Annual Report 2013-14 Towards an asbestos-free Australia Page 1 ISSN 2204-1419 [print] ISSN 2204-1427 [online] With the exception of the Commonwealth Coat of Arms and where otherwise noted all material presented in this document is provided under a Creative Commons Attribution 3.0 Australia licence www.creativecommons.org/licenses/by/3.0/au/ The details of the relevant licence conditions are available on the Creative Commons website, accessible using the links provided, as is the full legal code for the CC BY 3.0 AU licence www.creativecommons.org/licenses/by/3.0/au/legalcode The document must be attributed as the Asbestos Safety and Eradication Agency Annual Report 2013–14. Access and further information The Australian Government aims to provide services that are fair, easy to access and simple to use and respond to the cultural and linguistic needs of Australia’s diverse society. For assistance with accessing the annual report, to request a copy (print or electronic), make an enquiry or comment, please contact the agency at: Asbestos Safety and Eradication Agency Attention: Communications Manager GPO Box 9880 Sydney NSW 2001 Email: enquiries@asbestossafety.gov.au Phone: 1300 363 079 Web: www.asbestossafety.gov.au Connect with the Asbestos Safety and Eradication Agency via social media: Twitter: www.twitter.com/AsbestosSafety Facebook: www.facebook.com/Asbestos-Safety-and-Eradication-Agency LinkedIn: www.linkedin.com/AsbestosSafety Page 2 Table of Contents Table of Contents .................................................................................................................................................. 3 Letter of Transmittal ............................................................................................................................................. 5 Section 1: Agency overview ................................................................................................................................... 6 Chief Executive Officer review................................................................................................................................... 6 The Agency................................................................................................................................................................ 7 National Strategic Plan ............................................................................................................................................. 9 Table 1: 2013-14 at a glance .................................................................................................................................. 13 Section 2: the Asbestos Safety and Eradication Council ........................................................................................14 Section 3: Report on performance .......................................................................................................................19 Delivering the National Strategic Plan - 2013-14 highlights ................................................................................... 19 Case study 1 ............................................................................................................................................................ 20 NSP Strategic goal one: Awareness ........................................................................................................................ 21 NSP Strategic goal two: Best practice ..................................................................................................................... 22 NSP Strategic goal three: Identification .................................................................................................................. 23 NSP Strategic goal four: Removal ........................................................................................................................... 24 NSP Strategic goal five: Research ........................................................................................................................... 25 NSP Strategic goal six: International leadership ..................................................................................................... 26 Trends in asbestos awareness and management ................................................................................................... 26 Section 4: Additional work or ministerial directions .............................................................................................28 Section 5: Future directions..................................................................................................................................29 Section 6: Management & accountability .............................................................................................................32 Corporate governance ............................................................................................................................................ 32 External scrutiny ..................................................................................................................................................... 33 Management of human resources .......................................................................................................................... 33 Mandatory reporting .............................................................................................................................................. 35 Section 7: Financial statements ............................................................................................................................39 Overview of financial performance ......................................................................................................................... 39 Independent auditors report ................................................................................................................................... 40 Statement by Chief Executive Officer and Chief Financial Officer ........................................................................... 42 Financial statements ............................................................................................................................................... 43 Page 3 Appendices ..........................................................................................................................................................74 Agency speaking engagements .............................................................................................................................. 74 National Asbestos Exposure Register...................................................................................................................... 77 Glossary ...............................................................................................................................................................84 Index ....................................................................................................................................................................85 Page 4 Letter of Transmittal Senator the Hon Eric Abetz Leader of the Government in the Senate Minister for Employment Minister Assisting the Prime Minister for the Public Service PO Box 6100, Senate Parliament House CANBERRA ACT 2600 Dear Minister It is my pleasure to present to you the annual report of the Asbestos Safety and Eradication Agency for the 2013–14 year. The report has been prepared in accordance with section 70 of the Public Service Act 1999 and section 45 of the Asbestos Safety and Eradication Agency Act 2013, which requires the agency to submit a report to the Minister on its operations for the year ending 30 June 2014. The report must be submitted as soon as practicable after the end of each financial year, for presentation to Parliament. The report contains the financial statements for the year ending 30 June 2014. These statements were prepared in accordance with the Finance Minister’s orders and as required by section 49 of the Financial Management and Accountability Act 1997. The financial statements also accord with applicable accounting standards. I certify that the Asbestos Safety and Eradication Agency has a fraud control plan in place which complies with the Commonwealth Fraud Control Guidelines. Yours sincerely Mr Peter Tighe Chief Executive Officer 3 October 2014 Page 5 Section 1: Agency overview Chief Executive Officer review It has been a significant first year of operations for the Asbestos Safety and Eradication Agency. Since coming into existence on 1 July 2013, the agency has built policies and processes to support the objectives of the Asbestos Safety and Eradication Agency Act 2013 and the goals and outcomes in the National Strategic Plan for Asbestos Awareness and Management. I’d like to thank the staff seconded to the Office of Asbestos Safety for laying the groundwork for the establishment of the new agency and the development of the National Strategic Plan. The key achievements of the agency to date include: effective management of the independent field monitors for the National Taskforce – Asbestos Safety in Telstra Infrastructure commencement of the National Asbestos Exposure Register to monitor the community’s awareness of potential exposure risks and increase knowledge of residential asbestos exposure risks creation and management of a database of licensed asbestos disposal facilities across Australia initiation of a baseline survey of community awareness of asbestos and its associated risks revision of the national strategic plan and increased awareness about the risks of asbestoscontaining materials in the community. Since coming on board as CEO in August 2013, I have undertaken extensive engagement through attendance at meetings, consultations and Senate Estimates hearings in addition to presenting at numerous conferences on behalf of the agency. This engagement supports awareness raising of the risks posed by ageing asbestos-containing material in the built environment. One major piece of work was to review the existing national strategic plan and finalise a new plan for the period 2014 to 2018. This review was initiated by a request from the Minister for Employment, Senator the Hon Eric Abetz, whose commitment to a national consensus on the issue of asbestos awareness and management saw the opportunity for further consultation with Australian Government agencies and the states and territories. While revising the national strategic plan, the agency has been able to lay the building blocks for the new plan with commissioning research and awareness initiatives that will support the objectives of the plan when it is finalised. The Australian Government has expressed its commitment to dealing with the legacy issues relating to asbestos and asbestos awareness and management and I am confident the agency will continue to deliver the objectives of the ASEA Act and the national strategic plan to reduce asbestos-related diseases in Australia. I look forward to working with the agency staff, council, the Australian Government and all stakeholders in implementing the national strategic plan over the 2014-15 year. Peter Tighe Chief Executive Officer Page 6 The Agency The Asbestos Safety and Eradication Agency (the agency) is a statutory authority established to provide a national focus on asbestos issues that go beyond workplace safety to encompass environmental and public health issues. The agency came into existence on 1 July 2013 through the enactment of the Asbestos Safety and Eradication Agency Act 2013 (the ASEA Act). Section 8 of the ASEA Act sets out the following functions of the agency: a) to encourage, coordinate, monitor and report on the implementation of the National Strategic Plan; b) to review and amend the National Strategic Plan as required by the National Strategic Plan or at the request of the Minister; c) to publish and promote the National Strategic Plan; d) to provide advice to the Minister about asbestos safety, if requested to do so by the Minister; e) to liaise with Commonwealth, State, Territory, local and other governments, agencies or bodies about: i. the implementation, review or amendment of the National Strategic Plan; or ii. asbestos safety; f) to commission, monitor and promote research about asbestos safety; g) such other functions as are conferred on the Agency by or under this Act, the rules or any other law of the Commonwealth; h) to do anything incidental or conducive to the performance of any of the above functions. The Agency is responsible through its Chief Executive Officer (CEO) to the Minister for Employment and for financial purposes, operated under the Financial Management and Accountability Act 1997 (FMA Act) for the 2013-14 year and the Public Service Act 1999 (PS Act) for staffing purposes. The Chief Executive Officer Mr Peter Tighe has been CEO of the agency since August 2013. Mr Tighe was National Secretary of the Communications, Electrical and Plumbing Union from 1995 to 2013, National Secretary of the Electrical Trades Union and Executive Member of the Australian Council of Trade Unions from 1991 to 2013. He was Chair of E-Oz Energy Skills Australia, E-Profiling Pty Ltd and the National Electrical and Electronic Industry Training Council and a trustee/board member of CBUS Superannuation. Mr Tighe has extensive experience in workplace health and safety issues and in tackling the hazards of asbestos-containing materials. Page 7 History In 2010, a wide-ranging review was established by the Australian Government to make recommendations for the development of a National Strategic Plan to improve asbestos management in Australia. The review encompassed asbestos management issues beyond work health and safety to include environmental and public health issues. The review also looked at issues including education and public awareness, removal, transport and disposal of asbestos. The Asbestos Management Review Report (AMR Report) released in August 2012 recommended the development of a National Strategic Plan to improve asbestos awareness and management in the broader community. The review recommended that an independent national agency be established to guide the implementation of the plan. The Office of Asbestos Safety (the office) was established in September 2012 to start this work. The office worked closely with state and territory governments as well as key stakeholder organisations to develop the National Strategic Plan. The office was replaced with the agency on 1 July 2013 by the creation of the ASEA Act. The agency and council are tasked with implementing the plan. Outcome and programme structure The agency came into existence on 1 July 2013 through the enactment of the ASEA Act and therefore does not have a specific Portfolio Budget Statement for agency operations for the 2013-14 year. The agency is referred to in the 2013-14 portfolio budget statement for Department of Education, Employment and Workplace Relations which covers the reasons for the establishment of the agency and its intended functions. However, it does not set an outcome structure to report against. Page 8 National Strategic Plan Under the ASEA Act, one of the