People
For the 2019-20 financial year, the Authority’s average FTE was 31.0. This is expected to increase to an average FTE of 50 as size and complexity of the Scheme increases.
Financial
Financial strategy
The establishment of the Authority was funded by government through a project that was initially led by Industrial Relations Victoria. Ongoing financial sustainability will be achieved through an administration charge to the Scheme recommended by the appointed actuary and determined by the Governing Board.
No additional amounts are separately charged to employers or workers other than the levy that is paid on a quarterly basis following the submission of quarterly returns by employers in each of the three covered sectors. The current levy rate is set at 1.65% for the community services sector and 1.80% for both the contract cleaning and security sectors.
Summary financial performance for 2020-21
| Projected | < | Budget | > | |
|---|---|---|---|---|
| 2019-20 | 2020-21 | 2021-22 | 2022-23 | |
| Revenue | 5,912,744 | 6,449,186 | 6,250,440 | 6,501,070 |
| Expenses | 5,373,245 | 5,978,588 | 6,212,860 | 6,473,032 |
| Net result | 539,499 | 470,598 | 37,580 | 28,038 |
In the Authority’s Corporate Plan 2019-20, expenses for the 2019-20 financial year were forecast to be $6.0 million against a revenue of $5.3 million (based on previous budget expectations of registered worker numbers). The current forecast for the 2019-20 financial year (which represents a 5% – 10% saving on last year’s estimates) was achieved through a combination of active budget management and some savings arising from reduced compliance activity by the Authority relating to the effects of COVID-19 in the 2019-20 financial year.
The savings due to reduced compliance activity from COVID-19 will be incurred in the 2020-21 financial year. This accounts for the ‘higher-than-expected’ increase in expenses for the 2020-21 financial year.
Summary of key financial performance measures 2020-23
| Projected | < | Budget | > | |
|---|---|---|---|---|
| 2019-20 | 2020-21 | 2021-22 | 2022-23 | |
| No. of Registered Workers | 100,000 | 135,000 | 150,000 | 165,000 |
| Cost per Worker | $53.73 | $44.29 | $41.42 | $39.23 |
The Authority has revised upwards all its forward estimates for registered worker numbers compared to the published Corporate Plan 2019-20 due to a higher registration rate than expected in the 2019-20 financial year.
The Authority’s financial results (including the Scheme financial results) are audited annually by the Victorian Auditor General’s Office (VAGO). The results of the audit are included in the Annual Report published by the Authority and tabled in the Victorian Parliament.
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