JUSTICE MINISTERS ................................................................................................................................................................ 2
SECRETARY’S FOREWORD ................................................................................................................................................... 3
ABOUT US ................................................................................................................................................................................... 4
WHO WE ARE .............................................................................................................................................................................. 4
OUR FOCUS................................................................................................................................................................................. 4
WHAT WE DO.............................................................................................................................................................................. 4
KEY FACTS AND FIGURES 2013–14 ............................................................................................................................................. 4
ORGANISATIONAL CHART AS AT 30 JUNE 2014 .......................................................................................................................... 5
OUR DIVISIONS ........................................................................................................................................................................... 6
OUR REGIONAL SERVICE NETWORK .......................................................................................................................................... 8
OUTPUT PERFORMANCE ..................................................................................................................................................... 11
OVERVIEW ............................................................................................................................................................................... 12
OUTPUT: POLICING SERVICES ................................................................................................................................................... 12
OUTPUT: ENHANCING COMMUNITY SAFETY ............................................................................................................................. 14
OUTPUT: INFRINGEMENT AND ORDERS MANAGEMENT ............................................................................................................. 17
IMPROVING THE EFFICIENCY OF COURT PROCESSES............................................................................................. 20
OVERVIEW ............................................................................................................................................................................... 20
OUTPUT: COURT SERVICES ....................................................................................................................................................... 20
SUPPORTING THE RULE OF LAW ..................................................................................................................................... 24
OVERVIEW ............................................................................................................................................................................... 24
OUTPUT: ACCESS TO JUSTICE AND SUPPORT SERVICES ............................................................................................................. 24
OUTPUT: PUBLIC PROSECUTIONS .............................................................................................................................................. 28
PROTECTING INDIVIDUAL RIGHTS AND ENCOURAGING COMMUNITY PARTICIPATION ........................... 29
OVERVIEW ............................................................................................................................................................................... 29
OUTPUT: PROTECTING COMMUNITY RIGHTS ................................................................................................................................. 29
OUTPUT: PRIVACY REGULATION .............................................................................................................................................. 31
OUTPUT: STATE ELECTORAL ROLL AND ELECTIONS ................................................................................................................. 32
PROMOTING COMMUNITY SAFETY THROUGH EFFECTIVE MANAGEMENT OF PRISONERS AND
OFFENDERS AND PROVISION OF OPPORTUNITIES FOR REHABILITATION AND REPARATION ................. 32
OVERVIEW ............................................................................................................................................................................... 32
OUTPUT: PRISONER SUPERVISION AND SUPPORT ...................................................................................................................... 32
OUTPUT: COMMUNITY BASED OFFENDER SUPERVISION ............................................................................................................ 35
MINIMISING INJURY AND PROPERTY LOSS THROUGH A COORDINATED AND INTEGRATED
EMERGENCY RESPONSE ..................................................................................................................................................... 37
OVERVIEW ............................................................................................................................................................................... 37
OUTPUT: EMERGENCY MANAGEMENT CAPABILITY .................................................................................................................. 37
PROMOTING RESPONSIBLE INDUSTRY BEHAVIOUR AND AN INFORMED COMMUNITY THROUGH
EFFECTIVE REGULATION, EDUCATION, MONITORING AND ENFORCEMENT ..................................................... 41
OVERVIEW ............................................................................................................................................................................... 41
OUTPUT: PROMOTING AND PROTECTING CONSUMER INTERESTS .............................................................................................. 41
OUTPUT: GAMBLING AND LIQUOR REGULATION AND RACING INDUSTRY DEVELOPMENT................................................................ 43
PROMOTING AND MONITORING INTEGRITY WITHIN THE PUBLIC SECTOR ................................................... 47
OVERVIEW ............................................................................................................................................................................... 47
OUTPUT: ANTI-CORRUPTION AND PUBLIC SECTOR INTEGRITY ............................................................................................... 47
OUTPUT: FREEDOM OF INFORMATION COMMISSIONER ............................................................................................................ 48
FIVE-YEAR FINANCIAL SUMMARY AND REVIEW OF FINANCIAL CONDITIONS .............................................. 50
DISCLOSURE OF GRANTS AND OTHER TRANSFERS .................................................................................................. 51
Justice ministers
Dear ministers
Annual Report 2013–14
In accordance with the Financial Management Act 1994, I am pleased to present the Department of Justice Annual
Report for the year ended 30 June 2014.
Yours sincerely
Greg Wilson
Secretary
Department of Justice
September 2014
The Hon. Dr Denis Napthine MP
Premier
Minister for Racing
The Hon. Robert Clark MP
Attorney-General
The Hon. Edward O’Donohue MP
Minister for Corrections
Minister for Crime Prevention
Minister for Liquor and Gaming Regulation
The Hon. Kim Wells MP
Minister for Police and Emergency Services
Minister for Bushfire Response
The Hon. Heidi Victoria MP
Minister for Consumer Affairs
2
Secretary’s foreword
The 2013–14 Annual Report records another significant year for the department.
Across the board, the department has been managing significant reforms in areas as diverse as infrastructure upgrades;
better management of offenders on parole; emergency management; public sector integrity; business, gambling and
liquor regulation; and racing industry development.
Key highlights include:
•
51 Bills introduced to Parliament, representing just under half of Bills considered by Parliament. These include
significant bail, sentencing, family violence and Working with Children Check reforms, improvements to the civil justice
system, the Victoria Police Act 2013 and the Gambling Regulation Amendment (Pre-commitment) Act 2014
•
a large program of asset development, including the opening of 938 new prison beds, new police stations, courts and
emergency management facilities
•
recruitment of 655 new prison officers
•
implementation of the 23 recommendations from the Callinan Review of the parole system to ensure parole is only
granted when reoffending risk has been appropriately addressed
•
preparation for the establishment of Court Services Victoria on 1 July 2014 as the independent statutory agency
responsible for the provision of administrative facilities and services to the courts, the Victorian Civil and
Administrative Tribunal and the Judicial College of Victoria
•
piloting of a weekend remand court in Melbourne. This pilot is a partnership between the department, the Magistrates’
Court, Victoria Police and Victoria Legal Aid to reduce the numbers of people being held on remand
•
sustained efforts to improve the collection of unpaid fines, infringements and outstanding warrants
•
continuation of the important work of the Aboriginal Justice Agreement 3 to reduce Koori over-representation in the
criminal justice system
•
delivery of the Community Crime Prevention Program, including Reducing Violence Against Women and Children and
Koori Safety grants
•
preparation for the establishment of Emergency Management Victoria on 1 July 2014 as the over-arching body for of
all emergency preparation, response and recovery in Victoria
•
RentRight, a smartphone app that helps tenants understand their rights and responsibilities
•
racing track development grants.
An organisational restructure was also undertaken to consolidate policy functions under deputy secretaries and include
regional management within the senior executive team. This new structure is providing improved coordination, integration
and governance between policy and program design and regional service delivery.
The achievements outlined in the Annual Report have been made possible through the dedicated efforts of over 7,000
staff working in the department and over 90,000 volunteers who support our work, particularly as emergency
management volunteers and honorary justices. I would like to thank them for their contribution to the department’s
successful delivery of a wide range of justice initiatives.
Greg Wilson
Secretary
Department of Justice
September 2014
3
About us
Who we are
The Department of Justice leads the delivery of justice services in Victoria. The department’s overarching vision is for a
safe, just, innovative and thriving Victoria.
Our focus
The department’s focus is to provide:
•
•
•
•
•
safer communities
a responsive, efficient justice system
well-equipped emergency services
responsible, balanced regulation
excellence in service delivery.
What we do
The department provides justice-related services to the community and ensures the efficient and effective operation of
the justice system in Victoria. This is achieved through the oversight of eight ministerial portfolios:
•
•
•
•
•
•
•
•
Attorney-General
Bushfire Response
Consumer Affairs
Corrections
Crime Prevention
Liquor and Gaming Regulation
Police and Emergency Services
Racing.
The department has productive partnerships with more than 80 statutory authorities and offices, and the support of more
than 90,000 volunteers.
The department’s extensive service delivery responsibilities range from managing the Victorian prison system to
providing consumer information and enforcing court warrants. The department also manages the development of a range
of laws, develops and implements policy and regulation in areas across the portfolio (such as in gaming, liquor, racing
and emergency management) and aims to ensure that all elements of the justice system are working effectively.
The department delivers its services across eight regions throughout Victoria. There are 24 Justice Service Centres that
provide or assist in providing services through:
•
•
•
•
•
•
•
Community Correctional Services
Consumer Affairs Victoria
Dispute Settlement Centre of Victoria
Regional Aboriginal Justice Advisory Committees
Registry of Births, Deaths and Marriages
Sheriff’s Operations
Victims Support Services.
The Department of Justice also operates three mobile Justice Service Centre buses across all regions that ensure
services can be accessed by those living in rural and regional areas.
Key facts and figures 2013–14
Frontline services
Visits to www.justice.vic.gov.au
Visits to www.consumer.vic.gov.au
Smartphone app downloads
FireReady
RentRight
696,242
2,372,794
591,481
10,368
4
Clients assisted at Justice Service Centres (average monthly)
Kilometres travelled by mobile Justice Service Centres (Justice buses)
Calls to Victims of Crime Helpline
Number of victims assisted by the Victims Assistance and Counselling Program
Births, Deaths and Marriages: number of certificates issued
32,712
100,503
10,181
8,493
361,043
Policing and infringements
Warrants actioned
Infringement notices issued
964,043
3.06 million
Community safety
Square metres of graffiti removed
330,100
Working with Children Check applications processed
223,900
Incidents in which Emergency Alert used
Crime prevention grants administered
104
$5.78 million
Industry
Victorian Racing Industry Fund grants made
Victorian Racing Industry Fund grants made (number)
$9.52 million
133
Policy and regulatory activities
Number of Acts administered – Justice Portfolio
Number of Justice Portfolio Bills passed by parliament
Total residential tenancies bond transactions
204
35 (of 92 Bills)
419,135
Organisational chart as at 30 June 2014
5
Our divisions
This year the department modified its structure to put more emphasis on delivering integrated services to the community,
strengthening regulatory practice and enhancing collaboration across policy and program areas.
The department’s nine divisions are complemented by the Regional Service Network. The network was created this year
6
to bring the department’s eight service regions into four areas, each under the leadership of a Regional Executive
Director. The regions are described on pages 8–10.
The department’s peak committee—the Justice Senior Executive Group (JSEG)—is made up of the Secretary, the
deputy secretaries, five executive directors, the Chief Financial Officer, the Director of People and Culture and the
Commissioner for Corrections.
Civil Justice
The Civil Justice division provides policy advice and support for civil law matters (including human rights, native title and
public sector integrity matters) and courts and tribunal matters within the Attorney-General’s legislative program. It also
provides support to the Attorney-General as first law officer of the state, and oversees the operation of a number of
independent statutory agencies responsible to the Attorney-General. The division provides services through the Dispute
Settlement Centre of Victoria and the Registry of Births, Deaths and Marriages. It continues to advise the Attorney-General
on courts and judicial policy issues following the creation of Court Services Victoria on 1 July 2014.
Criminal Justice
The Criminal Justice division provides policy support and advice to the Attorney-General, Minister for Police and Emergency
Services and the Minister for Crime Prevention on the criminal justice system. It is responsible for community crime prevention
programs, the provision of services to victims of crime, support for Victoria’s honorary justices and the Working with Children
Check. It also oversees the delivery of Victoria’s infringements and road-safety camera systems and the Sheriff’s Office.
Corrections
The Corrections division ensures the safe and secure management of prisoners and individuals on Community Correction
Orders. It manages operations of Victoria’s 11 public prisons and one transition centre. It oversees contracts for the
management of two privately operated prisons and operates more than 50 Community Correctional Services locations
across the state. Justice Health sets the policy and standards for health care in prisons. It oversees the health care delivered
across the prison system and contract manages the public prisons’ health service providers.
Emergency Management
This division strengthens community safety by providing policy advice across the emergency management sector. It
advises on investment priorities and effective resource use to maintain and build the individual and combined capacity
and capabilities of Victoria’s emergency service agencies. It focuses on effective governance, interoperability and
building the capacity of professionals and volunteers to contribute to emergency management.
On 1 July 2014 the division transitioned to Emergency Management Victoria, under the joint leadership of the Emergency
Management Commissioner and Emergency Management Victoria’s chief executive, who remains a Deputy Secretary of
the department. The Office of the Emergency Services Commissioner transitioned to the Inspector-General for
Emergency Management, which is now located in the department’s Regulation division.
Regulation
This division combines consumer protection regulation with assurance functions, including the Office of Correctional
Services Review and the Inspector-General for Emergency Management. Business units in the division will share best
practice regulatory, monitoring and review approaches, systems and resources to provide for improved system outcomes
in consumer protection, correctional services and emergency management.
Liquor, Gaming and Racing
This division provides strategic policy advice and support to the Minister for Liquor and Gaming Regulation and the Minister
for Racing on liquor, gambling and racing portfolio issues. The division develops and implements legislation and regulation
and provides advice on current and emerging issues affecting the portfolios. It also manages selected racing industry
initiatives and racing related licensing and appeal matters and provides secretarial and policy support to the Responsible
Gambling Ministerial Advisory Council, the Liquor Control Advisory Council and the Live Music Roundtable. The division
works closely with the independent Victorian Commission for Gambling and Liquor Regulation and the Victorian
Responsible Gambling Foundation.
Service Strategy Reform
The Service Strategy Reform division delivers enhanced economic and data modelling and analysis, supports regions in
delivering place-based initiatives, drives further integration of services, tackles over-representation of Koories in the justice
system, and leads and manages divisional, regional and whole-of-Government transformation and reform projects.
Corporate Governance and Infrastructure
This division oversees the key public accountability requirements of the department including finance, procurement,
performance reporting, risk and audit. It also manages the governance of the portfolio’s major infrastructure and information
and communications technology projects.
People and Stakeholders
This division is responsible for leadership on workforce matters including human resource policy and strategy, recruitment,
development and retention of staff, and occupational health and safety management. Its functions include coordination of
cabinet and the parliamentary processes, Executive Council appointments and advice, Freedom of Information, information
privacy, records management policy and administration of the department’s electronic records. The division also provides
7
communication advice and manages community education and awareness campaigns.
Our Regional Service Network
The Regional Service Network1 comprises four areas, covering the department’s eight operational regions across
Victoria. Through the network, local leadership in service delivery is strengthened and regions have a greater role in
departmental governance and priority-setting.
Each regional service area covers two regions and is headed by an executive director, supported by a regional director.
Central Area
North Metropolitan region
This region includes Melbourne’s central business district as well as its northern suburbs of Broadmeadows, Carlton,
Collingwood, Greensborough, Heidelberg and Reservoir.
The region has a population of approximately 990,100 across eight local government areas including the innermetropolitan areas of Yarra, Moreland, Banyule and Darebin and the outer-metropolitan growth areas of Hume and
Whittlesea and the semi-rural area of Nillumbik. Nearly one-third of residents were born overseas and one-third speak a
language other than English at home. Approximately 7,000 people (0.7 per cent of the population) identify as being of
Aboriginal or Torres Strait Islander background.
Justice Service Centres are located at Broadmeadows and Carlton. Community Correctional Services reporting locations
include Greensborough, Heidelberg, Reservoir and the Neighbourhood Justice Centre in Collingwood. The region also
operates the maximum-security Melbourne Assessment Prison and the minimum-security Judy Lazarus Transition
Centre.
West Metropolitan region
1
All demographic figures in this section come from: ABS, 3238.0.55.001 Estimates of Aboriginal and Torres Strait Islander Australians, June 2011 (published
30/08/2013) and ABS, 3218.0 Regional Population Growth, Australia, 2012-13 (published 3/04/2014). Population figures have been rounded to the nearest 100.
8
Located in Melbourne’s west this region includes the suburbs of Essendon, Footscray, Melton, Sunshine and Werribee.
The region has a population of approximately 740,800 across six local government areas: the inner-metropolitan
areas of Maribyrnong, Moonee Valley and Hobsons Bay and the outer-metropolitan areas of Brimbank, Melton and
Wyndham. Thirty-seven per cent of residents were born overseas and 39 per cent speak a language other than
English at home. Approximately 4,700 people (0.6 per cent of the population) identify as being of Aboriginal or
Torres Strait Islander background.
A Justice Service Centre is located in Werribee with Community Correctional Services reporting locations at
Melton and Sunshine. The region has three maximum-security prisons including the state-operated Dame Phyllis
Frost Centre for women, the Metropolitan Remand Centre and the privately operated Port Phillip Prison.
Development of a new Public Private Partnership 1,000-bed medium-security male prison is underway at
Ravenhall.
West Area
Barwon South-West region
Located in Victoria’s south-west this region includes the major regional centres of Geelong, Portland and Warrnambool.
The region has a population of approximately 363,800 across nine local government areas: Colac-Otway,
Corangamite, Glenelg, Moyne, Greater Geelong, Queenscliff, Southern Grampians, Surf Coast and Warrnambool.
Ten per cent of the region’s residents were born overseas and nearly seven per cent speak a language other than
English at home. Approximately 4,300 people (1.2 per cent of the population) identify as being of Aboriginal or
Torres Strait Islander background.
Justice Service Centres are located at Geelong and Warrnambool with Community Correctional Services reporting
locations located at Hamilton, Portland and Colac. The region operates two of the state’s prisons, the maximumsecurity Barwon Prison and the medium-security Marngoneet Correctional Centre.
Grampians region
Located in Victoria’s mid-west this region includes the major regional centres of Ararat, Ballarat and Horsham. The
region has a population of approximately 221,000 across 11 local government areas: Ararat, Ballarat, Golden
Plains, Hepburn, Hindmarsh, Horsham, Moorabool, Northern Grampians, Pyrenees, West Wimmera and
Yarriambiack. Approximately eight per cent of residents were born overseas and approximately four per cent speak a
language other than English at home. Approximately 3,000 people (1.3 per cent of the population) identify as being
of Aboriginal or Torres Strait Islander background.
Justice Service Centres are located at Ballarat and Horsham. Community Correctional Services reporting locations are
also located at Stawell, Ararat and St Arnaud. The region also has two prisons, the medium-security Hopkins
Correctional Centre and the minimum-security Langi Kal Kal prison.
South Area
South-East Metropolitan region
This region covers a large area from the inner city to the Mornington Peninsula and includes suburbs as diverse as
Box Hill, Dandenong, Dromana, Frankston, Lilydale, Moorabbin, Port Melbourne, Ringwood and St Kilda.
The region is the most heavily populated of all justice regions, with approximately 2.35 million people. The region delivers
justice services across 17 local government areas: Bayside, Boroondara, Cardinia, Casey, Port Phillip, Frankston, Glen
Eira, Greater Dandenong, Kingston, Knox, Manningham, Maroondah, Monash, Mornington, Yarra Ranges, Stonnington
and Whitehorse. Almost one-third of residents were born overseas and 25 per cent speak a language other than English
at home. Approximately 10,700 people (0.5 per cent of the population) identify as being of Aboriginal or Torres Strait
Islander background.
Justice Service Centres are located in Dandenong, Box Hill, Frankston, Moorabbin, Lilydale and Ringwood.
Gippsland region
Located in Victoria’s south-east, this region includes the major centres of Bairnsdale, Morwell, Sale and Traralgon.
The region has a population of approximately 255,100. It is responsible for the delivery of services across six local
government areas: Bass Coast, Baw Baw, East Gippsland, Latrobe City, South Gippsland and Wellington. Approximately
13 per cent of residents were born overseas and five per cent speak a language other than English at home.
Approximately 4,700 people (1.8 per cent of the population) identify as being of Aboriginal or Torres Strait Islander
background.
Justice Service Centres are located in Morwell, Bairnsdale, Sale and Korumburra, with co-located services in other
towns. Wulgunggo Ngalu Learning Place in Won Wron supports up to 18 Koori men undertaking Community
Correction Orders. The region also has the Fulham Correctional Centre, a privately operated medium-security prison.
North Area
9
Loddon Mallee region
Located in Victoria’s north-west this region includes the major centres of Bendigo, Swan Hill and Mildura. Geographically
it is the largest of the eight operational regions. The region has a population of approximately 320,100 people.
The region delivers Justice services across ten local government areas: Greater Bendigo, Central Goldfields, Macedon
Ranges, Mount Alexander and Loddon in the south of the region; and Buloke, Campaspe, Gannawarra, Swan Hill and
Mildura in the north. Almost 10 per cent of residents were born overseas and five per cent speak a language other than
English at home. Approximately 7,200 people (2.3 per cent of the population) identify as being of Aboriginal or Torres
Strait Islander background.
The region provides services from Justice Service Centres in Bendigo, Mildura and Swan Hill and at Community
Correctional Services reporting locations in Kyneton, Kerang, Robinvale, Castlemaine, Maryborough, Echuca and
Ouyen. The region is home to the minimum-security Tarrengower Prison and Loddon Prison (mixed restricted
minimum and medium security).
Hume region
The Hume region is located in Victoria’s north-east and includes the major centres of Wangaratta, Wodonga and
Shepparton.
The region has a population of approximately 260,100 across 12 local government areas: Alpine, Benalla, Greater
Shepparton, Indigo, Mansfield, Mitchell, Moira, Murrindindi, Strathbogie, Towong, Wangaratta and Wodonga. About
11 per cent of residents were born overseas and seven per cent speak a language other than English at home.
Approximately 5,700 people (2.1 per cent of the population) identify as being of Aboriginal or Torres Strait Islander
background.
Hume delivers a range of services through Justice Service Centres at Wangaratta, Shepparton, Seymour and Wodonga,
and at Community Correctional Services reporting locations in Myrtleford, Benalla, Cobram, Seymour, Mansfield and
Corryong. The region has two minimum-security prisons, Dhurringile Prison and the Beechworth Correctional Centre.
10
Output performance
This section reports on the delivery of the department’s strategic priorities, including details of key projects, achievements
and performance against costs and targets specified for the department in the 2013–14 Victorian Budget.
For budget purposes, outputs are defined as those goods and services provided to government by the department, its
agencies and statutory bodies.
The department’s output reporting outlines the nature and purpose of each of the output groups and their contribution to justice
policy objectives. The tables report actual performance against the budget estimates and targets for each output and key
performance indicator.
Corresponding data for the two previous years are included, where available, for the purpose of comparison. The
symbol ‘nm’ is used to indicate where a new measure has been introduced for which performance has not
previously been reported. Where appropriate, commentary is provided on the factors influencing performance over
the past three years.
A specific explanation is provided for significant variations between the 2013–14 targets and actuals, particularly where
performance was five per cent more or less than the target. Explanation is also included where performance measures
have changed.
11
Improving community safety through policing, law enforcement and prevention activities
Output group
• Policing
• Infringements and enhancing community safety
Output
• Policing services
• Enhancing community safety
• Infringement and orders management
Overview
The department aims to provide a safe and secure environment for the community.
It does this through close collaboration with Victoria Police for the provision of policing and law enforcement services that
prevent, detect, investigate and prosecute crime, and promote safer road-user behaviour. This work is supported by the
department through the enforcement of judicial fines, court orders and warrants and processing of traffic and other
infringement notices.
Crime prevention activities support communities to develop and implement locally tailored community safety initiatives.
The Working with Children Check aims to reduce the risk of sexual and physical abuse of children by allowing only adults
who pass the Working with Children Check to work with children.
Output: Policing services
Victoria Police addresses crime through law enforcement, judicial support, community assistance, guidance and
leadership.
Key initiatives
Increased policing of family violence
The reporting of family violence has risen steadily over the past decade due to improved responses to this issue across
the criminal justice system and greater community awareness.
Family violence continues to be a major focus for Victoria Police. Family Violence Liaison Officers are part of 30 family
violence teams in place at 24-hour police stations across the state. All Victoria Police officers adhere to a Code of
Practice for the Investigation of Family Violence to improve victim safety and strengthen perpetrator accountability.
Legislation that created indictable offences for serious or persistent breaches of intervention orders has had a strong
impact with 1,693 charges laid in a 13-month period.
Police and Protective Services Officers recruitment
Throughout 2013–14, Victoria Police made significant progress in the recruitment of additional police and Protective
Services Officers (PSOs). June 2014 saw the largest number of police recruits and Protective Service Officers in training
at any single time in the history of the Victoria Police Academy.
PSOs are deployed on the rail network from 6pm until the last service, to target crime, violence and anti-social behaviour.
They have powers to arrest and detain, to search for and seize alcohol or weapons, to issue on-the-spot fines and to
make ‘move-on’ orders. Survey results reported in October 2013 showed that 94 per cent of night-time train travellers
were aware of the presence of PSOs and 86 per cent believed the officers made travel safer.
The department played a key coordinating role with Victoria Police and Public Transport Victoria in delivering on this
major recruitment, deployment and infrastructure construction program.
Improving police powers to address
organised crime
New laws targeting serious organised crime and criminal gangs came into effect during the year. The Fortification
Removal Act 2013 commenced on 6 October 2013. It allows police to ask a court to order the removal of fortifications
from premises such as motorcycle gang clubhouses. The first club to be the subject of an application removed its
fortifications without being directed to do so. Under consent orders reached in the Magistrates’ Court, the club modified a
steel gate and removed CCTV cameras, bollards and metal window sheets.
The department also supported the development of the Criminal Organisations Control and Other Acts Amendment Bill
2014 which was passed by the parliament and enacted in August 2014. The Act includes amendements to improve the
process for applying to the Supreme Court for declarations against criminal organisations and simplifies the test that is
applied by the Supreme Court. Once the court makes such a declaration, it can make control orders banning the
organisation, banning association between gang members and prohibiting the display of gang patches and insignia.
12
The Act also allows courts to order the comprehensive forfeiture of the property of serious drug offenders. Under the
scheme, a large-scale producer or trafficker of drugs can be declared a ‘serious drug offender’ whose assets could be
confiscated without the Director of Public Prosecutions having to show evidence that they were the direct proceeds of
crime. It places the onus on the convicted person to show they had lawfully acquired the assets.
New governance legislation for Victoria Police
The department worked closely with Victoria Police to replace the governance legislation under which Victoria Police
operates. The Victoria Police Act 2013, which passed in December 2013 and commences 1 July 2014, largely replaces
the Police Regulation Act 1958. The new Act creates a modern legislative framework for the administration of policing in
Victoria. In particular, the Act:
•
•
•
•
clarifies the relationship between Victoria Police and Government
introduces a clearer and more efficient scheme for state liability for torts committed by police and Protective Service
Officers
introduces a broader drug and alcohol testing scheme for police officers, Protective Service Officers and police
employees
modernises the laws relating to police administration offences.
Facilities development
In 2013–14, work continued on a number of new joint facilities for police, emergency and community services including:
•
•
•
construction of a joint facility for Victoria Police and the Victoria State Emergency Service (VicSES) in Waurn Ponds,
south of Geelong is well progressed. The facility is due for completion in 2014
preliminary planning for the development of a new police station and emergency services hub in Ballarat West
commenced. Work is underway to acquire a site for this complex
progressing the new principal Multi-disciplinary Centre at Monash, due for completion in 2014, to improve the
response to sexual assault. Multi-disciplinary Centres are also due for completion in Gippsland and Bendigo in mid
2015.
Work also commenced on the new Operational Tactics and Safety Training complex at Craigieburn, located adjacent to
the Victoria Emergency Management Training Centre, and due for completion in early 2015.
Victoria Police also significantly progressed upgrades to more than 100 police stations throughout Victoria to accommodate
the additional police and Protective Service Officers.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
2011–12
actual Notes
Criminal history checks conducted to contribute to community
safety
number
490,000
492,635
481,945
557,401
Community calls for assistance to which a Victoria Police
response is dispatched
number
800,000
811,619
884,380
811, 930
Crimes against the person – excluding family violence related
crime (rate per 100,000 population)
number
≤653.8
603.5
nm
nm
Crimes against property – excluding family violence related
crime (rate per 100,000 population)
number
≤4,667.1
4,582.1
nm
nm
Crimes against the person – family violence related crime
(rate per 100,000 population)
number
≥323.0
431.0
nm
nm
Crimes against property – family violence related crime
(rate per 100,000 population)
number
≥95.2
139.3
nm
nm
Number of alcohol screening tests conducted
number
1,100,000 1,150,524
1,098,831
nm
Number of prohibited drug screening tests conducted
number
23,245
nm
Performance measures
Quantity
40,000
42,780
1
13
Quality
Proportion of community satisfied with policing services
(general satisfaction)
per cent
70.0
76.9
78.2
75.9
Proportion of the community who have confidence in police
(an integrity indicator)
per cent
83.0
86.1
86.0
85.1
Proportion of drivers tested who comply with alcohol limits
per cent
99.5
99.8
99.8
99.8
Proportion of drivers tested who comply with posted speed limits per cent
99.5
99.9
99.9
99.8
Proportion of drivers tested who return clear result for
prohibited drugs
per cent
94.0
92.2
96.2
96.0
Proportion of successful prosecution outcomes
per cent
92.0
92.7
92.3
93.0
Victoria Police regions with plans, procedures and resources
in place for the bushfire season
per cent
100.0
100.0
nm
nm
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Proportion of crimes against the person resolved
within 30 days
per cent
36.0
37.5
36.5
55.0
Proportion of property crime resolved within 30 days
per cent
19.0
20.7
19.3
18.8
$ million
2,282.7
2,291.0
2,144.3
2,092.9
Performance measures continued
2
2011–12
actual Notes
Timeliness
Cost
Total output cost
≤ Less than or equal to
≥ Greater than or equal to
Commentary on performance
1. The actual is above target due to an increased availability of resources and allocations of drug testing equipment and enforcement strategies
to the general booze bus fleet.
2. The actual is above target due to a general increase at Police Service Area level across metropolitan and regional Victoria. Victoria Police
works to increase community satisfaction with police services by developing service strategies tailored to the needs of local communities, which
contributes to the increased result of this measure.
Output: Enhancing community safety
This output delivers programs that focus on community safety activities.
Key initiatives
Managing high-risk cases of family violence
An important aspect of preventing family violence is identifying women and children at high risk. Risk Assessment and
Management Panels will be rolled out throughout Victoria in 2014–15 following successful pilot projects in Geelong and
the City of Hume. Each panel has a full-time worker who provides practical support to families at risk by coordinating
assistance from Victoria Police, Corrections Victoria, the Department of Human Services and other agencies.
Victoria Police improved response times in relation to both Family Violence Intervention Orders and Family Violence
Safety Notices following a new arrangement with the Magistrates’ Court of Victoria enabling the electronic transmission of
applications for orders and determinations.
Reducing violence against women and their children
14
Throughout the year the department continued to support the delivery of 12 projects under the Reducing Violence against
Women and their Children grants program, which focuses on primary prevention and early intervention initiatives.
These programs seek to prevent violence before it occurs, by tackling the attitudes and behaviour that lead to violence
against women and children. One-off grants of up to $600,000 over three years were provided to eight regional projects
through the Community Crime Prevention Program. Four Koori Safety grants totalling $2.4 million over three years were
made to enable Aboriginal organisations in Shepparton, Lakes Entrance, Mildura and northern metropolitan Melbourne to
provide innovative community based projects aimed at preventing violence.
Intervening early to educate young people
The Choices for Boys program educates 15 to 17-year-old boys about the dangers of violence, carrying weapons and
poor decision-making. The program, using professional boxers as role models, challenges young males to take
responsibility for their decisions and think about the consequences of risky behaviour. In 2013–14, 35 sessions ran in
secondary schools, reaching about 540 boys.
Koori Choices is a version of the program designed to engage Koori boys of the same age. Four sessions were delivered
throughout the year, engaging 60 boys.
Eleven sessions of the Live No Fear program targeting 15 to 17-year-old girls were held with a total of 174 girls
participating. The program focuses on increasing awareness and taking greater responsibility for behaviour relating to
violence, misuse of alcohol and bullying.
Helping communities address local crime
As part of the Victorian Government’s Community Crime Prevention Program, the department continued to help local
communities across the state implement projects to enhance community safety. In 2013–14 it allocated $5.78 million in
grants to local councils and community groups to implement crime prevention initiatives under the Community Crime
Prevention Program. This included funding for practical crime prevention projects such as security improvements for local
community facilities, crime prevention education and awareness programs, safer urban design initiatives, lighting and
CCTV, and graffiti prevention and removal projects.
Aboriginal Justice Agreement
The third phase of the Victorian Aboriginal Justice Agreement (AJA3) progressed during the year. This formal agreement
between the Victorian Government and the Koori community responds to the Victorian Government’s generation-long
commitment to work towards closing the gap—addressing the over-representation of Koori people in the criminal justice
system. The AJA3 Action Plans spell out 82 actions to be taken from 2013 to 2018. These plans were developed in
partnership with the Koori community. The department’s nine Regional Aboriginal Justice Advisory Committees consulted
with their local stakeholders to understand how best to deliver programs tailored to the needs of local communities.
A new initiative this year was the funding of four family places at the Odyssey House residential rehabilitation centre
specifically to divert Koori women from remand. Complementary funding has also been provided for the Dame Phyllis
Frost Centre to adopt cultural plans for Koori residents and engage a bail support worker and a senior Koori worker.
Previous actions successfully expanded in this period included:
•
•
•
•
the creation of a Koori County Court in Melbourne
the creation of Koori Children’s Courts in Shepparton and Swan Hill
the expansion of the Local Justice Worker program from nine to 13 locations, which helps Aboriginal clients deal with
fines and comply with court orders
the launch of Koori Family Violence Protocols in Ballarat in October 2013 and in Darebin in November 2013. The
protocols are supported by locally relevant cultural awareness training for members of Victoria Police, who work
closely with an Aboriginal Community Liaison Officer to respond appropriately to violence within Koori families.
Case Study: Banksia Gardens
Tangible improvements to community safety at Banksia Gardens, a public housing estate in Broadmeadows, have
been delivered through two local crime prevention initiatives.
The region collaborated with a range of government agencies and supervised more than 1,200 hours of work at the
estate by offenders on Community Correction Orders. Offenders improved the amenity of the estate by collecting
rubbish and tending a community garden to grow food for residents.
This year, the Minister for Crime Prevention provided $40,000 to Banksia Gardens Community Services for Good
People Act Now, a crime prevention initiative to address gender inequality and the social causes of violence. As part
of the project, a youth leaders group has been set up to develop presentations for schools and community
organisations and to come up with strategies for how residents can safely respond to violence against women. The
project has also developed local messages to address gender inequality on social media.
The Good People Act Now program and the North Metropolitan region’s work has paid dividends. Banksia Gardens
15
Estate residents are now far more active in approaching authorities with their concerns about safety.
16
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Number of Working with Children Checks processed
number
(’000)
200–250
223.9
253.7
180.9
Square metres of graffiti removed through the Graffiti
Removal Program
number
(’000)
246
330.1
363.8
nm
Crime prevention initiatives established to support the Koori
community
number
35
35.7
35
35
Community Crime Prevention grant payments made against
completion of milestones in funding agreement
per cent
100.0
100.0*
100.0
nm
Issuing of Working with Children Check assessments in
accordance with the Working with Children Act 2005
per cent
100.0
100.0*
100.0
100.0
$ million
37.8
45.4
47.3
37.5
Performance measures
2011–12
actual Notes
Quantity
1
Quality
Cost
Total output cost
2
* The 2013–14 actual is an annual average over the reporting year.
Commentary on performance
1. The actual is above target due to a lower than forecast number of days lost to inclement weather, and improved efficiency.
2. The actual expenditure is above target to meet demand for the Working with Children Check (WWCC), which has significantly exceeded
original projections.
Case study: Bulldogs partnership sets goals
Nallei Jerring (meaning join and unite in the Wurundjeri language) is a partnership between the Western Bulldogs
Football Club and a range of agencies supporting the Victorian Government’s Aboriginal Education Strategy. The
local Regional Aboriginal Justice Advisory Committee (RAJAC) has embraced the program as a way of reinforcing
the value to all children of staying in school and setting goals. Nine RAJACs across the state promote Koori justice
initiatives.
In a five-month pilot program in 2013, the first 30 Koori boys and girls went through a series of workshops exploring
football, education and the importance of health and teamwork. Building on this success, the 2014 workshops
kicked off in April with a trip to the You Yangs—an opportunity for the youngsters to connect to country and explore
their Aboriginal culture and identity.
The AFL’s Indigenous round has become an annual highlight and the Bulldogs’ three Aboriginal players—Brett
Goodes, Liam Jones and Koby Stevens—are committed ambassadors for the program, providing mentoring to
participants in workshops at Whitten Oval and Etihad Stadium.
Concurrent sessions provide parents with information on how they can support their children in school, especially
through literacy and writing. Writing is a big part of the program: the youngsters are encouraged to write ‘My Footy
Story’ and ‘My Family Story’.
An evaluation of the program’s first year showed there was a clear need and significant ongoing demand in
Melbourne’s western region to support Koori youth to engage and achieve in education.
Output: Infringement and orders management
17
This output relates to the management of traffic infringement notices, the confiscation of assets obtained through criminal
activity and enforcement action by the Sheriff’s Office.
Key initiatives
Fines reform
This year the department developed policy and legislation for a major fines reform package to overhaul the current
enforcement system and introduce a new model for the collection and enforcement of legal debt in Victoria.
The reforms will modernise multiple systems in which differing rules, processes and information technology platforms
present challenges for those wanting to pay fines.
The department is advanced in its preparations for Fines Victoria, a single point of contact for paying or dealing with
fines. Other reforms to be introduced include the introduction of a single account for the payment of fines and quicker
action against those who fail to pay.
People facing acute financial hardship and struggling to pay fines and penalties will be provided with more options to deal
with fines (such as Work and Development Permits) and the underlying causes of offending.
Road safety
Victoria’s Road Safety Strategy 2012–22 has the target of reducing road deaths and serious injuries by more than 30 per
cent. The department plays a key role in this effort by providing policy, legislative and enforcement support to its road
safety partners, Victoria Police, VicRoads and the Transport Accident Commission.
In 2013–14 more than 3.06 million infringement notices were issued. This was more than the department’s target of
between 2.8 and 3 million infringements for the year. This growth was largely a result of increased traffic volume but also
included the first full year of enforcement by road-safety cameras in new 40 km/h zones.
Road-safety cameras are a vital tool in managing driver behaviour. During a period when cameras on Peninsula Link
were tested, 467 drivers were found to be travelling at more than 125 km/h and six were driving at more than 145 km/h.
In September 2013, users of Peninsula Link were given a 14-day grace period before road-safety cameras went live. Six
road-safety camera sites and 18 cameras are now operational.
The 2013 Victorian road toll included 36 pedestrian fatalities. The activation of 40 km/h speed limit zones around sites
with high pedestrian concentrations, namely strip shopping zones and schools, forms a part of Victoria’s Road Safety
Strategy and vision for zero injuries and deaths on our roads.
Project Nexter
In 2013–14, the department ran Project Nexter to target approximately 450,000 people with outstanding warrants. The
project collected more than $36 million from unpaid fines and brought almost $35 million more through payment plans.
Joint operations between sheriff’s officers, Victoria Police, Federal Police and the Taxi Services Commission provided a
high level of visibility for these agencies and enhanced community understanding of their roles and powers. Road block
operations used Automatic Number Plate Recognition technology, enabling officers to verify vehicle registrations, the
status of the vehicle owner’s drivers licence and whether or not there were any outstanding warrants.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Warrants actioned
number
900,000
964,043
1,110,586
871,134
Infringement notices processed
number
(million)
2.8–3.0
3.06
3.52
2.85
per cent
93.0
96.25*
95.0
95.3
Clearance of infringements within 180 days
per cent
75.0
74.3*
76.1
77.3
Assets converted within 90 day conversion cycle
per cent
85.0
97.2*
88.6
86.6
Performance measures
2011–12
actual Notes
Quantity
1
Quality
Prosecutable images
Timeliness
2
18
Performance measures
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
$ million
214.9
180.3
187.7
2011–12
actual Notes
Cost
Total output cost
177.5
3
* The 2013–14 actual is an annual average over the reporting year.
Commentary on performance
1. The actual is above target due to improved business processes, enhanced operational efficiencies and targeted enforcement activity.
2. The actual is above target in part due to the implementation of Property and Laboratory Management (PALM) system, which has facilitated
enhanced reporting and property management.
3. The actual expenditure is lower than the target due to implementation delays to the Infringement Management and Enforcement Services
system build. Funding has been recashflowed into the future based on revised business requirements.
19
Improving the efficiency of court processes
Output group
• Court services
Output
• Court services
Overview
This output group delivered support to the state’s judiciary by maintaining the administrative operations of the system of
courts and statutory tribunals and providing appropriate civil dispute resolution mechanisms. From 2014-15, these
services are part of a separate appropriation for Courts, following the creation of Court Services Victoria.
Output: Court services
This output included the Supreme Court of Victoria, County Court of Victoria, Magistrates’ Court of Victoria, Children’s
Court of Victoria, Coroners Court of Victoria and the Victorian Civil and Administrative Tribunal (VCAT).
Key initiatives
Transition to Court Services Victoria
The Court Services Victoria Act 2014 was passed in February 2014 to establish Court Services Victoria, which will
provide or arrange for the provision of the administrative facilities and services necessary for the performance of the
judicial, quasi-judicial and administrative functions of the courts, VCAT and Judicial College of Victoria (JCV).
Court Services Victoria is independent of departmental or ministerial control. Its governing body is the Courts Council,
chaired by the Chief Justice of the Supreme Court and comprising the heads of each court jurisdiction and up to two coopted non-judicial members. The individual courts, VCAT and the Judicial College of Victoria remain separate entities.
Their governing councils, internal arrangements and rule-making responsibilities remain unchanged.
The department undertook considerable work throughout 2013–14 to establish Court Services Victoria and ensure the
transition of departmental operations to the new body. It will continue to work closely with Court Services Victoria, and
consult courts and VCAT on legislation and other relevant policy matters.
Court Services Victoria began operation on 1 July 2014.
Magistrates’ Court of Victoria initiatives
The Melbourne Magistrates’ Court piloted weekend sittings to manage demand in its criminal division. The weekend
sittings have enabled those remanded in custody to come before the court at the earliest opportunity for bail applications
and, in some instances, to finalise matters, making another court appearance unnecessary. The court has worked closely
with Victoria Police, Victoria Legal Aid and Corrections Victoria on this joint effort to reduce pressure within the criminal
justice system.
The department, through Corrections Victoria, has worked closely with the Magistrates’ Court of Victoria to ensure that
tele-court facilities are used wherever possible to reduce unnecessary prisoner movement and increase the efficiency of
the court.
Strengthening Koori Courts
In 2013–14, Koori Children’s Courts were launched in Swan Hill in September 2013 and Shepparton, the home to
Victoria’s first Koori Court, in October 2013. To appear before an adult Koori Court for sentencing, the accused must
plead guilty to an offence, however, the Koori Children’s Court may sentence a child who has pleaded guilty or been
found guilty.
In Morwell in the Latrobe Valley, the Koori Children’s Court began work with the Department of Education and Early
Childhood Development in response to the number of Koori youth attending the Koori Children’s Court. They sought to
expand education pathways for young Koories who come into contact with the justice system and to ensure active
support for Koori youth throughout the court process.
Koori Courts for adults continued to sit regularly throughout the year, in Bairnsdale, Broadmeadows, Latrobe Valley,
Mildura, Shepparton, Swan Hill and Warrnambool (on circuit to Portland and Hamilton). Koori Children’s Courts sat in
each of these locations except Broadmeadows, which was covered by the court sitting in Melbourne. In 2013–14, more
than 60 Elders and Respected Persons involved in Koori Court processes throughout Victoria were provided with training
in mental health awareness.
Court responses to family violence
Tougher laws, stronger policing and increased community awareness have led to a significant growth in the reporting of
family violence and to applications for Family Violence Intervention Orders (FVIOs) in the Magistrates’ Court of Victoria.
20
In 2013–14:
•
•
the Magistrates’ Court, in partnership with Victoria Police, created an electronic interface for sharing information
relating to FVIOs. Stage one of this interface provides police with intervention order information from the court at the
earliest opportunity.
in addition to the Family Violence Court division of the Ballarat and Heidelberg Magistrates Court, two additional
Magistrates’ Courts (Frankston and Moorabbin) now have capacity to issue counselling orders so that male
respondents can be mandated to participate in a men’s behaviour change program.
Ensuring the legal system is child focused
The Children, Youth and Families Amendment Act 2013 commenced in September 2013 to make the legal system more
child focused.
The legislation implements reforms announced in the Directions Paper, Victoria’s Vulnerable Children—Our Shared
Responsibility, in response to the Protecting Victoria’s Vulnerable Children Inquiry tabled in parliament in 2012. The
changes remove the requirement for children to attend court unless they wish to do so or if the court considers it
necessary. Where a child chooses not to attend court, child protection workers or delegated case managers will continue
to facilitate the child’s participation in decision making and arrangements will be made for the child to give instructions to
a lawyer away from the court building where necessary. Where children do attend court, less adversarial trial principles
will apply.
The Act also empowers the Family Division of the Children’s Court to hear intervention order matters involving adults
where a related child protection proceeding is taking place in the Family Division. This will allow one court to oversee
legal proceedings, ensure consistency between orders and reach decisions based on the whole picture of the family
circumstances. The reforms include a range of technical amendments.
Vexatious Proceedings Act 2014
The department supported the development of legislation to prevent and manage vexatious litigation in Victorian courts
and tribunals. The Vexatious Proceedings Act 2014, due to commence in October 2014, allows specified courts and
VCAT to make litigation restraint orders, which are graduated to increase in scope in accordance with a person’s litigation
history and pattern of vexatious behaviour. The Act aligns with the Family Violence Protection Act 2008 and the Personal
Safety Intervention Orders Act 2010 to provide a single framework for managing vexatious litigants in all proceedings in
Victoria.
Civil procedure reforms: discovery and disclosure
The disclosure of documents in civil cases is often the most expensive part of a proceeding. In large cases, costs
frequently run into millions of dollars. Part 2 of the Justice Legislation Amendment (Discovery, Disclosure and Other
Matters) Act 2014 which commenced in May 2014 amended the Civil Procedure Act 2010 to grant the courts further case
management powers in relation to discovery and disclosure. The new measures strengthen the courts’ powers to narrow
discovery to the key issues through such measures as agreed statements of the issues in dispute, and disclosure of how
the parties’ document management systems work.
Courts and Other Justice Legislation Amendment
Act 2013
The Courts and Other Justice Legislation Amendment Act 2013, which commenced in November 2013, maintains the
legislative basis for the Neighbourhood Justice Centre in Collingwood and removes certain eligibility restrictions for the
Assessment and Referral Court (ARC) of the Magistrates’ Court, which is established to hear cases where an accused
person has a mental illness and/or a cognitive impairment. The changes give ARC list magistrates greater flexibility to
determine suitable candidates for the list.
The Act also includes amendments to:
•
•
•
enhance safety within court premises by providing a more functional definition of court premises in the Court Security
Act 1980
help prevent certain unmeritorious proceedings by requiring leave to appeal in all statutory demand matters in the
Supreme Court
broaden representation on the Legal Costs Committee.
Greater court and tribunal flexibility
Legislation introduced into parliament in June 2013 contains proposals to provide specific courts and VCAT with greater
administrative and operational flexibility. The Courts Legislation Miscellaneous Amendments Bill 2014:
•
•
•
enables the Supreme Court to introduce reforms to civil appeals to allow it to determine at an earlier stage what
matters merit a full hearing
enhances the powers of VCAT to improve the progress of applications and reduce the time for parties to have
disputes finally determined and allows the tribunal to hear a greater range of related matters in a single proceeding
simplifies the processes for VCAT members to change their hours of service and to transfer between sessional and
non-sessional service
21
•
introduces offences which prohibit the recording of proceedings without the permission of a relevant court or tribunal,
and the subsequent transmission or publication of those proceedings (subject to certain exceptions).
These reforms intend to reduce the administrative burden and allow the resources of the civil justice system to be
deployed more efficiently and effectively.
VCAT reforms
Legislation which commenced in June 2014 implements a range of measures to support procedural and other reforms
being introduced at VCAT. The Victorian Civil and Administrative Tribunal Amendment Act 2014:
•
•
enables VCAT, when exercising its review jurisdiction, to invite an original decision-maker to reconsider the decision
under review
creates a presumption that either the whole or a portion of the VCAT fees incurred in bringing a dispute to VCAT will
be met by the unsuccessful party.
The Act also includes a number of changes to improve internal VCAT administration and a legislative scheme in relation
to expert witnesses. The aim of the changes is to improve efficiency and reduce the cost of bringing matters to VCAT.
Court infrastructure improvements
Construction began in Shepparton on a multi-jurisdictional court complex to open in 2017. The complex will be built in
stages to reduce disruption to existing court operations. It will house three Magistrates’ Court courtrooms, two courts for
the Supreme and County Courts on circuit and additional court staff.
Construction began on a new Children’s Court at Broadmeadows. Facilities will accommodate innovative, family division
procedures being developed between the department, the Children’s Court of Victoria, the Department of Human
Services and Victoria Legal Aid.
Work also began in Bendigo on a multi-purpose building on the site of the former Bull Street police station. The project
will provide Magistrates’ Court courtrooms, two holding cells for secure prisoner transfer and a Justice Service Centre
that will bring together department staff presently spread over three sites.
Construction of the new State Coronial Services facility progressed during the year and remedial work was carried out at
Wangaratta Magistrates’ Court.
Melbourne Commercial Arbitration and
Mediation Centre
The Melbourne Commercial Arbitration and Mediation Centre began operation on 19 March 2014. The centre is based
at the William Cooper Justice Centre in William Street, Melbourne. It provides parties to commercial disputes with
access to purpose-built facilities and to many experienced domestic and international arbitrators in Melbourne’s legal
precinct.
The department, the Supreme Court of Victoria, the Victorian Bar and the Law Institute of Victoria entered into a
memorandum of understanding to establish the Melbourne Commercial Arbitration and Mediation Centre. It will
position Melbourne as a hub of excellence for international arbitration and open up the poten tial to meet the growth
in demand for these services across the Asia-Pacific region and beyond.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Criminal matters disposed in the Supreme Court
number
440
494
490
657
1
Criminal matters disposed in the County Court
number
4,500
5,422
5,178
5,436
2
Criminal matters disposed in the Magistrates’ Court
number
178,000
237,452
188,537
180,731
3
Criminal matters disposed in the Children’s Court
number
20,000
21,280
21,965
20,088
4
Civil matters disposed in the Supreme Court
number
26,200
26,443
26,583
26,353
Civil matters disposed in the County Court
number
5,700
6,447
6,683
5,959
Civil matters disposed in the Magistrates’ Court
number
54,000
54,897
54,580
54,842
Performance measures
2011–12
actual Notes
Quantity
5
22
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Civil matters disposed in the Victorian Civil and Administrative
Tribunal
number
87,000
90,542
88,421
89,683
Child protection matters disposed in the Children’s Court
number
8,000
8,698
8,717
7,726
6
Coronial matters disposed in the Coroners Court
number
5,000
7,622
5,534
4,926
7
Quality of court registry services in Supreme Court
per cent
85.0
85.0
85.0
85.0
Quality of court registry services in County Court
per cent
85.0
90.0
85.0
85.0
Quality of court registry services in Magistrates’ Court
per cent
91.0
95.7
90.0
95.0
Criminal matters disposed within agreed timeframes in the
Supreme Court
per cent
70.0
83.0
92.0
70.0
Criminal matters disposed within agreed timeframes in the
County Court
per cent
85.0
87.0
86.0
84.0
Criminal matters disposed within agreed timeframes in the
Magistrates’ Court
per cent
85.0
89.8
88.1
89.0
Criminal matters disposed within agreed timeframes in the
Children’s Court
per cent
90.0
93.1
93.0
92.0
Civil matters disposed within agreed timeframes in the
Supreme Court
per cent
80.0
93.0
80.0
88.0
10
Civil matters disposed within agreed timeframes in the
County Court
per cent
60.0
48.0
47.0
47.0
11
Civil matters disposed within agreed timeframes in the
Magistrates’ Court
per cent
80.0
80.0
80.7
81.0
Civil matters disposed within agreed timeframes in the
Victorian Civil and Administrative Tribunal
per cent
85.0
86.0
85.0
87.0
Child protection matters disposed within agreed timeframes in
the Children’s Court
per cent
80.0
78.3
72.3
78.0
Coronial matters disposed within agreed timeframes in the
Coroners Court
per cent
70.0
80.3
78.5
71.0
12
$ million
448.9
420.3
427.7
449.7
13
Performance measures
2011–12
actual Notes
Quality
8
Timeliness
9
Cost
Total output cost
Commentary on performance
1. The actual is above target due to an increase in case initiations from the previous year that are now coming to trial.