primary functions of the agency is to encourage, coordinate, monitor and report on the implementation of the National Strategic Pan. The plan marks a historic step in Australia becoming the first nation to progress towards the ultimate elimination of asbestos-related diseases. The National Strategic Plan for Asbestos Awareness and Management 2013 – 2018 (the plan) was released on 31 July 2013. In developing the plan, the findings and recommendations of the Asbestos Management Review (2012) were considered. The plan is the first of its kind and prescribes a national approach to asbestos eradication, handling and awareness in Australia. The plan’s aim is to prevent exposure to asbestos fibres in order to eliminate asbestos-related disease in Australia. The plan was developed in consultation with the Australian Government, the state and territory governments, local government and a range of non-government stakeholders. It is a high level document that establishes a framework within which the states and territories work both cooperatively and independently to achieve set objectives. In accordance with section 45 of the ASEA Act, the plan will be supported by annual operational plans which will be approved by the Minister and will be published on the agency website, along with operational plans and annual reports in accordance with legislative requirements. Page 9 Figure 1: Stakeholder engagement and coordination map Minister for Employment states, territories and local government Industry stakeholders and resentatives Asbestos Safety and Eradication Council ASEA Department of Employment and Shared Services CEO & Staff temporary advisory groups and s24 subcommittees of the ASEA Act NGOs, asbestos disease advocacy groups employee representatives Stakeholder engagement and coordination The agency has a strong focus on consultation and coordination to support diverse stakeholder groups involved in asbestos issues. The diagram below indicates some of the primary stakeholder groups that the agency works with in delivering its functions under Section 8 of the ASEA Act to provide advice to the Minister about asbestos safety and the implementation of the National Strategic Plan. Page 10 Redraft of the National Strategic Plan In October 2013, the Minister for Employment wrote to the agency requesting that the National Strategic Plan be reviewed to ensure that all states and territories endorse the outcomes of the plan. This triggered a process of consultation with government, industry, and employee representatives to achieve greater consensus and to reflect diverse stakeholder views it acts as a national vehicle for asbestos awareness and management. The intent of the plan, agency and council is to coordinate complimentary efforts to reduce the impact of asbestos-related disease through asbestos management and awareness. This requires participation and cooperation across portfolios and the states and territories. The goals of the initial plan were laudable and received support as a worthwhile ambition for Australia to work towards. The plan was released in July 2013 prior to seeking endorsement from the states and territories. Concerns were raised about the practicality of removing all high risk asbestos from government and commercial buildings by 2030 without clear costing, information and analysis of how this was to be achieved without increasing risks to the community through unsafe removal practices. Feedback indicated some deliverables risked creating duplication, increased costs, or regulatory burden. Stakeholders also suggested a clearer focus on support for the residential sector would be beneficial due to a rise in exposure from home renovations. The agency worked with the states and territories, and other Australian Government departments and agencies impacted by the goals and outcomes of the plan and incorporated their feedback into the revised plan. Through a number of meetings and correspondence over several months, the agency produced a revised National Strategic Plan for Asbestos Management and Awareness 2014-2018. The agency incorporated feedback from all stakeholders and refined the outcomes and deliverables. The result is a more realistic plan that establishes the building blocks for preventing exposure to asbestos fibres and sets the nation on a path to eliminating asbestos-related diseases. In June 2014, the agency released the draft revised plan to the states and territories, council and stakeholders for comments. The key changes were: The introduction of a phased approach to the delivery of the plan. The revised plan covers the first phase (2014-2018) and will deliver the preparatory work to inform later phases, including a focus on evidence development, and identifying tools to grade the condition of asbestoscontaining materials in the built environment. Identifying work to be undertaken in the first phase to enable accurate estimates of the extent of Asbestos-Containing Material (ACM) in the built environment and potential increased risks and costs which may be involved in national removal programmes. The target of removal of asbestos by 2030 to be an aspirational aim that reflects the submissions to the Asbestos Management Review (2012) and not a deadline. Feedback supported the clear phased approach and the need for a national coordinated approach to asbestos management and awareness that focuses on practical solutions. The revised plan focuses on reducing the risks posed by asbestos in the built environment through a coordinated effort between the states and territories. Page 11 As asbestos-containing materials continue to age, it is expected their condition will deteriorate and require increased monitoring to prevent exposure to asbestos fibres; which will increase the costs to government, industry and the community. The activities delivered under the plan will seek to minimise this burden and provide evidence to reduce the likelihood of risks increasing and to identify costeffective approaches. Page 12 Table 1: 2013-14 at a glance 13 June 2014 Seventh Asbestos Safety and Eradication Council convened with Minister for Employment, Senator the Hon Eric Abetz attending 06 June 2014 Draft National Strategic Plan sent to the states and territories and Interdepartmental Committee stakeholders for comment as part of consultation 29 May 2014 Sixth Asbestos Safety and Eradication Council convened to discuss the draft revised National Strategic Plan 1 May 2014 Fifth Asbestos Safety and Eradication Council convened April 2014 Mesothelioma sufferer, Lou Williams attends Asbestos Disease Awareness Organization conference in the United states, supported by the agency 21 March 2014 Conclusion of the independent monitors project as part of the National Taskforce: Asbestos Safety in Telstra Infrastructure 13 February 2014 Fourth Asbestos Safety and Eradication Council convened 17-18 March 2014 Consultation meetings with states and territories and Australian Government departments/agencies regarding revised National Strategic Plan 26 November 2013 Third Asbestos Safety and Eradication Council convened 25 November 2013 First National Asbestos Forum jointly held by the agency and Comcare 24 October 2013 Minister for Employment, Senator the Hon Eric Abetz gives direction to the agency to review the National Strategic Plan and consult more widely with the states and territories and the Interdepartmental Committee 24 September 2013 Agency tasked with coordination of independent monitors by the National Taskforce: Asbestos Safety in Telstra Infrastructure 3 October 2013 3 September 2013 21 August 2013 Second Asbestos Safety and Eradication Council convened First meeting of the Asbestos Safety and Eradication Council convened New CEO Peter Tighe commences with the agency 31 July 2013 Australian Government released the National Strategic Plan for Awareness and Management 2013-2018 and announced funding of $6.4 million for the Agency to implement it. 1 July 2013 Establishment of the Asbestos Safety and Eradication Agency and Asbestos Safety and Eradication Council Page 13 Section 2: the Asbestos Safety and Eradication Council Message from Chair of the Council It was my pleasure to be the Chair of the Asbestos Safety and Eradication Council for 2013-14. Since being established on 1 July 2013, the agency has provided a national focus on asbestos awareness across the entire Australian community. A range of deadly asbestos-related diseases may be contracted as a result of breathing in tiny airborne fibres. Sadly, Australia has one of the world’s highest incidences of asbestos-related disease and death. In addition to occupational exposures, almost all homes built between 1945 and the late 1980s are likely to contain asbestos. While the use of building products containing asbestos has been banned since the late 1980s, there remains an enormous legacy issue of asbestos contamination in the built environment for all levels of government, industry and the community to manage into the future. The establishment of an independent national agency to improve asbestos awareness and management was a key recommendation arising from the Asbestos Management Review (AMR) 2012. Following widespread consultation with stakeholders, Australian Government bodies and the states and territories, the agency came into existence with the passage of the Asbestos Safety and Eradication Agency Act 2013. The legislation received bipartisan support from all members of the House of Representatives and senators. Another key recommendation from the Asbestos Management Review was for a National Strategic Plan for asbestos awareness and management based on the principles and recommendations contained in the Review’s report and reflected in the ASEA Act. Released in July 2013, the National Strategic Plan for Asbestos Awareness and Management 2013-2018 is the first of its kind in Australia and prescribes a comprehensive set of national goals and outcomes for asbestos awareness, handling and eradication. The nine Asbestos Safety and Eradication Council members were selected for their experience and expertise in asbestos safety, public health, corporate governance or community advocacy. The council met on seven occasions during the year in review and worked through the many varied issues of establishing the agency and revising the plan. Australia is recognised as a world leader in dealing with legacy issues relating to our use of asbestos. But we cannot be complacent as thousands of people are predicted to die from asbestos-related diseases in the next 20 years. We all must work together to implement practical and effective plans to build awareness of the dangers of asbestos and reduce the risk of exposure. The council looks forward to working constructively with all levels of government, the agency and stakeholders to further the critically important work of implementing the National Strategic Plan for Asbestos Awareness and Management. Geoff Fary Chair of the Asbestos Safety and Eradication Council Page 14 Functions of Council The Asbestos Safety and Eradication Council (the council), like the agency, was established by the assent of the ASEA Act. The council is made up of a Chair and nine members who have been selected for their experience and expertise with asbestos safety, public health, corporate governance or the representation of people with asbestos-related diseases (ARDs) and their families. One position is reserved for an Australian Government representative and four positions reserved for state, territory and local government representatives. Section 29(1) of the ASEA Act sets out the functions of the council in providing guidance to the agency through the CEO. These functions include: (a) to provide advice, and make recommendations, to the CEO about the performance of the Agency’s functions, on its own initiative or at the request of the CEO; and (b) to provide advice to the Minister about asbestos safety; and (c) to monitor the implementation of the National Strategic Plan by Commonwealth, State, Territory and local governments; and (d) to provide advice, and make recommendations, about the National Strategic Plan and annual operational plans. The council may issue written guidelines to the CEO about the performance of the agency’s functions but they must not be inconsistent with any directions given under section 14 governing ministerial directions to the CEO. The Minister may give written directions to the council about the performance of the council’s functions and the council must comply with these directions. Back row: Peter Dunphy, Peter Tighe (CEO), Ian Gardner, Mark McCabe, Geoff Fary (Chair), Rob Walters. Front row: Michael Borowick, Lex McCulloch, Carolyn Davis, Tracey Browne, Tanya Segelov, Barry Robson. Page 15 Council members Chair Mr Geoff Fary MAICD FAIM was Chair of the Australian Asbestos Management Review between 2010 and 2012. Prior to this he was Assistant Secretary of the Australian Council of Trade Unions for 3 years. Mr Fary has also held positions as Executive Director of the Association of Professional Engineers, Scientists and Managers, Australia (APESMA) and National Vice President of the Industrial Relations Society, Australia and a number of other senior corporate and government roles. His former board memberships and directorships include George Weston Foods Limited, Australian Employee Buyout Centre, APESMA Lawyers Pty Ltd, Victorian Government Purchasing Board, Safe Work Australia, Defence Reserves Support National Council and Commissioner for the Australian Safety and Compensation Commission. He is a member of the Australian Institute of Company Directors and the current Chairman of the Australian Institute of Management (Vic/Tas). Members Dr Ian R Gardner has been Senior Physician in Occupational and Environmental Medicine at the Department of Defence since 2010. Between 1998 and 2010 he was a Consultant Occupational Physician in private practice and prior to that held positions including Program Director, Health Safety and Environment Management at IBM Asia Pacific; Medical Officer for NSW, ICI Australia; Occupational Physician, Alcoa of Australia; and Medical Superintendent at Clermont District Hospital. Dr Gardner is Chairman of the Independent Health Review Panel of the New South Wales (NSW) Public Service Commission and a Councillor of the Specialist Medical Review Council. His former board memberships include the Workers Compensation and Occupational Health and Safety Council of NSW and HealthQuest, NSW. Dr Gardner holds a Bachelor of Medicine and Bachelor of Surgery from the University of Queensland, a Masters degree in Public Health from the University of Sydney, and is a Fellow of the Australasian Faculty of Occupational & Environmental Medicine of the Royal Australasian College of Physicians. Mr Peter Dunphy has been Director of Operations, Work Health and Safety Division of WorkCover NSW since 2011. Prior to this he held various senior management positions in WorkCover NSW including Director, Specialist Services Group, senior technical and policy roles, Acting Manager, Scientific Services Branch, Scientific Advisor and Coordinator of the Asbestos Regulation Unit. His board memberships