Department of Premier and Cabinet Annual Report 2021-22

1. 1 About this report

   The Department of Premier and Cabinet (‘the department’) is a government department of the State of Victoria established pursuant to an order made by the Premier under the Administrative Arrangements Act 1983. It is an administrative agency acting on behalf of the Crown.

   The principal address of the department is:

   Department of Premier and Cabinet
   1 Treasury Place
   Melbourne VIC 3002

   A description of the department’s operations and its principal activities is included in the Report of operations, which does not form part of these financial statements.

   Basis of preparation

   These financial statements are in Australian dollars and the historical cost convention is used unless a different measurement basis is specifically disclosed in the note associated with the item measured on a different basis.

   The accrual basis of accounting has been applied in preparing these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

   Judgements, estimates and assumptions are required to be made about financial information being presented. The significant judgements made in preparing these financial statements are disclosed in the notes where amounts affected by those judgements are disclosed. The significant judgement applied to value property, plant and equipment is disclosed in Note 5.4.1 of the financial statements. Estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

   Revisions to accounting estimates are recognised in the period in which those estimates are revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in applying Australian Accounting Standards (AASs) that have significant effects on the financial statements and estimates are disclosed in the notes to which they relate.

   These financial statements cover the department as an individual reporting entity and comprise all the controlled activities of the department, including the grants provided to the department’s portfolio entities. The results of the portfolio entities are not consolidated in the department’s financial statements because they prepare their own financial reports. The department’s portfolio results (including the portfolio entities) are included in Appendix 1, Budget portfolio outcomes of this annual report, which does not form part of the financial statements and is not subject to audit by the Victorian Auditor-General’s Office.

   The following entities have been consolidated into the department’s financial statements pursuant to a determination made by the Assistant Treasurer under section 53(1)(b) of the Financial Management Act 1994. These entities are reported in aggregate and not controlled by the department.

   The Victorian Independent Remuneration Tribunal was established on 20 March 2019 under the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019.

   Wage Inspectorate Victoria was established on 1 July 2021 under the Wage Theft Act 2020.

   The administered activities of the department and for the above entities are separately disclosed in Note 8.8 Administered items. The department remains accountable for administered items but does not recognise these in its controlled financial statements.

   All amounts in the financial statements have been rounded to the nearest $1,000 unless otherwise stated.

   Compliance information

   These general-purpose financial statements have been prepared on a going concern basis in accordance with the Financial Management Act and applicable AASs including interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 1049 Whole of Government and General Government Sector Financial Reporting.

   Accounting policies selected and applied in these financial statements ensure the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring the substance of the underlying transactions or other events is reported.

   Other accounting policies

   Significant accounting policies that summarise recognition and measurement bases used and relevant to an understanding of these financial statements, are provided throughout the notes to the financial statements.

2. 2 Funding of our services

   Introduction

   The role of the department is to work for the people of Victoria by leading the public service and supporting the government of the day to achieve its strategic objectives.

   To deliver on these strategic objectives, the department receives income predominantly in the form of parliamentary appropriations.

   Structure of this section

   2.1 Income that funds the delivery of services

   2.2 Summary of compliance with annual parliamentary and special appropriations

   Key accounting recognition and measurement criteria

   The revenue items that have specific recognition criteria are further described in Note 2.1. Where applicable, amounts disclosed as income are net of returns, allowances, duties and taxes. Amounts of income where the department does not have control are separately disclosed as administered income (see Note 8.8 Administered items).

   2.1 Income that funds the delivery of services

   	Notes	2022 $’000	2021 $’000
   Output appropriations	2.2.1	599,827	531,939
   Special appropriations	2.2.2	50,674	75,474
   Total appropriations		650,501	607,413
   General purpose grants		12,985	12,772
   Specific purpose grants for on-passing		17,952	17,767
   Other specific purpose grants		–	193
   Total grants		30,937	30,732
   Other income		13,430	4,659
   Total income from transactions		694,868	642,804

   Appropriations

   Once annual parliamentary appropriations are approved by the Treasurer, they become controlled by the department and are recognised as income when applied for the purposes defined under the relevant legislation governing the use of the appropriation.

   The department receives the following forms of appropriation:

   • Output appropriations: Income for the outputs (i.e. services) the department provides to the government is recognised when those outputs have been delivered and the relevant minister has certified delivery of those outputs in accordance with specified performance criteria.
   • Special appropriations: Income related to special appropriations are recognised when the expenditure relating to the amounts appropriated are paid by the department.

   Grants

   The department has determined that the grant income included in the table above is earned as per AASB 1058 Income of Not-for-Profit Entities under arrangements that are either not enforceable or without any sufficiently specific performance obligations. This is recognised when the department has an unconditional right to receive cash, which usually coincides with receipt of cash.

   Income from grants received from other government entities for developing and constructing the Service Victoria digital services are recognised progressively as and when those assets are constructed. This aligns with the department’s obligation to construct the asset. The progressive percentage costs incurred is used to recognise income because this closely reflects the income earned by the department in constructing the asset.

   Income received from the Commonwealth Government as specific purpose grants for on-passing to other entities is recognised simultaneously as income and expenditure because the funds are immediately on-passed to the relevant recipient entities on receipt.

   Other income

   Other income arises from the following transactions and other miscellaneous income and recovery of administration costs.

   • Trust fund income: Trust fund income mostly includes fees collected from the Aboriginal Cultural Heritage Register and income from other external parties.
   • Sponsorship income: Sponsorship income includes receipts from external parties for the Australia Day Fund and Cultural Diversity Week.
   • Resources received free of charge: Resources received free of charge or for nominal consideration are recognised at fair value when control is obtained over them, irrespective of whether these contributions are subject to restrictions or conditions over their use.

   The department’s resources received free of charge are usually public records transferred to the Public Record Office Victoria (PROV). The department received $11.4 million of public records as resources received free of charge during 2021–22. There were no public records received by PROV in the previous two financial years due to delays in the release of their new record management system which was impacted by COVID-19.

   2.2 Summary of compliance with annual parliamentary and special appropriations

   2.2.1 Summary of annual appropriations

   The following table discloses the details of the various annual parliamentary appropriations the department received for the financial year.

   In accordance with accrual output-based management procedures, ‘provision of outputs’ and ‘additions to net assets’ are disclosed as ‘controlled’ activities of the department. Administered transactions are those undertaken on behalf of the State over which the department has no control or discretion. These transactions are separately disclosed in Note 8.8 Administered items.

   Summary of annual appropriations

   docx 68.73 KB

   2.2.2 Summary of special appropriations

   The following table discloses the details of compliance with special appropriations.

   Authority	Purpose	Appropriations applied
   		2022 $’000	2021 $’000
   Controlled
   Constitution Act, No. 8750 of 1975 — Executive Council	Salary for the Clerk of the Executive Council	50	50
   Constitution Act, No. 8750 of 1975 — Governor’s salary	Salary payments to the Governor of Victoria	485	482
   Electoral Act, No. 23 of 2002	Operating costs incurred by the Victorian Electoral Commission	50,139	74,942
   Total controlled		50,674	75,474
   Administered
   Electoral Act, No. 23 of 2002	Electoral entitlements	12,551	11,955
   Inquiries Act, No. 67 of 2014, section 58	Expenses and financial obligations of the Board of Inquiry	–	5,447
   Total administered		12,551	17,403
   Capital
   Electoral Act, No. 23 of 2002	Capital costs incurred by the Victorian Electoral Commission	5,710	5,007
   Total capital		5,710	5,007

3. 3 Cost of delivering our services

   Introduction

   This section provides details of the expenses the department incurred in delivering its services.

   The funds that enable the provision of services are disclosed in Note 2. In this section the costs associated with provision of services are recorded.

   Structure of this section

   3.1 Expenses incurred in the delivery of services

   Key accounting recognition and measurement criteria

   Expenses are ordinarily recognised in the comprehensive operating statement in the reporting period in which they are incurred, and the expense is paid or is payable.

   Certain items such as employee expenses, grant expenses and the capital asset charge that have specific recognition criteria are further described in Note 3.1.

   3.1 Expenses incurred in the delivery of services

   	2022 $’000	2021 $’000
   Specific purpose grants for on-passing(i)	138,056	133,232
   Grant payments for other specific purposes(ii)	87,895	67,891
   Grant expenses	225,951	201,123
   Salaries and wages, annual leave and long service leave	237,367	220,450
   Defined contribution superannuation expenses	19,774	17,977
   Defined benefit superannuation expense	254	313
   Employee expenses	257,395	238,740
   Capital asset charge(iii)	–	11,050
   Purchases of services and supplies	120,109	102,687
   Information technology expenses	28,461	18,026
   Marketing and promotion	12,194	30,380
   Short-term lease expenses and low-value assets	216	34
   Office accommodation expenses	6,560	6,819
   Other operating expenses	167,540	157,946

   Notes:

   (i) Payments to Victorian Government entities and other non-Victorian Government entities.

   (ii) Payments to Victorian public non-financial corporations and other private businesses and individuals.

   (iii) Capital asset charge was discontinued in 2021–22, with a corresponding reduction in appropriation revenue provided to the department to cover the expense.

   Grant expenses

   Grant expenses are contributions of the department’s resources to other parties for specific or general purposes where there is no expectation that the amount will be repaid in equal value (either by goods or services). Grant expenses also include grants paid to entities within the department’s portfolio. These grants are reported in specific purpose grants for on-passing.

   Grants can either be operating or capital in nature. Grants can be paid as general purpose grants, which refer to grants that are not subject to conditions for their use. Alternatively, they may be paid as specific purpose grants, which are paid for a particular purpose and have conditions attached to their use.

   Grant expenses are recognised in the reporting period in which they are paid or payable. Grants can take the form of money, assets, goods or services.

   Details of the department’s grants payments in 2021–22 can be viewed at www.dpc.vic.gov.au. This grants payments information on the department’s internet page is not subject to audit by the Victorian Auditor-General’s Office.

   Employee expenses

   Employee expenses comprise all costs related to employment including wages and salaries, superannuation, fringe benefits tax, leave entitlements, redundancy payments, WorkCover premiums and other on-costs.

   The amount recognised in the comprehensive operating statement in relation to superannuation includes employer contributions for members of both defined benefit and defined contribution superannuation plans that are paid or payable during the reporting period.

   Capital asset charge

   A capital asset charge (CAC) was a charge levied on the budgeted written-down value of controlled non-current physical assets in the department’s balance sheet. In previous years, CAC had been used to demonstrate the opportunity cost of using government assets.

   It should be noted that the capital asset charge policy was discontinued in 2021–22 and also reflected in the 2021–22 State Budget. While the inclusion of CAC was previously reflected in output cost, it did not reflect a net distribution of funds from the department because the department was funded from the budget for its CAC expense, and then immediately paid the same amount back into the Consolidated Fund.

   Other operating expenses

   Other operating expenses generally represent the day-to-day running costs incurred in normal operations and are recognised as expenses in the reporting period in which they are incurred.

   The following lease payments are recognised on a straight-line basis:

   • short-term leases — leases with a term less than 12 months
   • low-value leases — leases where the underlying asset’s fair value (when new, regardless of the age of the asset being leased) is no more than $10,000.

4. 4 Output information

   Introduction

   The department is predominantly funded by parliamentary appropriations for providing outputs. This section provides a description of the departmental outputs delivered during the financial year and the costs incurred in delivering those outputs.

   Structure of this section

   4.1 Departmental outputs

   4.2 Changes in departmental outputs

   4.3 Departmental outputs — controlled income and controlled expenses

   4.1 Departmental outputs

   A description of the departmental outputs during the financial year ended 30 June 2022 and their objectives are summarised below.

   Strong policy outcomes

   The objective of ‘Strong policy outcomes’ is to pursue policy and service delivery excellence and reform. It leads the public sector response to significant state issues, policy challenges and projects. It supports the effective administration of government and includes: Government-wide leadership, reform and implementation; Strategic advice and government support; Digital government and communications; Office of the Victorian Government Architect; and Industrial relations.

   First Peoples in Victoria are strong and self-determining

   The objective of ‘First Peoples in Victoria are strong and self-determining’ is to improve outcomes and services for First Peoples through prioritising actions to enable self-determination, including advancing treaty, protecting and promoting cultural rights and conducting a truth-telling process. It addresses trauma, supports healing and addresses racism established through colonisation. It provides culturally safe systems and services and transfers power and resources to communities. It includes Aboriginal policy, strengthening Aboriginal cultural heritage and communities.

   Professional public administration

   The objective of ‘Professional public administration’ is to foster and promote a high performing public service. It ensures effective whole of government performance and outcomes. It protects the values of good public governance, integrity and accountability in support of public trust. It includes: Advice and support to the Governor; Chief Parliamentary Counsel services; Management of Victoria’s public records; Public administration advice and support; and State electoral roll and electoral events.

   4.2 Changes in departmental outputs

   There was a change in the name of ‘Engaged citizens’ to ‘First Peoples in Victoria are strong and self-determining’ during the year. This output group was renamed due to machinery of government changes effective 1 February 2021 that transferred to the Department of Families, Fairness and Housing: Equality policy and programs; Multicultural affairs policy and programs; Support for veterans in Victoria; Women’s policy; and Youth.

   4.3 Departmental outputs — controlled income and controlled expenses

   Departmental outputs — controlled income and controlled expenses

   docx 70.05 KB

5. 5 Key assets to support output delivery

   Introduction

   The department uses land, buildings, property, plant and equipment in fulfilling its objectives and conducting its output activities. These assets represent the key resources that the department uses for delivering output activities discussed in section 4 of this report.

   Structure of this section

   5.1 Property, plant and equipment

   5.2 Intangible assets

   5.3 Depreciation and amortisation

   5.4 Fair value determination

   5.1 Property, plant and equipment

   Key accounting recognition and measurement criteria

   Items of property, plant and equipment are measured initially at cost. Where an asset is acquired for nominal cost, the cost is its fair value at the date of acquisition. Assets transferred from/to other departments as part of machinery of government changes are transferred at their carrying amount.

   The cost of leasehold improvements are capitalised and depreciated over the shorter of the remaining lease term or estimated useful life.

   The initial cost of leased motor vehicles is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments determined at the inception of the lease.

   Leases recognised as right-of-use assets are initially measured at cost. This represents the present value of expected future payments resulting from the lease contracts.

   In reporting periods subsequent to initial recognition, property, plant and equipment are measured at fair value less accumulated depreciation and impairment. Fair value is determined based on the asset’s highest and best use (considering legal or physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset) and is summarised by asset category in the table at 5.1.

   Total property, plant and equipment

   	Gross carrying amount		Accumulated depreciation		Net carrying amount
   	2022 $’000	2021 $’000	2022 $’000	2021 $’000	2022 $’000	2021 $’000
   Land(i)	246,370	224,532	–	–	246,370	224,532
   Buildings (including heritage buildings)(i)	105,957	117,156	(1,209)	(18,555)	104,748	98,601
   Leasehold improvements	35,528	34,216	(13,321)	(9,127)	22,207	25,089
   Building construction in progress	4,281	7,406	–	–	4,281	7,406
   Office equipment and computer equipment	18,165	16,638	(16,105)	(15,436)	2,060	1,202
   Plant and equipment works in progress	59	1,478	–	–	59	1,478
   Leased motor vehicles	4,889	4,229	(1,439)	(1,544)	3,450	2,685
   Public records(ii)	503,466	311,591	–	–	503,466	311,591
   Other heritage assets(ii)	8,579	7,059	–	(284)	8,579	6,775
   Net carrying amount	927,294	724,306	(32,074)	(44,946)	895,220	679,359

   Notes:

   (i) Land and buildings at both Government House and PROV were valued at 30 June 2022 by the Valuer-General of Victoria. The department does not hold any other land and buildings.

   (ii) Public records held by PROV and other heritage assets were valued at 30 June 2022 by the Valuer-General of Victoria.

   Land and buildings (including heritage buildings)

   Land and buildings are classified as specialised land and specialised buildings due to restrictions on the use of these assets. They are valued at fair value. For land valuation purposes, the market approach is used, although this is adjusted for any community service obligations to reflect the specialised nature of the land being valued. Buildings are valued using the current replacement cost method.

