Australian Federal Police—Report for 2019-20, incorporating reports on the National Witness Protection Program, unexplained wealth investigations and proceedings, and delayed notification search warrants

A N N U A L R E P O R T

2 01 9 – 2 0

AFP Annual Report 2019–20

ii

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ISSN 0728–4691 (print)

ISSN 2202-7491 (online)

© Commonwealth of Australia, Australian Federal Police, 2020

Aids to access

Annual report contact officer Manager Audit, Statistics and Performance

Contact phone number (02) 5126 0000

Contact email AFPannualreport@afp.gov.au

Contact address

Manager Audit, Statistics and Performance

Australian Federal Police

GPO Box 401, Canberra ACT 2601

Entity website (URL) www.afp.gov.au for all general information

Freedom of information requests foi@afp.gov.au

Electronic versions reports of this and previous annual www.afp.gov.au/annualreport

Details of accountable authority during the reporting period

Name Position title / Period as the accountable authority or member

position held

Date of commencement Date of cessation

Andrew Colvin Commissioner 1 July 2019 1 October 2019

Reece P Kershaw Commissioner 2 October 2019 30 June 2020

AFP Annual Report 2019–20

iii

AFP Annual Report 2019–20

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AFP principal locations National Headquarters

Edmund Barton Building

47 Kings Avenue

Barton ACT 2600

(02) 5126 0000

Media inquiries: (02) 5126 9297

ACT Policing

Winchester Police Centre

Cnr Benjamin Way and College Street

Belconnen ACT 2617

(02) 6256 7777

Media inquiries: (02) 5126 9070

Adelaide Office (Central Command)

Level 8, 55 Currie Street

Adelaide SA 5000

(02) 5126 9061

Brisbane Office (Northern Command)

45 Commercial Road

Newstead Qld 4006

(02) 5126 9025

Darwin Office (Northern Command)

4 Pedersen Road

Marrara NT 0812

(02) 5126 9038

Hobart Office (Southern Command)

Level 7, 47 Liverpool Street

Hobart Tas. 7000

(02) 5126 9160

Melbourne Office (Southern Command)

383 La Trobe Street

Melbourne Vic. 3000

(02) 5126 9160

Perth Office (Western Command)

619 Murray Street

West Perth WA 6005

(02) 5126 9038

Sydney Office (Eastern Command)

110 Goulburn Street

Sydney NSW 2000

(02) 5126 9080

Contents

Letter of transmittal

AFP principal locations

1

Commissioner’s review

iii

iv

2

Snapshot of achievements

2

Overview of the AFP

4

8

The AFP’s role and purpose

Strategic initiatives

Organisational structure

Investigations

Operations

Specialist and Support Operations

Office of the Commissioner

Chief Operating Officer

Chief Police Officer for the ACT

3

Annual performance statement

Results for Outcome 1 Reduced criminal and security threats to Australia’s collective societal and economic interests through cooperative policing services

Results for Outcome 2 A safe and secure environment through policing activities on behalf of the Australian Capital Territory Government

4

Management and accountability

Corporate governance

External scrutiny

8

11

14

16

18

21

24

27

30

34

44

73

78

78

85

Our people

Financial management

87

95

5

Financial statements 100

Appendixes 131

Appendix A Professional standards and AFP conduct issues 132

Appendix B Staffing statistics and executive remuneration

Appendix C Agency resource statement and resources for outcomes

136

144

Appendix D Summary financial tables

Appendix E List of annual report requirements

147

152

Annex A: National Witness Protection Program annual report 2019–20 158

Annex B: Unexplained wealth investigations and proceedings annual report 2019–20 162

Annex C: Delayed notification search warrants annual report 2019–20 164

Abbreviations and acronyms

Index

165

166

Figures Figure 2.1 The AFP’s core functions ................................... 9

Figure 2.2 Links between the AFP’s Portfolio Budget Statements, outcomes and programs ................ 10

Figure 2.3 AFP organisational structure as at 30 June 2020 ......................................................................... 15

Figure 3.1 Overview of AFP’s outcomes and programs for 2019–20 .............................................................36

Figure 3.2 Measuring maximum impact on the criminal environment— drugs/precursors 2019–20 ......42

Figure 3.3 Survey details ......................................................45

Figure 3.4 Transnational return on investment calculation and social harm...................................................48

Figure 3.5 Return on investment for transnational crime, 2015–16 to 2019–20 .....................................................49

Figure 3.6 Airport incidents by priority, 2019–20 .........65

Figure 3.7 Priority 1 incidents across airports, 2019–20 ........................................................................................65

Figure 3.8 Overall AFP cases throughput, 2019–20 .....75

Figure 4.1 AFP key committee framework .....................79

Tables Table 2.1 Strategic initiatives and related activities, 2019–20........................................................................................ 12

Table 3.1 Operational priorities and associated performance criteria ................................................................37

Table 3.2 PBS linked program partners ...........................38

Table 3.3 Performance criteria in the 2019–20 PBS (Portfolio Additional Estimates Statement (PAES) 2019–20) ...................................................................................... 41

Table 3.4 All aviation incidents, comparison between April 2019 and April 2020 ......................................................64

Table 4.1 Audit and Risk Committee membership and attendance, 2019–20 ....................................................... 81

Table 4.2 Contracts without Auditor-General access, 2019–20........................................................................................96

Table 4.3 Number of and expenditure on consultants, 2019–20 ...............................................................96

Table 4.4 Advertising and market research expenditure, 2019–20 ..............................................................98

Table A1 Categories of AFP conduct issues and case examples ................................................................. 133

Table A2 Alleged conduct breaches recorded by category, 2016–17 to 2019–20 .............................................134

Table A3 Alleged complaints recorded by source, 2019–20......................................................................................134

Table A4 Finalised conduct breaches by category, 2019–20......................................................................................134

Table A5 Prohibited drug tests conducted, 2019–20...................................................................................... 135

Table B1 Ongoing employees by location, 2019–20...................................................................................... 136

Table B2 Non-ongoing employees by location, 2019–20...................................................................................... 137

Table B3 Ongoing employees by location, 2018–19 ...................................................................................... 138

Table B4 Non-ongoing employees by location, 2018–19 ...................................................................................... 139

Table B5 Remuneration for key management personnel ..................................................................................140

Table B6 Remuneration for senior executives..............142

Table B7 Remuneration for other highly paid staff .... 143

Table C1 Agency resource statement, 2019–20 ...........144

Table C2 Expenses for Outcome 1 ...................................145

Table C3 Expenses for Outcome 2...................................146

Table D1 Entity resource statement subset summary, 2019–20 ................................................................. 147

Table D2 Statement of comprehensive income, 2019–20......................................................................................148

Table D3 Statement of financial position, 2019–20 .....148

Table D4 Statement of changes in equity, 2019–20 ...149

Table D5 Cash flow statement, 2019–20 ........................149

Table D6 Notes to the financial statements (departmental), 2019–20 ......................................................149

Table D7 Administered statement of comprehensive income, 2019–20 ..................................................................... 150

Table D8 Administered schedule of assets and liabilities, 2019–20 ................................................................... 150

Table D9 Administered reconciliation schedule, 2019–20...................................................................................... 150

Table D10 Administered cash flow statement, 2019–20.......................................................................................151

Table AA1 National Witness Protection Program expenditure, 2019–20 ............................................................ 160

Table AA2 Total expenditure (before costs were recovered) in previous years ...............................................160

CHAPTER 1

AFP Annual Report 2019–20 Commissioner’s review

2

Commissioner’s review In 2019–20, we delivered outstanding operational results in policing for a

safer Australia, but we have changed as an organisation. The year brought

challenges of every shape and form, from bushfires to the COVID-19

pandemic. We were tested and we demonstrated our resilience, our

responsiveness and our agility. I am proud of our operational successes,

of our people and of the agency we have become.

In October 2019, we celebrated our 40th anniversary as the Australian

Federal Police (AFP), and I look back on our rich history with pride.

I would like to acknowledge the seven previous Commissioners who led

the organisation before me and who each contributed to and shaped the

journey of the AFP—Sir Colin Woods KCVO CBE QPM, Major General

Ronald Grey AO DSO, Peter McAulay AO QPM, Michael Palmer AO APM, Mick Keelty AO APM,

Tony Negus APM and Andrew Colvin APM OAM.

When I commenced as the eighth AFP Commissioner on 2 October 2019, I laid out my 100-day plan

of action to shape an organisation fit for purpose into the future. Ultimately, our goal is a disciplined

police force delivering maximum impact on the criminal environment. To achieve this, we focused our

efforts on three emerging priorities that retain their significance today: supporting the front line;

reducing red tape; and enhancing partnerships. We have made significant progress in all three areas.

Supporting the front line: much has been achieved to ensure our people are able to do their jobs

effectively and to deliver maximum impact on the criminal environment. The independent Review into

the AFP’s Response to and Management of Sensitive Investigations was delivered by Mr John Lawler

AM APM, and a structure and operating model review was undertaken by Ernst & Young, resulting in

the establishment of the Sensitive Investigations Oversight Board and a regional command structure

for the organisation.

We have defined our organisational identity across national and international policing and

investigations, community policing and specialist protective services. Our investigations focus on

combating five serious threats: terrorism and foreign interference; child exploitation; transnational,

serious and organised crime; cybercrime; and fraud and corruption. We have had outstanding

operational results: in December 2019 the AFP and partners made Australia’s largest ever onshore

methamphetamine seizure (1.6 tonnes), preventing $414 million worth of harm to the community

(including Operation Circinus, page 69); and in November 2019 the AFP coordinated a global week of

action in 16 countries, consisting of 85 search warrants, 13 arrests and the seizure of 434 items as part

of a cybercrime operation (Operation Cepheus, page 67). Of particular concern, the past financial year

saw an increase of more than 80 per cent in the number of charges and individuals charged by the AFP

AFP Annual Report 2019–20 Commissioner’s review

3

with child exploitation offences. This damning statistic is apart from the AFP’s efforts in leading the

Australian Centre to Counter Child Exploitation and supporting our international partners, including

our support to the Philippine Internet Crimes Against Children Center, which has arrested 53 suspects

and rescued 194 child victims since February 2019 (page 56).

These successes are the result of our partnerships and, most importantly, our people. We are

supporting our people throughout their careers and into their retirement. We have become the first

Australian policing jurisdiction to establish a Reserve Force and have commenced work to establish an

AFP Former and Retired Members’ Network.

Reducing red tape: we are streamlining our administrative processes so we can keep our focus on

operational priorities. The new Strategy and Performance Board monitors agency performance and

enhances oversight of AFP governance arrangements, resulting in better decision-making.

Enhancing partnerships: we have strengthened relationships with state and territory partners through

establishing the National Operations and State Services Centre, a centrepiece for intelligence

collection and dissemination. We have seen how successful partnerships can be in disrupting crime as

well as how important they are in times of need. The AFP successfully facilitated the delivery of more

than 1.9 million surgical face masks into Australia to help protect police workforces against COVID‑19,

assisted key partner agencies to evacuate Australians from Wuhan, China (Operation Burdei), and

deployed personnel around the country in response to the pandemic (Operation Protect, page 62).

We have continued our important offshore police-to-police relationships, where close cooperation

continues to deliver operational outcomes, as well as supporting Australia’s broader diplomatic efforts.

In December 2019 an AFP team deployed to New Zealand to assist with disaster victim identification

and family investigative liaison officer efforts following the White Island volcano disaster. Every dollar

the AFP invests in its international operations offshore has returned $46 in value—in reduced costs to

policing back in Australia and reduced harm to the Australian community.

I am very proud of the organisation we have become. We have shown our resilience and

responsiveness, and our operational results speak for themselves. But we have more work to do, and

we will continue to evolve. I look forward to leading the AFP through 2020 and beyond, embedding

our new identity and keeping Australia and Australians safe, with the confidence of the community and

our partners. We are proactively positioning ourselves to outsmart serious crime, and striving to always

be one step ahead.

Reece P Kershaw APM

Commissioner

16 September 2020

AFP Annual Report 2019–20 Commissioner’s review

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Snapshot of achievements

AFP Annual Report 2019–20 Commissioner’s review

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CHAPTER 2

AFP Annual Report 2019–20 Overview of the AFP

8

Overview of the AFP

The AFP’s role and purpose As Australia’s national policing agency, the AFP is a key member of the Australian law enforcement

and national security community, leading efforts to keep Australians and Australian interests safe both

at home and overseas.

The AFP’s vision—policing for a safer Australia—reflects its core functions as legislated in section 8

of the Australian Federal Police Act 1979 (Cth) (AFP Act) and is informed by associated Ministerial

Directions issued under section 37(2) of the AFP Act.

AFP Annual Report 2019–20 Overview of the AFP

9

Figure 2.1 The AFP’s core functions

AFP Annual Report 2019–20 Overview of the AFP

10

Figure 2.2 Links between the AFP’s Portfolio Budget Statements, outcomes and programs

Outcome 1 Outcome 1 captures the AFP’s national and international policing activity and provision of specialist

protective services. This activity draws on a wide range of AFP capabilities, including operational,

support and strategic assets. These capabilities address threats that can originate domestically or

internationally and can emerge quickly in response to developments in areas such as technology.

Operational activity under Outcome 1 involves:

● a local, national and international presence

● close and effective engagement with our partners, with the AFP being Australia’s lead agency

for international law enforcement collaboration

● a range of proactive and reactive approaches including deterrence, prevention, disruption,

investigation and intelligence gathering

● a flexible capability base that can support a broad range of work and is responsive to routine

business, critical incidents and new crime types

● the provision of specialist protective services for Commonwealth interests.

AFP Annual Report 2019–20 Overview of the AFP

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Outcome 1 involves two programs:

Program 1.1: Federal Policing and National Security

Program 1.1 reduces criminal and national security threats by promoting the safety and security of

Australian communities and infrastructure; preventing, deterring, disrupting and investigating serious

and organised crime and crimes of Commonwealth significance; and ensuring effective collaboration

with international, Commonwealth, state and territory partners.

Program 1.2: International Police Assistance

Program 1.2 reduces criminal and national security threats through delivery of collaborative law and

order police development missions, participation in internationally mandated peace operations and

provision of civil policing assistance in accordance with Australian foreign development

policy priorities.

Outcome 2 Outcome 2 reflects the AFP’s community policing capability delivered to the ACT through ACT

Policing. ACT Policing delivers a policing service in accordance with the Policing Arrangement between

the Commonwealth and ACT governments to provide a safe and secure environment.

ACT Policing’s performance is assessed against the Commonwealth framework under the Public

Governance, Performance and Accountability Act 2013 (Cth) (PGPA Act) and the Public Governance,

Performance and Accountability Rule 2014 (PGPA Rule), in Chapter 3 of this report. ACT Policing is also

subject to the ACT performance framework, under the 2017–2021 Purchase Agreement (available at

https://police.act.gov.au/about-us/government-directions).

Strategic initiatives In 2019–20, the AFP continued to progress three enterprise-wide strategic initiatives, consistent with

the AFP Corporate Plan 2019–20:

● achieving maximum operational impact

● promoting cultural and organisational health

● delivering a capable and future ready AFP.

Activities to enhance strategic capabilities In 2019–20 the AFP continued to invest in our capability framework and strategic capabilities. Table 2.1

shows the strategic initiatives and related activities we progressed to optimise the AFP’s ability to

address known challenges and threats as well as those not yet realised.

AFP Annual Report 2019–20 Overview of the AFP

12

Table 2.1 Strategic initiatives and related activities, 2019–20

Maximum operational impact

Activity Progress

Finalise and implement the Crime Threat Strategies ●

●

Used the Crime Threat Strategies to inform individual capability

plan pilots

Informed the AFP’s priority focus on combating serious threats

arising from:

 terrorism and foreign interference

 child exploitation

 transnational, serious and organised crime

 cybercrime

 fraud and corruption

Continue to develop a strengthened prioritisation model

●

●

Following development of the model, commenced a trial

in Southern Command

Testing will continue into 2020–21 before the model is

implemented agency wide

Cultural and organisational health

Activity Progress

Implement the action plan from the 2018–2023 AFP Health and Wellbeing Strategy

●

●

●

●

Continued to implement the outcomes of the Health and

Wellbeing Strategy, with a particular focus on creating an

education framework to combat stigma and equip employees

to understand health, as well as developing policies, processes,

partnerships and technology

Introduced a Health Toolkit for leaders to provide educational

resources that will assist in managing the health of staff across

the agency

Created a Health Risk Profile tool that informs the organisation

about health risk across the organisation

Introduced a telehealth framework that enables the exchange of

health information and the provision of healthcare services

across geographic, time, social and cultural barriers

AFP Annual Report 2019–20 Overview of the AFP

13

Capable and future ready AFP

Activity Progress

Finalise and launch the AFP Performance Management Strategy 2019–2024

●

●

Developed and delivered workshops to 250 AFP supervisors that help to create a working environment that enhances effective performance management

Reviewed guiding policies to support the building of a high-performance culture

Implement the AFP Capability Strategy ●

●

●

Established the Capability Board to ensure current and future capability requirements are met to achieve operational effect

Used the capability approach to identify and prioritise gaps, informing the 2020–21 Strategic Investment Plan

Used the capability approach in frontline, operational and enterprise areas to design and improve how we deliver business

Develop an operating model that addresses emerging threats, manages risk and aligns with the internal and external environment

●

●

Progressed implementation of an organisational restructure based on a regional model

Initiated Taskforce Horizon to allocate resources where they are needed the most, with frontline investigative capacity boosted in targeted regional commands

Develop an AFP Domestic Property Strategy ●

●

●

●

Progressed work within the Department of Finance’s strategic property framework to develop a Strategic Property Plan that positions the organisation to be future ready, with links to the Strategic Workforce Plan and the Capability Strategy

Developed an AFP entity plan that provides a view of future property portfolio optimisation, considering current and future performance and targets, operational outcomes, strategy and risks

Prepared a forward-leaning design brief, which provides a future design basis for a workplace that supports and enhances the required operational outcomes and workplace culture

Conducted a regional office accommodation review that established an understanding of current and future site locations, composition and operational business design

AFP Annual Report 2019–20 Overview of the AFP

14

Organisational structure At its broadest level the AFP is organised into six key areas of responsibility:

● Investigations

● Operations

● Specialist and Support Operations

● Office of the Commissioner

● Chief Operating Officer

● Chief Police Officer for the ACT.

Collectively these areas drive strategic initiatives and activities as described in the AFP Corporate Plan

2019–20. The organisational structure has been developed with a focus on addressing priorities,

improving knowledge flow and supporting capability development hubs to create maximum impact

on the criminal environment.

AFP Annual Report 2019–20 Overview of the AFP

15

Figure 2.3 AFP organisational structure as at 30 June 2020

AFP Annual Report 2019–20 Overview of the AFP

16

Investigations The Deputy Commissioner Investigations (DCI) oversees and provides strategic direction for criminal

investigations, which includes counter terrorism, countering foreign interference and sensitive

investigations. The DCI also oversees the International Network.

Snapshot of achievements

The DCI’s portfolio contributes to operational performance criteria— refer to Chapter 3,

‘Annual performance statement’ for more details.

Performance highlights

INTERPOL

Australia’s INTERPOL National Central Bureau (NCB), based in Canberra, facilitates and supports

Australian law enforcement enquiries to 193 other INTERPOL member countries, and foreign partner

enquiries to Australia. Enquiries cover all crime types and a range of operational requirements.

Priority is given to life-threatening and community safety matters. In 2019–20, INTERPOL NCB

Canberra actioned over 500 threat-to-life and next-of-kin notifications.

Of all the Australian requests sent overseas, approximately 65 per cent were for state and territory

police in relation to intelligence, investigative, identification, court and other operational matters.

The remaining enquiries were made internationally for more than 22 AFP teams and at least 20 other

Commonwealth and local agencies. The top five crime types for enquiries were fraud, drugs, assaults,

sexual offences and homicides. These requests are often complex and require careful law enforcement

consideration of cultural and legal differences and impacts (such as the death penalty), compliance

with jurisdictional legislation and INTERPOL rules, analysis of multiple databases, and ongoing

interaction with domestic and foreign partners.

NCB Canberra is also the EUROPOL National Contact Point for Australia. It manages intelligence

enquiries for Australia’s state and territory police and Home Affairs portfolio agencies to and from

EUROPOL and member countries across a range of priority crime types.

The AFP maintains officers seconded to INTERPOL and EUROPOL headquarters to support and

progress international collaboration and operational effectiveness.

AFP Annual Report 2019–20 Overview of the AFP

17

AFP Sensitive Investigations Oversight Board

On 21 October 2019, Commissioner Kershaw announced the engagement of Mr John Lawler AM APM

to conduct a review, under four terms of reference, of AFP management of sensitive investigations,

to ensure efficient and effective handling of those investigations by the AFP.

On 14 February 2020, the report of the Review into the AFP’s Response to and Management of

Sensitive Investigations (Lawler Review) was publicly released. It set out 24 options designed to

enhance the way the AFP receives, identifies and manages sensitive investigations. The Commissioner

agreed in principle to implement all of these options.

As a result of the Lawler Review, the AFP has adopted a new definition of sensitive investigation.

This allows the AFP to escalate investigations identified as requiring additional supervisory and senior

executive oversight and decision-making. Another new measure implemented in response to the

review is the establishment of the Sensitive Investigations Oversight Board (SIOB), chaired by the

Deputy Commissioner Investigations. The SIOB oversees the most sensitive investigations, which are

deemed to require additional oversight.

As part of its commitment to continually improving how it communicates with stakeholders, the AFP is

ceasing to use certain investigative terminology that creates ambiguity. The term ‘referral’ has been

replaced with ‘report’ and ‘request’. The words ‘evaluation’ and ‘assessment’ will cease to be used.

The AFP is also focusing on considerations of harm, impact, efficiency and opportunity when

prioritising investigative activity.

Counter Foreign Interference Taskforce

The AFP has made significant progress since the commencement of the initial funding and the

establishment of the Office of the National Foreign Interference Coordinator. This includes the

establishment of both capability and capacity in response to espionage and foreign interference

legislation and in accordance with the government’s strategic intent of target hardening the Australian

environment to hostile foreign actors.

The AFP has established dedicated teams in Canberra, Eastern and Southern Commands to give full

effect to the espionage and foreign interference legislation and in support of the

whole-of-government intent.

High-risk terrorist offenders

Operational demands on the AFP and its partners have increased due to the requirement to manage

and monitor the reintegration of convicted high-risk terrorist offenders into the community upon their

release from prison.

Over a four-month period in 2020, five men were released from custody following their imprisonment

for foreign incursions offences. In the lead-up to completing their head sentences, the threat posed by

each individual was assessed by the AFP and its law enforcement and intelligence partners, and

appropriate risk mitigation strategies were developed. This included the AFP and state and territory

AFP Annual Report 2019–20 Overview of the AFP

18

agencies contributing to Continuing Detention Order considerations by the Department of Home

Affairs, as well as concurrent efforts to develop Control Orders for each person. This required ongoing

complex planning involving multiple jurisdictions, further compounded by the relocation of one man

to a third jurisdiction several days after his release.

The Federal Court granted interim or confirmed Control Orders for each of the five men. The AFP

engages with its state and territory partners to monitor compliance with Control Orders, including by

executing monitoring warrants and enforcement aspects of the orders, as the risk to the community

posed by released offenders is a shared responsibility for all entities that maintain community safety.

Operation Silves: brothers sentenced to 36 and 40 years imprisonment

In July 2017, the AFP led a multi-agency counter terrorism investigation in Sydney relating to an

alleged attempted attack involving a plot to conceal an explosive device on an Australian

commercial aircraft.

The successful operation was a New South Wales Joint Counter Terrorism Team investigation, which

consists of the AFP, the NSW Police Force, the Australian Security Intelligence Organisation and the

New South Wales Crime Commission. The operation involved the Australian Border Force and foreign

law enforcement partners as well as sworn officers and professional staff members from across

the AFP.

Two brothers were charged with serious offences that carry a maximum penalty of life imprisonment.

In December 2019, the two brothers were sentenced to 36 years and 40 years imprisonment for

conspiracy to commit other acts done in preparation for, or planning, terrorist acts.

Operations The Deputy Commissioner Operations (DCO) oversees the AFP’s regional commands, which provide

frontline resources in each capital city of Australia and work closely with our state and territory

counterparts and capability development hubs. The regional commands are structured in four groups:

Eastern Command, Southern Command, Western Central Command and Northern Command. The

DCO is also responsible for the AFP’s specialist protective services for Commonwealth infrastructure,

designated high office holders, dignitaries and witnesses.

Snapshot of achievements

The DCO’s portfolio contributes to operational performance criteria—refer to Chapter 3,

‘Annual performance statement’ for more details.

AFP Annual Report 2019–20 Overview of the AFP

19

Performance highlights

Aviation security enhancement program rolls out the Protection Operations Response Teams

The AFP’s $107 million Aviation Security Enhancement Program (ASEP) is building 17 Protection

Operations Response Teams (PORTs) over a four-year implementation period from 1 July 2018 to

1 July 2022. These teams will be based at Australia’s nine designated airports. They are supported by

enhancements to aviation-focused intelligence, forensics and training capabilities, and additional

police to supplement the counter-terrorist first response capability already provided by the AFP.

To date, there are PORTs active in the Sydney, Melbourne, Brisbane, Gold Coast, Canberra and Perth

Airports as part of the ASEP.

The role of the PORTs is to detect, deter and, in the worst case, minimise the impact of a terrorist

incident at one of Australia’s nine designated airports. PORT members are trained in the use and

carriage of short-barrel rifles (SBRs), behavioural assessment, hostile reconnaissance detection and

incident management. The teams include rapid appraisal officers and canine handlers with firearm and

explosives detection dogs, and together they provide a highly visible deterrent for those intent on

committing acts of terrorism or criminality.

As part of the PORT capability, the Protection Operations SBR Project and associated working group

were launched in December 2019. The working group coordinates the SBR capability across AFP

Aviation, Protection, and Close Personal Protection (CPP) and is responsible for delivering SBR-related

training, governance, procurements, logistics and infrastructure upgrades, operational support,

stakeholder communications, and research and development. Over the last six months, the working

group has achieved significant results, including:

● training 67 members across the AFP

● helping to maintain the SBR capability at Parliament House

● delivering armoury upgrades across Aviation and Protection and identifying alternative ballistic

options designed specifically for SBR operators.

The combination of equipment, training and recruitment activities provides the AFP with both new and

enhanced capability that keeps the travelling public and PORT members safe. In the event of a critical

situation, teams have a use of force option that can be deployed effectively from a distance.

The capability augments the existing airport uniformed police with teams working together to protect

Australian airports.

Operation Regatta

Operation Regatta, led by the AFP’s Brisbane Fraud and Anti-Corruption team, has charged a man with

foreign bribery conspiracy offences after a detailed five-year investigation that revealed the alleged

bribery of public officials in Nauru.

AFP Annual Report 2019–20 Overview of the AFP

20

The operation centred on claims that the Australian director of the Radiance International group of

companies was using an international network of contacts to bribe foreign public officials in Nauru.

The bribes were allegedly paid to obtain access to the island nation’s limited phosphate resources and

export phosphate internationally for profitable margins.

In February 2020, the man pleaded guilty to two offences of causing bribes, totalling AU$129,500.

He will be sentenced on 30 July 2020. The maximum penalty for each of the offences is 10 years’

imprisonment and/or a fine of 10,000 penalty units, equivalent to AU$1.8 million at the time of

the offences.

Operation Bowmore Aqua

Western Central Command has a strong focus on innovative disruption techniques combating

emerging fraud relating to COVID-19 stimulus response packages. Recent Taskforce Iris investigations

into superannuation fraud have uncovered ongoing criminal activity by syndicates both domestically

and offshore.

Operation Bowmore Aqua is a Taskforce Iris investigation into organised cyber-enabled crime

associated with the federal government’s COVID-19 early release of superannuation economic

stimulus measure. While the matter is still under investigation, 107 victims have been identified

and the value of the fraud is estimated to exceed $1 million. The AFP has undertaken proceeds of

crime recovery action, restraining 166 false name bank accounts with funds totalling $226,044.

A further 98 bank accounts have been identified as being held in false names or otherwise linked

to the offending.

ThinkUKnow 2020 program and protecting children through COVID-19

The AFP’s ThinkUKnow education program aims to reduce the impact and incidence of online child

sexual exploitation in Australia. The annual program update of ThinkUKnow was launched in February

2020, coinciding with the release of Australia-first research from the Australian Centre to Counter Child

Exploitation (ACCCE) on community awareness of online child sexual exploitation. The research found

that only 21 per cent of parents and carers think there is a likelihood that online sexual exploitation

can happen to their child. The research also showed that the issue of online child sexual exploitation

remains stigmatised, with 21 per cent of parents and carers feeling that is too repulsive or sickening

to think about.

In response to the research findings, the targeted ThinkUKnow education program was redeveloped

for parents, carers, teachers and students. The launch of the updated program also marked the

beginning of the ThinkUKnow national training rollout, when members began to deliver training

nationally to more than 400 law enforcement and industry presenters. The rollout, an essential part

of the program, is providing volunteers and presenters with the updated ThinkUKnow presentation

package, which draws on ACCCE research and reporting.

AFP Annual Report 2019–20 Overview of the AFP

The COVID-19 pandemic resulted in the rollout being paused in March 2020. In response to this,

the AFP launched new at-home learning activity packs for parents and carers to address the challenges

associated with children spending an increasing amount of time online. Supported by real case

studies from the ACCCE Child Protection Triage Unit, the age-appropriate activities addressed online

supervision, personal information and inappropriate contact, safer gaming, smart usernames, and safer

online interactions.

The activity packs are part of a range of measures

developed by the AFP and ACCCE to address

increasing risk factors for online child sexual

exploitation during Australia’s response to COVID-19.

Other measures include:

● reaching parents, carers and teachers through

targeted ThinkUKnow digital education

● sharing and supporting key partner agencies’

social media content and messaging

● engaging with ACCCE operations and intelligence

to identify and respond to current trends

● a seven-day online safety challenge launched on

27 April 2020 by the Minister for Home Affairs, the Part of the home learning activity pack

Hon Peter Dutton MP, across various social media

platforms. Social media content promoting the challenge was viewed more than 2.3 million times

during the seven-day period and had a combined engagement of more than 130,000 comments,

reactions and shares.

Specialist and Support Operations The Deputy Commissioner Specialist and Support Operations oversees the close operational support

provided to frontline police. This includes training and development, intelligence services, forensics,

and technical and technological capabilities.