2. The actual is above target due to unexpected movements in criminal matters disposed in the County Court for the 2013–14 reporting year.
3. The actual is above target due to a large increase in case initiations and increased efficiencies in finalising infringement matters within the
Magistrates’ Court of Victoria.
4. The actual is above target due to a higher than anticipated number of cases initiated towards the end of the last financial year and the first
quarter of this financial year, which are now translating into finalised matters.
5. The actual is above target due to unexpected movements in civil matters disposed in the County Court for the 2013–14 reporting year.
23
6. The actual is above target due to a higher than forecast number of finalisations. The increase is a combination of increased applications
being initiated in the previous financial year and during the second and third quarters of the 2013–14 financial year, and improved listing
measures.
7. The actual is above target due to the significant enhancement of the support service provided to coroners and the establishment of more
streamlined processes across the court. This in turn has led to a noticeable increase in productivity and the case finalisation rate.
8. The actual is above target due to the response rate from the client survey. The result may also be attributed to the Registry being fully
resourced at the time of the three week survey period attributing to a high service level.
9. The actual is above target due to cases coming to trial more quickly then anticipated. This is due to a combination of defendants pleading
guilty before or during the trial and having an adequate number of judges to hear cases.
10. The actual is above target due to an increase in initiations from the previous year that are now coming to trial.
11. The actual is below target due to external factors outside of the courts influence with regard to how quickly a civil case progresses through
the court process.
12. The actual is significantly above target due to increased efficiencies resulting from an Ernst & Young review of the Coroners Court. The
Ernst & Young report recommended a new operating model that incorporated significant structural reform; this model came into effect on 1
August 2013.
13. The actual expenditure is below target mainly due to the transfer of appropriation from output to capital for ICT works, the requested carryover
into 2014–15 for a range of IT projects and the County Court Case Listing Management System (CLMS) stabilisation project, and the review of
the corporate cost allocation methodology due to the pending separation of courts.
Supporting the rule of law
Output group
• Supporting legal processes and law reform
Output
• Access to justice and support services
• Public prosecutions
Overview
The department is responsible for delivering services that support legal processes including legal aid, prosecution
services, community mediation services, support for victims of crime and the delivery of independent, expert forensic
medical services to the justice system. This objective also covers legal policy advice to Government, law reform,
implementation of new or amended legislation and the provision of legal advice to the Government.
Output: Access to justice and support services
This output delivers services such as the provision of legal and law reform advice, management of the native title scheme
and access to justice and support services including legal aid, forensic medical and scientific services, medico-legal advice,
support for victims and the prevention and early resolution of legal problems.
Key initiatives
Native title
After extensive negotiations managed by the department, the state and the Dja Dja Wurrung people entered into a
Recognition and Settlement Agreement, that from 24 October 2013, recognises the Dja Dja Wurrung people as the
traditional owners of part of central Victoria. The agreement, reached under the Traditional Owner Settlement Act 2010,
resolved four claims originally brought in the Federal Court under the more complicated and costly procedures of the
Native Title Act 1993 (Cth). It covers approximately 266,532 hectares of Crown land—about three per cent of all Crown
land in Victoria.
The agreement provides the Dja Dja Wurrung people with access to natural resources, Aboriginal title to five parks and
one reserve to be jointly managed with the state, and ownership of two properties of particular cultural significance at
Franklinford and Carisbrook. In addition, the agreement provides funds totalling $9.65 million, of which $3.25 million is for
Dja Dja Wurrung economic development initiatives. The department is overseeing the roll-out of the first Land Use
Activity Agreement, which allows activities to proceed on Crown land while accommodating the Dja Dja Wurrung people’s
traditional owner rights.
The department also continued to support implementation of the 2010 agreements between th e state and the
Gunaikurnai people. In 2013–14, the Gunaikurnai people’s natural resource enterprise—an outcome of the
agreement—grew to employ 11 people and won several contracts.
Improving victims support services
The Victims of Crime Helpline provides a streamlined and integrated referral pathway between Victoria Police and
victim services that minimises the need for victims to retell their experiences. The helpline this year received 10,181
calls, a similar number to the previous year, but the number of e-referrals from Victoria Police increased by 6.25 per
cent and the number of referrals to the Victims Assistance and Counselling Program increased by 45 per cent. The
number of male family violence referrals received by the helpline in 2013–14 was 9,453, compared with 1,431 in
24
2012–13. This is due to a range of process improvements leading to increased referrals from Victoria Police and is
considered to more accurately reflect demand.
In 2013–14, funds available to the department for services to support people affected by crime grew to approximately
$8.4 million. This provided additional staff for the helpline, which was able to extend its 8am–11pm service from
weekdays to seven days a week.
About 90 per cent of calls to the helpline were referred to the Victims Assistance and Counselling Program, 30
per cent more than last year. This network of eight community based agencies at 32 locations throughout Victoria
helps victims, their families or anyone affected by a violent crime to access information, prac tical support and
counselling. An additional $2.2 million allowed for the recruitment of 20 case managers to provide practical and
emotional support for victims from the time a crime is reported until the conclusion of any court processes. The
program assisted 8,493 new clients, 29 per cent more than last year.
An additional 243 people asked to be placed on the Victims Register this year, bringing its numbers to 750. People on the
register are kept informed about the status of an offender who has been sentenced to prison for a crime against them.
Registered victims may make submissions to the Adult Parole Board about offenders who are eligible for parole. In 2013–
14, 126 victim submissions were forwarded to the Adult Parole Board, compared with 91 submissions in 2012–13.
Parole system reforms require that, from 21 November 2013, a person on the Victims Register be notified 14 days before
an offender’s parole release date. In the period to 30 June 2014, 63 registered victims were notified of the impending
release on parole of 59 prisoners.
Addressing anti-social behaviour
On 28 May 2014, the circumstances in which police officers and Protective Services Officers (PSOs) may use move on powers were expanded by the Summary Offences and Sentencing Amendment Act 2014. The expanded powers
ensure that police and PSOs have means to address low-level street drug dealing and to break up gangs and groups
that gather in public places. From 1 September 2014, a magistrate will also be able to order that a person repeatedly
moved on from a particular site be excluded from that place for up to 12 months. These powers will safeguard the
peaceful enjoyment of public spaces and defuse situations that threaten public order and safety.
The Act also creates new alcohol exclusion orders, which ban people who commit a range of violent offences from licensed
premises for two years. Courts will be required to impose an alcohol exclusion order when sentencing a person convicted of
a specified violent offence where satisfied that the person’s intoxication contributed to the offending.
Changes to bail laws
The Bail Amendment Act 2013 commenced on 20 December 2013, bringing significant change to the bail system in
Victoria. The Act provides more stringent oversight of charged persons by requiring that, where possible, all bail
applications for an individual offender’s matter are heard by the same judge or magistrate. It also introduced the offences
of contravening bail conditions or committing an indictable offence while on bail, each punishable by up to three months
imprisonment.
Dispute settlement
The Dispute Settlement Centre of Victoria (DSCV) continued to provide place-based dispute resolution and community
engagement services across the state. Arrangements between the Magistrates’ Court of Victoria and the DSCV this year
saved 950 court sitting days by the centre providing mediation services for Personal Safety Intervention Orders (590
sitting days) and civil matters (360 sitting days).
There was also greater use of protocols encouraging Victoria Police members to refer low-level neighbourhood disputes
to the DSCV rather than to the Magistrates’ Court of Victoria. Referrals increased by 66 per cent.
In 2013–14, 20,216 Victorians accessed dispute resolution services. Matters referred to the centre have increased in
complexity but its settlement rate for dispute resolution remained high at 86 per cent and some 92 per cent of clients
were highly satisfied with the services provided.
Legal profession uniform law
The move to a national legal profession took another step forward in December 2013 when the Victorian and NSW
Attorneys-General signed an Intergovernmental Agreement for the Legal Profession Uniform Framework. This bilateral
initiative will harmonise regulation of the legal profession across Victoria and NSW. It is supported by legislation passed
in both states, in Victoria through the Legal Profession Uniform Law Application Act 2014.
Both jurisdictions are now focused on establishing the new inter-jurisdictional authorities that will set policy under the
uniform law, in advance of the full commencement of the scheme in early 2015. Victoria and NSW will continue to
encourage other states and territories to join them in this important initiative.
Honorary justices
About 4,700 volunteers throughout Victoria work as honorary justices (Justices of the Peace and Bail Justices). They
witness and authenticate documents and make decisions after hours on matters of bail and children at risk.
In 2013–14, the department developed legislation to improve the governance and protection of these volunteers. The
25
Honorary Justices Act 2014, to commence on 1 September 2014, will clarify the responsibilities, obligations and
expectations of new and current honorary justices. It will also provide consistency, wherever possible, between the roles
of Justice of the Peace and Bail Justice.
The department recruits, manages and supports honorary justices. In 2013–14, it introduced an expression of interest
process to manage the high level of community interest in the roles. It also expanded the professional development,
training and resources available to ensure high performance by honorary justices and to maintain public confidence in the
system. Over 200 honorary justices attended the inaugural honorary justices conference held during National Volunteer
Week in May 2014.
Case study: Regional partnerships to support victims
A road trip in February from the Bellarine Peninsula and down the Great Ocean Road by the mobile Justice Service
Centre—the Justice Bus— included specialists in helping victims of crime.
Local Victims Assistance and Counselling Program staff provide victims of violent crime with practical assistance,
emotional support and counselling, financial assistance, information and advocacy. These counsellors joined the
bus to reach victims in their communities, away from cities and regional centres. They were able to connect with
victims of crime in Ocean Grove, Portarlington, Torquay and Apollo Bay.
At Apollo Bay the bus parked on the main shopping strip and staff from the Barwon South West regional office
responded to inquiries from 220 visitors over three days. Representatives of the Sheriff’s Office, Consumer Affairs
Victoria, the Dispute Settlement Centre Victoria and Barwon Prison were available to talk about settlement of
outstanding fines, consumer rights, resolving legal disputes and corrections issues.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Community education and consultation sessions conducted
by Victorian Law Reform Commission (VLRC)
number
60
156
92
50
1
Law reform projects conducted (VLRC)
number
3
5
3
2
2
Groups in negotiation towards resolution of native title claims
number
2
2
2
nm
Provision of expert forensic medical and scientific evidence in
court by Victorian Institute of Forensic Medicine (VIFM)
number
250
211
227
257
Clinical forensic medical services (VIFM)
number
2,100–
2,500
2,201
2,397
2,212
Grants of legal assistance provided by Victoria Legal Aid
(VLA)
number
40,500
33,463
39,782
44,641
Legal advice and minor assistance for clients (VLA)
number
47,000
46,178
51,598
nm
Community Legal Education and Information Services (VLA)
number
88,000
112,020
89,993
nm
Victims receiving a service from the Victims of Crime Helpline,
Victims Assistance and Counselling Program and Victims
Register (VSA)
number
11,900
11,468
9,038
9,291
Medico-legal death investigations (VIFM)
number
4,300–
4,600
6,030
4,954
4,484
Duty lawyer services (VLA)
number
74,000
71,944
65,303
75,170
Dispute resolution services provided in the Dispute Settlement
number
19,500
20,216
nm
nm
Performance measures
2011–12
actual Notes
Quantity
3
4
5
6
26
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Stakeholder satisfaction with law reform projects, briefings
and consultations (Legal Policy)
per cent
80.0
80.0
80.0
82.0
Stakeholder satisfaction with consultation/education
processes (VLRC)
per cent
85.0
100.0
85.0
85.0
Client satisfaction with quality of legal advice provided
(VGSO)
per cent
80.0
78.0
85.0
86.0
Victorian Institute of Forensic Medicine quality audit (VIFM)
per cent
95.0
89.7*
90.0
94.0
Client satisfaction with timeliness of legal advice provided
(VGSO)
per cent
80.0
77.0
78.0
86.0
Proportion of native title negotiations progressed in
accordance with the department’s annual work plan and
timeframes monitored by the Federal Court
per cent
100.0
100.0
100.00
nm
Applications for legal aid processed within 15 days (VLA)
per cent
95.0
89.25*
85.0
91.0
Medico-legal death investigation reports issued within agreed
period (VIFM)
per cent
60–70
60.0*
61.0
59.0
Medical and scientific investigations on the body of the
deceased completed within two days
per cent
75–85
72.4*
82.0
81.0
Intake and mediation services conducted within agreed
timeframes by the Dispute Settlement Centre of Victoria
(DSCV)
per cent
85.0
87.0
nm
nm
$ million
263.2
278.4
241.0
232.5
Performance measures
2011–12
actual Notes
Centre of Victoria (DSCV)
Quality
7
8
Timeliness
9
Cost
Total output cost
10
* The 2013–14 actual is an annual average over the reporting year.
Commentary on performance
1. The actual is above target due to a higher than forecast number of community consultations and a higher than forecast number of community
education sessions conducted. The number of community consultations reflects the number and complexity of references, and community education
sessions are demand-driven and therefore difficult to predict accurately.
2. The actual is above target due to a higher than forecast number of law reform projects conducted.
3. The actual is below target due to a lower than anticipated number of court appearances.
4. The actual is below target due to a decrease in grants of assistance which is a result of changes to guidelines and eligibility within Victoria
Legal Aid (VLA).
5. The actual is above target due to an increase in the number of calls received by the VLA Legal Help phone line.
6. The actual is above target due to improved engagement with clinicians on the reportability of deaths following the introduction of VIFM’s
Coronial Admissions and Enquires Office.
7. The actual is above target due to the results from the stakeholder satisfaction with education processes survey being 100 per cent positive.
8. The actual is below target due to the implementation of updated audit criteria during the period.
9. The actual is below target due to changes in the eligibility guidelines. The under performance variance also reflects a focus on increased
compliance activity with a shift in resources to conduct compliance checks of practitioners on VLA’s specialist panels, to ensure the correct
application of funding guidelines.
10.
The greater than anticipated output cost is due to a number of additional priority projects and critical obligations. These included the
27
coordination of the Victorian Government Response to the Royal Commission Inquiry into Child Abuse, Parliamentary Inquiry into the handling
of child abuse by religious and other non-government organisations, First Law Officer costs, Appeal Costs Board claims and support for Integrity
Reform entities.
Output: Public prosecutions
The Office of Public Prosecutions (OPP) provides a high-quality, independent prosecution service on behalf of the
Director of Public Prosecutions (DPP) in the High Court, Supreme Court, County Court and Magistrates’ Court. The DPP
and the OPP have a responsibility to conduct prosecutions in an effective economic and efficient manner.
Matters prosecuted are serious crimes, including homicides, major sex offence cases, major drug cases, or matters that
are of significance to the fair and effective operation of the Victorian criminal justice system such as corruption cases
involving police or lawyers. Matters are prosecuted in Melbourne and regional courts.
The OPP also provides professional support to prosecution witnesses and victims of crime involved in cases handled by
the OPP.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Number of briefs prepared and hearings attended
number
68,500–73,500
70,254
70,238
70,783
Judicial officer sitting days requiring prosecutors
number
9,500–10,500
9,421
9,814
9,686
Number of victim and witness consultations
number
8,500–9,500
9,525
11,122
6,900
per cent
85.0
88.65*
87.6
88.4
per cent
99.0
99.1
98.8
99.0
$ million
66.5
64.2
63.3
66.0
Performance measures
2011–12
actual Notes
Quantity
Quality
Guilty outcomes (guilty pleas and trial convictions) as a
percentage of case completions
Timeliness
Proportion of trials listed which did not proceed to
adjournment on application of the Crown
Cost
Total output cost
* The 2013–14 actual is an annual average over the reporting year.
28
Protecting individual rights and encouraging community participation
Output group
• Personal identity, individual rights and participation in civic life
Output
• Protecting community rights
• Privacy regulation
• State electoral roll and elections
Overview
The department delivers services to safeguard the Victorian community through the provision of services relating to rights
and equal opportunity, life event registration and identity protection, privacy regulation, advocacy and guardianship for
Victorians with a disability or mental illness and the administration of the Victorian electoral system.
Output: Protecting community rights
The Victorian Equal Opportunity and Human Rights Commission educates, engages and actively assists parties to quickly
and effectively resolve disputes. The Office of the Public Advocate protects the rights, interests and dignity of people with
disabilities or mental illness and the Victorian Registry of Births, Deaths and Marriages (BDM) provides the registration of
significant life events and protection of personal identity.
Key initiatives
Births, Deaths and Marriages
In July 2013, Births, Deaths and Marriages (BDM) concluded an extensive review of its structure and operations using an
innovative co-design process to define products, services and service delivery models that citizens and stakeholders will
increasingly demand in the digital age.
The review considered feedback and ideas from more than 1,800 Victorians, and almost 200 members of the public
developed these ideas through online forums. BDM used these insights to improve its organisational design and
capability. Its new structure was implemented in July 2014 and brings about one of the most significant changes in BDM’s
history. Three new functional portfolios will embed a citizen-centric service delivery model, develop a fully-integrated
digital service delivery offering, and transform the citizen experience.
Some of the themes explored throughout the review included:
•
•
•
•
•
•
commercially oriented service partnerships
integration of state registries and more generally of government services
the concept and management of ‘identity’
customer service models/expectations and core services
digital technology: challenges and opportunities
family history services, current and future.
During the year, BDM implemented and promoted the Medical Practitioners Online system, which enables medical
practitioners to submit death certificates online. BDM developed the system in collaboration with the Australian Medical
Association, hospital administrators and medical practitioners. At present about 40 per cent of all death certificates are
submitted online, with the take-up growing daily. This system increases the accuracy and speed of notification of
information by medical practitioners, thus creating faster service for the citizens of Victoria.
At the end of the year BDM was in the final stages of developing an online birth registration system. New parents will be able
to submit details regarding the birth of their child online, enabling quicker birth registration.
Fences Amendment Act 2014
The Fences Amendment Act 2014 passed parliament in April 2014. It comprehensively reforms the Fences Act 1968 to give
neighbours greater guidance about their rights and obligations in relation to dividing fences and to provide clear, streamlined
processes for the resolution of fencing disputes. The amendments, which will commence operation later in 2014, include
new notice requirements, clearer cost sharing rules and expanded powers for the Magistrates’ Court of Victoria.
29
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Enquiries made by the community to Victorian
Equal Opportunity and Human Rights Commission
(VEOHRC) for information and advice
number
7,500–
8,000
9,157
8,470
7,940
Complaint files received and handled by VEOHRC
number
1,050–
1,200
1,053
1,054
nm
Proportion of finalised complaint files resolved
through dispute resolution (VEOHRC)
per cent
35.0
36.175*
39.0
nm
Public Advocate protective interventions for people
with a disability
number
2,510
2,480
2,449
2,737
Community education/training programs, services
and events delivered by VEOHRC
number
80-100
81
91
99
Births, Deaths and Marriages registration
transaction error rate
per cent
<1.0
0.99
0.8
0.2
Customer satisfaction rating: Community
education/training programs, services and events
delivered by VEOHRC
per cent
85.0
86.3*
86.0
86.0
Timely provision of Births, Deaths and Marriages
certificates
per cent
90.0
97.1*
96.9
94.3
VEOHRC Complaints finalised within agreed
timeframe
per cent
85.0
82.25*
65.0
85.0
$ million
32.7
34.5
38.2
36.9
Performance measures
2011–12
actual Notes
Quantity
1
Quality
Timeliness
2
Cost
Total output cost
3
* The 2013–14 actual is an annual average over the reporting year.
Commentary on performance
1. The actual is above target due to an increase in enquiries resulting from the Commission’s marketing activities such as research projects,
the anti-hate campaign and stakeholder engagement. There has also been a substantive increase in the number of visitors to the Commission’s
website. The site provides referral to the enquiry service.
2. The actual is above target due to the implementation by BDM of a range of business process improvements including greater promotion of
online services.
3. The actual expenditure is above target driven by a once-off transfer from other outputs in 2013–14 largely to support the replacement of the
Registry of Birth, Deaths and Marriages core registry system.
Case study: Encouraging Koori community youth leadership
Loddon Mallee is not only geographically the largest of the department’s eight regions, its 7,200 Aboriginal and
Torres Strait Islander people make up about 2.3 per cent of the region’s total population—the highest proportion in
the state. This growing population is also younger than the state average. That’s why since 2011 the department
has supported the Mildura Koori Emerging Leaders Program.
The program works with 13 to 17-year-old Koories to provide personal, leadership and cultural development
30
opportunities. Leadership workshops in each school term help up to 80 students from secondary schools build
resilience, teamwork and motivation—skills and attitudes that will assist them through their lives.
The quality of the program’s role models is evident. One team leader and mentor in the program, Lucy-Rose
Doolan, was a co-recipient of this year’s Ricci Marks Award. The award, provided by the Victorian Government,
encourages young Aboriginal people to pursue their goals and aspirations. Lucy-Rose is doing just that: in addition
to studying and mentoring youngsters, she is a member of the Mildura Aboriginal Justice Action Committee and the
Loddon Mallee Regional Aboriginal Justice Advisory Committee.
The Emerging Leaders Program is a partnership between the department, the YMCA and Mallee District Aboriginal
Services. It is helping Koori youth understand cultural identity, build self-esteem and pursue education. Its alumni have
been recognised for academic achievement and have succeeded in employment and university entrance. One
young man to have been through the program, Mason Peter, was this year a mentor to participants in the National
Indigenous Youth Parliament.
Output: Privacy regulation
The Information Privacy Act 2000 regulates the collection and handling of personal information by the Victorian
public sector and local government. The Office of the Victorian Privacy Commissioner receives and deals with
complaints of alleged breaches of privacy and promotes privacy protection through advocacy, education and
training, audit and investigation of breaches of the Act.
Key initiative
Privacy and data protection
The department developed legislation to modernise the state’s privacy and law enforcement data security. The Victorian
Privacy and Data Protection Bill 2014 was introduced into parliament in June 2014 and will, if passed, merge the positions of
the Victorian Privacy Commissioner and the Victorian Commissioner for Law Enforcement Data Security. In their place, a
Commissioner for Privacy and Data Protection will promote the state’s privacy principles, guide agencies, investigate privacy
complaints and audit agency compliance with statewide data protection standards.
One of the first jobs of the new commissioner will be to establish a Victorian protective data security framework, which will
monitor and assure the security of public sector data. The framework must be as consistent as possible with standards
relating to information security (including international standards).
Importantly, existing Information Privacy Principles have been retained but new mechanisms introduced by the Bill will,
among other things, allow them to be applied with flexibility if the public interest in doing so substantially outweighs the
public interest in adhering to the Information Privacy Principles.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Compliance activities conducted
number
2,700
2,731
2,734
2,860
Privacy awareness activities conducted
number
195
217
217
279
level
high
high
high
high
per cent
90.0
90.0*
90.0
90.0
$ million
2.3
4.0
2.4
2.6
Performance measures
2011–12
actual Notes
Quantity
1
Quality
Client feedback of satisfaction with complaint handling and
training services provided
Timeliness
Statutory or agreed timelines met
Cost
Total output cost
2
* The 2013–14 actual is an annual average over the reporting year.
Commentary on performance
31
1. The actual is above target due to a higher than forecast demand for privacy awareness training during the 2013–14 reporting year.
2. The increase in 2013–14 actual reflects the functions of the Commissioner for Law Enforcement Data Security being transferred from the
Policing Services output during the 2013–14 financial year.
Output: State electoral roll and elections
The Victorian Electoral Commission maintains a high-quality electoral system that supports democracy in Victoria. It
administers an accurate and secure electoral roll, provides electoral services to ensure fair and equitable representation,
conducts fair and impartial elections and encourages greater participation in civic life through education and awareness
activities and improving ease of access.
Output results
Performance measures
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
2011–12
actual Notes
number
24
33
103
19
number
0
0
0
0
per cent
98.0
99.5*
100.0
99.5
$ million
30.6
25.0
42.6
23.7
Quantity
State elections, municipal and statutory elections,
by-elections, polls and electoral representation reviews
1
Quality
Challenges to Victorian Electoral Commission conduct upheld
in Court
Timeliness
Elector enrolment changes and new enrolments processed
within set timeframes
Cost
Total output cost
2
* The 2013–14 actual is an annual average over the reporting year.
Commentary on performance
1. The actual is above target due to a higher than anticipated number of local government by-elections and countbacks.
2. The actual expenditure is below target mainly due to the rescheduling of development works for the Electronic Electoral Management System
and lower than anticipated State election preparation costs.
Promoting community safety through effective management of prisoners and
offenders and provision of opportunities for rehabilitation and reparation
Output group
• Enforcing and managing correctional orders
Output
• Prisoner supervision and support
• Community based offender supervision
Overview
The department manages 11 public prisons, two private prisons, one transition centre and Community Correctional
Services that are delivered at more than 50 locations throughout the state.
Output: Prisoner supervision and support
This output relates to the safe, secure and humane containment of prisoners as well as the delivery of programs and
effective case management to engage prisoners in positive behavioural change.
Key initiatives
Increasing prison capacity
In 2013–14, the department continued to deliver the Victorian Government’s prison capacity expansion program to meet
32
demand. A total of 938 new prison beds were opened including:
•
•
•
•
significant expansion at Langi Kal Kal and Dhurringile prisons through construction of new secure cottage
accommodation
opening of a new 118-bed Matilda Unit at Port Phillip Prison in June 2014
opening of 200 relocatable accommodation units across Dhurringile, Langi Kal Kal and Beechworth Prisons
significant expansion across the system through additional beds.
To increase capacity in the male prison system quickly, relocatable units were installed. The first tranche of 50
relocatable accommodation units was installed at Dhurringile Prison in December 2013, providing for an additional 100
beds. These units were transported from the Pilbara in Western Australia, where they were previously used as miners’
accommodation. A further 50 custom-built portable units, providing 100 beds, were added to Langi Kal Kal and
Beechworth Prisons in April 2014. The new 236-bed restricted minimum Middleton Annex at Loddon Prison was opened
in July 2014 and construction continued on the 350-bed expansion at Hopkins Correctional Centre in Ararat and two new
100-bed units at the Metropolitan Remand Centre. Planning and procurement is also underway for:
•
•
•
a new 40-bed high-security unit at Barwon Prison
126 new beds at Dhurringile Prison
a 216-bed restricted minimum-security annex at Marngoneet Correctional Centre.
Funding was also allocated for an additional 673 beds in existing male prisons and an increase in the capacity of
Ravenhall Prison (increasing its capacity from 500 to 1,000 beds). The tendering process for construction at Ravenhall
Prison continues.
Parole reform
In August 2013, the Victorian Government released a review of the Adult Parole Board undertaken by former High
Court Judge the Honourable Justice Ian Callinan AC.
Justice Callinan made 23 recommendations, which have all been actioned, including the development of a
comprehensive suite of legislative reforms that came into effect on 1 July 2014. In March 2014, the Victorian Government
announced additional funding of $84.1 million over four years to implement the reforms.
The reforms have made system-wide changes to the way parole operates, including the introduction of a new risk
assessment and management framework. Under the changes:
•
•
•
•
•
serious violent offenders and sex offenders are categorised and managed differently
risk assessment and identification for treatment programs will occur from the start of the sentence
serious violent offenders and sex offenders must complete recommended treatment and be of good behaviour in prison
before they can be considered for parole
serious violent offenders and sex offenders face a
two-tier process to gain parole
introduction of a specialist parole stream and dedicated parole officers in Community Correctional Services to improve
supervision of offenders on parole.
The reforms make it clear that parole is a privilege, not a right and that community safety and protection is paramount.
In December 2013, the Honourable Justice Bill Gillard QC, retired Supreme Court Judge was appointed as the first
full-time Chair of the Adult Parole Board. Board processes throughout the year have been modernised and its paperbased systems replaced by electronic records. To ensure greater transparency, the rules and instructions under which
the board operates were made public including the provision that Adult Parole Board members can now serve for no
more than six years.
Full-time membership of the Adult Parole Board increased from one to four members.
Prison officer recruitment
In 2013–14, a total of 655 new entry-level prison officers joined the department and recruitment continues for prison
officers and community correctional officers across Victoria to support the ongoing expansion of the system. The
Minister for Corrections launched the first statewide corrections media and advertising campaign in June 2014, using
television, online, print and radio advertising to promote prison officer and community corrections officer recruitment.
The campaign gives Victorians a behind-the-scenes look at the state’s corrections system and highlights the wide
range of job opportunities available across Victoria.
Prisoner health
The health needs of prisoners are diverse. Prisoners have higher levels of chronic disease, mental illness and alcohol
and drug dependency than the general population.
In December 2013, the Minister for Corrections established the Justice Health Ministerial Advisory Committee to provide
the Minister with strategic advice on future directions and reform opportunities in correctional health. The committee,
made up of recognised experts from a cross-section of organisations and perspectives, will position Victoria as a leader
in the delivery of correctional health services.
33
In May 2014, JCare, an electronic health information system was implemented in the women’s prison system. JCare
improves access to, and sharing of, health information among health providers. In addition to improving health outcomes,
the secure data captured by the system will inform policy and service planning. Implementation of JCare in the men’s
system will begin in 2014–15.
Case study: Collaboration broadens horizons for prison industries
Prison industries at Hopkins Correctional Centre (Hopkins) led a collaboration with prisons across the state to design
and build cell furniture to supply the expansion of Hopkins in a commercial arrangement with Brookfield Multiplex
Constructions.
The project involved product design, development and manufacturing of approved cell furniture including shelving
units, beds, desks and vanity units for the expanded Hopkins prison at Ararat, which is more than doubling its
prisoner population.
The industry team at Hopkins worked closely with other prisons, including the Metropolitan Remand Centre and
Loddon Prison, to design and manufacture the items and ensure they met deadlines and product standards.
Each facility supervised teams of prisoners to build the furniture. Prisoners gained valuable skills and experience in
areas such as project planning, scheduling, computer design and metalwork.
The project has forged a new way for prison industries to work together and demonstrate the high quality of work they
can deliver not just for prison projects but external customers as well.
Hopkins prison industries continues to work with other facilities to supply items for prison expansions including
Loddon Prison, Port Phillip Prison and Langi Kal Kal Prison and they are looking to continue to apply these skills to
other projects into the future.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Total annual daily average numbers of prisoners
number
5,150–5,435
5,800
5,120
4,831
Average daily prison utilisation rate of total prison capacity
per cent
90.0–95.0
96.8
94.5
94.8
Proportion of benchmark measures in prison services
agreement achieved
per cent
90.0
83.7
85.6
87.1
Rate of return to prison within two years
per cent
<39.3
39.5
36.8
35.1
Rate of prisoner participation in education
per cent
>33.8
33.4
38.1
37.2
Proportion of eligible prisoners in employment
per cent
>72.3
88.1
89.1
nm
$ million
758.8
732.2
642.3
594.1
Performance measures
2011–12
actual Notes
Quantity
1
Quality
2
Cost
Total output cost
Commentary on performance
1. The 2013–14 outcome reflects growth in the prison population during the financial year. After the 2013–14 target was set, additional prison
capacity was added to the system to manage the growth in prisoner numbers.
2. The actual is below target due to significant growth in prisoner numbers and higher utilisation rates, which have impacted on prison
performance against service delivery outcome benchmarks. Measures that have been impacted include prisoner assaults on staff and other
prisoners, random general drug test results, staff WorkCover and occupational health and safety.
34
Output: Community based offender supervision
This output relates to the effective supervision of offenders in the community, including ensuring compliance with orders of
the court and Adult Parole Board, engagement in programs to reduce re-offending and reparation to the community.
Key initiatives
Community Correctional Services
The Community Correction Order (CCO) is a non-custodial order imposed by the court and is designed to intervene in the
lives of offenders before they graduate to serious crime. It allows sentences to be tailored to the circumstances of the
offender and the offence.
Offenders on CCOs are required to report regularly to a Community Correctional Services corrections officer. CCOs can
contain a range of conditions including requiring offenders to:
•
•
•
•
perform up to 600 hours of community work
adhere to curfews, no-go zones and alcohol abstinence conditions
comply with restrictions in relation to their associations and where they live
complete rehabilitation and treatment programs relevant to their offence.
Community work includes the removal of graffiti, the
clean-up of road and waterways, meal preparation, grounds maintenance at community sporting clubs and sorting and
distributing food, clothing and other goods. Offenders are required to report to work, learn skills and adopt attitudes that
improve their job readiness.
Communities benefit significantly from this work. In 2013–14, approximately 1,000 organisations including schools,
charities and councils benefited from 660,428 hours of unpaid work, valued at more than $19 million, by the daily average
of 9,347 offenders managed by Corrections Victoria.
Examples of community benefits include the following:
•
•
in February 2014, CCO offenders assisted with emergency relief in the Gippsland bushfires
the Graffiti Removal Program maintained partnerships with 29 local government and other agencies, removing
330,481 square metres of graffiti, mainly from community precincts and transport corridors.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Average daily offenders under community based supervision
number
7,798
7,350
7,144
6,821
Community work hours performed
number
(’000)
650–750
660.4
604.1
713.1
Rate of return to corrective services within two years of
discharge from a community correction order
per cent
<24.1
20.8
22.0
21.3
Offenders with a supervised order that has been successfully
completed
per cent
60–65
60.5
61.8
67.8
Offenders with an unsupervised order that has been
successfully completed
per cent
61.0
72.7
64.5
51.7
per cent
95.0
97.0
93.4
93.4
$ million
128.3
114.2
114.3
95.5
Performance measures
2011–12
actual Notes
Quantity
1
Quality
2
Timeliness
Offenders with a treatment or personal development program
condition who have been appropriately referred to a program
within set timelines
Cost
Total output cost
3
35
Commentary on performance
1 Parole reforms have resulted in a significant decrease in the number of parolees supervised in the community.
2. The actual is above target due to an increased focus on the completion of community work hours and a change in breach practices for
unsupervised orders over the financial year.
3. The actual expenditure is below target due to the requested carryover into 2014–15 for various community corrections projects and a review
of the corporate cost allocation methodology.
36
Minimising injury and property loss through a coordinated and integrated
emergency response
Output group
• Supporting the state’s fire and emergency services
Output
• Emergency management capability
Overview
The department supports the delivery of a coordinated, all hazards approach to emergency management, focusing on
risk mitigation and active partnerships with the Victorian community. The focus is on minimising injury and property loss
through a coordinated and integrated response to emergencies.
Output: Emergency management capability
This output provides for the management of emergencies by developing and adopting emergency prevention and
mitigation strategies, providing emergency response and rescue services and supporting local government and
communities in disaster mitigation and recovery.
Key initiatives
Emergency sector reform
In 2013–14, the department led preparations for a new era in emergency management in Victoria, which focuses on risk
mitigation, planning and preparedness and a coordinated and networked approach to emergency response,
consequence management and recovery.
The department developed the Emergency Management Act 2013, which received Royal Assent in December 2013. This
legislation sets out an ‘all-hazards, all-agencies’ approach to emergency management and deals with governance,
strategy, performance and continuous improvement.
The department has made significant structural changes in preparation for the new arrangements.
At a whole-of-Victorian Government level, the new Act puts the State Crisis and Resilience Council (SCRC) on a
statutory footing as the peak emergency management advisory body responsible for whole-of-government policy and
strategy across the emergency management spectrum. Its members include the secretaries of all Victorian Government
departments, the Chief Commissioner of Police, the Emergency Management Commissioner, the Chief Executive of
Emergency Management Victoria, and the Chief Executive Officer of the Municipal Association of Victoria. The SCRC
was convened administratively before the legislation was enacted and met bi-monthly throughout the year. It is supported
by three standing sub-committees on:
•
•
•
risk and resilience
capability and response
recovery.
The sub-committees also met regularly to develop plans and strategies for endorsement by the SCRC and the Security
and Emergencies Committee of Cabinet.
The State Crisis and Resilience Council (SCRC) is required to develop a three -year rolling Strategic Action Plan for
emergency management reform and will do so in 2014–15. In 2013–14, the department led development of an
interim plan to come into effect immediately upon the transition to the new arrangements. This plan maintains the
momentum of work done under the Fire Services Reform Action Plan and other initiatives. The interim plan
identifies priority projects and actions to be delivered in the first year of the arrangements, with a full three -year
rolling Strategic Action Plan to be developed during 2014–15, to come into effect on 1 July 2015.
The Act also established the role and function of the Emergency Management Commissioner, who provides operational
leadership to the emergency sector, coordinates state resources in response to emergencies to reduce the
consequences of major emergencies, and coordinates the recovery effort. In May 2014, Craig Lapsley, Fire Services
Commissioner since 2010, was appointed to this role.
Transition to a new Inspector-General for Emergency Management
The department continued to support the work of the Office of the Emergency Services Commissioner (OESC) throughout
the year. Details of OESC’s 2013–14 work program are reported in Appendix 13 (page 169). The department undertook
significant preparatory work to establish the role and office of the Inspector-General for Emergency Management, which
commenced on 1 July 2014.
The Inspector-General for Emergency Management provides assurance to the Government and the community in
37
respect of emergency management arrangements in Victoria and fosters their continuous improvement. It will:
•
•
•
•
develop and maintain a monitoring and assurance framework to assess the capacity, capability and performance of
the emergency management sector
undertake system-wide reviews of emergency management in Victoria
monitor and report on the implementation of the state’s Strategic Action Plan
monitor and investigate the non-financial performance of the Emergency Services Telecommunications Authority.
The Inspector-General for Emergency Management will work closely with emergency management sector partners and
the community to strengthen emergency management arrangements and enhance community safety in Victoria.
Emergency Management Volunteer
Consultative Forum
Throughout the year the department continued to support and recognise the 90,000 Victorians who volunteer with the
CFA, Life Saving Victoria, VicSES and the Australian Volunteer Coast Guard Association.
In November 2013, the Volunteer Consultative Forum met for the first time. The forum was established as part of the
Victorian Government’s commitment to emergency management reform and to acknowledge the vital role volunteers
play.
The forum provides a means for consulting with emergency management volunteers on volunteer-related issues and
broader sector reform, identifying and implementing priority actions.
Since its establishment, the forum has met four times, with a commitment to meet quarterly. Meetings were attended
by the Minister for Police and Emergency Services or the Parliamentary Secretary for Police and Emergency
Services.
Forum membership comprises emergency management volunteers and agency nominees from Ambulance Victoria,
Australian Volunteer Coast Guard, CFA, Volunteer Fire Brigades Victoria, Life Saving Victoria, Red Cross, Salvation
Army, St John Ambulance, VicSES, Victoria Emergency Service Association and Victorian Council of Churches.
Supporting emergency service volunteers
The Volunteer Emergency Services Equipment Program provides funding to local emergency services volunteer
groups. Grants are made for operational equipment, vehicles, trucks, tankers, watercraft, trailers and minor facility
improvements.
In 2013–14, the department administered a record $12.2 million to 300 volunteer groups and contributed to the
purchase of $16 million of operational assets. This included $2.1 million allocated to the CFA to subsidise the cost
of listening sets or scanners, equipment that is vital for tuning into local emergency radio traffic. CFA also used the
funds to replace aged pumps and upgrade hygiene facilities at some fire stations.
The Valuing Volunteer Program allocated $1.45 million for a range of initiatives including the VicSES Health Watch
program, the CFA’s regional mentoring program, Life Saving Victoria’s female leadership program, Australian
Volunteer Coast Guard Association’s leadership development program and the Emergency Services Foundation’s
scholarship scheme for volunteers.
Upgrades to CFA assets
As part of a multi-year program of upgrades to CFA vehicles, a further 130 CFA tankers were retrofitted with crew
protection technology. The technology includes radiant heat protective curtains, water-spraying systems, heat
shielding panels and upgraded intercom systems. These can be lifesaving if a crew is caught in a fire front. The
program is now complete, with CFA having upgraded over 1,000 vehicles in recent years.
The 2013–14 Victorian Budget provided $61 million over two years to build or upgrade 142 CFA stations in regional
Victoria. This continues the government’s commitment to build or upgrade 250 rural fire stations over three years.
Construction or upgrading of 203 of these stations, including three stations shared with VicSES, was completed as
of 30 June 2014.
Emergency communications
The department worked with the Fire Services Commissioner this year to develop and launch a new version of the
popular FireReady app for smart phones and tablets in time for the 2013–14 fire season.
The app delivers simple, reliable and timely emergency information and warnings based on data provided by the
Metropolitan Fire Brigade, the CFA and the Department of Environment and Primary Industries. It underwent stringent
testing before release to ensure it could scale up during emergencies and support a user base of at least one million
users.
Over the 2013–14 summer fire season, the FireReady app was downloaded more than 564,000 times and sent more
than 154 million push notifications.
In December 2013, a new emergency information website — VicEmergency — came on line as a central source for
reliable information about fires and floods. By 30 June 2014, Victorians had made almost 5.9 million page visits to
38
<emergency.vic.gov.au>. The busiest day was 9 February 2014, when the site served 814,042 sessions.
Emergency Alert
Victoria has led work on the national emergency warning system since 2009 when the Victorian Bushfires Royal
Commission recommended development of an Australia-wide telephone alert service.
The Emergency Alert system can deliver voice warnings to all fixed line phones in a given area. The system can also
deliver emergency warning messages by SMS to mobile phones. Initially the system was restricted to broadcasting to
mobiles based on their billing address rather than the location of the phone.
The department launched the second phase of the Emergency Alert system in October 2013, allowing emergency
warnings to be sent to mobile phones on any network based on their last recorded location within a warning area.
This world-first location-based capability extends to anyone in a warning area—locals, visitors or international tourists
roaming on an Australian network.
Emergency Alert will continue to be developed by Emergency Management Victoria.
Case study: New community fire refuges
This year Victoria commissioned and opened for use Australia’s first community fire refuges at East Warburton, Ferny
Creek and Blackwood.
A refuge is a place of last resort only, for short-term shelter from a fire front.
When it was proposed that the ageing Blackwood fire station be replaced, the Fire Services Commissioner and CFA
took the opportunity to build a fire refuge at the site—the first time in the refuge pilot program for a refuge and a fire
station to be co-located.
Blackwood is east of Ballarat on the Lerderderg River. It is surrounded by native forests of the Lerderderg State Park
and the Wombat State Forest. It only has single road access and extreme bushfire risk. A comprehensive evacuation
plan for the town was developed and tested in 2012.
Community involvement and feedback was central to the planning process. Emergency agencies and local and
Victorian Government authorities worked together to ensure the fire station met all design and construction standards
for a refuge, including ember-proofing, a standby power generator and fire protection systems.
A great deal of work went into using community warning protocols so that the refuge can be opened from either the local
Incident Control Centre or the State Control Centre when a Watch and Act or Emergency Alert is issued.
The Blackwood refuge was officially designated for use on 20 December 2013. Two days later locals were able to
inspect the refuge at an open day. They learned how the refuge operates and what they must do if they are forced to
use it. Firefighters spoke about how a community fire refuge could fit with a bushfire survival plan.
Speakers stressed that refuges are a last resort option in which to shelter during a significant bushfire. It is always
better to leave the area early on days of high fire danger.
Another refuge is being built in Millgrove in the Yarra Valley, co-located with the CFA station.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Permanent operational staff
number
2,732
2,787.8*
2,733
nm
Permanent support staff
number
1,430
1,447.3*
1,524
nm
Volunteers – Operational
number
43,000–44,000
41,557*
41,416
nm
Volunteers – Support
number
18,000 20,191.8*
17,312
nm
Performance measures
2011–12
actual Notes
Quantity
1
Quality
Road crash rescue accredited brigades/units
number
130
130*
130
nm
Level 3 Incident Controller trained staff and volunteers
number
129
147*
138
nm
2
39
Performance measures
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
2011–12
actual Notes
Structural fire confined to room of origin
per cent
80.0
81.8*
81.0
nm
Emergency response times meeting benchmarks –
structural fires
per cent
90.0
88.3*
90.0
nm
Emergency response times meeting benchmarks – road
accident rescue response
per cent
90.0
91.0*
90.0
nm
Emergency response times meeting benchmarks –
emergency medical response
per cent
90.0
93.5*
95.0
nm
$ million
871.3
956.8
259.7
236.0
Timeliness
Cost
Total output cost
3
* 2013–14 actuals are an annual average over the reporting year.
Commentary on performance
1. The actual is above target due to the fluctuating demand drivers inherent in emergency services activities. The Country Fire Authority (CFA)
and State Emergency Services (SES) had an increase in recruitment to meet anticipated requirements.
2. The actual is above target due to the CFA and Metropolitan Fire Brigade (MFB) conducting Level 3 training and accreditation sessions ahead
of schedule.
3. The portfolio emergency services organisations had additional costs of over $55 million for the 2013–14 summer fire season, which were not
budgeted for in the published budget. The department received this funding as additional appropriation. Additionally, the Country Fire Authority
did an appropriation transfer from capital to output for unfunded depreciation expenses.
40
Promoting responsible industry behaviour and an informed community through
effective regulation, education, monitoring and enforcement
Output group
• Industry regulation and support
Output
• Promoting and protecting consumer interests
• Gambling and liquor regulation and racing industry development
Overview
The department oversees a wide range of regulatory functions, including regulation of businesses and landlords, regulation
of the gambling and liquor industries, and support and development of the racing industry. Through balanced regulation and
support to businesses and consumers, the regulatory system aims to promote a market economy that functions well.
Output: Promoting and protecting consumer interests
This output informs businesses and consumers about their rights and responsibilities under the law, engages with
business to ensure compliance, registration and occupational licensing for individuals and organisations, and regulates of
the residential tenancies market. The output also includes the Fire Services Levy Monitor, which was established in 2012
to oversee the abolition of the previous insurance-based Fire Services Levy. A key function of the monitor is to inform and
educate policy holders and insurance companies about their rights and obligations with regard to the abolition of the Fire
Services Levy.
Key initiatives
Helping businesses improve service
In September 2013, the department, through Consumer Affairs Victoria, launched an innovative approach to protecting
consumers by working closely with businesses subject to frequent complaints. The pioneering approach has been a
success and other Australian jurisdictions are following suit.
The Better Business Initiative targeted a diverse range of businesses including companies from the building industry,
solar retailers, and clothing and furniture retailers, all of which had attracted a high level of contacts about faults with
products and services, delayed supply or excessive fees and charges. By Consumer Affairs Victoria highlighting
systemic consumer concerns, businesses were able to recognise areas where improvements to their business could
be made.
More than 50 businesses have been engaged by Consumer Affairs Victoria and many of them have implemented a
number of improvements to their business practices, reducing consumer detriment at the same time. For example,
complaints about one volume home-builder fell by 40 per cent after Consumer Affairs Victoria encouraged the business
to focus on issues relating to customer service. A solar retailer improved its warranty claims process and proactively
contacted all customers experiencing delays in supply. As a result, complaints to that company fell by 30 per cent.
RentRight for tenants
In November 2013, Consumer Affairs Victoria released RentRight, a free smartphone app that puts comprehensive
information about rental rights and responsibilities at the fingertips of tenants of rental properties and property managers.
The app provides guidance on issues such as breaking a lease or getting a bond back. It features self-help tools, such as
a rent and bond calculator for renters to budget and manage their commitments. It provides a mechanism for tenants to
deal with their landlord or property manager electronically, including the capacity to send photographs of areas in need of
repair and serve notices under the Residential Tenancies Act 1997.
Take up of the app has been excellent with 9,903 downloads to 30 June 2014. Version two of RentRight is under
development. It will extend tailored assistance to landlords and property agents.
Raising the standard of rooming houses
In 2013–14, Consumer Affairs Victoria continued to drive compliance of rooming house operators to meet
standards relating to safety, security, amenity and privacy for residents. These standards were introduced in March
2013. Consumer Affairs Victoria delivered an education program to rooming house tenants about their rights and
informed rooming house operators of their new responsibilities.
Tough action was taken when rogue operators refused to meet standards. In May, Consumer Affairs Victoria began
proceedings in the Supreme Court of Victoria, against nine non-compliant rooming house owners for
contraventions of the Residential Tenancies Act 1997 and Residential Tenancies (Rooming House Standards)
Regulations 2012.
Under changes introduced in March 2013, local councils were given the power to refuse registration to a non -
41
compliant rooming house or impose conditions on registration. In August 2013, Consumer Affairs Victoria built
upon this work by creating a centralised statewide rooming house register. The register provides a single up -todate resource with uniform consolidated data on rooming houses and replaces a range of individual lists created by
individual councils.
Consumer Affairs Victoria is working closely with councils to identify and, where needed, jointly inspect rooming
houses to be added to the register. The register provides assurance to clients that a rooming house meets standards
and, from a regulatory perspective, makes it easy to identify unregistered properties.
Case study: Safety first
Consumer Affairs Victoria this year succeeded in a landmark product-safety case. Consumer Affairs Victoria became
the first regulator to bring an Australian Consumer Law action in the Federal Court in late 2012 when it issued
proceedings against discount retailer Dimmeys Stores Pty Ltd, Starite Distributors Pty Ltd and their director Douglas
Zappelli.
Consumer Affairs Victoria inspectors removed more than 18,000 items of girls’ padded swimwear, baby bath
squeeze toy sets, cosmetics sets and basketball rings from Dimmeys stores in Victoria and New South Wales. The
swimwear did not meet labelling requirements under flotation aid safety standards, the squeeze toys posed a
choking hazard, the cosmetics sets did not label ingredients as prescribed by the Cosmetics Information Standard,
and the basketball rings did not include warnings required under the Basketball Rings Standard.
On 17 December 2013, Dimmeys was ordered to pay a penalty of $3 million. Starite and Mr Zappelli were ordered to
pay penalties of $600,000 and $120,000 respectively. Mr Zappelli was disqualified from being a company director for
six years. The court ordered Dimmeys to pay for the destruction of all seized products and restrained it from selling
any product subject to a safety standard for six years.
Output results
Performance measures
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
2011–12
actual Notes
Quantity
Information and advice provided to consumers and traders
delivered by Consumer Affairs Victoria (CAV)
number
520,000
524,078
494,595
590,449
Inspections, compliance monitoring and enforcement activities
delivered by CAV
number
10,000
10,588
9,749
9,417
1
Registration and licensing transactions delivered by CAV
number
450,000
486,655
467,913
650,002
2
per cent
90.0
93.2
94.0
95.0
per cent
90.0
86.2
90.1
87.7
$ million
88.0
80.8
90.4
117.9
Quality
Customer satisfaction with services provided
Timeliness
Services provided within agreed timeframes
Cost
Total output cost
3
Commentary on performance
1. The actual is above target due to an increased focus on compliance assistance and monitoring activities, particularly in the enforcement of
rooming house minimum standards.