   For more details on valuation techniques, inputs and processes, refer to Note 5.4.

   Leasehold improvements

   Leasehold improvements are valued using the historical cost method. Historical cost is used as a close proxy to the current replacement cost due to the short useful lives of these assets.

   Office equipment and computer equipment

   Office equipment and computer equipment are valued using the historical cost method. Historical cost is used as a close proxy to the current replacement cost due to its short useful life.

   Motor vehicles

   Vehicles are valued using the current replacement cost method. The department acquires new vehicles and at times disposes of them before the end of their economic life. The process of acquisition use and disposal in the market is managed by experienced fleet managers in the department who set relevant depreciation rates during the life of the asset to reflect the use of the vehicles.

   Public records

   These assets are valued at fair value. The valuation of these assets is based on a market approach. This involves using market prices and other relevant information generated by market transactions from comparable or similar assets.

   For more details on valuation techniques, inputs and processes, refer to Note 5.4.

   Other heritage assets

   These assets are reported at fair value using the market approach. The market approach compares the value of the subject assets with comparable assets that have sold in the marketplace.

   For more details on valuation techniques, inputs, and processes, refer to Note 5.4.

   Right-of-use assets acquired by lessees

   The department recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for:

   • any lease payments made at or before the commencement date less any lease incentive received
   • any initial direct costs incurred
   • an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located.

   The department depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The right-of-use assets are also subject to revaluation.

   In addition, the right-of-use assets are periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liabilities.

   Refer to the table at 5.1.1(a) for reconciliation of movements in carrying amounts of the department’s right-of-use assets.

   5.1.1 Reconciliation of movements in carrying amount of property, plant and equipment

   Reconciliation of movements in carrying amount of property, plant and equipment

   docx 69.6 KB

   Note:

   (i) This includes right-of-use assets relating to accommodation leases of the department (refer to Note 5.1.1(a) for further details).

   5.1.1(a) Reconciliation of movement in carrying amount of right-of-use assets: buildings and vehicles

   The following table is a subset of buildings and leased motor vehicles included in Note 5.1.1 for right-of-use assets.

   	Buildings $’000	Leased motor vehicles $’000
   Opening balance — 1 July 2021	733	2,685
   Additions	3,544	2,035
   Disposals	–	(413)
   Other administrative arrangements	–	–
   Depreciation	(703)	(857)
   Closing balance — 30 June 2022	3,574	3,450
   Opening balance — 1 July 2020	1,059	3,474
   Additions	–	951
   Disposals	–	(494)
   Other administrative arrangements	–	(303)
   Depreciation	(326)	(943)
   Closing balance — 30 June 2021	733	2,685

   5.2 Intangible assets

   Key accounting recognition and measurement criteria

   Purchased intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Depreciation and amortisation begin when the assets are available for use — that is, when they are in the location and condition necessary for them to be capable of operating in the manner intended by management.

   Internally generated intangible assets arising from development (or from the development phase of an internal project) are recognised if, and only if, all the following are demonstrated:

   • there is an intention to complete the intangible asset for use or sale
   • there is an ability to use or sell the intangible asset
   • the intangible asset will generate probable future economic benefits
   • there is availability of adequate technical, financial, and other resources to complete the development and to use or sell the intangible asset
   • there is an ability to measure reliably the expenditure attributable to the intangible asset during its development.

   Internally generated intangible assets with finite useful lives, are amortised on a straight-line basis over their useful lives.

   Intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested for impairment annually or whenever there is an indication that the asset may be impaired.

   	2022 $’000	2021 $’000
   Opening balance of gross carrying amount	68,954	62,689
   Additions	14,110	6,265
   Closing balance of gross carrying amount	83,064	68,954
   Opening balance of accumulated amortisation	(45,625)	(32,937)
   Impairment losses charged to net result	(516)	(1,061)
   Amortisation of intangible assets charged	(12,774)	(11,627)
   Closing balance of accumulated amortisation	(58,915)	(45,625)
   Intangibles under development	20,092	13,355
   Net book value at end of financial year	44,241	36,684

   5.3 Depreciation and amortisation

   	2022 $’000	2021 $’000
   Buildings (including heritage buildings)	5,483	4,872
   Leasehold improvements	4,194	5,229
   Office equipment and computer equipment	688	478
   Leased motor vehicles	857	943
   Other heritage assets	71	71
   Intangible assets	12,774	11,627
   Total depreciation and amortisation	24,067	23,220

   All buildings, office and computer equipment and other non-financial physical assets that have finite useful lives are depreciated and intangible assets are amortised over their useful lives.

   Depreciation and amortisation are generally calculated on a straight-line basis, at rates that allocate the asset’s value less any estimated residual value, to its useful life. Depreciation and amortisation begin when the asset is first available for use in the location and condition necessary for it to be capable of operating in the manner intended by the department.

   Useful life of assets

   Typical current and prior year estimated useful lives for the different asset classes are included in the table below.

   	Useful life (years)
   Buildings	5–200
   Leasehold improvements	5–20
   Office equipment and computer equipment	3–20
   Motor vehicles	5
   Leased motor vehicles	2–3
   Public records(i)	Indefinite
   Other heritage assets	99–100
   Intangible assets	3–10

   Note:

   (i) Public records are assessed to have an indefinite useful life since the records are preserved in near perfect conditions to ensure they last for an indefinite period.

   Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term. Where the department obtains ownership of the underlying leased asset or if the cost of the right-of-use asset reflects that the entity will exercise a purchase option, the entity depreciates the right-of-use asset over its useful life.

   Impairment

   Non-financial assets — including items of property, plant and equipment or intangible assets — are tested for impairment whenever there is an indication that the asset may be impaired.

   The assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is considered to be an impairment and is written off as an ‘other economic flow’ in the Comprehensive operating statement, except to the extent that it can be offset against an asset revaluation surplus applicable to that class of asset.

   The recoverable amount for most assets is measured at the higher of current replacement cost and fair value less costs to sell.

   Assets subject to restriction on use

   Heritage assets held by the department generally cannot be modified or disposed of unless ministerial approval is obtained.

   5.4 Fair value determination

   The department determines the policies and procedures for fair value measurements such as property, plant and equipment in accordance with the requirements of AASB 13 Fair Value Measurement and the relevant Financial Reporting Directions issued by the Department of Treasury and Finance.

   In determining fair values, a number of inputs are used. To increase consistency and comparability in the financial statements, these inputs are categorised into three levels, also known as the fair value hierarchy:

   • level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities
   • level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
   • level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

   Fair value measurement hierarchy

   	Carrying amount $’000	Fair value measurement at end of reporting period using:
   		Level 1 $’000	Level 2 $’000	Level 3 $’000
   2022
   Land at fair value	246,370	–	–	246,370
   Buildings at fair value	104,748	–	–	104,748
   Public records at fair value	503,466	–	49,914	453,552
   Other heritage assets at fair value	8,579	–	8,579	–
   Leasehold improvements	22,207	–	–	22,207
   Office equipment and computer equipment	2,060	–	–	2,060
   Leased motor vehicles	3,450	–	–	3,450
   Total	890,881	–	58,493	832,387
   2021
   Land at fair value	224,532	–	–	224,532
   Buildings at fair value	98,601	–	–	98,601
   Public records at fair value	311,591	–	–	311,591
   Other heritage assets at fair value	6,775	–	6,775	–
   Leasehold improvements	25,089	–	–	25,089
   Office equipment and computer equipment	1,202	–	–	1,202
   Leased motor vehicles	2,685	–	–	2,685
   Total	670,476	–	6,775	663,701

   The department determines whether transfers have occurred between levels in the hierarchy by reassessing the categorisation at the end of each reporting period (based on the lowest level input that is significant to the fair value measurement as a whole). There were changes between levels for certain categories of public records from the prior year. During the current financial year, the public records were re-categorised into homogeneous groupings, with some categories measured at level 2 based on prices and other relevant information generated by market transactions involving identical or comparable (or similar) assets. This included sales evidence from auction records, dealer price guides and online databases. Refer to the ‘Public records’ section below, which contains a classification of the fair value hierarchy for each category.

   The Valuer‑General Victoria (VGV) is the department’s independent valuation agency. The department engages VGV to carry out professional valuations on a five-year cycle. In the interim years the department, in conjunction with VGV, monitors changes in the fair value of each class of asset through relevant data sources to determine whether a revaluation is required. If a valuation is required, then the department will either carry out a managerial valuation or engage with VGV to value those asset classes.

   VGV performed an independent valuation of land, buildings, public records and other heritage assets during the reporting period.

   In 2020–21, where a full revaluation was not required, the department conducted a fair value assessment using the regular indices for land and buildings from VGV. Following the assessment and as per FRD103, a managerial valuation adjustment was done due to the movement in fair value being greater than 10%.

   The reconciliation of all movements of fair value assets is shown in the table at 5.1.1.

   5.4.1 Valuation techniques, inputs and processes

   Land and buildings (including heritage buildings)

   The market approach is used to value land, although this is adjusted for any community service obligations to reflect the use of the land being valued.

   The community service obligations adjustment reflects the valuer’s assessment of the impact of restrictions associated with an asset to the extent that it is equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement. Relevant valuation factors include what is physically possible, legally permissible and financially feasible. Such adjustments of community service obligations are considered significant unobservable inputs, and valuation of specialised land is classified at level 3 in the fair value measurement hierarchy.

   For the department’s buildings, the current replacement cost method is used, adjusting for useful life and associated depreciation. Such adjustments are considered significant unobservable inputs and buildings are classified at level 3 in the fair value measurement hierarchy.

   VGV performed an independent valuation of land and buildings. The effective date of the valuation is 30 June 2022. The value of the undeveloped portion of land was discounted due to the identification of contaminated soil. The discount applied reflects the diminished utility of the undeveloped portion of land (refer to the table at 5.4.2). The remaining portion of that parcel of land has been developed, and for valuation purposes, is assumed not to be contaminated, and therefore discounting has not been applied. A contingent liability is recognised for the contaminated land (refer to Note 8.7).

   Significant judgement – valuation uncertainty

   The fair value of land and buildings are reported on the basis of significant valuation uncertainty caused by the COVID-19 pandemic. This uncertainty may have a significant risk of resulting in a material adjustment to the carrying amount of land and buildings within the next financial year.

   At this stage, there is no substantial evidence of significant declines in the market values of land and buildings. It is not expected that this will significantly change. Further, much of the department’s land has restricted zoning and valuation methodologies to reflect the restricted use.

   Public records

   Public records consist of physical records in a variety of formats. The records described below are largely homogeneous categories based on record type, format or other criteria. They have been classified at either level 2 or level 3 of the fair value measurement hierarchy.

   • File — compilation of various records such as correspondences and completed forms (level 3)
   • Document — contains one type of record such as a transcript or petition (level 3)
   • Map, Plan and Drawing — various sizes and materials that may be flat in structure or rolled in tubes (level 2)
   • Volume — records that are bound together such as books (level 3)
   • Photograph or Image — this can be in various formats including prints, negatives or slides (level 2)
   • Card — includes various types such as index cards, file movement cards or record cards (level 2)
   • Moving Image — motion picture film of varying formats (level 2)
   • Sound Recording — audio archives (level 2)
   • Object — various forms of display items that can be used at exhibitions (level 2)
   • Data — electronic records stored on physical media (level 2)
   • Icons — collections with significant historical and cultural value (level 2).

   VGV performed an independent valuation of public records during the reporting period. The public records were valued from physical inspection of items, either in full or through random sampling. The Object and Icons categories were valued individually, and the remaining categories were valued according to statistical sampling methods.

   The valuation of public records adopted the market approach. This involved using market prices and other relevant information generated by market transactions of comparable or similar assets. Comparable sales are identified using subscription databases as well as auction catalogues and other specialised libraries. Since these are government records that are not frequently sold, sales evidence is based on values of similar items adjusted for the unique characteristics of the items being valued.

   As public records consist of a range of categories, the valuation technique involved the direct comparison approach; some items also contained unobservable inputs to the fair value measurement. For some categories, adjustments were made to the market value references to account for the unique characteristics of the items being valued adjusting for historical significance or other factors that impact on the item being valued. As those adjustments could not be observed and are based on professional judgements and significant to the fair value measurement, those records have been categorised into level 3 of the fair value hierarchy. Other records that do not contain significant unobservable inputs have been categorised into level 2 of the fair value hierarchy.

   The other category of records are the digital records. The digital records are either digitised from a previous physical copy or ’born digital’ where no physical copy exists. Digital records are currently not recognised and ascribed a value due to insufficient market data and cost not being able to be determined to appropriately support the valuation attributed.

   Other heritage assets

   Other heritage assets include artwork. For artwork, valuation of the assets is determined by a comparison with similar examples of the artist’s work in existence throughout Australia and research on recent prices paid for similar examples offered at auction or through art galleries.

   These assets have been assessed with reference to similar assets and do not contain significant unobservable inputs. They are classified at level 2 in the fair value measurement hierarchy.

   5.4.2 Description of significant unobservable inputs to level 3 valuations

   Description of significant unobservable inputs to level 3 valuations

   docx 67.53 KB

   Note:

   (i) A value of $3,500 per square metre (m²) was used for the developed (uncontaminated) portion of the subject site (comprising 23,000m²) and $350 per square metre (m²) was used for the contaminated area (comprising 9,730m²).

6. 6 Other assets and liabilities

   Introduction

   This section sets out the other assets and liabilities that arose from the department’s operations and help to contribute to the successful delivery of output operations.

   Structure of this section

   6.1 Receivables

   6.2 Payables

   6.3 Other non-financial assets

   6.4 Employee benefits

   6.5 Other provisions

   Key accounting recognition and measurement criteria

   Contractual receivables are classified as financial instruments and categorised as ‘financial assets at amortised cost’. They are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment.

   The department currently holds financial instruments where the carrying amounts approximate to fair value due to their short-term nature or due to an expectation that they will be paid in full by the end of the 2022–23 reporting period.

   Statutory receivables do not arise from contracts and are recognised and measured similarly to contractual receivables (except for impairment) but are not classified as financial instruments. Amounts recognised as receivable from the Victorian Government represent funding for all commitments incurred and are drawn from the Consolidated Fund when the commitments fall due.

   Contractual payables are classified as financial instruments and measured at amortised cost. Accounts payable represent liabilities for goods and services provided to the department in the reporting period that are unpaid at the end of the reporting period.

   Statutory payables are recognised and measured similarly to contractual payables but are not classified as financial instruments nor included in the category of financial liabilities at amortised cost because they do not arise from contracts.

   Deferred capital grant revenues are recognised progressively as the underlying assets are constructed and the department satisfies its obligations under the asset construction contracts. The percentage of contract completion method is used to recognise project funding as income. Any project funding not recognised as revenue at the end of the reporting period is recognised as a liability. There were no such liabilities at the end of this reporting period.

   6.1 Receivables

   	2022 $’000	2021 $’000
   Contractual
   Receivables	60,703	81,266
   Statutory
   Amounts owing from the Victorian Government(i)	50,215	16,117
   GST recoverable	7,186	9,370
   Total receivables	118,104	106,753
   Represented by:
   Current receivables	115,653	100,631
   Non-current receivables	2,451	6,122

   Note:

   (i) Represents the balance of available appropriations relating to providing outputs as well as funds available for capital purchases, for which payments had not been disbursed at the balance date, and accordingly had not been drawn from the Consolidated Fund.

   6.1.1 Ageing analysis of contractual receivables

   The average credit period for sales of goods/services and for other receivables is 30 days. There are no material financial assets that are individually determined to be impaired. Currently the department does not hold any collateral as security nor credit enhancements relating to any of its financial assets.