include Chair of Heads of Asbestos Coordination Authorities Working Group, the Asbestos Education Committee and the Demolition and Asbestos Consultative Committee. Page 16 Mr Mark McCabe is Work Safety Commissioner and Senior Director of WorkSafe ACT. His previous positions have included Manager, Workplace Injury Performance, ACT Chief Minister’s Department, Project Manager, ACT Safety First Project, New South Wales State Manager and then General Manager of Comcare. He is Chair or the Asbestos Regulators Forum and a member and former Chair of the ACT Work Safety Council. Mr McCabe is an Honorary Fellow of the Safety Institute of Australia. Mr Lex McCulloch has been Commissioner and Executive Director, WorkSafe Western Australia (WA) since 2011. Prior to this he was Assistant Commissioner, Youth Justice Services, WA. His previous positions include Acting Deputy Commissioner, Offender Management and Professional Development, Department of Corrective Services, WA, Acting Director General, Department of Indigenous Affairs, WA and Acting Chief Executive Officer, Pilbara Development Commission. He is a member of the Commission for Occupational Health and Safety. Dr Robert Walters is a General Medical Practitioner, Part-Time Member of the Administrative Appeals Tribunal and Colonel in the Royal Australian Army Medical Corps. He is also a medico-legal advisor and case manager, Medical Indemnity Protection Society and a workers’ compensation medical advisor to a number of insurance companies. Dr Walters has been a General Practice Consultant to the Surgeon General, Australian Defence Force (ADF) since 1995 and has held positions in the ADF as a Senior Medical Officer, Director of Medical Services (Tasmania Region) and Military Compensation Adviser for Tasmania. His board memberships include Chair, Ministerial Asbestos Steering Committee, Medical Member of WorkSafe Tasmania Board, Headspace and Chair of the General Practice Consultative Group, ADF. Mr Michael Borowick has been Assistant Secretary, Australian Council of Trade Unions since 2010. Prior to this he has held various elected and other positions in the Australian Workers’ Union and its predecessor organisations. Mr Borowick is a member of the Safety, Rehabilitation and Compensation Commission, National Workplace Relations Consultative Council, Safe Work Australia, Defence Industry Innovation Board, and the Defence Reserves Support Council. Ms Tracey Browne has been Manager, National Safety and Workers Compensation Policy and Membership Services, Australian Industry Group (AI Group) since 2007. Between 2006 and 2007 she was AI Group’s National Program Manager, Small Business Occupational Health and Safety (OHS) Advisers Program and from 2001 to 2007 she was a Principal Adviser, Workers Compensation and OHS. Her former positions also include Group Manager, Health Safety & Environment, Bendix Mintex Pty Ltd, Coordinator, Occupational Health & Safety/Personnel, ACI Glass Packaging and Senior Consultant, Occupational Health & Safety, Deloitte Touche Tohmatsu. Page 17 Mr Barry Robson has been President of the Asbestos Diseases Foundation of Australia since 2003 and was a delegate between 1995 and 2003. From 1995 to 2003 he was also Assistant Secretary, Maritime Union of Australia and prior to that a Councillor of Blacktown City Council, NSW. Mr Robson is currently President of the Blacktown and Mt Druitt Cardiac Support Group, Director of the Asbestos Diseases Research Foundation and a member of the National Asbestos Taskforce. Ms Tanya Segelov has been a Partner at Turner Freeman Lawyers since 2000 and is an expert in asbestos and legal issues. Since 1996 Ms Segelov has represented hundreds of asbestos claimants in courts throughout Australia including acting for the late Bernie Banton in both his claims against James Hardie. She also acted pro bono for the Unions and Asbestos Groups in the James Hardie Inquiry. Ms Segelov is a former member of the Asbestos Management Review Advisory Group. Observer Ms Carolyn Davis is Manager of Workplace Health, Safety and Compensation (WHS & C) for the Australian Chamber of Commerce and Industry (ACCI). She has held senior roles in major Australian companies and in academia as well as running her own consultancy for many years in the area of industrial chemistry and occupational hygiene. Carolyn’s skills and experience also include occupational health and safety and worker’s compensation policy, management in small and large businesses, mediation and alternative dispute resolution. Professional memberships include the Royal Australian Chemical Institute (RACI), the Australian Institute of Occupational Hygienists (AIOH) and the Association of Dispute Resolvers (LEADR). Table 2: Council meetings and attendance Geoff Fary Ian Gardner Peter Dunphy Mark McCabe Lex McCulloch Rob Walters Michael Borowick Tracey Browne Barry Robson Tanya Segelov Carolyn Davis* 03/09/13 03/10/13 29/11/13 13/02/14 01/05/14 29/05/14 13/06/14 P P P P A P P A P P P A P P A P P P P A A P P P P P A P P P P P P P P P P P P P P P A P P P P P P P P P P P T T P P P A P P P P P P P P P P P P P P – Present A – Apologies T – Telephone * Observer, commenced attendance 01/05/14 Page 18 Section 3: Report on performance Delivering the National Strategic Plan - 2013-14 highlights The National Strategic Plan for Asbestos Awareness and Management 2013-2018 was developed by the agency predecessor, the Office of Asbestos Safety in the second half of the 2012-13 financial year in readiness for the establishment of the agency. As outlined in section one of this report, the National Strategic Plan has six key strategy areas for preventing exposure to asbestos fibres in order to eliminate asbestos- related disease in Australia. These strategy areas in turn established goals and outcomes to guide the agency in its ongoing work. The plan was developed in consultation with the Australian Government, the states and territories and local government and a range of non-government stakeholders. It is a high level document that establishes a framework within which the states and territories work both cooperatively and independently to achieve set objectives. The agency specific achievements in implementing the plan are outlined below. Establishment of agency and council secretariat The agency formally commenced operation on 1 July 2013 following the assent of the ASEA Act. Prior to this, the functions of the agency were being administered by the Office of Asbestos Safety within the former Department of Education, Employment and Workplace Relations. The council was also established with the assent of the ASEA Act to provide advice and guidance to the CEO about the agency’s functions and on the delivery of the National Strategic Plan. The agency provides secretariat support to the Chair and council members to ensure the council fulfils its legislative functions effectively. Page 19 Case study 1 Louise ‘Lou’ Williams Australian National Director, Global Ban Asbestos Network “Please hear my voice. I would not wish this painful and aggressive cancer on anyone. Those nearly invisible fibres have devastated my family, my friends, my community, and me.” Lou Williams Lou Williams is a mother, grandmother, wife and a mesothelioma sufferer. Lou came into contact with the deadly fibre as a child and she never knew her fate would follow her father’s footsteps who at 54 years old, died in 1985 of pleural mesothelioma. In 2003, aged just 48 years old, Lou was diagnosed with peritoneal mesothelioma, an asbestos-caused cancer. As she began to heal from surgeries and chemotherapy, mesothelioma spread to the pleura of her lungs in 2009. She is going through her fourth round of chemotherapy in late 2014. Lou says that mesothelioma is a death sentence for the person diagnosed and their family. Asbestos tumours are likened to barb wire and eventually join up into like a mass of hard concrete in the linings and suffocate the organs making breathing painful. It literally takes your breath away. As The Global Ban Asbestos Network (GBAN) Australian National Director, Lou has been a strong advocate for the sufferers of asbestos-related diseases and their families and for greater awareness of the dangers of asbestos to prevent people from being exposed in the future. “My story is only one of thousands of stories out there where families have suffered and have been torn apart by this insidious substance. My pain and knowledge, has spurred me on to advocate for the sufferers of asbestos-related diseases and their families and for greater awareness of the dangers of asbestos and prevent people from being exposed in the future.” Lou Williams In April 2014, Lou was invited to attend the Asbestos Disease Awareness Organisation (ADAO) 10th International Asbestos Awareness Conference where she received an award for her advocacy and support to other sufferers and their families. Page 20 NSP Strategic goal one: Awareness Stakeholder engagement and communications The agency and council sees the need for effective engagement and communication with the many varied stakeholders as vital in delivering the National Strategic Plan and advancing asbestos management and awareness. In collaboration with Comcare, the agency held the National Asbestos Forum on 25 November 2013, hosting over 160 delegates in Sydney and a range of speakers discussing topics such as effective asbestos disposal, risk management, medical research and treatment of asbestos-related diseases. This event was a success for the agency and council in starting a national conversation about the need for action regarding asbestos management and public health and provided valuable input into agency projects and operations. The success of the 2013 National Asbestos Forum and the need for more in depth discussion on some issues raised at the forum led the agency to opt for an expanded conference style event in 2014. The agency commenced organising the 1st International Conference on Asbestos Awareness and Management in Melbourne on 17 and 18 November 2014. This conference will include renowned international experts in asbestos management, health, advocacy and governance. The agency also commenced work on improvements to the website to create a ‘one stop shop’ facility for information, referrals and research covering all levels of government and the general public. The website will be used to raise awareness about asbestos-related information and the agency’s role in implementing the National Strategic Plan. Baseline community awareness survey A key component of developing strategies to raise awareness about asbestos management is to determine the base level of knowledge that already exists in industry and the general community. The agency engaged Colmar Brunton Market Research to undertake a baseline community awareness survey to ascertain current levels of awareness about asbestos and the dangers it poses. The research targeted four identified cohorts: Tradespeople (including apprentices and self-employed) DIY home renovators Real estate agents and landlords Members of the general community. The findings from this research will be released in the 2014-15 year. It will be used to identify gaps in knowledge and develop targeted guidance and materials to lift awareness levels, advocating for a precautionary approach to be taken whenever activities may disturb asbestos material. Page 21 Raising awareness In line with key strategies in the National Strategic Plan, the CEO and senior staff of the agency have participated in a range of activities to increase public awareness about the dangers of asbestos, and advocated on behalf of the community in highlighting the risk. These activities included providing comment to media outlets when requested. A particular issue of concern that arose during the 2013-14 year was the loose-fill (Mr Fluffy) asbestos contamination in residential housing in the ACT and NSW. WorkSafe ACT has stated that one company operating in and around Canberra between 1968 and 1979 sold pure loose fill asbestos as ceiling insulation for residential and commercial premises. This resulted in over 1,000 residential properties being treated with loose-fill asbestos and an unknown number of commercial premises being affected. There is also anecdotal information that more companies were applying loose-fill asbestos products to residential housing in Sydney and across the southern NSW regions. While loose-fill asbestos is a unique product, this issue highlights how pervasive asbestos-containing materials were over the decades following the Second World War. Further work is needed to identify where other forms of asbestos is located, its condition and potential risks. NSP Strategic goal two: Best practice Strengthening asbestos training in the utilities sector The agency commenced work on a project to improve asbestos training in the utilities sector during the 2013-14 year in line with the best practice goal of the National Strategic Plan. This project was a result of the taskforce review process put in place following incidences of inappropriate handling and removal of asbestos-containing materials during the rollout of the National Broadband Network (NBN) in 2013. The goal of the project is to produce a model best practice training package for the utilities sector to strengthen asbestos management practices and reduce current risks of workers and members of the public being exposed to asbestos fibres. The project will also have a secondary benefit of raising awareness within the utilities sector in regards to the risks posed by ACMs and the safe work methods of mitigating this risk. A steering committee and technical advisory group has been established to inform the work of the project and ensure that any training documentation that is developed is best practice, practical and implementable. These bodies include key stakeholders in the utilities sector as well as the states and territories through a representative nominated by the Heads of Workplace Safety Authorities (HWSA). Page 22 NSP Strategic goal three: Identification Risk assessment and identification tool pilot To advance identification methods in line with National Strategic Plan goal three, the agency worked in collaboration with WorkSafe Tasmania to test a range of asbestos identification tools to assess and grade the condition of asbestos-containing materials in the built environment. The project aims to identify the most effective and user-friendly tool for use in Australia by ensuring that testing is controlled and occurs across a range of settings. The project commenced in the second half of 2013 with a memorandum of understanding being reached between the agency and WorkSafe Tasmania. The project governance structure was established to provide expert advice and project guidance. The project will continue into the 2014-15 financial year with the finalisation of participating tools, approval of the assessment criteria and testing methodology, field work and reporting components. Rapid response protocol to prevent asbestos importation While Australia has banned the use and importation of asbestos-containing products, inconsistent international practices including unreliable