Criterion

Budget papers, related updates (e.g. the Mid-Year Economic and Fiscal Outlook) and Appropriation Bills are accurate, delivered within required timeframes and meet the government’s fiscal and policy objectives and legislative obligations.

Source

Corporate Plan 2018–19, page 29

Program 1.1, Finance Portfolio Budget Statements 2018-19, page 24

Result

Substantially achieved

All of the Budget papers and related updates due to 30 June 2019 were produced in accordance with the timeframes and other requirements of the Charter of Budget Honesty Act 1998:

• The 2019–20 Budget was delivered on 2 April 2019.
• The 2018–19 Mid Year Economic and Fiscal Outlook (MYEFO) was released on 17 December 2018.
• The 2017–18 Final Budget Outcome (FBO) was released on 25 September 2018.
• In 2019, the Secretaries of Finance and the Treasury met their obligation under the Charter of Budget Honesty Act 1998 and released the 2019 Pre-election Economic and Fiscal Outlook (PEFO) on 17 April 2019.

Budget estimates continue to be based on external reporting standards, with any departures disclosed as required, consistent with requirements set out in the Charter of Budget Honesty Act 1998.

In relation to the accuracy of budget estimates, Finance reports the following results:

• The difference between first forward-year estimated expenses and the FBO was 1.5 per cent on an accrual basis (target of less than 2.0 per cent difference).
• The difference between Budget estimated expenses and FBO was 1.3 per cent on an accrual basis (target of less than 1.5 per cent difference).
• The difference between revised estimated expenses at MYEFO and FBO was 1.1 per cent on an accrual basis (target of less than 1.0 per cent difference).
• The difference between revised estimated expenses at Budget and FBO was 0.6 per cent on an accrual basis (target of less than 0.5 per cent difference).

Variations between the estimates and final outcome reflect program-specific parameters. Program estimates are regularly reviewed and updated to take account of the best available information to maximise their reliability and accuracy.

Appropriation Bills were introduced within the required timeframes and in accordance with legislative requirements:

• Appropriation Bill (No. 3) 2018–2019, Appropriation Bill (No. 4) 2018–2019 and Appropriation (Parliamentary Departments) Bill (No. 2) 2018–2019 were introduced in the House of Representatives on 14 February 2019.
• Supply Bill (No. 1) 2019–2020, Supply Bill (No. 2) 2019–2020 and Supply (Parliamentary Departments) Bill (No. 1) 2019–2020 were introduced in the House of Representatives on 2 April 2019.
• Appropriation Bill (No. 1) 2019–2020, Appropriation Bill (No. 2) 2019–2020 and Appropriation (Parliamentary Departments) Bill (No. 1) 2019–2020 were introduced in the House of Representatives on 2 April 2019. These Appropriation Bills lapsed upon the dissolution of the Parliament for the 2019 federal election. Following the outcome of the election, Appropriation Bills were re-introduced in the House of Representatives on 25 July 2019.

Analysis

A core activity undertaken by Finance to achieve the ‘advising on expenditure’ element of its purpose is supporting the Minister for Finance and Expenditure Review Committee of Cabinet in the preparation of the Budget and related fiscal updates. In 2018–19, this activity included:

• providing effective, timely and accurate advice on Budget processes to government entities
• ensuring the Budget framework effectively supported decision-making
• informing the Minister for Finance and Expenditure Review Committee on the use of government finances
• coordinating, preparing and delivering accurate and timely Budget estimates and documentation to the Minister for Finance.

In undertaking this activity, Finance advised on the impact of proposed Government decisions on the Government's overall ability to achieve its policy and fiscal objectives.

Finance has identified the delivery of Budget papers, related updates and Appropriation Bills that are accurate, delivered within required timeframes and meet policy and fiscal objectives and legislative obligations as an appropriate measure of Finance’s performance in undertaking this activity.

Budget papers and updates, together with Annual Appropriation Acts, are essential elements of the Australian Government Budget process.

• The Budget papers and related updates support the Budget-related decisions of the Government, providing the fiscal outlook for the Australian economy and highlighting major new initiatives of the Government.
• Annual Appropriation Acts provide annual funding for government operations and programs and also for investment in assets and reduction of liabilities.

Taking into account the timely release of Budget publications and introduction of Appropriation Bills in 2018–19, together with achieving accuracy of Budget estimates targets in two of the four periods assessed, with the remaining two periods assessed showing a result of 0.1 per cent above the target range, this criterion has been assessed as substantially achieved.

Criterion

The government’s financial statements, including monthly statements, are complete, accurate and released publicly on timeframes agreed with the government.

Source

Corporate Plan 2018–19, page 31

Result

Achieved

All of the government’s financial statements were prepared in accordance with publicly agreed timeframes:

• The 2017–18 FBO was released on 25 September 2018.
• The 2018–19 monthly financial statements were provided to the Minister for Finance on average within 21 days of the end of each month since the release of FBO.

The government’s 2017–18 Consolidated Financial Statements were signed by the Finance Minister on 15 November 2018 and received an unmodified report from the Auditor-General on 16 November 2018.

Analysis

Another measure of Finance’s performance in achieving the ‘advising on expenditure’ element of its purpose is through the timely public release of complete and accurate government financial statements.

The Australian Government has a robust financial reporting framework, with key reporting outputs including:

• monthly financial statements, which show how actual expenditure is tracking against the monthly profile and full year estimate
• the FBO, which provides the outcome for the latest financial year with an emphasis on a government finance statistics presentation of the general government sector
• Consolidated Financial Statements, which present the whole-of-government and general government sector financial reports for a financial year.

Monthly financial statements, the FBO and Consolidated Financial Statements are required by legislation. They are integral to the Commonwealth's accrual budgeting and reporting framework and complement the Budget process by providing outcomes against Budget estimates.

Criterion

Commonwealth entities have access to cash on a daily basis.

Source

Corporate Plan 2018–19, page 31

Result

Achieved

The cash needs of each and every Commonwealth entity have been met every day of the reporting period.

Analysis

Finance also contributes to the ‘advising on expenditure’ element of its purpose by managing the daily disbursement of cash to Commonwealth entities for operating purposes.

