Cabinet Submission
Title
XXXX Cluster Biannual Report1
Minister
Minister’s name
Title of portfolio under which the Cabinet Submission is submitted
Cluster
Name of cluster
Date of submission
Date of draft / final Submission
Status
Draft / Final
Relationship to
previous decisions
Dates, reference numbers and titles of related previous decisions
Include departures from previous decisions
Result of consultation
Agreed / Not agreed / Ongoing / In progress
Priority
A/B/C
Include critical date and reason, if applicable
[A – Time Critical, B – Minister would like matter considered in
the next 2 months, C – Minister would like matter considered in
next 6 months]
Financial impact
No
Legislative change
No
Regulatory impact
No impact
Submission type
Performance update
Contacts
Name, Position
Department/agency
Phone number
Name, Position
Minister’s Office
Phone number
1
This submission is to be used by clusters when reporting financial position to the ERC. Accordingly, it should not include new policy
or spending proposals. Report should use Arial 11 and not contain drafting notes.
Sensitive: NSW Cabinet
CABINET-IN-CONFIDENCE
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1 Recommendation(s)
It is recommended that the Cabinet Committee on Expenditure Review:
i)
[Recommendations should foreshadow decisions required to address identified issues and
should have appropriate elaboration in the body]
a) [Each recommendation should ask the Committee to Approve, Agree to or Endorse a
particular action. Recommendations to Note should be avoided.
b) [Recommendations should be clear concrete actions easily translatable as formal ERC
decisions]
c) [Not to exceed half a page]
2 Executive summary
2.1 [Using Plain English, explain what the Committee is being asked to approve, why and by
when - preferably half page; one page maximum]
2.2 [All points raised should have elaboration in the body]
3 Key issues and risks
[Highlight only key issues and risks that require consideration by ERC. In particular, risks rated
from medium to extreme based on Risk Management Toolkit, Treasury Policy Paper (TPP)
12-03, for the NSW public sector. Narrative should be clear whether it is discussing points in
reference to the whole cluster or to a particular agency]
Major reforms
3.1 [Material issues and risks relating to delivery of major reforms including delivery of key
election commitments]
3.2 [ “ ]
Service performance
3.3 [Material issues and risks in delivering the cluster’s major services, including those relating
to State Priorities, Cluster agreements, if these are not covered in other sections in this
report. Include benchmarks and trends on service performance where possible/appropriate]
3.4 [ “ ]
Major infrastructure projects
3.5 [Material issues and risks in delivering the cluster’s infrastructure projects including those
relating to rebuild and restart strategies]
3.6 [ “ ]
Sensitive: NSW Cabinet
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Financial performance
3.7 [Material issues and risks relating to adherence to budget controls (recurrent and capital
expenses); adherence to budgeted revenues and assets sales; adherence to cash flow and
balance sheet metrics. Include advice on revenue and expenditure trends as appropriate]
3.8 [ “ ]
Savings delivery
3.9 [Includes significant issues relating to delivery of cluster’s savings strategy; should
summarise key issues from savings attachment 7.5]
3.10
Other significant issues and risks
3.11 [Includes matters that have to be reported back to ERC as per attachment 7.4, unless
covered in other sections]
3.12 [Discuss significant risks or evolving issues in the cluster’s financial management e.g. recent
changes in key finance personnel]
4 Consultation
4.1 [Summarise consultation and any material issues identified or actions agreed including
material disagreements between the cluster and Treasury on projected financials and risk
assessments and consultation with GPNSW on asset disposal]
5 Risks and mitigation
5.1 [Highlight only risks that have significant $ impact requiring consideration by ERC]
Description of risk
(Show impact in $m)
Rating
H/M/L
Current
year
Current
year +1
Current
year +2
Current
year +3
Mitigation strategies
6 Financial position
Prior year result [for submission in first half year report only]
6.1 [Comment on any major variations or breaches of controls and proposed response]
6.2 [Complete a separate table for all significant agencies in the cluster. Significant agencies are
the 16 Major agencies (All departments, Roads and Maritime Services, NSW Police Force,
Office of Environment and Heritage, TAFE Commission, SICorp and Crown Finance Entity)
plus any other agency with a material budget issue for ERC to note]
6.3 [Comment on the key points from the accompanying table(s) below and Attachment 7.1]
Sensitive: NSW Cabinet
