Source: 2020–21 Corporate Plan, Key Activity 1, pg 19–20,

2020–21 Portfolio Budge Statements, Outcome 1, pg 18

— Budget year – difference between Budget estimated expenses and Final Budget Outcome.

— Current year – difference between the revised current year estimates at MYEFO and Final Budget Outcome.

— Current year – difference between the current year estimates at budget time and Final Budget Outcome.

Significant variances between estimated expenses and final outcome are explained.

1.1.2 Timeliness of Budget Estimate Updates and Appropriation Bills.

— Budget papers and related updates meet timeframes set out in the Charter of Budget Honesty Act 1998.

— Appropriation Bills introduced at times intended by government.

Variations between the estimates and final outcome reflect the unpredictability of the unfolding COVID-19 pandemic. Finance works with entities to ensure expense estimates are regularly reviewed and updated to take account of the best available information to maximise their reliability and accuracy.

In determining the accuracy of budget estimates at a particular update, Finance measures the changes to program budget estimates for expenditure between each update. Finance does not include the effect of government decisions and economic parameter updates made at future updates, as these cannot be reasonably predicted by Finance.

Budget papers and related updates were produced in accordance with the timeframes and other requirements under the Charter of Budget Honesty Act 1998, including relevant accounting standards

● the 2019–20 Final Budget Outcome (FBO) was released on 25 September 2020

● the 2020–21 Budget was delivered on 6 October 2020

● the 2020–21 Mid-Year Economic and Fiscal Outlook (MYEFO) was released on 17 December 2020

● the 2021–22 Budget was delivered on 11 May 2021.

In addition, the Government released the 2020 July Economic and Fiscal Update on 23 July 2020.

Appropriation bills were introduced into parliament at times intended by the Government and in accordance with legislative requirements:

● Appropriation Bill (No. 1) 2020–2021, Appropriation Bill (No. 2) 2020–2021, and Appropriation (Parliamentary Departments) Bill (No. 1) 2020–2021 were introduced in the House of Representatives on 6 October 2020.

● Appropriation Bill (No. 3) 2020–2021 and Appropriation Bill (No. 4) 2020–2021 were introduced in the House of Representatives on 18 February 2021.

● Appropriation Bill (No. 1) 2021–2022, Appropriation Bill (No. 2) 2021–2022 and Appropriation (Parliamentary Departments) Bill (No. 1) 2021–2022 were introduced in the House of Representatives on 11 May 2021.

Budget estimates were based on external reporting standards and any departures from external reporting standards were identified, consistent with requirements set out in the Charter of Budget Honesty Act 1998.

Budget estimates were based on external reporting standards and any departures from external reporting standards were identified, consistent with requirements set out in the Charter of Budget Honesty Act 1998.

Analysis

Advising on expenditure through the Budget process and related economic and fiscal updates is a core activity undertaken by Finance as part of our role in supporting the Government to achieve its policy and fiscal objectives. These activities, including the preparation of budget estimates and appropriation bills, are critical for ensuring the ongoing delivery of government programs and services.

In 2020–21, the Australian Government continued to respond to the COVID-19 pandemic by providing significant fiscal support to health and economic recovery. While remaining responsive to the challenges posed by the pace and scope of government decision-making, Finance continued to embed discipline and rigour in its fiscal and policy advice. This included:

● providing effective, timely and accurate advice on budget processes to the Government, Commonwealth entities and key stakeholders

● providing advice outside of usual budget processes to support rapid decision-making by the Government

● supporting eight Advances to the Finance Minister allocations, enabling urgently required funds to be made available to support Australia’s COVID-19 vaccine rollout, the procurement of personal protective equipment and other essential medical supplies for the National Medical Stockpile.

*Table does not include 1.1.3 from the Corporate Plan as this was a duplicate of 1.1.2 – the performance measures have been fully acquitted.