Finance’s robust financial systems and frameworks support the processing of a daily disbursement of cash through the Central Budget Management System (CBMS) to meet the daily cash requirements of Commonwealth entities. This is crucial, as meeting the funding requirements of entities enables them to continue to deliver on the Government’s policy objectives, including provision of services to the community. In order to ensure that no entity is prevented from delivering its services due to a lack of cash, and to ensure the ongoing operations of government, Finance has a target of meeting all entities’ cash requirements on each day of the financial year. To support this, Finance ensures entities maintain up-to-date forecasts of planned expenditure and has a regularly tested business continuity plan in the event of a disruption to the daily disbursement process.

Criterion

Finance oversight of Modernisation Fund investment ensures government has visibility of progress and outcomes, and informs government decisions around prioritisation and ongoing management of investments to drive improved outcomes.

Source

Corporate Plan 2018–19, page 32

Result

Achieved

Finance has provided advice to the Secretaries APS Reform Committee, and to the Minister for Finance, on the performance of projects, including benefits realisation, under the Public Service Modernisation Fund.

Finance’s advice has led to the reprioritisation of $11.9 million within the Modernisation Fund to drive improved outcomes across projects, consistent with the overall policy intent. For example, reprioritisation has led to additional analytical projects within the Data Integration Partnership for Australia to deliver high-impact, evidence-based insights on priority cross-portfolio policy issues.

As at the end of Quarter 4 2018–19, the Modernisation Fund projects are on track to deliver by 30 June 2020, $296 million has been expended to date, five projects have reached completion and one project has ceased.

Analysis

Responsibility for delivery of Modernisation Fund projects lies with entities, with oversight by the Secretaries APS Reform Committee, chaired by the Finance Secretary. Finance supports the Chair and the Committee to discharge its oversight responsibilities. These responsibilities include recommending to the Finance Minister whether reprioritisation within the Fund could drive improved outcomes.

To inform the Committee’s deliberations, Finance coordinates quarterly status reports among project owners. These reports include a self-assessment of expenditure, delivery confidence, risks and issues, deliverables and benefits.

Finance uses this information, along with further investigation directly with project owners, to identify projects that may be in scope for reprioritisation (projects that have the potential to drive additional outcomes within the policy authority if additional funds were to be provided and those that are unlikely to spend funds or achieve outcomes).

Drawing on Finance’s advice, the Committee provides recommendations to the Finance Minister. The Prime Minister has delegated to the Finance Minister authority to reprioritise funding between agencies and years, up to a threshold amount, to facilitate the delivery of projects within the original policy intent. Other decisions, including funding of new projects, must be brought forward in the MYEFO or Budget processes consistent with the Budget Process Operational Rules. Reprioritisation to date has been managed within the Finance Minister’s delegation.

Criterion

Corporate service functions (e.g. financial, human resources and associated IT systems) for non-corporate Commonwealth agencies are provided through a shared services provider hub arrangement, on common platforms and software.

Source

Corporate Plan 2018–19, page 32

Result

Substantially achieved

Thirty agencies in scope for the Shared Services Program are receiving or starting to receive services through a Hub, with an extension of services now available. In addition to the five core services offered through Managed Service arrangements, in 2018–19 agencies are able to access additional services through Software as a Service arrangements.

Considerable focus throughout 2018–19 has been on efforts to coordinate investment in underlying platforms and software that support the delivery of these services. The Hubs are working together to design a common Enterprise Resource Planning (ERP) solution that could be shared/reused among some or all of the Hubs.

As part of progressing the Program, Finance undertook extensive work in 2018-19 to prepare for onboarding to the Service Delivery Office Hub, which occurred successfully on 1 July 2019.

Analysis

Finance has policy and program responsibility for the whole-of-government Shared Services Program. This performance criterion demonstrates the implementation status of the Program by tracking the number of agencies that are receiving corporate service functions through a shared services provider Hub arrangement and consolidation of the underlying corporate IT systems (or ERP systems) used by the Hubs.

The number of agencies receiving services and the services delivered are self-reported to Finance through regular engagement with the Hubs.

The Hubs have also completed a baseline maturity assessment. Through this assessment, the Hubs self-report their progress against the Program’s core criteria, including the requirement that the Hubs move toward full cost recovery arrangements and have governance arrangements that are separate to those of their host entity (functional independence). Hubs are invited to update their progress against the baseline through their regular engagements with Finance (updates are provided iteratively as there is no annual reporting process at this stage).

While the number of agencies that are engaged with the Hubs has not substantially increased since last financial year, there has been an extension of the services available and considerable work to modernise the underlying ERPs in use by the Hubs.

In addition to the five core transactional services (payroll, accounts payable, accounts receivable, ledger management, credit card management), which are available through Managed Services, the Hubs are now able to offer additional services based on client needs through Software as a Service arrangements.

The technology landscape is evolving which creates challenges and opportunities for the Program. For example, five of the Hubs use a SAP-based ERP. In 2025, SAP will no longer actively support this ERP version, so the Hubs will need to move to an alternative solution or pay a premium for maintenance.

During 2018–19, a significant program of work was undertaken to inform the future direction and architecture of the program in the context of the technology landscape. This included the development of a Shared Services Roadmap which outlines the strategic intent and the planned approach to achieving benefits through coordinated investment in underlying ERP systems. The Roadmap builds on work undertaken, involving 14 agencies, to co-design a whole-of-government ERP platform to enable modern and streamlined processes for Australian Public Service (APS) organisations (referred to as GovERP).

GovERP will allow the Hubs to invest once in a new ERP and share the asset, avoiding the costs of each Hub investing separately for the same capability. Costs avoided will be identified in 2019–20 as part of the detailed planning and implementation process. The onboarding of agencies to shared services arrangements will be influenced by the introduction of the common ERP— here is a need to ensure that agencies do not incur unreasonable costs by onboarding to the old technology.

Criterion

Entities currently participating in the whole-of-government grant administration arrangements must implement existing and proposed in-scope grant activity via the Government’s Community and Business Grants Hubs using the Hubs’ standardised grant process and ICT grants management services, replacing the multiple ICT systems and business processes currently in operation.

Source

Corporate Plan 2018–19, page 33

Result

Achieved

100 per cent of grants originally identified through the program are either being delivered through a Hub (90 per cent) or have received a Government deferral or exemption (10 per cent) based on exceptional circumstances.

Analysis

Finance has program responsibility for the whole-of-government grants administration arrangements through the Streamlining Government Grants Administration Program (SGGA). The SGGA measure ceased on 30 June 2019.