certification that a product is asbestos-free, continues to pose a risk. The agency has collaborated with the HWSA Imported Materials Working Group to examine compliance and enforcement approaches in respect of imported materials that contain asbestos. During 2013-2014, the agency drafted a rapid response protocol with the participants of the working group. This will enable government agencies to work cooperatively and efficiently across jurisdiction and portfolio lines when products have been identified as containing asbestos and there is concern such products may have crossed state lines. Page 23 NSP Strategic goal four: Removal Database of disposal facilities A key piece of work undertaken in 2013-14 aligning with the identification strategy of the National Strategic Plan was a project to map the location and details of waste disposal facilities around Australia that accept asbestos waste. Feedback from a number of key stakeholders had highlighted the problem of locating a licenced asbestos disposal site close to their home or business. The effect of this is often either inaction, stockpiling of asbestos-containing materials or the illegal dumping of asbestos-containing materials in publicly accessible areas. These are factors which increase the risk of inadvertent exposure to asbestos fibres. This database will contribute to dealing with these problems and will be reviewed regularly to ensure the information it provides remains contemporary and useful to the community. The project was undertaken in conjunction with GeoScience Australia and provides a portal through which users can search for their nearest disposal facility via a specific street address. The search function is available on the agency's website at http://asbestossafety.gov.au/search-disposal-facilities. Page 24 NSP Strategic goal five: Research National Asbestos Exposure Register The National Asbestos Exposure Register (NAER) was announced on 7 June 2013 by the Australian Government to ensure there is a record of potential exposure in case an individual develops an asbestos-related disease in the future. The NAER captures details including where and when the potential exposure occurred and details of any diagnoses of asbestos-related diseases. The register provides the agency with a statistical analysis of potential or actual exposure events across Australia and allows the agency to remain informed about potential risks are identified through registration trends. A total of 1,060 people entered their details on to the NAER for the period from 1 July 2013 to 30 June 2014. (See appendix 3 for a breakdown of statistics for this period) The agency also implemented a new online registration system during the year achieving a more accurate, streamlined function for the agency and registrant. Baseline community awareness survey As outlined above, the agency engaged Colmar Brunton Market Research to undertake a baseline community awareness survey to ascertain current levels of awareness about asbestos and the dangers it poses. The results of this baseline awareness survey will provide valuable input into determining where the gaps in research are and what research projects are required, particularly in the domestic built environment. A number of research articles over the past few years have examined the impact on asbestos exposure in the domestic setting such as DIY home improvement and ‘third wave’ exposure in a non-occupational setting. However, more work is required to understand the amount of asbestos remaining in the built environment, and levels of exposure leading to diagnoses of asbestos-related diseases. A similar survey will be repeated by the agency, potentially in the 2015-16 year, to measure success against the awareness strategy contained in the National Strategic Plan. Page 25 NSP Strategic goal six: International leadership International Conference on Asbestos Awareness and Management The success of the 2013 National Asbestos Forum and the need for more in depth discussion on some issues raised at the forum led the agency to opt for an expanded conference style event in 2014. The agency commenced organisation of the 1st International Conference on Asbestos Awareness and Management in Melbourne on 17 and 18 November 2014. This conference will include renowned international experts in asbestos management, health, advocacy and governance, and will challenge delegates into thinking how Australia can drive change in our region and globally when it comes to the continued manufacturing and distribution of asbestos-containing materials. The conference aims to advance Australia’s leadership credentials in campaigning for a global ban on the mining and production of asbestos. The agency has also made connections with key Australian non-government organisations working internationally with involvement in raising awareness about the dangers of asbestos, particularly in Asia where the manufacturing of asbestos-containing materials is still rife. Trends in asbestos awareness and management The 2013-14 year was the first year of operation for the agency, and accordingly, data and information to identify trends cannot be provided in this annual report. Page 26 Case study 2 Stephen Wickham Mesothelioma sufferer, a "third wave" victim of asbestos “There must be thousands of people who open themselves to the same risk by doing handyman work or home renovation work. If there's any way in the world that this can help them, then that'll make it really worthwhile.” Stephen Wickham Stephen Wickham migrated to Australia with his wife and family to live the Australian dream and shortly after that they purchased a property in Perth, Western Australia. In 1994, Stephen commenced DIY renovations on their home, removing corrugated fibro sheeting from the garage and replaced part of the fence which was made of the same material. He knew the dangers of asbestos but was unaware that the fibro sheeting he was handling was made of asbestos and that he was putting himself and his family at risk. Nineteen years later, in 2013, the shock news of being diagnosed with mesothelioma saw him join the ranks of "third wave" victims of asbestos, those who were exposed in a DIY renovator or domestic setting, not as a result of their occupation. Stephen initiated landmark proceedings in the NSW Dust Diseases Tribunal to highlight the increasing number of non-occupational DIY handyman exposures that have taken place already and the potential for more unnecessary exposures into the future. The Asbestos Injuries Compensation Fund agreed to settle the matter on the day when Stephen was to take the stand and give evidence. As the DIY home renovation market booms in Australia, Stephen’s case provides a timely warning to people that if they own a home built before 1987, they will most likely encounter asbestos and they must take all possible precautions to avoid exposing themselves and their family to deadly asbestos dust. “I was aware asbestos was dangerous, I was unaware that "fibro" contained asbestos” Stephen Wickham Page 27 Section 4: Additional work or ministerial directions Coordination of independent monitors for Telstra infrastructure Following a number of reported instances of the inappropriate handling and removal of ACMs during the Telstra/NBN Co cabling rollout for the NBN, the National Taskforce – Asbestos Safety in Telstra Infrastructure (National Taskforce) was established to monitor ongoing activities and prevent the exposure of employees, contractors and the public to potential exposure to airborne asbestos fibres. One of the early decisions of the National Taskforce was to select 14 suitably experienced and qualified independent monitors, who were jointly funded by Telstra and the NBN Co, and engaged by the agency. The role of the independent monitors was to undertake random inspections of relevant works that may have involved handling ACMs, to verify that work was being conducted in a way that ensures the safety of employees, contractors, nearby residents and the general public. In undertaking their duties, the independent monitors provided regular reports to the National Taskforce, and engaged in day-to-day liaison and dialogue with all stakeholders including Telstra, the NBN Co, principle contracting companies, contractors, and regulators such as Comcare. During the relatively short period of their engagement, concluding on 21 March 2014, the independent monitors undertook in excess of 500 site assessments involving more than 80 separate contractors. Moreover, during the engagement of the independent monitors, there was no major incident reported where there was evidence that workers or bystanders had again been exposed to airborne asbestos fibres. Feedback from the independent monitors also indicated that a number of improvements in asbestos-containing material procedures and processes occurred during the monitors’ activities resulting in safer ACM removal. Page 28 Section 5: Future directions Revised National Strategic Plan As stated in section one of this report, the agency was tasked by the Minister for Employment with developing a revised National Strategic Plan for 2014-18 and beyond. This process has assisted the agency to strengthen the National Strategic Plan and set in place ongoing consultation mechanisms with government, industry and community stakeholder groups. In 2014-15, the agency will release the revised plan, and facilitate the identification of annual targets to achieve its outcomes. This will be undertaken in collaboration with states, territories and local government, consultation with industry and employee representatives; and with the oversight of the council. Greater awareness of asbestos dangers As outlined in section 3 of this report, the agency commissioned a baseline community awareness survey to identify current levels of awareness about asbestos and the dangers it poses. Initial results of the survey have shown that while there is a reasonable level of knowledge in the general community about the dangers of asbestos, there is less confidence in being able to identify where they or others may be at risk of exposure to asbestos. The results also show that there is less awareness about the dangers of being exposed to asbestos in the 40 years of age or less cohort. While not surprising, the results were of concern particularly around the lack of awareness among the younger generation who are still at risk of exposure due to the prevalence of asbestos-containing materials in the community but are less knowledgeable about the dangers this may cause. The agency will now use the results of this survey to address the gaps in knowledge and tailor its message to ensure a greater level of awareness about the dangers of asbestos into the future, advocating for a precautionary approach to be taken whenever activities may disturb asbestos material. A similar survey will be repeated by the agency in the 2015-16 year to measure success against the awareness goals and outcomes contained in the National Strategic Plan. 1st International Conference on Asbestos Awareness and Management During what is National Asbestos Awareness Month, the conference will challenge delegates to think about how Australia can drive change in our region and globally and deliver change on the ground in the community. The conference will feature well renowned international experts in asbestos management, health, advocacy and governance that will provide a stimulating and entertaining environment for delegates and stakeholders to discuss the big issues facing them in raising awareness about the dangers of asbestos in our work and domestic environment and how it can be managed into the future. Page 29 Asbestos removal from remote Indigenous communities During the 2013-14 year, the agency and council identified the issue of asbestos-containing materials in regional and remote areas of Australia, particularly in housing stock, as a key concern that needs to be addressed. Due to its insulation qualities and relative inexpensiveness, asbestos-containing materials were used widely throughout regional and remote communities in Australia, including in housing stock in remote indigenous communities. Following discussion at the Council meeting on 13 June 2014, the Minister for Employment has requested the agency target the challenges of ACM in remote Indigenous communities, and identify opportunities to provide training and ongoing employment for local people. Responding to the risks of asbestos importation While Australia has banned the use and importation of asbestos-containing products, inconsistent international practices including unreliable certification that a product is asbestos-free, continues to pose a risk. The agency has entered into discussions with the Australian Customs and Border Protection Service (ACBPS) to develop a memorandum of understanding between the two agencies to determine protocols for advice and assistance that will allow the ACBPS to protect the health and well-being of the Australian community from asbestos-related materials. Once finalised, the memorandum of understanding will be regularly reviewed to ensure it is responsive to ongoing changes in policy or regulatory amendments. Strengthening asbestos training in utilities sector As outlined in section three of this report, the agency is developing a project to strengthen asbestosrelated training in the utilities sector in line with the best practice goal of the National Strategic Plan. The agency will continue to progress the project through the 2014-15 year, conducting pilot and testing to ensure it is ready for voluntary adoption by organisations in the utilities sector. Page 30 Case Study 3 NBN rollout: managing asbestos in Telstra infrastructure During the course of the NBN rollout in 2013, there were a number of reported instances of inappropriate handling and removal of ACMs, including reports of plastic bags filled with asbestos being left in the open for a number of days near a Ballarat primary school. This led to concerns that the project was posing a potential risk to the community regarding exposure to asbestos fibres. Infrastructure in the telecommunications industry is often likely to contain asbestos and the vast nature of the network makes it difficult to identify where the asbestos-containing material may be present. Due to the risks associated with potential airborne asbestos fibres, guidelines state materials should be contained in heavy duty polythene bags which are twisted tightly and have the neck folded over and secured. Once the waste has been removed from the asbestos removal work area, it should then either be placed in secure storage for eventual disposal, or immediately removed from the site. There were concerns these guidelines were not being followed and the community was placed at risk. Due to the number of reports across Australia, and the potential health impacts for the community, there was a call for immediate action. In response, the Australian Government established the National Taskforce – Asbestos Safety in Telstra Infrastructure. The role of the National Taskforce was to monitor ongoing activities-related to the removal of asbestos from Telstra’s