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DELWP Companion Resource Guide for Annual Reporting – Public Bodies

2016-17 Financial Year

© The State of Victoria Department of Environment, Land, Water and Planning 2017This work is licensed under a Creative Commons Attribution 4.0 International licence. You are free to re-use the work under that licence, on the condition that you credit the State of Victoria as author. The licence does not apply to any images, photographs or branding, including the Victorian Coat of Arms, the Victorian Government logo and the

Department of Environment, Land, Water and Planning (DELWP) logo. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/

ISBN 978-1-74287-838-6

DisclaimerThis publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

AccessibilityIf you would like to receive this publication in an alternative format, please telephone the DELWP Customer Service Centre on 136186, email [email protected], or via the National Relay Service on 133 677 www.relayservice.com.au. This document is also available on the internet at www.delwp.vic.gov.au.

1. Introduction................................................................................................................................................

1.1 Purpose of this Companion Resource Guide........................................................................................

1.2 How to use the two guides together......................................................................................................

1.3 Symbols used in this guide....................................................................................................................

2. Annual reports – background and basics...............................................................................................

2.1 Definition of a public body......................................................................................................................

2.2 Requirement/s to prepare an annual report..........................................................................................

2.3 Sources of annual reporting requirements...........................................................................................2.3.1 Financial Management Act 1994..........................................................................................................2.3.2 Establishing Act....................................................................................................................................2.3.3 Other Acts.............................................................................................................................................2.3.4 Premier’s Circulars...............................................................................................................................

3. Model report...............................................................................................................................................

3.1 Are public bodies required to comply with the Model Report?...........................................................

3.2 Model Report of Operations (MRO)........................................................................................................

3.3 Key updates to the Model Report.........................................................................................................

4. Standing directions.................................................................................................................................

4.1 Audit committees...................................................................................................................................4.1.1 When is an audit committee member regarded as independent?..................................................4.1.2 What is a non-executive director?.....................................................................................................

4.2 Risk Management Framework (Standing Direction 3.7.1)..................................................................4.2.1 What is the Risk Management Framework?.....................................................................................4.2.2 Who is required to comply with the Risk Management Framework?.............................................4.2.3 How to comply with SD 3.7.1.............................................................................................................

4.3 Annual Reporting (Standing Direction 5.2)..........................................................................................

4.4 Responsible Body Declaration (Standing Direction 5.2.3).................................................................

4.5 Declaration in Financial Statements (Standing Direction 5.2.2)........................................................

4.6 CFO expertise and responsibilities......................................................................................................

5. Attestation of compliance with SD 3.7.1 — Risk Management Framework.......................................

5.1 Example attestation — full compliance...............................................................................................

5.2 Example attestation — partial compliance..........................................................................................

5.3 Transitional arrangements from Directions 2003 to Directions 2016................................................

6. Financial Reporting Directions...............................................................................................................

6.1 FRDs affecting the financial statements..............................................................................................

6.2 FRDs affecting the Report of Operations............................................................................................

6.3 Updates to FRDs for this reporting year..............................................................................................

7. Disclosures in Section 1 (Year in Review).............................................................................................

7.1 Manner of establishment and the relevant Minister/s (FRD 22/H).....................................................

Contents



1

7.1.1 Relevant Ministers..............................................................................................................................7.1.2 Example disclosures..........................................................................................................................

7.2 Performance reporting — financial (FRD 22H)....................................................................................7.2.1 Example disclosure for significant changes in financial position – nil response.........................7.2.2 Example disclosure for significant changes or factors affecting your performance – nil response.......................................................................................................................................................

7.3 Capital projects......................................................................................................................................7.3.1 Example capital project disclosure...................................................................................................7.3.2 Example capital project disclosure — nil response........................................................................

7.4 Disclosure of grants and payments.....................................................................................................7.4.1 Example disclosure............................................................................................................................

7.5 Subsequent events................................................................................................................................7.5.1 Example disclosures..........................................................................................................................

8. Disclosures in Section 2 (Governance and Organisational Structure)...............................................

8.1 Example disclosure for audit committee membership and roles......................................................

9. Disclosures in Section 3 (Workforce Data)............................................................................................

9.1 A summary of public sector values and employment principles......................................................9.1.1 An example disclosure.......................................................................................................................

9.2 Comparative workforce data.................................................................................................................9.2.1 An example disclosure for a DELWP body with <20 non-VPS staff...............................................9.2.2 An example disclosure for agencies that employ Part 3 PAA staff................................................

9.3 What is a workforce inclusion policy?.................................................................................................9.3.1 Example disclosure of workforce inclusion policy..........................................................................

9.4 Executive Officer disclosure.................................................................................................................9.4.1 Disclosure requirements of FRD 15D in a department’s Report of Operations............................9.4.2 Definitions...........................................................................................................................................

10. Disclosures in Section 4 (Other disclosures)......................................................................................

10.1 Government advertising expenditure................................................................................................10.1.1 Example disclosure..........................................................................................................................10.1.2 Example disclosure — nil response................................................................................................

10.2 Consultancy expenditure....................................................................................................................10.2.1 What is a consultancy?....................................................................................................................10.2.2 Example disclosures........................................................................................................................

10.3 Information and Communication Technology (ICT) expenditure....................................................10.3.1 Background and further information..............................................................................................10.3.2 Definitions.........................................................................................................................................10.3.3 Example disclosure [ minor update]............................................................................................10.3.4 Example disclosure — nil response................................................................................................

10.4 Disclosure of major contracts............................................................................................................10.4.1 Example disclosure – nil response.................................................................................................

10.5 Compliance with Building Act 1993...................................................................................................2 DELWP Companion Resource Guide for Annual Reporting – Public Bodies


10.5.1 Minimum disclosure example..........................................................................................................10.5.2 Example disclosure —nil response.................................................................................................

10.6 National Competition Policy...............................................................................................................10.6.1 Example disclosure ()....................................................................................................................

10.7 Protected Disclosures Act 2012.........................................................................................................10.7.1 Example disclosure (for DELWP portfolio agencies)....................................................................

10.8 Compliance with DataVic Access Policy...........................................................................................10.8.1 Example disclosure..........................................................................................................................

10.9 Statement of availability of other information...................................................................................10.9.1 Example disclosure..........................................................................................................................

11. Design and printing requirements........................................................................................................

11.1 Design and Printing Requirements (FRD 30D) [ updated]............................................................11.1.1 Use of colour.....................................................................................................................................11.1.2 Design................................................................................................................................................11.1.3 Photographs......................................................................................................................................11.1.4 Format of report................................................................................................................................11.1.5 Finishing............................................................................................................................................11.1.6 Uncoated & environmentally suitable paper stocks......................................................................11.1.7 Printing costs....................................................................................................................................

11.2 Page numbering and referencing.......................................................................................................

11.3 Rounding..............................................................................................................................................

11.4 Auditor-General’s Report [].............................................................................................................

11.5 Privacy..................................................................................................................................................

11.6 Copyright..............................................................................................................................................

11.7 ISSN......................................................................................................................................................11.7.1 How to apply for an ISSN.................................................................................................................11.7.2 Medium of publication......................................................................................................................11.7.3 Change of title...................................................................................................................................11.7.4 National Library of Australia (NLA) (http://www.nla.gov.au/)........................................................

12. Submission and tabling of Annual Reports........................................................................................

12.1 Tabling vs reporting............................................................................................................................

12.2 Tabling Date.........................................................................................................................................12.2.1 Available sitting days for tabling annual reports...........................................................................

12.3 Premier’s Circular 2012/01 [ withdrawn].........................................................................................

12.4 Inconsistency between FMA & Establishing Act..............................................................................

12.5 Who arranges for tabling/reporting?..................................................................................................12.5.1 Delivery of copies of tabled reports to parliament.........................................................................

12.6 Number and format of tabled reports provided to parliament.........................................................

12.7 Annual reports — where receipt is reported.....................................................................................

12.8 Public release of an annual report.....................................................................................................DELWP Companion Resource Guide for Annual Reporting – Public Bodies


3

12.9 Legal Deposit.......................................................................................................................................

13. Glossary.................................................................................................................................................

4 DELWP Companion Resource Guide for Annual Reporting – Public Bodies


Purpose of this Companion Resource GuideThis resource guide accompanies the DELWP Guide to Annual Reporting — Public Bodies. Together, these guides assist DELWP agencies to prepare an annual report for the 2016-17 financial year. This is a requirement under Part Seven of the Financial Management Act 1994 (FMA) and applies to agencies that are public bodies, as defined in Section 3 of the Act.

This companion resource guide has been designed to simplify the process of preparing the 2016-17 annual report by providing greater detail on definitions, background information, example disclosures, design requirements and tabling instructions in a separate document. This streamlines the DELWP Guide to Annual Reporting — Public Bodies and enables agencies to source further information only when they need it.

How to use the two guides together In the DELWP Guide to Annual Reporting — Public Bodies, there is a series of symbols that highlight important information throughout the document. When a section requires further details, a right-hand arrow directs the reader to the Companion Resource Guide.

In the Companion Resource Guide for Annual Reporting — Public Bodies, a corresponding left-hand arrow directs the reader back to the relevant section in the DELWP Guide to Annual Reporting — Public Bodies.

Symbols used in this guideA system of symbols highlights a range of important points throughout this guide.

This information supports a chapter or section in the Guide to Annual Reporting.

! Caution. This requirement or matter discussed has caused problems for bodies in the past.

A tip or recommendation designed to enable your agency to achieve a better outcome or disclosure in respect to the matter discussed.

A new disclosure or requirement for this reporting period.

Definition of a public body Many agencies are public bodies for the purposes of the FMA. Agencies that are not public bodies are generally purely advisory bodies that are unincorporated and do not manage or control any public finances or assets.

Section 3 of the FMA defines public body as being either:

a. a public statutory authorityb. a State business corporation or State body within the meaning of the State Owned Enterprises Act

1992

c.

IntroductionAnnual reports – background and basics



5

a body, office or trust body established i. by or under an Act or enactment ii. by the Governor in Council or a Ministeriii. and that is declared by the Minister for Finance, by notice published in the Government Gazette,

to be a body or office to which Part 7 applies.

Most agencies that are public bodies for the purposes of the FM Act are public statutory authorities. A public statutory authority is generally accepted to mean a legal entity established by legislation for a public purpose.

To check whether it is a public body, your agency can contact the DELWP division that supports your agency.

Requirement/s to prepare an annual reportAgencies are subject to the requirement in section 45(1), (2) and (3A) of the FMA to prepare an annual report after the EOFY. These requirements are summarised below.

Section 45(1), (2) & (3A) FMA – Preparation of Report of operations and financial statements

(1) As soon as practicable after the end of each financial year (EOFY): (b) a public body must cause to be prepared, in accordance with Part 7 of the FMA, a Report of its

Operations during the financial year (c) the accountable officer of a public body must cause to be prepared, in accordance with Part 7 of the

FMA, Financial Statements of the public body for the financial year. (2) The accountable officer of a public body must submit the public body’s Financial statements to the Auditor-

General within eight weeks after the EOFY. (3A) A public body must submit the public body’s Report of Operations to the Auditor-General as soon as

practicable after it has been prepared.