   6.2 Payables

   	2022 $’000	2021 $’000
   Contractual
   Supplies and services	31,348	40,641
   Statutory
   Amounts payable to other government agencies	5,688	3,598
   Total payables	37,036	44,239
   Represented by:
   Current payables	37,036	44,239

   6.3 Other non-financial assets

   	2022 $’000	2021 $’000
   Prepayments	5,334	5,342
   Other	403	194
   Total other non-financial assets	5,737	5,536

   Prepayments represent payments in advance of receiving goods or services made in one accounting period covering a term extending beyond that period. Prepayments at the end of the financial year include accommodation, software and information technology payments paid in advance.

   6.4 Employee benefits

   Key accounting recognition and measurement criteria

   Provision is made for benefits payable to employees in respect of annual leave and long service leave for services rendered up to the reporting date.

   The annual leave liability is classified as a current liability and measured at the undiscounted amount expected to be paid because the department does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.

   No provision has been made for sick leave because all sick leave is non-vesting and it is not considered probable that the average sick leave taken in the future will be greater than the benefits accrued in the future periods. Because sick leave is non-vesting, an expense is recognised in the Comprehensive operating statement when sick leave is taken.

   Unconditional long service leave is disclosed as a current liability, even where the department does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

   The components of the current long service leave liability are measured at either:

   • undiscounted value — if the department expects to wholly settle within 12 months
   • present value — if the department does not expect to wholly settle within 12 months.

   Conditional long service leave is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current long service leave is measured at present value.

   Any gain or loss following revaluation of the present value of the non-current long service leave liability is recognised in the comprehensive operating statement as a gain or loss from continuing operations, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an ‘other economic flow’ in the net result.

   Employment on-costs such as payroll tax, workers compensation and superannuation are disclosed separately as a component of the provision for employee benefits.

   	2022 $’000	2021 $’000
   Current provisions
   Annual leave	24,526	20,531
   Long service leave	20,525	14,155
   Provision for on-costs	9,491	5,557
   Total current provisions for employee benefits	54,542	40,243
   Non-current provisions
   Long service leave	1,629	5,285
   Provision for on-costs	822	837
   Total non-current provisions for employee benefits	2,451	6,122
   Total provisions for employee benefits	56,993	46,365

   The department does not recognise any superannuation fund defined benefit liabilities because it has no legal or constructive obligation to pay such future benefits to its employees. Instead, the Department of Treasury and Finance discloses in its annual financial statements the net defined benefit cost related to the members of these plans as an administered liability (on behalf of the State of Victoria as the sponsoring employer).

   6.5 Other provisions

   	2022 $’000	2021 $’000
   Make-good provision	2,437	1,591
   Other	3,010	–
   Total other provisions	5,447	1,591

   Other provisions are recognised when the department has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, considering the risks and uncertainties surrounding the obligation.

   The make-good provision is recognised in accordance with the lease agreement over the accommodation facilities. The department must remove any leasehold improvements from the accommodation facilities and restore the premises to its original condition at the end of the lease term.

   Other provisions relate to the best estimate of the consideration required to settle the obligation relating to the announcement of the early retirement scheme. The scheme was voluntary and there were a limited number of early retirement packages available for eligible employees.

7. 7 Our financing activities

   Introduction

   This section provides information on the sources of financing activities of the department during the financial year.

   This section also includes disclosures of balances that are classified as financial instruments (including cash balances) and additional information on managing exposures to financial risks.

   Structure of this section

   7.1 Borrowings

   7.2 Cash balances and cash flow information

   7.3 Financial instruments and financial risk management

   7.4 Commitments for expenditure

   7.5 Trust account balances

   7.1 Borrowings

   Key accounting recognition and measurement criteria

   Borrowings are classified as financial instruments.

   All interest-bearing borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. The measurement basis subsequent to initial recognition is at amortised cost. The classification depends on the nature and purpose of the interest-bearing liabilities. The department determines the classification of its interest-bearing liabilities at initial recognition.

   Leases recognised under the AASB 16 lease accounting standard are initially measured at the present value of the lease payments unpaid at the commencement date, discounted using an interest rate implicit in the lease if that rate is readily determinable or at the department’s incremental borrowing rate.

   Interest expenses include costs incurred in connection with the borrowing of funds or the notional interest cost in leases recognised under the AASB 16 lease accounting standard. Interest expense is recognised in the period in which it is incurred.

   	2022 $’000	2021 $’000
   Current borrowings
   Lease liabilities	3,292	1,933
   Total current borrowings	3,292	1,933
   Non-current borrowings
   Lease liabilities	4,090	1,575
   Total non-current borrowings	4,090	1,575
   Total borrowings	7,382	3,508

   The department leases various properties and motor vehicles. The lease contracts are typically made for fixed periods of between one and 10 years with an option to renew the lease.

   7.1 (a) Right-of-use assets resulting from leases

   Right-of-use assets are presented in Note 5.1.1(a).

   7.1 (b) Amounts recognised in the Comprehensive operating statement relating to leases

   The following amounts are recognised in the Comprehensive operating statement relating to leases.

   	2022 $’000	2021 $’000
   Interest expense on lease liabilities	174	95
   Expenses relating to short term leases and leases of low-value assets	216	34
   Total amount recognised in the comprehensive operating statement	390	129

   7.1 (c) Amounts recognised in the cash flow statement relating to leases

   The following amounts are recognised in the ‘cash flow statement’ relating to leases.

   	2022 $’000	2021 $’000
   Total cash outflow for leases	(2,945)	(2,085)

   Leases

   For any new contracts entered into, the department considers whether contracts contain leases. A lease is defined as a contract that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. To apply this definition the department assesses whether the contract meets all three of the following key evaluations:

   • whether the contract contains an identified asset that is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the department and for which the supplier does not have substantive substitution rights
   • whether the department has the right to benefit substantially from all the economic benefits from using the asset throughout the contract period, and has the right to direct the use of the asset throughout the contract period
   • whether the department has the right to make decisions in respect of ‘how and for what purpose’ the asset is used throughout the contract period.

   Separation of lease and non-lease components

   At inception or on reassessment of a contract that contains a lease component, the lessee is required to account separately for non-lease components within the contract and exclude these amounts when determining the lease liability and right-of-use asset amount.

   Lease payments included in the measurement of the lease liability comprise:

   • fixed payments (including in-substance fixed payments) less any lease incentive receivable
   • variable payments based on an index or rate, initially measured using the index or rate on the commencement date
   • amounts expected to be payable under a residual value guarantee
   • payments arising from purchase and termination options reasonably certain to be exercised.

   Subsequent to initial measurement, the liability is reduced for payments made and increased for interest changes. It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments.

   When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset or in the comprehensive operating statement if the right-of-use asset is already reduced to zero.

   Short-term leases and leases of low-value assets

   The department has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in the comprehensive operating statement when the expenditure is incurred.

   Presentation of right-of-use assets and lease liabilities

   The department discloses right-of-use assets as ‘Property plant and equipment’. Lease liabilities are presented as ‘Borrowings’ in the balance sheet.

   7.2 Cash balances and cash flow information

   7.2.1 Cash balances

   	2022 $’000	2021 $’000
   Cash on hand	–	–
   Cash at bank	55,356	52,882
   Balance as per cash flow statement	55,356	52,882

   Cash at bank includes deposits at call held at the bank and trust account balances held in the State of Victoria’s bank account (‘public account’). Cash received by the department is paid into the public account. Similarly, expenditure for payments to suppliers and creditors are made via the public account. The public account remits to the department the cash required based on payments to suppliers or creditors.

   7.2.2 Reconciliation of the net result for the period to the cash flow from operating activities

   	2022 $’000	2021 $’000
   Net result for the period	21,986	13,048
   Non-cash movements
   Depreciation and amortisation	24,066	23,220
   (Gain)/loss on disposal of non-financial assets	(22)	657
   Net transfers free of charge	(11,416)	–
   Total non-cash movements	12,628	23,877
   Movements in assets and liabilities (net of restructuring)
   (Increase) in receivables	(11,685)	(6,231)
   Decrease in other non-financial assets	9	5,651
   (Decrease) in payables	(7,203)	(2,199)
   Increase in employee benefits	10,961	1,451
   Increase in other provisions	3,010	–
   Total movements in assets and liabilities	(4,908)	(1,328)
   Net cash flows from operating activities	29,706	35,597

   7.3 Financial instruments and financial risk management

   Key accounting recognition and measurement criteria

   Introduction

   Financial instruments arise out of contractual agreements between entities that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the department’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation.

   The department applies AASB 9 Financial Instruments and classifies all financial assets based on the business model for managing the assets and the assets’ contractual terms.

   Financial assets at amortised cost

   Financial assets are measured at amortised cost. These assets are initially recognised at fair value plus any directly attributable transaction costs and are subsequently measured at amortised cost using the effective interest method less any impairment.

   Financial assets at amortised cost include the department’s cash and deposits and trade receivables, but not statutory receivables.

   Financial liabilities at amortised cost

   Financial liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. After initial measurement, these financial instruments are measured at amortised cost using the effective interest method.

   Financial liabilities measured at amortised cost include all the department’s contractual payables and lease liabilities (borrowings).

   Derecognition of financial assets

   A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the rights to receive cash flows from the asset have expired.

   Derecognition of financial liabilities

   A financial liability is derecognised when the obligation under the liability is discharged or, cancelled, or expires.

   Offsetting financial instruments

   Financial instrument assets and liabilities are offset and the net amount disclosed in the balance sheet when, and only when, there is a legal right to offset the amounts and the department intends to settle on a net basis or to realise the asset and settle the liability simultaneously.

   Categories of financial assets and liabilities

   The following table shows the department’s categorisation of financial assets and financial liabilities.

   2022	Financial assets at amortised cost $’000	Financial liabilities at amortised cost $’000	Total $’000
   Contractual financial assets
   Cash and deposits	55,356	–	55,356
   Receivables	60,703	–	60,703
   Total contractual financial assets in 2022	116,059	–	116,059
   Financial liabilities
   Payables	–	31,348	31,348
   Lease liabilities	–	7,382	7,382
   Total contractual financial liabilities in 2022	–	38,730	38,730

   2021	Financial assets at amortised cost $’000	Financial liabilities at amortised cost $’000	Total $’000
   Contractual financial assets
   Cash and deposits	52,882	–	52,882
   Receivables	81,266	–	81,266
   Total contractual financial assets in 2021	134,148	–	134,148
   Financial liabilities
   Payables	–	40,641	40,641
   Lease liabilities	–	3,508	3,508
   Total contractual financial liabilities in 2021	–	44,149	44,149

   The department’s main financial risks include credit risk, liquidity risk and market risk.

   Credit risk

   Credit risk refers to the possibility that a debtor will default on its financial obligations as and when they fall due. Credit risk associated with the department’s contractual financial assets is minimal because the main debtors are other Victorian Government entities. Credit risk is measured at fair value and is monitored on a regular basis.

   Considering the minimal credit risk, there is no expected credit loss for contractual receivables as per AASB 9 Financial Instruments Expected Credit Loss approach.

   Liquidity risk

   Liquidity risk arises when the department is unable to meet its financial obligations as they fall due. The department’s exposure to liquidity risk is deemed insignificant based on a current assessment of risk.

   The department is exposed to liquidity risk mainly through the financial liabilities as disclosed in the balance sheet. The department manages its liquidity risk by:

   • maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short-term obligations
   • careful maturity planning of its financial obligations based on forecasts of future cash flows.

   Market risk

   The department’s exposure to market risk is primarily through interest rate risk. The department has no material exposure to foreign currency and other price risks.

   Interest rate risk

   The department’s exposure to interest rate risk is insignificant and arises primarily through the department’s lease liabilities. The department manages the risk by undertaking interest-bearing liabilities, which are motor vehicles and accommodation leases under fixed-rate contracts.

   7.4 Commitments for expenditure

   Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are recorded at their nominal value and include GST. Where it is considered appropriate and provides relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.

   Nominal amounts	Less than 1 year $’000	1–5 years $’000	5+ years $’000	Total $’000
   2022
   Capital commitments	401	–	–	401
   Outsourcing commitments	1,389	–	–	1,389
   Short-term occupancy agreement commitments (no GST)	18,324	–	–	18,324
   Other commitments	53,769	12,289	–	66,058
   Total commitments (inclusive of GST)	73,884	12,289	–	86,173
   Less GST recoverable	(6,717)	(1,117)	–	(7,834)
   Total commitments (exclusive of GST) in 2022	67,168	11,171	–	78,339
   2021
   Capital commitments	1,930	3,235	–	5,165
   Outsourcing commitments	1,571	46	–	1,617
   Short-term occupancy agreement commitments (no GST)	5,803	–	–	5,803
   Other commitments	27,858	10,423	487	38,767
   Total commitments (inclusive of GST)	37,162	13,704	487	51,352
   Less GST recoverable	(3,378)	(1,246)	(44)	(4,668)
   Total commitments (exclusive of GST) in 2021	33,783	12,458	443	46,684

   The department also has grant payment commitments. These commitments are unquantifiable since final grant payments to recipients are based on achieving performance milestones that may or may not be met and will affect the payment of those grants.

   7.5 Trust account balances

   Trust account balances

   docx 68.4 KB

8. 8 Other disclosures

   Introduction

   This section includes additional disclosures required by accounting standards or otherwise for the understanding of this financial report.

   It also provides information on administered items.

   Structure of this section

   8.1 Other economic flows

   8.2 Responsible persons

   8.3 Executive remuneration

   8.4 Related parties

   8.5 Remuneration of auditors

   8.6 Restructuring of administrative arrangements

   8.7 Contingent assets and contingent liabilities

   8.8 Administered items

   8.9 Other accounting policies and Australian Accounting Standards issued but not yet effective

   8.10 Subsequent events

   8.1 Other economic flows

   Other economic flows are changes in the value of an asset or liability that do not result from transactions. Gains/(losses) from other economic flows include the gains or losses from:

   • the disposal of leased motor vehicles
   • impairments of non-current physical and intangible assets
   • the revaluation of the present value of the long service and recreational leave liability due to changes in the bond interest rate.

   Other economic flows	2022 $’000	2021 $’000
   Net gain on non-financial assets
   Impairment of intangible assets	(516)	(1,061)
   Gain on disposal of leased motor vehicles	538	404
   Total net gain/(loss) on non-financial assets	22	(657)
   Other gains on other economic flows
   Gain on revaluation of recreational leave liability	214	295
   Gain on revaluation of long service leave liability	2,008	2,780
   Total other gains on other economic flows	2,222	3,075

   8.2 Responsible persons

   In accordance with the Ministerial Directions issued by the Assistant Treasurer under the Financial Management Act, the following disclosures are made regarding responsible persons for the reporting period.

   Names

   The persons who held the position of Minister and Accountable Officer in the department (from 1 July 2021 to 30 June 2022 unless otherwise stated) were:

   Name of Minister or Accountable Officer	Relevant title
   The Hon Daniel Andrews MP	Premier
   The Hon James Merlino MP	Deputy Premier (until 24 June 2022)
   The Hon Jacinta Allan MP	Deputy Premier (from 25 June 2022)
   Gabrielle Williams MP	Minister for Treaty and First Peoples (from 27 June 2022) (previously Aboriginal Affairs — until 26 June 2022)
   Tim Pallas MP	Minister for Industrial Relations
   The Hon Danny Pearson MP	Minister for Government Services
   Jeremi Moule	Secretary

   The persons who acted in positions of Minister and Accountable Officer in the department (from 1 July 2021 to 30 June 2022) were:

   Name of Minister or Accountable Officer	Relevant office	Persons who acted in the positions
   The Hon Daniel Andrews MP	Office of the Premier	The Hon Jacinta Allan MP The Hon James Merlino MP
   The Hon Danny Pearson MP	Office of the Minister for Government Services	The Hon Shaun Leane MP The Hon Natalie Hutchins MP
   Gabrielle Williams MP	Office of the Minister for Treaty and First Peoples (previously Aboriginal Affairs — until 26 June 2022)	The Hon Luke Donnellan MP The Hon Martin Foley MP The Hon Ros Spence MP The Hon Richard Wynne MP
   Tim Pallas MP	Office of the Minister for Industrial Relations	The Hon Danny Pearson MP
   Jeremi Moule	Office of the Secretary	Tim Ada Kate Houghton Chris Miller

   Remuneration

   Remuneration received or receivable by the Accountable Officer in connection with managing the department during the reporting period was in the range of $740,000–$749,999 (2020–21: $630,000–$639,999).(1)

   Note: (i) Remuneration received or receivable by the Accountable Officer (s) in 2020–21 was lower than the current year due to the transition of Secretaries during that year. Remuneration received includes salary and superannuation paid in the year. Remuneration receivable includes the value of accrued leave entitlements.