2. The actual is above target due to the higher number of residential bonds being lodged with the Residential Tenancies Bonds Authority.
42
3. The actual expenditure is below target largely generated from trust fund expenditure for the Victorian Property Fund and Domestic Builders
Fund being lower than originally anticipated and savings requested as carryover into 2014–15 for essential ICT upgrades.
Output: Gambling and liquor regulation and racing industry development
This output provides for monitoring and regulation of gambling and liquor activities in Victoria. It also provides leadership
and strategic policy advice to the Minister for Liquor and Gaming Regulation and the Minister for Racing on the regulation
of gambling, racing and liquor industries, problem gambling and harm minimisation in relation to liquor and gambling, as
well as development support for the racing industry.
Key initiatives
Reducing the alcohol and drug toll
The department is a partner in the whole-of-Victorian Government strategy Reducing the alcohol and drug toll:
Victoria’s Plan 2013–2017, which is designed to reduce the impact of alcohol misuse and drug abuse on the
Victorian community. The plan sets out cohesive action across education, policing, justice, health and social
services to tackle the harm caused by alcohol, pharmaceutical and illegal drugs.
In 2013–14, the department developed amendments to the Liquor Control Reform Act 1998 to double penalties for eight
offences relating to the supply of liquor to minors. The Summary Offences and Sentencing Amendment Act 2014 also
implemented a commitment to ban those found guilty of committing a violent offence while under the influence of alcohol
from licensed premises for two years.
The department continues to support Step Back Think, an organisation working to change attitudes towards street
violence. They deliver their key message—‘Is one punch worth it?’—to young risk-takers, through public awareness
campaigns and education.
The department continued to work with the Victorian Commission for Gambling and Liquor Regulation (VCGLR), to
implement the Victorian Government’s policies, including the management of the five-star rating system for liquor
licences. In 2012, all existing liquor licensees began with a three-star rating and their star rating increased or decreased
depending on whether there were any non-compliance incidents, such as serving alcohol to minors. On 20 February
2014, 17,578 licences moved from a three to four-star rating as they had no non-compliance incidents in the previous
24 months. Licensees with a four-star rating will be entitled to a discount of five per cent on their next licence renewal fee.
An additional discount will be given to liquor licensees if they achieve a five-star rating in subsequent years.
Reducing red tape
Throughout the year, the department has implemented the Government’s red tape reduction program, which has cut red
tape for a number of low-harm, low-risk activities including:
•
•
•
•
•
removing the requirement for some small businesses such as hairdressers and butchers to notify the VCGLR about
the incidental supply of liquor in those businesses and extending the exemption from holding a liquor licence to
hospitals, nursing homes, retirement villages and cruise ships
enabling small clubs to buy packaged liquor from wholesalers
removal of significant regulatory burden associated with the conduct of underage and mixed age live music events
held in licensed premises, resulting in the first
all-ages gig in a licensed premises in 20 years
codifing new year’s eve trading hours for the majority of liquor licences in Victoria, providing certainty to
industry
removing the requirement to seek ministerial approval for two-up on ANZAC Day at RSL clubs.
New developments for problem gambling
Major advances were made during 2013–14 towards implementing Victoria’s statewide voluntary pre-commitment
scheme. By 1 December 2015, pre-commitment technology will be available on every gaming machine in Victoria,
enabling players to set time and loss limits and to track their play across all electronic gaming machines in the state.
In August 2013, the Victorian Government announced that a networked, card-based pre-commitment scheme will be
implemented, and that the preferred provider to deliver the statewide system is the monitoring licensee, Intralot Gaming
Services Pty Ltd.
The department prepared legislation, the Gambling Regulation Amendment (Pre-commitment) Act 2014, to establish the
framework for the delivery of pre-commitment in Victoria. The legislation allows the Minister to enter into a commercial
agreement with the monitoring licensee for the delivery of pre-commitment in all gaming venues, including the Melbourne
casino. It also sets out requirements for venues, such as providing certain equipment to ensure players can access the
pre-commitment system, and requires the same equipment to be used for loyalty schemes and pre-commitment. This
approach involves
the least duplication of infrastructure, is cost-efficient and will help reduce potential stigma associated with using
pre-commitment.
43
The Victorian Government also re-established the Responsible Gambling Ministerial Advisory Council,
which has been tasked to provide advice to the Minister on a range of issues including measures to encourage the takeup of pre-commitment.
The department is working closely with the monitoring licensee and industry to prepare for commencement of the
scheme, and with industry and community representatives to develop strategies to encourage the take-up of
pre-commitment by players.
Implementation is on track for the pre-commitment scheme to commence on 1 December 2015.
Racing industry development
The department continued its administration of the Victorian Racing Industry Fund (VRIF), that will return $79.5 million in
unclaimed wagering dividends and on-course wagering taxes to the industry.
The VRIF provides substantial benefits to Victoria’s three racing codes—thoroughbred, harness and greyhound racing—
which, aside from providing sport and entertainment, contribute more than $2.8 billion a year to the Victorian economy.
A significant part of the VRIF ($30 million) is directed to improving racing and training infrastructure.
In February 2014, the redeveloped Moe Racecourse was opened. The VRIF contributed $1.2 million towards the
$4.5 million project, which included track resurfacing, the installation of an automatic irrigation system and construction of
a new starting chute enabling races over 2,400 metres. The VRIF also contributed $131,300 towards a big screen to
enhance the raceday experience for everyone at the track.
Other major projects funded in 2013–14 included:
•
•
•
$1.2 million toward a $6.2 million project for greyhound track development at Traralgon
$319,000 for improved track lighting and cabling upgrades at Victorian harness tracks
more than $800,000 for track upgrades and drainage works at Colac, Kyneton, Mildura and Stawell.
Grassroots racing continued to benefit with over $137,000 of infrastructure funding provided to support the state’s unique
picnic racing circuit. Funding was provided for a range of smaller projects at Woolamai, Mansfield and Dederang.
Work continued on two major developments that received funding through the VRIF. A new grandstand and function
centre will benefit all three racing codes at the Cranbourne Racing Centre and a new racecourse for the Pakenham
Racing Club is well underway at Tynong. This will be the first racecourse built in Victoria since 1976.
Victoria’s breeding industry is worth more than $245 million to the Victorian economy each year. More than 5,500
breeders employ more than 6,000 people in the state’s thoroughbred, harness and greyhound breeding industries and
almost two-thirds of all breeders and staff are located in regional Victoria.
VRIF assistance was provided to support successful owners and breeders schemes and Victorian sales through:
•
•
•
the Victorian Owners & Breeders Incentive Scheme (VOBIS Gold) for thoroughbred racing
Vicbred Platinum for harness racing
Greyhound Owners & Breeders Incentive Scheme (GOBIS) for greyhound racing.
The Raceday Attraction Program is designed to increase on-course attendances at race days and nights by supporting
clubs to engage more effectively with their local communities. In 2013–14, the VRIF provided $1.8 million for 64 raceday
projects. Highlights included Colts and Fillies @ the Flicks, which brought open-air cinema to eight country harness
meetings, and the Leila Rose Foundation girls’ night out, which raised funds to fight rare forms of childhood cancer.
Racing integrity
Throughout the year, the department worked closely with the Victorian racing industry to strengthen integrity. It provided
assistance to the industry-owned Racing Analytical Services to enable it to undertake world-class research into testing for
growth hormones and biological drugs such as erythropoietin (EPO) and their synthetic counterparts. This resulted in the
development of new screening methods for peptide analogues of morphine in horse urine.
VRIF funding of $219,250 was provided for three research projects to promote and support the health, safety and
wellbeing of thoroughbreds. The research by Melbourne University’s Faculty of Veterinary Science in conjunction Racing
Victoria’s Equine Research Program will investigate bone injury resistance in racehorses along with a study of
horseshoes.
Amendments to the Racing Act 1958, which came into effect on 29 January 2014, make it clear that Racing Victoria
stewards have jurisdiction over unlicensed persons in the industry, including commission agents, punters and
veterinarians. The amendments also give the Racing Integrity Commissioner the power to compel witnesses to appear
before inquiries and hand over evidence.
Independent Integrity Councils for each racing code were established. The councils have responsibility for the oversight
of integrity assurance. This reform ensures greater separation between the commerce of racing and critical integrity
services.
44
Case study: Safer racing in Hume region
Plastic racetrack running rails that buckle in a collision were invented and are manufactured in Victoria. They have
been one of most important safety developments in the racing industry in recent years. However, it is not only the big
metropolitan or regional tracks that benefit. Two picnic tracks in the department’s Hume region—Alexandra and
Yea—this year received assistance of $73,000 from the Victorian Racing Industry Fund to install 3,800 metres of the
life-saving rails.
45
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Liquor and gambling compliance activities Victorian Commission
for Gaming and Liquor Regulation (VCGLR)
number
25,000
25,752
nm
nm
Liquor and gambling licensing activities (VCGLR)
number
43,000
46,574
nm
nm
Liquor and gambling information and advice (VCGLR)
number
128,000
131,620
nm
nm
Office of Liquor, Gaming and Racing briefings processed
number
700
715
759
876
Racing industry development initiatives delivered
number
7
7
7
7
Racing matters processed (including licences, permits, appeals,
registrations and grant applications)
number
274
288
284
297
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
per cent
80.0
84.0
nm
nm
Liquor and gambling information and advice responsiveness
(VCGLR)
per cent
96.0
98.4*
nm
nm
Liquor and gambling compliance inspection outcomes provided
within set timeframes (VCGLR)
per cent
98.0
98.0*
nm
nm
Gamblers Help Service clients who receive a service within five
days of referral
per cent
95.0
100.0*
99.0
97.0
3
$ million
109.1
100.9
105.0
98.2
4
Performance measures
2011–12
actual Notes
Quantity
Performance measures continued
1
2
2011–12
actual Notes
Quality
Liquor and gambling licensing client satisfaction (VCGLR)
Timeliness
Cost
Total output cost
* 2013–14 actuals are an annual average over the reporting year.
Commentary on performance
1. The actual is above target due to an increase in demand for Proof of Age cards.
2. The actual is above target due to a larger than expected number of Victorian Racing Industry Fund (VRIF) funding applications received
during the 2013–14 reporting year, particularly during the June quarter.
3. The actual is above target due to the resolution of system processing issues and the embedding of consistent data recording practices
throughout the Gambler’s Help Service delivery agencies.
4. The actual expenditure is below target due to a recashflow of Racing Industry Development grants into future years. Timing of certain
projects funded from the Regional Racing Infrastructure Fund will extend beyond the 2013–14 financial year in which they were initially
anticipated to occur. While funds are committed, the precise timing of claims is dependent upon receipt of appropriate documentation indicating
project stages completed in line with Ministerial approval.
46
Promoting and monitoring integrity within the public sector
Output group
• Public sector integrity
Output
• Anti-corruption and public sector integrity
• Freedom of Information Commissioner
Overview
The Attorney-General has legislative responsibility for Acts of Parliament that establish Victoria’s integrity regime.
These agencies comprise the Victorian Inspectorate, the Independent Broad-based Anti-corruption Commission
(IBAC), the Public Interest Monitor and the Freedom of Information Commissioner (FOI Commissioner). The
department provides the Attorney-General with related administrative and legal policy support.
Three joint investigatory committees of the Parliament of Victoria are responsible for overseeing the Victorian
Inspectorate, the IBAC and the FOI Commissioner:
•
•
•
the IBAC Committee monitors and reviews the performance of the duties and functions of the Victorian
Inspectorate and IBAC
the Accountability and Oversight Committee monitors and reviews the performance of the functions and exercise of
the powers of the FOI Commissioner, and the Victorian Inspectorate in relation to Ombudsman matters
the Public Accounts and Estimates Committee oversees the performance of the Victorian Inspectorate in respect of
officers of the Victorian Auditor General’s Office.
Output: Anti-corruption and public sector integrity
This output provides for the activities of the IBAC, established to prevent public sector corruption and educate the
public sector and community at large about corruption and its detrimental impact. IBAC has functions and powers to
expose and investigate allegations of serious corrupt conduct by public bodies or officers, and to investigate
allegations of police personnel misconduct.
Key initiatives
Victorian Inspectorate
The Victorian Inspectorate Act 2011 came into effect on 10 February 2013 and established a new entity with an
oversight role in relation to:
•
the Office of the Chief Examiner
•
Independent Broad-based Anti-corruption Commission
•
officers of the Victorian Auditor-General
•
officers of the Victorian Ombudsman
•
the Public Interest Monitor.
The Victorian Inspectorate monitors compliance by those integrity bodies with relevant laws and obligations,
particularly in relation to their use of coercive powers and compliance with procedural fairness requirements. In
addition, the inspectorate investigates complaints about those integrity bodies and may also conduct investigations
on its own motion. Robin Brett QC started his role as the Victorian Inspector on 1 January 2013.
Independent Broad-based Anti-corruption Commission (IBAC)
IBAC is Victoria’s first anti-corruption body with jurisdiction across the public sector. Stephen O’Bryan QC commenced
as the inaugural permanent IBAC Commissioner on 1 January 2013 and the office commenced full operations on 10
February 2013.
The IBAC’s functions are to:
•
identify, expose and investigate serious corrupt conduct and police personnel misconduct
•
assist the public sector to increase capacity to prevent corrupt conduct and police personnel misconduct by
providing advice training and education services
•
provide information and education services to the community about the detrimental effects of corruption and police
personnel misconduct and ways in which to assist in prevention.
The IBAC has jurisdiction to investigate serious corrupt conduct in the public sector, including by member of
parliament, ministerial or parliamentary adviser, parliamentary officer, councillor or council staff, judge, public
prosecutor or consultant to government.
47
In April 2014, IBAC provided a Special Report to Parliament on its first full year of operation and identified a number
of opportunities for improvement to its legislation. The Victorian Government has announced that it will introduce a
Bill to respond to those suggestions and the department is developing legislation.
Public Interest Monitor
The Principal Public Interest Monitor is Brendan Murphy QC.
When a court or tribunal hears an application by a law enforcement agency seeking to exercise coercive powers, the
Public Interest Monitor may appear in the public interest to test the evidence and arguments relied upon by the
agency. Agencies making such applications are obliged to inform the Public Interest Monitor. Relevant applications by
law enforcement agencies include:
•
•
•
undertaking a covert investigation or seeking a covert search warrant
seeking a telecommunication intercept
seeking a preventative detention order.
The Public Interest Monitor asks why applications are being sought, tests the sufficiency and content of the information
provided by law enforcement agencies and makes a submission on whether an application should be granted. Most
applications are made by Victoria Police.
Judicial Commission Bill
To enhance the integrity of Victoria’s judiciary (not part of the ‘public sector’), the Judicial Commission Bill was introduced
into parliament in June 2014, following extensive consultation with the courts and VCAT. The Bill establishes the Judicial
Commission, which will receive complaints about the conduct and capacity of judicial officers and members of VCAT.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual*
number
70
74
72
nm
per cent
>90.0
96.7*
98.9
nm
Proportion of complaints or notifications received and
assessed within 60 days
per cent
>75.0
91.5*
nm
nm
Proportion of IBAC investigations completed within 12 months
per cent
>60.0
100.0*
nm
nm
$ million
48.8
31.3
28.1
25.4
Performance measures#
2011–12
actual Notes
Quantity
Corruption prevention initiatives delivered by Independent
Broad-based Anti-corruption Commission (IBAC)
1
Quality
Recipients of corruption prevention initiatives satisfied
Timeliness
Cost
Total output cost
2
* The 2013–14 actual is an annual average over the reporting year.
# The IBAC became fully operational on 10 February 2013; performance results for 2012–13 cover only part of the year.
Commentary on performance
1 The actual is above target due to the development and introduction of a new education program. Given the unanticipated demand for this
program, more sessions have been added than were originally planned.
2 The actual expenditure is below target due to the recashflow of funds and carryover into 2014–15 for the Independent Broad-based AntiCorruption Commission (IBAC). The level of investigations increased in the latter part of the 2013–14 financial year and several of these
investigations will carry over into 2014–15, including those with the first IBAC public hearings.
Output: Freedom of Information Commissioner
The Freedom of Information (FOI) Commissioner plays an important role in promoting the object and operations of the
Freedom of Information Act 1982 (FOI Act) by handling reviews and complaints, monitoring compliance with the FOI
Act and providing advice, education and guidance to the public and agencies in relation to the commissioner’s
functions.
48
In May 2014, the Victorian Government announced its intention to establish new Assistant FOI Commissioner positions to
further strengthen the capacity of the office to undertake reviews and complaints workload. The department developed
the necessary legislative amendments.
Output results
Unit of
measure
2013–14
target
2013–14
actual
2012–13
actual
Reviews completed by FOI Commissioner
number
400
399
190
nm
Complaints completed by FOI Commissioner
number
150
249
98
nm
1
Education and training activities delivered by FOI
Commissioner
number
20
15
9
nm
2
high satisfactory
high
nm
Performance measures#
2011–12
actual Notes
Quantity
Quality
Satisfaction with services performed (FOI Commissioner)
level
Timeliness
Statutory and other agreed timelines met (FOI Commissioner)
per cent
100.0
74.9
89.0
nm
3
$ million
3.5
3.3
nm
nm
4
Cost
Total output cost
#
The office of the FOI Commissioner became operational on 1 December 2012; performance results for 2012–13 cover only part of the year.
Commentary on performance
1. The actual is above target due to unexpected demand, leading to a very high intake of complaints.
2. The actual is below target due to the resources available to the FOI Commissioner being focused on completing reviews and complaints in
response to applicant expectations, managing the high intake of reviews and complaints and the increasing complexity of review applications.
3. The actual is below target due to resource pressures resulting from the higher than expected volume of complaints, as well as an increase in
the number of complex review applications received.
4. The actual expenditure is below target due to corporate cost allocation methodology.
49
Five-year financial summary and review of financial conditions
2013(i)
$’000
2014
$’000
2012(ii)
$’000
2011(ii)
$’000
2010
$’000
Revenue from Government
5,226,476
4,294,634
4,091,615
3,970,828
3,636,194
Total income from transactions
5,316,201
4,400,704
4,230,760
4,127,710
3,765,789
(5,278,147)
(4,359,460)
(4,190,471)
(4,124,315)
(3,791,343)
Net result from transactions
38,054
41,244
40,289
3,395
(25,554)
Net result for the period
50,295
42,623
37,328
3,552
(26,668)
117,464
85,508
119,382
103,982
45,363
Total assets
4,169,837
3,809,517
3,449,383
3,357,529
2,494,743
Total liabilities
1,454,425
1,313,404
1,053,115
1,070,160
1,060,810
Total expenses from transactions
Net cash flow from operating activities
(i) The 2012–13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee Benefits. See
note 1(F) in the notes to the financial statements.
(ii) The 2011–12 financial year and the 2010–11 comparative figures have been adjusted to reflect the reclassification of the appropriation that
was previously recognised as a grant paid to the Victorian Law Reform Commission.
Revenue from Government and total income from transactions increased in 2013–14 due to:
•
Introduction of the new Fire Services Property Levy which was appropriated to the department and replaced the
property owners contribution previously received directly by the Country Fire Authority (CFA) and Metropolitan Fire
and Emergency Services Board (MFESB) from the insurance industry.
•
The funding of new initiatives which commenced during the year, as well as incremental impacts of initiatives in
previous financial years which are now fully operational, particularly additional prison beds and payments to Victoria
Police for additional police officers and protective services officers (PSO’s).
•
Additional indexation on base funding for increased salary costs to maintain the ongoing services and programs for
the department and its agencies.
Total expenses from transactions increased in 2013–14 due to:
•
Additional grant funding passed on to CFA and MFB as a result of the introduction of the Fire Services Property Levy.
•
Continued investment in Justice system infrastructure including prisons, courts and additional frontline Victoria Police
members.
•
An increase in capital investment costs following the funding of new initiatives.
The increase in the net result for 2013–14 was mainly due to:
•
An improvement in the performance of the department’s trust funds, in particular the Victorian Property Fund and the
Domestic Builders Fund.
Net cash flow from operating activities increased in 2013–14 due to:
•
Increased trust revenue, provisions and trade creditors relating to operating activities.
Total assets increased in 2013–14 due to:
•
Increased capital works in progress, including the construction of additional prison beds across the system and the
redevelopment of the State Coronial Services Centre at Southbank.
Detailed financial information about the performance of each of the department’s output activities is contained in note 2 to
the financial statements.
In general, delivery of services by the output activities of the department were within defined budgetary objectives. A
comparison of budget and actual financial statements is contained under Budget Portfolio Outcomes.
50
Disclosure of grants and other transfers
The department has provided assistance to certain companies and organisations. Financial assistance provided in 201314 was as follows:
Organisation
($’000)
Policing
Victoria Police
2,275,790
Sub total
2,275,790
Infringements and enhancing community safety
Community support groups
5,833
Local councils
5,947
Other
2,448
Sub total
14,228
Court Services
Judicial College of Victoria
2,206
Community support groups
1,457
Other
Sub total
389
4,052
Supporting legal processes and law reform
Office of Public Prosecutions
57,908
Sentencing Advisory Council
1,681
Victoria Legal Aid
127,390
Victorian Institute of Forensic Medicine
28,223
Community support groups
17,700
Other
Sub total
3,000
235,902
Personal identity, individual rights and participation in civic life
Office of the Victorian Privacy Commissioner
2,040
51
Organisation
($’000)
Victorian Electoral Commission
23,062
Victorian Equal Opportunity and Human Rights Commission
Community support groups
Sub total
7,956
104
33,162
Enforcing and managing correctional orders
Community support groups
4,809
Other
1,477
Sub total
6,286
Supporting the State’s fire and emergency services
Country Fire Authority
Emergency Services Telecommunications Authority
Metropolitan Fire and Emergency Services Board
Victoria State Emergency Service
467,023
14,450
329,695
46,975
Ambulance Victoria
9,756
Life Saving Victoria
6,144
Local councils
1,624
Community support groups
1,148
Other
8,918
Sub total
885,733
Industry regulation and support
Victorian Commission for Gambling and Liquor Regulation
Victorian Responsible Gambling Foundation
Racing clubs
34,502
689
10,186
Community support groups
5,337
Other
1,596
52
Organisation
($’000)
Sub total
52,310
Public sector integrity
Independent Broad-based Anti-corruption Commission
Victorian Inspectorate
Other
Sub total
Total
27,353
2,418
2
29,773
3,537,236
53
Contents
ACCOUNTABLE OFFICER’S AND CHIEF FINANCE AND ACCOUNTING OFFICER’S DECLARATION ........... 55
INDEPENDENT AUDITORS REPORT ................................................................................................................................. 56
COMPREHENSIVE OPERATING STATEMENT ............................................................................................................... 58
BALANCE SHEET .................................................................................................................................................................... 60
STATEMENT OF CHANGES IN EQUITY ............................................................................................................................ 62
CASH FLOW STATEMENT.................................................................................................................................................... 63
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .............................................................................. 65
NOTE 2. DEPARTMENTAL (CONTROLLED) OUTPUTS ................................................................................................ 80
NOTE 3. ADMINISTERED (NON-CONTROLLED) ITEMS .............................................................................................. 87
NOTE 4. INCOME FROM TRANSACTIONS ....................................................................................................................... 90
NOTE 5. EXPENSES FROM TRANSACTIONS ................................................................................................................... 91
NOTE 6. OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT .......................................................................... 94
NOTE 7. RESTRUCTURING OF ADMINISTRATIVE ARRANGEMENTS .................................................................... 95
NOTE 8. RECEIVABLES ......................................................................................................................................................... 96
NOTE 9. INVESTMENTS AND OTHER FINANCIAL ASSETS ........................................................................................ 98
NOTE 10. INVENTORIES ........................................................................................................................................................ 99
NOTE 11. NON-FINANCIAL PHYSICAL ASSETS CLASSIFIED AS HELD FOR SALE ............................................ 100
NOTE 12. PROPERTY, PLANT AND EQUIPMENT ......................................................................................................... 101
NOTE 13. INTANGIBLE ASSETS ........................................................................................................................................ 107
NOTE 14. PAYABLES ............................................................................................................................................................ 108
NOTE 15. BORROWINGS ..................................................................................................................................................... 109
NOTE 16. PROVISIONS ......................................................................................................................................................... 110
NOTE 17. SUPERANNUATION ............................................................................................................................................ 113
NOTE 18. LEASES .................................................................................................................................................................. 114
NOTE 19. COMMITMENTS FOR EXPENDITURE .......................................................................................................... 116
NOTE 20. CONTINGENT ASSETS AND CONTINGENT LIABILITIES ....................................................................... 119
NOTE 21. FINANCIAL INSTRUMENTS ............................................................................................................................. 120
NOTE 22. CASH FLOW INFORMATION ........................................................................................................................... 130
NOTE 23. PHYSICAL ASSET REVALUATION SURPLUS.............................................................................................. 132
NOTE 24. SUMMARY OF COMPLIANCE WITH ANNUAL PARLIAMENTARY APPROPRIATIONS AND
SPECIAL APPROPRIATIONS .............................................................................................................................................. 133
NOTE 25. EX-GRATIA EXPENSES ..................................................................................................................................... 138
NOTE 26. ANNOTATED INCOME AGREEMENTS ......................................................................................................... 138
NOTE 27. TRUST ACCOUNT BALANCES ......................................................................................................................... 140
NOTE 28. RESPONSIBLE PERSONS .................................................................................................................................. 145
NOTE 29. REMUNERATION OF EXECUTIVES AND PAYMENTS TO OTHER PERSONNEL............................... 147
NOTE 30. REMUNERATION OF AUDITORS.................................................................................................................... 149
NOTE 31. SUBSEQUENT EVENTS ...................................................................................................................................... 149
NOTE 32. GLOSSARY OF TERMS AND STYLE CONVENTION .................................................................................. 149
54
Accountable Officer’s and Chief Finance and Accounting Officer’s declaration
The attached financial statements for the Department of Justice have been prepared in accordance with Standing
Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting
Standards including Interpretations and other mandatory professional reporting requirements.
We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet,
statement of changes in equity, cash flow statement and notes forming part of the financial statements, presents fairly the
financial transactions during the year ended 30 June 2014 and financial position of the department as at 30 June 2014.
At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial
statements to be misleading or inaccurate.
We authorise the attached financial statements for issue on 4 September 2014.
Shaun Condron
Chief Finance and Accounting Officer
Department of Justice
Melbourne
4 September 2014
Greg Wilson
Secretary
Department of Justice
Melbourne
4 September 2014
55
VAGO
Victorian Auditor-General’s Office
level 24, 35 Collins Stroot
Melbourne VIC 3000
Telephone 61 3 ·a601 7000.
Facsimile 61 3 8601 7910
Email commentsOaudit.vic.gOv.au·
Webslte www.audlt.vlc.gov.au
Independent Auditors Report
To the Secretary, Department of Justice
The Financial Report
The accompanying financial report for the year ended 30 June 2014 of the Department of Justice which comprises the
comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement, notes
comprising a summary of significant accounting policies and other explanatory information, and the accountable officer’s
and chief finance and accounting officer’s declaration has been audited.
The Secretary’s Responsibility for the Financial Report
The Secretary of the Department of Justice is responsible for the preparation and fair presentation of the financial report
in accordance with Australian Accounting Standards, and the financial reporting requirements of the Financial
Management Act 1994, and for such internal control as the Secretary determines is necessary to enable the preparation
and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error.
Auditor ‘s Responsibility
As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report based on the audit,
which has been conducted in accordance with Australian Auditing Standards. Those standards require compliance with
relevant ethical requirements relating to audit engagements and that the audit be planned and performed to obtain
reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
report. The audit procedures selected depend on judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, consideration is
given to the internal control relevant to the entity’s preparation and fair presentation of the financial report in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of accounting estimates made by the Secretary. as well as evaluating the overall
presentation of the financial report.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Independence
The Auditor-General’s independence is established by the Constitution Act 1975. The Auditor General is not subject to
direction by any person about the way in which his powers and responsibilities are to be exercised. In conducting the
audit, the Auditor-General, his staff and delegates complied with all applicable independence requirements of the
Australian accounting profession.
Opinion
In my opinion, the financial report presents fairly, in all material respects, the financial position of the Department of
Justice as at 30 June 2014 and of its financial performance and its cash flows for the year then ended in accordance with
applicable Australian Accounting Standards, and the financial reporting requirements of the Financial Management
Act1994.
Matters Relating to the Electronic Publication of the Audited Financial Report
This auditor’s report relates to the financial report of the Department of Justice for the year ended 30 June 2014 included
both in the Department of Justice’s annual report and on the website. The Secretary is responsible for the integrity of the
Department of Justice’s website. I have not been engaged to report on the integrity of the Department of Justice’s
website. The auditor’s report refers only to the subject matter described above. It does not provide an opinion on any
other information which may have been hyperlinked to/from these statements. If users of the finanCial report are
concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the
audited financial report to confirm the information contained in the website version of the financial report.
MELBOURNE
19 September 2014
56
Dr Peter Frost
Acting Auditor-General
57
Comprehensive operating statement
for the financial year ended 30 June 2014
Note
2014
2013
$’000
$’000
Income from transactions
Output appropriations
24(a)
5,092,933
4,156,875
Special appropriations
24(b)
133,543
137,759
Interest
4(a)
35,109
41,912
Grants
4(b)
10,392
7,597
Other income
4(c)
44,224
56,561
Total income from transactions
5,316,201
4,400,704
Expenses from transactions
Employee expenses(i)
5(a)
(765,392)
(748,389)
Depreciation and amortisation
5(b)
(109,354)
(99,381)
Interest expense
5(c)
(32,096)
(33,439)
Grants and other transfers
5(d)
(3,537,236)
(2,711,992)
(129,213)
(121,288)
Capital asset charge
Supplies and services
5(e)
Total expenses from transactions(i)
Net result from transactions (net operating balance) (i)
(704,856)
(644,971)
(5,278,147)
(4,359,460)
38,054
41,244
Other economic flows included in net result
Net gain/(loss) on non-financial assets(ii)
6(a)
1,730
679
Net gain/(loss) on financial instruments (iii)
6(b)
9,760
(2,322)
Other gains/(losses) from other economic flows
6(c)
751
3,022
Total other economic flows included in net result
12,241
1,379
Net result(i)
50,295
42,623
Other economic flows – other comprehensive income
Items that will not be reclassified to net result
58
Changes in physical asset revaluation surplus
Note
2014
2013
23
(1,600)
(20,745)
Total other economic flows – other comprehensive income
(1,600)
(20,745)
Comprehensive result(i)
48,695
21,878
(i) The 2012-13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee benefits
(refer to note 1(F)).
(ii) Includes realised gains/(losses) from impairments and disposal of physical assets.
(iii) Includes bad and doubtful debts from other economic flows, and realised and unrealised gains/(losses) from financial instruments.
The above comprehensive operating statement should be read in conjunction with the accompanying notes.
59
Balance sheet
as at 30 June 2014
Note
2014
2013
$’000
$’000
22(a)
250,515
233,940
Receivables
8
740,030
684,974
Investments and other financial assets
9
249,092
226,702
Assets
Financial assets
Cash and deposits
Total financial assets
1,239,637
1,145,616
Non-financial assets
Prepayments
5,354
5,423
Inventories
10
7,513
6,053
Non-financial physical assets classified as held for sale
11
1,879
1,300
Property, plant and equipment
12
2,823,623
2,548,596
Intangible assets
13
91,831
102,529
Total non-financial assets
2,930,200
2,663,901
Total assets
4,169,837
3,809,517
Liabilities
Payables
14
928,636
782,914
Borrowings
15
321,020
340,018
Provisions(i)
16
204,769
190,472
Total liabilities(i)
1,454,425
1,313,404
Net assets(i)
2,715,412
2,496,113
Equity(ii)
Accumulated surplus/(deficit)(i)
674,716
624,421
60
Physical asset revaluation surplus
Note
2014
2013
23
957,633
959,233
Contributed capital
Net worth(i)
Commitments for expenditure
19
Contingent assets and contingent liabilities
20
1,083,063
912,459
2,715,412
2,496,113
(i) The 2012-13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee benefits
(refer to note 1(F)).
(ii) Refer to the Statement of Changes in Equity for movements in the equity amounts.
The above balance sheet should be read in conjunction with the accompanying notes.
61
Statement of changes in equity
for the financial year ended 30 June 2014
($’000)
Note
Balance at 1 July 2012
Physical
asset Accumulated
revaluation surplus/(defici Contributed
surplus
t)(i)
Capital
Total
979,978
581,798
834,732
2,396,508
0
42,623
0
42,623
(20,745)
0
0
(20,745)
Transactions with the state in its capacity as owners
0
0
119,264
119,264
Capital contribution passed onto agencies within the Justice
Portfolio
0
0
(14,925)
(14,925)
Equity transfer within government
0
0
(27,234)
(27,234)
Administrative restructure – net assets transferred
0
0
622
622
Balance at 30 June 2013
959,233
624,421
912,459
Net result for the year
0
50,295
0
50,295
(1,600)
0
0
(1,600)
Transactions with the state in its capacity as owners
0
0
267,246
267,246
Capital contribution passed onto agencies within the Justice
Portfolio
0
0
(67,945)
(67,945)
Equity transfer within government
0
0
(29,341)
(29,341)
0
0
644
644
957,633
674,716
1,083,063
Net result for the year
Other comprehensive income for the year
23
Other comprehensive income for the year
Administrative restructure – net assets received
Balance at 30 June 2014
7
2,496,113
2,715,412
(i) The 2012-13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee benefits
(refer to note 1(F)).
The above statement of changes in equity should be read in conjunction with the accompanying notes.
62
Cash flow statement
for the financial year ended 30 June 2014
Note
2014
2013
$’000
$’000
5,207,831
4,272,164
10,392
7,597
102,330
87,875
32,532
43,528
6,509
0
Other receipts
36,985
30,068
Total receipts
5,396,579
Cash flows from operating activities
Receipts
Receipts from government
Receipts from other entities
Goods and services tax recovered from the ATO(i)
Interest received
Dividends received
4,441,232
Payments
Payments of grants and other transfers
(3,537,236)
(2,711,989)
Payments to suppliers and employees
(1,580,570)
(1,489,008)
(129,213)
(121,288)
(32,096)
(33,439)
Capital asset charge payments
Interest and other costs of finance paid
Total payments
Net cash flows from/(used in) operating activities
22(b)
(5,279,115)
(4,355,724)
117,464
85,508
(11,393)
(228,304)
0
0
(247,030)
(141,686)
5,927
6,317
Cash flows from investing activities
Payments for investments
Proceeds from sale of investments
Purchases of non-financial assets
Sales of non-financial assets
Net cash flows from/(used in) investing activities
(252,496)
(363,673)
63
Note
2014
2013
Owner contributions by State Government
267,246
119,264
Capital contribution passed on to agencies with government
(67,945)
(14,925)
Equity transfers within government
(28,697)
(26,612)
Repayment of borrowings and finance leases
(18,997)
(21,564)
Net cash flows from/(used in) financing activities
151,607
56,163
16,575
(222,002)
233,940
455,942
Cash flows from financing activities
Net increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of financial year
Cash and cash equivalents at end of financial year
22(a)
250,515
233,940
Reconciliation of non-cash transactions are disclosed in note 22(b).
(i) GST received from ATO is presented on a net basis.
The above cash flow statement should be read in conjunction with the accompanying notes.
64
Notes to the financial statements for the financial year ended 30 June 2014
Note 1. Summary of significant accounting policies
These annual financial statements represent the audited general purpose financial statements for the Department of
Justice (the department) for the period ended 30 June 2014. The purpose of the report is to provide users with
information about the department’s stewardship of resources entrusted to it.
(A) Statement of compliance
These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994
(FMA) and applicable Australian Accounting Standards (AAS), including Interpretations, issued by the Australian
Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of
the AASB 1049 Whole of Government and General Government Sector Financial Reporting.
Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies
the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is
reported.
To gain a better understanding of the terminology used in this report, a glossary of terms and style conventions can be
found in note 32.
These annual financial statements were authorised for issue by the Secretary of the Department of Justice on 4 September
2014.
(B) Basis of accounting preparation and measurement
The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets,
liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when
cash is received or paid. The only exception is for special appropriation revenue, which is recognised on a cash basis
when the amount appropriated for a specific purpose is received by the department.
Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based on professional
judgements derived from historical experience and various other factors that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods
that are affected by the revision. Judgements and assumptions made by management in the application of AASs that
have significant effects on the financial statements and estimates relate to:
•
•
•
•
the fair value of land, buildings, plant and equipment (refer to note 1(M))
superannuation expense (refer to note 1(H))
assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future
salary movements and future discount rates (refer to note 1(N))
assumptions for other provisions based on updated mortality and financial (discount rate and indexation) assumptions
(refer to note 1(N)).
These financial statements are presented in Australian dollars, and prepared in accordance with the historical cost
convention except for:
•
•
non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value
at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses.
Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair
value.
managed investment schemes after initial recognition, which are measured at fair value with changes reflected in the
comprehensive operating statement (fair value through profit or loss).
Consistent with AASB 13 Fair Value Measurement, the department determines the policies and procedures for both
recurring fair value measurements such as property, plant and equipment, and financial instruments and for non-recurring
fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of
AASB 13 and the relevant Financial Reporting Directions.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as
a whole:
•
•
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.
65
•
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
For the purpose of fair value disclosures, the department has determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
In addition, the department determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting period.
The Valuer-General Victoria (VGV) is the department’s independent valuation agency.
The department, in conjunction with VGV, monitors changes in the fair value of each asset and liability through relevant
data sources to determine whether revaluation is required.
(C) Reporting entity
The financial statements cover the department as an individual reporting entity. The department is a government department
of the State of Victoria, established pursuant to an order made by the Premier under the Administrative Arrangements Act
1983.
The department is an administrative agency acting on behalf of the Crown.
The financial statements include all the controlled activities of the department.
A description of departmental outputs undertaken during the year is included in note 2.
The office of the Road Safety Camera Commissioner has been consolidated into the department’s financial statements
pursuant to a determination, dated 16 July 2012, made by the Minister for Finance under section 53(1)(b) of the Financial
Management Act 1994 (Act No.18).
The office of the Fire Services Levy Monitor has been consolidated into the department’s financial statements pursuant to
a determination, dated 23 May 2013, made by the Minister for Finance under section 53(1)(b) of the Financial
Management Act 1994 (Act No.18).
The office of the Freedom of Information Commissioner has been consolidated into the department’s financial statements
pursuant to a determination, dated 10 July 2013, made by the Minister for Finance under section 53(1)(b) of the Financial
Management Act 1994 (Act No.18).
A number of entities within the Justice Portfolio, which report separately, receive regular grants or transfer payments from
the department (refer note 5). These are:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Country Fire Authority
Emergency Services Telecommunications Authority
Independent Broad-based Anti-corruption Commission
Judicial College of Victoria
Metropolitan Fire and Emergency Services Board
Office of Public Prosecutions
Office of the Victorian Privacy Commissioner
Sentencing Advisory Council
Victorian Inspectorate
Victoria Legal Aid
Victoria Police
Victorian Commission for Gambling and Liquor Regulation
Victorian Electoral Commission
Victorian Equal Opportunity and Human Rights Commission
Victorian Institute of Forensic Medicine
Victorian Responsible Gambling Foundation
Victoria State Emergency Service.
The following organisations also form part of the Justice Portfolio and they report separately but do not receive regular
grants or transfer payments from the department:
•
•
•
•
•
•
Greyhound Racing Victoria
Harness Racing Victoria
Legal Practitioners Liability Committee
Legal Services Board
Legal Services Commissioner
Professional Standards Council
66
•
•
Residential Tenancies Bond Authority
Victorian Law Reform Commission.
A description of the nature of the department’s operations and its principal activities is included in the report of
operations, which does not form part of these financial statements.
Objectives and funding
The department’s key objectives:
•
•
•
•
•
•
•
•
improving community safety through policing, law enforcement and prevention activities
improving the efficiency of court processes
supporting the rule of law
protecting individual rights and encouraging community participation
promoting community safety through effective management of prisoners and offenders and provision of opportunities
for rehabilitation and reparation
minimising injury and property loss through a coordinated and integrated emergency response
promoting responsible industry behaviour and an informed community through effective regulation, education,
monitoring and enforcement
promoting and monitoring integrity in the public sector.
The department is predominantly funded by accrual based parliamentary appropriations for the provision of outputs.
Outputs of the department
Information about the department’s output activities, and the expenses, income, assets and liabilities, which are reliably
attributable to those output activities, is set out in the output activities schedule (note 2). Information about expenses,
income, assets and liabilities administered by the department are given in the schedule of administered income and
expenses and the schedule of administered assets and liabilities (note 3).
(D) Basis of consolidation
In accordance with AASB 127 Consolidated and Separate Financial Statements:
•
•
The financial statements of the department incorporate assets and liabilities of all reporting entities controlled by the
department as at 30 June 2014, and their income and expenses for that part of the reporting period in which control existed.
The financial statements exclude bodies within the department’s portfolio that are not controlled by the department
and therefore are not consolidated. Bodies and activities that are administered (see explanation below under
administered items) are also not controlled and not consolidated.
Where control of an entity is obtained during the financial period, its results are included in the comprehensive operating
statement from the date on which control commenced. Where control ceases during a financial period, the entity’s
results are included for that part of the period in which control existed. Where dissimilar accounting policies are adopted
by entities and their effect is considered material, adjustments are made to ensure consistent policies are adopted in
these financial statements.
In the process of preparing financial statements for the department, all material transactions and balances between
consolidated entities are eliminated.
Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its
repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the
department.
Administered items
Certain resources are administered by the department on behalf of the state. While the department is accountable for
transactions involving administered items, it does not have the discretion to deploy the resources for its own benefit or the
achievement of the department’s objectives. Accordingly, transactions and balances relating to administered items are
not recognised as departmental income, expenses, assets or liabilities within the body of the financial statements.
Administered income includes taxes, fees and fines. Administered assets include government income earned but yet to
be collected. Administered liabilities include government expenses incurred but yet to be paid.
Except as otherwise disclosed, administered resources are accounted for on an accrual basis using the same accounting
policies adopted for recognition of the departmental items in the financial statements. Both controlled and administered
items of the department are consolidated into the financial statements of the state.
Disclosures related to administered items can be found in note 3.
Funds held in trust
Other trust activities on behalf of parties external to the Victorian Government
The department has responsibility for transactions and balances relating to trust funds on behalf of third parties external
67
to the Victorian Government. Income, expenses, assets and liabilities managed on behalf of third parties are not
recognised in these financial statements as they are managed on a fiduciary and custodial basis, and therefore are not
controlled by the department or the Victorian Government. These transactions and balances are reported in note 27.
Funds under management
Funds under management do not form part of the assets of the department. These funds are administered by the
department on behalf of various beneficiaries. Funds may be received in the form of bail monies and payments by the
courts and Victims of Crime Assistance Tribunal (VOCAT). These receipts, and any related expenditure, are excluded
from the income, expenditure and assets of the department, which is acting as Trustee. These funds under management
are disclosed in note 27(b) Third party funds under management.
(E) Scope and presentation of financial statements
Comprehensive operating statement
The comprehensive operating statement comprises three components, being ‘net result from transactions’ (or termed as
‘net operating balance’), ‘other economic flows included in net result’, as well as ‘other economic flows – other
comprehensive income’. The sum of the former two represents the net result.
The net result is equivalent to profit or loss derived in accordance with Australian Accounting Standards (AAS).
This classification is consistent with the whole-of-government reporting format and is allowed under AASB 101
Presentation of Financial Statements.
‘’Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions
between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where
the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by
the asset. Taxation is regarded as mutually agreed interactions between the government and taxpayers. Transactions
can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the financial
consideration is cash.
‘Other economic flows’ are changes arising from market re-measurements. They include gains and losses from
disposals; revaluations and impairments of non-financial physical and intangible assets; and fair value changes of
financial instruments.
Balance sheet
Assets and liabilities are presented in liquidity order, with assets aggregated into financial assets and non-financial
assets.
Current assets and liabilities, and non-current assets and liabilities (those expected to be recovered or settled beyond 12
months) are disclosed in the notes, where relevant.
Statement of changes in equity
The statement of changes in equity presents reconciliations of non-owner and owner changes in equity from opening
balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows
separately changes due to amounts recognised in the ‘comprehensive result’ and amounts recognised in ‘other economic
flows – other movements in equity’ related to ‘transactions with owner in its capacity as owner’.
Cash flow statement
Cash flows are classified according to whether they arise from operating, investing, or financing activities. This
classification is consistent with requirements under AASB 107 Statement of cash flows.
For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included
as borrowings on the balance sheet.
Rounding
Amounts in the financial statements (including the notes) have been rounded to the nearest thousand dollars, unless
otherwise stated. Figures in the financial statements may not equate due to rounding.
(F) Changes in accounting policies
Subsequent to the 2012-13 reporting period, the following new and revised Standards, and Financial Reporting Directions
have been adopted in the current period with their financial impact detailed as below.
Financial Reporting Direction (FRD) 11A Disclosure of Ex-gratia Expenses
The definition of ex-gratia expenses changed under Financial Reporting Direction (FRD) 11A Disclosure of Ex-gratia
Expenses, which applied for the first time in the 2013-14 financial year.
AASB 13 Fair Value Measurement
AASB 13 establishes a single source of guidance for all fair value measurements. AASB 13 does not change when a
department is required to use fair value, but rather provides guidance on how to measure fair value under Australian
Accounting Standards when fair value is required or permitted. The department has considered the specific requirements
68
relating to highest and best use, valuation premise, and principal (or most advantageous) market. The methods,
assumptions, processes and procedures for determining fair value were revisited and adjusted where applicable. In light
of AASB 13, the department has reviewed the fair value principles as well as its current valuation methodologies in
assessing the fair value, and the assessment has not materially changed the fair values recognised.
However, AASB 13 has predominantly impacted the disclosures of the department. It requires specific disclosures about
fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other
standards, including AASB 7 Financial Instruments: Disclosures.
The disclosure requirements of AASB 13 apply prospectively and need not be applied in comparative information before
first application. Consequently, the 2012-13 comparatives of these disclosures have not been provided, except for
financial instruments, of which the fair value disclosures are required under AASB 7 Financial Instruments: Disclosures.
AASB 119 Employee Benefits
In 2013-14, the department has applied AASB 119 Employee benefits and the related consequential amendments for the
first time.
The revised AASB 119 changes the accounting for defined benefit plans and termination benefits. The most significant
change relates to the accounting for changes in defined benefit obligation and plan assets. As the current accounting
policy is for the Department of Treasury and Finance to recognise and disclose the state’s defined benefit liabilities in its
financial statements, changes in defined benefit obligations and plan assets will have limited impact on the department.
The revised standard also changes the definition of short-term employee benefits. These were previously benefits that
were expected to be settled within twelve months after the end of the reporting period in which the employees render the
related service, however, short-term employee benefits are now defined as benefits expected to be settled wholly within
twelve months after the end of the reporting period in which the employees render the related service. As a result, some
of the accrued annual leave balances which were previously classified by the department as short-term employee
benefits would now be classified as long-term employee benefits. This has resulted in a change of measurement for the
annual leave provision from an undiscounted to discounted basis.
Comparative amounts for 2012-13 and the related amounts as at 1 July 2012 have been restated in accordance with the
relevant transitional provisions set out in AASB 119. The impact is as follows:
Impact on comprehensive result
2012-13
($’000)
Decrease in employee expense
62
Impact on liabilities and equity
Previously reported
balance 1 July 2012
($’000)
AASB 119
adjustments
($’000)
Restated balance
1 July 2012
($’000)
Employee benefit provision – annual leave(i)
40,022
(185)
39,837
Provision for oncosts
25,448
(55)
25,393
Accumulated surplus
581,558
240
581,798
Previously reported
balance 30 June 2013
($’000)
AASB 119
adjustments
($’000)
Restated balance
30 June 2013
($’000)
Employee benefit provision – annual leave(i)
42,072
(233)
41,839
Provision for oncosts
27,725
(69)
27,656
Accumulated surplus
624,119
302
624,421
(i)
The previously reported balance for the employee benefit provision for annual leave has been adjusted for $2.5 million due to the reclassification
of an amount to other provisions.
(G) Income from transactions
Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can
69
be reliably measured at fair value.
Appropriation income
Appropriated income becomes controlled and is recognised by the department when it is appropriated from the
consolidated fund by the Victorian Parliament and applied to the purposes defined under the relevant appropriations act.
Additionally, the department is permitted under section 29 of the Financial Management Act 1994 to have certain income
annotated to the annual appropriation. The income which forms part of a section 29 agreement is recognised by the
department and the receipts paid into the consolidated fund as an administered item. At the point of income recognition,
section 29 provides for an equivalent amount to be added to the annual appropriation. Examples of receipts which can
form part of a section 29 agreement are Commonwealth specific purpose grants, the proceeds from the sale of assets,
and income from the sale of products and services.
Where applicable, amounts disclosed as income are net of returns, allowances, duties and taxes. All amounts of income
over which the department does not have control are disclosed as administered income in the schedule of administered
income and expenses (see note 3). Income is recognised for each of the department’s major activities as follows:
Output appropriations
Income from the outputs the department provides to government is recognised when those outputs have been delivered
and the relevant minister has certified delivery of those outputs in accordance with specified performance criteria.
Special appropriations
Special appropriation revenue is recognised on a cash basis when the amount appropriated for a specific purpose is
received by the department. Refer to note 24(b) for a listing of special appropriation funding received by the department
and an outline of their specific purposes.
Interest
Interest income includes interest received on bank term deposits and other investments. Interest income is recognised
using the effective interest method which allocates the interest over the relevant period.
Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from
transactions, but are reported either as part of income from other economic flows in the net result or as unrealised gains
and losses taken directly to equity, forming part of the total change in net worth in the comprehensive result.
Grants
Income from grants (other than contribution by owners) is recognised when the department obtains control over the
contribution.
Where such grants are payable into the consolidated fund, they are reported as administered income (refer to note 1(D)
and (J)). For reciprocal grants (i.e. equal value is given back by the department to the provider), the department is
deemed to have assumed control when the department has satisfied its performance obligations under the terms of the
grant. For non-reciprocal grants, the department is deemed to have assumed control when the grant is receivable or
received. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.
Other income
Other income includes income from fines and regulatory fees, dividends from investments, and fair value of assets
received free of charge or for nominal consideration.
Dividends from investments
Dividend income is recognised when the right to receive payment is established.
Fair value of assets received free of charge or for nominal consideration
Contributions of resources received free of charge or for nominal consideration are recognised at their fair value when
control is obtained over them, irrespective of whether these contributions are subject to restrictions or conditions over their
use.
(H) Expenses from transactions
Expenses from transactions are recognised as they are incurred, and reported in the financial year to which they relate.
Employee expenses
These expenses include all costs related to employment including wages and salaries, superannuation, fringe benefits
tax, leave entitlements, redundancy payments and WorkCover premiums.
Superannuation
The amount recognised in the comprehensive operating statement is the employer contributions for members of both
defined benefit and defined contribution superannuation plans that are paid or payable during the reporting period.
The Department of Treasury and Finance (DTF) in their Annual Financial Statements, recognises on behalf of the state
70
as the sponsoring employer, the net defined benefit cost related to the members of these plans. Refer to DTF’s Annual
Financial Statements for more detailed disclosures in relation to these plans.
Depreciation and amortisation
All buildings, plant and equipment and other non-financial physical assets (excluding items under operating leases and
assets held for sale) that have finite useful lives are depreciated. Depreciation is generally calculated on a straight-line
basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. Refer to
note 1(M) for the depreciation policy for leasehold improvements.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting
period, and adjustments made where appropriate.