Snapshot of achievements

● Counter-drone technology was deployed at nine major events, with three disruptions and

six referrals to the Civil Aviation Safety Authority for further investigation

● Detection dog assistance provided to AFP investigations enabled the seizure of AU$2.39 million

in currency, 24.8 kilograms of drugs, and 19 stashes of explosives, firearms and ammunition

● The AFP mobile application Mobile Responder has reduced demand on AFP radio networks by

almost 1.9 million transmissions.

21

AFP Annual Report 2019–20 Overview of the AFP

22

Performance highlights

Police Improvement Initiative

The Police Improvement Initiative (PII) was established as a key part of achieving the Commissioner’s

priority to reduce red tape in order to deliver maximum operational impact to the criminal

environment. In February and March 2020, AFP members attended workshops held across the

commands in Australia, where they identified and discussed opportunities to improve the AFP and its

processes. These members represented police, protective service officers and unsworn staff from a

variety of ranks in the organisation, in order to accurately capture the issues that people face in their

day-to-day work.

Key themes that emerged from the workshops and subsequently became PII focus areas were:

● streamlining and simplifying delegations, authorisations and processes

● digitisation and automation of processes

● improving access to services and information via the official AFP iPhone.

Since the PII began, 61 initiatives have been actioned. Of these, as at 30 June 2020, 47 per cent were

complete, 44 per cent were in progress and 9 per cent were under assessment. Quick wins have been

delivered, directly reducing the time employees spend on administrative tasks and allowing them to

focus on operational priorities.

PROMIS Mobile supporting frontline policing

Built by the AFP for the AFP, PROMIS Mobile is now in its third year of operation and has seen

continued growth in both users and usage. An application of the AFP’s Police Real-time On-line

Management Information System, PROMIS Mobile gives operational members self-service capability

in the field. The AFP is now using PROMIS Mobile to conduct more than 18,000 person, vehicle and

location checks in the field monthly, with 10 per cent average monthly growth in usage. In an

operational capacity, this allows officers to conduct immediate checks, enabling queries and cases to

be solved more efficiently. Officers are conducting searches in the field rather than having to return

to the station to conduct them, which means they are equipped with the most up-to-date information

and warnings about people, vehicles and locations. Real-time information searches improve officer

safety in the field and free up airtime on the secure radio networks for priority 1 urgent

communications. As a result, more officers can be on the road, policing for a safer community.

In 2019–20 the AFP made a number of significant upgrades to PROMIS Mobile. These include enabling

users to view documents, border alerts and new notification feeds. The upgrades further support

frontline officers by increasing their situational awareness and access to information when responding

to an incident.

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Operation Natone: support for New Zealand following the White Island volcano disaster

On 9 December 2019, 47 people, including 24 Australian citizens and four permanent residents,

were on White Island, New Zealand, when a volcanic eruption occurred. In support of the Australian

Government’s offer of assistance, a team of six AFP members, an NSW Police Force member and

a Queensland Police Service member deployed to New Zealand to assist with disaster victim

identification and family investigative liaison officer efforts.

The forward-deployed members were supported by dozens of staff in an incident coordination centre

for Operation Natone, Australia’s support to New Zealand Police in response to the White

Island eruption.

The AFP’s specialist contribution supported the government’s objective to identify all recovered

deceased Australian victims. The team worked closely with all partner agencies, including via the

Australia New Zealand Policing Advisory Agency’s Disaster Victim Identification Committee.

This committee played a critical role in drawing together law enforcement partners and state coroners

to achieve the outcomes of the operation.

Deployed members worked closely with New Zealand Police to support the collection of ante-mortem

material from Australian families. These samples were sent to the AFP’s Majura forensics facility in

Canberra, where the Forensics Operations Centre coordinated and prioritised analysis.

Despite the conditions and volatile environment, all injured Australians were repatriated to Australia

and all recovered deceased Australian victims were identified within seven days of the incident.

AFP Chief Forensic Scientist and Operation Natone Operations Manager Dr Sarah Benson said:

As we know in these types of incidents we cannot undo the tragedy nor the pain and trauma that the

families are experiencing but we can ease the pain and provide support to the families by respectfully

restoring the victim’s identity and returning them to their loved ones. Each and every task, role or

function AFP members performed in support of Operation Natone contributed to achieving this.

AFP Annual Report 2019–20 Overview of the AFP

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K9 rises to the detection challenge

On 13 June 2020 the AFP received intelligence that

an unknown person was going to transit the Brisbane

Domestic Airport with an unknown quantity of

currency from a current inbound flight.

Members of the AFP, accompanied by a cash and

firearms detection canine, attended the flight arrival

and used the canine to screen passengers as they

disembarked. Alerted by the canine’s changed

behaviour in relation to a passenger, the handler

referred the traveller to other police officers for

questioning. During that questioning the person of

interest stated that he had a large sum of money in

his wallet. During further questioning he indicated

that he had more money in his suitcase, inside a

present, but did not state how much.

The canine then conducted a sweep of the person’s

luggage and sat, indicating that it had detected a known odour, in this case currency. AFP members

searched the bag and found a gift bag containing a parcel, which they unwrapped. Inside were two

cryovac bags, each containing approximately $50,000—totalling almost $100,000—cash. The person

subsequently assisted police with their inquiries.

Searching luggage post-detection

Office of the Commissioner The Office of the Commissioner provides executive support functions, focusing on policy and

engagement with a wide range of stakeholders including the community and government

mechanisms. It also incorporates strategy and performance, the AFP’s integrity framework and the

AFP’s recognition and ceremonial functions, as well as overseeing the Criminal Assets Confiscation

Command, which investigates criminal assets confiscation matters with Commonwealth partners.

Performance highlights

40th anniversary of the AFP

Throughout the year a diverse array of events took place to commemorate the AFP’s 40th anniversary,

enabling us to reflect on how our history has shaped us and will continue to shape us into the future.

Acknowledging our past, recognising our achievements and reflecting on lessons learned has made us

who we are today.

The 2019 AFP Legacy Charity Ball on 19 October, attended by almost 500 people, saw not only a night

of dining and dancing but also, more significantly, three members presented with the 40 Year Clasp to

AFP Annual Report 2019–20 Overview of the AFP

25

the AFP Service Medal. These members were on duty on 19 October 1979 when the AFP first

commenced operations. Held in the Great Hall of Parliament House in Canberra, the commemorative

ball was a chance to reflect on the organisation’s achievements over the past 40 years, and included

a video message of congratulations from Prime Minister Scott Morrison and an address by the

AFP Commissioner.

Other celebratory events included the ‘Stitched Up’

quilting project led by the AFP Museum. Launched

in November 2018, the quilt project tells the story

of the ‘fabric’ of the AFP, with each patch on the

quilts representing functions, investigations,

operations or milestones the AFP has achieved

in its 40-year history.

Morning teas, historical displays, commemorative

photos and reunions were held across the country

reflecting on the last 40 years of the AFP and looking

forward to another 40.

The longest-serving and shortest-serving

AFP members celebrate the 40th anniversary

Structu

re and operating model review

In 2019–20 the AFP commissioned Ernst & Young to review the structure and operating model

of the agency to better align with the AFP’s purpose, priorities and stakeholder expectations.

The Commissioner accepted all of the review’s recommendations in principle, and they have led

to a number of organisational changes throughout the year.

Significantly, the AFP has shifted to a regionalised command structure, and we are developing

capability hubs across the country. We have established the National Operations State Services Centre

and the Strategy and Performance Office, as well as creating the Chief Learning Officer portfolio.

Importantly, the review has helped define our organisational identity across national and international

policing, community policing in the ACT, and specialist protective services.

Successful forfeiture of drug trafficking and money laundering linked assets

In August 2019 the AFP-led Criminal Assets Confiscation Taskforce (CACT) obtained orders in

the Supreme Court of New South Wales forfeiting assets valued at approximately $5 million to the

Commonwealth. This marked the end of a successful investigation and was a significant litigation

outcome for the CACT, utilising powers under the Proceeds of Crime Act 2002 (Cth) to target property

held in Australia and offshore derived from serious criminal activity.

Operation Azoic, which produced this result, was an investigation of a drug trafficking and money

laundering operation of a dual national. The operation was referred to the CACT, which led to the

identification of assets including two properties in the eastern suburbs of Sydney, luxury vehicles,

numerous Australian and offshore bank accounts and a sizeable share portfolio.

AFP Annual Report 2019–20 Overview of the AFP

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The target of the operation used sophisticated means to obscure his illegally acquired wealth,

including offshore bank accounts and false name identities in which he held his assets.

CACT investigators traced money flows and assets to identify the proceeds of the offending and

to tie assets held in false names to the offender.

The CACT obtained restraining orders over the property in 2015. Search warrants were executed and

the person of interest was subsequently arrested and charged with multiple state and Commonwealth

offences. In 2017, he pleaded guilty to drug and money laundering offences and was sentenced to

17 years’ imprisonment.

Despite the guilty plea and the significant sentence imposed, the offender and his family members still

sought to challenge the Commissioner’s forfeiture orders, actively pursuing compensation and

exclusion orders relying on overseas evidence. The CACT successfully tested and challenged this

evidence through mutual assistance channels and with support from the Attorney-General’s

Department and offshore partners.

Ultimately the CACT was successful in ensuring that all of the property of the offender was forfeited

to the Commonwealth. The Court also ordered payment of the Commissioner’s legal costs.

Criminal Asset Confiscation Taskforce National Disability Insurance Scheme investigation and forfeiture

The National Disability Insurance Scheme (NDIS) Fraud Taskforce was established in July 2018

to investigate suspected criminal activity targeting the scheme. The taskforce is a multi-agency

partnership between the National Disability Insurance Agency, Services Australia and the AFP.

In December 2018 the taskforce commenced an investigation into the alleged fraudulent activity

against the scheme by a linked group of NDIS providers. The providers offered nursing, cleaning,

transport and home renovation services, variously lodging over-inflated invoices for their services

or not delivering the services at all.

In May 2019, a number of members of an

organised crime syndicate linked to this

fraudulent activity were arrested. In March 2020,

two members of the syndicate pleaded guilty to

defrauding the NDIS. The following month, the

AFP-led Criminal Assets Confiscation Taskforce,

having earlier restrained numerous assets bought

by the two syndicate members with the proceeds

of their fraud, successfully obtained orders under

the Proceeds of Crime Act 2002 (Cth) resulting in

the forfeiture to the Commonwealth of a Porsche,

a Mercedes-Benz and a Goulburn property.

The forfeited Porsche

AFP Annual Report 2019–20 Overview of the AFP

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Criminal Code and Crimes Act amended on child exploitation

The Combatting Child Sexual Exploitation Legislation Amendment Bill 2019 was passed in September

2019, with the final schedules commencing in March 2020. It amends the Crimes Act 1914 (Cth) and

the Criminal Code Act 1995 (Cth) to implement a number of recommendations from the Royal

Commission into Institutional Responses to Child Sexual Abuse to enhance protection of children,

increase reporting obligations and strengthen criminal offences concerning child abuse material.

These amendments modernise legislation to ensure it is comprehensive, technology neutral and future

focused. This includes addressing new and emerging technologies and trends, including child-like

sex dolls, which desensitise offenders and may lead to an escalation in offending. In January 2020,

a 30-year-old man was the first person in South Australia charged for possession of a child-like sex

doll under the new laws. The AFP and South Australia Police seized children’s clothing—including

school uniforms, swimwear and underwear—and a computer. The man faces a 15-year jail term

if convicted.

Chief Operating Officer The Chief Operating Officer manages the corporate functions of the AFP. This includes financial

management, human resources and legal services.

Snapshot of achievements

● Commenced work on a new state-of-the-art facility to serve as the new Victorian office

● Delivered mental readiness training to more than 1,600 AFP appointees, providing tools to help

them cope with stress and improve their mental health and resilience

● Created the learning command, demonstrating the AFP’s commitment to and focus on learning,

training and development.

Performance highlights

Launch of AFP Reserve

A need for a surge capacity across the country as the

COVID-19 pandemic worsened saw the launch and

rise of the AFP Reserve capability—former AFP

members providing invaluable assistance to boost

and enhance the AFP effort.

The AFP Reserve provides for a sustainable, adaptive

and flexible police reserve capability. Sworn members,

protective service officers and unsworn members have

registered to be part of the Reservist pool and may be

deployed across a range of duties on a casual basis.

AFP Commissioner Reece P Kershaw welcoming Reservists

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Reservists bring with them an average of 30 years’ AFP experience across international, national, and

state policing. They build on existing capability and provide support by assisting in matters that

require a depth of knowledge, in addition to providing a surge capacity where required to quickly

meet changes in the operating environment. This additional support to the AFP will ensure business

continuity and appropriate law enforcement presence in the community while continuing to fulfil

government obligations. AFP Reservists benefit from being re-engaged within the organisation,

providing them with the opportunity to serve their community.

The implementation of the AFP Reserve is being undertaken in a phased approach, with the first

commencing in April 2020. It is anticipated a pool of 200 AFP Reservists will be established by the end

of the 2020 calendar year.

As of 30 June 2020, the AFP Reserve pool was made up of 26 sworn members, six protective service

officers and 20 unsworn members. Twenty-two members have been placed in positions across various

work areas and locations including ACT Policing, Eastern Command, Crime Command, Western Central

Command, learning and development, International Command and Specialist Protection Command.

Taskforce Horizon

Taskforce Horizon is a strategic initiative to reshape and relocate the workforce in support of newly

established regional commands to increase the support of frontline investigations. Taskforce Horizon

delivers on the AFP Strategy for 2020 and Beyond to support and enable our people to deliver

maximum impact to the criminal environment.

From May 2020, Taskforce Horizon began rebalancing the AFP workforce. The primary objective is to

increase the AFP’s frontline investigative capacity and capability, commencing with Eastern Command

(Sydney) and Southern Command (Melbourne), which remain focal points for organised crime, child

exploitation and terrorism.

As part of the activities underway, Taskforce Horizon will address diversity and inclusion to ensure we

reflect our community. This will support us in delivering superior performance and meeting community

expectations of a modern police force.

AFP and partners facilitate shipment of 1.9 million protective face masks

The AFP and key partners have successfully facilitated the delivery of more than 1.9 million surgical

face masks into Australia to help protect the AFP and related agencies against COVID-19.

The AFP purchased 1 million of these face masks for use by AFP officers in frontline roles protecting

the community, including airport uniformed police and officers in ACT Policing. The other 962,000

masks in the shipment were purchased by the NSW Police Force, the Queensland Police Service, the

Western Australia Police Force and two state rural fire services to complement existing stocks for their

officers working to protect local communities.

AFP Annual Report 2019–20 Overview of the AFP

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Acting Chief Financial Officer Tarnya Gersbach described this as a prime example of how law

enforcement links with industry can directly benefit the Australian community:

The AFP has made this supply chain available to other policing, health and emergency-response agencies

across Australia, meaning they can ensure future imports of these essential products, certified by the

Therapeutic Goods Administration, directly from the source at fair market rates.

A major concern for all government agencies is the possibility of black-market or counterfeit goods

making their way to our essential frontline workers. The continuation of these supply arrangements

means all agencies involved can be confident that those working hard to protect our community are

getting the best protection we can provide.

AFP Annual Report 2019–20 Overview of the AFP

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Chief Police Officer for the ACT The Chief Police Officer (CPO) for the ACT oversees the community policing services arm of the AFP.

Through a purchase agreement between the AFP and the ACT Government, ACT Policing is

responsible for providing a high-quality community policing service. ACT Policing’s mission is to keep

the peace and preserve public safety. In 2019–20, the CPO role was elevated to Senior Executive

Service Band 3 to be commensurate with equivalent roles in state and territory police forces.

Snapshot of achievements ACT Policing:

● made 4,336 arrests

● attended 2,811 family violence incidents

● responded to 39,559 incidents

● made 6,090 referrals to community support agencies.

Performance Highlights

Body-worn cameras

With an investment of $2.695 million from the ACT Government, ACT Policing has now issued

body-worn cameras to 483 members and delivered training in using them. Body-worn cameras are

a critical investigation tool, creating an objective record of events, notable incidents and interactions

ACT Policing members have in the community.

Body-worn cameras assist with the collection of factual evidence and can reduce investigation times;

provide live-streaming of a crime scene to other investigating officers contemporaneously with victims

without exposing victims to the crime scene; and have had a notable effect of reducing behavioural

escalations when officers are speaking with possible offenders who know they are

being recorded.

Largest coordinated drug interception operation for ACT Policing

An ACT Policing led joint operation involving the NSW Police Force, the AFP and the Australian Border

Force identified a sophisticated concealment of cocaine inside an excavator shipped from South Africa

in mid-2019.

The excavator was intercepted at Port Botany (NSW) where an X-ray examination and physical

inspection of the excavator revealed the concealment of 384 one-kilogram packages of cocaine, with

an estimated drug harm index (refer to Chapter 3, ‘Annual performance statement’ for more details)

value of $252 million. The seizure is the largest ever drug interception operation coordinated by

ACT Policing, with the assistance of partner agencies.

AFP Annual Report 2019–20 Overview of the AFP

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Following a controlled delivery of the excavator in July 2019, two men were arrested by investigators

and charged with drug importation offences. The collaborative efforts of ACT Policing and other law

enforcement agencies resulted in a record amount of cocaine being removed from our streets and

a significant amount of harm to the community prevented.

ACT Policing transitioning to a new model of police service

In May 2019 the ACT Government announced the investment of $33.9 million over the next four years,

including more than 60 new ACT Policing personnel, to enable ACT Policing to commence

transitioning to a more visible, proactive and connected police service. Under the ACT Policing Futures

Program, ACT Policing is evolving in line with population growth and community expectations by

transitioning from a response-focused model to a more proactive, community-focused policing

service, centred on the disruption and prevention of crime. In working towards this model, the ACT

Policing Futures Program has been maintaining a focus on key process improvements and projects

to reduce red tape while supporting the front line.

Since July 2019, ACT Policing has established the foundation for the new model. This includes

commencing key project work such as the first stages of piloting new operational intelligence

capabilities, introducing new technologies, and recruiting and training the first of its new Proactive

Policing teams.

Working closely with ACT Government and community service partners, the Proactive Policing teams

will employ a variety of problem-solving techniques to reduce repeat calls for service and assist the

most vulnerable members of the ACT community. The first Proactive Policing team is scheduled to

start operating in 2020–21.

Enhanced partnerships through PACER

Understanding the importance of partnering with other agencies to achieve the best results for

the ACT community, in December 2019, ACT Policing, the ACT Ambulance Service and ACT Health

launched a tri-service mental health proof-of-concept capability, the PACER (Police, Ambulance

and Clinician Early Response) program.

Responding to mental health incidents is one of the most common tasks police perform, equating

to about 10 per cent of service demand. Where police would traditionally be the first responders

to a mental health call-out, the PACER capability provides a more holistic mental health response

consisting of a paramedic, a clinician and a police officer working together to attend call-outs

requiring a specialist mental health response.

PACER has been successful in keeping vulnerable people away from the hospital environment

and in the community, while saving a significant number of response hours for frontline services.

AFP Annual Report 2019–20 Overview of the AFP

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During the first 17 weeks1 of the proof-of-concept period, PACER:

● responded to approximately 300 cases

● was the first responder in 47.5 per cent of these cases

● enabled 81 per cent of patients treated to remain in the community rather than being admitted

to hospital.

The proof-of-concept has so far proven to be a success, resulting in mental health incidents being

dealt with in the most effective and efficient way possible through strong partnerships between

frontline services. PACER is seeing fewer involuntary apprehensions and presentations to hospital

and an increase in the number of people getting the help they need on the front line.

PACER’s proof-of-concept has been extended to continue through to November 2020.

1 From 12 December 2019 to 5 April 2020, including 68 shifts.

CHAPTER 3

AFP Annual Report 2019–20 Annual performance statement

34

Annual performance statement

Statement of preparation I, as the accountable authority of the Australian Federal Police (AFP), present the 2019–20 annual

performance statement of the AFP as required under subsection 39(1)(a) of the Public Governance,

Performance and Accountability Act 2013 (Cth) (PGPA Act). In my opinion, this annual performance

statement is based on properly maintained records, accurately reflects the AFP’s performance in

2019–20 and complies with subsection 39(2) of the PGPA Act.

Reece P Kershaw APM

Commissioner

16 September 2020

AFP Annual Report 2019–20 Annual performance statement

35

Purpose of the AFP The AFP purpose in the 2019–20 Corporate Plan is:

‘As Australia’s national policing agency, we protect Australians and Australia’s interests.’

During 2019–20 the AFP pursued this purpose through two Portfolio Budget Statements (PBS)

outcomes (see Chapter 2, Figure 2.2).

Outcome 1 addresses criminal security threats to Australian economic and social interests and

accounts for the majority of budgeted expenditure (see Figure 3.1). There are two programs under

Outcome 1: 1.1 Federal Policing and National Security; and 1.2 International Police Assistance.

Program 1.1 delivers policing services across a broad remit. Program 1.2 contributes to vital

international engagement and intelligence exchange, offshore policing and assistance; it reflects

the AFP’s role as Australia’s international police representative. Our level of engagement and priorities

under Program 1.2 vary depending on offshore events and Australian foreign policy. Delivery of

both programs is monitored and assessed through the performance criteria in Table 3.3.

Figure 3.2 illustrates an example of how the performance criteria relate to operational activity and

criminal methods in use for drug operations. It highlights the various data points and stages of

operational significance that the AFP targets and reports on in its performance framework for this

crime. It shows the links between AFP operational practice, strategy and priorities with aspects of

the performance framework.

Under Outcome 2 the AFP delivers policing services in the Australian Capital Territory (ACT) through

a service agreement with the ACT Government (see Figure 3.1). ACT Policing reports on the agreement

to the ACT Government (see the ACT Policing annual reports at www.police.act.gov.au/about-us/

publications). This year the annual performance statement includes more detail on ACT Policing’s

overall performance through inclusion of ACT Policing prevention and response case studies.

Performance criteria for Outcome 2 will be formalised in the 2020–21 PBS and the AFP Corporate

Plan 2020–21.

AFP Annual Report 2019–20 Annual performance statement

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Figure 3.1 Overview of AFP’s outcomes and programs for 2019–20

The AFP delivers Outcomes 1 and 2 under its establishment act, the Australian Federal Police Act 1979

(Cth), as well as a diverse range of other legislation. The legislation that relates to our work contains

many offence provisions, procedures and evidentiary standards. For example, the Commonwealth

Criminal Code alone has more than 500 offences, each outlining particulars of proof.

The Acts that operationalise and structure the AFP’s responsibilities, roles and discretionary powers

differ depending on whether the AFP is engaging in national security, protection, criminal

investigation, witness protection or community policing activities.

The specific investigative, policing and protection functions within these domains are in turn shaped

by everyday concerns such as the victim’s or offender’s age, mental health and ability to continue

offending or being victimised. Any AFP response must address these but also the community’s

acceptance of and confidence in the service and best practice in treating crimes.

AFP Annual Report 2019–20 Annual performance statement

37

To prioritise and design its response to these diverse requirements for engagement and activity,

the AFP uses a prioritisation model and steering documents such as the Ministerial Directions.

We used these to identify a number of operational priorities for 2019–20 (see Table 3.1).

The AFP seeks to deliver maximum policing impact in these priorities while balancing investment in

the health and longevity of the agency, promoting cultural and organisational health and addressing

agency capability (see AFP Corporate Plan 2019–20, pages 7 and 24). To this end, in 2019–20 the AFP

invested in several strategic initiatives, with progress made on all (see Chapter 2, Table 2.1).

Table 3.1 Operational priorities and associated performance criteria

Priority from Corporate Plan 2019–20 (page 9) Performance criteria

Countering terrorism Enforcement and prevention case

and case studies

studies; disruption count

Disrupting criminal networks Disruption count and case studies

Leading national responses to human exploitation Enforcement and and case studies prevention case studies; disruption count

Combating economic and serious crimes As above

Countering cybercrime As above

Protection of assets, persons and aviation Avoidable incidents and response times

Policing communities ACT Policing and Mission evaluations

Partnerships and collaboration are central to AFP operations. Domestic and offshore law

enforcement agencies, Commonwealth regulatory agencies and, increasingly, industry, academia

and non-government organisations work with the AFP to create and deliver tailored, targeted

solutions to criminal and security threats. By developing new and sometimes novel alliances, the AFP

is able to have maximum operational impact in its activities.

Within these partnerships the AFP can lead, coordinate, represent or support, taking on varying roles

depending on organisational, legal and operational imperatives. Sometimes the AFP’s response to a

crime or policing activity will involve a mixture of these roles, so staff need to be flexible and equipped

to engage in diverse and rapidly evolving situations.

The AFP’s key partners include agencies who jointly deliver whole-of-government policies (PBS-linked

programs) countering crime and protecting national security or Australian interests from criminal and

other threats (see Table 3.2).

In 2019–20, the National Operations and State Services Centre was established to enhance

state/territory liaison and offshore engagement.

AFP Annual Report 2019–20 Annual performance statement

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Table 3.2 PBS linked program partners

Linked PBS government programs AFP engagement

Australian Financial Security Authority (AFSA)

Program 1.1: Personal Insolvency and Trustee Services

AFSA’s data has been used to support:

● the case for legislative reform

● the AFP’s input into reviews of Australia’s compliance with proceeds

of crime aspects of international treaties (including the Financial Action

Taskforce Mutual Evaluation Review)

● estimates of the value of property to be forfeited under section 56 of

the Proceeds of Crime Act 2002 (Cth)

Australian Security Intelligence Organisation (ASIO)

Program 1.1: Security Intelligence

● Joint counter-terrorism operations use ASIO intelligence

Australian Taxation Office (ATO)

Program 1.1: Australian Taxation Office

●

●

●

Joint investigations by ATO and AFP

Operational cooperation and intelligence exchange

AFP membership of the Serious Financial Crimes Taskforce chaired

by ATO

Australian Transaction Reports Analysis Centre (AUSTRAC)

Program 1.1: AUSTRAC

and ● Intelligence exchange

Department of Foreign Affairs and Trade (DFAT)

Program 1.1: Foreign Affairs and Trade Operations

Program 1.2: Official Development Assistance

Program 2.1: Consular Services

● AFP international engagement

by DFAT programs

is strongly influenced

Department of Home Affairs

Program 1.1: Border Enforcement

Program 1.5: Regional Cooperation

Program 1.7: National Security and Criminal Justice

Program 1.9: Counter Terrorism

●

●

AFP executive and members are involved in a range of committees

and forums led by the Department of Home Affairs—from Senior Officer

Group, involving all state/territory police commissioners, to crime-specific groups covering topics like firearm registration and imports

AFP works cooperatively with Australian Border Force on a range of tasks

and intelligence exchange, especially illegal importations at the border

(airports, ports)

Department of the Prime Minister and Cabinet

Program 1.1: Prime Minister and Cabinet

● AFP is consulted on cabinet

of Home Affairs

submissions by the Department

Office of the Director of Public Prosecutions (CDPP)

Program 1.1: An independent service to prosecute alleged offences against the criminal law of the Commonwealth

●

Most AFP criminal cases are prosecuted by the CDPP

Australian Criminal Intelligence Commission (ACIC)

Program 1.1: Australian Criminal Intelligence Commission

●

●

●

●

AFP Commissioner chairs the ACIC Board

AFP members access various ACIC databases and reports as

duties—intelligence exchange

Joint operations

Fusion centres—secondments

part of their

AFP Annual Report 2019–20 Annual performance statement

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Partnerships with state, territory and offshore law enforcement agencies also feature in operational

taskforces, as some crimes require a whole‑of‑government, holistic response, and multi-agency

responses ensure that local operational action ties into and is influenced by larger national policy

goals. The AFP has involvement in multi‑agency taskforces such as Operation Sovereign Borders

(people smuggling); the Serious Financial Crimes Taskforce, led by the ATO and the National Disability

Insurance Agency Taskforce; and others focused on drugs, gangs, firearms and serious and organised

crime. These typically involve state police, Commonwealth agencies and/or foreign law enforcement.

The AFP also engages in country-specific policing taskforces like Taskforce Blaze (China), Taskforce

Storm (Cambodia) and Strike Force Dragon (Thailand).

Drawing on partnerships and legal arrangements, the AFP uses a mixture of operational strategies

to deliver prevention, disruption, enforcement and response outcomes2. Often during the course of

an investigation or activity more than one of these strategies are used.

2 Definitions of these concepts are available at www.afp.gov.au

AFP Annual Report 2019–20 Annual performance statement

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Results summary This annual performance statement shows that the AFP was successful in meeting its purpose in

2019–20. We achieved excellent results against a backdrop of the commencement of a new

Commissioner and the need for our involvement in responses to several natural emergencies.

Overall, in 2019–20 the AFP achieved most of its performance criteria (refer to Table 3.3). Figure 3.2

illustrates the range of performance results for a particular crime (drug importation), showing the

comprehensive and diverse ways the AFP combats and reports on this work though its quantitative

performance measures. Two were not met: community confidence and the prosecution acceptance

rate. However, we note that there were clear improvements in the community confidence result and

we just missed the target for the prosecution acceptance rate.

In the summer of 2019–2020, large parts of Australia were affected by devastating bushfires,

hazardous smoke, storms and heatwaves. In early 2020, we also faced the unexpected outbreak of the

COVID‑19 pandemic. AFP members were involved in supporting other services and doing non-routine

work during the period.

The COVID-19 emergency posed the greatest challenges and has had the most impact to date. At the

peak in mid‑April 2020, 400 AFP members worked on COVID-19 matters across Australia. During the

pandemic so far, AFP members have assisted more than 65,000 Australians who were returning from

overseas and going into hotel quarantine. COVID‑19 work altered as events unfolded. For example,

there were peaks associated with assisting the Department of Home Affairs to manage queues for

JobKeeper payments at Centrelink offices. Case studies on pages 61–62 give more detail on some

of our COVID‑19 work.

Our response times performance criterion measure was met despite having to escort returning

passengers to quarantine. For more information, see the discussion on this performance criterion

on page 63.

More generally, the COVID-19 emergency required the AFP to develop strategies to manage staff

health. For example, there was a need to organise personal protective equipment for staff; our

operational teams worked split shifts or remotely; and unsworn staff worked from home. Police duties,

including investigations, were influenced by travel restrictions and redeployments to COVID‑19 tasks.

There were changes in demand and altered criminal activity as movement of goods and people

slowed. Fortunately, few AFP members contracted COVID‑19. Despite facing many new challenges

in a changing and unpredictable environment, the AFP was able to maintain its usual operations

during the last quarter, showing its resilience and its ability to adjust and continue to work.

Detailed results are presented starting from page 44. Overall analysis and a financial performance

summary are on page 74.

