Bp 4: Chief Minister S Department

chief minister’s DEPARTMENT

Objectives

The Chief Minister’s Department provides leadership at a whole of government level for the planning, development, coordination and implementation of key Government strategies.

The Department provides a whole of government focus on policy and strategic advice to Government; policy and support on women and indigenous issues and multicultural affairs; the promotion of the economic development of Canberra; information management policy; public sector management; and management of sport and recreational programs.

2003-04 Highlights

Strategic and operational issues to be pursued in 2003 04 include:

• providing a coordinated whole of government response to issues arising out of the January 2003 bushfire including support for the Bushfire Recovery Taskforce and the Community and Expert Reference Group, operation of the Recovery Centre, study into non-urban bushfire affected areas, and support for the McLeod Inquiry;
• completing the development of the Economic White Paper to produce an industry policy framework for the ACT that will support employment and economic opportunity in the ACT Region;
• increasing support for the indigenous and multicultural communities through introduction of a multifaceted approach to addressing Elder abuse in our community;
• continuing support for small and micro-businesses;
• establishing the Council of Education Export with responsibility to develop the ACT as a preferred study location for international students;
• partnering with the business community and research institutions to provide a one-stop shop for companies and highly skilled knowledge workers to access the information and networks required to make investment and location decisions;
• coordinating the finalisation of the development of the Canberra Plan and the integration of its sub-plans – the Canberra Spatial Plan, the Social Plan and the Economic White Paper;
• completing and implementing the Social Plan which addresses the social infrastructure, housing, access and equity needs of the community;
• managing the replacement of the current Public Service personnel and payroll systems; and
• preparing the first ‘Towards Sustainability Report’.

Budgeted Financial Results

Section 31 of the Financial Management Act 1996 (FMA) states that Chief Executives are responsible for achievement of financial results. For the purpose of Section 31 of the FMA, key budgeted results are specified in the Budget Papers to improve accountability. An outcome of increased accountability is the requirement for Chief Executives to explain material variances from specified budgeted results.

In accordance with Section 31 of the FMA, the following are the key budgeted results for the Chief Minister’s Department in 2003 04:

• Operating Result ($1.080m deficit) – this measure focuses on the financial performance of the Department. The deficit mainly results from the non-cash expenses of depreciation of $0.757m and increases to non current employee liabilities of $0.369m. The Department will manage its resources to achieve or improve the budgeted operating result;
• Current Ratio1 (1.50:1) – the current ratio is an indication of the ability to fund short term liabilities from short-term assets. The Department has sufficient funds to cover its short-term liabilities;
• Total Assets ($32.126m) – this measure focuses on the Department’s ability to manage its assets base, which mainly relates to Manuka Oval and large IT systems; and
• Total Liabilities ($9.720m) – this measure focuses on maintaining prudent levels of liabilities as required by Section 11 of the FMA. Liability levels are considered prudent for the Department as sufficient short-term funds exist to cover payment of all liabilities.

1 Total current assets / Total current liabilities

Notes to the Budget Statements

Significant variations are as follows:

Statement of Financial Performance

• government payment for outputs: the increase of $3.352m in the 2002 03 estimated outcome from the original budget reflects additional appropriation of $3.621m for the bushfire recovery, net wage increase of $0.729m, funding for Volunteering ACT of $0.100m, Canberra Tourism and Events Corporation (CTEC) payroll tax and wages increase of $0.256m, and 2001 02 rollover of $0.644m; which is partly offset by rollovers to 2003 04 for the replacement human resources system of $0.207m, and Knowledge Fund of $1.734m.