Of the identified 363 grants to be delivered or scheduled to transition to a Grants Hub by 30 June 2019, the Program has achieved 90 per cent (328) transition. The remaining grants have received an exemption (are no longer in scope for Hub delivery) or a deferral (with a new date agreed by Government for delivery through a Hub due to exceptional circumstances).

As the SGGA measure has ceased, the deferred grants will be monitored as part of ‘business as usual’ Hub arrangements. That is, all new grants that are in scope for Hub delivery are identified through the Budget process. The Hubs and the granting agency agree a transition schedule. The Hubs report progress to Finance on a quarterly basis or as otherwise agreed.

Criterion

Finance participation in the Data Integration Partnership for Australia contributes to an increase in Commonwealth public sector analytics capability and use of data to inform public policy.

Source

Corporate Plan 2018–19, page 34

Program 2.2, Finance Portfolio Budget Statements 2018-19, page 42

Result

Substantially achieved

In 2018–19, Finance delivered the prototype Government Protected Data Exchange (GovPDX) solution, which will enable Commonwealth agencies to share and analyse Protected Data securely, to support policy development. Finance’s Government Business Analytical Unit (GBAU) is trialling GovPDX before onboarding other agencies and datasets from 1 January 2020.

The GBAU built and distributed a data model and visualisation tool to 32 agencies participating in a Productivity Pilot. The data model provides a nuanced analysis of APS data that will help to inform policies to support a more productive public sector and increase the visibility of workforce planning measures.

As part of this work, the GBAU has analysed APS workforce movements, providing a current state assessment of the mobility patterns across the APS over a five-year period that can assist senior leaders to consider longer-term workforce strategies to develop capability.

Analysis

This criterion contributes to driving public sector productivity and strengthening our capabilities and enablers. The delivery of GovPDX and the establishment of the GBAU is enabling Finance to take a data-driven approach to inform public sector and government administration.

The Department of the Prime Minister and Cabinet (PM&C) has established the Data Integration Partnership for Australia (DIPA) outcomes framework, which includes quarterly reporting of DIPA-funded projects to the Deputy Secretary ofthe DIPA Board. Finance provides quarterly reports on the progress of GovPDX, including expenditure, deliverables and benefits realisation.

The Productivity Pilot is an initiative of the Secretaries APS Reform Committee delivered through the GBAU, one of the DIPA analytical Hubs located within Finance. The Pilot reports to the Committee through the Modernising the Public Sector Roadmap implementation status reports, coordinated by Finance (refer to the Roadmap criterion immediately following).

GBAU mapped approximately 50,000 promotions and transfers of staff over five years. In 2018–19, this analysis provided the Secretaries APS Reform Committee with insight into mobility patterns that will assist longer-term workforce strategies, including by highlighting where there might be opportunities to optimise capability development that can occur through staff moving between agencies.

Criterion

Finance oversight of activities under the Modernising the Public Sector Roadmap supports better services to citizens and businesses, delivered more efficiently – to build trust in government.

Source

Corporate Plan 2018–19, page 34

Result

Achieved

Throughout 2018–19, Finance has provided advice to the Secretaries APS Reform Committee on the progress of 25 initiatives being delivered under the Modernising the Public Sector Roadmap.

Of the 25 projects, all are on track, with one project successfully completed. The preliminary outcomes of five of the initiatives have informed the recommendations of the Independent Review of the APS.

Each initiative has its own benefits realisation plan, aligned to the Roadmap’s objective, to improve services for citizens and businesses in the most efficient way possible.

Analysis

This criterion supports the Secretaries APS Reform Committee (chaired by the Secretary of the Department of Finance) in performing its strategic oversight role of the Modernising the Public Sector Roadmap, which outlines a number of new and existing initiatives that are expected to contribute to better services for citizens and businesses delivered by a more efficient public service.

Each project under the Roadmap has a separate implementation and benefits realisation plan, aligned to the broad Roadmap objectives. Individual project leads are responsible for project delivery and benefits realisation.

Finance coordinates high level status reports from project leads and provides advice to the APS Reform Committee on progress. The APS Reform Committee calls upon individual project leads to present ‘deep dives’ as needed (reporting against that project’s specific objectives).

Status reports indicate that all initiatives are on track to deliver their intended outcomes, with the following delivered to date:

• an APS-wide framework for engagement and participation
• pilot design for mobility/secondments
• Executive Level 2 (EL2) talent assessment and development pilot
• first stage assessment of APS classification system project to explore enabling new technologies
• GovTEAMs collaboration platform
• Centre of Procurement Excellence
• productivity and Automation Centre of Excellence
• proof of concept for a whole-of-government ERP
• trial of new approach to prioritising major departmental investment.

In 2018–19, as part of the Productivity Pilot, Finance established baseline metrics and undertook initial analysis to provide an indication of what makes a high-performing team in the context of delivering better services to citizens and businesses, in the most efficient way possible. This work is being presented to the APS Reform Committee regularly to guide future decisions.

PM&C is responsible for a citizen experience survey, which provides the Committee with another input to guide the Roadmap.

Criterion

Finance ensures the Resource Management Framework is maintained as fit-for-purpose framework for the proper use of public resources, under which Commonwealth entities and companies understand their governance and accountability obligations, and are equipped and supported to meet them.

Source

Corporate Plan 2018–19, page 35

Program 2.1, Finance Portfolio Budget Statements 2018-19, page 39

Result

Achieved

The Independent Review of the operation of the PGPA Act and Rule, undertaken by Elizabeth Alexander AM and David Thodey AO, was completed in September 2018. It found that the PGPA Act and Rule established a coherent principles-based system of governance and accountability, and a performance framework, for the Commonwealth, comparing favourably with similar frameworks in other countries.

The annual Chief Financial Officer (CFO) Survey was undertaken between December 2018 and January 2019. The survey results indicate satisfaction with Finance’s guidance and e-learning modules supporting the PGPA Act and framework.

Finance’s ongoing engagement with new accountable authorities continues to be a measure of the broader support provided to Commonwealth entities to strengthen governance and accountability by providing systems of support, through web-based information and face-to-face meetings, for new accountable authorities to understand their duties in governing their entity.

Analysis

The PGPA Act is the cornerstone of a flexible resource management framework that enables accountable authorities to tailor resource management to the operating context of their entity. Finance supports entities on the application of the framework through comprehensive and up-to-date guidance, tools and advice.

The Independent Review of the operation of the PGPA Act and Rule considered the support provided to Commonwealth entities including reviewing guidance on the PGPA Act and Rule issued by Finance, and consideration of other strategies such as Communities of Practice, utilised to support entities.