AFP Annual Report 2019–20 Annual performance statement

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Table 3.3 Performance criteria in the 2019–20 PBS (Portfolio Additional Estimates

Statement (PAES) 2019–20)

Performance criteria Target Result Met

Program 1.1 Federal Policing and National Security

Community confidence 75% 69% No

Return on investment 1 Transnational: 10.3

Assets confiscation: 1.95

Yes

Prevention case studies Successful preventions Successful preventions Yes

Disruption case studies Successful disruptions Successful disruptions Yes

Disruption count 206 294 Yes

Avoidable incidents <2 0 Yes

Response case studies Successful response Successful response Yes

Response times

Priority 1

Priority 2

Priority 3

Priority 4

90%

90%

95%

95%

91%

91%

99%

100%

Yes

Yes

Yes

Yes

Enforcement case studies Successful enforcement Successful enforcement Yes

Prosecution acceptance rate 95% 94% No

Program 1.2 International Police Assistance

Mission/external territories performance evaluation Evaluations complete and recommendations addressed

Completed Yes

Return on investment 1 International: 46 Yes

Prevention case studies Successful preventions Successful preventions Yes

Disruption case studies Successful disruptions Successful disruptions Yes

The PAES updated the performance suite to ensure that the PBS aligned with the Corporate Plan.

AFP Annual Report 2019–20 Annual performance statement

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Figure 3.2 Measuring maximum impact on the criminal environment—

drugs/precursors 2019–20

AFP Annual Report 2019–20 Annual performance statement

43

AFP Annual Report 2019–20 Annual performance statement

44

Results for Outcome 1: Reduced criminal and security threats to Australia’s collective societal and economic interests through cooperative policing services

Program 1.1 Federal Policing and National Security performance measures and results

1.1 Community confidence

Source of criterion

PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 26

Result 2018–19 2019–20 Target Target achieved

61% 69% 75% No

In April 2020 the AFP commissioned a survey to gauge Australian community confidence in the AFP’s

contribution to law enforcement and national security (see Figure 3.3). The AFP engaged Colmar

Brunton to carry out the survey.

Of those surveyed, 69 per cent gave a high confidence rating (8 or more out of 10). While this did not

meet the target of 75 per cent, the result was significantly stronger than in 2019.

AFP Annual Report 2019–20 Annual performance statement

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Figure 3.3 Survey details

Confidence was similar across gender and age, although those aged 18–34 gave a rating of

60 per cent while those aged 75 and over gave a rating of 75 per cent. Nationality did make a

difference: Australian dual citizens generally expressed lower levels of confidence (a rating of

58 per cent). The ACT had the highest confidence score (83 per cent).

High ratings were based on general perceptions of the service like ‘the AFP did a good job’ or they

‘had trust in what they do’—28 per cent and 16 per cent respectively of high confidence rating

respondents said this. Few of these respondents were influenced by their personal interactions

with the AFP or how well they thought the AFP policed drugs or terrorism or handled the

COVID-19 pandemic. In contrast, almost half of those with low confidence levels said they lacked

knowledge of the service.

The survey found that generally people source information about the AFP from TV or radio news and

TV or radio current affairs programs: 74 per cent of respondents said they had used TV or radio news

and 85 per cent of respondents said they had used TV or radio current affairs programs. The next most

common source was online news websites at 57 per cent.

In 2018–19, respondents generally had low levels of knowledge about what the AFP does. In 2019–20

the results showed uneven knowledge. For example, when respondents were asked how they would

rate their knowledge of AFP responsibilities, 12 per cent rated their knowledge as high, the same as

last year; and 43 per cent rated it as low. However, when respondents were asked to list AFP

AFP Annual Report 2019–20 Annual performance statement

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responsibilities unprompted, 15 per cent of participants answered that they ‘didn’t know’—this figure

is probably more accurate than the 43 per cent. Further, when asked to nominate AFP tasks

unprompted, the free-form answers showed that respondents did know what the AFP did but there

was no shared or dominant view. The highest rated responsibility, ‘border protection’, interpreted as

dealing with drugs at the border, was identified by only 31 per cent of respondents. It seems people

know the kinds of things the AFP does, but there is no common shared view of our priorities.

This inference is supported by respondents’ responses when asked to rate the importance of various

AFP responsibilities. The survey listed our responsibilities and asked respondents to rate them from

low to very high importance. Of the nine responsibilities tested, seven were rated as ‘very important’.

Almost all respondents (96 per cent and 94 per cent) rated victim-based crime and terrorism as very

important; these responsibilities were given much higher ratings than our other responsibilities.

For example, 87 per cent of respondents rated the responsibility ‘dealing with organised crime

including illegal drug importation’ as very important; and 88 per cent rated ‘protecting international

airports’ as very important. This shows the challenge for the AFP in delivering work across a broad

remit: the community views most of the tasks we perform to be of similarly high importance. It also

reflects positively on the alignment between AFP operational priorities and community sentiment—

for example, counter-terrorism and leading responses to human exploitation were rated as ‘very

important’ and they were also operational imperatives in 2019–20.

The increased level of satisfaction may reflect the new Commissioner’s strategy of increasing media

engagement and communication. Media liaison officers have been appointed in the Eastern, Southern

and Western commands. We have increased the number of media releases we issue and we

proactively issue information on sentencing outcomes. We have also developed the AFP’s social media

presence. Media officers in the commands attend operational briefings so they can proactively identify

opportunities for media engagement and communication. The AFP now has Assistant Commissioners

in regions, and this has also increased media engagement. Assistant Commissioners are encouraged

to make themselves available for interviews, and they are taking more of these opportunities.

The Commissioner also identified and addressed key public relations issues such as the warrants

on ABC and News Corporation journalists in June 2019. He commissioned an independent review in

October 2019 of the AFP’s handling of sensitive investigations and has committed to making changes

in line with the review’s recommendations.

At a more granular level, we use community outreach through crime prevention activities to increase

community communication and engagement. This work may in turn influence community

confidence ratings.

In 2019–20 the AFP ran a sworn recruitment campaign. We conducted recruitment advertising

predominantly on social media and in all capital cities and larger regional centres (for example,

Bendigo, Dubbo and Shepparton). Staff also participated in school career expos. We wrote to all

private girls’ schools in Australia and asked them to include articles about our work in school

AFP Annual Report 2019–20 Annual performance statement

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newsletters as a way to bolster female recruitment. These awareness-raising activities should result

in an improvement in overall understanding of AFP activities and brand recognition.

1.2a Return on investment—transnational crime

Source of criterion

PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 26

Result 2018–19 2019–20 Target Target achieved

3.6 10.3 Positive return (i.e. >1) Yes

The AFP’s two return on investment (ROI) measures rate our efficiency in key types of work to show

public value. The first of these, the Transnational ROI, examines drug and financial crime work.

The Transnational ROI is based on drugs and financial crime investigations finalised within the financial

year, regardless of when the drug seizure or financial crime occurred. It is calculated by dividing the

saving in social harm by the costs (including staffing and legal) of these investigations. The AFP uses

two measures to calculate the Transnational ROI: the drug harm index (DHI) and the estimated

financial return (EFR):

● The DHI calculates the social harm that would have occurred had the drugs seized by the AFP been

consumed by the Australian community (see Figure 3.4). It estimates social harms depending on drug type; for example, the social harms caused by heroin are different to those caused by methamphetamine.

● The EFR calculates the social cost of financial crime by estimating the harm that would have

occurred if money involved in the crime had been retained by criminals and used for illicit purposes.

AFP Annual Report 2019–20 Annual performance statement

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Figure 3.4 Transnational return on investment calculation and social harm

The Transnational ROI result of 10.3 is significantly higher than last year’s result of 3.6 (see Figure 3.5).

The increase was driven by the finalisation of several drug investigations. This year two cases involving

particularly large drug seizures were finalised: Operation Sweeney/Jacaranda (Southern Command,

in which 876 kilograms of methamphetamine was seized, with a DHI value of $410 million); and

Operation Roselle (Eastern Command; 575 kilograms of methamphetamine; DHI value $164 million).

By comparison the largest DHI for a case finalised in 2018–19 was Operation Collage (Eastern

Command; DHI $190 million) and only three cases involved a DHI of over $100 million.

AFP Annual Report 2019–20 Annual performance statement

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Figure 3.5 Return on investment for transnational crime, 2015–16 to 2019–20

Relat

ively few financial investigations with large initial fraud estimates were finalised in 2019–20,

leading to a continued drop in EFR. This result reflects the fact that fraud matters are often progressed

by other agencies, given their increasing investigative maturity; the time taken for the AFP to

investigate; the relative priority of financial crime cases; and the increasing use of non-prosecutorial

treatments in this space. This last point in particular indicates that the financial component of this

result is an underestimate. Despite this, the performance criterion was still very clearly met.

The ROI is sensitive to operational strategy—for example, offshore police liaison may reduce a

syndicate’s illicit drugs imports into Australia, leading to fewer and smaller domestic seizures. This in

turn lowers the DHI. The ROI should alter with time and with the adoption of prevention and especially

multi-agency treatments and disruptions.

Since the AFP adopted its harm indexes, other agencies have developed similar indexes using varying

methodologies. The AFP updates its index components, but the frameworks have remained relatively

stable and focused on enforcement outcomes. The AFP examined other indexes over 2019–20 and will

continue to examine external developments for additional ways to report harm averted and ROI in

light of the AFP’s operationally diverse focuses and its need to maximise outcomes within the existing

AFP footprint.

1.2b Return on investment—assets confiscation

Source of criterion

PBS 2018–19 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 26

Result 2018–19 2019–20 Target Target achieved

2.7 1.95 Positive return (i.e. >1) Yes

Australia is committed to depriving those involved in organised crime of illicit wealth, and it is

a signatory to several international treaties that combat money laundering and terrorism financing

AFP Annual Report 2019–20 Annual performance statement

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and enable confiscations of the proceeds of crime. Under the Proceeds of Crime Act 2002 (Cth), the

Commissioner is a ‘proceeds of crime authority’ and the AFP plays a key role in targeting illicit wealth.

The Criminal Assets Confiscation Taskforce (CACT) plays a large part in investigating and identifying

possible proceeds of crime. The CACT, hosted by the AFP, is a multi-agency taskforce that brings

together investigators, forensic accountants, analysts and litigators in co-located teams around the

country. Participating agencies include the ATO, ACIC and AUSTRAC. The CACT also draws on the

expertise of the Australian Border Force and other domestic and international partners.

Money laundering and drug-related offences feature prominently in the criminality targeted by the

CACT. Where assets can be identified as either ‘proceeds’ or an ‘instrument’ of crime, the CACT may

take civil action to restrain those assets. Ultimately the assets are forfeited to the Commonwealth.

AFSA also plays a key role in the process by managing assets until liquidation and managing the

Confiscated Assets Account (CAA) on behalf of the Commonwealth. Once assets have been liquidated,

proceeds are credited to the CAA. With approval from the Minister for Home Affairs, funds in the CAA

may be used for a suite of crime prevention and law enforcement programs and measures.

The ROI for assets confiscation compares the value of confiscated assets from proceeds of crime

matters in 2019–20 with the costs of running the CACT (the investigation and criminal assets litigation

teams within the AFP, including secondees provided by the ATO and ACIC).

AFSA provides the realised assets values. It should be noted that these assets may relate to

investigations commenced in previous years or where the confiscation order was made in an earlier

financial year and the assets have been realised in a subsequent financial year or over a number

of years.

The ROI for assets confiscation is 1.95 against a target of 1. This is based on a total benefit of

$38.8 million of confiscated assets over costs of $20.0 million.

2.1 Prevention case study analysis—domestic (PAES Program 1.1) and international (PAES Program 1.2)

Source of criterion

PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 27

Result 2018–19 2019–20 Target Target achieved

Met Case studies below Successfully targeted crime prevention Yes

AFP Annual Report 2019–20 Annual performance statement

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One of the strategies the AFP uses to prevent offending that causes harm is to ensure that the crime

does not take place. To achieve the prevention performance criterion, the AFP:

● works to reduce anticipated victimisation of a person, place or thing

● works with potential offenders and vulnerable individuals to ensure they do not engage

in crime

● targets underlying social, procedural or system vulnerabilities that are likely to be exploited

● strengthens institutions, the rule of law and police legitimacy to ensure order is maintained,

enforcement occurs and the majority of citizens voluntarily adhere to the law.

Many of our prevention approaches are well known. For example, police are involved in school safety

and industry/consumer education. The Constable Kenny Koala and Foreign Bribery Network case

studies in this chapter illustrate these activities. Other approaches are less recognisable. Enforcement

can be seen as preventive because it has a downstream impact of deterrence in that effective

enforcement makes criminals less likely to offend. However, prevention can also be achieved through

preventive legal structures—for example, the National Sex Offender Registry and offences in the

counter-terrorism space where people commit crimes in planning an act—and by identification of

system vulnerabilities by investigative taskforces. Enforcement, disruption and prevention are closely

interrelated in policing.

Prevention is notoriously difficult to measure, so qualitative case studies are used to show processes

involved. Into the second year of this performance criterion, the AFP continues to examine ways to

show our impact and incorporate detection and preparatory offences. The case studies below show

aspects of prevention across Outcomes 1 and 2 during 2019–20.

Case study: Raising awareness of community scams

Scams are increasingly affecting our community, and the impact of scams on the Australian economy

can be devastating.

Scammers are opportunistic. They use many different types of scams—for example, we have seen

romance scams, investment scams and banking scams. Scammers particularly target people aged

over 553. They go to great lengths to ensure their content appears to be legitimate—they are able

to style their material to pretend emails are from banks, the ATO, the government or even police.

They will exploit any situation to their advantage. Even during national emergencies such as the recent

bushfires and COVID-19, scammers have been seeking opportunities. Over the past year scammers

sought to access bank account details by sending emails pretending to sell COVID-19 products online

or relay testing advice from the government. Scammers have even made phone calls to potential

targets pretending to be from the World Health Organization.

3 Australian Competition and Consumer Commission, ‘Scams Cost Australians Half a Billion Dollars’, Scamwatch, 29 April 2019. Available

at: www.scamwatch.gov.au/news/scams-cost-australians-half-a-billion-dollars

AFP Annual Report 2019–20 Annual performance statement

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To counter scams, the AFP and other agencies—for example, the Australian Competition and

Consumer Commission, through its Scamwatch newsletter, and ACIC—distribute public education

and information to ensure that messages about keeping safe from scams reach the right people

in the community.

The AFP continues to use press releases as a staple form of communication about scams. However,

since 2012, our social media platforms have become increasingly important in disseminating scam

prevention messages.

The AFP’s social media platforms offer an invaluable

two-way engagement with the community, and our

audiences have grown to over half a million. Younger

people in particular respond well to the interactive

and often humorous methods the AFP uses to

communicate its messages.

Most people will only ever have limited contact with

the AFP, engaging with it either as a passive viewer of

news bulletins about its work or as a victim, witness or

offender. Online engagement opens up a different

and increasingly effective pathway.

Case study: Bribery Prevention Network online hub to prevent foreign bribery

Companies that attempt to bribe foreign officials so that they can be treated favourably in an

international business transaction are committing a crime. The Australian Government has

international obligations to address and report on foreign bribery, and the AFP is responsible for

pursuing those matters. However, we are often faced with ingrained international business practices

that have normalised bribes and other distortions in private and government contracts or purchases.

For this reason, the AFP sees prevention as a key way to reduce this type of crime.

Education is key to combating foreign bribery, as it can lift standards among all types of businesses.

For this reason, in 2019 a new Bribery Prevention Network (BPN) was established. The BPN uses

education to improve the capacity and capability of Australian businesses to comply with foreign

bribery legislation and to minimise their risk exposure. It is a public–private partnership between

the AFP, government agencies, industry groups, civil society and a number of leading

Australian corporations.

AFP Annual Report 2019–20 Annual performance statement

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Bribery Prevention Network members include:

● Australian Federal Police

● Attorney-General’s Department

● Allens

● BHP

● Commonwealth Bank of Australia

● Global Compact Network Australia

● Transparency International Australia

● Westpac

The BPN is currently developing an online hub where Australian businesses, especially small to

medium enterprises, can access high-quality content, case studies and tools to help them prevent,

detect and respond to the risks of bribery and corruption. Many larger organisations develop their

own resources, but it is costly to maintain them and it is difficult to share them across the broader

business community. Smaller firms tend to lack resources to develop advice, leaving a key

sector vulnerable.

In May 2019 the BPN Steering Committee organised a government-hosted CEO roundtable involving

major Australian firms. The event raised awareness among senior business leaders of the importance

of avoiding foreign bribery and corruption and sought cultural change within industry sectors.

The BPN has also presented to Asia-Pacific Economic Cooperation (APEC) in Chile in August 2019,

the Organisation for Economic Co-operation and Development (OECD) Working Group on Bribery

in Paris in December 2019, the UN Global Compact Leaders Summit and a number of forums in

Australia. It has attracted significant interest from the international community for its approach in

making the private sector and governments accountable for the problem and identifying solutions

through collaboration.

The AFP’s involvement in the BPN assists in strengthening the rule of law; upholding the protection

of human rights; building confidence in public institutions; and safeguarding the most vulnerable.

It supports recommendations by the OECD Working Group on Bribery, showing the links of AFP work

to multinational policy efforts on fighting crime.

AFP Annual Report 2019–20 Annual performance statement

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Case study: Constable Kenny Koala helps to spread awareness of child safety

Since 1975, Constable Kenny Koala has been a key part of ACT Policing’s strategy to educate children

about dangerous or unsafe situations and how to seek help from police and support services.

Constable Kenny talks to young people

about things like protective behaviours,

how to deal with bullying, how to stay safe

online, how to deal with strangers, how to

make good decisions and how to look after

others. Children find Constable Kenny very

approachable, so he is able to build a

trusted relationship between police and

children in a friendly, non-threatening way.

Between 1 July 2019 and 19 March 2020,

Constable Kenny visited 19,618 students

across 946 classrooms; and attended 19 community events, engaging with families, parents, children

and other members of the community.

Constable Kenny has had to postpone his visits to community events and schools at this time because

of the COVID-19 pandemic. However, he is still using social media to spread education and awareness

among young people. For example, in March 2020 he released a video on ACT Policing’s Facebook

page to educate children on how to protect themselves against the spread of COVID-19. The video

reached more than 45,000 people. Constable Kenny is building a large social media presence—he has

Twitter and YouTube pages and his Twitter account currently has 985 followers. Between 27 March and

29 May 2020, he tweeted 18 educational activities and safety tips on his Twitter account.

To complement safety messaging delivered by Constable Kenny, ACT Policing, as part of the

ThinkUKnow education program, provides other age‑appropriate online safety presentations to

improve childhood protective behaviours.

Constable Kenny reflects the commitment of ACT Policing and the ACT Government to ensure the

safety of all vulnerable people in our community, including children. He helps ACT Policing to achieve

its mission of ‘keeping the peace and preserving public safety in the ACT’ through early

childhood education.

2.2 Disruption case study analysis—domestic (PAES Program 1.1) and international (PAES Program 1.2)

Source of criterion

PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 27

Result 2018–19 2019–20 Target Target achieved

Met See case studies below Successfully undertook disruption Yes

AFP Annual Report 2019–20 Annual performance statement

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The AFP’s disruption strategy is an important part of its crime prevention activities. Disruption involves

delaying, diverting or otherwise complicating the commission of crimes or the operations of a criminal

entity. Many different operational tactics and strategies can be used to effect a disruption.

Disruption can be used as a standard response to reoccurring crimes—for example, where officers

manage repeat drug importation attempts where drugs are concealed in imported equipment—

or they may be more tailored responses to a specific investigation or criminal threat if the AFP believes

that disruption is the best way to proceed in dealing with offending, especially if victims are at risk.

Disruptions may need to be used numerous times during an investigation given the resilience of

criminal groups. As disruptions often occur during investigations, they are often seen as linked

to enforcement activities, but they may occur outside a case as a generic response to a crime—

for example, cancelling visas for travelling sex offenders.

Disruptions can also be the most appropriate response when securing a successful prosecution in

Australia may not be feasible or cost-effective. Also, for some crimes it is better to use disruption to

interrupt harm and prevent it from continuing—for example, in human trafficking, counter-terrorism,

drug imports and instances of anonymous but trackable offending.

Some of the AFP’s domestic and international disruption activities are discussed in the following

case studies.

Case study: Joint Counter Terrorism Team disrupts domestic terrorist activities

The Joint Counter Terrorism Teams (JCTT), comprise the AFP, ASIO and state and territory police

agencies, who work collaboratively to disrupt potential terrorism threats. In NSW, this includes the

NSW Crime Commission. JCTTs work closely with other domestic law enforcement and intelligence

agencies and with the AFP’s foreign law enforcement partners to identify and investigate terrorist

activities in Australia including planning terrorism acts, and support to or financing of terrorism.

The primary object is the safety of the community and an emphasis is on preventative operations.

The JCTTs are part of a comprehensive national response to CT threats where state and terrorist police

and emergency response agencies have operational responsibility for first response to a terrorist act.

In December 2019 the NSW JCTT became aware that a man had been creating and posting

increasingly extremist material on social media. He had also downloaded a document on weapons and

tactics, and the JCTT believed that the information in it could have been used to facilitate a terrorist

act. After the JCTT’s investigation, the man was charged with acts done in preparation for or planning

a terrorist act, membership of a terrorist organisation and advocating terrorism. The JCTT also believes

he actively attempted to influence teenagers to adopt and act upon his extremist views.

Despite the challenges involved in investigating people who are operating in an online environment,

the JCTT has remained committed to protecting the community from extremist ideologies, with

community safety the prime consideration of all JCTT investigations.

AFP Annual Report 2019–20 Annual performance statement

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Case study: International disruption—online child sexual exploitation

In cases of online child sexual exploitation, protection of children is the key goal. Disruption is an

appropriate mechanism to use in these cases because it ensures the immediate safety of the children

and limits the harm caused by their ordeal.

To help to disrupt child sexual exploitation in the Philippines, the AFP is involved with the Philippine

Internet Crimes against Children Center (PICACC), which enhances the global response to online sexual

exploitation of children. The PICACC operates as a cooperation between Philippine and international

law enforcement bodies and the non-government sector. Between its inception in February 2019 to

30 June 2020, the PICACC has conducted 58 operations, arrested 53 suspects and rescued 194 child

victims. AFP Manila Post holds positions in the PICACC Donor Board of Management and Operations

Coordination Group, which enables it to influence the strategic direction of the PICACC and helps to

develop its capabilities to address online sexual exploitation of children at the source.

In 2019–20 a referral generated by the Tasmanian Joint Anti Child Exploitation Team was sent to the

PICACC. The PICACC worked with the Philippine National Police, the Women and Children Protection

Centre and the Mindanao Field Unit (MFU) to investigate the referral. As a result, one facilitator of

online sexual exploitation of children was arrested and 13 victims were rescued. AFP Manila supported

the MFU deployment with logistical and funding support. Evidence obtained from the Philippine

resolution may enable additional charges to be laid in Australia.

The arrest and prosecution of these offenders led to their being held accountable and potentially

punished for their crimes. By removing victims who were being used in the production of online

abuse material, police also disrupted the business model and ongoing harm to these and other

potential victims.

Case study: India and Australia work together to prevent drug importation

In 2019–20 the AFP was involved in multiple disruptions of a transnational organised crime syndicate

that was exporting cocaine and methamphetamine from India and other countries to Australia.

The group was later assessed as being part of a larger transnational organised crime syndicate with

connections to Nigeria, Canada, the United States and Australia.

On 3 April 2019, 200 kilograms of methamphetamine was seized in Melbourne, having arrived via air

cargo from Canada. A person using an Indian contact number was attempting to collect the

consignment. The AFP post in New Delhi shared information relating to the drug seizure with the

Narcotics Control Bureau (NCB) in India, who commenced an investigation in conjunction with the AFP,

the United States Drug Enforcement Administration (DEA) and the Royal Canadian Mounted Police

(RCMP). The NCB identified a further two consignments that had been sent to Australia and had

already been delivered, and a third consignment that was intercepted in the United States.

The NCB later arrested and charged an Indian person and their accomplice in connection to

these importations.

AFP Annual Report 2019–20 Annual performance statement

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On 12 June 2019, a shipping container arrived into Sydney from India. It contained 110 blocks of

cocaine concealed within a plasma cutting machine. The estimated gross weight of the cocaine was

55 kilograms. Those responsible for the shipment were identified, additional quantities of cocaine that

were assessed as being destined for Australia were seized in India, and seven persons were arrested for

their involvement in the matter.

Investigation by the AFP identified links between the syndicate and other drug shipments, including

the seizure of 200 kilograms of methamphetamine at Brisbane Airport. The syndicate is estimated to

have undertaken 60 cargo importations between October 2018 and October 2019. An AFP investigator

and an ACIC analyst travelled to India in December 2019 and in collaboration with the NCB, DEA and

RCMP further built and enhanced intelligence holdings relating to the group, with a view to effecting

further disruptions and arrests.

Each disruption has damaged the effectiveness of the syndicate and has reduced the impact and harm

to the Australian community. Information sharing and ongoing collaboration between the AFP and

our overseas law enforcement and intelligence partners was the key to the ultimate success of the

operations and furthers the AFP’s goal to combat transnational serious and organised crime. This case

reflected improvements in sharing operational information and intelligence between the AFP and

partner agencies on a police‑to-police basis.

Case study: AFP disruption activities prevent methamphetamine manufacturing

In 2019–20, joint cooperation between the AFP and other law enforcement agencies led to the

disruption of a group seeking to produce methamphetamine in Australia. Enforcement for immigration

offences served as an effective tool to disrupt a potential drug enterprise, illustrating the interplay

between disruption and enforcement.

In May 2018, Chinese authorities informed the AFP’s Guangzhou office that they suspected several

people were travelling to Australia to establish a clandestine methamphetamine lab in Sydney.

The AFP in Australia began to investigate. The AFP identified a concurrent Australian Border Force

(ABF) investigation into the importation of precursors, which was assessed as linked.

Potential domestic production of methamphetamine is primarily a state police matter. However, once

people begin to produce methamphetamine, significant quantities of border-controlled precursors are

required in the cooking process. This leads to the AFP’s involvement.

The then Joint Organised Crime Group (JOCG) in New South Wales, which consisted of members of the

AFP, the NSW Police Force, the ABF, ACIC, the New South Wales Crime Commission (NSWCC) and the

Department of Home Affairs, was advised of and progressed the matter. Cooperation with and

assistance from external agencies and the states was required throughout the investigation.

China imposes the death penalty for drug manufacture, so the JOCG had to consider whether the

death penalty would apply in the case. It found that, as the Chinese traveller had not offended in

China, death penalty considerations were not present.

AFP Annual Report 2019–20 Annual performance statement

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JOCG partners tracked the two suspects during their stay in Australia. The JOCG’s aim was to identify

and prevent the production of methamphetamine if and when the clandestine laboratory was

established; and prosecute those responsible. Its secondary aim was to disrupt organised criminal

activity. During the evidence collection process, the suspects did not undertake any criminal

drug-related activity.

However, one of the suspects was known to the NSW Police Force as an unlawful non-citizen from

Malaysia. That person was detained under immigration laws and deported. The other suspect

voluntarily left Australia without authorities’ intervention, using a one-way ticket.

With both suspects out of the country, the potential harm was removed. In the end, this investigation

resulted in disruption and enforcement outcomes. Immigration law was upheld while the departures

disrupted potential plans to establish a lab.

Case study: AFP and Australian Border Force disrupt human trafficking plan

When dealing with human trafficking, disruptions are often much more timely and effective than

pursuing legal action.

In February 2020 the AFP Human Trafficking team was informed that an Australian woman was at risk

of being forced into marriage with a man in Afghanistan. The team received the referral from the

non-government agency Shakti Migrant and Refugee Women’s Support Group.

The team assessed the woman’s risk as credible. It alerted the relevant offshore AFP post, which in turn

liaised with the ABF office responsible for issuing a visa to the Afghan man who was seeking to travel

to Australia in order to marry the woman. The ABF considered the circumstances of the case and

denied the man’s visa application. Through the straightforward act of cancelling a visa, potential

ongoing sexual abuse and harm to the woman was averted.

2.3 Disruption count

Source of criterion

PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 27

Result 2018–19 2019–20 Target Target achieved

246 294 206 Yes

The AFP recorded 2944 disruptions in 2019–20. Fifty-eight per cent of disruptions were international

and 42 per cent were national. The majority focused on drugs (34 per cent), cybercrime (29 per cent)

and child sexual exploitation (12 per cent). Small numbers of disruptions were related to other crime

types, including human trafficking, financial crime and terrorism.

4 Using the definition of disruption in performance criterion 2.2, disruptions are recorded in case notes in the AFP database and counted

for this measure.

AFP Annual Report 2019–20 Annual performance statement

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Results show that the primary benefit of disruption is to create efficiency by building relationships with

partners and reducing crime-related harm in Australia. The use of disruption is sensitive to the context

and particulars of an investigation and will reflect the mix of active investigations.

2.4 Avoidable incidents

Source of criterion PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 27

Result 2018–19 2019–20 Target Target achieved

1 0 <2 incidents Yes

A key objective of AFP Protection is to keep designated individuals like the Governor‑General,

the Prime Minister, other ministers and designated diplomats and foreign officials safe from acts of

terrorism, violent protest and issue-motivated violence. Protection is provided to them within Australia

and overseas. The AFP has a key role in protection, owning and leading this work.

The success of this effort is gauged by counting the number of avoidable incidents5 that occurred

in the reporting period.

There were no avoidable incidents in 2019–20. The AFP’s intelligence and risk assessments and

planning of events and personnel movement ensured this good result.

5 Avoidable incidents are incidents that could have been avoided through physical action, intervention or reasonable intelligence and

result in death, injury, loss of dignity or embarrassment to individuals and interests identified by the Australian Government or the AFP

as being at risk.

2.5 Response case study analysis

Source of criterion

PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 28

Result 2018–19 2019–20 Target Target achieved

Met Case studies below Successfully delivered Yes

response

The AFP’s emergency response role can involve it in domestic time-critical activities such as initial

drug seizures at the border; phone calls from vessels in distress; alarms at high office holder and

foreign diplomat premises; incidents at designated airports; and coordinating and participating in

counter-terrorism first response. The AFP can also assist other agencies in national emergencies such

as bushfires and COVID-19, as was the case in 2019–20.

The AFP’s emergency role can also be international, supporting other Australian and foreign agencies

with offshore liaison to return Australians home. The AFP may work alongside local police and the

AFP Annual Report 2019–20 Annual performance statement

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Australian Defence Force (ADF) to assist with offshore civil unrest. It can coordinate Australian policing

support to international emergencies created by regional natural disasters.

The AFP’s response role reflects our links to national policing, the Australian Government and

Australian interests. It differs from the state and territory police services emergency roles, which have

a range of publicly well-defined roles and avenues of contact.

