access g ra n te d in p a rt 19

Access refu sed 7

Transferred to a n o th e r ag en cy 2

W ithdraw n by ap p lican t 8

Outstanding a s a t 30.6.94 6

Response tim es for requests fin a lised (days) Minimum 1

Maximum 225

Average for 38 re q u e sts finalised 59

H andling o f objections

APPLICATIONS FOR INTERNAL REVIEW

Carried over from 1 9 9 2 -9 3 0

Applications receiv ed 2

Original d ecisio n u ph eld 1

Original d ecisio n p artially a m e n d ed 0

Original d ecisio n o v ertu rn ed 0

Outstanding a s a t 30.6.94 1

APPLICATIONS T O T H E ADMINISTRATIVE APPEALS TRIBUNAL (AAT) f o r r e v i e w o f DEPARTMENTS FO I REQUEST DECISIONS

There were no applications for review during 1993-94.

Cost o f F O I

Fees and Charges $

Total ch arg es o utstan d in g a s a t 30.6 93 $2240.00

Total application fe e s co llected $1 030.00

Total application fe e s rem itted s30A of FOI Act $470.00

Total ch a rg e s notified $24214.00

Total c h a rg e s re m itte d /re d u c e d on re q u e s t $9 450.00

Total c h a rg e s co llected (including ad d itio n al c h a rg e s for p ho to cop ies) $ 3 136 00 Total ch a rg e s n ot co llected b e c a u se re q u e s t w a s w ith d raw n by ap p lican t $ 1 2 262.00 Total ch arges o u tstand ing a s a t 30 6 94 $1 606.00

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Department o f Administrative Services A nnual Report 1993-94

Ombudsman A ct 1976 — S ta tistic s 1993-94 The following tables comprise Ombudsman inquiries which were dealt with by the department during 1993-94.

Formed Ombudsman Complabits

Carried over from 1 99 2-9 3 3

C om plaints receiv ed 10

C om plaints reso lved 13

C om plaints O utstanding a s a t 30.6.94 0

A reas o f t h e d e p a r t m e n t c o n c e r n e d

Australian Estate Management, Australian Property Group, Australian Government Publishing Service, Australian Surveying and Land Information Group. Australian Valuation Office, Asset Services, Corporate Policy and Government Relations, DASFLEET, Ministerial and Parliamentary Services, Overseas Property Group, Performance Review & Audit, Purchasing Australia and DAS Removals.

FoUouHip O m budsm an biquiries into earlier complaints

Carried over from 1 9 9 2-9 3 0

Received during 1 9 9 3-9 4 1

Resolved during 1 9 9 3-9 4 1

Outstanding a s a t 30.6.94 0

Informal Ombudsman complaints received.

W r it in g / by t e l e p h o n e

Carried over from 1 9 9 2-9 3 0

Received during 1 9 9 3 -9 4 4

Resolved during 1 9 9 3-9 4 4

O utstanding a s a t 30.6.94 0

A dm inistrative Decisions (Judicial Review) A ct 1977 — sta tistics 1993-94 There were no requests for Section 13 Statements of Reasons during 1993-94.

Privacy A ct 1988 — sta tistic s 1993-94

C om plaints a n d other m atters received un der d ie P rivacy A ct 1 9 8 8

Carried over from 1 9 9 2-9 3 1

Received during 1 9 9 3 -9 4 2

Finalised during 1 9 9 3 -9 4 3

Outstanding a s a t 30.6.94 0

H um an R igh ts an d E qual O p p ortu nity —sta tistics 1993-94 Complaints and other matters received under the Human Rights and Equal Opportunity Act 1986, the Sex Discrimination Act 1984, the Racial Discrimination Act 1975, and the Disability Discrimination Act 1992.

Carried over from 1 99 2-9 3 0

R eceived during 1 99 3-9 4 3

Finalised during 1 99 3-9 4 2

O utstanding a s a t 30.6.94 1

152

Appendix 9

Internal &? external scrutiny

Fraud control

Departmental policy in relation to fraud

All cases of suspected fraud are evaluated having regard to the terms of the Memorandum of Understanding that the Department has with the AFP. Where the facts support a fraud investigation, it may be undertaken by the AFP, the FCU or a joint task force.

Where facts do not amount to a fraud, details are passed to management for consideration of action under the discipline provisions of the Public Service Act 1922.

Summary of investigation action

C ases received by th e FCU during 1 9 9 3-9 4: 40

Completed during 199 3-9 4: 22

Ongoing a s a t 30 J u n e 1994: 15

C ases ongoing a s a t 30 J u n e 1993: 11

Completed during 199 3-9 4: 5

Ongoing a s a t 30 J u n e 1994: 6

Total c a s e s co m pleted during 199 3-9 4: 33

Total ongoing c a s e s a s a t 30 J u n e 1994: 18

Seven cases of fraud were referred to the AFP for investigation during 1993-94:

As at 30 June 1994, the AFP;was handling 13 cases originating from DAS in the previous year or earlier.

Summary of completed prosecution action:

C ase No. P r o s e c u t i o n / p e n a l t y M o n ie s r e c o v e r e d

Case 12/93 Prosecution u nd er th e Audit Act, fined $500. C om m onw ealth w a s repaid $623.42 prior to th e co u rt p roceed ing s. Also ch arg ed u nd er th e Public S ervice Act.

$623.42 by adm inistrative action prior to the court proceedings.

Case 20/93 Prosecution u n d e r th e Crim es Act, 2 -y ear fu lly-su spen ded se n te n c e w ith 200 hours com m unity serv ice over tw elv e m onths and a Pecuniary P enalty O rder.

Pecuniary Penalty Order for $103,001.60.

The Fraud Control Unit currently has six full-time officers and one part-time officer employed on fraud prevention. In addition, five other FCU officers are attached to other areas of the Department and one is on long­ term sick leave. Other resources, e.g. travel funds and equipment purchases, are provided by the Performance Review and Audit Branch.

There are six cases recommending action under the Public Service Act.

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Department o f Administrative Services A nnual Report 1993-94

Summary of Auditor-General’s reports

Irt 1 9 9 3 -9 4 Die A uditor-G eneral carried out a u d it review s o f certain departm en tal operations. Outcomes w ere included in reports tabled in P arliam ent as indicated below:

• Auditor-General’ s Report No. 1, August 1993 Report on Ministerial Portfolios Budget Sittings 1993

• Auditor-General’ s Report No. 17, December 1993 Underperforming officers in the Australian Public Service — a question of efficiency

• Auditor-General’s Report No. 18, December 1993 Aggregate Financial Statement prepared by the Minister for Finance year ended 30 June 1993

• Auditor-General’s Report No. 21, December 1993 Department of Finance Australian Government Credit Card

• Auditor-General’s Report No. 27, March 1994 Report on Ministerial Portfolios Autumn Sittings 1994

• Auditor-General’s Report No. 32, March 1994 Efficiency Audit-Accural Reporting — Are Agencies Ready?

• Auditor-General’s Report No. 41, June 1994 Report on Australian Government Credit Card — some aspects of its use.

• Auditor-General’s Report No. 44, June 1994 Report on Department of Immigration and Ethnic Affairs — Electronic capture of passenger card data

O u tstanding m atters a t 3 0 J w te 1 9 9 4 fro m A u ditor-G eneral’s reports issued p r io r to 1 9 9 3 - 9 4 re la te d to:

• Auditor-General’s Report No. 34 1990-91 DAS — Services Provided to Members of Parliament and their Staff

• Auditor-General’ s Report No. 13 1992-93 — Efficiency Audit — DAS Overseas Property Group

• Auditor-General’s Report No. 28 1992-93 — Report on Ministerial Portfolios Autumn Sittings 1993

A report on matters raised throughout 1993-94 by the Auditor-General and the responses provided is available from the department on request. It also includes details on matters raised prior to 1993-94 and outstanding as at 30 June 1994.

This report can be obtained from:

Department of Administrative Services GPO Box 1920 Canberra ACT 2601

References to particular Auditor-General reports referring to the activities of individual businesses and divisions may also be found in other sections of the Annual Report.

154

Submissions to inquiries by Parliamentary Committees

Inquiries examining DAS operations

• House of Representatives Standing Committee on Industry, Science and Technology

- Inquiry into Government purchasing policies and promotion of Australian made goods and services

The Committee made 45 recommendations on both purchasing policy and the administration of purchasing in the Commonwealth. The White Paper on Employment and Industry responds to significant elements of the report. The Government is using the report's key conclusions to enhance the existing purchasing framework.

• House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs

- Inquiry into the implementation of the access and equity strategy

This report contained no comments or recommendations which directly affected the department, however the department has responded to the broader recommendations on cross-cultural training courses. The department recognises the importance of internal consultative mechanisms to address access and equity issues and has established an Aboriginal Liaison Officers’ network.

Inquiries to which the Department made a submission

• Joint Committee of Public Accounts

- Inquiry into the Commercialisation of public sector operations

• House of Representatives Standing Committee on Banking, Finance and Public Administration

- Inquiry into fraud on the Commonwealth

• Joint Parliamentary Committee on the National Capital and External Territories

- Inquiry into Freight and Passenger Transport to Australia’s external territories

• Senate Select Committee on Public Interest Whistleblowing

• House of Representatives Standing Committee on Legal and Constitutional Affairs

- Inquiry into Legislative drafting by the Commonwealth

• Senate Standing Committee on Community Affairs

- Inquiry into Disability Reform Package/Corporate Impacts

• Joint Committee of Public Accounts

- Review of Auditor-General’s reports May 1991-September 1992

- Auditor-General’s Report No. 21: Australian Government Credit Card

- Auditor-General’s Report No. 17: Underperforming officers in the Australian Public Service — a question of efficiency

Appendix 9

Internal & external scrutiny

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Appendix 10

Occupational Health & Safety

DAS occupational health and safety policy

As required by the Occupational Health and Safety (Commonwealth Employment) Act 1991 (the OH&S Act), DAS has in place an occupational health and safety (OH&S) policy that was developed in consultation with involved unions. Essentially, the policy is a brief statement of the department’s commitment to safeguard the health and safety of its employees while they are at work, and to provide and maintain OH&S standards in relation to workplaces, plant and equipment which offer the highest practicable degree of protection based on

current knowledge. It also sets out in broad terms a number of specific measures the department will take to achieve these fundamental objectives, including following agreed consultative arrangements with unions on OH&S matters.

DAS occupational health and safety agreement

As provided for in the DAS OH&S policy, DAS also has in place a formal agreement between the department and involved unions that sets out in detail the basic principles and administrative framework within which all concerned parties — management, supervisors, employees and involved unions — will cooperate in providing and maintaining, as far as is reasonably practicable, safe and healthy working conditions in all DAS workplaces.

Matters covered in the agreement include: • the specific responsibilities of management, supervisors, employees and involved unions for ensuring the protection of the health, safety and welfare of all DAS employees; and • organisational arrangements and administrative procedures for the establishment of designated work groups,

the election or selection of health and safety representatives, and the establishment of OH&S committees as the formal mechanisms for continuing consultation between management, employees and involved unions on OH&S matters. The agreement emphasises cooperation and consultation between all concerned parties, and resolution of issues on a consensus basis.

Responsibilities of management Under the agreement, the primary responsibility of management is to provide and maintain safe and healthy workplaces and work methods, including the provision of adequate protective clothing and equipment. Other responsibilities include:

• to consult with unions and employees in discharging OH&S obligations; • to develop and promulgate OH&S policies and guidelines on safe work practices; • to provide sufficient financial and other resources to implement and maintain OH&S responsibilities; and • to provide the information, instruction, training and supervision necessary to enable employees, including

management and supervisory staff, to perform their work in a safe and healthy manner.

Responsibilities of supervisors Under the agreement, the primary responsibility of supervisors is to ensure that the department’s legal obligations for OH&S are met in workplaces or systems of work under their control. Other responsibilities

include: • to consult with their staff, health and safety representatives and OH&S staff on health and safety measures; and • to arrange for their staff to be appropriately instructed and trained in safe and healthy work practices and

procedures.

156

Appendix 10

Occupational Health & Safety

Responsibilities a f employees

Under the agreement, the primary responsibility of employees is to take all reasonably practicable steps to ensure that they do not take any action, or omit to take any action, that may create a risk, or increase an existing risk, to their health and safety at work or to the health or safety of other persons at or near their workplace. Other

responsibilities include:

• to cooperate with management in fulfilling management’s OH&S obligations; • to adopt safe work practices at all times while at work, in accordance with all relevant instructions and procedures; and • to use, as required and in the appropriate manner, the personal protective clothing and equipment that is

supplied and appropriate for the task.

Responsibilities o f unions

Under the agreement, the primary responsibility of unions is to cooperate with, and actively assist, management in achieving the aims of the DAS OH&S policy and agreement. Other responsibilities include:

• to participate on OH&S committees at all levels; • to advise management of OH&S matters of concern, to provide advice on such matters, and to jointly develop preventive strategies for resolving problems; and • to encourage members to follow agreed safe work practices and procedures.

Designated w ork grou ps

The agreement sets out a process and criteria for the establishment and review of designated work groups (DWGs), including consultation with involved unions.

DWGs have been established covering most workplaces in DAS. Establishment of DWGs covering those workplaces not presently covered by a DWG is a continuing process.

Health m id safety representatives

The agreement provides for one health and safety representative (HSR) and one deputy HSR to be elected or selected for each DWG, in consultation with involved unions. It also sets out the specific rights and powers of the representatives, and requirements for training.

HSRs have been elected or selected in most DWGs that have been established in DAS. Election or selection of HSRs in other DWGs is a continuing process. During 1993-94, however, some difficulties were experienced in getting the unions concerned to conduct the required elections.

Health a n d safety committees

In accordance with the agreement, a three-tier OH&S committee structure has been established by the department, comprising: • a departmental committee;

• national and/or regional committees in each subprogram; and • local workplace committees.

The departmental committee — known as the DAS OH&S Policy Committee — is a committee of the department’s National Consultative Council (NCC) comprising an equal number of management and union representatives. Its primary role is to develop and review policies and guidelines on particular OH&S topics for implementation throughout the department, and to advise the Secretary and the NCC on policy issues concerning

the health and safety of DAS employees. It meets every three months, with detailed work and discussions being undertaken between each meeting by a working party of the committee. Its activities are coordinated by the Employee Relations and Management Branch in the Corporate Resources Division.

Each subprogram is required to establish a national level OH&S committee, comprising an equal number of management and union representatives. The primary role of these committees is to develop procedures for implementing at the subprogram level the OH&S policies and guidelines developed by the DAS OH&S Policy Committee. Subprograms may also establish regional committees at the State and Territory level.

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Local workplace OH&S committees have been established throughout the department on an office, establishment or other agreed basis covering one or more DWGs, comprising an equal number of management and union representatives and including the health and safety representative(s) for the DWG(s) concerned. Functions of these committees include: • to assist in the development, implementation and review of appropriate work practices and procedures to

safeguard the continued health and safety of employees; • to facilitate cooperation between local management and employees on OH&S matters; • to investigate accidents and dangerous occurrences, and to recommend and implement appropriate remedial measures; • to investigate complaints and disputes relating to OH&S matters; • to help local management disseminate relevant OH&S information; and • to devise and review OH&S education and training programs, including induction training.

DAS OH&S P o lic y C om m ittee — sig n ifica n t a ctivities d u rin g 1993-94

Throughout 1993-94, the DAS OH&S Policy Committee (see ‘Health and safety committees’ above) has continued its primary task of policy development and review. The following new policies were approved by the committee during the year:

• Clean Air • Chromate Hazards • Critical Incidents • Occupational Dermatitis

Work is continuing on the development of a number of other new and revised policies. The committee is also oversighting the development of an OH&S training manual for the department, incorporating separate modules for staff and supervisors.

Other significant activities of the committee during the year are reported briefly below.

R eview o f the D A S O H & S Agreement

A clause in the DAS OH&S Agreement, which formally came into operation in October 1992, provides that it be reviewed after 12 months.

As a first step in the review of the agreement, the committee conducted separate surveys of staff and subprogram managers in March 1994. The purpose of the surveys was to assess, from both management and staff perspectives, the extent of compliance with the agreement (including the establishment of designated work groups, health and safety representatives, and local OH&S committees), and the general awareness and effectiveness of OH&S policies and practices across the department. It would also give staff and subprogram

would then be taken into account when reviewing the agreement itself.

Compilation and analysis of the results of the surveys of staff and subprogram managers had not been completed as at the end of June 1994. The process of reviewing the agreement is continuing.

W orkplace inspections

In conjunction with each three-monthly meeting, union members of the committee conduct an inspection of a selected workplace to assess the standard of OH&S at the workplace, including the establishment and operation of DWGs, HSRs and local OH&S committees and compliance with relevant legislation, standards, codes of

practice, DAS OH&S policies, etc. Written reports of the inspections, including any identified concerns, are subsequently provided to the relevant senior management for appropriate action as necessary.

Such inspections of workplaces conducted during 1993-94 included: • the Asset Services’ Operations Centre at Greenslopes Repatriation General Hospital in Brisbane; • the Australian Government Publishing Service’s Instant Print and Copy Centre at Belconnen in Canberra; and • the Asset Services’ Operations Centre at Fyshwick in Canberra.

managers the opportunity to submit any general comments, concerns, and/or suggestions they may have concerning OH&S in their workplaces particularly and in the department generally. The results of the sur

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Appendix 11

Glossary of acronyms

ACS A u stralian C onstruction Services

ADF A u stralian D efen ce Force

ADR A u tom ated D ata Processing

AEM A ustralian E state M an ag em en t

AFP A u stralian Federal Police

AGAL A ustralian G overnm ent Analytical

L a b o rato ries

AGD8 A u stralian G eographic D ata Base

AG PS A u stralian G overnm ent Publishing S erv ice ANAO A ustralian N ational Audit Office AOSS A ustralian O perational S up po rt

S erv ices

APG A u stralian P roperty Group

APPRAIS A ustralian Property Portfolio Review & Information System s APS A ustralian Public Service

ASIS A ustralian S e c re t Intelligence Service

ASL A verage Staffing Level

ASO A dm inistrative Service Officer ATO A ustralian Tax Office

ATSIC Aboriginal & Torres S trait Islander Commission AUSLIG A ustralian Surveying & Land Inform ation Group AVO A ustralian V aluation Office

BSTA B usiness Services Trust A ccount

CAA Civil Aviation Authority CAIS C entre for A boriginal and Islander

S tu d ies

CEO Chief Executive Officer

CIP C ontinuous Im provem ent Program

CPSU C om m onw ealth Public S ecto r Union COTS C orporate O bligations Tracking System CPA C om m onw ealth Public A ccount CRF C on so lidated R even ue Fund

CSO com m unity service o bligations

CSP Com mercial S up po rt Program

DAC D epartm ental Audit Com m ittee DASCEM DAS C entre for Environm ental M a n a g e m e n t

DEET D ep artm en t of Em ploym ent, Education & Training DMAC DAS M ain te n a n c e Approval Centre DSS D epartm ent of Social Security

DSTO D efen ce S cien ce & Technology

O rg an isatio n

DVA D epartm ent of V eteran s' Affairs

DW G d e sig n a te d w ork group

o Equal Em ploym ent Opportunity

EFG Environm ental Futures Group

FTE Full-Time Equivalent

FCU Fraud Control Unit

FOI Freedom of inform aton

GAA G raduate A dm inistrative A ssistan t

GBE G overnm ent B usiness E nterprise

GIS G eographic Inform ation S ystem s

GMAC G enetic M anipulation Advisory Committee GONG Global O scillation N etw ork Group GOSIP G overnm ent Open S ystem s

In terco nn ect Profile

GPS Global Positioning S ystem s

HF High F requency

HSR h ealth an d sa fe ty re p re se n ta tiv e

ID Industrial D em ocracy

IDC Inter D epartm ental Com mittee

IPS Ionospheric Prediction Service

IT Inform ation Technology

IYF International Y ear of th e Family

IYW IP In tern atio nal Y ear of th e W orld 's

In d ig eno us People

JAPSTC Jo in t A ustralian Public Service Training Council JCPA Jo in t Parliam entary Com m ittee on Public A ccounts

KRA Key R esult Area

LAA Lands Acquisition Act 1898 MCGIA M inisterial Com m ittee on Government Inform ation & Advertising NAISDA N ational Aboriginal & Islander Skills

D evelopm ent A ssociation

160

A p p e n d ix 11 Glossary o f acronym s

NASA N ational A ero n au tics & S p a c e

A dm inistration

NCC N ational C on su ltative Council

NOMAD N ation al O rg an isatio n al M a n a g e m e n t

D a ta b a s e

NSB non s ta tu to ry body

OGIA Office of G overnm ent Inform ation &

A d vertising

OH&S O ccupational H ealth & S a fe ty OPG O v e rse a s P ro perty Group

OTH O v er-T h e-H o rizo n

PAP Property A d ju stm en t Program

PBMS Portfolio B udget M e a su re s S ta te m e n ts PR&A P erform ance R eview & A udit

PRTA Property R ation alisatio n T rust A ccount PSA Prices S urveillan ce A uthority

PSU Public S erv ice Union

QA Q uality A ccred itario n

RCIADIC Royal C om m ission into A boriginal D eath s in C ustody RBC R entals Booking C entre

SES Sen io r Executive S ervice

SOG Sen io r Officer G rade

TQS Total Q uality Service

TSG T ran sp o rt & S to ra g e Group

TWU T ra n sp o rt W o rk ers' Union

VOIS V aluation Office Inform ation System

161

Addresses — DAS Executive, business units and divisions

DAS Executive

Floor 6 West, 111 Alinga St Canberra City ACT 2601 PO Box 1920 Canberra City ACT 2601 Phone: (06) 275 3000 Fax: (06)275 3819

Business Services P r o g r a m

Asset Services

C e n t r a l O f f ic e

470 Northboume Avenue Dickson ACT 2602 POBox 111 Dickson ACT 2602 Phone: (06)243 6111 Fax: (06) 243 6343

New South Wales Zenith Centre Tower A 821 Pacific Highway Chats wood NSW 2067

PO Box 5373 West Chatswood NSW 2057 Phone: (02)414 7000 Fax: (02)414 7014

Victoria/Tasmania Casselden Place 2 Lonsdale Street Melbourne Vic 3000 PO Box 45 Collins Street East

Melbourne Vic 3000 Phone: (03) 285 6666 Fax: (03) 285 6800

Queensland 313 Adelaide Street Brisbane Qld 4000 GPO Box 1381 Brisbane Qld 4001 Phone: (07) 233 7011 Fax: (07) 233 7416

South Australia 209-217 Wakefield Street Adelaide SA 5000 PO Box 1 Bundle Mall SA 5000 Phone: (08) 237 7855 Fax: (08) 237 7822.

Western Australia 33 Abcmethy Road Belmont WA 6104 PO Box 798 Cloverdale WA 6105 Phone: (09) 479 9500 Fax: (09) 479 1485

Northern Territory 41 Bishop Street Winnellie NT 0820

162

Addresses — D AS businesses and divisions

PO Box 36956 Winnellie NT 0821 Phone: (089) 80 0531 Fax: (089) 80 0502

Australian Capital Territory 3-5 Geelong Street Fyshwick ACT 2600 PO Box 1505 Fyshwick ACT 2609 Phone: (06) 285 7444 Fax: (06) 285 7555

Australian Construction Services

Central O f f ic e

470 Northboume Avenue Dickson ACT 2602 PO Box 111 Dickson ACT 2602 Phone: (06) 243 6111 Telex: 62441 Fax: (06) 243 6435

New South Wales 15 Help Street Chatswood NSW 2067 Locked Bag 10 PO Chatswood NSW 2067 Phone: (02)414 7000 Telex: 121337 Fax: (02)414 7018

Victoria Casselden Place 2 Lonsdale Street Melbourne Victoria 3000 Phone: (03) 285 6666 Fax: (03) 285 6254

Queensland 313 Adelaide Street Brisbane Qld 4000 GPO Box 1381

Brisbane Queensland 4001 Phone: (07) 233 7011 Telex: 40751 Fax: (07) 229 5432

South Australia Capita Centre, 10-20 Pulteney Street Adelaide SA 5000 GPO Box 2052 Adelaide SA 5001 Phone: (08)228 6211 Telex: 82125 Fax: (08) 228 6396

Western Australia Sheraton Court 207 Adelaide Terrace East Perth WA 6001 PO Box 6193

East Perth WA 6004 Phone: (09) 326 9222 Telex: 92260 Fax: (09)221 1890 Tasmania

Floor 4, Continental Building 162 Macquarie Street Hobart Tas 7000 GPO Box 813H

Hobart Tas. 7001 Phone: (002) 20 5011 Telex: 58270

Fax: (002) 23 4870

Northern Territory MLC Building 81 Smith Street Darwin NT 0800 Locked Mail Bag 51

Darwin NT 0801 Phone: (089) 80 0511 Telex: 85009

Fax: (089) 80 0203

Australian Capital Territory Sirius Building Furzer Street Phillip ACT 2606 Phone: (06)281 9111 Telex: 62022 Fax: (06)281 9652

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Australian Government Analytical Laboratories

C e n t r a l O f f ic e

Level 2, Churches Centre Belconnen ACT 2616 PO Box 65 Belconnen ACT 2616 Phone: (06) 252 4923 Fax: (06)252 4981 New South Wales

1 Suakin Street Pyruble NSW 2073 PO Box 385 Pymble NSW 2073 Phone: (02)449 0111 Fax: (02) 449 1653

Victoria 51-65 Clarke Street South Melbourne Victoria 3205 Phone: (03) 685 1777 Fax: (03) 685 1788

Western Australia 3 Clive Road Cottesloe WA 6011 PO Box 83 Cottesloe WA 6011 Phone: (09) 384 1511 Fax: (09) 384 1132

South Australia 338-340 Tapleys Hill Road Seaton SA 5023 Phone: (08) 353 9888 Fax: (08) 353 9800

Tasmania Channel Highway Kingston Tasmania 7050 PO Box 84 Kingston Tasmania 7051 Phone: (002) 29 1755 Fax: (002) 29 2836

Australian Government Publishing Service

C e n t r a l O f f ic e

Government Printing Office Building Wentworth Avenue Kingston ACT 2604 GPO Box 84 Canberra ACT 2601 Phone: (06) 295 4411 Fax: (06) 295 4455

AGPS Southern Region Cnr Fallon and Phoenix Streets Brunswick Victoria 3056 PO Box 263

Brunswick Victoria 3056 Phone: (03) 389 6900 Fax: (03) 387 3606

C o m m o n w e a l t h G o v e r n m e n t B o o k s h o p s

New South Wales Shop 24 Horwood Place (off Macquarie Street) Parramatta NSW 2150 Phone: (02) 893 8466 Fax: (02) 893 8213 32 York Street Sydney NSW 2000 Phone: (02) 299 6737 Fax: (02) 262 1219

Victoria 347 Swanston Street Melbourne Victoria 3000 Phone: (03) 663 3010 Fax: (03) 663 4840

Queensland Shop 10, City Plaza Adelaide and George Sts Brisbane Queensland 4000 Phone: (07) 229 6822 Fax: (07)229 1387 277 Flinders Mall Townsville Queensland 4148 Phone: (077) 21 5212 Fax: (077) 21 5217 Free Call (008) 80 5896

164

Addresses — D AS businesses and divisions

Western Australia 1st Floor, Albert Facey House Forrest Walk 469 Wellington Street Perth WA 6000 Phone: (09) 322 4737 Fax: (09)481 4412

South Australia Level 3 Myer Centre Rundle Mall Adelaide SA 5000 Phone: (08)231 0144 Fax: (08)231 0135

Tasmania 31 Criterion Street Hobart Tasmania 7000 Phone: (002) 34 1403 Fax: (002) 34 1364

Australian Capital Territory 70 Alinga Street Canberra City ACT 2601 Phone: (06)247 7211 Fax: (06) 257 1797

80 Collins Street Melbourne Victoria 3000 Phone: (03) 653 8385 Reprobation Hospital IPCC Banksia Street Heidelberg West Victoria 3081 Phone: (03)496 2111 Powcrprint IPCC Wing 3 Lower Administrastive Building SECV Morwell Victoria 3840 Phone: (051) 353 891 Fax: (051)353 653

Queensland Brisbane IPCC 70 Robertson Street Fortitude Valley Queensland 4006 Phone: (07) 252 5300 Fax: (07) 252 1902 Qld Health IPCC Floor 12 Health Building

147 Charlotte Street Brisbane Queensland 4006 Phone: (07) 234 0989 Fax: (07)221 0951

Insta nt P r in t a n d C o p y C e n t r e s

Victoria AGPS Melbourne IPCC Sub Basement 29 Market Street Melbourne Victoria 3000 Phone: (03) 691 1329 Fax: (03)691 1349

Secprint AGPS Copy Centre Lower Ground Floor 15 William Street Melbourne Victoria 3000

Western Australia Perth IPCC Beneficial House 12-14 St Georges Terrace Perth WA 6000 Phone: (09) 325 9121 Fax: (09) 325 9308

Cannington IPCC Ground Floor Australian Taxation Office Building Sutton Street

Cannington WA 6107 Phone: (09)268 6170

Phone: (03) 691 1329 Fax: (03) 691 1349 RAAF IPCC 420 Spencer Street West Melbourne Victoria 3003

Phone: (03) 320 1761 Fax: (03) 329 1787 Nauru House IPCC Level 36, Nauru House

South Australia Adelaide IPCC 81 Currie Street Adelaide SA 5000 Phone: (08)213 2257 Fax: (08)213 2255

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Department o f Administrative Services A n nual Report 1993-94

Tasmania Commonwealth Government Centre 188 Collins St Hobart Tasmania 7000 Phone: (002)241 Oil Fax: (002) 346 357

Australian Capital Territory Government Printing Office Building Wentworth Avenue Kingston ACT 2604 Phone: (06) 295 4565 Fax: (06) 295 4455 Civic IPCC Basement 1 51 Allara Street Canberra City ACT 2601 Phone: (06) 276 2456

Belconnen IPCC Wing 5, Basement Cameron Offices Belconnen ACT 2617 Phone: (06) 252 6830 Alinga St IPCC Floor 1, DAS Building

111 Alinga Street Canberra City ACT 2601 Phone: (06) 275 3052 Fax (06) 275 3819

Dickson IPCC 470 North bourne Avenue Dickson ACT 2602 Phone: (06) 243 6797 DSS IPCC Ground Floor Building A West DSS Tuggeranong Office Park Athllon Drive Tuiggeranong ACT 2900 Phone: (06) 244 6054

Fax: (06) 244 5891

Australian Property Group

H ead O f f ic e

470 Northboume Avenue Dickson ACT POBox 111 Dickson ACT 2602

Phone (06)243 1100 Fax (06) 243 6775

R e g io n a l o f f ic e s

New South Wales Zenith Centre Tower B 841 Pacific Highway Chatswood Locked Bag 40 Chatswood NSW 2067 Phone (02)414 8110 Fax (02)414 7019

Victoria Level 22 Rialto North Tower 525 Collins Street Melbourne Victoria GPO Box 250B Melbourne Victoria 3001 Phone (03) 649 4600 Fax (03)649 4951

Queensland Floor 12. 313 Adelaide Street Brisbane GPO Box 2474

Brisbane Queensland4001 Phone (07) 233 7700 Fax (07) 229 9376

Western Australia Floor 2, Mercantile Mutual Centre 190 St George’s Terrace Perth PO Box P1233 Perth WA 6001 Phone (09) 320 0400 Fax (09) 320 0499

South Australia Floor 8 Commonwealth Centre 55 Currie Street Adelaide PO Box 1263 Adelaide SA 5001 Phone (08) 213 2699 Fax (08) 213 2635

166

Addresses — D AS businesses and divisions

;Townsville Floor 2 Commonwealth Centre Cnr Walker & Stanley Streets Townsville Queensland

PO Box 1269 Townsville Queensland 4810 Phone (077) 226 333 Fax (077) 713 188

Tasmania Floor 12 188 Collins Street Hobart Tasmania GPO Box 519E Hobart Tasmania 7001 Phone (002) 205 237 Fax (002) 204 028

Northern Territory Floor 7 TCG Centre 80 Mitchell Street Darwin NT GPO Box 927

Darwin NT 0801 Phone (089) 460 711 Fax (089)818 096

Australian Capital Territory Block C, Levels 1 and 2 Sirius Building Furzer Street Phillip ACT 2606

PO Box 1511 Woden ACT 2606 Phone (06) 281 9800 Fax (06) 281 9888

Australian Surveying & Land Information Group

Central O f f ic e

Scrivener Building Dunlop Court Fem Hill Park Bruce ACT 2617

PO Box 2 Belconnen ACT 2616 (06) 201 4201

Ex ec u t iv e

Scrivener Building Dunlop Court

Fem Hill Park Bruce ACT 2617 PO Box 2 Belconnen ACT 2616 (06) 201 4201

Australian Centre for Remote Sensing Don Gray Building Dunlop Court Fem Hill Park Bruce ACT 2617 PO Box 28

Belconnen ACT 2616 (06) 252 4411

Orroral Observatory Mount Orroral via Tharwa ACT 2620 F>0 Box 2

Belconnen ACT 2616 (06) 235 7285

AUSL1G REGIONAL OFFICES

Sydney Northbank Industrial Park 20-26 Nancarrow Avenue Meadowbank NSW 2112 PO Box 522

West Ryde NSW 2114 (02) 334 0000

Canberra Scrivener Building Dunlop Court Fem Hill Park

Bmce ACT 2617 PO Box 2 Belconnen ACT 2616 (06) 201 4201

Floor 5, Ellery House 280 Thomas Street Dandenong Vic. 3175 PO Box 608

Dandenong Vic. 3175 (03) 794 4511

Brisbane Level 6 313 Adelaide Street Brisbane Qld 4000

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GPO Box 1457 Brisbane Qld 4001 (07) 233 7600

Perth

2 Hawthorne Place Victoria Park WA 6100

Locked Bag 4002 Post Office Chatswood NSW 2057 Phone: (02)414 8500 Fax: (02)414 7009

Victoria

PO Box 544 Victoria Park WA6100 (09) 362 9444

Adelaide 7 Unley Rd Parkside SA 5063 PO Box 370 Unley SA 5061 (08) 213 2373

Level 12 2 Lonsdale Street Melbourne Victoria POBox 18108 Collins Street East Victoria 3000 Phone: (03) 285 7888 Fax: (03) 285 7850

Queensland

Hobart Floor 12 Commonwealth Government Centre 188 Collins Street Hobart Tas. 7000 GPO Box 519E

Hobart Tas. 7001 (002) 20 4432

Darwin

Survey House 14 Shepherd Street Darwin NT 0800 GPO Box 2299 Darwin NT 0801 (089)41 0222

Australian Valuation Office

C e n t r a l o f f ic e

Level 7 470 Northboume Ave. Dickson ACT 2602 GPO Box 1920 Canberra ACT 2601 Phone: (06)243 1051 Fax: (06) 243 1072

New South Wales Floor 9 Tower A Zenith Centre McIntosh Street Chatswood NSW 2067

Floor 12 Santos House 215 Adelaide Street Brisbane Queensland 4000

GPO Box 2432 Brisbane Queensland 4001 Phone: (07) 233 7800 Fax: (07) 229 5254

Western Australia 2 Hawthorne Place Burwood WA 6100 Phone: (09) 470 7100 Fax: (09)470 1752

South Australia Floor 9 West Commonwealth Centre 55 Currie Street Adelaide SA GPO Box 1263 Adelaide SA 5001 Phone: (08) 237 6746 Fax: (08) 237 6792

Tasmania Floor 2 54 Victoria Street Hobart Tasmania 7000 GPO Box 822H Hobart Tasmania 7001 Phone: (002) 20 4943 Fax: (002) 20 4538

168

Addresses — D A S businesses and divisions

Northern Territory 3rd Floor, MLC Building 81 Smith Street Darwin NT 0800 GPO Box 4346

Darwin NT 0801 Phone: (089) 46 0656 Fax: (089) 460 653

Australian Capital Territory Floor 5 Telecom House 490 Northboume Avenue

Dickson ACT 2602 PO Box 911 Dickson ACT 2602 Phone: (06)243 1103 Fax: (06) 243 1056

DAS Distribution N a t io n a l O f f ic e

169-171 Gladstone Street Fyshwick ACT 2609 Locked Bag 2 PO Fyshwick ACT 2609 Phone: (06) 275 3000 Fax: (06) 275 8961

New South Wales

44 Biloela Street Villawood NSW 2163 OI Box 326 Chester Hill NSW 2162 Phone: (02) 794 5909 Fax: (02) 794 5901

Oaklands PO Box 41 Oaklands NSW 2646 Phone: (060) 354 200

Fax: (060) 354 388

Victoria Beachley Street Tottenham 3012 Private Bag 6

Ascot Vale Victoria 3032

Phone: (03) 243 0333 Fax: (03) 243 0300

Queensland 158 Lindum Road Lytton Qld 4178 PO Box 166 Cannon Hioll Qld 4170 Phone: (07) 361 0999 Fax: (07) 361 0900

Townsville 113 Dalrymple Road Garbutt Queensland 4814 MC Box 5398 Townsville Queensland 4810 Phone: (077) 795 888 Fax: (077)251 112

Western Australia Mooro Drive Ml Claremont WA 6010 PO Box 137

Mt Claremont WA 6010 Phone: (09) 347 4111 Fax: (09) 347 4122

South Australia Lot 1004, Glenroy Street Athol Park SA 5012 PO Box 110

Kilkenny SA 5009 Phone: (08) 268 0598 Fax: (08)268 0515

Tasmania Pitcairn Street Glenorchy Tasmania 7010 PO Box 220

Glenorchy Tasmania 7010 Phone: (002)721 311 Fax: (002) 722 059

Australian Capital Territory

Dairy Road Fyshwick PO Box 655 Fyshwick ACT 2609 Phone: (06)202 5511 Fax: (06) 202 5696

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Department o f Administrative Services A n nual Report 1993-94

21 Gilmore Road Quean beyan NSW 2620 Phone: (06) 202 5707 Fax: (06) 202 5709

DASFLEET

N a t io n a l O f f ic e

169-171 Gladstone Street Fyshwick ACT 2609 Locked Bag No 1 Fyshwick ACT 2609 Phone: (06) 275 8981 Fax: (06) 275 8970

New South Wales

Level 10, 321 Kent Street Sydney NSW 2000 Locked Bag No 17

Queen Victoria Building Sydney NSW 2000 Phone: (02) 248 9102

Fax: (02) 248 9198

Victoria 299 Bridge St Port Melbourne Victoria 3207 PO Box 394 Port Melbourne Victoria 3207 Phone: (03) 644 3399 Fax: (03) 646 7043

Queensland 100 McLachlan Street Fortitude Valley Queensland 4006 PO Box 173 Fortitude Valley Queensland 4006 Phone: (07) 405 8100 Fax: (07) 252 9650

Townsville 113 Dairy mple Road Garbutt Queensland 4810 Box 5398 MC Townsville Queensland 4810

Phone: (077) 79 5888 Fax: (077)25 1112

Western Australia 113-125 Wellington Street Perth WA 6000 PO Box 6171 East Perth WA 6004 Phone: (09) 425 5624 Fax: (09) 425 5629

South Australia 210 Grote Street Adelaide SA 5000 Phone: (08)237 6513 Fax: (08) 237 6518

Tasmania 188 Collins Street Hobart Tasmania 7000 GPO Box 771H Hobart Tasmania 7001 Phone: (002) 20 5221 Fax: (002) 34 9698

Northern Territory Hudson Fysh Avenue Parap NT 0820 PO Box 39423 Winncllie NT 0821 Phone: (089)81 4711 Fax: (089) 81 5458

Australian Capital Territory Dairy Road Fyshwick ACT 2609 PO Box 7066 Canberra Mail Centre ACT 2610 Phone: (06) 202 5522 Fax: (06) 280 6439

Interiors Australia

Canberra Floor 4 470 Northboume Ave Dickson ACT 2602 PO Box 111 Dickson Act 2602 Phone: (06) 243 6302 Fax: (06) 243 6666

170

Addresses — D A S businesses and divisions

State M a n a g e r s

NSW Tower B, Level 20, Zenith Centre 821 Pacific Highway

Chatswood NSW PO Box 5095 West Chatswood NSW 2057 Phone: (02)414 7570 Fax: (02)414 7016

Victoria

PO Box 311 Woden ACT 2606 Phone: (06)281 9262 Fax: (06) 281 9742

Tasmania representation—State Manager, Australian Construction Services 188 Collins Street Hobart Tasmania 7000

GPO Box 813H Hobart Tasmania 7001 Phone: (002) 205 220 Fax: (002) 234 870

Floor 15, Casselden Place 2 Lonsdale Street Melbourne Victoria 3000 Phone: (03) 285 6759 Fax: (03) 285 6700

Northern Territory representation—State Manager, Australian Construction Services

MLC Building 81 Smith Street Darwin NT 0800

Queensland Floor 10, 313 Adelaide Street Brisbane Queensland 4000 GPO Box 1043

Brisbane Queensland 4001 Phone: (07) 233 7290 Fax: (07) 233 7202

Western Australia Sheraton Court 207 Adelaide Terrace East Perth W A 6004

PO Box 6214 East Perth WA 6892 Phone: (09) 326 9333

Fax: (09) 221 4828

South Australia Floor 9 10-20 Pulteney Street Adelaide SA 5000 GPO Box 2052

Adelaide SA 5001 Phone: (08) 228 6658 Fax: (08) 228 6324

Australian Capital Territory Floor 2, Sirius Building Furzer Street Phillip ACT 2606

LMB No 51 Darwin NT 0801 Phone: (089) 800 213

Fax: (089) 800 203 DAS Removals

National Office 71 Wentworth Avenue Kingston ACT 2604 Locked Bag No 4 Fyshwick ACT 2609 Phone: (06)295 4141 Fax: (06) 295 4644

ACT Dairy Road Fyshwick Box 655 PO Fyshwick ACT 2609

Phone: (06)202 5514 Fax: (06) 280 7365

New South Wales Jessie St Centre Commonwealth Offices 2-12 Macquarie Street

Parramatta NSW 2123 Locked Bag CC 40 Parramatta NSW 2123 Phone: (02) 893 5057

Fax: (02) 893 5064

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Department o f Administrative Services A nnual Report 1993-94

Queensland 107 Brunswick Street Fortitude Valley Queensland 4006 PO Box 140 Broadway Queensland 4006 Phone: (07) 252 5272 Fax: (07)257 1112

North Queensland

113 Dairymple Road Garbutt Queensland 4814 Box 5398 MC Townsville Queensland 4810 Phone: (077) 795 888 Fax: (077)251 112

Victoria The Mills Floor 1, West Wing 200 Arden Street North Melbourne Victoria 3051

Melbourne Mail Centre PO Box 14399 Melbourne Victoria 3000 Phone: (03) 320 4181 Fax: (03) 320 4100

South Australia 32 Audley Street Woodville Nth SA 5012 Private Bag No. 5 Woodville SA 5011 Phone: (08) 347 4301 Fax: (08) 347 4267

Western Australia 113-125 Wellington St East Perth WA 6004 PO Box 6171 East Perth WA 6892 Phone: (09) 425 5655 Fax: (09) 325 6007

Tasmania Floor 11, 188 Collins Street Commonwealth Offices Hobart Tasmania 7000 GPO Box 519E Hobart Tasmania 7001

Phone: (002) 20 5007 Fax: (002) 20 5004

Northern Territory 2 1/2 Mile Depot Hudson Fysh Ave Parap NT 0820 PO Box 39423 Winnellie NT 0821 Phone: (089) 814 329 Fax: (089) 815 458

Business Support

C o m m e r c ia l T r e a s u r y & M a r k e t in g

Floor 5 and 7, 470 Northboume Ave Dickson ACT 2602 Phone: (06) 243 6638

Fax: (06) 243 6842

South Australia Floor 9, Commonwealth Centre 55 Currie St Adelaide SA 5000 GPO Box 1263 Adelaide SA 5001 Phone: (08) 237 6802 Fax: (08) 237 6804

A u s t r a l ia n O p e r a t io n a l S u p p o r t S e r v ic e s

North Tower Floor 18, Rialto Building 525 Collins Street Melbourne Victoria 3000 PO Box 250B Melbourne Victoria 3001 Phone: (03) 649 4840 Fax: (03) 649 4841

New South Wales — Newcastle

Floor 1, 187 King Street Newcastle 2300 PO Box 475 Newcasde NSW 2300 Phone: (049) 295 014 Fax: (049) 292 316

New South Wales — Albury/Wodonga 1/5 Swift St Albury NSW 2640

172

Addresses — D AS businesses and divisions

Phone: (060)413 788 Fax: (060)412 248

Queensland GPO Box 920 Brisbane Queensland 4001 Phone: (07) 399 7659 Fax: (07)221 3819

Western Australia Sheraton Court 207 Adelaide Terrace Perth 6000 Phone: (09) 236 9400

Fax: (09) 325 7709

South Australia Commonwealth Centre 55 Currie Street Adelaide SA 5000 GPO Box 1263

Adelaide SA 5001 Phone: (08) 237 6803 Fax: (08) 237 6804

Australian Capital Territory Floor 6,470 Northbourne Avenue Dickson ACT 2602 Phone: (06) 243 1271 Fax: (06) 243 6140

DASCEM

Victoria Level 20, North Tower Rialto Building 525 Collins Street

Melbourne Victoria 3000 GPO Box 250B Melbourne Victoria 3001 Phone: (03) 649 4838 Fax: (03) 649 4895

Support Services

Central O ff ic e

470 Northbourne Avenue Dickson ACT 2602 PO Box 111 Dickson ACT 2602

Phone: (06)243 6111 Fax: (06) 243 6953

Personnel Services Phone: (06)243 6941 Fax: (06) 243 6953

Staff Development Phone: (06)243 6111 Fax: (06) 243 6938

Finance and General Phone: (02)414 8000 Fax: (02)414 7055

IT Services Phone: (06)243 6111 Fax: (06) 243 6360

IT Corporate Systems Phone: (06) 243 6111 Fax: (06) 243 6099 R e g io n a l O f f ic e s

New South Wales Level 2 15 Help St Chatswood NSW 2067 Phone: (02)414 8000

Fax: (02)414 7006

Victoria Level 11 Casselden Place 2 Lonsdale St

Melbourne Victoria 3002 Phone: (03) 285 6940 Fax: (03) 285 6963

Queensland Floor 11,313 Adelaide Street Brisbane Queensland 4001 Phone: (07) 233 7900

Fax: (07)221 3819

South Australia 10-20 Pulteney Street Adelaide SA 5000 Phone: (08) 228 6501 Fax: (08) 228 6405

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Department o f Administrative Services A n n u a l Report 1993-94

Western Australia Sheraton Court 207 Adelaide Terrace East Perth Perth 6000 Phone: (09) 326 9264 Fax: (09) 325 9718

Tasmania Floor 11 Commonwealth Government Centre 188 Collins Street

Hobart Tasmania 7000 Phone: (002) 205 520 Fax: (002) 349 443

Northern Territory

Floor 7 TCG Centre 80 Mitchell Street Darwin NT 0800 Phone: (089) 460 726 Fax: (089) 818 096

Property Rationalisation DAS Distribution 169-171 Gladstone St Fyshwick ACT 2609 Phone: (06) 275 8936 Fax: 275 8961

Government Services Program

Ministerial & Parliamentary Services C e n t r a l o f f ic e

111 Alinga Street Canberra ACT 2601 GPO Box 1920 Canberra ACT 2601 Phone: (06) 275 4000 Fax: (06) 275 3830

Western Australia Commonwealth Parliament Offices Floor 39, 2 The Esplanade Perth WA 6000 Phone: (09) 325 5994

South Australia

New South Wales

Commonwealth Parliament Offices Floor 11, ANZ McCaughan House 56-70 Phillip Street Sydney NSW 2000 Phone: (02) 247 8282

Commonwealth Parliament Offices Floor 13 100 King William Street Adelaide SA 5000 Phone: (08) 213 2001

Tasmania

Victoria

Ministerial Offices 4 Treasury Place Melbourne Victoria 3000

Floor 12, Commonwealth Government Centre 188 Collins Street Hobart Tasmania 7000 Phone: (002)20 4179

Phone: (03) 650 2299

Queensland

Commonwealth Parliament Offices Floor 12,295 Ann Street Brisbane Queensland 4000 Phone: (07) 864 8993

Northern Territory TSG Building 80 Mitchell Street Darwin NT 0811 Phone: (089) 46 0727

Ionospheric Prediction Service Central Office Level 4

174

Addresses — D A S businesses and divisions

15 Help St Chatswood NSW 2067 PO Box 5606 West Chatswood NSW 2057 Phone: (02)414 8334

Australian Estate Management

H ead O f f ic e

Floor 2 West 111 Alinga Street Canberra ACT 2600 GPO Box 1920 Canberra ACT 2601 Phone: (06) 2753000

Fax: (06) 2753723

New South Wales Region All Pitt Street Level 18 Sydney NSW 2000 Locked Mail Bag 3, PO

Haymarket NSW 2000 Phone: (02) 2013140 Fax: (02)2123115

Victoria Region Level 23 Rialto Building, North Tower 525 Collins Street

Melbourne Vic 3001 GPO Box 250B Melbourne Vic 3001 Phone: (03) 6494600

Fax: (03) 6294808

Queensland Region Floor 6 313 Adelaide Street Brisbane Qld 4001 GPO Box 1292

Brisbane Qld 4001 Phone: (07) 2337777

Fax: (07)2213389

North Queensland Region Commonwealth Government Centre Level 2 Cnr Walker & Stanley Streets Townsville Qld 4810

PO Box 1269 Townsville Qld 4810 Phone; (077) 226344 Fax: (077)213220

Western Australia Region 6th Floor 12-14 St George’s Terrace Perth WA 6000 PO Box 6127 East Perth WA 6892 Phone: (09)220 2318 Fax: (09)2214582