The CFO Survey is used as a proxy measure to inform Finance on how well Commonwealth entities and companies understand their obligations underthe PGPA Act and are supported by Finance to meet these obligations. In 2018–19, 85 CFOs of Commonwealth entities and Commonwealth companies completed the Survey. The Survey results indicated that CFOs believe that the PGPA Act provides a flexible framework that enables internal controls to be applied appropriately to Commonwealth entities’ and Commonwealth companies’ operating contexts.

Finance also supports new accountable authorities to understand and apply the framework to support improved governance outcomes.

Criterion

The government and key Parliamentary committees have confidence that public resources are used efficiently, effectively, economically and ethically.

Source

Corporate Plan 2018–19, page 36

Result

Achieved

As at 30 June 2019, there were no reports published in 2018–19 by the Australian National Audit Office (ANAO) or the Joint Committee of Public Accounts and Audit (JCPAA) identifying adverse findings on the PGPA Act and associated rules.

Analysis

This criterion uses ANAO audit reports and JCPAA inquiry reports as a proxy measure of Finance’s performance in implementing and maintaining the PGPA Act and associated rules supporting the efficient, effective, economical and ethical use of public resources. It is a measure of how effective the various products and services that Finance provides are in assisting Commonwealth entities to meet the requirements of the PGPA Act.

The ANAO conducted a number of performance audits that were related to the PGPA Act and rules, including:

• Report No. 17—Implementation of the Annual Performance Statements Requirements 2017–18
• Report No. 33—Governance and Integrity of the Northern Australia Infrastructure Facility
• Report No. 34—Effectiveness of Board Governance at Old Parliament House Report No. 35—Governance of the Special Broadcasting Service Corporation
• Report No. 36—Effectiveness of Board Governance at the Australian Institute of Marine Science
• Report No. 37—Effectiveness of Board Governance at the Sydney Harbour Federation Trust.

These reports contained no adverse findings on the PGPA Act and associated rules. However, they included commentary on the application of the PGPA Act by a number of Commonwealth entities. Finance monitors this commentary to identify areas where improvements could be made across the relevant requirements and guidance material to support improved implementation of the resource management framework.

Criterion

The PGPA Act and Rule provisions, and Finance’s support services, enable achievement of the objectives of the PGPA Act.

Source

Corporate Plan 2018–19, page 36

Result

Achieved

The Independent Review of the operation of the PGPA Act and Rule undertaken by Mr David Thodey AO and Ms Elizabeth Alexander AM was tabled in Parliament on Wednesday 19 September 2018.

The Review found that the PGPA Act and Rule established a coherent principles-based system of governance and accountability, and a performance framework, for the Commonwealth. Finance has begun implementation of the Review recommendations, which will be broad reaching and involve consultation with Commonwealth entities and stakeholders. A number of recommendations have been completed.

Analysis

The objectives of the Independent Review were to:

• examine whether the operation of the PGPA Act and Rule is achieving the objects of the PGPA Act in a manner consistent with the guiding principles
• identify legislative, policy or other changes or initiatives, to enhance public sector productivity, governance, performance and accountability arrangements covered by the PGPA Act
• examine whether policy owners’ implementation of the PGPA Act and Rule has appropriately supported their operation in Commonwealth entities.

The Review involved broad consultation with other parties and stakeholders, including the JCPAA, the ANAO, key staff of Commonwealth entities and Commonwealth companies, and international jurisdictions. Written submissions were also invited.

The Review report was referred to the JPCAA for their consideration and the Committee's media release of 21 December 2018 noted their intent to monitor the implementation of the recommendations through regular reports from Finance.

The Minister for Finance tabled a statement on the Government’s response to the Review. It states that the Government accepts, in principle, 48 out of 52 recommendations of the Review that are within its responsibility.

Criterion

Better performance information is available to the Australian Parliament and the public.

Source

Corporate Plan 2018–19, page 36

Result

Achieved

The Independent Review of the operation of the PGPA Act and Rule noted that the Commonwealth Performance Framework provides a good platform for improved planning and performance measurement and that practice is maturing.

The basis for assessment of this criterion has changed in response to the recommendations of the Independent Review and JCPAA Report 469.

Analysis

From the 2018–19 reporting period, Finance has changed the approach to analysing and assessing corporate plans and annual performance statements. A whole-of-cycle assessment will be adopted in response to Recommendation 4 of JCPAA Report 469 (Finance should provide a yearly report to the Committee on the above matters by way of a snapshot on the ‘health’ of the Commonwealth performance framework, with this report to also be published on the Finance website) and Recommendation 10 of the Independent Review (the Department of Finance should develop ‘lessons learned’ papers that cover complete performance cycles to identify good-practice examples of a clear read of performance information across portfolio budget statements, corporate plans and annual reports). This involves assessing the corporate plan, Portfolio Budget Statements and annual performance statements as a whole at the end of each reporting period, rather than as individual components of the Commonwealth Performance Framework at the time of publishing. This approach will take account of issues such as a clear line of sight across these documents. The JCPAA will be provided with an annual report of the findings of the analysis and assessment, including the identification of better practice examples. This report will be published on the Finance website.

The analysis and assessment of the 2018–19 reporting period will be undertaken when annual performance statements are tabled in Parliament in entity annual reports, which generally occurs in October and November. As a result, the findings of the report on the 2018–19 period will be provided in Finance’s 2019–20 annual performance statements. A pilot of the new approach based on the 2017–18 reporting period is being undertaken to develop and test a methodology to assess whole-of-cycle reporting.

Criterion

Investment mandates are set for each Australian Government Investment Fund which assists in achieving the financial and risk objectives and are consistent with the policy, regulatory and legislative framework.

Source

Corporate Plan 2018–19, page 37

Program 2.8, Finance Portfolio Budget Statements 2018-19, page 50

Result

Achieved

The Future Fund Management Agency has advised that, at 30 June 2019, the benchmark rates of return for the Future Fund, the Medical Research Future Fund and the DisabilityCare Australia Fund, the Building Australia Fund and the Education Investment Fund have been met when measured over the medium and long term.

Finance advised the Government and assisted in drafting legislation to establish the Aboriginal and Torres Strait Islander Land and Sea Future Fund from 1 February 2019. Investments from the former Land Account are being transitioned into investments with a higher return potential, in line with the investment mandate for the Fund.