In managing emergencies, governments invoke governing frameworks and committees that confer

specific and time-limited powers on agencies. The types of structures used alter with the type of

emergency and the location. In emergencies, the AFP often takes on a crucial support role, along with

other police services. It may receive evacuation powers or become responsible for security and law and

order around the emergency operation.

In 2019–20, in response to several unprecedented national emergencies, the AFP collaborated with

diverse partners; sustained its staff, maintaining their safety; and negotiated complex jurisdictional and

legal arrangements in order to contribute to keeping the community safe. We also worked alongside

partners like the ADF on Australian soil for the first time. The following case studies illustrate this

important stream of work.

Case study: AFP assistance during extreme summer bushfire season

The summer bushfire season of 2019–2020 was one of Australia’s worst on record. The fires were

accompanied by heatwaves and resulted in hazardous smoke pollution. ACT Policing was on the front

line in protecting the Canberra community during this time.

From December 2019, ACT Policing coordinated with the ACT Rural Fire Service and Fire & Rescue ACT

to deliver fire training and bushfire kits to officers before the bushfire season started. Training was

needed to update members’ knowledge and prepare them to respond to a potential bushfire situation,

especially as many members had not experienced the devastating 2003 Canberra bushfires.

By 22 January 2020, two fires burned in the suburb of Beard, close to Canberra Airport. Warnings were

issued and the airport closed for a day. The fire resulted in a number of buildings and vehicles being

damaged. ACT Policing managed traffic and road closures and prepared the community

for evacuations.

On 27 January 2020, shortly after these fires were extinguished, a major fire developed in Namadgi

National Park. By 28 January the fire was only 9 kilometres from Tharwa in the south of the ACT.

Emergency warnings were issued for Canberra’s southern suburbs and rural villages. With the fires

on each side of the New South Wales – ACT border, authorities worked around territorial divides to

provide a united response. Coordination and communication were crucial for an effective response.

On 30 January 2020, ACT Policing established a unified (multi-agency) command post at the Lanyon

Vikings Club in Tuggeranong, south Canberra. Teams of ACT Policing, Australian Defence Force (ADF)

soldiers and State Emergency Service personnel doorknocked more than 8,000 houses and apartment

AFP Annual Report 2019–20 Annual performance statement

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complexes in Weston Creek and Tuggeranong, and carried out patrols, road and traffic management

operations and public engagement duties to get citizens prepared.

As conditions intensified, on 31 January 2020 the ACT Government announced a State of Emergency.

This declaration activated a range of emergency provisions involving ACT Policing and the Chief Police

Officer and delegated authorities.

During the emergency, ACT Policing members worked out of the ACT Emergency Services Agency

(ESA) emergency command centre at Fairbairn, which was coordinating the emergency, with the

Chief Police Officer working alongside the ESA Commissioner. AFP representatives also attended

whole-of-government crisis coordination meetings involving the ADF, the State Emergency Service,

the Bureau of Meteorology, Emergency Management Australia, the Department of Human Services,

the Australian Communications and Media Authority, the Department of Home Affairs and the

Department of Agriculture as they planned response and anticipated recovery operations.

AFP members from outside ACT Policing were drawn on to assist with the response. The AFP also

provided additional technical resources—for example, AFP Forensics were deployed to a live fire scene

to assist with an investigation into suspicious activity, producing large maps of the affected region to

support the Police Forward Commander’s critical decision-making and utilising a mobile phone signal

reception booster that enhanced secure communications for emergency service members.

The fire was declared extinguished on 27 February. Our ability to cooperate with other services and

work under emergency management provisions assisted ACT Policing to respond to an erratically

unfolding emergency, keeping the Canberra community safe during a long and trying summer.

Case study: Operation Burdei—AFP assists key partner agencies to coordinate Australian evacuation response from Wuhan, China

In early 2020 the AFP played a part in organising a safe return home for many Australians trapped in

Wuhan, China, during the COVID-19 pandemic. Many who were in Wuhan at the time could not leave

because international airlines grounded flights and regional borders were closed. Operation Burdei

was set up to coordinate the evacuation. It commenced on 2 February 2020 and concluded on

4 March 2020, with 65 members deployed in teams consisting of AFP members and Christmas Island

community police officers.

The Australian Government organised chartered flights to collect 713 Australian citizens in Wuhan.

The AFP assisted the lead agencies, the ABF and the Department of Health, by providing public order

and security for those being transported and quarantined.

Before evacuees could return to the mainland, they had to first undertake a mandatory 14-day period

of isolation at designated quarantine facilities located at Christmas Island. Later other evacuees were

taken to Howard Springs in the Northern Territory. To do this, on 7 February the Northern Territory

Chief Health Officer used the Notifiable Diseases Act 1981 (NT) to allow the use of Howard Springs as

a quarantine site that restricted movement of those accommodated there. On 3 and 4 February 2020

the first two contingents of repatriated Australians boarded charter flights from Wuhan and made the

AFP Annual Report 2019–20 Annual performance statement

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journey to Christmas Island. The AFP had two officers on each charter. Similar evacuations occurred

to Howard Springs.

The AFP established and provided a continuous 24/7 security presence at both quarantine facilities

and liaised with stakeholders to deal with media and community concerns about the evacuations,

especially at Howard Springs. In addition, the AFP assisted with evacuating 170 Australians from the

Diamond Princess cruise ship, which was moored in Tokyo, and relocating them to the Howard Springs

quarantine facility. In doing this work, officers navigated different Acts and emergency provisions in

order to work alongside state police and other partners.

The planning and coordination required for an operation of this magnitude relied on ongoing

collaboration and active engagement with all stakeholders and partner agencies, as well as active

and careful management of staff. The COVID-19 emergency demonstrated the courage and

organisation of the AFP and its partners to ensure the safety and care of evacuees, officers and

the general community.

Case study: AFP assistance with COVID-19 response—Operation Protect

On 19 March 2020, in response to the COVID-19

pandemic, the Australian Government declared a

health emergency. The AFP launched Operation

Protect to help manage safety measures that were

put in place to contain the spread of the virus.

The AFP assisted with management of airport and

cruise ship arrivals and quarantine of Australians

returning from overseas. It also deployed members

to the Northern Territory Police Force to help

protect remote and vulnerable Indigenous

communities. It maintained a physical presence at

Centrelink offices (at the request of Services Australia) and at shopping centres and supermarkets.

It increased patrols to ensure that citizens adhered to social distancing measures and were complying

with lawful public health orders and government instructions. It also supported enforcement of state

border checks when requested.

AFP Eastern Command members escorted 32,936 people through Sydney Airport until the NSW Police

Force took over on 7 July 2020. Returning passengers underwent health checks upon arrival in Sydney

before being taken to hotels across Sydney. AFP teams of two to four members escorted each transfer.

Even though AFP members were operating at a high tempo and engaging with a significant number

of people and partner agencies, no member on this operation became infected with COVID‑19.

Eastern Command’s Operation Protect unified response will continue into the foreseeable future

as more Australians return home.

AFP members with the Royal Flying Doctor Services, Tanami Mine airport, NT

AFP Annual Report 2019–20 Annual performance statement

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AFP Northern Command has also had significant

involvement in the COVID-19 response. Strong

operational partnerships have developed between

AFP Brisbane Airport members and their Queensland

Police Service (QPS) colleagues. QPS members have

been working in airports to assist with serving health

notices and quarantine directives. Also, AFP Northern

Command and QPS worked alongside members from

Queensland and Commonwealth agencies in the

Brisbane District Disaster Management Group, which

operated from the District Disaster Coordination Centre

Emergency Operations Centre at Brisbane Airport Operations Centre (BAOC) available to the DDCC

Transport and Accommodation Planning Cell. The DDCC immediately moved all of their operational

staff into the BAOC, where they worked alongside the AFP’s Aviation Major Incident Room.

AFP Darwin office supported the Northern Territory Government’s state border and biosecurity

checkpoint at Darwin International Airport while maintaining their normal business activities.

Since the introduction of restrictions in March, Darwin office AFP members have been heavily involved

in processing all travellers arriving through the international and domestic airport gateways.

Since May 2020 the Darwin office has assisted with more than 340 flights, processed more than

5,500 passengers and crew with Northern Territory border arrival quarantining forms, and provided

58 escorts to quarantine hotels.

AFP Southern Command was also involved in the COVID-19 response, facilitating the arrival, screening

and quarantine of 21,582 international arrivals.

AFP Western Central Command was involved in the COVID-19 response relating to flight arrivals,

border vehicle checkpoints and biosecurity checkpoints, facilitating the arrival, screening and

quarantine of 6,814 international arrivals.

With COVID-19 still posing challenges, the pandemic-related work of all AFP teams seems likely

to continue into at least the near future.

(DDCC). The AFP made a large section of the

Screening passengers – Perth, WA

2.6 Response to aviation incidents within priority time frames

Source of criterion

PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 28

Result 2018–19 2019–20 Target Target achieved

Priority 1—93%

Priority 2—93%

Priority 3—100%

Priority 4—100%

Priority 1—91%

Priority 2—91%

Priority 3—99%

Priority 4—100%

Priority 1—90%

Priority 2—90%

Priority 3—95%

Priority 4—95%

Yes

AFP Annual Report 2019–20 Annual performance statement

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This performance criterion covers the AFP response at designated Australian airports: Adelaide,

Brisbane, Cairns, Canberra, Darwin, Gold Coast (Coolangatta), Melbourne, Perth and Sydney. The AFP

has set response time targets that depend on the priority level6 of the incident. Targets range from

priority 1, for life-threatening incidents, to priority 4, where there is no immediate danger.

Other jurisdictions that use response times as a performance criterion (New South Wales, Queensland,

Western Australia, South Australia and the ACT) aim to have between 80 and 90 per cent of their

priority 1 call-outs met within time targets of between 10 and 15 minutes7. The AFP’s target of

90 per cent is high compared with state targets, while the 10-minute time frame is also one of the

leanest. Despite this, the AFP exceeded targets in all priority levels, with results slightly lower

(2 per cent) than last year.

The AFP attended 703 priority 1 incidents in 2018–19. We were on target to have similar numbers of

incidents in 2019–20 until COVID-19 was declared a pandemic in March 2020. As can be seen in Table

3.4, Figure 3.6 and Figure 3.7, from April 2020 the numbers of incidents fell dramatically as travel

restrictions were imposed by state governments and airports were closed for holiday and business

travel.

Despite the impact of COVID-19 and increased focus on escorting passengers to quarantine, the

performance criterion was met. The AFP’s remit is to keep people safe by offering incident response.

It successfully did this despite the changing demand for the service.

Table 3.4 All aviation incidents, comparison between April 2019 and April 2020

Priority Average number of incidents per month

July 2019–March 2020

Incidents

April 2020

1 44 23

2 761 189

3 147 65

4 1,463 819

6 Priority level definitions:

1—Life-threatening or time-critical situation.

2—Situation requiring immediate AFP attendance but not life threatening.

3—No immediate danger to safety or property but where AFP response or attention is required. This is determined in consultation with

the complainant but, in any event, no later than 120 minutes from the initial contact by the complainant.

4—No immediate danger to safety or property but where police response or attention is required. This is determined in consultation

with the complainant but, in any event, no later than 24 hours from the initial contact by the complainant.

7 Productivity Commission, Report on government services 2019, Australian Government, Canberra, Ch 6.

Available at www.pc.gov.au/research/ongoing/report-on-government-services/2019/justice/police-services

AFP Annual Report 2019–20 Annual performance statement

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Figure 3.6 Airport incidents by priority, 2019–20

Figure 3.7 Priority 1 incidents across airports, 2019–20

2.7 Enforcement case study analysis

Source of criterion

PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 28

Result 2018–19 2019–20 Target Target achieved

Met Case studies below Successfully targeted crime

prevention

Yes

AFP Annual Report 2019–20 Annual performance statement

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The AFP conducts enforcement activities to compel compliance with laws, rules or regulations.

It investigates the commission of federal criminal offences (and other relevant offences) and assists

other regulatory/enforcement agencies to enforce their laws/regulations.

For the AFP, core enforcement activities include:

● undertaking investigations related to offences against the Commonwealth or national security

● providing community policing in Australia and internationally as well as carrying out peacekeeping

duties that operationalise criminal and community safety laws, leading to civil order and security

● actioning Commonwealth policing provisions contained in various laws and initiatives—

for example, child sex offender registration, INTERPOL, international alerts, assets confiscation

or mutual assistance

● responding to criminal breaches of court processes related to topics that the AFP is responsible

for—for example, family law and AFP investigations/prosecutions

● assisting other agencies to do their investigations or enforcement. AFP officers may assist

with warrants, interviews, surveillance and intelligence. The AFP may have powers that other

investigative agencies lack, so we can provide specialist policing services to help the agency

investigate. The AFP may also help another law enforcement agency to locate criminals and

return them to face charges/court in their home territory or help a regulatory agency to

enforce a decision by offering a police presence.

Enforcement is the most commonly recognised element of any police service. The ways it occurs,

its rationale and its goals vary, as do the social outcomes; these are shaped by the workings of the

criminal justice system. The AFP does not necessarily control the final social outcome. For example,

AFP members contribute to prosecution by investigating matters, but they do not control the next

and final steps of the process—prosecution, court and sentencing, where key social impacts and

outcomes are generated.

The case studies below illustrate the interconnected and multiple aspects of, and outcomes from,

our enforcement work.

Case study: Forty-one kilograms of cocaine seized as part of Operation Birdlip

In August 2015, 10 kilograms of cocaine was imported into Australia from California via air cargo.

In May 2016, a further 15 kilograms of cocaine with similarities to the August 2015 consignment was

intercepted upon arrival into Australia. Operation Birdlip was established to investigate

the importations.

On 2 September 2016, a 29-year-old Queensland resident and Rio Tinto executive was arrested by

the AFP at Sydney Airport following extensive investigations. It was alleged the man had tracked both

cocaine shipments intercepted by the AFP, both in Australia and from overseas. At the time of his

arrest, the executive was in possession of a Blackberry Curve mobile device encrypted with Phantom

AFP Annual Report 2019–20 Annual performance statement

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Secure software. He denied ownership of the device or the password to it. However, he later provided

the password to the AFP.

The following day, the AFP, using the Blackberry device, entered into communications with a person

who was later identified. These communications enabled the AFP to intercept a further 16 kilograms

of cocaine and arrest the new person and an accomplice following a successful controlled operation.

The three men pleaded guilty to their respective offences, receiving custodial sentences of between

four and nine years.

During the AFP’s investigation, links to suspects under investigation by the NSWCC were identified.

One of those suspects was a prominent US sporting identity. A subsequent investigation launched by

the US Federal Bureau of Investigation (FBI) resulted in the arrest of 22 persons. The NSWCC also

arrested an offender allegedly involved in 17 importations of cocaine into Australia. The collaborative

efforts of the AFP, NSWCC and FBI were key to dismantling this transnational criminal network.

Operation Birdlip was more complex than a typical parcel post investigation because the criminal

syndicate’s structure and discipline were particularly good. The AFP believes that the syndicate

facilitated multiple cocaine importations before it came to the attention of law enforcement.

Additionally, the use of encrypted communications made investigations more difficult and time

consuming. The acquisition of a Controlled Operation Authority, which enabled the AFP to covertly

engage an operational target, was key to the successful outcome.

Case study: IM-RAT malware distribution disrupted under Operation Cepheus

The AFP’s Operation Cepheus is investigating the development and sale of the Imminent Monitor (IM)

Remote Access Tool (RAT). IM-RAT can be used for illegal purposes and can give the purchaser

complete access to a victim’s computer. Once the RAT is installed on a computer, a remote user can

access and view documents, photographs and other files, record all the keystrokes entered and even

activate the webcam and microphone on the victim’s computer. All of this can be done without the

victim’s knowledge. The AFP investigation presented opportunities for both enforcement and

disruption outcomes.

Following information from the FBI and Unit 42 at Palo Alto Networks, a technology firm, in

December 2017, the AFP team began to investigate IM-RAT. Not all uses of IM-RAT are illegal and

owning a licence is not a criminal offence. However, the AFP found that this particular IM-RAT product

contained all of the features that show software to be malware.

The AFP investigation uncovered a network of individuals who supported the distribution and

use of the IM-RAT software across 124 countries. Sales records showed there may be more than

14,500 purchasers. IM-RAT was advertised via a website dedicated to hacking and the use of criminal

malware. A licence could cost as little as US$25 and little technical knowledge was required to deploy

it. The number of victims is unknown but estimates suggest that globally it could be in the

tens of thousands.

AFP Annual Report 2019–20 Annual performance statement

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AFP Cybercrime Operations shut down the software

supporting purchases from this website, thereby

preventing new crimes and victims. Between 25 and

29 November 2019 the AFP coordinated a global week of

action involving domestic law enforcement, EUROPOL and

EUROJUST, and law enforcement agencies in 16 countries.

Eighty-five search warrants were issued, there were

13 arrests and 434 items were seized. As a result of the

search warrants, AFP investigators identified evidence of

stolen personal details and are working to identify victims.

In the UK the operation led to a conviction of a Liverpool man who admitted to installing the RAT

on the devices of three unsuspecting women. He used the tool to hack the victims’ computers and

webcams to spy on and film them in compromising positions, including undressing and having sex8.

At the conclusion of the week of action, the AFP

organised a takedown notice to be posted on the

website selling Imminent Monitor. This significantly

disrupted users. A media campaign aimed at victims

of the software was released to provide guidance to

members of the public on what they should do if they

identified the software on their system. These preventive

measures assisted with educating the public as to the

effects of malware variants of this nature.

Domestically, person profiles on 18 domestic targets

were prepared and disseminated to state and territory

police along with lists of all Australian purchasers of the

tool. The NSW Police Force advised that they have issued formal warnings to 29 purchasers of the tool.

This operation sought prosecution through enforcement, but it also shows the interrelated mix of

strategies and outcomes the AFP uses in major cases, involving prevention, victim support

and disruption.

8 Tara Seals, ‘Liverpool Voyeur Used IM-RAT to Video Women at Home’, Threatpost, 8 January 2020.

Available at: https://threatpost.com/liverpool-voyeur-im-rat-video-women/151638

AFP officer conducing an in-field examination

Take-down notice posted on the website

AFP Annual Report 2019–20 Annual performance statement

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Case study: Operation Circinus intercepts major drug importations through Melbourne ports

In December 2019 three people were charged over Australia’s largest ever onshore methamphetamine

seizure, worth more than $1 billion.

During a sea cargo inspection at the Melbourne Container Examination Facility, ABF officers detected

the huge haul in vacuum-sealed packages concealed within stereo speakers that originated in

Bangkok. Operation Circinus, involving both the AFP and the ABF, was established to investigate

the matter.

As a result of investigations, the AFP charged two men (aged 37 and 38) and a woman (aged 37)

for being involved in importation of more than 1.6 tonnes of illicit drugs—equal to almost

16 million drug deals. In total, 1.596 tonnes of methamphetamine and 37 kilograms of heroin

(a total of 1,633 kilograms) were detected, with an estimated DHI value of $365 million and

$49 million respectively.

Operation Circinus was successful in identifying and removing serious vulnerabilities at the Melbourne

waterfront and effectively dismantling a drug importing syndicate.

2.8 Prosecution acceptance rate

Source of criterion

PBS 2019–20 (PAES) Program 1.1, page 65

Corporate Plan 2019–20 Page 28

Result 2018–19 2019–20 Target Target achieved

95% 94% 95% No

This measure examines the support the AFP provides to the workings of the criminal justice system.

In its second year, details for this measure are still being refined, given the complexity of how AFP

work supports the legal process and emerging data issues.

As a leading investigative policing agency, the AFP investigates a range of matters that will have very

different forms of engagement and pathways through the court and prosecutorial process.

Some offences are summary; others are indictment or indictment treated summarily. The ways in which

these different matters progress through court, the type of court that will hear the matter and the

common milestones that will be part of the case (such as first mention, committal, or contested

hearings if there is a non-guilty plea) will differ according to the matter. The timing of when and

whether an offender pleads guilty will also affect the prosecutorial process. Given this, there is

uniqueness and complexity in the prosecutorial process.

Compounding this, data issues have emerged. In the previous year, the AFP used a report from the

Commonwealth Department of Public Prosecutions (CDPP). However, that report covered only a small

fraction of AFP-related prosecutorial work. It covered matters where a brief of evidence is prepared

and submitted to the CDPP for assessment, and the AFP is seeking to secure representation before

laying charges.

AFP Annual Report 2019–20 Annual performance statement

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As members of a key investigative policing agency, AFP officers can and often do lay charges

autonomously, with arrests and other methods forming the bulk of their prosecutorial workload.

For example, in 2019–20, AFP National Investigations arrested 285 people, charging them with

891 counts of diverse offences—ranging from child protection to drug importation and money

laundering crimes, to name a few—relating to 224 cases. Similarly, at airports, AFP members arrested

225 people, charging them with 316 counts of various offences, relating to 221 cases. The majority

of these arrests led to court hearings, where a magistrate hears the charges and the CDPP represents

the AFP. In these matters the magistrate tends to decide whether the charges are suitable and there

is a case to answer.

Given such issues, for 2019–20 this performance measure examined the percentage of AFP finalised

cases that resulted in either a conviction or a discharge. As cases are counted, each case may have

more than one offender who could have been charged with multiple offences and counts of the same

offence. This data enabled a greater proportion of AFP work to be included in the measure, thereby

strengthening it. The quality of AFP briefs used in prosecutions is indirectly measured using the

assumption that adequate quality ensured the court process occurred, while matters the CDPP elected

not to argue were reflected in matters being discharged.

Of the finalised national (excluding airport) cases in 2019–20 that reached court, 94 per cent resulted

in a sentence and 6 per cent were discharged. This is a slight drop from last year and just misses the

performance measure target. As the measure uses finalised cases, these matters may relate to offences

committed outside the current year.

In addition, during 2019–20, 743 offenders whose cases related to AFP-led investigations

(not necessarily finalised cases9) went before court for sentencing. The AFP can pursue charges and

offences as part of other agencies’ court actions. Given this, this figure underestimates the sentencing

related to AFP investigations. For AFP-led non-appeal matters, the last quarter showed that the

majority of offenders entered guilty pleas (91.7 per cent) and that 50 per cent of the 10 matters

involving non-guilty pleas were won by the prosecution. Of those matters that were lost, four out of

five predominantly involved juries. Only 6.6 per cent of the sample ended up having a nil sentencing

result (for example, withdrawn or discharged). In this regard, the AFP continues to support the

prosecutorial process and holding offenders to account, with commensurate community benefits

of offender rehabilitation and punishment, and general deterrence.

9 With potentially many offenders in one case, there can be time delays between court sentencing dates for each of the offenders in an

investigation, as well as delays in closing the investigation after a sentence is handed down for one offender, due to administrative

processes or the need to keep the investigation active for other suspects.

AFP Annual Report 2019–20 Annual performance statement

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Program 1.2 International Police Assistance performance measures and results Disruption and prevention case studies are reported with domestic case studies under Program 1.1.

The remaining performance criteria for Program 1.2 are reported here.

1.2 Return on investment—international operations

Source of criterion

PBS 2019–20 (PAES) Program 1.2, page 66

Corporate Plan 2019–20 Page 26

Result 2018–19 2019–20 Target Target achieved

22 46 1 Yes

The AFP’s international operations ROI assesses one aspect of the work of international AFP posts—

international drug seizures where there was AFP involvement—against the cost of the AFP doing this

work. Estimates of costs include all operating and staffing costs of AFP international posts in 2019–20.

The value of the international drug seizures, or benefit, is measured by applying the DHI10.

This year the AFP’s international operations returned $46 for every dollar spent—substantially above

the target ROI of 1. This figure was calculated based on 23 tonnes of drugs and precursors, with a

corresponding DHI of approximately $6 billion, which were seized overseas by local police services

with AFP assistance during 2019–20, and AFP post costs of $145 million.

As was the case last year, the countries associated with largest overall seizures by weight were

Myanmar, China and the Netherlands. This reflects the strong and effective partnerships constructed

through the AFP’s international network.

The ROI has increased to 46 from last year’s figure of 22. This reflects operational strategy and

the crimes being targeted. Many posts in the Asia-Pacific continue to focus on prevention and,

increasingly, child sexual exploitation matters. This will affect the share of work involving drugs

and drug seizures. As only drug seizures are used in this ROI, these changes in the mix of cases and

operational focus will alter the ratio of AFP costs to seizures. The result for this performance criterion

still exceeds the target.

10 Australian Federal Police, ‘Return on Investment Methodology’ (web page).

Available at: www.afp.gov.au/about-us/publications-and-reports/return-investment-methodology

1.3 Mission/external territories performance evaluation

Source of criterion

PBS 2019–20 (PAES) Program 1.2, page 66

Corporate Plan 2019–20 Page 26

Result 2018–19 2019–20 Target Target achieved

See 2018–19 Annual Report Evaluation below

results Evaluations completed and recommendations addressed

Yes

AFP Annual Report 2019–20 Annual performance statement

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In 2019–20, internal mid-term reviews were conducted of the Solomon Islands Police Development

Program (SIPDP) and the Timor-Leste Police Development Program (TLPDP). In addition, a health

check was conducted of the Pacific Transnational Crime Network (PTCN).

Due to COVID-19, during the last quarter of 2019–20 the AFP trialled remote assessment methods.

These may be used for evaluations in 2020–21.

Solomon Islands Police Development Program mid-term review

The purpose of the SIPDP review was to:

● assess the adaptation of the program in the post Regional Assistance Mission

to Solomon Islands context

● consider progress against program goals so far

● provide advice to improve program outcomes

● prepare the program for an independent evaluation in 2021.

The mid-term review found that the first phase of SIPDP had been a success. In the first two years

of the program the Royal Solomon Islands Police Force had managed the largely peaceful national

general election in 2017. It had strengthened its specialist capabilities, including forensics, and

addressed corruption, which resulted in improved community confidence and trust in the force.

The SIPDP will now focus on ensuring the Royal Solomon Islands Police Force can continue to

sustainably strengthen its capacity. The findings of the mid-term review are already informing

decision-making for the future of SIPDP.

Timor-Leste Police Development Program mid-term review

The purpose of the TLPDP review was to:

● assess the program against the program’s design

● make recommendations on possible changes or improvements to program delivery.

The mid-term review showed that the TLPDP is one of the Australian Government’s successful flagship

programs in Timor-Leste. The establishment of the Vulnerable Persons Unit (VPU) in Dili and across the

districts was a high point. The VPU provides a safe and private space for victims—including children

affected by sexual and gender-based violence—to report crime.

The TLPDP has also created a strategic shift among Polícia Nacional de Timor-Leste (PNTL) leadership

towards favouring a community policing model, while a sustainable training model has proven

successful in providing the PNTL with capacity development opportunities. The review’s findings are

informing decision-making about the future of the TLPDP, as well as a recent aid quality check process

in partnership with the Department of Foreign Affairs and Trade.

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Pacific Transnational Crime Network review

The PTCN remains a major contributor to regional law enforcement efforts to combat transnational

crime in the Pacific region. The analytical capacity and potential of the Pacific Transnational Crime

Coordination Centre (PTCCC) is currently unmatched by any comparable regional mechanism.

The PTCN health check conducted in 2019 identified the value of secondments to the PTCCC to

enhance the capability of the PTCN and foster regional training capacity. Longer secondments

to the PTCCC are enabling greater opportunities to develop transnational crime and intelligence

expertise, while also serving to highlight how the network operates and regional differences.

The effect of this development has been strengthened by the relatively high status of the

Transnational Crime Units (TCUs) located in each participating nation. The skills and experience

developed at the PTCCC have been retained and have strengthened the capability of many TCUs in

the region. Some secondees said the PTCCC provided a ‘vehicle for teaching’ and that they valued the

opportunity to share their experiences with newer PTCN members. In this sense, the PTCCC provides

a way to draw on national intelligence and transnational crime capabilities for the benefit of the region

as a whole.

Results for Outcome 2: A safe and secure environment through policing activities on behalf of the Australian Capital Territory Government

Program 2.1 ACT Community Policing performance measures and results

Source of criterion

PBS 2019–20 (PAES) Outcome 2, page 68

Corporate Plan 2019–20 Page 6

Result 2018–19 2019–20 Target Target achieved

See ACT Policing Annual Report

The AFP has responsibility for providing policing services in the ACT. This year ACT Policing continued

to demonstrate its expertise in emergency management and ongoing work in crime prevention and

disruption. Whilst upholding the law in our capital territory, ACT Policing enjoys a high level of

community confidence and is able to maintain this via strong community ties and an innovative

approach to community policing. ACT Policing is also subject to the ACT performance framework

under the 2017–2021 Purchase Agreement for ACT Policing. Further information can be found in

the ACT Policing Annual Report, available at www.police.act.gov.au/about-us/publications.

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Financial performance The AFP’s $1,435 million departmental operating income for 2019–20 comprised $1,128 million

in government appropriation, $170 million from the ACT Government for policing services and

$137 million in other revenue. In addition, the AFP received $78 million in government appropriations

for departmental capital expenditure and $53 million in equity injections for specific initiatives.

The AFP also administered $8 million in expenses on behalf of the government in 2019–20.

The result for 2019–20 reported by the AFP is a departmental comprehensive loss of $114 million.

After adjusting for the impact of depreciation expense of $200 million and including the impact of

lease payments of $94 million and the revaluation of non-financial assets of $23 million, the AFP

recorded a deficit for the year of $31 million. The deficit was predominately a result of the recognition

of an additional provision in respect of unpaid superannuation, the procurement of protective

equipment in response to COVID-19 and the bushfires, and reduced leave taken by employees as

a result of COVID-19.

Audited financial statements showing the AFP’s financial position are in Chapter 5. The agency

resource statement is in Appendix C. Summary financial tables are in Appendix D.

Overall analysis The AFP continues its positive results and contribution to Portfolio Budget Statements Program 1.1

and 1.2 outcomes. Figure 3.8 shows the overall throughput of AFP cases for 2019–20. Despite

COVID-19 the AFP experienced only a small decrease in throughput this financial year (3,062 in

2019–20 compared to 3,416 in 2018–19). Within the case load, the AFP delivered highlights such as:

● delivering public value, as seen through positive return on investments

● successful and diverse enforcement, as seen in case studies showing support for community safety

and the workings of the criminal justice system

● reducing crime through prevention and disruption, as seen in case studies showing the diverse

ways the AFP contributes to public safety, often by interrupting criminal activities and bolstering

defences using enforcement frameworks and preparatory offences

● assistance during national emergencies in 2019–2020.

AFP Annual Report 2019–20 Annual performance statement

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Figure 3.8 Overall AFP cases throughput, 2019–20

While the AFP performed well this year, it had to contend with major challenges and emergencies.