The following are typical estimated useful lives for the different asset classes for current and prior years.
Asset
Useful life
Buildings (including heritage assets)
2 to 47 years
Leasehold buildings
3 to 17 years
Leasehold improvements
1 to 15 years
Plant and equipment
1 to 21 years
Intangible assets
2 to 7 years
Land and core cultural assets, which are considered to have an indefinite life, are not depreciated. Depreciation is not
recognised in respect of these assets as their service potential has not, in any material sense, been consumed during the
reporting period.
Intangible produced assets with finite useful lives are amortised as an expense from transactions on a systematic
(typically straight-line) basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is,
when it is in the location and condition necessary for it to be capable of operating in the manner intended by
management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are
reviewed at least at the end of each annual reporting period.
Interest expense
Interest expense is recognised in the period in which it is incurred. Refer to glossary of terms and style conventions in
note 32 for an explanation of interest expense items.
Grants and other transfers
Grants and other transfers to third parties (other than contributions to owners) are recognised as an expense in the
reporting period in which they are paid or payable. They include transactions such as: grants, personal benefit payments
made in cash to individuals, other transfer payments made to state owned agencies, local government, and community
groups. Refer to glossary of terms and style conventions in note 32 for an explanation of grants and other transfers.
Capital asset charge
The capital asset charge is calculated on the budgeted carrying amount of applicable non-financial physical assets.
Supplies and services
Supplies and services costs are recognised as an expense in the reporting period in which they are incurred. The
carrying amounts of any inventories held for distribution are expensed when distributed.
Bad and doubtful debts
Refer to note 1(L) Impairment of financial assets.
Fair value of assets and services provided free of charge or for nominal consideration
Contributions of resources provided free of charge or for nominal consideration are recognised at their fair value when
the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the
contributions, unless received from another government department or agency as a consequence of a restructuring of
administrative arrangements. In the latter case, such a transfer will be recognised at its carrying value.
Contributions in the form of services are only recognised when a fair value can be reliably determined and the services
71
would have been purchased if not donated.
The department provides resources and services free of charge to a number of statutory offices and bodies within the
Justice Portfolio. These contributions are not recognised in the financial statements as their fair values can not be reliably
determined and are considered immaterial. Examples of the resources and services that may be provided include the
use of the department’s financial systems such as Oracle Financials, Axiom and payroll systems. Services that may be
provided include cash management, accounts receivable, payroll, general ledger management and in some cases the
provision of IT networks.
Borrowing costs of qualifying assets
In accordance with the paragraphs of AASB 123 Borrowing Costs applicable to not-for-profit public sector entities, the
department continues to recognise borrowing costs immediately as an expense, to the extent that they are directly
attributable to the acquisition, construction or production of a qualifying asset.
(I) Other economic flows included in net result
Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions.
Net gain/(loss) on non-financial assets
Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:
Revaluation gains/(losses) of non-financial physical assets
Refer to note 1(M) Revaluations of non-financial physical assets.
Net gain/(loss) on disposal of non-financial assets
Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is determined by
deducting from the proceeds the carrying value of the asset at that time.
Impairment of non-financial assets
Intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for
impairment (as described below) and whenever there is an indication that the asset may be impaired.
All other assets are assessed annually for indications of impairment, except for non-financial physical assets held for
sale, and assets arising from construction contracts.
If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their
possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written
off as an other economic flow, except to the extent that the write-down can be debited to an asset revaluation surplus
amount applicable to that class of asset.
If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last
impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the
impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior
years.
It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of
the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most
assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount
for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows
expected to be obtained from the asset and fair value less costs to sell.
Refer to note 1(M) in relation to the recognition and measurement of non-financial assets.
Net gain/(loss) on financial instruments
Net gain/(loss) on financial instruments includes:
•
realised and unrealised gains and losses from revaluations of financial instruments at fair value
•
impairment and reversal of impairment for financial instruments at amortised cost (refer to note 1(K))
•
disposals of financial assets.
Revaluations of financial instruments at fair value
Refer to note 1(K) Financial instruments.
Other gains/(losses) from other economic flows
Other gains/(losses) from other economic flows include the gains or losses from:
•
the revaluation of the present value of the long service leave liability due to changes in the bond interest rates
72
•
transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition or
reclassification.
(J) Administered income
Taxes, fines and regulatory fees
The department does not gain control over assets arising from taxes, fines and regulatory fees, consequently no income
is recognised in the department’s financial statements.
Administered income is mainly represented by taxation and fees for gaming, racing and lotteries collected on behalf of
the State by the Victorian Commission for Gambling and Liquor Regulation and fine revenue is recognised upon the issue
of infringement notices. These fines are managed by the Infringement Management and Enforcement Services unit of the
department. The department collects these amounts on behalf of the Crown. Accordingly, the amounts are disclosed as
income in the schedule of Administered Items (see note 3).
Commonwealth grants
The department’s administered grants mainly comprise of funds provided by the Commonwealth to assist the State
Government in meeting general or specific service delivery obligations, primarily for the purpose of aiding in the financing
of the operations of the recipient, capital purposes and/or for on passing to other recipients. The department also
receives grants for on passing from other jurisdictions. The department does not have control over these grants, and the
income is not recognised in the department’s financial statements. Administered grants are disclosed in the schedule of
Administered Items in note 3.
(K) Financial instruments
Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. Due to the nature of the department’s activities, certain financial assets
and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not
meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory
receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not
arise under contract. However, guarantees issued by the Treasurer on behalf of the department are financial
instruments because, although authorised under statute, the terms and conditions for each financial guarantee may
vary and are subject to an agreement.
Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities
that meet the definition of financial instruments in accordance with AASB 132 and those that do not.
The following refers to financial instruments unless otherwise stated.
Categories of non-derivative financial instruments
Loans and receivables
Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an
active market. These assets are initially recognised at fair value plus any directly attributable transaction costs.
Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest
method, less any impairment.
Loans and receivables category includes cash and deposits (refer to note 1(L)), term deposits with maturity greater than
three months, trade receivables and loans, but not statutory receivables.
Financial assets at fair value through profit or loss
Financial assets are categorised as fair value through profit or loss at trade date if they are classified as held for trading
or designated as such upon initial recognition. Financial instrument assets are designated at fair value through profit or
loss on the basis that the financial assets form part of a group of financial assets that are managed by the entity
concerned based on their fair values, and have their performance evaluated in accordance with documented risk
management and investment strategies.
Financial instruments at fair value through profit or loss are initially measured at fair value and attributable transaction
costs are expensed as incurred. Subsequently, any changes in fair value are recognised in the net result as other
economic flows. Any dividend or interest on a financial asset is recognised in the net result from transactions.
Financial liabilities at amortised cost
Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair
value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are
measured at amortised cost with any difference between the initial recognised amount and the redemption value being
recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method.
Financial instrument liabilities measured at amortised cost include all of the department’s contractual payables, deposits
held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or
loss.
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Offsetting financial instruments
Financial instrument assets and liabilities are offset and the net amount presented in the balance sheet when, and only
when, the department concerned has a legal right to offset the amounts and intend either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
Reclassification of financial instruments
Subsequent to initial recognition and under rare circumstances, non-derivative financial instrument assets that have not
been designated at fair value through profit or loss upon recognition, may be reclassified out of the fair value through
profit or loss category, if they are no longer held for the purpose of selling or repurchasing in the near term.
Financial instrument assets that meet the definition of loans and receivables may be reclassified out of the fair value
through profit or loss category into the loans and receivables category, where they would have met the definition of loans
and receivables had they not been required to be classified as fair value through profit or loss. In these cases, the
financial instrument assets may be reclassified out of the fair value through profit or loss category, if there is the intention
and ability to hold them for the foreseeable future or until maturity.
(L) Financial assets
Cash and deposits
Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and highly
liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term
cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and
are subject to insignificant risk of changes in value.
Receivables
Receivables consist of:
•
•
contractual receivables, such as debtors in relation to goods and services, and accrued investment income
statutory receivables, such as amounts owing from the Victorian Government and GST input tax credits recoverable.
Contractual receivables are classified as financial instruments and categorised as loans and receivables (refer to note
1(K) for recognition and measurement). Statutory receivables, are recognised and measured similarly to contractual
receivables (except for impairment), but are not classified as financial instruments because they do not arise from a
contract.
Receivables are subject to impairment testing as described below. A provision for doubtful receivables is recognised
when there is objective evidence that the debts may not be collected, and bad debts are written off when identified.
Investments and other financial assets
Financial assets at fair value through profit or loss
The department classified its managed investment schemes at fair value through profit or loss on initial recognition.
These financial assets are managed and their performance is evaluated on a fair value basis, in accordance with
documented risk management or investment strategy, and information is provided internally to key management
personnel.
Financial assets held at fair value through profit or loss are measured initially at fair value excluding any transaction costs
that are directly attributable to the acquisition or issue of the financial asset. Subsequent to initial recognition, all
instruments held at fair value through profit or loss are measured at fair value with any resultant gain / (loss) recognised
in the net result as other economic flows.
Loans and receivables
The department classifies its investments in term deposits with a maturity of greater than 3 months as loans and
receivables.
Any dividend or interest earned on the financial asset is recognised in the comprehensive operating statement as a
transaction.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
derecognised when:
•
•
•
the rights to receive cash flows from the asset have expired; or
the department retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in
full without material delay to a third party under a ‘pass through’ arrangement; or
the department has transferred its rights to receive cash flows from the asset and either:
» has transferred substantially all the risks and rewards of the asset, or
» has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control
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of the asset.
Where the department has neither transferred nor retained substantially all the risks and rewards or transferred control,
the asset is recognised to the extent of the department’s continuing involvement in the asset.
Impairment of financial assets
At the end of each reporting period, the department assesses whether there is objective evidence that a financial asset or
group of financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or
loss, are subject to annual review for impairment.
Receivables are assessed for bad and doubtful debts on a regular basis. Those bad debts considered as written off by
mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and allowance for
doubtful receivables are classified as other economic flows in the net result.
The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of
estimated future cash flows, discounted at the effective interest rate.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional
judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance
with AASB 136 Impairment of Assets.
(M) Non-financial assets
Prepayments
Prepayments represent payments in advance of receipt of goods or services or that part of expenditure made in one
accounting period covering a term extending beyond that period.
Inventories
Inventories include goods and other property held either for sale, or for distribution at zero or nominal cost, or for
consumption in the ordinary course of business operations.
Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories are
measured at the lower of cost and net realisable value. Where inventories are acquired for no cost or nominal
consideration, they are measured at current replacement cost at the date of acquisition.
Cost, includes an appropriate portion of fixed and variable overhead expenses and measured on the basis of a weighted
average cost.
Bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and
technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the
tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when
an item no longer functions the way it did when it was first acquired.
Non-financial physical assets classified as held for sale
Non-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if
their carrying amount will be recovered through a sale transaction rather than through continuing use.
This condition is regarded as met only when:
•
•
the asset is available for immediate use in the current condition
the sale is highly probable and the asset’s sale is expected to be completed within 12 months from the date of
classification.
These non-financial physical assets, related liabilities and financial assets are measured at the lower of the carrying
amount and fair value less costs to sell, and are not subject to depreciation or amortisation.
Property, plant and equipment
All non-financial physical assets are measured initially at cost and subsequently revalued at fair value less accumulated
depreciation and impairment.
Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition.
Assets transferred as part of a machinery of government change are transferred at their carrying amount.
The initial cost for non-financial physical assets under a finance lease (refer to note 1(O)) is measured at amounts equal
to the fair value of the lease asset or, if lower, the present value of the minimum lease payments, each determined at the
inception of the lease.
Non-financial physical assets such as Crown land and heritage assets are measured at fair value with regard to the
property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the
asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities
that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no
75
longer apply.
The fair value of cultural assets and collections, heritage assets and other non-financial physical assets that the State
intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the
replacement cost of the asset less, where applicable, accumulated depreciation (calculated on the basis of such cost to
reflect the already consumed or expired future economic benefits of the asset) and any accumulated impairment. These
policies and any legislative limitations and restrictions imposed on their use and/or disposal may impact their fair value.
The fair value of plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement
cost.
Certain assets are acquired under finance leases, which may form part of a service concession arrangement. Refer to
notes 1(O) Leases and 1(Q) Commitments for more information.
The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour
on the project, and an appropriate proportion of variable and fixed overheads.
For the accounting policy on impairment of non-financial physical assets, refer to impairment of non-financial assets
under note 1(I) Impairment of non-financial assets.
Leasehold improvements
The cost of leasehold improvements is capitalised as an asset and depreciated over the shorter of the remaining term of
the lease or the estimated useful life of the improvements.
Restrictive nature of cultural and heritage assets, and Crown land
The department holds cultural assets, heritage assets, and Crown land, which are deemed worthy of preservation
because of the social rather than financial benefits they provide to the community. Consequently, there are certain
limitations and restrictions imposed on their use and/or disposal.
Revaluations of non-financial physical assets
Non-financial physical assets are measured at fair value on a cyclical basis, in accordance with the Financial Reporting
Directions (FRDs) issued by the Minister for Finance. A full revaluation normally occurs every five years, based on the
asset’s government purpose classification, but may occur more frequently if fair value assessments indicate material
changes in values. Independent valuers are used to conduct these scheduled revaluations. Any interim revaluations are
determined in accordance with the requirements of the FRDs.
Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.
Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are
recognised in ‘Other economic flows – other comprehensive income’, and accumulated in equity under the asset
revaluation surplus. However, the net revaluation increase is recognised in the net result to the extent that it reverses a
net revaluation decrease in respect of the same class of property, plant and equipment previously recognised as an
expense (other economic flows) in the net result.
Net revaluation decreases are recognised in ‘Other economic flows – other comprehensive income’ to the extent that a
credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment.
Otherwise, the net revaluation decreases are recognised immediately as other economic flows in the net result. The net
revaluation decrease recognised in ‘Other economic flows – other comprehensive income’ reduces the amount
accumulated in equity under the asset revaluation surplus.
Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment are
offset against one another within that class but are not offset in respect of assets in different classes. Any asset
revaluation surplus is not normally transferred to accumulated funds on derecognition of the relevant asset.
Intangible assets
Purchased intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are
carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial
acquisition are capitalised when it is expected that additional future economic benefits will flow to the state.
When the recognition criteria in AASB 138 Intangible Assets are met, internally generated intangible assets are
recognised and measured at cost less accumulated amortisation and impairment.
The department’s intangible assets consist only of software.
Refer to note 1(H) Depreciation and amortisation and (I) Impairment of non-financial assets.
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from development (or from the development phase of an internal project)
is recognised if, and only if, all of the following are demonstrated:
•
the technical feasibility of completing the intangible asset so that it will be available for use or sale
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•
•
•
•
•
an intention to complete the intangible asset and use or sell it
the ability to use or sell the intangible asset
the intangible asset will generate probable future economic benefits
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset
the ability to measure reliably the expenditure attributable to the intangible asset during its development.
(N) Liabilities
Payables
Payables consist of:
•
•
contractual payables, such as accounts payable, and unearned income. Accounts payable represent liabilities for
goods and services provided to the department prior to the end of the financial year that are unpaid, and arise when
the department becomes obliged to make future payments in respect of the purchase of those goods and services
statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost (refer
to note 1(K)). Statutory payables are recognised and measured similarly to contractual payables, but are not classified as
financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise
from a contract.
Borrowings
All interest bearing liabilities are initially recognised at fair value of the consideration received, less directly attributable
transaction costs (refer to note 1(O) Leases).
Subsequent to initial recognition, interest bearing liabilities are measured at amortised cost. Any difference between the
initial recognised amount and the redemption value is recognised in the net result over the period of the borrowing using
the effective interest method.
Provisions
Provisions are recognised when the department has a present obligation, the future sacrifice of economic benefits is
probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best
estimate of the consideration required to settle the present obligation at reporting period, taking into account the risks and
uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows, using discount rate that reflects the time
value of money and risks specific to the provision. When some or all of the economic benefits required to settle a
provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain
that recovery will be received and the amount of the receivable can be measured reliably.
Other provisions
Other provisions mainly represent amounts agreed under legal settlement to be paid in future years.
Employee benefits
Provision is made for benefits accruing to employees in respect of annual leave, long service leave, and on-costs for
services rendered to the reporting date.
Annual leave
Liabilities for annual leave are recognised in the provision for employee benefits, classified as current liabilities. Those
liabilities which are expected to be settled within 12 months of the reporting period, are measured at nominal values.
Those liabilities that are not expected to be settled within 12 months are also recognised in the provision for employee
benefits as current liabilities, but are measured at present value of the amounts expected to be paid when the liabilities
are settled using the remuneration rate expected to apply at the time of settlement.
Long service leave
Liability for long service leave (LSL) is recognised in the provision for employee benefits.
•
•
Current liability – unconditional LSL (representing 7 or more years of continuous service for all staff) is disclosed in the
notes to the financial statements as a current liability, even where the department does not expect to settle the liability
within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an
employee take leave within 12 months. The components of this current LSL liability are measured at:
» nominal value – component that the department expects to settle within 12 months
» present value – component that the department does not expect to settle within 12 months.
Non-current liability – conditional LSL (representing less than 7 years of continuous service for all staff) is disclosed as
a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has
completed the requisite years of service. This non-current LSL liability is measured at present value using a model
77
provided by Treasury. This model uses a wage inflation rate based on the average of forward estimates of the rates
as assumed in the 2013-14 Budget plus 1% for progression and promotion. The values are then discounted using the
Reserve Bank of Australia’s indicative Mid Rates of Commonwealth Government Securities. Any gain or loss
following revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the
extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an other
economic flow (refer to note 1(I) Other economic flows included in net result).
The probability that staff will remain with the department and become entitled to their long service leave is also factored in
the calculation of the provision for long service leave.
Employee benefits on-costs
Employee benefits on-costs such as payroll tax, workers compensation, and superannuation are recognised separately
from the provision for employee benefits.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
(O) Leases
A lease is a right to use an asset for an agreed period of time in exchange for payment.
Leases are classified at their inception as either operating or finance leases based on the economic substance of the
agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are
classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership
from the lessor to the lessee. All other leases are classified as operating leases.
Finance leases
Department as lessee
At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the
fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception
of the lease. The lease asset is accounted for as a non-financial physical asset. Where the asset reverts back to the state at
the end of the lease term, the asset is depreciated over its estimated useful life. Where the asset does not revert back to the
state at the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset or the term
of the lease.
Minimum finance lease payments are apportioned between reduction of the outstanding lease liability, and periodic
finance expense which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive
operating statement. Contingent rentals associated with finance leases are recognised as an expense in the period in
which they are incurred. Leases are recognised at the commencement of the lease term.
Operating leases
Department as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating
statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the
time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance
sheet.
(P) Equity
Contributions by owners
Additions to net assets which have been designated as contributions by owners are recognised as contributed capital.
Other transfers that are in the nature of contributions or distributions have also been designated as contributions by
owners.
Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by
owners.
(Q) Commitments
Commitments for future expenditure include operating and capital commitments arising from contracts. These
commitments are disclosed by way of a note (refer to note 19) at their nominal value and inclusive of the goods and
services tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information
to users, the net present values of significant individual projects are stated. These future expenditures cease to be
disclosed as commitments once the related liabilities are recognised in the balance sheet.
(R) Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note
(refer to note 20) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented
inclusive of GST receivable or payable respectively.
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(S) Service concession arrangements (public private partnerships)
The department sometimes enters into certain arrangements with private sector participants to design and construct or
upgrade an asset used to provide public services. These arrangements are typically complex and usually include the
provision of operational and maintenance services for a specified period of time. These arrangements are often referred
to as either public private partnerships (PPPs) or service concession arrangements (SCAs).
These SCAs usually take one of two main forms. In the more common form, the department pays the operator over the
period of the arrangement, subject to specified performance criteria being met. At the date of commitment to the principal
provisions of the arrangement, these estimated periodic payments are allocated between a component related to the
design and construction or upgrading of the asset and components related to the ongoing operation and maintenance of
the asset. The former component is accounted for as a lease payment (see note 1(O) Leases). The remaining
components are accounted for as commitments (see note 1(Q) Commitments) for operating costs which are expensed in
the comprehensive operating statement as they are incurred.
The other, less common form of SCA, is one in which the department grants to an operator, for a specified period of time,
the right to collect fees from users of the SCA asset, in return for which the operator constructs the asset and has the
obligation to supply agreed upon services, including maintenance of the asset for the period of the concession. These
private sector entities typically lease land, and sometimes state works, from the state and construct infrastructure. At the
end of the concession period, the land and state works, together with the constructed facilities, will be returned to the
grantor department.
There is currently no authoritative accounting guidance applicable to grantors (the department) on the recognition and
measurement of the right of the department to receive assets from such concession arrangements. Due to the lack of
such guidance, there has been no change to existing policy and those assets are not currently recognised.
(T) Accounting for the Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount of associated GST, except where GST incurred is not
recoverable from the taxation authority. In this case, the GST payable is recognised as part of the cost of acquisition of
the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
Commitments and contingent assets and liabilities are also stated inclusive of GST.
(U) Events after the reporting period
Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result
from an agreement between the department and other parties, the transactions are only recognised when the agreement
is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial
statements for events which occur after the reporting period and before the date the financial statements are authorised
for issue, where those events provide information about conditions which existed in the reporting period. Note disclosure
is made about events between the end of the reporting period and the date the financial statements are authorised for
issue where the events relate to conditions which arose after the end of the reporting period and which may have a
material impact on the results of subsequent years.
(V) Australian Accounting Standards issued that are not yet effective
Certain new AASs have been published that are not mandatory for the 30 June 2014 reporting period. DTF assesses the
impact of these new standards and advises the department of their applicability and early adoption where applicable.
As at 30 June 2014, the following standards and interpretations that are applicable to the department had been issued but were not
mandatory for the financial year ending 30 June 2014. Standards and Interpretations that are not applicable to the department have
been omitted. The department has not early adopted these standards.
Standard /
Interpretation
AASB 9 Financial
instruments
Summary
This standard simplifies requirements for the
classification and measurement of financial
assets resulting from Phase 1 of the IASB’s
project to replace IAS 39 Financial
Instruments: Recognition and Measurement
(AASB 139 Financial Instruments:
Applicable for
annual reporting
periods beginning
after
Beginning
1 January 2017
Impact on departmental financial
statements
The preliminary assessment has
identified that the financial impact of
available for sale (AFS) assets will
now be reported through other
comprehensive income (OCI) and
no longer recycled to the profit and
79
Recognition and Measurement).
loss.
Impacts arising from adoption of
AASB 9 will continue to be
monitored and assessed.
AASB 10
Consolidated
Financial
Statements
This Standard forms the basis for
determining which entities should be
consolidated into an entity’s financial
statements. AASB 10 defines ‘control’ as
requiring exposure or rights to variable
returns and the ability to affect those returns
through power over an investee, which may
broaden the concept of control for public
sector entities.
Beginning
1 January 2014
(not-for-profit entities)
AASB 10 builds on the control
guidance that existed in AASB 127
and Interpretation 112 and is not
expected to change which entities
need to be consolidated.
Ongoing work is being done to
monitor and assess the impact of
this standard.
The AASB has issued an Australian
Implementation Guidance for not-for-profit
entities that explains and illustrates how the
principles in the Standard apply from the
perspective of not-for-profit entities in the
private and public sectors.
Note 2. Departmental (controlled) outputs
A description of departmental outputs performed during the year ended 30 June 2014, and the objectives of these
outputs, are summarised below.
Policing
Description of output
This output group reports on activities relating to the provision of effective police and law enforcement services that aim
to prevent, detect, investigate and prosecute crime, and promote safer road user behaviour. It focuses on activities which
enable Victorians to undertake their lawful pursuits confidently, safely and without fear of crime.
Objectives
•
This output group contributes to the department’s objective of improving community safety through policing, law
enforcement and prevention activities.
Infringements and enhancing community safety
Description of output
This output group reports on activities relating to the fair and effective enforcement of judicial fines, court orders and
warrants, and processing of traffic infringement notices. It also reports on prevention activities aimed at enhancing
community safety through the implementation of strategies to support local community engagement in crime prevention
activities.
Objectives
•
This output group contributes to the department’s objective of improving community safety through policing, law
enforcement and prevention activities.
Court services
Description of output
This output group delivers support to the state’s judiciary in its dispensation of criminal and civil matters, maintaining the
administrative operations of the system of courts and statutory tribunals, and providing appropriate civil dispute resolution
mechanisms.
Objectives
•
This output group contributes to the department’s objective of improving the efficiency of court processes.
Supporting legal processes and law reform
Description of output
This output group relates to the provision of services that support legal processes and law reform. Services that support
legal processes include legal aid, prosecution services, community mediation services, support for victims of crime and the
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delivery of independent, expert forensic medical services to the justice system. Other services in this output group include legal
policy advice to government, law reform, implementation of new or amended legislation and the provision of legal advice to
the government.
Objectives
•
This output group contributes to the department’s objective of supporting the rule of law.
Personal identity, individual rights and participation in civic life
Description of output
This output group delivers services that safeguard the rights of the Victorian community through the provision of services
relating to rights and equal opportunity, identity protection, privacy regulation, advocacy and guardianship for Victorians
with a disability or mental illness and the administration of the Victorian electoral system.
Objectives
•
This output group contributes to the department’s objective of protecting individual rights and encouraging community
participation.
Enforcing and managing correctional orders
Description of output
This output group relates to the management of the state’s correctional system.
Objectives
•
This output group contributes to the department’s objective of promoting community safety through effective
management of prisoners and offenders and provision of opportunities for rehabilitation and reparation.
Supporting the state’s fire and emergency services
Description of output
This output group supports the delivery of a coordinated, all-hazards approach to emergency management, focusing on
risk mitigation and active partnership with the Victorian community.
Objectives
•
This output group contributes to the department’s objective of minimising injury and property loss through a
coordinated and integrated emergency response.
Industry regulation and support
Description of output
This output group delivers activities relating to regulating the gambling and liquor industries, harm minimisation, and
support and development of the racing industry. This output group also promotes the empowerment of consumers and
businesses to know their rights and responsibilities to promote a well-functioning market economy. There is a specific
focus on the needs of vulnerable and disadvantaged consumers.
Objectives
•
This output group contributes to the department’s objective of promoting responsible industry behaviour and an
informed community through effective regulation, education, monitoring and enforcement.
Public sector integrity
Description of output
This output group focuses on achieving a high standard of public sector integrity. The Independent Broad-based Anticorruption Commission (IBAC) aims to identify and investigate serious corrupt conduct within the Victorian public sector
and misconduct in Victoria Police. The Victorian Inspectorate monitors the IBAC. The Freedom of Information (FOI)
Commissioner aims to enhance Victorian Government openness, transparency and access to information by promoting
the object and operation of FOI legislation, and reviewing and handling FOI decisions and complaints.
Objectives
•
This output group contributes to the department’s objective of promoting and monitoring integrity within the public
sector.
Other information
In addition to, and incorporated in, the above output activities are a number of entities within the Justice Portfolio which
report separately. The financial statements contain the appropriation revenue for these entities and the expenditure is
represented in the receipt of regular grants expense and transfer payments. These are:
Policing
Victoria Police
81
Court services
Judicial College of Victoria
Supporting legal processes and law reform
Office of Public Prosecutions
Sentencing Advisory Council
Victoria Legal Aid
Victorian Institute of Forensic Medicine
Victorian Law Reform Commission
Personal identity, individual rights and participation in civic life
Office of the Victorian Privacy Commissioner
Victorian Electoral Commission
Victorian Equal Opportunity and Human Rights Commission
Support the state’s fire and emergency services
Country Fire Authority
Emergency Services Telecommunications Authority
Metropolitan Fire and Emergency Services Board
Victoria State Emergency Service
Industry regulation and support
Residential Tenancies Bond Authority
Victorian Commission for Gambling and Liquor Regulation
Victorian Responsible Gambling Foundation
Public sector integrity
Independent Broad-based Anti-corruption Commission
Victorian Inspectorate
The following organisations form part of the
Justice Portfolio but are excluded from the above output activities as they are not funded out of the Budget
Sector:
Greyhound Racing Victoria
Harness Racing Victoria
Legal Practitioners Liability Committee
Legal Services Board
Legal Services Commissioner
Professional Standards Council
82
Schedule A – Controlled income and expenses for the year ended 30 June 2014
Personal identity,
Policing(i)
Infringements and
Supporting legal
enhancing
processes and
and participation
correctional
law reform(iv)
in civic life(v)
orders(vi)
community safety(ii)
Court Services(iii)
individual rights Enforcing and managing
Supporting the
state’s fire and
Industry
Public
Departmental
emergency services regulation and support(vii)
sector integrity
total
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Output appropriations
2,273,827
2,121,978
227,073
225,908
293,736
329,748
335,874
295,930
36,571
38,285
842,466
753,364
953,121
255,068
95,436
109,032
34,829
27,562
5,092,933
4,156,875
Special appropriations
1,963
0
0
0
107,988
97,149
0
0
23,062
40,250
58
91
472
269
0
0
0
0
133,543
137,759
Interest
0
0
0
0
0
0
0
0
0
0
138
166
0
0
34,971
41,746
0
0
35,109
41,912
Grants
0
0
81
47
0
97
320
906
1,221
1,279
370
191
6,136
3,136
2,263
1,941
1
0
10,392
7,597
Other income
0
0
43
409
3,415
(48)
184
567
12
479
199
1,524
14,433
35,825
25,937
17,805
1
0
44,224
56,561
2,275,790
2,121,978
227,197
226,364
405,139
426,946
336,378
297,403
60,866
80,293
843,231
755,336
974,162
294,298
158,607
170,524
34,831
27,562
5,316,201
4,400,704
Employee expenses(viii)
0
0
52,576
55,609
238,502
247,528
50,983
46,276
17,364
18,819
338,903
310,094
18,766
16,669
45,211
52,635
3,087
759
765,392
748,389
Depreciation and
0
0
10,560
8,169
29,775
35,099
1,105
894
893
889
51,892
49,409
14,239
4,094
719
822
171
5
109,354
99,381
0
0
174
211
10,171
10,904
(61)
(25)
4
10
21,831
22,327
(35)
(16)
9
26
3
2
32,096
33,439
2,275,790
2,121,978
14,228
10,778
4,052
6,099
235,902
218,876
33,162
51,411
6,286
6,710
885,733
206,575
52,310
63,045
29,773
26,520
3,537,236
2,711,992
Continuing operations
Income from
transactions
Total income from
transactions
Expenses from
transactions
amortisation
Interest expense
Grants and other transfers
83
Personal identity,
Policing(i)
Infringements and
Supporting legal
enhancing
processes and
and participation
correctional
law reform(iv)
in civic life(v)
orders(vi)
community safety(ii)
Court Services(iii)
individual rights Enforcing and managing
Supporting the
state’s fire and
Industry
Public
Departmental
emergency services regulation and support(vii)
sector integrity
total
Capital asset charge
0
0
2,455
2,025
50,574
46,175
853
764
194
388
73,560
66,430
1,396
5,458
39
48
142
0
129,213
121,288
Supplies and services
0
0
143,638
144,431
73,161
85,650
48,514
34,077
9,409
10,149
353,346
306,417
36,569
27,167
38,654
36,839
1,565
241
704,856
644,971
2,275,790
2,121,978
223,631
221,223
406,235
431,455
337,296
300,862
61,026
81,666
845,818
761,387
956,668
259,947
136,942
153,415
34,741
27,527
5,278,147
4,359,460
0
0
3,566
5,141
(1,096)
(4,509)
(918)
(3,459)
(160)
(1,373)
(2,587)
(6,051)
17,494
34,351
21,665
17,109
90
35
38,054
41,244
0
0
207
191
0
390
308
265
56
63
800
(584)
195
178
161
176
3
0
1,730
679
0
0
(132)
0
(39)
0
(196)
0
(36)
0
(606)
134
(124)
0
10,895
(2,456)
(2)
0
9,760
(2,322)
0
0
39
220
398
1,124
59
309
11
74
175
884
36
205
31
206
2
0
751
3,022
0
0
114
411
359
1,514
171
574
31
137
369
434
107
383
11,087
(2,074)
3
0
12,241
1,379
0
0
3,680
5,552
(737)
(2,995)
(747)
(2,885)
(129)
(1,236)
(2,218)
(5,617)
17,601
34,734
32,752
15,035
93
35
50,295
42,623
0
0
0
0
0
0
0
0
(1,465)
0
(135)
(20,745)
0
0
0
0
(1,600)
(20,745)
Total expenses from
transactions(viii)
Net result from
transactions
(net operating
balance)(viii)
Other economic flows included in net result
Net gain/(loss) on nonfinancial assets
Net gain/(loss) on
financial instruments
Other gains/(losses) from
other economic flows
Total other economic
flows included in net
result
Net result(viii)
Other economic flows – other comprehensive income
Items that will not be reclassified to net result
Changes in physical asset
revaluation surplus
0
0
84
Personal identity,
Policing(i)
Infringements and
Supporting legal
enhancing
processes and
and participation
correctional
law reform(iv)
in civic life(v)
orders(vi)
community safety(ii)
Court Services(iii)
individual rights Enforcing and managing
Supporting the
state’s fire and
Industry
Public
Departmental
emergency services regulation and support(vii)
sector integrity
total
Total other economic
flows –
other comprehensive
0
0
0
0
0
0
0
0
0
0
(1,465)
0
(135)
(20,745)
0
0
0
0
(1,600)
(20,745)
0
0
3,680
5,552
(737)
(2,995)
(747)
(2,885)
(129)
(1,236)
(3,683)
(5,617)
17,466
13,989
32,752
15,035
93
35
48,695
21,878
income
Comprehensive
result(viii)
Schedule B – Controlled assets and liabilities as at 30 June 2014
Personal identity,
Policing(i)
Infringements and
Supporting legal
enhancing
processes and
and participation
correctional
law reform(iv)
in civic life(v)
orders(vi)
community safety(ii)
Court Services(iii)
individual rights Enforcing and managing
Supporting the
state’s fire and
Industry
Public
Departmental
emergency services regulation and support(vii)
sector integrity
total
Assets
Financial assets
Non-financial assets
Total assets
366,775
337,447
57,525
22,397
57,746
180,148
60,728
40,438
14,846
14,044
146,491
67,296
52,874
68,307
482,426
420,738
226
(5,199)
1,239,637
1,145,616
0
0
84,301
74,632
853,787
891,665
22,798
13,807
5,213
5,548
1,859,197
1,594,912
92,938
74,283
10,739
8,998
1,227
56
2,930,200
2,663,901
366,775
337,447
141,826
97,029
911,533
1,071,813
83,526
54,245
20,059
19,592
2,005,688
1,662,208
145,812
142,590
493,165
429,736
1,453
(5,143)
4,169,837
3,809,517
366,775
337,447
48,259
44,315
185,583
215,347
63,214
50,898
14,911
27,274
708,394
588,879
36,876
17,267
29,541
31,693
872
284
1,454,425
1,313,404
0
0
93,567
52,714
725,950
856,466
20,312
3,347
5,148
(7,682)
1,297,294
1,073,329
108,936
125,323
463,624
398,043
581
(5,427)
2,715,412
2,496,113
Liabilities
Total liabilities(viii)
Net assets(viii)
(i) Previously included in “public safety and crime reduction”
(ii) Previously included in “community operations”
(iii) Previously included in “dispensing justice”
(iv) Previously included in “legal support to government and protecting the rights of victorians” and “dispensing justice”
(v) Previously included in “legal support to government and protecting the rights of victorians”
(vi) Previously included in “enforcing correctional orders”
(vii)Previously included in “gambling and liquor regulation and racing industry development” and “protecting consumers”
(viii)
The 2012-13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee benefits (refer to note 1(F)).
85
86
Note 3. Administered (non-controlled) items
In addition to the specific departmental operations which are included in the financial statements (comprehensive operating statement, balance sheet, statement of changes in equity and cash flow statement),
the department administers or manages other activities and resources on behalf of the state. The transactions relating to these activities are reported as administered items (refer to Note 1(D) and 1(J)) in this
note.
Personal identity,
Policing(i)
Infringements
Supporting legal
individual rights and
Enforcing and
Supporting the
Industry
and enhancing
processes and
participation in civic
managing
state’s fire and
regulation and
Public sector
law reform(iv)
life(v)
correctional orders(vi)
emergency services
support(vii)
integrity
community safety(ii)
Court Services(iii)
Departmental total
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
28,644
35,420
0
0
28,644
35,420
Special appropriations applied
0
0
3,940
3,939
39,122
41,338
546,113
2,339
16
78
0
0
0
0
0
0
0
0
589,191
47,694
Sale of goods and services(viii)
0
0
31,928
27,794
57,071
43,386
50,687
46,197
7,194
26,220
10,983
10,415
29,169
25,441
902
1,271
0
0
187,934
180,724
Commonwealth grants
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Taxation income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,700,893
1,780,740
0
0
1,700,893
1,780,740
Fines
0
0
606,829
647,890
24,461
21,664
0
0
430
635
194
176
0
0
63
109
0
0
631,977
670,474
Fees
0
0
262,790
260,397
92
87
2
2
8,649
8,887
0
0
0
0
12,316
12,455
0
0
283,849
281,828
Other income
0
0
14,617
25,136
2,109
2,788
488
384
351
348
1,870
1,569
303
254
14,416
17,895
5
1
34,159
48,375
0
0
920,104
965,156
122,855
109,263
597,290
48,922
16,640
36,168
13,047
12,160
29,472
25,695
1,757,234
1,847,890
5
1
3,456,647
3,045,255
0
0
0
0
0
0
0
0
0
0
0
0
0
0
28,644
35,420
0
0
28,644
35,420
0
0
514,779
498,632
66,238
58,617
50,645
46,216
7,602
27,808
21,738
16,523
29,169
25,442
1,768,619
1,803,563
0
0
2,458,790
2,476,801
Administered income from
transactions
Appropriations – Payments
made on behalf
of the state
Total administered income
from transactions(viii)
Administered expenses from transactions
Payments made on behalf of
the state
Payments into the
Consolidated Fund
87
Personal identity,
Policing(i)
Other expenses
Total administered expenses
from transactions
Infringements
Supporting legal
individual rights and
Enforcing and
Supporting the
Industry
and enhancing
processes and
participation in civic
managing
state’s fire and
regulation and
Public sector
law reform(iv)
life(v)
correctional orders(vi)
emergency services
support(vii)
integrity
community safety(ii)
Court Services(iii)
Departmental total
0
0
8,180
7,843
40,471
41,536
546,544
2,711
94
170
1,760
1,458
273
250
193
248
5
0
597,520
54,216
0
0
522,959
506,475
106,709
100,153
597,189
48,927
7,696
27,978
23,498
17,981
29,442
25,692
1,797,456
1,839,231
5
0
3,084,954
2,566,437
0
0
397,145
458,681
16,146
9,110
101
(5)
8,944
8,190
(10,451)
(5,821)
30
3
(40,222)
8,659
0
1
371,693
478,818
Total administered net result
from
transactions (net operating
balance)(viii)
Administered other economic flows included in administered net result
Net gain/(loss) on non-financial
0
0
(13)
8
(1)
16
(16)
(52)
(3)
3
(832)
(7)
(4)
8
0
(10)
(12)
(7)
(881)
(41)
0
0
(268,097)
(345,459)
(466)
(529)
0
0
(50)
0
0
0
0
0
(4,866)
(4,225)
0
0
(273,479)
(350,213)
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
(268,110)
(345,450)
(467)
(513)
(16)
(52)
(53)
3
(832)
(7)
(4)
8
(4,866)
(4,235)
(12)
(7)
(274,360)
(350,253)
0
0
129,035
113,231
15,679
8,597
85
(57)
8,891
8,193
(11,283)
(5,828)
26
11
(45,088)
4,424
(12)
(6)
97,333
128,565
Cash and deposits
0
0
11,914
12,151
6,801
8,704
16,682
19,474
544
1,255
12,491
9,483
1,024
682
886
655
18
0
50,360
52,404
Receivables(viii)
0
0
964,877
736,458
1,879
1,710
(32,011)
10,329
(4,287)
1,416
(6,930)
0
(21,783)
1,811
645,735
830,711
(7)
0
1,547,473
1,582,435
0
0
0
0
0
0
42,195
42,195
0
0
0
0
503,334
476,080
11,098
11,098
0
0
556,627
529,373
0
0
976,791
748,609
8,680
10,414
26,866
71,998
(3,743)
2,671
5,561
9,483
482,575
478,573
657,719
842,464
11
0
2,154,460
2,164,212
assets
Net gain/(loss) on financial
instruments
Other gains/(losses) from other
economic flows
Total administered other
economic flows
Total administered
comprehensive result(viii)
Administered financial
assets
Equity investments in other
justice portfolio entities
Total administered financial
assets(viii)
88
Personal identity,
Policing(i)
Infringements
Supporting legal
individual rights and
Enforcing and
Supporting the
Industry
and enhancing
processes and
participation in civic
managing
state’s fire and
regulation and
Public sector
law reform(iv)
life(v)
correctional orders(vi)
emergency services
support(vii)
integrity
community safety(ii)
Court Services(iii)
Departmental total
Administered liabilities
Creditors and accruals
0
0
67
110
0
20
0
5
0
3
1
20
0
2
2,057
2,888
0
0
2,125
3,048
Deposits payable
0
0
12,757
9,778
6,853
8,140
16,433
19,346
253
214
9,408
6,848
881
605
727
600
15
0
47,327
45,531
Provisions
0
0
0
22
0
0
0
0
0
0
39
40
0
0
0
0
0
0
39
62
Unearned revenue
0
0
40
2
0
4
59
232
978
2,177
183
8
38
293
1,162,855
1,298,501
1
0
1,164,154
1,301,217
Other
0
0
0
0
2,100
880
0
0
43
288
0
0
0
0
0
0
0
0
2,143
1,168
Total administered liabilities
0
0
12,864
9,912
8,953
9,044
16,492
19,583
1,274
2,682
9,631
6,916
919
900
1,165,639
1,301,989
16
0
1,215,788
1,351,026
0
0
963,927
738,697
(273)
1,370
10,374
52,415
(5,017)
(11)
(4,070)
2,567
481,656
477,673
(507,920)
(459,525)
(5)
0
938,672
813,186
Total administered net
assets(viii)
89
Note 4. Income from transactions
(a)
2014
2013
$’000
$’000
9,798
13,760
25,311
28,152
35,109
41,912
9,785
6,389
607
1,208
10,392
7,597
12,063
10,700
106
289
6,637
177
Other
11,264
9,694
Fair value of assets received free of charge or for nominal consideration
14,154
35,701
44,224
56,561
Interest
Interest from financial assets at fair value through profit/loss:
– Interest from investments
– Interest from real estate agent trust accounts
Total interest
(b)
Grants
Other specific purpose from:
– General government outside portfolio
– Other states and local government
Total grants
(c)
Other income
Fines and fees
Sale of goods
Dividends from investments
Total other income
90
Note 5. Expenses from transactions
(a)
2014
2013
$’000
$’000
583,194
555,231
Superannuation (note 17)
53,048
49,985
Annual leave and long service leave expense
73,930
74,093
Other on-costs (fringe benefits tax, payroll tax and workcover levy) (i)
47,481
45,917
6,926
6,505
813
16,658
765,392
748,389
Buildings
37,804
35,729
Buildings leasehold
21,657
26,347
9,987
9,344
13,480
9,564
7,044
7,199
19,382
11,198
109,354
99,381
32,096
33,439
32,096
33,439
Employee expenses
Salary and wages
Staff training
Departure packages
Total employee expenses
(b)
Depreciation and amortisation
Leasehold improvements
Plant and equipment
Leased plant and equipment
Software
Total depreciation and amortisation
(c)
Interest expense
Interest on finance leases
Total interest expense
(i)
The 2012-13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee
benefits (refer to note 1(F)).
(d)
2014
2013
$’000
$’000
2,275,790
2,121,978
Grants and other transfers
Payments for specific purpose to:
– Victoria Police
91
2014
2013
– Victoria Legal Aid
127,390
119,502
– Country Fire Authority
467,023
86,113
– Metropolitan Fire and Emergency Services Board
329,695
38,977
– Office of Public Prosecution
57,908
57,587
– Victoria State Emergency Service
46,975
48,399
– Victorian Electoral Commission
23,062
40,250
– Victorian Commission for Gambling and Liquor Regulation
34,502
37,808
– Victorian Institute of Forensic Medicine
28,223
28,053
0
12,364
– Independent Broad-based Anti-corruption Commission
27,353
13,335
– Emergency Services Telecommunications Authority
14,450
13,941
– Victorian Equal Opportunity and Human Rights Commission
7,956
8,836
– Office of the Victorian Privacy Commissioner
2,040
2,110
– Judicial College of Victoria
2,206
2,259
– Sentencing Advisory Council
1,681
1,765
– Victorian Inspectorate
2,418
822
689
420
87,875
77,473
3,537,236
2,711,992
Outsourced contracted costs
347,158
322,152
Contractors, professional services, and consultants (i)
115,687
89,765
Prison operating expenses
26,441
23,106
Accommodation and property services
77,039
74,332
Printing, stationery and other office expenses
38,358
39,874
Technology services costs
52,961
45,236
Other(i)
47,212
50,506
704,856
644,971
– Office of Police Integrity (ceased in 2012-13)
– Victorian Responsible Gambling Foundation
– Other parties
Total grants and other transfers
(e)
Supplies and services
Total supplies and services
92
2014
2013
(i) The 2012-13 comparative has been adjusted for the reclassification of consultants from other to contractors, professional
services, and consultants.
93
Note 6. Other economic flows included in net result
(a)
2014
2013
$’000
$’000
0
(1,351)
Net gain/(loss) on disposal of property, plant and equipment
1,730
2,030
Total net gain/(loss) on non-financial assets
1,730
679
Impairment of loans and receivables (i)
(429)
138
Bad debts written off by unilateral agreement
(808)
0
984
0
10,013
(2,460)
9,760
(2,322)
Net gain/(loss) from revaluation of long service leave liability (ii)
1,029
1,726
Net gain/(loss) from revaluation of other provisions (iii)
(278)
1,296
751
3,022
Net gain/(loss) on non-financial assets
Impairment of intangible asset
(b)
Net gain/(loss) on financial instruments
Net gain/(loss) on disposal of financial instruments
Net gain/(loss) from revaluation of financial assets at fair value
Total net gain/(loss) on financial instruments
(c)
Other gains/(losses) from other economic flows
Total other gains/(losses) from other economic flows
(i) Includes provision for doubtful debts from other economic flows.
(ii) Revaluation gain/(loss) due to changes in bond rates.
(iii) Revaluation gain/(loss) due to changes in bond rates and actuarial assumptions.
94
Note 7. Restructuring of administrative arrangements
The management of the State Control Centre transferred from the Department of Environment and Primary Industries to
the Fire Services Commissioner under the Department of Justice on 1 July 2012. The State Control Centre is Victoria’s
primary emergency control centre, connecting the Victorian community with regional and incident controllers during major
emergencies such as fire and flood.
As part of this restructure of administrative arrangements, a number of employees and other assets were transferred to
the Department of Justice.
An allocation statement was prepared in the 2012-13 financial year to transfer the net assets as at 1 July 2012.
However, due to circumstances outside the department’s control, the transfer of net assets were recognised by the
department in the 2013-14 financial year.
The net assets were recognised at the carrying amount of those assets as at 1 July 2012 in the 2013-14 financial year,
and then adjusted for accumulated depreciation and changes in the employee entitlement provisions for the period from 1
July 2012 to 30 June 2014.
The net assets transfer was treated as a contribution of capital by the Crown in compliance with the accounting
requirements of Financial Reporting Direction 119A Transfers Through Contributed Capital.
Transfer of net assets to Department of Justice
In respect of the activities assumed, the following assets and liabilities were recognised at the date of transfer:
2014
2013
$’000
$’000
15
0
644
0
(15)
0
644
0
(644)
0
Controlled
Assets
Cash
Property, plant and equipment – carrying value
Liabilities
Provisions
Net assets recognised at the date of transfer
Net capital contribution from the Crown
95
Note 8. Receivables
2014
2013
$’000
$’000
Other receivables(i)
12,154
16,375
Provision for doubtful contractual receivables (i) (See also note 8(a) below)
(1,878)
(1,449)
10,276
14,926
514,493
447,500
54,746
42,644
569,239
490,144
579,515
505,070
Amounts owing from Victorian Government(ii)*
160,515
179,904
Total non-current receivables
160,515
179,904
740,030
684,974
Current receivables
Contractual
Statutory
Amounts owing from Victorian Government(ii)*
GST input tax credit recoverable
Total current receivables
*$231.102 million (2013: $182.288 million) relates to Victoria
Police.
Non-current receivables
Statutory
Total receivables
* $135.673 million (2013: $155.159 million) relates to Victoria Police.
(i)
The department’s policy on the average credit period on sales of goods is 30 days. No interest is charged on other
receivables. An allowance has been made for estimated irrecoverable amounts from the sale of goods when there is objective
evidence that an individual receivable is impaired. The increase was recognised in the net result for the current financial year.
(ii)
The amounts recognised from the Victorian Government represent funding for all commitments incurred through the
appropriations and are drawn from the Consolidated Fund as the commitments fall due.
(a)
Movement in the provision for doubtful contractual receivables
Balance at beginning of the year
Reversal of unused provision recognised in net result
2014
2013
$’000
$’000
1,449
1,587
0
(44)
96
2014
2013
Increase in provision recognised in the net result
1,100
0
Reversal of provision for receivables written off during the year as uncollectible
(671)
(94)
1,878
1,449
Balance at end of the year
(b)
Ageing analysis of contractual receivables
Please refer to note 21(b) (table 21.4) for the ageing analysis of contractual receivables.
(c)
Nature and extent of risk arising from contractual receivables
Please refer to note 21 for the nature and extent of credit risk arising from contractual receivables.
97
Note 9. Investments and other financial assets
2014
2013
$’000
$’000
100,600
93,796
100,600
93,796
– Equity trust(ii)
86,915
76,294
– Fixed interest trust(ii)
43,023
39,535
– Unlisted property trust(ii)
18,554
17,077
Total non-current investments and other financial assets
148,492
132,906
Total investments and other financial assets
249,092
226,702
Current investments and other financial assets
– Term deposits(i) > 3 months
Total current investments and other financial assets
Non-current investments and other financial assets
Managed investment schemes:
(i) Term deposits under ‘investments and other financial assets’ class include only term deposits with maturity greater than 3
months.
(ii) The department designated all its managed investment schemes at fair value through profit or loss.
(a)
Ageing analysis of investments and other financial assets
Please refer to note 21(b) (table 21.4) for the ageing analysis of investments and other financial assets.
(b)
Nature and extent of risk arising from investments and other financial assets
Please refer to note 21 for the nature and extent of risks arising from investments and other financial assets.
98
Note 10. Inventories
2014
2013
$’000
$’000
Supplies and consumables – at cost
3,467
2,836
Raw materials – at cost
4,046
3,216
0
1
7,513
6,053
Current inventories
Work in progress – at cost
Total inventories
99
Note 11. Non-financial physical assets classified as held for sale
2014
2013
$’000
$’000
1,514
1,060
365
240
1,879
1,300
361
219
361
219
Non-financial physical assets classified as held for sale:
Land held for sale
Finance lease vehicles held for sale
Total non-financial physical assets classified as held for sale
Liabilities directly associated with assets classified as held for sale:
Finance lease vehicles liabilities
Total liabilities directly associated with assets classified as held for sale
(a)
Fair value measurement of non-financial physical assets classified as held for sale
The following table provides the fair value measurement hierarchy of the department’s non-financial physical assets classified
as held for sale, excluding the finance lease assets. The fair value measurement heirarchy does not apply to finance lease
assets.