telecommunication infrastructure and improve procedures for removing the ACMs in accordance with best practice supervision and training. The National Taskforce, which included representation from the agency, engaged 14 independent monitors across Australia to oversee the work in relation to the NBN cabling roll-out. The agency’s role was to support the National Taskforce and coordinate the independent monitors. The agency and monitors were able to work cooperatively with industry to identify opportunities to improve performance and facilitate the remediation works being undertaken and fostered a close working relationship with Comcare, Telstra and the NBN Co, ensuring the work was undertaken in the safest possible manner and that any issues of concern were acted upon in a timely manner. Following the completion of the monitors project in March 2014, in response to the findings of the report, the agency commenced a review of the asbestos-related training provided for the utilities sector in order to develop and implement an improved, practical, competency-based asbestos safety and handling training program for all workers engaged in pit and pipe works. This project will also assist the agency in achieving best practice in relation to asbestos-related training in the utilities sector, which aligns with the best practice strategy under the National Strategic Plan. Page 31 Section 6: Management & accountability Corporate governance The agency governance framework has its foundation in the ASEA Act which established the agency and its functions and the appointment of a CEO to ensure the agency performs these functions. The functions of the agency are set out in section one (Agency Overview) of this report. The CEO is appointed by the Minister by written instrument for a period not exceeding five years and is responsible for the day to day administration of the agency. The CEO ensures the agency achieves its performance objectives in accordance with the National Strategic Plan and the policies, programs and performance requirements set out for internal governance purposes. Agency staff members are responsible for ensuring that the CEO is provided with all necessary information to perform their management responsibilities and to keep the council briefed on agency operations. The CEO is accountable to the Minister for Employment through the ASEA Act and the Minister for Finance in relation to the FMA Act which was the relevant legislation during the 2013-14 year. The ASEA Act also established the council to provide guidance to the CEO about the performance of the agency’s functions and provide advice to the Minister regarding asbestos safety. The functions of the council are set out in section two of this report. Establishment of agency committees In line with section 24(1) of the ASEA Act, the agency has been working to establish committees to provide advice and assistance to the agency and council in performing its functions. Each committee will be chaired by a member of the council and will consist of industry representatives, experts and key stakeholders to ensure veracity and will operate under defined terms of reference to assist directly in the implementation of the National Strategic Plan. These agency committees will be established in the first half of the 2014-15 year. Page 32 External scrutiny The Audit Committee was established in the latter part of the 2013-14 year and held one meeting in that year providing independent assurance and advice to the CEO on agency financial matters including risk management. The Australian National Audit Office (ANAO) was appointed to audit the agency’s 2013-14 financial statements. No judicial or tribunal decisions that could have a significant impact on agency operations have been made or are pending. No reports on the operations of the agency by the Auditor-General, a Parliamentary Committee or the Commonwealth Ombudsman have been released. Management of human resources The 2013-14 year saw the agency staffing in a state of flux due to the predecessor, the Office of Asbestos Safety transitioning to the new agency which commenced operation on 1 July 2013. At the commencement of the year, the agency had six staff members who had been seconded from other departmental or agency locations working to establish the agency and prepare the National Strategic Plan and the agency policies and procedures to ensure compliance with the enabling Act. At the end of the 1st quarter of 2013-14, the senior members of staff returned to their substantive positions handing over to the new CEO appointed in August 2013 and additional staff seconded temporarily to the new agency. At the end of year 30 June 2014, the agency had ten staff members at various grade levels including non-ongoing and temporary employment arrangements plus the CEO making a total of 10 staff members. Classification Female Male Sydney Canberra Perm/Full time Part time/temp Non-ongoing CEO 0 1 1 0 1 0 EL2 1 2 2 1 3 0 EL1 0 3 3 0 3 0 APS6 2 1 1 2 1 2 APS5 0 0 0 0 0 0 APS4 0 0 0 0 0 0 total 3 7 7 3 8 2 Page 33 Learning and development The agency provided learning and development opportunities for staff to support the functions of the agency with staff attending various conferences and training programs throughout the year to supplement already acquired skills and knowledge. The goal of approved learning and development was to enhance the skills base of the existing staff to minimise the need for external assistance, ensure compliance with regulatory requirements and operate with maximum efficiency as an independent agency. Collective Determination The agency did not have a collective determination under section 24 (1) of the PS Act in place during the 2013-14 year. Agency staff were employed as seconded officers from the Department of Employment and were subject to the department’s Enterprise Agreement 2012-14. Performance pay Agency staff do not receive performance bonuses or performance pay. Non-SES staff were covered by the Department of Employment Enterprise Agreement 2012-14 which provides for pay increments as per the pay scale. Work health and safety The agency is committed to fostering a proactive and collaborative approach to the management of employee health, safety and wellbeing. During the 2013-14 year, the agency had one (non-seconded) employee. Workers’ compensation and work health and safety matters for employees seconded to the agency were covered by the Department of Employment’s policies and procedures and are reported against in that department’s annual report. Employee assistance program During the year, the agency had access to the services provided by Optum through the Department of Employment, which included providing staff with confidential and personalised counselling for personal and vocational/professional matters. Page 34 Ethical standards The agency maintained its commitment to high ethical standards by reinforcing the Australian Public Service (APS) values and APS code of conduct. Induction programs highlighted the importance of APS values and the code of conduct as a vehicle for instilling a positive, collaborative and professional workplace culture with the aim of establishing the agency as a leading APS employer. During the year, there were no formal cases involving alleged breaches of the APS values or the APS code of conduct. Mandatory reporting Asset management The agency’s asset management strategy emphasises whole-of-life asset management and seeks to minimise holdings of surplus and underperforming assets. The agency’s stocktake of fixed and intangible assets in 2013–14 confirmed their location and condition, and emphasised to custodial officers their responsibility to ensure the safe keeping of assets in their custody. Details of the assets administered by the agency in 2013–14 can be found in Section seven: Financial statements. Purchasing In 2013–14, with the exception of those instances reported in its Certificate of Compliance, the agency complied with the Australian Government’s purchasing policies. Its procurement and purchasing activities were conducted in accordance with the Commonwealth Procurement Rules (CPRs) to ensure value for money, and efficient, effective, economical and ethical procurement outcomes. Page 35 Consultants Due to the size of the agency, it is necessary to engage consultants to provide specialist expertise or independent research and to provide value for money. The decision to engage a consultant is made in accordance with the FMA Act and regulations, and relevant departmental policies. In the 2013–14 year, five consultancy contracts were entered into, involving total actual expenditure of $175,015.86 (GST inclusive) as set out in the table below. This represents the total value of these consultancies for the reporting period. There were no ongoing consultancy contracts from 2012–13. Supplier name Description of services Contract value reason Geoff Fary Work on National Taskforce: Asbestos Safety in Telstra Infrastructure from December 2013 $4,893.13 need for specialised or professional skills Dr Yossi Berger Work on National Taskforce: Asbestos Safety in Telstra Infrastructure from December 2013 $4,667.91 need for specialised or professional skills Colmar Brunton Pty Ltd Asbestos awareness benchmark research project $52,728.00 need for independent research or assessment Department of Justice, Tasmania Asbestos identification tool pilot project $90,909.09 need for specialised or professional skills Lung Foundation Australia National asbestos awareness programme for health professionals and general community $21,817.73 need for specialised or professional skills total $175,015.86 Information on the value of contracts and consultancies is available on the AusTender website at www.austender.gov.au. Prior to engaging consultants, the agency takes into account the skills and resources required for the task, the skills available internally, and the cost effectiveness of engaging external expertise. Page 36 Grant Programmes The agency entered into one agreement to provide grant funding at a total cost of $40,000 (GST inclusive). The details of this agreement are as follows: recipient purpose value Date of effect Grant term location Asbestos Disease Society of South Australia Provide funding to deliver a suite of asbestos awareness training seminars to students in South Australian trade schools. $40,000 12 May 2014 8 months South Australia Australian National Audit Office access clauses All of the agency’s awarded contracts or Deeds of Standing Offer valued at $100,000 (GST inclusive) or greater, contain standard clauses granting the Auditor-General access to contractors’ premises. Exempt contracts The agency did not enter into any contracts in 2013–14 that have been exempted under the Freedom of Information Act 1982 (FOI Act) from reporting on AusTender. Advertising and market research In accordance with section 311A of the Commonwealth Electoral Act 1918, the agency is required to report on all payments over $12,400 (GST inclusive) to advertising agencies, market research organisations, polling organisations, media advertising organisations, public relations organisations and direct mail organisations. The total payment by the agency for market research in the reporting period was $96,668 paid to Colmar Brunton Market Research to conduct a baseline awareness survey as referred to in section 3 of this report. Ecologically sustainable development and environmental performance The agency has considered and applied the principles of ecological and environmental sustainability to all of its projects and operations during the reporting period. Projects included adhering to already established departmental policies and specifications regarding sustainability and preference for dissemination of the agency’s public reports through electronic media. The agency accommodation is located in the NSW State office for a number of Australian Government departments and agencies which enjoys a five star NABERS rating on energy efficiency, water usage, waste management and indoor environment quality of a building or tenancy and its impact on the Page 37 environment. More information regarding the NABERS rating system for buildings can be found on their website at www.nabers.gov.au Information publication scheme statement Agencies subject to the Freedom of Information Act 1982 are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report. Each agency must display on its website a plan showing what information it publishes in accordance with the IPS requirements. The agency’s current IPS information can be found at http://asbestossafety.gov.au/publications Changes to disability reporting in annual reports Since 1994, Commonwealth departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007-08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010-11, departments and agencies have no longer been required to report on these functions. The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 20102020, which sets out a ten year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high level two-yearly report will track progress against each of the six outcome areas of the Strategy and present a picture of how people with disability are faring. The first of these reports will be available in late 2014, and can be found at www.dss.gov.au. Page 38 Section 7: Financial statements Overview of financial performance Revenue from the Australian Government for 2013-14 was $5,442,000 with total expenses of $3,171,865. The key reasons for the underspend are the impacts of the interim arrangements for APS recruitment from 31 October 2013 (also refer Section 6, Management of Human Resources) and staff resources focussing on the cost-recovered National Task force - Asbestos Safety in Telstra Infrastructure project. With recruitment actions in late 2013-14 the agency will be in a position to ensure its 2014-15 budget allocation is better utilised. Page 39 Independent auditors report Page 40 Page 41 Statement by Chief Executive Officer and Chief Financial Officer In our opinion, the attached financial statements for the year ended 30 June 2014 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, as amended. Signed . Signed Peter Tighe Chief Executive Officer Nick Miller Chief Finance Officer 14 October 2014 14 October 2014 Page 42 Financial statements Asbestos Safety and Eradication Agency STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2014 Notes NET COST OF SERVICES EXPENSES Employee benefits Suppliers Grants Total expenses OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services Other revenue Total own-source income 3A 3B 3C 239,430 2,896,071 36,364 3,171,865 4A 4B 1,102,421 57,000 1,159,421 Net cost of services Revenue from Government Surplus attributable to the Australian Government Total comprehensive income 2014 $ 2,012,444 4C 5,442,000 3,429,556 3,429,556 Page 43 Asbestos Safety and Eradication Agency STATEMENT OF FINANCIAL POSITION for the period ended 30 June 2014 Notes ASSETS Financial Assets Cash and cash equivalents Trade and other receivables Total financial assets 5A 5B Total assets LIABILITIES Payables Other payables Total payables Provisions