Also see sections 46, 47 and 48 of the FMA for further details.

Most agencies are also subject to a requirement in their establishing Act to prepare an annual report. This Act may impose additional requirements, over and above those in the FMA.



Sources of annual reporting requirementsThe main source of your agency’s annual reporting requirements is the FMA and directions issued under that Act. Additional reporting requirements may apply under:

• your agency’s establishing Act

• any statement of obligation, statement of expectations or Ministerial Directions applicable to your agency

• other legislation (e.g. the Freedom of Information Act 1982)

• your agency’s business or corporate plan (i.e. if it contains key performance indicators, against which your agency is required to report its progress).

Financial Management Act 1994Victorian agencies must comply with financial management and reporting requirements, including annual reporting under the Financial Management Act 1994.

Part 7 of the FMA requires government departments and agencies to prepare an annual report, which, in most circumstances, is tabled in the parliament.

• Standing Directions: These are issued by the Minister for Finance, pursuant to Section 8 of the FMA and detail how the requirements of the FMA must be implemented. These Standing Directions have legislative force. Standing Directions 3.2.1, 3.7.1, 5.1.4 (commencing 1 July 2017)1, and 5.2 [and SD 5.1.4 for next year, in particular, contain additional obligations that a department or agency must comply with in order to fulfil their annual reporting obligations under Part 7 of the FMA. (For details, see Chapter 3)

• Financial Reporting Directions (FRDs): When preparing an annual report, your agency must comply with Financial Reporting Directions (FRDs) issued by the Minister for Finance under the FMA. (For details, see Chapter 6)

• Model Report: Each year the DTF issues the model report, which provides guidance to Victorian Government Departments for preparing their annual reports. It is considered best practice for public bodies to base their annual reports on this model report, where and to the extent applicable (For details, see Chapter 3.)

Establishing ActAgencies may have reporting requirements under their establishing Acts, in Statements of Obligation, Statements of Expectations or in Ministerial Directions. These are in addition to any FMA requirements that apply to the agency. These requirements are not dealt with in this guide. If you have questions about these requirements, please contact the DELWP division that supports your agency.

Other ActsOther legislation may impose annual reporting requirements on your agency, for example:

Act See in reporting guide

Freedom of Information Act 1982 10.6

Building Act 1983 10.7

Victorian Industry Participation Policy Act 2003 10.1

Protected Disclosures Act 2012 10.9

Financial Management Act 1994 -

Please note that the Carers Recognition Act 2012 only applies to departments.

1 in accordance with SD 1.4.5. DELWP Companion Resource Guide for Annual Reporting – Public Bodies


7

Premier’s CircularsFrom time to time, the Premier issues Premier’s Circulars. These are a statement of policy with which the Premier agrees.2 There are currently no Premier’s Circulars that are relevant to your agency’s annual reporting obligations, as the Premier's Circular 2012/01 (Tabling of Annual Reports) was withdrawn in September 2016.

The information in this chapter supports Chapter 2 in the Guide to Annual Reporting.

2 Premier Circular 2002/2 (‘Use of Premier's Circulars’)8 DELWP Companion Resource Guide for Annual Reporting – Public Bodies


The Department of Treasury and Finance issues a model annual report each year to assist Victorian Government departments and agencies with the planning and preparation of disclosures in their annual reports. It is a model of an annual report prepared by a fictitious department (the Department of Technology).

It contains two parts: a Model Report of Operations (MRO) and a Model Financial Statements (MFS). Note that the model report’s Disclosure Index is set out at the end of the MRO, whereas it would usually be an appendix to a body’s annual report.

DTF also releases a Summary of Changes to the Model Report, which details the amendments made to the previous year’s model report. Both documents are made available on DTF’s website.

DTF issued the 2017 Model Report for Victorian Government Departments in early May 2017

! DTF’s website should be reviewed regularly during the preparation of your report, as amendments to the model report or FRDs are often issued by DTF in the months after the Model Report (and this guide) have been published.

Are public bodies required to comply with the Model Report?SD 5.2.1(b) requires departments to apply the Model Financial Report for Departments in the preparation of their annual reports.

Whilst it is not mandatory for public bodies to comply with this requirement, it represents best practice in the preparation of annual reports. DELWP expects that your agency will use the model report as the principal guide to the presentation of your annual report, where applicable.

Model Report of Operations (MRO)

Section of MRO

Title of a disclosure – for a department

Main source of requirement

Title of a disclosure – for an agency(if different to a department)

See in Reporting Guide

Accountable Officer’s declaration

Declaration in Report of Operations

SD 5.2.3[revised]

same3 4.4

1: Year in Review

1. Vision, Mission, Values MRO same or similar 7.2

2. Secretary’s report None Chairman’s Report 7.1

3. Manner of establishment & responsible Minister/s

FRD 22H same 7.3

4. n/a4 FRD 22H Nature & range of services provided

7.4

5. Purpose & Functions FRD 22H Objectives, functions, powers & duties

7.5

6. Changes to the Department during 2016-17

FRD 8C (depts. only)

n/a

7. Direct costs attributable to machinery of government changes

MRO N/A -

3 For public bodies, a member of the responsible body, usually the chair, makes this declaration.4 In the MRO, this requirement has been complied with, but there is no separate disclosure with this heading.

Model report



9

PERFORMANCE REPORTING – NON-FINANCIAL

8. Departmental objectives, indicators and outputs

FRD 22H, (Depts. only: FRD 8C & MRO)

[Agency] performance objectives, indicators and outputs

7.7

9. Reporting progress towards achieving departmental objectives in the Report of operations

FRD 8C (depts.)

N/A N/A

10. Performance against output performance measures

FRD 22H & MRO(& FRD 27C – for water corps)

Reporting Progress towards [Agency] performance objectives, indicators and/or outputs (non-financial)

7.7

11. Discontinued operation FRD 8C (depts.)

n/a -

PERFORMANCE REPORTING - FINANCIAL

12. Budget Portfolio Outcomes

SD 5.2.1(b) N/A N/A

13. Five year financial summary

FRD 22H same 7.9

14. Current year financial review • Overview

• Financial performance and business review

• Financial position & balance sheet

• Cash flow

FRD 22H, MRO

same 7.9

15. n/a FRD 27C – (for water corps) & FRD 22H

Performance against key performance indicators (financial)

16. n/a5 FRD 22H Significant changes in financial position

7.10

17. n/a6 FRD 22H Significant changes or factors affecting performance

7.11

18. Capital Projects MRO same 7.12

19. Disclosure of grants and transfer payments

MRO same 7.13

20. Subsequent Events FRD 22H same 7.14

5 The MRO no longer contains a separate disclosure for Significant changes in financial position. However the requirements of FRD 22H remain unchanged.

6 The MRO no longer contains a separate disclosure for Significant changes or factors affecting performance. However the requirements of FRD22H remain unchanged.10 DELWP Companion Resource Guide for Annual Reporting – Public Bodies


2: Governance & Organisational Structure

21. Organisational structure & corporate governance arrangements

• Organisational chart

• Senior Executives/ officers

• Governing board

FRD 22H same 8.1

22. Audit committee membership and roles

FRD 22H, SD 3.2.1

same 8.3

23. Occupational Health & Safety

FRD 22H & MRO

same 8.5

24. Employment & Conduct Principles

FRD 22H Same – but this is included in the first disclosure in section 3: Workforce Data.

9.1

3: Workforce Data

25. Public Sector values and Employment principles

FRD 22H same 9.1

26. Comparative Workforce Data [revised]

FRD 22HFRD 29B

same 9.2

27. Workforce Inclusion Policy

FRD 22H same 9.3

28. Executive Officer data [revised]

FRD 15D (depts)

same 9.4

4: Other disclosures

29. Local Jobs First - Victorian Industry Participation Policy (VIPP) [revised]

FRD 25C same 10.1

30. Government advertising expenditure

FRD 22H same 10.2

31. Consultancy expenditure

FRD 22H same 10.3

32. Information and Communication Technology expenditure

FRD 22H same 10.4

33. Disclosure of major contracts

FRD 12B same 10.5

34. Freedom of Information FRD 22H same 10.6

35. Compliance with Building Act 1993

FRD 22H same 10.7

36. National Competition Policy

FRD 22H same 10.8

37. Compliance with the Protected Disclosure Act 2013

FRD 22H, MRO

same 10.9



11

38. Compliance with Carers Recognition Act 2012

MRO (N/A - only applicable to departments)

N/A

39. Compliance with Technology Act 19917

Establishing Act*, MRO

Compliance with [Establishing Act8]

10.10

40. Office-based environmental impacts

FRD 24C same 10.11

41. Additional Departmental information available on request

FRD 22H Statement of availability of other information

10.13

Attestation for compliance with SD 3.7.1

42. Attestation for compliance with SD 3.7.1 [revised]

SD 3.7.1[revised]

same 3.1,Ch. 4.

43. Compliance with DataVic Access Policy

MRO same 10.12

Key updates to the Model ReportDTF issued a Summary of Changes to the Model Report in early May 2017. Key changes to the Report of Operations section of the 2017 Model Report are listed below. Please refer to DTF’s Summary of Changes to Model Report for a detailed summary of all changes.

Section of MRO

Page (of MRO)

Summary of changes applied to MRO in the 2017 Model Report

Applicable to? (depts. &/or agencies)

All All To update source references• References to the Standing Directions have

been updated to refer to the 2016 Standing Directions and terms used in those directions. (e.g. references to CFAO have been replaced with references to CFO and references to Public Sector Agency have been replaced with references to agencies.)

• References to Budget and Financial Management Guidances have been replaced by corresponding Financial Reporting Operations Framework, Budget Operations Framework and Performance Management Framework references.

General improvements

Section 3 Workforce Data [New & Revised]

41-43 Public sector values and employment principles and its guidanceMinor updates have been made to this disclosure (e.g. references to the SSA now refer to the VPSC)Comparative workforce dataThe tables and information in the guidance section have been amended to reflect the revised disclosure requirements in FRD 29B. These have been amended to extend the reporting requirements to include senior non-executive

FRD 29B Both

7 Note: In the MRO, the Technology Act 1991’ refers to a fictional Act that contains an obligation that the (fictional) department disclose certain matters in its annual report.

8 For public bodies, the reference to the Technology Act 1991 should be interpreted as referring to either its establishing Act, or any applicable Statement of Expectations or Obligations or Ministerial Directions (or similar document) that requires your agency to make disclosures in its annual report.12 DELWP Companion Resource Guide for Annual Reporting – Public Bodies


staff, and to improve reporting of remuneration for senior staff. These amendments are a result of recommendations made by a VPSC review of the Executive Officer Employment and Remuneration Framework.

Section 3 Workforce Data[Revised]

44-45 Executive officer dataThe executive officer data section, including its tables, was amended to reflect the revised disclosure requirements in FRD 15D, align the reporting requirements with the proposed changes in FRDs 21C and 29B, improve clarity of the definition of accountable officer and executive officer, and simplify the reporting requirements.