South Australia Region Floor 8, CPS Building 42 Waymouth St Adelaide SA 5000

PO Box 1263 Adelaide SA 5001 Phone: (08) 2132333 Fax: (08)2132323

Tasmania Region 188 Collins Street Ground Floor Stage 2 Hobart Tas 7000 GPO Box 539

Hobart Tas 7001 Phone: (002) 205030 Fax: (002) 204100

Northern Territory Region 7th Floor TCG Centre 80 Mitchell Street

Darwin NT 0801 GPO Box 321 Darwin NT 0801 Phone: (089) 460711

Fax: (089) 460718

Australian Capital Territory Region

Ground Floor Block C Sirius Building Furzer Street Phillip ACT 2606

PO Box 280 Woden ACT 2606

175

Department o f Administrative Services A n nual Report 1993-94

Phone: (06)2819111 Fax: (06)2819783

Overseas Property Group

C e n t r a l O f f ic e

111 Alinga Street Canberra City ACT 2600 GPO Box 1920 Canberra City ACT 2601 Phone: (06) 275 3380 Fax: (06) 249 7553

COMCAR

N a t io n a l O f f ic e

169-171 Gladstone Street Fyshwick ACT 2609 Locked Bag # 3 Fyshwick ACT 2609 Phone: (06) 275 8901 Fax: (06) 275 8910

New South Wales Level 7 235 Pyrmont Street Ultimo NSW 2007 Locked Bag # 7 Pyrmont NSW 2009 Phone: (02) 522 1488 Fax: (02) 660 3354

Victoria 409 Spencer Street West Melbourne Vic 3003 POBox 14189

Melbourne Mail Centre Vic 3000 Phone: (03) 320 4022 Fax: (03) 328 1302

Queensland 12 Gordon Street Newstead Qld 4006 PO Box 173 Fortitude Valley Qld 4006 Phone: (07) 252 8315 Fax: (07) 252 5137

Townsville 113 Dairy mple Road Garbutt Qld 4814 Phone: (077) 79 5888 Fax: (077)25 1112

Western Australia 113-125 Wellington Street East Perth WA 6004 PO Box 6022 East Perth WA 6892 Phone: (09) 425 5643 Fax: (09) 325 7094

South Australia 99 Henley Road Mile EndSA 5031 Phone: (08) 234 2134 Fax: (08) 238 0801

Tasmania 188 Collins Street Hobart Tas 7000 Phone: (002) 205 256 Fax: (002) 349 698

Northern Territory Hudson Fysh Ave Parap NT 0820 Phone: (089) 812 746 Fax: (089) 815 458

Australian Capital Territory

Building 7 Newcastle Street (North) Fyshwick ACT 2609 Phone: (06) 280 1212 Fax: (06)280 6230

176

Addresses — DAS businesses and divisions

Purchasing & Information Program

Purchasing Australia

National Office 111 Alinga St Canberra City ACT 2601 GPO. Box 1920 Phone: (06) 275 3000 Fax: (06) 275 3550 Aust. Capital Territory

51 Wentworth Avenue Kingston ACT 2604 GPO Box 1920 Canberra ACT 2601 Phone: (06) 295 4100 Fax: (06) 295 4913 New South Wales

Level 7, Tower A, Zenith Centre 821 Pacific Highway Chatswood NSW 2067

Locked Bag No 23 Chatswood NSW 2067 Phone: (02)414 8000 Fax: (02)414 8259

Victoria Level 18, North Tower, Rialto Building 525 Collins Street

Melbourne Vic 3000 GPO Box 250B, Melbourne Vic 3001 Phone: (03) 649 4600 Fax: (03) 614 6600

Queensland Level 6, Block B Commonwealth Government Offices 232 Adelaide Street

Brisbane QM4000 GPO Box 2456, Brisbane Qld 4001 Phone: (07) 233 7900 Fax: (07) 229 1464

South Australia Floor 9 East, Commonwealth Centre 55 Currie Street Adelaide SA 5000 GPO Box 1263, Adelaide SA 5001 Phone: (08) 213 2222 Fax: (08)213 2668

Western Australia 12-14 St George’s Terrace Perth WA 6000 GPO Box P1233,

Perth WA 6001 Phone: (09)220 2341 Fax: (09) 221 3625

Tasmania Floor 5 Commonwealth Government Centre 188 Collins Street Hobart Tas 7000

GPO Box 561-F, Hobart Tas 7001 Phone: (002) 20 5011

Fax: (002) 23 6200

Northern Territory Floor 1 TCG Centre 80 Mitchell Street Darwin NT 0800 All Mail to: GPO Box 927, Darwin NT 0801 Phone: (089) 46 0746 Fax: (089)41 0831

Townsville Floor 2 Commonwealth Centre Cnr Stanley & Walker Streets Townsville Qld 4810

GPO Box 1269 Townsville Qld 4810 Phone: (077)712 029 Fax: (077)713 461

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Department o f Administrative Services A n n u a l Report 1993-94

Office of Government Information & Advertising

H ead O f f ic e

Floor 2, 111 Alinga Street Canberra ACT 2601 GPO Box 2205 Canberra ACT 2601 Phone: (06) 275 4322 Fax: (06) 275 4073, (06) 275 4069

Sydney Office Floor 8, 153 Walker Street North Sydney NSW 2060

PO Box 1488 North Sydney NSW 2059 Phone: (02)922 1188 Fax: (02) 955 7234

Melbourne Office Level 21, North Tower Rialto 525 Collins Street Melbourne Victoria 3000 GPO Box 1995S

Melbourne Victoria 3001 Phone: (03) 649 4970 Fax: (03)614 8271

Corporate Management Program

Corporate Policy & Government Relations Floor 5 East, 111 Alinga St Canberra City ACT 2601

PO Box 1920 Canberra City ACT 2601 Phone: (06) 275 3939 Fax: (06) 275 3645

Corporate Development

C u s t o m e r F o c u s & Q u a l it y M a n a g e m e n t

Floor 7,470 Northhoumc Avenue Dickson ACT 2602 PO Box 111 Dickson ACT 2602 Phone: (06) 243 6103 Fax: (06) 243 6772

R e g io n a l C o o r d in a t io n

New South Wales Level 18, Tower 13 Zenith Centre 821-841 Pacific Highway Chatswood NSW 2067 Phone: (02)414 7333 Fax: (02)414 7021 Regional Service Centre Floor I Customer Service Centre

187- 193 King Street Newcastle NSW 2300 Phone: (049) 295 014 Fax: (049)292 316 Queensland

Floor 11 313 Adelaide Street Brisbane Queensland 4000 GPO Box 920 Brisbane Queensland 4001 Phone: (07) 233 7902 Fax: (07) 221 3819

Western Australia Sheraton Court 207 Adelaide Terrace East Perth WA 6004 Phone: (09) 326 9400 Fax: (09) 325 7709

South Australia Floor 9 Commonwealth Centre 55 Currie Street Adelaide SA 5000 Phone: (08) 237 6800 Fax: (08)237 6804

Tasmania Floor 5, Commonwealth Government Centre

178

Addresses — D AS businesses and divisions

188 Collins Street Hobart Tasmania 7000 Phone: (002) 20 5520 Fax: (002)204083

Commonwealth Grants Commission

Northern Territory Cypress Court

5 Torrens Street Canberra ACT 2601

Floor 7, TCG Centre 80 Mitchell Street Darwin NT 0800 Phone: (06) 275 3000

Fax: (06) 275 8021 GPO Box 927 Darwin NT 0801 Phone: (089) 460 726 Fax: (089) 818 096

Australian Capital Territory Ground Floor. Block A Sirius Building, Fumer Street Phillip ACT 2606 Phone: (06) 281 9402 Fax: (06)281 9411

Corporate Resources Floor 6 East 111 Alinga Street Canberra City ACT 2601 Phone: (06) 275 3484 Fax: (06) 275 3613

Awards & National Symbols Branch Floor 5 West, 111 Alinga Street Canberra, ACT GPO Box 1920 Canberra ACT 2601 Phone: (06) 275 3914 Fax: (06) 275 3629

Performance Review & Audit Floor 2W, 111 Alinga Street Canberra ACT 2601 Phone: (06) 275 3860 Fax: (06) 275 3220

179

Index

AAP Telecommunications 90 Aboriginal and Torres Strait Islander Recruitment and Career Development Plan 123 Access and Equity 10 ADF Spectrum Management System 71 Affirmative Action Purchasing Policy 127 AGB McNair 89 AGPS 125 Asset Services 14, 125 Audit Services Section 106 AUSLIG 125 AUSPIC 91 Australian and New Zealand Global Maritime

Distress and Safety Systems 71 Australian Archives 1, 127 Australian Committee for Training Curriculum 88 Australian Construction Services 18 Australian Cultural Development Office 1, 102, 127 Australian Defence Force 71 Australian Electoral Commission vii, 5 Australian Estate Management 73 Australian Government Agenda for Families 127 Australian Government Analytical Laboratories 21 Australian Government Publishing Service 25 Australian Government Purchasing Policies —

Buying Our Future 88 Australian Industrial Relations Commission 81 Australian National Audit Office 95 Australian Property Group 29 Australian Property Portfolio Review and

Information Systems (APPRAIS) 32 Australian Valuation Office 38 AVO Productivity Agreement 41 Awards and National Symbols 101 Business Support 54 Canadian Government 90 Centenary House Leasing Inquiry 7, 101 Civil Aviation Authority 71 Cocos (Keeling) Islands 111 COMCAR 8, 125 Commercial Marketing 55 Commercial Treasury 55 Commission of Inquiry into Australian Secret

Intelligence Service 7, 113 Committee of Inquiry into Defence and Defence- related Awards Australian system of honours and awards 8

Commonwealth Charter of Printing and Publishing Responsibilities 1989 25 Commonwealth Grants Commission 5, 109

Commonwealth Grants Commission Act 1973 112 Commonwealth Procurement Competency Standards 88 Commonwealth Public Sector Union 81 CommTel 89, 90 community service obligations 22 Corporate Communications Branch 101 Corporate Development 96,104 Corporate Management Program 96 Corporate Obligations Tracking System 103 Corporate Policy & Government Relations 96 Corporate Policy Branch 101 Corporate Resources 55, 96, 98 Council of Small Business Organisations of

Australia Ltd. 90 Crosio, the Hon. Janice MBE MP 1 Cross Cultural Awareness Program 125 Customer Focus & Quality Management 104 Customer Focus Task Force 104 Customer Satisfaction Index

DASFLEET 47 DAS Board 1 DAS Board of Management 133 DAS Corporate Plan 8 DAS Distribution 42, 125 DAS EEO Committee 124 DAS Excellence Award 104 DAS Executive Committee 1

DAS Goals 1 DAS Mission 1 DAS OH&S Agreement 158 DAS OH&S Policy Committee 158 DAS PAK 102 DAS Removals 51 DAS Values 1 DASCEM 57 DASFLEET 44 DASNEWS 103, 127 Decade of the World’s Indigenous People 127 Defence High Frequency Modernisation Project 71 Defence Science and Technology Organisation 71 Department of Communications and the Arts 1, 127 Department of the Arts and Administrative Services 1 Departmental Audit Committee 106 Disability Reform Package 95 ECO Office 32 EEO statistical data 124 Employee Relations & Management 98 Employee Relations and Management Branch 157

Enterprise Bargaining Agreement COMCAR 84

181

Department o f Administrative Services A n n u a l Report 1993-94

Environmental Futures Group 133 Equal Employment Opportunity 10 Equal Employment Opportunity Program 123 Finance Direction 25D 91 financial and staffing performance

ACS 19 AGAL24 AGPS 27 APG 30 Asset Services 16 AUSLIG 36 AVO 39 COMCAR 82 DAS Distribution 43 DAS Removals 52 DASFLEET 45 Interiors Australia 50 financial and staffing resources summary

AEM 74 Business Services 12, 113 Business Support 54 Commonwealth Grants Commission 110 Corporate Management Program 97 DAS aggregate 9 Government Services 64 IPS 69 Ministerial & Parliamentary Services 66 OGIA92 OPG 77 Property Rationalisation 61 Purchasing & Information 85 Purchasing Australia 88 Support Services 58 FOI s8

Asset Services 135 Australian Construction Services 135 Australian Estate Management 144 Australian Government Analytical

Laboratories 136 Australian Government Publishing Service 137 Australian Operational Support Services 142 Australian Property Group 138 Australian Surveying and Land Information

Group 137 Australian Valuation Office 139 Business Support 142 COMCAR 145 Commercial Treasury and Marketing 142 Corporate Development 146 Corporate Management Program 146 Corporate Policy & Government Relations

146

Corporate Resources 147 DAS Centre for Environmental Management 143 DAS Distribution 140

DAS Removals 142 DASFLEET 140 Interiors Australia 141 Ionospheric Prediction Service 144 Ministerial & Parliamentary Services 143 Overseas Property Group 145 Performance Review & Audit 148 Purchasing Australia 148 Support Services 139 Fraud Control Unit 11, 106 Freedom of Information (FOI) Act 1982 133

General Revenue Grant Relativities 1994 Update 111 GEODATA 37 Global Oscillation Network Group 71 Government & Legal Branch 101 Government Open Systems Interconnection Profile

148

Government Technology Productivity Gold Award 8, 83 Guide to the Government Marketplace 89 health and safety representative 157 House of Representatives Standing Committee on

Industry, Science and Technology 8 Human Resource Development & Deployment 98 imported foods inspection program 22 Industrial Supplies Office 90 Inquiry

House of Representatives Standing Committee on Industry, Science and Technology Australian Government Purchasing Policies 8, 88 Prices Surveillance Authority 27

Senate Standing Committee on Community Affairs Disability Reform Package consultancy 95 Inter-agency mobility 121 Interiors Australia 49 Internal Audit Unit 11 International Year of the Family 127 International Year of the World’s Indigenous People

127

International Year of Tolerance 1995 127 Ionospheric Prediction Service 69 IPS Charter 72

Jindalee Over-the-horizon Radar Network 71 Joint Australian Public Service Training Council 90 Key Result Areas AEM 74

Key Result Areas 1993-94 2 Lleonart review 95 Lobbyists’ Registration Scheme 146 Management and Technology Consulting 83 MCGIA 91 McMullan, Senator the Hon. Bob 1 Meet the Buyers Events 89 Mellors, John, Secretary 1

182

Index

Microsoft 90 Minimum Essential Emergency Network 71 Ministerial and Parliamentary Services 66 Mugford/Martin report 95 National Consultative Council 124, 133 National Film and Sound Archive 1

national residue survey 22 National Science and Technology Centre 1 National Training Board 88 NOMAD 58 objective

ACS 18 AEM 73 AGAL21 AGPS 25

APG29 Asset Services 14 AUSLIG 33 AVO 38 Business Services Program 12

Business Support 54 COMCAR 81 Commonwealth Grants Commission 109 Corporate Management Program 96

Corporate Resources 98 DAS Distribution 42 DAS Removals 51 DASFLEET 44

Government Services Program 64 Interiors Australia 49 IPS 69 Ministerial & Parliamentary Services 66 OGIA91 OPG 77 PR&A 106 Property Rationalisation 61 Purchasing Australia 87

Support Services 58 Occupational Health and Safety 156 Office of Government Information and Advertising 1, 91 OGIA 87

OH&S statistics 159 Ombudsman reports 11 Optus 90 Orroral Valley Observatory 36 Overseas Property Group 78 PE54 89 Performance Evaluation Section 106 performance indicators and results

ACS 19 AEM 74 AGAL 23 AGPS 28

APG 31 AUSLIG 35 AVO 40

COMCAR 82 Corp. Development 104 Corporate Resources 99 CP&GR 102

DASFLEET 46 Interiors Australia 49 IPS 70 Ministerial & Parliamentary Services 67 OGIA 92 OPG 78 PR&A 107 Purchasing Australia 88 Performance Review & Audit 96, 106 Period Contract Awareness Service 89 Podger, Andrew 1 Policy and Coordination Section 106 Political Exchange Program 67

Portfolio Finance & Corporate Planning 98 Price Waterhouse 24 Prices Surveillance Authority inquiry 27 Privacy Commissioner reports 11

Program structure 3 Property Rationalisation 61 Property Rationalisation Board 61

Property Rationalisation Trust Account 61 public interest product sales 37 Purchasing Australia 8, 87 Purchasing Review Task Force 88

Purchasing Training and Awareness 89 Regional Coordination 104 review AEM 75

AGAL 24 COMCAR 84 commercialisation 56 DAS Removals

information technology 51 Government Printing Office 26 Honours and Awards 102 OGIA 95

OPG 78 Purchasing Australia 90 Royal Australian Navy Test and Evaluation group 72 Royal Commission into Aboriginal Deaths in Custody (RCIADIC) 127 Sciacca, the Hon. Con MP 1 Seminar on Women in non Administrative Classifications 125 Social Justice 127 staff development activities 121 Staffing Adjustment Program 125 status of properties managed by PRTA 63 Support Services 58 Tanzer, Noel 1 Telecom 90 Telstra 71 Transport Workers Union 81

183

Department o f Administrative Services A n n u a l Report 1993-94

Valuation Office Information System 40 Vodac 90 Walker, the Hon. Frank QC MP 1 White Paper on Employment and Growth 8, 88 Women’s Desk Officer 128 workplace agreement 99

ACS 20 Asset Services 16 AUSLIG 35 COMCAR 8, 81 DAS Removals 52 DASFLEET 48 workplace agreements 8

184

A

AUSTRALIAN NATIONAL AUDIT OFF;

Centenary Hu 19 National Barton ACT 2!

our ref;

DEPARTMENT OF ADMINISTRATIVE SERVICES INDEPENDENT AUDIT REPORT

Scope

I have audited the financial statement of the Department of Administrative Services for the year ended 30 June 1994.

The statement comprises:

• Statement by the Departmental Secretary and the General Manager, Corporate Resources

• Operating Statement

• Statement of Assets and Liabilities

• Program Statement

• Statement of Transactions by Fund

• Statement of Cash Flows, and

• Notes to and forming part of the financial statement.

The Department’s Secretary and the General Manager, Corporate Resources are responsible for the preparation and presentation of the financial statement and the information contained therein. I have conducted an independent audit of the financial statement in order to express an opinion on it.

The audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statement is free of material misstatement.

Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statement, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion

whether, in all material respects, the financial statement is presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view of the Department which is consistent with my understanding of its financial position, its operations and its cash flows.

GPO Box 707 Canberra Australian Capital Territory 2601 Telephone (06) 203 7300 Facsimile (06) 203 7777

186

The audit report on the 1993-94 financial statements of DAS Interiors Australia, a sub­ program within the Business Services Trust Account, was qualified because non-budget client moneys which should have been held in a separate trust account were being paid into the Business Services Trust Account by DAS Interiors Australia. This matter is not material in terms of the Department’s financial statements.

The audit opinion expressed in this report has been formed on the above basis.

Qualification

Where payments are based upon data prepared by a computer, Finance Regulation 45A permits a certifying officer to indicate that payments may be properly made where approved system controls and accounting procedures have been employed. Payments made in this manner require the system controls and accounting procedures to be approved by the delegate of the Minister for Finance. When the computer system undergoes significant change it is

necessary for system controls and accounting procedures to be re-appraised and re-certified by the delegate of the Minister for Finance.

While an earlier system had been approved and certified, the present computer system used to generate rent payments to private lessors of Commonwealth occupied premises has not been certified although normal acceptance testing was undertaken. Significant changes in the

computer environment since the earlier certification rendered the earlier certification obsolete.

In addition, there was no evidence that the required assurance to the Certifying Officer on the operation of an approved system of controls was being provided.

Accordingly, based on the above information, I am of the opinion that the requirements of Finance Regulation 45A were not applied properly during 1993-94. However the audit work undertaken did not identify any inappropriate payments in the $540m paid via this computer system.

Qualified Audit Opinion

In accordance with sub-section 51(1) of the Audit Act, I now report that in my opinion:

• the financial statement:

- is in agreement with the accounts and records kept in accordance with section 40 of the Act

- is in accordance with the Financial Statement Guidelines for Departmental Secretaries (Accrual Reporting), and

- presents fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the information required by the Guidelines including the Department’s departmental and administered financial transactions and its cash flows for the year ended 30 June 1994 and departmental and administered assets and liabilities as at that date,

187

and,

• there were breaches of Commonwealth law as mentioned in the Qualification section above.

Allan Thompson Executive Director Australian National Audit Office

Canberra

18 October 1994

188

DEPARTMENT OF ADMINISTRATIVE SERVICES

CERTIFICATE ON FINANCIAL STATEMENTS

In our opinion

(1) the accompanying accounts show fairly the operating result of the Department of Administrative Services for the year ended 30 June 1994

(2) the accompanying accounts show fairly the financial position of the Department of Administrative services as at 30 June 1994

(3) the accompanying accounts show fairly the cash flows of the Department of Administrative Services during the year ended 30 June 1994

(4) the accompanying accounts of the Department of Administrative Services have been made out in accordance with the Financial Statement Guidelines for Departmental Secretaries (Accrual Reporting), which require compliance with Statements of Accounting Concepts and applicable Accounting Standards.

Dated this day of October 1994

Trevor Barrell General Manager Corporate Resources

John Mellors Secretary

189

D E P A R T M E N T O F A D M IN IS T R A T IV E SE R V IC E S

S T A T E M E N T O F A S SE TS AND L IA B IL IT IE S as at 30 June 1994 _______

1 9 9 3 - 9 4 C $ 0 0 0 )

N otes

CURRENT ASSETS Cash 4,20 22,450

Receivables 5 91,151

Inventories 6 14,251

Investments 20 246,101

Other 7 20,038

T o ta l c u r r e n t a s s e ts 3 9 3 ,9 9 1

NON-CURRENT ASSETS Property, plant and equipment 8 453,353

Intangibles 9 7X ,522

Receivables 5 257

T o ta l n o n - c u r r e n t a s s e ts 4 6 1 ,1 3 2

T o ta l a s s e ts 8 5 5 , 1 2 3

CURRENT LIABILITIES Creditors 10 86,264

Provisions 12 61,574

Other 14 119,695

T o ta l c u r r e n t lia b ilitie s 2 6 7 , 5 3 3

NON-CURRENT LIABILITIES Borrowings 11 203,338

Provisions 13 69,576

Creditors 15 1,426

T o ta l n o n - c u r r e n t lia b ilitie s 2 7 4 , 3 4 0

T o ta l lia b ilitie s 5 4 1 ,8 7 3

NET ASSETS 18 3 1 3 ,2 5 0

1 9 9 3 - 9 4

A D M I N IS T E R E D C $ 0 0 0 )

A d m in is te r e d a s s e ts

Cash 25 10,158

Receivables 26 112,095

Deposits 27 3,810

Property, plant and equipment 28 4,113,745

Other 29 63,845

T o ta l a d m in is te r e d a s s e ts 4 , 3 0 3 , 6 5 3

A d m in is te r e d lia b ilitie s

Creditors 30 111,818

Leases 31 103,826

Provisions 32 8,971

Other 33 481,378

T o ta l a d m in is te r e d lia b ilitie s 7 0 5 ,9 9 3

The accompanying Notes form an integral part of these Financial Statements

191

192

DEPARTMENT OF ADMINISTRATIVE SERVICES STATEMENT OF CASH FLOWS for the year ended 30 June 1994

1993-94

Notes C$000)

CASH FLOWS FROM OPERATING ACTIVITIES Inflows : Receipts from Appropriations 275,264

Receipts from Commercial trust account activities 800,441

Receipts from independent sources 10,431

Other 424

Outflows :

Payments to employees (87.254)

Payments for administration costs (78,209)

Payments of Commercial trust account activities (871,036)

N et cash provided by op eratin g activities 19 50,061

CASH FLOWS FROM INVESTING ACTIVITIES Inflows:

Proceeds from sale of non-current assets 184,488

Outflows :

Payments on non-current assets (235,641)

N et cash used in investing activities (51,153)

CASH FLOWS FROM FINANCING ACTIVITIES Inflows :

Borrowings 5,507

Parliamentary appropriation 14,800

Outflows: Repayment of borrowings (5,628)

Dividend paid to CRF (18,000)

N et cash used by financing activities (3,321)

N et decrease in c ash held (4,413)

Cash at 1 July 1993 273,474

Cash transferred on restructure (510)

C ash a t 30 J u n e 1994 4,20 268,551

C A SH FL O W S FR O M A D M IN IST ER ED TR A N SA CTIO N S 1993-94 C$000)

Inflows : 34

Fees/Fines 26.471

Interest 141

Australian Estate Management associated revenues 129,812

Overseas Estate Management associated revenues 47,243

Recoverable charges 12.664

Other 1,572

Non Commonwealth estate activity 981,295

Outflows : 35

Grants (62,463)

Appropriations to public authorities (99,372)

Australian Estate Management associated payments (270,580)

Overseas Estate Management associated payments (146.169)

Ministerial and Parliamentary associated payments (151,792)

Non Commonwealth estate activity (739,427)

Other (2,935)

N et cash outflows from adm inistered transactions (273,540)

The accompanying Notes form an integral part of these Financial Statements

193

Note Description

1 Summary of Significant Accounting Policies

2 Items Charged as Expenses

3 Items Credited as Revenue

4 Cash

5 Receivables

6 Inventories

7 Other Current Assets

8 Property, Plant and Equipment

9 Intangible Assets

10 Creditors

11 Borrowings

12 Provisions - Current

13 Provisions - Non Current

14 Other Current Liabilities

15 Creditors - Non Current

16 Resources Received Free of Charge

17 Extraordinary Item

18 Allocation of Net Assets / Liabilities

19 Cashflow Reconciliation

20 Investments

DEPARTMENT OF ADMINISTRATIVE SERVICES NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ending 30 June 1994

195

21

22

23

24

25

2 6

27

28

29

3 0

31

32

33

34

35

36

37

38

39

4 0

41

4 2

4 3

Administered Expenses

Administered Items Charged as Expenses

Administered Revenues

Administered Items Credited as Revenues

Administered Cash

Administered Receivables

Administered Deposits

Administered Property, Plant and Equipment

Administered Other Assets

Administered Creditors

Administered Finance Leases

Administered Provisions

Administered Other Liabilities

Administered Cash Inflows

Administered Cash Outflows

Receipts to CRF

Special Appropriations

Annual Appropriations

Trust Fund

Act of Grace Payments, Waivers, Amounts Written Off Losses and Deficiencies

Administered Act of Grace Payments, Waivers, Amounts Written Off, Losses and Deficiencies

Commitments

Non Cancellable Operating Lease Commitments

196

44 Agreements Equally and Proportionately Unperformed

45 Finance Lease Liability

46 Administered Commitments

47 Administered Non Cancellable Operating Lease Commitments

48 Administered Agreements Equally and Proportionately Unperformed

49 Contingent Liabilities

50 Auditors' Remuneration

51 Executives' Remuneration

52 Profit From Commercial Activities

53 Administered Contingent Liabilities

54 Administered Restricted Assets

55 Administered Guarantees and Undertakings

197

DEPARTMENT OF ADMINISTRATIVE SERVICES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

1. Summary of Significant Accounting Policies

1.1 Basis of Accounting

The Department is required to prepare financial statements under Section 50 of the Audit Act 1901. The financial statements have been prepared in accordance with the Financial Statement Guidelines for Departmental Secretaries (Accrual Reporting) issued by the Minister for Finance in January 1994 (hereinafter referred to as the ’Guidelines') which require compliance with the Statements of Accounting Concepts and relevant Accounting Standards.

The financial statements have been prepared on an accrual basis and are in accordance with the historical cost convention, unless otherwise stated.

1.2 Rounding

Amounts are reported to the nearest $ 1000 with the exception o f : • the Statement of Transactions by Fund, and the Notes which support that Statement • write offs • auditor's remuneration, and • remuneration of executives.

Totals are the rounded sums of unrounded figures.

1.3 Comparative Figures

Comparative figures for the year ending 30 June 1994 have not been included in the Financial Statements or the Notes supporting those Statements, as the systems were not in place to allow those amounts to be reliably measured. This is in accordance with the Guidelines.

198

1.4 Principles of Consolidation

The Financial Statements are a consolidation of the operations of the commercial business division of the Department of Administrative Services operating on the Business Services Trust Account, and the operations of the budget funded division.

The accounts for the commercial and budget funded divisions have been prepared for the same reporting period, and using consistent accounting policies. Where necessary, adjustments are made at balance date to bring to account the effects of any dissimilar accounting policies.

Transactions and balances at 30 June 1994 between the businesses within the Business Services Trust Account and the budget funded division are eliminated upon consolidation.

1.5 Asset Capitalisation Threshold

All non-current assets with a historical cost in excess of $2,000 are capitalised in the year of acquisition and included on the Department's asset register. The value of all such assets on the asset register is included in the financial statements.

1.6 Property, Plant and Equipment

Valuation Property, plant and equipment are recorded at cost, or valuation. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2,000 are expensed at the time of purchase.

Revaluation during the financial year Departmental land and buildings were revalued at market value during the financial year ending 30 June 1994. The date of revaluation being 31 May 1994. The valuation was performed independently by qualified valuers from the Australian Valuation Office.

The Department has a policy to revalue all property, plant and equipment assets at least once every five years.

Administered Land and Buildings, and Leasehold Improvements, were revalued at market value during the financial year ending 30 June 1994. The date of revaluation being 30 June 1994. The valuation was performed independently by qualified valuers from the Australian Valuation Office and Ron Roberts and Partners AVLE, AICMV.

Software Computer software has been reported as an asset where it can be reliably measured. The Department has introduced a policy to capture costs relating to software development, and these costs will be available for the financial year ending 30 June 1995.

199

Leasehold Improvements Leasehold improvements have been reported where the values can be reliably measured.

Capital Works in Progress Capital works in progress have been reported at cost.

Administered Domestic Estate The domestic estate comprises the commercial (office) estate, non-commercial estate, industrial estate, and special purpose estate.

The Department is uncertain that it has records for all properties comprising the non­ commercial estate. An exemption from reporting the unidentified portion of the non­ commercial estate was granted by the Minister for Finance, pursuant to clause 6 of Schedule 2

to the Guidelines.

Australian Estate Management and the Australian Valuation Office have jointly conducted a project during the financial year to determine the nature and extent of unidentified non­ commercial property. The results of the project as at 30 June 1994 have not highlighted any

major omissions from the listings held by the two parties.

It is expected that this project will be finalised prior to 30 June 1995.

Buildings Under Construction The Department received appropriation monies for the construction of property in the domestic estate and overseas estate. These properties are reported as Work in Progress, and are valued at Cost.

1.7 Depreciation and Amortisation of Non-Current Assets

All depreciable non-current assets are depreciated over their estimated useful lives.

Depreciation is calculated using the straight-line method which correctly reflects the pattern of usage and rate of loss of value of the Department's depreciable assets.

Leasehold improvements are amortised over the term of the lease.

1.8 Intangible Assets

Intangible assets are brought to account at cost and amortised over the period expected benefits will be received.

Research and development costs incurred during the financial year are deferred and will be amortised over the period expected benefits will be received.

2 0 0

1.9 Inventories

Materials and stores have been valued at the lower of cost and net realisable value. No threshold for recognition has been applied.

Manufacturing and maintenance Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each item to its present location and condition are accounted for as follows

Raw materials - purchase cost on an average cost (weighted) basis; and Finished goods and work in progress - cost of direct material and labour plus attributable costs that are capable of being allocated on a reasonable basis.

Long term construction contracts Construction work in progress is stated at cost plus any profit recognised to date (based on percentage completion of each contract) less progress billings. Costs include all direct costs

related to specific contracts. Where a loss is expected on completion, the work in progress is reduced to the level of recoverability. Where the progress billings exceed the gross work in progress, the amount is recorded as unearned income.

1.10 Employee Entitlements

Provision is made for employees' long service leave and recreational leave entitlements.

Long Service Leave

Long service leave is provided for those employees with five years or more service. The provision is dissected into current and non-current liability components based on expected usage in the next year.

The long service leave provision has been calculated having regard to the probability that long service leave will in the future either be taken or have to be paid even though an employee may not yet have met the qualifying period of ten years.

As a result, in addition to those staff with more than ten years service who qualify for long service leave, a provision has been accrued for all staff with five to ten years service. The provision for those staff members is reported as a non-current provision in the Statement of Assets and Liabilities.

Recreation Leave

Recreation leave is provided for those employees who have an entitlement at balance date. The provision includes a leave loading component and is classified as a current liability.

2 0 1

1.11 Unearned Income

Deposits and prepayments received for services yet to be rendered, and invoices raised in advance, are recorded in the balance sheet as a liability and are transferred to the Operating Statement at the time the service is provided.

1.12 Superannuation Payments

The Commercial division of this Department contributed to employee superannuation funds during the year and recorded the expense in their Operating Statements.

The liability for superannuation payments for staff employed by the budget funded division of the Department (other than the productivity contributions) is assumed by the Commonwealth. The notional value of such employer contributions for the year is recorded as part of employee expenses and an equal amount is recorded as part of 'liabilities assumed by government'

(revenue) in the Operating Statement.

1.13 Taxation

The Department is not subject to income tax and most indirect taxes and charges. Fringe Benefits Tax is paid and expensed in the Operating Statement.

Customs Duty on imports is payable by the Business Services Trust Account and is included in the cost of goods. Where the goods are assets, the amount is included in the capital value of the assets and is amortised over the estimated useful lives of the assets.

1.14 Foreign Currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. All monetary assets at 30 June 1994 which were held in a foreign currency, were converted by the exchange rate prevalent at 30 June 1994.

1.15 Leases

Finance leases Leases of non-current assets, where substantially all of the risks and benefits incidental to ownership effectively pass to the Department are classified as finance leases. The lease is capitalised at the present value of the minimum lease payments, and amortised over the period expected benefits from the use of the asset will accrue. A corresponding liability is established, with each lease payment allocated between a reduction of the lease liability and interest expense.

2 0 2

Operating leases Lease of non-current assets, where substantially all the risks and benefits incidental to ownership effectively remain with the lessor are classified as operating leases. Operating lease payments are charged as expenses in the determination of the operating result.

1.16 Client Advances

Moneys advanced by client organisations operating on the Commonwealth Public Account for the payment of accounts to third parties for construction works are included as a liability in the Statement of Assets and Liabilities. These funds are separately accounted for and applied only for the benefit of the client. The inflow and outflow of these moneys have not been shown in

the Operating Statement.

Moneys received from non-Commonwealth Public Account clients have been placed in the Service to Other Governments and Non-Departmental Bodies Trust Account from 1 July 1992.

1.17 Liabilities

The Department reports liabilities in accordance with the definition of liabilities contained in the Guidelines. Commitments, and Agreements Equally and Proportionately Unperformed, are disclosed only in the Notes.

Liabilities are divided into current and non-current categories in accordance with the Guidelines.

1.18 Insurance

Revenue Recognition DAS Removals provides indemnity cover for household effects during every stage of a removal under its comprehensive indemnity scheme. Under the indemnity scheme, revenue is recognised on completion of the removal and in the case of storage, on a pro-rata basis at the end of each month.

Insurance Claims A provision, based on an estimate of the amount of indemnity claims yet to be reported at the end of the financial year is recorded in the accounts. Also included in the provision is an estimate of the amount of claims reported but unsettled at the end of the financial year.

Claims arising from events that have occurred during this period and have been settled during the period are expensed during the financial year.

203

Insurance Reserve DAS Removals carries the first $300,000 risk for fire or catastrophe in store. An amount of $900,000 has been set aside to cover losses resulting from fire or a catastrophic event occurring within the store.

1.19 Receivables

A provision is raised for any doubtful debts based on a review of all outstanding accounts as at year end.

Bad debts are written off during the year in which they are identified.

1.20 Resources Received Free of Charge

Resources received free of charge are recognised in the Financial Statements as revenue where the amounts can be reliably measured and amounts considered material. Use of those resources is recognised within the Net Cost of Services.

1.21 Administered Items

Administered items are revenues, expenses, assets and liabilities administered by the Department for the Commonwealth generally, which are not concerned with running the Department or its commercial activities. They include:

. grants and benefit payments;

. payments to public authorities of moneys appropriated for their activities;

. fees and fines;

. interest; and

. the Commonwealth Public Account and drawing accounts.

1.22 Administrative Arrangements

COMCAR As a result of changed administrative arrangements, COMCAR ceased to operate through the Business Services Trust Account on I July 1994 and commenced operation through the COMCAR Trust Account from the same date.

204

Cultural Development Program Due to a Portfolio realignment pursuant to Administrative Arrangements Orders signed 30 January 1994, the Department of Administrative Services transferred responsibility for the Arts (Cultural Development Program) to the Department of Communications, effective from 30 January 1994.

The operating activities and cashflows for the period 1 July 1993 to 30 January 1994 have been included in the Department's Financial Statements. The net assets as at 30 January 1994 have been reported as an extraordinary item due to restructure, on the Operating Statement.

1.23 Cash

For the purposes of the Statement of Cash Flows, Cash means cash on hand, cash in transit, cash at bank, and Internal Treasury Bills (refer Note 20).

Cash on hand means notes and coins held. Cash in transit means cash en route and not banked as at 30 June 1994.

1.24 Investments

Investments are shown as current assets, and comprise Internal Treasury Bills.

2 0 5

Total ( ’$000)

Interest 15,029

Bad / Doubtful debts 1,721

Losses on disposal of fixed assets 571

Depreciation of property, plant & equipment 42,148

Amortisation of leasehold improvements 239

Diminution in inventory values 1,263

Finance leases - Charges 314

Operating leases - Rental expenses 46,331

Employee benefits expenses 36,116

Abnormal items - Surplus staff costs 12,875

- Redundancies 21,524

NOTE 2 - Items Charged as Expenses

Total Specific Items Charged as Expenses 178,131

NOTE 3 - Items Credited as Revenue

Total C$000)

Increases / (Decreases) in Appropriations 790

because of arrangements to "carry over" from preceding year or "borrow" from future years Interest income 11,951

Total Specific Items Credited as Revenue 12,741

NOTE 4 - Cash

Total C$000)

Cash on Hand 284

Cash at bank 9,740

Business Services Trust Account 12,426

Total Cash 22,450

206

NOTE 5 - Receivables

Total

Receivables (Current) (’$000)

Trade Debtors 84,107

Less : Provision for Doubtful Debts (4,675)

79,432

Other 11,719

Total Receivables

Commonwealth Dept Receivables

91,151

Total (’$000)

Not overdue (current) Overdue

43,710

- less than 30 days 24,518

- 30 to 60 days 4,069

- more than 60 days 114

Less : Provision for Doubtful Debts (3,548)

68,863

Other Commonwealth Entity Receivables Not overdue (current) Overdue 8,141

- less than 30 days 4,069

- 30 to 60 days 0

- more than 60 days 9

Less : Provision for Doubtful Debts (676)

11,543

Other Receivables

Not overdue (current) Overdue

8,705

- less than 30 days 2,468

- 30 to 60 days 6

- more than 60 days 17

Less : Provision for Doubtful Debts (451)

10,745

207

Aged Receivables (Current)

Total C$ooo)

Not overdue (current) Overdue

60,556

- less than 30 days 31,055

- 30 to 60 days 4,075

- more than 60 days 140

Less : Provision for Doubtful Debts (4,675)

Total Aged Receivables 91,151

Receivables (Non - Current) Other 257

NOTE 6 - Inventories

Total c$ooo)

Raw materials & stores - at cost 5,112

less : Provision for diminution in value (141)

4,971

Work in progress - at cost 4,582

Finished goods - at cost 5,070

less : Provision for diminution in value (372)

4,698

Total Inventories 14,251

NOTE 7 - Other Current Assets

Total C$000)

Prepaid expenses 9,125

Accrued income 8,556

Advances 1,476

Consumables 461

Recoverable expenses 420

Total Other Current Assets 20,038

208

NOTE 8 - Property, Plant and Equipment

Land and buildings - at cost Less : Accumulated Depreciation

Total C$000) 485 (24)

461

Land - at cost 200

Land - at independent valuation 1,958

Buildings - at independent valuation Less : Accumulated Depreciation

4,822 (17) 4,805

Computers, plant and equipment - at cost Less : Accumulated Depreciation

545,829 (111,438) 434,391

Leasehold improvements - at cost Less: Accumulated Amortisation

13,716 (2,639) 11,077

Leasehold improvements - at independent valuation Less : Accumulated Amortisation 700 (239)

461

Total Property, Plant and Equipment 453,353

Land and buildings were revalued to market value as at 31 May 1994 by the Australian Valuation Office

209

NOTE 9 - Intangible Assets Total

C$ooo)

Software licences - Cost 4,887

Less : Provision for Amortisation (1,531)

3,356

Research & Development - Cost . 4,166

Less : Provision for Amortisation _______ 0

4,166

Total Intangible Assets 7,522

NOTE 10 - Creditors Total

C$000)

Trade creditors 47,764

Other creditors 8

Lease liability 442

Accrued expenses 38,050

Total Creditors 86,264

NOTE 11 - Borrowings Total

C$000)

Loans from Commonwealth 10,000

Debt capital 193,338

Total Borrowings 203,338

NOTE 12 - Provisions Current Total

C$000)

Employee entitlements : Recreation leave 44,395

Long service leave 12,978

Superannuation 43

Total Employee Entitlements 57,416

2 1 0

Provisions Current (Cont)

Other Provisions : Warranties 447

Third party insurance 983

Loss and damage 942

Other 1,786

Total Other Provisions 4,158

Total Current Provisions 61,574

NOTE 13 - Provisions Non Current Total

C$000)

Employee entitlements :

Long service leave 68,657

Other Provisions :

Office restoration 142

Loss and damage 777

Total Non Current Provisions 69,576

NOTE 14 - Other Current Liabilities

Total C$000)

Unearned income 53,138

Unspent redundancy moneys 951

Commitment and preproduction advances 10,616

Construction work in progress Gross work in progress (267,162)

Less : Progress billing 271,137

3,975

Other 113

Client Advances 50,902

Total Other Current Liabilities 119,695

NOTE 15 - Creditors Non Current

Total C$000)

Lease liability 1,426

2 1 1

NOTE 16 - Resources Received Free of Charge Other Commonwealth Departments

Resources received from : Total

C$000)

Department of Finance Payroll processing costs 24

FIRM/FLS Ledger Transactions 105

Total Resources Received Free of Charge _____ 129

Department of Finance Various costs 453

This resource received was reported by the commercial division of the Department as revenue from commercial trust account activities

Resources Received F ree Of Charge but Costs not Reported

Resources received from : Total

C$000)

Department of Finance FIRM/FLS Ledger Transactions 244

Legal advice 3_

247

These costs were not recognised by the commercial division of the Department in revenues from commercial trust account activities

NOTE 17 - Extraordinary Item

This amount represents the value of net assets transferred to the Department of Communications and the Arts, 30 January 1994.

The Department received no consideration for the net assets transfer.

This amount has reduced the Operating Result in the Operating Statement.

2 1 2

NOTE 21 - Administered Expenses

Total (’$000)

Grants - Australian National Opera 1,812

- Playing Australia 1,028

- Film Australia 6,540

- Australian Film Finance Corporation 43,500

- National Institute of Dramatic Art 3,016

- Australian Childs TV Foundation 2,017

- Other 4,550

62,463

Payment of Appropriations to Public Authorities - Australian National Library 21,880

- Australian National Gallery 13,920

- Australia Council 31,860

- Australian Film Commission 11,840

- Australian Film, TV and Radio School 7,674

- Australian National Maritime Museum 7,818

- National Museum of Australia 4,380

99,372

Australian Estate Management Associated Expenses - Estate Management 22,188

- Owner's Outgoings 45,613

- Interest Instalment Purchase 8,490

- Depreciation 52,344

- Amortisation 5,107

- Bad/Doubtful Debts 4,294

- Interest Finance Lease 8,070

- Contingent Rental Finance Lease 415

- WDV of Disposal Properties Nil Consideration 20,104

166,625

Overseas Estate Management Associated Expenses - Depreciation 10,503

- Amortisation 1,107

- Rent 56,245

- Overseas Property Services 46,244

- Unrealised Foreign Exchange Loss 180

114,279

214

Administered Expenses (Cont)

Ministerial and Parliamentary Associated Expenses - Employee expenses - Ministerial staff expenses & entitlements

59,309 87,410 146,719

Administered Assets Transferred to Other Departments - Receivables transferred to Department of Communications and the Arts 829

Other 2,618

Total Administered Expenses 592,905

NOTE 22 - Administered Items Charged as Expenses

Total c$ooo)

Interest Bad / Doubtful Debts Losses on disposal of fixed assets Decrements from revaluation of fixed assets Depreciation of property, plant & equipment Amortisation of leasehold improvements Finance leases - Amortisation of leased assets

- Finance charges - Contingent rentals

Operating leases - Rental expenses Employee benefits expenses Abnormal items - Unrealised Exchange Rate Loss

8,490 735 3,611 20,104 66,844

2,791 3,422 8,070 415

56,306 4,442

180

Total Specific Administered Items Charged as Expenses 175,410

215

Total C$ooo)

Fees 24,204

Fines 6,347

Interest 244

Australian Estate Management associated revenues - Rent & Recoverables 266,974

- Operating Lease Rental 2,690

- Property Sales - Domestic 1,082

- Fitout Recovery 821

- Miscellaneous Revenue 139

- Gain on sale of Fixed Assets 554

272,260

Overseas Estate Management associated revenues - Rent & Recoverables 7,079

- Miscellaneous Revenue 4,387

- Gain on sale of Fixed Assets 1,179

- Non property asset sales 401

13,046

Administered liabilities assumed by other departments 14,966

Resources received free of charge 7,904

Recoverable charges 13,194

Other 343

NOTE 23 - Administered Revenues

Total Specific Administered Items Credited as Revenue 352,508

NOTE 24 - Administered Items Credited as Revenue Total C$000)

Interest income 244

Abnormal items 1,082

Gain on sale of Fixed Assets 1,179

Total Specific Administered Items Credited as Revenue _____ 2,505

216

NOTE 25 - Administered Cash

Cash on Hand 29

Cash in transit 69

Cash at bank 10,060

Total C$000)

Total Administered Cash 10,158

NOTE 26 - Administered Receivables

Total C$ooo)

Trade Debtors 118,708

Less : Provision for Doubtful Debts (7,186)

111,522

Other 573

Total Administered Receivables 112,095

Aged Receivables

Other Commonwealth Department Receivables Not overdue (current) 93,350

Overdue - less than 30 days 12,090

- 30 to 60 days 1,200

- more than 60 days 1,742

Less : Provision for Doubtful Debts (4,959)

103,423

Other Commonwealth Entity Receivables Not overdue (current) 2,644

Overdue - less than 30 days 210

- 30 to 60 days 40

- more than 60 days 79

Less : Provision for Doubtful Debts (7)

2,966

217

Other Receivables Not overdue (current) 7,107

Overdue - less than 30 days 228

- 30 to 60 days 126

- more than 60 days 465

Less : Provision for Doubtful Debts (2,220)

5,706

Total

Total Receivables ('$000)

Not overdue (current) 103,101

Overdue - less than 30 days 12,528

- 30 to 60 days 1,366

- more than 60 days 2,286

Less : Provision for Doubtful Debts (7,186)

Total Administered Aged Receivables 112,095

NOTE 27 - Administered Deposits

Total ('$000 )

Security deposits held by Overseas Property Group 3,810

218

NOTE 28 - Administered Property, Plant and Equipment Total (’$000)

Computers, Plant & Equipment - at cost 16,582

Less : Accumulated Depreciation (7,356)

9,226

Land - at cost 728,487

Less : Accumulated Amortisation ________ 0

728,487

Land - at independent valuation 769,821

Less: Accumulated Amortisation 0_

769,821

Buildings - at cost 755,216

Less : Accumulated Amortisation (10,038)

745,178

Buildings - at independant valuation 1,798,037

Less : Accumulated Amortisation ________ 0

1,798,037

Leasehold Improvements - at cost 10,590

Less : Accumulated Depreciation (4,664)

5,926

Leasehold Improvements - at independant valuation 57,070

Less : Accumulated Depreciation 0_

57,070

Total Administered Property, Plant and Equipment 4,113,745

The domestic estate for land, buildings and leasehold improvements, administered by Australian Estate Management, were revalued as at 30 June 1994 by the Australian Valuation Office, and Ron Roberts & Partners AVLE, AICMV.