Employee provisions Total provisions 2014 $ 845,878 5,068,054 5,913,932 5,913,932 6A 2,283,177 2,283,177 7A 18,199 18,199 Total liabilities 2,301,376 Net assets 3,612,556 EQUITY Contributed equity Reserves Retained surplus (accumulated deficit) Total equity 183,000 3,429,556 3,612,556 Page 44 Asbestos Safety and Eradication Agency STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2014 Retained earnings 2014 $ Opening balance Balance carried forward from previous period Adjustment for errors Adjustment for changes in accounting policies Adjusted opening balance Comprehensive income Other comprehensive income Surplus (Deficit) for the period Total comprehensive income Transactions with owners Contributions by owners Equity injection - Appropriation Departmental capital budget Sub-total transactions with owners Transfers between equity components Closing balance as at 30 June Contributed equity/capital 2014 $ Total equity 2014 $ - - - 3,429,556 3,429,556 - 3,429,556 3,429,556 3,429,556 183,000 183,000 183,000 3,612,556 Page 45 183,000 183,000 Asbestos Safety and Eradication Agency CASH FLOW STATEMENT for the period ended 30 June 2014 2014 $ Notes OPERATING ACTIVITIES Cash received Appropriations Sale of goods and rendering of services Total cash received 556,946 1,102,421 1,659,367 Cash used Employees Suppliers Grants Total cash used Net cash from (used by) operating activities 213,323 599,734 432 813,489 8 845,878 FINANCING ACTIVITIES Cash received Contributed equity - capital injections Total cash received - Net cash from (used by) financing activities - Net increase (decrease) in cash held Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period 845,878 5A 845,878 Page 46 Asbestos Safety and Eradication Agency SCHEDULE OF COMMITMENTS for the period ended 30 June 2014 2014 $ BY TYPE Commitments receivable Net GST recoverable on commitments Total commitments receivable (35,422) (35,422) Commitments payable Other commitments Research and development Other1 Total other commitments Net commitments by type 38,667 350,977 389,644 354,222 BY MATURITY Other commitments receivable Within one year Total other commitments receivable Total commitments receivable (35,422) (35,422) (35,422) Commitments payable Research and development commitments Within one year Total research and development commitments Other commitments1 Within one year Total other commitments Total commitments payable Net commitments by maturity 38,667 38,667 350,977 350,977 389,644 354,222 Note: Commitments are GST inclusive where relevant. 1 Other commitments include a range of contracts such as grants and fees for provision of services. Page 47 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 1: Summary of Significant Accounting Policies 49 Note 2: Events After the Reporting Period 56 Note 3: Expenses 57 Note 4: Income 58 Note 5: Financial Assets 59 Note 6: Payables 60 Note 7: Provisions 61 Note 8: Cash Flow Reconciliation 62 Note 9: Senior Executive Remuneration 63 Note 10: Remuneration of Auditors 65 Note 11: Financial Instruments 66 Note 12: Financial Assets Reconciliation 68 Note 13: Appropriations 69 Note 14: Compensation and Debt Relief 70 Note 15: Reporting of Outcomes 72 Page 48 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 1: Summary of Significant Accounting Policies 1.1 Objectives of the Asbestos Safety and Eradication Agency The Asbestos Safety and Eradication Agency (ASEA) operates under the Australian Government’s accountability and governance frameworks. It is a not-for-profit entity. The agency has been established to provide a national focus on asbestos issues which go beyond workplace safety to encompass environmental and public health issues. The agency is structured to meet the following outcome: Outcome 1: Assist in the prevention of exposure to asbestos fibres and the elimination of asbestos-related disease in Australia through implementing the National Strategic Plan for Asbestos Awareness and Management in Australia. ASEA is a statutory authority established on 1 July 2013 following the assent of the Asbestos Safety and Eradication Act 2013 and is responsible through its Chief Executive Officer to the Commonwealth Minister for Employment. No comparatives are provided to these statements. The continued existence of the agency in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the agency’s administration and programs. ASEA activities contributing toward this outcome are classified as departmental. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the agency in its own right. The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth (2014) HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements. 1.2 Basis of Preparation of the Financial Statements The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997. The financial statements have been prepared in accordance with: Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period. The financial statements have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are presented in whole dollars unless otherwise specified. Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the agency or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies. Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured. Page 49 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 1.3 Significant Accounting Judgements and Estimates In the process of applying the accounting policies listed in this note, the agency has not identified accounting assumptions or estimates that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period. 1.4 New Australian Accounting Standards Adoption of New Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date as stated in the standard. The following new standards, amended standards or interpretations were issued by the Australian Accounting Standards Board prior to the sign off date that are applicable to the current reporting period and have a material impact on the agency. AASB 119 Employee Benefits - September 2011 (Principal) – this will result in an increased level of disclosure. Future Australian Accounting Standard Requirements The following new standards, revised standards, interpretations and amending standards were issued by the Australian Accounting Standards Board prior to the sign-off date and apply to future reporting periods. They are not expected to have a financial impact on the agency: AASB 1055 Budgetary Reporting - March 2013 (Principal) – this new requirement will require the agency to explain significant variances between budget and actual expenditure Other new standards, revised standards, interpretations and amending standards that were issued by the Australian Accounting Standards Board prior to the sign-off date are not expected to have an impact on the agency for future reporting periods. 1.5 Revenue Revenue from the sale of goods is recognised when: the risks and rewards of ownership have been transferred to the buyer; the agency retains no managerial involvement or effective control over the goods; the revenue and transaction costs incurred can be reliably measured; and it is probable that the economic benefits associated with the transaction will flow to the agency. Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when: the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and the probable economic benefits associated with the transaction will flow to the agency. The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable. Revenue from Government Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the agency gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts. Page 50 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Resources received free of charge Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature. Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (Refer to Note 1.6). Sale of assets Gains from disposal of assets are recognised when control of the asset has passed to the buyer. 1.6 Transactions with the Government as Owner Equity injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year. Restructuring of administrative arrangements Net assets received from, or relinquished to, another Australian Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity. Other distributions to Owners The FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. 1.7 Employee Benefits Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. Other long-term employee benefits are measured at net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly. Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the agency is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the agency’s employer superannuation contribution rates, to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by reference to work conducted as at 30 June 2014. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Superannuation Under the Superannuation Legislation Amendment (Choice of Funds) Act 2004, staff of the agency are able to become a member of any complying superannuation fund. A complying superannuation fund is one that meets the requirements under the Income Tax Assessment Act (1997) and the Superannuation Industry (Supervision) Act 1993. Staff are members of a scheme of their choice, the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or the Australian Government Employees Superannuation Trust (AGEST). The CSS, PSS and AGEST are defined benefit schemes for the Australian Government. The PSSap and other schemes are defined contribution scheme. Page 51 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the agency of Finance administered schedules and notes. The agency makes employer contributions to the employee’s superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The agency accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year. 1.8 Cash Cash is recognised at its nominal amount. Cash and cash equivalents include: cash on hand; demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value; cash held by outsiders; and cash in special accounts. 1.9 Financial Assets The agency classifies its financial assets in the following categories: available-for-sale financial assets; and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date. Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts over the expected life of the financial asset, or, where appropriate, a shorter period. Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss. Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. Available-for-sale financial assets are recorded at fair value. Gains and losses arising from changes in fair value are recognised directly in the reserves (equity) with the exception of impairment losses. Interest is calculated using the effective interest method and foreign exchange gains and losses on monetary assets are recognised directly in profit or loss. Where the asset is disposed of, or is determined to be impaired, part (or all) of the cumulative gain or loss previously recognised in the reserve is included through surplus or deficit for the period. Where a reliable fair value cannot be established for unlisted investments in equity instruments, these instruments are valued at cost. The agency has no such instruments. Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate. Impairment of financial assets Financial assets are assessed for impairment at the end of the reporting period. Page 52 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Financial assets held at amortised cost - If there is objective evidence that an impairment loss has been incurred for loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income. Available-for-sale financial assets - If there is objective evidence that an impairment loss on an available-for-sale financial asset has been incurred, the amount of the difference between its cost, less principal repayments and amortisation, and its current fair value, less any impairment loss previously recognised in expenses, is transferred from equity to the Statement of Comprehensive Income. Financial assets held at cost - If there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets. 1.10 Financial Liabilities Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon trade date. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability. Other financial liabilities Other financial liabilities are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). 1.11 Contingent Liabilities and Contingent Assets Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote. ASEA do not have any contingent liabilities or contingent assets as at 30 June 2014 and therefore no schedule or note is required in the financial statements. 1.12 Financial Guarantee Contracts Financial guarantee contracts are accounted for in accordance with AASB 139 Financial Instruments: Recognition and Measurement. They are not treated as a contingent liability, as they are regarded as financial instruments outside the scope of AASB 137 Provisions, Contingent Liabilities and Contingent Assets. 1.13 Acquisition of Assets Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Page 53 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring. 1.14 Property, Plant and Equipment Asset recognition threshold Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000, (or $50,000 for leasehold improvements) which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to the restoration provisions in property leases taken up by the agency where there exists an obligation to restore the property to its original condition. These costs are included in the value of the agency's leasehold improvements with a corresponding provision for the ‘restoration’ recognised. Revaluations Fair values for each class of asset are determined as shown below: Asset Class Fair value measurement Land Market selling price Buildings excluding leasehold improvements Market selling price Buildings – Leasehold improvements Depreciated replacement cost Infrastructure, plant and equipment Market selling price Following initial recognition at cost, property, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the agency using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives: Asset Class 2014 Buildings on freehold land 37-51 years Buildings – leasehold improvements Lease term Infrastructure, plant and equipment 3-25 years Page 54 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Impairment Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the agency were deprived of the asset, its value in use is taken to be its depreciated replacement cost. Derecognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. 1.15 Intangibles The agency’s intangibles comprise purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Purchases costing less than $200,000 are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the agency’s software are 2-15 years. 