FRD 15D

Section 4 (Other disclosures) [Revised]

40, 50, 53, 54, 57,58 & 60

General improvements have been made to the following disclosures (or related commentary):

• Information and communication technology (ICT) expenditure New headers have been added to the table in the example disclosure. Additional information has been added to the guidance to the disclosure for clarification on the expenditure categories and what they include.

• Office-based environmental impactsA totals column has been added to disclosure tables (i.e. energy, waste and transport) to better align the disclosures with the requirements in FRD 24 Environmental reporting.

• Compliance with the Building Act 1993The guidance to this disclosure has been amended to align with the requirements of the Building Act 1993.

• National Competition Policy Additional information has been added to its guidance on this disclosure for improved understanding and clarification on the purpose and requirements of this policy.

General improvements to the commentary or example disclosure in the MRO

Both

Section 4 (‘Other Disclosures‘)

46-47 Local Jobs First — Victorian Industry Participation Policy (VIPP)The example VIPP disclosure has been amended to reflect the changes introduced by FRD 25C:

• The disclosure now refers to the policy’s new name ‘Local Industry First — Victorian Industry Participation Policy’. Note that the name of the Act has not changed.

• The disclosure now includes the number of contracts (commencing from 1 September 2016) where the minimum formal weighting was applied for local content in the tender evaluation of the VIPP Plan or Local Industry Development Plans (LIDPs).

FRD 25C Both

Attestation for

64-65 Attestation for compliance with Ministerial Standing Direction 3.7.1 and its guidance

SD 3.7.1 Risk management

Both



13

compliance with SD 3.7.1– Victorian Government Risk Management Framework [Revised]

The disclosure and guidance have been updated to refer to SD 3.7.1 of the 2016 SDs (and not SD 4.2.2 of the 2003 SD).

framework and processes

!Key source documents: Your primary resource for information on what disclosures your agency is required to make in its report of operations should be the key source documents (the SDs, the relevant FRDs — FRD 22H in particular — and the MRO) and not this guide.

Disclosure index: Each disclosure made by your agency in its report of operations must also be listed in the Disclosure Index required by FRD 10A.

The information in this chapter supports Sections 2.2 and 2.3 in the Guide to Annual Reporting.

Audit committees

Standing Direction

Requirement

3.2.1.3 Audit committee — skills and independence

3.2.1.3 (c), (f) and (h)Also see SD 3.2.1.3 for full details, and Guidance 3.2.1 - Audit Committee

The audit committee must: (c) be constituted by members with appropriate skills and experience to discharge the audit

committee’s responsibilities, with at least one member having appropriate expertise in financial accounting or auditing

(f) be independent and include(i) at least three members(ii) a majority of independent members (iii) at least three non-executive directors on the statutory board if that is the responsible

body(iv) an independent member as Chair (this must not be the Chair of the responsible body)

(h) not include the following persons as members(i) Accountable officer(ii) CFO(iii) the internal auditors.

3.2.1 Role and responsibilities of an audit committee

Also see Guidance 3.2.1 — Audit Committee

SD 3.2.1 provides a detailed description of the role and responsibilities of an audit committee. The audit committee has a key role during the annual reporting period, which includes but is not limited to:

• reviewing the agency’s annual financial statements and making a recommendation to the board as to whether to authorise the statements (SD 3.2.1(c))

• reviewing information in the report of operations on financial management, performance and sustainability (SD 3.2.1(d))

Standing directions



• reviewing and monitoring compliance with the FMA, the Directions and the Instructions, and advising the board on the level of compliance attained (SD 3.2.1(e)).

When is an audit committee member regarded as independent? SD 3.2.1.3(f) contains a requirement that the majority of the members of an audit committee must be independent members. But who is regarded as an independent member?

Guidance 3.2.1 to the Standing Directions states that:

“An independent member of an Audit Committee is not involved in the day-to-day management of the Agency. This seeks to ensure that the independent Audit Committee member acts in an objective, impartial manner, is free from conflict of interest, inherent bias or undue external influence.”9

Other relationships that may be seen to impair an audit committee member’s independence include:

• current or previous employment by the agency

• receipt of material consulting, advisory or contractual relationship with the agency other than as a Board or committee member of the agency

• any interest and any business or other relationship which could, or could reasonably be perceived to, materially interfere with the person’s ability to act in the best interests of the agency.10

Guidance 3.2.1 makes it clear that a current or prior employee of an agency can still be a member of the audit committee. They would just not be regarded to be an independent member of that committee.

What is a non-executive director?SD 3.2.1.3(f) also uses the term non-executive director. But who is regarded as a non-executive director? The Guidance to the Standing Directions provides the following explanation:

“A non-executive director is a member of the Board of directors of an Agency who does not form part of the executive management team. For example, they are not the CEO or CFO.

Generally speaking, Audit Committee members are sourced from non-executive directors on the Board. As such, a non-executive board member (director) can also be an independent member of the Audit Committee. The concepts of ‘non-executive director’ (i.e. member of the Board) and ‘independent Audit Committee member’ are therefore not mutually exclusive.”

Risk Management Framework (Standing Direction 3.7.1)

Standing Direction

Requirement

3.7.1 Victorian Government Risk Management Framework

3.7.111 An agency’s responsible body is required to ensure that the agency applies the Victorian Government Risk Management Framework.

What is the Risk Management Framework?The Risk Management Framework prescribes a minimum risk management standard for the public sector. Further details on the Risk Management Framework and support materials are available on DTF’s website and VMIA’s website. VMIA released a practice note on Attestation in 2016.

Who is required to comply with the Risk Management Framework?All entities that are a public body (as defined by the FMA) are required to comply with the Risk Management Framework (see Section 1.2 of the Risk Management Framework).

9 .Guidance 3.2.1 Audit Committees, page 2610 Guidance 3.2.1 Audit Committees, page 2611 Previously SD 4.5.5 of the 2003 Standing Directions DELWP Companion Resource Guide for Annual Reporting – Public Bodies


15

How to comply with SD 3.7.1To comply with SD 3.7.1, agencies need to:

• conduct an annual review of its compliance with both the risk management and insurance requirements

• attest in the agency’s annual report that it has complied with SD 3.7.1 or, if it is partially in compliance, identify areas of non-compliance and remedial actions taken in the attestation (see 5 below for further details)

• ensure the audit committee reviews and monitors compliance with SD 3.7.1, and make a recommendation to the responsible body on the level of compliance attained.



!

The insurance requirements contained in the Risk Management Framework only apply if a public body is required to insure (in its own name) with the VMIA. Section 24(1)(a) of the Victorian Managed Insurance Authority Act 1996 (VMIA Act) requires a participating body to arrange its insurance with VMIA. As a general rule:

• If your agency currently maintains insurance (in its own name) with VMIA, then it is likely that it will need to comply with the insurance requirements in the Risk Management Framework.

• If your agency does not insure with VMIA in its own name, then it is unlikely that it will be required to comply with the insurance requirements in the Risk Management Framework.

• If your agency is covered by DELWP’s insurance with VMIA, then your agency does not maintain insurance in its own name with VMIA.

Annual Reporting (Standing Direction 5.2)

5.2 Annual Reporting

5.2.1(a) The accountable officer must implement and maintain a process to ensure the agency’s Annual Report is prepared in accordance with:

• the FMA

• the Standing Directions

• the Instructions

• applicable Australian Accounting Standards

• applicable Financial Reporting Directions (FRDs).

5.2.1(b) SD 5.2.1(b) requires departments to apply the Model Financial Report for government departments when preparing their annual report.

5.2.1(c)[NEW ]

An agency must publish its Annual Report on the agency’s or their portfolio department’s public website.

Where applicable, your agency should use the Model Report as the principle guide to the presentation of your annual report.

Responsible Body Declaration (Standing Direction 5.2.3)

Standing Direction

Requirement

5.2.3 [] Declaration in Report of Operations12 (Responsible Body Declaration)

5.2.3 For a public body, the Report of Operations must be signed and dated by a member of the responsible body.

For most DELWP public bodies, it will be the Chair that makes this declaration.

If your agency does not have a board or an equivalent governing body, the agency’s accountable officer makes this declaration (see footnote in SD 5.2.3).

The MRO states that this declaration is “usually the first item in the report of operations, and it formally presents the report in accordance with requirements in the Financial Management Act 1994”.

12 .For a department, the accountable officer (i.e. the Secretary) makes this declaration and it is referred to as the Accountable Officer’s Declaration.DELWP Companion Resource Guide for Annual Reporting – Public Bodies


17

An example declaration is set out below. It is not recommended that you combine this declaration with the Chairman’s report.

Example

Responsible Body DeclarationIn accordance with the Financial Management Act 1994, I am pleased to present [Agency name’s] Annual Report for the year ending 30 June 2017.

[Signature] [Note: reproduction of signature required]

[Name of Chairman i.e. John Smith][Position title i.e. Chairman][Name of Agency]

[Date] 2017

Declaration in Financial Statements (Standing Direction 5.2.2)

Standing Direction

Requirement

5.2.2 [] Declaration in Financial Statements

5.2.2(a) Who must sign the declaration?An agency’s financial statements must include a signed and dated declaration by:

• the accountable officer• the CFO (subject to SD 5.2.2(c))

• a member of the responsible body if the agency has a board or equivalent governing body.

5.2.2(b) What must be declared?The declaration required under SD 5.2.2(a) must state that in the joint opinion of the signing persons: (i) the financial statements present fairly the financial transactions during the reporting period

and the financial position at the end of that period(ii) the financial statements have been prepared in accordance with applicable requirements in the

FMA, the Standing Directions, the FRDs and the AAS.

5.2.2(c) Who signs the declaration if there is no CFO or if CFO does not have relevant expertise? If an agency’s CFO (including an acting CFO) does not have expertise and qualifications in compliance with SD 2.4.5(a), or if an agency does not have a CFO: (i) the CFO must not sign financial statements(ii) the accountable officer must ensure that the financial statements are signed by a person with

the expertise and qualifications required under SD 2.4.5(a).



CFO expertise and responsibilities

Standing Direction

Requirement

2.4.2 CFO role and responsibilities

2.4.2 (refer to SD 2.4.2 for the complete description of the CFO’s role, and also see SD 2.4.3 and associated Guidance)

The CFO has a key role during the annual reporting period. The CFO’s responsibilities include:

• preparing accurate information relevant to financial management, performance and sustainability

• establishing and reviewing accounting and financial information systems, governance and internal controls

• providing assurance to the audit committee and the accountable officer that

(i) financial reports (estimates and actuals) present fairly, and in accordance with applicable AAS, the FMA, the agency’s financial position and operating results

(ii) financial reports (estimates and actuals) are founded on a sound system of risk management and internal compliance and control that implements the policies adopted by the agency

(iii) the agency’s systems and controls for financial management, performance and sustainability are operating efficiently and effectively in all material respects

• providing strategic advice and options to support informed decision-making and organisation strategy concerning the agency’s(i) financial implications of, and risks associated with, current and projected services and assets(ii) future financial sustainability

• developing the agency’s financial management capability

• maintaining a constructive relationship within the Agency, with VAGO and other CFOs.