   8.3 Executive remuneration

   The number of executive officers, other than ministers and accountable officers, and their total remuneration during the reporting period are shown in the table below. Total annualised employee equivalents provide a measure of full-time equivalent executive officers over the reporting period.

   Remuneration comprises employee benefits in all forms of consideration paid, payable or provided by the department or on behalf of the department, in exchange for services rendered, and is disclosed in the following categories:

   • Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.
   • Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased.
   • Other long-term benefits include long service leave, other long-service benefits or deferred compensation.
   • Termination benefits include termination of employment payments.

   Remuneration of executive officers	2022 $’000	2021 $’000
   Short-term employee benefits	25,167	25,394
   Post-employment benefits	2,558	2,454
   Other long-term benefits	1,051	(1,249)
   Termination benefits	416	519
   Total remuneration	29,192	27,118
   Total number of executives(i)	138	168
   Total annualised employee equivalents(ii)	108.0	128.4

   Notes:

   (i) The total number of executive officers includes people who meet the definition of key management personnel of the entity under AASB 124 Related Party Disclosures and are also reported within the related parties note disclosure (Note 8.4).

   (ii) Annualised employee equivalent is based on the time fraction worked over the reporting period.

   8.4 Related parties

   The department is a wholly owned and controlled entity of the State of Victoria.

   Related parties of the department, Victorian Independent Remuneration Tribunal and Wage Inspectorate Victoria include:

   • all key management personnel and their close family members and personal business interests (controlled entities, joint ventures and entities they have significant influence over)
   • all Cabinet ministers and their close family members
   • all departments and public sector entities that are controlled and included in the whole of state consolidated financial statements.

   Significant transactions with government-related entities

   The department received funding from the Consolidated Fund totalling $650.5 million (2021: $607.4 million). Refer to Note 2.1 for details.

   Key management personnel

   The department’s key management personnel from 1 July 2021 to 30 June 2022 included:

   The Premier

   • The Hon Daniel Andrews MP

   Portfolio ministers

   • The Hon James Merlino MP
   • The Hon Jacinta Allan MP
   • Gabrielle Williams MP
   • Tim Pallas MP
   • The Hon Danny Pearson MP

   Secretary

   • Jeremi Moule

   Deputy Secretaries

   • Toby Hemming
   • Tim Ada
   • Chris Miller
   • Vivien Allimonos
   • Kate Houghton
   • Travis Lovett
   • Elly Patira
   • Matt O’Connor
   • Sandy Pitcher
   • Michael McNamara

   Executive Director, Corporate Services

   • Genevieve Dolan
   • Kylie Callander

   Key management personnel of the administrative offices included in the department’s financial statements and other statutory appointees that are material in terms of the department’s financial results include:

   Administrative offices

   • Justine Heazlewood — The Keeper of Public Records of Public Record Office Victoria
   • Joanne de Morton — Chief Executive Officer of Service Victoria

   The compensation detailed below excludes the salaries and benefits of portfolio ministers. Ministers’ remuneration and allowances are set by the Parliamentary Salaries and Superannuation Act 1968 and is reported in the State’s Annual Financial Report.

   Compensation of key management personnel	Department, administration offices and section 53 entities
   	2022 $’000	2021 $’000
   Short-term employee benefits	5,070	3,733
   Post-employment benefits	358	270
   Other long-term benefits	172	(368)
   Termination benefits	–	153
   Total	5,600	3,788

   Transactions with key management personnel and other related parties

   Given the breadth and depth of state government activities, related parties transact with the Victorian public sector on terms and conditions equivalent to those that prevail in arm’s length transactions under the State’s procurement process. Further employment of processes within the Victorian public sector occurs on terms and conditions consistent with the Public Administration Act, codes of conduct, and standards issued by the Victorian Public Sector Commission. Procurement processes occur on terms and conditions consistent with Victorian Government Procurement Board requirements.

   During the financial year the department’s Secretary, Jeremi Moule, was a member of the board of directors of the Australian New Zealand School of Government (ANZSOG). Since 2002 the department has transactions that occurred with ANZSOG that prevail at arm’s length under the State’s procurement processes.

   Outside of normal citizen-type transactions with the department, there were no other related party transactions that involved key management personnel or their close family members. No provision has been required, nor any expense recognised, for impairment of receivables from related parties.

   8.5 Remuneration of auditors

   	2022 $’000	2021 $’000
   Victorian Auditor-General’s Office
   Audit of the annual financial statements	156	144
   Total remuneration of auditors	156	144

   8.6 Restructuring of administrative arrangements

   Transfers out of the department

   The following transfer of public sector reform from the department (the transferor) to the Victorian Public Sector Commission was based on the declaration pursuant to section 28(1) of the Public Administration Act taking effect on 1 July 2021:

   2022	Public sector reform $’000	Total net transfer $’000
   Assets
   Cash and deposits	2,672	2,672
   Receivables	332	332
   Total assets	3,004	3,004
   Liabilities
   Employee benefits	(332)	(332)
   Total liabilities	(332)	(332)
   Net assets transferred(i)	2,672	2,672

   Note:

   (i) The net assets (liabilities) transferred were treated as a transfer of contributed capital provided by the State of Victoria.

   8.7 Contingent assets and contingent liabilities

   Key accounting recognition and measurement criteria

   Contingent assets and contingent liabilities are not recognised in the balance sheet but are disclosed and, if quantifiable, measured at nominal value.

   Contingent assets and liabilities are presented inclusive of GST.

   Contingent assets are possible assets that arise from past events, whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the department.

   These are classified as either quantifiable, where the potential economic benefit is known, or non-quantifiable.

   Contingent liabilities are:

   • possible obligations that arise from past events, whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the department, or
   • present obligations that arise from past events but are not recognised because:
     • it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligations, or
     • the amount of the obligations cannot be measured with sufficient reliability.

   Contingent liabilities are also classified as either quantifiable or non-quantifiable.

   Contingent liabilities

   Quantifiable contingent liabilities

   Contingent liabilities	2022 $’000	2021 $’000
   Legal proceedings and disputes	150	110
   Total	150	110

   Non-quantifiable contingent liabilities

   Digital Victoria contracts

   The department has executed several procurement contracts on behalf of Digital Victoria, which includes an indemnity clause. This indemnity clause implies that the department may be liable to reimburse financial claims in the future. It is impractical to quantify those potential future claims at this point in time.

   Contaminated land — PROV (North Melbourne)

   The department has a potential contingent liability arising from remediation that may be required if the undeveloped area of land, which is contaminated, is further developed. This area of land has been maintained in a vegetated state to reduce the possibility of any erosion and windborne dust generation. Due to recent changes in environmental laws, there will be an application lodged with the Environmental Protection Authority Victoria (EPA), which will include an assessment from an independent consultant, to clarify the classification of the contamination. The liability for any remediation works is contingent upon the outcome of the application to the EPA, and any plans to further develop or sell the undeveloped portion of land. At this stage the undeveloped area of land is not expected to be developed, sold or further remediated which makes it impractical to quantify the financial effects of this contingent liability. As of 30 June 2022, there has been no legal or constructive obligation identified and as such there has been no provision recognised.

   (2021: nil).

   Contingent assets

   There were no contingent assets as at the reporting date. (2021: nil).

   8.8 Administered items

   Key accounting recognition and measurement criteria

   Administered transactions relating to income, assets and liabilities are determined on an accrual basis.

   The below transactions and balances relate to administered items and are not included elsewhere in these financial statements because the department does not control these activities. However, the department remains accountable to the State for the transactions involving these administered resources even though it does not have the discretion to deploy these resources for its own benefit or to achieve its objectives. The most significant transactions in this category include appropriations received and on-passed to the Victorian Electoral Commission for electoral entitlements, disposal of vehicles under leases, the Public Service Commuter Club and other Treasury and departmental trusts.

   Administered (non-controlled) items	2022 $’000	2021 $’000
   Administered income from transactions
   Appropriations	12,551	17,402
   Grants	–	137
   Provision of services	98	48
   Other income	1,921	691
   Total administered income from transactions	14,570	18,278
   Administered expenses from transactions
   Grants and other transfers	12,551	11,955
   Supplies and services	5	4,548
   Employee expenses	–	874
   Payments into the Consolidated Fund	2,018	879
   Total administered expenses from transactions	14,574	18,256
   Total administered comprehensive result	(4)	22
   Administered financial assets(i)
   Cash(ii)	31,442	24,305
   Other receivables	114	133
   Total administered financial assets	31,556	24,438
   Total assets	31,556	24,438
   Administered liabilities
   Amounts payable to other government agencies(ii)	31,659	24,535
   Total liabilities	31,659	24,535
   Administered net assets	(103)	(97)

   Notes:

   (i) The State’s investment in all its controlled entities is disclosed in the administered note of the Department of Treasury and Finance’s financial statements. This includes the investment in the department’s portfolio entities.

   (ii) This includes funds in trust for the portfolio agencies held in the State’s public account.

   Administered trust account balances

   The table below provides additional information on individual administered trust account balances.

   Administered trust account balances

   docx 67.58 KB

   8.9 Other accounting policies and Australian Accounting Standards issued but not yet effective

   Other accounting policies — contributions by owners

   In relation to machinery of government changes and consistent with the requirements of AASB 1004 Contributions, contributions by owners, contributed capital and its repayments are treated as equity transactions and do not form part of the department’s income and expenses.

   Additions to net assets that have been designated as contributions by owners are recognised as contributed capital. Other transfers that are contributions to, or distributions by, owners are designated as contributions by owners.

   Transfers of net assets or liabilities arising from administrative restructurings are treated as distributions to, or contributions by, owners.

   Australian Accounting Standards issued but not yet effective

   Certain new and revised accounting standards have been issued but are not effective for the 2021–22 reporting period. These accounting standards have not been applied to the department’s financial statements. The State is reviewing its existing policies and assessing the potential implications of these accounting standards which includes the following.

   Standard/interpretation

   • AASB 2020-1 Amendments to Australian Accounting Standards — Classification of Liabilities as Current or Non-current

   Summary

   This Standard amends AASB 101 to clarify requirements for the presentation of liabilities in the statement of financial position as current or non-current. A liability is classified as non-current if an entity has the right at the end of the reporting period to defer settlement of the liability for at least 12 months after the reporting period. The meaning of settlement of a liability is also clarified.

   AASB 2020-6 Amendments to Australian Accounting Standards — Classification of Liabilities as Current or Non-current — Deferral of Effective Date was issued in August 2020 and defers the effective date to annual reporting periods beginning on or after 1 January 2023 instead of 1 January 2022, with earlier application permitted.

   Applicable for annual reporting periods beginning on 1 January 2023

   Impact on public sector entity financial statements

   • The amended standard is not expected to have a significant impact on the public sector.

   Several other amending standards and AASB interpretations have been issued that apply to future reporting periods but are considered to have limited impact on the department’s reporting:

   • AASB 2020-3 Amendments to Australian Accounting Standards — Annual Improvements 2018–2020 and Other Amendments
   • AASB 2021-2 Amendments to Australian Accounting Standards — Disclosure of Accounting Policies and Definitions of Accounting Estimates
   • AASB 2021-6 Amendments to Australian Accounting Standards — Disclosure of Accounting Policies: Tier 2 and Other Australian Accounting Standards
   • AASB 2021-7 Amendments to Australian Accounting Standards — Effective Date of Amendments to AASB 10 and AASB 128 and Editorial Corrections .

   8.10 Subsequent events

   No significant events have occurred since 30 June 2022 that will have a material impact on the information disclosed in the financial statements.

Appendices

1. 1 Budget portfolio outcomes

   The budget portfolio outcomes statements provide a comparison between the actual financial information of all general government entities within the portfolio and the forecast financial information published in the State Budget Papers by the Department of Treasury and Finance.

   The budget portfolio outcomes statements comprise the comprehensive operating statement, balance sheet, cash flow statement, statement of changes in equity and the administered items statement.

   The budget portfolio outcomes statements have been prepared on a consolidated basis and include all general government entities within the portfolio. Consistent with the budget papers, financial transactions and balances are classified into either ‘controlled’ or ‘administered’.

   The budget portfolio outcomes statements that follow are not subject to audit by the Victorian Auditor-General’s Office.

   They are not prepared on the same basis as DPC’s financial statements because they also include the consolidated financial information of the following entities:

   • Victorian Electoral Commission
   • Victorian Public Sector Commission
   • Cenitex.

   From 2021–22 the operations of the Portable Long Service Authority and the Labour Hire Authority are separately reported as regulatory bodies and are no longer included in this report.

   Comprehensive operating statement for the year ended 30 June 2022

   Controlled	2021–22 actual $m	2021–22 budget $m	Variation $m
   Income from transactions
   Output appropriations (1)	599.8	470.0	129.8
   Special appropriations	50.7	43.1	7.6
   Interest	–	1.5	(1.5)
   Sale of goods and services (2)	226.6	186.8	39.8
   Grants (3)	33.5	3.2	30.3
   Resources received free of charge	11.4	–	11.4
   Other income	0.2	1.4	(1.2)
   Total income from transactions	922.2	706.0	216.2
   Expenses from transactions
   Employee benefits (4)	390.8	340.5	(50.3)
   Depreciation	49.8	43.6	(6.2)
   Interest expense	0.4	–	(0.4)
   Grants expense (5)	154.2	82.7	(71.5)
   Capital asset charge	–	–	–
   Other expenses (6)	296.7	239.5	(57.2)
   Total expenses from transactions	891.9	706.3	(185.6)
   Net result from transactions	30.3	(0.3)	30.6
   Other economic flows included in net result
   Net gain/(loss) on non-financial assets	–	–	–
   Net gain/(loss) on financial instruments and statutory receivables/payables	(0.4)	–	(0.4)
   Other gains/(losses) from other economic flows	4.4	–	4.4
   Total other economic flows included in net result	4.0	–	4.0
   Net result	34.3	(0.3)	34.6
   Other economic flows — other comprehensive income
   Items that will not be reclassified to net result
   Changes in physical asset revaluation reserve (7)	207.0	–	207.0
   Other	–	–	–
   Total other economic flows — other comprehensive income	207.0	–	207.0
   Comprehensive result	241.3	(0.3)	241.6

   Summary:

   The net result from transactions for the DPC portfolio is a surplus of $30.3 million, which is primarily due to increased project and service delivery volumes in Cenitex and assets received free of charge by the Public Record Office Victoria. The comprehensive result for the portfolio was a surplus of $241.3 million, which includes a $207 million gain on the revaluation of assets.

   Notes:

   The notes below provide an explanation of the major variances between the 2021–22 comprehensive result compared with the budgeted comprehensive result.

   (1) Higher output appropriations mainly relate to additional budget funding approved after the original budget publication.

   (2) Higher sale of goods and services is driven by higher customer volume and additional services provided by Cenitex.

   (3) The increase in grant revenue mainly relates to trust revenues.

   (4) Employee benefits increase mainly relates to staffing requirements associated with budget initiatives approved after the original budget publication.

   (5) The increase in grants expense relates to grant transfers to Breakthrough Victoria Pty Ltd. Funding is approved after original budget publication.

   (6) Higher other expenses relate to professional services costs associated with budget initiatives approved after the original budget publication.

   (7) The increase in revaluation reserve relates to land and buildings within the portfolio and cultural assets held by the Public Record Office Victoria.

