Web Accessible 2015-16 Annual Report Without Financial Statements
Department of Treasury and Finance
Annual Report 2015-16
Department of Treasury and Finance Annual Report 2015-16
© Government of Tasmania 2016
Excerpts from this publication may be reproduced, with appropriate acknowledgement, as permitted under the Copyright Act 1968
For further information please contact:
Department of Treasury and Finance
GPO Box 147
HOBART TAS 7001
Published October 2016
ISSN 1836-1277 (Print)
ISSN 1836-1285 (Online)
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LETTER OF TRANSMITTAL
Department of Treasury and Finance
The Treasury Building
21 Murray Street, HOBART, Tas 7000
GPO Box 147, HOBART, Tas 7001 Australia
Telephone: (03) 6166 4444 Facsimile: (03) 6223 2755
Email: Web:
Hon Peter Gutwein MP Treasurer
Dear Treasurer
Department of Treasury and Finance – 2015-16 Annual Report
In accordance with the requirements of section 36(1) of the State Service Act 2000 and section 27 of the Financial Management and Audit Act 1990, I am pleased to submit for presentation to Parliament, the 2015-16 Annual Report of the Department of Treasury and Finance.
Yours sincerely
Tony Ferrall
Secretary
7 October 2016
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Table of Contents
LETTER OF TRANSMITTAL
SECRETARY’S REVIEW
EXECUTIVE COMMITTEE
EXECUTIVE STRUCTURE
Organisational Chart
KEY CORPORATE GOVERNANCE ARRANGEMENTS
Other internal committees
FUNCTIONS AND SERVICES
Office of the Secretary
Budget and Finance Division
Economic and Financial Policy Division
Corporate Support Division
Revenue, Gaming and Licensing Division
ASSOCIATED ENTITIES
Tasmanian Economic Regulator
Tasmanian Liquor and Gaming Commission
State Grants Commission
Retirement Benefits Fund
Tasmanian Public Finance Corporation
CORPORATE DIRECTION 2015-16
Key Strategic Risks
Achieving Government Priorities
Building our Organisation
2015-16 Key Highlights
2015-16 Corporate Direction
2016-17 Corporate Direction
OUR DEPARTMENT
Performance Information
Risk Management
Stakeholder engagement
Appearances before Parliamentary Committees
Carbon emissions reduction plan
Energy usage
Publications
Right to Information
Gifts, Benefits and Hospitality
Presentations to community groups
OUR PEOPLE
Employee demographics
Recruitment and selection
Workplace Diversity
Gender Diversity
Disability Access Plan
Leave statistics
Learning and development
Performance management
Cadet and Graduate Programs
Employee health, safety and wellbeing
Promoting a healthy workplace
White Ribbon
Ethical conduct of staff
Treasury Social Club
Charitable support
Employee participation in industrial relations matters
Internal grievance procedures
Appeals process
LEGISLATION
Legislation administered
Legislation enacted in 2015-16
DISCLOSURES AND APPEALS
Public interest disclosures
Appeal of decisions
Reviews
COMMUNITY ASSISTANCE
Bass Strait Islands Community Service Obligation
Public Trustee Community Service Obligation
Electricity Concessions
Community Support Levy
PRICING POLICY
ASSET MANAGEMENT
PROCUREMENT
Contracts awarded
Consultancies awarded
Direct/limited procurement
Contract extensions
Exemptions approved during 2015-16 in relation to disaggregated contracts
Confidentiality of government contracts
Treasurer’s Instructions exemptions
Common use contracts
SUPERANNUATION CERTIFICATE
GLOSSARY
STATEMENT OF COMPLIANCE
HOW TO CONTACT US
INDEX
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SECRETARY’S REVIEW
I am pleased to present this report on the activities and performance of the Department of Treasury and Finance for 2015-16.
This year proved to be anything but routine, with the Government required to respond to a number of unprecedented challenges for the Tasmanian community, including energy security issues, floods and fires. Treasury has continued to supportour key stakeholder, the Treasurer, and the Government to implement its priorities and tackle emerging issues.