2.4.5 CFO expertise and qualifications

2.4.5 Also see:Guidance 2.4 Chief Finance Officer

(a) The CFO must: (i) be suitably experienced (ii) hold a graduate or post graduate qualification in accounting or other relevant discipline granted by a tertiary education provider(iii) keep their knowledge and expertise up to date with developments in financial management including AASs.

(b) A person that is temporarily acting in the role of CFO for a period no greater than four months is not subject to SD 2.4.5.

The information in this chapter supports Chapter 3 in the Guide to Annual Reporting.



19

Example attestation — full compliance A reproduction of the sample attestation provided in section 3.3.4 of the Risk Management Framework (for a fully compliant public body) is set out below.

Attestation for compliance with Standing Direction 3.7.1I, [Name of chairperson] (if responsible body is a board)] certify that the [agency name] has complied with the Ministerial Standing Direction 3.7.1 — Risk Management Framework and Processes. The [agency Name]’s audit committee has verified this (if an audit committee is available to verify).

[signature of chairperson*]

[Signature block i.e. Name of chairperson, Position title (i.e. Chairman), Name of Agency]

[dated]

*If your agency does not have a governing board, then the person or body that is charged with oversight of the public sector agency's operations (e.g. a Commissioner) would make this attestation rather than the Chair.

The Risk Management Framework also states that: “…agencies may amend the wording of the attestation having regard to their risk profile, risk management maturity and operating context.“

VMIA’s Practice Note — Attestation explains how the wording of an attestation can be amended.13

Example attestation — partial compliance The Risk Management Framework states that: “Where an agency has only partially complied with the Direction, the attestation must include an explanation of remedial actions to address areas of partial compliance.”

VMIA’s Practice Note — Attestation14 explains partial attestation in more detail.

The following example is provided for a partially compliant public body.

Attestation for compliance with Standing Direction 3.7.1I, [responsible body] certify that the [name of public sector agency] has complied with Ministerial Direction 3.7.1, except for [specify the areas of non-compliance and include an explanation of remedial actions to address those instances of non-compliance, including rationale].

[Signature]

[Signatory details]

[date]

13 VMIA Practice Notes are available from VMIA’s website at this link: https://www.vmia.vic.gov.au/risk/victorian-government-risk-management-framework/vgrmf-resources. Please note that at the date of publication of this guide, VMIA’s Attestation Practice Note still refers to SD 4.5.5 (2003 Standing Directions). i.e. It has not been updated to refer to SD 3.7.1 (2016 Standing Directions).

14 ibid

Attestation of compliance with SD 3.7.1 — Risk Management Framework



Transitional arrangements from Directions 2003 to Directions 2016The following table summarises the applicable Directions and requirements for internal and public attestation, for the 2015-16, 2016-17 and 2017-18 compliance years. For further details, please refer to page 105 to 110 of the Guidance to the 2016 SDs.

2015-16 compliance year 2016-17 compliance year 2017-18 compliance year

Directions 2003 All Directions applicable n/a n/a

Directions 2016 n/a All Directions applicable, subject to transitional arrangements under 2016 Direction 1.4.

All Directions applicable, subject to transitional arrangements under 2016 Direction 1.4.

Compliance reporting/Internal attestation

2005 Financial Management Compliance Framework

Compliance reporting as required under 2016 Instruction 5.1, including trial attestation

Compliance reporting as required under 2016 Instruction 5.1.

Public attestation in Annual Report

2003 Direction 4.5.5 Risk management framework and processes

2016 Direction 3.7.1 Risk management framework and processes

Attestation in relation to all applicable Directions and Instructions under 2016 Direction 5.1.4.

Source: DTF’s website at this link: http://www.dtf.vic.gov.au/Government-Financial-Management/Standing-Directions-of-the-Minister-for-Finance/Standing-Directions-of-the-Minister-for-Finance-2016

Information in this chapter supports Chapter 4 in the Guide to Annual Reporting.



21

Symbol Description

This FRD has been, or is in the process of being, updated, and the reissued FRD is (or will be) applicable for the 2016-17 reporting year. Where an FRD is expected to be reissued after the publication date of this guide, the FRD’s reissue number is included in parenthesis e.g. (FRD 120I)

! When an existing FRD is amended, it is reissued with the same number but with a different letter. For example, FRD 22G was recently amended and reissued, at which point it became FRD 22H.

FRDs affecting the financial statements

FRDDepts Public

bodiesSee in

this guide

FRDs 100+ (Financial policy & disclosure)

FRD 100 Financial Reporting Directions – Framework

FRD 102 Inventories

FRD 103F Non-Current Physical Assets

Guidance notes for FRD103F:

• Guidance on the selection of valuation services under FRD 103F

• Guidance on depreciation of building components under FRD 103F

(Note: FRD 104 Foreign Currency was withdrawn in 2016) - - -

FRD105A Borrowing Costs

FRD 106 Impairment of Assets

FRD 107B Investment Properties

FRD 108C Classification of Entities as For-Profit () (was FRD 108B) (a) 6.3

FRD 109A Intangible Assets

FRD 110A Cash Flow Statements

FRD 112D Defined Benefit Superannuation Obligations

FRD 113A Investments in Subsidiaries, Jointly Controlled Entities and Associates

FRD 114B Financial Instruments — General Government Entities and Public Non Financial Corporations

(b)

FRD 116A Financial Instruments — PFCs (c)

FRD 117A Contributions of Existing Non-Financial Assets to Third Parties

FRD 118C Land under Declared Roads

FRD 119A Transfer through Contributed Capital

FRD120J Accounting and Reporting Pronouncements Applicable to 2015-16 Reporting Period (FRD 120K ‘Accounting and Reporting Pronouncements Applicable to 2016-17 Reporting Period’)

6.3

FRDs 1 to 100 (Non-financial policy & disclosures)22 DELWP Companion Resource Guide for Annual Reporting – Public Bodies


FRD 03A Accounting for Dividends

FRD 07A Early Adoption of Authoritative Accounting Pronouncements

FRD 09B Departmental Disclosure of Administered Assets and Liabilities by Activity () (was FRD 9A)

(d) 6.3

FRD 11A Disclosure of ex-gratia expenses

FRD 13 Disclosure of Parliamentary Appropriations

FRD 17B Long Service Leave Wage Inflation and Discount Rates

FRD 20A Accounting for State Motor Vehicle Lease Arrangements prior 1 February 2004

FRD 21C Disclosures of Responsible Persons, Executive Officer & other personnel with significant responsibilities in the financial report () (was FRD 21B)

(e) 6.3

FRD 26B Accounting for VicFleet Motor Vehicle Lease Arrangements on or after 1 February 2004 () (was FRD 26A)

6.3

Notes:

a. FRD 108C only applies to entities that are listed in Appendix A as being For Profit entities. This list includes: Melbourne Water Corporation, City West Water Corporation, Yarra Valley Water Corporation and South East Water Corporation.

b. FRD 114A applies to all public bodies, apart from public financial corporations (PFCs). FRD116 applies to PFCs. Entities that are classified as PFCs are listed in the State of Victoria Annual Financial Report (AFR).

c. FRD 116 applies to all entities classified as public financial corporations (PFC’s) in the State of Victoria Annual Financial Report (AFR).

d. Voluntary

e. FRD 21C applies to all public bodies (& departments), as defined in Section 3 of the Financial Management Act 1994 A public sector entity classified as a public financial corporation (PFC) or public non-financial corporation (PNFC) within the AFR that does not meet the definition of a public body is encouraged to comply.

FRDs affecting the Report of Operations

FRDDepts Public

bodiesSee in

reporting guide

FRD 8D Consistency of Budget and Departmental Reporting

FRD 10A Disclosure Index (a) 6

FRD 12B Disclosure of Major Contracts (b) (c) 10.5

FRD 14 Disclosures in Annual Reports by Public Sector Superannuation Schemes

(d)

FRD 15D Executive Officer Disclosures in the Report of Operations by Departments () (was FRD 15C)

9.4

FRD 22H - Standard Disclosures in the Report of Operations () (was FRD 22H)

7, 8, 9, 10

Guidance notes for FRD 22H:

• Guidance Note to Financial Reporting Direction (FRD 22H) (additional information available on request).

• Compliance with Financial Reporting Direction (FRD 22H) (on the definition of consultancies)

FRD 24C — Reporting of Office-based Environmental Data by Government Entities

(e) 10.11



23

Guidance notes for FRD 24C:

• Guidance on environmental disclosures under FRD24C

• Guidance on Environment Management System under FRD 24C

FRD 25C Local Jobs First - Victorian Industry Participation Policy Disclosures in the Report of Operations () (was FRD 25B)

10.1

FRD 27C Presentation and Reporting of Performance Information (f) 7.7

FRD 29B Workforce Data Disclosures in the Report of Operations – Public Service Employees () (was FRD 29A)

(g) 9.2

Guidance note for FRD 29B: Guidance on reporting number of employees under FRD29

FRD 30D Standard Requirements for the Publication of Annual Reports ()

Notes:

f. FRD 10A also applies to matters contained in the Financial Statements.

g. FRD 12A also applies to the Financial Statements.

h. FRD 12B applies to departments. However, DELWP agencies are encouraged to comply, to the extent applicable. The Model Report states that, “The policy requires that all other public sector entities document their policies on disclosure, having regard to the government’s policy on openness and probity”. Refer to the MRO for details regarding the relevant government policy.

i. FRD 14 only applies to a public body that is a public sector superannuation scheme. No DELWP portfolio agencies are public sector superannuation schemes.

j. FRD 24C is mandatory for the EPA and Sustainability Victoria; FRD24C encourages adoption of the requirements of this FRD for other public sector entities.

k. FRD 27C only applies to the entities listed in Appendix 1. The only DELWP entities to which FRD 27C applies are the 19 water corporations (as listed in Appendix 1).

l. FRD 29B applies only to bodies that employ staff under Part 3 of the PAA. Other DELWP agencies are encouraged to make similar disclosures, where possible.

Updates to FRDs for this reporting year The table below lists the FRDs that have been — or will be — revised and reissued by DTF, and which are effective for the 2016-17 reporting period.

Please note that the description of the amendments is a high-level summary only, and bodies should refer to the revised FRDs for full details.

FRD FRD Title Description of amendment Status

Re-issued

FRD 9B Departmental disclosure of administered assets and liabilities by activity

• This FRD only applies to departments.• It was updated to reflect the reporting requirements

relocated from AAS 29 to AASB 1050, the example disclosure in appendix A was removed and replaced with a reference to the example disclosure in the model report.

Reissued on 4 May 2017



FRD 15D Executive Officer disclosures in the Report of Operations by Departments.

• This FRD was revised to improve the clarity of the definition of accountable officers and executive officers in departments and public bodies, and to reflect the new reporting requirements for executive officers.

• A number of disclosure requirements were removed from this FRD to simplify reporting requirements (e.g. the requirement to disclose the number of executive officer vacancies, and ongoing or special project executives.)


FRD 21C Disclosures of responsible persons and executive officers in the financial report

FRD 21C requires agencies to make a disclosure in their Financial Statements. This FRD includes a number of updates:

• The definition of remuneration is aligned with the requirements of AASB 124 Related Party Disclosures, and the definition of accountable officer and executive officer for departments and agencies has been clarified.