   Balance sheet as at 30 June 2022

   Controlled	2022 actual $m	2022 budget $m	Variation $m
   Financial assets
   Cash and deposits	91.3	111.5	(20.2)
   Receivables(1)	56.5	101.0	(44.5)
   Other financial assets (2)	129.0	76.7	52.3
   Total financial assets	276.8	289.2	(12.4)
   Non-financial assets
   Inventories	6.2	3.7	2.5
   Property, plant and equipment (3)	955.4	761.2	194.2
   Intangible assets	63.0	62.3	0.7
   Other non-financial assets	34.1	12.4	21.7
   Total non-financial assets	1,058.7	839.6	219.1
   Total assets	1,335.5	1,128.8	206.7
   Liabilities
   Payables	76.3	105.9	29.6
   Borrowings	34.0	38.7	4.7
   Provisions	95.3	71.7	(23.6)
   Total liabilities	205.6	216.3	10.7
   Net assets	1,129.9	912.5	217.4
   Equity
   Contributed capital	435.7	465.5	(29.8)
   Reserves(4)	599.1	402.1	197.0
   Accumulated surplus	95.1	44.6	50.5
   Total equity	1,129.9	912.3	217.6

   Summary:

   Net assets (or total equity) for the DPC portfolio at 30 June 2022 have increased by $217.6 million when compared with the budgeted balance sheet published in the State Budget Papers. This is mainly attributable to gains on the revaluation of assets within the portfolio.

   Notes:

   The notes below provide an explanation of the major variances in asset, liability and equity items.

   (1) The decrease in receivables from government is due to machinery of government changes and timing of expense recoupment from other government departments. A budget update is made after the original budget publication.

   (2) The increase in other financial assets is due to a higher level of debtors.

   (3) The increase in property, plant and equipment relates to land and buildings within the portfolio and cultural assets held by the Public Record Office Victoria.

   (4) The increase in revaluation reserve relates to land and buildings within the portfolio and cultural assets held by the Public Record Office Victoria.

   Cash flow statement for the year ended 30 June 2022

   Controlled	2021–22 actual $m	2021–22 budget $m	Variation $m
   Cash flows from operating activities
   Receipts from government (1)	617.0	494.6	122.4
   Receipts from other entities	20.2	4.0	16.2
   Other receipts(2)	251.6	188.0	63.6
   Total receipts	888.8	686.6	202.2
   Payments of grants(3)	(154.2)	(82.7)	(71.5)
   Payments to suppliers and employees(4)	(682.3)	(581.0)	(101.3)
   Capital asset charge	–	–	–
   Total payments	(836.5)	(663.7)	(172.8)
   Net cash flows from operating activities	52.3	22.9	29.4
   Cash flows from investing activities
   Net investment	0.6	–	0.6
   Payments for non-financial assets	(44.2)	(30.2)	(14.0)
   Proceeds from the sale of non-financial assets	1.0	–	1.0
   Net cash flows used in investing activities	(42.6)	(30.2)	(12.4)
   Cash flows from financing activities
   Owner contributions by the state government	4.7	(11.0)	15.7
   Net borrowings	(7.8)	(9.5)	1.7
   Net cash flows from financing activities	(3.1)	(20.5)	17.4
   Net increase/(decrease) in cash held	6.6	(27.8)	34.4
   Cash at the beginning of the financial year	84.7	139.3	(54.6)
   Cash at the end of the financial year	91.3	111.5	(20.2)

   Summary:

   The net cash position for the DPC portfolio at 30 June 2022 is $91.3 million. This is $20.2 million lower than the original budgeted balance of $111.5 million.

   Notes:

   The notes below provide an explanation of the major variances in the 2021–22 cash flow statement.

   (1) The variance in receipts from the government is mainly due to appropriations received for initiatives approved after the original budget publication.

   (2) The variance in other receipts relates mainly to increased Cenitex services revenue.

   (3) The variance in payments of grants primarily relates to the grants payments to Breakthrough Victoria Pty Ltd.

   (4) The variance in payments to suppliers and employees relates to costs associated with initiatives approved after original budget publication.

   Statement of changes in equity for the year ended 30 June 2022

   Controlled	2021–22 actual $m	2021–22 budget $m	Variation $m
   Contributed capital
   Opening balance	428.1	428.1	–
   Contribution from owners	7.4	37.4	(30.0)
   Closing balance	435.5	465.5	(30.0)
   Reserves
   Opening balance	392.4	392.4	–
   Comprehensive result	206.7	64.3	142.4
   Closing balance	599.1	402.1	197.0
   Accumulated surplus
   Opening balance	64.3	64.3	–
   Machinery of government	–	–	–
   Comprehensive result	30.8	(19.7)	50.5
   Closing balance	95.1	44.6	50.5
   Total equity	1,129.7	912.3	217.4

   Summary:

   Total equity for the DPC portfolio is $217.4 million favourable when compared with the original budgeted balance sheet published in the State Budget Papers. This is mainly attributable to cultural asset revaluations.

   Administered items statement for the year ended 30 June 2022

   	2021–22 actual $m	2021–22 budget $m	Variation $m
   Administered income
   Special appropriations	12.6	12.8	(0.2)
   Sales of goods and services	2.2	0.8	1.4
   Other income	1.0	0.3	0.7
   Total administered income	15.8	13.9	1.9
   Administered expenses
   Expenses on behalf of the state	6.6	6.3	(0.3)
   Payments into the Consolidated Fund	9.5	1.1	(8.4)
   Total administered expenses	16.1	7.4	(8.7)
   Income less expenses	(0.3)	6.5	(6.8)
   Administered assets
   Cash and deposits	1.0	0.4	0.6
   Receivables	30.7	31.5	(0.8)
   Total administered assets	31.7	31.9	(0.2)
   Administered liabilities
   Payables	1.7	–	(1.7)
   Total administered liabilities	1.7	–	(1.7)
   Net assets	30.0	31.9	(1.9)

   Summary:

   Administered items for the DPC portfolio include receipts and payments made by the DPC portfolio on behalf of the state.

2. 2 Other financial information

   Financial performance

   Significant factors that affected DPC’s performance in 2021–22 are summarised below.

   DPC recorded a net profit result from operations of $20 million for 2021–22.

   The profit result is primarily due to assets received free of charge from the Public Record Office Victoria and trust funds operation, where funds received during 2021–22 will be expended in future years.

   Sources of income ($ million)

   

   The above graph shows the sources of income available to DPC during the 2021–22 financial year.

   DPC’s main source of income is from government appropriations, which account for 94% of income. The balance is derived from government grants and services.

   Compared with 2020–21 the overall increase in DPC’s income is mainly due to new government initiatives delivered during the year, including digital vaccination certification, the business licensing initiative and development of the Digital Victoria Marketplace, along with an increase associated with 2022 State Election readiness. This resulted in higher government appropriations.

   Expenses ($ million)

   

   The above graph shows the distribution of expenses in delivering DPC’s services.

   DPC’s total expenses have increased by $43 million compared with 2020–21. This is mainly due to delivering new government initiatives and increased expenditure to prepare for the 2022 State Election.

   Financial position — balance sheet

   DPC’s assets have increased due to the revaluation of property, plant and equipment. Liabilities have increased as a result of higher employee leave liabilities and provision for the early retirement packages announced during the year.

   Cash flows

   DPC had a net cash inflow from operating activities of $30 million. Compared with last year, this is a $6 million decrease. This decrease is mainly due to working capital movements including the timing of payment of liabilities.

   Capital projects / asset investment

   During 2021–22 DPC completed one capital project that met the disclosure threshold of $10 million or greater — Australian Quarantine Accommodation and Planning — with a total estimated investment of $15 million.

   Consultancies and major contracts

   Consultancies and major contracts

   Details of consultancies

   In 2021–22 there were 25 consultancies engaged with a total approved value at $10,000 or greater. The total expenditure incurred during 2021–22 in relation to these consultancies was $4.01 million (excluding GST). Details of individual consultancies can be viewed at www.vic.gov.au/dpc-annual-reports.

   In 2021–22 there were two consultancies engaged with a total approved value less than $10,000. The total expenditure incurred during 2021–22 in relation to these consultancies was $10,200 (excluding GST).

   Disclosure of major contracts

   DPC is required to disclose, in accordance with the requirements of government policy and accompanying guidelines, all contracts greater than $10 million entered into during the financial year.

   DPC did not enter into any new contracts greater than $10 million during the financial year ended 30 June 2022. Details of contracts that have been disclosed in the Victorian Government Contracts Publishing System can be viewed at www.tenders.vic.gov.au .

   Contractual details have not been disclosed for those contracts for which disclosure is exempted under the Freedom of Information Act 1982 or government guidelines.

   Direct costs attributable to machinery of government changes

   There were no direct costs attributable to machinery of government changes that have been incurred by the entities that are consolidated into the department’s annual report pursuant to section 53(1)(b) of the Financial Management Act 1994.

   Grant payments

   Details of DPC grant payments in 2021–22 can be viewed at www.vic.gov.au/dpc-annual-reports .

   Financial management compliance

   Attestation for compliance with Ministerial Standing Direction 5.1.4

   Department of Premier and Cabinet

   I, Jeremi Moule, the Secretary of the Department of Premier and Cabinet, certify that Service Victoria has the following Material Compliance Deficiency with respect to the applicable Standing Directions under the Financial Management Act 1994 and Instructions in 2021–22.

   Relevant Direction and Instruction

   4.2 Contract management and performance

   3.1 The Accountable Officer must ensure the Agency facilitates contract performance, including by:

   1. establishing a sound governance framework for effectively managing contracts.

   Reasons for Material Compliance Deficiency

   In December 2021 controls in the DPC purchasing system identified a number of high-value invoices attached to Service Victoria contracts that were not fully compliant with the appropriate procurement governance framework.

   Remedial actions

   Service Victoria has collaborated with DPC Procurement to develop a remediation plan that includes appropriate level of management oversight of major procurements, and further staff education on procurement processes, compliance, and obligations.

   Service Victoria’s Board of Management has communicated and will enforce zero tolerance for non-compliance with procurement policies.

   Jeremi Moule
   Secretary
   Department of Premier and Cabinet
   Melbourne
   
   2 September 2022

   Wage Inspectorate Victoria

   I, Robert Hortle, the Commissioner of the Wage Inspectorate Victoria, certify that the Wage Inspectorate Victoria has no Material Compliance Deficiency with respect to the applicable Standing Directions under the Financial Management Act 1994 and Instructions.

   Robert Hortle
   Commissioner
   Wage Inspectorate Victoria
   Melbourne
   
   8 July 2022

   Government advertising expenditure

   Details of government advertising expenditure in 2021–22

   (Campaigns with a media spend of $100,000 or greater)

   Details of government advertising expenditure in 2021–22

   docx 77.83 KB

   Information and communications technology expenditure

   For the 2021–22 reporting period, DPC had a total ICT expenditure of $38.7 million, with details shown below.

   	Expenditure $’000
   All operational ICT expenditure
   Business as usual (BAU) ICT expenditure (total)	31,001
   ICT expenditure related to projects to create or enhance ICT capabilities
   Operational expenditure	2,140
   Capital expenditure	5,531
   Non‑business as usual (non‑BAU) ICT expenditure (total)	7,671

   ICT expenditure refers to DPC’s costs in providing business-enabling ICT services. It comprises BAU ICT expenditure and non-BAU ICT expenditure. Non-BAU ICT expenditure relates to extending or enhancing DPC’s current ICT capabilities. BAU ICT expenditure is all remaining ICT expenditure, which primarily relates to ongoing activities to operate and maintain the current ICT capability.

3. 3 Governance

   Board of Management

   The Board of Management comprises DPC’s senior-level executive officers who:

   • provide organisation oversight
   • provide strategic direction
   • ensure DPC is operating in a fiscally and environmentally sustainable manner
   • ensure DPC is meeting changing community needs and government priorities.

   As of June 2022 DPC’s Board of Management members are:

   • Jeremi Moule, Secretary
   • Toby Hemming, Deputy Secretary, Legal, Legislation and Governance, and General Counsel
   • Michael McNamara, Chief Executive Officer, Digital Victoria
   • Vivien Allimonos, Deputy Secretary, Cabinet, Communications and Corporate
   • Kate Houghton, PSM, Deputy Secretary, Social Policy and Intergovernmental Relations
   • Tim Ada, Deputy Secretary, Economic Policy and State Productivity
   • Elly Patira, Deputy Secretary, First Peoples–State Relations
   • Matt O’Connor, Deputy Secretary, Industrial Relations Victoria
   • Sandy Pitcher, Deputy Secretary, Social Services Workforce Reform.

   Audit and Risk Management Committee

   The Audit and Risk Management Committee provides independent assurance and advice on the effectiveness of DPC’s financial management systems and controls, performance, stability, compliance with laws and regulations and risk management.

   The committee reports to DPC’s Secretary and is established in accordance with the Financial Management Act.

   All members of the committee are independent.

   As of 30 June 2022, the committee comprised the following members:

   • Geoff Harry (chair)
   • Claire Filson
   • Andrew Whittaker.

   Internal audit

   In 2021–22 PricewaterhouseCoopers provided DPC’s internal audit services.

   DPC’s internal audit program includes reviews into the department’s state of governance, risk management practices and internal controls.

   Audit results and follow-up actions are reported to the Audit and Risk Management Committee.

   Health, Safety and Wellbeing Committee

   The Health, Safety and Wellbeing Committee is a consultative committee made up of DPC’s health and safety representatives and may also include first aid officers.

   The committee has been established in accordance with the Occupational Health and Safety Act 2004 to:

   • facilitate cooperation between the employer and employees in instigating, developing and carrying out measures designed to ensure the health and safety of employees in the workplace
   • assist formulation, review and dissemination to employees of policies and procedures relating to health and safety that are to be implemented and complied with at DPC
   • investigate any matter that may be a risk to the health and safety of persons at DPC
   • review reported accidents and incidents, and DPC’s Occupational Health and Safety (OHS) Risk Register, including risk ratings and controls
   • attempt to resolve any matter or request for DPC to conduct a review of the matter where no resolution can be determined
   • establish designated working groups to reflect the DPC working environment
   • ensure elections are conducted to fulfil the health and safety representative requirement across the department.

   The committee members have met quarterly to ensure any emerging issues were identified early to enable a timely and proactive response.

   Procurement Governance Committee

   The DPC Procurement Governance Committee members as of 30 June 2022 were:

   • Genevieve Dolan, Executive Director Corporate Services (chair)
   • Bernard Baudoin, Director Digital Strategy and Enterprise Architecture
   • Anthony Bale, Chief Financial Officer
   • Kylie Callander, Chief Procurement Officer
   • Carolynne Hamilton, Director Product Management and Development
   • Nicola Ramsay, Chief Operating Officer.

   The main responsibilities of the Procurement Governance Committee are to:

   • ensure strategic direction of procurement activities at DPC
   • provide governance and assurance to the Secretary and Board of Management through its oversight of procurement strategies, policies, procedures, practices and probity
   • ensure compliance with Victorian Government Purchasing Board supply policies and the Financial Management Act.

4. 4 Workforce data

   Comparative data

   Comparative data Tables 1-7

   docx 170.99 KB

   Executive officer data

   • For a department, a member of the Senior Executive Service (SES) is defined as a person employed as an executive under Part 3 of the Public Administration Act 2004 (PAA).
   • For a portfolio entity, an executive is defined as a person employed as an executive under Part 3 of the PAA or a person to whom the Victorian Government’s Public Entity Executive Remuneration Policy applies.
   • All figures in the following tables reflect employment levels at the last full pay period in June of the current and corresponding previous reporting year.
   • The definition of an SES does not include a statutory office holder, an Accountable Officer or an Administrative Office Head.