The decrease of $3.429m in the 2003 04 Budget from the 2002 03 estimated outcome is due to decreased funding for bushfire recovery of $1.671m, reduced Knowledge Fund of $1.500m, funding discontinued for the Economic White Paper of $0.500m, reduction in the employer superannuation contribution base of $0.222m, removal of 2001 02 rollovers of $4.558m, which are partly offset by 2002 03 rollover of Knowledge Fund of $1.734m, the replacement human resources system of $0.207m, net wage increases for the Department of $0.874m and CTEC of $0.167m, transfer of Seniors Card Program from ACT Health of $0.056m, and a number of new budget initiatives as follows:-

 Fostering Development of Small and Micro Business ($0.270m);

 Council of Education Export ($0.150m);

 Partners Canberra ($0.364m);

 Volunteering ACT ($0.050m);

 Addressing Elder Abuse ($0.100m);

 Enhanced Whole of Government Communications capability ($0.250m); and

 Grant to the Australian Football League ($0.250m);

• user charges - non ACT Government: the decrease of $0.213m in the 2002 03 estimated outcome from the original budget is due to a revision of expected activity;
• user charges - ACT Government: the decrease of $0.600m in the 2002 03 estimated outcome from the original budget is due to a revision of expected activity;
• employee expenses: the increase of $1.752m in the 2002-03 estimated outcome from the original budget is due to the January 2003 bushfire and wage increases. The increase of $1.233m in the 2003 04 Budget from the 2002 03 estimated outcome is primarily due to wage increases of $0.732m, lower than anticipated levels of employee expenditure in 2002 03 of $0.440m primarily as a result of staff transferring to the newly established Department of Disability, Housing and Community Services, increased employee expenses for the Public Sector Injury Prevention and Management Project of $0.037m, ATSI Family Violence Prevention of $0.044m, additional expenditure to carry out new budget initiative for Partners Canberra program of $0.094m, enhanced government communications capability of $0.170m, which are partly offset by the decrease of bushfire funding of $0.286 in 2003 04;
• superannuation expenses: the increase of $0.276m in the 2002-03 estimated outcome from the original budget is due to increased expenses as a result of the January 2003 bushfire and the wage increases. The decrease of $0.118m in the 2003 04 Budget from the 2002 03 estimated outcome is primarily due to a decrease of bushfire funding of $0.049m, and decreased expenses as a result of a change in the actuarial rates of contributions for CSS and PSS of $0.222m; partially offset by increased expenses as a result of wage increases of $0.083m, increased funding for Public Sector Injury Prevention and Management Project $0.005m, Partners Canberra of $0.012m and enhanced government communications capability of $0.025m;
• supplies and services: the increase of $2.313m in the 2002 03 estimated outcome from the original budget is primarily due to increase of bushfire recovery funding of $2.305m and increased expenditure for the Public Service Injury Prevention and Management Project of $0.179m; partly offset by reduced level of administrative expenses of $0.260m across business units.

The decrease of $2.980m in the 2003-04 Budget from the 2002-03 estimated outcome is mainly due to decreased funding for bushfire recovery of $1.586m, the Economic White Paper of $0.500m, Conservation of Business Gateway Site to MetaWizdom of $0.246m, Manuka Oval Operating Subsidy of $0.072m, and removal of 2001-02 rollovers of $2.378; partly offset by rollover of funding for the replacement human resources system of $0.414, and a number of budget initiatives:

 Fostering Development of Small and Micro Business ($0.270m);

 Partners Canberra ($0.258m);

 Addressing Elder Abuse ($0.100m);

 Study into Non-Urban Bushfire Affected Areas ($0.250m); and

 McLeod Inquiry ($0.100m);