• The disclosure table was amended to

(i) remove the $100 000 threshold on remuneration reporting for executive officers

(ii) remove the $10 000 banding (iii) incorporate the remuneration disclosure

categories prescribed by AASB 124.

• The term responsible Minister was also changed to relevant Minister to align with the terminology used in the FMA and to clarify the respective definitions in the FRD and 2016 Standing Directions.

• The following disclosures were removed from FRD 21C(i) The related party transaction disclosures for

responsible persons were deleted as they will be reported in the related party disclosure note to the financial statements in accordance with AASB 124.

(ii) The separate disclosure of other personnel. These are contractors with significant management responsibilities who are captured in the related parties disclosure as key management personnel under AASB 124.


FRD 25B Local Jobs First — Victorian Industry Participation Policy Disclosures in the Report of Operations

FRD 25C was amended to reflect reforms to the commitments to Victorian Industry Participation Policy. The reforms included:

• A new brand ‘Local Jobs First’ will sit alongside the legislative VIPP brand. This name change is reflected in the disclosure. Note that the name of the Act has not changed.

• A formal minimum 10% weighting of local content in the project tender evaluation of applicable projects was introduced.

An agency’s disclosure must now include the number of contracts (commencing from 1 September 2016) where the minimum formal weighting was applied for local

Reissued in November 2016



25

content in the tender evaluation of the VIPP Plan or LIDP.

FRD 26B Accounting for VicFleet motor vehicle lease arrangements on or after 1 February 2004

This FRD applies to all motor vehicle lease arrangements under the VicFleet Lease Facility entered into on or after 1 July 2016 by either a department or an agency.It was updated in May 2017 to update references to the Financial Reporting Operations Framework (FROF), which replaced the Budget and Financial Management Guidances (BFMGs) from 1 July 2016.


FRD 29B (& Guidance note to FRD 29B)

Workforce data disclosures in the Report of Operations — public service employees

This FRD applies to departments and agencies that have staff employed under Part 3 of the Public Administration Act 2004.• This FRD was updated following recommendations

from a VPSC review of executive workforce arrangements, and now requires:

• separate reporting of senior non-executive employees, including Senior Technical Specialists (STS), Principal Scientists (PS), Senior Medical Advisors (SMA) and Senior Regulatory Analysts (SRA). Refer to the Guidance for a complete definition of Senior Employees

• remuneration reporting for executives and other senior employees.

• The Guidance Note to FRD 29B was also updated.


FRD 30D Standard Requirements for the Publication of Annual Reports

FRD 30 was amended to:

• update the design specifications to refer to whole of Victorian Government branding

• update the print specifications to include PUR binding as an option under finishing

• include definitions for PUR and perfect binding

• update the description of environmentally sustainable paper stocks.

The Appendix 1 design and print specifications have been removed from this FRD to ensure only mandatory requirements are reflected in the FRD and to remove duplication.


FRD108C Classification of Entities as for-profit

The following changes were made to the list of for-profit entities in this FRD, none of which affect DELWP entities:• Victorian Ports Corporation (Melbourne) and

Melbourne Port Lessor Pty Ltd are now listed in this FRD as for-profit entities. (This amendment is a result of organisational changes following the Port of Melbourne Lease Transaction.

• Development Victoria has been added to the list of for-profit entities in this FRD. This amendment is a result of the merger of Urban Renewal Authority Victoria (Places Victoria) and Major Projects Victoria to create Development Victoria.


FRD 22H Standard Disclosures in Report of Operations

There were no updates to the content of this FRD. The updates to this FRD solely relate to formatting and the

Released on 1 June 2017



updating of source references and terms for consistency with other documents. The example disclosures in the appendices to this FRD were also moved to the Model Report “as these examples are updated on an annual basis”.

Still to be re-issued

FRD 120I(will become FRD 120J)

Accounting and reporting pronouncements applicable to the 2015-16 reporting period

The omnibus FRD 120 is updated annually to list:

• AASs that are effective for the reporting period

• AASs issued but not yet effective for the reporting period.

Usually released in early July 2017

Information in this chapter supports Chapter 5 in the Guide to Annual Reporting.

Manner of establishment and the relevant Minister/s (FRD 22/H)

Relevant Ministers The relevant Ministers for agencies are set out below for the 2016-17 reporting period.

1 July 2016 to 30 June 2017:

• the Hon Lisa Neville MP, Minister for Water

• the Hon Richard Wynne MP, Minister for Planning

• the Hon Natalie Hutchins MP, Minister for Local Government

• the Hon Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change

Example disclosures

The Royal Botanic Gardens Board is established under the Royal Botanic Gardens Act 1991. The responsible Minister for the period from 1 July 2016 to 30 June 2017 was the Hon Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change.

Where two Ministers have joint responsibility for a body, both Ministers must be listed in their Report of Operations.

Corangamite Catchment Management Authority is established under the Catchment and Land Protection Act 1994. The responsible Ministers for the period from 1 July 2016 to 30 June 2017 were the Hon Lisa Neville MP, Minister for Water and the Hon Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change.

Information in this section supports Section 7.3 in the Guide to Annual Reporting.

Disclosures in Section 1 (Year in Review)



27

Performance reporting — financial (FRD 22H)

Example disclosure for significant changes in financial position – nil response

Significant changes in financial positionThere were no significant matters, which changed our financial position during the reporting period.

Example disclosure for significant changes or factors affecting your performance – nil responseA disclosure must be made even if the disclosure amounts to a nil response.

Significant changes or factors affecting performance There were no significant changes or factors, which affected our performance during the reporting period.

Information in this section supports Sections 7.10 and 7.11 in the Guide to Annual Reporting.

Capital projects

Example capital project disclosureDELWP agencies are encouraged to make a capital projects disclosure in the same manner as a department. An example, adapted from the MRO, is set out below.

Note that the example disclosure was updated in the 2017 Model Report to replace the reference to actual completion date with a reference to practical completion date.



Capital Projects/asset investment programs[Agency name] manages a number of capital projects. For information on recent capital projects for [Agency name] and the broader Victorian public sector, please refer to the most recent Budget Paper No. 4 State Capital Program (BP4) available on the Department of Treasury and Finance’s website.

During the year, [agency name] completed the following capital projects with a Total Estimated Investment of $10 million or greater. The details related to these projects are reported below:

Table 1: Capital projects completed during the financial year ended 30 June 2016

Project Name

Original completion date

Latest approved completion date

Practical completion date

Original approved TEI budget ($million)

Latest approved TEI budget ($million)

Actual TEI cost ($million)

Variation between actual cost and latest approved TEI budget

Reason for variance from latest approved TEI Budget

Anti-virus IT system

April 2016 June 2016 June 2016 9 10 8 (2) The variance relates to suitable hardware being sourced more cheaply than anticipated.

[Note that the remainder of table, detailing all other capital projects managed by this agency have been omitted from this guide]

Note: TEI means Total estimated investment

Example capital project disclosure — nil responseIf your agency does not manage any capital projects, then we recommend it include a nil disclosure in its annual report, so that it is clear that this requirement has been considered.

Capital Projects [Agency name] does not manage any capital projects.




29

Disclosure of grants and payments

Example disclosure

Grants and transfer payments[Agency name] has provided grants to certain companies and organisations as part of the Small Business Grants Program, which [agency name] is responsible for administering, together with other agencies, in accordance with section 100 of the Small Business Incentives Act 2012. Grants provided to small businesses in 2016-17 for the purposes of encouraging research and development into new waste reduction technologies were as follows:

Small Business Grants Program - Round 1 (1 September 2016)

Organisation Description Payment $

ABC Pty Ltd (ACN XXX XXX XXX) [R&D project - technology 1] xxxx

Society of BBY (ABN XXX XXX XXX) [R&D project - technology 2] xxxx

……… ……… ………


Subsequent events

Example disclosures

Subsequent eventsOn 1 August 2016, subsequent to the reporting report, [agency name] announced its intention to implement a major restructuring of its Customer Service division. Further details are provided in Note [X] to the Financial Statements.’

Subsequent eventsThere were no events occurring after balance date which may significantly affect the [agency name]’s operations in subsequent reporting periods.’




Example disclosure for audit committee membership and roles

Audit Committee membership and rolesThe audit committee consisted of the following members in 2016-17:

• Abigail Adams, Chairperson (independent)

• Benjamin Brown (independent)

• Carol Cooper (term commenced 1 May 2017)

• Darius Darko (independent)

• Eliza Edwards (independent)

• Frank Fitzburg (term ended 30 April 2017)

• Garry Gleeson.

The responsibilities of the audit committee are set out in Standing Direction 3.2.1.1. Key responsibilities of the audit committee are to:

• review and report independently to the board on the annual report and all other financial information published by [agency name]

• assist the board in reviewing the effectiveness of [agency name]’s internal control environment covering– effectiveness and efficiency of operations– reliability of financial reporting– compliance with applicable laws and regulations

• determine the scope of the internal audit function and ensure its resources are adequate and used effectively, including coordination with the external auditors

• oversee the effective operation of the risk management framework.

Members are appointed by the board, usually for a three-year term, and are subject to the committee’s terms of reference.

Meetings are held quarterly and at any other time on request of a committee member or the internal or external auditor. In 2016-17, the committee met seven times. Attendance of committee members is detailed in the table below, together with attendance of members of other board committees. [table omitted]’


A summary of public sector values and employment principles

Public sector values (section 7, PAA)

The public sector values are: Responsiveness, Integrity, Impartiality, Accountability, Respect, Leadership and Human rights.

Public sector employment principles (section 8, PAA)

Public entities are required to have in place employment processes that will ensure that:

Disclosures in Section 2 (Governance and Organisational Structure)Disclosures in Section 3 (Workforce Data)



31

• employment decisions are based on merit

• public sector employees are treated fairly and reasonably

• equal employment opportunity is provided

• human rights as set out in the Charter of Human Rights and Responsibilities are upheld

• public sector employees have a reasonable avenue of redress against unfair or unreasonable treatment.

Codes of conduct and standards issued by the Victorian Public Sector Commission (VPSC), include:

• the Code of Conduct for Victorian Public Sector Employees

• the Conflict of Interest Policy Framework and the Gifts Benefits and Hospitality Policy Framework.

For further information, please refer to the VPSC’s website (www.vpsc.vic.gov.au).

An example disclosure

[Agency name] has introduced policies and practices that are consistent with the VPSC’s employment standards and provide for fair treatment, career opportunities and the early resolution of workplace issues. [Agency name] has advised its employees on how to avoid conflicts of interest, how to respond to offers of gifts and how it deals with misconduct.


Comparative workforce data

An example disclosure for a DELWP body with <20 non-VPS staff

On 30 June 2017:

• [Agency name] employed five staff (4.8 full time equivalent), compared to seven staff (6.2 full time equivalent) on 30 June 2016.

• The proportion of women was [insert]%, compared to [insert] % on 30 June 2016.

[#include any other relevant statistics / commentary]

Employees have been correctly classified in workforce data collections.