   Table 8: DPC Senior Executive Service numbers for 2022 and 2021

   Class	Men			Women			Self-described			Total
   	2022	2021	Var	2022	2021	Var	2022	2021	Var	2022	2021	Var
   SES 3	4	1	3	4	2	2	0	0	0	8	3	5
   SES 2	11	12	–1	15	14	1	0	0	0	26	26	0
   SES 1	19	16	3	39	29	10	0	0	0	58	45	13
   Total	34	29	5	58	45	13	0	0	0	92	74	18

   Table 9: DPC portfolio entity Senior Executive Service numbers for 2022 and 2021

   Portfolio entity	Men			Women			Self-described			Total
   	2022	2021	Var	2022	2021	Var	2022	2021	Var	2022	2021	Var
   Office of the Chief Parliamentary Counsel	1	1	0	1	2	–1	0	0	0	2	3	–1
   Office of the Governor	2	0	2	1	1	0	0	0	0	3	1	2
   Office of the Victorian Government Architect	0	0	0	0	0	0	0	0	0	0	0	0
   Public Record Office Victoria	0	0	0	0	0	0	0	0	0	0	0	0
   Service Victoria	4	6	–2	1	3	–2	0	0	0	5	9	–4
   Wage Inspectorate Victoria	0	0	0	1	0	1	0	0	0	1	0	1
   Total	7	7	0	4	6	–2	0	0	0	11	13	–2

   Note: Executive numbers for the Office of the Governor reflect employment levels as at 17 June 2022. The total number of substantive executives employed is two.

   Table 10: Reconciliation of DPC Senior Executive Service numbers

   		2022	2021
   	Executives (1)	109	99
   	Accountable Officer (Secretary)	1	1
   Less	Separations	17	25
   	Total executive numbers	93	75

   Note:

   (1) Excludes DPC portfolio entity executive officers.

   Table 11: Annualised total salary, by $20,000 bands, for executives and other senior non-executive staff

   Table 11 discloses the annualised total salary for senior employees of DPC categorised by classification. The salary amount is reported as the full-time annualised salary.

   Income band (salary)	Executives	STS	PS	SMA	SRA	Other
   < $160,000
   $160,000–$179,999		4
   $180,000–$199,999	17^	11
   $200,000–$219,999	20^	9
   $220,000–$239,999	13^	5
   $240,000–$259,999	11
   $260,000–$279,999	7^
   $280,000–$299,999	7^
   $300,000–$319,999	5^
   $320,000–$339,999	1
   $340,000–$359,999	1
   $360,000–$379,999	5
   $380,000–$399,999	3
   $400,000–$419,999
   $420,000–$439,999	1
   $440,000–$459,999
   $460,000–$479,999
   $480,000–$499,999	1
   > $500,000	1
   Total	93	29

   ^ Includes employees on part-time arrangements, which cover the following FTE: 0.60, 0.70, 0.80 and 0.90.

   Executives’ remuneration includes superannuation.

   Legend: FTE: full-time equivalent; STS: senior technical specialists; PS: principal scientists; SMA: senior medical advisers; SRA: senior regulatory analysts.

   Workforce inclusion policy

   DPC values the diversity of our workforce and is committed to the principles of diversity, inclusion and equality, to ensure all staff are treated with dignity and respect; have equitable access to employment opportunities and outcomes; have the ability to participate in all aspects of work life; and can achieve their full potential. Table 12 outlines the progress DPC has made against key workforce inclusion targets relating to gender profiles at the executive level, people with disability and employees who identify as Aboriginal and/or Torres Strait Islander.

   Gender profile at the executive levels

   DPC acknowledges gender diversity within our workforce and is committed to developing strategies to ensure everyone at DPC, including women and gender diverse staff, has safe and equal access to resources, opportunities and leadership roles and is always treated with dignity, respect and fairness.

   Consistent with Safe and Strong: A Victorian Gender Equality Strategy, DPC has a target to ensure at least 50% of women are represented in executive-level officer roles. The representation of women in executive level roles at DPC was 63% in 2021–22, an increase from 61% in 2020–21.

   Under the Gender Equality Act 2020, DPC has developed a new Gender Equality Action Plan 2021–2025 that outlines the department’s commitment to taking positive action towards achieving workplace gender equality including strategies and measures for promoting gender equality in the workplace over the next four years. The plan identifies six key areas of focus for improving gender equality at DPC including reducing the gender pay gap.

   People with disability

   DPC’s target rate of 12% employment of people with disability by 2025 is outlined in our Disability Access and Inclusion Plan 2021–2025. The DPC Enablers Network supports the goals of the plan and continues to advocate for issues affecting employees with disability. DPC has a dedicated position of Senior Adviser, Disability Access and Inclusion to oversee the improvements to attracting and supporting people with disability through inclusive recruitment, retention and promotion practices.

   Aboriginal and Torres Strait Islander staff

   DPC is committed to improving the recruitment and retention of Aboriginal and Torres Strait Islander staff by creating a culturally safe workplace, strengthening cultural capability and providing flexible and progressive career opportunities.

   Barring Djinang is the Victorian public sector’s five-year Aboriginal employment strategy. The strategy adopts an Aboriginal employment target of 2% for the Victorian public sector. DPC met this target in 2021–22, with 2.3% of staff identifying as Aboriginal and/or Torres Strait Islander over the past 12 months. However, this represents a decrease compared with 2.8% in 2020–21.

   Under the Victorian Government Self-Determination Reform Framework, DPC began developing a new Aboriginal workforce strategy in 2021–22, which is expected to be finalised in October 2022. The strategy aims to create a culturally safe workplace and support the recruitment and retention of Aboriginal staff across the department.

   Table 12: Workforce inclusion policy

   Workforce inclusion policy initiative	Target	2021–22 actual (headcount)	2020–21 actual (headcount)
   Gender profile at executive levels	Representation of at least 50% women in executive officer roles	63%	61%
   People with disability	People with disability at DPC increases to 12% by 2025 (1)	0.2%	0.4%
   Aboriginal and/or Torres Strait Islander staff	Barring Djinang has adopted an Aboriginal employment target of 2% for the Victorian public service	2.3%	2.8%

   Note:

   (1) Headcount is based on payroll system data.

   Note that DPC’s 2022 People Matter Survey results indicate that 8% of DPC’s survey respondents have a disability.

   Note that DPC’s 2022 People Matter Survey results indicate that 3% of DPC’s survey respondents identify as Aboriginal and/or Torres Strait Islander.

   Occupational health and safety management

   DPC is committed to the health and safety of our staff and has developed an OHS strategy that promotes physical and psychosocial safety within the workplace. DPC’s safety strategy features support activities that will embed improved safety systems, develop leadership capability and support a proactive approach to fostering the positive mental health of our employees.

   Vision: A workforce that demonstrates both physical and psychosocially safe practices in all aspects of our work.

   Mission: To develop a holistic, values aligned, integrated approach to health, safety and wellbeing.

   During 2021–22 DPC continued to review and implement measures that would ensure the health, safety and wellbeing of all staff is well maintained. DPC’s health, safety and wellbeing team developed a system of OHS tools that would equip staff with crucial OHS information to support the return to the office environment. These policies, procedures and guidelines equip staff to work safely in a hybrid environment, with updates made to the e-learning OHS module, COVID-19 protocols, and Return to Office FAQ. In addition, quarterly reports were provided to DPC’s Board of Management, relaying performance indicator data developed from the Victorian Government’s Leading the Way strategy, with the aim of providing transparent information to improve health and safety performance.

   Incident management

   Reported incidents across DPC decreased by 0.43% per 100 FTE staff in 2021–22, with five incidents reported. This decrease equates to five fewer incidents reported compared with the previous year. Incidents include injuries, detected hazards and ‘near misses’.

   ‘Slips, trips and bumps’ were the most commonly reported incident (80%). This differs from 2020–21, where ‘psychological injury’ was the most common incident. These changes reflect the increased number of staff returning to the workplace since the lifting of pandemic orders.

   There were no notifiable incidents across DPC in 2021–22. Notifiable incidents are those that require the OHS Regulator (WorkSafe) to be notified if they occur.

   Figure 1: Number of incidents and rate per 100 FTE

   

   The number of standard claims received during 2021–22 decreased from six in 2020–21 to two. The rate per 100 FTE also decreased by 0.44. One claim was a minor claim (medical costs only) and one claim was for psychological injuries.

   The total number of WorkCover claims lodged in 2021–22 has decreased compared with the previous year (Figure 2), with one of the two accepted claims exceeding 13 weeks (Figure 4).

   Similarly, the number of lost-time claims has decreased in comparison with the previous year (Figure 3). The average cost per claim has continued to decrease from $30,365 in 2020–21 to $12,692 in 2021–22.

   Figure 2: Number of standard claims and rate per 100 FTE

   

   Figure 3: Lost time claims and rate per 100 FTE

   

   Figure 4: Claims exceeding 13 weeks and rate per 100 FTE

   

   DPC’s WorkCover premium rate decreased by 0.02% for 2021–22 (Figure 5). DPC is performing 27.27% better than industry average, which contributed to the reduction in DPC’s WorkCover premium for 2021–22.

   Figure 5: Department of Premier and Cabinet premium rate

   

   DPC’s performance against occupational health and safety management measures

   Measure	Key performance indicator	2019–20	2020–21	2021–22
   Incidents	Number of incidents	27	10	5
   	Rate per 100 FTE	2.66	1.08	0.65
   	Number of incidents requiring first aid or further medical treatment(1)	15	4	2
   Claims	Number of standard claims	6	6	2
   	Rate per 100 FTE	0.59	0.65	0.22
   	Number of lost-time claims	6	6	1
   	Rate per 100 FTE	0.59	0.65	0.11
   	Number of claims exceeding 13 weeks	4	3	1
   	Rate per 100 FTE	0.39	0.33	0.11
   Fatalities	Fatality claims	0	0	0
   Claim costs	Average cost per standard claim	$34,955	$30,365	$12,692
   Return to work	Percentage of claims with return-to-work plan < 30 days	33%	16%	0%
   Management commitment	Evidence of OHS policy statement, OHS objectives, OHS plans and regular reporting to senior management about OHS	Completed	Completed	Completed
   	Evidence of OHS criteria in purchasing guidelines (including goods, services and personnel)	Completed	Completed	Completed
   Consultation and participation	Compliance with agreed structure on designated work groups, health and safety representatives (HSRs) and issue resolution procedures	Completed	Completed	Completed
   	Evidence of agreed structure of designated workgroups, HSRs and issue resolution procedures(2)	n/a	Completed	Completed
   	Number of quarterly OHS Committee meetings	4	4	4
   Risk management	Percentage of internal audits and inspections conducted as planned (3)	67%	n/a	67%
   	Percentage of reported incidents investigated	100%	100%	100%
   	Number of improvement notices issued by a WorkSafe inspector	0	0	0
   	Number of prosecutions	0	0	0
   	Percentage of issues arising from:
   	internal audits	n/a	n/a	n/a
   	HSR provisional improvement notices	n/a	n/a	n/a
   	WorkSafe notices	n/a	n/a	n/a
   Training	Percentage of managers and staff who have received OHS training (online induction module):
   	induction(2)	n/a	93%	93%
   	management training	42%	93%	93%
   	contractors and temps (4)	n/a	n/a	n/a
   	Percentage of HSRs trained:(5)
   	upon acceptance of the role (initial training)	19%	31%	33%
   	retraining (refresher)	0%	8%	7%

   This information only incorporates the core groups of DPC.

   Notes:

   (1) Number of incidents reported for 2019–20 do not include detectable hazards or near misses.

   (2) Newly introduced measures that were not reported in 2019–20.

   (3) Workplace inspections were on hold from July 2021 to October 2021 due to COVID-19.

   (4) Due to COVID-19 only urgent contractors and temps were used.

   (5) All HSRs are given the opportunity to register for WorkSafe-approved optional HSR training, which all HSRs are encouraged to attend. Further information and reminders are provided in quarterly OHS Committee meetings.

5. 5 Environmental performance

   DPC maintains a strong focus on sustainability through a range of operational activities and the ongoing management of our workspaces.

   DPC continued to commit to the below sustainable practices:

   • environmental considerations in tender specifications for all tender documents
   • three streams of waste disposal: landfill, commingled and organics
   • energy-efficient appliances and sensor lighting
   • sustainably made furniture and, where possible, locally produced furniture
   • sustainable relocation practices, whereby relocating work areas undertake significant clean-up activities and all waste is sustainably disposed of
   • recycling any usable furniture or equipment to other government departments during refurbishments or relocations
   • development of more digital solutions to reduce paper-based activities.

   Office-based environmental impacts

   Over the past 12 months, DPC further consolidated our real estate portfolio in the Melbourne central business district, which has enabled the department to further minimise our environmental footprint.

   The ongoing effects of COVID-19 has led to a significant reduction in all environmental measures, primarily due to DPC staff working remotely over the past 12 months.

   The environmental indicators presented on the following pages are based on Financial Reporting Direction 24.

   Energy

   DPC’s energy consumption covers tenancies at 1 Macarthur Street, 1 Treasury Place, 3 Treasury Place, 1 Spring Street and 35 Collins Street.

   (See the glossary at the end of this section for an explanation of the abbreviations used.)

   Electricity

   Indicator	2021–22	2020–21
   Total energy usage segmented by primary source (MJ)	7,474,021	8,419,946
   Greenhouse gas emissions associated with energy use, segmented by primary source and offsets (t CO2 e)	2,325	2,620
   Units of energy used per FTE (MJ/FTE)	7,846	8,839
   Units of energy used per unit of office area (MJ/m2)	562	633
   Actions undertaken: DPC has adopted a more efficient footprint through consolidating most staff into 35 Collins Street.

   DPC’s gas consumption covers tenancies at 1 Macarthur Street, 1 Treasury Place, 3 Treasury Place and 35 Collins Street.

   Gas

   Indicator	2021–22	2020–21
   Total energy usage segmented by primary source (MJ)	2,076,117	2,338,874
   Greenhouse gas emissions associated with energy use, segmented by primary source and offsets (t CO2 e)	132	149
   Units of energy used per FTE (MJ/FTE)	2,179	2,455
   Units of energy used per unit of office area (MJ/m2)	158	176
   Actions undertaken: DPC participated in the 2022 Earth Hour event.

   Note: Where billing is unavailable, consumption was estimated using average consumption from the previous period. This is the third year that DPC has been able to report our gas usage.

   Result

   • Electricity consumption decreased by 12%.
   • Gas consumption decreased by 11%.

   Explanatory notes

   • Improved reporting from our service providers has resulted in a more accurate result for gas and electricity consumption.

   Paper

   DPC’s paper use covers tenancies at 1 Macarthur Street, 1 Treasury Place, 3 Treasury Place, 1 Spring Street and 35 Collins Street.

   Indicator	2021–22	2020–21
   Total units of copy paper (reams)	553	803
   Units of copy paper per FTE (reams/FTE)	0.6	0.9
   Percentage of 75–100% recycled content copy paper purchased (%)	34	35
   Percentage of 0–50% recycled content copy paper purchased (%)	66	0
   Greenhouse gas emissions related to paper use (t CO2 e)	3.5	5

   Result

   • Paper use decreased by 69%.

   Explanatory notes

   • The introduction of systems such as ABC (electronic briefing system) has contributed to the reduction of paper usage.

   Water

   DPC’s water consumption covers tenancies at 1 Macarthur Street, 1 Treasury Place, 1 Spring Street and 35 Collins Street.

   Indicator	2021–22	2020–21
   Total units of metered water consumed by usage types (kL)	2,222	3,137
   Units of metered water consumed in offices per FTE (L/FTE)	2,332	3,293
   Units of metered water consumed in offices per unit of office area (L/m2)	167	236

   Note: Where billing data is unavailable, consumption was estimated using average consumption from the previous period.

   Result

   • Water consumption decreased by 29%.

   Explanatory notes

   • Improved reporting from our service providers resulted in a more accurate result for water consumption.

   Transport

   DPC uses vehicles from the Shared Service Provider vehicle pool for operational car travel.

   Operational vehicles	2021–22				2020–21
   	ULP	Hybrid	DSL	Total	ULP	Hybrid	DSL	Total
   Total energy consumption by vehicles (MJ)	135,158	0	8,260	143.418	26,368	5,267	55,430	87,065
   Total vehicle travel associated with entity operations (km)	3,952	0	214	4,166	34,300	90	2,421	36,811
   Total greenhouse gas emissions from vehicle fleet (t CO2 e)	9.42	0	0.58	10.0	1.84	0.4	3.91	6.15
   Greenhouse gas emissions from vehicle fleet per 1,000 km travelled (t CO2 e)	0.39	0	0.34	0.73	0.13	0.20	0.10	0.43

   	2021–22	2020–21
   Total distance travelled by aeroplane (km)	252,870	42,044
   Total greenhouse gas emissions from air travel (t CO2 e)	0.0	0.0

   Result

   • Motor vehicle use decreased by 89%.
   • Air travel increased by 600%.