1.16 Taxation The agency is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses and non-financial assets are recognised net of GST except: where the amount of GST incurred is not recoverable from the Australian Taxation Office; and for receivables and payables. Page 55 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 2: Events After the Reporting Period There have been no events after balance date that have the potential to significantly affect the ongoing structure and financial activities of the agency. Page 56 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 3: Expenses 2014 $ Note 3A: Employee benefits Wages and salaries Superannuation Defined contribution plans Defined benefit plans Leave and other entitlements Other employee expenses Total employee benefits 170,079 26,095 17,548 25,708 239,430 Note 3B: Suppliers Goods and services supplied or rendered Contractors Consultants Travel IT services Committee Motor vehicle Marketing Shared service centre charges Other Total goods and services supplied or rendered 1,519,903 175,016 245,724 22,522 171,962 114,610 85,890 299,381 261,063 2,896,071 Goods supplied in connection with Related parties External parties Total services rendered Total goods and services supplied or rendered 1,876,284 1,005,242 2,881,526 2,881,526 Note 3C: Grants Private sector Non-profit organisations Total grants 1 36.364 36,364 Contractors include staff on secondment from the Department of Employment. Page 57 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 4: Income OWN-SOURCE REVENUE 2014 $ Note 4A: Sale of goods and rendering of services Rendering of services in connection with External parties Total rendering of services Total sale of goods and rendering of services 1,102,421 1,102,421 1,102,421 Note 4B: Other Revenue Resources received free of charge Total other gains 57,000 57,000 REVENUE FROM GOVERNMENT Note 4C: Revenue from Government Appropriations Departmental appropriations Total revenue from Government 5,442,000 5,442,000 Page 58 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 5: Financial Assets 2014 $ Note 5A: Cash and cash equivalents Cash on hand or on deposit Total cash and cash equivalents 845,878 845,878 Note 5B: Trade and other receivables Appropriations receivables For existing programs Total appropriations receivable 5,068,054 5,068,054 Total trade and other receivables (net) 5,068,054 Trade and other receivables (net) expected to be recovered No more than 12 months Total trade and other receivables (net) 5,068,054 5,068,054 Trade and other receivables (gross) aged as follows Not overdue Overdue by 0 to 30 days 31 to 60 days 61 to 90 days More than 90 days Total trade and other receivables (gross) 5,068,054 5,068,054 Page 59 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 6: Payables Note 6A: Other payables Salaries and wages Superannuation Accrued expenses Total other payables 6,937 971 2,275,269 2,283,177 Other payables expected to be settled No more than 12 months Total other payables 2,283,177 2,283,177 Page 60 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 7: Provisions 2014 $ Note 7A: Employee provisions Leave Total employee provisions 18,199 18,199 Employee provisions expected to be settled No more than 12 months More than 12 months Total employee provisions 18,197 2 18,199 Page 61 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 8: Cash Flow Reconciliation 2014 $ Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement Cash and cash equivalents as per Cash flow statement Statement of financial position Discrepancy 845,878 845,878 - Reconciliation of net cost of services to net cash from (used by) operating activities Net cost of services Revenue from Government (2,012,444) 5,442,000 Movements in assets and liabilities Decrease / (increase) in net receivables Increase / (decrease) in employee provisions Increase / (decrease) in other payables Net cash from (used by) operating activities (4,885,054) 18,199 2,283,177 845,878 Page 62 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 9: Senior Executive Remuneration Note 9A: Senior executive remuneration expenses for the reporting period 2014 $ Short-term employee benefits: Salary Other2 Total short-term employee benefits 170,079 25,708 195,787 Post-employment benefits: Superannuation Total post-employment benefits 26,095 26,095 Other long-term employee benefits: Annual leave accrued Long-service leave Total other long-term benefits 15,965 1,583 17,548 Termination benefits Separation and redundancy payments Total termination benefits Total senior executive remuneration expenses 239,430 Notes 1. Note 9A was prepared on an accrual basis. It excludes acting arrangements and part-year service where total remuneration expensed as a senior executive for the reporting period was less than $195,000. 2. Other includes motor vehicle allowances, other allowances and reportable fringe benefits. Page 63 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 9B: Average annual reportable remuneration paid to substantive senior executives during the reporting period Average annual reportable remuneration paid to substantive senior executives in 2014 Average annual reportable remuneration 1 Total reportable remuneration (including part-time arrangements): $195,000 to $224,999 Total number of substantive senior executives Substantiv e Senior Executives No. 1 1 $ Bonus paid5 $ Total reportable remunerati on $ - - 216,289 Reportable salary2 $ Contributed superannuati on3 $ Reportable allowances 191,165 25,124 4 Notes: 1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band. 2. 'Reportable salary' includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column); b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax purposes); c) exempt foreign employment income; and d) salary sacrificed benefits. 3. The 'contributed superannuation' amount is the average cost to the entity for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period. 4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries. 5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. Existing remuneration arrangements for senior executives do not provide for the payment of performance bonus. Note 9C: Average Annual Reportable Remuneration Paid to Other Highly Paid Staff during the Reporting Period There were no other highly paid staff during the reporting period. Page 64 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 10: Remuneration of Auditors 2014 $ Financial statement audit services were provided free of charge to the department by the Australian National Audit Office. Fair value of services received Financial statement audit services Total fair value of services received 57,000 57,000 No other services were provided by the auditors of the financial statements. Page 65 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 11: Financial Instruments Note 11A: Categories of financial instruments Financial Assets Loans and receivables Cash and cash equivalents Total loans and receivables 845,878 845,878 Total financial assets 845,878 Financial liabilities Financial liabilities measured at amortised cost Accrued expenses Total financial liabilities measured at amortised cost 2,275,269 2,275,269 Total financial liabilities 2,275,269 Note 11B: Fair value of financial instruments Financial Assets Cash and cash equivalents Total financial assets Accrued expenses Total financial liabilities Carrying amount 2014 $ Fair value 2014 $ 845,878 845,878 845,878 845,878 2,275,269 2,275,269 2,275,269 2,275,269 Page 66 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 11C: Credit risk The agency is exposed to minimal credit risk as loans and receivables were cash and cash on deposit. The agency has no significant exposures to any concentrations of credit risk. All figures for credit risk referred to did not take into account the value of any collateral of other security. Credit quality of financial instruments not past due or individually determined as impaired Not past due nor impaired 2014 $'000 Cash and cash equivalents 845,878 Total 845,878 Past due or impaired 2014 $'000 - ASEA holds no collateral against credit risk. Note 11D: Liquidity risk The agency’s financial liabilities were accrued expenses. The exposure to liquidity risk was based on the notion that the agency will encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the agency is appropriated funding from the Australian Government. The agency manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the agency has policies in place to ensure timely payments are made when due and has no past experience of default. Maturities for non-derivative financial liabilities in 2014 Accrued expenses Total On demand $'000 - Within one year $'000 2,275,269 2,275,269 Between one to two years $'000 - Between two and five years $'000 - More than five years $'000 - Total $'000 2,275,269 2,275,269 Note 11E: Market risk The agency held basic financial instruments that did not expose the agency to market risks. Page 67 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 12: Financial Assets Reconciliation 2014 $ Financial assets Total financial assets as per statement of financial position Less: non-financial instrument components Appropriations receivable Total non-financial instrument components Total financial assets as per financial instruments note Notes 5,913,932 5B 11A 5,068,054 5,068,054 845,878 Page 68 Asbestos Safety and Eradication Agency NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 13: Appropriations Note 13A: Annual Appropriations ('Recoverable GST exclusive') 2014 Appropriations Annual Appropriation Appropriations reduced1 AFM2 Section 30 Section 31 Section 32 Total appropriation Appropriation applied in 2014 (current and prior years) $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 5,442,000 - - - 1,102,421 - 6,544,421 813,489 5,730,932 183,000 - - - - - 183,000 - 183,000 5,625,000 - - - 1,102,421 - 5,727,421 813,489 5,913,932 Appropriation Act FMA Act Variance DEPARTMENTAL Ordinary annual services Other services Equity Total departmental Notes: 1. Appropriations reduced under Appropriation Acts (No. 1, 3 & 5) 2013-14: sections 10,11 and 12 and under Appropriation Acts (No. 2, 4 & 6) 2013-14: sections 12, 13 and 14. Departmental appropriations do not lapse at financial year end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister’s determination and is disallowable by Parliament. 2. Advance to the Finance Minister (AFM) – Appropriation Acts (No. 1, 3 & 5) 2013-14: section 13 and Appropriation Acts (No. 2, 4 & 6) 2013-14: section 15 4. Departmental variances represent the appropriation receivable at Note 5B. Page 69 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 13B: Unspent Annual Appropriations ('Recoverable GST exclusive') 2014 $ Departmental Appropriation Act (No. 1) 2013-14 Appropriation Act (No. 4) 2013-14 Total 4,885,054 183,000 5,068,054 Page 70 Asbestos Safety and Eradication Agency NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTS 14: Compensation and Debt Relief 2014 $ Departmental No ‘Act of Grace’ payments were expensed during the reporting period. - No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. - No ex-gratia payments were provided for during the period. - No payment were provided under the Compensation for Detriment caused by Defective Administration (CDDA) scheme during the reporting period. - No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period. - Page 71 Asbestos Safety and Eradication Agency NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTS Note 15: Reporting of Outcomes The agency has one outcome and details of the outcome are provided in the front of the 2013-14 Annual Report. Note 15A: Net cost of outcome delivery Outcome 1 Departmental Expenses Own-source income Net cost/(contribution) of outcome delivery Total 2014 $ 2014 $ 3,171,865 1,159,421 2,012,444 3,171,865 1,159,421 2,012,444 Outcomes are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome. Page 72 Asbestos Safety and Eradication Agency NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 15B: Major classes of departmental expense income assets and liabilities by outcome Outcome 1 Expenses Employee benefits Suppliers Grants Total Income Sales of goods and services Income from government Other Total Assets Cash and cash equivalents Trade and other receivables Total Liabilities Other payables Employee provisions Total Page 73 Total 2014 $ 2014 $ 239,430 2,896,071 36,364 3,171,865 239,430 2,896,071 36,364 3,171,865 (1,102,421) (5,442,000) (57,000) (6,601,421) (1,102,421) (5,442,000) (57,000) (6,601,421) 845,878 5,068,054 5,913,932 845,878 5,068,054 5,913,932 (2,283,177) (18,199) (2,301,376) (2,283,177) (18,199) (2,301,376) Appendices Agency speaking engagements Date of event Location Organisation Type 02-Sep-13 Sydney, NSW Heads of Asbestos CA Meeting 03-Sep-13 Sydney, NSW Asbestos Safety and Eradication Council Meeting 10-Sep-13 Melbourne VIC Telstra Taskforce Meeting 02-Oct-13 Melbourne VIC Telstra Taskforce Meeting 03-Oct-13 Sydney NSW Asbestos Safety and Eradication Council Meeting 09-Oct-13 Sydney NSW ACTU, CFMEU, AMWU, CEPU Meeting 18-Oct-13 Sydney NSW Asian Ban Asbestos Network (A-BAN), Sugio Furuya Meeting 21-Oct-13 Gold Coast, QLD e-Profiling board meeting and AGM Meeting 28-Oct-13 Yarralumla, ACT Master Builders Australia Meeting 06-Nov-13 Sydney NSW Telstra Meeting 19-Nov-13 Sydney, NSW Demolition and Asbestos Consultative Committee (DACC) Meeting 21-Nov-13 Canberra ACT Australian Parliament Senate Estimates 26-Nov-13 Sydney NSW Asbestos Safety and Eradication Council Meeting 27-Nov-13 Ashford SA SafeWork SA Forum 27-Nov-13 Ashford SA South Australian Asbestos Advisory Committee Meeting 28-Nov-13 Sydney NSW Unions NSW Conference 02-Dec-13 Teleconference Various State and Territory Governments Meeting 03-Dec-13 Melbourne VIC Comcare Meeting 04-Dec-13 Sydney NSW ACTU Meeting 05-Dec-13 Melbourne VIC Telstra Taskforce Meeting 09-Dec-13 Phillip, ACT enHealth Meeting September 2013 October 2013 November 2013 December 2013 Page 74 Date of event Location Organisation Type 16-Dec-13 Sydney NSW ETU Meeting Sydney NSW Hazibag Australia Meeting 04-Feb-14 Sydney NSW AUSGRID Meeting 06-Feb-14 Melbourne VIC Telstra Taskforce Meeting 11-Feb-14 Canberra ACT Safe Work Australia Meeting 13-Feb-14 Sydney NSW Asbestos Safety and Eradication Council Meeting 27-Feb-14 Canberra ACT Senate Estimates Hearing 28-Feb-14 Sydney NSW Utilities sector Meeting 11-Mar-14 Brunswick VIC Plumbing Industry Climate Action Centre Forum 13-Mar-14 Teleconference Lung Foundation Meeting 17-Mar-14 Canberra ACT Various Commonwealth Departments Forum 18-Mar-14 Sydney NSW Various State and Territory Governments Forum 19-Mar-14 Sydney NSW NSW EPA Meeting 20-Mar-14 Sydney NSW Slater and Gordon Forum 27-Mar-14 Perth WA enHealth Committee Meeting 03-Apr-14 Melbourne VIC Telstra Taskforce Meeting 09-Apr-14 Acton ACT AIATSIS Meeting 10-Apr-14 Sydney NSW WorkSafe TAS Meeting 14-Apr-14 Canberra ACT Australian Customs and Border Protection Service Meeting 28-Apr-14 Canberra ACT Safe Work Australia forum 30-Apr-14 Parkes ACT Department of Prime Minister and Cabinet Forum 01-May-14 Sydney NSW Asbestos Safety and Eradication Council Meeting 06-May-14 Teleconference ACTU Meeting 16-May-14 Sydney NSW Unions NSW Meeting 22-May-14 Parkes ACT Department of Finance Meeting 26-May-14 Sydney NSW Department of Immigration and Border Protection Meeting January 2014 13-Jan-14 February 2014 March 2014 April 2014 May 2014 Page 75 Date of event Location Organisation Type 27-May-14 Teleconference ANZSOG Meeting 28-May-14 Sydney NSW Unions NSW Forum 29-May-14 Sydney NSW Asbestos Safety