2016-17 2015-16

Classification Number (headcount)

FTE Number (headcount)

FTE

Executive officers 1 1 1 1

Senior managers 0 0 1 1

Administration staff 1 0.8 1 0.4

Field staff 3 3 4 3.8

Total 5 4.8 7 6.2



Male 3 2.8 4 3.8

Female 2 2 3 2.4

Total 5 4.8 7 6.2

Notes:

All figures reflect employment levels during the last full pay period in June of each year.

Excluded are those on leave without pay or absent on secondment, external contractors/consultants and temporary staff employed by employment agencies

Ongoing employees includes people engaged on an open-ended contract of employment and executives engaged on a standard executive contract who were active in the last full pay period of June.

[#Include appropriate definitions for terms such as “FTE”.]

[#Describe any classification used to describe employee types]

Information in this section supports Section 9.2.3 in the Guide to Annual Reporting.

An example disclosure for agencies that employ Part 3 PAA staff An example disclosure is set out on the next page. This has been adapted from an example in FRD 29B and the Model Report.

Information in this section supports Section 9.2.4 in the Guide to Annual Reporting.



33

Comparative workforce data(i)(ii)

The following table discloses the headcount and full-time staff equivalent (FTE) of all active employees of the [agency name] employed at the last full pay period in June of the current reporting period and in the last full pay period in June (2017) of the previous reporting period (2016).

Table 1: Details of employment levels in June of 2016 and 2017(vii)

June 2017 June 2016All employees Ongoing Fixed term and

casualAll employees Ongoing Fixed term and

casualNumber (Headcount)

FTE Full-time (headcount)

Part-time (Headcount)


FTE Number (Headcount)

FTE Full-time (headcount)

Part-time (Headcount)


FTE

Dem

ogra

phic

dat

a

GenderMaleFemaleAge15-2425-3435-4445-5455-6465+

Cla

ssifi

catio

n da

ta

Classification(vi)

[#1 eg managers]

[insert additional rows]

Senior employees(vii)

[#eg. STS][#Executives]Other (viii)

Total employees

Notes:

(i) All figures reflect employment levels during the last full pay period in June of each year. (ii) Excluded are those on leave without pay or absent on secondment, external contractors/consultants, and temporary staff employed by employment agencies, and a small number of people who are not employees but appointees to a statutory office, as defined in the Public Administration Act 2004. (iii) Ongoing employees includes people engaged on an open-ended contract of employment and executives engaged on a standard executive contract who were active in the last full pay period of June. (iv) The increase in employment headcount levels between June 2016 and June 2017 is a result of an increase in part-time employment that followed implementation of initiatives to support family friendly work arrangements. (v) [Number] of fixed term and casual FTE staff were employed for a two-month period to support delivery of the Melbourne Technology Exhibition in May 2016. (vi) [Agency name]’s employees are classified as follows [insert explanation of Classification data]; (vii) [Agency name]’s senior employees are classified as follows [insert explanation of classifications used for senior employees. Note: For departments use the following classifications for senior employees: STS, PS, SMA, SRA and Executives. Definitions of all terms are set out in FRD 29 & its associated guidance note.); (viii) Employees reported with a classification of ‘other’ are [add explanation of Other]





35

What is a workforce inclusion policy?A WIP is the generic name for policy made by a department or a Victorian public sector body (such as your agency) in consideration of either Commonwealth or State anti-discrimination Laws, the Disability Act (Vic), the PAA or similar laws. 15

Key points:

• The policy must relate to workforce inclusion (and not, for example, accessibility).

• The policy must be for the benefit of a person with disabilities, women, CALD, the indigenous (or similar).

Note that if your agency has a WIP, it may be called another name. (e.g. a Reconciliation Action Plan a Gender Inclusion Action Plan, a Multicultural Action Plan, or a Disability Action Plan).

Example disclosure of workforce inclusion policy

Workforce inclusion policy[Agency name] is working towards creating a balanced working environment where equal opportunity and diversity are valued. As part of its workforce inclusion policy, [agency name] has a 50/50 target on the employees’ gender profile by 1 July 2019.

The following table outlines [agency name]’s actual progress against this target in 2016-17 and 2015-16.

Workforce inclusion policy initiative

Target Actual progress in 2016-17

Actual progress in 2015-16

Balanced employee gender profile

By 1 July 2019, on-going/fixed-terms/casual basis employees:50 per cent male; 50 per cent female.

Employees:57 per cent male; 46 per cent female

Employees:56 per cent male; 44 per cent female


Executive Officer disclosure

Disclosure requirements of FRD 15D in a department’s Report of Operations FRD 15C states that a department’s Report of Operations must disclose the following disaggregated information on EO numbers as per the last pay period for the financial year:

• disaggregated information on EO numbers including– executive classification– gender split across classifications– comparison to the previous reporting period

• a reconciliation of the EO numbers that appear in the report of operations to those disclosed in the notes in the financial statements for the current and previous reporting periods

• EO numbers for all its portfolio entities.

15 As advised by Kevin Lee, Assistant Director, Accounting Policy Department of Treasury and Finance in 2015.36 DELWP Companion Resource Guide for Annual Reporting – Public Bodies


The disclosure of gender can include non-binary gender descriptors where it is considered

Definitions Note that FRD 21C defines key terms, including:

• Accountable officer [], which has the same meaning as in section 42 of the FMA

• Annualised employee equivalent (AEE), which is calculated as the time fraction that an employee worked over the reporting period. This is calculated by dividing the total number of days that an employee is engaged to work during the week by the total number of full-time working days per week (this is generally five full working days per week). Refer to FRD 21C for details of adjustments, which may need to be made to take into account flexible working arrangements.16

• Executive officer [], which means a person, other than a statutory office holder or an accountable officer, who is– employed as an executive under Part 3 of the Public Administration Act 2004 – a person to whom the Victorian Government’s Policy on Executive Remuneration in Public Entities

applies.

The Victorian Government’s Policy on Executive Remuneration in Public Entities can also be found on the Victorian Public Sector Commission’s (VPSC) website at http://vpsc.vic.gov.au.

• Responsible person,17 which means the relevant Minister, the accountable officer and members of the governing board. It also refers to anyone occupying or acting in any of these positions.

Please refer to FRD 21C for definitions of all key terms.


Who does the Victorian Government’s Policy on Executive Remuneration in Public Entities apply to?18

VPSC’s website states that the policy applies to:

• a chief executive officer (or equivalent role)

• any person who has significant management responsibility, as determined by the CEO or equivalent role and receives a Total Remuneration Package (TRP) of $156,374 or more.

The policy does not apply to:

• technical specialists who do not have a management function

• people whose employment is regulated by an award or enterprise agreement

• people who do not have significant management responsibility as determined by the CEO or equivalent role.

16 Para 5.2, FRD 21C17 Para 5.4, FRD 21C18 VPSC 2016 Government Sector Executive Remuneration Panel (GSERP) Frequently Asked Questions, available at: http://vpsc.vic.gov.au/wp-

content/uploads/2016/10/government-sector-executive-remuneration-panel-gserp-frequently-asked-questions.pdfDELWP Companion Resource Guide for Annual Reporting – Public Bodies


37

http://vpsc.vic.gov.au/

Government advertising expenditure

Example disclosure Refer to Appendix 2 of FRD 22H and the MRO for an example disclosure, adapted for agencies, below.

Government advertising expenditureDetails of government advertising expenditure (campaigns with a media spend of $100 0001 or greater)

($ thousand)

Name of Campaign

Campaign summary

Start/End date

Advertising (Media) Expenditure 2016-17(excl. GST)

Creative & campaign development Expenditure 2016-17(excl.GST)

Research & evaluation Expenditure 2016-17(excl.GST)

Print and collateral Expenditure 2016-17(excl. GST)

Other Campaign Expenditure 2016-17(excl. GST)

Total

E-recycling

A 6-month campaign to educate companies on how to recycle electronic waste.

Aug 2016 – Jan 2017

620 15 32 12 8 680

Example disclosure — nil response

Government advertising expenditure[Agency name]’s expenditure in the 2016-17 reporting period on government campaign expenditure did not exceed $100 000.


Consultancy expenditure

What is a consultancy?The guidance note to FRD 22H provides a detailed explanation of the definitions of consultant and contractor:

• A contractor is an individual or organisation that is formally engaged to provide works or services for or on behalf of an agency.

• A consultant is a particular type of contractor that is engaged primarily to perform a discrete task for an agency that facilitates decision-making through:– provision of expert analysis and advice

Disclosures in Section 4 (Other disclosures)



– development of a written report or other intellectual output.

Example disclosuresBelow is an example disclosure for consultancy expenditure. Consultancy disclosure examples are also set out in Appendix 1 to FRD 22H and the MRO.

Details of consultancies (valued at $10,000 or greater)In 2016-17, there were [three] consultancies where the total fees payable to the consultants were $10 000 or greater. The total expenditure incurred during 2016-17 in relation to these consultancies was $[amount] (excl. GST).

Details of individual consultancies are outlined on [Agency’s Name]’s website, at [website address].

Details of consultancies (valued at less than $10,000)In 2016-17, there were [total number] consultancies engaged during the year, where the total fees payable to the consultants was less than $10 000. The total expenditure incurred during 2016-17 in relation to these consultancies was $[amount] (excl. GST).


Information and Communication Technology (ICT) expenditure

Background and further informationThe purpose of this disclosure is to increase government transparency in managing ICT expenditure and promote consistency in tracking ICT expenditure.

This disclosure was introduced in 2016 in response to a recommendation from the Victorian Auditor-General’s Office (VAGO) performance audit on Digital Dashboard: Status Review of ICT Projects and Initiatives, which recommended that DPC establish an ICT reporting mechanism to improve government transparency and enable better ICT benchmarking across government.

An ICT Reporting Standard and ICT Expenditure Reporting Guideline were approved by the Victorian Secretaries Board on 16 September 2015 and are available at: http://www.enterprisesolutions.vic.gov.au by searching for “ICT expenditure” .

• ICT Reporting Standard is mandatory for public bodies to comply with.

• ICT Expenditure Reporting Guideline is a guide only.

Definitions19

• ICT expenditure is an agency’s costs in providing business enabling ICT services and consists of the following cost elements:– operating and capital expenditure (including depreciation)– ICT services — internally and externally sourced– cost in providing ICT services (including personnel & facilities) across the agency, whether funded

through a central ICT budget or through other budgets– cost in providing ICT services to other organisations.

For a detailed definition of “ICT expenditure”, please refer to the Glossary in the ICT Reporting Standard.

19 Definitions are contained in paras 5.5, 5.6 and 5.7 of FRD 22H.DELWP Companion Resource Guide for Annual Reporting – Public Bodies


39

http://www.enterprisesolutions.vic.gov.au/ict-dashboard/

http://www.enterprisesolutions.vic.gov.au/ict-dashboard/

• Non Business As Usual (Non BAU) is a subset of ICT expenditure that relates to extending or enhancing current ICT capabilities and are usually run as projects.

• Business As Usual (BAU) includes all remaining ICT expenditure and typically relates to ongoing activities to operate and maintain the current ICT capability.

Total ICT expenditure = ICT BAU expenditure + ICT Non BAU expenditure

Example disclosure [ minor update]An example disclosure is set out in the MRO (p.50), and has been adapted below for an agency. Minor updates have been made to the headings used.