Internally, we have been involved in a number of projects, in addition to delivering our business-as-usual tasks:
•managing the parliament square redevelopment project, which will deliver a contemporary and efficient multi-use precinct that will serve the Tasmanian community for many years to come;
•commenced Phase 4 of the Budget Information Management System (BIMS) project, which included a detailed tender process;
•successfully implemented Phase Two of our Client View System, comprising Payroll Tax, Insurance and Motor Vehicle Duties and an enhanced web taxpayer portal;
•supported the Government to deliver the
•State Budget in May 2016;
•assisted with Forestry Tasmania reforms;
•continued to assist the Government to implement its superannuation reforms;
•introduced the Government’s new Financial Management Bill 2015 into Parliament in September 2015, fulfilling a key commitment under its 365 Day Plan; and
•prepared a fiscal sustainability report that assessed the long term economic, demographic and fiscal pressures facing Tasmania.
Our most valuable resource continues to be the talent and expertise of our employees and the professionalism and commitment shownby our staff is impressive. Throughout 2015-16, this has allowed us to effectively and efficiently respond to competing priorities and ensure the ongoing delivery of our core tasks in a demanding environment.
Our 2015 Stakeholder Survey report was released in March 2016. The survey shows our stakeholders are highly satisfied with ourperformance. Our commitment to strengthening stakeholder engagement and collaboration is an ongoing corporate priority.
During 2015-16, continuing to invest in our people was also a priority for the Department.
In particular, we have identified strategies to improve our diversity and agility as an organisation. This has included expanding opportunities for flexible work as well as setting a target of 50/50 by2020 in terms of the representation of males and females in our leadership team.
Another significant internal priority is our commitment to White Ribbon. We have worked very hard towards achieving White Ribbon accreditation, which in line with our values, demonstrates zero tolerance towards violence against women.
I thank all Treasury employees for their commitment to consistently delivering outcomes to a very high standard throughout 2015-16.
I look forward to another exciting and productive year in 2016-17.
Tony Ferrall, Secretary
7 October 2016
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EXECUTIVE COMMITTEE
Tony Ferrall, Secretary, Department of Treasury and Finance
Tony leads the Department in managing the Tasmanian Government’s financial resources and implementing strategies to achieve the Government’s economic and financial objectives. Tony has extensive budget, finance, policy and organisational leadership experience. Tony commenced as Secretary in August 2013.
Kathrine Morgan-Wicks, Deputy Secretary, Budget and Finance Division
Kathrine is responsible for the preparation and monitoring of the State Budget, for the management of the Public Account and for providing advice to the Government on the financial management of the public sector.
She manages the Government’s office accommodation portfolio, insurable risks of agencies, property sales, whole of government procurement, information management systems projects, parliament square and the Budget.
Kathrine has occupied the role of Deputy Secretary since February 2014. She brings to Treasury a wealth of corporate, market and financial services regulatory experience.
Anton Voss, Deputy Secretary, Economic and Financial Policy Division
Anton is responsible for the provision of high level policy advice on economic and financial issues, intergovernmental financial relations and State taxation issues. He monitors and provides advice on the performance of government businesses and supports the Tasmanian Economic Regulator.
Prior to joining Treasury as Deputy Secretary in January 2014, Anton previously worked in a number of senior roles at Aurora Energy, as economic advisor to the Tasmanian Treasurer and in a variety of management roles at the Reserve Bank of Australia.
Jonathon Root, Deputy Secretary, Revenue, Gaming and Licensing Division
Jonathon is responsible for overseeing the collection of the majority of Tasmania’s taxation revenue. He occupies the independent roles of Commissioner of State Revenue and Commissioner for Licensing. Jonathon provides advice to the Government on liquor and gambling policy and provides support to the Tasmanian Liquor and Gaming Commission. Jonathon commenced as Deputy Secretary in May 2011.
2016-17
Jane Beaumont, Deputy Secretary, Corporate and Governance Division
Jane was appointed to the position of Deputy Secretary, Corporate and Governance on 8 August 2016. Jane is responsible for the provision of high level advice and support to the Executive as well as corporate, human resources, risk and information management and systems.Prior to joining Treasury, Jane occupied senior legal roles and she brings a wealth of legal, risk management, audit, work health and safety and industrial relations knowledge to Treasury.