and Eradication Council Meeting 02-June-14 Canberra ACT Senate Estimates Hearing 10-June-14 Ballarat VIC 2014 Electrotechnology Teaching and Learning Conference Conference 11-June-14 Teleconference Worksafe Tasmania Meeting 13-June-14 Sydney NSW Asbestos Safety and Eradication Council Meeting 17-June-14 Canberra ACT Parliamentary Group on Asbestos Related Disease Meeting 18-June-14 Teleconference WorkSafe Tasmania Meeting 24-June-14 Sydney NSW OCTIEF Pty Ltd Meeting June 2014 Page 76 National Asbestos Exposure Register Statistics for 1 July 2013 to 30 June 2014 Register - States breakdown ACT NSW NT QLD SA TAS VIC WA other Location ACT Other NSW NT NZ QLD SA TAS VIC WA Grand Total Number 49 1 476 24 1 150 100 33 123 103 1,060 % female % 4.63 14 1.32 0.10 0 0 44.90 87 8.20 2.26 4 0.38 0.10 0 0 14.15 23 2.17 9.43 29 2.73 3.12 10 0.95 11.60 17 1.60 9.71 26 2.45 100% 210 19.81% male % 35 3.31 1 0.10 389 36.70 20 1.88 1 0.10 127 11.98 71 6.70 23 2.17 106 10.00 77 7.26 850 80.19% Page 77 900 800 700 600 500 elsewhere 400 work 300 200 100 0 Male Male Female Grand Total Female ratio 850 (80.19%) 210 (19.81%) 1,060 work 796 187 983 elsewhere 54 23 77 Page 78 Annual Report list of requirements Part of Report Description Requirement Page Letter of transmittal Mandatory 5 Table of contents Mandatory 3 Index Mandatory 85 Glossary Mandatory 84 Contact officer(s) Mandatory 2 Internet home page address and Internet address for report Mandatory 2 Review by Chief Executive Officer Mandatory 6 Summary of significant issues and developments Suggested 22-27 Overview of agency’s performance and financial results Suggested 39 Outlook for following year Suggested 30-31 Significant issues and developments – portfolio Portfolio departments – suggested N/A Role and functions Mandatory 7-12 Organisational structure Mandatory 10 Outcome and programme structure Mandatory 8 Where outcome and programme structures differ from PB Statements/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change Mandatory N/A Portfolio structure Portfolio departments mandatory N/A Review by Chief Executive Officer Agency overview Page 79 Report on Performance Review of performance during the year in relation to programmes and contribution to outcomes Mandatory 20-27 Actual performance in relation to deliverables and KPIs set out in PB Statements/PAES or other portfolio statements Mandatory N/A Where performance targets differ from the PBS/PAES, Mandatory N/A details of both former and new targets, and reasons for the change Narrative discussion and analysis of performance Mandatory Trend information Mandatory Significant changes in nature of principal functions/services Suggested N/A Performance of purchaser/provider arrangements If applicable, suggested N/A Factors, events or trends influencing departmental performance Suggested N/A Contribution of risk management in achieving objectives Suggested N/A Performance against service charter customer service standards, complaints data, and the department’s response to complaints If applicable, mandatory N/A Discussion and analysis of the department’s financial performance Mandatory 38 Discussion of any significant changes in financial results from the prior year, from budget or anticipated to have a significant impact on future operations. Mandatory N/A Agency resource statement and summary resource tables by outcomes Mandatory 41-72 Agency heads are required to certify that their agency complies with the ‘Commonwealth Fraud Control Guidelines’. Mandatory 5 Statement of the main corporate governance practices in place Mandatory 33 Names of the senior executive and their responsibilities Suggested 7 Senior management committees and their roles Suggested N/A Management and Accountability Corporate Governance Page 80 Corporate and operational plans and associated performance reporting and review Suggested N/A Internal audit arrangements including approach adopted to Suggested identifying areas of significant financial or operational risk and arrangements to manage those risks 34 Policy and practices on the establishment and maintenance of appropriate ethical standards Suggested 34 How nature and amount of remuneration for SES officers is determined Suggested N/A Significant developments in external scrutiny Mandatory 34 Judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner Mandatory 34 Reports by the Auditor-General, a Parliamentary Committee. the Commonwealth Ombudsman or an agency capability review Mandatory 34 Assessment of effectiveness in managing and developing human resources to achieve departmental objectives Mandatory 34-36 Workforce planning, staff retention and turnover Suggested 34 External Scrutiny Management of Human Resources Impact and features of enterprise or collective agreements, Suggested individual flexibility arrangements (IFAs), determinations, common law contracts and Australian Workplace Agreements (AWAs) N/A Training and development undertaken and its impact Suggested N/A Work health and safety performance Suggested 35 Productivity gains Suggested N/A Statistics on staffing Mandatory 34 Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs Mandatory 35 Performance pay Mandatory 35 If applicable, mandatory 36 Assets Management Assessment of effectiveness of assets management Page 81 Purchasing Assessment of purchasing against core policies and principles Mandatory 36 The annual report must include a summary statement detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website. Mandatory 37 Mandatory 38 Mandatory 38 Mandatory 41-72 Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011) Mandatory 35 Advertising and Market Research (Section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns Mandatory 38 Ecologically sustainable development and environmental performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999) Mandatory 38 Compliance with the agency’s obligations under the Carer Recognition Act 2010 If applicable, mandatory Grant programmes Mandatory 38 Disability reporting – explicit and transparent reference to Mandatory 37 Consultants Australian National Audit Office Access Clauses Absence of provisions in contracts allowing access by the Auditor-General Exempt contracts Contracts exempted from publication in AusTender Financial statements Financial Statements Other Mandatory Information N/A Page 82 agency-level information available through other reporting mechanisms Information Publication Scheme statement Mandatory 39 Correction of material errors in previous annual report If applicable, mandatory N/A Agency Resource Statements and Resources for Outcomes Mandatory N/A List of Requirements Mandatory 79-83 Page 83 Glossary ACBPS Australian Customs and Border Protection Service ACM Asbestos containing materials agency Asbestos Safety and Eradication Agency AMR Asbestos Management Review 2012 ANAO Australian National Audit Office APS Australian Public Service ARD Asbestos-related disease ASEA Act Asbestos Safety and Eradication Agency Act 2013 CEO Chief Executive Officer DIY Do it yourself renovators/renovations FOI Freedom of Information FMA Act Financial Management and Accountability Act 1997 GBAN Global Ban Asbestos Network GST Goods and Services Tax HWSA Heads of Workplace Safety Authorities Minister Minister for Employment (unless otherwise stated) National Taskforce National Taskforce: Asbestos in Telstra Infrastructure NBN National Broadband Network NSP National Strategic Plan for Asbestos Awareness and Management Plan National Strategic Plan for Asbestos Awareness and Management PS Act Public Service Act 1999 SES Senior Executive Service Page 84 Index A abbreviations and acronyms, 84 Abetz, Senator the Hon Eric, 6, 13 access clauses, ANAO, 37 accommodation, 37–38 accountability and management, 32–38 achievements 2013–14, 6 address and contact details, 2 advertising and market research, 37 agency overview, 6–13 APS Values and Code of Conduct, 35 asbestos-containing material, 11, 22, 31 condition of, 11, 22, 23 grading of, 11 illegal disposal, 33 in utilities sector, 31 see also handling of asbestos; loose-fill (Mr Fluffy) asbestos; removal of asbestos; training package, asbestos handling Asbestos Disease Awareness Organization (ADAO), 13, 20 asbestos exposure register see National Asbestos Exposure Register Asbestos Injuries Compensation Fund, 27 Asbestos Management Review, 8, 9, 11, 14 Asbestos Safety and Eradication Agency Act 2013, 6, 7, 8, 14 Asbestos Safety and Eradication Council, 10, 13, 14–18 Chair’s message, 14 establishment of, 15 meetings, 18 membership, 15–18 role and functions, 15 assets, 44 assets management, 35 Audit Committee, 33 audit, external, 33 Auditor-General reports, 33 AusTender, 36 Australian Customs and Border Protection Service, 30 Australian National Audit Office, 33 awareness initiatives see education and awareness activities B buildings containing asbestos, 23, 25 government and commercial buildings, 11, 22 homes, 14, 22 loose-fill (Mr Fluffy) asbestos, 22 rural and remote regions, 30 Page 85 C case studies Louise ‘Lou’ Williams, 20 Stephen Wickham, 27 utilities sector compliance and monitoring, 31 cash flow, 46 Chief Executive Officer, 13, 32 advice to, 15, 32 biography, 7 review 2013–14, 6 classifications of staff, 33 collective determinations, 34 Comcare, 21, 31 committees, senior management, 32 Commonwealth Ombudsman, 33 communications activities see education and awareness activities community awareness see education and awareness activities compliance and enforcement measures, 23 conferences and forums, 13, 21, 26, 29 staff, 34 consultants, 36 contact details, 2 corporate governance, 32 counselling, staff, 34 D database of asbestos disposal facilities, 24 Department of Education, Employment and Workplace Relations, 8 disability reporting, 38 diseases, asbestos-related, 20, 25, 27 cause, 14 incidence in Australia, 14 National Asbestos Exposure Register, 25 strategic goal, 8, 11 see also mesothelioma disposal facilities database, 6, 24 DIY home renovators awareness activities for, 21, 25, 27 case study, 27 Dust Diseases Tribunal NSW, 27 E ecologically sustainable development, 37–38 education and awareness activities, 8, 11, 22, 30 DIY home renovators, 21, 25, 27 loose-fill (Mr Fluffy) asbestos, 22 strategic goal, 6, 14, 21 survey, 6, 21, 25, 29 utilities sector, 22, 30–31 email address, 2 Page 86 employee assistance program, 34 employees see staff Enterprise Agreement, 34 environmental performance, 37–38 equity, 44 eradication measures, 14 establishment of agency, 8, 13, 14, 15, 19 ethical standards, 35 exempt contracts, 37 expenses, 43 exposure register see National Asbestos Exposure Register external scrutiny, 33 F Facebook, 2 Fary, Geoff (Chair, Asbestos Safety and Eradication Council), 14, 16 female staff, 33 financial performance overview, 39 financial statements, 40–73 forums see conferences, forums and speaking engagements freedom of information, 38 functions see role and functions funding, 13 future directions, 29–30 G gender of staff, 33 GeoScience Australia, 24 Global Ban Asbestos Network (GBAN), 20 glossary, 84 goals see strategic goals grant programmes, 37 guidelines for handling asbestos, 31 H handling of asbestos guidelines for, 31 strategic goal, 14, 22 training package, 22, 30–31 unsafe, 28, 31 see also disposal facilities database; removal of asbestos highlights 2013–14, 6, 19 home renovators see DIY home renovators HWSA Imported Materials Working Group, 23 I identification tools and methods, 23 illegal disposal of asbestos, 24 importation of asbestos, 23, 30 income, 43 Page 87 indigenous communities, 30 induction programs, staff, 35 Information Publication Scheme, 38 insulation materials see loose-fill (Mr Fluffy) asbestos International Asbestos Awareness Conference, 20 international compliance and enforcement, 23, 26, 30 International Conference on Asbestos Awareness and Management, 21, 26, 29 J judicial and tribunal decisions, 33 L landlords, awareness activities for, 21 learning and development, staff, 34 legislative framework, 7 liabilities, 44 LinkedIn, 2 list of requirements, 79–83 local government, collaboration with, 9–11, 19 National Strategic Plan review, 29 locations of staff, 33 loose-fill (Mr Fluffy) asbestos, 22 M male staff, 33 management and accountability, 32–38 management, asbestos see disposal facilities database; education and awareness activities; handling of asbestos; National Strategic Plan for Asbestos Awareness and Management 2013–2018; removal of asbestos; training package, asbestos handling manufacture, 26 market research, 37 mesothelioma, 13, 20, 27 see also diseases, asbestos related Minister for Employment, 6, 7, 10, 13 and review of National Strategic Plan, 11, 29 monitoring activities, 11, 28, 31 Mr Fluffy see loose-fill (Mr Fluffy) asbestos N NABERS rating, 37–38 National Asbestos Awareness Month, 29 National Asbestos Exposure Register, 6, 25 statistics, 77–78 National Asbestos Forum, 13, 21 National Broadband Network, 28, 31 National Disability Strategy 2010–2020, 38 National Strategic Plan for Asbestos Awareness and Management 2013–2018, 9, 19 2013–14 highlights, 19 agency role for, 7 development of, 8, 19 Page 88 purpose of, 8 review, 6, 11–12, 29 strategic goals, 19, 21–26 timeline of key events, 13 National Taskforce: Asbestos Safety in Telstra Infrastructure, 6, 13, 28, 31 number of staff, 33 O occupational health and safety, 34 Office of Asbestos Safety, 6, 8, 19 offices, 37–38 Ombudsman, Commonwealth, 33 online information and resources, 21, 24, 25 outcome and programme structure, 8 outlook, 29–30 overview see agency overview P parliamentary committee reports, 33 performance pay, 34 performance report, 19–28 highlights 2013–14, 19 portfolio, 7, 8 procurement, 35 programme structure, 8 public awareness see education and awareness activities purchasing, 35 R real estate agents, awareness activities for, 21 regional and remote areas, 30 removal of asbestos, 30 2030 target, 11 strategic goal, 24 unsafe, 28, 31 see also DIY home renovators; buildings containing asbestos; utilities sector remuneration auditors, 65 senior executive, 63–64 report on performance, 19–28 research, 6, 7, 25 strategic goal, 25 responsible minister, 6, 7 risk assessment and identification, asbestos, 23 role and functions, 7, 15, 19 S senior executive remuneration, 63–64 senior management committees, 32 social media, 2 Page 89 speaking engagements, 74–76 staff, 33–35 profile, 33 stakeholder engagement, 9–11, 13, 19, 21 National Strategic Plan review, 11, 29 states and territories, collaboration with, 9–11, 13, 19, 29 strategic goals, 21–26 survey, awareness, 6, 21, 25, 29 T telecommunications see utilities sector telephone number, 2 Telstra, 6, 13, 28, 31 Tighe, Peter (Chief Executive Officer), 6, 7, 13 timeline of key events 2013–14, 13 tradespeople, awareness activities for, 21 training package, asbestos handling, 22, 30–31 transport, 8 Twitter, 2 U utilities sector, 6, 13, 31 monitoring, 28, 31 training, 22, 30–31 W website, 2 disposal facilities database, 24 enhancements, 21 information and resources on, 9, 21, 25 Wickham, Stephen, 27 Williams, Louise (Lou), 13, 20 work health and safety, 34 workers’ compensation, 34 workforce see staff WorkSafe Tasmania, 23 Page 90