Finance Lease Assets Included in Financial Statements at valuation

Tuggeranong Office Park Amount initially capitalised as leased asset Less : Accumulated Amortisation

113,120 (10,831) 102,289

219

Prepaid expenses 59,950

Accrued income 3,895

NOTE 29 - Other Administered Assets

Total C$000)

Total Other Administered Assets 63,845

NOTE 30 - Administered Creditors

Total ( ’$000)

Trade creditors 22,343

Other creditors 75,656

Accrued expenses 13,819

Total Administered Creditors 111,818

NOTE 31 - Administered Finance Leases

Total C$ooo)

Tuggeranong Office Park - Not later than one year 12,000

- Later than one year but not later than two years 12,000

- Later than two years but not later than five years 36,000

- Later than five years 110,000

170,000

Less : Future Finance Charges (66,174)

Total Administered Finance Leases 103,826

NOTE 32 - Administered Provisions

Total C$000)

Employee entitlements : Recreation leave 5,214

Long service leave 3,757

Total Administered Provisions _____ 8,971

2 2 0

NOTE 33 - Other Administered Liabilities

Total C$ooo)

Unearned income 145,361

Unearned income - operating leases 304,346

Other - Advances & Deposits 31,281

Other - Bank Accounts 390

Total Other Administered Liabilities 481,378

NOTE 34 - Administered Cash Inflows

Total (’$000)

Fees 21,612

Fines 4,859

Interest 141

Australian Estate Management associated revenues - Rent & Recoverables 69,824

- Property Sales 57,840

- Fitout Recovery 821

- Refunds/Overpayments 569

- Miscellaneous 758

129,812

Overseas Estate Management associated revenues - Rent & Recoverables 5,567

- Non Property Sales 401

- Property Sales 36,895

- Miscellaneous 4,380

47,243

Recoverable Charges 12,664

Other 1,572

Non Commonwealth estate activity - Australian Property Group 981,295 - Rent and recoverables leased property

Total Administered Cash Inflows 1,199,198

2 2 1

NOTE 35 - Administered Cash Outflows

Grants

- Australian National O pera

- Playing Australia - Film Australia

- Australian Film Finance Corporation

- National Institute of Dram atic Art - Australian Childs TV Foundation

- Other

Paym ent o f Appropriations to Public Authorities

- Australian National Library

- Australian National Gallery - Australia Council

- Australian Film Commission

- Australian Film, TV and Radio School

- Australian National Maritime M useum

- National Museum of Australia

Australian Estate M anagem ent associated payments

- Estate M anagem ent

- Owner's Outgoings - Instalment purchase principal

- Instalment purchase interest

- M inor W orks

- M ajor Works - Refurbishment OPH

- Sites & Buildings

Overseas Estate M anagem ent associated payments

- M inor W orks

- M ajor W orks

- Plant & Equipment

- Overseas Property Services

- Rent

Ministerial and Parliamentary associated payments

- Parliamentary Em ployee Expenses - Parliam entary Entitlements

- O ther Parliam entary Costs

Non Com monwealth estate activity - Australian Property Group - Property & Related - Land acquisitions

- Other

Other

Total Administered Cash Outflows

1,812 1,028 6,540 43,500 3.016 2.017 4,550 62,463

21,880 13,920 31,860 11,840

7,674 7,818 4,380 99,372

23,899 71,631 16,845 9,146

6,945 127,089 388 14,637 270,580

18,290 28,246 136 43,014 56,483 146,169

58,002 40,370 53,420 151,792

733,008 1,786 4,633 739,427

2,935

Total C$000)

1,472,738

2 2 2

ΝΌΤΕ 36

NET RECEIPTS TO CRF

Item Sub­

P ro g ram

1993-94

B u d g et $

1993-94

A c tu al $

A s se t S a le s P r o g r a m 2.3 4,000.000 -

B u s in e s s S e rv ic e s T r u s t A c c o u n t

Dividend payments * 21,190,000 18,000,000

Interest paym ents * 14,439,000 3,288,209

Loan facility 3.13 30,000,000 5,500,000

Paym ent in lieu o f taxation 3.10 2,690,000 1,904,588

O t h e r

A ustralian Estate M anagem ent - fitout recoveries 2.3 2,864,000 821,495

R e c o v e r a b le C h a r g e s

A rchives 1.2 2,038,000 879,931

Com m ercial program s and other * 37,833,000 32,909,896

Ionospheric Prediction Services 2.2 130,000 153,197

R e n t

A ustralian com m ercial properties 2.3 210,962,000 207,685,068

A ustralian non-com m ercial properties 2.3 1,894,000 2.090,722

O verseas properties 2.4 5,981,000 4,771,475

S a les

A ustralian real property assets 2.3 18,070,000 57,839,754

C om puterised personnel system 2.5 1,036,000 511,967

T r a n s p o r t a n d S to r a g e G r o u p P r o p e r t y

R a tio n a lis a tio n T r u s t A c c o u n t

M oneys in excess o f requirem ents 3.14 15,000,000 -

M is c e lla n e o u s - D e p a r tm e n t * 45,845,000 39,401,014

M is c e lla n e o u s - N a tio n a l F ilm a n d

S o u n d A r c h iv e 1.9

"

1,225

' Allocated to various Sub-Programs

2 2 3

NOTE 36 (cont.)

I

Item S u b ­

P ro g ra m

1993-94

B u d g et $

1993-94

A ctu al $

S e c tio n 35 o f th e A u d it A c t 1901, to b e c r e d ite d to -

•

A dvances and Loans - repaym ents o f the loan

facility by the Business Services Trust

A ccount - Item 805-02-02 3.13 30,000,000 .

D epartm ental - to be credited to R unning C osts -

Division 115 * 11,209,000 10,765,6(1

National Film and Sound A rchive - to be credited

to R unning C osts - Division 123 1.9 500,000 189,19:

National Science and Technology C entre - to be

credited to Running C osts - D ivision 126 1.12 3,127,000 2,632,491

O verseas Property Services - to be credited to

A cquisitions, buildings and w orks under $6m -

Item 805-01-04 2.4 2,870,000 12,507,92:

O verseas Property Services - to be credited to

O ther services - Item 115-04-02 2.4 453,000 410,46

Parliam entary and M inisterial S taff and Services -

to be credited to R unning C osts D ivision 117 2.1 200,000 309,791

T O T A L R E C E I P T S O F F S E T W I T H I N O U T L A Y S 462,331,000 402,574,017

* Allocated to various Sub-Programs

224

Item Sub- 1993-94 1993-94

P ro g ra m A p p ro p ria tio n $ A ctu al $

NOTE 37 Special A p p r o p r i a t i o n s

M inisters o f State A ct 1952

M inisters o f State - Salaries 2.1 1,538,000 1,560,325

Parliamentary Entitlem ents A ct 1990 2.1 45,250,000 43,233,756

R em uneration Tribunals A ct 1973

M inisters o f State - allowances 2.1 1,248,000 1,190,049

M em bers o f Parliam ent - allowances 2.1 3,000.000 2,715,276

Total Special A ppropriations 51,036,000 48,699,406

NOTE 38 A nnual A p p r o p r i a t i o n s

A ppropriation A ct N o 1 * 748,830,662 697,008,561

A ppropriation A ct N o 3 * 6.397,000 -

Total A ppropriation A cts 1 & 3 755,227,662 697,008,561

A ppropriation A ct N o 2 * 319,168,529 229,230,686

A ppropriation A ct N o 4 * 120.000 -

Total A ppropriation A cts 2 & 4 319,288,529 229,230,686

T O T A L E X P E N D I T U R E F R O M C R F 1,125,552,191 974,938,653

Issues and Expenditure from the Advance to the Minister for Finance (These amounts are included in A ppropriation A ct N o 1)

Total Issues and Expenditure 3,045,155 2,656.497

* Allocated to various Sub-Programs

2 2 5

NOTE 38 (cont.)

Appropriation Acts 1 & 3

Item Sub- 1993-94

P ro g ra m A p p ro p ria tio n $

1993-94 "

A ctu al $

Division 1 1 5 - A D M IN ISTR A TIV E

1. R u n n in g C o sts 165,820,954 154,820,0(1

Section 35 o f the Audit Act 1901 < 115-01-00) * 10,765,604 10,765,6(4

T otal Running Costs 176,586,558 165,585,61!

2 . O t h e r S e rv ic e s

01. C om pensation and legal expenses 5 2,360,015 2.355,621

02. Political Exchange Program 2.1 371.000 234,351

03. Leases to be assigned, refurbished

or term inated 3.5 1,361,000 915,47 j

04. Property adjustm ent program (for paym ent

to the A ustralian Property G roup

T rust A ccount) 5 15.000,000 14,706,591

05. Paym ent for com m unity service obligations

(for paym ent to the Business Services

T rust Account) * 39.335.000 39,264,76 -J

06. Halon managem ent and recovery program

(for payment to the B usiness Services

T rust A ccount) 3.13 1.800.000 600,00 !

07. S taff adjustm ent program (for paym ent to

the Business Services T rust A ccount) * 78,466,000 45,978,60

08. O perating subsidy - C O M C A R (for payment

to the Business Services Trust A ccount) 3.8 19,000,000 17.000.00

Total O ther Services 157,693,015 121,055,41

3. E s ta te M a n a g e m e n t

01. Estate m anagem ent expenses 2.3 8,739,000 8 , 166,3ο1

02. Fire protection - C om m onw ealth property 2.3 12,174,000 12,091,46-

03. M anagem ent o f non-com m ercial estate 2.3 3.856,000 3,719,582.

04. Com m onw ealth offices - M inor construction,

refurbishm ent and acquisition 2.3 7,000,000 6,939,931

Total Estate M anagem ent 31,769,000 30,917,286

* Allocated to various Sub-Prograins

2 2 6

" NOTE 3 8 ( c o n t . )

A p p r o p r ia tio n A c t s 1 & 3 ( c o n t .)

Item Sub- 1993-94 1993-94

P ro g ra m A p p ro p ria tio n $ A ctu al $

4. O v e r s e a s P r o p e r t y S e rv ic e s

01. Rent

02. O ther services (m oney received from the

sale o f furniture and fittings overseas plus

receipts from rental from , and disposal of

surplus properties in Papua New G uinea,

that part o f w hich is equal to the costs o f

renting or disposing o f those properties, m ay

2.4 64,835,000 56,727,503

be credited to this item) 2.4 40,486.000 40,420,247

Section 35 o f the Audit Act 1901 (115-04-02) 2.4 410,461 410,461

Total O verseas Property Services 105,731,461 97,558,211

5. G r a n ts - in - A id

01. R oyale H um ane Society of A ustralasia 5 10,000 10,000

02. A ustralian Institute o f Political Science 5 20,000 20,000

03. Lionel M urphy Foundation - C ontribution

04. H erbert V ere Evatt M em orial Foundation -5 124,000 124,000

C ontribution

05. Royal Society for the Prevention o f Cruelty

5 257,000 257,000

to A nim als

06. A ustralian and N ew Z ealand Federation

5 20,000 20,000

o f A nim al Societies 5 20,000 20,000

07. A ustralian Conservation Foundation 5 56,000 56,000

Total G rants-in-A id 507,000 507.000

6. C u l tu r a l D e v e lo p m e n t P r o g r a m ( in c lu d in g

p a y m e n ts to r e le v a n t t r u s t a c c o u n ts ) l.l 62,106,094 62,106,094

7. I n f o r m a tio n P r o g r a m 1.3 2,046,000 2,045,999

T O T A L D IV ISIO N 115 536,439,128 479,775,616

ι * Allocated to various Sub-Programs

227

NOTE 38 (cont.)

Appropriation Acts 1 & 3 (cont.)

Item Sub- 1993-94 1993-94

P ro g ra m A p p ro p riatio n $ A ctu al $

Division 1 17 - PA R LIA M EN TA R Y A N D M IN ISTERIA L

ST A F F A N D SE R V IC E S

1. R u n n in g C o sts 2.1 71.982.000 71,874,79

Section 35 of the Audit Act 1901 (117-01 -00) 2.1 309,796 309,79

T otal R unning Costs 72,291,796 72,184,59

2 . O t h e r S e rv ic e s

01. C om pensation and legal expenses

02. Superannuation endow m ent policies -2.1 62.000 16,64

Prem ium s paid 2.1 3.016.000 2,124,54

Total O ther Services 3,078.000 2,141,18

3. C o n v e y a n c e o f M e m b e r s o f P a r l ia m e n t

a n d O th e r s 2.1 27.268,000 27.083,47:

4. V isits A b r o a d o f M in is te rs (in c lu d in g

p e r s o n a l sta ff) a n d O th e r s 2.1 4.596,000 4,546,78:

T O T A L D IV ISIO N 117 107,233,796 105.956,03:

Division 118 - AU STRALIA C O U N C IL

1. F o r e x p e n d itu re u n d e r th e

Australia Council A ct 1975 1.4 31,860,000 31,860,00

D ivision 119 - AU STRA LIA N FILM C O M M ISSIO N

1. F o r e x p e n d itu r e u n d e r th e

Australian Film Commission A ct 1975 1.5 11,840.000 11.840,00

Division 120 - AU STRA LIA N FILM . TELEV ISIO N

A N D RA D IO SC H O O L

1. F o r e x p e n d itu r e u n d e r th e

Australian Film, Television and Radio

School A ct 1973 1.6 7,674,000 7,674,00(

2 2 8

ΝΌΤΕ 38 (cont.)

Appropriation Acts 1 & 3 (cont.)

Item S ub­

P ro g ra m

1993-94

A p p ro p ria tio n $

1993-94

A ctu al $

Division 121 - N A TIO N A L G A LL E R Y O F A U ST R A L IA

1. F o r e x p e n d itu r e u n d e r th e

N ational Gallery A ct 1975 1.7 13.860.000 13.860.000

Division 122 - A U ST R A L IA N N A TIO N A L M A R ITIM E

M U SEU M

1. F o r e x p e n d i t u r e u n d e r th e

Australian N ational Maritime

M useum A ct 1990 1.8 7,818.000 7,818,000

Division 123 - N A TIO N A L FILM A N D SO U N D A R C H IV E

1. R u n n in g C o sts 1.9 4.810.434 4,810,431

Section 35 o f the A udit Act 1901 (123-01-00) 1.9 189,192 189,192

Total R unning Costs 4.999.626 4.999.623

2. O t h e r S e rv ic e s 1.9 371,319 .371,318

T O T A L D IV ISIO N 123 5,370,945 5,370.941

Division 124 - N A TIO N A L LIBRA RY O F A U ST R A L IA

1. F o r e x p e n d itu r e u n d e r th e

N ational Library A ct I960 L 10 21.880,000 21.880.000

Division 125 - N A TIO N A L M U SEU M O F A U ST R A L IA

1. F o r e x p e n d itu r e u n d e r th e

N ational M useum o f Australia A c t 1980 I I I 4,380.000 4.380.000

2 2 9

NOTE 38 (cont.) t

Appropriation Acts 1 & 3 (cont.)

t l

I te m S u b - 1993-94

P r o g r a m A p p r o p r i a ti o n $

1 9 9 3 -9 4

A c tu a l $ ·

Division 126 - NATIONAL SCIENCE AND TECHNOLOGY CENTRE

1. R u n n in g C o sts

Section 35 o f the Audit Act 1901 (126-01-00)

T otal R unning Costs

1.12

1.12

2,471,155

2,632,498

5,103,653

2,471,15

2,632,49

5,103,64'

T O T A L D IV ISIO N 126 5,103,653 5,103,64

Division 127 - ROY AL C O M M ISSIO N S AN D INQUIRIES

1. R u n n in g C o s ts - A S IS I n q u i r y 5 1,673,140 1,396,08:

2. O t h e r S e rv ic e s

01. Royal Com m ission into A boriginal Deaths in

C ustody - Legal assistance 5 95,000 94,231

T O T A L D IV ISIO N 127 1,768,140 1,490,32(

T O T A L A P P R O P R I A T I O N A C T S 1 & 3 7 5 5 ,2 2 7 ,6 6 2 697,008,561

■ NOTE 38 (cont.)

- Appropriation Acts 2 & 4

Item Sub­

Program

1993-94

A p p ro p ria tio n $

1993-94

A c tu al $

Division 805 - C A PITA L W ORKS A N D SE R V IC E S

1. A c q u is itio n s , B u ild in g s, W o rk s , P l a n t a n d E q u ip m e n t

01. Departm ental plant and equipm ent 2.5 2,627,000 2,578.455

02. Departm ental buildings and works * 3,073.604 3.073.604

03. O verseas property services - Plant

and equipm ent 2.4 2,562,000 2,539.267

04. O verseas property services - A cquisitions,

buildings and w orks under $6m (M oney

received as paym ent from the sale o f surplus

or uneconom ic Australian G overnm ent

properties overseas, not being m oney

received in respect o f any such property the

agreed sale price o f which exceeds $6m ,

may be credited to this item) 2.4 16,571,000 5,781,584

Section 35 of the Audit Act 1901 (865-01-04) 2.4 12,507,925 12,507,925

05. C om m onw ealth offices - Construction

and refurbishm ent 2.3 168.634,000 127.127,352

06. Instalm ent purchases o f sites and buildings -

Capital 2.3 16,846,000 16.845.106

07. Instalm ent purchases o f sites and buildings -

Interest 2.3 9.147,000 9.146.371

08. O verseas property services - M ajor

acquisitions and works 2.4 40,890,000 28.245.683

09. D epartm ental acquisitions o f sites and buildings 3.1 350,000 -

10. Refurbishm ent and fitout o f the O ld

Parliam ent House 2.3 543.000 387,576

11. C om m onw ealth O ffices - A cquisition o f sites

and buildings 2.3 14.677.000

14.637,763

Total A cquisitions, B uildings, W orks, Plant and E quipm ent 288.428.529 222.870.686

2. A d v a n c e s a n d L o a n s

01. C apital advance (for paym ent to the

B usiness Services T rust A ccount) 3.3

800.000 800.000

02. Loan facility (for paym ent to the B usiness

Services T rust A ccount)(m oney received as

repaym ents o f the loan facility m ay be

credited to this item) 3.13

30.000.000 5.500.000

Section 35 of the A udit Act 1901 (865-02-02) 3.13

Total A dvances and Loans

30.800.000 6.300.000

231

N O T E 3 8 ( c o n t .)

A p p r o p r i a t i o n A c t s 2 & 4 ( c o n t .)

Item Sub- 1993-94 1993-94

P ro g ra m A p p ro p riatio n $ A ctu al J

3. N a tio n a l G a lle r y o f A u s tr a lia -

f o r e x p e n d i t u r e u n d e r th e

N ational Gallery o f Australia A ct 1975 1.7 60.000 60,0(i 1

J

4. N a tio n a l L ib r a r y o f A u s tr a lia -

f o r e x p e n d i t u r e u n d e r th e

N ational Library A ct I960 1.10 -

1/

5. N a tio n a l M u s e u m o f A u s tr a lia -

f o r e x p e n d i t u r e u n d e r th e

N ational M useum o f Australia A ct 1980

01. C onstruction o f the National M useum 1.11

T O T A L D IV ISIO N 805 319,288,529 229.230.6i

Division 806 - O TH ER SERV ICES

01. R edevelopm ent of East C ircular Q uay -

G rant to Sydney City C ouncil for the

restoration o f Sydney C ustom s H ouse 1.1

>

f

■ l

02. Cultural Developm ent Initiatives 1.1 - -

T O T A L D IV ISIO N 806 0

TOTAL APPROPRIATION ACTS 2 & 4 319,288,529 229,230,68

TOTAL ANNUAL APPROPRIATIONS 1,074,516,191 9 2 6 ,2 3 9 ,2 4 ---------------------------------------------------------------------------------------------------------- Λ

232

ΤΊΓΓ

NOTE 39

TRUST F U N D

DEPARTMENT OF ADMINISTRATIVE SERVICES

Business Services Trust Account

Legal A u th o rity - Audit Act 1901, section 62A L ot j Purpose - For expenditure relating to:

A. (i)the provision o f services (which services may include the provision o f advice, training, m aterials, works)

and matters incidental thereto being in the fields o f transport, printing, publishing, procurem ent, disposal,

protection, guarding, security, storage, warehousing, packaging, analytical testing, laboratory, valuation,

construction project m anagem ent, equipm ent m anagem ent, contract adm inistration, real property agency,

property m anagement, surveying, land information, construction, construction design, inform ation technology,

establishment and facilities m anagem ent, adm inistrative, and related services, and any com bination or

arrangement of the above m entioned services to the C om m onw ealth or to a C om m onw ealth body

(including a body constituted by a single person) or to a com pany over w hich the C om m onw ealth or a

Commonwealth body is able to exercise control, inside o r outside Australia.

(ii) the provision or services referred to in (i) above and m atters incidental thereto, to any other person or

persons, inside or outside A ustralia.

B (i) for expenditure relating to each o f the follow ing trust account pending its closure (w hether o r not the

expenditure occurs before or after a direction by the M inister that the account shall be closed):

Australian Governm ent Analytical L aboratories T rust A ccount

Purchasing and Sales G roup T rust A ccount

■ Australian G overnm ent Publishing Service T rust A ccount

Australian C onstruction Services Trust A ccount

Australian Property Service T rust Account

" Australian Protective Service T rust A ccount

• Transport and Storage G roup T rust A ccount

·- Australian Valuation O ffice T rust Account

Australian Surveying and Land inform ation G roup T rust A ccount

* · for expenditure com prising paym ents o f m oneys to the C onsolidated Revenue Fund o ther than paym ents of

_ type expressly required to be paid to that Fund under legislation.

■ |j "'ir)TE - Paragraph B. is a reference to the transitional arrangem ents before the consolidation o f those Trust

Accounts listed to the Business Services T rust A ccount, and is no longer applicable.

233

NOTE 39 (cont.)

I

Business Services Trust Account (cont.)

Item Sub- 1993-94 1993-94

P ro g ra m B udget $ A ctu al $

B a la n c e a s a t 1 J u ly 1993 263.340.240 263.340,24

A d d R e c e ip ts :

>

A V O - R eceipts from charging 3.7 21,809,93

B udget funding 3.7 1,806,00

A U SL IG - R eceipts from charging 3.6 15,927.08

B udget Funding 3.6 24,325,00

A PG - R eceipts from charging 3.5 49,828,90

B udget funding 3.5 900.00'

A ssets - R eceipts from charging 3.1 331,848,44

B udget funding 3.1 8.466,00

C apital receipts 3.1 162.49

ACS - R eceipts from charging 3.2 80.738.03

B udget funding 3.2 4,727,00

C lient A dvances 3.2 71,090,13

AG AL - Receipts from charging 3.3 12,831,56'

B udget funding 3.3 6,541,76

FL E ET - Receipts from charging 3.10 133,766,25.

B udget funding 3.10 226,00

Capital receipts 3.10 167.888,43

C O M C A R - R eceipts from charging 3.8 23,584,79

27,500,00 ’ B udget funding 3.8

AG PS - R eceipts from charging 3.4 89,811,271

B udget funding 3.4 7,924.00

Rem ovals - Receipts from charging 3.12 105,498,43

B udget funding 3.12 30,60

D istribution - Receipts from charging 3.9 31,356,371,

B udget funding 3.9 1,400,00

Interiors - Receipts from charging 3.11 19,011,421

B udget funding 3.11 182,00

C lient advances 3.11 51,660,325

Business Support - Receipts from charging 3.13 4,800,41!

B udget funding 3.13 1,115,00

C apital receipts 3.13 «

S taff Adjust. Program - R eceipts from charging 5 101,82?””

B udget funding 5 24.000,00

T O T A L R E C EIPTS 1,421,842.000 1,320,859,52?

234

VOTE 39 (cont.)

Business Services Trust Account (cont.)

Item Sub- 1993-94 1993-94

P ro g ra m B u d g et $ A c tu al $

L ess E x p e n d i t u r e :

A V O - Salaries 3.7 12,832.066

A dm inistration 3.7 9,057,334

C apital expenditure 3.7 473.985

A U SLIG - Salaries 3.6 14,818,352

A dm inistration 3.6 25,703,376

APG - Salaries 3.5 16,637,190

A dm inistration 3.5 42,960.843

A ssets - Salaries 3.1 116,299,725

A dm inistration 3.1 233.890,363

Capital Expenditure 3.1 2,319,453

ACS - Salaries 3.2 41,374,694

A dm inistration 3.2 48,331.191

C lient advances 3.2 71,727,803

AG AL - Salaries 3.3 10.233,002

A dm inistration 3.3 10,373,792

Capital Expenditure 3.3 23,630

FL E E T - Salaries 3.10 14.094,802

A dm inistration 3.10 65.758,589

Capital E xpenditure 3.10 199,578.297

P aym ent to C R F 3.10 21,288.209

C O M C A R - Salaries 3.8

22.466.122

A dm inistration 3.8

20.845,079

Capital E xpenditure 3.8

0

Paym ent to C R F 3.8

5.500.000

AG PS - Salaries 3.4

26,529.703

A dm inistration 3.4

59.178,971

Capital E xpenditure 3.4

3.883.881

4.886.774

Rem ovals - Salaries 3.12

A dm inistration 3.12

74,976.453

32,773

12.031.396

Capital E xpenditure

D istribution - Salaries

3.12

3.9

A dm inistration 3.9

22,978.720

235

NOTE 39 (cont.)

Business Services Trust Account (cont.)

Item Sub- 1993-94 1993-94

P ro g ra m B udget $ A ctual S

E x p e n d i t u r e (c o n t.)

Interiors - Salaries 3.1 1 3,589,195 »

A dm inistration 3.1 1 15,436,55?:

C apital E xpenditure 3.11 34,863 i

C lient advances 3.11 59.982,16: ^

Business Support - Salaries 3.13 2,294,165 Ϊ

A dm inistration 3.13 3,468,13

C apital E xpenditure 3.13 21,18(1

Paym ent to C R F 3.13 916,445'::

Staff A djust. Program - Salaries 5 24,316,51' =5

A dm inistration 5 6,750,095 =

TO T A L E X PE N D ITU R E 1.418.494.000 1,327,895,896 :

>

N o tio n a l B a la n c e a s a t 3 0 J u n e 94 2 6 6 ,6 8 8 ,2 4 0 256,303,86'

I n v e s tm e n t T r a n s a c tio n A c c o u n t -B a la n c e a s a t 1 J u l y 1993 0 M

)

A d d :

Investments (N ote 20) 246.IOI.001

Total Investments 246.101,00

L ess: " > i

Realisation of Investments 0 1

In v e s tm e n t B a la n c e a s a t 3 0 J u n e 94 2 46,101,00

C a s h B a la n c e a s a t 3 0 J u n e 94 10,202.80

236

Profit From Commercial Activities (Cent)

Plus: A rtb a n k ( I ) 5 8 9

Total expenses of commercial trust account activities 835,673

Revenues of Business Services Trust Account activities Asset Services 292,442

Australian Construction Services 70,115

Australian Government Analytical Laboratories 17,272

Australian Government Publishing Service 97,846

Australian Property Group 32,832

Australian Surveying & Land Information Group 36,720

Australian Valuation Office 22,436

Comcar 23,070

DAS Distribution 24,664

DAS Fleet 123,704

DAS Interiors Australia 15,713

DAS Removals 84,690

Other 32,258

873,762

Less : Elimination adjustment on consolidation (14,597)

Plus: Net abnormal revenue 9,194

Total Business Services Trust Account Revenue 868,359

Less : Business Services Trust Account Revenue from Government (102,843) Business Services Trust Account Revenue from Commercial Activities 765,516 Plus : Corporate charges recovered 960

Property Rationalisation Trust Account proceeds (2) 15,096

Artbank ( I) 566

Total revenues of commercial trust account activities 782,138

The businesses noted above operate within the Business Services Trust Account, and are subject to determination under Section 41D of the Audit Act 1901.

(1) Artbank does not operate on the Business Services Trust Account, but is subject to determination under Section 4 1D of the Audit Act 1901.

(2) The Property Rationalisation Trust Account receives the proceeds of the Department’s property sales which are made upon the rationalisation of specific property assets held. The Property Rationalisation Trust Account is not subject to determination under Section 41D of the Audit Act 1901.

2 3 7

NOTE 53 - Administered Contingent Liabilities

Total (’$000)

Estimated total amount of contingent liabilities as at balance date Overseas property services Restoration costs of leased buildings 1,900

Disputed construction costs 309

Legal action re variations to agreement 20

2,229

NOTE 54 - Administered Restricted Assets

Total C$000)

Ministerial and Parliamentary Services Secure Communications equipment - estimated value (cost) 7,867 These assets have not been reported in the Statement of Assets and Liabilities

NOTE 55 - Administered Guarantees and Undertakings

Australian Estate Management - Tuggeranong Office Park Deed of Indemnity On 11 October 1989 the Minister for Administrative Services, on behalf of the Commonwealth, gave an undertaking that if for any reason on 20 August 2008 monies held in the TOP Sinking Fund are less than the amount required to redeem the TOP Bond then the Commonwealth will pay the deficiency to ANZ Executors Nominees (NSW) Ltd, as custodian of the Sinking Fund. The purpose of the Sinking Fund is to provide the funds in 2008 for TOP to redeem the Bonds from investors which were used to finance the construction of TOP.

238

» ΝΌΤΕ 39 (cont.)

i: Purpose - For the receipt of all moneys and payment of all expenditure associated with property services, activities incidental to rpoviding property services and other related services provided by the Australian Property Group.

i ^A ustralian P r o p e r t y G r o u p T r u s t A c c o u n t

Australian Property Group Trust Account

L Legal Authority - A u d it A c t 1901, se c tio n 62A

Item S u b ­

P ro g ra m

1993-94

B u d g et $

1993-94

A c tu a l $

Balance as at 1 July 1993 59.547,996 59.547,996

A d d R e c e ip ts :

Current (Rent, Repairs & Maintenance, etc) 3.5 1,244.366,613

Land acquisitions 3.5 659,290

TOTAL RECEIPTS 1,283,000.000 1,245,025.903

L e s s E x p e n d i t u r e :

Current (Administration, Rent, etc) 3.5 1,217,068,024

Land acquisitions 3.5 1,785,946

TOTAL EXPENDITURE 1,283,000,000 1,218,853,970

B A L A N C E A S A T 3 0 J U N E 1994 5 9 ,5 4 7 ,9 9 6 8 5 ,7 1 9 ,9 2 9

INVESTMENTS 0 0

239

Purpose - For receipt of commissions and payment of remuneration to advertising agencies participating in the central advertising system.

M e d ia C o m m is s io n s T r u s t A c c o u n t

NOTE 39 (cont.)

Media Commissions Trust Account

Legal Authority - Audit Act 1901, section 60

Item S u b ­

P ro g ra m

1993-94

B udget $

1993-94

A ctu al $

Balance as at 1 July 1993 783,745 783,74“

A d d R e c e ip ts : 1.3 2.800.000 3.474.4944

L ess E x p e n d itu r e : 1.3 2,800.000 4.258,23»

B A L A N C E A S A T 3 0 J U N E 1994 7 8 3 ,7 4 5 01

INVESTMENTS 0 (jj

C a m p a i g n R e s e r v e T r u s t A c c o u n t

L e g a l A u t h o r i ty - Audit Act 1901. section 62A

Purpose - Receipts from charges on departmental campaign advertising and payment of costs associated with running the central advertising system.

C a m p a ig n R e se rv e T r u s t A c c o u n t

Item S ub­

P ro g ram

1993-94

B udget $

1993-94

A c tu al $

Balance as at 1 July 1993 1,035,553 1,035.55?

A d d R e c e ip ts : 1.3 420,000 27,000

L ess E x p e n d i t u r e : 1.3 420,000 1,061,907

B A L A N C E A S A T 3 0 J U N E 1994 1 ,0 3 5 ,5 5 3 646

INVESTMENTS 0 0

240

' ΝΌΤΕ 39 (cont.)

Transport and Storage Group Property Rationalisation Trust Account

li Legal A u th o r ity - Audit A ct 1901, section 62A

Purpose - For the receipt and paym ent o f all m oneys associated with rationalisation, m odernisation and

replacem ent o f T ransport and Storage G roup properties.

" T ransport a n d S t o r a g e G r o u p P r o p e r t y R a tio n a lis a tio n T r u s t A c c o u n t

Item S ub­

P ro g ram

1993-94

B udget $

1993-94

A ctu al $

B a la n c e a s a t 1 J u ly 1 9 9 3 4,374,690 4,374,690

A d d R e c e ip ts :

Proceeds o f sale o f property 3.14 14,865,527

T O T A L R E C EIPTS 31,150,000 14,865,527

L e s s E x p e n d i t u r e :

O perating paym ents 3.14 9,659,399

T O T A L E X PE N D ITU R E 27,938,000 9,659,399

B A L A N C E A S A T 3 0 J U N E 1994 7 ,5 8 6 ,6 9 0 9 ,5 8 0 ,8 1 8

IN V E ST M E N T S 0 0

241

Purpose - For paym ents to an account authorised to receive m oneys deposited into a film account

as defined in sub-section 124ZZA A (I) o f the Income Tax A ssessm ent Act 1936.

A u s tr a lia n F ilm I n d u s tr y T r u s t A c c o u n t

Item Sub- 1993-94 1993-94

____________________________ P ro g ram B udget $__________ A ctu al $

NOTE 39 (cont.)

Australian Film Industry Trust Account

Legal Authority - Audit Act 1901, section 60

B a la n c e a s a t 1 J u ly 1993 53,293 53,29:2

A d d R e c e ip ts : 1.1

L ess E x p e n d i t u r e : 1.1

0

53.000

02

33.3001

B a la n c e t r a n s f e r r e d to D C A a s a t 30 J a n 94 29 3 19,993$

0 IN V ESTM EN TS 0 di

------------------

Cultural Ministers' Council Trust Account

L e g a l A u t h o r i ty - Audit A ct 1901, section 62A

Purpose - E xpenditure on research and other projects initiated by the Cultural M inisters' Council and its

subordinate body, the Australian Libraries and Inform ation Council, the cost o f w hich will be

m et jointly by the C om m onw ealth and the States.

C u l tu r a l M in is te r s ' C o u n c il T r u s t A c c o u n t

Item S ub­

P ro g ram

1993-94

B udget $

1993-94

A ctu al $

B a la n c e a s a t 1 J u ly 1993 8 1 ,2 2 4

1

81,224

A d d R e c e ip ts : 1.1 8 0 9 .0 0 0 0

L ess E x p e n d i t u r e : 1.1 8 0 9 ,0 0 0 35,000

B a la n c e t r a n s f e r r e d to D C A a s a t 3 0 J a n 9 4 8 1 ,2 2 4 46,224

IN V ESTM EN TS 0 0

242

NOTE 39 (cont.)

Purpose - For the receipt, expenditure and investm ent o f private contributions in relation to the

Political Exchange Program .

Political E x c h a n g e P r o g r a m T r u s t A c c o u n t

Political Exchange Program Trust Account

Legal Authority - A u d it A c t 1901, se c tio n 6 0

Item Sub- 1993-94 1993-94

P ro g ram B udget $ A c tu al $

B a la n c e a s a t 1 J u ly 1993 90.597 90,597

A d d R e c e ip ts : 2.1 37.000 30,500

L ess E x p e n d i t u r e : 2.1 37.000 0

B A L A N C E A S A T 30 J U N E 1994 9 0 ,5 9 7 121,097

IN V ESTM EN TS 0 0

A r t b a n k T r u s t A c c o u n t

Legal A u th o r ity - Audit Act 1901, section 62A

Purpose - (1) for receipt o f C om m onw ealth contributions and revenues derived from the operation o f Artbank;

and (2) for expenditure on program s and operations o f A rtbank.

A rtbank T r u s t A c c o u n t

Item Sub- 1993-94 1993-94

P ro g ra m B u d g et $ A c tu a l $

B a la n c e a s a t 1 J u ly 1993 355.141 355.141

A d d R e c e ip ts : l.l 1.020.000 556.264

L e s s E x p e n d i t u r e : l.l 1.000.000 641,705

B a la n c e t r a n s f e r r e d to D C A a s a t 3 0 J a n 94 37 5 ,1 4 1 2 6 9 ,7 0 0

IN V ESTM EN TS 0 0

NOTE - Separate financial statements are prepared in respect of the Artbank Trust Account pursuant to a determination under section 41D of the Audit Act 1901. Those financial statements are a part of a separate annual report in respect of the operations o f Artbank.

243

NOTE 39 (cont.)

Services for Other Governments and Non-Departmental Bodies

L e g a l A u t h o r i ty - Audit Act 1901, section 60

Purpose - paym ent o f costs in connection with services perform ed on behalf o f other governm ents

and non-departm ental bodies.

Services for Other Governments and Non-Departmental Bodies

Item Sub- 1993-94 1993-94

P ro g ram B udget $ A ctual $

B a la n c e a s a t 1 J u l y 1993 7,296.480 7.296.48C

A d d R e c e ip ts : 15,152,000

Comcare Receipts 1,498,981

Australian Cultural Developm ent Office 1.1 5,030,529

National Gallery o f Australia 1.7 9,115,869

Australian National M aritim e M useum 1.8 3,305,290

National Film and Sound Archive 1.9 74,890

National Library o f A ustralia 1.10 21,836,625

National M useum of Australia 111 7,493,145

National Science and Technology Centre 1.12 67,026

Ionospheric Prediction Service 2.2 468,421

Australian Estate M anagem ent 2.3 656,790

Overseas Property Group 2.4 1,922.870

Australian Construction Services - Client Advances 3.2 22,729,321

DAS Interiors Australia 3.11 0

Purchasing A ustralia 4 5.073,499

Corporate M anagem ent (Regional Coordination) 5 0

T O T A L R ECEIPTS 15,152,000 79,273,256

L ess E x p e n d itu r e : 15,152,000

Com care Expenditure 1,688,557

Australian Cultural Development Office l.l 36.006

Information and Advertising 1.3 26

Australia Council 1.4 4,844,709

National Gallery o f Australia 1.7 9,091,232

Australian National M aritim e Museum 1.8 3,741,465

246

DTE 39 (cont.)

rvices for Other Governments and Non-I)epartmental Bodies (cont.)

1992-93 Item Sub- 1993-94 1993-94

A c tu a l $ P ro g ram B u d g et $ A ctu al $

E x p e n d i t u r e (c o n t.)

National Film and Sound Archive 1.9 61.264

N ational Library o f A ustralia 1.10 22,006,024

National M useum o f A ustralia 1.1 1 7,425,943

National Science and Technology Centre 1.12 61.508

Ionospheric Prediction Service 2.2 320,526

A ustralian Estate M anagem ent 2.3 319,787

O verseas Property G roup 2.4 615,198

A ustralian Construction Services - C lient Advances 3.2 9,237,336

A ustralian G overnm ent Analytical Laboratories 3.3

DA S Interiors A ustralia 3.11

Purchasing A ustralia 4 4,563,093

C orporate M anagem ent (Regional Coordination) 5 6,322

T O T A L E X PE N D ITU R E 15,152.000 64,018,996

B A L A N C E A S A T 30 J U N E 1994 7 ,2 9 6 ,4 8 0 2 2 ,5 5 0 ,7 4 0

IN V E ST M E N T S 0 0

Other Trust Moneys - Administrative Services

e g a l A u t h o r i ty - A u d it A c t 1901, se c tio n 60

urpose - for receipt o f m oneys tem porarily held in trust for other persons.

>ther Trust Moneys - Administrative Services

Item Sub- 1993-94 1993-94

P ro g ram B udget $ A c tu al $

Balance as at 1 July 1993 2,506,588 2,506.588

A d d R e c e ip ts : 7.000,000 2,418,008

L e s s E x p e n d itu r e : 7,000,000 2,973.039

B A L A N C E A S A T 3 0 J U N E 1994 2 ,5 0 6 ,5 8 8 1 ,9 5 1 ,5 5 7

IN V ESTM EN TS 0 0

2 4 7

NOTE 40 - Act of Grace Payments, Waivers, Amounts Written Off, and Losses and Deficiencies Number Total

$

T h ere w e re no A c t o f G ra ce P a y m en ts m ad e p u rsu a n t to S 3 4 A (1 ) A u d it A c t 1901

N o w a iv e rs o f a m o u n ts d u e to th e C o m m o n w e a lth w ere m ade

p u rsu a n t to S 7 0 C (2 ) A u d it A c t 1901.

A m o u n ts w ritten o f f in a c c o rd a n c e w ith S e c tio n 7 0 C (1 ) o f the A u d it A ct 1901

L o sse s o r d e fic ie n c ie s in p u b lic m oneys 0 0

Irre c o v e ra b le a m o u n ts o f re v en u e 91 5 8 ,0 0 0

Irre c o v e ra b le d e b ts a n d o v e rp ay m en ts 357 5 8 6 ,3 5 5

A m o u n ts o f re v en u e a n d d e b ts, the re co v e ry o f w h ic h has

b e en d e te rm in e d to be u n e c o n o m ic a l 352 196,099

V a lu e o f lost, d e fic ie n t, c o n d e m n e d , u n se rv ic e a b le o r o b so le te sto res 93 1,062,197

T o ta l a m o u n ts w ritte n o f f in a cc o rd a n c e w ith S e c tio n 7 0 C (1 )

o f the A u d it A ct 1901 893 1,902,651

L o sse s and d e fic ie n c ie s u n d e r P art X IIA o f th e A u d it A ct

P ro p e rty losses 3 16,329

P ro p e rty d am ag e 1 4 ,3 7 6

L o ss o f p u b lic m o n ey s 2 114,000

6 134,705

NOTE 41 - Administered Act of Grace Payments, Waivers, and Amounts Written Off Number Total $

T h ere w e re no A ct o f G ra ce P a y m en ts m ade p u rsu a n t

to S 3 4 A ( 1) A u d it A c t 1901.

N o w a iv e rs o f a m o u n ts d u e to the C o m m o n w e a lth w e re m ad e

p u rsu a n t to S 7 0 C (2 ) A u d it A ct 1901.

A m o u n ts w ritte n o ff in a c c o rd a n c e w ith S ectio n 7 0 C ( 1) o f the A u d it A c t 1901

L o sse s o r d e fic ie n c ie s in p u b lic m o n ey s

Irre c o v e ra b le a m o u n ts o f re v en u e

Irre c o v e ra b le d eb ts a n d o v e rp a y m e n ts

A m o u n ts o f re v en u e a n d d e b ts, the reco v ery o f w h ic h has

been d e te rm in e d to b e u n e c o n o m ic a l

V a lu e o f lost, d e fic ie n t, c o n d e m n e d , u n se rv ic e a b le o r o b so le te stores

T otal a m o u n ts w ritten o f f in a c c o rd a n c e w ith S e c tio n 7 0 C (1 )

o f the A u d it A c t 1901 20 720,328

0 0

0 0

1 1,450

19 7 1 8 ,8 7 8

0 0

248

NOTE 42 - Commitments

Total c$ooo)

- Not later than one year 189,807

- Later than one year but not later than two years 214,063

- Later than two years but not later than five years 527,335

- Later than five years 1,792

Total Commitments 932,997

NOTE 43 - Non Cancellable Operating Lease Commitments Total c$ooo)

- Not later than one year 12,963

- Later than one year but not later than two years 11,190

- Later than two years but not later than five years 21,928

- Later than five years 19,325

Total Non Cancellable Operating Lease Commitments 65,406

NOTE 44 - Agreements Equally and Proportionately Unperformed Total (’$000)

- Not later than one year 65,406

- Later than one year but not later than two years 13,031

- Later than two years but not later than five years 12,211

- Later than five years 2,958

Total Agreements Equally and Proportionately Unperformed 93,606

NOTE 45 - Finance Lease Liability

Total c$ooo)

- Not later than one year 442

- Later than one year but not later than two years 442

- Later than two years but not later than five years 1,325

- Later than five years 856

3,065

Less : Future Finance Charge (1,202)

Total Finance Lease Liability _____ f,863

249

Total c$ooo)

- Not later than one year 110,339

- Later than one year but not later than two years 103,385

- Later than two years but not later than five years 41,918

- Later than five years 24,056

NOTE 46 - Administered Commitments

Total Administered Commitments 279,698

NOTE 47 - Administered Non Cancellable Operating Lease Commitments Total c$ooo)

- Not later than one year 31,448

- Later than one year but not later than two years 26,200

- Later than two years but not later than five years 46,898

- Later than five years 52,981

Total Administered Non Canvellable Operating Lease Commitments 157,527

NOTE 48 - Administered Agreements Equally and Proportionately Unperformed Total c$ooo)

- Not later than one year 68,242

- Later than one year but not later than two years 2,295

- Later than two years but not later than five years 500

- Later than five years 0

Total Administered Agreements Equally and Proportionately Unperformed 71,037

NOTE 49 - Contingent Liabilities

Total C$000)

Estimated total amount of contingent liabilities as at balance date Compensation claims 1,228

Guarantee 7,025

Total Contingent Liabilities _____ 8,253

250

Total $

The aggregate amount received or due and receivable by the auditors for auditing the Financial Statements was 1,126,500

NOTE 51 - Executives' Remuneration

Total $

The number of Executive Officers who received or were due to receive income of $ 100,000 or more Number

NOTE 50 - Auditors' Remuneration

$100,000 - $109,999 2

$110,000 - $119,999 31

$120,000 - $129,999 1

$130,000 and above 7

The aggregate amount received or due and receivable by all Departmental Senior Executive Officers was 21,616,795

And the amount of performance based pay paid during the year was 582,557

NOTE 52 - Profit From Commercial Activities

Total c$ooo)

Expenses of Business Services Trust Account activities Asset Services 301,151

Australian Construction Services 68,084

Australian Government Analytical Laboratories 19,792

Australian Government Publishing Service 92,660

Australian Property Group 30,050

Australian Surveying & Land Information Group 38,523

Australian Valuation Office 19,002

Comcar 30,506

DAS Distribution 29,292

DAS Fleet 86,289

DAS Interiors Australia 15,645

DAS Removals 75,680

Other 31,521

838,195

Less : Elimination adjustment on consolidation (3,111)

Total for Business Services Trust Account 835,084

251

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

CONSOLIDATED FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

253

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of the Business Services Trust Account for the year ended 30 June 1994. The statements comprise:

• Balance Sheet

• Profit and Loss Statement

• Statement of Cash Flows

• Certificate by Departmental Secretary and General Manager, and

• Notes to and forming part of the financial statements.

The Departmental Secretary and the General Manager Commercial Treasury and Marketing are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

Australian National Audit Office, GPO BOX 707, Canberra ACT 2601 e Telephone (06) 203 7500 · Fax (06) 273 5355

254

The audit report on the 1993-94 financial statements of DAS Interiors Australia, a sub­ program within the Business Services Trust Account was qualified because non-budget client moneys which should have been held in a separate trust account were being paid into the Business Services Trust Account by DAS Interiors Australia. This matter was not considered to be material in terms of the Business Services Trust Account’s financial statements.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of the Business Services Trust Account and in my opinion:

• the statements are based on proper accounts and records

• the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of the Business Services Trust Account as at that date, and

• the statements are in accordance with the guidelines for Financial Statements of Public Authorities of Public Authorities and Commercial Activities.

J.C. Taylor Auditor-General

Canberra

/3 October 1994

255

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

CERTIFICATE ON FINANCIAL STATEMENTS

In our opinion

(a) the accompanying accounts show fairly the profit of the Business Services Trust Account for the year ended 30 June 1994

(b) the accompanying accounts show fairly the financial position of the Business Services Trust Account as at 30 June 1994

(c) the accompanying accounts show fairly the cash flows of the Business Services Trust Account during the year ended 30 June 1994

(d) the accompanying accounts of the Business Services Trust Account have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities, which require compliance with Statements of Accounting Concepts and applicable Accounting Standards.

Dated this

----

Greg Williams John Mellors

General Manager Secretary

Commercial Treasury & Marketing

2 5 6

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT CONSOLIDATED PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

DERATING REVENUE Asset Services Australian Construction Services Australian Government Analytical Laboratories

Australian Government Publishing Service Australian Property Group Australian Surveying & Land Information Group Australian Valuation Office lomcar GAS Distribution

GAS Fleet GAS Interiors Australia GAS Removals Other

TOTAL OPERATING REVENUE

OPERATING EXPENSES Asset Services Australian Construction Services Australian Government Analytical Laboratories

Australian Government Publishing Service Australian Property Group Australian Surveying & Land Information Group

Australian Valuation Office Comcar DAS Distribution DAS Fleet DAS Interiors Australia DAS Removals

Dther

TOTAL OPERATING EXPENSES

OPERATING PROFIT BEFORE ABNORMAL ITEMS

ABNORMAL ITEMS

IT OPERATING PROFIT

[-Accumulated Losses at beginning of year [Gransfer to other agencies ["Transfer from Reserves

TOTAL AVAILABLE FOR APPROPRIATION

Transfer t o Reserves ^Dividend p a i d t o CRF

^ACCUMULATED LOSSES AT END OF YEAR

Note

2

3

16

1993/94 1992/93 $ ' 000 $•000

2 9 2 , 4 4 2 3 2 8 , 5 3 8

7 0 ,1 1 5 9 1 , 8 4 0

1 7 , 2 7 2 1 9 , 0 4 0

9 7 , 8 4 6 9 9 , 7 2 2

3 2 , 8 3 2 3 6 , 6 5 7

3 6 , 7 2 0 3 5 , 4 1 2

2 2 , 4 3 6 2 2 , 5 9 4

2 3 , 0 7 0 2 6 , 2 4 2

2 4 , 6 6 4 2 7 , 9 6 6

1 2 3 , 7 0 4 1 0 6 , 5 7 6

1 5 , 7 1 3 1 6 , 8 7 4

8 4 , 6 9 0 7 9 , 2 8 8

3 2 , 2 5 8 6 , 2 6 8

873,762 897,017

3 0 1 ,1 5 1 3 2 0 , 0 9 5

6 8 , 0 8 4 8 9 , 2 3 8

1 9 , 7 9 2 2 0 , 1 1 2

9 2 , 6 6 0 9 6 , 9 1 3

3 0 , 0 5 0 3 4 , 2 3 9

3 8 , 5 2 3 4 2 , 4 1 4

1 9 , 0 0 2 1 8 , 9 0 6

3 0 , 5 0 6 3 7 , 3 7 8

2 9 , 2 9 2 3 3 , 9 2 5

8 6 , 2 8 9 8 3 , 3 6 6

1 5 , 6 4 5 1 4 , 2 6 2

7 5 , 6 8 0 6 9 , 9 2 5

3 1 , 5 2 1 4 , 7 3 4

838,195 865,507

35,567 31,510

9 , 1 9 4 ( 1 4 , 6 7 6 )

44,761 16,834

( 2 5 , 6 0 7 ) ( 1 7 , 8 9 2 )

0 ( 4 , 0 6 5 )

0 5 , 0 0 0

19,154 (123)

( 1 , 6 2 4 ) ( 2 5 , 4 8 4 )

( 18, 000) 0

(470) (25,607)

A e a c c o m p a n y i n g N o t e s f o r m a n i n t e g r a l p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s

257

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 1994

Note 1993/94 1992/S* $'000 $ ' o o c *

CURRENT ASSETS Cash 258,527 267,8 1

Receivables 4 88,551 88,11

Inventories 5 13,755 21,46

Other 6 14,720 20,0(1

TOTAL CURRENT ASSETS 375,553 397,441

NON-CURRENT ASSETS Receivables 7 257 2! i

Property, Plant and Equipment 8 428,318 388,1Ί

Intangibles 9 6,837 6,144

TOTAL NON-CURRENT ASSETS 435,412 394,581

TOTAL ASSETS 810,965 7 9 2,028

CURRENT LIABILITIES Creditors 10 81,560 89,8:

Provisions 11 50,792 53,7(1

Other 12 119,390 117,7(1

TOTAL CURRENT LIABILITIES 251,742 261,24

NON-CURRENT LIABILITIES Creditors 13 1,426 1, 56!