($’000)
2014
Carrying
amount as at
30 June 2014
Land held for sale
Total assets classified as held for sale
Fair value measurement at end of
reporting period using:
Level 1(i)
Level 2(i)
Level 3(i)
1,514
0
0
1,514
1,514
0
0
1,514
(i) Classified in accordance with the fair value hierarchy, see note 1(B).
100
Note 12. Property, plant and equipment
Classification by ‘Public Safety and Environment’ purpose group – Carrying amounts
Gross carrying
amount
Accumulated
depreciation
Net carrying
amount
2014
2013
2014
2013
2014
2013
$’000
$’000
$’000
$’000
$’000
$’000
Land at fair value(ii)
377,278
377,506
0
0
377,278
377,506
Buildings at fair value(i)(ii)
998,700
932,468
(110,390)
(72,878)
888,310
859,590
Buildings leasehold at fair value(ii)
743,793
743,793
(68,651)
(46,994)
675,142
696,799
Leasehold improvements at fair value (iii)
104,832
101,637
(47,958)
(39,574)
56,874
62,063
Plant and equipment at fair value(iv)*
177,492
152,605
(77,424)
(64,884)
100,068
87,721
28,754
28,676
(10,316)
(10,292)
18,438
18,384
707,513
446,533
0
0
707,513
446,533
3,138,362
2,783,218
(314,739)
(234,622)
2,823,623
2,548,596
Plant and equipment under finance lease at fair
value(iv)
Assets under construction at cost(i)
Total property, plant and equipment
(i) The 2012-13 comparative figures for the gross carrying amounts for buildings at fair value and assets under construction at cost
have been adjusted for $21.144 million, due to a project being incorrectly reclassified in the prior financial years.
(ii) Fair value assessments have been performed for all classes of assets and the decision was made that movements were not
material (less than or equal to 10 per cent) for a full revaluation. An independent valuation of the department’s land, buildings, leased
buildings and cultural assets was performed by the Valuer General in 2010-11. The next scheduled full revaluation of the
department’s land, buildings, leased buildings and cultural assets will be conducted in 2016 (refer to note 1(M)).
(iii) Fair value of leasehold improvements is depreciated cost. Expenditure is depreciated over the life of the lease agreement, to
reflect the consumption of economic resources over the period of the agreement.
(iv) The fair value of plant and equipment is depreciated cost. This represents a reasonable approximation of fair value as there is no
evidence of a reliable market-based fair value for this class of asset.
* The department has a number of properties listed as heritage assets which are deemed worthy of preservation for reasons other
than the financial benefits they provide to the community. These assets are subject to restrictions on use and generally cannot be
modified or disposed of unless ministerial approval is obtained.
101
Classification by ‘Public Safety and Environment’ Purpose Group – Movements in carrying amounts
Buildings
Plant &
Leased
Assets
Buildings leasehold
Leasehold equipment
plant &
under
Land at
at fair
at fair improvements
at fair equipment construction
fair value
value(i)
value
at fair value
value at fair value
at cost(i)
$’000
$’000
$’000
$’000
$’000
$’000
377,506
859,590
696,799
62,063
87,721
18,384
446,533 2,548,596
Additions
1,160
2,100
0
5,357
10,792
11,510
319,667
350,586
Disposals
0
0
0
0
(150)
(4,047)
0
(4,197)
Transfer out of assets under
construction
0
66,237
0
0
5,159
0
(71,396)
0
Revaluation of PPE(ii)
0
0
0
0
0
0
0
0
Impairment of assets
(134)
(1,466)
0
0
0
0
0
(1,600)
Reclassification between classes
0
0
0
0
(1,641)
0
9,558
7,917
Machinery of government transfer
in
0
0
0
277
367
0
0
644
Machinery of government transfer
out
0
0
0
0
0
0
0
0
Fair value of assets received free
of charge or for nominal
consideration
0
0
0
0
11,003
0
3,151
14,154
Depreciation(iii)
0
(37,804)
(21,657)
(9,987)
(13,480)
(7,044)
0
(89,972)
Transfer to disposal group held for
sale
(454)
0
0
0
0
(365)
0
(819)
Net transfers contributed capital
(800)
(347)
0
(836)
297
0
0
(1,686)
Closing written down balance
377,278
888,310
675,142
56,874
100,068
18,438
2014
Opening written down balance
$’000
Total
$’000
707,513 2,823,623
(i)
The opening written down balances for buildings at fair value and assets under construction at cost have been adjusted for $21.144
million, due to a project being incorrectly reclassified in the prior financial years. The comparative figures in the table below have also
been adjusted accordingly.
(ii)
Fair value assessments have been performed for all classes of assets and the decision was made that movements were not material
(less than or equal to 10 per cent) for a full revaluation. The next scheduled revaluation will occur in 2016 (refer to note 1(M)).
(iii) Aggregate depreciation allocated during the year is recognised as an expense and disclosed in Note 5(b) to the financial
102
statements.
Classification by ‘Public Safety and Environment’ Purpose Group – Movements in carrying amounts
Buildings
Plant &
Leased
Assets
Buildings leasehold
Leasehold equipment
plant &
under
Land at
at fair
at fair improvements
at fair equipment construction
fair value
value(i)
value
at fair value
value at fair value
at cost(i)
$’000
$’000
$’000
$’000
$’000
$’000
377,396
770,314
823,138
52,345
32,276
18,637
179,444 2,253,550
Additions
21,914
2,369
0
1,839
9,021
11,471
330,488
377,102
Disposals
0
0
0
0
0
(4,285)
0
(4,285)
Transfer out of assets under
construction
0
22,644
0
23,088
25,783
0
(71,515)
0
Revaluation of PPE
0
0
0
0
0
0
0
0
(20,744)
0
0
0
0
0
0
(20,744)
Reclassification between classes
0
99,992
(99,992)
0
0
0
2,957
2,957
Machinery of government transfer
in
0
0
0
0
44
0
0
44
Machinery of government transfer
out
0
0
0
0
0
0
0
0
Fair value of assets received free
of charge or for nominal
consideration
0
0
0
316
30,226
0
5,159
35,701
Depreciation
0
(35,729)
(26,347)
(9,344)
(9,564)
(7,199)
0
(88,183)
(1,060)
0
0
0
0
(241)
0
(1,301)
Net transfers contributed capital
0
0
0
(6,181)
(65)
1
0
(6,245)
Closing written down balance
377,506
859,590
696,799
62,063
87,721
18,384
2013
Opening written down balance
Impairment of assets
Transfer to disposal group held for
sale
$’000
Total
$’000
446,533 2,548,596
(i)
The opening written down balances for buildings at fair value and assets under construction at cost have been adjusted for $20.224
million, due to a project being incorrectly capitalised in the prior financial year. The transfer out of assets under construction for these
asset classes have also been adjusted for $0.92 million, due to the overcapitalisation of a project.
Aggregate depreciation allocated during the year is recognised as an expense and disclosed in Note 5(b) to the financial
statements.
103
Fair value measurement hierarchy for assets as at 30 June 2014
($’000)
2014
Carrying
amount as at
30 June 2014
Fair value measurement at end of reporting
period using:
Level 1(i)
Level 2(i)
Level 3(i)
1,000
0
1,000
0
376,278
0
0
376,278
377,278
0
1,000
376,278
861,026
0
0
861,026
27,284
0
0
27,284
888,310
0
0
888,310
56,874
0
0
56,874
56,874
0
0
56,874
840
0
840
0
99,228
0
0
99,228
100,068
0
840
99,228
Land at fair value
Non-specialised land
Specialised land
Total land at fair value
Buildings at fair value
Specialised buildings
Heritage buildings
Total buildings at fair value
Leasehold improvements at fair value
Leasehold improvements
Total leasehold improvements at fair value
Plant and equipment at fair value
Artwork(ii)
Other plant and equipment
Total plant and equipment at fair value
(i) Classified in accordance with the fair value hierarchy, see note 1(B).
(ii) Artworks have been valued by an independent valuer at market values.
There have been no transfers between levels during the period.
Restricted assets
The department holds $27.284 million worth of properties listed as heritage assets. These heritage assets cannot be
modified nor disposed of without formal ministerial approval.
Non-specialised land, non-specialised buildings and artworks
Non-specialised land, non-specialised buildings and artworks are valued using the market approach. Under this valuation
method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to
have nominal or no added improvement value.
104
For non-specialised land an independent valuation was performend by the independent valuers G. M. Brien & Associates
Pty Ltd to determine the fair value using the market approach. Valuation of the assets was determined by analysing
comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being
valued. From the sales analysed, an appropriate rate per square metre has been applied to the subject asset. The
effective date of the valuation is 30 June 2011.
The independent Valuer for buildings was Napier & Blakeley Pty Ltd and also has an effective date of 30 June 2011.
For artwork, valuation of the assets is determined by a comparison to similar examples of the artists work in existence
throughout Australia and research on prices paid for similar examples offered at auction or through art galleries in recent
years. No revaluation was performed for artwork for the financial period ended at 30 June 2014 (the last valuation
occurred as at 30 June 2011 by the independent valuer the Dominion Group).
To the extent that non-specialised land, non-specialised buildings and artworks do not contain significant, unobservable
adjustments, these assets are classified as level 2 under the market approach.
Specialised land and specialised buildings
The market approach is also used for specialised land, although is adjusted for the community service obligation (CSO)
to reflect the specialised nature of the land being valued. The CSO adjustment is a reflection of the valuer’s assessment
of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants.
This approach is in light of the highest and best use consideration required for fair value measurement, and takes into
account the use of the asset that is physically possible, legally permissible, and financially feasible. As adjustments of
CSO are considered as significant unobservable inputs, specialised land would be classified as level 3 assets.
For department’s majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the
associated depreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature,
specialised buildings are classified as level 3 fair value measurements.
An independent valuation of the departments’ specialised land and specialised buildings was performed by the ValuerGeneral Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the
valuation is 30 June 2011.
Heritage assets
Heritage assets are valued using the depreciated replacement cost method. This cost represents the replacement cost
relate to costs to replace the current service capacity of the asset. Economic obsolesence has also been factored into the
depreciated replacement cost calculation.
Plant and equipment
Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other
than as part of a going concern, fair value is determined using the depreciated replacement cost method. There were no
changes in valuation techniques throughout the period to 30 June 2014.
For all assets measured at fair value, the current use is considered the highest and best use.
Reconciliation of level 3 fair value
Specialised
land
Specialised
buildings
Heritage
buildings
Leasehold
improvements
Plant and
equipment
Opening balance
377,506
830,321
29,269
62,063
86,915
Purchases (sales)
(94)
67,990
0
4,798
25,793
0
(35,819)
(1,985)
(9,987)
(13,480)
(134)
(1,466)
0
0
0
377,278
861,026
27,284
56,874
99,228
2014
Depreciation
Impairment loss
Closing balance
105
Description of significant unobservable inputs to level 3 valuations:
Sensitivity of fair value measurement to
changes in significant unobservable
inputs
Valuation
technique
Significant
unobservable inputs
Range (weighted
average)
Specialised
land
Market approach
Community service
obligation (CSO)
adjustment
25%
Significant increases (decreases) in the CSO
adjustment would result in a significantly lower
(higher) fair value.
Specialised
buildings
Depreciated
replacement cost
Useful life
2-47 years
Significant increases (decreases) in the
estimated useful life of the asset would result
in a significantly higher (lower) valuation.
Heritage
buildings
Depreciated
replacement cost
Useful life
5-23 years
Significant increases (decreases) in the
estimated useful life of the asset would result
in a significantly higher (lower) valuation.
Leasehold
improvements
Depreciated
replacement cost
Term of lease
1-15 years
Significant increases (decreases) in the
estimated useful life of the asset would result
in a significantly higher (lower) valuation.
Plant and
equipment
Depreciated
replacement cost
Useful life
1-21 years
Significant increases (decreases) in the
estimated useful life of the asset would result
in a significantly higher (lower) valuation.
106
Note 13. Intangible assets
2014
2013
$’000
$’000
130,674
108,343
7,387
7,558
(7,917)
(2,957)
9,214
19,082
(1,184)
0
0
(1,352)
138,174
130,674
Opening balance
28,145
16,947
Amortisation expense(i)
19,382
11,198
Disposals
(1,184)
0
Closing balance
46,343
28,145
Net book value at end of financial year
91,831
102,529
Gross carrying amount
Opening balance
Additions
Reclassification from/(to) plant and equipment
Net additions to/(from) software works in progress
Disposals
Impairment
Closing balance
Accumulated amortisation
(i)
The consumption of intangible produced assets is included in the ‘depreciation and amortisation’ expense line item in note 5(b) and
the comprehensive operating statement.
Significant intangible asset additions
The department has capitalised $20.155 million of expenditure on the Location Based Emergency Warning System (Non-Telstra)
software. This is a significant enhancement to the Emergency Alert that now sees location-based warnings broadcast to all
Australian mobile phone networks during emergencies, regardless of phone carrier.
This software is an enhancement to the existing National Emergency Warning System landline software which has a carrying value
of $7.903 million (2013: $10.071million). It also enhances the existing Telstra mobile only software $6.106 million (2013: $14,362
million).
107
Note 14. Payables
2014
2013
$’000
$’000
Trade creditors and other payables(i)(ii)
108,643
114,047
Accrued capital works
398,801
279,926
Salaries and wages
13,802
8,953
Departure packages
0
933
521,246
403,859
4,462
4,198
836
855
266,419
218,843
271,717
223,896
792,963
627,755
Amounts payable to government agencies*
135,673
155,159
Total non-current payables
135,673
155,159
Total payables
928,636
782,914
Current payables
Contractual
Statutory
Payroll tax
Fringe benefits tax
Amounts payable to government agencies*
Total current payables
* $231.102 million (2013: $182.288 million) relates to Victoria Police.
Non-current payables
Statutory
* $135.673 million (2013: $155.159 million) relates to Victoria Police.
(i) The department’s policy on the average credit period is 30 days.
(ii) This amount includes accrued expenses and other payables.
(a) Maturity analysis of contractual payables
Please refer to note 21(c) (table 21.5) for the maturity analysis of contractual payables.
(b) Nature and extent of risk arising from contractual payables
Please refer to note 21 for the nature and extent of risks arising from contractual payables.
108
Note 15. Borrowings
2014
2013
$’000
$’000
– PPP related finance lease liabilities
20,504
19,379
– Non-PPP related finance lease liabilities
10,022
9,500
30,526
28,879
281,560
301,879
8,934
9,260
Total non current borrowings
290,494
311,139
Total borrowings
321,020
340,018
Current borrowings
Finance lease liabilities(i) (note 18)
Total current borrowings
Non-current borrowings
Finance lease liabilities(i) (note 18)
– PPP related finance lease liabilities
– Non-PPP related finance lease liabilities
(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the
event of default.
(a) Maturity analysis of borrowings
Please refer to note 21(c) (table 21.5) for the maturity analysis of borrowings.
(b) Nature and extent of risk arising from borrowings
Please refer to note 21 for the nature and extent of risk arising from borrowings.
(c) Defaults and breaches
During the current and prior years, there were no defaults and breaches of any of the loans.
109
Note 16. Provisions
2014
2013
$’000
$’000
– Unconditional and expected to be settled within 12 months (ii)(v)
39,792
36,287
– Unconditional and expected to be settled after 12 months(iii)(iv)
6,364
5,552
– Unconditional and expected to be settled within 12 months (ii)
56,502
52,026
– Unconditional and expected to be settled after 12 months(iii)
36,454
34,304
139,112
128,169
– Unconditional and expected to be settled within 12 months (ii)
19,422
18,014
– Unconditional and expected to be settled after 12 months(iii)(iv)
7,037
6,405
2,892
2,810
29,351
27,229
168,463
155,398
24,295
23,747
Provisions for on-costs (note 16(a) and (b))
3,444
3,237
Other provisions (note 16(b))
8,567
8,090
36,306
35,074
204,769
190,472
Annual leave entitlements(iv)(vi)(v)
46,156
41,839
Long service leave entitlements(vi)
92,956
86,330
139,112
128,169
Current provisions
Employee benefits(i) (note 16(a)) – annual leave:
Employee benefits(i) (note 16(a)) – long service leave:
Provisions for on-costs (note 16(a) and (b)):
Other provisions (note 16(b))(v)
Total current provisions(iv)
Non-current provisions
Employee benefits(i) (note 16(a))
Total non-current provisions
Total provisions(iv)
(a)
Employee benefits(i) and related on-costs
Current employee benefits
110
2014
2013
24,295
23,747
163,407
151,916
26,459
24,419
3,444
3,237
29,903
27,656
193,310
179,572
Non-current employee benefits
Long service leave entitlements
Total employee benefits(iv)
Current on-costs(iv)
Non-current on-costs
Total on-costs(iv)
Total employee benefits and related on-costs(iv)
(i)
Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including
on-costs.
(ii) The amounts disclosed are nominal amounts.
(iii) The amounts disclosed are discounted to present value.
(iv)
The 2012-13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee
benefits (refer to note 1(F)).
(v) The 2012-13 comparative has been adjusted for $2.5 million that has been reclassified from annual leave to other
provisions.
(vi)
The 2012-13 comparative has been adjusted for an $11.5 million error in the disclosure between annual leave and long service
leave entitlements for current employee entitlements.
(b)
Movement in provisions
Employee benefit
on-costs
Other
provisions
Total
$’000
$’000
$’000
Opening balance
27,656
10,900
38,556
Additional provisions recognised
15,069
3,070
18,139
(12,822)
(2,813)
(15,635)
0
302
302
Closing balance
29,903
11,459
41,362
Current
26,459
2,892
29,351
3,444
8,567
12,011
Employee benefit
on-costs
Other
provisions
Total
$’000
$’000
$’000
Opening balance(i)(ii)
25,393
12,012
37,405
Additional provisions recognised(i)(ii)
16,007
2,917
18,924
2014
Reductions arising from payments/other sacrifices of future economic
benefits
Unwind of discount and effect of changes in the discount rate
Non-current
2013
111
2014
2013
(13,744)
(2,733)
(16,477)
0
(1,296)
(1,296)
Closing balance
27,656
10,900
38,556
Current(i)(ii)
24,419
2,810
27,229
3,237
8,090
11,327
Reductions arising from payments/other sacrifices of future economic
benefits(ii)
Unwind of discount and effect of changes in the discount rate
Non-current
(i)
The 2012-13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee
benefits (refer to note 1(F)).
(ii) The 2012-13 comparative has been adjusted for $2.5 million that has been reclassified from annual leave to other
provisions.
112
Note 17. Superannuation
Employees of the department are entitled to receive superannuation benefits and the department contributes to both defined benefit
and defined contribution plans. The defined benefit plans provides benefits based on years of service and final average salary.
The department does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive
obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The
Department of Treasury and Finance recognises and discloses the state’s defined benefit liabilities in its disclosure for administered
items.
However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the
comprehensive operating statement of the department.
The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by the
department are as follows:
Fund
Paid contribution
for the
Contribution outstanding
at year end
2014
2013
2014
2013
$’000
$’000
$'000
$'000
7,570
8,274
41
21
36,472
34,211
213
92
8,698
7,365
54
22
52,740
49,850
308
135
Defined benefit plans:
Emergency Services and State Super
– revised and new
Defined contribution plans:
VicSuper
Various other
Total
The basis for contributions is determined by the various schemes.
113
Note 18. Leases
Leasing arrangements
As part of the Corrections’ Long Term Management Strategy, the state entered into a 25 year public private partnership
(PPP) arrangement for the design, construction and maintenance of two prisons, Marngoneet Correctional Centre and
Metropolitan Remand Centre. The Marngoneet Correctional Centre is a medium security facility located at Lara,
providing intensive treatment and offender management programs for males who are at moderate to high risk of reoffending. The Metropolitan Remand Centre is a maximum security facility located at Ravenhall for unsentenced male
prisoners. The finance leases for the provision of these prison facilities end in 2031, and are disclosed in the table below.
The commitments for facilities maintenance and security services, which also expire in 2031, are disclosed in note 19.
The State also entered into finance leases for the provision of prison facilities for 20 years at Fulham Correctional Centre
and 15 years at Port Phillip Prison. Fulham Correctional Centre accommodates predominantly mainstream sentenced
prisoners. Port Phillip Prison is a maximum security facility providing remand, mainstream, protection and specialist
accomodation for prisoners. The finance lease for Fulham’s prison facilities ends in 2017, and is disclosed in the table
below. The finance lease for Port Phillip’s prison facilities ended in September 2012, and the asset reverted to the State.
The commitments for facilities maintenance and correctional services for both prisons, which expire in 2017, are
disclosed in note 19.
The state has also entered into a 20 year contract with the private sector for the design, construction and management of
the County Court. The facility will provide the County Court and court users with accommodation services at the facility
throughout the term of the contract, which ends in 2022. The finance lease for these facilities are disclosed in the table
below. The operation and maintenance commitments are disclosed in note 19.
Finance lease liabilities payable
Minimum future lease
payments
Present value of minimum
future lease payments
2014
2013
2014
2013
$’000
$’000
$’000
$’000
50,572
50,695
20,503
19,380
Longer than 1 year and not longer than 5 years
192,884
199,161
87,252
87,903
Longer than 5 years
412,766
456,874
194,309
213,975
656,222
706,730
302,064
321,258
10,771
10,382
10,022
9,500
9,278
9,744
8,934
9,260
0
0
0
0
20,126
18,956
676,271
726,856
321,020
340,018
(355,251)
(386,838)
0
0
321,020
340,018
321,020
340,018
PPP related finance lease liabilities payable
Not longer than 1 year
Other finance lease liabilities payable
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years
20,049
Minimum future lease payments*
Less future finance charges
Present value of minimum lease payments
18,760
Included in the financial statements as:
114
Current borrowings lease liabilities (note 15)
Non-current borrowings lease liabilities (note 15)
30,526
28,879
290,494
311,139
321,020
340,018
* Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual.
(a)
Maturity analysis of finance lease liabilities
Please refer to note 21(c) (table 21.5) for the maturity analysis of finance lease liabilities.
(b)
Nature and extent of risk arising finance lease liabilities
Please refer to notes 21(c) and (d) for the nature and extent of risk arising from finance lease liabilities.
115
Note 19. Commitments for expenditure
(a) Commitments other than public private partnerships
($’000)
2014
2013
Nominal
value
Nominal
value
Property, plant and equipment
130,313
323,450
Total capital expenditure commitments
130,313
323,450
Software
20,648
37,216
Total intangible asset commitments
20,648
37,216
237,590
298,253
880
475
238,470
298,728
446,375
454,410
Infringement Management and Enforcement Services contracts
76,277
122,655
Traffic camera services contracts
31,490
68,108
148,767
173,018
Working with children contracts
14,847
32,375
Other
55,434
45,624
773,190
896,190
1,162,621
1,555,584
Capital expenditure commitments
Intangible asset commitments
Operating lease commitments
Accomodation leases
Other
Total operating lease commitments
Outsourcing commitments
Prison operation and maintenance contracts
Health services contracts
Total outsourcing commitments
Total commitments other than public private partnerships
(b
)
Public private partnerships(i)(ii)(iii)(iv)
($’000)
116
2014
2013
Net present
value
Nominal
value
Net present
value
Nominal
value
520,705
611,543
507,915
614,116
34,360
45,431
34,875
47,971
555,065
656,974
542,790
662,087
Commissioned public private partnerships operation and maintenance commitments
Private Prisons
County Court
Total commissioned public private partnerships – operation
and maintenance commitments
(i) The present values of the minimum lease payments for commissioned public private partnerships (PPPs) are recognised
on the balance sheet and are not disclosed as commitments.
(ii) The 2012-13 comparative for private prisons has been adjusted for an additional $224.5 million (nominal value) operating
and maintenance commitment for Port Phillip Prison. In 2012-13, the operating and maintenance commitment for Port Phillip
Prison was incorrectly shown as one year instead of five years’ commitment.
(iii) The 2012-13 comparatives have also been adjusted to align with the Department of Treasury and Finance’s policy to use
the bidder’s discount rate to present value the commitments for each individual PPP, and to exclude any calculation for
inflation. Where the bidder’s discount rate was no longer available, the discount rate was based on the Reserve Bank of
Australia’s 10 year rate for semi annual coupon bonds.
(iv) Refer to note 18 for further details on the commissioned public private partnership projects. This note discloses only other
operating and maintenance commitments for these projects.
(c) Commitments payable(i)
($’000)
2014
2013
Nominal
value
Nominal
value
126,021
184,727
4,292
138,723
0
0
130,313
323,450
20,648
37,216
Longer than 1 year and not longer than 5 years
0
0
Longer than 5 years
0
0
20,648
37,216
Capital expenditure commitments payable
Less than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years
Total capital expenditure commitments
Intangible assets commmitments payable
Less than 1 year
Total intangible assets commitments
Operating lease commitments payable
117
Less than 1 year
39,531
42,420
118,842
143,891
80,097
112,417
238,470
298,728
Less than 1 year
196,855
171,969
Longer than 1 year and not longer than 5 years
181,588
314,911
Longer than 5 years
394,747
409,310
Total outsourcing commitments
773,190
896,190
Less than 1 year
150,030
116,795
Longer than 1 year and not longer than 5 years
365,955
387,378
Longer than 5 years
140,989
157,914
Total public private partnership operation and maintenance commitments
656,974
662,087
1,819,595
2,217,671
Longer than 1 year and not longer than 5 years
Longer than 5 years
Total operating lease commitments
Outsourcing commitments payable
Public private partnership operation and maintenance commitments payable(ii)
Total commitments
(i) For future finance lease payments refer to note 18.
(ii) The 2012-13 comparative has been adjusted for an additional $224.5 million (nominal value) operating and maintenance
commitment for Port Phillip Prison. In 2012-13, the operating and maintenance commitment for Port Phillip Prison was
incorrectly shown as one year instead of five years’ commitment.
118
Note 20. Contingent assets and contingent liabilities
2014
2013
$’000
$’000
Make good provisions
4,589
2,516
Liabilities pending the outcome of legal action
3,395
11,312
7,984
13,828
Contingent assets
Nil contingent assets
Contingent liabilities
In prior financial years, a contingent liability has been disclosed for pending criminal injuries claims in relation to
payments under the Victims of Crime Assistance Act 1996. The payments are made to help victims of crime recover from
the act of violence to which they had been subjected and to assist with expenses that have resulted from the crime.
These are administered payments and therefore should not be disclosed as part of the controlled notes of the financial
statements.
Unquantifiable contingent liability
Native title
A number of claims have been filed with the Federal Court under the Commonwealth Native Title Act 1993 that affect
Victoria. It is not feasible at this time to quantify any future liability.
119
Note 21. Financial instruments
(a) Financial risk management objectives and policies
The department’s principal financial instruments comprise of:
•
•
•
•
•
•
cash assets
term deposits
receivables (excluding statutory receivables)
managed investment schemes
payables (excluding statutory payables)
finance lease payables.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement, and the basis on which income and expenses are recognised, with respect of each class of financial
asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.
The main purpose in holding financial instruments is to prudentially manage the department’s financial risks within the
government policy parameters.
The department’s main financial risks include credit risk, liquidity risk, interest rate risk, and equity price risk. The
department manages these financial risks in accordance with its financial risk management policy.
The department uses different methods to measure and manage the different risks to which it is exposed. Primary
responsibility for the identification and management of financial risks rests with the Department of Justice Finance
Committee.
The carrying amounts of the department’s contractual financial assets and financial liabilities by category are in Table 21.1
below.
Categorisation of financial instruments(i)
Table 21.1
($’000)
Contractual financial
assets / liabilities
designated at fair value
through profit or loss
Contractual
financial assets
– loans and
receivables
Contractual
financial
liabilities at
amortised cost
Total
Cash and deposits
0
250,515
0
250,515
Receivables
0
10,276
0
10,276
148,492
0
0
148,492
0
100,600
0
100,600
148,492
361,391
0
509,883
– Trade creditors and other payables
0
0
108,643
108,643
– Accrued capital works
0
0
398,801
398,801
2014
Contractual financial assets
Investments and other contractual financial
assets:
– Managed investment schemes
– Term deposits > 3 months
Total contractual financial assets
Contractual financial liabilities
Payables:
120
– Salary and wages
0
0
13,802
13,802
– Departure Packages
0
0
0
0
0
0
321,020
321,020
0
0
842,266
842,266
Contractual financial
assets / liabilities
designated at fair value
through profit or loss
Contractual
financial assets
– loans and
receivables
Contractual
financial
liabilities at
amortised cost
Total
Cash and deposits
0
233,940
0
233,940
Receivables
0
14,926
0
14,926
132,906
0
0
132,906
0
93,796
0
93,796
132,906
342,662
0
475,568
– Trade creditors and other payables
0
0
114,047
114,047
– Accrued capital works
0
0
279,926
279,926
– Salary and wages
0
0
8,953
8,953
– Departure Packages
0
0
933
933
0
0
340,018
340,018
0
0
743,877
743,877
Borrowings:
– Finance lease liabilities
Total contractual financial liabilities
($’000)
2013
Contractual financial assets
Investments and other contractual financial
assets:
– Managed investment schemes
– Term deposits > 3 months
Total contractual financial assets
Contractual financial liabilities
Payables:
Borrowings:
– Finance lease liabilities
Total contractual financial liabilities
(i)
Amounts disclosed in this table exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit
recoverable and tax payable).
Net holding gain/(loss) on financial instruments by category
Table 21.2
121
($’000)
Net holding
gain/(loss)
Total interest
income /
(expense)
Total
Designated at fair value through profit or loss
10,013
0
10,013
Loans and receivables (at amortised cost)
(1,237)
9,798
8,561
8,776
9,798
18,574
At amortised cost
0
32,096
32,096
Total contractual financial liabilities
0
32,096
32,096
Net holding
gain/(loss)
Total interest
income /
(expense)
Total
(2,460)
0
(2,460)
138
13,760
13,898
(2,322)
13,760
11,438
At amortised cost
0
33,439
33,439
Total contractual financial liabilities
0
33,439
33,439
2014
Contractual financial assets
Total contractual financial assets
Contractual financial liabilities
($’000)
2013
Contractual financial assets
Designated at fair value through profit or loss
Loans and receivables (at amortised cost)
Total contractual financial assets
Contractual financial liabilities
The net holding gains or losses disclosed above are determined as follows:
•
•
•
for cash and deposits, and loans or receivables, the net gain or loss is calculated by taking the movement in the fair
value of the asset, the interest income, and minus any impairment recognised in the net result
for financial liabilities measured at amortised cost, the net gain or loss is the interest expense
for financial assets designated at fair value through profit or loss, the net gain or loss is calculated by taking the
movement in the fair value of the financial asset.
(b) Credit risk
Credit risks arise from the contractual financial assets of the department, which comprises of cash and deposits, nonstatutory receivables and investments and other contractual financial assets. The department’s exposure to credit risk
arises from the potential default of a counterparty on their contractual obligations resulting in financial loss to the
department. Credit risk is measured at fair value and is monitored on a regular basis.
Credit risk associated with the department’s contractual financial assets is minimal because the main debtor is the
Victorian Government. Credit risk in relation to receivables is also monitored by management by reviewing the ageing of
receivables on a monthly basis.
In addition, the department does not engage in hedging for its contractual financial assets and mainly obtains contractual
122
financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank.
Credit risk in relation to the department’s investments and other contractual financial assets is managed by Treasury
Corporation Victoria and the Victorian Funds Management Corporation.
Provision of impairment for contractual financial assets is recognised when there is objective evidence that the
department will not be able to collect on a receivable. Objective evidence includes financial difficulties of the debtor,
default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.
Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the
financial statements, net of any allowances for losses, represents the department’s maximum exposure to credit risk
without taking account of the value of any collateral obtained.
Credit quality of contractual financial assets that are neither past due nor impaired (i)
($’000)
Table 21.3
2014
Financial
institutions
Government
Agencies
Other
Total
(2,312)
67,503
185,324
250,515
2,250
2,988
3,560
8,798
0
0
249,092
249,092
(62)
70,491
437,976
508,405
(2,129)
53,416
182,653
233,940
2,280
5,227
3,134
10,641
0
0
226,702
226,702
151
58,643
412,489
471,283
Cash and deposits
Receivables
Investments and other financial assets
Total contractual financial assets
2013
Cash and deposits
Receivables (ii)
Investments and other financial assets
Total contractual financial assets
(i)
The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax
credit recoverable).
(ii)
The 2012-13 comparative has been adjusted for the incorrect classification of a receivable as from financial institutions instead of
from government agencies.
Contractual financial assets that are either past due or impaired
There are no material financial assets which are individually determined to be impaired. Currently the department does not hold any
collateral as security nor credit enhancements relating to any of its financial assets.
There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and
they are stated at the carrying amounts as indicated.
The ageing analysis table below discloses the ageing only of contractual financial assets that are past due but not impaired.
Ageing analysis of contractual financial assets(i)
Table 21.4
($’000)
Past due but not impaired
2014
Carrying
amount
Not past
due and not Less than
impaired
1month
1 to 3
months
3 months
to 1 year
1 to 5
years
123
Receivables:
– Accrued interest
5,627
5,627
0
0
0
0
– Other receivables
4,649
3,171
822
564
42
50
– Managed Investment Schemes
148,492
148,492
0
0
0
0
– Term Deposits
100,600
100,600
0
0
0
0
259,368
257,890
822
564
42
50
– Accrued interest
3,051
3,051
0
0
0
0
– Other receivables
11,875
7,590
842
2,220
1,088
135
132,906
132,906
0
0
0
0
93,796
93,796
0
0
0
0
241,628
237,343
842
2,220
1,088
135
Investments and other contractual financial assets
2013
Receivables:
Investments and other contractual financial assets
– Managed investment schemes
– Term deposits
(i)
The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax
credit recoverable).
(c) Liquidity risk
Liquidity risk arises when the department is unable to meet its financial obligations as they fall due. The department
operates under the government’s fair payments policy of settling financial obligations within 30 days and in the event of a
dispute, making payments within 30 days from the date of resolution.
The department’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the
balance sheet. The exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of
risk.
The carrying amount detailed in the following table of contractual financial liabilities recorded in the financial statements
represents the department’s maximum exposure to liquidity risk.
Table 21.5 discloses the contractual maturity analysis for the department’s contractual financial liabilities.
Maturity analysis of contractual financial liabilities(i)(ii)
Table 21.5
($’000)
Maturity dates(i)
2014
Carrying
amount
Nominal
amount
Less than
1 month
1 to 3
months
3 months
to 1 year
1 to 5
years
Greater
than 5
years
Contractual payables:
124
– Other payables
521,246
521,246
521,301
(24)
(30)
(1)
0
321,020
676,271
6,672
9,830
44,841
202,162
412,766
842,266
1,197,517
527,973
9,806
44,811
202,161
412,766
403,859
403,859
166,564
80
237,215
0
0
340,018
726,856
6,286
9,902
44,889
208,905
456,874
743,877
1,130,715
172,850
9,982
282,104
208,905
456,874
Borrowings:
– Finance lease liabilities
2013
Contractual payables:
– Other payables
Borrowings:
– Finance lease liabilities
(i) Maturity analysis is presented using the contractual undiscounted cash flow.
(ii) The carrying amounts disclosed exclude statutory amounts (e.g. GST payable).
(d) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. The department’s exposures to market risk are insignificant and primarily through interest rate risk and
equity price risk, with only minimal exposure to foreign currency risk.
Foreign currency risk
The department is not exposed to significant foreign currency risk through its payables relating to purchases of supplies
from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short
timeframe between commitment and settlement.
Interest rate risk
Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in
market interest rates. The department does not hold any interest bearing financial instruments that are measured at fair
value, and therefore has no exposure to fair value interest rate risk.
Cash flow interest rate risk is the risk that future cash flows of a financial instrument will fluctuate because of changes in
market interest rates.
The department has minimal exposure to cash flow interest rate risks through its cash and deposits that are at floating
rate. Management has concluded for cash at bank, it can be left at floating rate without necessarily exposing the
department to significant risk. Management monitors movement in interest rates on a regular basis.
Interest rate exposures are insignificant and arise predominantly from assets bearing variable interest rates. The aim is to
reduce risk by implementing a duration limits policy and restricting exposure to illiquid, long dated floats. Minimisation of
risk on financial liabilities is achieved by undertaking fixed rate finance lease arrangements.
The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in Table
21.6.
Equity price risk
The department is exposed to equity price risk through its managed investment schemes. The department appointed the
Victorian Funds Management Corporation to manage its investment portfolio in accordance with the Investment Risk
Management Plan approved by the Treasurer. The fund manager on behalf of the department closely monitors
performance and manages the equity price risk through diversification of its investment portfolio.
Interest rate exposure of financial instruments(i)
Table 21.6
($’000)
125
2014
Weighted
average
effective
interest rate %
Interest rate exposure
Carrying
amount
Fixed interest
rate
Variable
interest rate
Non-interest
bearing
Financial assets
Cash and deposits
2.99%
250,515
208,297
2,715
39,503
3.22%
5,627
5,627
0
0
4,649
0
0
4,649
249,092
100,600
0
148,492
509,883
314,524
2,715
192,644
9,439
0
0
9,439
511,807
0
0
511,807
321,020
321,020
0
0
842,266
321,020
0
521,246
3.38%
233,940
195,339
1,037
37,564
3.11%
3,051
3,051
0
0
11,875
0
0
11,875
226,702
93,796
0
132,906
475,568
292,186
1,037
182,345
8,571
0
0
8,571
Receivables:
– Accrued interest
– Other receivables
Investment and other contractual financial assets
3.36%
Total financial assets
Financial liabilities
Payables:
– Amounts payable to government agencies
– Other payables
Borrowings:
– Finance lease liabilities
8.71%
Total financial liabilities
2013
Financial assets
Cash and deposits
Receivables:
– Accrued interest
– Other receivables
Investment and other contractual financial assets
Total financial assets
3.58%
Financial liabilities
Payables:
– Amounts payable to government agencies
126
– Other payables
395,288
0
0
395,288
340,018
340,018
0
0
743,877
340,018
0
403,859
Borrowings:
– Finance lease liabilities
8.77%
Total financial liabilities
(i)
The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government, GST input tax
credit recoverable, and GST payable).
Taking into account past performance, future expectations, economic forecasts and fund managers’ knowledge and
experience of the financial markets, the department believes the following movements are ‘reasonably possible’ over the
next 12 months:
Market risk sensitivity
Table 21.7
($’000)
Interest rate risk
Net result
Other price risk
Equity Net result
Equity Net result
Equity Net result
Equity
Carrying
amount
(+)1.0%
(+)1.0%
(-)1.0%
(-)1.0%
(+)10%
(+)10%
(-)10%
(-)10%
2,715
27
0
(27)
0
0
0
0
0
– Equity trust
86,915
0
0
0
0
8,692
8,692
(8,692)
(8,692)
– Fixed interest trust
43,023
0
0
0
0
4,302
4,302
(4,302)
(4,302)
– Unlisted property trust
18,554
0
0
0
0
1,855
1,855
(1,855)
(1,855)
151,207
27
0
(27)
0
14,849
14,849
(14,849)
(14,849)
2014
Contractual financial assets:
Cash and deposits
Managed investment
schemes
Total impact
($’000)
Interest rate risk
2013
Other price risk
Net result
Equity
Net result
Equity
Net result
Equity
Net result
Equity
Carrying
amount
(+)1.0%
(+)1.0%
(-)1.0%
(-)1.0%
(+)10%
(+)10%
(-)10%
(-)10%
1,037
10
0
Contractual financial assets:
Cash and deposits
(10)
0
0
0
0
0
Managed investment
schemes
127
– Equity trust
76,294
0
0
0
0
7,629
7,629
(7,629)
(7,629)
– Fixed interest trust
39,535
0
0
0
0
3,954
3,954
(3,954)
(3,954)
– Unlisted property trust
17,077
0
0
0
0
1,708
1,708
(1,708)
(1,708)
133,943
10
0
(10)
0
13,291
13,291
(13,291)
(13,291)
Total impact
(e) Fair Value
The fair values and net fair values of financial instrument assets and liabilities are determined as follows:
Level 1 – the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are
determined with reference to quoted market prices;
Level 2 – the fair value is determined using inputs other than quoted prices that are observable for the financial asset or
liability, either directly or indirectly; and
Level 3 – the fair value is determined in accordance with generally accepted pricing models based on discounted cash
flow analysis using unobservable market inputs.
The department’s managed investment schemes are within level 2 of the fair value hierarchy.
The department considers that the carrying amount of financial assets and liabilities recorded in the financial statements
to be a fair approximation of their fair values, because of the short term nature of the financial instruments and the
expectation that they will be paid in full.
The following table shows that the fair values of the contractual financial assets and liabilities are the same as the
carrying amounts.
Comparison between carrying amount and fair value(i)
Table 21.8
($’000)
Carrying amount
Fair value
Carrying amount
Fair value
2014
2014
2013
2013
250,515
250,515
233,940
233,940
– Accrued interest
5,627
5,627
3,051
3,051
– Other receivables
4,649
4,649
11,875
11,875
Investment and other contractual
financial assets
249,092
249,092
226,702
226,702
Total contractual financial assets
509,883
509,883
475,568
475,568
Contractual financial assets
Cash and deposits
Receivables:
Contractual financial liabilities
Payables:
– Amounts payable to government
agencies
– Other payables
9,439
511,807
9,439
511,807
8,571
395,288
8,571
395,288
128
Borrowings:
– Finance lease liabilities
Total contractual financial liabilities
321,020
321,020
340,018
340,018
842,266
842,266
743,877
743,877
(i)
The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government, GST input tax
credit recoverable, and GST payable).
129
Note 22. Cash flow information
(a) Reconciliation of cash and cash equivalents
For the purposes of the cash flow statement and balance sheet, cash includes cash on hand and in banks and
investments in term deposits of less than three months, net of outstanding bank overdrafts. Cash at the end of the
financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows:
Cash(i)
Funds held in trust(ii)
– cash
– term deposits
2014
2013
$’000
$’000
(2,219)
(2,034)
44,437
40,992
208,297
194,982
250,515
233,940
The above figures are reconciled to cash at the end of the financial year as shown in the cash flow statement as follows:
Balance as per cash flow statement
250,515
233,940
1,008
533
11,150
12,539
1,662
1,475
22,204
17,582
172,273
162,853
208,297
194,982
Term deposits comprise the following:
Victorian Consumer Law Fund
Domestic Builders Fund
National Gambling Research Trust
Residential Tenancies Fund
Victorian Property Fund
(i) Due to the State of Victoria’s investment policy and government funding arrangements, government departments generally do not
hold a large cash reserve in their bank accounts. Cash received by a department from the generation of revenue is generally paid into
the state’s bank account, known as the Public Account. Similarly, any departmental expenditure, including those in the form of cheques
drawn by the department for the payment of goods and services to its suppliers and creditors are made via the Public Account. The
process is such that, the Public Account would remit to the department the cash required for the amount drawn on the cheques. This
remittance by the Public Account occurs upon the presentation of the cheques by the department’s suppliers or creditors.
The above funding arrangements often result in departments having a shortfall in the cash at bank required for payment of unpresented
cheques at the reporting date.
At 30 June 2014, cash at bank includes the amount of a shortfall for the payment of unpresented cheques of $1.942 million (2013:
$1.758 million).
(ii) Funds held in trust are quarantined for use specifically for the purposes under which each trust fund has been established and is not
used for operating purposes.
130
(b) Reconciliation of net result for the period
2014
2013
$’000
$’000
50,295
42,623
(1,730)
(2,030)
109,354
99,381
0
1,351
(14,154)
(35,701)
Net (gain)/loss from financial instruments
(9,760)
2,322
Net gain/(loss) from revaluation of long service leave liability(ii)
(1,029)
(1,726)
278
(1,296)
Decrease / (increase) in receivables
(56,293)
(49,826)
Decrease / (increase) in inventories
(1,460)
142
69
345
Increase / (decrease) in payables
26,847
22,078
Increase / (decrease) in provisions (i)(ii)
15,047
7,845
117,464
85,508
Net result for the period(i)
Non-cash movements:
Net (gain)/loss on disposal of non-current assets
Depreciation and amortisation of non-current assets
Impairment of non-current assets
Resources received free of charge or for nominal consideration
Net gain/(loss) from revaluation of other provisions (ii)
Movements in assets and liabilities:
Decrease / (increase) in prepayments
Net cash flows from/(used in) operating activities(i)
(i) The 2012-13 comparative has been adjusted due to the changes in the revised accounting standard AASB 119 Employee benefits
(refer to note 1(F)).
(ii) The 2012-13 comparative has been adjusted to provide further disclosures on non-cash movements.
131
Note 23. Physical asset revaluation surplus
2014
2013
$’000
$’000
959,233
979,978
220,455
241,200
(134)
(20,745)
220,321
220,455
738,778
738,778
(1,466)
0
Balance at end of financial year
737,312
738,778
Total physical asset revaluation surplus
957,633
959,233
(1,600)
(20,745)
Physical asset revaluation surplus:(i)
Balance at beginning of financial year
Land
Balance at beginning of financial year
Revaluation increment/(decrement) during the year
Balance at end of financial year
Buildings
Balance at beginning of financial year
Impairment losses
Net change in physical asset revaluation surplus
(i) The physical asset revaluation surplus arises from the revaluation of land and buildings.
132
Note 24. Summary of compliance with annual parliamentary appropriations and special appropriations
(a) Summary of compliance with annual parliamentary appropriations
The following table discloses the details of the various parliamentary appropriations received by the department for the year. In accordance with accrual output-based management
procedures ‘provision of outputs’ and ‘additions to net assets’ are disclosed as ‘controlled’ activities of the department. Administered transactions are those that are undertaken on
behalf of the State over which the department has no control or discretion.
APPROPRIATION ACT
FINANCIAL MANAGEMENT ACT 1994
Annual
Appropriation
Advance from
Treasurer
Section 3(2)
Section 29
Section 30
Section 32
Section 35
Advances
Total Parliamentary
Authority
Appropriations
Applied
Variance
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
4,791,642
3,982,759
10,011
42,614
0
1,101
255,947
238,663
78,386
(61,737)
95,595
95,812
0
0
5,231,581
4,299,211
5,092,933
4,156,875
138,648
142,336(i)
747
949
0
0
0
0
0
0
0
(158)
0
0
0
0
747
791
741
791
6
0
4,792,389
3,983,708
10,011
42,614
0
1,101
255,947
238,663
78,386
(61,895)
95,595
95,812
0
0
5,232,328
4,300,002
5,093,674
4,157,666
138,654
142,336
708,894
242,488
335
0
0
0
10,152
10,090
(78,386)
61,895
117,263
53,908
0
0
758,258
368,381
262,827
114,876
495,431
253,505(ii
Controlled
Provision of
outputs
Victorian Law
Reform
Commission
Additions to
net assets
)
Administered
Payments
made on
behalf of the
State
54,461
54,461
0
0
0
0
0
0
0
0
0
0
0
0
54,461
54,461
28,644
35,420
25,817
133
19,041(iii)
Total
5,555,744
4,280,657
10,346
42,614
0
1,101
266,099
248,753
0
0
212,858
149,720
0
0
6,045,047
4,722,844
5,385,145
4,307,962
659,902
134
414,882
(a) Summary of compliance with annual parliamentary appropriations (continued)
(i) Provision of outputs (including Victorian Law Reform Commission)
The majority of the $138.654 million variance (2013: $142.336 million) relates to rephasing and carryover of output
appropriations from 2013-14 to 2014-15.
The primary drivers of the rephasing and carryover are:
•
•
•
•
•
•
•
Infringement Management and Enforcement Services build (IMES) – ongoing implementation delays to the
IMES system baseline build has delayed the implementation of system enhancements to accommodate
changes in business practice.
Regional Racing Infrastructure Fund and the Victorian Racing Industry Fund – the timing of certain projects will
extend beyond the 2013-14 financial year in which they were initially anticipated to occur. While funds are
committed, the precise timing of claims is dependent upon receipt of appropriate documentation indicating
project stages have been completed in line with Ministerial approval, payment is then facilitated.
The Independent Broad-based Anti-Corruption Commission has functions and powers to expose and
investigate allegations of serious corrupt conduct by public bodies or officers, and to investigate allegations of
misconduct by police personnel. The level of investigations have increased in the latter part of the financial
year and several of these investigations will carryover into 2014-15.
Office of Public Prosecutions – There have been some delays in completing works associated with the
development of the new practice management system which has impacted other corporate modernisation
projects including the integration with the records management system. These works will carryover into 201415.
National Disaster Resilience Program – funding is provided from the Commonwealth for the National
Partnership grant program that focuses on building resilience to withstand natural disasters. Grant payments to
communities extend after July 2014.
Corrections – funding has been carried over into 2014-15 in line with completion schedules for the delivery of
new beds across the Corrections system.
Victoria Police – funding has been carried over into 2014-15 to continue with the development of the Policing
Information Process and Practice reform program and also to meet the requirements of information technology
contracts and the IT refresh program.
(ii) Additions to net asset base
The majority of the $495.431 million variance (2013: $253.505 million) relates to rephasing and carryover of
ATNAB appropriation into 2014-15.
The primary drivers of the rephasing and carryover are:
•
•
•
•
•
•
•
Infringement Management and Enforcement Services build (IMES) – ongoing implementation delays to the
IMES system baseline build has delayed the implementation of system enhancements to accommodate
changes in business practice.
The State Coronial Services Redevelopment Project – delays during the construction phase of the Donor
Tissue Bank of Victoria have resulted in the project continuing into 2014-15.
Additional prison beds – funding has been rephased for additional beds at Marngoneet Prison to align with
revised contracting timeframe.
Hopkins Correctional Centre – funding has been rephased into 2014-15 to align with revised contract
completion timeframes.
Redevelopment of Bull Street, Bendigo – construction of the new facility is in progress and funding has been
rephased to meet construction timelines with completion expected in 2014-15.
High Security and Management Prisoners – the construction of the new 40 bed high security unit at Barwon
Prison has commenced and funding has been rephased to meet construction timelines.
New Ravenhall Prison – Appropriation has been rephased into future years to align with the current
procurement schedule of the proposed public private partnership arrangement.
(iii) Administered – Payments on behalf of state
The variance of $25.817 million (2013: $19.041 million) is due to an over estimate of amounts paid/payable to
other states and jurisdictions for their share of Tattersall’s taxation which is collected in Victoria.
135
(b) Summary of compliance with special appropriations
Authority
Purpose
Remuneration to Judges of the Supreme Court of
Victoria and the Chief Justice
Appropriations applied
2014
2013
$’000
$’000
18,807
17,893
6,513
6,322
27,248
26,647
1
Constitution Act 1975 (No. 8750/1975), s.82 (7)
2
Constitution Act 1975 (No. 8750/1975), s.82 (7)
3
County Court Act 1958 (No. 6230/1958) s.10 (7) Remuneration to Judges of the County Court of
Victoria
4
Victorian Civil and Administrative Tribunal Act
1998 (No. 53/1998), s.17AA
Remuneration to non-judicial members
6,725
0
5
Victims of Crime Assistance Act 1996 (No.