This affected some of the performance criterion calculations and called for the service to alter work

arrangements and tasks. For example, officers were called on to escort people into quarantine.

They faced unknown health risks and emotional strain if those they were looking after were very ill,

but they still ensured their own and the community’s safety through protection functions.

Investigations were suspended as officers were re-tasked or could not progress matters due to travel

restrictions and physical distancing. In emergencies like the ACT bushfires, some members volunteered

to help while others stopped normal duties to be redeployed. The demand for and breadth of AFP

activities continued to increase and this financial year morphed into myriad challenges, compounding

the busy and complex work of national policing.

Despite overall strong performance, the community confidence target was not achieved. Although

there are clear reasons why the target is ambitious, the result shows improvement. The other

performance criterion not met was the prosecution brief acceptance rate, which has raised a number

of technical calculation challenges. The complexity and individuality of pathways for investigations

going before court raises data extraction issues which will require additional work in the coming year.

The ability to develop diverse and complex enforcement, prevention and disruption activities is key

to AFP performance. As seen in the case studies, these three factors are often associated and they

become part of the policing response, offering more practical tools and allowing tailored solutions.

The strong results in disruption and prevention work are often underpinned by the AFP’s international

liaison network, officer training and managerial recognition that some crimes (for example, human

trafficking) are at times more effectively addressed using disruption and prevention rather than

prosecution. Such decisions are taken in light of stakeholder consultation, the nature of referrals,

and outcomes for policing effort.

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Lessons for future performance In many cases the AFP is adopting a more flexible problem-solving approach to crime and referrals,

with clear operational and social benefits. This is particularly the case when dealing with juveniles or

matters where there is a need to address a crime and protect the community but the likelihood of

getting the matter to court is low.

Increasingly the AFP, like other police services, also needs to cooperate and work not only across

borders but also in different political and legal jurisdictions and even crime types. The performance

results show that the AFP is managing these relationships in a variety of situations.

With such diverse complexity, policing is an increasingly sophisticated and demanding business, often

challenging its personnel, processes and systems. This year was especially challenging, but the AFP

delivered. Our work on reforms and future-proofing over the last four years stood the agency in good

stead. The AFP will continue to invest in partnerships and cooperation, reforms aimed at efficiency and

general improvements outlined in the AFP Corporate Plan 2020–21 to maximise operational impact,

especially entering into a post‑COVID budgetary and geopolitical environment.

CHAPTER 4

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Management and accountability

Corporate governance

Key committee framework In late 2019, in response to the findings of both the Ernst & Young review of the AFP’s structure

and operating model, and the Review into the AFP’s Response to and Management of Sensitive

Investigations (Lawler Review), the current AFP governance structure was streamlined to increase

the link between strategy and performance, and align with the new organisational structure and

imperatives. This approach emphasises supporting strategic decision-making and governance in line

with the Commissioner’s intent, particularly the reduction of red tape, the facilitation of faster

decision-making, and an emphasis on data-driven performance monitoring. The previous committee

structure ceased operating in December 2019, with the new arrangements commencing from

January 2020.

The Strategy and Performance Board (SPB) is the AFP’s principal governing body, ensuring that

the strategic intent of the AFP is matched by the required level of organisational performance.

Strategic direction will be adapted in line with emerging operational and policy challenges and

informed by evidence-based performance monitoring.

The Commissioner’s Advisory Panel (CAP) provides independent, non-binding strategic advice to

the AFP Commissioner on non-operational matters. The CAP assists the AFP Commissioner to navigate

the AFP’s external environment and engage key stakeholders.

The Senior Leadership Committee (SLC) delivers strategic outcomes, based on the performance

standards set by the SPB. It monitors and reflects on changes in the operating environment and

recommends adjustments to strategy to maintain organisational momentum and performance.

In addition to the SPB and SLC, the AFP governance framework is supported by three portfolio-level

boards, which deliver on the strategy and priorities outlined by the SPB.

The Resource Management Board provides advice to the Commissioner and the SPB on the

management of AFP business resources to meet strategic and operational priorities. This includes

national coordination on strategic workforce, finance and budgetary matters.

The Investigations and Operations Board provides joint strategic oversight of the AFP’s investigations

and operations, including direction on crime and operational strategies and priorities, and on the AFP’s

responses to emerging threats and changes in the criminal environment. It ensures that there is

national and international coordination on investigations and that operational resources are aligned

with strategic priorities.

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The Capability Board advises the Commissioner and the SPB on the AFP’s current and future capability

requirements in support of the AFP’s vision and strategic priorities, to ensure the AFP is an effective

and innovative capability-led organisation.

Our committee framework is shown at Figure 4.1.

Figure 4.1 AFP key committee framework

Corporate planning and reporting The AFP Corporate Plan sets out our purpose, priorities, environmental context, activities, performance

measurement methods and management approach to risk engagement. It guides us in achieving the

results we have targeted. We update our Corporate Plan every year, ensuring it aligns with the

legislative requirements of the Public Governance, Performance and Accountability Act 2013 (Cth)

(PGPA Act), the accompanying Public Governance, Performance and Accountability Rule 2014

(PGPA Rule) and revisions to the AFP Ministerial Directions.

Along with the AFP Portfolio Budget Statements and annual performance statement, the Corporate

Plan is an integral part of our performance management and reporting cycle.

Progress and performance against our performance criteria as detailed in the AFP Corporate Plan

2019–20 appear in this report in Chapter 3, ‘Annual performance statement’.

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Internal audit The AFP delivers an annual Internal Audit Program that takes into consideration agency-wide and

organisational business unit risks, previous and proposed Australian National Audit Office (ANAO)

coverage, previous internal audit coverage and new initiatives. The program is approved by the

Commissioner and is delivered using in-house and external resources.

The AFP Audit and Risk Committee met seven times during 2019–20 and considered 15 internal

audit reports. Key areas examined by internal audits during 2019–20 included:

● access to and use of AFP information

● operational capabilities

● program management

● property.

The Audit and Risk Committee monitors the progress of recommendations listed in internal audit

and ANAO reports, through regular reporting. The Audit Committee Charter determines its functions.

A copy of the charter is available from www.afp.gov.au/about-us/information-publication-scheme.

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Table 4.1 Audit and Risk Committee membership and attendance, 2019–20

Member name

Qualifications, knowledge, skills and experience Number of

meetings attended / total number of meetings

Total annual remuneration

Mark Ridley Mark Ridley has served as the chair of audit committees for the AFP, the Australian Financial Security Authority, the Royal Australian Mint and private entities such as CO2CRC Ltd. Mark has also served as a member of the audit and risk committees for other Commonwealth entities such as the Department of Defence, the Australian National University, the Australian Electoral Commission, the Department of Human Services (Services Australia), the Department of Home Affairs and the Clean Energy Regulator.

Mark was previously a senior partner with over 20 years’ experience at chartered accounting firm PricewaterhouseCoopers, holding leadership roles with the firm in risk management and assurance.

7/7 $39,500

Carol Lilley Carol Lilley has held numerous audit committee roles for both the Commonwealth and ACT governments as well as being a special assurance advisor on the Commonwealth whole-of-government financial statements. Carol has held board positions for the Australian Financial Security Authority and private sector entities.

Carol was a partner at chartered accounting firm PricewaterhouseCoopers, with 20 years’ experience providing financial statement and internal audits, accounting advice and risk management.

7/7 $23,660

Philippa Godwin

Philippa Godwin PSM is a consultant providing advice in areas such as leadership, organisational design and public sector management. Philippa retired from the Commonwealth Public Service in 2013 after a career of almost 40 years in the areas of service delivery and design, program and organisational management, and change leadership and management.

Philippa’s roles in the Public Service included Deputy Secretary, Department of Human Services; Head of the Child Support Agency; and Deputy Chief Executive Officer and Acting Chief Executive Officer for Medicare Australia. In 2010 Philippa was awarded the Public Service Medal for leading major organisational and cultural change in a range of departments and agencies.

7/7 $10,500

Karl Kent Karl Kent OAM held the position of AFP Deputy Commissioner, Specialist and Support Operations. Karl’s portfolio delivered the AFP’s technical, specialist and scientific services in support of agency operations and investigations activity.

Karl was awarded the Medal of the Order of Australia for his contribution to the 2002 Bali bombings investigation.

Karl Kent was a committee member for part of 2019–20.

3/7 $0

Internal member

Leanne Close Leanne Close APM held the position of AFP Deputy Commissioner, National Security. Leanne’s portfolio was responsible for the AFP’s Counter Terrorism and Protection Operations directorates and its subsidiary Asia Pacific Group on Money Laundering.

Leanne was awarded the Australian Police Medal in 2005.

Leanne Close was a committee member for part of 2019–20.

1/7 $0

Internal Member

Sue Bird Sue Bird held the position of Chief Operating Officer and Chief Risk Officer for the AFP. Sue led the corporate and enabling functions that supported the operations of the AFP. Prior to this role, Sue was the AFP’s Chief Counsel and National Manager Legal.

Sue Bird was a committee member for part of 2019–20.

2/7 $0

Internal Member

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Risk management The AFP manages risks through its risk management framework. The framework enhances the quality

of the AFP’s decisions in complex and dynamic environments and allows the AFP to consider emerging

risks which may arise from developments in economic, technological, social, political or environmental

factors, including community expectations. It provides the AFP with a mature basis for engaging and

managing risk, contributing to innovation, efficiency and safety in the achievement of its objectives.

Throughout 2019–20 the AFP used the risk management framework reviewed and endorsed in

2018–19. Continuous improvement processes have identified some aspects of the framework which

could be enhanced, and will feed into a formal review in 2020–21. Potential improvements based on

lessons learned during the year largely relate to ensuring that systematic risk oversight is embedded

into key committees and business processes of the AFP.

At the agency level, the AFP manages eight broad risks which directly relate to its ability to achieve

its objectives. When engaged and managed well, these eight agency risks are also recognised

as significant opportunities to enhance the AFP’s outcomes and contribute to policing for

a safer Australia.

The eight agency-level risks relate to:

● the health, safety and wellbeing of AFP appointees

● AFP culture, standards and integrity

● achievement of operational outcomes

● partnerships and stakeholder engagement

● the ongoing effectiveness of AFP capabilities

● attracting, retaining, maintaining and effectively utilising a skilled workforce

● effectively managing the AFP’s resources, including finances

● effectively using, managing or protecting information.

In 2019 the AFP submitted a nomination for the 2019 Comcover Awards for Excellence in Risk

Management in relation to work undertaken to enhance its risk culture. The AFP’s submission was

shortlisted for the enterprise‑wide risk management category—for excellence in implementing risk

management frameworks, practices and processes across the entity. Feedback from Comcover

acknowledged the high calibre of shortlisted nominations and provided independent assurance

on the AFP’s risk culture initiatives.

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Fraud control The AFP promotes a culture of ethical conduct and does not tolerate misconduct and, specifically,

fraud and corruption. The AFP maintains a robust internal fraud control and anti-corruption framework

designed to prevent, detect and respond to fraud and corruption.

As a Commonwealth entity, the AFP maintains a fraud control plan and conducts fraud assessments

in compliance with section 10 of the PGPA Rule.

The AFP Fraud Control and Anti-Corruption (FCAC) Plan 2020 sets out our strategy for overall

management of fraud and corruption risks within, and against, the agency. The FCAC Plan applies

to all members, contractors and service providers, who are made aware of their individual roles

and responsibilities in fraud and corruption prevention, detection and response. The FCAC Plan

is consistent with the AFP’s professional standards framework.

Fraud and corruption risks are reviewed regularly. As part of its oversight and assurance role,

the AFP Audit and Risk Committee monitors the progress and effectiveness of the implementation

of the FCAC Plan.

Governance instrument framework The governance instrument framework is a collection of AFP governance instruments (including

Commissioner’s Orders and National Guidelines) and external agreements (including memoranda

of understanding). It is available through an AFP intranet portal. The governance instrument

framework contributes to the:

● achievement of AFP operational and administrative outcomes, consistent with AFP values and

the efficient and ethical use of Commonwealth funds and property

● security of the AFP

● professional standards of the AFP and procedures for addressing conduct issues established in

Part V of the Australian Federal Police Act 1979 (Cth) (AFP Act)

● legal compliance of AFP appointees in discharging their duties, including responsibilities

under the PGPA Act, Work Health and Safety Act 2011 (Cth) (WHS Act), Crimes Act 1900 (ACT), Crimes Act 1914 (Cth) and Privacy Act 1988 (Cth)

● management of risk

● effective delegation of statutory authority and powers.

More information is available on the AFP’s Information Publication Scheme web page:

www.afp.gov.au/ips.

Business continuity The AFP has a well-developed business continuity management framework. The framework includes

policies, systems and programs to assist the AFP to continue to operate effectively during unplanned

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disruptions to its staff, facilities, infrastructure or logistics. It assists in preventing, preparing for,

responding to, managing and recovering from the impacts of a disruption. This framework was revised

and updated during 2019–20 based on lessons learned when undertaking a live field exercise of the

AFP’s business continuity arrangements in late 2019.

The AFP has an appointed business continuity committee which convenes as a decision-making body

to assist AFP business activities to continue or recover in the event of disruption. The committee’s

activities are focused on the recovery of business outcomes once the disruption is contained. It utilises

the Incident Command and Control Structure Plus model to coordinate these activities. The committee

is supported by systems and capabilities which facilitate decisions regarding critical business activities

during disruption.

The AFP’s business continuity framework contributed to managing a number of disruptions in

2019–20, including bushfires and associated air quality hazards as well as the COVID-19 pandemic.

Ecological sustainability The AFP continues to be committed to ecological sustainability and to be recognised as a leader

across both government and industry.

One of many initiatives the AFP

undertook nationally in 2019–20

to address its environmental

sustainability was the CitySwitch

program. CitySwitch is an organisation

whose objective is to reduce the

environmental impacts of commercial

offices’ emissions from energy

consumption and waste management.

It showcases member organisations

that have demonstrated

environmental leadership and

recognises those that have improved,

maintained or achieved their National Australian Built Environment Rating System energy tenancy or

whole building rating and have reported significant energy savings.

CitySwitch activities must be both successful in their application and useful as models for other

organisations. In this regard, the work the AFP has done in reducing air conditioning energy use in its

computer centres and offices and embracing energy-efficient lighting is viewed as government

leading. Since rolling out its air conditioning recommissioning and efficiency program in October 2018,

the AFP has seen a reduction of over 50 per cent in energy consumption attributed to these systems;

this equates to approximately 480,000 kWh of annual energy.

The AFP receives one of its City Switch awards

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In 2019 the AFP was Victorian signatory of the year and national runner-up in the CitySwitch

category for offices over 2,000 m2. Underpinning these achievements was the AFP’s significant work

to reduce energy consumption in data centre cooling, which clearly demonstrated the value of

ecological sustainability.

External scrutiny

Auditor-General reports During 2019–20 the Auditor‑General conducted no AFP-specific audits or cross‑agency audits that

included the AFP.

Commonwealth Ombudsman reports Section 40XA of the AFP Act requires the Commonwealth Ombudsman to conduct at least one annual

review of the AFP’s administration of Part V of the AFP Act and report to parliament on the results of

those reviews.

The findings from the 2018–19 review are yet to be published and tabled before parliament; however,

preliminary discussions indicate that the Ombudsman will make a number of observations regarding

process improvements but no significant or systemic issues are expected to be identified.

The 2019–20 inspection due to commence on 20 April 2020 was postponed due to COVID-19

restrictions; this was rescheduled for 22 June 2020 and carried out in a shortened format.

The AFP continues to work closely with the Ombudsman’s office to ensure best-practice complaint

management in the AFP. The 2020–21 inspection is scheduled to commence on 19 April 2021.

Australian Information Commissioner decisions During 2019–20 the Australian Information Commissioner made four decisions concerning AFP

freedom of information requests. Three decisions were varied but did not provide the applicant

with greater access to information contained in the documents, and one decision was affirmed.

Freedom of information: Information Publication Scheme The Information Publication Scheme (IPS) created by Part 2 of the Freedom of Information Act 1982

(Cth) (FOI Act) requires Australian Government agencies subject to the FOI Act to publish a broad

range of information on their public website.

The IPS underpins a pro-disclosure culture across government and transforms the freedom of

information framework from one that is reactive to individual requests for documents to one that is

agency driven. More information is available on the AFP’s Information Publication Scheme web page:

www.afp.gov.au/ips.

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Judicial decisions and decisions of administrative tribunals In 2019–20 there were no judicial or tribunal decisions that had a significant effect on the operations

of the AFP.

Parliamentary committees In 2019–20 the AFP made submissions to, or appeared before, the following parliamentary committee

inquiries in relation to operations of the AFP:

● Parliamentary Joint Committee on Law Enforcement—examination of the AFP’s 2017–18 annual

report pursuant to section 7(1)(f) of the Parliamentary Joint Committee on Law Enforcement Act 2010 (Cth)

● Parliamentary Joint Committee on Intelligence and Security—review of the AFP’s functions

under Part 5.3 of the Commonwealth Criminal Code and Division 3A of Part IAA of the Crimes Act 1914 (Cth)

● Parliamentary Joint Committee on Intelligence and Security—inquiry into the impact of the exercise

of law enforcement and intelligence powers on the freedom of the press under the Intelligence Services Act 2001 (Cth)

● Parliamentary Joint Committee on Intelligence and Security—review of the mandatory data

retention regime prescribed by the Telecommunications (Interception and Access) Act 1979 (Cth)

● Parliamentary Joint Committee on Law Enforcement—examination of the AFP’s 2018–19 annual

report pursuant to section 7(1)(f) of the Parliamentary Joint Committee on Law Enforcement Act 2010 (Cth)

● Senate Select Committee on COVID-19—inquiry into the Australian Government’s response

to the COVID-19 pandemic

● Senate Environment and Communications References Committee—inquiry into press freedom.

Significant developments in external scrutiny and capability reviews In 2019–20 two reviews were carried out in relation to the AFP.

The independent Review into the AFP’s Response to and Management of Sensitive Investigations was

conducted by Mr John Lawler AM APM from October 2019 and reported in January 2020 (refer to

‘AFP Sensitive Investigations Oversight Board’ in Chapter 2). A review of the structure and operating

model of the AFP was conducted by Ernst & Young (refer to ‘Structure and operating model review’

in Chapter 2). These reviews were commissioned by the AFP.

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Our people The AFP continues to develop a workforce that reflects all elements of our community. We are focused

on harnessing the inherent abilities of our diverse workforce through inclusion initiatives that enable

our members to support the communities that they serve.

The AFP continues to place a high priority on the health, welfare and development of its personnel,

supporting them to success in their roles.

Workforce overview The AFP had 6,834 staff at 30 June 2020. This figure comprises:

● 3,247 police officers

● 829 protective service officers

● 2,758 unsworn staff.

Forty-three per cent of employees were located outside the Australian Capital Territory, including

174 staff overseas and 29 serving in Commonwealth external territories.

The natural attrition rate has been steadily increasing over the past five years and remained

at 4.9 per cent in 2019–20. The breakdown of this overall natural attrition rate was:

● police officers—4.1 per cent

● protective service officers—2.9 per cent

● unsworn staff—6.3 per cent.

The overall proportion of female employees slightly increased in 2019–20, with women comprising

38.6 per cent of the workforce compared to 38 per cent in 2018–19. The proportion of women

in Senior Executive Service (SES) roles increased from 36.5 per cent in 2018–19 to 41.9 per cent

in 2019–20.

Further AFP staffing statistics are in Appendix B.

Strategic workforce planning In line with the AFP People Strategy, work commenced in February 2020 to develop function and

command specific workforce plans to assist with understanding current and future workforce needs,

capability gaps and skills shortages. These plans will be used to inform an agency-wide strategic

workforce plan.

To further assist managers and commanders to understand their workforce, the AFP has invested in

software to provide real-time data to aid in evidence-based decision-making. SAS Firefly has been

developed to assist AFP managers to access real-time information about their workforce, and this

development will continue to progress throughout 2020–21. Information on a range of metrics

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including leave, mandatory training, qualifications and higher duties, to name a few, has been included

in the SAS Firefly reports that are available from a manager’s desktop.

Employment arrangements and remuneration

Enterprise Agreement

The AFP Enterprise Agreement 2017–2020 (EA) was approved by the Fair Work Commission on

19 May 2018 and it came into operation on 24 May 2018. The agreement has a nominal expiry date

of 24 May 2021 and covers Band 1 to 8 employees.

Executive Level Enterprise Agreement

The AFP Executive Level Enterprise Agreement 2019–2021 (ELEA) was approved by the Fair Work

Commission on 4 April 2019 and it came into operation on 11 April 2019. The agreement has a

nominal expiry date of 11 April 2021. The Minister for Home Affairs and the Minister for Finance

approved a two-year ELEA. This enables the AFP to review both the ELEA and the EA at the same time,

with a view to creating a modern, streamlined employment framework.

Senior Executive Service remuneration

The AFP Commissioner and Deputy Commissioners (DCs) are statutory appointments made by the

Governor‑General under section 17 of the AFP Act.

The Commissioner’s remuneration is determined by the Remuneration Tribunal, and the DCs’

remuneration is set out in an AFP Determination under sections 17(4A) and 20(2A) of the AFP Act.

All other SES employees are engaged under section 24 of the AFP Act and declared under section 25

of the AFP Act to be senior executive AFP employees.

The terms and conditions of employment for SES employees are set out in individual AFP SES

employment contracts. SES (including DC) salaries are reviewed annually by the Commissioner

following performance assessments. Further information on AFP SES remuneration can be found

in Appendix B.

Performance management In 2019–20 the AFP Performance Management Team provided support to supervisors in managing

180 cases of underperformance, with a focus on performance improvement. The team provides advice

on a range of complex people issues through performance coaching discussions. These discussions

have resulted in 82 cases of performance being improved to a satisfactory level. There are 62 ongoing

cases still requiring advice, support and resolution. Automation of email reminders for employees on

probation has assisted in raising issues in a timely fashion for positive resolution.

In 2019–20 the AFP Performance Management Team developed and delivered 31 face-to-face

performance workshops to 250 supervisors. These provided practical tips and techniques to assist

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supervisors to link performance and organisational outcomes, undertake meaningful and regular

feedback sessions, identify and manage capability gaps, address behaviour issues, understand the

linkages between health and performance, and understand how to develop effective performance

improvement plans. These sessions complement presentations delivered at the AFP Team Leader

Development Program.

Recruitment With a focus on bolstering frontline policing, during 2019–20 the AFP graduated eight recruit

programs, totalling 197 graduates. Included in this number were 118 police graduates, 19 of whom

completed a lateral program for experienced investigators from other jurisdictions across Australia;

and 79 protective service officer graduates. The new police members were deployed to the ACT and

various national roles, primarily in Sydney and Melbourne. The new protective service officers were

deployed to various locations within Australia.

Over the course of 2019–20 the AFP continued to make improvements in recruitment to deliver

effective and efficient resourcing outcomes. Highlights include the establishment of a recruitment

consultant role to work more closely with business areas and develop contemporary recruitment

approaches for hard-to-fill niche unsworn positions; ongoing improvements to the AFP’s recruitment

platform, MyCareer; and a review of the administration of special members to reduce red tape and

provide business areas and regional commands with more flexibility in managing their workforce.

A number of initiatives were also implemented to improve the outcomes of the AFP’s Directions

Program for Aboriginal and Torres Strait Islander people. These included securing state-based

positions to allow some participants to remain in their home location, providing career development

coaching and raising the nationally recognised qualification to diploma level.

Recruitment Market Research and Communications Project

Acting on the Commissioner’s intent to ensure the AFP is fit for purpose now and into the future, the

AFP engaged Host/Havas to conduct market research with members of the Australian public in order

to identify perceptions of a career with the AFP, particularly in entry-level policing and specialist

protective services.

The project focused specifically on three key target groups: women, Aboriginal and Torres Strait

Islander people, and people from culturally and linguistically diverse communities. This research,

combined with a thorough review of law enforcement and defence agencies as well as stakeholder

engagement, will inform the development of a communications/attraction strategy for the AFP.

While there is a focus on recruitment and how to attract the best and most diverse pool of candidates,

at a later stage the project will also focus on the AFP’s brand more broadly.

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Diversity and inclusion The AFP Cultural Reform—Diversity and Inclusion Strategy 2016–2026 identifies diversity as a core

element of modern policing and includes targeted initiatives to create a level playing field in the AFP

for women; Aboriginal and Torres Strait Islander people; lesbian, gay, bisexual, trans and intersex

people; people with disability; and people with linguistically diverse backgrounds.

During 2019–20 the AFP supported a number of initiatives to progress inclusive practices in

the organisation. These initiatives included:

● participation in the Australian Network on Disability Access and Inclusion Index

● participation in the Australian Workplace Equality Index

● participation in Mardi Gras and other Pride events

● leadership of the 21st Australasian Council of Women and Policing, held in Canberra in September

2019, which was attended by more than 500 delegates from more than 20 countries. The theme was ‘Collaboration—The future belongs to us’.

The AFP continues to progress inclusion in the organisation and retain the support and identity

of its five primary diversity networks:

● Malunggang Indigenous Officers Network

● Gay and Lesbian Liaison Officers Network

● AFP Ability Advisory Network

● National Women’s Advisory Network

● Culturally and Linguistically Diverse (CALD) Network.

Reconciliation Action Plan The AFP’s inaugural Reconciliation Action Plan (RAP) continues to be implemented and provides a

framework to support the national reconciliation movement and frontline Aboriginal and Torres Strait

Islander police members and staff. Recognising our outstanding Aboriginal and Torres Strait Islander

police members and staff is an important component of the plan in action.

The next phase of the RAP has commenced with the formation of the Reconciliation Working Group

to ensure collaboration and consensus in building our policing future together.

During 2019–20 the AFP progressed a range of initiatives relating to the RAP. For example:

● Two AFP Darwin members were announced as recipients of the Ben Blakeney Memorial Award

for their demonstrated commitment and drive in support of strengthening partnerships, promoting diversity and raising awareness of Indigenous issues, as well as promoting career advancement for Indigenous employees

● In May 2020, AFP members from across Australia came together to recognise and celebrate

National Reconciliation Week, demonstrating the theme ‘In This Together’.

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Disability reporting The National Disability Strategy 2010–2020 is Australia’s overarching framework for disability reform.

Reporting on the strategy is available on the Department of Social Services website. It acts to ensure

the principles underpinning the United Nations Convention on the Rights of Persons with Disabilities

are incorporated into Australia’s policies and programs that affect people with disability, their families

and carers.

Disability reporting is also included in the Australian Public Service Commission (APSC) State of the

Service reports and the Australian Public Service (APS) Statistical Bulletin, which are available on the

APSC website. The AFP subscribes to reporting at a high level (Portfolio) and embraces the strategy’s

focus areas to improve outcomes for people with disability.

Work health, safety and rehabilitation To ensure due diligence and compliance in accordance with the WHS Act and associated regulations,

the Work Health and Safety Team conducted three audits internationally and four audits nationally.

The AFP was compliant with the WHS Act in all audits undertaken.

During 2019–20 the AFP notified Comcare of 18 incidents under section 38 of the WHS Act.

Comcare issued five notices pursuant to section 155 of the WHS Act. The AFP provided the requested

information in response to these and did not receive any subsequent provisional

improvement notices.

In late 2019 the AFP had its first advanced work health and safety management system audit

conducted by Comcare. The audit covered 108 criteria and was conducted over a two-week period.

The AFP achieved a good compliance rate of 74 per cent. A corrective action plan has been established

to review the nonconformances and observations, which will be addressed and actioned in 2020–21.

Support services

The AFP has an extensive range of support services available to members and their families. Support

services are provided by a range of skilled professionals including psychologists, chaplains, social

workers, health and fitness advisers, nurses, mental health nurses, rehabilitation case managers and

welfare officers. This network of services provides support to members affected by stress of work or

personal pressures and can help facilitate pathways to professional help or other forms of assistance

where required.

In 2019–20, a number of key initiatives were undertaken to better support AFP employees, including:

● increasing the presence of support services in regional and remote areas, including engagement

of additional regional nurses

● establishing a telehealth model of service delivery

● increasing the number of mental health practitioners

● improving members’ Comcare claim experience

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● continuing specialist Road to Mental Readiness (R2MR) training

● educating members about how to support their own health and wellbeing and that of their

colleagues, family and friends.

Learning and development The AFP Learning Strategy provides for a principles-based approach to learning, including the premise

that learning is critical for success. As part of the strategy the AFP adopted a 70:20:10 learning model,

recognising that 70 per cent of learning is informal ‘on the job’ experience; 20 per cent is coaching,

mentoring and developing through others; and 10 per cent is formal learning.

Formal training delivery

The AFP College is a registered training organisation (RTO) in accordance with the Vocational

Education and Training Quality Framework. This enables the AFP College to deliver and award

nationally recognised qualifications and accredited vocational education and training courses

domestically and regionally to our appointees and law enforcement partners. Qualifications

currently on the AFP College scope of registration are:

● Certificate IV in Government Investigations

● Certificate IV in Protective Services

● Diploma of Policing

● Diploma of Police Intelligence Practice

● Diploma of Police Search and Rescue Coordination (Marine/Land)

● Diploma of Intelligence

● Advanced Diploma of Surveillance

● Advanced Diploma of Police Close Personal Protection

● Advanced Diploma of Police Investigation.

In 2019–20 the AFP College awarded 295 qualifications to AFP appointees. As the only RTO within

the Home Affairs portfolio, the AFP is uniquely placed to support its partner agencies by awarding

qualifications to their employees. In 2019–20 the AFP delivered critical intelligence training through

a partnership with the Australian Crime Intelligence Commission (ACIC), resulting in 81 ACIC

employees and 115 AFP appointees being awarded a Diploma of Intelligence.

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Training delivery and support

Leadership training

In 2019–20 the AFP supported a range of leadership training initiatives, including:

● delivery of the AFP Team Leader Development Program to 98 current or emerging AFP Team

Leaders to develop their decision-making and leadership skills

● participation in specialist leadership courses with institutions such as the Australian Institute

of Police Management and the National Security College.

AFP Tertiary Study Assistance Scheme

The AFP encourages appointees at all levels to pursue lifelong learning in order to meet the current

and future demands of their roles. In 2019–20 the AFP Tertiary Study Assistance Scheme (ATSAS)

supported 275 AFP appointees to study and gain qualifications that are relevant to their current roles

or career development. The most common areas of study related to law, cybersecurity and leadership.

ATSAS support included financial aid to assist with the cost of course fees.