Borrowings 14 203,338 203,331

Provisions 15 53,420 55,04

TOTAL NON-CURRENT LIABILITIES 258,184 259,95"

TOTAL LIABILITIES 509,926 521,191

NET ASSETS 301,039 27 0,82(1

EQUITY Capital 174,865 173,36!

Reserves 126,644 123,07!

Accumulated Losses (470) (25,60'

TOTAL EQUITY 16 301,039 270,82.S

T h e a c c o m p a n y i n g N o t e s f o r m a n i n t e g r a l p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s I

258

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 1994

3 CASH FLOWS FROM OPERATING ACTIVITIES

3 (Inflows ^Receipts from custom ers ; Interest re c e iv e d ilParliamentary a p p ro p ria tio n s

::TOther o p e ra tin g r e c e ip ts

3 Outflows 3(Payment to s u p p lie rs a·'Payment to s t a f f : Interest p a id

either o p e ra tin g payments

Met cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

I Inflows uProceeds f r o m s a l e o f e q u i p m e n t

^ P a r l i a m e n t a r y a p p r o p r i a t i o n

it Outflows | payment f o r p r o p e r t y , p l a n t & e q u i p m e n t

r Bet cash used by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Inflows ^Borrowings P a r l i a m e n t a r y a p p r o p r i a t i o n

jJDther

Outflows i 3 Repayment o f b o r r o w i n g s ? 3pividend p a i d t o CRF

n p a p i t a l r e p a y m e n t t o CRF

j h a n s f e r t o o t h e r a g e n c i e s

i|pther

■let cash provided by financing activities

Ret increase/ (decrease) in cash held

Bash a t b e g i n n i n g o f r e p o r t i n g p e r i o d

CASH AT END OF REPORTING PERIOD

Note

17

1993/94 1992/93 $ 1 000 $ 1 000

813,909 841,099 11,891 14,555

83,643 65,123

6,599 7,568

476,693 469,570 312,496 329,783 15,060 18,638

68,977 75,807

42,816 34,547

169,494 95, 732 0 1, 162

218,276 164,221

(48,782) (67,327)

5, 507 5,700

14, 800 6,900

0 1,333

5,628 5,815

18,000 0

0 11,492

0 342

0 416

(3,321) (4,132)

(9,287) (36,912)

267,814 304,726

258,527 267,814

■ h e a c c o m p a n y i n g N o t e s f o r m a n i n t e g r a l p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s

259

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

1. Summary of Significant Accounting Policies

Reporting Entity

Business Services Trust Account (BSTA) is a Group two trust account established under section 62A of the A u d i t A c t 1901 principally for the provision of common services to

Commonwealth government departments and agencies. Accounts are published for individual business units and for the BSTA.

Basis of Accounting

The financial statements have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities issued by the Minister for Finance in January 1994. The financial statements conform with Statements of Accounting Standards and Concepts issued by the Institute of Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants.

The accounts have been prepared in accordance with the historical cost convention, unless otherwise stated.

Principles of Consolidation

The accounts of the Business Services Trust Account are a consolidation of the operations of the commercial business undertakings of the Department of Administrative Services operating through the Group two trust account.

The accounts of the businesses are prepared for the same reporting period as the Business Services Trust Account, using consistent accounting policies. Where necessary, adjustments are made at balance date to bring to account the effects of

any dissimilar accounting policies.

Transactions between businesses within the Business Services Trust Account are eliminated on consolidation.

Property Plant and Equipment

Valuation

Property, plant and equipment are recorded at cost. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2,000 are expensed at the

time of purchase.

2 6 0

Property, plant and equipment are valued at least every five years. Land and buildings were revalued at market value as at 31 May 1994 by an independent valuer.

The carrying value of non-current assets does not exceed their recoverable amount.

Depreciation

Depreciation is provided on a straight line basis on all property, plant and equipment at rates calculated to allocate the cost of those assets over their estimated useful lives.

Leasehold Improvements

Leasehold improvements are amortised over the term of the lease.

Intangibles

Intangible assets are brought to account at cost and amortised over the period expected benefits will be received.

Research and development costs incurred during the financial year are deferred and will be amortised over the period expected benefits will be received.

Inventories

Manufacturing and maintenance

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each item to its present location and condition are accounted for as follows:

Raw materials - purchase cost on an average cost

(weighted) basis; and

Finished goods and work in progress - cost of direct material and labour plus attributable costs that are capable of being allocated on a reasonable basis.

Long term construction contracts

Construction work in progress is stated at cost plus any profit recognised to date (based on percentage completion of each contract) less progress billings. Costs include all direct costs related to specific contracts. Where a loss is

expected on completion, the work in progress is reduced to the level of recoverability. Where the progress billings exceed the gross work in progress, the amount is recorded as unearned income.

261

Employee Entitlements

Provision is made for employees' long service leave and recreational leave entitlements.

Long Service Leave

Long service leave is provided for those employees with five years or more service. The provision is dissected into current and non-current liability components based on expected usage in next year.

Recreation Leave

Recreation leave is provided for those employees who have an entitlement at balance date. The provision includes a leave loading component and is classified as a current liability.

Leases

Finance lease

Leases of non-current assets, where substantially all of the risks and benefits incidental to ownership effectively pass to the group are classified as finance leases. The lease is capitalised at the present value of the minimum lease payments, and amortised over the period expected benefits from

the use of the asset will accrue. A corresponding liability is established, with each lease payment allocated between reduction of the lease liability and interest expense.

Operating lease

Leases of non-current assets, where substantially all the risks and benefits incidental to ownership effectively remain with the lessor are classified as operating leases. Operating lease payments are charged as expenses in the determination of

operating profit.

Client Advances

Moneys advanced by client organisations for the payment of accounts to third parties for construction works are included as a liability in the balance sheet. These funds are

separately accounted for and applied only for the benefit of the client. The inflow and outflow of these moneys have not been shown in the profit and loss account of the entity.

Moneys received from non-Commonwealth Public Account clients have been placed in a separate trust account from 1 July 1992.

262

Unearned Income

D e p o s i t s a n d p r e p a y m e n t s r e c e i v e d f o r s e r v i c e s y e t t o b e

r e n d e r e d a r e r e c o r d e d i n t h e b a l a n c e s h e e t a t t h e t i m e o f

t h e i r r e c e i p t a s a l i a b i l i t y a n d a r e t r a n s f e r r e d t o p r o f i t a n d

l o s s s t a t e m e n t a t t h e t i m e t h e s e r v i c e i s p r o v i d e d .

Segment Reporting

The group operates in Public Administration and this covers a number of industry segments. Details are set out in Note 27.

The group's activities are primarily conducted within Australia.

Insurance

Revenue Recognition

DAS Removals provides indemnity cover for household effects during every stage of a removal under its comprehensive indemnity scheme. Under the indemnity scheme, revenue is

recognised on completion of the removal and in the case of storage, on a pro-rata basis at the end of each month.

Insurance Claims

A provision, based on an estimate of the amount of indemnity claims yet to be reported at the end of the financial year is recorded in the accounts. Also included in the provision is

an estimate of the amount of claims reported but unsettled at the end of the financial year.

Claims arising from events that have occurred during this period and have been settled during the period are expensed during the financial year.

Insurance Reserve

DAS Removals carries the first $300,000 risk for fire or catastrophe in store. An amount of $900,000 has been set aside to cover losses resulting from fire or a catastrophic event occurring within the store.

Taxation

The group is not subject to income tax and most indirect taxes and charges, being a Commonwealth Departmental activity. Fringe Benefits tax and amounts in lieu of indirect taxes on work for non-Commonwealth clients are expensed and included in the determination of operating profit.

An amount equivalent of Customs Duty on imports is included in the cost of goods. Where the goods are assets, the amount is included in the capital value of the assets and is amortised over the estimated useful lives of the assets.

263

Capital

The 1990 Memorandum of Understanding between the Departments of Administrative Services and Finance, which describes the financial framework within which the commercial entities of the Department of Administrative Services are to operate, specifies that capital invested by the Commonwealth will be divided into interest bearing capital and equity capital in proportions agreed by Ministers. From 1 July 1991 interest

bearing capital has been classified as long term borrowings and is shown in the financial statements at the agreed amount.

Dividend

The 1990 Memorandum of Understanding specifies that any dividend payments are based on profitability with recognition of the requirement to retain funds for business purposes and the overall budgetary position.

A provision for dividend has not been included in the accounts as the Ministers for Finance and Administrative Services are yet to consider the matter.

Administrative Arrangements

As a result of changed administrative arrangements, COMCAR ceased to operate through the Business Services Trust Account on 1 July 1994 and commenced operation through the COMCAR

Trust Account from the same date.

Details of assets and liabilities transferred to the COMCAR Trust Account on 1 July 1994 are set out in Note 25.

264

2. Operating Profit

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

The operating profit is arrived at after crediting and charging the following specific items:

After crediting as revenue: Parliamentary appropriation - Community Service Obligations 42,883 38,525

- Staffing Adjustment Program 27,065 4,814

Interest 11,923 14,556

Profit on disposal of non-current assets 22,566 2,886

Insurance premium 7,994 8,705

After charging as expense: Salaries and wages 282,040 298,787

Interest 15,029 18,303

Finance lease charges 314 333

Operating lease payments 27,167 29,118

Loss on disposal of non-current assets 423 586

Provisions - depreciation and amortisation 34,391 38,970

- diminution in inventory values 1,263 518

- doubtful debts 1,703 1,749

- employee benefits 28,089 26,017

- insurance 4,563 480

- compensation claims 307 106

- foreseeable losses (741) 424

- loss and damage 849 1,166

3. Abnormal Items

Included in the operating profit are the following abnormal items:

Items credited: Parliamentary appropriation - Redundancy funding 27,403 22,243

- Operating subsidy - COMCAR 14,000 4,500

- Assets purchase 362 0

Assets received free of charge 6,170 1,250

Adjustment of provisions - employee benefits 270 751

Prior year adjustment 606 235

Pre-commercialisation compensation liability assumed by Comcare 1,370 0

Other 1,085 500

Item s c h a r g e d :

5 1 , 2 6 6 2 9 , 4 7 9

R edundancy p a y m e n t s 1 8 , 8 6 4 1 7 , 9 8 4

R e d u c t i o n i n n o n - c u r r e n t a s s e t

A d j u s t m e n t o f p r o v i s i o n s

v a l u e 8 ,5 8 3 4 , 1 8 4

- e m p l o y e e b e n e f i t s 75 34

P r i o r y e a r a d j u s t m e n t 565 1 , 5 5 8

A ccom m odation r a t i o n a l i s a t i o n 151 70

S u r p l u s s t a f f c o s t s 1 2 , 8 7 5 1 7 , 6 5 3

R e s e a r c h & d e v e l o p m e n t c o s t s ■ w r i t t e n o f f 0 376

Pre C o m care c o m p e n s a t i o n c o s t s 0 1 , 3 0 9

O ther 959

4 2 , 0 7 2

987

4 4 , 1 5 5

Net A b n o rm a l I t e m s

265

9 , 1 9 4 ( 1 4 , 6 7 6 )

1993/94 1992/93 $'000 $■000

4. Receivables (Current)

Trade debtors 81,335 91,769

Less: Provision for doubtful debts 4,503 4,155

76,832 87,614

Amount owing from APG Trust Account 10,995 0

Other 724 523

Total Receivables (Current)

5. Inventories

88,551 88,137

Raw material and stores At Cost 5,112 7,495

Less: Provision for diminution in value 141 134

Work in progress

4,971 7,361

At Cost 4,582 10,777

Construction work in progress At Cost 0 0

Less: Progress billing 0 0

Finished goods

0 0

At Cost 4,574 3,564

Less: Provision for diminution in value 372 208

4,202 3,356

Total Inventories 13,755 21,494

6. Other (Current Assets)

Prepayments 6,365 10,266

Consumables 461 500

Unbilled sales 7,474 8,522

Recoverable expenses 420 457

Other 0 256

Total Other Current Assets 14,720 20,001

7. Receivables (Non-Current)

Completed valuation work 257 258

Total Receivables (Non-Current)

8. Property, Plant and Equipment

257 258

Land and building At Cost 485 5,240

Less: Provision for depreciation 24 112

461 5,128

At Independent Valuation 1994 Land 1,858 0

Building 4,205 0

Less: Provision for depreciation 0 0

4,205

2 6 6

0

. 8. Property, Plant and Equipment (continued)

1993/94 $'000

1992/93 $'000

Leasehold improvements At Cost Less: Provision for amortisation

8,951 2,057

5,056 968

6,894 4,088

Total Land and building 13,418 9,216

1

Plant and equipment At Cost Less: Provision for depreciation 142,131

75,618

145,218 67,962

Total Plant and equipment 66,513 77,256

Motor vehicles At Cost Less: Provision for depreciation 369,562

21,175

325,210 23,506

Total Motor vehicles 348,387 301,704

Total Property, plant and equipment 428,318 388,176

Land and buildings were revalued to market value as at 1 May 1994 by Australian Valuation Office.

9. Intangibles

Software licences At Cost Less: Provision for amortisation

4,880 1,530

5,487 1,138

Research & development At Cost Less: Provision for amortisation

3,350

3,487 0

4,349

1,797 0

3,487 1,797

Total Intangibles 6,837 6,146

10. Creditors (Current)

Trade creditors Accrued expenses Lease liability

47,217 33,901 442

44,481 44,914 442

Total Creditors (Current) 81,560 89,837

267

11. Provisions (Current)

Employee entitlements: - Long service leave - Recreation leave - Superannuation - Workers compensation Total Employee entitlements

Other provisions: - Warranties - Third party insurance - Insurance - Loss and damage - Contract disputes - Other Total Other provisions

Total Provisions (Current)

12. Other (Current Liabilities)

Client advances Commitment and preproduction advances Unearned income Construction work in progress

Gross work in progress Less: Progress billing

Unspent redundancy moneys Other

Total Other Current Liabilities

13. Creditors (Non-Current)

Lease liability

Total Creditors (Non-Current)

14. Borrowings (Non-Current)

Loans from Commonwealth Debt capital

Total Borrowings

These are interest bearing loans at the Commonwealth long term bond rate.

15. Provisions (Non-Current)

Employee entitlements: - Long service leave Other provisions: - Office restoration

- Loss and damage

1993/94 1992/93 $'000 $'000

1 1 , 8 6 6 1 2 , 5 9 5

3 5 , 3 4 6 3 6 , 6 4 7

43 267

0 1 , 7 7 0

4 7 , 2 5 5 5 1 , 2 7 9

447 450

983 595

0 28

942 699

0 235

1 , 1 6 5 418

3 , 5 3 7 2 , 4 2 5

5 0 , 7 9 2 5 3 , 7 0 4

5 0 , 7 5 5 5 9 , 6 1 0

1 0 , 6 1 6 1 1 , 1 8 8

5 2 , 9 8 0 3 9 , 7 9 0

2 6 7 , 1 6 2 2 7 1 , 1 3 7 3 , 9 7 5 5 , 4 5 9

951 1 , 1 1 9

113 536

1 1 9 , 3 9 0 1 1 7 , 7 0 2

1 , 4 2 6 1 , 5 6 9

1 , 4 2 6 1 , 5 6 9

1 0 , 0 0 0 1 0 , 0 0 0

1 9 3 , 3 3 8 1 9 3 , 3 3 8

2 0 3 , 3 3 8 2 0 3 , 3 3 8

5 2 , 5 0 1 5 4 ,1 5 3

142 142

777 752

919 894

5 3 , 4 2 0 5 5 , 0 4 7 Total Provisions (Non-Current) 268

16. Equity

1993/94 $■000

1992/93 $'000

Capital

Opening balance Transfer to other Agencies Additional capital from Commonwealth Resource transfer adjustments

173,363 0 800 702

171,968 (3,550) 3,562 1,383

Capital invested at 30 June 174,865 173,363

Capital is repayable to the Commonwealth at such times and in such amounts as the Minister for Finance determines in writing.

Reserves

Asset replacement reserve

Opening balance Transfer from Accumulated Profits

2,434 94

2,304 130

Closing balance 2,528 2,434

Insurance reserve

Opening balance Transfer from Accumulated Profits 2,400 500

1,900 500

Closing balance 2,900 2,400

Vehicle replacement reserve

Opening balance Transfer from Accumulated Profits 78,348 0

78,348 0

Closing balance 78,348 78,348

Capital investment reserve

Opening balance Transfer from Accumulated Profits 7,100 530

1, 000 6, 100

Closing balance 7,630 7,100

Research & development reserve

Opening balance Transfer from Accumulated Profits 1,500 500

0

1,500

Closing balance 2,000 1,500

General reserve

Opening balance Transfer to Accumulated Profits Transfer from Accumulated Profits

31,291 0 0

19,037 (5,000) 17,254

Closing balance 31,291 31,291

Asset revaluation reserve

Opening balance Revaluation during 1993/94

0

1,947

0 0

Closing balance 1,947 0

Total Reserve 126,644 123,073

Note. 16 Equity (continued)

Accumulated Profits/(Losses)

Accumulated

Dividend Paid Profits/(Losses) 1993/94 1992/93 1993/94 1992/93 $■000 $■000 $'000 $■000

1 , 0 0 0 ( 1 9 , 1 2 4 ) 1 , 6 2 7

( 4 2 , 9 5 3 ) ( 3 8 , 5 9 3 )

( 4 , 1 1 7 ) ( 1 , 5 3 2 )

1 1 , 7 2 3 3 , 3 7 1

1 , 0 0 0 4 , 0 0 0 4 , 1 5 2 3 , 4 7 4

( 2 2 , 6 0 5 ) ( 2 2 , 9 3 1 )

3 , 0 0 0 3 , 0 0 0 3 , 9 6 3 3 , 5 2 6

( 1 8 , 7 6 1 ) ( 2 2 , 5 9 2 )

( 1 1 , 3 1 2 ) ( 9 , 6 2 8 )

1 8 , 0 0 0 1 2 , 0 0 0 6 1 , 0 1 2 2 2 , 1 0 3

1 , 1 4 9 1 , 0 2 7

5 , 0 0 0 5 , 0 0 0 8 , 5 3 9 8 , 7 9 1

2 8 , 0 0 0 2 4 , 0 0 0 ( 2 8 , 3 3 4 ) ( 5 1 , 3 5 7 )

( 1 0 , 0 0 0 ) ( 2 4 , 0 0 0 ) 1 0 , 0 0 0 2 4 , 0 0 0

0 0 1 7 , 8 6 4 1 , 7 5 0

1 8 , 0 0 0 0 ( 4 7 0 ) ( 2 5 , 6 0 7 )

D e p a r t m e n t o f A d m i n i s t r a t i v e S e r v i c e s p o l i c y p r o v i d e s f o r e a c h b u s i n e s s u n i t t o o p e r a t e s e p a r a t e l y , w i t h t h e c a p a c i t y t o a p p r o p r i a t e p r o f i t s t o s p e c i f i c r e s e r v e s f o r o p e r a t i n g p u r p o s e s . O n c o n s o l i d a t i o n t h i s p o l i c y h a s r e s u l t e d i n t h e a m o u n t t r a n s f e r r e d t o r e s e r v e s e x c e e d i n g t h e a c c u m u l a t e d r e s u l t s o f t h e b u s i n e s s o p e r a t i o n s .

1993/94 1992/93

17. Cash Flow Reconciliation

$ ' 000 $'000

Net Operating Profit 44,761 16,834

Net gain on disposal of assets (22,143) (2,540)

Depreciation & amortisation 34,391 38,970

Assets written off 8,583 2,938

Assets received free of charge (6,170) (1,250)

Operating Subsidy - Comcar (14,000) (4,500)

Other Abnormal items 0 861

Bad debt expenses 0 636

(Increase)/Decrease in Receivables (413) 22,735

Decrease in Inventories 7,739 9,142

(Increase)/Decrease in Other Current Assets 5,281 (10,585) Decrease in Other Non-Current Assets 0 131

Decrease in Creditors (8,277) (5,982)

Decrease in Provisions (4,539) (2,045)

Increase/(Decrease) in Other Current Liabilitie 1,688 (31,064) Increase in Other Non-Current Liabilities 0 266

Other (4,085) 0

Net cash provided by operating activities

The Business Services Trust Account has a Contingency Funding Facility of $30M provided by the Commonwealth to cover short term liquidity requirements. A short term loan of

$5.5m was borrowed and repaid during the year.

18. Agreements Equally Proportionately Unperformed

Estimated capital expenditure contracted for at the balance date that is payable

42,816 34,547

not later than one year 52,067 62,371

later than one year but not later than 2 yrs 0 0

later than 2 years but not later than 5 yrs 0 0

later than 5 years 0 0

Total

19. Commitments

(a) Operating leases (non-cancellable)

52,067 62,371

not later than one year 9,492 7,554

later than one year but not later than 2 yrs 3,150 6,097

later than 2 years but not later than 5 yrs 18,530 13,100

later than 5 years 19,325 20,881

(b) Finance leases

56,497 47,632

not later than one year 442 442

later than one year but not later than 2 yrs 442 442

later than 2 years but not later than 5 yrs 1,325 1,325

later than 5 years 856 1,295

3,065 3,504

Less future finance charges 1,202 1,516

271

1,863 1,988

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

19. Commitments (continued)

(c) Other Commitments

not later than one year 188,477 164,174

later than one year but not later than 2 yrs 214,063 226,191 later than 2 years but not later than 5 yrs 527,335 667,407 later than 5 years 1,792______ 5,571

931,667 1,063,343

Total Commitments 990,027 1,112,963

20. Superannuation

During the financial year, employees contributed to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. An employer superannuation contribution is paid to the Retirement Benefits Office to meet the assessed employer costs under the respective schemes.

The amount of employer contributions paid and payable in respect of the financial year was 35,969_____ 32,927

21. Contingent Liabilities

Estimated total amount of contingent liabilities at the balance date

Compensation claims Contract claims Guarantee

Total

1,228 370

0 1,396

7,025__________ 0

8,253_______1,766

22. Remuneration of Executives

The number of executive officers received or were due to receive income of $100,000 or more: Number

$100,000 - $109,999 1993/94 2 1992/93

2

$110,000 - $119,999 6 8

$120,000 - $129,999 1 0

$130,000 & above 2 2

The aggregate amount received or due and receivable was ____ 1,306 ____ 1,406

23. Auditors' Remuneration

The aggregate amount received or due and receivable by the auditors for auditing the accounts was ______ 926______ 1,191

2 7 2

1993/94 $ ' 0 0 0

24. Economic Dependency

INormal business activities are dependent upon a significant volume of business with Commonwealth Government Agencies.

25. Events subsequent to Balance Date

(a) Administrative Arrangements Transfers

On 1 July 1994, the following amounts of assets and liabilities were transferred I from the COMCAR segment of the Business Services Trust Account to the COMCAR

Trust Account as a result of changed administrative arrangements.

Total Assets 6,353

Total Liabilities (22,041)

Net Assets (15,688)

Capital 3,073

Accumulated Losses (18,761)

Total Equity (15,688)

Total Liabilities transferred included $11.2m loan provided by the BSTA. On 1 July 1994, $5.5m of the loan was waived by the BSTA.

(b) Capital Restructure

The Minister for Finance and Administrative Services have agreed to restructure Commonwealth capital invested in DASFLEET as of 1 July 1994. The revised arrangement provides for $103m to be

reclassified from equity capital and accumulated profits to interest bearing non current borrowings. A portion of the equity capital was reallocated to other BSTA businesses as of 1 July 1994.

26. Staffing Adjustment Program

Staffing Adjustment Program was created in 1992/93 to meet the surplus staff costs of the BSTA businesses. Parliamentary appropriation of $27m and salaries and related expenses of $28.4m were included in other operating revenue and other operating expenses for 1993/94.

1 9 9 2 / 9 3 $'000

273

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

ASSET SERVICES

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

275

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT ASSET SERVICES INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of Asset Services, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994.

The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and Acting General Manager, and

. Notes to and forming part of the financial statements.

The Departmental Secretary and the Acting General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. 1 have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures

have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit Office, GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 · Fax (06) 273 5355

276

Audit Opinion

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of Asset Services, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements Of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of Asset Services at that date, and

(hi) the statements are in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities.

J.C. Taylor Auditor-General

11 October 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

ASSET SERVICES

CERTIFICATE ON FINANCIAL STATEMENTS

In our opinion

(a) the accompanying accounts show fairly the loss of Asset Services for the year ended 30 June 1994

(b) the accompanying accounts show fairly the financial position of Asset Services as at 30 June 1994

(c) the accompanying accounts show fairly the cash flows of Asset Services during the year ended 30 June 1994

(d) the accompanying accounts of Asset Services have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities, which require compliance with Statements of Accounting Concepts and applicable Accounting Standards.

Dated this day of October 1994

Bob Rosen A/g General Manager

John Mellors Secretary

2 7 8

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT ASSET SERVICES PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

OPERATING REVENUE

Note 1993/94 $ ' 000 1992/93 $'000

Fees Priced Works Parliamentary Appropriation -Community Services Obligation

Other Operating Revenue

10,231 286,101

1,871 4,519

11,057 324,928

2,107 7,689

TOTAL OPERATING REVENUE 302,722 345,781

OPERATING EXPENSES

Cost of Sales Other Operating Costs

212,711 102,552

232,699 104,761

TOTAL OPERATING EXPENSES 315,263 337,460

OPERATING PROFIT BEFORE ABNORMAL ITEMS

2 (12,541) 8,321

ABNORMAL ITEMS 3 (7,210) (6,733)

NET OPERATING PROFIT/(LOSS) (19,751) 1,588

Accumulated Profits at beginning of financial year

1,627 39

TOTAL AVAILABLE FOR APPROPRIATION (18,124) 1,627

Dividend Paid (1,000) 0

ACCUMULATED PROFITS/(LOSSES) AT END OF (19,124) 1,627 FINANCIAL YEAR

The accompanying Notes form an integral part of these financial statements

2 7 9

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT ASSET SERVICES BALANCE SHEET AS AT 30 JUNE 1994

CURRENT ASSETS Cash Receivables Inventories Other

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS Property, Plant and Equipment Intangibles

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

CURRENT LIABILITIES Creditors Provisions Other

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIES Creditors Borrowings Provisions

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

NET ASSETS

EQUITY Capital Reserves Accumulated Profits/(Losses)

TOTAL EQUITY

The accompanying Notes form an integral

Note 1993/94 1992/93 $ ' 000 $'000

61,756 72,189 4 28,003 34,884

5 2,294 2,707

6 7,773 9,587

99,826 119,367

7 14,792 16,441

8 4,939 3,162

19,731 19,603

119,557 138,970

9 34,847 34,321

10 15,096 16,473

11 13,344 14,824

63,287 65,618

12 9 23

12 23,600 23,600

14 19,562 18,216

43,171 41,839

106,458 107,457

13,099 31,513

30,532 29,886 1,691 0

(19,124) 1, 627

15 13,099 31,513

of these financial statements

280

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT ASSET SERVICES STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 1994

Note 1993/94 1992/93

CASH FLOWS FROM OPERATING ACTIVITIES $'000 $ 1 000

Inflows Receipts from customers 298,305 336,951

Interest received iiiliiii 3,197 4,374

Parliamentary appropriations 8,821 12,344

Other operating receipts 1,745 2,086

Outflows Payment to suppliers 148,276 161,736

Payment to staff 117,597 128,390

Interest paid 1,744 2,391

Other operating payments 50,373 54,080

Uet cash used by operating activities 16 (5.922) 9,158

CASH FLOWS FROM INVESTING ACTIVITIES

Inflows Proceeds from sale of equipment 763 2,191

Outflows Payment for property, plant & equipment 6,203 2,106

Net cash used by investing activities (5,440) 85

CASH FLOWS FROM FINANCING ACTIVITIES

Inflows Borrowings 1,929 0

Capital received 0 333

Outflows Borrowings 0 4,929

Dividend paid 1,000 0

Net cash used by financing activities 929 (4,596)

Net decrease in cash held (10,433) 4,647

Cash at beginning of reporting period 72,189 67,542

CASH AT END OF REPORTING PERIOD 61,756 72,189

The accompanying Notes form an integral part of these financial statements

281

DEPARTMENT OP ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT ASSET SERVICES NOTES TO AND FORMING PART OP THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1.Summary of Significant Accounting Policies

Reporting entity

Asset Services is a segment of the Business Services Trust Account (BSTA) administered by the Department of Administrative Services.

Basis of Accounting

Asset Services, a segment of the BSTA, is required to prepare financial statements under a determination of the Minister for Finance pursuant to section 41D of the A u d i t A c t 1 9 0 1 . The

financial statements have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities issued by the Minister for Finance in January 1994. The financial statements conform with Statements of Accounting Standards and Concepts issued by the Institute of Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants.

The accounts have been prepared in accordance with the historical cost convention, unless otherwise stated.

Property Plant and Equipment

Valuation

Property, plant and equipment are recorded at valuation. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2,000 are expensed at the time of purchase.

Property, plant and equipment are valued at least every five years. Land and buildings were revalued at market value as at 31 May 1994 by independent valuers from the Australian Valuation Office.

The carrying value of non-current assets does not exceed their recoverable amount.

282

Depreciation

Depreciation is provided on a straight line basis on all property, plant and equipment at rates calculated to allocate the cost of those assets over their estimated useful lives.

Leasehold Improvements

Leasehold improvements are amortised over the unexpired term of the lease or estimated useful life whichever is the shorter.

Intangibles

Intangible assets are brought to account at cost and amortised over the period expected benefits will be received.

Research and development costs incurred during the financial year are deferred and will be amortised over the period expected benefits will be received.

Inventories

Manufacturing and maintenance

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each item to its present location and condition are accounted for as follows:

Raw materials - purchase cost on an average cost (weighted) basis; and

Finished goods and work in progress - cost of direct material and labour plus attributable costs that are capable of being allocated on a reasonable basis.

Long term construction contracts

Construction work in progress is stated at cost plus any profit recognised to date (based on percentage completion of each contract) less progress billings. Costs include all direct costs related to specific contracts. Where a loss is expected on completion, the work in progress is reduced to the level of recoverability. Where the progress billings exceed the gross work in progress the amount is recorded as unearned income.

Employee Entitlements

Provision is made for employees' long service leave and recreational leave entitlements.

283

Long Service Leave

Long service leave is provided for those employees with five years or more service. The provision is dissected into current and non­ current liability components based on expected usage in next year.

Recreation Leave

Recreation leave is provided for those employees who have an entitlement at balance date. The provision includes a leave loading component and is classified as a current liability.

Leases

Operating Leases

Leases of non-current assets, where substantially all the risks and benefits incidental to ownership effectively remain with the lessor are classified as operating leases. Operating lease payments are charged as expenses in the determination of operating profit.

Unearned Income

Deposits and prepayments received for services yet to be rendered are recorded in the balance sheet at the time of their receipt as a liability and are transferred to profit and loss statement at the time the service is provided.

Segment Reporting

Asset Services operates primarily in the building services industry. The entity's activities are primarily conducted within Australia.

Taxation

Asset Services is not subject to income tax and most indirect taxes and charges, being a Commonwealth Departmental activity. Fringe Benefits tax and amounts in lieu of indirect taxes on work for non-Commonwealth clients are expensed and included in the determination of operating profit.

An amount equivalent of Customs Duty on imports is included in the cost of goods. Where the goods are assets, the amount is included in the capital value of the assets and is amortised over the estimated useful lives of the assets.

284

Capital

The 1990 Memorandum of Understanding between the Departments of Administrative Services and Finance, which describes the financial framework within which the commercial entities of the Department of Administrative Services are to operate, specifies that capital

invested by the Commonwealth will be divided into interest bearing capital and equity capital in proportions agreed by Ministers. From 1 July 1991 interest bearing capital has been classified as long term borrowings and is shown in the financial statements at the agreed amount.

Dividend

The 1990 Memorandum of Understanding specifies that any dividend payments are based on profitability with recognition of the requirement to retain funds for business purposes and the overall budgetary position.

A provision for dividend has not been included in the accounts as the Ministers for Finance and Administrative Services are yet to consider the matter.

Interest in Joint Venture

Interest in the joint venture with Australian Construction Services for the operation of Information Technology facilities is brought to account in the respective classifications, by

including the appropriate share of individual assets employed and liabilities and expenses incurred. Details of the Assets, Liabilities and Expenses are shown in Note 19.

Cash

For the purposes of the Statement of Cash Flows, cash represents cash at bank and on hand.

285

1993/94 1992/93 $ ' 000 $'000

2. Operating Profit

The operating loss is arrived at after crediting and charging the following specific items:

After crediting as revenue: Parliamentary appropriation - Community Service Obligations 1,871 2,107

Interest 3,197 4,374

Profit on disposal of non-current assets 239 0

After charging as expense: Salaries and wages 105,135 108,788

Interest 1,744 2,391

Operating lease payments 5,785 6,449

Loss on disposal of non-current assets Provisions 172 149

- depreciation and amortisation 5,494 5,577

- diminution in inventory values 638 0

- doubtful debts 407 1,417

- employee benefits 10,293 12,822

- insurance 350 372

- service warranty 0 6

3. Abnormal Items

Included in the operating loss are the following abnormal items:

Items credited: Parliamentary appropriation - Redundancy funding 6,950 10,237

Resolution of Card Creek project - W Aust 593 0

Other 406 0

Items charged:

7,949 10,237

Redundancy payments 5,208 7,650

Write down of computer equipment 2,322 1,386

Surplus staff costs 7,092 7,500

Other 537 434

15,159 16,970

Net Abnormal Items (7,210) (6,733)

2 8 6

4. Receivables (Current)

1993/94 1992/93 $ 1000 $·000

Trade debtors 29,302 34,749

Less: Provision for doubtful debts 1,299 1,794

28,003 32,955

Loans - other business units 0 1,929

Total Receivables (Current) 28,003 34,884

5. Inventories

Raw material and stores At Cost 2,389 2,791

Less: Provision for diminution in value 95 84

Total Inventories 2,294 2,707

6. Other (Current Assets)

Prepayments 1,022 1,065

Other (Unbilled Sales) 6,751 8,522

Total Other Current Assets

7. Property, Plant and Equipment

7,773 9,587

Land and building At Cost 0 3,551

Less: Provision for depreciation 0 43

0 3,508

Land At Independent Valuation 1,323 0

Building At Independent Valuation 3,759 0

Less: Provision for depreciation 0 0

Leasehold improvements

3,759 0

At Cost 1,140 509

Less: Provision for amortisation 143 241

997 268

Total Land and building 6,079 3,776

Plant and equipment At Cost 17,742 21,824

Less: Provision for depreciation 9,029 9,159

Total Plant and equipment 8,713 12,665

Total Property, plant and equipment 14,792 16,441

287

1993/94 $ ' 000

1992/93 $ ' 0 0 0

Software licences

8. Intangibles

At Cost Less: Provision for amortisation

2,320 868

3,091 902

Research & development At Cost Less: Provision for amortisation

1,452

3,487 0

2,189

973 0

3,487 973

Total Intangibles 4,939 3,162

9. Creditors (Current)

Trade creditors Accrued expenses

16,341 18,506

10,839 23,482

Total Creditors (Current) 34,847 34,321

10. Provisions (Current)

Employee entitlements: - Long service leave - recreation leave & leave bonus - Superannuation

1,721 12,650 37

3,401 12,478 177

Total Employee entitlements 14,408 16,056

Other provisions: - Warranties - Loss and damage

395 293

417 0

Total other provisions 688 417

Total Provisions (Current) 15,096 16,473

11. Other (Current Liabilities)

Commitment and preproduction advances Unearned income - non work in progress 9,131 1,310

9,193 238

Unearned income - Construction work in progress Gross work in progress Less: progress billings 110,935

113,838 2,903 5,393

Total Other Current Liabilities 13,344 14,824

12. Creditors (Non-Current)

Lease liability 9 23

Total Creditors (Non-Current) 9 23

2 8 8

Debt capital

Total Borrowings

These are interest bearing loans at the Commonwealth long term bond rate.

14. Provisions (Non-Current)

: Employee entitlements: - Long service leave

Total Provisions (Non-Current)

23. Borrowings (Non-Current)

15. Equity

Capital

Opening balance

Reallocation capital from Commonwealth Staff transfer adjustment Resource transfer adjustment

Capital invested at 30 June

Capital is repayable to the Commonwealth at such times and in such amounts as the Minister for Finance determines in writing.

Staff transfer adjustment comprises assets and liabilities accompanying the transfer of staff the Staffing Adjustment Program of the Business Services Trust Account.

Reserves

Asset revaluation reserve

Opening balance Revaluation Closing balance

Total Reserve

1993/94 1992/93 $ ' 000 $'000

23,600 23,600

23,600 23,600

19,562 18,216

19,562 18,216

29,886 29,553

0 (1,000)

646 1,348

0 (15)

3 0 , 5 3 2 29,886

to

0 0

1,691 0

1,691 0

1,691 0

2 8 9

1993/94 1992/93 $ '0 0 0 $'000

16. Cash Flow Reconciliation

Net Operating Profit/(Loss) (19,751) 1,588

Gain on disposal of assets (67) 0

Depreciation & amortisation 5,494 5,577

Assets written off 681 0

Computer equipment written down 2,322 0

Gain on closure of loan account (165) 0

Bad debt expenses 407 0

Decrease in Receivables 4,544 8,538

Decrease in Inventories 413 7,150

Decrease in Other Current Assets 1,832 (4,733)

Increase in Creditors 526 (4,525)

Decrease in Provisions (677) (1,886)

Decrease in Other Current Liabilities (1,481) (2,551)

Net cash (used) by operating activities

17. Commitments

(5,922) 9,158

(a) Other Commitments

not later than one year 8,395 18,188

later than one year but not later than 2 yrs 7,192 18,188 later than 2 years but not later than 5 yrs 13,064 54,564

28,651 90,940

Total Commitments 28,651 90,940

Other commitments are estimated for up to five years. Formal lease documents do not exist and administrative arrangements are not limited by time.

290

1993/94 1992/93 $ ' 0 0 0 $ 1000

During the financial year, employees contributed to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. An employer superannuation contribution is paid to the Retirement Benefits Office to meet the assessed employer costs under the respective schemes.

The amount of employer contributions paid and payable in respect of the financial year was 11,053 7,888

18. Superannuation

19. Interest in Joint Venture

Asset Services has an interest in the assets, liabilities, income and expenses of a joint venture for the operation of Information Technology facilities

The interest in the joint venture is included in the principal statements as follows

Current Assets Cash 4,601 3,788

Receivables 1,638 1,373

Other 98 505

6,337 5,666

Non Current Assets Property, Plant & Equipment 4,620 8,673

Intangibles 0 973

4,620 9,646

Current Liabilities Creditors 1,378 1,641

Provisions 352 364

1,730 2,005

Non Current Liabilities Provisions 43 212

43 212

Net Assets

9,184 13,095

The joint venture contributed a loss of $1,985,890 to the operating result

291

1 9 9 3/ 9 4 $ ' 000

Estimated total amount of contingent liabilities at the balance date

Compensation claims 1,165

Guarantees 315

Q W

20. Contingent Liabilities

21. Remuneration of Executives

The number of executive officers received or were due to receive income of $100,000 or more: Number 1993/94 1992/93

$110,000 - $119,999 1 1

The aggregate amount received or due and receivable was _____118

22. Auditors' Remuneration

The aggregate amount received or due and receivable by the auditors for auditing the accounts was _____330

No other services were provided

23. Economic Dependency

Normal business activities are dependent upon a significant volume of business with Commonwealth Government Agencies.

1992/93 $ ' 0 0 0

225 238

116 ------------- ...

440

2 9 2

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN CONSTRUCTION SERVICES

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

293

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN CONSTRUCTION SERVICES INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of Australian Construction Services, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994.

The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and Acting General Manager, and

. Notes to and forming part of the financial statements.

The Departmental Secretary and Acting General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the

evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit Office, GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 · Fax (06) 273 5355

294

Audit Opinion

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of Australian Construction Services, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of Australian Construction Services at that date, and

(iii) the statements are in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities.

/ f , ( - "

J.C. Taylor Auditor-General

9? October 1994

AUSTRALIAN CONSTRUCTION SERVICES

CERTIFICATE ON FINANCIAL STATEMENTS

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

In our opinion

(a) the accompanying accounts show fairly the loss of Australian Construction Services for the year ended 30 June 1994

(b) the accompanying accounts show fairly the financial position of Australian Construction Services as at 30 June 1994

(c) the accompanying accounts show fairly the cash flows of Australian Construction Services during the year ended 30 June 1994

(d) the accompanying accounts of Australian Construction Services have been made out in accordance with Guidelines for Financial Statements of Public Authorities and Commercial Activities, which require compliance with Statements of Accounting Concepts and applicable Accounting Standards.

Dated this day of October 1994

Michael Williams A l/ g General Manager

John Mellors Secretary

2 9 6

AUSTRALIAN CONSTRUCTION SERVICES

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

Note 1993/94 1992/93 $' 000 $' 000

OPERATING REVENUE

F e e s 6 8 , 9 9 7 9 4 , 9 2 3

P a r l i a m e n t a r y A p p r o p r i a t i o n - C o m m u n i t y S e r v i c e O b l i g a t i o n 2 , 6 0 6 2 , 7 4 7

O t h e r O p e r a t i n g R e v e n u e 1 , 9 6 3 2 , 6 8 0

TOTAL OPERATING REVENUE ilia 7 3 , 5 6 6 1 0 0 , 3 5 0

OPERATING EXPENSES

f il l

C o s t o f S a l e s 4 1 , 5 6 1 5 4 , 7 7 2

O t h e r O p e r a t i n g C o s t s 3 6 , 0 7 4 5 2 , 6 3 1

TOTAL OPERATING EXPENSES

jj7 7 , 6 3 5 1 0 7 , 4 0 3

OPERATING LOSS BEFORE ABNORMAL ITEMS 2 ( 4 , 0 6 9 ) ( 7 , 0 5 3 )

A b n o r m a l I t e m s 3 ( 2 9 1 ) ( 9 , 8 6 0 )

NET OPERATING LOSS ( 4 , 3 6 0 ) ( 1 6 , 9 1 3 )

A c c u m u l a t e d L o s s e s a t b e g i n n i n g o f f i n a n c i a l y e a r ( 3 8 , 5 9 3 ) ( 2 1 , 6 8 0 )

ACCUMULATED LOSSES AT END OF FINANCIAL YEAR ( 4 2 , 9 5 3 ) ( 3 8 , 5 9 3 )

T h e a c c o m p a n y i n g N o t e s f o r m a n i n t e g r a l p a r t o f t h e s e F i n a n c i a l S t a t e m e n t s

297

AUSTRALIAN CONSTRUCTION SERVICES

BALANCE SHEET AS AT 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

Note ll|8jit 1993/94 $'000

1992/93 $ ' 000

CURRENT ASSETS C a s h 4 2 , 2 0 4 4 3 , 4 4 9

R e c e i v a b l e s 4 7 , 8 1 4 8 , 7 6 5

I n v e n t o r i e s 0 0

O t h e r 5 5 6 0 1 , 5 2 7

IflliSii

TOTAL CURRENT ASSETS ! 5 0 , 5 7 8 5 3 , 7 4 1

NON CURRENT ASSETS P r o p e r t y , P l a n t & E q u i p m e n t 6 1 3 , 4 1 3 1 9 , 8 8 9

I n t a n g i b l e s 7 0 8 2 4

TOTAL NON CURRENT ASSETS 1 3 , 4 1 3 2 0 , 7 1 3

TOTAL ASSETS 6 3 , 9 9 1 7 4 , 4 5 4

CURRENT LIABILITIES list

C r e d i t o r s 8 7 , 6 6 5 1 1 , 4 8 2

B o r r o w i n g s 9 8 , 9 2 2 1 0 , 9 2 2

P r o v i s i o n s 10 6 , 7 0 6 1 1 , 7 7 7

O t h e r 11 3 1 , 0 9 8 3 0 , 6 9 1

TOTAL CURRENT LIABILITIES 5 4 , 3 9 1 6 4 , 8 7 2

NON CURRENT LIABILITIES B B

B o r r o w i n g s 12 1 2 , 1 8 2 1 2 , 1 8 2

P r o v i s i o n s 13 9 , 3 4 4 1 0 , 8 9 8

TOTAL NON CURRENT LIABILITIES , jj 2 1 , 5 2 6 2 3 , 0 8 0

TOTAL LIABILITIES 7 5 , 9 1 7 8 7 , 9 5 2

NET DEFICIENCY IN ASSETS ( 1 1 , 9 2 6 ) ( 1 3 , 4 9 8 )

EQUITY W *

C a p i t a l 14 3 1 , 0 2 7 2 5 , 0 9 5

A c c u m u l a t e d L o s s e s ( 4 2 , 9 5 3 ) ( 3 8 , 5 9 3 )

NET DEFICIENCY IN EQUITY ( 1 1 , 9 2 6 ) ( 1 3 , 4 9 8 )

T h e a c c o m p a n y i n g N o t e s f o r m a n i n t e g r a l p a r t o f t h e s e F i n a n c i a l S t a t e m e n t s

298

AUSTRALIAN CONSTRUCTION SERVICES

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 1994

IASH FLOWS FROM OPERATING ACTIVITIES

Note 1993/94 $ 1 000 1992/93 $'000

I n f l o w s

R e c e i p t s F r o m C u s t o m e r s I n t e r e s t R e c e i v e d P a r l i a m e n t a r y A p p r o p r i a t i o n s

6 9 , 2 2 0

5 7 0

4 , 7 2 7

9 6 , 9 7 6

8 0 6

5 , 3 0 1

. O u t f l o w s

P a y m e n t s t o S u p p l i e r s P a y m e n t t o S t a f f I n t e r e s t P a i d

5 1 , 0 7 6

2 7 , 9 3 6

1 , 7 0 3

8 3 , 2 0 3

4 9 , 4 4 2

1 , 8 0 9

Net Cash Used by Operating Activities 15 ( 6 , 1 9 8 ) ( 3 1 , 3 7 1 )

CASH FLOWS FROM INVESTING ACTIVITIES

I n f l o w s

P r o c e e d s f r o m S a l e o f P r o p e r t y , P l a n t & E q u i p m e n t 4 7 6 7 9 5

O u t f l o w s

P a y m e n t f o r P r o p e r t y , P l a n t & E q u i p m e n t 5 2 3 3 , 2 7 0

N et Cash Used by Investing Activities ( 4 7 ) ( 2 , 4 7 5 )

CASH FLOWS FROM FINANCING ACTIVITIES

I n f l o w s

P r o c e e d s f r o m B o r r o w i n g s

C a p i t a l R e c e i v e d f r o m C o m m o n w e a l t h

C - r a n t s r e c e i v e d f r o m t h e B S T A

0 0

5 , 0 0 0

5 , 9 2 2

3 . 0 0 0

3 . 0 0 0

Net Cash provided by Financing Activities

? Net Decrease in Cash Held

5 , 0 0 0 1 1 , 9 2 2

( 1 , 2 4 5 ) ( 2 1 , 9 2 4 )

G a s h a t B e g i n n i n g o f R e p o r t i n g P e r i o d 4 3 , 4 4 9 6 5 , 3 7 3

GASH AT END OF REPORTING PERIOD 4 2 , 2 0 4

4 3 . 4 4 9

' T h e a c c o m p a n y i n g N o t e s f o r m a n i n t e g r a l ' P a r t o f t h e s e F i n a n c i a l S t a t e m e n t s

299

AUSTRALIAN CONSTRUCTION SERVICES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

1.Summary of Significant Accounting Policies

Reporting entity

Australian Construction Services is a segment of the Business Services Trust Account (BSTA) administered by the Department of Administrative Services.

On 1 July 1993 the reporting entity changed its name from Project Services to Australian Construction Services.

Basis of Accounting

Australian Construction Services, a segment of the BSTA, is required to prepare financial statements under a determination of the Minister for Finance pursuant to section 41D of the A u d i t A c t 1 9 0 1 . The financial statements have been made out in

accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities issued by the Minister for Finance in January 1994. The financial statements conform with Statements of Accounting Standards and Concepts

issued by the Institute of Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants. The accrual basis of accounting has been adopted in respect of information disclosed in the financial statements and notes thereto. The accounts have been prepared in accordance with the historical cost convention, unless otherwise stated.

The accounts have been prepared on a going concern basis as the aggregate resources of the BSTA will be utilised to the extent necessary to meet the obligations of each business unit of the BSTA.

Property Plant and Equipment

Valuation

Property, plant and equipment are recorded at valuation. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2,000 are expensed at the time of purchase.

Property, plant and equipment are valued at least every five years. Land and buildings were revalued at market value as at 31 May 1994 by independent valuers from the Australian Valuation Office.

300

AUSTRALIAN CONSTRUCTION SERVICES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

The carrying value of non-current assets does not exceed their recoverable amount.

Depreciation

Depreciation is provided on a straight line basis on all property, plant and equipment at rates calculated to allocate the cost of those assets over their estimated useful lives.

Leasehold Improvements

Leasehold improvements are amortised over the unexpired term of the lease or the estimated useful life of the improvements, whichever is the shorter.

Intangibles

Intangible assets are brought to account at cost and amortised over the period expected benefits will be received.

Inventories

Long term construction contracts

Construction work in progress is stated at cost plus any profit recognised to date (based on percentage completion of each contract) less progress billings. Costs include all direct costs related to specific contracts. Where a loss is expected on completion, the work in progress is reduced to the level of recoverability. Where the progress billings exceed the gross work in progress the amount is recorded as unearned income.

Employee Entitlements

Provision is made for employees1 long service leave and recreational leave entitlements.

Long service leave is provided for those employees with five years or more service. The provision is dissected into current and non-current liability components based on expected usage in

next year.