81/1996), s.69
Operating costs of the Victims of Crime Assistance
Tribunal
2,880
2,365
6
Electoral Act 2002 (No. 23/2002), s.181
Cost incurred by the Victorian Electoral Commission
23,062
40,250
7
Magistrates’ Court Act 1989 (No. 51/1989), sch.1 Remuneration to Magistrates of the Magistrates’
Pt 1 cl.10
Court of Victoria
45,795
43,550
8
Juries Act 2000 (No. 53/2000), s.59
Compensation to jurors from the WorkCover Authority
Fund under the Accident Compensation Act 1985
20
372
9
VicSES Volunteer Work Comp (Victoria State
Emergency Service Act 2005 (Act No 51/2005),
s.52)
Payments to SES volunteers for work related injuries
under 2005 Act
150
135
322
134
58
91
1,963
0
133,543
137,759
2,330
2,239
Remuneration to the President and Judges of the Court
of Appeal Division of the Supreme Court of Victoria
10 Volunteer Work Comp (Emergency Management Payments to volunteers for work related injuries under
Act 1986 (Act No 30/1986), s.32)
1986 Act
11 Corrections Act 1986 (No. 117/1986), s.104ZW
Compensation to CCS from the WorkCover Authority
Fund under the Accident Compensation Act 1985
12 Financial Management Act 1994 (No. 18/1994),
s.10
Payment of a Commonwealth grant to Victoria Police
under section 10 of the Financial Management Act 1994
Total
13 Electoral Act 2002 (No. 23/2002), s.181
Capital component of remuneration to Victorian
Electoral Commission
14 Constitution Act 1975 (No. 8750/1975), s.82 (7)
Capital component of remuneration to Judges of the
Supreme Court of Victoria.
365
363
15 Constitution Act 1975 (No. 8750/1975), s.82 (7)
Capital component of remuneration to Judges of the
Court of Appeals Division of the Supreme Court of
Victoria
98
81
16 County Court Act 1958
(No. 6230/1958) s.10 (7)
Capital component of remuneration to Judges of the
County Court of Victoria
560
603
17 Magistrates’ Court Act 1989 (No. 51/1989), sch.1 Capital component of remuneration to Magistrates of
Pt 1 cl.10
the Magistrates’ Court of Victoria
1,066
1,102
4,419
4,388
Administered special appropriations applied
136
Authority
Purpose
18 Crown Proceedings Act 1958
(No. 6232/1958), s.26
Payments due for Crown Proceedings in the Supreme
Court of Victoria
19 Victims of Crime Assistance Act 1996 (No.
81/1996), s.69
Costs incurred by the Tribunal and payments to
victims of crime
20 Melbourne City Link Act 1995
(No. 107/1995), s.14 (4)
Appropriations applied
546,113
2,339
39,122
41,338
Payments to City Link
2,584
2,797
21 EastLink Project Act 2004
(No 39/2004), s.26
Payments to East Link
1,357
1,142
22 Electoral Act 2002 (No. 23/2002), s.215
Electoral entitlements
15
78
589,191
47,694
Total
137
Note 25. Ex-gratia expenses
There were no ex-gratia expenses in the 2013-14 financial year. In 2012-13, ex-gratia expenses were $195,000. The
definition of ex-gratia expenses changed under Financial Reporting Direction (FRD) 11A Disclosure of Ex-gratia
Expenses, which applied for the first time in the 2013-14 financial year.
Note 26. Annotated income agreements
The following is a listing of Annotated Revenue Retention Agreements approved by the Treasurer under Section 29 of the
Financial Management Act 1994:
2014
2013
$’000
$’000
Application Fees collected with VCAT
5,746
4,212
Birth, Deaths and Marriages
5,485
5,681
35
24
49,680
43,890
240
131
31,919
27,418
6,310
3,461
Office of the Emergency Services Commissioner
18,827
23,531
OPA Public Information and Education Programs
66
77
10,841
8,815
Probate Notification Fees
899
856
Retailing of Court Data (Magistrates Court)
711
1,094
Sale of Business Name Information
105
94
1,144
1,213
40,678
35,960
State Control Centre Facility Charge
4,132
2,099
Victorian Workcover Authority (Magistrates Court)
7,954
7,641
VCGLR Licence and Permit Application Investigations (i)
788
831
VEOHRC Community Education Programs(i)
469
497
8,607
8,503
11,053
10,955
User charges, or sales of goods and services
Civil Marriage Services (Magistrates Court)
Court Fees
Dispute Settlement Services Victoria
Infringement Court Services – Filing Fees
National Emergency Warning System
Prison Industries
Secretariat for Council of Legal Education and Board of Examiners
Solicitor Fees
Victorian Institute of Forensic Medicine Services (i)
Victoria Police Information, Security, Events and Training Services (i)
138
2014
2013
205,689
186,983
10,152
9,590
10,152
9,590
0
500
4,891
6,885
424
407
44,943
44,388
50,258
52,180
266,099
248,753
Asset sales
Victoria Police asset sales proceeds (i)
Commonwealth specific purpose payments
Donor Tissue Bank
Emergency Management Council
National Coronial Information System
Victoria Legal Aid
Total annotated income agreements
(i) The 2012-13 comparative has been adjusted to provide additional disclosures on Annotated Revenue Retention Agreements.
139
Note 27. Trust account balances
(a) Trust account balances relating to trust accounts controlled and/or administered by the department:
Cash and cash equivalents and investments
Opening
balance as
at
1 July 2013
Total
receipts
Total
payments
Closing
balance as
at 30 June
2014
$’000
$’000
$’000
$’000
597
743
249
1,091
5,479
10,458
8,792
7,145
Crime Prevention and Victims’ Aid Fund
- Confiscation Act 1997 (No. 108/1997), s.134
- Holds monies paid into and out of the fund under s.134 of this Act.
41
0
0
41
Domestic Builders Fund
- Domestic Building Contracts Act 1995 (No 91/1995), s.124
- Holds monies paid into and out of the fund under s.124 of this Act.
13,711
10,913
11,379
13,245
603
4,168
3,780
991
3,031
232
1,079
2,184
36,451
27,968
23,129
41,290
328
1,659
1,499
488
25,474
14,882
11,573
28,783
0
2,209
2,209
0
376,961
55,519
25,912
406,568
2014
Controlled Trusts
Victorian Consumer Law Fund
- Australian Consumer Law and Fair Trading Act 2012 (No. 21/2012), s.134
- Holds monies paid into and out of the fund under s.134 and Part 6.2
respectively of this Act.
Correctional Enterprises Working Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for Correctional Enterprises
Motor Car Traders’ Guarantee Fund
- Motor Car Traders Act 1986 (No. 104/1986), s.74
- Holds monies paid into and out of the fund under s.74 of this Act.
National Gambling Research Trust
- Memorandum of Understanding between the State and Federal Governments.
- Funds a multi jurisdictional group devoted to national gambling research
Residential Tenancies Fund
- Residential Tenancies Act 1997 (No. 109/1997), s.491
Holds monies paid into and out of the fund under s.492 and s.493 respectively
of this Act.
Sex Work Regulation Fund
- Sex Work Act 1994 (No. 102/1994), s.66
- Holds monies paid into and out of the fund under s.66 of this Act.
Treasury Trust Fund
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the department
Vehicle Lease Trust Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the sale of VicFleet motor vehicles
Victorian Property Fund
- Estate Agents Act 1980 (No. 9428/1980), s.72
Holds monies paid into and out of the fund under s.73 and s.75 respectively of
this Act.
140
Total Controlled Trusts
462,676
128,751
89,601
501,826
Opening
balance as
at
1 July 2013
Total
receipts
Total
payments
Closing
balance as
at 30 June
2014
$’000
$’000
$’000
$’000
12,953
3,001
19
15,935
Courtlink Trust Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the Magistrates Courts’ court orders
1,098
95
91
1,102
Departmental Suspense Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the department
6,292
825
2,772
4,345
Public Service Commuter Club
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the Public Service Commuter Club
(725)
2,846
3,020
(899)
Revenue Suspense
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the allocation of revenue
(38)
54
0
16
27
1
0
28
Treasury Trust Fund
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the department
6,773
1,610
0
8,383
Security Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Holds monies as security for good behaviour
5
17
0
22
Victorian Government Solicitor’s Trust Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the Victorian Government Solicitors Office
18,445
(3,404)
0
15,041
Total Administered Trusts
44,830
5,045
5,902
43,973
2014
Administered Trusts
Asset Confiscation Office Retained Monies Trust Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the Asset Confiscation Office
Sundry Deposits
- Financial Management Act 1994 (No. 18/1994), Part 4
- Holds monies in term deposits for the Victorian Government Solicitors Office
141
Opening
balance as
at
1 July 2012
Total
receipts
Total
payments
Closing
balance as
at 30 June
2013
$’000
$’000
$’000
$’000
621
9
33
597
5,448
9,599
9,568
5,479
41
0
0
41
14,605
9,139
10,033
13,711
558
4,394
4,349
603
2,396
1,255
620
3,031
42,866
17,486
23,901
36,451
269
1,695
1,636
328
38,815
8,306
21,647
25,474
0
2,115
2,115
0
Victorian Property Fund, Act No. 9428/1980, s.72
353,745
41,926
18,710
376,961
Total Controlled Trusts
459,364
95,924
92,612
462,676
11,201
1,749
(3)
12,953
Courtlink Trust Account
1,011
624
537
1,098
Departmental Suspense Account
4,512
1,887
107
6,292
Public Service Commuter Club
(780)
2,752
2,697
(725)
7
(45)
0
(38)
26
1
0
27
5,234
1,539
0
6,773
0
5
0
5
Victorian Government Solicitor’s Trust Account
14,653
3,792
0
18,445
Total Administered Trusts
35,864
12,304
3,338
44,830
2013
Controlled Trusts
Victorian Consumer Law Fund, Act No. 21/2012, s.134
Correctional Enterprises Working Account
Crime Prevention and Victims’ Aid Fund, Act No. 108/1997, s.134
Domestic Builders Fund, Act No. 91/1995, s.124
Motor Car Traders’ Guarantee Fund, Act No. 104/1986, s.74
National Gambling Research Trust
Residential Tenancies Fund, Act No. 109/1997, s.491
Sex Work Regulation Fund, Act No. 102/1994, s.66
Treasury Trust Fund
Vehicle Lease Trust Account
Administered Trusts
Asset Confiscation Office Retained Monies Trust Account
Revenue Suspense
Sundry Deposits
Treasury Trust Fund
Security Account
142
(b) Third party funds under management
The third party funds under management are funds held in trust for certain clients. They are not used for government
purposes and therefore are not included in the department’s financial statements.
Any earnings on the funds held pending distribution are also applied to the trust funds under management as appropriate.
2014
2013
$’000
$’000
2,601
2,821
25
25
1,861
1,506
1,479,597
1,377,863
1,484,084
1,382,215
Courts
Bail Monies(i)
Courts Infant Investment Accounts(i)
Crimes Compensation Infant Investment Accounts (i)
Funds under management by the Senior Master of the Supreme Court (Funds in
Court)
(i) Included under Court Services output group in note 3 Administered Items.
From 1 July 2004, the Courts Legislation Act 2004 allowed funds held in the County Court Infant Investment Trust Accounts, the
VOCAT Infant Investment Trust Accounts and the Magistrates Court Infant Investment Trust Accounts to be transferable to the
management of the Senior Masters Office (Funds in Court) of the Supreme Court. The decision for transferring funds is
discretionary. Each court retains discretion as to where control of the funds is held and each case is considered individually to
determine whether the funds should be transferred to the Senior Master. Although in the majority of cases, funds have been
transferred from the courts to the Senior Master, the courts have used their discretion to retain control of a portion of the funds held
for persons with a disability.
2014
2013
$’000
$’000
4,889
4,114
(4,889)
(4,114)
0
0
229
124
(229)
(124)
0
0
Non-government transactions
Prisoner Private Monies Account(ii)
Cash
Amounts owing to prisoners
Prisoner Compensation Quarantine Account(ii)
Cash
Amounts owing to prisoners
Non-government fines(iii)
143
Receivables
less provision for doubtful debts
Amounts owing to non-government entities
259,570
247,385
(237,303)
(226,480)
22,267
20,905
(22,267)
(20,905)
0
0
(ii) Included under Enforcing and Managing Correctional Orders output group in note 3 Administered Items.
(iii) Note disclosure only – not included in the balance sheet or note 3 Administered Items.
144
Note 28. Responsible persons
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act
1994, the following disclosures are made regarding responsible persons for the reporting period.
Names
The persons who held the positions of Ministers and Accountable Officers in the department are as follows:
Attorney-General
The Hon. Robert Clark, MP
1 July 2013
to 30 June 2014
Acting Attorney-General
The Hon. Gordon Rich-Phillips, MLC 1 July 2013
to 19 July 2013
The Hon. Louise Asher, MP
20 July 2013
to 21 July 2013
Minister for Consumer Affairs
The Hon. Heidi Victoria, MP
1 July 2013
to 30 June 2014
Acting Minister for Consumer Affairs
The Hon. Michael O’Brien, MP
23 September 2013 to 30 September
2013
The Hon. Robert Clark, MP
1 October 2013
to 6 October 2013
The Hon. Michael O’Brien, MP
30 November 2013
to 8 December 2013
The Hon. Ryan Smith, MP
21 December 2013
to 2 January 2014
The Hon. Michael O’Brien, MP
18 April 2014
to 21 April 2014
Minister for Corrections
The Hon. Edward O’Donohue, MLC 1 July 2013
Acting Minister for Corrections
The Hon. Robert Clark, MP
21 September 2013 to 6 October 2013
The Hon. Kim Wells, MP
16 January 2014
to 30 June 2014
to 19 January 2014
Minister for Crime Prevention
The Hon. Edward O’Donohue, MLC 1 July 2013
Acting Minister for Crime Prevention
The Hon. Robert Clark, MP
21 September 2013 to 6 October 2013
The Hon. Kim Wells, MP
16 January 2014
Minister for Liquor and Gaming Regulation
The Hon. Edward O’Donohue, MLC 1 July 2013
Acting Minister for Liquor and Gaming Regulation The Hon. Robert Clark, MP
to 30 June 2014
to 19 January 2014
to 30 June 2014
21 September 2013 to 6 October 2013
The Hon. Kim Wells, MP
16 January 2014
to 19 January 2014
Minister for Racing
The Hon. Denis Napthine, MP
1 July 2013
to 30 June 2014
Acting Minister for Racing
The Hon. Peter Ryan, MP
24 September 2013 to 26 September
2013
145
The Hon. Peter Ryan, MP
20 October 2013
to 26 October 2013
The Hon. Peter Ryan, MP
28 December 2013
to 15 January 2014
The Hon. Peter Ryan, MP
9 April 2014
to 12 April 2014
Minister for Police and Emergency Services
The Hon. Kim Wells, MP
1 July 2013
to 30 June 2014
Acting Minister for Police and Emergency
Services
The Hon. Edward O’Donohue, MLC 10 July 2013
to 28 July 2013
The Hon. Robert Clark, MP
to 5 January 2014
20 December 2013
The Hon. Edward O’Donohue, MLC 6 January 2014
to 12 January 2014
Minister for Bushfire Response
The Hon. Kim Wells, MP
to 30 June 2014
Acting Minister for Bushfire Response
The Hon. Edward O’Donohue, MLC 10 July 2013
to 28 July 2013
The Hon. Robert Clark, MP
to 5 January 2014
1 July 2013
20 December 2013
The Hon. Edward O’Donohue, MLC 6 January 2014
to 12 January 2014
Secretary to the Department of Justice
Greg Wilson
1 July 2013
to 30 June 2014
Acting Secretary to the Department of Justice
Dr Claire Noone
15 January 2014
to 2 February 2014
Remuneration
Remuneration received or receivable by the Accountable Officer (Secretary) in connection with the management of the department
during the reporting period was in the range:
$460,000 – $469,999 ($570,000 – $579,999* in 2012-13)
* This includes a Secretary who resigned effective 21 September 2012 with subsequent payment of leave entitlements on termination
(long service from 23 July 2012), an Acting Secretary from 21 July 2012 to 14 April 2013, and the appointment of a new Secretary
effective 15 April 2013.
Amounts relating to ministers are reported in the financial statements of the Department of Premier and Cabinet.
146
Note 29. Remuneration of executives and payments to other personnel
(a) Remuneration of executives
The number of executive officers from the department, other than Ministers and the Accountable Officer, whose total
remuneration exceeded $100,000 during the reporting period, are shown in their relevant income bands in the first two
columns of the table below. The total remuneration of executive officers includes base remuneration, which is shown in
the third and fourth columns, plus bonus payments, long service leave payments, redundancy payments and retirement
benefits. The total annualised employee equivalent represents the equivalent to all executive officers working 38 ordinary
hours per week for the reporting period.
The variation from last year’s base and total remuneration figures is primarily due to the executive officer remuneration
review.
Income band
Total remuneration
2014
No.
Base remuneration
2013
2014
No.
No.
2013
No.
$100,000-109,999
0
1
0
0
$110,000-119,999
1
0
1
0
$120,000-129,999
1
1
3
2
$130,000-139,999
4
1
4
2
$140,000-149,999
2
1
0
0
$150,000-159,999
0
0
0
5
$160,000-169,999
1
6
4
8
$170,000-179,999
3
5
4
6
$180,000-189,999
4
6
7
2
$190,000-199,999
4
5
3
6
$200,000-209,999
7
4
7
8
$210,000-219,999
6
6
4
4
$220,000-229,999
1
3
5
0
$230,000-239,999
7
4
2
3
$240,000-249,999
3
1
4
1
$250,000-259,999
0
3
0
2
$260,000-269,999
3
3
1
2
$270,000-279,999
2
1
2
1
$280,000-289,999
0
1
1
0
$290,000-299,999
1
1
0
0
$300,000-309,999
2
0
0
0
147
Income band
Total remuneration
Base remuneration
$310,000-319,999
1
1
1
1
$340,000-349,999
1
0
0
0
54
54
53
53
50.7
52.6
50.6
52.6
$11,496,351
$11,154,048
$10,553,009
$10,315,281
Total number of executives
Total annualised employee equivalent (AEE)(i)
Total amount
(i) Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period.
The reconciliation between the above table and the actual number of executive officers employed at 30 June 2014 is
included in the supplementary information to the annual report Appendix F Reconciliation of Executive Officer Positions.
The above table includes 1 executive officer from the Victorian Law Reform Commission (2013:1), 1 from the Judicial
College of Victoria (2013:1), and 1 from the Sentencing Advisory Council (2013:1) all of which will also be reported in
their respective Annual Reports for 2013-14.
In 2013-14 there were 12 executive officers (2013:2) whose total remuneration paid by the department was less than
$100,000 for the year, and 13 executive officers (2013:3) whose base remuneration paid by the department was less
than $100,000 for the year.
Related parties
It should be noted that 3 executive officers employed by the department, and because of their positions in the
department, held key positions in the following portfolio entities during the year ended 30 June 2014: 1 from the Victorian
Law Reform Commission (2013:1), 1 from the Judicial College of Victoria (2013:1) and 1 from the Sentencing Advisory
Council (2013:1).
Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been
considered and there are no matters to report.
(b) Payments to other personnel (i.e. contractors with significant management responsibilities)
The following disclosures are made in relation to other personnel of the department, i.e. contractors charged with
significant management responsibilities.
Payments have been made to a contractor with significant management responsibilities, which are disclosed in the
$10,000 expense band. This contractor is responsible for planning, directing or controlling, directly or indirectly, the
department’s activities.
The total expenses paid or payable by the department to the contractor in the 2012-13 financial year did not meet the
reporting threshold of exceeding $100,000 (exclusive of GST). Therefore, the total expenses for the prior period is nil.
Expense band
$450,000-459,000
Total expenses (exclusive of GST)
2014
2013
No.
No.
1
0
$455,400
$0
148
Note 30. Remuneration of auditors
2014
2013
$’000
$’000
416
405
416
405
Victorian Auditor-General’s Office
Audit of the financial statements
Note 31. Subsequent events
On 1 July 2014, Court Services Victoria (CSV), established under the Court Services Victoria Act 2014, commenced
operations as a statutory public sector body. On commencement, the responsibility for the administrative services and
facilities that support the Victorian courts, Victorian Civil and Administrative Tribunal, and Judicial College of Victoria,
transferred from the Department of Justice to Court Services Victoria. The financial impact of this separation will be
reflected in the department’s Annual Financial Statements for 2014-15.
Note 32. Glossary of terms and style convention
Amortisation
Amortisation is the expense which results from the consumption, extraction or use over time of a non-produced physical
or intangible asset. This expense is classified as an other economic flow.
Borrowings
Borrowings refers to interest-bearing liabilities mainly raised from public borrowings raised through the Treasury
Corporation of Victoria, finance leases and other interest-bearing arrangements.
Borrowings also include non-interest-bearing advances from government that are acquired for policy purposes.
Capital asset charge
The capital asset charge represents the estimated opportunity cost of capital invested in the non-financial physical assets
used in the provision of outputs.
Commitments
Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable
contractual or statutory sources.
Comprehensive result
The net result of all items of income and expense recognised for the period. It is the aggregate of operating results and
other comprehensive income.
Current grants
Amounts payable or receivable for current purposes for which no economic benefits of equal value are receivable or
payable in return.
Depreciation
Depreciation is an expense that arises from the consumption through wear or time of a produced physical or intangible
asset. This expense is classified as a ‘transaction’ and so reduces the ‘net result from transactions’.
Effective interest method
The effective interest method is used to calculate the amortised cost of a financial asset or liability and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
149
cash receipts through the expected life of the financial instrument, or, where appropriate, a shorter period.
Employee benefits expenses
Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax,
leave entitlements, redundancy payments and superannuation contributions.
Ex-gratia expenses
Ex-gratia expenses mean the voluntary payment of money or other non-monetary benefit (e.g. a write off) that is not
made either to acquire goods, services or other benefits for the entity or to meet a legal liability, or to settle or resolve a
possible legal liability or claim against the entity.
Financial asset
A financial asset is any asset that is:
(a) cash;
(b) an equity instrument of another entity;
(c) a contractual or statutory right:
- to receive cash or another financial asset from another entity; or
to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to
the entity; or
(d) a contract that will or may be settled in the entity’s own equity instruments and is:
a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity
instruments; or
a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset
for a fixed number of the entity’s own equity instruments.
Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. Financial assets or liabilities that are not contractual (such as statutory receivables or
payables that arise as a result of statutory requirements imposed by governments) are not financial instruments.
Financial liability
A financial liability is any liability that is:
(a)
a contractual or statutory obligation:
- to deliver cash or another financial asset to another entity; or
- to exchange financial assets or financial liabilities with another entity under conditions that are potentially
unfavourable to the entity; or
(b)
a contract that will or may be settled in the entity’s own equity instruments and is:
- a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity
instruments; or
- a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset
for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not
include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.
Financial statements
A complete set of financial statements comprises:
(a)
A statement of financial position (balance sheet) as at the end of the period;
(b)
A statement of profit or loss and other comprehensive income (comprehensive operating statement) for the
period;
(c) A statement of changes in equity for the period;
(d)
A statement of cash flows (cash flow statement) for the period;
(e)
Notes, comprising a summary of significant accounting policies and other explanatory information;
(f) Comparative information in respect of the preceding period as specified in paragraph 38 of AASB 101 Presentation of
Financial Statements; and
(g) A statement of financial position (balance sheet) as at the beginning of the preceding period when an entity applies an
150
accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it
reclassifies items in its financial statements in accordance with paragraph 41 of AASB 101.
Grants and other transfers
Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit
without receiving approximately equal value in return. Grants can be either operating or capital in nature.
While grants to governments may result in the provision of some goods or services to the transferor, they do not give the
transferor a claim to receive directly benefits of approximately equal value. For this reason, grants are referred to by the
AASB as involuntary transfers and are termed non-reciprocal transfers. Receipt and sacrifice of approximately equal
value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits,
in the form of goods or services, to particular taxpayers in return for their taxes.
Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use.
Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions
attached regarding their use.
Intangible produced assets
Refer to produced assets in this glossary.
Intangible non-produced assets
Refer to non-produced assets in this glossary.
Interest expense
Costs incurred in connection with the borrowing of funds. Interest expense includes the interest component of finance
lease repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts
to reflect the passage of time.
Interest income
Interest income includes interest received on bank term deposits, interest from investments, and other interest received.
Net result
Net result is a measure of financial performance of the operations for the period. It is the net result of items of income,
gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other economic
flows – other comprehensive income’.
Net result from transactions/net operating balance
Net result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus
expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and
losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the
change in net worth that is due to transactions and can be attributed directly to government policies.
Net worth
Assets less liabilities, which is an economic measure of wealth.
Non-financial assets
Non-financial assets are all assets that are not ‘financial assets’. It includes inventories, land, buildings, plant and
equipment, cultural and heritage assets and intangible assets.
Non-produced assets
Non-produced assets are assets needed for production that have not themselves been produced. They include land,
subsoil assets, and certain intangible assets. Non-produced intangibles are intangible assets needed for production that
have not themselves been produced. They include constructs of society such as patents.
Other economic flows included in net result
Other economic flows included in net result are changes in the volume or value of an asset or liability that do not result
from transactions. It includes:
(a)
gains and losses from disposals, revaluations and impairments of non-financial physical and intangible assets
(b)
fair value changes of financial instruments
Other economic flows – other comprehensive income
Other economic flows – other comprehensive income comprises items (including reclassification adjustments) that are
not recognised in net result as required or permitted by other Australian Accounting Standards. The components of other
economic flows – other comprehensive income include:
151
(a)
Changes in physical asset revaluation surplus
(b)
Gains and losses on remeasuring available-for-sale financial assets.
Payables
Includes short and long term trade debt and accounts payable, grants and interest payable.
Produced assets
Produced assets include buildings, plant and equipment, inventories, cultivated assets and certain intangible assets.
Intangible produced assets may include computer software, and research and development costs (which does not
include the start up costs associated with capital projects).
Receivables
Includes amounts owing from government through appropriation receivable, short and long term trade credit and
accounts receivable, accrued investment income, grants, taxes and interest receivable.
Sales of goods and services
Refers to income from the direct provision of goods and services and includes fees and charges for services rendered,
sales of goods and services, fees from regulatory services, and work done as an agent for private enterprises. User
charges includes sale of goods and services income.
Supplies and services
Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance
costs, incurred in the normal operations of the department.
Taxation income
Taxation income represents income received from the state’s taxpayers and includes:
•
gambling taxes levied mainly on private lotteries, electronic gaming machines, casino operations and racing
•
other taxes, including licence fees.
Transactions
Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction
between two entities by mutual agreement. They also include flows within an entity such as depreciation where the owner
is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset.
Taxation is regarded as mutually agreed interactions between the government and taxpayers. Transactions can be in
kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. In
simple terms, transactions arise from the policy decisions of the government.
Style conventions
Figures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components
reflect rounding. Percentage variations in all tables are based on the underlying unrounded amounts.
The notation used in the tables is as follows:
(xxx.x)
negative numbers
201x
year period
201x-1x
year period
The financial statements and notes are presented based on the illustration for a government department in the 2013-14
Model Report for Victorian Government Departments. The presentation of other disclosures is generally consistent with
the other disclosures made in earlier publications of the department’s annual reports.
152
1: Disclosure index
The annual report of the Department of Justice is prepared in accordance with all Victorian legislation and
pronouncements. This index has been prepared to facilitate identification of the department’s compliance with statutory
disclosure requirements.
Legislation
Requirement
Ministerial Directions
Report of Operations—Financial Reporting Directions (FRD) guidance
Charter and purpose
FRD 22E
Manner of establishment and the relevant ministers
FRD 22E
Objectives, functions, powers and duties
FRD 22E
Nature and range of services provided
Management and structure
FRD 22E
Organisational structure
Financial and other information
FRD 8B
Budget portfolio outcomes
FRD 10
Disclosure index
FRD 12A
Disclosure of major contracts
FRD 15B
Executive officer disclosures
FRD 22E, SD 4.2(k)
Operational and budgetary objectives and performance against objectives
FRD 22E
Employment and conduct principles
FRD 22E
Occupational health and safety policy
FRD 22E
Summary of the financial results for the year
FRD 22E
Significant changes in financial position during the year
FRD 22E
Major changes or factors affecting performance
FRD 22E
Subsequent events
FRD 22E
Application and operation of Freedom of Information Act 1982
FRD 22E
Compliance with building and maintenance provisions of Building Act 1993
FRD 22E
Statement on National Competition Policy
FRD 22E
Application and operation of the Protected Disclosure Act 2012
FRD 22E
Application and operation of the Carers Recognition Act 2012
FRD 22E
Details of consultancies over $10,000
FRD 22E
Details of consultancies under $10,000
FRD 22E
Statement of availability of other information
FRD 24C
Reporting of office-based environmental impacts
FRD 25B
Victorian Industry Participation Policy disclosures
FRD 29
Workforce data disclosures
SD 4.5.5
Risk management compliance attestation
SD 4.5.5.1
Ministerial Standing Direction 4.5.5.1 compliance attestation
SD 4.2(g)
Specific Information requirements
SD 4.2(j)
Sign-off requirements
Financial statements
Financial statements required under Part 7 of the Financial Management Act 1994 (FMA)
153
SD 4.2(a)
Statement of changes in equity
SD 4.2(b)
Operating statement
SD 4.2(b)
Balance sheet
SD 4.2(b)
Cash flow statement
Other requirements under Standing Directions (SD) 4.2
SD 4.2(c)
Compliance with Australian accounting standards and other authoritative pronouncements
SD 4.2(c)
Compliance with Ministerial Directions
SD 4.2(d)
Rounding of amounts
SD 4.2(c)
Accountable officer’s declaration
SD 4.2(f)
Compliance with Model Financial Report
Other disclosures as required by FRDs in notes to the financial statements
FRD 9A
Departmental disclosure of administered assets and liabilities by activity
FRD 11A
Disclosure of ex-gratia payments
FRD 13
Disclosure of parliamentary appropriations
FRD 21B
Disclosures of Responsible Persons, executive officers and other personnel
(contractors with significant management responsibilities) in the Financial Report
FRD 102
Inventories
FRD 103E
Non-current physical assets
FRD 106
Impairment of assets
FRD 109
Intangible assets
FRD 110
Cash flow statements
FRD 112D
Defined benefit superannuation obligations
FRD 114A
Financial Instruments—general government entities and public non-financial corporations
FRD 119A
Transfers through contributed capital
Legislation
Freedom of Information Act 1982
Building Act 1983
Protected Disclosure Act 2002
Carers Recognition Act 2012
Victorian Industry Participation Policy Act 2003
Financial Management Act 1994
154
2: Budget portfolio outcomes
The budget portfolio outcomes provide comparisons between the actual financial statements of all general government
sector entities within the portfolio and the forecast financial information (initial budget estimates) published in Budget
Paper No.5 Statement of Finances (BP5). The budget portfolio outcomes comprise the comprehensive operating
statements, balance sheets, cash flow statements, statements of changes in equity, and administered item statements.
The budget portfolio outcomes have been prepared on a consolidated basis and include all general government sector
entities within the portfolio. Financial transactions and balances are classified into either controlled or administered
categories consistent with the published statements in BP5.
The following budget portfolio outcomes statements are not subject to audit by the Victorian Auditor-General’s Office and
are not prepared on the same basis as the department’s financial statements as these include the financial information of
the following entities:
•
Department of Justice
•
Independent Broad-based Anti-corruption Commission
•
Judicial College of Victoria
•
Office of Public Prosecutions
•
Office of the Victorian Privacy Commissioner
•
Residential Tenancies Bond Authority
•
Sentencing Advisory Council
•
Victoria Police
•
Victoria State Emergency Service
•
Victorian Commission for Gambling and Liquor Regulation
•
Victorian Electoral Commission
•
Victorian Equal Opportunity and Human Rights Commission
•
Victorian Inspectorate
•
Victorian Institute of Forensic Medicine
•
Victorian Law Reform Commission
•
Victorian Responsible Gambling Foundation.
Operating statement for the year ended 30 June 2014
Department of Justice
2013–14
2013–14
Actual
Published Budget
Variation (a)
($ million)
($ million)
%
Output appropriations
5,093.7
5,114.8
(0.4)
Special appropriations
133.5
142.9
(6.6)
Interest
56.7
69.1
(17.9)
Sale of goods and services
15.6
15.4
1.3
Grants
54.1
51.6
4.8
Fair value of assets and services received free of charge or for nominal
consideration
14.9
0.0
Other income
31.7
11.5
Income from transactions
100.0
175.7
155
2013–14
2013–14
Actual
Published Budget
Variation (a)
($ million)
($ million)
%
5,400.2
5,405.4
(0.1)
2,581.7
2,585.2
(0.1)
200.2
178.9
11.9
35.6
40.3
(11.7)
1,048.1
928.4
12.9
216.3
238.5
(9.3)
Other operating expenses
1,283.7
1,416.2
(9.4)
Total expenses from transactions
5,365.6
5,387.5
(0.4)
34.6
17.9
93.3
Net gain/(loss) on non-financial assets
9.5
10.7
(11.2)
Net gain/(loss) on financial instruments and statutory receivables/payables
9.7
0.0
100.0
Other gains/(losses) from economic flows
(0.4)
0.0
(100.0)
Total other economic flows included in net result
18.8
10.7
75.7
Net result
53.4
28.6
86.7
(1.6)
0.0
(100.0)
Other
3.8
0.0
100.0
Total other economic flows – other comprehensive income
2.2
0.0
100.0
55.6
28.6
94.4
Total income from transactions
Expenses from transactions
Employee benefits
Depreciation
Interest expense
Grants and other transfers
Capital asset charge
Net result from transactions (net operating balance)
Other economic flows included in net result
Other economic flows – other comprehensive income
Asset revaluation reserve
Comprehensive result
(a) Variation between 2013–14 Actual and 2013–14 Published Budget
156
Balance sheet as at 30 June 2014
Department of Justice
2013–14
2013–14
Actual
($ million)
Published Budget
($ million)
Variation (a)
%
Cash and deposits
322.2
128.7
150.3
Receivables
769.8
749.4
2.7
Other financial assets
269.1
462.7
(41.8)
1,361.1
1,340.8
1.5
17.2
12.3
39.8
7.5
9.3
(19.4)
4,303.0
4,396.2
(2.1)
114.0
104.6
9.0
9.7
8.1
19.8
Total non-financial assets
4,451.4
4,530.6
(1.7)
Total assets
5,812.5
5,871.4
(1.0)
Payables
638.6
240.5
165.5
Borrowings
392.0
363.5
7.8
Provisions
686.5
683.6
0.4
Total liabilities
1,717.1
1,287.5
33.4
Net assets
4,095.4
4,583.9
(10.7)
757.4
679.4
11.5
Reserves
1,538.4
1,560.7
(1.4)
Contributed capital
1,799.6
2,343.8
(23.2)
Total equity
4,095.4
4,583.9
(10.7)
Assets
Financial assets
Total financial assets
Non-financial assets
Inventories
Non-financial assets classified as held for sale, including disposal group
assets
Property, plant and equipment
Intangible assets
Other
Liabilities
Equity
Accumulated surplus/(deficit)
(a) Variation between 2013–14 Actual and 2013–14 Published Budget
157
Statement of changes in equity for the year ended 30 June 2014
Department of Justice
2013–14
2013–14
Actual
($ million)
Published
Budget
($ million)
Variation (a)
%
700.2
650.8
7.6
55.6
28.6
94.4
1.6
0.0
100.0
757.4
679.4
11.5
1,570.2
1,646.1
(4.6)
229.4
697.7
(67.1)
1,799.6
2,343.8
(23.2)
1,540.0
1,560.7
(1.3)
(1.6)
0.0
(100.0)
Closing balance
1,538.4
1,560.7
(1.4)
Total equity
4,095.4
4,583.9
(10.7)
Accumulated surplus/(deficit)
Opening balance
Comprehensive result
Transactions with owners in their capacity as owners
Closing balance
Contributions by owners
Opening balance
Transactions with owners in their capacity as owners
Closing balance
Asset revaluation reserve
Opening balance
Transactions with owners in their capacity as owners
(a) Variation between 2013–14 Actual and 2013–14 Published Budget
158
Cash flow statement for the year ended 30 June 2014
Department of Justice
2013–14
2013–14
Actual
($ million)
Published Budget
($ million)
Variation (a)
%
Receipts from Government
5,230.4
5,262.1
(0.6)
Receipts from other entities
66.0
59.8
10.4
(15.5)
0.0
(100.0)
54.6
68.7
(20.5)
6.5
0.0
100.0
Other receipts
23.6
15.1
56.3
Total receipts
5,365.6
5,405.7
(0.7)
Payments of grants and other transfers
(1,046.4)
(929.1)
12.6
Payments to suppliers and employees
(3,806.4)
(3,965.9)
(4.0)
(216.3)
(238.5)
(9.3)
(35.4)
(40.1)
(11.7)
(5,104.5)
(5,173.5)
(1.3)
261.1
232.2
12.4
Net investment
(275.2)
(164.5)
67.3
Payments for non-financial assets
(436.1)
(839.6)
(48.1)
30.3
34.0
(10.9)
2.1
0.0
100.0
(678.9)
(970.1)
(30.0)
Owner contributions by State Government
240.3
697.7
(65.6)
Repayment of finance leases
(19.1)
(22.4)
(14.7)
Net borrowings
211.6
75.2
181.4
Net cash flows from/(used in) financing activities
432.8
750.5
(42.3)
Cash flows from operating activities
Receipts
Goods and Services Tax recovered from the ATO
Interest received
Dividends received
Payments
Capital asset charge
Interest and other costs of finance paid
Total payments
Net cash flows from/(used in) operating activities
Cash flows from investing activities
Proceeds from sale of non-financial assets
Net loans to other parties
Net cash flow from/(used in) investing activities
Cash flows from financing activities
159
2013–14
2013–14
Actual
($ million)
Published Budget
($ million)
Variation (a)
%
15.0
12.6
19.0
Cash and cash equivalents at beginning of the financial year
307.2
116.0
164.8
Cash and cash equivalents at end of the financial year
322.2
128.7
150.3
Net increase/(decrease) in cash and cash equivalents
(a) Variation between 2013–14 Actual and 2013–14 Published Budget
Administered items statement for the year ended 30 June 2014
Department of Justice
2013–14
2013–14
Actual
($ million)
Published Budget
($ million)
28.6
54.5
(47.5)
Special appropriations
589.2
63.7
825.0
Sale of goods and services
500.7
456.5
9.7
Grants
5.1
7.0
(27.1)
Interest
11.5
0.0
100.0
Other income
2,324.8
2,624.3
(11.4)
Total administered income
3,459.9
3,206.0
7.9
564.2
13.6
4,048.5
35.3
58.8
(40.0)
Payments into the Consolidated Fund
2,502.2
2,840.3
(11.9)
Total administered expenses
3,101.7
2,912.8
6.5
358.2
293.2
22.2
2.2
0.7
214.3
Net gain/(loss) on financial instruments and statutory receivables/payables
(268.8)
(365.9)
(26.5)
Total other economic flows included in net result
(266.6)
(365.2)
(27.0)
91.6
(72.0)
(227.2)
Variation (a)
%
Administered income
Appropriations - Payments made on behalf of the State
Administered expenses
Expenses on behalf of the State
Grants and other transfers
Income less expenses
Other economic flows included in net result
Net gain/(loss) on non-financial assets
Net result
Other economic flows – other movements in equity
160
2013–14
2013–14
Actual
($ million)
Published Budget
($ million)
Other movements in equity
(15.2)
0.0
(100.0)
Total other economic flows – other movements in equity
(15.2)
0.0
(100.0)
76.4
(72.0)
(206.1)
75.5
51.8
45.8
Receivables
1,549.1
1,175.5
31.8
Other assets
0.0
27.2
(100.0)
1,624.6
1,254.5
29.5
1,235.6
1,254.8
(1.5)
2.6
2.2
18.2
1,238.2
1,257.1
(1.5)
386.4
(2.6)
(14,961.5)
25.7
(1.5)
(1,813.3)
Accumulated surplus/(deficit)
360.7
(1.1)
(32,890.9)
Total equity
386.4
(2.6)
(14,961.5)
Comprehensive result
Variation (a)
%
Administered assets
Cash and deposits
Total administered assets
Administered liabilities
Payables
Provisions
Total administered liabilities
Net assets
Equity
Contributed Capital
(a) Variation between 2013–14 Actual and 2013–14 Published Budget
161
3: Governance
Under the Public Administration Act 2004, the Secretary is responsible for the general conduct and the effective, efficient
and economical management of the department.
The department’s organisational chart is show on page 7.
A number of standing executive committees ensure good corporate governance with a focus on improving organisational
performance.
Standing executive committees
The Justice Senior Executive Group is the peak body in the corporate governance structure. The group advises the
Secretary on the management and administration of the department to ensure compliance with government directives,
guidelines and legislation. It is responsible for integrating governance functions across the department and working
collaboratively with portfolio agencies.
The Justice Senior Executive Group receives performance and strategic issues reports from a number of standing
committees. The Secretary or his delegate chairs each of these committees, with the exception of the Audit and Risk
Management Committee, which is independently chaired.
Details of the responsibilities, functions, membership, and relationships between each of the standing committees are
available from the department’s Executive Services group.