   Explanatory notes

   • Air travel greenhouse gas emissions were offset by procuring carbon offsets through our service provider.
   • Amended methodology has resulted in an increase from previous years.

   Waste

   DPC’s waste reporting covers tenancies at 1 Macarthur Street and 1 Treasury Place.

   Waste generation	2021–22				2020–21
   	Landfill	Co-mingled recycling	Compost	Total	Landfill	Co-mingled recycling	Compost	Total
   Total units of waste by destination (kg/year)	–	–	–	–	–	–	–	–
   Units of waste per FTE by destination (kg/year)	–	–	–	–	–	–	–	–
   Greenhouse gas emissions from waste to landfill (t CO2 e)	–	–	–	–	–	–	–	–
   Recycling rate (% of total waste)	–	–	–	–	–	–	–	–

   Explanatory notes

   • A waste audit was not carried out during 2021–22 due to low office attendance rates resulting from COVID-19 settings.

   Greenhouse gas emissions

   The emissions disclosed in the table below are taken from the previous sections to show DPC’s greenhouse footprint.

   Indicator	2021–22	2020–21
   Total greenhouse gas emissions associated with energy use (t CO2 e)	2,457	2,769
   Total greenhouse gas emissions associated with vehicle fleet (t CO2 e)	10.73	6.58
   Total greenhouse gas emissions associated with air travel (t CO2 e)	0	8
   Total greenhouse gas emissions associated with waste production (t CO2 e)	–	–
   Total greenhouse gas emissions associated with paper use (t CO2 e)	3.5	5
   Total greenhouse gas emissions (t CO2 e)	2,471.23	2,788.58

   Green procurement

   • Environmental considerations are included in the specifications for all tender documents.
   • DPC complied with Green Purchasing Guidelines where applicable.

   Environmental performance trend charts

   DPC annual energy consumption

   

   DPC annual paper use

   

   DPC annual water use

   

   DPC annual car travel

   

   Glossary

   • DSL: diesel
   • FTE: full-time equivalent employee
   • kg: kilogram
   • kL: kilolitre
   • km: kilometre
   • L: litre
   • m²: square metre
   • MJ: megajoule
   • ream: 500 sheets of A4 paper
   • t CO₂ e: tonnes of carbon dioxide equivalent
   • ULP: unleaded petrol

6. 6 Statutory compliance and other information

   Acts of Parliament

   Acts of Parliament administered by the Premier

   • Administrative Arrangements Act 1983
   • Australia (Acts) Request Act 1985
   • Climate Change Act 2017 — sections 7, 8, 10, 14, 16, 41, 42, 50, 54 and 55 (these sections are jointly administered with the Minister for Environment and Climate Change)
     (The Act is otherwise administered by the Minister for Environment and Climate Change and the Minister for Solar Homes)
   • Commonwealth Arrangements Act 1958
   • Constitution Act 1975 — except:
     • section 72 (this section is administered by the Minister for Government Services)
     • Part III (this Part is administered by the Attorney-General)
     • Division 1 of Part IIIAA (this Division is jointly administered with the Attorney-General)
     • Divisions 3 to 6 of Part IIIAA (these Divisions are administered by the Attorney-General)
     • section 88 in so far as it relates to the appointment of Crown Counsel and Crown Counsel (Advisings) (this section is administered by the Attorney-General)
     • section 88 in so far as it relates to the appointment of the Commissioner for Better Regulation (this section is administered by the Minister for Regulatory Reform)
   • Constitution (Appointments) Act 2009
   • COVID-19 Omnibus (Emergency Measures) Act 2020 — except:
     • Part 2.1 (this Part is jointly and severally administered by the Attorney-General, the Minister for Corrections, the Minister for Police, the Minister for Victim Support and the Minister for Youth Justice)
     • Part 2.2 (except section 16) (this Part is administered by the Minister for Small Business)
     • section 16 (this section is administered by the Minister for Industry Support and Recovery)
     • Part 6.1 in so far as it relates to the making of regulations relating to the repeal of provisions inserted into an Act by Chapter 3 before the repeal of Chapter 3 (in so far as it does relate to those matters, this Part is jointly and severally administered by the Attorney-General, the Minister for Corrections, the Minister for Police, the Minister for Victim Support and the Minister for Youth Justice)
     • Part 6.1 in so far as it relates to the making of regulations relating to the repeal of provisions inserted into an Act by Chapter 4 before the repeal of Chapter 4 (in so far as it does relate to those matters, this Part is jointly and severally administered by the Minister for Consumer Affairs, Gaming and Liquor Regulation, the Minister for Disability, Ageing and Carers and the Minister for Housing)
     • Part 6.1 in so far as it relates to the making of regulations relating to the repeal of provisions inserted into the Education and Training Reform Act 2006 by Part 5.1 before the repeal of Part 5.1 (in so far as it does relate to those matters, this Part is jointly and severally administered by the Minister for Early Childhood and Pre-Prep, the Minister for Education and the Minister for Training and Skills)
     • Part 6.1 in so far as it relates to the making of regulations relating to the repeal of provisions inserted into an Act by Part 5.2 before the repeal of Part 5.2 (in so far as it does relate to those matters, this Part is administered by the Minister for Environment and Climate Change)
     • Part 6.1 in so far as it relates to the making of regulations relating to the repeal of provisions inserted into an Act by Part 5.3 before the repeal of Part 5.3 (in so far as it does relate to those matters, this Part is administered by the Minister for Local Government)
     • Part 6.1 in so far as it relates to the making of regulations relating to the repeal of provisions inserted into an Act by Part 5.5 before the repeal of Part 5.5 (this Part is administered by the Minister for Planning, except in so far as this Part relates to decisions relating to the activities or interests of the Director of Housing or the Minister for Housing [in so far as it does relate to those matters, these provisions are jointly and severally administered with the Minister for Environment and Climate Change])
     • Part 6.1 in so far as it relates to the making of regulations relating to the repeal of provisions inserted into an Act by Part 5.6 before the repeal of Part 5.6 (in so far as it does relate to those matters, this Part is administered by the Minister for Health)
     • Part 6.1 in so far as it relates to the making of regulations relating to the repeal of provisions inserted into an Act by Part 5.7 before the repeal of Part 5.7 (in so far as it does relate to those matters, this Part is administered by the Minister for Workplace Safety)
   • Crown Land (Reserves) Act 1978 —
     • in so far as it relates to the land shown as Crown Allotment 2036, City of Melbourne, Parish of Melbourne South (Parish Plan No. 5514D) reserved for Public Purposes (Government House and Grounds)
       (The Act is otherwise administered by the Assistant Treasurer, the Minister for Business Precincts, the Minister for Corrections, the Minister for Environment and Climate Change, the Minister for Health, the Minister for Ports and Freight and the Minister for Tourism, Sport and Major Events)
   • Electoral Act 2002 — Division 1 of Part 5 and Part 9A
     (The Act is otherwise administered by the Attorney-General and the Minister for Government Services)
   • Essential Services Act 1958
   • Family Violence Reform Implementation Monitor Act 2016
   • Inquiries Act 2014
   • Melbourne Cricket Ground Act 2009
     (The Act is jointly and severally administered with the Minister for Business Precincts and the Minister for Tourism, Sport and Major Events)
   • Melbourne and Olympic Parks Act 1985
     (The Act is jointly and severally administered with the Minister for Business Precincts and the Minister for Tourism, Sport and Major Events — except:
     • sections 24–28 [these sections are administered by the Minister for Environment and Climate Change])
   • Ombudsman Act 1973 — sections 3–6
     (The Act is otherwise administered by the Attorney-General)
   • Parliamentary Administration Act 2005 —
     • Part 2 and sections 14–17
     • Part 5 (this Part is jointly and severally administered with the Minister for Government Services)
       (The Act is otherwise administered by the Minister for Government Services)
   • Parliamentary Committees Act 2003 — except:
     • sections 7, 7A and 52 (in so far as these sections relate to public interest disclosures about conduct by or in the Victorian Inspectorate [these sections are jointly and severally administered with the Attorney-General])
   • Project Development and Construction Management Act 1994 — except:
     • section 11 in so far as it relates to a project nominated under section 6 for which the Secretary referred to in Part 5A is the facilitating agency (in so far as it does relate to those matters, this section is jointly and severally administered with the Minister for Business Precincts and the Minister for Transport Infrastructure)
     • Part 4 (this Part is administered by the Assistant Treasurer)
     • Part 5A (this Part is jointly and severally administered by the Minister for Business Precincts and the Minister for Transport Infrastructure, except to the extent that it relates to the exercise of powers and functions under Part 9A of the Planning and Environment Act 1987, in so far as it relates to those powers and functions this Part is administered by the Minister for Planning)
     • section 46 (this section is administered by the Minister for Planning)
     • Part 7 (this Part is administered by the Minister for Planning)
     • Parts 8, 9 and 10 (these Parts are jointly and severally administered by the Minister for Business Precincts and the Minister for Transport Infrastructure)
   • Public Administration Act 2004 —
     • Parts 1, 2 and 8, section 67(3)(d) and Divisions 2 and 3 of Part 6 (these provisions are jointly and severally administered with the Minister for Government Services)
     • Part 3
     • Part 5A
     • sections 66(3), 98 and 98A
     • Part 7A
       (The Act is otherwise administered by the Minister for Government Services)
   • Public Records Act 1973 — in so far as the Act relates to public records in the possession of, transferred from or to be transferred from the Cabinet Office
     (The Act is otherwise administered by the Minister for Government Services)
   • Public Safety Preservation Act 1958
   • Public Sector (Union Fees) Act 1992
   • Senate Elections Act 1958
   • Statute Law Revision Acts
   • Subordinate Legislation Act 1994 — sections 5A, 9 and 12G
     (The Act is otherwise administered by the Minister for Government Services)
   • Succession to the Crown (Request) Act 2013
   • Superannuation (Public Sector) Act 1992
   • Vital State Industries (Works and Services) Act 1992
   • Vital State Projects Act 1976 — except:
     • sections 5–16 (these sections are administered by the Attorney-General)
   • Wrongs (Public Contracts) Act 1981

   Acts of Parliament administered by the Minister for Treaty and First Peoples*

   • Advancing the Treaty Process with Aboriginal Victorians Act 2018
   • Aboriginal Heritage Act 2006
   • Aboriginal Lands Act 1970
   • Aboriginal Lands Act 1991, which is jointly and severally administered with the Minister for Environment and Climate Change

   * The Minister for Treaty and First Peoples was formerly known as the Minister for Aboriginal Affairs until 27 June 2022.

   Acts of Parliament administered by the Minister for Industrial Relations

   • Child Employment Act 2003
   • Construction Industry Long Service Leave Act 1997
   • Fair Work (Commonwealth Powers) Act 2009
   • Labour Hire Licensing Act 2018
   • Long Service Leave Act 2018
   • Long Service Benefits Portability Act 2018
   • Outworkers (Improved Protection) Act 2003
   • Owner Drivers and Forestry Contractors Act 2005
   • Public Sector Employment (Award Entitlements) Act 2006
   • Trade Unions Act 1958
   • Wage Theft Act 2020

   Acts of Parliament administered by the Minister for Government Services

   • Constitution Act 1975, section 72
     (The Act is otherwise administered by the Attorney-General, the Minister for Regulatory Reform and the Premier)
   • Electoral Act 2002 — except:
     • Division 1 of Part 5 and Part 9A, which are administered by the Premier and Part 8, which is administered by the Attorney-General
   • Electoral Boundaries Commission Act 1982
   • Land Act 1958, subdivisions 1 and 2 of Division 9 of Part 1, in so far as they relate to the exercise of powers in respect of the land described as Crown Allotment 13A of section 92 at North Melbourne in the Parish of Jika, being the site of the Public Record Office Victoria; the Act is otherwise administered by the Assistant Treasurer, the Attorney-General, the Minister for Corrections, the Minister for Creative Industries, the Minister for Environment and Climate Change, the Minister for Health, the Minister for Ports and Freight and the Minister for Roads and Road Safety
   • Members of Parliament (Standards) Act 1978
   • Parliamentary Administration Act 2005 — except:
     • Part 2 and sections 14–17 (these provisions are administered by the Premier)
     • and Part 5 (Part 5 is jointly and severally administered with the Premier)
   • Parliamentary Precincts Act 2001
   • Parliamentary Salaries and Superannuation Act 1968 — except:
     • sections 6(6), 9K(3), 9K(5), 9L and Part 3, which are administered by the Assistant Treasurer
   • Public Administration Act 2004 — except:
     • Parts 1, 2 and 8, section 67(3)(d) and Divisions 2 and 3 of Part 6 (these provisions are jointly and severally administered with the Premier)
     • Part 3 (this Part is administered by the Premier)
     • Part 5A (this Part is administered by the Premier)
     • sections 66(3), 98 and 98A (these sections are administered by the Premier)
     • Part 7A (this Part is administered by the Premier)
   • Public Records Act 1973 — except:
     • in so far as the Act relates to public records in the possession of, transferred from or to be transferred from the Cabinet Office (in so far as the Act does relate to those matters, the Act is administered by the Premier)
   • Service Victoria Act 2018
   • State Owned Enterprises Act 1992 —Division 2 of Part 2 in so far as it relates to Cenitex
     (The Act is otherwise administered by the Minister for Environment and Climate Change, the Minister for Multicultural Affairs, the Minister for Water and the Treasurer)
   • Subordinate Legislation Act 1994 — except:
     • sections 5A, 9 and 12G (these sections are administered by the Premier)
   • Victorian Data Sharing Act 2017
   • Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019.

   Aboriginal Heritage Act

   Compliance with the Aboriginal Heritage Act

   Under section 192 of the Aboriginal Heritage Act 2006, the Secretary must report on the operation of the Act including:

   • the exercise and performance by authorised officers of their powers, functions and duties under the Act
   • any complaints received in relation to authorised officers
   • actions taken to address those complaints.

   The Act establishes the role of authorised officers and makes provision for appointing authorised officers. The key functions to be carried out by an authorised officer include:

   • monitoring compliance with the Act
   • investigating suspected offences against the Act
   • directing the conduct of a cultural heritage audit to assess the impact of an activity on Aboriginal cultural heritage
   • issuing and delivering stop orders without formal approval if there are reasonable grounds for believing that Aboriginal cultural heritage is under threat from an activity.

   On 30 June 2022:

   • 27 authorised officers, all DPC employees, are appointed under the Act
   • 13 Aboriginal heritage officers, all employees of a Registered Aboriginal Party, are also appointed under the Act.

   All appointees have successfully completed a Certificate IV in Government Investigations within the past five years and receive ongoing training about the operation of the Act. There were no complaints made about authorised officers during this period.

   In 2021–22 authorised officers exercised their powers, functions and duties as set out on the following page.

   Information on the exercise and performance by authorised officers of their powers, functions and duties under the Aboriginal Heritage Act

   Section	Function/power	Exercised
   83	Cultural heritage audit must be conducted under the direction of an authorised officer	No cultural heritage audits were conducted
   84	Give a written report of the findings of a cultural heritage audit to the minister	No written reports were provided to the minister
   159(a)	Monitor compliance with the Act	44 inspections were carried out by authorised officers to monitor compliance with the Act
   159(b)	Investigate suspected offences against the Act	119 investigations were carried out or are ongoing
   159(c)	Direct the conduct of cultural heritage audits	No cultural heritage audits were ordered
   159(d)	Issue and deliver stop orders	Two stop orders were issued or delivered
   159(e)	Report to the Secretary	No reports were required
   165	Present identification card for inspection	Identification cards were presented for inspection on 47 occasions
   166	Enter land or premises with the consent of the occupier	General powers to enter land or premises were used 22 times
   167	Obtain consent to enter land or premises	Land or premises were entered 93 times with the consent of the occupier
   168	Enter land or premises open to the public	Land or premises open to the public were entered 187 times
   169	Enter land or premises for a cultural heritage audit	No land was entered for the purposes of a cultural heritage audit
   170	Search upon entry	Search powers on entering land were executed 283 times
   171	Seizure powers on entry without a search warrant	Seizure powers by consent were not required
   172	Seizure power without consent	Seizure powers without consent were not required on three occasions
   173	Search warrants	Three search warrants were obtained
   176	Receipts for seized things	Three receipts were issued
   177	Security of seized things	Three seized things (records) were required to be secured
   178(4)	Return of seized objects	No seized things were required to be returned
   180	Require the giving of name and address	No one was required to give their name and address
   181	Require the giving of assistance and information	No one was required to provide assistance or information
   182	Take affidavits	No affidavits were taken
   184	Report to be given about entry	No reports were required

   Full details of all powers and functions exercised by authorised officers in previous years can be requested via email to the Director, Heritage Services, First Peoples–State Relations at aboriginal.heritage@dpc.vic.gov.au.