Recreation leave is provided for those employees who have an entitlement at balance date. The provision includes a leave loading component and is classified as a current liability.

301

AUSTRALIAN CONSTRUCTION SERVICES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

Leases

Operating lease

Leases of non-current assets, where substantially all the risks and benefits incidental to ownership effectively remain with the lessor are classified as operating leases. Operating lease payments are charged as expenses in the determination of operating profit.

Client Advances

Moneys advanced by Commonwealth Public Account clients for the payment of accounts due to third parties for construction works are included as a liability in the balance sheet. These funds are separately accounted for and applied only for the benefit of

the client. The inflow and outflow of these moneys have not been shown in the profit and loss account of Australian Construction Services.

Moneys received from non-Commonwealth Public Account clients have been placed in a separate trust account.

Unearned Income

Deposits and prepayments received for services yet to be rendered are recorded in the balance sheet at the time of their receipt as a liability and are transferred to profit and loss statement at the time the service is provided.

Segment Reporting

Australian Construction Services operates primarily in the building services industry. The entity's activities are primarily conducted within Australia.

Taxation

Australian Construction Services is not subject to income tax and most indirect taxes and charges, being a Commonwealth Departmental activity. Fringe Benefits tax and amounts in lieu of indirect taxes on work for non-Commonwealth clients are expensed and included in the determination of operating profit.

302

AUSTRALIAN CONSTRUCTION SERVICES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

An amount equivalent of Customs Duty on imports is included in the cost of goods. Where the goods are assets, the amount is included in the capital value of the assets and is amortised over the estimated useful lives of the assets.

Capital

The 1990 Memorandum of Understanding between the Departments of Administrative Services and Finance, which describes the financial framework within which the commercial entities of the Department of Administrative Services are to operate, specifies

that capital invested by the Commonwealth will be divided into interest bearing capital and equity capital in proportions agreed by Ministers. From 1 July 1991 interest bearing capital has been classified as long term borrowings and is shown in the financial statements at the agreed amount.

Dividend

The 1990 Memorandum of Understanding specifies that any dividend payments are based on profitability with recognition of the requirement to retain funds for business purposes and the overall budgetary position.

A provision for dividend has not been included in the accounts as the Ministers for Finance and Administrative Services are yet to consider the matter.

Interest in Joint Venture

Interest in the joint venture with Asset Services for the operation of information technology facilities is brought to account in the respective classifications, by incorporating the appropriate share of individual assets employed, liabilities,

income and expenses. Details are shown in note 16.

Cash

For the purposes of the statement of cashflows cash represents cash at bank and cash on hand.

303

AUSTRALIAN CONSTRUCTION SERVICES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

6. Property, Plant and Equipment

L a n d a n d b u i l d i n g A t C o s t

L e s s : P r o v i s i o n f o r d e p r e c i a t i o n

L a n d

A t V a l u a t i o n

B u i l d i n g s

A t V a l u a t i o n

L e s s : P r o v i s i o n f o r d e p r e c i a t i o n

L e a s e h o l d i m p r o v e m e n t s A t C o s t

L e s s : P r o v i s i o n f o r a m o r t i s a t i o n

T o t a l L a n d a n d b u i l d i n g

P l a n t a n d e q u i p m e n t A t C o s t

L e s s : P r o v i s i o n f o r d e p r e c i a t i o n

T o t a l P l a n t a n d e q u i p m e n t

Total Property, plant and equipment

7. Intangibles

R e s e a r c h & D e v e l o p m e n t - a t C o s t L e s s : P r o v i s i o n f o r a m o r t i s a t i o n

Total Intangibles

8. Creditors (Current)

T r a d e c r e d i t o r s A c c r u e d e x p e n s e s

Total Creditors (Current)

9. Borrowings (Current)

L o a n s - o t h e r b u s i n e s s u n i t s

These are interest bearing loans at the Commonwealth long term bond rate.

1993/94 1992/93 $' 000 $ ' 000

0 482

0 (2

0 48C

40 0

95 c

0 0

95 0

790 63C

(402) (215

388 415

523 895

26,654 31,444

(13,764) (12,450

12,890 18,994

13,413 19,889,

0 824

0 0

0 8 2 1

2,490 5,275

5,175 6,207

7,665 11,481

8.922 10.922,

306

AUSTRALIAN CONSTRUCTION SERVICES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

1993/94 1992/93 $'000 $ 1 000

.10. Provisions (Current)

:Employee en titlem en ts: - Long serv ice leave 1,177 3,674

- re c re a tio n leave & leave bonus 4,912 7,493

:Total Employee entitlem ents 6,089 11,167

Other provisions: - Provision for Rework 94 135

- Contractual Disputes 0 235

- Other 523 240

Total other provisions 617 610

Total Provisions (Current) 6,706 11,777

11. Other (Current Liabilities)

Client advances 27,916 28,983

Commitment and preproduction advances 214 160

Construction Work in Progress Gross Work in Progress 137,526

Less: Progress B illin g s Unearned Income

139,824 2,298 192

Other 670 1,356

Total Other Current Liabilities 31,098 30,691

Movements in C lient Advances during the year were as follows:

Opening Balance 28,983 46,869

Add: Receipts 71,202 142,570

100,185 189,439

Deduct: Payments (72,269) (160,456)

Closing Balance 27,916 28,983

12. Borrowings (Non-Current)

Debt Capital 12,182 12,182

Total Borrowings 12,182 12,182

These are interest bearing loans at the Commonwealth long term bond rate.

307

AUSTRALIAN CONSTRUCTION SERVICES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

1993/94 1992/93 $ ■ 0 0 0 $ ' 0 0 0

16. Interest in Joint Venture

Australian Construction Services has an i n t e r e s t in the assets, l i a b i l i t i e s , income and expenses of a joint venture for the operation of Information Technology f a c i l i t i e s .

The in te r e s t in the j o in t venture i s included

in the account as follows:

Current Assets Cash Receivables Other

Non Current Assets Property, Plant & Equipment Intangibles

Current L i a b i l i t i e s Creditors Provisions Other

N o n C u r r e n t L i a b i l i t i e s P r o v i s i o n s

N e t A s s e t s

- h e j o i n t v e n t u r e c o n t r i b u t e d a l o s s o f 5 2 , 1 2 8 , 0 0 0 t o t h e o p e r a t i n g r e s u l t .

17. Commitments

O ther Commitments

t o t l a t e r t h a n 1 y r

l a t e r t h a n 1 y r b u t n o t l a t e r t h a n 2 y r s

l a t e r t h a n 2 y r s b u t n o t l a t e r t h a n 5 y r s

l a t e r t h a n 5 y r s

Other commitments are estimated fo r up to five years. Formal lease documents do not e x is t and adm inistrative arrangements are not lim ited by tim e.

4 , 6 0 1 3 , 7 8 8

1 , 4 8 7 1 , 7 9 2

11 72

6 , 0 9 9 5 , 6 5 2

4 , 0 3 7 7 , 8 0 6

0 8 2 4

4 , 0 3 7 8 , 6 3 0

590 1 , 6 5 4

343 3 6 4

9 0

942 2 , 0 1 8

43 212

9 , 1 5 1 1 2 , 0 5 2

894 9 , 7 0 9

894 9 , 7 0 9

2 , 6 8 1 2 9 , 1 2 6

0 0

4 , 4 6 9 4 8 , 5 4 4

309

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN CONSTRUCTION SERVICES

NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1994

1993/94 $ ' 0 0 0

2 2 . Economic Dependency

N o r m a l b u s i n e s s a c t i v i t i e s a r e d e p e n d e n t u p o n a s i g n i f i c a n t v o l u m e o f b u s i n e s s w i t h C o m m o n w e a l t h G o v e r n m e n t A g e n c i e s .

2 3 . Events Subsequent to Balance Date

S u b s e q u e n t t o t h e b a l a n c e d a t e o n 1 J u l y 1 9 9 4 a d d i t i o n a l C o m m o n w e a l t h c a p i t a l o f $ 2 4 . l m w a s d i s t r i b u t e d t o ACS f r o m o t h e r BSTA b u s i n e s s e s

1992/93 $ 1 000

311

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN GOVERNMENT ANALYTICAL LABORATORIES

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

313

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN GOVERNMENT ANALYTICAL LABORATORIES INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of the Australian Government Analytical Laboratories, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994. The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and General Manager, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and the General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence

supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial

statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit Office, GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 · Fax (06) 273 5355

314

A u d i t O p i n i o n

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of the Australian Government Analytical Laboratories, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of the Australian Government Analytical Laboratories as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities.

J.C. Taylor Auditor-General

October 1994

315

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN GOVERNMENT ANALYTICAL LABORATORIES

CERTIFICATE ON FINANCIAL STATEMENTS

In our opinion

(a) the accompanying accounts show fairly the loss of the Australian Government Analytical Laboratories for the year ended 30 June 1994

(b) the accompanying accounts show fairly the financial position of the Australian Government Analytical Laboratories as at 30 June 1994

(c) the accompanying accounts show fairly the cash flows of the Australian Government Analytical Laboratories during the year ended 30 June 1994

(d) the accompanying accounts of the Australian Government Analytical Laboratories have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities, which require compliance with Statements of Accounting Concepts and applicable Accounting Standards.

Dated this day of October 1994

[ D Clarke] General Manager

[ John Mellors ] Secretary

316

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN GOVERNMENT ANALYTICAL LABORATORIES PROFIT AND LOSS STATEMENT

FOR THE YEAR ENDED 30 JUNE 1994

Note 1993/94 1992/93 $ 000 $ ' 000

I I OPERATING REVENUE

3 Fees 11 528 13 759

: Parliamentary Appropriation - Community Services Obligation 5 600 5 083

Other Operating Revenue 464 651

TOTAL OPERATING REVENUE 17 592 19 493

OPERATING EXPENSES

Cost of Sales 8 476 8 866

Other Operating Costs 11 744 11 634

TOTAL OPERATING EXPENSES 20 220 20 500

OPERATING PROFIT/(LOSS) BEFORE ABNORMAL ITEMS 2 (2 628) (1 007)

ABNORMAL ITEMS 3 43 279

NET OPERATING PROFIT/(LOSS) (2 585) (728)

Accumulated Losses at beginning of financial year (1 532) (804)

ACCUMULATED PROFITS/(LOSS) AT END OF FINANCIAL YEAR (4 117) (1 532)

^"he accompanying N o te s form an i n t e g r a l p a r t o f th e s e f i n a n c i a l s ta te m e n ts

'

317

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN GOVERNMENT ANALYTICAL LABORATORIES BALANCE SHEET AS AT 30 JUNE 1994

Note 1993/94 1992/9 $ ' 000 $ ■ o o o

CURRENT ASSETS C a s h 7 3 5 0 8 4 2 4

R e c e i v a b l e s 4 1 8 1 8 1 2 9 5

I n v e n t o r i e s 5 2 9 0 7 1

O t h e r 6 5 3 7 6 8 4

TOTAL CURRENT ASSETS 9 9 9 5 1 0 4 7 4

NON-CURRENT ASSETS

P r o p e r t y , P l a n t a n d E q u i p m e n t 7 5 7 2 7 6 3 4 9

TOTAL NON-CURRENT ASSETS 5 7 2 7 6 3 4 9

TOTAL ASSETS 1 5 7 2 2 1 6 8 2 3

CURRENT LIABILITIES

C r e d i t o r s 8 7 0 7 9 9 2

P r o v i s i o n s 9 1 2 9 2 1 1 6 8

O t h e r 1 0 1 5 0 9 8 6 9

TOTAL CURRENT LIABILITIES 3 5 0 8 3 0 2 9 .

NON-CURRENT LIABILITIES

B o r r o w i n g s 1 1 3 9 0 0 3 9 0 0

P r o v i s i o n s 1 2 2 0 0 6 1 8 0 1

TOTAL NON-CURRENT LIABILITIES 5 9 0 6 5 7 0 1 . . .

TOTAL LIABILITIES 9 4 1 4 8 7 3 0 I

NET ASSETS 6 3 0 8 8 0 9 3

EQUITY C a p i t a l 1 3 1 0 4 2 5 9 6 2 5

A c c u m u l a t e d L o s s e s ( 4 1 1 7 ) ( 1 5 3 2 )

TOTAL EQUITY 6 3 0 8 8 0 9 3

The accompanying Notes form an integral part of these financial statements

318

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN GOVERNMENT ANALYTICAL LABORATORIES

NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

The Australian Government Analytical Laboratories (AGAL) is a segment of the Business Services Trust Account (BSTA) administered by the Department of Administrative Services.

Basis of Accounting

The Australian Government Analytical Laboratories, a segment of the BSTA, is required to prepare financial statements under a determination of the Minister for Finance pursuant to section 41D of the Audit Act 1901. The financial statements have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities issued by the Minister for Finance in January 1994. The financial statements conform with Statements of Accounting Standards and Concepts issued by the Institute of

Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants.

The accounts have been prepared in accordance with the historical cost convention, unless otherwise stated.

Property Plant and Equipment

Valuation

Property, plant and equipment are recorded at cost. Cost in relation to the respective class of asset represents the cash amount paid or fair value of the assets transferred or acquired. Assets costing less than $2 000 are expensed at the time of purchase.

Property, plant and equipment are valued at least every five years. The carrying value of non-current assets does not exceed their recoverable amount. In determining recoverable amount, the expected net cash flows have been calculated taking into account expected Commonwealth appropriations, subsidies and grants from the Business Services Trust Account.

320

Depreciation

Depreciation is provided on a straight line basis on all property, plant and equipment at rates calculated to allocate the cost of those assets over their estimated useful lives.

Inventories

Incomplete Analytical Tests

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each item to its present location and condition are accounted for as follows:

Raw materials - purchase cost on an average cost (weighted) basis; and

Finished goods and work in progress - cost of direct material and labour plus attributable costs that are capable of being allocated on a reasonable basis.

Employee Entitlements

Provision is made for employees' long service leave and recreational leave entitlements.

Long Service Leave

Long service leave is provided for those employees with five (5) years or more service. The provision is dissected into current and non-current liability components based on expected usage in next year.

Recreation Leave

Recreation leave is provided for those employees who have an entitlement at balance date. The provision includes a leave loading component and is classified as a current liability.

Leases

Operating Lease

Leases of non-current assets, where substantially all the risks and benefits incidental to ownership effectively remain with the lessor are classified as operating leases. Operating lease payments are charged as expenses in the determination of operating profit.

321

Unearned Income

Deposits and prepayments received for services yet to be rendered are recorded in the balance sheet at the time of their receipt as a liability and are transferred to profit and loss statement at the time the service is provided.

Segment Reporting

AGAL operates primarily in the microbiological and analytical chemistry testing industry.

AGAL's activities are primarily conducted within Australia.

Taxation

AGAL is not subject to income tax and most indirect taxes and charges, being a Commonwealth Departmental activity.

Fringe benefits tax and amounts in lieu of indirect taxes on any work for non-Commonwealth clients are expensed and included in the determination of operating profit.

An amount equivalent of Customs Duty on imports is included in the cost of goods. Where the goods are assets, the amount is included in the capital value of the assets and is amortised over the estimated useful lives of the assets.

Capital

The 1990 Memorandum of Understanding between the Departments of Administrative Services and Finance, which describes the financial framework within which the commercial entities of the Department of Administrative

Services are to operate, specifies that capital invested by the Commonwealth will be divided into interest bearing capital and equity capital in proportions agreed by Ministers. From 1 July 1991 interest bearing capital has been classified as long term borrowings and is shown in the financial statements at the agreed amount.

Dividend

The 1990 Memorandum of Understanding specifies that any dividend payments are based on profitability with recognition of the requirement to retain funds for business purposes and the overall budgetary position.

A provision for dividend has not been included in the accounts as the Ministers for Finance and Administrative Sen/ices are yet to consider the matter.

322

1 9 9 3 / 9 4

$ ' 0 0 0

1 9 9 2 / 9 :

$ Ό 0 (

4. Receivables

T r a d e d e b t o r s 1 8 2 9 1 3 1 3

L e s s : P r o v i s i o n f o r d o u b t f u l d e b t s 1 1 l i

T o t a l R e c e i v a b l e s ( C u r r e n t ) 1 8 1 8 1 2 9 !

5. Inventories

W o r k i n p r o g r e s s a t c o s t 2 9 0 7 1

T o t a l I n v e n t o r i e s 2 9 0 7 1

6. Other (Current Assets)

P r e p a y m e n t s

C o n s u m a b l e s

T o t a l O t h e r C u r r e n t A s s e t s

7 6 1 8 4

4 6 1 _ _ _ _ _ 5 0 C

5 3 7 6 8 4

7. Property, Plant and Equipment

P l a n t a n d e q u i p m e n t a t c o s t L e s s : P r o v i s i o n f o r d e p r e c i a t i o n

1 9 7 1 8 1 9 1 1 C

1 3 9 9 1 1 2 7 6 1

T o t a l P r o p e r t y , P l a n t a n d E q u i p m e n t 5 7 2 7 6 3 4 S

8. Creditors (Current)

T r a d e C r e d i t o r s A c c r u e d e x p e n s e s

T o t a l C r e d i t o r s ( C u r r e n t )

6 3 4 4 1 5

7 3 _ _ _ _ _ _ 5 7 7

7 0 7 9 9 2

324

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN GOVERNMENT PUBLISHING SERVICE

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

329

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN GOVERNMENT PUBLISHING SERVICE INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of the Australian Government Publishing Service, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994. The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and General Manager, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and the General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence

supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and

standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit Office. GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 · Fax (06) 273 5355

330

A u d i t O p i n i o n

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of the Australian Government Publishing Service, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of the Australian Government Publishing Service as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities.

J.C. Taylor Auditor-General

October 1994

331

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN GOVERNMENT PUBLISHING SERVICE

CERTIFICATE ON FINANCIAL STATEMENTS

I n o u r o p i n i o n

( a ) t h e a c c o m p a n y i n g a c c o u n t s sh o w f a i r l y t h e p r o f i t o f

A u s t r a l i a n G o v e r n m e n t P u b l i s h i n g S e r v i c e f o r t h e y e a r

e n d e d 30 J u n e 1994

( b ) t h e a c c o m p a n y i n g a c c o u n t s sh o w f a i r l y t h e f i n a n c i a l

p o s i t i o n o f A u s t r a l i a n G o v e r n m e n t P u b l i s h i n g S e r v i c e

a s a t 30 J u n e 1994

( c ) t h e a c c o m p a n y i n g a c c o u n t s show f a i r l y t h e c a s h f l o w

o f A u s t r a l i a n G o v e r n m e n t P u b l i s h i n g S e r v i c e f o r t h e

y e a r e n d e d 30 J u n e 1994

( d ) t h e a c c o m p a n y i n g a c c o u n t s o f A u s t r a l i a n G o v e r n m e n t

P u b l i s h i n g S e r v i c e h a v e b e e n m a de o u t i n a c c o r d a n c e

w i t h t h e G u i d e l i n e s f o r F i n a n c i a l S t a t e m e n t s o f

P u b l i c A u t h o r i t i e s a n d C o m m e r c i a l A c t i v i t i e s , w h i c h

r e q u i r e c o m p l i a n c e w i t h S t a t e m e n t s o f A c c o u n t i n g

C o n c e p t s a n d a p p l i c a b l e A c c o u n t i n g S t a n d a r d s .

D a t e d t h i s d a y o f O c t o b e r 1994

A l a n Law

G e n e r a l M a n a g e r

J o h n M e l l o r s

S e c r e t a r y

332

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN GOVERNMENT PUBLISHING SERVICE PROFIT AND LOSS STATEMENT

FOR THE YEAR ENDED 30 JUNE 1994

Note 1993/94 1992/93 $ 1 000 $ ' 000

OPERATING REVENUE

F e e s 9 1 , 0 8 5 9 5 , 7 0 7

P a r l i a m e n t a r y A p p r o p r i a t i o n

-C o m m u n ity S e r v i c e s O b l i g a t i o n 5, 960 5, 460

O t h e r O p e r a t i n g R e v e n u e 1 , 7 3 1 1, 620

TOTAL OPERATING REVENUE 98,776 102,787

OPERATING EXPENSES

C o s t o f S a l e s 8 3 , 0 3 5 8 8 , 3 9 5

O t h e r O p e r a t i n g C o s t s 1 0 , 4 1 4 9, 616

TOTAL OPERATING EXPENSES 93,449 98,011

OPERATING PROFIT BEFORE 2 5,327 4,776

ABNORMAL ITEMS

ABNORMAL ITEMS 3 3 , 0 2 5 ( 2 , 0 0 9 )

NET OPERATING PROFIT 8,352 2,767

A c c u m u l a t e d P r o f i t s a t b e g i n n i n g o f

f i n a n c i a l y e a r 3,371 604

ACCUMULATED PROFITS AT END OF FINANCIAL YEAR 11,723 3,371

The accompanying Notes form an integral part of these financial statements

333

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN GOVERNMENT PUBLISHING SERVICE BALANCE SHEET AS AT 30 JUNE 1994

Notes 1993/94 1992/93 $ ' 000 $'000

CURRENT ASSETS C a s h 3 4 , 7 2 7 2 5 , 4 5 7

R e c e i v a b l e s 4 7 , 2 4 5 7 , 2 3 3

I n v e n t o r i e s 5 9, 322 1 6 , 3 5 3

O t h e r 6 1 , 2 2 1 453

TOTAL CURRENT ASSETS 52,515 49,496

NON-CURRENT ASSETS

P r o p e r t y , P l a n t a n d E q u i p m e n t 7 1 7 , 0 1 5 1 4 , 6 6 0

TOTAL NON-CURRENT ASSETS 17,015 14,660

TOTAL ASSETS 69,530 64,156

CURRENT LIABILITIES C r e d i t o r s 8 3, 350 4 , 4 0 8

P r o v i s i o n s 9 3, 657 5 , 000

O t h e r 10 2 5 , 3 6 3 2 6 , 5 5 9

TOTAL CURRENT LIABILITIES 32,370 35,967

NON-CURRENT LIABILITIES B o r r o w i n g s 11 7 , 9 0 0 7 , 9 0 0

P r o v i s i o n s 12 4 , 6 0 0 3 , 993

TOTAL NON-CURRENT LIABILITIES 12,500 11,893

TOTAL LIABILITIES 44,870 47,860

NET ASSETS 24,660 16,296

EQUITY C a p i t a l 13 1 2 , 9 3 7 1 2 , 9 2 5

A c c u m u l a t e d P r o f i t s 1 1 , 7 2 3 3 , 371

TOTAL EQUITY 24,660 16,296

The accompanying Notes form an integral part of these financial statements

334

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN GOVERNMENT PUBLISHING SERVICE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 1994

Note 1993/94 1992/93 $'000 $ ' 000

CASH FLOWS FROM OPERATING ACTIVITIES

Inflows R e c e i p t s f r o m c u s t o m e r s 9 0 ,6 5 1 9 4 , 5 3 7

I n t e r e s t r e c e i v e d 1 ,7 3 1 1 , 6 2 0

P a r l i a m e n t a r y a p p r o p r i a t i o n s 7 ,9 2 1 5 , 4 6 0

Outflows P a ym ent t o s u p p l i e r s ( 5 6 ,8 3 9 ) ( 6 9 , 7 3 0 )

P a y m e n t t o s t a f f ( 2 8 ,6 6 1 ) ( 2 9 , 0 3 2 )

I n t e r e s t p a i d (582) (710)

Net cash provided by operating activities 14 14,221 2,145

CASH FLOWS FROM INVESTING ACTIVITIES

Inflows P r o c e e d s fr o m s a l e o f e q u i p m e n t 100 131

P a r l i a m e n t a r y A p p r o p r i a t i o n s 0 1, 162

Outflows P a y m e n t f o r p r o p e r t y , p l a n t & e q u i p m e n t ( 5 , 0 5 1 ) ( 5 , 5 6 0 )

Net cash used in investing activities (4,951) (4,267)

Net increase/(decrease) in cash held 9 ,2 7 0 ( 2 , 1 2 2 )

C a sh a t b e g i n n i n g o f r e p o r t i n g p e r i o d 2 5 ,4 5 7 2 7 , 5 7 9

CASH AT END OF REPORTING PERIOD 34,727 25,457

The accompanying Notes form an integral part of these financial statements

335

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN GOVERNMENT PUBLISHING SERVICE NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1.Summary of Significant Accounting Policies

Reporting entity

A u s t r a l i a n G o v e r n m e n t P u b l i s h i n g S e r v i c e i s a s e g m e n t o f t h e

B u s i n e s s S e r v i c e s T r u s t A c c o u n t (BSTA) a d m i n i s t e r e d b y t h e

D e p a r t m e n t o f A d m i n i s t r a t i v e S e r v i c e s .

Basis of Accounting

Australian Government Publishing Service, a segment of the BSTA, is required to prepare financial statements under a determination of the Minister for Finance pursuant to section 4ID of the Audit Act 1901. The financial statements have been made out in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities issued by the Minister for Finance in January 1994. The

financial statements conform with Statements of Accounting Standards and Concepts issued by the Institute of Chartered Accountants in Australia and the Australian Society of

Certified Practising Accountants.

The accounts have been prepared in accordance with the

historical cost convention, unless otherwise stated.

Property Plant and Equipment

Valuation

Property, plant and equipment are recorded at cost. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2,000 are expensed at the time of purchase.

Property, plant and equipment are valued at least every five years. The carrying value of non-current assets does not exceed their recoverable amount.

D e p r e c i a t i n n

Depreciation is provided on a straight line basis on all

property, plant and equipment at rates calculated to allocate the cost of those assets over their estimated useful lives.

336

Leasehold Improvsinents

Leasehold improvements are amortised over the term of the lease.

Inventories

Manufacturing and maintenance

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each item to its present location and condition are accounted for as follows:

Raw materials - purchase cost on a first in first out basis; and

Finished goods and work in progress - cost of direct material and labour plus attributable costs that are capable of being allocated on a reasonable basis.

Employee Entitlements

Provision is made for employees' long service leave and recreational leave entitlements.

Long Service Leave

Long service leave is provided for those employees with five years or more service. The provision is dissected into

current and non-current liability components based on expected usage in next year.

Recreation Leave

Recreation leave is provided for those employees who have an entitlement at balance date. The provision includes a leave loading component and is classified as a current liability.

Leases

Leases of non-current assets, where substantially all of the risks and benefits incidental to ownership effectively pass to the entity are classified as finance leases. The lease is capitalised at the present value of the minimum lease

payments, and amortised over the period expected to benefit from the use of the asset. A corresponding liability is

established, with each lease payment allocated between reduction of the lease liability and interest expense.

337

O p e r a t i n g l e a s e

Leases of non-current assets, where substantially all the risks and benefits incidental to ownership effectively remain with the lessor are classified as operating leases. Operating lease payments are charged as expenses in the determination of operating profit.

Unearned Income

Deposits and prepayments received for services yet to be rendered are recorded in the balance sheet at the time of

their receipt as a liability, and transferred to profit and loss statement once the service has been provided.

Segment Reporting

Australian Government Publishing Service operates primarily in the Publishing industry.

Australian Government Publishing Service's activities are conducted within Australia.

Taxation

Australian Government Publishing Service is not subject to income tax, being a Commonwealth Departmental activity. Fringe Benefits tax and amounts in lieu of indirect taxes on non-Commonwealth work performed are expensed and included in the determination of operating profit.

Capital

T he 1990 Memorandum o f U n d e r s t a n d i n g b e t w e e n t h e D e p a r t m e n t s

o f A d m i n i s t r a t i v e S e r v i c e s a n d F i n a n c e , w h i c h d e s c r i b e s t h e

f i n a n c i a l f r a m e w o r k w i t h i n w h i c h t h e c o m m e r c i a l e n t i t i e s o f

t h e D e p a r t m e n t A d m i n i s t r a t i v e S e r v i c e s a r e t o o p e r a t e ,

s p e c i f i e s t h a t c a p i t a l i n v e s t e d by t h e C om m onw ealth w i l l b e

d i v i d e d i n t o i n t e r e s t b e a r i n g c a p i t a l a n d e q u i t y c a p i t a l i n

p r o p o r t i o n s a g r e e d b y M i n i s t e r s . From 1 J u l y 1991 i n t e r e s t

b e a r i n g c a p i t a l h a s b e e n c l a s s i f i e d a s l o n g t e r m b o r r o w i n g s

a n d i s show n i n t h e f i n a n c i a l s t a t e m e n t s a t t h e a g r e e d a m o u n t .

Dividend

T he 1990 Memorandum o f U n d e r s t a n d i n g s p e c i f i e s t h a t d i v i d e n d

p a y m e n t i s b a s e d on p r o f i t a b i l i t y w i t h r e c o g n i t i o n o f t h e

r e q u i r e m e n t t o r e t a i n f u n d s f o r b u s i n e s s p u r p o s e s a n d t h e

o v e r a l l b u d g e t a r y p o s i t i o n .

A p r o v i s i o n f o r d i v i d e n d h a s n o t b e e n i n c l u d e d i n t h e a c c o u n t s

a s t h e M i n i s t e r s f o r F i n a n c e a n d t h e A d m i n i s t r a t i v e S e r v i c e s

a r e y e t t o c o n s i d e r t h e m a t t e r .

338

1993/94 1992/93

2. Operating Profit

The o p e r a t i n g p r o f i t i s a r r i v e d a t a f t e r

c r e d i t i n g a n d c h a r g i n g t h e f o l l o w i n g s p e c i f i c

i t e m s :

A f t e r c r e d i t i n g a s r e v e n u e :

P a r l i a m e n t a r y a p p r o p r i a t i o n

$'000 $'000

- C om m unity S e r v i c e s O b l i g a t i o n 5, 960 5 , 4 6 0

I n t e r e s t 1 , 7 3 1 1, 620

P r o f i t o n d i s p o s a l o f n o n - c u r r e n t a s s e t s 59 87

A f t e r c h a r g i n g a s e x p e n s e :

S a l a r i e s a n d w a g e s 2 7 , 7 8 9 2 9 , 1 6 4

I n t e r e s t 582 710

O p e r a t i n g l e a s e p a y m e n t s 1, 617 1 , 3 4 0

L o s s on d i s p o s a l o f n o n - c u r r e n t a s s e t s

P r o v i s i o n s

57 111

- d e p r e c i a t i o n a n d a m o r t i s a t i o n 2 , 5 9 8 2 , 3 6 8

- d i m i n u t i o n i n i n v e n t o r y v a l u e s 603 398

- d o u b t f u l d e b t s 28 221

- e m p l o y e e b e n e f i t s 536 820

3. Abnormal Items

Included in the operating profit are the following abnormal items:

Items credited: P a r l i a m e n t a r y a p p r o p r i a t i o n

- R e d u n d a n c y f u n d i n g 1, 599 1 , 2 7 1

- P u r c h a s e o f Non C u r r e n t A s s e t s

P r e - c o m m e r c i a l i s a t i o n c o m p e n s a t i o n l i a b i l i t y

362 0

a s s u m e d b y C om care 1, 370 0

I t e m s c h a r g e d :

3 , 3 3 1 1 , 2 7 1

R e d u n d a n c y p a y m e n t s 306 1 , 2 7 1

P r e C o m m e r c i a l i s a t i o n C o m p e n s a t i o n c o s t 0 1 , 3 0 9

R e s e a r c h & D e v e l o p m e n t C o s t s w r i t t e n o f f 0 376

A d j u s t m e n t s r e l a t i n g t o p r e v i o u s y e a r s 0 324

306 3 , 2 8 0

N e t A b n o r m a l I t e m s 3 , 0 2 5 ( 2 , 0 0 9 )

339

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

4. Receivables (Current)

T r a d e d e b t o r s 7 , 4 8 1 7 , 4 9 3

L e s s : P r o v i s i o n f o r d o u b t f u l d e b t s 236 260

T o t a l R e c e i v a b l e s ( C u r r e n t ) 7 , 2 4 5 7 , 2 3 3

5. Inventories

Raw m a t e r i a l a n d s t o r e s

A t C o s t 2 , 2 9 7 4 , 1 8 8

L e s s : P r o v i s i o n f o r d i m i n u t i o n i n

Work i n p r o g r e s s

v a l u e 46

2 , 2 5 1

50

4 , 1 3 8

A t C o s t 3, 869 9, 859

F i n i s h e d g o o d s

A t C o s t 3, 574 2 , 564

L e s s : P r o v i s i o n f o r d i m i n u t i o n i n v a l u e 372

3 , 2 0 2

208

2 , 3 5 6

T o t a l I n v e n t o r i e s 9, 322 1 6 , 3 5 3

6. Other (Current Assets)

P r e p a y m e n t s 498 197

O t h e r - U n b i l l e d S a l e s 723 256

T o t a l O t h e r C u r r e n t A s s e t s

7. Property, Plant and Equipment

1 , 2 2 1 453

L e a s e h o l d i m p r o v e m e n t s A t C o s t 1 , 6 6 3 1 , 3 9 2

L e s s : P r o v i s i o n f o r a m o r t i s a t i o n 299

1 ,3 6 4

119

1 , 2 7 3

P l a n t a n d e q u i p m e n t

A t C o s t 2 8 , 8 0 1 2 4 , 6 4 4

L e s s : P r o v i s i o n f o r d e p r e c i a t i o n 1 3 , 1 5 0

1 5 , 6 5 1

1 1 , 2 5 7 1 3 , 3 8 7

T o t a l P r o p e r t y , p l a n t a n d e q u i p m e n t 1 7 , 0 1 5 1 4 , 6 6 0

340

1993/94 1992/93

8. Creditors (Current)

$'000 $'000

T r a d e c r e d i t o r s 2, 968 2 , 9 5 3

A c c r u e d e x p e n s e s 382 1, 455

T o t a l C r e d i t o r s ( C u r r e n t )

9. Provisions (Current)

3, 350 4 ,4 0 8

E m p lo y e e e n t i t l e m e n t s :

- L o n g s e r v i c e l e a v e 342 546

- r e c r e a t i o n l e a v e & l e a v e b o n u s 2 , 8 1 5 2 ,6 8 4

- W o r k e r s ' c o m p e n s a t i o n 0 1 , 3 7 0

P r o v i s i o n f o r T h i r d P a r t y c l a i m s 500 400

T o t a l P r o v i s i o n s ( C u r r e n t ) 3, 657 5, 000

10. Other (Current Liabilities)

U n e a r n e d in c o m e 2 5 , 1 5 3 2 5 , 5 9 9

U n s p e n t r e d u n d a n c y m one ys 93 447

O t h e r 117 513

T o t a l O t h e r C u r r e n t L i a b i l i t i e s 2 5 , 3 6 3 2 6 , 559

11. Borrowings (Non-Current)

D e bt c a p i t a l 7 , 9 0 0 7 , 9 0 0

T o t a l B o r r o w i n g s

T h e s e a r e i n t e r e s t b e a r i n g l o a n s a t t h e

C om m onw ealth l o n g t e r m b o n d r a t e .

12. Provisions (Non-Current)

7 , 9 0 0 7 , 9 0 0

E m p lo y e e e n t i t l e m e n t s :

- L o n g s e r v i c e l e a v e 4 ,6 0 0 3, 993

T o t a l P r o v i s i o n s ( N o n - C u r r e n t ) 4 , 6 0 0 3, 993

341

1993/94 $ ' 0 0 0

13. Equity

Capital

O p e n i n g b a l a n c e 1 2 , 9 2 5

L e s s :

R e s o u r c e t r a n s f e r a d j u s t m e n t 0

Add: A d d i t i o n a l c a p i t a l f r o m Com m onw ealth 0

S t a f f t r a n s f e r a d j u s t m e n t 12

C a p i t a l i n v e s t e d a t 30 J u n e 1 2 , 9 3 7

C a p i t a l i s r e p a y a b l e t o t h e C om m onw ealth a t

s u c h t i m e s a n d i n s u c h a m o u n t s a s t h e M i n i s t e r

f o r F i n a n c e d e t e r m i n e s i n w r i t i n g .

S t a f f t r a n s f e r a d j u s t m e n t c o m p r i s e s a s s e t s a n d

l i a b i l i t i e s a c c o m p a n y i n g t h e t r a n s f e r o f s t a f f

t o t h e S t a f f i n g A d j u s t m e n t P r o g r a m o f t h e

B u s i n e s s S e r v i c e s T r u s t A c c o u n t .

14. Cash Flow Reconciliation

N e t O p e r a t i n g P r o f i t 8 , 3 5 2

G a i n on d i s p o s a l o f a s s e t s (21)

D e p r e c i a t i o n & a m o r t i s a t i o n 2 , 5 9 8

A s s e t s w r i t t e n o f f 19

( I n c r e a s e ) / D e c r e a s e i n R e c e i v a b l e s (12)

D e c r e a s e i n I n v e n t o r i e s 7 , 0 3 1

I n c r e a s e i n O t h e r C u r r e n t A s s e t s (768)

D e c r e a s e i n O t h e r N o n - C u r r e n t A s s e t s

I n c r e a s e / ( d e c r e a s e ) i n C r e d i t o r s ( 1 , 0 5 8 )

I n c r e a s e / ( d e c r e a s e ) i n P r o v i s i o n s (736)

D e c r e a s e i n O t h e r C u r r e n t L i a b i l i t i e s ( 1 , 1 9 6 )

I n c r e a s e i n E q u i t y 12

N e t c a s h p r o v i d e d b y o p e r a t i n g a c t i v i t i e s 1 4 , 2 2 1

1992/93 $ ' 0 0 0

1 1 , 7 6 2

(173)

1, 162

174

1 2 , 9 2 5

2 , 767

(87)

2 , 3 6 8

111

1 , 7 0 0 1 , 5 7 0 (400) 131

95

187

( 6 , 2 9 7 )

2 , 1 4 5

342

1993/94 1992/93 $ ' 000 $ '0 0 0

15. Agreements Equally Proportionately Unperformed

E s t i m a t e d c a p i t a l e x p e n d i t u r e c o n t r a c t e d f o r a t

t h e b a l a n c e d a t e t h a t i s p a y a b l e

n o t l a t e r t h a n o n e y e a r 0 1 , 7 5 5

T o t a l 0 1 , 7 5 5

16. Commitments

Operating leases (non-cancellakle)

n o t l a t e r t h a n one y e a r 970 1 ,5 9 8

l a t e r t h a n o n e y e a r b u t n o t l a t e r t h a n 2 y r s 563 949

l a t e r t h a n 2 y e a r s b u t n o t l a t e r t h a n 5 y r s 531 842

l a t e r t h a n 5 y e a r s 0 0

2, 064 3, 389

Other Commitments

n o t l a t e r t h a n one y e a r 843 808

l a t e r t h a n o n e y e a r b u t n o t l a t e r t h a n 2 y r s 843 808

l a t e r t h a n 2 y e a r s b u t :n o t l a t e r t h a n 5 y r s 2 , 5 2 9 2 , 4 2 4

l a t e r t h a n 5 y e a r s 0 0

4 , 2 1 5 4 , 0 4 0

T o t a l 6 , 2 7 9 7 , 4 2 9

O t h e r c o m m itm e n ts a r e e s t i m a t e d f o r up t o f i v e

y e a r s . F o r m a l l e a s e d o c u m e n t s do n o t e x i s t a n d

a d m i n i s t r a t i v e a r r a n g e m e n t s a r e n o t l i m i t e d b y t i m e .

343

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

17. Superannuation

D u r i n g t h e f i n a n c i a l y e a r , e m p l o y e e s

c o n t r i b u t e d t o t h e C om m onw ealth S u p e r a n n u a t i o n

Scheme a n d t h e P u b l i c S e c t o r S u p e r a n n u a t i o n

S c h e m e . An e m p l o y e r s u p e r a n n u a t i o n

c o n t r i b u t i o n i s p a i d t o t h e R e t i r e m e n t B e n e f i t s

O f f i c e t o m e e t t h e a s s e s s e d e m p l o y e r c o s t s

u n d e r t h e r e s p e c t i v e S c h e m e s .

The a m o u n t o f e m p l o y e r c o n t r i b u t i o n s p a i d a n d

p a y a b l e i n r e s p e c t o f t h e f i n a n c i a l y e a r was 3 , 1 6 6______2 , 9 2 9

18. Contingent Liabilities

T h e r e w e r e no C o n t i n g e n t L i a b i l i t i e s a t 3 0 t h J u n e 1994

19. Remuneration of Executives

The n u m b e r o f e x e c u t i v e o f f i c e r s who r e c e i v e d o r w e r e

d u e t o r e c e i v e in c o m e o f $ 1 0 0 , 0 0 0 o r m o r e :

Number

1 9 9 3 / 9 4 1 9 9 2 / 9 3

$ 1 2 0 , 0 0 0 a n d a b o v e 1 -

The a g g r e g a t e a m o u n t r e c e i v e d o r d u e a n d

r e c e i v a b l e w as 124 0

20. Auditors' Remuneration T he a g g r e g a t e a m o u n t r e c e i v e d o r d u e a n d

r e c e i v a b l e b y t h e a u d i t o r s f o r a u d i t i n g t h e

a c c o u n t s w as 4 8 48

21. Economic Dependency

N o rm a l b u s i n e s s a c t i v i t i e s a r e d e p e n d e n t u p o n a

s i g n i f i c a n t v o lu m e o f b u s i n e s s w i t h

C om m onw ealth G o v e r n m e n t A g e n c i e s .

344

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN PROPERTY GROUP

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

345

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN PROPERTY GROUP INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of the Australian Property Group, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994. The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and General Manager, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and the General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my

understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit Office. GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 e Fax (06) 273 5355

346

Audit Opinion

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of the Australian Property Group, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of the Australian Property Group as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities.

J.C. Taylor Auditor-General

October 1994

347

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN PROPERTY GROUP

CERTIFICATE ON FINANCIAL STATEMENTS

I n o u r o p i n i o n

(a) t h e a c c o m p a n y i n g a c c o u n t s show f a i r l y t h e p r o f i t o f

A u s t r a l i a n P r o p e r t y G ro u p f o r t h e y e a r e n d e d 30 J u n e

1994

(b) t h e a c c o m p a n y i n g a c c o u n t s show f a i r l y t h e f i n a n c i a l

p o s i t i o n o f A u s t r a l i a n P r o p e r t y G ro u p a s a t 30 J u n e

1994

(c) t h e a c c o m p a n y i n g a c c o u n t s show f a i r l y t h e c a s h f l o w s

o f A u s t r a l i a n P r o p e r t y G ro u p d u r i n g t h e y e a r e n d e d

30 J u n e 1994

(d) t h e a c c o m p a n y i n g a c c o u n t s o f A u s t r a l i a n P r o p e r t y

G ro u p h a v e b e e n m ade o u t i n a c c o r d a n c e w i t h t h e

G u i d e l i n e s f o r F i n a n c i a l S t a t e m e n t s o f P u b l i c

A u t h o r i t i e s a n d C o m m e r c i a l A c t i v i t i e s , w h i c h r e q u i r e

c o m p l i a n c e w i t h S t a t e m e n t s o f A c c o u n t i n g C o n c e p t s

a n d a p p l i c a b l e A c c o u n t i n g S t a n d a r d s .

d a y o f O c t o b e r 1994

P G O 'C o n n o r

G e n e r a l M a n a g e r

J M e l l o r s

S e c r e t a r y

348

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN PROPERTY GROUP PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

OPERATING REVENUE

F e e s P a r l i a m e n t a r y A p p r o p r i a t i o n

- C om m unity S e r v i c e s O b l i g a t i o n

O t h e r O p e r a t i n g R e v e n u e

TOTAL OPERATING REVENUE

OPERATING EXPENSES

C o s t o f S a l e s

O t h e r O p e r a t i n g C o s t s

TOTAL OPERATING EXPENSES

OPERATING PROFIT BEFORE ABNORMAL ITEMS

ABNORMAL ITEMS

NET OPERATING PROFIT

A c c u m u l a t e d P r o f i t s a t b e g i n n i n g o f

f i n a n c i a l y e a r

TOTAL AVAILABLE FOR APPROPRIATION

T r a n s f e r t o R e s e r v e s

D i v i d e n d P a i d

ACCUMULATED PROFITS AT END OF FINANCIAL YEAR

Note

1993/94 1992/93 $'000 $'000

31,216 35,796

475 161

1, 934 1, 912

33,625 37,869

18,016 21,258

13,174 14,301

31,190 35,559

2,435 2,310

243 728

2, 678 3, 038

3, 474 6,436

6, 152 9, 474

1,000 2, 000

1, 000 4,000

4,152 3, 474

The acconpanying Notes form an integral part of these financial statements

349

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN PROPERTY GROUP BALANCE SHEET FOR THE YEAR ENDED 30 JUNE 1994

Note 1993/94 1992/93

$'000 $'000

CURRENT ASSETS C a s h 9,113 20,149

R e c e i v a b l e s 4 15,066 3, 108

O t h e r 5 463 539

TOTAL CURRENT ASSETS 24,642 23,796

NON-CURRENT ASSETS P r o p e r t y , p l a n t a n d e q u i p m e n t 6 4,220 5,242

TOTAL NON-CURRENT ASSETS 4,220 5,242

TOTAL ASSETS 28,862 29,038

CURRENT LIABILITIES C r e d i t o r s 7 1, 747 2, 977

P r o v i s i o n s 8 2, 603 2, 836

O t h e r 9 3, 045 3,478

TOTAL CURRENT LIABILITIES 7,395 9,291

NON-CURRENT LIABILITIES B o r r o w i n g s 10 5,200 5,200

P r o v i s i o n s 11 2,782 3, 099

TOTAL NON-CURRENT LIABILITIES 7, 982 8,299

TOTAL LIABILITIES 15,377 17,590

NET ASSETS 13,485 11,448

EQUITY C a p i t a l 12 3,766 3,474

R e s e r v e s 12 5,567 4,500

A c c u m u l a t e d P r o f i t s 4,152 3, 474

TOTAL EQUITY 13,485 11,448

The accompanying Notes form an integral part of these financial statements

350

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUN' AUSTRALIAN PROPERTY GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 1994

Notes

CASH FLOW FROM OPERATING ACTIVITIES

1993/94 $'000

1992/93 $'000

inflows [ Μ

R e c e i p t s from c u s to m e rs 30,138 37,329

I n t e r e s t r e c e i v e d

O t h e r o p e r a t i n g r e c e i p t s

Outflows

950 1,447

2,445 1, 959

P a y m e n t t o s u p p l i e r s 22,546 15,257

P a y m e n t t o s t a f f 17,769 19,420

I n t e r e s t p a i d 383 467

O t h e r o p e r a t i n g e x p e n s e s 2,462 1,231

Net cash used by operating activitie 13

ai#CASH FLOWS FROM INVESTING ACTIVITIES (9,626) 4,360

Inflows P r o c e e d s f r o m s a l e o f h o u s e s

Outflows

333

P a y m e n t f o r p r o p e r t y , p l a n t a n d e q u i p m e n t 410 2,251

Net cash used by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

(410) (1,918)

Inflows R e p a y m e n t o f i n t r a BSTA l o a n 2,000

Outflows D i v i d e n d p a i d 1,000 4,000

Net cash used by financing activities (1,000) (2,000)

Net increase/(decrease) in cash held (11,036) 442

C a s h a t b e g i n n i n g o f r e p o r t i n g p e r i o d 20,149 19,707

CASH AT END OF REPORTING PERIOD 9,113 20,149

The accompanying Notes form an integral part of these financial statements

351

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN PROPERTY GROUP NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1. Summary of Significant Accounting Policies

Reporting Entity

A u s t r a l i a n P r o p e r t y G ro u p i s a s e g m e n t o f t h e B u s i n e s s S e r v i c e s

T r u s t A c c o u n t (BSTA) a d m i n i s t e r e d b y t h e D e p a r t m e n t o f

A d m i n i s t r a t i v e S e r v i c e s .

Basis of Accounting

A u s t r a l i a n P r o p e r t y G r o u p , a s e g m e n t o f t h e BSTA, i s r e q u i r e d t o

p r e p a r e f i n a n c i a l s t a t e m e n t s u n d e r a d e t e r m i n a t i o n o f t h e M i n i s t e r

f o r F i n a n c e p u r s u a n t t o S e c t i o n 41D o f t h e A u d i t A c t 1 9 0 1 . The

f i n a n c i a l s t a t e m e n t s h a v e b e e n made o u t i n a c c o r d a n c e w i t h t h e

G u i d e l i n e s f o r F i n a n c i a l S t a t e m e n t s o f P u b l i c A u t h o r i t i e s a n d

C o m m e r c ia l A c t i v i t i e s i s s u e d b y t h e M i n i s t e r f o r F i n a n c e i n J a n u a r y

1 9 9 4 . The f i n a n c i a l s t a t e m e n t s c o n f o r m w i t h S t a t e m e n t s o f A c c o u n t i n g

S t a n d a r d s a n d C o n c e p t s i s s u e d b y t h e I n s t i t u t e o f C h a r t e r e d

A c c o u n t a n t s i n A u s t r a l i a a n d t h e A u s t r a l i a n S o c i e t y o f C e r t i f i e d

P r a c t i s i n g A c c o u n t a n t s .

T he a c c o u n t s h a v e b e e n p r e p a r e d i n a c c o r d a n c e w i t h t h e h i s t o r i c a l

c o s t c o n v e n t i o n , u n l e s s o t h e r w i s e s t a t e d .

Property, Plant and Equipment

V a I n a t i n n

P r o p e r t y , p l a n t a n d e q u i p m e n t a r e r e c o r d e d a t c o s t . C o s t i n r e l a t i o n

t o t h e r e s p e c t i v e c l a s s o f a s s e t r e p r e s e n t s t h e c a s h a m o u n t p a i d o r

t h e f a i r v a l u e o f t h e a s s e t s t r a n s f e r r e d o r a c q u i r e d . A s s e t s c o s t i n g

l e s s t h a n $ 2 , 0 0 0 a r e e x p e n s e d a t t h e t i m e o f p u r c h a s e .