162
4: Statutory authorities and offices by ministerial portfolio 2013–14
Attorney-General
Statutory offices
Chief Examiner and Examiner (jointly administered with the Minister for Police and Emergency Services)
Commissioner and Deputy Commissioners, Independent Broad-based Anti-corruption Commission
Crown Counsel (Advisings)
Crown Prosecutors
Director of Public Prosecutions
Electoral Commissioner and Deputy Electoral Commissioner
Freedom of Information Commissioner
Inspector, Victorian Inspectorate
Legal Services Commissioner
Office of the Privacy Commissioner
Principal Public Interest Monitor and Deputy Public Interest Monitors
Public Advocate
Solicitor-General
Administrative offices
Victorian Government Solicitor’s Office
Statutory authorities
Appeal Costs Board
Board of Examiners
Coronial Council of Victoria
Council of Legal Education
Electoral Boundaries Commission
Independent Broad-based Anti-corruption Commission
Judicial College of Victoria
Judicial Remuneration Tribunal
Legal Practitioners Liability Committee
Legal Services Board
Office of Public Prosecutions
Panel of Independent Reviewers – Legal Aid Act
Sentencing Advisory Council
Victorian Civil and Administrative Tribunal Rules Committee
Victoria Law Foundation
Victoria Legal Aid
Victorian Electoral Commission
Victorian Equal Opportunity and Human Rights Commission
Victorian Inspectorate
Victorian Institute of Forensic Medicine
Victorian Law Reform Commission
Victorian Professional Standards Council
Victorian Traditional Owners Trust
163
Judicial and quasi-judicial bodies
Children’s Court of Victoria
Coroners Court of Victoria
County Court of Victoria
Court of Appeal
Magistrates’ Court of Victoria
Municipal Electoral Tribunals
Supreme Court of Victoria
Victims of Crime Assistance Tribunal
Victorian Civil and Administrative Tribunal
Bushfire Response
Statutory offices
Bushfires Royal Commission Implementation Monitor
Consumer Affairs
Statutory offices
Arbitrator, Sale of Land Act
Director of Consumer Affairs Victoria
Fire Services Levy Monitor and Deputy Fire Services Levy Monitor
Statutory authorities
Business Licensing Authority
Consumer Utilities Advocacy Centre Ltd
Estate Agents Council
Motor Car Traders Claims Committee
Residential Tenancies Bond Authority
Sex Work Ministerial Advisory Committee
Corrections
Statutory authorities
Adult Parole Board
Liquor and Gaming Regulation
Statutory offices
Chief Executive Officer, Victorian Responsible Gambling Foundation
Statutory authorities
Liquor Control Advisory Council
Responsible Gambling Ministerial Advisory Council
Victorian Commission for Gambling and Liquor Regulation
Victorian Responsible Gambling Foundation
Police and Emergency Services
Statutory offices
Chief Commissioner and Deputy Commissioners of Police
Chief Examiner and Examiner (jointly administered with the Attorney-General)
Commissioner for Law Enforcement Data Security
Fire Services Commissioner
Road Safety Camera Commissioner
164
Statutory authorities
Country Fire Authority
Country Fire Authority Appeals Commission
Emergency Services Telecommunications Authority
Firearms Appeals Committee
Metropolitan Fire and Emergency Services Appeals Commission
Metropolitan Fire and Emergency Services Board
Police Registration and Services Board
Victoria State Emergency Service Authority
Victorian Emergency Management Council
Portfolio agencies
Victoria Police
Racing
Statutory offices
Racing Integrity Commissioner
Statutory authorities
Greyhound Racing Victoria
Harness Racing Victoria
Racing Appeals and Disciplinary Boards
165
5: Acts administered by the Justice Portfolio and enacted during 2013–14
Acts administered by the Justice Portfolio as at 30 June 2014
Attorney-General
Accident Compensation Act 1985
•
•
Division 1 of Part III
The Act is otherwise administered by the Assistant Treasurer and the Treasurer
Acts Enumeration and Revision Act 1958
Administration and Probate Act 1958
Administrative Law Act 1978
Adoption Act 1984 •
The Act is jointly and severally administered with the Minister for Community Services
Age of Majority Act 1977
Appeal Costs Act 1998
Attorney-General and Solicitor-General Act 1972
Bail Act 1977
Births, Deaths and Marriages Registration Act 1996
Charities Act 1978
Charter of Human Rights and Responsibilities Act 2006
Children, Youth and Families Act 2005 •
The Act is jointly and severally administered with the Minister for Community Services
Choice of Law (Limitation Periods) Act 1993
Civil Procedure Act 2010
Classification (Publications, Films and Computer Games) (Enforcement) Act 1995
Commercial Arbitration Act 2011
Commonwealth Places (Administration of Laws) Act 1970
Commonwealth Powers (De Facto Relationships)
Act 2004
Commonwealth Powers (Family Law-Children) Act 1986
Confiscation Act 1997- Except:
•
Section 134 (this provision is jointly administered with the Minister for Crime Prevention)
Constitution Act 1975 •
•
•
Part III
Section 88 in so far as it relates to the appointment of Crown Counsel and Crown Counsel (Advisings)
The Act is otherwise administered by the Premier
Constitution (Supreme Court) Act 1989
Constitutional Powers (Coastal Waters) Act 1980
Constitutional Powers (Request) Act 1980
Co-operative Schemes (Administrative Actions) Act 2001
Coroners Act 2008
Corporations (Administrative Actions) Act 2001
Corporations (Ancillary Provisions) Act 2001
Corporations (Commonwealth Powers) Act 2001
Corporations (Victoria) Act 1990
Council of Law Reporting in Victoria Act 1967
166
County Court Act 1958
Court Security Act 1980
Courts (Case Transfer) Act 1991
Crimes (Assumed Identities) Act 2004
Crimes (Mental Impairment and Unfitness to be Tried) Act 1997- Except:
•
Sections 48–55, 57A, 58 and 60–63(1), Division 3 of Part 7 and Part 7A (these provisions are jointly administered with
the Minister for Community Services and the Minister for Mental Health)
Crimes Act 1958
Crimes at Sea Act 1999
Crimes (Controlled Operations) Act 2004
Criminal Organisations Control Act 2012
Criminal Procedure Act 2009
Crown Proceedings Act 1958
Defamation Act 2005
Domestic Building Contracts Act 1995 •
•
Part 5
The Act is otherwise administered by the Minister for Consumer Affairs
Domicile Act 1978
Electoral Act 2002 - Except:
•
Division 1 of Part 5 (this Division is administered by the Premier)
Electoral Boundaries Commission Act 1982
Electronic Transactions (Victoria) Act 2000
Equal Opportunity Act 2010
Evidence Act 2008
Evidence (Commissions) Act 1982
Evidence (Miscellaneous Provisions) Act 1958
Family Violence Protection Act 2008
Federal Courts (State Jurisdiction) Act 1999
Fences Act 1968 - Except:
•
Section 19 (this provision is administered by the Minister for Environment and Climate Change)
Foreign Judgments Act 1962
Freedom of Information Act 1982
Fines Reform Act 2014
Guardianship and Administration Act 1986
Imperial Acts Application Act 1980
Imprisonment of Fraudulent Debtors Act 1958
Independent Broad-based Anti-corruption Commission
Act 2011
Information Privacy Act 2000
Infringements Act 2006
Instruments Act 1958 - Except:
•
In so far as it relates to the management of the Office of the Registrar-General (in so far as it relates to those matters,
the Act is administered by the Minister for Planning)
Interpretation of Legislation Act 1984
Judgment Debt Recovery Act 1984
167
Judicial College of Victoria Act 2001
Judicial Proceedings Reports Act 1958
Judicial Remuneration Tribunal Act 1995
Judicial Salaries Act 2004
Juries Act 2000
Jurisdiction of Courts (Cross-vesting) Act 1987
Land Acquisition and Compensation Act 1986
Land Act 1958 •
•
•
•
•
•
•
In so far as it relates to the exercise of powers relating to leases and licences under Subdivisions 1 and 2 of Division 9
of Part I in respect of land described as Crown allotment 22D of section 30, Parish of Melbourne North being the site
of the Victorian County Court
In so far as it relates to the land described as Crown Allotment 16 of Section 5, At Elwood, Parish of Prahran being
the side of the former Elwood Police Station:
Except Division 6 of Part I, Subdivision 3 of Division 9 of Part I, section 209 and the remainder of the Act where it
relates to the sale and alienation of Crown Lands as set out in Administrative Arrangements Order No. 58 (which are
administered by the Assistant Treasurer)
Except section 201, 201A and 339
Sections 22C–22E
Sections 201, 201A and 399 in so far as they relate to the land described as Crown Allotment 16 of Section 5, At
Elwood, Parish of Prahran being the site of the former Elwood Policy Station (in so far as they relate to that land,
these provisions are jointly administered with the Assistant Treasurer)
The Act is otherwise administered by the Assistant Treasurer, the Minister for Corrections, Minister for Environment
and Climate Change, the Minister for Health, the Minister for Ports and the Minister for Roads
Land Titles Validation Act 1994
Legal Aid Act 1978
Legal Profession Act 2004
Leo Cussen Institute (Registration as a Company) Act 2011
Limitation of Actions Act 1958
Local Government Act 1989 •
•
•
•
Sections 44–46, 48 and 49
Section 243 in so far as it relates to municipal electoral tribunals
Schedule 4
The Act is otherwise administered by the Minister for Local Government and the Minister for Roads
Magistrates’ Court Act 1989
Maintenance Act 1965
Major Crime (Investigative Powers) Act 2004 - Except:
•
Part 3 (this Part is administered jointly with the Minister for Police and Emergency Services)
Marriage Act 1958
Open Courts Act 2013
Penalty Interest Rates Act 1983
Perpetuities and Accumulations Act 1968
Personal Property Securities (Commonwealth Powers)
Act 2009
Personal Property Securities (Statute Law Revision and Implementation) Act 2010
Personal Safety Intervention Orders Act 2010
Planning and Environment Act 1987 •
In so far as it relates to the land along the Ninety Mile Beach that is shown either as “Areas within the Settlement
Boundaries” or Areas outside the Settlement Boundaries” on the plans forming part of the document entitled “Ninety
Mile Beach Development and Subdivision Controls: The Honeysuckles to Paradise Beach” and dated August 2007
(revised June 2009) that was incorporated into the Wellington Planning Scheme by Amendment C48 to the Wellington
168
•
•
•
Planning Scheme, and revised by Amendment C61 to the Wellington Planning Scheme, whether or not that document
remains incorporated into the Wellington Planning Scheme, except Parts 3C and 9B
Part 3C in so far as it relates to the land along the Ninety Mile Beach that is shown either as “Areas within the
Settlement Boundaries” or Areas outside the Settlement Boundaries” on the plans forming part of the document
entitled “Ninety Mile Beach Development and Subdivision Controls: The Honeysuckles to Paradise Beach” and dated
August 2007 (revised June 2009) that was incorporated into the Wellington Planning Scheme by Amendment C48 to
the Wellington Planning Scheme, and revised by Amendment C61 to the Wellington Planning Scheme, whether or not
that document remains incorporated into the Wellington Planning Scheme (in so far as it relates to that land, this Part
is jointly administered with the Minister responsible for the Aviation Industry)
Part 9B in so far as it relates to the land along the Ninety Mile Beach that is shown either as “Areas within the
Settlement Boundaries” or Areas outside the Settlement Boundaries” on the plans forming part of the document
entitled “Ninety Mile Beach Development and Subdivision Controls: The Honeysuckles to Paradise Beach” and
dated August 2007 (revised June 2009) that was incorporated into the Wellington Planning Scheme by Amendment
C48 to the Wellington Planning Scheme, and revised by Amendment C61 to the Wellington Planning Scheme,
whether or not that document remains incorporated into the Wellington Planning Scheme (in so far as it relates to
that land, this Part is jointly and severally administered with the Treasurer)
The Act is otherwise administered by the Minister responsible for the Aviation Industry, the Minister for Planning and
the Treasurer
Professional Standards Act 2003
Property Law Act 1958 - Except:
•
In so far as it relates to the management of the Office of the Registrar-General and the Land Titles Office, the Act is
administered by the Minister for Planning
Protected Disclosure Act 2012
Public Interest Monitor Act 2011
Public Notaries Act 2001
Public Prosecutions Act 1994
Relationships Act 2008
Religious and Successory Trusts Act 1958
Residential Tenancies Act 1997 •
•
Sections 446–448 (except subsection 447(1)), 452, 472, 473, 479 and 485
The Act is otherwise administered by the Minister for Consumer Affairs, the Minister for Housing and the Minister for
Planning)
Royal Victorian Institute for the Blind and other Agencies (Merger) Act 2005
Sentencing Act 1991- Except:
•
•
Subdivision 4 of Division 2 and Division 6 of Part 3 of the Act (these provisions are jointly administered with the
Minister for Community Services)
Division 3 of Part 3 of the Act (this Division is jointly administered with the Minister for Corrections)
Settled Land Act 1958
Severe Substance Dependence Treatment Act 2010 •
•
Sections 9–11 and 14–22
The Act is otherwise administered by the Minister for Mental Health
Sheriff Act 2009
St Andrew’s Foundation Act 1997
Status of Children Act 1974
Summary Offences Act 1966
Supreme Court Act 1986
Surveillance Devices Act 1999
Telecommunications (Interception) (State Provisions) Act 1988
Terrorism (Commonwealth Powers) Act 2003
Terrorism (Community Protection) Act 2003 - Except:
•
Part 4 (this Part is administered by the Minister for Police and Emergency Services)
169
•
Part 6 (this Part is administered by the Premier)
Traditional Owner Settlement Act 2010
Transfer of Land Act 1958 - Except:
•
In so far as it relates to the management of the Office of the Office of Titles (in so far as it relates to those matters, the
Act is administered by the Minister for Planning)
Trustee Act 1958
Trustee Companies Act 1984 •
The Act is jointly administered with the Treasurer
Unauthorized Documents Act 1958
Valuation of Land Act 1960 •
•
Divisions 1 and 2 of Part III, Divisions 4 and 5 of Part III where they relate to the determination of appeals by a Land
Valuation Division of the Victorian Civil and Administrative Tribunal and Part IV in so far as it relates to the
administration of the above provisions
The Act is otherwise administered by the Minister for Planning
Victims’ Charter Act 2006
Victims of Crime Assistance Act 1996
Victoria Law Foundation Act 2009
Victoria Park Land Act 1992
Victorian Civil and Administrative Tribunal Act 1998
Victorian Inspectorate Act 2011
Victorian Institute of Forensic Medicine Act 1985
Victorian Law Reform Commission Act 2000
Vital State Projects Act 1976 •
•
Sections 5–16
The Act is otherwise administered by the Premier
Wills Act 1997
Working with Children Act 2005
Wrongs Act 1958 - Except:
•
Part VI (this Part is jointly administered with the Minister responsible for the Aviation Industry)
Minister for Bushfire Response
Bushfires Royal Commission Implementation Monitor
Act 2011
Bushfires Royal Commission (Report) Act 2009
Minister for Consumer Affairs
Associations Incorporation Reform Act 2012
Australian Consumer Law and Fair Trading Act 2012
Business Licensing Authority Act 1998
Business Names (Commonwealth Powers) Act 2011
Chattel Securities Act 1987- Except:
• Part 3 (this Part is administered by the Minister for Roads)
Company Titles (Home Units) Act 2013
Consumer Credit (Victoria) Act 1995
Conveyancers Act 2006
Co-operatives National Law Application Act 2013
Credit Act 1984
Credit (Administration) Act 1984
170
Credit (Commonwealth Powers) Act 2010
Domestic Building Contracts Act 1995 - Except:
•
Part 5 (this Part is administered by the Attorney-General)
Estate Agents Act 1980
Fire Services Levy Monitor Act 2012
Fundraising Act 1998
Funerals Act 2006
Goods Act 1958
Motor Car Traders Act 1986
Owners Corporations Act 2006
Partnership Act 1958
Residential Tenancies Act 1997
•
•
•
Sections 23A-25, 27, 32, 33, 45–48 , 74–77, 82, 90, 91, 91A,102, 102A, 103, 104(1), 104(4), 104(5), 104(6), 105(2),
105(2A), 105(3), 124, 128, 130–134, 141-142B, 142D-212, 213AA–215, 230, 232-234, 241, 277, 289A, 291–327,
329-333, 335–339, 341, 343–366, 373–376, 385, 388, 388A, 390, 390A, 395–398, 399A–439M, 486–499, 501-504,
505A–510C and 511
Section 66(1) (this provision is jointly administered with the Minister for Housing)
The Act is otherwise administered by the Attorney-General, the Minister for Housing and the Minister for Planning
Retirement Villages Act 1986
Sale of Land Act 1962
Second-Hand Dealers and Pawnbrokers Act 1989
Sex Work Act 1994
Subdivision Act 1988 •
•
•
Part 5
Section 43 (in so far is it relates to Part 5)
The Act is otherwise administered by the Minister for Planning
Travel Agents Act 1986
Veterans Act 2005 •
•
Part 4
The Act is otherwise administered by the Minister for Veterans’ Affairs
Warehousemen’s Liens Act 1958
Minister for Corrections
Community Based Sentences (Transfer) Act 2012
Corrections Act 1986
Crown Land (Reserves) Act 1978 •
•
Sections 17B, 17BAA, 17BA, 17CA, 17D, 17DAA, 18A and 18B, in so far as they relate to the exercise of powers in
relation to the land shown as Crown Allotment 15 on Certified Plan 009176 and Crown Allotment 16 on Certified
Plan 1, Section B1, Parish of Ararat, lodged with the Central Plan Office, known as Ararat Prison
The Act is otherwise administered by the Assistant Treasurer, the Minister for Environment and Climate Change, the
Minister for Health, the Minister for Major Projects, the Minister for Ports and the Minister for Sport and Recreation
International Transfer of Prisoners (Victoria) Act 1998
Land Act 1958 •
•
In so far as it relates to the exercise of powers relating to leases and licences under Subdivision 1 of Division 9 of Part
I in respect of –
» land identified in Certified Plan 114680-A dated 8 February 1995
» land shown as Allotment 8B, section 13 on Certified Plan 116685 and Allotment 4A, section 17 on Certified Plan
116944 lodged in the Central Plan Office
» land shown as hatched on the plan numbered LEGL./95-80 lodged in the Central Plan Office
The Act is otherwise administered by the Assistant Treasurer, the Attorney-General, the Minister for Environment
171
and Climate Change, the Minister for Health, the Minister for Ports and the Minister for Roads
Parole Orders (Transfer) Act 1983
Prisoners (Interstate Transfer) Act 1983
Sentencing Act 1991•
•
Division 3 of Part 3 of the Act (this Division is jointly administered with the Attorney-General)
The Act is otherwise administered by the Attorney-General and the Minister for Community Services
Serious Sex Offenders (Detention and Supervision) Act 2009
Minister for Crime Prevention
Confiscation Act 1997 •
•
Section 134 (this provision is jointly administered with the Attorney-General)
The Act is otherwise administered by the Attorney-General
Graffiti Prevention Act 2007 •
•
Part 3 (this Part is jointly and severally administered with the Minister for Police and Emergency Services)
The Act is otherwise administered by the Minister for Police and Emergency Services
Road Safety Act 1986 •
•
Part 6A (this Part is jointly administered with the Minister for Roads)
The Act is otherwise administered by the Minister
for Roads
Minister for Liquor and Gaming Regulation
Casino Control Act 1991 - Except:
•
•
Sections 128H–128L (except for section 128K(2) (these provisions are administered by the Minister for Planning)
Section 128K(2) (this provision is administered by the Assistant Treasurer)
Casino (Management Agreement) Act 1993
Gambling Regulation Act 2003 - Except:
•
•
•
•
•
•
•
Section 2.2.9 (this provision is administered by the Minister for Racing)
Division 5A of Part 5 of Chapter 2 (this Division is jointly administered with the Minister for Racing)
Section 3.4.33 (this provision is administered by the Treasurer)
Division 2 of Part 2 of Chapter 4 (this Division is jointly administered with the Minister for Racing)
Section 4.3.12 (this provision is administered by the Treasurer)
Part 5 of Chapter 4 (this Part is jointly administered with the Minister for Racing)
Division 1 of Part 3 of Chapter 10 (this Division is administered by the Treasurer)
Liquor Control Reform Act 1998
Victorian Commission for Gambling and Liquor Regulation Act 2011
Victorian Responsible Gambling Foundation Act 2011
Minister for Police and Emergency Services
Australian Crime Commission (State Provisions) Act 2003
Commissioner for Law Enforcement Data Security
Act 2005
Control of Weapons Act 1990
Country Fire Authority Act 1958
Emergency Management Act 1986
Emergency Services Telecommunications Authority
Act 2004
Firearms Act 1996
Fire Services Commissioner Act 2010
Graffiti Prevention Act 2007 - Except:
•
Part 3 (this Part is jointly and severally administered with the Minister for Crime Prevention)
Major Crime (Investigative Powers) Act 2004
172
•
•
Part 3 (this Part is administered jointly with the Attorney General)
The Act is otherwise administered by the Attorney-General
Metropolitan Fire Brigades Act 1958
Police Assistance Compensation Act 1968
Police Regulation Act 1958 - Except:
•
Part III (this Part is administered by the Assistant Treasurer)
Private Security Act 2004
Road Safety Camera Commissioner Act 2011
Seamen’s Act 1958
Sex Offenders Registration Act 2004
Terrorism (Community Protection) Act 2003
•
•
Part 4
This Act is otherwise administered by the Attorney-General and the Premier
Unlawful Assemblies and Processions Act 1958
Victoria State Emergency Service Act 2005
Witness Protection Act 1991
Minister for Racing
Gambling Regulation Act 2003 •
•
•
•
Section 2.2.9
Division 5A of Part 5 of Chapter 2 (this Division is jointly administered with the Minister for Liquor and Gaming
Regulation)
Division 2 of Part 2 of Chapter 4 (this Division is jointly administered with the Minister for Liquor and Gaming
Regulation)
Part 5 of Chapter 4 (this Part is jointly administered with the Minister for Liquor and Gaming Regulation)
This Act is otherwise administered by the Minister for Liquor and Gaming Regulation and the Treasurer
Racing Act 1958
Victoria Racing Club Act 2006
Legislation enacted in 2013–14 (passed between 1 July 2013 and 30 June 2014)
Attorney-General
Adoption Amendment Act 2013
Bail Act 2013
Children, Youth and Families Amendment Act 2013
Court Services Victoria Act 2014
Courts and Other Justice Legislation Amendment Act 2013
Courts Legislation Amendment (Judicial Officers) Act 2013
Crimes Amendment (Grooming) Act 2013
Crimes Amendment (Investigation Powers) Act 2013
Crimes Amendment (Protection of Children) Act 2014
Fences Amendment Act 2013
Honorary Justices Act 2014
Justice Legislation Amendment (Discovery, Disclosure and Other Matters) Act 2014
Justice Legislation Amendment (Miscellaneous) Act 2013
Legal Profession Uniform Law Application Act 2013
Open Courts Act 2013
Summary Offences and Sentencing Amendment Act 2013
173
Vexatious Proceedings Act 2014
Victorian Civil and Administrative Tribunal Amendment
Act 2014
Minister for Corrections
Corrections Amendment (Breach of Parole) Act 2013
Corrections Amendment (Further Parole Reform) Act 2014
Corrections Amendment (Parole) Act 2014
Corrections Amendment (Parole Reform) Act 2013
Corrections Legislation Miscellaneous Amendments
Act 2014
Minister for Police and Emergency Services
Emergency Management Act 2013
Drugs Poisons and Controlled Substances Amendment
Act 2013
Road Safety Amendment Act 2014
Victoria Police Act 2013
Victoria Police Amendment (Consequential and Other Matters) Act 2014
Witness Protection Amendment Act 2014
Minister for Consumer Affairs
Consumer Affairs Legislation Amendment Act 2013
Owners Corporations Amendment Act 2014
Sale of Land Amendment Act 2014
Travel Agents Repeal Act 2013
Minister for Liquor and Gaming Regulation
Gambling and Liquor Legislation Amendment (Reduction of Red tape) Act 2014
Gambling Regulation Amendment (Pre-commitment) Act 2013
Minister for Racing
N/A
6: People management Workforce data
30 June 2013
30 June 2014
7.6
19.0
Emergency Management (formerly Police and Emergency Management)
104.8
96
Corrections (formerly Corrections, Health and Crime Prevention)
436.1
528.6
3,299.7
N/A
Central Area
N/A
1,404.0
North Area
N/A
671.9
South Area
N/A
369.6
West Area
N/A
1,085.2
Staffing numbers (Full-time equivalent)
Executive Management
Regional and Executive Services
174
People & Stakeholders
N/A
195.4
Regulation (formerly Consumer Affairs Victoria and Liquor, Gaming and Racing)
401.9
414.1
Corporate Governance and Infrastructure (formerly Strategic Projects and Planning)
257.2
242.6
Strategy Policy and Legislation
320.5
N/A
Community Operations and Strategy
355
N/A
Civil Justice
N/A
231.1
Criminal Justice
N/A
507.8
Service Strategy Reform
N/A
40.8
Courts and Tribunal Services
1,489.8
1,587.3
Total
6,672.6
7,393.4
Notes
The department was restructured effective 31 March 2014.
• Police and Emergency Management became Emergency Management
• Police Resources and Governance, and Policy and Legislation unit moved to the new Criminal Justice division
• Corrections, Health and Crime Prevention became Corrections
• Community Crime Prevention unit moved to the new Criminal Justice division
• Regional and Executive Services was split into four regional Areas and People and Stakeholders
• Consumer Affairs Victoria and Liquor, Gaming and Racing combined to form the Regulation division
• Strategic Projects and Planning became Corporate Governance and Infrastructure
• the former areas of Strategy Policy and Legislation and Community Operations and Strategy were re-allocated into Civil Justice, Criminal
Justice or Service Strategy Reform.
The increase in staff numbers of 720.8 FTE can be attributed to:
• increased funding to the prisons and community-based corrections within the regional areas
• additional roles in the Courts and Tribunals area in preparation for the establishment of Court Services Victoria on 1 July 2014
71.6 per cent of the increase is attributed to a rise in the number of frontline service staff. A further 7.4 per cent was due to new government
initiatives.
Court Services Victoria was established on 1 July 2014. Court Services Victoria information will not be reported in the department’s 2014–15
annual report.
Ongoing
Ongoing
Employees
(head count)
Full-time
(head count)
Part-time
(head count)
As at 30 June 2013
6,235
5,602
633
6,003.8
668.8
As at 30 June 2014
6,771
6,082
689
6,518.6
874.8
As at 30 June 2013
Ongoing
Fixed-term
and casual
Ongoing
Full-time
Full-time
equivalent (FTE) equivalent (FTE)
As at 30 June 2014
Ongoing
Ongoing
Fixed-term
and casual
Ongoing
Ongoing
Fixed-term
and casual
Head count
FTE
FTE
Head count
FTE
FTE
Gender
175
Male
2,826
2,804.7
300.3
3,140
3,120.1
452.7
Female
3,409
3,199.1
368.5
3,631
3,398.5
422.1
285
281.4
69.9
312
308.6
85.3
25–34
1,548
1,491.3
266.6
1,682
1,620.9
349.3
35–44
1,589
1,495.2
134.8
1,726
1,623.9
187.6
45–54
1,619
1,570.9
131.3
1,784
1,732.3
167.3
55–64
1,061
1,038.6
56.9
1,120
1,094.6
69.1
133
126.4
9.3
147
138.3
16.2
Age
Under 25
Over 64
176
As at 30 June 2012
Classification
As at 30 June 2013
Ongoing
Ongoing
Fixed-term
and casual
Ongoing
Ongoing
Fixed-term
and casual
Employees
(head count)
Employees
(FTE)
Employees
(FTE)
Employees
(head count)
Employees
(FTE)
Employees
(FTE)
VPS 1
8
4.1
0.7
6
2.5
1.4
VPS 2
851
800.3
136.1
864
806.5
156.1
VPS 3
744
705.6
103.2
767
726.9
119.6
VPS 4
581
554.2
27.3
640
610.1
45.3
VPS 5
598
575.6
37.3
639
613.5
37.1
VPS 6
503
485.7
15.7
521
504
19
STS
17
16.9
1
20
19.9
1
Executives
49
48.6
0
54
53.6
0
Trainee Registrar
151
150.6
0
168
167.4
0
Deputy Registrar
49
45.3
0
46
42.6
0
Registrar Grade 3
190
162.8
0
194
166.7
0
Registrar Grade 4
35
31.8
1.2
31
27.9
0
Registrar Grade 5
28
26.8
0
36
34
0
Registrar Grade 6
21
21
0
18
18
0
132
126.6
63.2
135
130.2
57.5
30
28.1
0
33
29.6
0
Leading CCO
184
180.4
9.7
215
207.6
6
Senior CCO
112
103
4
129
120.6
3
Officer in Charge
28
27.6
0
27
26.6
0
Location Manager
15
15
0
23
23
0
General Manager
9
9
0
8
8
0
0
0
25.4
20
20
134
Clerks of Court
Community Corrections Officers (CCO)
Trainee CCO
CCO
Custodial Officers
COG 1
177
As at 30 June 2012
Classification
As at 30 June 2013
Ongoing
Ongoing
Fixed-term
and casual
Ongoing
Ongoing
Fixed-term
and casual
Employees
(head count)
Employees
(FTE)
Employees
(FTE)
Employees
(head count)
Employees
(FTE)
Employees
(FTE)
COG 2a
955
949.4
223.7
1116
1108.5
282
COG 2b
470
468.6
1
524
522.9
1
COG 3
156
156
0
174
174
0
COG 4
37
37
0
44
44
0
COG 5
0
0
0
2
2
1
COG 6
7
7
2
9
9
1
0
0
0
7
7
0
33
33
0
23
23
0
102
101.3
0
115
114.6
0
23
22.7
0
24
23.5
0
Regional Manager
9
9
0
10
10
0
Deputy Sheriff
2
2
0
2
2
0
Allied Health
99
92.6
16.3
109
101.9
9.8
Legal Officers
5
4.2
1
15
14
0
Other
2
2
0
3
3
0
Sheriff’s Officers
Trainee Sherriff’s Officers
Sheriff’s Officer
Senior Sheriff’s Officer
Supervisor
Notes
All figures reflect active employees in the last pay period of June each year.
The figures exclude those persons on leave without pay or absent on secondment, external contractors/consultants, 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 (such as persons appointed to a non-executive board member role, to an office of Commissioner or to a judicial office).
‘Ongoing employee’ means people engaged on an open-ended contract of employment and executives engaged on a standard executive
contract who were active in the last pay period of June.
The following agencies are discrete agencies within the Justice portfolio. The heads of these agencies are Public Service Body Heads who
employ public servants independent of the departmental Secretary. These agencies are required to produce their own annual reports. Employee
numbers for these agencies are published in those annual reports:
• Independent Broad-based Anti-corruption Commission
• Freedom of Information Commissioner
• Fire Services Levy Monitor
• Office of Public Prosecutions
• Road Safety Camera Commissioner
• Victoria Police
• Victorian Electoral Commission
• Victorian Government Solicitor’s Office
• Victorian Privacy Commission
• Victorian Equal Opportunity and Human Rights Commission
• Victorian Inspectorate
• Victorian Commission for Gambling and Liquor Regulation
178
• Victorian Responsible Gambling Foundation.
This data excludes Victorian Institute of Forensic Medicine medical and executive staff.
Reconciliation of executive numbers at 30 June 2014
The number of executive officers in the report of operations is based on the number of executive positions that are
occupied at the end of the financial year. The remuneration of executives as reported in note 28 of the financial
statements lists the actual number and remuneration paid to executive officers over the course of the reporting period.
The total annualised employee equivalent represents the equivalent to all executive officers working 38 ordinary hours
per week for the reporting period. The note does not distinguish between executive levels, nor does it disclose
separations, vacant positions, executives whose remuneration is below $100,000, nor does it include the Accountable
Officer. Separations are those executives who have left the department during the financial year.
Disclosures in the report of operations contain information on:
•
•
•
executive classifications
gender composition of the classifications
variations between the current and previous reporting period.
The reconciliation of executive numbers between the report of operations and remuneration of executives is to improve
the transparency and completeness of the information that is disclosed. For executive numbers across the Victorian
Public Service, the department has included executive numbers for all portfolio entities.
Executive officers definition
For a department, an executive officer is a person employed as an executive under Part 3, Division 5 of the Public
Administration Act 2004. The total group of executives is classified into two distinct categories based on the following
definitions:
•
•
ongoing executives are executives who are responsible for functions or outputs that are expected to be ongoing at the
reporting date
special projects executives are executives who are employed for a specific project. These projects are generally for a
fixed period and relate to a specific government priority.
For portfolio entities, an executive officer is a person employed as an executive officer at an annual remuneration rate not less
than an executive officer employed by a department.
The definition of an executive officer does not include Governor-in-Council appointments as statutory office holders.
Portfolio entities definition
A portfolio entity is defined as a public entity under the Public Administration Act 2004.
The following tables disclose the executive officers of the department and its portfolio entities for 30 June 2014:
•
•
•
•
Table 1 reports the number of executive officers in ongoing roles and the total numbers of executive officers for the
department.
Table 2 provides a breakdown of executive officers according to gender of male and female for the category of
ongoing roles.
Table 3 provides a reconciliation of executive numbers between the report of operations and remuneration of
executives as reported in note 28 of the financial statements.
Table 4 provides the total executive numbers for the department’s portfolio entities.
Tables 1 to 4 also report the variations between the current and previous reporting periods and current vacancies.
179
Table 1: Number of executive officers (EOs) classified into ongoing roles
All
Classification
Ongoing
No.
Var
No.
Var
Secretary
1
–
1
–
EO1
2
1
2
1
EO2
35
8
35
8
EO3
29
-4
29
-4
Total
671
5
67
5
Notes
1 Includes seven vacancies at 30 June 2014
The department has previously reported on EOs in special project roles. In 2013-14 the department did not have any EOs working in special
project roles
Table 2: Breakdown of executive officers into gender for ongoing roles
Ongoing
Male
Classification
Female
Vacancies
No.
Var
No.
Var
No.
Var
Secretary
1
–
–
–
–
–
EO1
1
–
–
–
1
1
EO2
18
–
13
5
4
3
EO3
12
1
15
1
2
-6
Total
32
1
28
6
7
-2
180
Table 3: Reconciliation of executive numbers
2014
2013
Executives with total remuneration over $100,0001
54
54
Add
12
3
Accountable Officer (Secretary)
1
1
Vacancies at 30 June (Table 2)
7
9
-7
-4
0
-1
67
62
Less
Executives employed with total remuneration below $100,000
Separations
Inactive executive officers2
Total executive officer numbers at 30 June3
Notes
1 Refer to note 28 of the financial statements.
2
Inactive executives includes individuals on secondment or extended leave such as leave without pay, long service leave and sick leave.
3
Includes six executive officer positions from the Victorian Government Solicitor’s Office (which do not appear in the executive numbers in this
appendix as this agency provides a separate annual report).
Table 4: Number of executive officers for the department’s portfolio entities
Total positions
occupied
Portfolio Entities (VPS)
Vacancies
Male
Female
No.
Var
No.
Var
No.
Var
No.
Var
Legal Services Commissioner
2
–
–
–
2
–
–
–
Office of Public Prosecutions
2
–
–
–
2
–
–
–
Office of the Chief Commissioner of Police
18
2
2
-1
8
–
10
2
Victorian Commission for Gambling and Liquor Regulation
3
-1
1
1
0
-1
3
–
Victorian Responsible Gambling Foundation
1
–
–
–
–
–
1
–
Victorian Institute of Forensic Medicine
2
–
–
–
1
–
1
–
Total
28
1
3
0
13
-1
15
2
181
Total active
Portfolio Entities (Public Sector)
Male
Female
No.
Var
No.
Var
No.
Var
Consumer Utilities Advocacy Centre
1
–
–
–
1
–
Country Fire Authority
32
–
27
-1
5
1
Emergency Services Telecommunications Authority
12
3
6
-1
6
4
Greyhound Racing Victoria
6
–
6
–
–
–
Harness Racing Board of Victoria
9
2
9
2
–
–
Metropolitan Fire and Emergency Services Board
18
-4
12
-5
6
1
Victoria Law Foundation
1
–
–
–
1
–
Victoria Legal Aid
7
1
4
1
3
–
Victoria State Emergency Service
5
-1
4
1
1
-2
Total
91
1
68
-3
23
4
Notes
‘Var’ is variation compared to 2012-13.
Above data as reported to the Victorian Public Sector Commission as part of the Government Sector Executive Remuneration Panel annual data
collection.
Recruitment services
Youth Employment Scheme
The Youth Employment Scheme is a Victorian Government initiative to increase the workforce participation of young
people, particularly those facing significant barriers to employment.
Through this program, 12-month traineeships are made available to young people aged between 15 and 24. These
placements provide meaningful work experience and formal training, giving a solid foundation to a sustainable career.
In 2013–14, the department provided places in the scheme to 48 young people, including nine Koori trainees.
Graduate recruitment and development scheme
The Victorian Public Service Graduate Recruitment and Development Scheme is a high-profile whole-of-government
initiative that provides departments with an annual intake of high-calibre university graduates. The scheme provides
graduates with 12 months of structured experience that aims to develop graduates’ core capabilities for a career in
government.
The department recruited 15 graduates for the 2014 program, two through the department’s Koori Graduate Recruitment
and Development Scheme.
Koori employment
Recruitment campaigns to attract Koori candidates to the department led to a significant increase in 2013 –14 in Koori
applications and appointments into non-identified roles, with the employment of an additional 16 Koori prison officers,
community corrections officers and field officers. This contributed to the department reaching a Koori workforce of 1.45
per cent, working towards its Koori employment target of 2.5 per cent.
The department conducted its third Koori Cultural Inclusion Survey. The survey gathers perceptions and experiences
from Koori staff on issues of cultural awareness, racism and job satisfaction. Its findings led to the introduction of the
department’s first Koori Mentoring Program. This program successfully matched 11 Koori staff with a range of Koori and
non-Koori mentors across government, further strengthening the department’s extensive Koori Employment Strategy
182
2011–15.
Koori inclusion
The department actively looks for ways to make it easier for Koori people to access and participate in its programs and
services. This year it continued to progress its Koori Inclusion Action Plan Mingu Gadhaba: Beginning Together. This
department-wide thematic summary of 17 divisional and regional inclusion plans expresses the department’s commitment
to increasing the effectiveness of service delivery to the Koori community.
In 2013–14 the department helped three entities complete strategies for Koori inclusion. These were the Adult Parole
Board, Life Saving Victoria and the Office of Public Prosecutions. It continued its work with a further six statutory
entities in the process of developing strategies. These were the Country Fire Authority, the Metropolitan Fire Brigade,
Victoria Police, Victorian State Emergency Service, Victoria Legal Aid and the Office of the Public Advocate.
Learning and development
The department is committed to providing learning and development opportunities to staff and recognises that investment
in training and performance development is critical to providing professional and efficient services across the Justice
portfolio to the Victorian community.
The department aims to make learning accessible and highly relevant for staff regardless of their role or work location. To
achieve this, the department offers an annual calendar of training programs and events, leadership programs, Registered
Training Organisation to deliver qualifications and a wide range of operational training courses. It operates as a Registered
Training Organisation to deliver qualifications and a wide range of operational training courses.
The Justice Learning Program
The central calendar of learning for staff is known as the Justice Learning Program. In 2013–14, 190 individual training
programs were delivered to about 2,800 staff. Sessions were regularly delivered in regional locations around the state.
The Justice Learning Program included topics on:
•
•
•
•
•
•
•
•
•
•
•
•
staff induction
business skills
resilience
performance management
leadership and management
presentation skills
writing in government
Koori cultural awareness
mental health and disability awareness
change management
communication skills
team building.
All programs are evaluated using international best practice. This is based on measuring participant response, learning,
behavioural change and results.
Leadership development
The department supports staff participation in various external leadership development programs. These programs are a
valuable part of the department’s learning and development strategy for its current and future leaders. Each program has
a particular focus on building leadership in public management and policy, building networks, understanding the personal
impact on others, and other pertinent issues for government leaders.
During 2013–14, 26 departmental staff from VPS Grade 4 to Executive level attended an external leadership
development program.
The department also has a number of internal leadership and management programs to develop staff at all levels of the
organisation. These include the Management Development Program and the Potential and New Manager’s Program,
which are tailored to VPS staff.
Koori cultural awareness training
In October 2011, the department employed a Koori cultural awareness training officer to develop and deliver Koori
cultural awareness training. By 30 June 2014, almost 40 per cent of staff had attended the training.
Nexus – Learning and performance
The Nexus system is an electronic platform that allows the department to promote, record and analyse learning and
performance development planning initiatives. Nexus allows staff to research and book into training and gives regional
staff access to department-wide training.
183
More than 90 per cent of staff worked towards performance goals and completed performance reviews online in 2013–14.
The department has developed more than 60 eLearning courses. In 2013–14, all employees were enrolled to complete
eight eLearning courses related to statutory obligations and policy requirements. The courses were developed by the
department and included case studies and examples relevant to roles at the department.
Staff commenced 1,800 eLearning modules from the library of 100 professional development eLearning courses covering
topics such as computer applications, communication skills, conflict management and business writing. Nexus hosted a
wide range of training materials and resources, work-based learning guides, online communities of practice and virtual
classrooms.
People Matter Survey
The department participated in the 2013–14 People Matter survey conducted across the Victorian Public Service. The
survey allows staff to provide their feedback on the culture and working conditions at the department. The results informed a
range of targeted activities intended to make the department a better place to work.
Prison Officer Recruit Training Program
About 500 staff completed the Prison Officer Recruit Training Program in 2013–14. The program provides recruits with the
knowledge needed to work safely, ethically and effectively in a prison. It provides training on corrections legislation, policy and
procedures, preparing recruits for the challenges of prison work, including the need to recognise and act upon their duty of care
to prisoners. Participants are enrolled in the CSC30112 Certificate III in Correctional Practice.
Supervisory Development Program
The Supervisory Development Program is a 12-month program for custodial prison staff aspiring to be senior prison officers
and supervisors. Participants attend monthly training days that cover topics aligned to the key leadership and operational
aspects of senior prison roles. Participants undertake three months of higher duty assignments and are enrolled to complete
the CSC40112 Certificate IV in Correctional Practice.
In 2013–14, 21 participants began the Supervisory Development Program and will graduate in October 2014.
Management Program for Prison Supervisors
The Management Program for Prison Supervisors builds the operational competence and leadership capacity of existing
prison supervisors. Participants attend two-day monthly sessions with senior corrections staff and subject matter experts.
They take part in a 360-degree feedback process and complete a project at their location.
In early 2014, 20 prison supervisors began the program.
Leader as Coach Program for prison operations managers
The Leader as Coach program is a 20-week tele-conference development program for operations managers. A total of 15
participants completed two programs in 2013–14.
Registered Training Organisation
The department is committed to ensuring staff in key operational roles have access to nationally accredited training.
The department achieves this goal by operating a Registered Training Organisation (RTO) and partnering with
business units to develop training programs that are specifically designed to meet the needs of employees joining, or
seeking professional development, in roles within:
•
•
•
•
•
Infringement Management and Enforcement Services (sheriff’s officers)
Corrections Victoria (Community Corrections Officers and Custodial Officers)
the Dispute Settlement Centre of Victoria (mediators)
Courts & Tribunals
Record keeping areas.
184
The department awarded the following certificates and statements of attainment in 2013–14:
Qualification
CSC30112 Certificate III in Correctional Practice
Awards or statements of attainment issued
69
CSC30207 Certificate III in Correctional Practice [Custodial]
5
CSC30307 Certificate III in Correctional Practice [Community]
3
CSC40112 Certificate IV in Correctional Practice
19
PSP40312 Certificate IV in Government [Court Compliance]
1
TAE40110 Certificate IV in Training & Assessment
5
Total qualifications awarded
Statements of attainment
CHC – Mediation units
102
Statements issued
56
CSC30112 Certificate III in Correctional Practice [Custodial]
7
CSC30207 Certificate III in Correctional Practice [Custodial]
1
CSC30307 Certificate III in Correctional Practice [Custodial]
30
CSC40107 Certificate IV in Correctional Practice
11
CSC40112 Certificate IV in Correctional Practice
5
BSBHRM402A – Recruit, Select and Induct Staff
21
CSCSAS206 – Respond to Medical Emergencies
109
TAE40110 Certificate IV in Training & Assessment
2
BSB – Recordkeeping Units
7
Total statements issued
249
The following new enrolments occurred in 2013–14:
Enrolments in qualifications and units
Numbers
CSC30112 Certificate III in Correctional Practice
622
CSC40112 Certificate IV in Correctional Practice
28
PSP40312 Certificate IV in Government [Court Compliance]
42
PSP40412 Certificate IV in Government [Court Services]
103
CHC – Mediation units
72
185
Enrolments in qualifications and units
Numbers
Total staff enrolments in qualifications
867
BSB – Record keeping units
28
CSCSAS206 – Respond to Medical Emergencies
49
Total staff enrolments in units
77
Total staff enrolments 2013–14
944
Safety and wellbeing
The department’s Occupational Health and Safety Strategy 2011–15: Working Well focuses on five priority areas:
leadership and accountability; consultation and communication; management of risks; proactive wellbeing; and
WorkCover management.
In the fourth year of the strategy, the department built on the successes of the past three years and moved to ensure
business areas regularly conduct self-assessment audits and workplace inspections.
Projects and programs
The safety and wellbeing team worked on the following projects in 2013–14:
•
•
•
•
development of guidance materials for indoor and outdoor working conditions
launch of the key performance indicator reporting tool in selected regions and program areas
delivery of supervisor wellbeing awareness training
promotion of the Respect in the Workplace workshops.
Staff are required to complete a range of health and safety training programs. More than 81 per cent of staff have
completed a health and safety at work eLearning program and almost 79 per cent have completed emergency
preparedness.
The department provides a range of programs to help staff improve their health. In 2013–14, 530 staff participated in the
LIFE program, a series of weekly sessions to help with healthy eating and living tips.
The department also funded a vaccination program through which almost 2,600 staff received a flu vaccination.
The department promoted Safety Week in October 2013 with a range of programs and activities across all regions and
business units.
The Employee Assistance Program (EAP) provides a free and confidential short-term advice and counselling service to
staff experiencing personal or work-related concerns. In the past year, more than 394 staff contacted EAP and received
telephone or face-to-face counselling. EAP also assisted in 27 critical incidents providing onsite briefings for affected
staff.
Compliance reporting
The department has 120 designated work groups in which 214 health and safety representatives have been nominated or
elected to represent staff on workplace safety issues.
WorkSafe inspectors may visit the workplace for a range of issues relating to provisional improvement notices,
complaints or notifiable incidents. The department recorded 83 visits in this period with 24 notices.
Incident management
There were 1,424 employee-reported incidents recorded on the department’s online Accident, Incident Reporting System
(AIRS) in 2013–14. An incident is reported if there is any event resulting in, or with the potential for, injury, ill health,
damage or other loss. All reported incidents are investigated.
The following table illustrates the number and rate of incidents reported across the department for the past five financial
years. The department this year recorded an increase in the number of incident reports and rate of incidents compared to
last year.
Number of incidents and rate per 100 FTE
2009–
2010–
2011–
2012–
2013–
186
10
11
12
13
14
Incidents
1,143
1,224
1,260
1,216
1,424
Rate
142.47
147.56
151.97
149.44
170.66
WorkCover premium
The premium rate is a calculation to determine costs for maintaining workers compensation insurance. The premium
calculation is based on a combination of the total number of employees, the remuneration, the industry risk factor and
claims history. Although the department’s premium rate has increased over the past five financial years (since 2009–10),
the department is still performing more than 23 per cent better than the industry average. The graph below shows the
industry average against the department’s premium rate for rates recorded over the past eight financial years.
Claims management
This year there has been an increase in the number of standard claims lodged, and therefore an increase in the
departments’ claim rate. Last year there were 17.70 claims per 1000 FTE; the claim rate for this financial year was 22.55
claims per 1000 FTE. The lost time claim rate was increased from 7.50 to 12.83 claims per 1000 FTE. There was an
increase in the 13-week claim rate compared to last year, from 3.56 to 4.92 claims per 1000 FTE.
187
188
Carers Recognition Act 2012
In 2013–14 the department took all practical measures to comply with its obligations under the Carers Recognition Act
2012. These measures included providing staff with the opportunity to balance their carer’s obligations with their work
commitments. This included providing access to personal leave that can be used for caring purposes and access to a
wide range of flexible working arrangements. The department also made reasonable accommodations to support staff
who require a carer to attend the workplace wherever necessary, considering the carer relationships principles set out in
the Act when setting policies and providing services.
The department has established a range of people management policies that support the guiding principles of the Carers
Recognition Act 2012. These policies include:
•
•
•
Flexible Working Arrangements Policy
Personal Leave Policy
Respect in the Workplace Policy.
Disability and diversity
The Disability Action Plan 2012–2016 and Cultural Diversity Plan 2012–2016 outline the department’s commitment to
providing accessible justice services to Victorians with disability and/or from culturally and linguistically diverse
backgrounds. Both plans share common goals:
•
•
•
•
a strong foundation for learning, obtaining and maintaining employment
protecting rights and promoting full participation
access to justice information, goods, services and facilities
inclusive and responsive justice systems.
Through strategies aligned to these goals the department strives to enhance the Victorian justice system and uphold the
rights of all Victorians to have access to and participate in the justice system.
State Disability Plan
The Victorian State Disability Plan 2013–2016 includes a range of strategies contributed by the department. In 2013–14,
the department acted on initiatives in the plan including:
•
•
•
•
leading the government response to a range of parliamentary inquiries
making it easier for people with a disability who are victims of crime to exercise their rights in the criminal justice
system
improving access to consumer information
providing specialised prison and community-based programs for people with a disability to address their offending
behaviour.
Disability scholarships
The department conducts a scholarship program that recognises tertiary students with a disability undertaking justicerelated studies. The program provides one major scholarship of $40,000 over two years and three scholarships of
$10,000 each over two years. Scholarship recipients were selected from a large field of applicants. The department will
monitor their progress and support their attainment of justice qualifications.
Forums and community
The department hosted a public forum coinciding with the release of an Australian Human Rights Commission discussion
paper on access to justice in the criminal justice system for people with a disability. The event was addressed by
Disability Discrimination Commissioner Graeme Innes and featured speakers from Victoria Police, Corrections Victoria
and the Victorian courts system.
One focus of the department’s Disability Action Plan is the protection of rights for victims of crime with a disability.
Representatives from support agencies for victims of crime attended the Victims Support Agency forum Supporting
Victims of Crime with a Disability. This event was followed by another forum, Responses to Victims of Crime: Justice
Policies and Processes. Both forums attracted members of the public along with representatives from government and
disability sector agencies.
Training and education
Training in disability awareness and mental health awareness continued across the year. Department staff undertook
training on the incidence and impact of disability in the Victorian community. This considered issues including:
•
•
•
•
recognition and awareness of the wide range of disability types
how disability affects the lives of community members and their families
disability and mental health issues that may affect departmental clients and users of the Victorian justice system
strategies for ensuring that accessible justice services are delivered to Victorians with a disability.
189
Particular attention was given to enhancing the skills of custodial staff working in Victorian prisons. Training at the
Metropolitan Remand Centre and the Dame Phyllis Frost Centre was tailored to address specific disability-related issues
that may be prominent among prison populations.
General diversity training was also provided to trainees taking up roles as Registrars in the courts system. This included
an examination of the Victorian population, responsibilities under the Victorian Public Service Code of Conduct, the
values of the department, language services provision and disability.
CALD Victorians—justice reporting
The department has responsibilities to ensure engagement with all Victorians, including Victorians from CALD
backgrounds. The department’s contribution to Victorian Government Reporting on Multicultural Affairs 2013–14
identified a widerange of department activities that ensure justice services are made accessible to the diverse Victorian
community. The department reported significant activities and outcomes in 2013–14 in the areas of policing, emergency
services provision, prison and community-based correctional services, courts administration and consumer protection.
Refugee-related activities
The department continued to fund the Refugee Youth Project and the Refugee Youth Diversion Pilot Program. Both
activities involve working with young people from refugee backgrounds to provide valuable early intervention and
diversion services. The intention of both programs is to restore hope and trust in the justice system, enabling young
people to establish a safe and productive future. An external evaluation of the two programs during 2013–14 found them
to have had positive outcomes for participants and for the wider Victorian community.
7: Environmental performance and targets
The department has in place an Environmental Management System (EMS) as a mechanism to continue to reduce its
environmental impacts and increase efficient use of resources. The EMS comprises:
•
•
•
an Environment Management and Sustainability policy, which is a statement on the department’s commitment to
minimise environmental impacts associated with its services and operations
an annual Environmental Management Plan (EMP), which consists of projects and targets, focusing on activities with
significant impacts on the environment while ensuring compliance with legal requirements. Implementation of the EMP
is supported by Regional Environmental Action Plans (REAPs)
a communications plan, which details the various communication channels and frequency of communication with a
range of stakeholders and staff to both raise awareness and support for environment initiatives.
An executive environment committee, now in its fourth year, continues to play an important role in overseeing the
department’s responsibilities. Voluntary environmental representatives in each region and central Melbourne also support
implementation of the environment program.
The environment program is audited independently every two years, as required by the Commissioner for Environmental
Sustainability Act 2003. The department achieved a satisfactory rating in the August 2013 audit, with few high-priority
recommendations. High-priority recommendations included:
•
•
ensuring that staff in correctional centres are aware of their legal compliance requirements
embedding a systematic process to ensure that licences or agreements are up to date and that any incidents are
reported, including a mechanism for continual improvement.
Environmental performance
The environmental performance report that follows was prepared in accordance with Financial Reporting Direction 24C:
Reporting of Office-based Environmental Data by Government Entities (FRD 24C).This framework is provided by
Department of Treasury and Finance to assist Victorian public sector entities in meeting their reporting obligations.
The department delivers justice services to the community from different building types: offices, complexes (Justice
Service Centres), courts and correctional centres across Victoria.
Operational performance includes complexes, courts and those correctional centres that are publicly operated. Where
statutory entities are co-located with the department, all resource use is attributed to the department because it is
generally not separately billed or apportioned.
Table 1: Summary trend report
2006–07
2011–12
2012–13
2013–14
2013–14 trend
compared to 2006–
07 (per cent)
2013–14 trend
compared to 2012–
13 (per cent)
190
2006–07
2011–12
2012–13
2013–14
2013–14 trend
compared to 2006–
07 (per cent)
2013–14 trend
compared to 2012–
13 (per cent)
Energy (MJ/m2)
476
335
331
320
-33
-3
Waste (kg/FTE)
73
66
65
72
-1
11
Paper (reams/FTE)
21
25
24
27
29
13
Water (kL/FTE)
12
13
11
13
8
18
864
796
830*
835
-3
1
15
19
19
20
33
5
Water (kL/m2)
1.07
1.19
1.26
1.44
35
14
Transportation fleet
(tonnes CO2e/1,000km)
0.33
0.23
0.25
0.22
-33
-12
Office
Office and operational
Energy (MJ/m2)
Paper (reams/FTE)
Notes
• MJ: Megajoule, kg: kilograms, ream: 500 sheets of paper, kL: kilolitres, tonnes: 1,000 kilograms, CO 2e: carbon dioxide equivalent, m2: metres
squared, FTE: Full Time Equivalent staff.
• Data for sites where a complete year of bills is not available has been extrapolated to reflect a complete year of usage as per the FRD 24C
guidelines.
* The 2012–13 figure has been revised upward to include additional gas use.
Energy
Daily operation of the correctional centres contributes significantly to the department’s energy and water use.
A number of correctional centres have resource-intensive industries such as metalwork, woodwork, spray painting, waste
sorting and recycling. The recent expansion of correctional infrastructure and increase in prisoner numbers has also
contributed to greater energy and water use.
For offices, complexes and courts, energy is predominantly used for lighting, heating and cooling.
The department met the 2013–14 target of maintaining a two per cent decrease in megajoules per square metre
compared to 2006–07 levels (864 MJ/m2). Examples of projects reducing energy use include:
•
•
•
•
installation of 56kW of solar panels in regional locations
use of ozone laundries within correctional centres
retrofitting of incandescent lights with light-emitting diode (LED) lights
behaviour change programs, including communicating to staff the results of an audit of appliances left on within
offices and sending a ‘switch off’ message where warranted.
2014–15 energy target
Double the renewable electricity generation of the
department from 235 kW to 470kW, thereby reducing
both operating costs and greenhouse gas emissions.
191
Table 2: Energy use 2013–14
Total energy usage segmented by primary source — megajoules (MJ)
Correctional
centres
Courts
Complexes
Office
Total
91,449, 002
36,255,227
22,808,938
21,996,210
172,509,377
0
0
0
0
0
106,444,001
12,214,769
2,212,903
892,647
121,764,320
LPG
27,139,340
0
0
0
27,139,340
Total
225,032,343
48,469,996
25,021,841
22,858,857
321,383,037
Electricity
Electricity (Green power)
Natural gas
Total greenhouse gas emissions segmented by primary source (tonnes of CO 2e)
Electricity
34,039
13,495
8,490
8,176
64,200
0
0
0
0
0
Natural gas
5,890
676
122
49
6,737
LPG
1,761
0
0
0
1,761
—
—
—
9,525
—
1,224
482
689
356
835**
Electricity (Green power)
Energy used per FTE (MJ/FTE)*
Energy used per unit of space (MJ/m2)
Notes
• Office-based energy data covers 35 per cent of the department’s total FTE and 17 per cent of the department’s total locations.
• The department stopped purchasing green power in 2011 when purchase ceased being mandatory.
• Usage for correctional centres and courts have not been apportioned against prisoner numbers or court visitation.
* Energy used per FTE (MJ/FTE) is applicable only to office-based buildings; usage for operational facilities can not be apportioned against
FTE use only.
** The ‘Total’ value reflects the average MJ consumed per m2 across the department’s portfolio (correctional centres, courts, complexes and
offices).
Water
Within correctional centres, prisoners are engaged in a variety of work, including horticulture, livestock production, food
services and manufacturing-related industries. These activities use a mixture of bore and potable water.
For offices, courts and complexes, water is used for cooling towers and bathroom/kitchen amenities and consumption. A
large number of buildings have flow restrictors on taps and dual flush toilets to reduce potable water use.
The department has not met its water target despite implementing a number of water reduction projects, including:
•
•
•
installation of rainwater tanks for watering gardens and flushing toilets
retrofitting laundry systems with more water-efficient appliances
constructing infrastructure using ecologically sustainable design principles, such as rainwater harvesting.
2014–15 water target
Reduce water usage by three per cent across the three
correctional centres consuming the most water per
192
prisoner.
Table 3: Total department potable water usage 2013–14
Kilolitres
Water used per FTE (kL/FTE)*
Water used per unit of space (kL/m2)
Correctional
centres
Courts
Complexes
Office
Total
447,146
32,143
10,456
27,736
517,481
—
—
—
13
—
2.58
0.3
0.3
0.6
1.44**
Notes
• Potable water: water that is safe or suitable for human consumption as drinking water.
• Office water data covers 34 per cent of the department’s total FTE and 33 per cent of the department’s total locations.
• Usage for correctional centres and courts has not been apportioned against prisoner numbers or court visitation.
*
Water used per FTE (kL/FTE) is applicable only to office-based buildings; usage for operational facilities can not be apportioned against FTE use only.
** The ‘Total’ value reflects the average kL consumed per m2 across the department’s portfolio (correctional centres, courts, complexes and offices).
Paper and procurement
Offices consume more than 50 per cent of the department’s paper and have been the primary focus of paper reduction
activities. Secure PIN printing was rolled out this year across 18 business units and regional offices as both a paper
reduction and information security initiative. As there is no existing technology to track the number of PIN printing users
across the department, it cannot be determined whether the target of 50 per cent of staff using PIN printing has been
achieved.
The department is a major consumer of goods and services and plays an influential role in ensuring sustainable
procurement. This year, 93 per cent of A4 white paper purchases had at least 80 per cent recycled content. The
department is unique across government in setting a minimum two-star green accreditation for offset and digital print. The
department did not meet its 100 per cent target in this area because there were a small number of print jobs (less than 5
per cent) that did not meet the two-star standard.
Examples of paper and procurement projects include:
•
•
•
•
re-use of office furniture
development of instructional videos and guidelines to assist staff in adopting PIN printing
use of fair trade products in some offices
changing paper-based business processes to digital.
2014–15 paper target
Reduce departmental paper consumption to the wholeof-government average of 13.6 reams per FTE by 2016.
2014–15 procurement target
A minimum of one project implemented to reduce the
packaging of major goods procured for the department.
Table 4: Total department paper usage 2013–14
Description
Correctional
centres
Courts
Complexes
Office
Total
193
Correctional
centres
Courts
Complexes
Office
Total
23,617
37,728
19,239
62,893
143,477
115
181
93
310
699
—
—
—
27
20*
>75 per cent
87
85
87
93
88.9**
50–75 per cent
0.3
0
0
0
0.1
<50 per cent
13
15
13
7
11.0
Description
Reams
Paper use (tonnes CO2e)
Paper used per FTE (reams/FTE)
Recycled content (per cent)
Notes
• Paper usage data provided by the WOVG supplier, Staples. Paper purchased outside the WOVG supplier is not included.
• Paper usage in the ‘less than 50 per cent recycled content’ category includes A4 coloured paper.
• The totals provided have not been apportioned against prisoner numbers.
*
The ‘Total’ value reflects the average reams of paper consumed per FTE across the department’s portfolio (correctional centres, courts,
complexes and offices). Apportioned paper data is available only for offices.
** The total percentage includes purchase of A3 paper with recycled content.
Sustainable transport and fleet
The department delivers its services through a range of facilities in eight regions across the state. Staff undertaking
certain types of work are often required to travel between these locations and other work sites. For example, the
department manages and supervises offenders participating in unpaid community work and rehabilitation programs.