EXECUTIVE STRUCTURE
Organisational Chart
Our organisation carries out its functions and services under the leadership of the Secretary, the Executive Committee and the Corporate Management Group (CMG). The CMG comprises our Executive Committee and all Branch Heads as outlined below, as at 30 June 2016.
Branches within the Corporate Support Division were led by the Deputy Secretary Revenue, Gaming and Licensing and the Secretary during 2015-16. A revised approach to managing corporate and governance functions was adopted in June 2016, with the role of Deputy Secretary, Corporate and Governance filled.
Jane Beaumont started on 8 August 2016, and does therefore not appear below.
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Our mission
To improve the wellbeing of Tasmanians by providing:
•high quality advice to theGovernment; and
•effective and efficient administration of our financial and regulatory responsibilities.
Our values
Treasury is a values-based organisation. Our decisions and behaviour are guided by:
•Respect
•Camaraderie
•Integrity
•Passion
•Excellence
KEY CORPORATE GOVERNANCE ARRANGEMENTS
Secretary
The Secretary has overall responsibility for the performance and management of the Department and is accountable to the Treasurer and Premier. The Secretary is a Head of Agency as defined by the Financial Management and Audit Act 1990 and pursuant to the State Service Management Framework.
Executive Committee
The Executive Committee’s primary functions are to drive the strategic direction of the Department, provide leadership and manage our human, physical and financial resources to achieve our corporate priorities. The Committee provides a forum for overseeing the progress of legislation and major projects; the consideration of internal and external policy direction; tracking our corporate priorities; stakeholder engagement; and our people and culture strategy. Executive Committee representatives meet regularly with the Treasurer to clarify policy direction and ensure the legislative agenda meets the Government’s priorities.
Executive Committee Members
•Tony Ferrall (Secretary)
•Anton Voss (Deputy Secretary, Economic and Financial Policy Division)
•Kathrine Morgan-Wicks (Deputy Secretary, Budget and Finance Division)
•Jonathon Root (Deputy Secretary, Revenue, Gaming and Licensing Division)
Corporate Management Group
The Corporate Management Group comprises the Department’s senior managers (the Secretary, Deputy Secretaries and all Branch Heads), who provide leadership and support to ensure the achievement of our organisational priorities and objectives. The CMG’s main purpose is to monitor and discuss the progress of corporate priorities, major projects and the achievement of the objectives set out in our Corporate Direction. The CMG also provides a forum to discuss and share information on emerging issues.
Audit and Risk Management Committee
The Audit and Risk Management Committee is a sub-committee of the Executive Committee. The Committee oversees a robust internal audit framework for the Department and provides advice to the Secretary on the need to change the framework or associated processes as well as advice on the management of audit risks.
Audit and Risk Management Committee Members
•Richard Easther (Independent Chairperson)
•Craig Jeffery (Director, Government Finance and Accounting Branch)
•Andrew Hutchinson (Assistant Director, Revenue Branch)
•Kane Salter (Independent Member, Department of Education)
Strategic Information Management and Technology Committee
The Strategic Information Management and Technology Committee is a sub-committee of the Executive Committee. The Committee provides oversight and approval of the Department’s information management and communications technology strategies, policies and risks, to ensure that these continue to align with the Department’s overall priorities and whole-of-government ICT strategy and deliver the intended business outcomes.
Strategic Information Management and Technology Committee Members
•Kathrine Morgan-Wicks, Chairperson (Deputy Secretary, Budget and Finance Division)
•Jonathon Root (Deputy Secretary, Revenue, Gaming and Licensing Division)
•Craig Jeffery (Director, Government Finance and Accounting Branch)
•James Craigie (Director, Shareholder Policy and Markets Branch)
Procurement Review Committee
The Procurement Review Committee reviews the procurement process for all goods and services and building and construction contracts valued at $100 000 or more, to ensure the process is fair, equitable and consistent with the principles outlined in the Treasurer’s Instructions. The review is undertaken before a quotation/tender is accepted or a contract is awarded.