Information and Communication Technology (ICT) expenditureFor the 2016-17 reporting period, [agency name] had a total ICT expenditure of $100 000, with the details shown below.

($ thousand)

All operational ICT expenditure

ICT expenditure relating to projects to create or enhance ICT capabilities

Business As Usual (BAU) ICT expenditure

Non-Business As Usual (non-BAU) ICT expenditure

Operational expenditure (OPEX)

Capital expenditure (CAPEX)

(Total) (Total = Operational expenditure and Capital Expenditure)

60 40 30 10

• ICT expenditure refers to [agency name]’s costs in providing business enabling ICT services within the current reporting period. It comprises Business As Usual (BAU) ICT expenditure and Non-Business As Usual (Non-BAU) ICT expenditure.

• Non-BAU ICT expenditure relates to extending or enhancing [agency name]’s current ICT capabilities.

• BAU ICT expenditure is all remaining ICT expenditure, which primarily relates to ongoing activities to operate and maintain the current ICT capability.

Example disclosure — nil responseAn explicit statement of nil reports is required where the relevant activities or circumstances do not result in any spending

Information and Communication Technology (ICT) expenditureFor the 2016-17 reporting period, the [agency name] had a total ICT expenditure of $0.

ICT expenditure refers to [agency name’s] costs in providing business enabling ICT services.




Disclosure of major contracts

Example disclosure – nil responseAn example of a disclosure for a public body that did not award any major contracts is set out below.

Disclosure of Major Contracts[Agency name] did not award any major contracts (valued at $10 million or more) during 2016-17.

A major contrac’ is a contract entered into during the reporting period valued at $10 million or more.


Compliance with Building Act 1993

Minimum disclosure example If your agency leases a government building, then it would generally be regarded as controlling that building (i.e. assuming it has exclusive possession).

For an example of a disclosure, please refer to the 2016-17 Model Report and to DELWP’s annual report for the period 2015-16 (noting the above changes to disclosures).

Example disclosure —nil response A disclosure must be made even if your agency does not own or control any government buildings, to identify that your agency is exempt. An example of a nil response disclosure is set out below.

Compliance with Building Act 1993 [Agency name] does not own or control any government buildings and consequently is exempt from notifying its compliance with the building and maintenance provisions of the Building Act 1993 [for publicly owned buildings controlled by [agency name].




41

National Competition Policy

Example disclosure ()

National Competition Policy Under the National Competition Policy (NCP), the guiding legislative principle is that legislation, including future legislative proposals, should not restrict competition unless it can be demonstrated that:

• the benefits of the restriction to the community as a whole outweigh the costs

• the objectives of the legislation can only be achieved by restricting competition.

[Agency name] continues to comply with the requirements of the NCP.

Competitive neutrality requires government businesses to ensure where services compete, or potentially compete with the private sector, any advantage arising solely from their government ownership be removed if it is not in the public interest. Government businesses are required to cost and price these services as if they were privately owned. Competitive neutrality policy supports fair completion between public and private businesses and provides government businesses with a tool to enhance decisions on resource allocation. This policy does not override other policy objectives of government and focuses on efficiency in the provision of service.

[Agency name] is working to ensure that Victoria fulfils its requirements on competitive neutrality reporting for technological based businesses against the enhanced principles as required under the Competition and Infrastructure Reform Agreement.




Protected Disclosures Act 2012

Example disclosure (for DELWP portfolio agencies)

Compliance with the Protected Disclosures Act 2012 The Protected Disclosure Act 2012 (PD Act) enables people to make disclosures about improper conduct by public officers and public bodies. The Act aims to ensure openness and accountability by encouraging people to make disclosures and protecting them when they do.

What is a protected disclosure? A protected disclosure is a complaint of corrupt or improper conduct by a public officer or a public body.

[Agency name] is a public body for the purposes of the Act.

What is improper or corrupt conduct? Improper or corrupt conduct involves substantial:

• mismanagement of public resources

• risk to public health or safety or the environment

• corruption.

The conduct must be criminal in nature or a matter for which an officer could be dismissed.

How do I make a Protected Disclosure? You can make a protected disclosure about [agency name] or its board members, officers or employees by contacting IBAC on the contact details provided below.

Please note that [agency name] is not able to receive protected disclosures.

How can I access [agency name]’s procedures for the protection of persons from detrimental action?[Agency name] has established procedures for the protection of persons from detrimental action in reprisal for making a protected disclosure about [agency name] or its employees. You can access [agency Name]’s procedures on its website at: [Link to procedures on agency’s website].

ContactsIndependent Broad-Based Anti-Corruption Commission (IBAC) VictoriaAddress: Level 1, North Tower, 459 Collins Street, Melbourne Victoria 3000.

Mail: IBAC, GPO Box 24234, Melbourne Victoria 3001

Internet: www.ibac.vic.gov.au

Phone: 1300 735 135

Email: See the website above for the secure email disclosure process, which also provides for anonymous disclosures.




43

Compliance with DataVic Access Policy

Example disclosure

Compliance with DataVic Access PolicyConsistent with the DataVic Access Policy issued by the Victorian Government in 2012, the information [insert relevant information submitted to DataVic e.g. all data tables] included in this Annual Report will be available at http://www.data.vic.gov.au/ in electronic readable format [note: suitable formats are CSV, XLS, XML etc., PDF and Word are not suitable formats].




http://www.data.vic.gov.au/

Statement of availability of other information

Example disclosure

Statement of availability of other information Additional information available on requestIn compliance with the requirements of the Standing Directions of the Minister for Finance, details in respect of the items listed below have been retained by [agency name] and are available (in full) on request, subject to the provisions of the Freedom of Information Act 1982:

(a) details of publications produced by [agency name] about itself, and how these can be obtained

(b) details of any major external reviews carried out on [agency name]

(c) details of major research and development activities undertaken by [agency name]

(d) details of major promotional, public relations and marketing activities undertaken by [agency name] to develop community awareness of the entity and its services

(e) details of changes in prices, fees, charges, rates and levies charged.

The information is available on request from:

[Title]

[Agency Name]

Phone: (03) 9xxx xxxx

Email: [email address]

Additional information included in annual reportDetails in respect of the following items have been included in [agency name]’s annual report, on the pages indicated below:

(f) assessments and measures undertaken to improve the occupational health and safety of employees (on page #)

(g) a statement on industrial relations within [agency name] (on page #)

(h) a list of [agency name]’s major committees, the purposes of each committee, and the extent to which the purposes have been achieved (on page #)

(i) a statement of completion of declarations of pecuniary interests by relevant officers (on page #).

Information that is not applicable to [agency name]The following information is not relevant to [agency name] for the reasons set out below:

(j) a declaration of shares held by senior officers (No shares have ever been issued in [sgency name]

(k) details of overseas visits undertaken (No board members or senior executives took overseas work related trips.)




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Design and Printing Requirements (FRD 30D) [ updated]FRD 30D prescribes:

• the design and print specifications for annual reports to ensure consistency, cost minimisation and low environmental impact

• how monetary amounts should be rounded in the Financial Statements.

Updates in FRD 30D include:

• The design specifications were updated to note that whole of Victorian Government branding guidelines should be applied.

• The print specifications were updated to include PUR binding as an option under finishing (in addition to perfect binding). Definitions for PUR and perfect binding have also been added.

• The description of environmentally sustainable paper stocks has been updated.

• The Appendix 1 design and print specifications have been removed to ensure only mandatory requirements are reflected in the FRD and to remove any duplication of information.

Key requirements of FRD 30D are summarised below.

Use of colour

• A single colour is to be used for the text in all internal pages of the report; black is preferred.

• Additional colours may be used for charts, graphs or maps, diagrams if it is essential for the proper understanding of that information.

• Full colour (on both sides) may be used for the report cover.

Design

• The whole of Victorian Government Branding Guidelines (the Brand Victoria Guidelines)20 should be applied.

Photographs

• Photography is to be kept to a minimum, with no full-page photographs. Photographs on internal pages of the report should be in black and white.

• Photographs of senior management are not necessary; photographs of relevant Ministers and Secretary/CEO/organisation heads may be included but are not necessary.

Format of report

• The annual report is to be produced with a finished size of A4 (297mm x 210mm) in portrait format.

• Individual pages within a report may be printed in landscape format to improve readability and understanding of information, such as tables, charts and graphs.

Finishing

• Annual reports must be either perfect bound or PUR bound. Definitions of both of these terms have been updated in FRD 30D and are summarised below:– Perfect binding means the application of an adhesive (EVA) to the spine-gathered pages, which keeps

them securely bound when dry. The drying process is quick and is completed within a few hours.

20 .http://www.dpc.vic.gov.au/index.php/communication/brand-victoria

Design and printing requirements



– PUR binding is the same process as perfect binding, but uses a different adhesive (PUR rather than EVA), which offers a stronger binding quality and flexibility.

• Coatings such as cellosheens or varnishes are not to be applied to covers or internal pages.

• Finishing elements that contribute to the cost of production, such as spot varnish, die cutting or embossing must also not be used.

Uncoated & environmentally suitable paper stocks

• Uncoated stocks are preferable, for both covers and internal pages of annual reports.

• Environmentally suitable paper stocks must be selected for covers and internal pages.

• The definition of environmentally sustainable paper stocks has been updated in FRD 30D. This term now refers to paper stocks that are either certified by the Forest Stewardship Council (FSC) or Program for the Endorsement of Forest Certification (PEFC).

Printing costs

• Printing costs are expected to be kept to a minimum.

• The number of pages and the number of copies should be kept to a minimum. Sufficient hard copies should only be published for tabling in parliament and to provide to stakeholders who are not able to obtain a copy online. Stakeholders should be referred to electronic versions on websites.

Page numbering and referencing• The report should be published as one document. Pages should be numbered consecutively.

• Insertion of separate documents that are not page numbered and are not referenced on the contents page or the disclosure index are not appropriate.

RoundingFRD 30D specifies how amounts are to be rounded in the Financial Statements.

The Financial Statements must be expressed to the nearest dollar — except where the total assets, revenue or expenses of the public sector agency are greater than:

• $10 000 000 — in which case the amounts shown in the Financial Statements may be expressed by reference to the nearest $1 000

• $1 000 000 000 — in which case the amounts shown in the Financial Statements may be expressed by reference to the nearest $100 000.

Auditor-General’s Report []Your agency should ensure that space is allocated in the financial statements for the Auditor-General’s Independent Audit Report. The certificate must be reproduced within the report and be a true reproduction of the original, which is usually two pages.

VAGO has advised that the layout and content of the Auditor-General’s report will change for the 2016-17 reporting period to reflect the relevant AAS’s. Further detail is in Appendix 3 to the Model Report.



47

PrivacyThe use of photos and/or information about staff or other persons may be personal information within the meaning of the Privacy and Data Protection Act 2014. Unless the information in the report is required by law, your agency may need to obtain the consent of the person before it is used.

! If in doubt about the ability to use and disclose personal information in a report, it is recommended that you obtain the express written consent of the person whose personal information is used in the report.