Department staff supervising these offenders are required to travel to the work site.
The department has increased the number of video-conferencing facilities. This year, as per the 2013–14 target, videoconferencing has been promoted via articles on the intranet, through staff bulletins and through the Justice for the
Environment survey. Material on the intranet was revised to make it easier for staff to find information on videoconferencing. Although video-conferencing is not feasible for all purposes, an increase in its use has reduced staff travel
from regional areas to Melbourne for meetings. Information on the frequency of video-conferencing has also been
collected for benchmarking purposes.
Sustainable travel has been promoted by activities including a half-day bicycle safety maintenance workshop for staff and
the Bicycle Users Group.
2014–15 transport target
Minimum of three regions to adopt a systematic
approach to car-pooling.
194
Fleet
Table 5: Total department transportation (vehicle fleet performance by fuel type) 2013–14
Description
Passenger fleet
Other
Total
Judicial vehicles
Petrol
21,859,192
4,726,086
26,585,278
21,761,815
Diesel
586,961
11,603,705
12,190,666
499,161
LPG
1,179,884
242,595
1,422,479
24,915
E-10
48,949
23,034
71,983
71,838
Total
23,674,985
16,595,420
40,270,406
22,357,729
Petrol
8,615,005
1,315,623
9,930,628
6,150,873
Diesel
158,925
2,589,153
2,748,078
136,796
LPG
358,112
62,350
420,463
5,423
E-10
20,918
9,844
30,762
30,700
Total
9,152,961
3,976,970
13,129,931
6,323,792
Fuel consumption (megajoules)
Distance travelled (kilometres)
Greenhouse gas emissions (tonnes CO2e)
Petrol
1,574
340
1,914
1,567
Diesel
44
864
908
37
LPG
76
16
92
2
E-10
3
2
5
5
Total
1,697
1,222
2,919
1,610
Greenhouse gas emissions efficiency (tonnes CO2e/1,000km)
Petrol
0.18
0.26
0.19
0.25
Diesel
0.28
0.33
0.33
0.27
LPG
0.21
0.25
0.22
0.30
E-10
0.16
0.16
0.16
0.16
Total
0.19
0.31
0.22
0.25
Notes
• The ‘Total’ column is the total value for ‘Passenger Fleet’ and ‘Other’. ‘Other’ includes optional reporting of commercial vehicles and the
departmental executive fleet.
• Fleet data is sourced from vehicle logbooks and fuel purchase records (both fuel cards and petty cash records). Approved fleet growth is not
195
included. Departmental fleet data includes a number of statutory entities.
Judicial vehicles (judges, VCAT members and magistrates) are reported separately and are not included in the department’s total as required
by FRD 24C.
•
Transport
Table 6: International and domestic air travel 2013–14
Description
Distance travelled (kilometres)
Greenhouse gas emissions (tonnes CO2e)
Total
2,229,026
1,381
Notes
• Departmental air travel data includes a number of statutory entities, excluding the Office of Public Prosecutions, which independently
discloses its air travel.
Table 7: Sustainable transport 2013–14
Percentage of employees regularly using sustainable transport options (public transport, cycling, walking,
car-pooling) to commute to work.
Option
Total (%)
CBD
74
Regions
22
Metro
38
Notes
• Sustainable transport information is taken from the department’s environment survey completed in 2014.
Waste
Management of waste provides both financial and environmental benefits for the department. Waste from offices,
complexes and courts are typically paper, toner cartridges, IT equipment, food waste and occasionally office furniture.
Ninety-eight per cent of the department’s major facilities have co-mingled and cardboard recycling.
Waste from correctional centres consists of food, bottles and cans, biomedical material, industry off-cuts and waste from
farming and livestock production activities. The department continues to cultivate a waste reduction culture across
correctional centres, including initiating processes and installing equipment to enhance recycling and reduce waste to
landfill. Waste reduction activities were undertaken at five publicly operated correctional centres to meet the target of
implementing one waste-reduction action at 50 per cent of publicly operated prisons.
Examples of these waste reduction activities include:
•
•
•
•
•
donating timber off-cuts that have been turned to kindling
installing waste digesters which convert food and green waste into compost that can be used in horticulture industries
reusing milk cartons and bunk bed frames to grow seedlings
using educational signage
initiating recycling industries at two correctional centres.
2014–15 waste target
100 per cent of publicly operated correctional centres
will have a waste reduction project implemented by July
2015.
196
Table 8: Office-based waste 2013–14
Description
Total
Per FTE
Landfill (kg)
44,482
26
Recycling (kg)
71,977
42
Compost (kg)
5,961
4
122,420
72
Recycling rate (per cent)
64
—
Greenhouse emissions from
waste to landfill (tonnes of CO2e)
53
—
Total (kg)
Notes
• Waste data is based on waste audits covering 24 per cent of the department’s total FTE and eight per cent of departmental locations.
• A five-day waste audit was undertaken at 121 Exhibition Street, covering 23 per cent of the department’s FTE. A one-day waste audit was
undertaken at one metropolitan office location.
• Waste data has been extrapolated in accordance with FRD 24C guidelines to reflect a complete year’s waste stream.
• Data does not include e-waste (computers, telephones and multi-functional devices).
Communication and training
The department recorded a significant increase this year in the number of responses to its Justice for the Environment
survey (from 400 to 1,302). The survey measures staff perception and expectations of the environment program and
seeks feedback for further improvements. Survey highlights include:
•
•
•
•
85 per cent of staff agreeing that the department is committed to improving its environmental performance
78 per cent of staff always or sometimes taking environmental considerations into account in their
day-to-day procurement
55 per cent of staff being aware of existing energy and water efficiency works within their building
22 per cent of staff reporting that they use secure PIN printing.
Additional areas for improvement include communication of the Environmental Management Plan (EMP) and Regional
Environmental Action Plans (REAPs) across the department.
To share learning and achievements, eight environmental case studies were developed, meeting the department’s 2013–
14 target. The case studies cover a broad spectrum of environmental activities, from horticultural programs to paper
reduction initiatives.
Other communication and training activities included:
•
•
•
•
tree planting days with staff and community groups
a successful World Environment Day lunchtime quiz featuring a mix of general knowledge and specific questions on
the theme of Raise Your Voice, Not the Sea Level. The event, attended by a similar number of staff as the previous
year, also raised awareness of departmental environmental projects.
participation in Earth Hour (a 24-hour global energy awareness campaign) at 121 Exhibition Street and some regional
offices
raising environmental awareness through induction programs.
2014–15 training and awareness target
All publicly operated correctional facilities receive
environmental legal compliance training.
Partnerships and land management
The department’s Community Correctional Services area works in partnership with other government departments,
industries, education institutions and not-for-profit organisations to develop and manage community work programs for
197
offenders. Community work provides offenders with the opportunity to give back to the community and assists with their
rehabilitation by developing and improving work-related skills. Examples of community work with an environmental focus
undertaken in 2013–14 include:
•
•
•
•
•
building and maintaining a rehabilitation site for wild animals
participating in courses, including horticulture and landscaping courses, to obtain new skills
land management activities including picking up rubbish, removing weeds, tree planting and general grounds
maintenance
refurbishing donated or abandoned bicycles and giving the bicycles to community groups
using recycled water and biodegradable cleaning products in the graffiti removal program. The program has removed
approximately 13,000 bags of rubbish and 2,000,000 square metres of graffiti.
198
8: Statutory compliance
Disclosure of major contract compliance
The department has disclosed all contracts entered into during 2013–14 for goods and services and construction greater
than $100,000 (including GST). The disclosed contracts can be viewed at www.tenders.vic.gov.au.
Where contracts exceed $10 million, the contracts were disclosed (in part or full) except for certain material that is
categorised within one or more criteria contained in Part IV of the Freedom of Information Act 1982.
Consultancies engaged in 2013–14
In 2013–14, there were nine consultancies where the total fees payable to the consultants were $10,000 or greater. The
total expenditure incurred during 2013–14 in relation to these consultancies was $366,130.45 (ex GST).
In 2013–14, there were two consultancies where the total fees payable to the consultants were less than $10,000. The
total expenditure incurred during 2013–14 in relation to these consultancies was $13,868 (ex GST).
Consultant
Purpose
Start date
End date
Total
approved
project fee
($ ex GST)
Expenditure
2013–14
($ ex GST)
Future
expenditure
($ ex GST)
Consultancies with a value greater than $10,000
Oakton
Review of Victorian Information
Network for Emergencies
program expenditure
3/03/2014
21/03/2014
24,800.00
24,800.00
—
Xact Solutions
Prison Industries Supply Chain
13/01/2014
13/05/2014
99,000.00
99,000.00
—
Ernst and Young
Financial and commercial due
diligence
24/03/2014
24/04/2014
39,545.45
39,545.45
—
FBG Group
Assessment of training needs
21/04/2014
20/05/2014
42,350.00
42,350.00
—
Capgemini
Spend analysis—Procurement
Reform Project
1/04/2014
30/04/2014
45,000.00
45,000.00
—
FCA/FMSA
Marngoneet annexe food
industry
10/04/2014
50,000.00
43,825.00
6,175.00
Vivek Chaudri
Consulting
Advice on bilateral negotiations
18/05/2014
27/05/2014
30,000.00
30,000.00
—
BFL Consulting
Advice on par-baked bread and
pastry processes for
Marngoneet annexe food
production industry
20/05/2014
19/06/2014
61,710.00
61,710.00
—
Regulatory
Impact Solutions
Pty Ltd
Development of fees and
charges regulations (RIS
process) for the Crime Statistics
Agency
1/06/2014
30/05/2015
22,275.00
9,900.00
13,275.00
Consultancies with a values less than $10,000
Oakton
Review of Victorian Racing
Industry Funding projects
27/03/2014
2/05/2014
10,000.00
9,200.00
—
Cube
Management
Solutions
Update of Grampians
governance and priorities for
2014
2/12/2013
7/12/2013
4,668.00
4,668.00
—
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Government advertising expenditure
Campaigns with a media spend of $150 000 or greater:
Campaign
Campaign summary
Start/end date
Expenditure 2013–14 ($ excluding GST)
Creative &
Advertising
campaign Research &
(Media) development evaluation
Other
Print &
campaign
collateral expenditure
889,926
76,425
3,084
0
1,400
Play it Safe
An annual awareness campaign 15 Dec 2013–
by the Water to remind Victorians about
11 May 2014
remaining safe and vigilant
when in or around water
726,750
21,296
5410
8,043
116,631
RentRight
To inform Victorians renters
about the information and
interactive functionality available
through the RentRight
smartphone application for
iPhone and Android users
Phase 1:
Nov–Dec 2013;
Phase 2:
Feb–Mar 2014
204,898
67,495
0
2,521
35,971
Speed
cameras
campaign
Challenged commonly held
misconceptions about speed
cameras among males aged
18–39 years
1 Dec 2013–
17 May 2014
384,805
116,450
37,686
0
0
Summer fire
campaign
This whole-of-government
advertising and local
engagement campaign told
Victorians to be better prepared
against the threat of bushfire to
reduce the risk of injury and
death
17 Nov 2013–
15 Mar 2014
2,604,158
152,418
197,258
12,208
524,670
Emergency
Alert
Informed Victorians of the
Emergency Alert system, in
particular the full implementation
of location-based capability
across the three mobile
networks
Phase 1: 20 Oct
2013–23 Feb
2014; Phase 2:
11 May–31 May
2014
Victorian Industry Participation Policy
The Victorian Industry Participation Policy (VIPP) applies to all government projects with a value of more than $3 million
in metropolitan Melbourne and more than $1 million in regional Victoria. All short-listed bidders who fall within the VIPP
guidelines are required to complete a statement outlining the level of local content, and possible skills and technology
transfers the project could create. If two or more bidders are found to offer equivalent value for money in the tender
evaluation phase, the policy statements are used to identify the bidder with the best outcomes for Victorian industry.
200
New contracts in 2013–14 to which the VIPP applied
Regional/
metro
Value ($m)
Jobs
Fulham Correctional Centre:
40 portable beds project
Regional
2
50
10
Small project with short delivery program. No skill and
technology content transfer possible.
Loddon Prison: 236 bed
project
Regional
79
130
81
Commitments were made to staff training and skills
development in general. However, no programs have been
specifically developed for this contract.
Loddon Prison: 30 portable
bed project
Regional
2
12
80
Small project with short delivery program. No skill and
technology content transfer possible.
Marngoneet Correctional
Centre: 21 portable beds
project
Regional
1
12
80
Small project with short delivery program. No skill and
technology content transfer possible.
Dhurringile Prison: 126 bed
project
Regional
13.3
35
88
A monitored training plan for each employee. Employee
reward and recognition scheme ‘Building Value’.
Commitments were made to staff training and skills
development in general. However, no programs have
been specifically developed for this contract.
Melbourne Remand Centre:
100 beds project
Metro
32
95
80
Tier One builder engaged with relevant local trades and
resources utilised.
Marngoneet Correctional
Centre: restricted minimum
216 beds project
Regional
60 (approx.)
130
81
At tender stage, local trades to be involved.
Barwon High Security Unit
Regional
30
60
45
At tender stage, local trades to be involved.
Hopkins Prison: Corella Place
Project
Regional
2.5
15
10
Small regional project with largely domestic build, no skill
and technology content transfer possible.
Dhurringile Prison: 100
portable beds
Regional
5
35
88
A monitored training plan for each employee. Employee
reward and recognition scheme ‘Building Value’.
Commitments were made to staff training and skills
development in general. However, no programs have been
specifically developed for this contract.
Beechworth Correctional
Centre: 50 portable beds
Regional
2.5
20
88
A monitored training plan for each employee. Employee
reward and recognition scheme ‘Building Value’.
Commitments were made to staff training and skills
development in general. However, no programs have been
specifically developed for this contract.
Lang Kal Kal Prison: 50
portable beds project
Regional
2.5
25
86
Commitments were made to staff training and skills
development in general. However, no programs have been
specifically developed for this contract.
Contracts
% Local Skills and technology content transfer
201
Risk attestation for the Department of Justice 2013–14
The Department of Justice 2013–14 attestation is supported by:
a. an improved and more robust risk governance framework, including an enhanced risk management policy, new
guidelines, tools and training in line with the ISO 31000 standard
b. the formation of a dedicated Risk and Resilience Team, focused on improving not only formal compliance processes,
but also on building an effective risk culture across the department
c. oversight of the Audit and Risk Management Committee, to monitor internal processes for managing risk and ensure
that risk exposures of all types are being managed effectively.
Attestation
I, Greg Wilson certify that the Department of Justice has risk management processes in place consistent with the
Australian/New Zealand Risk Management Standard (AS/NZS ISO 31000:2009 or its successor) and an internal control
system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Audit
and Risk Management Committee verifies this assurance and that the risk profile of the Department of Justice has been
critically reviewed within the last 12 months.
The Department of Justice Audit and Risk Management Committee endorses this assurance and that the risk profile of
the Department of Justice has been reviewed within the last 12 months.
Kevin Quigley
Chair
Audit and Risk Management Committee
24 July 2014
Greg Wilson
Secretary
Department of Justice
4 August 2014
Insurance attestation for the Department of Justice 2013–14
The Department of Justice (department) 2013–14 insurance attestation is supported by the departmental risk
management framework and the Risk and Audit Directorate of the department.
The department’s Audit and Risk Management Committee plays an important role as part of the department’s approach
to risk management and insurance governance and helps to ensure that departmental systems for identifying and
monitoring risks are operating as intended.
Attestation
I, Greg Wilson, certify that the Department of Justice has complied with Ministerial Direction 4.5.5.1 – Insurance, except
for:
4.5.5.1 (c) – Record the valuation and basis for valuation of self-insured retained losses
4.5.5.1 (d) – Provide information on claims management capability, resources, structures and processes for any
self-insured retained losses to VMIA.
For each of these obligations, the department is partially compliant. The department is working with the Victorian
Managed Insurance Authority to strengthen both the valuation of self-insured retained losses and the department’s claims
management capability, resources, structures and processes regarding self-insured retained losses.
It is anticipated that the department will be fully compliant with both obligations in 2014–15.
The Department of Justice Audit and Risk Management Committee endorses this insurance attestation statement.
Kevin Quigley
Chair
Audit and Risk Management Committee
24 July 2104
Greg Wilson
Secretary
Department of Justice
4 August 2014
National competition policy
The Department of Justice continues to comply with the requirements of the National Competition Policy. An exemption for
202
prison industries was given by the Department of Premier and Cabinet as the primary focus of their activities is employing
prisoners and undertaking vocational training.
Statement of compliance with the Building Act 1993
The Minister for Finance guidelines, pursuant to section 220 of the Building Act 1993, promote better standards for buildings
owned by the Crown and public authorities, and require entities to report on achievements. The department is responsible
for 84 properties used for legal, court, prison and emergency services. Other corporate entities within the Justice Portfolio,
such as the Country Fire Authority, the Metropolitan Fire and Emergency Services Board and Victoria Police, will report
separately on building compliance issues.
New buildings conforming to standards
For the financial year 2013–14, all works controlled by the department were required to be conducted in accordance with
the provisions of the Building Act, relevant building regulations and other statutory requirements.
The department has established appropriate mechanisms to ensure compliance, including the issuing of building permits
and occupancy certificates and inspection of works. Agencies of the department are exempt from lodging building plans
with local councils.
Buildings maintained in a safe and serviceable condition
Mechanisms in place within the department to ensure buildings are maintained in a safe and serviceable condition
include:
•
•
•
a contract with an external service provider to manage all building essential service tasks, in accordance with
legislative requirements
the development of a departmental works program forming part of the overall departmental investment strategy
a program to monitor and review effectiveness of these mechanisms.
Existing buildings conforming to standards
All departmental buildings comply with Minister for Finance guidelines. The mechanisms established by the department
are intended to maintain compliance and the effectiveness of those mechanisms is continuously monitored.
Registered building practitioners
The department requires building practitioners carrying out building works to be registered and for registration to be
maintained throughout the course of the works.
2013–14 Statement of compliance with the Building Act 1993
Capital project
Total project
budget ($m)
Permits issued and works to be
certified at end
Commenced
Dhurringile Prison: 100 portable beds
5
Permits issued and works to be certified at end
Beechworth Correctional Centre: 50 portable beds
2.5
Permits issued and works to be certified at end
Lang Kal Kal Prison: 50 portable beds
2.5
Permits issued and works to be certified at end
12.07
Permits issued and works to be certified at end
2
Permits issued and works to be certified at end
Loddon Prison: 236-bed project
79
Permits issued and works to be certified at end
Loddon Prison: 30 portable beds
2
Permits issued and works to be certified at end
Marngoneet Correctional Centre: 21 portable beds
1
Permits issued and works to be certified at end
13.3
Permits issued and works to be certified at end
32
Permits issued and works to be certified at end
Bull Street, Bendigo: refurbishment
Fulham Correctional Centre: 40 portable beds
Dhurringile Prison: 126-bed project
Melbourne Remand Centre: 100-bed project
203
Total project
budget ($m)
Permits issued and works to be
certified at end
60 (approx)
Permits issued and works to be certified at end
Barwon Prison: high-security unit
30
Permits issued and works to be certified at end
Hopkins Prison: Corella Place expansion
2.5
Permits issued and works to be certified at end
Capital project
Marngoneet Correctional Centre: restricted minimum 216-bed
project
Completed
Langi Kal Kal Prison: 42-bed project
3.35
Works certified at practical completion
Dhurringile Prison: 100 portable beds
1.8
Works certified at practical completion
0.86
Works certified at practical completion
Beechworth Correctional Centre: 50 portable beds
2.5
Works certified at practical completion
Langi Kal Kal Prison: 50 portable beds
2.5
Works certified at practical completion
Langi Kal Kal Prison: 126-bed project
13.9
Works certified at practical completion
Port Phillip Prison: 118-bed project
24
Works certified at practical completion
Wangaratta Court redevelopment
2.7
Works certified at practical completion
Melbourne Assessment Prison: 20 beds in acute assessment unit
Freedom of Information Act 1982
The Freedom of Information Act 1982 allows the public a right of access to documents held by the department.
Activity and compliance
For the 12 months ending 30 June 2014, the department received 754 applications. Of these requests, 29 were from
Members of Parliament, 69 were from the media and the remainder were from the general public.
Of the total access decisions made by the department, 82.5 per cent were granted in part or in full. The most frequently applied
exemptions related to the protection of an individual’s personal affairs, information that is confidential under another Act (such
as the Corrections Act 1986) and law enforcement information. Forty-six requests went to review by the Freedom of
Information Commissioner, with three appeals to the Victorian Civil and Administrative Tribunal.
The average time taken by the department to finalise requests was 28.3 days. The department processed 95.7 per
cent of requests within the statutory requirement of 45 days and the remaining 4.3 per cent of requests within 46–90
days.
Making a request
Access to documents may be obtained through written request to the Freedom of Information unit, as detailed in s17 of
the Freedom of Information Act 1982.
In summary, the requirements for making a request are:
•
•
•
it should be in writing
it should identify as clearly as possible which document is being requested
it should be accompanied by the appropriate application fee (the fee may be waived in certain circumstances).
A Freedom of Information request needs to be made to the agency that holds the documents being requested. Requests
for documents in the possession of the Department of Justice should be addressed to:
Freedom of Information Unit
Department of Justice
121 Exhibition Street
204
Melbourne VIC 3000
Requests can also be lodged online at www.foi.vic.gov.au.
Requests for documents held by Justice Portfolio statutory bodies that are subject to Freedom of Information, such as
Victoria Police, the Metropolitan Fire and Emergency Services Board, the Country Fire Authority, the Emergency
Services Telecommunications Authority, the Victoria State Emergency Service and the Office of Public Prosecutions,
should be sent directly to the relevant statutory body. A list of justice statutory bodies that are subject to Freedom of
Information can be found at www.justice.vic.gov.au.
Access charges may also apply once documents have been processed and a decision on access is made; for example,
photocopying and search and retrieval charges.
Further information regarding Freedom of Information can be found at www.justice.vic.gov.au, including the department’s
Part II Information Statement.
Telephone enquiries can be made to the department’s FOI unit on (03) 8684 0063.
Protected Disclosures Act 2012
Information about how to make a disclosure about the conduct of the Department of Justice or its officers and relevant
contact details are available on the Department of Justice website: www.justice.vic.gov.au.
Number of disclosures notified to the Independent Broad-based Anti-corruption Commission from 1 July 2013 to 30 June
2014: 2.
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9: Monitoring of corrections
The Office of Correctional Services Review (OCSR) monitors and reviews the corrections system to ensure it is secure,
safe, humane and minimises the risk to prisoners, offenders, staff and the broader community.
The OCSR supports the Secretary to fulfil his statutory obligation under section 7 of the Corrections Act 1986 to monitor
performance in the provision of all correctional services to achieve the safe custody and welfare of prisoners and
offenders.
The OCSR discharges this mandate by:
•
•
•
•
conducting reviews into serious incidents and allegations in the corrections system
conducting reviews of operations and services, including unannounced inspections
monitoring the performance of all prisons, Community Correctional Services and other correctional services
coordinating a volunteer Independent Prison Visitor Scheme of 35 independent visitors.
The performance of the OCSR is overseen by the independently chaired OCSR Advisory Committee, comprising four
independent members and three senior departmental representatives.
Reviews completed in 2013–14
The OCSR completed 10 reviews in 2013–14.
Follow-up review of Loddon Prison
In 2011, the OCSR conducted a whole-of-prison review of Loddon Prison in partnership with Justice Health. The OCSR
made 11 recommendations for improvement in areas including staff management, culture and security. The follow-up
review in 2013 assessed the prison’s progress against these recommendations.
The review found that Corrections Victoria and the prison had made considerable progress against all recommendations,
including positive change in the culture of the prison.
Unannounced inspection of ‘at-risk’ administrative practices
The OCSR inspected the administrative practices of three maximum-security prisons in the management of prisoners at
risk of suicide and self-harm. The inspections confirmed that appropriate practices are in place to identify and monitor
prisoners at risk, including multidisciplinary risk review teams, the use of individualised risk management plans and
referrals for specialist assessment.
The OCSR made one recommendation, identifying an opportunity to improve documentation processes, which was
accepted by Corrections Victoria.
Review of the management of alleged sexual assaults in prisons
In 2011, Corrections Victoria amended its procedures for responding to alleged sexual assaults on prisoners. Eighteen
months after the introduction of the amended policies, the OCSR began a review of Corrections Victoria’s management
of alleged sexual assaults to assess compliance with the amended procedures and identify opportunities for
improvement.
The OCSR review identified that the 2011 amendments had resulted in improved management practices. The OCSR
made two recommendations, identifying further opportunities to refine procedures and promote compliance. Corrections
Victoria accepted the recommendations.
Review of ‘at-risk’ training provided by G4S
This review followed a 2012 recommendation by the Coroner arising from an inquest into the death of a prisoner at Port
Phillip Prison in 2008. In accordance with the Coroner’s recommendation, the review considered the effectiveness of
procedures and training at Port Phillip Prison for responding to prisoners at risk of suicide or self-harm. The review found
that the prison, which is operated by G4S, was responsive to prisoners at risk and had well articulated procedures that
were generally well administered.
Unannounced inspection of barrier control at maximum security prisons
The OCSR inspected barrier control systems and practices at five maximum-security prisons. The inspections considered
the effectiveness of security at prison entry and exit points in relation to the movement of people, vehicles and deliveries.
The OCSR identified opportunities for improved compliance at all locations and made two recommendations regarding
search practices. Corrections Victoria accepted both recommendations.
Review of three suspected suicides in Victorian prisons
In early 2013, there were three deaths by apparent suicide in Victoria’s prisons. The OCSR engaged Professor James
Ogloff, Director of Psychological Services at Forensicare, to review the deaths to identify common issues or themes in
the management of these prisoners. The review made four recommendations to further strengthen the management of
prisoners at risk of suicide and self-harm, all of which were accepted by Corrections Victoria and Justice Health.
206
Inspection of emergency short-term beds
In 2013, Corrections Victoria implemented an emergency short-term bed strategy for additional capacity in response to
significant prisoner population growth. The OCSR inspected emergency short-term beds at seven prison locations to
observe conditions. The OCSR observed that, overall, the implementation of the short-term bed strategy was well managed,
with some matters for further consideration including bed quality and prisoner access to storage.
Review of the management of under 18-year-olds in the adult corrections system
This review considered the management of all under 18-year-olds accommodated in the adult correctional system since
2007–08, and examined the mechanisms by which they entered the adult system. The OCSR noted that Corrections
Victoria has strengthened its approach to managing young prisoners aged 18 to 24 years old. The review identified a
number of opportunities for improvement in the management and oversight of the small number of under 18-year-olds in
the adult system. It made 13 recommendations, 10 of which were accepted.
Review of Corrections Victoria’s management of an offender
At the request of the Acting Secretary, the OCSR reviewed the findings arising from several reviews conducted by
Corrections Victoria into the management of an offender. The OCSR concluded that Corrections Victoria accurately
identified the key issues of concern regarding the offender’s management. It made four recommendations for further
improvement, all of which were accepted.
Unannounced inspection of prisoner transport services
The OCSR inspected a sample of the fleet of prisoner transport vehicles to ensure that prisoners were transported in fitfor-purpose vans and managed with appropriate regard for their physical wellbeing, safety and security. Inspections were
conducted at the height of summer to also assess compliance with safety obligations relating to van temperature.
Operational tests for safety, welfare and security revealed a small number of deficiencies. The review made no
recommendations, but identified some opportunities for improvement for the attention of the general manager of G4S
Transport.
Prison performance data validation reviews
The OCSR undertakes Service Delivery Outcomes (SDO) validation reviews at private prisons (annually) and public
prisons (every three years) in order to verify that performance data reported to the Commissioner, Corrections Victoria is
true and accurate.
In 2013–14, the OCSR conducted validation reviews at the two private prisons and two public prisons and concluded that
the monthly SDO data reported by the prisons is true and accurate and the documentation is well maintained and
oversighted by senior staff.
The OCSR also conducted a validation review of incident reporting by prisoner transport services to identify unreported
incidents during its reporting year, from October to September.
Incident reviews
The OCSR uses its incident review function to review the circumstances and management of critical incidents within
prisons, Community Correctional Services and other corrections facilities to provide the Secretar y to the
Department of Justice with objective, accurate and timely advice on the operation of the corrections system and
opportunities for systemic improvement.
In 2013–14, the OCSR initiated 51 incident reviews and completed 61 incident reviews into a range of matters including
alleged assaults by staff, alleged assaults by prisoners on other prisoners, escapes and attempted escapes from
correctional facilities, fires, unlawful detentions and prisoner self-harm incidents.
Reviews begun in 2013–14
The OCSR also began another six reviews during 2013–14:
•
•
•
•
•
•
a desktop review of data on alleged assaults by staff in prisons in 2012 and 2013
a whole-of-prison review of the Judy Lazarus Transition Centre
a review of the management of temporary beds in prisons in 2014
a review of recommendations made by the OCSR since 2007
unannounced inspections of the management of valuable prisoner property
unannounced inspections of barrier control at medium-security prisons.
Impact of reviews
In addition to the matters identified in the completed reviews noted above, a broad range of changes and
improvements were made in 2013–14 as a result of OCSR work. Examples include:
Management of prisoners at risk of self-harm or suicide:
207
•
•
•
•
regular refresher training was introduced to the training schedule for prisoner transport officers in relation to prisoner
suicide and self-harm, with a focus on duty of care and appropriate intervention
Port Phillip Prison updated its procedures to ensure that prisoners with a current risk of suicide or self-harm are
accommodated in Building Design Review Project-compliant cells, which are designed to minimise potential hanging
points
procedures at Fulham Correctional Centre were amended to ensure timely and comprehensive communication of risks
for prisoners at risk of suicide or self-harm
new procedures were introduced to require staff to remove any items or fixtures that could be used as hanging points
in Building Design Review Project-compliant cells.
Safety and security:
•
•
•
•
new procedures were introduced for the use of specialised masks to protect staff health and safety in response to
prisoner spitting
Fulham Correctional Centre introduced thorough searching procedures for prisoners returning from community work
assignments, including reintroducing breath testing and an expanded urinalysis regime
Corrections Victoria convened a working group to review barrier control procedures to ensure consistent best practice
in security across maximum-security prisons
Fulham Correctional Centre instigated improved access to emergency equipment for rapid deployment in the event of
an emergency or prisoner disturbance.
Prisoner welfare:
•
•
•
operating hours were extended in a unit at the Melbourne Assessment Prison to provide prisoners with additional time
out of their cells for exercise and other activities
additional exercise equipment was installed in a Port Phillip Prison unit to support meaningful prisoner activity and
fitness opportunities
new training is under development for staff at the Melbourne Assessment Prison on the management of prisoners with
mental illness.
Prisoner and offender deaths
There were 11 deaths in custody in Victoria between 1 July 2013 and 30 June 2014, compared with 13 in the previous
year. All deaths in this period have been or are likely to be deemed the result of natural causes. The OCSR prepares a
report for the Coroner on each prisoner death in Victoria and monitors coronial inquests and any recommendations.
During 2013–14, the OCSR provided the Coroner with 14 prisoner death review reports.
The OCSR also prepares a report for the Coroner in the event of the death of a parolee within three months of release
from prison or, at the request of the Coroner, for any person who has been in custody or under the supervision of
Community Correctional Services. In 2013–14, the OCSR prepared 10 reports for the Coroner into offender deaths.
Independent Prison Visitors
The Independent Prison Visitor Scheme was established in 1986. There are currently 35 volunteers who regularly visit
prisons to speak with prisoners and staff, and provide the Minister for Corrections with independent and objective advice
on the operation of Victoria’s prisons from a community perspective. During 2013–14, visitors provided more than 300
reports, covering a range of matters including prisoner property, accommodation, parole reforms, the impact of prisoner
population growth and general conditions in custody.
In November 2013, the OCSR established the OCSR Independent Prison Visitor Scheme Koori Reference Committee.
The committee provides advice to the OCSR about increasing Aboriginal representation in the scheme and improving the
experience of Aboriginal Independent Prison Visitors. The committee also provides support to Aboriginal Independent
Prison Visitors. It comprises Aboriginal Elders and senior representatives from the OCSR and the Koori Justice Unit.
Current Independent Prison Visitor appointments expire in September 2014. In 2013–14, the OCSR began a recruitment
drive and media campaign to attract candidates for a new five-year term of appointment.
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10: Prison service statistics
2009–10
2010–11
2011–12
2012–13
2013–14
4,492
4,586
4,831
5,120
5,800
Number of escapes—total
3
0
1
3
7
Number of escapes—secure prisons
0
0
0
0
0
Number of escapes—open prisons
3
0
1
3
7
Number of escapes—other
0
0
0
0
0
0.07
0.0
0.02
0.06
0.12
0.0
0.0
0.0
0.0
0.0
0.63
0.0
0.18
0.44
0.77
0
2
2
7
4
8
10
4
13
11
0.18
0.22
0.08
0.25
0.19
4
2
0
3
0
0.09
0.04
0.00
0.06
0.00
Total number of Aboriginal deaths in custody
1
1
0
1
0
Number of Aboriginal deaths from apparent unnatural causes
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
Self mutilations (per 100 prisoners)
5.1
7.0
7.8
8.3
6.9
Attempted suicides (per 100 prisoners)
0.5
0.4
0.3
0.2
0.2
15.1
14.9
18.3
18.7
19.1
2.8
2.7
3.9
4.3
5.6
Percentage of positive random drug tests(d)
3.15
3.43
4.23
4.38
5.40
Number of visits (average per prisoner)
24.6
23.6
23.0
23.0
21.8
Average daily prison population
Containment and Supervision—escapes(a)
Escape rate—total (per 100 prisoners)
Escape rate—secure prisons (per 100 prisoners)
Escape rate—open prisons (per 100 prisoners)
Number of attempted escapes
Containment and Supervision—deaths(b)
Total number of deaths in custody
Death rate (per 100 prisoners)
Number of deaths from apparent unnatural causes
Death rate apparent unnatural causes (per 100 prisoners)
Aboriginal death rate apparent unnatural causes (per 100
prisoners)
Containment and Supervision—self harm
Containment and Supervision—assaults(c)
Assault rate—assaults on prisoners by other prisoners
Assault rate—assaults on staff or other persons by prisoners
Containment and Supervision—illicit drugs
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2009–10
2010–11
2011–12
2012–13
2013–14
84.8
87.2
88.9
89.1
88.1
Reparation—Employment(e)
Employment rate—all prisoners (%)
Notes
4. The escape categories conform with the current definition of escapes in the Report on Government Services prepared by the Steering
Committee for the Review of Commonwealth/State Service Provision. Escapes by prisoners on unescorted leave, in work parties or activities
outside the prison perimeter without direct one-to-one supervision are classified as ‘other’ escapes. All other escapes, including during
transfers between prisons or escorts outside the prison under one-to-one supervision, are classified according to the security level of the
prison. Five of the seven attempted escapes from a secure prison in 2012–13 were from a single incident.
5. The cause of all prisoner deaths is subject to confirmation by the Coroner.
6. The assault rate is based on the number of victims of all assaults. The measure in this report differs from the definition adopted for the
Report on Government Services, which disaggregates assaults by seriousness but excludes minor assaults that did not result in bodily harm
or require any form of medical intervention.
7. The rate for 2013–14 is preliminary as at 6 August 2014 and subject to change.
8. The prisoner employment rate is calculated as the proportion of all prisoners except those in full-time education or programs, remandees
who chose not to work and others whose situation precludes their participation in work, e.g. hospital patients, aged prisoners and prisoners in
transit.
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11: Correctional system performance
Escapes from custody in Victoria
There were seven escapes from prison custody in Victoria during 2013–14. Six prisoners escaped from the minimumsecurity Dhurringile Prison, and one from the minimum-security Beechworth Correctional Centre. All were subsequently
re-captured.
Deaths of prisoners in custody in Victoria
There were 11 deaths in prison custody in Victoria during 2013–14. The provisional cause of death in all cases was
natural causes.
The cause of all prisoner deaths is subject to subsequent confirmation by the Coroner.
Drug testing in Victorian prisons
Illicit drug use by prisoners is a key focus of Corrections Victoria’s enhanced intelligence service. In addition to
Corrections Victoria’s use of rigorous barrier control and detection measures to minimise the introduction of drugs into
prison, Victoria operates one of the most extensive urine testing programs in Australia.
The percentage of positive random drug test results increased from 4.38 per cent in 2012–13 to 5.40 per cent in 2013–
14. This was the highest level of positive tests recorded in the past five years.
In 2013–14, the total number of drug tests of prisoners, including random, general and targeted tests, was 28,353, an
increase of 10.5 per cent when compared with the 25,664 tests in 2012–13.
In addition, 13,045 breath tests were conducted in 2013–14, a decrease of 1.0 per cent when compared with 2012–13,
but an increase of 1.3 per cent when compared with 2009–10. The number of breath tests returning positive results
increased from one in 2012–13 to two in 2013–14.
Self-harm, assaults and offender care in Victorian prisons
The rate of self-harm by prisoners in Victorian prisons in 2013–14 was lower than the rate for 2012–13 and the attempted
suicide rate was the lowest for the five-year period under review.
The rate of assault on prisoners by other prisoners was slightly higher than in 2012–13. The slight increase has occurred
within the context of a significant expansion in prison capacity. Similarly, there was an increase in the rate of assaults on
staff by prisoners. The majority of assaults on staff by prisoners recorded in 2013–14 were classified as ‘no-injury
assaults’.
National Corrective Services performance comparisons
National performance data from all Australian states and territories is compiled to compare the efficiency and
effectiveness of a range of government services, including corrective services. The data is published annually in the
Report on Government Services by the Steering Committee for the Review of Government Services Provision.
Data published in early 2014 relating to the provision of services in 2012–13 showed Victoria had the second lowest
imprisonment rate and the lowest community corrections rate in Australia.
Victoria also had the highest overall prisoner employment rate in the country, while the participation rate for prisoner
education was the third highest in Australia and five percentage points above the national average.
In Victoria in 2012–13, there were three deaths from apparent unnatural causes, no escapes from secure custody, and
three escapes from open custody.
Comparative data for 2013–14 will be published in early 2015.
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12: Registry of Births, Deaths and Marriages
The Registry of Births, Deaths and Marriages (BDM) records in perpetuity all births, adoptions, marriages, relationships
and deaths occurring in the State of Victoria and provides certificates of these events to individuals. It also registers
changes of name and manages Victoria’s donor treatment registers (Central Register and Voluntary Register). Other
services include family history resources and products through Vic Heritage™ and civil marriage services at the Victorian
Marriage Registry.
Business operations
Registrable events 2013–14
Births (Births, Deaths and Marriages Registration Act 1996, Part 3) (a)
76,357
Changes of name (Births, Deaths and Marriages Registration Act 1996, Part 4)
11,277
Marriages (Births, Deaths and Marriages Registration Act 1996, Part 5)
29,257
Deaths (Births, Deaths and Marriages Registration Act 1996, Part 6)
37,086
Registered relationships (Relationships Act 2008, Part 2.5)
Revoked relationships (Relationships Act 2008, Part 2.5)
1,077
53
Adoptions (b)
109
Stillbirths
477
Total
155,693
Certificates issued 2013–14
Standard certificates (c)
245,284
Commemorative certificates
35,573
Historical certificates
13,884
Historical images
66,302
Total
361,043
Donor Treatment Registers
Registrations of donor births to the Central Register (Assisted Reproductive Treatment Act 2008, Part 6)
406
Central Register applications
19
Voluntary Register applications
42
Total
467
Recognition of sex 2013–14
Persons born in Victoria (Part 4 A, Div 1)
Approved applications
31
Refused applications
0
212
Sub total
31
Victorian residents born elsewhere (Part 4 A, Div 2)
Approved applications
12
Refused applications
0
Sub total
12
Total
43
Notes
• Data generated 1 July 2014. Data may vary depending on time and date it is generated. Full definitions of data values are available by
contacting BDM via www.bdm.vic.gov.au
i. Total number of births registered in Victoria, including those that occurred in a previous year but were registered for the first time in the
reporting period. Figures exclude stillbirths and incomplete registrations (i.e. where BDM is yet to receive formal notification from either the
parents or medical facility where birth occurred).
j. Total number of adoption orders handled.
k. Total number of standard certificates issued, including those issued with commemorative birth certificate orders.
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13: Office of the Emergency Services Commissioner
This is the final report of the Office of the Emergency Services Commissioner (OESC).
On 1 July 2014, the Inspector-General for Emergency Management (IGEM) was established under the Emergency
Management Act 2013 and superseded the OESC.
IGEM’s objectives are to provide assurance to the government and the community in respect of emergency management
arrangements in Victoria and foster continuous improvement of emergency management in Victoria.
In meeting its responsibilities, IGEM will draw heavily on the experience and excellent work of OESC. The department
acknowledges the significant contributions made by OESC to state and national emergency management sector
practices and the safety of our communities over the past 14 years.
Standards for the prevention and management of emergencies
As required under section 21I of the Emergency Management Act 1986, the Emergency Services commissioner
submitted the following report on the operation of Part 4A of that Act for the year ended 30 June 2014.
Duties of the Emergency Services Commissioner
Under the Emergency Management Act 1986, the commissioner has the following functions:
•
•
•
•
•
to establish standards for the prevention and management of emergencies to be adopted by the Emergency Services
Telecommunications Authority (ESTA) and Victoria State Emergency Service (VICSES) and monitor those agencies’
performance against those standards
to monitor the performance of the fire services agencies against performance standards developed by the Fire
Services Commissioner
to make recommendations to the Minister for Police and Emergency Services about non-financial matters arising from
any monitoring or investigation of ESTA
to report, advise and make recommendations to the Minister on any issue in relation to emergency management
to encourage and facilitate cooperation between all agencies to achieve the most effective utilisation of all services.
The commissioner, supported by OESC, also:
•
•
•
leads the national program delivering the location-based solution for the Emergency Alert telephone warning system
performs initial processes to activate the Natural Disaster Relief and Recovery Arrangements
manages Victoria’s contribution to the Resilient Australia Awards.
Monitoring of Victoria’s emergency management arrangements
OESC continued its collaborative work with the emergency management sector on the development of instruments to
enable monitoring of Victoria’s emergency management arrangements.
This included work regarding the Total Flood Warning System, emergency management governance, critical
infrastructure resilience, statewide training and exercising, and relief and recovery.
OESC also developed and piloted Victoria’s Emergency Management Continuous Improvement Self-Assessment
Process through a cross-sector working group. The sector has indicated its strong support for a self-assessment process
and will continue to work with IGEM on refining the process.
Preliminary consultations began on an overarching monitoring and assurance framework for the sector. This work will be
continued by IGEM.
Performance of the Emergency Services Telecommunications Authority
The commissioner has determined quantitative and qualitative performance standards for ESTA in accordance with
section 30 of the Emergency Services Telecommunications Authority Act 2004.
OESC monitors ESTA’s performance through analysis of monthly and quarterly reports and monthly meetings with ESTA
operations management. ESTA publicly reports its performance in its annual report.
The commissioner provides ESTA with comments on its performance and briefs the Minister for Police and Emergency
Services on matters relating to ESTA’s performance as required.
ESTA reported its performance against the quantitative performance standards across the five emergency services
organisations throughout the year, achieving compliance in 296 of the 322 individual performance values.
ESTA was unable to report against qualitative performance standards for the period from July 2013 to March 2014 due to
industrial action. For the period April 2014 to June 2014, it achieved compliance in 51 of the 59 individual performance
values.
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Call answer
ESTA receives calls through dedicated emergency numbers from trusted sources (Category A) and via Triple Zero (000)
(Category B). ESTA reported a high level of performance against all standards related to answering category A and B
emergency calls within five seconds.
ESTA met or exceeded compliance in all months and for all agencies except in November 2013 for Ambulance
Victoria (AV) (1.5 per cent below the benchmark of 90 per cent) and in January and February 2014 for both the
Country Fire Authority (CFA) and Metropolitan Fire Brigade (MFB) (varying between 0.4 to 4.8 per cent below the
benchmark of 90 per cent).
Severe weather events
Periods of severe weather presented ESTA with challenges in meeting its call answer and dispatch measures throughout
the year. This included periods of high temperatures in January and February 2014 and severe storms throughout the
year.
Where ESTA did not achieve monthly performance benchmarks, it provided OESC with a report detailing the reasons
why it was unable to do so. OESC then made a qualitative assessment to determine whether ESTA’s actions and
performance were reasonable given the circumstances.
Through these assessments, OESC identified opportunities for improvement in ESTA’s planning when severe weather is
forecast. ESTA has been progressively developing and enhancing its Critical Incident Response Plan to ensure it takes a
consistent and measurable approach to planning for and responding to severe weather events.
IGEM will monitor ESTA’s progress in enhancing its practices in relation to severe weather events.
Ambulance Victoria dispatch performance
ESTA did not meet the Ambulance Victoria (AV) dispatch performance benchmark in any month for metropolitan code 1
events (an emergency response when both lights and sirens are used). The benchmark requires ESTA to dispatch 90 per
cent of code 1 events within 150 seconds.
ESTA’s performance continued to trend downward from 80.8 per cent in July 2013 to a low of 75.6 per cent in February
2014.
The Commissioner has particularly focused on monitoring this performance issue over the past three years, engaging
regularly with the Chief Executive Officers of both ESTA and AV.
ESTA has undertaken a range of internal reviews in relation to its dispatch processes and identified a strong link between
its ability to meet this standard and AV resource availability. Both ESTA and AV have identified a range of strategies to
address the performance gap, however these strategies have some interdependencies that are not solely within ESTA’s
control. In June 2014, ESTA and AV agreed in principle to develop and implement a project implementation plan for
these strategies. IGEM will monitor the progress of this project and its effect on performance.
Investigations
OESC screened 31 potential performance-related issues or complaints relating to the ESTA’s performance and
completed one formal investigation.
A key focus for the commissioner in past years has been to encourage ESTA to enhance its own internal investigation
and evaluation capability. A highlight of this year has been the notable enhancements to ESTA’s processes and
capability as it established a new quality improvement team and implemented an adverse
events policy.
With this significant change, OESC shifted its focus to assuring these arrangements and monitoring the higher-level
systemic issues. IGEM will retain the same focus.
Reporting and advising the minister on issues relating to emergency management
OESC conducts a range of activities to review sector performance. Findings from these reviews contribute to
organisational learning and continuous improvement for the emergency management sector. Assessments may have
been initiated by the Minister for Police and Emergency Services or the Fire Services Commissioner, at the request of an
agency or department or as a result of trends observed by OESC.
From July 2013 to December 2014, OESC conducted a review of four disruptions to ESTA’s call-taking and dispatch
services that occurred due to unplanned outages of its computer-aided dispatch (CAD) system. The Review of ESTA
Computer-Aided Dispatch Disruptions May–August 2013 was publicly released in January 2014. It included assessment
of:
•
•
•
ESTA’s management of unplanned manual operations on 30 May, 17 June, 5 July and 1 August 2013
ESTA’s progress with implementation of its program to enhance the resilience of the CAD technology along with the
supporting business processes
ESTA’s performance during unplanned manual operations against performance standards established by the
215
commissioner in consultation with ESTA and emergency services organisations.
From April to June 2014, OESC undertook an independent evaluation of the Department of Transport, Planning and
Local Infrastructure’s management of Exercise Charon, a multi-agency counter-terrorism exercise conducted within the
Melbourne underground rail loop. The exercise involved Ambulance Victoria, the City of Melbourne, MFB, Metro Trains
Melbourne, Public Transport Victoria, Transport Safety Victoria and Victoria Police.
The evaluation provided performance information regarding the management of Exercise Charon, including the
demonstrated capability of the emergency services to respond to an emergency event in the Melbourne underground rail
loop.
In May and June 2014, OESC provided analysis and reporting services to the Fire Services Commissioner for its reports
into the 2014 Goongerah–Deddick Trail fire and the 2014 Mt Ray–Boundary Track fire. Both reports involved synthesis
of issues raised by fire-affected communities and provided a platform for the fire services to respond to the concerns
raised by the communities and promote improvements in fire and emergency management arrangements in the future.
Emergency Alert
OESC continued to lead the national project to deliver increased capabilities to the telephony-based warning system
known as Emergency Alert until 31 March 2014, when the project was placed under governance arrangements external
to the office.
The fully integrated location-based system, across all 2G/3G mobile networks, was delivered on 9 October and officially
launched on 15 October 2013, well in advance of the contracted deadline.
Emergency Alert can now be used to send warning messages to landlines and mobiles based on the service address
being within the affected area, and to all 2G/3G mobile phones based on their last known location and proximity to the
defined area.
On 22 January 2014, the Victorian Government announced Telstra’s introduction of an enhancement allowing locationbased Emergency Alert to reach 4G handsets on Telstra’s 4G network. Work continued with Optus and Vodafone to
similarly expand the location-based capability to their 4G networks.
4G mobile phones used outside the 4G network coverage areas revert to the 3G/2G networks where they can still be
detected by the carriers and sent a warning message from the Emergency Alert system. All mobile phones on the 4G
networks continue to receive messages based on their registered service address.
The new capability of Emergency Alert to broadcast location-based warnings to all Australian mobile phone networks
during emergencies served the nation well, with more than 1.6 million location-based messages sent to communities at
risk throughout the year, including more than one million messages during the 2013–14 fire season.
Assisting community relief and recovery
The Commissioner assisted in the activation of Emergency Re-establishment Assistance and the administration of the
Natural Disaster Relief and Recovery Arrangements. Under these arrangements, the Commonwealth Government
financially assists the state to incur expenditure for eligible persons and organisations following natural disasters. During
2013–14, OESC performed its support role for the following events:
•
•
•
•
•
•
Victorian storms and floods (13 August 2013)
Victorian storms (26 September 2013)
Victorian bushfires (15 January 2014)
Victorian bushfires (7 February 2014)
East Gippsland floods (14 June 2014)
Victorian storms (24 June 2014).
Delegations
In accordance with section 21H of the Emergency Management Act 1986, the Emergency Services Commissioner
formally delegated specific functions under his power to monitor standards (s21E) and to require information to be given
(s21F) to the Deputy Commissioner Assurance.
216
14: Additional departmental information available on request
The Directions of the Minister for Finance require a range of information to be prepared in relation to the financial year.
This information listed below has been collected and, subject to the provisions of the Freedom of Information Act, is
retained by the department:
a.
a statement that declarations of pecuniary interests have been duly completed by all relevant officers
b.
details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary
c.
details of publications produced by the entity about itself, and how these can be obtained
d.
details of changes in prices, fees, charges, rates and levies charged by the entity
e.
details of any major external reviews carried out on the entity
f.
details of major research and development activities undertaken by the entity
g.
details of overseas visits undertaken including a summary of the objectives and outcomes of each visit
h.
details of major promotional, public relations and marketing activities undertaken by the entity to develop
community awareness of the entity and its services
i.
details of assessments and measures undertaken to improve the occupational health and safety of employees
j.
a general statement on industrial relations within the entity and details of time lost through industrial accidents
and disputes
k.
a list of major committees sponsored by the entity, the purposes of each committee and the extent to which the
purposes have been achieved
l.
details of all consultancies and contractors including:
» consultants/contractors engaged
» services provided
» expenditure committed to for each engagement.
This information is available at www.justice.vic.gov.au and further enquiries should be directed to:
Director
Strategic Communication Branch
Department of Justice
GPO Box 123
Melbourne Victoria 3001
217