Coaching and mentoring

Coaching and mentoring initiatives supported by the AFP in 2019–20 included:

● participation in the Women in Law Enforcement Strategy Mentoring Program, which supports

women pursuing executive-level careers in law enforcement. The program is sponsored by the Criminal Justice and Law Enforcement Forum

● delivery of internal mentoring programs

● launching a coaching network comprising 60 coaches trained to support employees with personal

and professional growth and to strengthen their leadership skills.

Investigations training

The AFP Investigator’s Development Continuum describes a clear pathway from new member through

to senior investigating officer. The AFP’s investigator development programs are aligned to higher

education qualifications and provide participants with an opportunity to demonstrate a high level

of investigative skills, practices, decision-making and knowledge.

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As part of the continuum, the AFP delivers:

● the Federal Police Development Program to develop foundational skills and knowledge to perform

the role of an AFP police constable

● the Lateral Recruit Program for experienced police officers joining the AFP

● the Detective Training Program, which provides members with skills and investigative techniques

including crime scene management, search warrant and controlled operation applications. In 2019–20 the AFP awarded the inaugural Detective of the Year award to recognise AFP detectives who demonstrate excellence, commitment, outstanding perseverance, innovation and leadership

● senior investigating officer training, which focuses on increasing investigative leadership skills

and capabilities

● the Management of Serious Crime Program, which provides a forum for senior crime managers

to share their skills and enhance their capabilities to effectively lead and manage complex, serious and organised crime investigations.

Attributes of a good investigator

Improved instructions to support investigative capability

In order to support the front line, the AFP ensures its investigative instructions are subject to

continuous improvement. As a result of recommendations outlined in the Lawler Review, the AFP has

worked with external partners to remediate its suite of instructions, including its investigations

standards. As a result, the relevant learning curricula are currently being modified.

Building capability of our partners

Whole-of-government arrangements and international engagements strengthen our ability to work

together with partners to combat evolving crime threats and challenges posed by a rapidly changing

environment. The AFP continues to lead efforts to build capability across the Commonwealth

and internationally.

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In 2019–20 the AFP supported a range of initiatives including:

● Commonwealth Fraud Investigations Capability (CFIC)—The AFP established the CFIC Project

to identify the learning and development needs of our fellow Commonwealth agencies and

international partners and build a sustainable framework for enhancing the Commonwealth

response to fraud through interagency cooperation and collaboration.

● Jakarta Centre for Law Enforcement Cooperation (JCLEC)—Established as an expertise exchange

hub with 32,468 alumni representing 80 countries, JCLEC has created an unparalleled body of

knowledge, experience and cooperation. JCLEC contributes to capacity and capability building

efforts throughout the Asia-Pacific region to deter and respond to emerging threats of

transnational crime. In 2019–20 there were 160 activities conducted in JCLEC, located in Indonesia,

which is the highest number to date.

● Management of Serious Crime (MOSC) Program—The MOSC Program is offered to senior crime

managers from various agencies within Australia and overseas. The program enables members to

share skills and experiences in the management and leadership of investigations of serious and

complex criminal matters, with an emphasis on strengthening partnerships both nationally

and internationally.

Financial management

Procurement The AFP applies the Commonwealth Procurement Rules when procuring goods and services, including

consultancies. The rules are applied to activities through the Commissioner’s Financial Instructions with

supporting guidelines. The AFP has a centralised procurement and contracting team that actively

promotes and focuses on compliance.

The AFP monitors compliance to identify any emerging issues, including breaches of official duties,

processing control gaps and fraudulent activity. Activities to monitor non-compliance include regular

transaction testing, the nature and extent of which is managed on a risk basis, an annual assurance

review and an internal audit program. AFP Professional Standards investigates allegations of possible

misconduct and fraud and may seek prosecution. Significant issues are reported to the Minister for

Home Affairs and, where an issue relates to management of public resources, to the Minister for

Finance. For further information on the AFP’s Professional Standards, refer to Appendix A.

In 2019–20 the AFP conducted a number of tender processes, including for remediation cleaning

services, supply of munitions, and health support services for Papua New Guinea.

Information on the value of contracts, including consultancies, is available at www.tenders.gov.au.

The Senate Order on departmental and agency contracts is available on the AFP’s website via a link

to AusTender.

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In 2019–20 the AFP entered into 11 contracts of $100,000 or more which did not provide for the

Auditor-General to have access to the contractor’s premises. These contracts are detailed in Table 4.2.

Table 4.2 Contracts without Auditor-General access, 2019–20

Name of vendor Purpose of contract Value of contract Reason

Red Energy Pty Limited Supply of electricity $211,854 The AFP accepted

the vendor terms

College of Policing Ltd Provision of training $110,090 The AFP accepted

the vendor terms

Puma Energy PNG Limited Supply of fuel $250,000 The AFP accepted

the vendor terms

Red Hat Asia-Pacific Pty Ltd Supply of software $153,094 The AFP accepted

the vendor terms

Broadcast Australia Pty Limited Communication licence—ACT site $167,200 The AFP accepted

the vendor terms

TAFE Queensland Provision of training $135,425 The AFP accepted

the vendor terms

Brisbane Airport Pty Limited Corporation Supply of electricity $176,000 The AFP accepted

the vendor terms

ERM Power Retail Pty Ltd Supply of electricity $168,623 The AFP accepted

the vendor terms

ActewAGL Retail Ltd & AGL ACT Retail Investments Pty Ltd T/A ACTEWAGL Retail

Supply of gas $1,500,000 The AFP accepted

the vendor terms

NexusXplore Pty Ltd Supply of software licence $132,000 The AFP accepted

the vendor terms

Microsoft Pty Ltd Provision of software

support

$918,468 The AFP accepted the vendor terms

Consultancies During 2019–20, 61 new consultancy contracts were entered into involving total actual expenditure

of $5.51 million. In addition, 26 ongoing consultancy contracts were active during the period, involving

total actual expenditure of $1.244 million.

Table 4.3 Number of and expenditure on consultants, 2019–20

Total

No. of new contracts entered into during the period 61

Total actual expenditure during the period on new contracts (inc. GST) $5,510,097

No. of ongoing contracts engaging consultants that were entered into during a previous period 26

Total actual expenditure during the period on ongoing contracts (inc. GST) $1,244,787

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The decisions to engage consultants are made in accordance with the PGPA Act, Commonwealth

Procurement Rules and relevant internal policies where there is an identified need for specialist skills,

knowledge or independent expertise in areas outside of the agency’s core business functions. The AFP

takes into consideration the skills and resources required for the task, the skills available internally

and the cost-effectiveness of engaging external expertise.

Annual reports contain information about actual expenditure on contracts for consultancies;

information on the value of individual contracts and consultancies is available on the

AusTender website.

Exempt contracts During 2019–20, the AFP did not publish on AusTender the details of 43 contracts, with a total value

of $12,298,576, as the details would disclose exempt matters under the FOI Act.

Procurement initiative to support small business The AFP supports small business participation in the Australian Government procurement market.

Small and medium enterprises and small enterprise participation statistics are available on the

Department of Finance’s website.

The AFP’s procurement practices support small business enterprises by promoting, where possible,

use of the Commonwealth Contracting Suite for low-risk procurements valued under $200,000,

encouraging the use of credit card payments for procurements valued under $10,000 and setting

the default terms of payment for small business through the accounts payable system to seven

calendar days.

The AFP recognises the importance of ensuring that small businesses are paid on time. The results

of the Survey of Australian Government Payments to Small Business are available on the

Treasury’s website.

Discretionary grants Information on grants that the AFP awarded during the period 1 July 2019 to 30 June 2020

is available at www.grants.gov.au.

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Advertising and market research

Table 4.4 Advertising and market research expenditure, 2019–20

Category Vendor Amount ($)

Campaign Media Heads Pty Ltd 36,073

Campaign Association & Communications Events Pty Ltd 16,650

Campaign Comvantage Pty Ltd 18,200

Campaign Productology Pty Ltd 80,991

Campaign The trustee for Core Ideas Unit Trust 25,785

Campaign Trustee for the Media Services Trust 14,850

Campaign Nation Creative Pty Ltd 41,105

Market Research Colmar Brunton Pty Ltd 35,610

Market Research Havas Australia Pty Ltd 219,726

Market Research Orima Research Pty Ltd 45,228

Non-Campaign Folk Pty Limited 32,540

Non-Campaign Havas Australia Pty Ltd 8,034

Total 574,792

The AFP did not conduct any government advertising campaigns in 2019–20.

CHAPTER 5

AFP Annual Report 2019–20

100

Financial statements

AFP Annual Report 2019–20

101

AFP Annual Report 2019–20

102

103

AFP Annual Report 2019–20

Table of contents

Statement by the Commissioner and Chief Financial Officer 3 104

Departmental financial statements

Statement of comprehensive income Statement of financial position Statement of changes in equity Cash flow statement

4 105 5 106 6 107 7 108

Administered financial schedules

Administered schedule of comprehensive income Administered schedule of assets and liabilities

8 109 9 110

Administered reconciliation schedule 9 110

Administered cash flow statement 10 111

Notes to and forming part of the financial statements

Overview 11 112

Events after the reporting period Note 1.1: Expenses Note 1.2: Own-source revenue and gains Note 2.1: Financial assets

13 114 14 115 16 117 17 118

Note 2.2: Non-financial assets 18 119

Note 2.3: Payables Note 2.4: Interest bearing liabilities Note 2.5: Other provisions Note 3.1: Employee provisions Note 3.2: Key management personnel remuneration Note 3.3: Related party disclosures Note 3.4: Prior year restatement Note 4.1: Appropriations Note 4.2: Net cash appropriation arrangements Note 4.3: Special accounts Note 4.4: Contingent liabilities and contingent assets Note 4.5: Aggregate assets and liabilities Note 5.1: Budget reporting and major budget variances

21 122 21 122 22 123 23 124

24 125 24 125 24 125 25 126

26 127 27 128 28 129 28 129

29 130

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Australian Federal Police Primary statements

Statement of comprehensive income for the year ended 30 June 2020 Actuali Actuali Originali

2020i 20191 Budgeti2 Variancei3

Notes $'000i $'000i $'000i $'000i

NET COST OF SERVICES Expenses Employee benefits 1.1A 943,682 928,200 909,219 34,463

Suppliers 1.1B 403,343 475,338 506,361 (103,018)

Depreciation and amortisation 2.2A 203,319 93,459 106,982 96,337

Finance costs 1.1C 14,941 565 - 14,941

Write-down and impairment of other assets 1.1D 2,434 8,593 - 2,434

Grants 2,148 3,197 - 2,148

Other expenses 1,250 910 - 1,250

Total expenses 1,571,117 1,510,262 1,522,562 48,555

Own-source income Own-source revenue Revenue from contracts with customers 290,676 284,066 289,046 1,630

Other revenue 5,150 1,514 340 4,810

Total own-source revenue 1.2A 295,826 285,580 289,386 6,440

Gains Resources received free of charge 6,179 6,114 6,129 50

Gains from sale of assets 611 952 - 611

Other gains 3,703 797 - 3,703

Total gains 1.2B 10,493 7,863 6,129 4,364

Total own-source income 306,319 293,443 295,515 10,804

Net cost of services (1,264,798) (1,216,819) (1,227,047) (37,751)

Revenue from government 4.1A 1,128,302 1,103,344 1,122,948 5,354

Deficit attributable to the Australian Government (136,496) (113,475) (104,099) (32,397)

Other comprehensive income Items not subject to subsequent reclassification to net cost of services Revaluation of property, plant and equipment 22,877 - - 22,877

Total other comprehensive income 22,877 - - 22,877

Total comprehensive loss attributable

(113,619) (113,475) (104,099) (9,520)

to the Australian Government

The above statement should be read in conjunction with the accompanying notes. 1 Adjusted 2018-19 figures. Refer to Note 3.4. 2

The original budget is from the 2019–20 Portfolio Budget Statement (PBS) (unaudited). 3 The variance between the actual and original budgeted amount for 2019–20. Explanations of major variances are presented in Note 5.1.

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Australian Federal Police

Statement of financial position

as at 30 June 2020 Actuali Actuali Originali

Notes 2020i 2019

1

Budgeti2 Variancei3

ASSETS $'000i $'000i $'000i $'000i

Financial assets Cash and cash equivalents 2.1A 23,442 21,467 15,596 7,846

Trade and other receivables 2.1B 285,005 287,315 264,201 20,804

Accrued revenue 9,230 5,570 6,421 2,809

Total financial assets 317,677 314,352 286,218 31,459

Non-financial assets Land and buildings 2.2A 1,361,999 364,372 325,438 1,036,561

Property, plant and equipment 2.2A 244,973 180,014 252,427 (7,454)

Intangibles 2.2A 101,295 82,083 113,334 (12,039)

Inventories 6,197 6,399 6,094 103

Prepayments 23,067 29,478 25,303 (2,236)

Total non-financial assets 1,737,531 662,346 722,596 1,014,935

Total assets 2,055,208 976,698 1,008,814 1,046,394

LIABILITIES Payables Suppliers 2.3A 65,443 100,927 115,408 (49,965)

Other payables 2.3B 35,535 18,586 19,674 15,861

Total payables 100,978 119,513 135,082 (34,104)

Interest bearing liabilities Leases 2.4 1,046,592 - - 1,046,592

Total interest bearing liabilities 1,046,592 - - 1,046,592

Provisions Employee provisions 3.1 417,220 409,650 326,652 90,568

Other provisions 2.5 37,732 31,499 32,366 5,366

Total provisions 454,952 441,149 359,018 95,934

Total liabilities 1,602,522 560,662 494,100 1,108,422

Net assets 452,686 416,036 514,714 (62,028)

EQUITY Contributed equity 1,455,572 1,330,782 1,460,725 (5,153)

Reserves 147,348 124,471 124,471 22,877

Accumulated deficit (1,150,234) (1,039,217) (1,070,482) (79,752)

Total equity 452,686 416,036 514,714 (62,028)

The above statement should be read in conjunction with the accompanying notes. 1 Adjusted 2018-19 figures. Refer to Note 3.4. 2

The original budget is from the 2019–20 Portfolio Budget Statement (PBS) (unaudited). 3 The variance between the actual and original budgeted amount for 2019–20. Explanation of major variances are presented in Note 5.1.

Primary statements

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AFP Annual Report 2019–20

Statement of changes in equity for the year ended 30 June 2020

Actuali Actuali Originali

2020i 20191 Budgeti2 Variancei3

$'000i $'000i $'000i $'000i

CONTRIBUTED EQUITY Opening balance carried forward from previous period 1,330,782 1,201,250 1,330,756 26

Transactions with owners Departmental capital budget Returns of contributed equity (6,780) - - (6,780)

Contributions by owners Equity injection - appropriations 53,319 70,909 51,319 2,000

Departmental capital budget 78,251 58,623 78,650 (399)

Total transactions with owners 124,790 129,532 129,969 (5,179)

Closing balance as at 30 June 1,455,572 1,330,782 1,460,725 (5,153)

RETAINED EARNINGS Opening balance Opening balance carried forward from previous period (1,039,217) (917,803) (966,383) (72,834)

Adjustment for prior year restatement - (7,939) - -

Adjustment for changes in accounting policies 4

25,479 - - 25,479

Adjusted opening balance (1,013,738) (925,743) (966,383) (47,355)

Comprehensive income (Deficit) for the period (136,496) (113,475) (104,099) (32,397)

Total comprehensive income (136,496) (113,475) (104,099) (32,397)

Closing balance as at 30 June (1,150,234) (1,039,217) (1,070,482) (79,752)

ASSET REVALUATION RESERVE Opening balance carried forward from previous period 124,471 124,471 124,471 -

Comprehensive income Other comprehensive income 22,877 - - 22,877

Total comprehensive income 22,877 - - 22,877

Closing balance as at 30 June 147,348 124,471 124,471 22,877

TOTAL EQUITY 452,686 416,036 514,714 (62,028)

The above statement should be read in conjunction with the accompanying notes. 1 Adjusted 2018-19 figures. Refer to Note 3.4. 2

The original budget is from the 2019–20 Portfolio Budget Statement (PBS) (unaudited). 3 The variance between the actual and original budgeted amount for 2019–20. Explanation of major variances are presented in Note 5.1. 4

The adoption of AASB 16 Leases resulted in the lease balances previously recognised under AASB 117 being adjusted against opening retained earnings. Refer to the Overview for further detail.

Accounting policy

Equity Injections

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

Australian Federal Police Primary statements

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Primary statements

Cash flow statement

for the year ended 30 June 2020 Actuali Actuali Original

Notes 2020i 2019i Budgeti

1

Variancei2

Operating activities $'000i $'000i $'000i $'000i

Cash received Appropriations 1,420,744 1,403,641 1,363,423 57,321

Sales of goods and rendering of services 309,107 285,884 287,207 21,900

Net GST received 45,160 37,532 31,994 13,166

Other 41,323 2,588 340 40,983

Total cash received 1,816,334 1,729,645 1,682,964 133,370

Cash used Employees 938,718 904,083 911,757 26,961

Suppliers 447,586 517,036 502,450 (54,864)

Section 74 receipts transferred to Official Public 309,529 285,403 264,053 45,476

Account (OPA) Interest payments on lease liabilities 14,381 - - 14,381

Grant payments 2,148 3,197 - 2,148

Total cash used 1,712,362 1,709,719 1,678,260 34,102

Net cash used by operating activities 103,972 19,926 4,704 99,268

Investing activities Cash received Proceeds from sale of property, plant and

611 1,119 - 611

equipment Total cash received 611 1,119 - 611

Cash used Purchase of property, plant and equipment 74,700 26,675 133,843 (59,143)

Purchase of land and buildings 34,088 67,341 - 34,088

Purchase of intangibles 31,264 30,148 - 31,264

Total cash used 140,052 124,164 133,843 6,209

Net cash used by investing activities (139,441) (123,045) (133,843) (5,598)

Financing activities Cash received Contributed equity 43,556 59,136 132,347 (88,791)

Departmental capital budget funding 91,110 49,855 - 91,110

Total cash received 134,666 108,991 132,347 2,319

Cash used Principal payments of lease liabilities 97,222 - - 97,222

Total cash used 97,222 - - 97,222

Net cash used by financing activities 37,444 108,991 132,347 (94,903)

Net increase in cash held 1,975 5,872 3,208 (1,233)

Cash and cash equivalents at the beginning of the 21,467 15,595 12,388 9,079

period Cash and cash equivalents at the end of the 2.1A 23,442 21,467 15,596 7,846

period

The above statement should be read in conjunction with the accompanying notes. 1 The original budget is from the 2019–20 Portfolio Budget Statement (PBS) (unaudited). 2

The variance between the actual and original budgeted amount for 2019–20. Explanation of major variances are presented in Note 5.1.

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Australian Federal Police Administered primary schedules

Administered schedule of comprehensive income

for the year ended 30 June 2020 Actuali Actuali Original

2020i 2019i Budget1 Variance

$'000i $'000i $'000i $'000i

NET COST OF SERVICES Expenses Consultants and contractors 259 250 - -

General and office 377 2,818 - -

Grants 400 - - -

Impairment loss on financial instruments 10 17 - -

Infrastructure for other jurisdictions - 750 - -

Operational expenses 259 130 - -

Police equipment for other jurisdictions2 3,390 3,347 - -

Training 2,401 5,891 - -

Travel 963 1,263 - -

Total expenses 8,059 14,466 7,868 191

Income Non-taxation revenue Court fees, fines and penalties 191 193 - -

Exhibits and seizures 701 319 - -

Other income 7 7 - -

Total non-taxation revenue 899 519 - 899

Net cost of services 7,160 13,947 7,868 (708)

Total comprehensive deficit (7,160) (13,947) (7,868) 708

The above schedule should be read in conjunction with the accompanying notes. 1 The original budget is from the 2019–20 Portfolio Budget Statement (PBS) (unaudited). 2

Police equipment for other jurisdictions is for amounts gifted to international police jurisdictions which are not cost recovered.

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Australian Federal Police Administered primary schedules

Administered schedule of assets and liabilities

as at 30 June 2020 Actuali Actuali Original

2020i 2019i Budget1 Variance

$'000i $'000i $'000i $'000i

ASSETS Financial assets Cash and cash equivalents - - 644 (644)

Receivable - GST from Australian Taxation Office 23 4 17 6

Receivable - Other - 34 114 (114)

Receivable - Court fees, fines and penalties 1,341 1,343 1,370 (29)

Less: impairment allowance (court fees, fines and penalties) (1,317) (1,307) (1,290) (27)

Total financial assets 47 74 855 (808)

Non-financial assets Prepayments - - 112 (112)

Total non-financial assets - - 112 (112)

Total assets administered on behalf of government 47 74 967 (920)

Liabilities Payables Suppliers2 528 572 1,200 (672)

Other payables 433 565 - 433

Total liabilities administered on behalf of government 961 1,137 1,200 (239)

Net liabilities (914) (1,063) (233) (681)

The above schedule should be read in conjunction with the accompanying notes. All assets and liabilities are related to Outcome 1.

1 The original budget is from the 2019–20 Portfolio Budget Statement (PBS) (unaudited). 2 Settlement is usually made within 7 days.

Administered reconciliation schedule Actual Actual

for the year ended 30 June 2020 2020i 2019i

$'000i $'000i

Opening net liabilities as at 1 July (1,063) (343)

Net cost of services Income 899 519

Expenses (8,059) (14,466)

Total net cost of services (7,160) (13,947)

Transfers (to)/from Australian Government

Appropriation transfers through OPA:

Annual appropriations 8,364 15,387

Transfers to OPA (1,055) (2,160)

Total transfers (to)/from Australian Government 7,309 13,227

Closing net liabilities as at 30 June (914) (1,063)

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

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Australian Federal Police Administered primary schedules

Administered cash flow statement

for the year ended 30 June 2020 Actuali Actuali Original

2020i 2019i Budget1 Variance

Operating activities $'000i $'000i $'000i $'000i

Cash received Court fees, fines and penalties 227 898 - 227

Exhibits and seizures 701 319 - 701

Other – income 7 7 - 7

Net GST received 70 288 10 60

Total cash received 1,005 1,512 10 995

Cash used Suppliers 8,225 15,107 7,918 307

GST paid 89 275 10 79

Total cash used 8,314 15,382 7,928 386

Net cash used by operating activities (7,309) (13,870) (7,918) 609

Net (decrease) in cash held by the Commonwealth (7,309) (13,870) (7,918) 609

Cash at the beginning of the reporting period - 644 644 (644)

Cash from Official Public Account

Appropriations 8,364 15,387 7,918 446

Cash to Official Public Account Appropriations (1,009) (2,159) - (1,009)

GST (46) (1) - (46)

Cash at the end of the reporting period - - 644 (644)

The above schedule should be read in conjunction with accompanying notes. All assets and liabilities are related to Outcome 1.

1 The original budget is from the 2019–20 Portfolio Budget Statement (PBS) (unaudited). The budget statement information has been reclassified and presented on a consistent basis with the corresponding financial statement.

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AFP Annual Report 2019–20

Australian Federal Police

Overview Objectives of the Australian Federal Police The AFP is an Australian Government controlled not-for-profit entity. As Australia's national policing agency, the AFP is a key member of the Australian law enforcement and national security community, leading policing efforts to keep Australians and Australian interests safe, both at home and overseas. This is delivered through the following outcomes:

Outcome 1: Reduced criminal and security threats to Australia's collective economic and societal interests through cooperative policing services Outcome 2: A safe and secure environment through policing activities on behalf of the Australian Capital Territory Government

The continued existence of the AFP in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the entity’s administration and programs.

AFP's activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the entity in its own right.

Administered activities involve the management or oversight by the entity, on behalf of the Government, of items controlled or incurred by the Government. AFP conducts administered activities on behalf of the Government supporting the objectives of Outcome 1, predominantly international development assistance.

Basis of preparation of the financial statements

The financial statements are general-purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

· Public Governance Performance and Accountability (Financial Reporting) Rule 2015 (FRR); and · Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

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

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

Significant accounting judgements and estimates

The AFP has made estimates and judgements with respect to the methods used to assess the fair value of assets and the calculation of employee provisions. All assets and liabilities are held at fair value. These estimates and judgements are outlined at the relevant note.

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

Impact of COVID-19 pandemic on the financial statements Since mid-February 2020, the COVID-19 pandemic has led to global financial uncertainty. The AFP has been impacted by the pandemic through the delivery of emergency response services and capital project delays.

Management has assessed the impact on the financial statements including the potential for movements in the fair value of non-current assets and the potential for impairment of other assets such as receivables. The COVID-19 pandemic did not have a significant impact on the transactions and balances in the financial statements.

Notes to and forming part of the financial statements

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Australian Federal Police

Notes to and forming part of the financial statements

Overview (cont.) New Australian Accounting Standards Adoption of new Australian Accounting Standards requirements

AASB 16 became effective as at 1 July 2019. This new standard has replaced AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a Lease , Interpretation 115 Operating Leases—Incentives and Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease . AASB 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases.

Adoption of AASB 16 has had a major impact on the AFP financial statements, recognising significant additional right-of-use assets and lease liabilities. AFP has applied a modified retrospective approach, recognising the cumulative effect of the standard as at 1 July 2019. AASB 16 provides for certain optional practical expedients, including those related to the initial adoption of the standard. The comparative information has not been restated and continues to be reported under AASB 117. The AFP applied the following practical expedients when applying AASB 16 to leases previously classified as operating leases under AASB 117:

• Excluded initial direct costs from the measurement of right-of-use assets at the date of initial application for leases where the right-of-use asset was determined as if AASB 16 had been applied since the commencement date; • Relied on previous assessments on whether leases are onerous as opposed to preparing an impairment review under AASB 136 Impairment of assets as at the date of initial application; and • Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term remaining as of the date of initial application.

The impact on transition is summarised below:

Departmental 1 July 2019 ($'000)

Right-of-use assets - property, plant and equipment 1,050,198

Lease liabilities (1,041,964)

Prepayments (8,234)

Retained earnings (25,479)

Supplier payables 25,479

There has been no impact on AFP Administered accounts.

AASB 15 Revenue from Contracts with Customers and AASB 1058 Income of Not-for-Profit Entities were adopted from 1 July 2019 with no material impact on the AFP's financial statements. No other new and revised standards and interpretations that were issued prior to the sign-off date and are applicable to the current reporting period had a material effect on the AFP’s financial statements.

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

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

Reporting of administered activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards. Administered items are presented on shaded blue background.

Administered cash transfers to and from the Official Public Account Revenue collected by the AFP for use by the government rather than the AFP is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under parliamentary appropriation on behalf of the government. These transfers to and from the OPA are adjustments to the administered cash held by the AFP on behalf of the government and reported as such in the administered cash flow statement and in the administered reconciliation schedule.

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Australian Federal Police

Notes to and forming part of the financial statements

Events after the reporting period Departmental

No significant events have occurred since the reporting date requiring disclosure in the financial statements.

Administered

No significant events have occurred since the reporting date requiring disclosure in the financial statements.

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Note 1.1: Expenses Note 1.1A: Employee benefits expense 2020i 2019i1

$'000i $'000i

Wages and salaries 656,833 621,508

Superannuation: Defined contribution plans 65,368 56,682

Defined benefit plans 65,322 69,599

Leave and other entitlements 138,162 165,320

Separation and redundancies 4,807 2,685

Other employee expenses 13,190 12,406

Total employee benefits expense 943,682 928,200

1 Adjusted 2018-19 figures. Refer to Note 3.4.

Note 1.1A: Accounting policy

The AFP's employees are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or a nominated superannuation fund. The CSS and PSS are defined benefit plans for the Australian Government. All other superannuation funds are accumulation plans.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes. The AFP makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the government. The AFP accounts for the contributions as if they were contributions to defined contribution plans.

Note 1.1B: Supplier expenses 2020i 2019i

$'000i $'000i

Supplier expenses – goods and services Operational 56,397 50,759

Consultant and contractor services 49,989 52,787

Staff and recruitment 51,078 45,176

Communications and IT 62,501 53,639

Building and accommodation 45,755 38,619

Travel 31,042 36,761

General and office 34,304 26,845

Training 12,692 11,924

Vehicle expenses* 7,483 2,761

Postage and freight 2,855 2,232

Total supplier expenses – goods and services 354,096 321,503

Supplier expenses – other Operating lease rentals - 111,067

Short term and low value leases 7,733 -

Workers compensation expenses 41,498 42,757

Other supplier expenses 16 11

Total supplier expenses - other 49,247 153,835

Total supplier expenses 403,343 475,338

* Vehicle expenses for 2019-20 include $4.909m of costs previously categorised as operating lease rentals in the 2018-19 financial statements under AASB 117.

Australian Federal Police

Notes to and forming part of the financial statements

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Note 1.1: Expenses (cont.)

Note 1.1B: Supplier expenses (cont.)

Note 1.1B: Accounting policy

Recognition and measurement of operating lease payments With the introduction of AASB 16 Leases, operating lease payments relating to underlying assets are no longer reported as a supplier expense - for AFP these include leases for office space, vehicles and other equipment. AFP has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less and leases of low-value assets (less than $10,000). Consistent with the modified retrospective approach, comparative figures are not restated. A reconciliation of lease commitments disclosed as at 30 June 2019 to lease liabilities recognised on 1 July 2019 is provided below:

$'000i

Minimum operating lease commitment 30 June 2019 515,557

Less: GST included in commitments (45,160)

Less: non asset related commitments (15,422)

Less: short term leases not recognised under AASB 16 (2,168)

Less: low value leases not recognised under AASB 16 (1,145)

Plus: effect of extension options reasonably certain to be exercised 698,624

Undiscounted lease payments 1,150,286

Less: effect of discounting using the incremental borrowing rate (108,322)

Lease liabilities recognised at 1 July 2020 1,041,964

The AFP has short term lease commitments of $110.8m as at 30 June 2020.

Note 1.1C: Finance costs 2020i 2019i

Interest on lease liabilities 14,381 -

Unwinding of discount 560 565

Total finance costs 14,941 565

Lease disclosures should be read in conjunction with accompanying notes 2.2 and 2.4.

Note 1.1D: Write-down and impairment of assets 2020i 2019i

$'000i $'000i

Impairment from trade and other receivables 1,585 264

Impairment of buildings 54 728

Impairment of property, plant and equipment 715 6,806

Impairment of intangibles 80 795

Total write-down and impairment of assets 2,434 8,593

Note 1.1E: Regulatory charging summary The AFP undertakes national police checks that are cost-recovered, as outlined in Schedule 2 of the Australian Federal Police Regulations 1979 . Expenses and income associated with this activity is outlined below. 2020i 2019i

$'000i $'000i

Expenses – departmental 19,591 20,223

Revenue – departmental 27,755 26,838

Australian Federal Police

Notes to and forming part of the financial statements

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Note 1.2: Own-source revenue and gains

Note 1.2A: Revenue 2020i 2019i

$'000i $'000i

Revenue from contracts with customers Sale of goods 119 104

Rendering of services: Police services 237,731 240,832

Criminal record checks 28,936 27,520

Other services 23,890 15,610

Total revenue from contracts with customers 290,676 284,066

Other revenue 5,150 1,514

Total revenue 295,826 285,580

Note 1.2A: Accounting policy

AFP primarily generates revenue from providing policing services to the ACT Government and other Commonwealth agencies. AFP also generates revenue from performing criminal record checks, and training related to police services.