CopyrightA copyright statement must appear in all reports. The State of Victoria owns the copyright for all departments and public bodies, including your agency.

Example© State of Victoria, [agency name] 2017. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

! You must ensure that the required permission to reproduce the copyright material (such as photos) of others has been obtained.

ISSNYour agency should obtain an ISSN (International Standard Serial Number) for the report if this has not already occurred in the past.

ISSNs are only issued to ongoing serial publications, which are intended to continue indefinitely. As an annual report is a serial, rather than a once-off publication, it should have an ISSN not an ISBN (an International Standard Book Number).

How to apply for an ISSNISSNs are issued (at no cost) by the National Library of Australia (NLA). Further information on ISSNs together with an online application form for an ISSN is available on the NLA website (see below).

Medium of publicationAnnual reports can be published in range of mediums, most commonly print and online.

! Where a serial is published in more than one medium, a separate ISSN is required for each format.

• Printed reports: All reports that are to be published in hard copy require an ISSN number from the NLA. Usually, the same print ISSN is used each year. It is inserted on the business page prior to printing.

• Online reports: A separate online ISSN is preferable if the report is to be published online, but it is not mandatory. Usually, the same online ISSN is used each year. However, it can be problematic to include it in your report the first year it is obtained: an annual report must not be altered after tabling and an online ISSN is not usually issued until after the annual report is published online and the NLA has checked the URL. In certain circumstances NLA may agree to issue an online ISSN prior to publication of a report online. Otherwise, apply for the ISSN and use it for future editions.



Change of title

• A change in title of a serial generally requires the allocation of a new number. However, updating the year in the title of an entity’s annual report does not require the allocation of a new number.

National Library of Australia (NLA) (http://www.nla.gov.au/ )

• Phone (02) 6262 1213 (enquiries 10am -12 pm and 2 pm - 4 pm Monday to Friday).

This chapter explains:

• whether your agency’s annual report must be tabled in parliament

• what the tabling date of an annual report is

• who is responsible for tabling.

Tabling vs reporting Presenting a document to parliament is called tabling. It is the Minister’s obligation to table a public body’s annual report in parliament.21

However, not all annual reports prepared in accordance with the FMA must be tabled in parliament. If it is apparent to the Minister from the annual report that your agency’s expenses and obligations in respect of the financial year do not exceed $5 million, then the Minister is not required to table that report. Instead, the Minister must report to each House of Parliament that he has the received the agency’s annual report.22

The exception is when a member of parliament requests that a report be tabled when it is not otherwise required to be tabled. In this instance, then the Minister must cause the report to be tabled in both Houses of Parliament within 14 sitting days of a request by an MP.23

Tabling DateThe legal deadline for when the Minister must have tabled (or reported his receipt of) your agency’s annual report in parliament is specified in the FMA as being:

“after the end of that financial year and before the end of the next following fourth month of the year or on the first sitting day of the House after the end of that month.”

What does this mean?

After the end of that financial year After 30 June 2017

Before the end of the next following fourth month of the year

Before 31 October 2017 (Reports can only be tabled/reported on days on which both Houses of Parliament are sitting and in October 2017 the last sitting day is on 31 October 2017).24

Or on the first sitting day of the House after the end of that month.

On the next sitting day (i.e. 1 November 2017)

Does this mean that there are two deadlines for tabling/reporting in the FM Act?

Yes! However, it is strongly recommended that all reports are tabled by the end of October, due to varying interpretations of section 46 across Government.

Please note that the Minister, the DELWP division that supports your agency or the Premier may request that annual reports be tabled (or reported) in parliament on a date earlier than the FMA legal deadline. If this

21 section 46(1), FMA22 section 46(2), FMA23 section 46(2)(b), FMA24 Please note that the legal deadline for agencies with an EOFY that is not 30 June (such as the Alpine Resort Management Boards) will be different.

Submission and tabling of Annual Reports



49

occurs, your agency must comply with this request. Advice received in July 2017 is that reports are to be tabled or reported on 19, 20 or 21 September 2017.

Any questions about the timetable leading up to the submission of your agency’s report should be directed to the DELWP division that supports your agency.

Available sitting days for tabling annual reports

Month Tues Wed Thu

September 519

620

721

October 1731

18-

19-

November -1428

11529

21630

= Reports tabled or reported in the months of September and October will comply with the FM Act (i.e. legal) deadline.

= Reports tabled after 1 November 2017 will generally not comply with the FMA Act (i.e. legal) deadline.25

Refer to the Parliament of Victoria’s website for the 2017 sitting day schedule.

Premier’s Circular 2012/01 [ withdrawn]

Please note that the Premier’s Circular 2012/01 (Tabling of Annual Reports) was withdrawn in late 2016 and has not been reissued.

Inconsistency between FMA & Establishing ActIn addition to any timeframes in the FMA that apply to your agency (as described above), your agency’s establishing Act may have certain requirements that the report be tabled by a particular date.

Section 54 of the FMA provides that if an agency’s establishing Act provides for the tabling of an annual report and this timeline is inconsistent with the FMA, the FMA timelines prevails.

Who arranges for tabling/reporting?The DELWP division that supports your agency will arrange (on the Minister’s behalf) to either table or report his receipt of your agency’s annual report in parliament.

Delivery of copies of tabled reports to parliament In some instances, your agency will be requested to deliver copies of reports directly to parliament. Please confirm this with the DELWP division that supports your agency.

25 .Section 46 FM Act states that there are two due dates (or deadlines). In 2017, the first deadline is on 31 October 2017 and the second deadline is 1 November 2017 (i.e. the first sitting day after the end of October). Refer to the explanation of section 46 as set out in 14.2 of this guide.50 DELWP Companion Resource Guide for Annual Reporting – Public Bodies


Number and format of tabled reports provided to parliament

Minor changes were introduced to the delivery points for annual reports tabled in parliament:

• Hard copy reports are now to be delivered to the Legislative Assembly Procedure Office.

• Electronic copies are now to be emailed or delivered to the Legislative Council Papers Office.26

If your agency’s report is tabled in parliament, it must provide:

• Fifteen hard copy reports (in total) delivered to the Legislative Assembly Procedure Office

• One electronic (pdf) copy of your agency’s annual report, either emailed to the Legislative Council Papers Office OR delivered to the Legislative Council Papers Office on a CD.

Note: – An electronic copy of a report must be saved as a single pdf document, and must be identical to the

hard copy reports provided.– The maximum size of electronic copies is 20MB (but please try to make it much smaller).27 – Where an electronic copy is provided on a CD, the CD must be labelled clearly with the name of the

report and the contact details of someone at your agency who is able to assist if there are any problems with the CD.

– If it’s not possible for your agency to provide a pdf on a CD (or by email) for some reason, then a secure USB stick can be used.

Once reports are tabled, parliament will use the pdf copy of your agency’s annual report to make it available online through its tabled documents database.

!

For the exact number of copies of reports that your agency must provide DELWP, please refer to the DELWP division that supports your agency. The total number of reports that your agency must provide will include the number of reports:

• required by parliament (see above)

• required for legal deposit (see below)

• required by the department.

Annual reports — where receipt is reportedIf the Minister is only required to report his or her receipt of your agency’s annual report to parliament, then a letter is provided to each House of Parliament. This letter is signed by the Minister and reports the receipt of your agency’s annual report. The DELWP division that supports your agency will arrange for the delivery of these letters to parliament.

If your agency is not required have its annual reports tabled in parliament (i.e. its annual turnover is less than $5 million), then DELWP does not expect that it would publish its annual report in hard copy.

26 .As advised by Kate Murray (Manager, Procedure Office, Legislative Assembly) and Vivienne Bannon (Manager, Chamber Support, Legislative Council) by emailed dated 1 February 2017.

27 .Ibid. DELWP Companion Resource Guide for Annual Reporting – Public Bodies


51

Public release of an annual report After an annual report has been either tabled in the parliament (or its receipt has been reported), your agency may release the report to the public.

Notice that a report has been tabled or reported in parliament is published in Hansard. Your agency must wait until this notice has been published to release its annual report to the public. The DELWP division that supports your agency will usually contact you to let you know when this has occurred.

The annual report that is made available publicly must be the same as that tabled in the parliament or provided to the Minister (as the cases requires).

Legal DepositLegal deposit of an annual report is a statutory obligation under the Victorian Libraries Act 1988 and the Commonwealth Copyright Act 1968.

The Victorian Government Library Service is responsible for fulfilling the legal deposit requirements.

Once your agency’s report is tabled (or reported) in parliament, the DELWP division that supports your agency will arrange for the following copies of your annual report to be delivered to the Victorian Government Library Service to enable it to fulfil the legal deposit requirements:

Hard copy publications (print): Online publications(1) (pdf):

• Five hard copies of your agency’s annual report

• One pdf copy of your agency’s annual report

• One pdf copy of your agency’s annual report

(1) An online publication of an annual report refers to a report that is only made available to the public in an electronic form, via an agency’s website.

The number of copies required for legal deposit are in addition to the number of copies required for tabling etc.

! This information is provided for your information only. The DELWP division that supports your agency will advise you of the exact total number and format of annual reports that it requires you to provide.



Term Meaning

AAS Australian Accounting Standards (and other mandatory professional reporting requirements) issued by the Australian Accounting Standard Board (AASB).

Accountable officer Has the same meaning as in Sections 3 and 42(2)(b) of the FMA and refers to the chief executive officer, which can also be called Managing Director, Commissioner etc..

agency A DELWP portfolio agency that is a public body. (Previously referred to as a public sector agency in the 2003 Standing Directions).

CFO (or CFAO) Chief Finance Officer (also referred to as the Chief Finance and Accountable Officer (CFAO) in the FMA)

Department A Victorian Government department

DELWP division that supports your agency

The governance unit or contact person at DELWP that usually assists your agency

DTF Department of Treasury and Finance (website: www.dtf.vic.gov.au)

EOFY End of Financial Year. For most agencies this is 30 June.

Financial Management Act (FMA) Financial Management Act 1994

Financial Reporting Direction (FRD) A financial reporting direction issued by the Department of Treasury and Finance, on behalf of the Minister for Finance under the FMA.

ISSN and ISBN See of this guide

Model Report The Model Report for Victorian Government Departments issued by the DTF. Note that the SDs refer to the Model Report as the model financial report.

MFS Model Financial Statements

MRO The Model Report of Operations, being the report of operations in DTF’s Model Report.

PAA Public Administration Act 2004.

Public body or body(also see agency)

Public body has the same meaning as it does in Section 3 of the FMA (see 1.3 of this guide) except when used in the context of the Protected Disclosures Act 2013, in which case it has the same meaning as it does in the PD Act).

Responsible body The board of a public body, or if the body does not have a board, the person that is responsible for governing the body’s operations.

Risk Management Framework Victorian Government Risk Management Framework (see Chapter 5).

Standing Directions (SD) The Standing Directions of the Minister for Finance under the Financial Management Act 1994. In the 2017 version of this guide, all references to the SDs refer to the 2016 Standing Directions unless expressly stated.

VAGO Victorian Auditor General’s Office

VMIA Victorian Managed Insurance Authority

VPSC Victorian Public Sector Commission (formerly the State Services Authority)



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