   Building Act

   Compliance with the Building Act

   DPC complied with obligations under the Building Act 1993, the Building Regulations 2006 and associated statutory requirements and amendments. An occupancy permit or certificate of final inspection endorsed by a registered building surveyor is obtained for all upgrades to existing facilities requiring a permit. Design consultants and building contractors engaged are registered practitioners, and registrations are maintained during the course of the work.

   DPC manages the Victorian Archives Centre and Government House and its outbuildings. There are several mechanisms for inspection, reporting and carrying out of maintenance works at these two sites including:

   • regular property inspections conducted by staff, tenants and external contractors
   • independent, formal condition audits undertaken every five years
   • site risk surveys undertaken at least biennially by the Victorian Managed Insurance Authority
   • onsite facilities managers responding to and prioritising identified issues and managing breakdown, preventative and cyclical maintenance contracts.

   Major works projects (greater than $50,000)

   99 Shiel Street, North Melbourne	Replacement of CCTV cameras at the Victorian Archives Centre
   Government House Drive, Melbourne	Continuation of conservation works, including accessibility improvements and upgrade to essential services

   Carers Recognition Act

   Compliance with the Carers Recognition Act

   The department has taken all practical measures to comply with its obligations under the Act. These include:

   Considering the care relationships principles set out in the Act when setting policies and providing services

   For example:

   • ensuring flexible work arrangements are embedded as part of the DPC working culture (in line with requirements under the Gender Equality Act 2020) and are available to all staff for any reason including supporting employees with family and caring responsibilities. During 2021–22 DPC introduced a new Flexible Work Policy to support the way Victorian public service organisations will work in the future
   • embedding a hybrid working model to support diversity, inclusion and a more equitable workplace
   • provision of the Parental Leave Transition Support Coaching Program.

   Ensuring our staff have an awareness and understanding of the care relationship principles set out in the Act

   For example:

   • championing the DPC Enablers Network, a network run by people with disability for people with disability, with an executive sponsor, open to all staff including carers
   • delivering a mental health and wellbeing training program for all staff and leaders including those who have caring responsibilities
   • using qualified psychologists, delivering a range of webinars about wellbeing and working remotely during COVID-19 for all staff including those who have caring responsibilities
   • providing support to all staff through the Peer Support Program and the Employee Assistance Program.

   Gender Equality Act

   Compliance with the Gender Equality Act

   DPC acknowledges gender diversity within our workforce and is committed to developing strategies that promote opportunities for all staff.

   DPC’s obligation under the Gender Equality Act began on 31 March 2020 and requires defined entities including the public sector, local councils and universities to take positive action towards achieving workplace gender equality.

   Under the Act DPC is required to:

   • develop and implement a Gender Equality Action Plan, including results of a workplace gender audit and strategies for achieving workplace gender equality
   • promote gender equality in policies, programs and services that affect the public
   • complete gender impact assessments
   • publicly report on our progress in relation to workplace gender equality.

   The Act also requires defined entities to consider intersectionality when developing strategies and measures to promote gender equality in the workplace.

   DPC has taken appropriate actions to comply with the Act during 2021–22 including completing a workplace gender audit and developing a Gender Equality Action Plan, both of which received compliant report outcomes against the Act from the Commission for Gender Equality in the Public Sector.

   Competitive Neutrality Policy

   Competitive neutrality requires government businesses to ensure that, where services compete or potentially compete with the private sector, any advantage arising solely from their government ownership be removed if it is not in the public interest. Government businesses are required to cost these services as if they were privately owned. The Competitive Neutrality Policy supports fair competition between public and private businesses and provides government businesses with a tool to enhance decisions on resource allocation. This policy does not override other policy objectives of government and focuses on efficiency in service provision.

   DPC continues to ensure Victoria fulfils its requirements on competitive neutrality reporting for government businesses against the enhanced principles as required under the Competition Principles Agreement.

   Disability Act

   Compliance with the Disability Act

   The department has complied with its obligations under the Disability Act 2006. DPC continues to proactively address the key actions under the DPC Disability and Access Inclusion Plan 2021–2025. This plan provides a framework for DPC to ensure equitable access to employment opportunities for people with disability.

   Highlights under the Disability Act during 2021–22 included the following:

   Reducing barriers to persons with a disability obtaining and maintaining employment

   • DPC runs employment programs for people with disability. DPC has previously partnered with the Australian Network on Disability on employment programs such as the ‘Stepping Into’ program.
   • The DPC Workplace Adjustment Policy ensures accessibility for employees who may require adjustments to equipment or process to undertake their roles.

   Achieving tangible changes in attitudes and practices that discriminate against people with a disability

   • DPC has a dedicated Senior Adviser, Disability Access and Inclusion who is active in promoting access and inclusion.
   • DPC will be partnering with the Australian Network on Disability (AND) to deliver disability confidence training to the DPC board in 2022–23.
   • A communications campaign is being undertaken to promote completion and awareness of the key initiatives being undertaken from the DPC Disability Inclusion Action Plan.

   Promoting inclusion and participation in the community

   • DPC hosts the department-level DPC Enablers Network for people with disability, representing the needs, interests and concerns of government employees with lived experience of disability to ensure fair and equitable treatment. The network is supported by a dedicated executive champion – Matt O’Connor, Deputy Secretary, Industrial Relations Victoria.
   • DPC continued our partnership with AND in 2021–22. AND is a national, membership-based, for-purpose organisation that supports organisations to advance inclusion for people with disability.

   Freedom of Information Act

   Compliance with the Freedom of Information Act

   The Freedom of Information Act 1982 (FOI Act) gives members of the public a right to access documents held by DPC. The purpose of the Act is to extend as far as possible the right of the community to access information held by government departments, local councils, ministers and other bodies subject to the FOI Act.

   An applicant has a right to apply for access to any document held by DPC, which comprises documents both created and received by DPC. Other than regular electronic and paper records, applicants may also request access to documents such as maps, films, computer discs and tape recordings.

   The FOI Act allows DPC to refuse access, either fully or partially, to certain documents or information. Examples of documents that may not be accessed include Cabinet documents; certain internal working documents; law enforcement documents; documents covered by legal professional privilege; documents containing personal information; documents containing certain commercial and financial information; and information provided to DPC in confidence.

   If an applicant is not satisfied with an FOI decision made by DPC, under section 49A of the Act they have the right to seek a review from the Office of the Victorian Information Commissioner within 28 days of receiving a decision letter.

   For the 12 months ended 30 June 2022, the FOI Unit received 81 requests for DPC documents, 13 for the Office of the Premier and two for the Office of the Minister for Treaty and First Peoples.

   No requests were received during this period for any other DPC portfolio ministers.

   The department finalised 88 FOI requests to DPC during the 12 months ending 30 June 2022. Sixty per cent of access decisions were made within the statutory time period, 6% were between one and 45 days overdue and 34% were overdue by more than 45 days. DPC also finalised 12 requests for the Office of the Premier and one request for the Office of the Minister for Treaty and First Peoples.

   Ten DPC matters went to the Information Commissioner for review and one complaint about a DPC matter was made to the Information Commissioner.

   Making a request

   Requests to access documents should be made in writing to DPC’s FOI officer. The requirements of a request are set out in section 17 of the FOI Act.

   In summary, a request should:

   • be in writing
   • identify as clearly as possible the documents requested
   • be accompanied by the appropriate application fee (which may be waived if it would cause hardship to the applicant).

   Requests for documents in DPC’s possession should be addressed to:

   Freedom of Information Officer
   Department of Premier and Cabinet
   GPO Box 4912
   Melbourne 3001

   Requests can also be lodged via https://online.foi.vic.gov.au. Access charges may apply once documents have been processed and an access decision has been made.

   Charges may be applied — for example, for costs associated with photocopying and for search and retrieval of documents.

   More information about DPC’s FOI arrangements can be found at www.vic.gov.au/foi-part-ii-statements.

   Local Jobs First Act

   Compliance with the Local Jobs First Act

   The Local Jobs First Act 2003, introduced in August 2018, brings together the Victorian Industry Participation Policy (VIPP) and the Major Project Skills Guarantee (MPSG) policy, which were previously administered separately.

   Departments and public sector bodies are required to apply the Local Jobs First policy in all projects valued at $3 million or more for metropolitan Melbourne or statewide projects, or $1 million or more for projects in regional Victoria.

   MPSG applies to all construction projects valued at $20 million or more. The MPSG guidelines and VIPP guidelines will continue to apply to MPSG-applicable and VIPP-applicable projects respectively where contracts have been entered prior to 15 August 2018.

   During 2021–22 DPC had five Local Jobs First Standard projects valued at $34.2 million under contract. The projects were in metropolitan Victoria. No projects began in regional Melbourne or were deemed as statewide. The MPSG did not apply to this project. Of the four Local Jobs First projects in progress, the expected outcomes are:

   • an average of 100% of local content commitment
   • the retention of 17 jobs (annualised employee equivalent).

   Public Interest Disclosure Act

   The Public Interest Disclosure Act 2012 (formerly the Protected Disclosure Act 2012) encourages and assists people to disclose improper conduct or detrimental action involving public officers and public bodies. The Act provides protection to people who make disclosures in accordance with the Act and establishes a system for the matters disclosed to be investigated.

   DPC is committed to the Act’s objectives. DPC does not tolerate improper conduct by our employees or reprisals against those who make disclosures about such conduct.

   Compliance with the Public Interest Disclosure Act

   The Guide to Making and Handling Public Interest Disclosures, which outlines the system for reporting disclosures of improper conduct or detrimental action by DPC or any of our employees or officers, is available online at www.vic.gov.au/dpc-public-interest-disclosures .

   Public interest disclosures must remain confidential under the law, so it is difficult to be accurate about the number of disclosures in any year. For example, managers or executives can receive public interest disclosures and may report these straight to the Independent Broad-based Anti-corruption Commission (IBAC) without anyone knowing. Equally, people can report directly to IBAC themselves without DPC necessarily knowing.

   There have been no disclosures made to DPC under the Public Interest Disclosures Act that have been notified to IBAC in 2021–22.

   Social Procurement Framework

   During 2021–22 DPC continued the implementation of its Social Procurement Strategy, which was developed in line with Victoria’s Social Procurement Framework.

   In 2021–22 DPC improved our social procurement performance against four objectives:

   • opportunities for Victorian Aboriginal people
   • opportunities for Victorians with disability and disadvantaged Victorians
   • supporting safe and fair workplaces
   • opportunities for Victorian social enterprises.

   Purchases from social suppliers, 1 July 2021 to 30 June 2022

   Social procurement opportunity	Metric	Number of businesses engaged	Actual spend (excl. GST) $
   Opportunities for Victorian Aboriginal people	Total spend with Victorian Aboriginal businesses		6,104,850
   	Number of Victorian Aboriginal businesses engaged	53
   Opportunities for Victorians with disability	Total spend with Victorian social enterprises led by a mission for people with disability and Australian Disability Enterprises		6,026,095
   	Number of Victorian social enterprises led by a mission for people with disability and Australian Disability Enterprises engaged	25
   Opportunities for disadvantaged Victorians	Total spend with Victorian social enterprises led by a mission for the disadvantaged		9,950,544
   	Number of Victorian social enterprises led by a mission for the disadvantaged engaged	48
   Sustainable Victorian social enterprises and Aboriginal business sectors	Total spend with Victorian social enterprises		19,410,470
   	Number of Victorian social enterprises engaged	106

   Summary of contributing activities and initiatives

   • The Multi-functional Devices and Printers State Purchase Contract has been updated with four additional social procurement objectives from each supplier to a total of seven as part of their contractual obligations. Reporting against social procurement objectives will begin from Quarter 1, 2022–23, and this is a great example of working with industry to represent these important needs. Another example of inclusion of social procurement objectives is the State Primary Data Centre contract. DPC expects that this will be represented in the head agreement for Quarter 1, 2022–23.
   • The eService and ICT infrastructure registers are being enhanced to support government buyers that are looking to purchase from social suppliers. This will support government and industry in supporting social traders and will drive opportunities to these types of businesses.
   • Invitations to supply during the financial year included requirements for a minimum of one social procurement objective to be included in supplier proposals. As a result, DPC awarded contracts to the value of $43,000,000 to suppliers who provided a social benefit.
   • DPC’s social procurement achievements from 1 July 2021 to 30 June 2022 include 53 Victorian Aboriginal businesses engaged and $6,104,850 (including GST) of actual expenditure, achieving a 2.3% Aboriginal procurement, exceeding the 1% procurement target for procuring goods and services from Aboriginal businesses, as set through Tharamba Bugheen: Victorian Aboriginal Business Strategy 2017–2021.
   • Through refined procurement and business processes DPC continued to encourage direct spend with Aboriginal suppliers where Aboriginal knowledge and expertise is needed.
   • DPC procured a range of services from several Victorian Aboriginal businesses in 2021–22, including professional advisory and communication services.
   • DPC has a social procurement spend dashboard that is updated monthly so spend is monitored.
   • DPC continues to build on our relationship with Kinaway to identify further initiatives for more procurements with Aboriginal businesses.
   • DPC’s ‘Stay Engaged’ program continued during 2021–22. The program gives people with disability a chance to engage in meaningful employment within DPC through fixed-term paid work placements offered in various areas such as administration and policy.
   • All suppliers engaged via a competitive procurement process with DPC have committed to the Victorian Government Supplier Code of Conduct by signing a commitment letter before the engagement.
   • DPC contributed to social outcomes through Barring Djinang – Coaching and Career Development program, which has enabled approximately 80 Aboriginal and/or Torres Strait participants to progress into leadership opportunities.
   • DPC contributed to social outcomes through the Career Seekers Internship Program by providing the opportunity for approximately 28 disadvantaged Victorians to take part in intern type employment within the Victorian Government.

   Subsequent events

   Refer to the section on subsequent events at Note 8.10 in DPC’s financial statements.

   Other information available on request

   In compliance with the requirements of the Standing Directions of the Assistant Treasurer, details of items listed below have been retained by DPC and are available on request, subject to the provisions of the FOI Act. These items include:

   1. a statement that declarations of pecuniary interests have been duly completed by all relevant DPC officers
   2. details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary
   3. details of publications produced by DPC about itself and how these can be obtained
   4. details of changes in prices, fees, charges, rates and levies charged by DPC
   5. details of any major external reviews carried out on DPC
   6. details of major research and development activities undertaken by DPC
   7. details of overseas visits undertaken, including a summary of the objectives and outcomes of each visit
   8. details of major promotional, public relations and marketing activities undertaken by DPC to develop community awareness of DPC and our services
   9. details of assessments and measures undertaken to improve the occupational health and safety of employees
   10. a general statement on industrial relations within DPC and details of time lost through industrial accidents and disputes
   11. a list of major committees sponsored by DPC, the purposes of each committee and the extent to which the purposes have been achieved
   12. details of all consultancies and contractors including:
       • consultants/contractors engaged
       • services provided
       • expenditure committed for each engagement.

   This information is available on request from:

   Director
   Corporate Governance
   Department of Premier and Cabinet
   1 Treasury Place
   East Melbourne 3002
   Email: dp&c@dpc.vic.gov.au