Analysis

Finance supports the Government through implementing a policy and legislative framework that facilitates maximising the returns on investment funds managed by the Future Fund Board of Guardians.

Finance provides advice to the Government on investment mandates and governance arrangements for the Government’s Investment Funds to maximise the value of the Funds to the Government. This includes advice on credits to the Funds and debits for payments from the Funds. The Funds are the:

• Future Fund, which seeks to assist the Government to meet unfunded superannuation liabilities
• DisabilityCare Australia Fund, which seeks to enhance the Commonwealth's ability to reimburse state and territory, and Commonwealth governments for expenditure relating to the National Disability Insurance Scheme
• Medical Research Future Fund, which seeks to provide grants of financial assistance to support medical research and medical innovation
• Aboriginal and Torres Strait Islander Land and Sea Future Fund, which seeks to make payments to the Indigenous Land and Sea Corporation
• Building Australia Fund
• Education Investment Fund.

The Building Australia Fund was abolished after the 2018–19 reporting period ended.

Criterion

The Commonwealth government’s civilian superannuation schemes are effectively administered.

Source

Corporate Plan 2018–19, page 37

Program 2.7, Finance Portfolio Budget Statements 2018-19, page 49

Result

Achieved

Finance provided advice to the Government on policy, legislative, governance and other matters relevant to the Commonwealth civilian, parliamentary, judicial and governors-general superannuation arrangements.

The operational and administrative objectives for the superannuation schemes administered by Finance were met—including benefit payments, pensions and contributions processing and the dispatch of members’ statements.

A new IT system to administer the schemes is being procured to improve efficiency of operations. The new IT system will be operational by the end of the 2019 calendar year.

Analysis

Finance supports the Government through implementing a policy and legislative framework for the Commonwealth civilian, parliamentary, judicial and governors-general superannuation schemes that is consistent with the Government’s broader prudential requirements.

The Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) and the Public Sector Superannuation Accumulation Plan (PSSAP) remain regulated superannuation schemes.

In 2018–19, Finance advised the government and assisted in drafting legislative instruments to provide membership of the CSS, PSS and PSSAP to certain Australian Securities and Investments Commission employees and employees of the National Housing Finance and Investment Corporation.

In 2018–19, Finance also provided advice to the Minister on four appointments to the Board of the Commonwealth Superannuation Corporation, which is the trustee and administrator of the CSS, PSS and PSSAP. The appointments were finalised before 30 June 2019.

Finance administers the Parliamentary Contributory Superannuation Scheme, the Judges Pension Scheme and the Governors-General Pension Scheme as well as the Death and Disability arrangements for Federal Circuit Court Judges. Benefit and pension payments were paid in accordance with the prescribed timeframes.

In 2018–19, Finance successfully implemented a new framework (Member Account Attribute Service) for the reporting of member accounts to the Australian Taxation Office that fulfilled its statutory reporting obligations for the superannuation schemes it administers.

Criterion

Finance works with external stakeholders to develop, implement and maintain systems and policies to support a fair, efficient, and transparent procurement framework for the Australian Government and its suppliers.

Source

Corporate Plan 2018–19, page 38

Program 2.5, Finance Portfolio Budget Statements 2018-19, page 46

Result

Achieved

Finance worked proactively and engaged regularly with Commonwealth entities and external stakeholders through a variety of mechanisms to improve procurement practices.

Analysis

Finance develops, implements and maintains systems and policies to support a fair, efficient and transparent procurement framework for the Australian Government and its suppliers.

Procurement is strategically important to all government agencies because it supports the delivery of Government policies, programs and services. Poor procurement processes can lead to sub-optimal outcomes, such as delays or additional costs to address problems.

In 2018–19, Finance’s management of the procurement framework included:

• providing advice to Commonwealth entities about procurement policy and administration, including technical advice on government procurement to support free trade negotiations
• updating the Commonwealth Procurement Rules to, among other things, reflect outcomes from our free trade arrangements
• engaging with key industry and government stakeholders through the Procurement Consultative Roundtable
• launching the Centre of Procurement Excellence (CoPE), and implementing complementary initiatives, including refreshing and redesigning the industry-facing Selling to Government website; and establishing a CoPE Steering Group, comprising representatives from key Commonwealth entities and the business community.
• maintaining and supporting AusTender, the Australian Government’s centralised procurement information and e-tendering system, including completing a major software re-platform project
• developing intuitive and user-friendly self-service procurement tools, such as ClauseBank (a repository of pre-drafted optional contract clauses); andthe Australian Government Contract Management Guide.
• developing comprehensive guidance to assist agencies to implement and comply with the new complaints arrangements established under the Government Procurement (Judicial Review) Act 2018.

Criterion

Whole-of-Australian-Government (WoAG) procurement arrangements for non-ICT corporate services (e.g. travel bookings and major office equipment) generate savings for Commonwealth entities that access these arrangements.

Source

Corporate Plan 2018–19, page 38

Result

Achieved

Recent procurement processes have established price savings for entities. Targeted benchmarking of prices through our whole-of-government arrangements confirm that savings and efficiencies have been achieved through negotiated prices and behavioural change.

Analysis

Finance delivers savings and efficiencies to entities by:

• analysing expenditure data to identify trends
• identifying and encouraging more efficient purchasing behaviour
• negotiating prices that deliver value for money products and services
• ensuring that the objectives of coordinated procurements are achieved.

Criterion

Comcover is financially sustainable.

Source

Corporate Plan 2018–19, page 38

Result

Achieved

Comcover, which is self-funded through the collection of annual fund member contributions, continues to deliver cost-effective services that encourage agencies to effectively manage insurable risk.

Analysis

Comcover was established as a self-managed fund in July 1998 to implement the Government’s self-managed insurance policy. It is mandatory for all Commonwealth entities that are subject to the PGPA Act and classified in the general government sector to be Comcover members.

Outstanding claims are actuarially assessed each quarter and annual risk-based premiums are set based on actuarial advice regarding the expected cost of claims in the policy year and administration expenses. By providing a clear price signal, these risk-based premiums encourage agencies to effectively manage insurable risk.

As at 30 June 2019, Comcover had a claims liability of $471.5 million, with cash reserves of $518.3 million in the Comcover Special Account. It is anticipated that Comcover will be able to meet its liabilities as and when they fall due, with the cash balance adequate to cover at least four years of normal claims payment experience. Information on the financial performance and position of the scheme is included in the Department’s financial statements.