P r o p e r t y , p l a n t a n d e g u i p m e n t a r e v a l u e d a t l e a s t e v e r y f i v e y e a r s .

L a n d a n d b u i l d i n g s w e r e r e v a l u e d a t m a r k e t v a l u e a s a t 31 May 1994

b y a n i n d e p e n d e n t v a l u e r .

T h e c a r r y i n g v a l u e o f n o n - c u r r e n t a s s e t s d o e s n o t e x c e e d t h e i r

r e c o v e r a b l e a m o u n t .

D eo reciatio n

D e p r e c i a t i o n i s p r o v i d e d o n a s t r a i g h t l i n e b a s i s on a l l p r o p e r t y ,

p l a n t a n d e q u i p m e n t a t r a t e s c a l c u l a t e d t o a l l o c a t e t h e c o s t o f

t h o s e a s s e t s o v e r t h e i r e s t i m a t e d u s e f u l l i v e s .

Leasehold Improvements

L e a s e h o l d i m p r o v e m e n t s a r e a m o r t i s e d o v e r t h e t e r m o f t h e l e a s e o r

w h e r e n o f o r m a l l e a s e i s h e l d o v e r 10 y e a r s .

352

Employee Entitlements

P r o v i s i o n i s made f o r e m p l o y e e s ' l o n g s e r v i c e l e a v e a n d r e c r e a t i o n a l

l e a v e e n t i t l e m e n t s .

Ι,ηηα Servi re Leave

L ong s e r v i c e l e a v e i s p r o v i d e d f o r t h o s e e m p l o y e e s w i t h f i v e y e a r s

o r m o r e s e r v i c e . The p r o v i s i o n i s d i s s e c t e d i n t o c u r r e n t a n d n o n ­

c u r r e n t l i a b i l i t y c o m p o n e n t s b a s e d on e x p e c t e d u s a g e i n n e x t y e a r .

R ecreation Leave

R e c r e a t i o n l e a v e i s p r o v i d e d f o r t h o s e e m p l o y e e s who h a v e a n

e n t i t l e m e n t a t b a l a n c e d a t e . The p r o v i s i o n i n c l u d e s a l e a v e l o a d i n g

c o m p o n e n t a n d i s c l a s s i f i e d a s a c u r r e n t l i a b i l i t y .

Client Advances

Moneys a d v a n c e d b y c l i e n t o r g a n i s a t i o n s f o r t h e p a y m e n t o f a c c o u n t s

f o r f e e s a r e i n c l u d e d a s a l i a b i l i t y i n t h e b a l a n c e s h e e t .

Unearned Income

D e p o s i t s a n d p r e p a y m e n t s r e c e i v e d f o r s e r v i c e s y e t t o b e r e n d e r e d

a r e r e c o r d e d i n t h e b a l a n c e s h e e t a t t h e t i m e o f t h e i r r e c e i p t a s a

l i a b i l i t y a n d a r e t r a n s f e r r e d t o t h e p r o f i t a n d l o s s s t a t e m e n t a t

t h e t i m e t h e s e r v i c e i s p r o v i d e d .

Segment Reporting

A u s t r a l i a n P r o p e r t y G ro u p o p e r a t e s p r i m a r i l y i n t h e p r o p e r t y

m a n a g e m e n t i n d u s t r y .

A u s t r a l i a n P r o p e r t y G r o u p ' s a c t i v i t i e s a r e c o n d u c t e d w i t h i n

A u s t r a l i a .

Taxation

A u s t r a l i a n P r o p e r t y G ro u p i s n o t s u b j e c t t o in c o m e t a x a n d m o s t

i n d i r e c t t a x e s a n d c h a r g e s , b e i n g a Com m onw ealth D e p a r t m e n t a l

a c t i v i t y . F r i n g e B e n e f i t s t a x a n d a m o u n ts i n l i e u o f i n d i r e c t t a x e s

on a n y w o rk f o r n o n -C o m m o n w e a lth c l i e n t s a r e e x p e n s e d a n d i n c l u d e d

i n t h e d e t e r m i n a t i o n o f o p e r a t i n g p r o f i t .

An a m o u n t e q u i v a l e n t t o C u sto m s D u ty on i m p o r t s i s i n c l u d e d i n t h e

c o s t o f g o o d s . W here t h e g o o d s a r e a s s e t s , t h e a m o u n t i s i n c l u d e d i n

t h e c a p i t a l v a l u e o f t h e a s s e t s a n d i s a m o r t i s e d o v e r t h e e s t i m a t e d

u s e f u l l i v e s o f t h e a s s e t s .

Capital

The 1990 Memorandum o f U n d e r s t a n d i n g b e t w e e n t h e D e p a r t m e n t s o f

A d m i n i s t r a t i v e S e r v i c e s a n d F i n a n c e , w h i c h d e s c r i b e s t h e f i n a n c i a l

f r a m e w o r k w i t h i n w h ic h t h e c o m m e r c i a l e n t i t i e s o f t h e D e p a r t m e n t o f

A d m i n i s t r a t i v e S e r v i c e s a r e t o o p e r a t e , s p e c i f i e s t h a t c a p i t a l

i n v e s t e d by t h e Com m onw ealth w i l l b e d i v i d e d i n t o i n t e r e s t b e a r i n g

c a p i t a l a n d e q u i t y c a p i t a l i n p r o p o r t i o n s a g r e e d by M i n i s t e r s . From

1 J u l y 1991 i n t e r e s t b e a r i n g c a p i t a l h a s b e e n c l a s s i f i e d a s l o n g

t e r m b o r r o w i n g s a n d i s shown i n t h e f i n a n c i a l s t a t e m e n t s a t t h e

a g r e e d a m o u n t .

353

Dividend

The 1990 Memorandum o f U n d e r s t a n d i n g s p e c i f i e s t h a t a n y d i v i d e n d

p a y m e n t s a r e b a s e d on p r o f i t a b i l i t y w i t h r e c o g n i t i o n o f t h e

r e q u i r e m e n t t o r e t a i n f u n d s f o r b u s i n e s s p u r p o s e s a n d t h e o v e r a l l

b u d g e t a r y p o s i t i o n .

A p r o v i s i o n f o r d i v i d e n d h a s n o t b e e n i n c l u d e d i n t h e a c c o u n t s a s

t h e M i n i s t e r s f o r F i n a n c e a n d A d m i n i s t r a t i v e S e r v i c e s a r e y e t t o

c o n s i d e r t h e m a t t e r .

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

2. Operating Profit

The o p e r a t i n g p r o f i t i s a r r i v e d a t

a f t e r c r e d i t i n g a n d c h a r g i n g t h e

f o l l o w i n g s p e c i f i c i t e m s :

A f t e r c r e d i t i n g a s r e v e n u e :

C om m unity S e r v i c e O b l i g a t i o n s 475 161

I n t e r e s t 950 1,447

P r o f i t on d i s p o s a l o f n o n - c u r r e n t

a s s e t s " '

A f t e r c h a r g i n g a s e x p e n s e :

S a l a r i e s & W a g e s 13,535 14,846

I n t e r e s t

O p e r a t i n g l e a s e p a y m e n t s

383 467

L o s s on d i s p o s a l o f n o n - c u r r e n t

a s s e t s

P r o v i s i o n s

69 46

- d e p r e c i a t i o n a n d a m o r t i s a t i o n 1,430 1, 610

- d o u b t f u l d e b t s 350 (800)

- e m p l o y e e b e n e f i t s 4,287 4,490

3. Abnormal Items

I n c l u d e d i n t h e o p e r a t i n g p r o f i t a r e

t h e f o l l o w i n g a b n o r m a l i t e m s :

I t e m s c r e d i t e d :

- R e d u n d a n c y f u n d i n g

- O t h e r

930 86

1, 627 332

1, 016 1, 959

I t e m s c h a r g e d :

R e d u n d a n c y p a y m e n t s O t h e r

773 1,199

32

773 1,231

N e t A b n o r m a l I t e m s

243 728

354

1993/94 1992/93 $'000 $'000

4. Receivables (Current)

T r a d e D e b t o r s 4,606 3,293

L e s s : P r o v i s i o n f o r d o u b t f u l d e b t s 535 185

O t h e r - O w ing f r o m APG C l i e n t s T r u s t 10,995 -

T o t a l R e c e i v a b l e s ( C u r r e n t ) 15,066 3,108

5. Other (Current Assets)

P r e p a y m e n t s 463 539

T o t a l O t h e r C u r r e n t A s s e t s

6. Property, Plant and Equipment

463 539

L a n d a n d B u i l d i n g s

A t c o s t - 376

L e s s : p r o v i s i o n f o r d e p r e c i a t i o n - 15

L a n d

- 361

A t I n d e p e n d e n t V a l u a t i o n 1994 285 -

B u i l d i n g A t I n d e p e n d e n t V a l u a t i o n 1994 135

L e s s : P r o v i s i o n f o r d e p r e c i a t i o n 0 -

L e a s e h o l d i m p r o v e m e n t s

135 -

A t C o s t 1,305 1,227

L e s s : P r o v i s i o n f o r a m o r t i s a t i o n 272 149

1, 033 1,078

T o t a l L a n d a n d B u i l d i n g 1,453 1,439

P l a n t a n d E q u ip m e n t

A t c o s t 5, 813 6, 028

L e s s : p r o v i s i o n f o r d e p r e c i a t i o n 3,046 2,225

T o t a l P l a n t a n d e q u i p m e n t 2, 767 3, 803

T o t a l P r o p e r t y , P l a n t a n d E q u i p m e n t 4,220 5,242

L a n d a n d b u i l d i n g s w e r e r e v a l u e d a t

m a r k e t v a l u e a s a t 31 May 1994 by

t h e A u s t r a l i a n V a l u a t i o n O f f i c e

(AVO)

355

1993/94 1992/93 $'000 $ Ό 0 0

7. Creditors (Current)

T r a d e C r e d i t o r s 220 306

A c c r u e d E x p e n s e s 1, 526 2, 671

T o t a l C r e d i t o r s ( C u r r e n t ) 1, 746 2,977

8. Provisions (Current)

E m p lo y e e E n t i t l e m e n t s

- L o n g s e r v i c e l e a v e 695 774

- R e c r e a t i o n l e a v e & l e a v e b o n u s 1,899 2, 045

- R e g u l a t i o n 98 a i r f a r e s 9 17

T o t a l P r o v i s i o n s ( C u r r e n t ) 2,603 2,836

9. Other (Current Liabilities)

C l i e n t A d v a n c e s 662 521

U n e a r n e d In c o m e 2,371 2, 914

U n s p e n t r e d u n d a n c y m o n e y s 12 43

T o t a l O t h e r C u r r e n t L i a b i l i t i e s 3, 045 3, 478

10. Borrowings (Non-Current)

D e b t C a p i t a l 5,200 5,200

T o t a l B o r r o w i n g s 5,200 5,200

T h e s e a r e i n t e r e s t b e a r i n g l o a n s a t

t h e C om m onw ealth l o n g t e r m b o n d

r a t e .

11. Provisions (Non-Current)

E m p lo y e e E n t i t l e m e n t s :

- L o n g s e r v i c e l e a v e 2, 782 3,099

T o t a l P r o v i s i o n s ( N o n - C u r r e n t ) 2,782 3,099

356

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

12 . Equity

Capital

O p e n i n g b a l a n c e 3,474 2,606

S t a f f t r a n s f e r a d j u s t m e n t 292 -

R e s o u r c e t r a n s f e r a d j u s t m e n t - 868

C a p i t a l i n v e s t e d a t 30 J u n e 3,766 3,474

C a p i t a l i s r e p a y a b l e t o t h e

C om m onw ealth a t s u c h t i m e s a n d i n

s u c h a m o u n t s a s t h e M i n i s t e r f o r

F i n a n c e d e t e r m i n e s i n w r i t i n g .

S t a f f t r a n s f e r a d j u s t m e n t c o m p r i s e s

a s s e t s a n d l i a b i l i t i e s a c c o m p a n y i n g

t h e t r a n s f e r o f s t a f f t o t h e

S t a f f i n g A d j u s t m e n t P r o g r a m o f t h e

B u s i n e s s S e r v i c e s T r u s t A c c o u n t .

Reserves

A s s e t r e p l a c e m e n t r e s e r v e

O p e n in g B a l a n c e 1,500 1,500

T r a n s f e r fro m A c c u m u l a t e d P r o f i t s - -

C l o s i n g B a l a n c e 1,500 1,500

I n s u r a n c e R e s e r v e

O p e n in g B a l a n c e 1,500 1, 000

T r a n s f e r fro m A c c u m u l a t e d P r o f i t s 500 500

C l o s i n g B a l a n c e 2, 000 1,500

R e s e a r c h a n d D e v e lo p m e n t R e s e r v e

O p e n in g B a l a n c e 1,500 -

T r a n s f e r f r o m A c c u m u l a t e d P r o f i t s 500 1, 500

C l o s i n g B a l a n c e 2, 000 1,500

A s s e t r e v a l u a t i o n r e s e r v e

O p e n in g b a l a n c e - -

R e v a l u a t i o n d u r i n g 1 9 9 3 / 9 4 67 -

C l o s i n g b a l a n c e 67 -

T o t a l R e s e r v e s 5,567 4,500

357

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

13. Cash Flow Reconciliation

N e t O p e r a t i n g P r o f i t / ( L o s s ) 2, 678 3, 038

D e p r e c i a t i o n 1,430 1, 610

( I n c r e a s e ) / D e c r e a s e i n R e c e i v a b l e s (12,308) 2, 931

( I n c r e a s e ) / D e c r e a s e i n P r e p a y m e n t s 76 (29)

I n c r e a s e / ( D e c r e a s e ) i n P r o v i s i o n s

f o r E m p lo y e e E n t i t l e m e n t s

53 (84)

I n c r e a s e / ( D e c r e a s e ) i n C r e d i t o r s (1,541) (282)

I n c r e a s e / ( D e c r e a s e ) i n P r o v i s i o n f o r

D o u b t f u l D e b t s

350 (800)

I n c r e a s e / ( D e c r e a s e ) i n U n e a r n e d

In c o m e

(574) (1,300)

I n c r e a s e / ( D e c r e a s e ) i n A d v a n c e s 141 (770)

L o s s ( P r o f i t ) on S a l e o f F i x e d A s s e t s 69 46

N e t C a s h P r o v i d e d b y O p e r a t i n g

A c t i v i t i e s (9,626) 4,360

14. Commitments

n o t l a t e r t h a n o n e y e a r 2, 151 3, 263

l a t e r t h a n o n e y e a r b u t n o t l a t e r

t h a n 2 y e a r s 2, 151 3,263

l a t e r t h a n 2 y e a r s b u t n o t l a t e r

t h a n 5 y e a r s 6,453 9, 789

l a t e r t h a n 5 y e a r s 0 0

T o t a l 10,755 16,315

C o m m itm e n ts a r e e s t i m a t e d f o r u p t o

f i v e y e a r s . I n some c a s e s f o r m a l

l e a s e d o c u m e n t s do n o t e x i s t a n d

a d m i n i s t r a t i v e a r r a n g e m e n t s a r e n o t

l i m i t e d b y t i m e

15. Superannuation

D u r i n g t h e f i n a n c i a l y e a r , e m p l o y e e s

c o n t r i b u t e d t o t h e C om m onw ealth

S u p e r a n n u a t i o n Scheme a n d t h e P u b l i c

S e c t o r S u p e r a n n u a t i o n S c h e m e . An

e m p l o y e r c o n t r i b u t i o n i s p a i d t o t h e

R e t i r e m e n t B e n e f i t s O f f i c e t o m e e t

t h e a s s e s s e d e m p l o y e r c o s t s u n d e r

t h e r e s p e c t i v e S c h e m e s .

The a m o u n t o f e m p l o y e r c o n t r i b u t i o n

p a i d a n d p a y a b l e i n r e s p e c t o f t h e

f i n a n c i a l y e a r w a s : 2,431 2,243

358

1993/94 $ ' 0 0 0

1992/93 $ ' 0 0 0

16. Contingent Liabilities

The A u s t r a l i a n P r o p e r t y G ro u p i s

c u r r e n t l y i n v o l v e d i n a d i s p u t e i n

r e l a t i o n t o a c o n t r a c t e n t e r e d i n t o

b y a c l i e n t . The d i s p u t e r e l a t e s t o

a b u i l d i n g c o n s t r u c t e d f o r a c l i e n t

i n H o b a r t . The l i a b i l i t y ( i f a n y ) a t

t h e d a t e o f t h e s e f i n a n c i a l

s t a t e m e n t s i s u n a b l e t o b e

d e t e r m i n e d .

17. Remuneration of Executives

The n u m b e r o f E x e c u t i v e o f f i c e r s

r e c e i v e d o r w e r e d u e t o r e c e i v e

in c o m e o f $ 1 0 0 , 0 0 0 o r m ore

Number

1 9 9 3 /9 4 1 9 9 2 / 9 3

$ 1 1 0 , 000 - $ 1 1 9 , 999 1 1 ________ 118_________116

The a g g r e g a t e a m o u n t r e c e i v e d o r d u e

a n d r e c e i v a b l e w as $ 1 1 8 ,0 0 0

18. Auditors' Remuneration

T he a g g r e g a t e a m o u n t r e c e i v e d o r d u e

a n d r e c e i v a b l e b y t h e a u d i t o r s f o r

a u d i t i n g t h e a c c o u n t s was _________ 57__________50^

19. Economic Dependency

N o r m a l b u s i n e s s a c t i v i t i e s a r e

d e p e n d e n t u p o n a s i g n i f i c a n t v o lu m e

o f b u s i n e s s w i t h Com m onw ealth

G o v e r n m e n t A g e n c i e s

359

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN SURVEYING AND LAND INFORMATION GROUP

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

361

Auditor-General

j a m

i

S$3

BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN SURVEYING AND LAND INFORMATION GROUP INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

t have audited the financial statements of the Australian Surveying and Land Information Group, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994. The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and General Manager, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and the General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures

have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit Office, GPO BOX 707, Canberra ACT 2601 e Telephone (06) 203 7500 # Fax (06) 273 5355

362

A u d i t O p i n i o n

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of the Australian Surveying and Land Information Group, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of the Australian Surveying and Land Information Group as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities.

^ f .

J.C. Taylor Auditor-General tjf H October 1994

363

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN SURVEYING AND LAND INFORMATION GROUP

CERTIFICATE ON FINANCIAL STATEMENTS

I n o u r o p i n i o n

(a) t h e a c c o m p a n y i n g a c c o u n t s show f a i r l y t h e l o s s o f

A u s t r a l i a n S u r v e y i n g a n d L a n d I n f o r m a t i o n G ro u p

(AUSLIG) f o r t h e y e a r e n d e d 30 J u n e 1994

(b) t h e a c c o m p a n y i n g a c c o u n t s show f a i r l y t h e f i n a n c i a l

p o s i t i o n o f AUSLIG a s a t 30 J u n e 1994

(c) t h e a c c o m p a n y i n g a c c o u n t s show f a i r l y t h e c a s h f l o w s

o f AUSLIG d u r i n g t h e y e a r e n d e d 30 J u n e 1994

(d) t h e a c c o m p a n y i n g a c c o u n t s o f AUSLIG h a v e b e e n made

o u t i n a c c o r d a n c e w i t h t h e G u i d e l i n e s f o r F i n a n c i a l

S t a t e m e n t s o f P u b l i c A u t h o r i t i e s a n d C o m m e r c i a l

A c t i v i t i e s , w h i c h r e q u i r e c o m p l i a n c e w i t h t h e

S t a t e m e n t s o f A c c o u n t i n g C o n c e p t s a n d a p p l i c a b l e

A c c o u n t i n g S t a n d a r d s .

D a t e d t h i s Day o f O c t o b e r 1 9 9 4 .

G rah am B a s h f o r d

G e n e r a l M a n a g e r

— - L , t

J o h n M e l l o r s

S e c r e t a r y

364

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN SURVEYING AND LAND INFORMATION GROUP PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

1993/94 1992/93 Note $'000 $'000

OPERATING REVENUE

F e e s P a r l i a m e n t a r y A p p r o p r i a t i o n

1 0 ,6 0 5 1 0 , 4 4 8

- C o m m u n ity S e r v i c e O b l i g a t i o n 2 2 , 6 9 6 2 2 , 3 6 6

O t h e r O p e r a t i n g R e v e n u e 3 . 9 4 2 3 . 5 7 4

TOTAL OPERATING REVENUE 3 7 .2 4 3 3 6 . 3 8 8

OPERATING EXPENSE

C o s t o f s a l e s 2 5 , 7 0 6 2 8 , 1 5 3

O t h e r O p e r a t i n g C o s t s 1 4 .7 1 6 1 5 . 8 1 1

TOTAL OPERATING EXPENSES 40.422 43.964

OPERATING LOSS BEFORE ABNORMAL ITEMS 2 (3,179) (7,576)

A b n o r m a l I t e m s 3 3 , 5 0 5 5 , 9 6 0

OPERATING PROFIT/(LOSS) 326 (1,616)

A c c u m u l a t e d l o s s a t b e g i n n i n g o f f i n a n c i a l y e a r ( 2 2 . 9 3 1 ) ( 2 1 . 3 1 5 )

ACCUMULATED LOSSES AT END OF FINANCIAL YEAR (22.605) (22.931)

The accompanying notes form an integral part of these financial statements.

365

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN SURVEYING AND LAND INFORMATION GROUP BALANCE SHEET AS AT 30 JUNE 1994

Note

1994 $'000

1993 $'000

CURRENT ASSETS Cash 2,601 2,623

Receivables 4 1,455 1,312

Inventories 5 1,363 1,689

Other 6 772 576

TOTAL CURRENT ASSETS 6.191 6.200

NON-CURRENT ASSETS Property, Plant and Equipment 7 17.104 17.533

TOTAL NON-CURRENT ASSETS 17.104 17.533

TOTAL ASSETS 23.295 23,733

CURRENT LIABILITIES Creditors 8 2,113 2,306

Borrowings 9 2,000 2,500

Provisions 10 2,312 2,422

Other 11 1.411 1.674

TOTAL CURRENT LIABILITIES 7.836 8.902

NON-CURRENT LIABILITIES Creditors 12 1,417 1,546

Borrowings 13 10,300 10,300

Provisions 14 3.821 4.346

TOTAL NON-CURRENT LIABILITIES 15.538 16.192

TOTAL LIABILITIES 23.374 25.094

NET ASSETS (79) (1.361)

EQUITY Capital 15 22,446 21,570

Asset Revaluation Reserve 15 80 -

Accumulated losses (22.605) (22.931)

TOTAL EQUITY (79) (1.361)

The accompanying notes form an integral part of these financial statements.

366

DEPARTMENT OF ADMINISTRATIVE SERVICES

AUSTRALIAN SURVEYING AND LAND INFORMATION GROUP

STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30 JUNE 1994

1993/94 1992/93

CASH FLOW FROM OPERATING ACTIVITIES Note $•000 S'000

Inflows R e c e i p t s f r o m C u s t o m e r s 1 6 , 6 4 0 1 4 , 9 7 7

I n t e r e s t R e c e i v e d 1 8 8 2 3 1

P a r l i a m e n t a r y A p p r o p r i a t i o n s

Outflows

2 2 , 4 7 0 2 2 , 3 6 6

P a y m e n t s t o S u p p l i e r s ( 2 0 , 9 7 8 ) ( 2 3 , 3 8 1 )

P a y m e n t s t o S t a f f ( 1 4 , 7 9 1 ) ( 1 7 , 2 6 7 )

I n t e r e s t p a i d ( 9 4 3 ) ( 1 , 1 0 2 )

F i n a n c e c h a r g e s ( 3 1 4 ) ( 3 3 3 )

Net cash provided/ (used) by operating activities

CASH FLOW FROM INVESTING ACTIVITIES

16 2,272 (4,509)

Inflows P r o c e e d s f r o m s a l e o f e q u i p m e n t

Outflows

2 0 7 2 2

P a y m e n t s f o r P r o p e r t y , P l a n t a n d E q u i p m e n t ( 3 , 3 7 3 ) ( 3 , 6 7 9 )

Net cash used by investing activities

CASH FLOW FROM FINANCING ACTIVITIES

(3,166) (3,657)

Inflows B o r r o w i n g s 5 0 0 2 , 5 0 0

G r a n t r e c e i v e d

Outflows

1 , 5 0 0 5 , 0 0 0

B o r r o w i n g s ( 1 , 1 2 8 ) ( 1 0 8 )

Net cash provided by financing activities 872 7,392

Net decrease in cash held (22) (774)

C a s h a t b e g i n n i n g o f r e p o r t i n g p e r i o d 2 , 6 2 3 3 , 3 9 7

CASH AT END OF REPORTING PERIOD 2,601 2,623

The accompanying notes form an integral part of these financial statements.

367

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN SURVEYING AND LAND INFORMATION GROUP NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1. Summary of Significant Accounting Policies

Reporting Entity

A u s t r a l i a n S u r v e y i n g a n d L a n d I n f o r m a t i o n G r o u p ( A U S L I G ) i s a s e g m e n t o f t h e B u s i n e s s S e r v i c e s T r u s t A c c o u n t ( B S T A )

a d m i n i s t e r e d b y t h e D e p a r t m e n t o f A d m i n i s t r a t i v e S e r v i c e s .

Basis of Accounting

AUSLIG, a segment of the BSTA, is required to prepare financial statements under a determination of the Minister for Finance pursuant to section 4ID of the Audit Act 1901. The financial statements have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities issued by the Minister

for Finance in January 1994. The financial statements conform with Statements of Accounting Standards and Concepts issued by the Institute of Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants.

T h e a c c o u n t s h a v e b e e n p r e p a r e d o n a n a c c r u a l b a s i s i n

a c c o r d a n c e w i t h h i s t o r i c a l c o s t c o n v e n t i o n , u n l e s s o t h e r w i s e s t a t e d .

Property Plant and Equipment

Valuation

Property, plant and equipment are recorded at cost. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2000 are expensed at

the time of purchase.

Property, plant and equipment are valued at least every five years. Land and buildings were revalued at market value as at 31 May 1994 by the Australian Valuation Office.

The carrying value of non-current assets does not exceed their recoverable amount. In determining recoverable amount, the expected net cash flows have been calculated taking into account expected Commonwealth appropriations, subsidies and grants from Business Services Trust Account.

Depreciation

Depreciation is provided on a straight line basis on all property, plant and equipment at rates calculated to allocate the cost of those assets over their estimated useful lives.

368

Leasehold Improvements

Leasehold improvements are amortised over the term of the lease.

Inventories

Inventories are maps used for resale under the Community Service Obligations program. They are stated at the lower of cost or net realisable value. The cost represents the cost of printing the maps. No costs of production and revision of maps have been capitalised because they are

funded by Parliamentary appropriations.

Employee entitlements

Provision is made for employees' long service leave and recreational leave entitlements.

Long Service Leave

Long Service Leave is provided for those employees with five years or more service. The provision is dissected into current and non-current liability components based on expected usage in next year.

Recreation Leave

Recreation Leave is provided for those employees who have an entitlement at balance date. The provision includes leave loading component and is classified as current liability.

Leases

Finance Lease

Leases of non-current assets, where substantially all of the risk and benefits incidental to ownership effectively pass to the entity are classified as finance leases. The lease is capitalised at the present value of the minimum lease payments, and amortised over the period expected to benefit

from the use of the asset will accrue. A corresponding liability is established with each lease payment allocated between reduction of the lease liability and interest expense.

Operating Lease

Leases of non-current assets, where substantially all the risks and benefits incidental to ownership effectively remain with the lessor are classified as operating leases. Operating lease payments are charged as expenses in the determination of operating profit.

369

Unearned Income

Deposits and prepayments received by the entity for services yet to be rendered are recorded in the balance sheet at the time of their receipt, as a liability and transferred to profit and loss statement at the time the service is

provided.

Segment Reporting

AUSLIG operates in the surveying and land information industry. AUSLIG's activities are primarily conducted within Australia.

Taxation

AUSLIG is not subject to income tax and most indirect taxes and charges, being a Commonwealth Departmental activity. Fringe Benefits tax and amounts in lieu of indirect taxes on any work for non-Commonwealth clients are expensed and included in the determination of operating profit.

An amount equivalent of Customs Duty on imports is included in the cost of goods. Where the goods are assets, the amount is included in the capital value of the assets and is amortised over the estimated useful lives of the assets.

Capital

The 1990 Memorandum of Understanding between the Departments of Administrative Services and Finance, which describes the financial framework within the commercial entities of the Department of Administrative Services are to operate, specifies that capital invested by the Commonwealth will be divided into interest bearing capital and equity capital in proportions agreed by Ministers. From 1 July 1991 interest bearing capital has been classified as long term borrowings and is shown in the financial statements at the agreed amount.

Dividend

The 1990 Memorandum of Understanding specifies that any dividend payments are based on profitability with recognition of the requirement to retain funds for business purposes and the overall budgetary position.

A p r o v i s i o n f o r d i v i d e n d h a s n o t b e e n i n c l u d e d i n t h e

a c c o u n t s a s t h e M i n i s t e r s f o r F i n a n c e a n d A d m i n i s t r a t i v e

S e r v i c e s a r e y e t t o c o n s i d e r t h e m a t t e r .

370

2 . Operating Loss:

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

O p e r a t i n g l o s s i s a r r i v e d a t a f t e r

c r e d i t i n g a n d c h a r g i n g t h e f o l l o w i n g s p e c i f i c i t e m s :

A f t e r c r e d i t i h g P a r l i a m e n t a r y A p p r o p r i a t i o n s -

Community service obligations 22,696 22, 366

Interest received and receivable 188 231

Profit on disposal of non-current assets 80 -

After charging as expense Salaries and wages 11,914 14, 045

Interest paid and payable 943 1 , 102

Finance charges - leased liability 314 333

Operating lease rentals 4,147 1,186

Loss on disposal of non-current assets Provision '

27

- depreciation & amortisation 3,753 4, 537

- employee entitlements 3,152 3, 546

- insurance 31 61

3. Abnormal Items

I n c l u d e d i n t h e O p e r a t i n g l o s s a r e t h e

f o l l o w i n g a b n o r m a l i t e m s :

I t e m s c r e d i t e d :

Assets received free of charge 599 1,250

Parliamentary Appropriations-Redundancy Funding 2,183 839 Grant from Business Services Trust Account 1.500 5.000 4.282 7.089 Items charged:

Accommodation rationalisation expense 151 70

Redundancy expense 626 1.059

777 1.129

Net Abnormal Items 3.505 5.960

Receivables (Current)

Trade debtors 1,468 1,387

less provision for doubtful debts 13 75

Total Receivables (Current) 1.455 1,312

371

5. Inventories

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

Work in progress at cost 363 689

Maps at weighted average cost 1,000 1 . 0 0 0

Total Inventories 1.363 1. 689

Other (Current)

Prepayments 546 576

Amount owing by Department of Finance 226 -

Total Other (Current) 772 576

Property, Plant and Equipment

Land and Buildings At cost - 589

less provision for amortisation - 20

- 569

Land At independent valuation 110 -

Buildings At independent valuation 65 -

At cost 485 _

less accumulated depreciation 24 -

461 -

526 -

Leasehold Improvements At cost 2,298 2,298

less provision for amortisation 690 354

1.608 1.944

Total Land and Buildings 2.244 2.513

Plant and Equipment at cost At cost 32,815 29,752

less accumulated depreciation 17.955 14.732

14.860 15.020

Total property, plant and equipment 17.104 17.533

Land and buildings were revalued at market value as at 31 May 1994 by the Australian Valuation Office

Creditors (Current)

Leased liability 442 442

Trade creditors 1,175 1,059

Other creditors and accrued expenses 496 805

Total Creditors (Current) 2.113 2.306

Borrowings (Current)

Loans - other business units 2,000 2,500

These are interest bearing loans at the Commonwealth long term bond rate.

372

10. Provisions (Current)

1993/94 $'000 1992/93 $'000

Employee entitlements: - long service leave - recreation leave and leave bonus - superannuation Total Employee entitlements

250

2,056 6

2.312

250

2,087 85

2.422

11. Other (Current Liabilities)

Unearned income Unspent redundancy moneys

1,411 1,345 329

Total Creditors (Non-Current) 1.411 1.674

12. Creditors (Non-Current)

Leased liability 1,417 1,546

13. Borrowings (Non-Current)

Debt Capital 10,300 10,300

These are interest bearing loans at the Commonwealth long term bond rate.

14. Provisions Creditors (Non-Current)

Employee entitlements: Provision for Long Service Leave 3,821 4,346

15. Equity

Capital

Opening Balance Add: Staff transfer adjustment

21,570 876 21,570

Closing Balance 30 June 22.446 21.570

C a p i t a l i s r e p a y a b l e t o t h e C o m m o n w e a l t h a t s u c h t i m e s a n d i n s u c h a m o u n t s a s t h e M i n i s t e r f o r F i n a n c e d e t e r m i n e s i n w r i t i n g .

Staff transfer adjustment comprises assets and liabilities accompanying the transfer of staff to the Staffing Adjustment Program of the BSTA.

Reserve

Asset Revaluation Reserve Opening balance -

Add-Increment in revaluation of Land 8_0

and Buildings Closing Balance 80

373

16. Cash Flow Reconciliation.

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

Operating profit/(loss) 326 (1,616)

(Profit)/Loss on sale of assets (79) 27

Depreciation 3,753 4,537

Abnormal item (1,500) (6,250)

Provision for doubtful debts (62) (6)

(Increase)/decrease in receivables (81) 827

Increase in other current assets (196) (151)

(Increase)/decrease in inventories 326 (149)

Decrease in creditors (193) (765)

Increase/(decrease) in provisions (635) 56

Decrease in other current liabilities (263) (1,019) Increase in equity capital 876 -

Net cash provided/(used) by Operating Activities 2,272 (4,_509)

17. Commitments

(a) Finance Lease

Outstanding unsecured commitment on unexpired term of lease for office fitout Not later than 1 year 442 442

Later than 1 year and not later than 2 years 442 442

Later than 2 years and not later than 5 years 1,325 1,325 Later than 5 years 856 1.295

3,065 3,504

Less future finance charges 1.202 1.516

1, 863 1,988

(b) Operating Leases (non cancellable)

Outstanding unsecured commitment on unexpired term of lease for office space and accommodation Not later than 1 year 1,410 1,393

Later than 1 year and not later than 2 years 1,655 1,410 Later than 2 years and not later than 5 years 5,631 5,297 Later than 5 years 4.525 6.514

13,221 14,614

374

1993/94 1992/93 $'000 $'000

Other commitments

Not later than 1 year 9,943 10,857

Later than 1 year and not later than 2 years 9,943 10,857 Later than 2 years and not later than 5 years 29,826 32,571 Later than 5 years - -

49,712 54,285

Total Commitments 64,796 70,887

Other commitments are estimated for up to five years. Formal lease documents do not exist and administrative arrangements are not limited by time.

18. Superannuation Commitments

During the financial year employees contributed to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. An

employer superannuation contribution is paid to the Retirement Benefits Office to meet the assessed employer costs under the respective Schemes.

The amount of employer contribution paid and payable in respect of the financial year was Z,10.8 2,382

19. Contingent Liabilities

Estimated total amount of contingent liabilities at the balance date Nil Nil

20. Remuneration of Executives

The number of executive officers received or were due to receive income of $100,000 or more: Number 1993/94 1992/93

$100,000 - $109,999 1 1

The aggregate amount received or due and received was 109 103

21. Auditors' Remuneration

Amounts receivable or due and receivable by the auditors for auditing the account 32 40

375

22. Economic Dependency-Normal business activities are dependent upon significant volume of business with Commonwealth Government Agencies.

23. Heritage Assets

AUSLIG has certain heritage assets comprising aerial mapping film and mapping reproduction material related to AUSLIG's Public Interest Program. These assets have not been brought to account because the value cannot be accurately determined.

24. Events Subsequent to Balance Date

Subsequent to the balance date on 1 July 1994, additional Commonwealth capital of $10.38m was distributed to AUSLIG from other BSTA businesses.

376

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

AUSTRALIAN VALUATION OFFICE

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

377

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN VALUATION OFFICE INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of the Australian Valuation Office, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994. The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and General Manager, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and the General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit Office, GPO BOX 707, Canberra ACT 2601 e Telephone (06) 203 7500 · Fax (06) 273 5355

378

A u d i t O p i n i o n

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of the Australian Valuation Office, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of the Australian Valuation Office as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities.

J.C. Taylor Auditor-General

{l ^ October 1994

379

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN VALUATION OFFICE CERTIFICATE ON FINANCIAL STATEMENTS

In our opinion

(a) the accompanying accounts show fairly the profit of the Australian Valuation Office for the year ended 30 June 1994

(b) the accompanying accounts show fairly the financial position of the Australian Valuation Office as at 30 June 1 994

(c) the accompanying accounts show fairly the cash flows of the Australian Valuation Office for the year ended 30 June 1994

(d) the accompanying accounts of the Australian Valuation Office have been made out in accordance with the

Guidelines for Financial Statements of Public Authorities and Commercial Activities, which require compliance with Statements of Accounting Concepts and applicable

Accounting Standards.

Dated this day of October 1994

Malcolm R Coleman General Manager

John Mellors S ecretary

380

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN VALUATION OFFICE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

Note 1993/94 1992/93

OPERATING REVENUE

$'000 $' 000

Fees Other Operating Revenue

: 22 126

788

22 089 818

TOTAL OPERATING REVENUE

OPERATING EXPENSES

22 91 4 22 907

Cost of Sales 17 084 16 51 8

Other Operating Costs 2 830 3 238

TOTAL OPERATING EXPENSES 19 914 19 756

OPERATING PROFIT BEFORE ABNORMAL ITEMS

2 3 000 3 1 51

ABNORMAL ITEMS 3 437 (14)

NET OPERATING PROFIT 3 437 3 1 37

Accumulated Profits at beginning of financial year 3 526 3 389

TOTAL AVAILABLE FOR APPROPRIATION 6 963 6 526

Dividend Paid 3 000 3 000

ACCUMULATED PROFITS AT END OF FINANCIAL YEAR

3 963 3 526

The accompanying Notes form an integral part of these financial statements

381

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN VALUATION OFFICE BALANCE SHEET AS AT 30 JUNE 1994

Notei 1993/94 1992/93

CURRENT ASSETS Cash

$'000

6 168

$'000

7 216

Receivables 4 4 167 3 594

Other 5 1 77 321

TOTAL CURRENT ASSETS I 10 512 11 131

NON-CURRENT ASSETS Receivables 6 257 258

Property, Plant and Equipment 7 927 644

Intangibles 8 292 168

TOTAL NON-CURRENT ASSETS 1 476 1 070

TOTAL ASSETS 1 1 988 12 201

CURRENT LIABILITIES Creditors 9 618 817

Provisions 10 1 448 1 630

Other 11 71 32

TOTAL CURRENT LIABILITIES 2 1 37 2 479

NON-CURRENT LIABILITIES Borrowings 12 1 950 1 950

Provisions 13 1 830 2 251

TOTAL NON-CURRENT LIABILITIES 3 780 4 201

TOTAL LIABILITIES 5 917 6 680

NET ASSETS 6 071 5 521

EQUITY Capital 14 1 591 1 587

Reserves 14 517 408

Accumulated Profits 3 963 3 526

TOTAL EQUITY 6 071 5 521

The accompanying Notes form an integral part of these financial statements

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN VALUATION OFFICE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 1994

Note 1993/94 1992/93 $'000 $' 000

CASH FLOWS FROM OPERATING ACTIVITIES

Inflows Receipts from customers 21 637 21 479

Interest received 71 2 789

Other operating receipts 2 096 20

Outflows Payments to staff 1 2 883 10 31 1

Interest paid 144 1 77

Other operating payments 8 688 8 604

Net cash provided by operating activities 15 2 730 3 196

CASH FLOWS FROM INVESTING ACTIVITIES

Inflows Proceeds from sale of equipment 2

Outflows Payment for property, plant & equipment 778 1 77

Net cash used by investing activities (778) (175)

CASH FLOWS FROM FINANCING ACTIVITIES

Outflows Dividend paid 3 000 3 000

Net cash used by financing activities (3 000) (3 000)

Net increase/(decrease) in cash held (1 048) 21

Cash at beginning of reporting period 7 21 6 7 1 95

CASH AT END OF REPORTING PERIOD 6 168 7 216

The accompanying Notes form an integral part of these financial statements

383

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT AUSTRALIAN VALUATION OFFICE NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1.Summary of Significant Accounting Policies

Reporting entity

The Australian Valuation Office is a segment of the Business Services Trust Account (BSTA) administered by the Department of Administrative Services.

Basis of Accounting

The Australian Valuation Office, a segment of the BSTA, is required to prepare financial statements under a determination of the Minister for Finance pursuant to section 41D of the A u d i t A c t 1901. The financial statements have been made out

in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities issued by the Minister for Finance in January 1994. The financial

statements conform with Statements of Accounting Standards and Concepts issued by the Institute of Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants.

The accounts have been prepared in accordance with the

historical cost convention, unless otherwise stated.

Property Plant and Equipment

Valuation

Property, plant and equipment are recorded at cost. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2,000 are expensed at the time of purchase.

Property, plant and equipment are valued at least every five years. Land and buildings were revalued at market value as at 31 May 1994 by an officer of the Australian Valuation Office.

384

The carrying value of non-current assets does not exceed their recoverable amount.

Depreciation

Depreciation is provided on a straight line basis on all property, plant and equipment at rates calculated to allocate the cost of those assets over their estimated useful lives.

Leasehold Improvements

Leasehold improvements are amortised over the term of the lease.

Intangibles

Intangible assets are brought to account at cost and amortised over the period expected benefits will be received.

Employee Entitlements

Provision is made for employees' long service leave and recreational leave entitlements.

Long Service Leave

Long service leave is provided for those employees with five years or more service. The provision is dissected into

current and non-current liability components based on expected usage in the next year.

Recreation Leave

Recreation leave is provided for those employees who have an entitlement at balance date. The provision includes a leave loading component and is classified as a current liability.

Unearned Income

Deposits and prepayments received for services yet to be rendered are recorded in the balance sheet at the time of their receipt as a liability and are transferred to the profit and loss statement at the time the service is provided.

385

Segment Reporting

The Australian Valuation Office operates primarily in the real property and non-current assets valuation industry.

The Australian Valuation Office's activities are primarily conducted within Australia.

Taxation

The Australian Valuation Office is not subject to income tax and most indirect taxes and charges, being a Commonwealth Departmental activity. Fringe Benefits tax and amounts in lieu of indirect taxes on work for non-Commonwealth clients are expensed and included in the determination of operating profit.

Capital

The 1990 Memorandum of Understanding between the Departments of Administrative Services and Finance, which describes the financial framework within which the commercial entities of the Department of Administrative Services are to operate, specifies that capital invested by the Commonwealth will be divided into interest bearing capital and equity capital in proportions agreed by Ministers. From 1 July 1991 interest bearing capital has been classified as long term borrowings and is shown in the financial statements at the agreed amount.

Dividend

The 1990 Memorandum of Understanding specifies that any dividend payments are based on profitability with recognition of the requirement to retain funds for business purposes and the overall budgetary position.

A dividend of $3,000,000 was paid to the Department of

Administrative Services during the period from 1992/93 profits.

A provision for dividend has not been included in the accounts as the Ministers for Finance and Administrative Services are yet to consider the matter.

386

1993/94 1992/93 $ 100 0 $ ' 0 0 0

2. Operating Profit

The operating profit is arrived at after crediting and charging the following specific items:

After crediting as revenue: Interest ■ 712 789

Profit on disposal of non-current assets - 2

After charging as expense: Salaries and wages 9 226 8 985

Interest 144 175

Loss on write-off of non-current assets Provisions 57 - depreciation and amortisation 422 421

- employee benefits 1 107 1 334

3. Abnormal Items

Included in the operating profit are the following abnormal items:

Items credited: Parliamentary appropriation - Redundancy funding 1 806 60

1 806 60

Items charged: Redundancy payments 1 369 74

1 369 74

Net Abnormal Items 437 (14)

4. Receivables (Current)

Trade debtors Less: Provision for doubtful debts 2 217 1 644

2 217 1 644

Loans - other business units 1 950 1. 950

Total Receivables (Current) 4 167 3 594

5. Other (Current Assets)

Prepayments 1 77 321

Total Other Current Assets 177 321

6. Receivables (Non-Current)

Completed valuation work (billing arrangements over five year period) 257 258

Total Receivables (Non-Current) 257 258

387

7. Property, Plant and Equipment

Land and buildings At Cost Less: Provision for depreciation

Land At Independent Valuation 1994

Buildings At Independent Valuation 1994 Less: Provision for depreciation

Leasehold improvements At Cost Less: Provision for amortisation

Total Land and building

Plant and equipment At Cost Less: Provision for depreciation Total Plant and equipment

Total Property, plant and equipment

Land and buildings were revalued at market value as at 31 May 1994 by an officer of the Australian Valuation Office.

8. Intangibles

Software licences At Cost Less: Provision for amortisation

Total Intangibles

9. Creditors (Current)

Trade creditors Accrued expenses

Total Creditors (Current)

10. Provisions (Current)

Employee entitlements: - Long service leave - recreation leave & leave bonus Total Employee entitlements

Total Provisions (Current)

1 9 9 3 / 9 4 1 9 9 2 / 9 3

$ ' 0 0 0 $ ' 0 0 0

1 54

- 9

- 145

100 -

1 51 -

1 51 -

486 1 67

57 1 7

429 1 50

680 295

1 130 978

883 629

247 349

927 644

360 238

68 70

292 168

292 168

27 10

591 807

618 81 7

203 250

1 245 1 380

1 448 1 630

1 448 1 630

388

11. Other (Current Liabilities)

Unearned income

Total Other Current Liabilities

12. Borrowings (Non-Current)

Debt capital

Total Borrowings

These are interest bearing loans Commonwealth long term bond rate.

1993/94 1992/93 $'000 $ ' 000

71 32

71 12

1 950 1 950

1 950 1 950

the

13. Provisions (Non-Current)

Employee entitlements: - Long service leave 1 830 2 251

Total Provisions (Non-Current) 1 830 2 251

14. Equity

Capital

Opening balance 1 587 1 587

Staff transfer adjustment 4 -

Capital invested at 30 June 1 591 1 587

Capital is repayable to the Commonwealth at such times and in such amounts as the Minister for Finance determines in writing.

Staff transfer adjustment comprises assets and liabilities accompanying the transfer of staff to the Staffing Adjustment Program of the Business

Services Trust Account.

Reserves

Asset replacement reserve

Opening balance Transfer from Accumulated Profits

408 408

Closing balance 408 408

Asset revaluation reserve

Opening balance Revaluation during 1993/94 109

-

Closing balance 109 ~

Total Reserve 51 7 408

389

1993/94 1992/93 $'000 $ 1 000

15. Cash Flow Reconciliation

Net Operating Profit 3 437 3 1 37

Gain on disposal of assets - (2)

Depreciation & amortisation 422 421

Assets written off 57 29

Increase in Receivables (572) (711)

Decrease in Prepayments 145 (219)

Decrease in Creditors & Accruals (198) 1 79

Decrease in Provisions (599) 330

Increase in Unearned Revenue 38 32

Net cash provided by operating activities 2 730 3 196

16. Commitments

Other Commitments

not later than one year 2 624 2 735

later than one year but not later than 2 yrs 2 656 2 828

later than 2 years but not later than 5 yrs 7 764 8 579

13 044 14 142

Total Commitments 1 3 044 1 4 142

Other commitments are estimated for up to five years. Formal lease documents do not exist and administrative arrangements are not limited by time.

17. Superannuation

During the financial year, employees contributed to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. An employer superannuation contribution is paid to the Retirement Benefits Office to meet the assessed employer costs under the respective schemes.

The amount of employer contributions paid and payable in respect of the financial year was 1 531 1 499

18. Remuneration of Executives

No executive officers received or were due to receive income of $100,000 or more.

19. Auditors' Remuneration

The aggregate amount received or due and receivable by the auditors for auditing the accounts was _____25 _____ 30

20. Economic Dependency

Normal business a c t i v i t i e s a re dependent upon a s i g n i f i c a n t volume of bu sin ess with Commonwealth Government Agencies. 390

D E P A R T M E N T O F A D M I N I S T R A T I V E S E R V I C E S

B U S I N E S S S E R V I C E S T R U S T A C C O U N T

COMCAR

F I N A N C I A L S T A T E M E N T S

F O R Y E A R E N D E D 3 0 J U N E 1 9 9 4

391

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT COMCAR INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of Comcar, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994. The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and Acting General Manager, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and the Acting General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to

express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion Expressed in this report has been formed on the above basis.

Australian National Audit Office, GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 e Fax (06) 273 5355

392

Audit Opinion

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of Comcar, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of Comcar as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities.

^ . C ■ '

J.C. Taylor Auditor-General

II ^ October 1994

393

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

COMCAR

CERTIFICATE ON FINANCIAL STATEMENTS

In our opinion

(a) the accompanying accounts show fairly the profit of COMCAR for the year ended 30 June 1994

(b) the accompanying accounts show fairly the financial position of COMCAR as at 30 June 1994

(c) the accompanying accounts show fairly the cash flows of COMCAR during the year ended 30 June 1994

(d) the accompanying accounts of COMCAR have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities, which require compliance with Statements of Accounting Concepts and applicable Accounting

Standards.