Revenue from contracts with customers is recognised when the performance obligation has been met, either: · at a point in time where the ownership or control of the goods or services is passed to the customer at a specific time; or · over time where the services are provided and consumed simultaneously.

Note 1.2B: Gains 2020i 2019i

$'000i $'000i

Resources received free of charge 6,179 6,114

Sale of assets: Proceeds from sale of assets 652 1,119

Carrying value of assets sold (41) (167)

Other gains 3,703 797

Total gains 10,493 7,863

Note 1.2B: Accounting policy

Resources Received Free of Charge Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge includes Australian National Audit Office audit fees of $0.275m (2019: $0.255m) for AFP's financial statements and $5.854m (2019: $5.859m) for ACT Policing facilities and legal services received free of charge from the ACT Government.

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

Sale of Assets Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

Australian Federal Police

Notes to and forming part of the financial statements

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Note 2.1: Financial assets

Note 2.1A: Cash and cash equivalents 2020i 2019i

$'000i $'000i

Cash in special accounts 4,603 3,494

Cash on hand 101 101

Cash at bank 11,238 11,372

Cash - held by the OPA 7,500 6,500

Total cash and cash equivalents 23,442 21,467

The closing balance of Cash in special accounts does not include amounts held in trust: $31.045m in 2020 and $43.088m in 2019. See note 4.3 Special Accounts for more information.

Note 2.1B: Trade and other receivables

2020i 2019i

Goods and services receivable $'000i $'000i

Goods and services receivable 13,198 11,920

Total goods and services receivables 13,198 11,920

Contract assets are associated with the provision of policing services to the ACT Government and other Commonwealth agencies.

Appropriation receivable - for ordinary services 210,180 193,094

- for equity projects 57,707 67,583

Total appropriations receivables 267,887 260,677

Other receivables GST receivable from the Australian Taxation Office 5,761 5,155

Comcare 47 9,506

Other 438 823

Total other receivables 6,246 15,484

Total trade and other receivables (gross) 287,331 288,081

Less: impairment loss allowance (2,326) (766)

Total trade and other receivables (net) 285,005 287,315

Note 2.1B: Accounting policy

All trade receivables are expected to be recovered in less than 12 months. Credit terms for goods and services are 30 days (2019: 30 days). Receivables are held for the purpose of collecting contractual cash flows and measured at amortised cost using the effective interest method adjusted for any loss allowance.

Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses.

Australian Federal Police

Notes to and forming part of the financial statements

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Note 2.2: Non-financial assets Note 2.2A: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles Other Intangible

Leasehold Total land property, assets - improve- and plant and computer Total non-financial Land Buildings ments buildings equipment software assets

$’000 $’000i $’000i $’000i $’000i $’000i $’000i

As at 1 July 2019 Gross book value 2,400 153,388 280,392 436,180 255,649 160,793 852,622

Accumulated depreciation and

- (9,850) (61,958) (71,808) (75,635) (78,710) (226,153) amortisation Total as at 1 July 2019 2,400 143,538 218,434 364,372 180,014 82,083 626,469

Recognition of right-of-use assets on 215 1,034,113 - 1,034,328 15,870 - 1,050,198 initial application of AASB 16 Total as at 1 July 2019 2,615 1,177,651 218,434 1,398,700 195,884 82,083 1,676,667

Additions: Purchased or internally developed - 6,421 28,943 35,364 61,430 30,450 127,244

Right-of-use assets - 98,775 - 98,775 27,552 - 126,327

Revaluations recognised in other

- (1,491) 17,539 16,048 11,769 - 27,817

comprehensive income Write-down and impairment recognised in - (29) (25) (54) (715) (80) (849)

net cost of services Depreciation/amortisation - (5,187) (35,113) (40,300) (41,663) (11,168) (93,131)

Depreciation on right-of-use assets (46) (100,298) - (100,344) (9,844) - (110,188)

Other movements of right-of-use assets 1 - (45,579) - (45,579) - - (45,579)

Reclassifications - (516) (95) (611) 601 10 -

Disposals:

Other - - - - (41) - (41)

Total as at 30 June 2020 2,569 1,129,747 229,683 1,361,999 244,973 101,295 1,708,267

Total as at 30 June 2020 represented by: Gross book value 2,615 1,230,045 229,709 1,462,369 256,138 190,417 1,908,924

Accumulated depreciation and

(46) (100,298) (26) (100,370) (11,165) (89,122) (200,657) amortisation Total as at 30 June 2020 2,569 1,129,747 229,683 1,361,999 244,973 101,295 1,708,267

Carrying amount of right-of-use assets 169 987,011 - 987,180 33,578 - 1,020,758

The carrying amount of computer software includes purchase of software of $33.4m and internally generated software of $65.0m.

1 Other movements of right-of-use assets arise from lease modifications entered into during the financial year.

Capital commitments

The AFP has entered into contracts to purchase equipment, intangibles, leasehold fit-outs and buildings that are currently under construction. Some contracts contain a termination clause as part of the contract, the value of these contracts for 2020: $43.976m (2019:$35.041m). At 30 June, the AFP intends to fully exercise these contracts.

2020i 2019i

As at 30 June, the future minimum payments under non-cancellable contracts were: $'000i $'000i

Less than one year 44,671 38,186

Between one and five years 7,888 6,976

More than five years - -

Total capital commitments 52,559 45,162

Australian Federal Polices

Notes to and forming part of the financial statements

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Australian Federal Police

Notes to and forming part of the financial statements

Note 2.2: Non-financial assets (cont.) Note 2.2B: Accounting policy Assets under construction (AUC) AUC are included in all asset classes in Note 2.2A except for Land. AUC are initially recorded at acquisition cost. They include expenditure to date on various capital projects carried as AUC. AUC projects are reviewed annually for indicators of impairment and all AUC older than 12 months at reporting date is externally revalued to fair value. Prior to rollout into service, the accumulated AUC balance is reviewed to ensure accurate capitalisation of built and purchased assets.

Make good The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to make good provisions in property leases taken up by the AFP where there exists an obligation to restore the property to its original condition. These costs are included in the value of the AFP's leasehold improvements with a corresponding provision for the make good recognised.

Asset recognition thresholds Assets are recorded at cost on acquisition, except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Asset class Threshold

Land and buildings $5,000

Property, plant and equipment $5,000

Intangibles - purchased $10,000

Intangibles - internally developed $25,000

All asset purchases below these thresholds are expensed in the year of acquisition. Where assets cost less than the threshold and form part of a group of similar items which are significant in total, they are recognised as assets. Asset thresholds for AFP (excluding APG and AIPM) have been updated to a capitalisation threshold of $5,000 at 30 June 2019.

Leased right-of-use (ROU) assets Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Leased ROU assets continue to be measured at cost after initial recognition.

Key judgement Reasonable certainty of option exercise in relation to ROU assets The AFP enters into property lease arrangements for domestic and international offices and residential premises. A significant number of these leases have options for the AFP to extend its ROU beyond the initial term. These option periods have been included in the measurement of the ROU asset and lease liability when management make the judgment that the option is reasonably certain to be exercised based on historical experience and the importance of the underlying asset to AFP’s operations, the availability of alternative assets, security considerations and other relevant requirements for each particular location.

Revaluations Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The AFP has adopted a 3 year revaluation cycle. The AFP tests the valuation model as an internal management review at least once every 12 months to ensure there are no material differences. An asset revaluation was performed as at 30 June 2020.

The valuation of non-financial assets identified the current COVID-19 situation as an area of uncertainty which may impact asset values in the future. The AFP considers the value of non-financial assets recorded at 30 June 2020 to be reliable, with no current evidence of adverse impacts on relevant asset markets.

Valuations were conducted by registered and independent valuers at 30 June 2020 by Australian Valuation Services. Revaluations were conducted on all tangible assets, including those under construction.

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Australian Federal Police

Notes to and forming part of the financial statements

Note 2.2: Non-financial assets (cont.) Note 2.2B: Accounting policy (cont.) Revaluations (cont.)

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

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

Key judgement The valuation basis for each class of assets is as follows:

- land – fair value based on market value of similar properties - buildings and leasehold improvements – depreciated replacement cost due to no active market for custom-built assets - other property, plant and equipment – measured at market selling price for assets unless a market does not exist. In these circumstances depreciated replacement cost is applied.

Where possible, a market approach was used through examination of similar assets. Revaluations were conducted on the following basis:

Asset class Valuation technique

Land Market valuation

Buildings Depreciation replacement cost

Leasehold improvements Depreciation replacement cost

Depreciation replacement cost and market

Property, plant & equipment

valuation

Impairment and derecognition All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset’s recoverable

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected

The AFP’s intangibles comprise of internally developed and externally acquired software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Depreciation and amortisation expense Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to AFP using the straight-line method of depreciation. Depreciation and amortisation rates have been applied to each class of asset based on the following useful lives:

Buildings on freehold land 10 to 40 years

Buildings on leasehold land 4 to 60 years

Leasehold improvements 15 years or lease term

Other property, plant and equipment 1 to 30 years Software assets 2 to 20 years

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

Software is amortised on a straight-line basis over its estimated useful life. The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

Inventories Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition. Inventory held by the AFP includes uniforms and goods held for distribution.

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Note 2.3: Payables Note 2.3A: Supplier payables 2020i 2019i

$'000i $'000i

Trade creditors and accruals 65,443 75,448

Operating lease rentals1 - 25,479

Total supplier payable 65,443 100,927

1.

Balances reflecting previous lease accounting were adjusted against opening retained earnings on transition to AASB 16. The AFP has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

Note 2.3B: Other payables 2020i 2019i

$'000i $'000i

Wages and salaries 15,970 10,603

Superannuation 1,908 989

Unearned income 17,656 6,967

Other payables 1 27

Total other payables 35,535 18,586

Note 2.3: Accounting policy Recognition and measurement of supplier and other payables: payables are carried at the amount owing to parties for goods and services provided, which is usually the invoice amount. Settlement is usually made within 7 days (2019: 7 days).

Note 2.4: Interest bearing liabilities 2020i 2019i

$'000i $'000i

Leases Land 217 -

Buildings 1,013,024 -

Property, plant and equipment 33,351 -

Total interest bearing liabilities 1,046,592 -

The AFP has applied AASB 16 Leases using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117. Lease disclosures should be read in conjunction with accompanying notes 1.1 and 2.2.

The cash outflow for leases for the year ended 30 June 2020 was $111.604m, comprising $97.223m in principal repayments and $14.381m in interest payments.

Note 2.4: Accounting policy On adoption of AASB 16 Leases, the AFP recognised right-of-use assets and lease liabilities in relation to leases of office space, vehicles and other equipment which had previously been classified as operating leases. Under AASB 16, the AFP recognises lease liabilities for most leases, however has elected not to recognise lease liabilities for some leases of low value assets based on the value of the underlying asset when new or for short-term leases with a lease term of 12 months or less.

The lease liabilities were measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate as at 1 July 2019. The incremental borrowing rate is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and conditions. The AFP has applied zero coupon yields to calculate the incremental borrowing rate applicable to each of its leases. Given that each lease has a unique lease term, the derived incremental borrowing rates varies for lease to lease. The weighted-average rate applied was 1.4%.

Australian Federal Police

Notes to and forming part of the financial statements

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Note 2.5: Other provisions Provision for restoration Provision for Provision for

obligations settlements relocations Total

$'000 $'000 $'000 $'000

As at 1 July 2019 24,783 3,500 3,216 31,499

Additional provisions made 2,280 - 6,472 8,752

Amounts used (45) - (1,858) (1,903)

Provisions not realised - (3,500) (2,616) (6,116)

Revaluation 4,940 - - 4,940

Unwinding of discount 560 - - 560

Total as at 30 June 2020 32,518 - 5,214 37,732

Note 2.4A: Accounting policy Provisions Provisions are recognised when the AFP has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a rate that reflects the risks specific to the lability. When discounting is used, the increase in the provision due to the unwinding of the discount or change in the discount rates is recognised in the Statement of comprehensive income.

Provision for restoration obligations The provision for restoration obligations relates to leased accommodation where the AFP is required to restore the premises upon termination of the lease. The original estimates for future costs associated with restoration obligations are determined by independent valuation and discounted to their present value. The original provisions are adjusted for changes in expected future cost and the discount rate.

The AFP has 44 (2019: 43) agreements for leases of premises which have provisions requiring the AFP to restore the premises to their original condition at the conclusion of the lease. The AFP has made a provision to reflect the present value of this obligation.

Provision for legal settlement The AFP provision for legal settlements includes legal claims made against the AFP which the AFP believes it will have to settle.

Provision for relocations Staff relocations are payments which staff are entitled to for relocating but are yet to fully claim.

Australian Federal Police

Notes to and forming part of the financial statements

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Note 3.1: Employee provisions

2020i 2019i1

$'000i $'000i

Leave 335,383 329,771

Underpayment of superannuation 78,697 70,678

Unpaid overtime 3,090 9,151

Other 50 50

Total employee provisions 417,220 409,650

Breakdown of employee provisions - amount of employee provisions expected to be settled in less than 12 months 175,154 169,395

- amount of employee provisions expected to be settled in more than 12 months 242,066 240,255

Total employee provisions 417,220 409,650

1

Adjusted 2018-19 figures. Refer to Note 3.4 for the adjustment and accounting policy in relation to the superannuation provision and Note 4.4.

Note 3.1: Accounting policy

Recognition and measurement of employee benefits Employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if there is a present legal obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Leave The leave liabilities are annual and long service leave. The liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the AFP’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. An actuary review is performed every 3 years. A formal actuarial review was conducted as at 30 June 2019.

Employee provision Employee provisions due within twelve months of the end of the reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Employee provisions which are expected to be settled beyond 12 months (commonly long service leave), are discounted to present value using market yields on the 10-year government bond rate.

Superannuation The AFP's employees are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or a nominated superannuation fund. The CSS and PSS are defined benefit plans for the Australian Government. All other superannuation funds are accumulation plans.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes. The AFP makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the government. The AFP accounts for the contributions as if they were contributions to defined contribution plans.

Key estimate Employee provisions which are expected to be settled beyond 12 months required management judgement and independent actuarial assessment of key assumptions, including, but not limited to:

- future salaries and wages increases; - future on-cost rates; and - period of service and attrition; and - discounted to present value using market yields on 10 year government bonds.

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Note 3.2: Key management personnel remuneration Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the AFP. The AFP has determined the key management personnel to be the members of the Executive Leadership Committee, including any member whom has acted for 30 days or more continuous. Key management personnel remuneration is reported in the table below. Included are those who have acted in any of the above mentioned roles deemed as key management personnel or who have departed prior to reporting date.

2020i 2019i

$'000i $'000i

Short-term employee benefits 2,531 2,463

Post-employment benefits 380 394

Other long-term employee benefits 61 64

Termination benefits 620 -

Total key management personnel remuneration expenses1 3,592 2,921

The total number of key management personnel included in the above table is 13 including 3 acting in management positions (2019: 9 including 2 acting in management positions). The number of key management personnel roles at 30 June 2020 was 6 (2019: 6 roles).

The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity. 1

Key management personnel is included in the Home Affairs KMP remuneration tables for part of the year, and this amount has been excluded from AFP figures to avoid duplication.

Note 3.3: Related Party Disclosures The AFP is an Australian Government controlled entity. Related parties to this entity are Key Management Personnel including the Portfolio Minister and Executive, and other Australian Government entities.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the AFP, it has been determined that there are no related party transactions to be separately disclosed.

Note 3.4: Prior year restatement Provision The prior period error relates to unpaid employee entitlements for superannuation. An estimate of the associated cost has been recognised in the opening balances for 2018-19 to the extent applicable to earlier years.

Following clarification on inclusion of entitlements to superannuation, the provision has been increased from the error recognised in the prior year. The current year correction accounts for additional superannuation payable on certain components of employee benefits not previously included in the superannuation calculations.

Reported Restated

2018-19 Correction 2018-19

$'000i $'000i $'000i

Employee Benefits expense 924,083 4,117 928,200

Employee Provision 397,594 12,056 409,650

Opening Equity (917,803) (7,939) (925,742)

Closing Equity (1,027,161) (12,056) (1,039,217)

The provision is based on management's assessment of the range of potential outcomes taking into account independent advice. The estimate is subject to uncertainty such that the final outcome may be lower or higher than the amount reported as at 30 June 2019, as there are several eligibility criteria to be assessed when unpaid entitlements are calculated for each affected employee.

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Note 4.1: Appropriations Note 4.1A: Revenue from government 2020i 2019i

$'000i $'000i

Departmental appropriations 1,128,302 1,103,344

Total revenue from government 1,128,302 1,103,344

Note 4.1A: Accounting policy Revenue from government Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue from government when the AFP gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Note 4.1B: Annual and unspent appropriations

2020i 2019i

$'000i $'000i

Annual Appropriations Opening unspent appropriation balance 273,432 285,488

Annual appropriation - operating 1 1,127,943 1,100,464

Annual appropriation - capital budget 2 78,251 58,623

Annual appropriation - equity injection 53,319 70,909

PGPA Act Section 74 receipts 309,529 281,947

Total appropriation available 1,842,474 1,797,431

Appropriation applied (current and prior years) 1,555,549 1,523,999

Closing unspent appropriation balance 286,925 273,432

Balance comprises appropriations as follows:

Appropriation Act (No. 1) 2017–18 1 160 160

Appropriation Act (No. 1) – Capital Budget (DCB) – Non Operating – 2017–18 1 4,091 4,091

Appropriation Act (No. 2) – Equity Injection – 2017–18 7,664 8,881

Appropriation Act (No. 4) – Equity Injection – 2017–18 2,332 2,874

Appropriation Act (No. 1) 2018-19 - 140,895

Appropriation Act (No. 1) – Capital Budget (DCB) – Non Operating – 2018–19 1 - 8,768

Appropriation Act (No. 2) - Equity Injection - 2018-19 21,033 46,554

Appropriation Act (No. 3) 2018-19 - 49,231

Appropriation Act (No. 4) - Equity Injection - 2018-19 238 507

Appropriation Supply Act (No. 1) 2019-20 91,000 -

Appropriation Supply Act (No. 2) - Equity Injection - 2019-20 14,463 -

Appropriation Act (No. 1) 2019-20 115,853 -

Appropriation Act (No. 2) - Equity Injection - 2019-20 16,758 -

Appropriation Act (No. 4) - Equity Injection - 2019-20 2,000 -

Appropriation – Cash on hand / at bank 11,333 11,471

Total unspent appropriation 286,925 273,432

All amounts are GST exclusive

1. The following amounts are included in unspent annual appropriations, as the amounts have not been formally reduced (by law). They have been reduced by permanent quarantine under section 51 of the PGPA Act which constitutes a permanent loss of control. They are included in this note, however do not form part of the appropriation receivable balance at note 2.1B.

• $0.160m – Appropriation Act (No.1) 2017–18 • $4.091m – Appropriation Act (No.1) Capital Budget (DCB) 2017–18 • $6.780m – Appropriation Act (No.2) Equity Injection 2018–19

2. Departmental Capital Budgets are appropriated through Appropriation Acts (No.1,3,5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.

At 30 June 2020 the AFP recognised a receivable at Note 2.1B of $3.699m for a no win / no loss arrangement to cover additional FBT expense related to living away from home allowance, to be received in 2020-21. This met the formal recognition criteria under section 51 of the PGPA Act; however, as the appropriation had not been formally appropriated by law, it is not represented in this note (2019: receivable of $1.146m).

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Australian Federal Police

Notes to and forming part of the financial statements

Note 4.1C: Annual and unspent administered appropriations 2020i 2019i

$'000i $'000i

Opening unspent appropriation balance 3,435 4,423

Annual appropriation - operating 1 9,115 15,958

Total available appropriation 12,550 20,381

Appropriation applied (current and prior years) 9,031 16,946

Closing unspent appropriation balance 3,519 3,435

Balance comprises appropriations as follows: Appropriation Act (No. 1) 2017–18 7 7

Appropriation Act (No. 1) 2018-19 6 395

Appropriation Act (No. 3) 2018-19 1,464 2,173

Appropriation Supply Act (No. 1) 2019-20 10 -

Appropriation Act (No. 1) 2019-20 785 -

Appropriation Act (No. 3) 2019-20 1,247 -

Appropriation – Cash on hand / at bank - 860

Total unspent appropriation - ordinary annual services 3,519 3,435

All amounts are GST exclusive. 1. The following amounts are included in unspent annual appropriations, as the amounts have not been formally reduced (by law). They have been reduced by permanent quarantine under section 51 of the PGPA Act which constitutes a permanent loss of control.

• $0.007m – Administered Appropriation Act (No.1) 2017–18 • $0.006m – Administered Appropriation Act (No.1) 2018–19 • $1.464m – Administered Appropriation Act (No.3) 2018–19

Note 4.2: Net cash appropriation arrangements From 2010–11, the government introduced net cash appropriation arrangements whereby revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are appropriated in the period when cash payment for capital expenditure is required.

The inclusion of depreciation/amortisation expenses related to ROU leased assets and the lease liability principal repayment amount reflects the cash impact on implementation of AASB 16 Leases, it does not directly reflect a change in appropriation arrangements.

2020i 2019i

$'000i $'000i

Total comprehensive income (loss) less depreciation/amortisation expenses 1 (33,391) (22,821)

Movement in revaluation reserve 22,877 -

Plus: Depreciation/amortisation expenses not funded through revenue appropriation 1 (90,139) (90,654)

Plus: Depreciation right-of-use assets (110,188) -

Less: Principal repayments - leased assets2 97,222 -

Total comprehensive income (loss) - per the Statement of comprehensive income (113,619) (113,475)

1. The comprehensive income (loss) per the Statement of comprehensive income is ($113.619m) (2019: ($113.475m)). The depreciation/amortisation expense per the Statement of comprehensive income is $203.319m including depreciation on right-of-use assets (2019: $93.459m). The amount presented above for these two items has been reduced by $2.992m (2019: $2.641m), representing the depreciation/amortisation expense funded by the ACT Government for Outcome 2. 2.

Principal repayments - leased assets of $97.222m per the Statement of cash flows includes prepaid lease payments of $2.493m. The comprehensive loss for 2019-20 excluding the impact of the lease prepayments is ($30.898m).

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Note 4.3: Special accounts The AFP has one special account that contains the receipt of monies temporarily held in trust or otherwise for the benefit of a person other than the Commonwealth, for the payment of monies in connection with services performed on behalf of other governments and non-agency bodies and for expenditure related to providing secretariat support in relation to the detection and prevention of money laundering in the Asia–Pacific region and carrying out activities that are incidental to this purpose.

Services for other entities and trust moneys account (SOETM) 1 2020i 2019i

$'000i $'000i

Balance brought forward from previous year 53,084 50,706

Increases Appropriation credited to special account 3,738 2,921

Departmental receipts (AIPM2 and APG3) 13,870 8,931

Other receipts 47,042 31,928

Total increases 64,650 43,780

Decreases Departmental payments (AIPM and APG) (15,499) (13,013)

Other payments (59,085) (28,389)

Total decreases (74,584) (41,402)

Balance carried to next year and represented by: 43,150 53,084

Cash – held by the agency 4,605 3,496

Cash – held by the agency on trust 31,045 43,088

Monies – held by the OPA 7,500 6,500

Total balance carried to the next year 43,150 53,084

All amounts are GST exclusive. 1. Appropriation: Public Governance, Performance and Accountability Establishing Instrument: Financial Management and Accountability (Establishment of Special Account for Australian Federal Police) Determination 2011/03 . Date established: 17 May 2011.

2. Accounting for the Australian Institute of Police Management (AIPM)

The purpose of the AIPM is to provide executive development and education services to Australasian police forces. The AIPM is hosted by the AFP. It also reports on its performance to a Board of Control that is comprised of police Commissioners from Australia and New Zealand.

3. Accounting for the Asia– Pacific Group (APG) on Money Laundering

The purpose of the APG on Money Laundering is to facilitate the adoption, implementation and enforcement of internationally accepted anti-money-laundering and anti-terrorist-financing standards. The APG is hosted by the AFP. It also reports on its performance to the members of the APG.

The AIPM and APG operate within the corporate governance framework of the AFP and the AFP's policies apply in all aspects of the AIPM and APG's functions. All staff members are staff members of the AFP. The AIPM is partly funded from AFP annual departmental appropriations. The AFP has effective control of the AIPM and APG and therefore AIPM and APG transactions are consolidated into the financial statements of the AFP.

AIPM and APG transactions are contained within the special account, 'Services for other entities and trust moneys account', in addition to being consolidated within the AFP financial statements. As a special account, AIPM and APG funds can only be used for the purpose specified.

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Australian Federal Police

Notes to and forming part of the financial statements

Note 4.4: Contingent liabilities and contingent assets Contingent liabilities and assets are not recognised in the Statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

The AFP has contingent liabilities in respect of legal claims. The amounts are still under negotiation, the remainder are unquantifiable at 30 June.

The AFP had no administered contingent liabilities or contingent assets at 30 June 2020 (2019: nil).

Unquantifiable contingencies The AFP has unquantifiable contingencies in relation to a potential underpayment of employee costs resulting from interpretations of Enterprise Agreements and other employee arrangements. The quantum is indeterminate as the obligation is not considered probable.

If a matter prosecuted by the AFP is defended successfully, the court may order that the AFP meet certain costs incurred by the defence.

Any contingencies that may arise relating to compensation matters are covered by AFP’s insurance providers Comcare and Comcover.

If a matter is being litigated by the AFP and assets are restrained under the Proceeds of Crime Act 1987 or the Proceeds of Crime Act 2002 , the AFP gives an undertaking against potential damages caused to the person(s) whose assets have been restrained. If the proceeds of crime action is unsuccessful, damages may be awarded against the AFP. In addition, cost orders may be made against the AFP if a proceeds of crime action is unsuccessful. Costs awarded are met from the AFP or client organisations' annual appropriations. Damages may be covered by Comcover where Comcover assesses that the liability is covered by the AFP’s insurance policy.

Although costs and damages may be awarded against the AFP from time to time, the AFP is unable to declare an estimate of liabilities not recognised nor undertakings due to the uncertainty of the outcome of matters but, more particularly, due to the sensitivity of the information related to matters still before the courts.

Note 4.5: Aggregate assets and liabilities 2020i 2019i

$'000i $'000i

Assets expected to be recovered in: No more than 12 months 342,730 345,587

More than 12 months 1,712,478 631,111

Total assets 2,055,208 976,698

Liabilities expected to be settled in: No more than 12 months 279,011 295,287

More than 12 months 1,323,511 265,375

Total liabilities 1,602,522 560,662

All administered assets and liabilities are expected to be settled in no more than 12 months.

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Note 5.1: Budget reporting and major budget variances The Statement of comprehensive income, the Statement of financial position and the Cash flow statement provide a comparison of the original budget as presented in the 2019–20 Portfolio Budget Statements (PBS) to the 2019–20 actual outcome. No comparison has been provided for the Statement of changes in equity as major changes between the PBS and the actual outcome are explained by movements in the Statement of comprehensive income and the Statement of financial position.

Note 5.1A: Departmental major budget variances for 2020

(i) Employee benefits (Statement of comprehensive income) and (Cash flow statement)

Employee benefit expenses were $943.682m, $34.463m higher than the budget estimate of $909.219m. The variance is primarily due to the recognition of additional provisions for unpaid employee on costs relating to superannuation on certain allowances and increased costs relating to increased leave provisions.

(ii) Supplier expenses (Statement of comprehensive income) and (Cash flow statement)

Supplier expenses were $403.343m, $103.018m lower than the budget estimate of $506.361 due to the transition to AASB 16 Leases, resulting in the recognition of operating lease payments against the finance lease liability, not reflected in the budget estimates and lower operational costs across supplier expense categories.

(iii) Depreciation and amortisation expenses (Statement of comprehensive income)

Depreciation and amortisation expenses were $203.319m, $96.337m higher than the budget estimate of $106.982m due to the transition to AASB 16 Leases and the recognition of depreciation expenses on leased right-of-use assets, not reflected in the budget estimates.

(iv) Finance costs (Statement of comprehensive income) and (Cash flow statement)

Finance costs were $14.941m compared to the budget estimate of nil due to the transition to AASB 16 Leases and the recognition of interest expense on lease liabilities, not reflected in the budget estimates.

(v) Trade and other receivables (Statement of financial position)

Trade and other receivables were $285.005m, $20.804m higher than the budget estimate of $264.201m. This is due to an additional $12.222m provided in Additional Estimates and $8.5m increase in goods and services receivables at year end.

(vi) Revaluation of property, plant and equipment (Statement of comprehensive income) Revaluation of property, plant and equipment was $22.877m compared to the budget estimate of nil. The budget did not include the impact of the asset revaluation of $22.877m.

(vii) Land and buildings (Statement of financial position) and (Cash flow statement)

Land and buildings were $1,361.999m, $1,036.561m higher than the budget estimate of $325.438m. The variance is due to the recognition of leased right-of-use assets on transition to AASB 16 Leases, not reflected in the budget estimates.

(viii) Suppliers payable (Statement of financial position) and (Cash flow statement)

Supplier payables were $65.443m, $49.965m lower than the budget estimate of $115.408m. The variance is due to lease accruals no longer recognised under supplier payables due to transition to AASB 16 Leases and lower than expected payables at year end.

(ix) Lease liabilities (Statement of financial position)

Lease liabilities were $1,046.592m compared to the budget estimate of nil due to the recognition of finance lease liabilities for buildings and property, plant and equipment on transition to AASB 16 Leases.

(x) Employee provisions (Statement of financial position) and (Cash flow statement)

Employee provisions were $417.220m, $90.568m higher than the budget estimate of $326.652m. The variance is due to underestimated provisions which were increased by $58.975m through Additional Estimates, recognition of additional provision for unpaid employee on costs relating to superannuation on certain allowances, and less leave taken over the period.

Australian Federal Police

Notes to and forming part of the financial statements

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APPENDIXES

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132

Appendix A: Professional standards and AFP conduct issues AFP Professional Standards (PRS) is responsible for the development and maintenance of a robust and

transparent framework to safeguard and strengthen the integrity of the AFP. It operates under Part V

of the Australian Federal Police Act 1979 (Cth) (AFP Act) to support the organisation and its appointees

through the AFP’s integrity framework, based on the key elements of prevention, detection, response

and continuous improvement.