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6.4 [There should be discussion on the cluster/agency’s historical adherence to budget controls,
if necessary]
$m
Significant agency(s)
Original
Published
Budget
Revised Estimate
After Approved or
Compliant2
Changes
Final Result
Variation
from Budget
(A)
(B)
(C)
(C-A)/A
Total expenses
0.0
0.0
0.0
+/-0.0%
Revenue
0.0
0.0
0.0
+/-0.0%
+/-0.0
+/-0.0
+/-0.0
+/-0.0%
Capital Expenditure
0.0
0.0
0.0
+/-0.0%
Asset sales
0.0
0.0
0.0
+/-0.0%
+/-0.0
+/-0.0
+/-0.0
+/-0.0%
Net Cost of Services
Net Asset Acquisition3
Current year forecast
6.5 [Complete a separate table for all significant agencies in the cluster. Significant agencies are
the 16 Major agencies (All departments, Roads and Maritime Services, NSW Police Force,
TAFE Commission, Office of Environment and Heritage, SICorp and Crown Finance Entity)
plus any other agency with a material budget issue for ERC to note]
6.6 [Comment on how the cluster/agency quality of cash forecasting and utilisation of the buffer]
6.7 [Comment on the key points from the accompanying table(s) below and Attachment 7.2]
6.8 [Comment on any major variations or breaches of controls and proposed response, refer to
Attachment 7.3 as appropriate]
6.9 [ “ ]
2
3
Please consult with your Treasury analyst for compliant changes
Capital Expenditure less Asset Sales
Sensitive: NSW Cabinet
CABINET-IN-CONFIDENCE
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$m
Significant agency(s)
Original
Published
Budget
Revised Estimate
After Approved or
Compliant4
Changes
Current
Forecast
Variation
from
Budget
(A)
(B)
(C)
(C-A)/A
Total expenses
0.0
0.0
0.0
+/-0.0%
Revenue
0.0
0.0
0.0
+/-0.0%
+/-0.0
+/-0.0
+/-0.0
+/-0.0%
Capital Expenditure
0.0
0.0
0.0
+/-0.0%
Asset sales
0.0
0.0
0.0
+/-0.0%
+/-0.0
+/-0.0
+/-0.0
+/-0.0%
Net Cost of Services
Net Asset Acquisition5
7 Attachments
7.1 Whole cluster budget variations – year end table [half year report only]
7.2 Whole cluster budget variations – current year forecast table
7.3 Explanation of major variations
7.4 Status update on actions from prior ERC decisions
7.5 Cluster savings summary and initiatives status
[This attachment will be prepared by Treasury’s Fiscal Effectiveness Office (FEO), on behalf of
clusters, using the savings data clusters have provided to FEO. The completed attachments will be
forwarded to the relevant cluster contact to be attached to the Cabinet Submission.]
7.6 Update on program evaluation
4
5
Please consult with your Treasury analyst for compliant changes
Capital Expenditure less Asset Sales
Sensitive: NSW Cabinet
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7.1 WHOLE CLUSTER BUDGET VARIATIONS – YEAR END TABLE
Expenses
Agency
Capital Expenditure
2014-15
2014-15
Var.
2014-15
2014-15
Var.
Budget
Actual
%
Budget
Actual
%
$m
$m
$m
$m
Department
Expenses excluding cluster grants
Cluster grant funding
…
…
…
Total
Agency 1
Agency 2
Agency 3
Agency 4
Agency 5
Agency 6
Agency 7
Agency 8
Agency 9
Agency 10
7.2 WHOLE CLUSTER BUDGET VARIATIONS – CURRENT YEAR FORECAST TABLE
Expenses
Agency
Capital Expenditure
2015-16
2015-16
Var.
2015-16
2015-16
Var.
Budget
Forecast
%
Budget
Forecast
%
$m
$m
$m
$m
Department
Expenses excluding cluster grants
Cluster grant funding
…
…
…
Total
Agency 1
Agency 2
Agency 3
Agency 4
Agency 5
Agency 6
Agency 7
Agency 8
Agency 9
Agency 10
Sensitive: NSW Cabinet
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7.3 EXPLANATION OF MAJOR VARIATIONS
Treasury
support
Asset sales
Capex
Net Cost of
Service
Revenue
Agency & Variation Explanation
Expenses
$m impact of Variation
Y/N
[This attachment should be used to explain major variations for the current year by agencies (as a guide,
major variations are those exceeding $5m). Include a description of the variation in column 1 and impacts
in dollar terms in the other columns as appropriate. The description should describe the impact of the
variation (as favourable or unfavourable), should be specific and should contain the key variation drivers.
Where a variation has been formally approved by Government, note this in your explanation. Use
discretion in determining what variations in what agencies to include ensuring that ERC only focuses on
significant issues. If applicable, the explanation should contain corrective actions undertaken or proposed.]
7.4 ACTION STATUS OF PREVIOUS ERC DECISIONS
Date, Submission # and title
Sensitive: NSW Cabinet
Action required
Current status
CABINET-IN-CONFIDENCE
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7.5 – CLUSTER SAVINGS SUMMARY (EXAMPLE)
Figure 1: Cluster savings by year, 2014-15 to 2018-19 ($m)
Cluster savings forecast - discrete years 2014-15 to 2018-19 ($m)
9
9
ERC Target
8
8
8
8
Gap
8
3
7
3
7
3
7
1
6
High Level
Plans
6
5
5
4
4
4
5
3
5
5
5
Internal
Budget Plans
3
4
2
2
1
1
Final Plans
0
1
1
1
1
2014-15
2015-16
2016-17
2017-18
2018-19
Plans finalised
Final Plans, Internal
Rebased
ERC target
2014-15
2015-16
2016-17
2017-18
2018-19
Total
1.