Procurement Review Committee members
•Craig Jeffery, Chairperson (Director, Government Finance and Accounting Branch)
•David Bailey (Director, Budget Management Branch)
•Glenn Lewis (Director, Information Systems Branch)
•Angelo Pavlides (Director, Revenue Branch)
•Andrew Finch (Director, Procurement and Property Branch)
State Forecasting Committee
The State Forecasting Committee endorses macroeconomic forecasts to be published in the State Budget and associated financial reports. The forecasts are also used as key inputs into the estimates of a number of State revenue lines. The Committee endorses and monitors Budget and forward estimates of State taxation, GST revenue, government business returns, and other revenue.
State Forecasting Committee members
•Tony Ferrall, Chairperson (Secretary)
•Kathrine Morgan-Wicks (Deputy Secretary, Budget and Finance Division)
•Anton Voss (Deputy Secretary, Economic and Financial Policy Division)
Financial Assets and Borrowing Management Committee
The role of the Financial Assets and Borrowings Management Committee is to set out a framework for the identification, quantification, assessment and management of all financial market risks. This includes liquidity and funding risk that is associated with the Government’s State Debt and financial assets and liabilities of the Public Account. The FABMC makes debt issuance, financial asset investment or hedging decisions, with consideration to recommendations made by Tascorp, including earnings forecast, and the interest rate forecast by Treasury.
Financial Assets and Borrowing Management Committee members
•Kathrine Morgan-Wicks, Chairperson (Deputy Secretary, Budget and Finance Division)
•Craig Jeffery (Director, Government Finance and Accounting Branch)
•David Bailey (Director, Budget Management Branch)
Other internal committees
Learning and Development Committee
The Learning and Development Committee is responsible for encouraging a learning culture in Treasury, through broad policy input in the design and delivery of learning and development programs. The Committee identifies emerging learning and development needs within Treasury and monitors corporate budget expenditure. Membership comprises two representatives from each of Treasury’s four divisions.
Work Health and Safety Committee
The Work Health and Safety Committee aims to actively promote safe working behaviour by fulfilling an advisory and consultation function regarding issues that impact on employee health, safety and wellbeing. The Committee consults on development and implementation of measures designed to ensure the health and safety of employees. Membership comprises of elected Health and Safety Representatives and key Corporate Support staff.
White Ribbon Reference Group
The role of the White Ribbon Reference Group is to promote a culture of gender equality, respectful relationships and to increase awareness of the issue of violence against women and its impact. The Reference Group provides input and support to the White Ribbon Project Team, which is responsible for attaining and maintaining Treasury’s White Ribbon accreditation. Membership comprises of Divisional representatives who are committed and passionate about preventing violence against women.
FUNCTIONS AND SERVICES
The Department of Treasury and Finance is the central agency responsible for managing the Tasmanian Government’s financial resources and for implementing strategies to achieve the Government’s economic and fiscal objectives. In 2015-16, our budgeted operating expenditure was $48.9 million.
In 2015-16, the Department comprised four divisions and the Office of the Secretary, which carry out the functions and services of our Department. Our Department comprises a range of specialist policy, operational and corporate staff who provide high quality advice to the Government and administer our financial and regulatory responsibilities.
Employee Headcount by Division
Office of the Secretary
The Office of the Secretary (OTS) supports the Secretary of the Department in managing the Department’s relationships with the Treasurer, the Executive Council, the Cabinet Office and Parliament. It providessupportto the Department’s corporate governance committees, including the Executive Committee. The OTS manages the corporate planning framework across the Department; monitorsthe achievement of corporate priorities; and is responsible for requests received by the Department under the Right to Information Act2009, the Personal Information Protection Act 2004and the Public Interest Disclosure Act 2002.
Budget and Finance Division
The Budget and Finance Division is responsible for the preparation and monitoring of the State Budget, maintains accounts, prepares financial statements for the Public Account and Treasury Corporate, and provides advice on financial management in the public sector. The Division manages identified insurable risks of agencies (through the Tasmanian Risk ManagementFund). Additionally, the Division manages the Government’s owned and leased office accommodation portfolio, proper ty sales, the parliament square project and the promotion of procurement reform across government.
Economic and Financial Policy Division
The Economic and Financial Policy Division provides a wide range of policy advice on economic and financial issues, intergovernmental financial relations and State tax issues. The Division provides strategic advice and monitors the performance of government businesses and also provides the resources for the Tasmanian Economic Regulator to carry out its statutory functions.