PRS focuses on continuous improvement and uses sophisticated data-driven methods to identify

trends, risks and vulnerabilities to inform the AFP executive of the organisation’s integrity health.

Education, including demystifying the work and role of PRS, is also a current area of focus. This

includes sharing sanction outcomes and case studies as learnings, thus enhancing professional

standards being embodied by the organisation and its members.

Complaint management Part V of the AFP Act defines the categories of complaints about AFP appointees. Complaints are dealt

with as breaches of the AFP Code of Conduct. Code of Conduct issues fall into one of four categories:

● The lowest, and least serious, is category 1

● The next highest, and next most serious, is category 2

● The next highest, and next most serious, is category 3

● The highest, and most serious, is conduct giving rise to a corruption issue (category 4).

Corruption issues as defined by the Law Enforcement Integrity Act 2006 (Cth) can be deemed to

be either significant or non-significant corruption and are notified to the Australian Commission

for Law Enforcement Integrity (ACLEI). Corruption issues may be investigated by:

● ACLEI

● jointly between ACLEI and the AFP

● the AFP without ACLEI oversight or management

● the AFP with ACLEI oversight or management.

If conduct would otherwise belong to more than one category, it is taken to belong to the higher

or highest of those categories.

In 2019–20 the AFP received a total of 306 complaints—a 16.16 per cent decrease on the figure of 365

in the previous reporting period. The number of new alleged breaches of the AFP Code of Conduct

resulting from these complaints was 586, 10.26 per cent lower than the corresponding figure

for 2018–19 (653).

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133

Table A1 Categories of AFP conduct issues and case examples

Category 1 Incident: Customer service—unreasonable delay (established)

A member of the public made a complaint about the lack of contact by ACT Policing in relation to a theft

in the ACT. The complainant had not received any contact from ACT Policing in relation to the theft within

six months of the incident being reported. The complaint was found to be established on the basis that

the officer did not provide adequate contact with the member of the public that would comply with section

4(b) of the Victims of Crime Act 1994 (ACT). The officer was required to undergo formal counselling and

the matter was recorded on the officer’s performance development agreement.

Category 2 Incident: Inappropriate breach of guide—failure to comply with procedure (established)

A member of the public made a complaint about the failure to return property within a reasonable time

frame. The property was provided to ACT Policing to assist with enquiries in relation to a theft in the ACT.

The investigation identified that the property was not lodged according to the AFP’s Property Handling

Guidelines, which caused the delay in returning the property to the owner. The complaint was found to be

established on the basis that the officer provided inadequate service (category 1) and failed to comply with

procedure (category 2). The officer was counselled in relation to the Property Handling Guidelines and

complying with victims of crime legislation.

Category 3 Incident: Information access (established)

A member was identified as having accessed the AFP’s Police Real-time On-line Management Information

System (PROMIS) to search their own name and those of family members on multiple occasions without

lawful authority. Use of the PROMIS must be for a purpose related to a member’s employment.

This incident was identified as a result of an audit undertaken by the AFP’s information technology area.

The complaint was found to be established on the basis that the conduct demonstrated carelessness

in the member’s lack of adherence to National Guidelines and in their failure to comply with the use

of systems for official use only. The member received a formal warning and formal counselling and was

required to undertake training on information management, and the matter was recorded on the member’s

performance development agreement.

Category 4

(Corruption)

Incident: Unlawful disclosure of information (established)

In 2019 a complaint was made alleging that an official AFP document had been released externally to

a member of the public. The investigation identified that a member of the AFP had unlawfully disclosed

official information. This conduct breached AFP governance and was found to be established on the basis

that the member engaged in corrupt conduct when they disclosed operational information without

authorisation. The conduct was identified as non-significant corruption in that the member’s conduct

constitutes an abuse of office. The member resigned during the investigation.

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134

Table A2 Alleged conduct breaches recorded by category, 2016–17 to 2019–20

2016–17 2017–18 2018–19 2019–20

All AFP

Category 1 105 96 117 84

Category 2 316 323 259 209

Category 3 333 183 197 202

Category 4 87 80 80 91

Total 841 682 653 586

Conduct breaches are individual issues identified within a complaint. Multiple breaches may be applied when two or more complaint

issues are identified from information supplied by a complainant or when two or more members are subject to a complaint.

Table A3 Alleged complaints recorded by source, 2019–20

Source Number of alleged complaints Percentage

Anonymous member of the public 7 2%

Member of the public 97 32%

Another AFP member 183 60%

Self-reported 19 6%

Total 306 100%

Table A4 Finalised conduct breaches by category, 2019–20

Established Not established Withdrawn Discretion not to Total finalised

proceed

All AFP

Category 1 15 91 6 23 135

Category 2 137 93 3 66 299

Category 3 98 157 0 47 302

Category 4 1 29 0 22 52

Total AFP 251 370 9 158 788

Percentage 32% 47% 1% 20% 100%

Conduct breaches are individual issues identified within a complaint. Multiple breaches may be applied when two or more complaint

issues are identified from information supplied by a complainant or when two or more members are subject to a complaint.

Section 40TF of the AFP Act sets out the circumstances under which the Commissioner may decide to take no further action in relation

to a conduct issue. These circumstances include when appropriate action has already been taken or further investigation is determined

to be not warranted or the alleged issue took place more than 12 months before reporting.

This table includes matters reported before 1 July 2019 and finalised during 2019–20.

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135

Table A5 Prohibited drug tests conducted, 2019–20

Category 2019–20

Mandatory applicant testing 586

Mandatory targeted and random testing 2,481

Mandatory investigation and certain incident testing 3

Total 3,070

The term ‘certain incident’ relates to an incident where a person is seriously or fatally injured in an incident involving a motor vehicle

or while in police custody, or a person is seriously or fatally injured by a firearm discharging or physical force.

AFP Annual Report

2019–20

136

Appendix B: Staffing statistics and executive remuneration

Table B1 Ongoing employees by location, 2019–20 Male Female Indeterminate Total

Full time Part time Total male Full time Part time Total female Full time Part time Total

NSW 685 7 692 202 27 229 0 0 0 921

Qld 323 1 324 136 18 154 1 0 1 479

SA 97 0 97 29 10 39 0 0 0 136

Tas 2 0 2 3 0 3 0 0 0 5

Vic 458 7 465 158 47 205 0 0 0 670

WA 234 3 237 63 11 74 0 0 0 311

ACT 2,026 20 2,046 1,462 261 1,723 3 0 3 3,772

NT 110 0 110 27 0 27 0 0 0 137

Commonwealth

15 0 15 7 0 7 0 0 0 22

territories

Overseas

115 0 115 56 0 56 0 0 0 171

Total

4,065 38 4,103 2,143 374 2,517 4 0 4 6,624

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137

Table B2 Non-ongoing employees by location, 2019–20 Male Female Indeterminate Total

Full time Part time

1 Total male Full time Part time

1 Total female Full time Part time

1 Total

NSW 13 5 18 21 8 29 0 0 0 47

Qld 2 1 3 5 4 9 0 0 0 12

SA 0 0 0 2 0 2 0 0 0 2

Tas 0 0 0 0 0 0 0 0 0 0

Vic 1 1 2 7 6 13 0 0 0 15

WA 0 1 1 4 3 7 0 0 0 8

ACT 26 31 57 37 21 58 0 0 0 115

NT 0 0 0 1 0 1 0 0 0 1

Commonwealth territories

3 3 6 1 0 1 0 0 0 7

Overseas 2 0 2 1 0 1 0 0 0 3

Total 47 42 89 79 42 121 0 0 0 210

1. Casual employees are included in part-time figures.

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138

Table B3 Ongoing employees by location, 2018–19 Male Female Indeterminate Total

Full time Part time Total male Full time Part time Total female Full time Part time Total

NSW 647 7 654 210 36 246 0 0 0 900

Qld 329 2 331 122 19 141 1 0 1 473

SA 94 0 94 24 11 35 0 0 0 129

Tas 3 0 3 2 0 2 0 0 0 5

Vic 454 8 462 154 49 203 0 0 0 665

WA 224 3 227 61 9 70 1 0 1 298

ACT 2,042 31 2,073 1,380 267 1,647 1 0 1 3,721

NT 67 0 67 19 1 20 0 0 0 87

Commonwealth

12 0 12 5 0 5 0 0 0 17

territories

Overseas

141 0 141 72 0 72 0 0 0 213

Total

4,013 51 4,064 2,049 392 2,441 3 0 3 6,508

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139

Table B4 Non-ongoing employees by location, 2018–19 Male Female Indeterminate Total

Full time Part time

1 Total male Full time Part time

1 Total female Full time Part time

1 Total

NSW 11 0 11 11 3 14 0 0 0 25

Qld 0 0 0 5 0 5 0 0 0 5

SA 0 0 0 1 0 1 0 0 0 1

Tas 0 0 0 0 0 0 0 0 0 0

Vic 3 0 3 4 0 4 0 0 0 7

WA 0 0 0 2 1 3 0 0 0 3

ACT 36 8 44 50 10 60 0 0 0 104

NT 0 0 0 0 1 1 0 0 0 1

Commonwealth 2 3 5 1 0 1 0 0 0 6

Territories

Overseas 3 0 3 0 0 0 0 0 0 3

Total 55 11 66 74 15 89 0 0 0 155

1.

Casual employees are included in part

-time figures.

139

AFP Annual Report

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140

Table B5 Remuneration for key management personnel Short‑term benefits Post‑employment Other long‑term benefits

benefits

Name

Position title

1 Base Bonuses Other Superannuation Long service Other Termination Total

salary

2 benefits and contributions

4 leave

5 long‑term benefits

6 remuneration

7

allowances

3 benefits

$ $ $ $ $ $ $ $

Reece

Kershaw

8

Commissioner

521,675

-

4,004

66,635

11,657

-

-

603,971

Andrew Colvin

9

Commissioner

162,907

- 201 18,582 3,974 - - 185,664

Darren Box

10 Chief Operating Officer 160,338 - 6,436 26,819 3,730 - - 197,323

rd 11

Suzanne Bi

Chief Operating Officer

188,230

-

10,467

29,746

4,543

-

340,344

573,330

Raymond Johnson

12

Chief Police Officer

72,695

-

13,713

40,642

6,056

-

279,239

412,345

Neil Gaughan

13

Chief Police Officer

40,717

-

-

6,289

980

-

-

47,986

Ian McCartney

14

Deputy Commissioner

191,610

-

4,931

28,747

4,543

-

-

229,831

Investigations

e

15

Lesa Gal

Deputy Commissioner

42,652

-

5,243

6,330

985

-

-

55,210

Investigations

ose

16

Leanne Cl

Deputy Commissioner 201,295 - 5,258 24,492 3,918 - - 234,963

Investigations

Brett Pointing

17

Deputy Commissioner

159,000

- - 22,976 3,567 - - 185,543

Operations

e

18

Lesa Gal

Deputy Commissioner

25,738

-

3,164

3,820

594

-

-

33,316

Operations

Neil Gaughan

19

Deputy Commissioner

297,972

-

-

46,024

7,173

-

-

351,169

Operations

Karl Kent

20

Deputy Commissioner Specialist

273,921

-

13,579

44,354

6,628

-

-

338,482

& Support Operations

Simon Walsh

21

Deputy Commissioner Specialist

72,058 - 249 10,887 1,759 - - 84,953

& Support Operations

Ramzi Jabbour

22

Deputy Commissioner Specialist

52,210

-

791

4,037

884

-

-

57,922

& Support Operations

Total

2,463,018

-

68,036

380,380

60,991

-

619,583

3,592,008

140

AFP Annual Report 2019–20

141

1. h T e AF P h s a d erm et n i ed h t ey e k m n a g a en em t ers p n on el ( M K ) P o b t h e t e C m om ss i on i er,

e D pu y t C mmiss o n io e s r , h C ief o P lice f O fice , r a d n Ch e i f p O r e a in t g f O i f e c , r nd a ny a o he t r

m b em s er f o h t e A FP E u xec i t e B v a o . rd n I c u l d d e a n re i d v i d i a u s l w o h h v a c e a ed t n i a KM P e rol

for a on c i t u n o s u p od eri of a 30 d s y or ore, m or d p e rt a ed ri p o or t o rep i rt g n a d e. t et D i a s l

of en S or E i u xec i t e S v i erv e e c p m oy l en m t rr a n a em g n e s t c n a b e u fo d n n i h C p a e t r 4 .

2. s Ba e s l a r a y n i u cl s de s l a r a y pa d a i d n ccr a e u d, a n n ual l a e e v a r cc ue n d a igh d h r e u d i t s e

allow n a c s e .

3. O h t r e e b e n i f s t a d n l a o l a w c n s e n i l c d u s e n n o m - et on ry a b n e f e i s t n i c u l ed d n i h t e F n ri e g

en B f e i s t a T F x ( B ) T R u et n r f h or t e e y r a end d e 31 Ma h rc 20 u 20 s h c s a h t e p ov r s i i n o of m or ot

e v hicle e b e n fit . s It also n i c d lu es a h a e h lt and f n it s e s allo a w n e c , n a d a s s o ia c e t d F T B .

4. F n or i i d i v u d a s l n i a ef d n i ed c n o ri t u b t on i s h c em f e ( m or exa l p u e P l b c i ec S u tor S p n era u n a i t n o

ac u c u m l i at n o an pl P ( S S ) ap d an u s r pe h c o c i ), e u s e p a r n n a u i t n o n i l c d u s e s p u r e n a u n t a o i n

con r t u ib t n io amo n u s t . For n i d id iv a u ls in a e d e fin d b n e f e it sc e h me f ( or e a x mple P b u lic

u S e p a r n n a u i t n o c S e h e m P ( S) S a d n o C m m n o e w l a h t u S e p a r n n a u i t n o c S e h e m C ( S S ) ) ,

u s e p a r n n a u i t n o n i l c d u s e t e h e r e l a v t n N t o o i a n l m E l p er oy C n o ri t u b i t on R t a n e a d h t m e E l p er oy

Prod c u iv t y it u S per n a u n at n io C n o r t u ib io t n .

5. L n o g s rv e c i ea e l e c v p om s ri s e h t m e a n ou t of ea l e a v c c u r d e .

6. erm T n i t a on i b ef en i s t re p a y a en m s t h t t a m y a e m b d a n e i el r t a on i t h o t es e c s t a on i f o a KMP

posit n io f o r h m t e AFP .

7. ot T l a u rem era n i t n o s i c l a u c l t a ed on n a a c c u r l a b s a s i n i cc a d or n a e c wi h t A A B S m 119 E l p oy e e

en B f e i s t wi h t h t ep e exc i t n o of su era p u nn a i t n o a d n on n - o m e n a t y r b n e f e t i . s h T s i m a e s n ha t t

h t ere a i re d f f en er es c b w et n ee u rem n t era on i d erm et n i ed y b h t e R u em ne t ra on i ri T u b nal

an d t e rem h n u era i t n o d s i l c ed os n i h t a e t l b e.

8. C m om n e c d e M K P ol r n e i O t c er 2 ob 19. 0

9. ea C ed s M K P ol r n e i O t c b o 019 er 2 .

10. n I l c d u s e r m e n u r e t a o i n w i h e l c a i t g n n K i P M o r e l .

11. ea C ed s M K P ol r n e i J n a u ry a 202 0.

12. ea C ed s M K P ol r n e i M y a 020 2 .

13. Co n mme c d e M K P o r le in Ma y 20 20.

14. C m om n e c d e M K P ol r n e i O t c er 2 ob 19. 0

15. n I l c d u s e r m e n u r e t a o i n w i h e l c a i t g n n i K P M o r e l .

16. ea C ed s M K P ol r n e i ec D b em 019 er 2 .

17. C m om n e c d e M K P ol r n e i J n a u ry a 20 20.

18. n I l c d u s e r m e n u r e t a o i n w i h e l a t c ng i n i K P M o r e l .

19. ea C ed s M K P ol r n e i M y a 020 2 .

20. Co n mme c d e M K P o r le n i O t c er 2 ob 19. 0 or t F e p h od eri u J y l 201 o O 9 t t c b o 19, er 20

Karl K n e t (De u p y t Co s mmi s n io r e Tr n a snat n io a e l S r u io s n a d r O a g n s i ed r C ime) is inc u l d d e

in h t e H m o e f Af i a s r K P M e r u m e n a r i t n o t b a e l , s n a d h s a e b n e x e l c d u d e r f m o AF P i f u g e r s

to a o v id d p u lica io t n .

21. Incl d u s e r m e n u r e t a o i n w i h e l ac i t g n n i K P M o r e l .

22. ea C ed s M K P ol r n e i u A g s u t 201 9.

141

AFP Annual Report

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142

Table B6 Remuneration for senior executives

Short‑term benefits Post‑employment Other long‑term benefits Termination Total

benefits benefits remuneration

Total remuneration

Number of Average base Average Average other Average Average Average Average Average total

bands

senior salary (b) bonuses benefits and superannuation long service other termination remuneration

executives allowances (c) contributions (d) leave (e) long‑term benefits (f) (g)

(a) benefits

$

$

$

$

$

$

$

$

$0 –

$225,000

25

92,247

-

5,931

18,807

5,890

-

3,192

126,067

$225,001

– $250,000

12

199,914

-

3,789

31,666

5,330

-

474

241,173

$250,001

– $275,000

18

213,439

-

8,375

35,028

5,383

-

1,473

263,698

$275,001

– $300,000

14

230,639

-

10,684

37,274

5,722

-

-

284,319

$300,001

– $325,000

6

225,214

-

12,435

36,010

5,723

-

26,600

305,982

$325,001

– $350,000

6

267,097

-

15,849

43,991

6,752

-

-

333,689

$350,001

– $375,000

3

227,875

-

26,626

34,884

6,133

-

65,613

361,131

$375,001

– $400,000

1

294,052

-

29,766

44,840

7,261

-

-

375,919

$425,001

– $450,000

1

293,469

-

79,565

45,897

7,119

-

-

426,050

(a)

Senior executives comprises AFP employees declared Band 1, 2 or 3 senior executive in

the expense of the AFP and the benefit value is not received by the individual as

accordance with section 25 of the

AFP Act 1979 who are not substantive KMP. Included are direct remuneration.

individuals who have acted in a Senior Executive Service (SES) role for a continu

ous period (d) For individuals in a defined contribution scheme (for example PSSap and super choice),

of

30 days or more. Details of SES employment arrangements can be found in Chapter 4.

superannuation includes superannuation contribution amounts. For individuals in a defined

(b)

Base salary includes salary paid and accrued, annual leave accrued and higher

benefit scheme (for example PSS and CSS), superannuation includes the relevant Notional

duties allowances. Employer Contribution Rate and the Employer Productivity Superannuation Contribution.

(c)

Other benefits and allowances includes overseas living allowan

ces, non-monetary benefits (e) Long service leave comprises the amount of leave accrued.

included in the FBT Return for the year ended 31 March 2020 such as the provision of motor

(f) Termination benefits are payments that may be made in relation to the cessation

vehicle benefits, accommodation and utilities whilst posted overseas, and associated FBT.

of a position from the AFP.

Employees posted overseas reside in Commonwealth

leased or owned residences at (g) Total remuneration is calculated on an accrual basis in accordance with AASB 119 Employee

Benefits with the exception of superannuation and non-monetary benefits.

142

AFP Annual Report 2019–20

143

Table B7 Remuneration for other highly paid staff

Short‑term benefits Post‑employment Other long‑term benefits Termination Total

benefits benefits remuneration

Total remuneration

Number of Average base Average Average other Average Average long Average Average Average total

bands

other highly salary (b) bonuses benefits and superannuation service leave other termination remuneration

paid staff allowance (c) contribution (d) (e) long‑term benefits (f) (g)

(a) benefits

$ $ $ $ $ $ $ $

$225,001 – $250,000

74 198,797 - 3,328 27,851 4,862 - 3,690 238,528

$250,001 – $275,000

29 204,455 - 9,230 29,208 5,340 - 10,566 258,800

(a)

Other highly paid staff include staff who are neither KMP nor s

ubstantive senior executives (d) For individuals in a defined contribution scheme (for example PSSap and super choice),

and whose total remuneration for

the reporting period exceeds $225,000. Details of SES superannuation includes superannuation contribution amounts. For individuals in a defined

employment arrangements can be found in Chapter 5.

benefit scheme (for example PSS and CSS), superannuation includes the relevant Notional

(b)

Base salary includes salary paid

and accrued, annual leave accrued and higher Employer Contribution Rate and the Employer Productivity Superannuation Contribution.

duties allowances.

(e) Long service leave comprises the amount of leave accrued.

(c)

Other benefits and allowances i

ncludes overseas living allowances, non-monetary benefits (f) Termination benefits are payments that may be made in relation to the cessation

included in the FBT Return for the year ended 31 March 2020 suc

h as the provision of motor of a position from the AFP.

vehicle benefits,, accommodation and utilities whilst posted ov

erseas. It also includes (g) Total remuneration is calculated on an accrual basis in accordance with AASB 119 Employee

associated FBT. Employees posted overseas reside in Commonwealt

h leased or owned Benefits with the exception of superannuation and non-monetary benefits.

residences at the expense of the AFP and the benefit value is n

ot received by the individual

as direct remuneration.

143 143

AFP Annual Report 2019–20

144

Appendix C: Agency resource statement and resources for outcomes

Table C1 Agency resource statement, 2019–20

Actual available

appropriation for 2019–201

$’000

(a)

Payments made 2019–20

Balance remaining 2019–20

$’000 $’000

(b) (a)–(b)

Ordinary annual services2

Departmental appropriation3 1,729,415 1,507,902 221,513

Total 1,729,415 1,507,902 221,513

Administered expenses

Outcome 14 12,544 9,031 3,513

Total 12,544 9,031 3,513

Total ordinary annual services A 1,741,959 1,516,933 225,026

Other services5

Departmental non-operating

Equity injections 105,355 47,647 57,708

Total other services B 105,355 47,647 57,708

Total available annual appropriations 1,847,314 1,564,580

Total available annual appropriations excluding special accounts 1,847,314 1,564,580

Special appropriation limited by amount

Public Governance, Performance and Accountability Act 2013 (PGPA Act) (section 77) 50 19

Total special appropriations C 50 19

Special accounts

Opening balance6 9,995

Appropriation receipts7 3,738

Non-appropriation receipts to special accounts 13,870

Payments made 15,499

Total special accounts D 27,603 15,499 12,104

Total resourcing and payments (A+B+C+D) 1,874,967 1,580,098 294,869

Less appropriations above and credited drawn from annual to special accounts

or special appropriations (17,608) (17,608) -

Total net resourcing and payments 1,857,359 1,562,490 294,869

1. Actual available appropriation excludes amounts permanently quarantined under section 51 of the PGPA Act.

2. Appropriation Bill (No. 1) 2019–20. This includes prior-year departmental appropriations available and section 74 relevant

agency receipts.

3. Includes an amount of $78.251 million in 2019–20 for the departmental capital budget. For accounting purposes this amount

has been designated as ‘contributions by owners’.

4. Appropriation Bill (No. 1) 2019–20. This also includes prior-year administered appropriations.

5. Appropriation Bill (No. 2) 2019–20. This includes available equity appropriations from previous years.

6. Opening balance for departmental special accounts (less ‘special public money’ held in the Services for Other Entities and

Trust Moneys Special Account).

7. Appropriation receipts from annual appropriations for 2019–20 included above.

AFP Annual Report 2019–20

145

Table C2 Expenses for Outcome 1

Outcome 1: Reduced criminal and security threats to Budget 1 Actual Variation

Australia’s collective economic and societal interests through 2019–20 expenses 2019–20 cooperative policing services $’000 2019–20 $’000

$’000

(a) (b) (a)–(b)

Program 1.1: Federal Policing and National Security

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,030 996 34

Special appropriations

Public Governance, Performance and Accountability Act 2013 50 19 31

(section 77)

Departmental expenses

Departmental appropriation2 1,036,737 1,071,688 (34,951)

Special accounts 13,275 15,499 (2,224)

Expenses not requiring appropriation in the budget year3 96,353 88,711 7,642

Total for Program 1.1 1,147,445 1,176,913 (29,468)

Program 1.2: International Police Assistance

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 8,135 7,044 1,091

Departmental expenses

Departmental appropriation2 190,246 200,836 (10,590)

Expenses not requiring appropriation in the budget year3 7,659 2,122 5,537

Total for Program 1.2 206,040 210,002 (3,962)

Outcome 1 totals by appropriation type

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 9,165 8,040 1,125

Special appropriations

Special appropriations 50 19 31

Departmental expenses

Departmental appropriation 1,226,983 1,272,524 (45,541)

Special accounts 13,275 15,499 (2,224)

Expenses not requiring appropriation in the budget year 104,012 90,833 13,179

Total expenses for Outcome 1 1,353,485 1,386,915 (33,430)

2018–19 2019–20

Average staffing level (number) 5,388 5,526

1. Full-year budget, including any subsequent adjustment made to the 2019–20 Budget.

2. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources

(section 74)’.

3. Expenses not requiring appropriation in the budget year is made up of depreciation and amortisation expenses, excluding

right-of-use assets, and resources received free of charge.

AFP Annual Report 2019–20

146

Table C3 Expenses for Outcome 2

Outcome 2: A safe and secure environment through Budget 1 Actual Variation

policing activities on behalf of the Australian Capital 2019–20 expenses 2019–20

Territory Government $’000 2019–20 $’000

$’000

(a) (b) (a)–(b)

Program 2.1: ACT Community Policing

Departmental expenses

Departmental appropriation2 171,489 170,398 1,091

Expenses not requiring appropriation in the budget year3 8,037 8,896 (859)

Total expenses for Outcome 2 179,526 179,294 232

2018–19 2019–20

Average staffing level (number) 978 977

1. Full-year budget, including any subsequent adjustment made to the 2019–20 Budget.

2. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources

(section 74)’.

3. Expenses not requiring appropriation in the budget year is made up of depreciation and amortisation expenses, excluding

right-of-use assets, and resources received free of charge.

AFP Annual Report 2019–20

147

Appendix D: Summary financial tables

Table D1 Entity resource statement subset summary, 2019–20

Actual available

appropriation —current year

(a)

$’000

Payments made

Balance remaining

(b) (a)–(b)

$’000 $’000

Departmental

Annual appropriations—ordinary annual services 1,729,415 1,507,902 221,513

Annual appropriations—other services—non-operating 105,355 47,647 57,708

Total departmental annual appropriations 1,834,770 1,555,549 279,221

Departmental special appropriations - - -

Total special appropriations - - -

Special accounts 27,603 15,499 12,104

Total special accounts 27,603 15,499 12,104

Less departmental appropriations drawn from annual/special appropriations and credited to special accounts (17,608) (17,608) -

Total departmental resourcing (A) 1,844,765 1,553,440 291,325

Administered

Annual appropriations—ordinary annual services 12,544 9,031 3,513

Annual appropriations—other services—non-operating - - -

Annual appropriations—other services—specific to states, ACT, NT and local government payments - - -

Annual appropriations—other expenses services—new administered - - -

Total administered annual appropriations 12,544 9,031 3,513

Administered special appropriations 50 19 31

Total administered special appropriations 50 19 31

Special accounts - - -

Total special accounts receipts - - -

Less administered appropriations drawn from annual/special -

appropriations and credited to special accounts

- -

Less payments to corporate appropriations entities from annual/special - - -

Total administered resourcing (B) 12,594 9,050 3,544

Total resourcing and payments (A+B) 1,857,359 1,562,490 294,869

AFP Annual Report 2019–20

148

Table D2 Statement of comprehensive income, 2019–20

30 June 2020

$’000

30 June 2019 Budget

30 June 2020

$’000 $’000

Net cost of services

Expenses

Employee benefits expense 943,682 928,200 909,219

Supplier expense 403,343 475,338 506,361

Depreciation and amortisation expense 203,319 93,459 106,982

Other expenses 20,773 13,265 -

Total expenses 1,571,117 1,510,262 1,522,562

Income

Total own-source income 306,319 293,443 295,515

Net cost of services

Net cost of services (1,264,798) (1,216,819) (1,227,047)

Revenue from government

Revenue from government 1,128,302 1,103,344 1,122,948

Surplus/(deficit) after tax

Surplus/(deficit) after tax (136,496) (113,475) (104,099)

Other comprehensive income/loss 22,877 - -

Total comprehensive income/(loss) (113,619) (113,475) (104,099)

Table D3 Statement of financial position, 2019–20

30 June 2020

$’000

30 June 2019 Budget

30 June 2020

$’000 $’000

Assets

Total financial assets 317,677 314,352 286,218

Total non-financial assets 1,737,531 662,346 722,596

Total assets 2,055,208 976,698 1,008,814

Liabilities

Total payables 100,978 119,513 135,082

Total interest bearing liabilities 1,046,592 - -

Total provisions 454,952 441,149 359,018

Total liabilities 1,602,522 560,662 494,100

Net assets 452,686 416,036 514,714

Equity

Total equity 452,686 416,036 514,714

AFP Annual Report 2019–20

149

Table D4 Statement of changes in equity, 2019–20

30 June 2020 30 June 2019 Budget

$’000

30 June 2020

$’000 $’000

Opening balance

Balance carried forward from previous period 416,036 407,918 488,844

Adjusted opening balance 441,515 399,979 488,844

Changes in equity

Total transactions with owners 124,790 129,532 129,969

Total comprehensive income (113,619) (113,475) (104,099)

Closing balance as at 30 June 452,686 416,036 514,714

Table D5 Cash flow statement, 2019–20

30 June 2020

$’000

30 June 2019 Budget

30 June 2020

$’000 $’000

Operating activities

Total cash received (operating activities) 1,816,334 1,729,645 1,682,964

Total cash used (operating activities) 1,712,362 1,709,719 1,678,260

Net cash from operating activities 103,972 19,926 4,704

Investing activities

Total cash received (investing activities) 611 1,119 -

Total cash used (investing activities) 140,052 124,164 133,843

Net cash from investing activities (139,441) (123,045) (133,843)

Purchase of land and buildings 34,088 67,341 -

Purchase of property, plant and equipment 74,700 26,675 133,843

Purchase of intangibles 31,264 30,148 -

Financing activities

Total cash received (financing activities) 134,666 108,991 132,347

Total cash used (financing activities) 97,222 - -

Net cash from financing activities 37,444 108,991 132,347

Cash at the end of the reporting period

Cash at the end of the reporting period 23,442 21,467 15,596

Table D6 Notes to the financial statements (departmental), 2019–20

30 June 2020 30 June 2019 Budget

30 June 2020

$’000 $’000 $’000

Current assets 342,730 345,587 -

Current liabilities 279,011 295,287 -