2.
3.
4.
5.
budget Plans1
5
6
6
6
6
28
4
7
8
8
8
36
0
Plans yet to be finalised
High Level Plans2
-
Cluster Net
Gap/(Buffer)3
(1)
1
3
3
3
8
One-off buffer4
Total yet be
finalised5
1
3
3
3
9
1
1
Total as a share of
Target (%)
14%
31%
31%
31%
25%
Final plans are savings where clusters have provided detail about the underlying strategy. Internal budget plans are used when
agencies advise that savings will be delivered but do not provide detailed underlying strategies e.g. general reduction to cost centres.
Identifies a target for savings initiatives which are still in the planning stage.
This is the difference between the latest expectations of all strategies against the ERC Target. This may leave a shortfall to Target
(“Gap”) or may exceed Target (“Buffer”).
Where plans finalised exceeds the ERC target. Note a buffer in one year cannot support a gap in another year without specific approval.
The difference between plans finalised and ERC target.
Figure 2: Major initiatives with savings at risk (by value)
Total savings:
2011-12 to 2018-19
($000)
Agency
Agency
A
Agency
B
Initiative performance
(slippage)/buffer1
Roadmap
Annual Leave
Savings
Efficiency
Dividend 1
RPM
Milestone
Traffic light2
Planned
savings
Latest
update
Total
Historic:
(2011-12
to 201314)
Current:
(2014-15
to 201819)
3,735
1,288
(2,447)
(18)
(2,429)
G
10,570
6,320
(4,250)
-
(4,250)
R
1) Impact Traffic Light
Rules* (Relative Variation)
2) Milestone Traffic Light Rules
>95%
90%-95%
<90%
1-14 days late
15-29 days late
>29 days late
Risk and
planned
mitigation by
Cluster
B Initiative has been
completed
*Impact Traffic Light Rules also include absolute settings, which may overrule the relative variation to ensure that all material
deviations are flagged.
Sensitive: NSW Cabinet
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7.5 Table 1: Cluster Initiatives for Whole of Government Savings
Cluster Savings Initiatives
Whole of Government Savings Measures - Monitoring Plan - Reporting to Expenditure Review Committee
Forecast Surplus/(Shortfall)
$0.0m
Cluster
Savings Category
Estimate %
Achieved
Rebased Yearly Savings Forecasts - 2014-15 to 2018-19
Savings values are
shown relative to
base year:
Rebased Planned Savings ($m, as uploaded to RPM)
2014-15
2015-16
2016-17
2017-18
2018-19
Total
31 July, 2015
Rebased Latest Updates ($m)
Risk
Rating
2013-14
As at:
Variance ($m)
2014-15
2015-16
2016-17
2017-18
2018-19
0
0
0
0
0
0
0
0
0
Total
2014-15
2015-16
2016-17
2017-18
2018-19
Total
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
H, M, L or B
Final Plans
1
2
3
4
Total - Final Plans
100%
100%
100%
100%
100%
Internal Budget Control Plans
5
6
7
Total - Internal Budget Control Plans
100%
100%
100%
100%
High Level Plans
8
9
10
11
Total - High Level Plans
100%
100%
100%
100%
100%
0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total - Plans in Progress
100%
0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Completed Plans
Final Plans
12
13
14
Total - Completed Final Plans
100%
100%
100%
100%
0
0
0
0
0
0
0
0
0
0
0
0
Internal Budget Control Plans
15
16
17
Total - Completed Internal budget Control Plans
100%
100%
100%
100%
Total - Completed Final Plans
Total - Completed Internal budget Control Plans
100%
100%
Total - All Completed Plans
100%
Overall Total Savings - Cluster
100%
Sensitive: NSW Cabinet
L
L
M
M
0
0
0
0
0
0
0
L
L
M
0
0.0
0.0
0.0
0.0
0
0
M
M
M
M
B
B
B
0
0
0
0
0
0
0
B
B
B
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CABINET-IN-CONFIDENCE
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7.6 UPDATE ON PROGRAM EVALUATION
Agency Name
Program Name
Program
Scale
Evaluation
Status
Expected Completion
Date
Risks in Meeting
Expected Completion
Date
Reporting mechanism
* Refer to the NSW Government Evaluation Framework for information
Program scale
Evaluation status
Tier 4 - Mandatory Evaluation
Not started
Tier 3 - Evaluation Expected
Evaluation being planned
Tier 2 - Agency discretion
Evaluation commenced
Tier 1 - Review
Evaluation reporting
Evaluation report completed
Enacting response
Sensitive: NSW Cabinet
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Reporting mechanism
Cabinet/Cabinet Committee
(specify)
Cluster Minister/Minister
Department/
Agency/Business Unit
10