• grants and purchased services: the decrease of $0.893m in the 2002 03 estimated outcome from the original budget is mainly due to rollover of the Knowledge Fund of $1.734m; partly offset by increased expenditure resulting from a Treasurer’s Advance for Volunteering ACT of $0.100m, bushfire recovery of $0.100m, increased ACTBIS waivers of $0.181m, CTEC wage increases and payroll tax of $0.256m, and unspent 2001-02 grant expenditure of $0.261m. The decrease of $1.299m in the 2003-04 Budget from the 2002-03 estimated outcome is largely a result of the rollover of the knowledge fund from 2001-02;
• other expenses: the decrease of $10m in the 2003 04 Budget from the 2002 03 estimated outcome is a result of a one-off land grant made in 2002 03 as part of the assistance package to establish an ACT node of the National ICT Centre of Excellence; and
• extraordinary revenue and expenses: the increase of $4.799m in the 2002 03 estimated outcome from the original budget is primarily due to funding provided for bushfire recovery. The decrease of $2.580m in the 2003 04 budget from the 2002 03 estimated outcome is mainly related to a reduced funding needs in 2003 04 for the bushfire program.

Statement of Financial Position

• property, plant and equipment: the increase of $1.750m in the 2002 03 estimated outcome from the original budget is largely a result of the revaluation of Manuka Oval in 2001-02;
• capital works in progress: the decrease of $8.063m in the 2002-03 estimated outcome from the original budget is primarily due to rollovers of funding for the replacement human resources system of $6.435m, return of Electronic Services Delivery, and the transfer of remaining funds to the Department of Justice and Community Safety (JACS) respectively of $1.120m and $0.380m; and a rollover of funding for the Convention Centre of $0.118m. The increase of $7.738m in the 2003 04 Budget from the 2002 03 estimated outcome primarily relates to rollover of capital investment in the replacement human resources system; and
• payables: the increase of $1.797m in the 2002 03 estimated outcome from the original budget is a flow on from the higher accruals in the 2001-02 audited result.

Statement of Cash Flows

• purchase of land and intangibles: the 2002-03 estimated outcome of $4.300m reflects the one off purchase of Commonwealth land in 2002 03. The increase of $3.070m in the 2003 04 Budget from the 2002-03 estimated outcome reflects a payment of $7.370m for development of the replacement human resource system;
• capital payment to government agencies: the decrease of $0.135m in the 2003 04 Budget from the 2002 03 estimated outcome is mainly due to a one-off capital payment to CTEC in 2002 03; and
• capital injections from government: the decrease of $3.753m in the 2002 03 estimated outcome from the original budget is primarily due to the rollovers of funding for the replacement human resources system of $6.435m and funding for the Convention Centre of $0.118, return of funding to Government for the Electronic Services Delivery (ESD) fund of $1.120m and a transfer of $0.380m to JACS. These are partly offset by additional capital injection for a purchase of Commonwealth land of $4.300m.

Notes to the Budget Statements

Significant variations are as follows:

Statement of Revenues and Expenses on Behalf of the Territory

• payment for expenses on behalf of the Territory: the increase of $0.100m in the 2002 03 estimated outcome from the original budget is primarily due to one-off funding for the Canberra Cannons basketball team of $0.100m. The decrease of $0.245m in the 2003 04 Budget from the 2002 03 estimated outcome is the result of transferring Multicultural Grants of $0.045m from Territorial to Departmental, a decrease in funding of $0.100m to the Stadiums Authority and one-off funding in 2002-03 for the Canberra Cannons basketball team of $0.100m. The decrease in the outyears reflects a lower subsidy to the Stadiums Authority;
• grants received from the Commonwealth: the decrease of $0.057m in the 2002 03 estimated outcome from the original budget is a result of a reduction in Sport funding from the Commonwealth Government; and
• grants and purchased services: the decrease of $0.245m in the 2003 04 Budget from the 2002 03 estimated outcome is mainly due to the transfer of Multicultural Grants from Territorial to Departmental of $0.045m; a reduction of funding of $0.100m to the Stadiums Authority and a one-off payment of $0.100m to the Canberra Cannons basketball team. The decrease in the outyears reflects a lower subsidy to the Stadiums Authority.

Changes to Appropriation

Capital Works

Departmental

Commonwealth Grants

The major Commonwealth payment for which the Portfolio has responsibility is:

Notes