Criterion

Comcover assists Commonwealth entities to ensure the appropriate treatment of insurable risks and provides a consistent, whole-of-Australian-government approach to the management of claims against the Commonwealth.

Source

Corporate Plan 2018–19, page 39

Program 2.4, Finance Portfolio Budget Statements 2018-19, page 45

Result

Achieved

Results from the 2018–19 Risk Management Benchmarking Program show that the overall risk maturity of Comcover fund members increased by 1.9 per cent in 2018–19. Increases in maturity were recorded across each of the nine elements of the Commonwealth Risk Management Policy. The greatest increase, of 3.6 per cent, was observed for element seven—Understanding and managing shared risk, with the lowest increase (0.3 per cent) observed for element five—Developing a positive risk culture.

Analysis

Comcover supports entities to obtain the knowledge, skills and expertise they need to successfully implement and integrate risk management in their organisations. Throughout 2018–19, Comcover provided entities with a range of risk management services including:

• training to 2,460 officials from 101 entities through a comprehensive training program in risk management, which includes workshops, e-learning and workplace support
• better practice guidance, case studies and access to risk management tools and consultancy services, which assists entities to manage risk effectively
• advice and support to entities on risk management issues, including tailored advice and the development of specific risk management tools
• a Comcover Legal Seminar Series to highlight current and emerging risks
• the annual Risk Management Benchmarking Program, which enables fund members to self-assess their risk management capability against the nine elements of the Commonwealth Risk Management Policy using a risk maturity model.

These services contribute directly to improving the risk maturity of entities.

The 2018–19 Comcover Awards for Excellence in Risk Management recognised exceptional and inspiring examples of risk management by Commonwealth entities. Eleven nominations were received in the Enterprise Wide and Risk Initiative categories with six awards presented across both categories.

Criterion

In accordance with government targets:

• better utilisation of office space leased by non-corporate Commonwealth entities
• absorb Commonwealth entities’ lease requirements into existing vacant office accommodation where it is feasible to do so (Operation Tetris)
• ensure that leases and other property services are delivered through coordinated procurements
• continued rationalisation, through divestment, of the property portfolio in 2018-19 to ensure it continues to meet contemporary requirements.

Source

Corporate Plan 2018–19, page 39-40

Program 2.3, Finance Portfolio Budget Statements 2018-19, page 44

Result

Achieved

The Commonwealth is continuing to better utilise leased office space, including through implementation of the whole-of-government Leasing Strategy and the coordinated procurement arrangements for leasing and property services. As of 30 June 2019, 75 per cent of non-corporate Commonwealth entities have transitioned to the coordinated arrangements.

The 2018 Australian Government Office Occupancy Report, published in April 2019, showed the Australian Public Service reduced its leased office footprint by 1.5 per cent since 2016, and the number of office accommodations that meet the occupational density target increased from 22.1 per cent in 2016 to 31.6 per cent in 2018.

The divestment program is ongoing. Since 1 January 2015, 138 properties have been sold, with gross proceeds of over $222 million. A further 25 properties are on the program for divestment.

Analysis

Finance is responsible for the:

• policies and legislation that form the Commonwealth’s Property Management Framework (Property Framework), including development and implementation of policies, and advising entities on policy interpretation and obligations. The Framework establishes the principles for the efficient, effective, economical and ethical use of property resources and applies to property leased and owned by non-corporate Commonwealth entities
• management of whole-of-government Property Services Coordinated Procurement arrangements, the whole-of-government Leasing Strategy and management of the Government’s Strategic Property Adviser
• oversight, management and support to entities on the Commonwealth’s leased and owned property interests, including data through the online Australian Government Property Register and the annual Office Occupancy Report
• the Lands Acquisition Act 1989, and for administering relevant provisions of the Public Works Committee Act 1969, including advising the Minister on exercising statutory powers
• management of the Australian Government's domestic non-Defence property portfolio (including acquisitions and divestments when and as required) and the construction and delivery of domestic non-Defence major capital works projects (when and as required by Government).

Finance is demonstrating its contribution to the purpose of public sector resourcing and transformation through reforming and transforming the management and operations of Commonwealth property assets and interests.

Finance continues to build efficient Commonwealth property outcomes through:

• the whole-of-government coordinated procurement of property services to leverage the Commonwealth’s buying power
• the whole-of-government Leasing Strategy to capitalise on vacant Commonwealth space and undertake joint approaches to market (where practicable) for new space
• the National Property Divestment Program to streamline the Commonwealth’s property holdings
• strategic analysis and reporting of property data to assist entities to meet their policy, regulatory, property and work health and safety responsibilities.

Finance continues to reduce Commonwealth property holdings and therefore ongoing maintenance costs, through divestment of properties that are surplus to requirements, in accordance with the Commonwealth Property Disposal Policy.

A commitment to genuine engagement with external stakeholders, through formal governance and informal arrangements, has provided an open channel of communication to strengthen linkages and collaboration between Finance and entities as we deliver these and other Commonwealth property-related initiatives.

Criterion

Facilitate and monitor GBE delivery of the government’s key infrastructure priorities, including Western Sydney Airport, Inland Rail and Naval Shipbuilding.

Source

Corporate Plan 2018–19, page 40

Result

Achieved

Finance, in collaboration with the relevant Shareholder Departments, has implemented governance arrangements to facilitate the delivery of some of the Government’s key priority projects and initiatives.

A key achievement in Naval Shipbuilding was the successful implementation of ASC Reform, with the separation of ASC Shipbuilding Pty Ltd from the ASC Group in December 2018 and its transfer to BAE Systems Australia to build the Hunter Class Frigates. This required the execution of a commercial transaction to deliver sovereign naval shipbuilding capability that supports the Government’s continuous Naval Shipbuilding program now and into the future.

Finance, in collaboration with the Department of the Environment and Energy, has provided advice to Government to facilitate the decision to invest in Snowy Hydro Limited for the delivery of Snowy 2.0. The Snowy 2.0 Taskforce provided advice to Government, resulting in the Commonwealth’s decision to support delivery of the project including an equity investment of $1.38 billion over six years, subject to Snowy Hydro achieving financial close on the project and the commencement of the main project works, expected in 2020.

Finance continues to support Australian Rail Track Corporation (ARTC) in progressing to the construction stage for Inland Rail, with a sod-turning held on the Parkes to Narromine section on 13 December 2018. Through the provision of advice to Government and ARTC, Finance also assisted ARTC to release the Inland Rail Public Private Partnership Expression of Interest request on 29 March 2019.