Dated this day of October 1994

David Fink A/g General Manager

John Mellors Secretary

394

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT COMCAR PROFIT AND LOSS FOR THE YEAR ENDED

STATEMENT 30 JUNE 1994

OPERATING REVENUE

Note 1993/94 $ 1 000 1992/93 $ 1 000

F e e s

P a r l i a m e n t a r y A p p r o p r i a t i o n

2 0 , 3 6 1 2 3 , 6 2 2

- C o m m u n i t y S e r v i c e s O b l i g a t i o n 3 , 0 0 0 3 , 0 0 0

O t h e r O p e r a t i n g R e v e n u e 1 0 7 1 4 6

TOTAL OPERATING REVENUE

OPERATING EXPENSES

2 3 , 4 6 8 2 6 , 7 6 8

C o s t o f S a l e s 2 7 , 4 2 4 3 0 , 5 7 4

O t h e r O p e r a t i n g C o s t s 7 , 2 0 9 1 1 , 8 1 7

TOTAL OPERATING EXPENSES 3 4 , 6 3 3 4 2 , 3 9 1

OPERATING LOSS BEFORE ABNORMAL ITEMS

2 ( 1 1 , 1 6 5 ) ( 1 5 , 6 2 3 )

A B N O R M A L I T E M S 3 1 4 , 9 9 6 6 , 5 7 1

NET OPERATING PROFIT/(LOSS) 3 , 8 3 1 ( 9 , 0 5 2 )

A c c u m u l a t e d L o s s e s a t b e g i n n i n g o f F i n a n c i a l Y e a r

( 2 2 , 5 9 2 ) ( 1 3 , 5 4 0 )

ACCUMULATED LOSSES AT END OF FINANCIAL YEAR

( 1 8 , 7 6 1 ) ( 2 2 , 5 9 2 )

The accompanying Notes form an integral part of these financial statements

395

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT COMCAR BALANCE SHEET AS AT 30 JUNE 1994

CURRENT ASSETS

Note 1993/94 $ · 000 1992/93 $ ' 000

C a s h 2 , 1 1 6 1 , 2 1 0

R e c e i v a b l e s 4 2 , 1 7 7 3 , 7 9 7

O t h e r 5 3 4 5 3 0 2

TOTAL CURRENT ASSETS 4 , 6 3 8 5 , 3 0 9

NON-CURRENT ASSETS P r o p e r t y , P l a n t a n d E q u i p m e n t 6 2 , 2 1 6 2 , 8 6 5

I n t a n g i b l e s 7 1 , 5 9 0 1 , 9 9 2

TOTAL NON-CURRENT ASSETS 3 , 8 0 6 4 , 8 5 7

TOTAL ASSETS 8 , 4 4 4 1 0 , 1 6 6

CURRENT LIABILITIES C r e d i t o r s 8 1 , 6 5 4 5 , 6 5 9

B o r r o w i n g s 9 1 1 , 2 0 0 1 1 , 2 0 0

P r o v i s i o n s 10 1 , 9 1 6 2 , 5 4 0

O t h e r 11 1 1 5 4 5

TOTAL CURRENT LIABILITIES 1 4 , 8 8 5 1 9 , 4 4 4

NON-CURRENT LIABILITIES B o r r o w i n g s 12 5 , 6 7 5 5 , 6 7 5

P r o v i s i o n s 13 1 , 4 8 1 2 , 7 7 1

TOTAL NON-CURRENT LIABILITIES 7 , 1 5 6 8 , 4 4 6

TOTAL LIABILITIES 2 2 , 0 4 1 2 7 , 8 9 0

NET ASSETS ( 1 3 , 5 9 7 ) ( 1 7 , 7 2 4 )

EQUITY C a p i t a l 14 5 , 1 6 4 4 , 8 6 8

A c c u m u l a t e d L o s s e s ( 1 8 , 7 6 1 ) ( 2 2 , 5 9 2 )

TOTAL EQUITY ( 1 3 , 5 9 7 ) ( 1 7 , 7 2 4 )

The accompanying Noies foim an integta 1 pact of these financial stal.emenl.s

396

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT COMCAR NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1.Summary of Significant Accounting Policies

Reporting entity

COMCAR i s a s e g m e n t o f t h e B u s i n e s s S e r v i c e s T r u s t A c c o u n t

( BST A) a d m i n i s t e r e d b y t h e D e p a r t m e n t o f A d m i n i s t r a t i v e

S e r v i c e s .

Basis of Accounting

COMCAR, a s e g m e n t o f t h e BSTA, i s r e q u i r e d t o p r e p a r e

f i n a n c i a l s t a t e m e n t s u n d e r a d e t e r m i n a t i o n o f t h e M i n i s t e r f o r

F i n a n c e p u r s u a n t t o s e c t i o n 4 1 D o f t h e A u d i t A c t 1 9 0 1 . T h e

f i n a n c i a l s t a t e m e n t s h a v e b e e n m a d e o u t i n a c c o r d a n c e w i t h t h e

G u i d e l i n e s f o r F i n a n c i a l S t a t e m e n t s o f P u b l i c A u t h o r i t i e s a n d

C o m m e r c i a l A c t i v i t i e s i s s u e d b y t h e M i n i s t e r f o r F i n a n c e i n

J a n u a r y 1 9 9 4 . T h e f i n a n c i a l s t a t e m e n t s c o n f o r m w i t h

S t a t e m e n t s o f A c c o u n t i n g S t a n d a r d s a n d C o n c e p t s i s s u e d b y t h e

I n s t i t u t e o f C h a r t e r e d A c c o u n t a n t s i n A u s t r a l i a a n d t h e

A u s t r a l i a n S o c i e t y o f C e r t i f i e d P r a c t i s i n g A c c o u n t a n t s .

T h e a c c o u n t s h a v e b e e n p r e p a r e d i n a c c o r d a n c e w i t h t h e

h i s t o r i c a l c o s t c o n v e n t i o n , u n l e s s o t h e r w i s e s t a t e d .

T h e a c c o u n t s h a v e b e e n p r e p a r e d o n a n o n g o i n g c o n c e r n b a s i s a s

t h e a g g r e g a t e r e s o u r c e s o f t h e BSTA w i l l b e u t i l i s e d t o t h e

e x t e n t n e c e s s a r y t o m e e t t h e o b l i g a t i o n s o f e a c h B u s i n e s s U n i t

o f t h e B S T A .

Property Plant and Equipment

Va 1 n a t i o n

P r o p e r t y , p l a n t a n d e q u i p m e n t a r e r e c o r d e d a t c o s t . C o s t i n

r e l a t i o n t o t h e r e s p e c t i v e c l a s s o f a s s e t r e p r e s e n t s t h e c a s h

a m o u n t p a i d o r t h e f a i r v a l u e o f t h e a s s e t s t r a n s f e r r e d o r

a c q u i r e d . A s s e t s c o s t i n g l e s s t h a n $ 2 , 0 0 0 a r e e x p e n s e d a t t h e

t i m e o f p u r c h a s e .

T h e c a r r y i n g v a l u e o f n o n - c u r r e n t a s s e t s d o e s n o t e x c e e d t h e i r

r e c o v e r a b l e a m o u n t . I n d e t e r m i n i n g r e c o v e r a b l e a m o u n t , t h e

e x p e c t e d n e t c a s h f l o w s h a v e b e e n c a l c u l a t e d t a k i n g i n t o

a c c o u n t e x p e c t e d C o m m o n w e a l t h a p p r o p r i a t i o n s , s u b s i d i e s a n d

g r a n t s f r o m t h e B u s i n e s s S e r v i c e s T r u s t A c c o u n t .

398

D enreci a t i on

D e p r e c i a t i o n i s p r o v i d e d o n a s t r a i g h t l i n e b a s i s o n a l l

p r o p e r t y , p l a n t a n d e q u i p m e n t a t r a t e s c a l c u l a t e d t o a l l o c a t e

t h e c o s t o f t h o s e a s s e t s o v e r t h e i r e s t i m a t e d u s e f u l l i v e s .

T . s a s R h n l d Tmpr o v e r r e n t s

L e a s e h o l d i m p r o v e m e n t s a r e a m o r t i s e d o v e r t h e t e r m o f t h e

l e a s e .

Intangibles

I n t a n g i b l e a s s e t s a r e b r o u g h t t o a c c o u n t a t c o s t a n d a m o r t i s e d

o v e r t h e p e r i o d e x p e c t e d b e n e f i t s w i l l b e r e c e i v e d .

Employee Entitlements

P r o v i s i o n i s made f o r e m p l o y e e s ' l o n g s e r v i c e l e a v e a n d

r e c r e a t i o n a l l e a v e e n t i t l e m e n t s .

L o n g S f i r v i c p L e a v e

L o n g s e r v i c e l e a v e i s p r o v i d e d f o r t h o s e e m p l o y e e s w i t h f i v e

y e a r s o r m o r e s e r v i c e . T h e p r o v i s i o n i s d i s s e c t e d i n t o

c u r r e n t a n d n o n - c u r r e n t l i a b i l i t y c o m p o n e n t s b a s e d o n e x p e c t e d

u s a g e i n n e x t y e a r .

R e c r e a t i o n L e a v e

R e c r e a t i o n l e a v e i s p r o v i d e d f o r t h o s e e m p l o y e e s w h o h a v e a n

e n t i t l e m e n t a t b a l a n c e d a t e . T h e p r o v i s i o n i n c l u d e s a l e a v e

l o a d i n g c o m p o n e n t a n d i s c l a s s i f i e d a s a c u r r e n t l i a b i l i t y .

Leases

O p e r a t i n g l e a s e

L e a s e s o f n o n - c u r r e n t a s s e t s , w h e r e s u b s t a n t i a l l y a l l t h e

r i s k s a n d b e n e f i t s i n c i d e n t a l t o o w n e r s h i p e f f e c t i v e l y r e m a i n

w i t h t h e l e s s o r a r e c l a s s i f i e d a s o p e r a t i n g l e a s e s . O p e r a t i n g

l e a s e p a y m e n t s a r e c h a r g e d a s e x p e n s e s i n t h e d e t e r m i n a t i o n o f

o p e r a t i n g p r o f i t .

399

Unspent Redundancy Monies

D e p o s i t s a n d p r e p a y m e n t s r e c e i v e d a r e r e c o r d e d i n t h e b a l a n c e

s h e e t a t t h e t i m e o f t h e i r r e c e i p t a s a l i a b i l i t y a n d a r e

t r a n s f e r r e d t o p r o f i t a n d l o s s s t a t e m e n t a t t h e t i m e t h e

s e r v i c e i s p r o v i d e d .

Community Service Obligation

C o m m u n i t y S e r v i c e O b l i g a t i o n r e p r e s e n t s m o n i e s r e c e i v e d i n

r e s p e c t o f C OM C AR ' s r o l e i n p r o v i d i n g s a f e a n d s e c u r e

t r a n s p o r t a t i o n f o r p a r l i a m e n t a r i a n s .

Segment Reporting

COMCAR o p e r a t e s p r i m a r i l y i n t h e T a x i a n d H i r e C a r i n d u s t r y .

C OM CAR' S a c t i v i t i e s a r e c o n d u c t e d w i t h i n A u s t r a l i a .

Taxation

COMCAR i s n o t s u b j e c t t o i n c o m e t a x a n d m o s t i n d i r e c t t a x e s

a n d c h a r g e s , b e i n g a C o m m o n w e a l t h D e p a r t m e n t a l a c t i v i t y .

F r i n g e B e n e f i t s t a x a n d a m o u n t s i n l i e u o f i n d i r e c t t a x e s o n

w o r k f o r n o n - C o m m o n w e a l t h c l i e n t s a r e e x p e n s e d a n d i n c l u d e d i n

t h e d e t e r m i n a t i o n o f o p e r a t i n g p r o f i t .

A n a m o u n t e q u i v a l e n t o f C u s t o m s D u t y o n i m p o r t s i s i n c l u d e d i n

t h e c o s t o f g o o d s . W h e r e t h e g o o d s a r e a s s e t s , t h e a m o u n t i s

i n c l u d e d i n t h e c a p i t a l v a l u e o f t h e a s s e t s a n d i s a m o r t i s e d

o v e r t h e e s t i m a t e d u s e f u l l i v e s o f t h e a s s e t s .

Capital

T h e 1 9 9 0 M e m o r a n d u m o f U n d e r s t a n d i n g b e t w e e n t h e D e p a r t m e n t s

o f A d m i n i s t r a t i v e S e r v i c e s a n d F i n a n c e , w h i c h d e s c r i b e s t h e

f i n a n c i a l f r a m e w o r k w i t h i n w h i c h t h e c o m m e r c i a l e n t i t i e s o f

t h e D e p a r t m e n t o f A d m i n i s t r a t i v e S e r v i c e s a r e t o o p e r a t e ,

s p e c i f i e s t h a t c a p i t a l i n v e s t e d b y t h e C o m m o n w e a l t h w i l l b e

d i v i d e d i n t o i n t e r e s t b e a r i n g c a p i t a l a n d e q u i t y c a p i t a l i n

p r o p o r t i o n s a g r e e d b y M i n i s t e r s . F r o m 1 J u l y 1 9 9 1 i n t e r e s t

b e a r i n g c a p i t a l h a s b e e n c l a s s i f i e d a s l o n g t e r m b o r r o w i n g s

a n d i s s h o w n i n t h e f i n a n c i a l s t a t e m e n t s a t t h e a g r e e d a m o u n t .

400

Dividend

T h e 1 9 9 0 M e m o r a n d u m o f U n d e r s t a n d i n g s p e c i f i e s t h a t a n y

d i v i d e n d p a y m e n t s a r e b a s e d o n p r o f i t a b i l i t y w i t h r e c o g n i t i o n

o f t h e r e q u i r e m e n t t o r e t a i n f u n d s f o r b u s i n e s s p u r p o s e s a n d

t h e o v e r a l l b u d g e t a r y p o s i t i o n .

A p r o v i s i o n f o r d i v i d e n d h a s n o t b e e n i n c l u d e d i n t h e a c c o u n t s

a s t h e M i n i s t e r s f o r F i n a n c e a n d A d m i n i s t r a t i v e S e r v i c e s a r e

y e t t o c o n s i d e r t h e m a t t e r .

Administrative Arrangements Transfers

A s a r e s u l t o f c h a n g e d a d m i n i s t r a t i v e a r r a n g e m e n t s , COMCAR

c e a s e d t o o p e r a t e t h r o u g h t h e B u s i n e s s S e r v i c e s T r u s t A c c o u n t

o n 1 J u l y 1 9 9 4 a n d c o m m e n c e d o p e r a t i o n t h r o u g h t h e COMCAR

T r u s t A c c o u n t f r o m t h e s a m e d a t e .

D e t a i l s o f a s s e t s a n d l i a b i l i t i e s t r a n s f e r r e d t o t h e COMCAR

T r u s t A c c o u n t o n 1 J u l y 1 9 9 4 a r e s e t o u t i n N o t e 2 1 .

401

1 9 9 3 / 9 4 1 9 9 2 / 9 3

2 . Operating Loss

T h e o p e r a t i n g L o s s i s a r r i v e d a t a f t e r

c r e d i t i n g a n d c h a r g i n g t h e f o l l o w i n g s p e c i f i c

i t e r n s :

A f t e r c r e d i t i n g a s r e v e n u e :

P a r l i a m e n t a r y a p p r o p r i a t i o n

$ ' 000 $ ' 000

• C o m m u n i t y S e r v i c e O b l i g a t i o n s 3 , 0 0 0 3 , 0 0 0

I n t e r e s t 1 0 0 1 2 7

P r o f i t o n d i s p o s a l o f n o n - c u r r e n t a s s e t s 0 2 0

A f t e r c h a r g i n g a s e x p e n s e :

S a l a r i e s a n d w a g e s 1 8 , 2 3 0 2 1 , 1 7 3

I n t e r e s t 1 , 3 1 9 8 1 0

O p e r a t i n g l e a s e p a y m e n t s 3 , 17 1 3 , 6 8 8

L o s s o n d i s p o s a l o f n o n - c u r r e n t a s s e t s

P r o v i s i o n s

13 1 9 4

- d e p r e c i a t i o n a n d a m o r t i s a t i o n 1 , 1 5 9 7 87

- e m p l o y e e b e n e f i t s

3. Abnormal Items

I n c l u d e d i n t h e o p e r a t i n g p r o f i t / ( l o s s ) a r e t h e

f o l l o w i n g a b n o r m a l i t e m s :

I t e m s c r e d i t e d :

P a r l i a m e n t a r y a p p r o p r i a t i o n

8 7 9 1 , 1 7 1

- R e d u n d a n c y f u n d i n g 4 , 9 3 0 3 2 1

- S u b s i d y 1 4 , 0 0 0 4 , 5 0 0

G r a n t f r o m B u s i n e s s S e r v i c e s T r u s t A c c o u n t 0 2 , 0 0 0

I t e m s c h a r g e d :

1 8 , 9 3 0 6 , 8 2 1

R e d u n d a n c y p a y m e n t s 3 , 9 0 3 2 5 0

P e n a l t y I n t e r e s t o n CRF L o a n 31 0

3 , 9 3 4 2 5 0

N e t A b n o r m a l I t e m s 1 4 , 9 9 6 6 , 5 7 1

4. Receivables (Current)

T r a d e d e b t o r s 2 , 2 7 2 3 , 9 3 7

L e s s : P r o v i s i o n f o r d o u b t f u l d e b t s 9 5 1 4 0

T o t a l R e c e i v a b l e s ( C u r r e n t ) 2 , 177 3 , 7 9 7

5. Other (Current Assets)

P r e p a y m e n t s 1 9 8 1 0 5

R e c o v e r a b l e E x p e n d i t u r e 147 1 9 7

T o t a l O t h e r C u r r e n t A s s e t s 3 4 5 3 0 2

402

6. Property, Plant and Equipment

1993/94 $ ' 000 1992/93 $ ' 000

L an d a n d b u i l d i n g

At C o s t 0 4 4

L e s s : P r o v i s i o n f o r d e p r e c i a t i o n 0 2 2

T o t a l L a n d a n d b u i l d i n g 0 2 2

P l a n t a n d e q u i p m e n t

A t C o s t 3 , 6 3 4 3 , 5 9 1

L e s s : P r o v i s i o n f o r d e p r e c i a t i o n 1 , 4 1 8 7 4 8

T o t a l P l a n t a n d e q u i p m e n t 2 , 2 1 6 2 , 8 4 3

T o t a l P r o p e r t y , p l a n t a n d e q u i p m e n t

7. Intangibles

2 , 2 1 6 2 , 8 6 5

S o f t w a r e l i c e n c e s

At C o s t 2 , 1 8 4 2 , 1 5 8

L e s s : P r o v i s i o n f o r a m o r t i s a t i o n 5 9 4

1 , 5 9 0

1 6 6

1 , 9 9 2

T o t a l I n t a n g i b l e s 1 , 5 9 0 1 , 9 9 2

8. Creditors (Current)

T r a d e c r e d i t o r s 1 , 1 9 2 4 , 2 4 3

A c c r u e d e x p e n s e s 4 6 2 1 , 4 1 6

T o t a l C r e d i t o r s ( C u r r e n t ) 1 , 6 5 4 5 , 6 5 9

9. Borrowings (Current)

L o a n s - o t h e r b u s i n e s s u n i t s 1 1 , 2 0 0 1 1 , 2 0 0

T o t a l B o r r o w i n g s

T h e s e a r e i n t e r e s t b e a r i n g l o a n s a t t h e

1 1 , 2 0 0 1 1 , 2 0 0

C o m m o n w e a l t h l o n g t e r m b o n d r a t e a n d

d e m a n d .

10. Provisions (Current)

r e p a y a b l e o n

E m p l o y e e e n t i t l e m e n t s :

• L o n g s e r v i c e l e a v e 6 3 4 7 3 0

• r e c r e a t i o n l e a v e & l e a v e b o n u s 1 , 1 1 0 1 , 6 3 8

T o t a l E m p l o y e e e n t i t l e m e n t s 1 , 7 4 4 2 , 3 6 8

O t h e r p r o v i s i o n s :

- T h i r d p a r t y i n s u r a n c e 1 7 2 1 7 2

T o t a l o t h e r p r o v i s i o n s 1 7 2 17 2

T o t a l P r o v i s i o n s ( C u r r e n t ) 1 , 9 1 6 2 , 5 4 0

403

1993/94 1992/93

11. Other (Current Liabilities)

$ ' 000 $ ' 000

U n s p e n t r e d u n d a n c y m o n e y s 1 1 5 4 5

T o t a l O t h e r C u r r e n t L i a b i l i t i e s

12. Borrowings (Non-Current)

1 1 5 4 5

D e b t c a p i t a l 5 , 6 7 5 5 , 6 7 5

T o t a l B o r r o w i n g s

T h e s e a r e i n t e r e s t b e a r i n g l o a n s a t t h e

C o m m o n w e a l t h l o n g t e r m b o n d r a t e .

13. Provisions (Non-Current)

E m p l o y e e e n t i t l e m e n t s :

5 , 6 7 5 5 , 6 7 5

L o n g s e r v i c e l e a v e 1 , 4 8 1 2 , 7 7 1

T o t a l P r o v i s i o n s ( N o n - C u r r e n t )

14. Equity

Capital

1 , 4 8 1 2 , 7 7 1

O p e n i n g b a l a n c e 4 , 8 6 8 5 , 0 3 2

S t a f f t r a n s f e r a d j u s t m e n t 2 9 6 1 0 7

R e s o u r c e t r a n s f e r a d j u s t m e n t 0 ( 2 7 1 ) :

C a p i t a l i n v e s t e d a t 3 0 J u n e 5 , 1 6 4 4 , 8 6 8

C a p i t a l i s r e p a y a b l e t o t h e C o m m o n w e a l t h a t

s u c h t i m e s a n d i n s u c h a m o u n t s a s t h e M i n i s t e r

f o r F i n a n c e d e t e r m i n e s i n w r i t i n g .

S t a f f t r a n s f e r a d j u s t m e n t c o m p r i s e s a s s e t s a n d

l i a b i l i t i e s a c c o m p a n y i n g t h e t r a n s f e r o f s t a f f t o

t h e S t a f f i n g A d j u s t m e n t P r o g r a m o f t h e B u s i n e s s

S e r v i c e s T r u s t A c c o u n t .

404

1993/94 1992/93

15. Cash Flow Reconciliation

$ ' 0 0 0 $ ' 0 0 0

N e t O p e r a t i n g P r o f i t / ( L o s s ) 3 , 8 3 1 ( 9 , 0 5 2 )

S u b s i d y a n d G r a n t ( 1 4 , 0 0 0 ) ( 6 , 5 0 0 )

O p e n i n g B a l a n c e A d j u s t m e n t s 0 ( 3 7 )

L o s s o n d i s p o s a l o f a s s e t s 13 1 9 4

D e p r e c i a t i o n & a m o r t i s a t i o n 1, 159 7 87

D e c r e a s e i n R e c e i v a b l e s 1 , 6 2 0 2 1 4

D e c r e a s e i n I n v e n t o r i e s 0 3 4 5

( I n c r e a s e ) / D e c r e a s e i n O t h e r C u r r e n t A s s e t s ( 4 3 ) 1 5 2

I n c r e a s e / ( D e c r e a s e ) i n C r e d i t o r s ( 4 , 0 0 5 ) 2 , 2 6 8

I n c r e a s e / ( D e c r e a s e ) i n P r o v i s i o n s ( 1 , 9 1 4 ) 5 2 8

I n c r e a s e i n O t h e r C u r r e n t L i a b i l i t i e s 7 0 4 5

I n c r e a s e i n E q u i t y C a p i t a l 2 9 6 0

N e t c a s h p r o v i d e d / ( u s e d ) b y o p e r a t i n g a c t i v i t i e s

16. Commitments

( 1 2 , 9 7 3 ) ( 1 1 , 0 5 6 )

(a) Operating leases (non- cancel1able)

n o t l a t e r t h a n o n e y e a r 5 1 3 3 3 2

l a t e r t h a n o n e y e a r b u t n o t l a t e r t h a n 2 y r s 4 8 0 2 8 2

l a t e r t h a n 2 y e a r s b u t n o t l a t e r t h a n 5 y r s 1, 1 0 0 6 34

l a t e r t h a n 5 y e a r s 0 0

2 , 0 9 3 1 , 2 4 8

(b) Other Commitments

n o t l a t e r t h a n o n e y e a r 2 , 1 0 0 3 , 2 8 5

l a t e r t h a n o n e y e a r b u t n o t l a t e r t h a n 2 y r s 1 , 2 0 0 3 , 2 8 5

l a t e r t h a n 2 y e a r s b u t n o t l a t e r t h a n 5 y r s 3 , 6 0 0 9 , 8 5 7

l a t e r t h a n 5 y e a r s 0 0

6 , 9 0 0 1 6 , 4 2 7

T o t a l C o m m i t m e n t s 8 , 9 9 3 1 7 , 6 7 5

O t h e r c o m m i t m e n t s a r e e s t i m a t e d f o r u p t o f i v e

y e a r s . F o r m a l l e a s e d o c u m e n t s d o n o t e x i s t a n d

a d m i n i s t r a t i v e a r r a n g e m e n t s a r e n o t l i m i t e d b y

t i m e .

405

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

DAS DISTRIBUTION

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

407

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT DAS DISTRIBUTION INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of DAS Distribution, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994. The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and Acting General Manager, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and the Acting General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. 1 have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my

understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion "expressed in this report has been formed on the above basis.

Australian National Audit Office, GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 e Fax (06) 273 5355

408

Audit Opinion

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of DAS Distribution, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of DAS Distribution as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities.

^

J.C. Taylor Auditor-General

i Z

/ October 1994

409

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

DAS DISTRIBUTION

CERTIFICATE ON FINANCIAL STATEMENTS

I n o u r o p i n i o n

( a ) t h e a c c o m p a n y i n g a c c o u n t s s h o w f a i r l y t h e l o s s o f

DAS D i s t r i b u t i o n f o r t h e y e a r e n d e d 3 0 J u n e 1 9 9 4 ;

( b ) t h e a c c o m p a n y i n g a c c o u n t s s h o w f a i r l y t h e

f i n a n c i a l p o s i t i o n o f DAS D i s t r i b u t i o n a s a t 3 0

J u n e 1 9 9 4 ;

( c ) t h e a c c o m p a n y i n g a c c o u n t s s h o w f a i r l y t h e c a s h

f l o w s o f DAS D i s t r i b u t i o n d u r i n g t h e y e a r e n d e d 3 0

J u n e 1 9 9 4 ;

( d ) t h e a c c o m p a n y i n g a c c o u n t s o f DAS D i s t r i b u t i o n h a v e

b e e n m a d e o u t i n a c c o r d a n c e w i t h t h e G u i d e l i n e s

f o r F i n a n c i a l S t a t e m e n t s o f P u b l i c A u t h o r i t i e s a n d

C o m m e r c i a l A c t i v i t i e s , w h i c h r e q u i r e c o m p l i a n c e

w i t h . S t a t e m e n t s o f A c c o u n t i n g C o n c e p t s a n d

a p p l i c a b l e A c c o u n t i n g S t a n d a r d s .

D a t e d t h i s d a y o f O c t o b e r 1 9 9 4 .

J o h n M e l l o r s

S e c r e t a r y

410

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS DISTRIBUTION PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

NOTES

OPERATING REVENUE

■ · F e e s r

■ ■ O t h e r O p e r a t i n g R e v e n u e

TOTAL OPERATING REVENUE

Less : OPERATING EXPENSES

■ C o s t o f S a l e s

■ O t h e r O p e r a t i n g C o s t s

TOTAL OPERATING EXPENSES

OPERATING LOSS BEFORE ABNORMAL ITEMS 2

- ABNORMAL ITEMS 3 '

TET OPERATING LOSS

add : accumulated Losses at beginning of financial year

ACCUMULATED LOSSES AT END OF FINANCIAL YEAR

1993/94 1992/93 $ ' 000 $ 1 000

2 8 , 6 6 9

2 6 3

3 1 , 9 5 3

1 5 2

28,932 32,105

2 6 , 3 2 4

6 , 1 7 8

3 2 , 7 9 4

5 , 4 0 5

32,502 38,199

(3,570) (6,094)

1,886 3,118

(1,684) (2,976)

( 9 , 6 2 8 ) ( 6 , 6 5 2 )

(11,312) (9,628)

The accompanying Notes form an integral part of these financial statements

411

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS DISTRIBUTION BALANCE SHEET AS AT 30 JUNE 1994

NOTES

$ 1 0 0 0 $ ■ o o o

CURRENT ASSETS

• C a s h 1 , 2 3 1 1 , 8 7 4

• R e c e i v a b l e s 4 3 , 5 8 0 5 , 8 8 :

• O t h e r 5 1 2 5 154

TOTAL CURRENT ASSETS 4 , 9 3 6 7 , 9 1 C

NON-CURRENT ASSETS

• P r o p e r t y , P l a n t a n d E q u i p m e n t 6 1 , 0 3 9 63;

TOTAL NON-CURRENT ASSETS 1 , 0 3 9 6 3 :

TOTAL ASSETS 5 , 9 7 5 8 , 5 4 :

CURRENT LIABILITIES

• C r e d i t o r s 7 2 , 4 2 6 2 , 6 0 7

• B o r r o w i n g s 8 1 , 9 5 0 2 , 95C

• P r o v i s i o n s 9 1 , 4 6 9 1 , 907

• O t h e r 1 0 1 , 2 0 7 413

TOTAL CURRENT LIABILITIES 7 , 0 5 2

00

NON-CURRENT LIABILITIES

• B o r r o w i n g s 1 1 3 , 8 0 1 3 , 8 0 1

• P r o v i s i o n s 12 1 , 7 7 2 2 , 0 2 6

TOTAL NON-CURRENT LIABILITIES 5 , 5 7 3 5 , 8 2 7

TOTAL LIABILITIES 1 2 , 6 2 5 1 3 , 7 0 4

NET ASSETS ( 6 , 6 5 0 ) ( 5 , 1 5 9

EQUITY

• C a p i t a l 1 3 4 , 6 6 2 4 , 4 6 9

• A c c u m u l a t e d L o s s e s ( 1 1 , 3 1 2 ) ( 9 , 6 2 8

TOTAL EQUITY ( 6 , 6 5 0 ) < 5 , 1 5 ? ,

The accompanying Notes form an integral part of these financial statements

412

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS DISTRIBUTION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 1994

CASH FLOW FROM OPERATING ACTIVITIES

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

I n f l o w s • R e c e i p t s f r o m C u s t o m e r s | | | | 2 9 , 5 4 0 3 2 , 9 6 2

• I n t e r e s t R e c e i v e d lllllll 40 152

• O t h e r o p e r a t i n g r e c e i p t s V : 211 1 ,6 0 4

O u tflo w s • P a y m e n ts t o S u p p l i e r s 1 9 , 8 7 4 2 3 , 4 3 1

• Paym ent t o s t a f f i d 1 0 , 7 9 1 1 4 , 1 7 1

• I n t e r e s t P a i d 1111111 435 573

• O t h e r o p e r a t i n g e x p e n s e s 1 , 2 8 8 1 , 5 1 9

Net cash used by operating activities 14 ( 2 , 5 9 7 ) ( 4 , 9 7 6 )

CASH FLOW FROM INVESTING ACTIVITIES

Inflows • P r o c e e d s f r o m s a l e o f a s s e t s , - 33 0

Outflows • P a ym ent f o r p r o p e r t y , p l a n t & e q u i p m e n t 79 27

Net cash used by investing activities _______(46) ______(27)

CASH FLOW FROM FINANCING ACTIVITIES

Inflows • P r o c e e d s f r o m B o r r o w i n g s §||§l|||p 1 , 0 0 0

• G r a n t s r e c e i v e d f r o m BSTA 1 , 0 0 0 2 , 7 0 0

• P a ym e nt f o r e q u i t y c a p i t a l t r a n s f e r ■ 2 , 0 0 0

• O t h e r f i n a n c i a l r e c e i p t s §|lp|gg 280

Outflows • BSTA l o a n r e p a y m e n t ' 1 , 0 0 0

Net cash provided by financing activities 2 , 0 0 0 3 , 9 8 0

NET DECREASE IN CASH HELD (6 4 3 ) ( 1 , 0 2 3 )

CASH A T B E G I N N I N G O F R E P O R T IN G P E R IO D 1 , 8 7 4 2 , 8 9 7

CASH AT END OF REPORTING PERIOD 1 , 2 3 1 1 , 8 7 4

^>e accompanying Notes form an integral part of these financial statements

413

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS DISTRIBUTION NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1 . Summary of Sirrnif inant. Account.! nrr Policies

Reporting Entity

DAS D i s t r i b u t i o n i s a s e g m e n t o f t h e B u s i n e s s S e r v i c e s T r u s t

A c c o u n t (BSTA) a d m i n i s t e r e d b y t h e D e p a r t m e n t o f A d m i n i s t r a t i v e

S e r v i c e s .

Basis of Accounting

DAS D i s t r i b u t i o n , a s e g m e n t o f t h e BSTA, i s r e q u i r e d t o p r e p a r e

f i n a n c i a l s t a t e m e n t s u n d e r a d e t e r m i n a t i o n o f t h e M i n i s t e r f o r

F i n a n c e p u r s u a n t t o s e c t i o n 41D o f t h e A u d i t A c t 1 9 0 1 . The

f i n a n c i a l s t a t e m e n t s h a v e b e e n made o u t i n a c c o r d a n c e w i t h t h e

G u i d e l i n e s f o r F i n a n c i a l S t a t e m e n t s o f P u b l i c A u t h o r i t i e s a n d

C o m m e r c i a l A c t i v i t i e s i s s u e d b y t h e M i n i s t e r f o r F i n a n c e i n

J a n u a r y 1 9 9 4 . The f i n a n c i a l s t a t e m e n t s c o n f o r m w i t h S t a t e m e n t s

o f A c c o u n t i n g S t a n d a r d s a n d C o n c e p t s i s s u e d b y t h e I n s t i t u t e o f

C h a r t e r e d A c c o u n t a n t s i n A u s t r a l i a a n d t h e A u s t r a l i a n S o c i e t y o f

C e r t i f i e d P r a c t i s i n g A c c o u n t a n t s .

T h e a c c o u n t s h a v e b e e n p r e p a r e d i n a c c o r d a n c e w i t h t h e

h i s t o r i c a l c o s t c o n v e n t i o n , u n l e s s o t h e r w i s e s t a t e d .

The a c c o u n t s h a v e b e e n p r e p a r e d on a g o i n g c o n c e r n b a s i s a s t h e

a g g r e g a t e r e s o u r c e s o f t h e BSTA w i l l b e u t i l i s e d t o t h e e x t e n t

n e c e s s a r y t o m e e t t h e o b l i g a t i o n s o f e a c h b u s i n e s s u n i t o f t h e

BSTA.

Property Plant and Equipment

Va Ί l i a t . i o n

P r o p e r t y , p l a n t a n d e q u i p m e n t a r e r e c o r d e d a t c o s t . C o s t i n

r e l a t i o n t o t h e r e s p e c t i v e c l a s s o f a s s e t r e p r e s e n t s t h e c a s h

a m o u n t p a i d o r t h e f a i r v a l u e o f t h e a s s e t s t r a n s f e r r e d o r

a c q u i r e d . A s s e t s c o s t i n g l e s s t h a n $ 2 , 0 0 0 a r e e x p e n s e d a t t h e

t i m e o f p u r c h a s e .

P r o p e r t y , p l a n t a n d e q u i p m e n t a s s e t s a r e v a l u e d a t l e a s t e v e r y

f i v e y e a r s .

T h e c a r r y i n g v a l u e o f n o n - c u r r e n t a s s e t s d o e s n o t e x c e e d t h e i r

r e c o v e r a b l e a m o u n t .

D e p r e c i a t i o n

D e p r e c i a t i o n i s p r o v i d e d o n a s t r a i g h t l i n e b a s i s o n a l l

P r o p e r t y , p l a n t a n d e q u i p m e n t a t r a t e s c a l c u l a t e d t o a l l o c a t e

t h e c o s t o f t h o s e a s s e t s o v e r t h e i r e s t i m a t e d u s e f u l l i v e s .

414

Employee Entitlements

P r o v i s i o n i s m ade f o r e m p l o y e e s ' l o n g s e r v i c e l e a v e a n d

r e c r e a t i o n a l l e a v e e n t i t l e m e n t s .

T.oncr S e r v i r e L e a v e

L ong s e r v i c e l e a v e i s p r o v i d e d f o r t h o s e e m p l o y e e s w i t h f i v e

y e a r s o r m o r e s e r v i c e . The p r o v i s i o n i s d i s s e c t e d i n t o c u r r e n t

a n d n o n - c u r r e n t l i a b i l i t y c o m p o n e n t s b a s e d on e x p e c t e d u s a g e i n

n e x t y e a r .

R e c r e a t i o n L e a v e

R e c r e a t i o n l e a v e i s p r o v i d e d f o r t h o s e e m p l o y e e s who h a v e a n

e n t i t l e m e n t a t b a l a n c e d a t e . The p r o v i s i o n i n c l u d e s a l e a v e

l o a d i n g c o m p o n e n t a n d i s c l a s s i f i e d a s a c u r r e n t l i a b i l i t y .

Leases

O p e r a t i n g l e a s e

L e a s e s o f n o n - c u r r e n t a s s e t s , w h e r e s u b s t a n t i a l l y a l l t h e r i s k s

a n d b e n e f i t s i n c i d e n t a l t o o w n e r s h i p e f f e c t i v e l y r e m a i n w i t h t h e

l e s s o r a r e c l a s s i f i e d a s o p e r a t i n g l e a s e s . O p e r a t i n g l e a s e

p a y m e n t s a r e c h a r g e d a s e x p e n s e s i n t h e d e t e r m i n a t i o n o f

o p e r a t i n g p r o f i t .

Unearned Income

D e p o s i t s a n d p r e p a y m e n t s r e c e i v e d b y t h e e n t i t y f o r s e r v i c e s y e t

t o b e r e n d e r e d a r e r e c o r d e d i n t h e b a l a n c e s h e e t a t t h e t i m e o f

t h e i r r e c e i p t , a s a l i a b i l i t y a n d a r e t r a n s f e r r e d t o p r o f i t a n d

l o s s s t a t e m e n t a t t h e t i m e t h e s e r v i c e i s p r o v i d e d .

Segment Reporting

DAS D i s t r i b u t i o n o p e r a t e s p r i m a r i l y i n t h e w a r e h o u s i n g a n d

d i s t r i b u t i o n i n d u s t r y . DAS D i s t r i b u t i o n ' s a c t i v i t i e s a r e

c o n d u c t e d w i t h i n A u s t r a l i a .

Taxation

DAS D i s t r i b u t i o n i s n o t s u b j e c t t o in c o m e t a x a n d m o s t i n d i r e c t

t a x e s a n d c h a r g e s , b e i n g a C om m onw ealth D e p a r t m e n t a l a c t i v i t y .

F r i n g e b e n e f i t s t a x a n d a m o u n ts i n l i e u o f i n d i r e c t t a x e s on any

w o r k f o r n o n - C o m m o n w e a lth c l i e n t s a r e e x p e n s e d a n d i n c l u d e d i n

t h e d e t e r m i n a t i o n o f o p e r a t i n g p r o f i t .

Capital

The 1990 Memorandum o f U n d e r s t a n d i n g b e t w e e n t h e D e p a r t m e n t s o f

A d m i n i s t r a t i v e S e r v i c e s a n d F i n a n c e , w h i c h d e s c r i b e s t h e

f i n a n c i a l f r a m e w o r k w i t h i n w h i c h t h e c o m m e r c i a l e n t i t i e s o f t h e

D e p a r t m e n t o f A d m i n i s t r a t i v e S e r v i c e s a r e t o o p e r a t e , s p e c i f i e s

t h a t c a p i t a l i n v e s t e d b y t h e C om m onw ealth w i l l b e d i v i d e d i n t o

i n t e r e s t b e a r i n g c a p i t a l a n d e q u i t y c a p i t a l i n p r o p o r t i o n s

a g r e e d b y M i n i s t e r s . F rom 1 J u l y 1991 i n t e r e s t b e a r i n g c a p i t a l

h a s b e e n c l a s s i f i e d a s l o n g t e r m b o r r o w i n g s a n d i s show n i n t h e

f i n a n c i a l s t a t e m e n t s a t t h e a g r e e d a m o u n t .

415

2 . Operating Loss

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

T he o p e r a t i n g l o s s i s a r r i v e d a t a f t e r

c r e d i t i n g a n d c h a r g i n g t h e f o l l o w i n g

s p e c i f i c i t e m s :

A f t e r c r e d i t i n g a s r e v e n u e :

I n t e r e s t 40 152

P r o f i t on d i s p o s a l o f n o n - c u r r e n t

a s s e t s 13 0

c h a r g i n g a s e x p e n s e :

S a l a r i e s & w a g e s 1 1 , 2 3 4 1 4 , 2 3 0

I n t e r e s t 435 573

O p e r a t i n g L e a s e P a y m e n t s 6 , 2 6 1 1 , 5 9 3

L o s s on d i s p o s a l o f n o n - c u r r e n t

a s s e t s 49 13

P r o v i s i o n s

- d e p r e c i a t i o n & a m o r t i s a t i o n 207 201

- d o u b t f u l d e b t s 101 341

- e m p l o y e e b e n e f i t s 276 372

- i n s u r a n c e 47 0

- c o m p e n s a t i o n c l a i m s 307 106

3. Abnormal Items

I n c l u d e d i n t h e o p e r a t i n g l o s s a r e t h e

f o l l o w i n g a b n o r m a l i t e m s :

I t e m s c r e d i t e d :

- A s s e t s r e c e i v e d f r e e o f c h a r g e 3 , 5 5 2 0

- R e d u n d a n c y f u n d i n g 1 , 1 1 4 1 , 0 7 8

- G r a n t f r o m BSTA 1 . 0 0 0 2 . 7 0 0

5 . 6 6 6 3 . 7 7 8

I t e m s c h a r g e d :

- W r i t e down o f a s s e t s t o

r e c o v e r a b l e a m o u n t 2 , 9 4 4 0

- R e d u n d a n c y p a y m e n t s 836 660

3 , 7 8 0 660

Net Abnormal Items 1,886 3.118

4. Rensivables fCurrentl

T r a d e D e b t o r s 3 , 5 8 7 3 , 9 8 3

L e s s : P r o v i s i o n f o r d o u b t f u l d e b t s (488) (452)

3 , 0 9 9 3 , 5 3 1

O t h e r 481 2 .3 5 1

Total Receivables (Current) 3.580 5.882

5. Other (Current Assets)

P r e p a y m e n t s 125 154

416

6. P r n n e r t v . P l a n t a n d F.mi i n m e n t

1993/94 $'000

1992/93 $'000

P l a n t a n d e q u i p m e n t

A t c o s t 0 2, 175

L e s s : P r o v i s i o n f o r d e p r e c i a t i o n

P l a n t a n d e q u i p m e n t

0 ( 1 , 5 4 0 )

A t R e c o v e r a b l e a m o u n t 1 . 039 £

Total plant and equipment 1,039 635

7. Creditors

T r a d e c r e d i t o r s 583 753

A c c r u e d e x p e n s e s 1 . 843 1 . 854

T o t a l C r e d i t o r s 2 . 4 2 6 2 . 6 0 7

8. Borrowinos (Current)

L o a n s - BSTA 1 . 950 2 . 9 5 0

T h e s e a r e i n t e r e s t b e a r i n g l o a n s a t

C o m m o n w e a lth L ong T erm B ond R a t e .

9 . Provisions (Current)

t h e

E m p lo y e e e n t i t l e m e n t s :

- L o n g s e r v i c e l e a v e 65 206

- R e c r e a t i o n l e a v e & l e a v e b o n u s 1 . 083 1 . 3 0 8

T o t a l E m p lo y e e E n t i t l e m e n t 1, 148 1 , 5 1 4

O t h e r P r o v i s i o n s :

- V e h i c l e i n s u r a n c e 10 0

- T h i r d p a r t y i n s u r a n c e i l l 393

321 393

Total Provisions (Current) 1.469 1.907

10 Other (Current Liabilities)

U n e a r n e d In c o m e 813 305

U n s p e n t R e d u n d a n c y M oneys 394 108

Total Other Current Liabilities 1.207 4 1 3

11. Borrowinos (Non Current)

D e b t C a p i t a l 3 .8 0 1 3 .8 0 1

T h e s e a r e i n t e r e s t b e a r i n g l o a n s a t t h e

C o m m o n w e a lth l o n g t e r m b o n d r a t e .

417

1993/94 1992/93 $ ' 0 0 0 $ ' 0 0 0

12. Provisions (Non Current!

E m p lo y e e e n t i t l e m e n t s

- L ong s e r v i c e l e a v e 1 . 7 7 2 2 . 0 2 6

13. Equity

C a p i t a l

O p e n i n g B a l a n c e

N e t e q u i t y c h a n g e s ( f o r m e r h e a d

4 , 469 2 , 5 1 1

o f f i c e BDG) - 2 0 8

R e a l l o c a t i o n o f C o m m o n w e a lth c a p i t a l 2 , 0 0 0

S t a f f t r a n s f e r a d j u s t m e n t 1 2 2 166

C l o s i n g B a l a n c e 4 . 6 6 2 4 . 4 6 9

C a p i t a l i s r e p a y a b l e t o t h e C om m onw e a lth a t s u c h t i m e s a n d i n

s u c h a m o u n t s a s t h e M i n i s t e r f o r F i n a n c e d e t e r m i n e s i n

w r i t i n g .

S t a f f t r a n s f e r a d j u s t m e n t c o m p r i s e s a s s e t s a n d l i a b i l i t i e s

a c c o m p a n y i n g t h e t r a n s f e r o f s t a f f t o t h e S t a f f i n g A d j u s t m e n t

P r o g r a m o f t h e B u s i n e s s S e r v i c e s T r u s t A c c o u n t .

14. Cash Flow Reconciliation

A c t i v i t i e s t o O p e r a t i n g L o s s

O p e r a t i n g L o s s - 1 , 6 8 4 - 2 , 9 7 6

G r a n t s f r o m BSTA - 1 , 0 0 0 - 2 , 7 0 0

G a in on S a l e o f A s s e t s - 1 3 0

L o s s on D i s p o s a l o f A s s e t s 49 13

D e p r e c i a t i o n 207 201

Bad D e b t E x p e n s e 101 341

D e c r e a s e i n D e b t o r s . 2 , 2 7 4 670

D e c r / I n c r e a s e i n O t h e r C u r r e n t A s s e t s - 4 4 - 1 1 3

D e c r e a s e / I n c r e a s e i n C r e d i t o r s - 2 1 6 182

D e c r e a s e i n P r o v i s i o n s

I n c r e a s e / D e c r e a s e i n O t h e r

- 6 9 2 - 4 4 0

C u r r e n t L i a b i l i t i e s 830 - 1 5 4

E q u i t y C a p i t a l T r a n s f e r - 2 , 0 0 0 0

O t h e r - 4 0 9 2

N e t C a s h U s e d b y O p e r a t i n g A c t i v i t i e s - 2 . 5 9 7 - 4 . 9 7 6

15, Commitmpnt-.s

Operating leases (non-cancellable)

n o t l a t e r t h a n o n e y e a r 2, 068 1 , 5 9 3

l a t e r t h a n o n e y e a r b u t n o t l a t e r

t h a n 2 y e a r s 2 , 068 1 , 7 7 2

l a t e r t h a n 2 y e a r s b u t n o t l a t e r

t h a n 5 y e a r s 4, 653 3, 143

l a t e r t h a n 5 y e a r s 1 3 . 6 4 0 1 3 . 4 2 0

2 2 . 4 2 9 1 9 . 9 2 8

418

1993/94 $'000

1992/93 $'000

Other Commitments

n o t l a t e r t h a n o n e y e a r

l a t e r t h a n o n e y e a r b u t n o t l a t e r

3 , 2 5 2 5 , 759

t h a n 2 y e a r s

l a t e r t h a n 2 y e a r s b u t n o t l a t e r

1 , 7 9 2 5 , 7 5 9

t h a n 5 y e a r s 3 ,5 8 4 1 1 , 1 4 3

l a t e r t h a n 5 y e a r s 1 . 7 9 ?

1 0 .4 2 0

5 . 5 7 1

2 8 . 2 3 2

T o t a l

16. Superannuation Commitmppts

3 2 . 8 4 9 4 8 . 1 6 0

D u r i n g t h e f i n a n c i a l y e a r , e m p l o y e e s c o n t r i b u t e d t o t h e

C o m m o n w e a l t h S u p e r a n n u a t i o n S c h e m e a n d t h e P u b l i c S e c t o r

S u p e r a n n u a t i o n S c h e m e . An e m p l o y e r s u p e r a n n u a t i o n c o n t r i b u t i o n

i s p a i d t o t h e R e t i r e m e n t B e n e f i t s O f f i c e t o m e e t t h e a s s e s s e d

e m p l o y e r c o s t s u n d e r t h e r e s p e c t i v e s c h e m e s .

T he a m o u n t o f e m p l o y e r c o n t r i b u t i o n s p a i d a n d

p a y a b l e i n r e s p e c t o f t h e f i n a n c i a l y e a r w as 8 92 1 . 0 5 4

17 . Remuneration of Eypmitives

T he n u m b e r o f e x e c u t i v e o f f i c e r s who r e c e i v e d o r w e r e d u e t o

r e c e i v e i n c o m e o f $ 1 0 0 , 0 0 0 o r m ore w as n i l .

18. Contingent Liabilities

E s t i m a t e d t o t a l a m o u n t o f c o n t i n g e n t l i a b i l i t i e s a t t h e b a l a n c e

d a t e C o m p e n s a t i o n / T h i r d P a r t y c l a i m s £ 2 300

19. Auditors' Remuneralinn

The a g g r e g a t e a m o u n t r e c e i v e d o r d u e a n d

r e c e i v a b l e b y t h e a u d i t o r s f o r

a u d i t i n g t h e a c c o u n t s w as JH 31

20. Economic Dependency

N o r m a l b u s i n e s s a c t i v i t i e s a r e d e p e n d e n t u p o n a s i g n i f i c a n t

v o l u m e o f b u s i n e s s w i t h C om m onw ealth G o v e r n m e n t A g e n c i e s .