Finance, through the provision of advice to Government and Western Sydney Airport, has supported the commencement of construction onsite and the naming of the airport as Western Sydney International (Nancy-Bird Walton) Airport. The timely achievement of these activities has enabled Western Sydney Airport to remain on track to commence airport operations by 2026.

Analysis

Finance provides advice to the Australian Government relating to its Government Business Enterprises (GBEs) and other commercial entities.

A GBE is a Commonwealth entity or Commonwealth company that is prescribed by the rules (section 8 of the PGPA Act). Section 5 of the PGPA Rule prescribes nine GBEs (two corporate Commonwealth entities and seven Commonwealth companies).

Finance’s primary tasks in relation to GBEs are to:

• provide sound strategic and analytical advice to the Government, in particular by engaging with the GBEs, analysing their operations and their environment, and consulting with stakeholders
• action the Government's decisions including communicating objectives
• ensure that there is a robust and sound governance framework in place by initiating change and contributing to policy development.

Finance regards its effectiveness in facilitating and monitoring GBE delivery of the Government’s key infrastructure priorities as a valuable contribution to the public sector resourcing and transformation element of Finance’s purpose.

Criterion

Continue to encourage ongoing efficiency and financial sustainability in GBEs.

Source

Corporate Plan 2018–19, page 41

Result

Achieved

Finance continues to provide assistance to Commonwealth GBEs with respect to corporate planning, financial and operational performance and other significant programs of work. Advice is provided on a regular basis to Shareholder Ministers on the compliance and performance of the GBEs, based on information provided in corporate plans, quarterly reports and annual reports as well as regular interactions with the GBEs. Further work is being undertaken to ensure best practice regarding both the oversight of GBEs and the consistency and quality of the analysis and briefing.

The second GBE Company Secretaries Forum, held in Adelaide in March 2019, provided an opportunity to bring company secretaries and Shareholder Departments together to facilitate shared learnings, experiences and discussions on best-practice approaches. It also provided an avenue for attendees to build a network of professional contacts.

Representatives from eight GBEs and four Shareholder Departments attended the day, with topics discussed including corporate plans, caretaker conventions and the PGPA Act. The Forum was well received by all attendees and it was an effective way to share information, ideas and learnings.

Analysis

Another valuable measure of performance against the public sector resourcing and transformation element of Finance’s purpose relates to Finance’s oversight of GBEs. This performance criterion uses a range of indicators to measure Finance’s performance in encouraging Commonwealth GBE efficiency and financial sustainability, including:

• the provision of advice to Shareholder Ministers on the performance of the GBEs
• the compliance of GBE corporate plans with the PGPA Act and GBE Guidelines
• delivery of activities to support GBE efficiency, appropriate risk management, financial sustainability and knowledge sharing, such as the GBE Company Secretaries Forum.

Criterion

As a Shared Service hub, the Service Delivery Office provides quality services to client entities.

Source

Corporate Plan 2018–19, page 42

Program 2.6, Finance Portfolio Budget Statements 2018-19, page 48

Result

Achieved

In 2018–19, the Service Delivery Office (SDO) continued to mature as a Shared Service Hub. The SDO worked to further build the Shared Service Program and transitioned two new clients to a cost-effective, high-quality shared services offering. These new clients commenced receiving services from the SDO on 1 July 2019.

The SDO continued to deliver on its agreed service levels for clients during 2018–19. The SDO achieved an average service level of 96.42 per cent across all services, managing on average:

• 2,379 credit cards per month
• 5,323 payments received and debts per month
• 2,353 payments per month
• 5,895 active Hub users per month
• 732 HR master data amendments per month
• 4,811 pays per pay period.

Analysis

GovTEAMS forms part of both the Secretaries APS Reform Committee program and the Finance Transformation Plan.

Finance is committed to being a driver of transformation in the public sector and a key focus is building capability across the APS. GovTEAMS supports this goal by facilitating APS-wide collaboration in a modern and innovative way. GovTEAMS empowers individuals with the tools they need to build their digital capability and increase their productivity.

The GovTEAMS Program has adopted an agile and adaptable approach in the delivery of GovTEAMS to government, achieving success in a resource constrained and dynamic environment.

The GovTEAMS business case forecast productivity gains of $6.9 million in year one, based on 10,000 users for the entire year. The actual GovTEAMS average monthly user count from 1 January (launch date) to 30 June was 9,500. Based on actual user counts, the original benefits estimation model forecasts actual productivity gains of $6.6 million for the 2018–19 financial year.

Within Finance, the GovTEAMS’ video-conferencing facility was successfully used by Finance staff members to participate in the Malaysia-Australia Economic Workshop. Using GovTEAMS enabled effective participation in the Workshop while saving the cost of international travel.

Criterion

Commonwealth entities and companies have access to GovTEAMS, a new generation platform to provide a single environment for both internal and external collaboration across government to improve public sector productivity.

Source

Corporate Plan 2018-19, page 43

Result

Substantially achieved

The GovTEAMS platform is successfully operating with modern collaboration tools such as Chat, Online Audio and Video Meetings, Online Profiles, Social Feeds and File Sharing available to government employees and their invited external guests for 99 per cent of the time in office operating hours.

User adoption rates for 2018–19 reached approximately 19,500 registered users by 30 June 2019.

All active GovDEX communities were successfully migrated to GovTEAMS in May 2019. Many existing GovDEX communities transitioned to GovTEAMS before their communities were migrated. The end-of-year user count in GovTEAMS exceeded the number of active GovDEX users.

Analysis

GovTEAMS forms part of both the Secretaries APS Reform Committee program and the Finance Transformation Plan.

Finance is committed to being a driver of transformation in the public sector and a key focus is building capability across the APS. GovTEAMS supports this goal by facilitating APS-wide collaboration in a modern and innovative way. GovTEAMS empowers individuals with the tools they need to build their digital capability and increase their productivity.

The GovTEAMS Program has adopted an agile and adaptable approach in the delivery of GovTEAMS to government, achieving success in a resource constrained and dynamic environment.

The GovTEAMS business case forecast productivity gains of $6.9 million in year one, based on 10,000 users for the entire year. The actual GovTEAMS average monthly user count from 1 January (launch date) to 30 June was 9,500. Based on actual user counts, the original benefits estimation model forecasts actual productivity gains of $6.6 million for the 2018–19 financial year.

Within Finance, the GovTEAMS’ video-conferencing facility was successfully used by Finance staff members to participate in the Malaysia-Australia Economic Workshop. Using GovTEAMS enabled effective participation in the Workshop while saving the cost of international travel.

Criterion

Commonwealth entities and companies have access to the GovCMS management and website hosting support platform to assist in the creation of modern, affordable and responsive websites that better connect Government with people.

Source

Corporate Plan 2018–19, page 44

Result

Achieved

As of 30 June 2019, 284 sites and 91 agencies were using GovCMS from all tiers of government, an annual increase of 20 per cent for agencies using the platform and an increase of 44 per cent for number of websites hosted.

Websites hosted on GovCMS were available to the public for 99.97 per cent of the year. Commonwealth entities were able to access the platform back-end with an up-time of 99.998 per cent over the year, exceeding the 99.95 per cent up-time service level.

Analysis

The original feasibility study for GovCMS in 2014 provided a cost model for savings generated that was commissioned by Finance and designed by Deloitte.

The feasibility study projected a conservative four-year uptake of 182 sites, an ambitious uptake of 437 sites, and an intermediate uptake of 300 sites. Assessment against the original feasibility study shows how the platform is tracking against original targets designed by Deloitte. Finance is tracking close to the intermediate uptake.

The Digital Transformation Agency commissioned Deloitte to update and refine the model in 2016 for determining whole-of-government cost savings for digital transformation. The underlying parameters are conservative and remain valid in 2019.

Using the Deloitte model, the total operating cost (excluding agency staffing costs) for the 284 sites hosted would exceed $73 million if hosted independently. The total cost of operating GovCMS in 2018–19 was $5.9 million, an overall saving of $67.1 million.

Commonwealth sites make up 81 per cent of sites on the platform (231 sites) and generate 80 per cent of the total savings. The model shows that the savings specific to the Commonwealth are $53.7 million annually. Savings calculations shows the cost to government (excluding staff costs) if these sites were hosted independently less the cost of the GovCMS platform, including GovCMS staff costs (but not agency staff costs). The remainder is a conservative assessment of the savings generated. As agency staff costs were excluded from the model, there are savings not accounted for. For example, agencies hosting sites on the Software as a Service (SaaS) platform no longer require in-house infrastructure engineers.

Finance continues to engage with agencies where possible to obtain a more detailed view of actual savings.

GovCMS has enhanced security for Commonwealth websites by using its collective purchasing power to embed cyber security defences into SaaS. Prior to GovCMS, few agencies had the ability to fully protect their sites with either Distributed Denial of Service (DDoS) defence, Web Application Firewall (WAF) or a content delivery network (CDN). As costs were prohibitive, some agencies protected their main corporate website with either DDoS or CDN but rarely both, and few were able to extend similar defences to all the other sites they owned. All websites hosted on SaaS have these protections by default and agencies are benefiting from increased cyber security resilience and increased coverage across their website collections.

GovCMS’ high availability to users and administrators also demonstrates the stability and robustness of the platform.

Criterion

Services meet the needs of Parliamentarians, their employees and others as required by the Australian Government.

Source

Corporate Plan 2018–19, page 44

Program 3.1, Finance Portfolio Budget Statements 2018-19, page 54

Result

Achieved

Service standards met, or exceeded, for the period ending 30 June 2019 include:

• 98 per cent of client contacts were acknowledged within 24 hours and responded to within agreed timeframes
• 99.87 per cent of payments (including payroll) were made within agreed timeframes
• 99.71 per cent of COMCAR reservations were completed without service failure
• 100 per cent of office establishment and relocation projects were delivered within their approved budget.

Analysis

Finance regards the delivery of timely and efficient business support to current and former parliamentarians and their employees under the Members of Parliament (Staff) Act 1984, and others as required by the Australian Government, as essential. This subsequently benefits the broader Australian community.

Finance oversees the provision of non-travel related expenses and services to parliamentarians (current and former) and their respective employees. Finance also provides secure and confidential car-with-driver services (COMCAR) to a range of clients, including the Governor-General, the Prime Minister, members of parliament, the federal judiciary and heads of Commonwealth agencies.

In order to determine our performance in delivering these services, Finance identified four high-level service standards related to essential services delivered by Finance. In 2018–19, Finance met all of these service standards.

Finance continues to put parliamentarians’ and their employees’ needs at the centre when designing and delivering services. This is done by employing user reference groups, consultative groups, service delivery data and surveys to ensure the best outcomes for our clients.

Criterion

The timeliness, efficiency, clarity and transparency of the administration of parliamentary work expenses is improved.

Source

Corporate Plan 2018–19, page 45

Result

Substantially achieved

The Parliamentary Expenses Management System (PEMS) is a secure online portal for parliamentarians, former Prime Ministers, their staff and administering entities to electronically submit and monitor office and travel expense claims, manage budgets and perform reporting and various HR functions. Release of the first stage—office and travel expense functionality—was in August 2018.

As part of the PEMS project, a new vehicle booking and dispatch management system for COMCAR has also been implemented. The COMCAR Automated Resource System (CARS) provides significant advances in technology over previous booking systems, including greater functionality (online and mobile applications) for COMCAR clients and staff.

The final release of PEMS, scheduled for delivery in mid-2020, will activate HR payroll, budget management, digital end-to-end processing of claims for office expenses and travel, reporting and audit functions.

Analysis

Finance is continually seeking to improve the timeliness, efficiency, clarity and transparency of administering parliamentary work expenses.

Finance, in collaboration with PM&C, the Remuneration Tribunal and the Independent Parliamentary Expenses Authority, is implementing the recommendations of the An Independent Parliamentary Entitlements System: Review report.

A major reform from the Review is the implementation of a new parliamentary work expenses framework that commenced on 1 January 2018 and the implementation of PEMS.

The project is being implemented in stages to assist with the transition and to meet stakeholder expectations. Progress reports are provided to Finance’s Executive Board through the Strategic Review process.

The PEMS Portal was launched in July 2018 and additional functionality was added in the following five months. Parliamentarians can now also lodge travel and expense claims digitally. Finance has continued to undertake design of the final release, which will provide integration of the office and travel expense claims with the financial management information system. PEMS will also include budget management, reporting and self-service functions such as viewing payslips, submission of leave applications and managing changes in personal information.