21. Events Subsequent to Balance Date

S u b s e q u e n t t o t h e b a l a n c e d a t e on 1 J u l y 1994, a d d i t i o n a l

C o m m o n w e a l t h e q u i t y c a p i t a l o f $ 1 0 . 4 5 m i l l i o n w a s

a l l o c a t e d t o DAS D i s t r i b u t i o n f r o m o t h e r BSTA b u s i n e s s e s .

419

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

DASFLEET

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT DASFLEET INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of DASFLEET, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994. The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and General Manager, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and the General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures

have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit Office. GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 · Fax (06) 273 5355

422

Audit Opinion

In accordance with sub-section 41D(2A) of the Audit Act 1901, 1 now report that the statements are in agreement with the accounts and records of DASFLEET, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of DASFLEET as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities.

J.C. Taylor Auditor-General

U October 1994

423

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

DASFLEET

CERTIFICATE ON FINANCIAL STATEMENTS

In our opinion

a) t h e a c c o m p a n y in g a c c o u n t s show f a i r l y t h e p r o f i t o f

DASFLEET f o r t h e y e a r e n d e d 30 J u n e 1994

b) t h e a c c o m p a n y in g a c c o u n t s show f a i r l y t h e f i n a n c i a l

p o s i t i o n o f DASFLEET a s a t 30 J u n e 1994

c) t h e a c c o m p a n y in g a c c o u n t s show f a i r l y t h e c a s h f l o w s

o f DASFLEET d u r i n g t h e y e a r e n d e d 30 J u n e 1994

d) t h e a c c o m p a n y in g a c c o u n t s o f DASFLEET h a v e b e e n made

o u t i n a c c o r d a n c e w i t h t h e G u i d e l i n e s f o r F i n a n c i a l

S t a t e m e n t s o f P u b l i c A u t h o r i t i e s a n d C o m m e rc ia l

A c t i v i t i e s , w h ic h r e q u i r e c o m p l i a n c e w i t h S t a t e m e n t s

o f A c c o u n t i n g C o n c e p t s a n d a p p l i c a b l e A c c o u n t i n g

S t a n d a r d s .

Dated this d a y o f O c t o b e r 1994

John Mellors Secretary General Manager

424

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DASFLEET PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

OPERATING REVENUE

Note 1993/94 $'000 1992/93 $ ' 000

Fees Other Operating Revenue

120,780 23,163

124,552 5,639

TOTAL OPERATING REVENUE 143,943 130,191

OPERATING EXPENSES

Cost of Sales Other Operating Costs

52,625 35,599

51,747 34,445

TOTAL OPERATING EXPENSES 88,224 86,192

OPERATING PROFIT BEFORE ABNORMAL ITEMS

2 55,719 43,999

l ABNORMAL ITEMS 3 1,190 0

NET OPERATING PROFIT 56,909 43,999

Accumulated Profits at beginning of financial year 22,103 7,358

Transfer from Reserve 0 5,000

TOTAL AVAILABLE FOR APPROPRIATION 79,012 56,357

Transfer to Reserves Dividend Paid

0

18,000

22,254 12,000

ACCUMULATED PROFITS AT END OF FINANCIAL YEAR 61,012 22,103

The accompanying Notes form an integral part of these financial statements

425

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DASFLEET BALANCE SHEET AS AT 30 JUNE 1994

CURRENT ASSETS Cash Receivables Inventories Other

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS

Property, Plant and Equipment Intangibles

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

CURRENT LIABILITIES Creditors Provisions Other

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Borrowings Provisions

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

NET ASSETS

EQUITY Capital Reserves Accumulated Profits

TOTAL EQUITY

Note 1993/94 1992/93

$'000 $'000

8 , 3 4 8 1 3 , 9 6 9

4 1 8 , 8 9 5 2 1 , 6 8 2

5 4 5 5 6 72

6 2 , 3 4 4 6 , 2 0 8

30,042 42,531

7 3 5 1 , 3 1 8 3 0 3 , 1 7 1

8 16 0

351,334 303,171

381,376 345,702

9 2 3 , 2 9 9 2 6 , 7 3 4

10 2 , 0 3 1 1 , 8 1 7

11 4 5 9 6 6 4

25,789 29,215

12 1 1 7 , 0 2 1 1 1 7 , 0 2 1

13 2 , 4 4 7 2 , 2 7 8

119,468 119,299

145,257 148,514

236,119 197,188

6 0 , 4 6 8 6 0 , 4 4 6

1 1 4 , 6 3 9 1 1 4 , 6 3 9

6 1 , 0 1 2 2 2 , 1 0 3

236,119 197,188

The accompanying Notes form an integral part of these financial statements

426

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DASFLEET STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 1994

CASH FLOWS FROM OPERATING ACTIVITIES

Note 1993/94 $■000 1992/93 $'000

Inflows Receipts from customers Interest received Parliamentary appropriations Other operating receipts

133,766 1,256 226 0

120,862 2,850 445 890

Outflows Payment to suppliers Payment to staff Interest paid

64,169 14,095 8,624

41,700 14,163 11,778

Net cash provided by operating activities 15 48,360 57,406

CASH FLOWS FROM INVESTING ACTIVITIES

Inflows Proceeds from sale of equipment 167,888 92,227

Outflows Payment for property, plant & equipment 200,869 140,362

Net cash used by investing activities (32,981) (48,135)

CASH FLOWS FROM FINANCING ACTIVITIES

Inflows Borrowings 0 507

Outflows Equity Capital Transfer Borrowings Dividend paid

3,000 0

18,000

0

19,200 12,000

Net cash used by financing activities (21,000) (30,693)

Net decrease in cash held (5,621) (21,422)

Cash at beginning of reporting period 13,969 35,391

CASH AT END OF REPORTING PERIOD 8,348 13,969

The accompanying Notes form an integral part of these financial statements

427

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT D A S F L E E T NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 3 0 JUNE 1994

1. Summary of Significant Accounting Policies

Reporting entity

D A S F L E E T i s a s e g m e n t o f t h e B u s i n e s s S e r v i c e s T r u s t A c c o u n t ( B S T A ) a d m i n i s t e r e d b y t h e D e p a r t m e n t o f A d m i n i s t r a t i v e

S e r v i c e s .

Basis of Accounting

DASFLEET, a segment of the BSTA, is required to prepare financial statements under a determination of the Minister for Finance pursuant to section 41D of the A u d i t A c t 1 9 0 1 . The

financial statements have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities issued by the Minister for Finance in January 1994. The financial statements conform with Statements of Accounting Standards and Concepts issued by the Institute of Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants.

The accounts have been prepared in accordance with the historical cost convention, unless otherwise stated.

Property Plant and Equipment

V a l u a t i o n

Property, plant and equipment are recorded at cost. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2,000 are expensed at the time of purchase.

Property, plant and equipment are valued at least every five years. Land and buildings were revalued at market value as at 31 May 1994 by an independent valuer.

The carrying value of non-current assets does not exceed their recoverable amount.

D e p r e c i a t i o n

D e p r e c i a t i o n i s p r o v i d e d o n a s t r a i g h t l i n e b a s i s o n a l l

p r o p e r t y , p l a n t a n d e q u i p m e n t a t r a t e s c a l c u l a t e d t o a l l o c a t e

t h e c o s t o f t h o s e a s s e t s o v e r t h e i r e s t i m a t e d u s e f u l l i v e s .

428

Leasehold Improvements

L e a s e h o l d i m p r o v e m e n t s a r e a m o r t i s e d o v e r t h e t e r m o f t h e l e a s e .

I n t a n g i b l e s

I n t a n g i b l e a s s e t s a r e b r o u g h t t o a c c o u n t a t c o s t a n d a m o r t i s e d o v e r t h e p e r i o d e x p e c t e d b e n e f i t s w i l l b e r e c e i v e d .

R e s e a r c h a n d d e v e l o p m e n t c o s t s i n c u r r e d o n A D P s o f t w a r e

d e v e l o p m e n t a r e d e f e r r e d a n d w i l l b e a m o r t i s e d o v e r t h e p e r i o d e x p e c t e d b e n e f i t s w i l l b e r e c e i v e d .

I n v e n t o r i e s

M a n u f a c t u r i n g a n d m a i n t e n a n c e

I n v e n t o r i e s a r e v a l u e d a t t h e l o w e r o f c o s t a n d n e t r e a l i s a b l e

v a l u e .

C o s t s i n c u r r e d i n b r i n g i n g e a c h i t e m t o i t s p r e s e n t l o c a t i o n a n d c o n d i t i o n a r e a c c o u n t e d f o r a s f o l l o w s :

R a w m a t e r i a l s - p u r c h a s e c o s t o n a n a v e r a g e c o s t ( w e i g h t e d ) b a s i s ; a n d

F i n i s h e d g o o d s a n d w o r k i n p r o g r e s s - c o s t o f d i r e c t

m a t e r i a l a n d l a b o u r p l u s a t t r i b u t a b l e c o s t s t h a t a r e

c a p a b l e o f b e i n g a l l o c a t e d o n a r e a s o n a b l e b a s i s .

Employee Entitlements

P r o v i s i o n i s m a d e f o r e m p l o y e e s ' l o n g s e r v i c e l e a v e a n d

r e c r e a t i o n a l l e a v e e n t i t l e m e n t s .

L o n g S e r v i c e L e a v e

L o n g s e r v i c e l e a v e i s p r o v i d e d f o r t h o s e e m p l o y e e s w i t h f i v e

y e a r s o r m o r e s e r v i c e . T h e p r o v i s i o n i s d i s s e c t e d i n t o c u r r e n t

a n d n o n - c u r r e n t l i a b i l i t y c o m p o n e n t s b a s e d o n e x p e c t e d u s a g e i n n e x t y e a r .

R e c r e a t i o n L e a v e

R e c r e a t i o n l e a v e i s p r o v i d e d f o r t h o s e e m p l o y e e s w h o h a v e a n

e n t i t l e m e n t a t b a l a n c e d a t e . T h e p r o v i s i o n i n c l u d e s a l e a v e

l o a d i n g c o m p o n e n t a n d i s c l a s s i f i e d a s a c u r r e n t l i a b i l i t y .

L e a s e s

O p e r a t i n g l e a s e

L e a s e s o f n o n - c u r r e n t a s s e t s , w h e r e s u b s t a n t i a l l y a l l t h e r i s k s a n d b e n e f i t s i n c i d e n t a l t o o w n e r s h i p e f f e c t i v e l y r e m a i n w i t h t h e l e s s o r a r e c l a s s i f i e d a s o p e r a t i n g l e a s e s . O p e r a t i n g l e a s e

p a y m e n t s a r e c h a r g e d a s e x p e n s e s i n t h e d e t e r m i n a t i o n o f

o p e r a t i n g p r o f i t .

429

Unearned Income

D e p o s i t s a n d p r e p a y m e n t s r e c e i v e d f o r s e r v i c e s y e t t o b e

r e n d e r e d a r e r e c o r d e d i n t h e b a l a n c e s h e e t a t t h e t i m e o f t h e i r

r e c e i p t a s a l i a b i l i t y a n d a r e t r a n s f e r r e d t o p r o f i t a n d l o s s

s t a t e m e n t a t t h e t i m e t h e s e r v i c e i s p r o v i d e d .

Segment Reporting

D A S F L E E T o p e r a t e s p r i m a r i l y i n t h e v e h i c l e l e a s i n g i n d u s t r y .

D A S F L E E T a c t i v i t i e s a r e p r i m a r i l y c o n d u c t e d w i t h i n A u s t r a l i a .

T a x a t i o n

D A S F L E E T i s n o t s u b j e c t t o i n c o m e t a x a n d m o s t i n d i r e c t t a x e s a n d c h a r g e s , b e i n g a C o m m o n w e a l t h D e p a r t m e n t a l a c t i v i t y . F r i n g e B e n e f i t s t a x a n d a m o u n t s i n l i e u o f i n d i r e c t t a x e s o n w o r k f o r

n o n - C o m m o n w e a l t h c l i e n t s a r e e x p e n s e d a n d i n c l u d e d i n t h e d e t e r m i n a t i o n o f o p e r a t i n g p r o f i t .

A n a m o u n t e q u i v a l e n t o f C u s t o m s D u t y o n i m p o r t s i s i n c l u d e d i n t h e c o s t o f g o o d s . W h e r e t h e g o o d s a r e a s s e t s , t h e a m o u n t i s

i n c l u d e d i n t h e c a p i t a l v a l u e o f t h e a s s e t s a n d i s a m o r t i s e d

o v e r t h e e s t i m a t e d u s e f u l l i v e s o f t h e a s s e t s .

C a p i t a l

T h e 1 9 9 0 M e m o r a n d u m o f U n d e r s t a n d i n g b e t w e e n t h e D e p a r t m e n t s o f A d m i n i s t r a t i v e S e r v i c e s a n d F i n a n c e , w h i c h d e s c r i b e s t h e

f i n a n c i a l f r a m e w o r k w i t h i n w h i c h t h e c o m m e r c i a l e n t i t i e s o f t h e D e p a r t m e n t o f A d m i n i s t r a t i v e S e r v i c e s a r e t o o p e r a t e , s p e c i f i e s t h a t c a p i t a l i n v e s t e d b y t h e C o m m o n w e a l t h w i l l b e d i v i d e d i n t o i n t e r e s t b e a r i n g c a p i t a l a n d e q u i t y c a p i t a l i n p r o p o r t i o n s

a g r e e d b y M i n i s t e r s . F r o m 1 J u l y 1 9 9 1 i n t e r e s t b e a r i n g c a p i t a l h a s b e e n c l a s s i f i e d a s l o n g t e r m b o r r o w i n g s a n d i s s h o w n i n t h e f i n a n c i a l s t a t e m e n t s a t t h e a g r e e d a m o u n t .

T h e M i n i s t e r s f o r F i n a n c e a n d A d m i n i s t r a t i v e S e r v i c e s h a v e

a g r e e d a r e v i s e d c a p i t a l s t r u c t u r e t o a p p l y t o D A S F L E E T f r o m 1 J u l y 1 9 9 4 . T h e r e v i s e d c a p i t a l s t r u c t u r e e n t a i l s r e c l a s s i f y i n g

e x i s t i n g e q u i t y c a p i t a l t o i n t e r e s t b e a r i n g l o a n c a p i t a l .

I n t e r e s t w i l l b e c h a r g e d o n i n t e r e s t b e a r i n g c a p i t a l a t t h e

C o m m o n w e a l t h 2 y e a r b o n d r a t e . C a p i t a l w i l l b e r e v i s e d b y

a d j u s t i n g c a p i t a l a c c o u n t b a l a n c e s a n d w i t h o u t t r a n s f e r o f c a s h .

D i v i d e n d

T h e 1 9 9 0 M e m o r a n d u m o f U n d e r s t a n d i n g s p e c i f i e s t h a t a n y d i v i d e n d p a y m e n t s a r e b a s e d o n p r o f i t a b i l i t y w i t h r e c o g n i t i o n o f t h e

r e q u i r e m e n t t o r e t a i n f u n d s f o r b u s i n e s s p u r p o s e s a n d t h e

o v e r a l l b u d g e t a r y p o s i t i o n .

A p r o v i s i o n f o r d i v i d e n d h a s n o t b e e n i n c l u d e d i n t h e a c c o u n t s a s t h e M i n i s t e r s f o r F i n a n c e a n d A d m i n i s t r a t i v e S e r v i c e s a r e y e t t o c o n s i d e r t h e m a t t e r .

430

1993/94 1992/93

$'000 $'000

9. Creditors (Current)

' T r a d e c r e d i t o r s 2 1 , 1 9 2 2 3 , 9 2 9

A c c r u e d e x p e n s e s 2 , 1 0 7 2 , 8 0 5

T o t a l C r e d i t o r s ( C u r r e n t ) 2 3 , 2 9 9 2 6 , 7 3 4

10. Provisions (Current)

E m p l o y e e e n t i t l e m e n t s :

- L o n g s e r v i c e l e a v e 3 2 0 2 8 9

- R e c r e a t i o n l e a v e & l e a v e b o n u s 1 , 7 1 1 1 , 4 7 0

T o t a l E m p l o y e e e n t i t l e m e n t s 2 , 0 3 1 1 , 7 5 9

O t h e r p r o v i s i o n s :

- I n s u r a n c e 0 2 8

- T h i r d p a r t y c o m p e n s a t i o n c l a i m s 0 3 0

T o t a l o t h e r p r o v i s i o n s 0 5 8

T o t a l P r o v i s i o n s ( C u r r e n t ) 2 , 0 3 1 1 , 8 1 7

11. Other (Current Liabilities)

C o m m i t m e n t a n d p r e p r o d u c t i o n a d v a n c e s 4 5 9 6 5 3

O t h e r 0 1 1

T o t a l O t h e r C u r r e n t L i a b i l i t i e s 4 5 9 6 6 4

12. Borrowings (Non-Current)

L o a n s f r o m C o m m o n w e a l t h D e b t c a p i t a l 1 1 7 , 0 2 1 1 1 7 , 0 2 1

T o t a l B o r r o w i n g s 1 1 7 , 0 2 1 1 1 7 , 0 2 1

T h e s e a r e i n t e r e s t b e a r i n g l o a n s a t t h e C o m m o n w e a l t h l o n g t e r m b o n d r a t e .

13. Provisions (Non-Current)

E m p l o y e e e n t i t l e m e n t s :

2 , 2 7 8 - L o n g s e r v i c e l e a v e T o t a l P r o v i s i o n s ( N o n - C u r r e n t )

2 , 4 4 7

2 , 4 4 7 2 , 2 7 8

433

1993/94 $ ' 0 0 0

1992/93 $ ' 0 0 0

:L6. Agreements Equally Proportionately Unperformed

E s t i m a t e d c a p i t a l e x p e n d i t u r e c o n t r a c t e d f o r a t t h e b a l a n c e d a t e t h a t i s p a y a b l e

n o t l a t e r t h a n o n e y e a r 5 2 , 0 6 7 6 0 , 6 1 6

T o t a l 5 2 , 0 6 7 6 0 , 6 1 6

17. Commitments

(a) Operating leases (non-canoeliable)

n o t l a t e r t h a n o n e y e a r

l a t e r t h a n o n e y e a r b u t n o t l a t e r t h a n 2 y r s l a t e r t h a n 2 y e a r s b u t n o t l a t e r t h a n 5 y r s l a t e r t h a n 5 y e a r s

1 , 9 4 4

1 , 7 5 7

4 , 9 1 1

8 1 2

1 , 9 8 5

4 3 0

1 , 0 2 9

1 9

(b) Other Commitments

9 , 4 2 4 3 , 4 6 3

n o t l a t e r t h a n o n e y e a r

l a t e r t h a n o n e y e a r b u t n o t l a t e r t h a n 2 y r s l a t e r t h a n 2 y e a r s b u t n o t l a t e r t h a n 5 y r s l a t e r t h a n 5 y e a r s

1 5 6 , 1 5 9

1 8 5 , 2 8 1

4 5 5 , 5 1 1

0

1 0 8 , 2 1 2

1 6 8 , 3 3 9

5 0 4 , 2 8 9

0

7 9 6 , 9 5 1 7 8 0 , 8 4 0

T o t a l C o m m i t m e n t s 8 0 6 , 3 7 5 7 8 4 , 3 0 3

O t h e r c o m m i t m e n t s a r e e s t i m a t e d f o r u p t o f i v e y e a r s . F o r m a l l e a s e d o c u m e n t s d o n o t e x i s t a n d a d m i n i s t r a t i v e a r r a n g e m e n t s a r e n o t l i m i t e d b y t i m e .

18. Superannuation

D u r i n g t h e f i n a n c i a l y e a r , e m p l o y e e s c o n t r i b u t e d t o t h e C o m m o n w e a l t h S u p e r a n n u a t i o n S c h e m e a n d t h e P u b l i c S e c t o r S u p e r a n n u a t i o n S c h e m e . A n e m p l o y e r s u p e r a n n u a t i o n c o n t r i b u t i o n i s p a i d t o t h e R e t i r e m e n t B e n e f i t s O f f i c e t o m e e t t h e a s s e s s e d e m p l o y e r c o s t s u n d e r t h e r e s p e c t i v e s c h e m e s .

T h e a m o u n t o f e m p l o y e r c o n t r i b u t i o n s p a i d a n d p a y a b l e i n r e s p e c t o f t h e f i n a n c i a l y e a r w a s 1 , 7 6 8 1 , 6 7 8

19. Contingent Liabilities

E s t i m a t e d t o t a l a m o u n t o f c o n t i n g e n t l i a b i l i t i e s a t t h e b a l a n c e d a t e

C o n t r a c t c l a i m s 0 1 , 0 8 5

T o t a l 0 1 , 0 8 5

435

T h e n u m b e r o f e x e c u t i v e o f f i c e r s r e c e i v e d o r w e r e d u e t o r e c e i v e i n c o m e o f $ 1 0 0 , 0 0 0 o r m o r e :

N u m b e r

1 9 9 3 / 9 4 1 9 9 2 / 9 3

$ 1 1 0 , 0 0 0 - $ 1 1 9 , 9 9 9 1 1

T h e a g g r e g a t e a m o u n t r e c e i v e d o r d u e a n d r e c e i v a b l e w a s

20. Remuneration of Executives

1993/94 $'000

1992/93 $'000

1 1 8 1 1 4

1 1 8 1 1 4

21. Auditors' Remuneration

T h e a g g r e g a t e a m o u n t r e c e i v e d o r d u e a n d r e c e i v a b l e b y t h e a u d i t o r s f o r a u d i t i n g t h e

a c c o u n t s w a s _ _ _ _ _ _ 4 5 _ _ _ _ _ _ _ _ 4 5

22. Economic Dependency

N o r m a l b u s i n e s s a c t i v i t i e s a r e d e p e n d e n t u p o n a s i g n i f i c a n t v o l u m e o f b u s i n e s s w i t h C o m m o n w e a l t h G o v e r n m e n t A g e n c i e s .

23. Events Occurring after Balance Date

T h e M i n i s t e r s f o r F i n a n c e a n d A d m i n i s t r a t i v e S e r v i c e s h a v e a g r e e d t o r e s t r u c t u r e C o m m o n w e a l t h c a p i t a l i n v e s t e d i n D A S F L E E T a s o f 1 J u l y 1 9 9 4 . T h e r e v i s e d a r r a n g e m e n t p r o v i d e s f o r $ 1 0 3 m t o b e r e c l a s s i f i e d f r o m E q u i t y C a p i t a l a n d R e t a i n e d E a r n i n g s t o n o n c u r r e n t b o r r o w i n g s .

436

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

DAS INTERIORS AUSTRALIA

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

437

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT DAS INTERIORS AUSTRALIA INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

1 have audited the financial statements of DAS Interiors Australia, a sub-program of the Business Services Trust Account (BSTA), for the year ended 30 June 1994.

The statements comprise:

• Balance Sheet

• Profit and Loss Statement

• Statement of Cash Flows

• Certificate by Departmental Secretary and General Manager, and

• Notes to and forming part of the financial statements.

The Departmental Secretary and the General Manager are responsible for the preparation and presentation of the financial statements and the information contain therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

Australian National Audit Office, GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 · Fax (06) 273 5355

438

The audit opinion expressed in this report has been formed on the above basis.

Qualification

A legal opinion provided by the Attorney-General’s Department has indicated that moneys advanced by non-budget client organisations for the payment of accounts to third parties are to be held in trust or in some fiduciary capacity. The legal opinion indicated that these moneys should not be paid into a section 62A Trust Account, but held in a separate Trust Account.

As disclosed in Note 1, during the year all moneys received by DAS Interiors Australia in a fiduciary capacity were paid into the BSTA, which is a section 62A Trust Account, even though a separate appropriate Trust Account existed. It was not practicable to determine the total amount of moneys incorrectly paid into the BSTA during the year and at 30 June 1994 the balance included in Cash in the Balance Sheet amounted to $0.6 million.

Qualified Audit Opinion

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of DAS Interiors Australia, and in my opinion:

- the statements are based on proper accounts and records

- the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of DAS Interiors Australia at that date, and

- the statements are in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities;

and as mentioned above, moneys held in trust or in a fiduciary capacity were not treated in accordance with trust principles.

J.C. Taylor Auditor-General

Canberra

/ 3 October 1994

439

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

DAS INTERIORS AUSTRALIA

CERTIFICATE ON FINANCIAL STATEMENTS

In our opinion

(a) the accompanying accounts show fairly the profit of DAS Interiors Australia for the year ended 30 June 1994.

(b) the accompanying accounts show fairly the financial position of DAS Interiors Australia as at 30 June 1994.

(c) the accompanying accounts show fairly the cash flows of DAS Interiors Australia during the year ended 30 June 1994.

(d) the accompanying accounts of DAS Interiors Australia have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities, which require compliance with Statements of Accounting Concepts and applicable Accounting Standards.

Dated this ....τ'ίν. <Γ................. day of October 1994.

EWAN HAZELDINE GENERAL MANAGER

JOHN MELLORS SECRETARY

440

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS INTERIORS AUSTRALIA

DERATING REVENUE

■ees 2riced Works ’arliamentary Appropriation -Community Services Obligation )ther Operating Revenue

TOTAL OPERATING REVENUE

OPERATING EXPENSES

:ost of Sales Other Operating Costs

TOTAL OPERATING EXPENSES

ABNORMAL ITEMS

A B N O R M A L I T E M S

tfET OPERATING PROFIT

Accumulated Profits at beginning of financial year

ACCUMULATED PROFITS AT END OF FINANCIAL YEAR

1993/94 $ ' 0 0 0

1 0 , 0 2 1 6 , 8 8 1

100 241

17,243

1 1 , 9 1 9 5 , 0 3 4

16,953

122

1 , 0 2 7

1,149

1992/93 $ ' 0 0 0

1 3 , 2 9 8 5 , 0 8 2

93

212

18,685

1 2 , 2 5 9 6 , 1 3 0

1 8 , 3 8 9

BEFORE

2

290 296

i j j p l

(168) (31)

265

762

1,027

The accompanying Notes form an integral part of these financial statements

441

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS INTERIORS AUSTRALIA

BALANCE SHEET AS AT 30 JUNE 1994

K i i 1993/94

$ ' 0 0 0

CURRENT ASSETS Cash Receivables Inventories Other

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS Property, Plant and Equipment

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

CURRENT LIABILITIES Creditors Provisions Other

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIES Borrowings Provisions

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

NET ASSETS

EQUITY Capital Accumulated Profits TOTAL EQUITY

"

25,513 1,060 1,226 55

27,854

168

168

28,022

722 634

23,119

24,475

717 549

1,266

25,741

2,281

1,132 1,149 2,281

1992/93 $ ' 0 0 0

33,617 2,761 126 321

36,825

201

201

37,026

1,813 673

31,247

33,733

717 833

1,550

35,283

1,743

716

1, 027 1,743

The accompanying Notes form an integral part of these financial statements

442

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 1994

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS INTERIORS AUSTRALIA

CASH FLOWS FROM OPERATING ACTIVITIES

inflows Receipts from customers Interest received Redundancy Funding

Outflows Payment to suppliers Payment to staff Interest paid

Net cash used by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Note 1993/94 $ . ' 0 0 0

19,565 206 182

24,356 3,589 59

(8,051)

1992/93 $ ' 0 0 0

20,484 208 222

18,972 4,048 72

(2,178)

Outflows Payment for property, plant & equipment

Net cash used by investing activities (53) (78)

Net decrease in cash held (8,104) (2,256)

Cash at beginning of reporting period 33,617 35,873

CASH AT END OF REPORTING PERIOD 25,513 33,617

The accompanying Notes form an integral part of these financial statements

443

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS INTERIORS AUSTRALIA NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1. Summary of significant Accounting Policies

Reporting Entity

DAS Interiors Australia is a segment of the Business Services Trust Account (BSTA) administered by the Department of Administrative Services. On the 1st of July 1993 this segment changed its name from Interiors to DAS Interiors Australia.

Basis of Accounting

DAS Interiors Australia, a segment of the BSTA, is required to prepare financial statements under a determination of the Minister for Finance pursuant to section 41D of the Audit Act 1901. The financial statements have been made out in accordance with the Guidelines for Financial Statements of

Public Authorities and Commercial Activities issued by the Minister for Finance in January 1994. The financial

statements conform with Statements of Accounting Standards and Concepts issued by the Institute of Chartered Accountants and the Society of Certified Practising Accountants.

The accounts have been prepared in accordance with the

historical cost convention, unless otherwise stated.

Property Plant and Equipment

Valuation

Property, plant and equipment are recorded at cost. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2,000 are expensed at the

time of purchase.

Property, plant and equipment are valued at least every five years.

The carrying value of non-current assets does not exceed their recoverable amount.

D e p r e c i a t i o n

Depreciation is provided on a straight line basis on all

property, plant and equipment at rates calculated to allocate the cost of those assets over their estimated useful lives.

444

Leasehold Improvements

Leasehold improvements are amortised over the term of the lease.

Inventories

Long term construction contracts

Construction work in progress is stated at cost plus any profit recognised to date (based on percentage completion of each contract) less progress billings. Costs include all

costs directly related to specific contracts. Where a loss is expected on completion, the work in progress is reduced to the level of recoverability less progress billings.

Employee Entitlements

Provision is made for employees' long service leave and recreational leave entitlements.

Long Service Leave

Long service leave is provided for those employees with five years or more service. The provision is dissected into current and non-current liability components based on expected usage next year.

Recreation Leave

Recreation leave is provided for those employees who have an entitlement at balance date. The provision includes a leave loading component and is classified as a current liability.

Leases

Operating lease

Leases of non-current assets, where substantially all the risks and benefits incidental to ownership effectively remain with the lessor are classified as operating leases. Operating lease payments are charged as expenses in determination of

operating profit.

445

Client Advances

Moneys advanced by client organisations for the payment of accounts due to third parties for construction works are included as a liability in the balance sheet. These funds are separately accounted for and applied only for the benefit of the client. The inflow and outflow of these moneys have not been shown in the profit and loss account of DAS Interiors Australia.

During the reporting period certain moneys relating to non­ budget clients were not banked in a separate bank account, however they were isolated in DAS Interiors Australia's accounts. At the 30th June 1994 the balance of these monies was $633,350.

Unearned Income

Deposits and prepayments received for services yet to be rendered are recorded in the balance sheet at the time of

their receipt as a liability and are transferred to profit and loss at the time the service is provided.

Segment Reporting

DAS Interiors Australia operates primarily in the construction industry.

DAS Interiors Australia's activities are primarily conducted within Australia.

Taxation

DAS Interiors Australia is not subject to income tax and most indirect taxes and charges, being a Commonwealth Departmental activity. Fringe Benefits Tax and amounts in lieu of indirect taxes on work for non-Commonwealth clients are expensed and included in the determination of operating profit.

An amount equivalent of Customs Duty on imports is included in the cost of goods. Where the goods are assets, the amount is included in the capital value of the assets and is amortised

over the estimated useful lives of the assets.

Capital

The 1990 Memorandum of Understanding between the Departments of Administrative Services and Finance, which describes the financial framework within which the commercial entities of the Department of Administrative Services are to operate,

specifies that capital invested by the Commonwealth will be divided into interest bearing capital and equity capital in proportions agreed by the Ministers. From July 1 1991 interest bearing capital has been classified as long term borrowings and is shown in the financial statements at the

agreed amount.

446

Dividends

The 1990 Memorandum of Understanding specifies that any dividend payments are based on profitability with recognition of the requirement to retain funds for business purposes and the overall budgetary position.

A provision for dividend has not been included in the accounts as the Minister for Finance and Administrative Services are yet to consider the matter.

447

1 9 9 3 / 9 4 1992/ 93

$ ' 0 0 0 $ ' 0 0 0

2. Operating Profit

The operating profit is arrived at after crediting and charging the following specific it ems:

After crediting as revenue: Parliamentary appropriation - Community Service Obligations 100 9

Interest 206 20

After charging as expense: Salaries and wages 3,589 3,94

Interest 59 i

Operating lease payments 695 92

Provisions - depreciation and amortisation 86 E

- doubtful debts (64) i

- employee benefits 305 54

- insurance 24 4

- forseable losses 13 a

3. Abnormal Items

Included in the operating profit are the following abnormal items:

Items credited: Parliamentary appropriation - Redundancy funding Transfer of Tas Region to Australian

Construction Services

Items charged: Redundancy payments Surplus staff costs Previous Year Adjustment Adjustment of provisions - employee benefits

Net Abnormal Items

4. Receivables (Current)

Trade debtors Less: Provision for doubtful debts

Total Receivables (Current)

276 0

276

(196) (248) 0 0 (444)

(168)

1,144 (84) 1,060

1,060

( 6 '

( 2·

( 1 4

(3

2,84(1 (82

2,76(1

2,76(

448

5. Inventories

Construction work in progress Gross Work in Progress 18,701

Less: Progress billing 17,475

Work in Progress _ _ ^ _ _ ^ _ !_226_ _______12£

36. Other (Current Assets)

^Prepayments 55 321

CTotal Other Current Assets 55 321

; 1993/94 1992/93

$ ' 000 $ ‘ 000

1 77. Property, Plant and Eguipment

ieasehold improvements At Cost 79 60

Less: Provision for amortisation _________ 45 _________ 22_

CPlant and equipment

34 38

At Cost 420 412

Less: Provision for depreciation 286 249

CTotal Plant and equipment 134 163

CTotal Property, plant and equipment 168 201

S8. Creditors (Current)

CTrade creditors 171 380

^Accrued expenses 551 1,433

CTotal Creditors (Current)

29. Provisions (Current)

722 1,813

CHmployee entitlements: - Long service leave 137 135

- recreation leave & leave bonus 368 505

CTotal Employee entitlements 505 640

COther provisions: - Contract Retentions 77

- Warranties 52 33

"Total other provisions 129 33

Total Provisions (Current) 634 673

449

1 9 9 3 / 9 4 $-000

10. Other (Current Liabilities)

Client advances* 22,839

Commitment and preproduction advances 0

Unearned income 280

Total Other Current Liabilities _____ 23,119

* M o vem en t i n C l i e n t A d v a n c e s d u r i n g

t h e y e a r w e r e a s f o l l o w s :

O p e n in g B a la n c e 30,627

A d d : R e c e i p t s 51,360

81,987

D e d u c t: P a y m e n ts _____ 59,148

Closing Balance 22,839

11. Borrowings (Non-Current)

Debt capital 717

Total Borrowings ________ 717

These are interest bearing loans at the Commonwealth long term bond rate.

12. Provisions (Non-Current)

Employee entitlements: - Long service leave ________ 549

Total Provisions (Non-Current) ________ 549

13. Equity

Capital

Opening balance 716

Transfer of Tasmania Region to ACS 0

Staff transfer adjustment 416

Capital invested at 30 June ______ l, 132

Capital is repayable to the Commonwealth at such times and in such amounts as the Minister for Finance determines in writing.

Staff transfer adjustment comprises assets and liabilities accompanying the transfer of staff to the Staffing Adjustment Program of the Business Services Trust Account.

1993/94 1992/93

$'000 $-000

14. Cash Flow Reconciliation

Net Operating Profit/(Loss) 122 265

Depreciation & amortisation 86 50

_ Abnorma 1 it ems 0 (55)

:Bad debt expenses 0 82

Decrease in Receivables 1,701 236

increase in Inventories (1,100) 36

"Decrease in Other Current Assets 266 (287)

Decrease in Creditors (1,091) 9

^Decrease in Provisions 93 76

."Decrease in Client Advances (8,128) (2,590)

Met cash used by operating activities (8,051) (2,178)

.15. Commitments

:Operating leases (non-cancellable)

not later than one year 65 72

later than one year but not later than 2 yrs 105 92

later than 2 years but not later than 5 yrs 650 763

later than 5 years 0 0

820 927

16. Superannuation

:During 1993-94, employees contributed to the "Commonwealth Superannuation Scheme and the Public ^Sector Superannuation Scheme. An employer contribution -is paid to the Retirement Benefits Office to meet the ^assessed employer costs under the respective schemes.

"The amount of employer contributions paid and .'payable in respect of the financial year was 510

-17. Remuneration of Executives

:No executive officers received or were due to ^receive remuneration of $100,000 or more.

18. Auditors' Remuneration

’ The aggregate amount received or due and receivable by the auditors for auditing the accounts was _________ 30 30

19. Economic Dependency

Normal business activities are dependent upon a significant volume of business with Commonwealth Government Agencies.

451

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

DAS REMOVALS

FINANCIAL STATEMENTS

FOR YEAR ENDED 30 JUNE 1994

453

Auditor-General

BUSINESS SERVICES TRUST ACCOUNT DAS REMOVALS INDEPENDENT AUDIT REPORT

To the Minister for Administrative Services

Scope

I have audited the financial statements of DAS Removals, a sub-program of the Business Services Trust Account, for the year ended 30 June 1994. The statements comprise:

. Balance Sheet

. Profit and Loss Statement

. Statement of Cash Flows

. Certificate by Departmental Secretary and General Manager, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and the General Manager are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Administrative Services.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence

supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial

statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a view which is consistent with my understanding of the entity’s financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit Office. GPO BOX 707, Canberra ACT 2601 · Telephone (06) 203 7500 · Fax (06) 273 5355

454

A u d i t O p i n i o n

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of DAS Removals and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1994 and the state of affairs of DAS Removals as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial

Statements of Public Authorities and Commercial Activities.

J.C. Taylor Auditor-General

11 October 1994

455

DEPARTMENT OF ADMINISTRATIVE SERVICES

BUSINESS SERVICES TRUST ACCOUNT

DAS Removals

CERTIFICATE ON FINANCIAL STATEMENTS

In our opinion

(a) the accompanying accounts show fairly the profit of DAS Removals for the year ended 30 June 1994

(b) the accompanying accounts show fairly the financial position of DAS Removals as at 30 June 1994

(c) the accompanying accounts show fairly the cash flows of DAS Removals during the year ended 30 June 1994

(d) the accompanying accounts of DAS Removals have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities, which require compliance with Statements of Accounting Concepts and applicable Accounting Standards.

Dated this day of October 1994

John Mellors Secretary

456

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS REMOVALS PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 1994

: OPERATING REVENUE

Note 1993/94 $'000 1992/93 $'000

Fees Other Operating Revenue

83,998 1,113

78,800 1,268

' TOTAL OPERATING REVENUE 85,111 80,068

OPERATING EXPENSES

: Cost of Sales Other Operating Costs

69,862 9, 877

63,892 9, 634

TOTAL OPERATING EXPENSES 79,739 73,526

NET OPERATING PROFIT 2 5,372 6,542

-Accumulated Profits at beginning of financial year

8,791 8,479

TOTAL AVAILABLE FOR APPROPRIATION 14,163 15,021

Transfer to Reserves Dividend Paid

624

5,000

1,230 5,000

- ACCUMULATED PROFITS AT END OF 8,539 8, 791

"FINANCIAL YEAR

• The accompanying Notes form an integral part of these financial statements

457

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS REMOVALS BALANCE SHEET AS AT 30 JUNE 1994

Note 1993/94 1992/93

$'000 $'000

CURRENT ASSETS Cash 36,628 11, 8 61 j j n

Receivables 3 4,187 9, 779

Other 4 152 253j:

,1

TOTAL CURRENT ASSETS 40,967 21, 893,

NON-CURRENT ASSETS M

Property, Plant and Equipment 5 253 3221,

M

TOTAL NON-CURRENT ASSETS 253 322:;

TOTAL ASSETS 41,220

N

22,215

CURRENT LIABILITIES

l < -

Creditors 6 4, 630 5,271K

Provisions 7 1,292 1,322

Other 8 19,160 12

) i

TOTAL CURRENT LIABILITIES 25,082 6, 605?.

NON-CURRENT LIABILITIES M

Borrowings 9 1,092 1, 092 j

Provisions 10 1,977 1, 82ip

TOTAL NON-CURRENT LIABILITIES 3, 069 2,913h

TOTAL LIABILITIES 28,151 9,518

NET ASSETS 13,069 12, 697);

EQUITY If!

Capital 380 380

Reserves 4,150 3,526*"

Accumulated Profits 8,539 8,791^

TOTAL EQUITY 11 13,069 12,697

The accompanying Notes form an integral part of these financial statements 1 1 1

458

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS REMOVALS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 1994

- "HASH FLOWS FROM OPERATING ACTIVITIES

' inflows . receipts from customers nterest received

•utflows 3 Payment to suppliers _ payment to staff E interest paid

:)ther operating payments

slet cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Outflows i Payment for property, plant & equipment

alet cash used by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

inflows Repayment of borrowing

7)ut flows dividend paid

-let cash used by financing activities

4et increase/(decrease) in cash held

-ash at beginning of reporting period

TASH AT END OF REPORTING PERIOD

Note 1993/94 $'000 1992/93 $'000

102,529 1,081

77,935 1,268

66,431 4,890 80 5, 410

58,857 4,587 98 9, 966

12 26,799 5, 695

32 121

(32) (121

3, 000 0

5, 000 5, 000

(2,000) (5,000

24,767 574

11,861 11,287

36,628 11,861

The accompanying Notes form an integral part of these financial statements

459

DEPARTMENT OF ADMINISTRATIVE SERVICES BUSINESS SERVICES TRUST ACCOUNT DAS REMOVALS NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 1994

1.Summary of Significant Accounting Policies

Reporting entity

DAS Removals is a segment of the Business Services Trust Account (BSTA) administered by the Department of Administrative Services.

Basis of Accounting

DAS Removals, a segment of the BSTA, is required to prepare financial statements under a determination of the Minister for Finance pursuant to section 4 ID of the A u d i t A c t 1 9 0 1 . The

financial statements have been made out in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities issued by the Minister for Finance in January 1994. The financial statements conform with Statements of Accounting Standards and Concepts issued by the Institute of Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants.

The accounts have been prepared in accordance with the historical cost convention, unless otherwise stated.

Indemnity

R e v e n u e R p n n a n i t i on

DAS Removals provides indemnity cover for household effects during every stage of a removal under its comprehensive indemnity scheme. Under the indemnity scheme, revenue is recognised on completion of the removal and in the case of

storage on a pro-rata basis at the end of each month.

I n d e m n i t y C l a i m s

A provision, based on an estimate of the amount of indemnity claims yet to be reported at the end of the financial year is recorded in the accounts. Also included in the provision is an estimate of the amount of claims reported but unsettled at the end of the financial year.

Claims arising from events that have occurred during this period and have been settled during the period are expensed during the financial year.

460

Indemnity Rsssrvs

DAS Removals carry the first $300,000 risk for fire or catastrophe in store. An amount of $900,000 has been set aside to cover losses resulting from fire or a catastrophe event occurring within the store.

Property Plant and Equipment

Va Ίu a t i o n

Property, plant and equipment are recorded at cost. Cost in relation to the respective class of asset represents the cash amount paid or the fair value of the assets transferred or acquired. Assets costing less than $2,000 are expensed at the time of purchase.

Property, plant and equipment are valued at least every five years.

The carrying value of non-current assets does not exceed their recoverable amount.

D e p r e c i a t i o n

Depreciation is provided on a straight line basis on all property, plant and equipment at rates calculated to allocate the cost of those assets over their estimated useful lives.

Employee Entitlements

Provision is made for employees' long service leave and recreational leave entitlements.

Lon g S e r v i c e L e a v e

Long service leave is provided for those employees with five years or more service. The provision is dissected into current and non-current liability components based on expected usage in next year.

R e c r e a t i o n L e a v e

Recreation leave is provided for those employees who have an entitlement at balance date. The provision includes a leave loading component and is classified as a current liability.

Leases

O p e r a t i n g l e a s e

Leases of non-current assets, where substantially all the risks and benefits incidental to ownership effectively remain with the lessor are classified as operating leases. Operating lease payments are charged as expenses in the determination of operating profit.

461

Unearned Income

Deposits and prepayments received for services yet to be rendered are recorded in the balance sheet at the time of their receipt as a liability and are transferred to profit and loss statement at the time the service is provided.

Segment Reporting

DAS Removals operates primarily in the removals management industry.

DAS Removals activities are primarily conducted within Australia.

Taxation

DAS Removals is not subject to income tax and most indirect taxes and charges, being a Commonwealth Departmental activity. Fringe Benefits tax and amounts in lieu of indirect taxes on work for non-Commonwealth clients are expensed and included in the determination of operating profit.

An amount equivalent of Customs Duty on imports is included in the cost of goods. Where the goods are assets, the amount is included in the capital value of the assets and is amortised over the estimated useful lives of the assets.

Capital

The 1990 Memorandum of Understanding between the Departments of Administrative Services and Finance, which describes the financial framework within which the commercial entities of the Department of Administrative Services are to operate, specifies that capital invested by the Commonwealth will be divided into

interest bearing capital and equity capital in proportions agreed by Ministers. From 1 July 1991 interest bearing capital has been classified as long term borrowings and is shown in the financial statements at the agreed amount.

Dividend

The 1990 Memorandum of Understanding specifies that any dividend payments are based on profitability with recognition of the requirement to retain funds for business purposes and the overall budgetary position.

A provision for dividend has not been included in the accounts as the Ministers for Finance and Administrative Services are yet to consider the matter.

462

1 9 9 3 / 9 4 1 9 9 2 / 9 3

$'000 $'000

2. Operating Profit

The operating profit/(loss) is arrived at after crediting and charging the following specific items:

After crediting as revenue: Interest 1,113 1,268

Indemnity premium After charging as expense:

7, 994 8,705

Salaries and wages 5, 084 5,105

Interest 80 98

Operating lease payments Provisions

637 740

- depreciation and amortisation 101 130

- doubtful debts 159 222

- employee benefits 246 78

- indemnity claims 849 1,166

3. Receivables (Current)

Trade debtors 4,328 6, 883

Less: Provision for doubtful debts 272 122

4,056 6, 761

Loans - other business units 0 3, 000

Recoverable Expenditure 58 18

Accrued Interest 73 0

Total Receivables (Current) 4, 187 9, 779

4. Other (Current Assets)

Prepayments 152 241

Compensation payments to be recovered 0 12

Total Other Current Assets

5. Property, Plant and Equipment

152 253

Plant and equipment At Cost 557 856

Less: Provision for depreciation 304 534

Total Plant and equipment 253 322

Total Property, plant and equipment 253 322

6. Creditors (Current)

Trade creditors 4,062 4,555

Accrued expenses 568 716

-otal Creditors (Current) 4, 630 5,271

4 6 3

7. Provisions (Current)

1993/94 1992/93 $'000 $'000

Employee entitlements: - Long service leave - recreation leave & leave bonus - Superannuation Total Employee entitlements

16 7,

627 611

0 5,

643 623

Other provisions: - Loss and damage Total other provisions

649 699

649 699;

Total Provisions (Current) 1,292 1,322,

8. Other (Current Liabilities)

Unearned income Less: amounts due - work performed in June 21,571 0

(2,407) 4

19,164 0

Other (4) 12

Total Other Current Liabilities 19,160 12

9. Borrowings (Non-Current)

Debt capital 1,092 1,092

Total Borrowings . 1,092 1,092

These are interest bearing loans at the Commonwealth long term bond rate.

10. Provisions (Non-Current)

Employee entitlements: - Long service leave

r

1,200 1,069

;

Other provisions: - Loss and damage

Total Provisions (Non-Current)

777 752 t i

1,977 1,821 j Total Provisions (Non-Current)

1993/94 1992/93

1. Equity

$'000 $'000

apital

-.pening balance 380 594

Additional capital from Commonwealth 0 22

Transfer from other business units 0 (236)

:apital invested at 30 June

Capital is repayable to the Commonwealth at such times and in such amounts as the Minister :or Finance determines in writing.

Reserves

380 380

isset replacement reserve

Opening balance 526 396

. Transfer from Accumulated Profits 94 130

: Closing balance 620 526

Insurance reserve

Opening balance 900 900

Transfer from Accumulated Profits 0 0

Closing balance 900 900

Capital investment reserve

Opening balance 2,100 1,000

Transfer from Accumulated Profits 530 1,100

Closing balance 2, 630 2,100

Total Reserve 4,150 3,526

12. Cash Flow Reconciliation

Net Operating Profit 5, 372 6, 542

Adjustment to equity 0 318

.Depreciation & amortisation 101 130

Assets written off 331 0

Bad debt expenses (159) (222)

Decrease in Receivables 2, 423 (1,581)

Decrease in Other Current Assets 100 (191)

Decrease in Creditors (641) 841

Increase in Provisions 126 (77)

Increase in Other Current Liabilities 19,146 (65)

Net cash provided/(used) by operating activities 26,799 5, 695

465

13. Commitments

1993/94 $ Ό 0 0

1992/! $ ' 00(

1.

Other Commitments N

not later than one year later than one year but not later than 2 yrs later than 2 years but not later than 5 yrs later than 5 years

1, 155 1, 155 1,470

i , lt c :

1,15 3,75

3, 780 6, OC

Total Commitments 3, 780 6, 00

Other commitments are estimated for up to five years. Formal lease documents do not exist and administrative arrangements are not limited by time.

14. Superannuation

During the financial year, employees contributed to the Commonwealth Superannuation Scheme and the Public Sector Superannuation

Scheme. An employer superannuation contribution is paid to the Retirement Benefits Office to meet the assessed employer costs under the respective schemes.

The amount of employer contributions paid and payable in respect of the financial year was 769 754

15. Remuneration of Executives

The number of executive officers received or were due to receive income of $100,000 or more: Number 1993/94 1992/93

$100,000 - $109,999 0 0

$110,000 - $119,999 0 0

$130,000 & above 0 0

The aggreagte amount received or due and receivable was 0 0

16. Auditors' Remuneration

The aggregate amount received or due and receivable by the auditors for auditing the accounts was 36 35

466

!)

α

1993/94 $'000

1992/93 $'000

17. Economic Dependency

Normal business activities are dependent upon a significant volume of business with (Commonwealth Government Agencies.

467

COMMONWEALTM H O F AUSTRALIA

PARLIAMENTARY p a p e r

No. 310 of 1994 ORDERED TO BE PRINTED ISSN 0727-418

= 1 7601=44 334=107

A43087 Cat. No. 94 1997 4