Source: 2020–21 Corporate Plan, Key Activity 1, pg 20

2020–21 Portfolio Budget Statements, Outcome 1, pg 18

Achieved

Achieved

Achieved

Achieved

Achieved

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

● the 2019–20 FBO was released on 25 September 2020

● the 2020–21 monthly financial statements were provided to the Minister for Finance on average within 21 days of the end of each month following the release of the 2019–20 FBO

● the Auditor-General issued an unmodified audit report on the 2019–20 CFS on 24 November 2020.

Analysis

The timely public release of complete and fairly presented government financial statements is a critical component of Finance’s performance, and our achievements in this area underpin our ability to provide robust advice to the Government on expenditure matters.

Finance uses well-established and robust business processes to prepare the financial statements, working in close collaboration with all government entities to produce the following key reporting outputs:

● monthly financial statements, which show how actual financial performance is tracking against monthly profiles and full-year estimates

● the FBO, which reports on full-year outcomes against budget by sector, including for the general government sector, public non-financial corporations sector and the public corporations sector

● the CFS, which presents consolidated and audited whole-of-government financial statements for the financial year.

Collectively, these statements are integral to the Commonwealth’s accrual budgeting and reporting framework and complement the budget process by providing outcomes against Budget estimates.

Source: 2020–21 Corporate Plan, Key Activity 2, pg 20

2020–21 Portfolio Budget Statements, Outcome 1, pg 18

Achieved

All payment requests from entities were met.

Cash management business continuity plans are current and continue to be tested at least twice a year.

Analysis

Finance administers robust financial systems and frameworks to support the disbursement of cash through the Central Budget Management System. Enabling the activities of all Commonwealth entities is critical to achieving our purpose of supporting the Government to achieve its fiscal and policy objectives.

Finance continues to deliver on its commitment to responsible and efficient management of Commonwealth cash and providing near real-time funding to Commonwealth agencies, enabling them to deliver on the policy objectives of government.

The modernisation of Commonwealth cash management has resulted in entities having faster access to their appropriations. This has been particularly beneficial throughout the COVID-19 pandemic, enabling Commonwealth entities to respond quickly to evolving community needs, such as COVID-19 vaccine supplies, income and business support payments and medical equipment.

In late 2020, Finance and the Australian Office of Financial Management jointly established a new cash management account with the Reserve Bank of Australia to improve effectiveness and efficiency in Commonwealth cash management.

In 2021, Finance successfully automated a range of critical end-of-financial-year cash management functions, including processing repeals of annual appropriations and loading cash budgets for appropriations for the new financial year. This business optimisation initiative resulted in Commonwealth entities having earlier access to their appropriations, reduced the risk of human error and minimised staff hours required to support this process.

Source: 2020–21 Corporate Plan, pg 26

2020–21 Portfolio Budget Statements, Outcome 2, pg 33

3.1.1 Effectiveness of Finance’s stewardship, policy advice, engagement and guidance on governance and accountability arrangements.

3.1.2 Parliamentary and independent audit report findings related to the PGPA framework and the effectiveness of Finance’s support services and guidance are applied to maintain a fit-for-purpose framework.

Finance has undertaken its annual PGPA Entity Survey of Commonwealth entities and companies which provides feedback on the effectiveness of Finance’s stewardship, policy advice, engagement and guidance.

A majority of entities (93 per cent) were satisfied with the Commonwealth Resource Management Framework and the level of support provided by Finance to meet entity obligations. The survey results provided important insights into entities’ processes for monitoring compliance with the performance framework, the risk management framework and changes to audit committee requirements. Entities provided valuable feedback on how Finance’s delivery of support could be enhanced and on areas of the framework that needed additional guidance to assist entities meet their obligations. This feedback included greater use of plain English in Finance guidance, using case studies to explain best practice, and improving digital access to Finance’s resources. On the basis of this feedback, Finance has refreshed guidance on the Finance website to be more user-friendly and helped ensure all entities have access to the latest information about the Commonwealth Resource Management Framework through the Finance website, the PGPA Newsletter, various GovTEAMS communities and the PGPA inbox.

Parliamentary and independent audit report findings related to the PGPA framework and the effectiveness of Finance's support services and guidance were applied to maintain a fit-for-purpose framework.

Analysis

The Resource Management Framework governs how officials in the Commonwealth public sector use and manage public resources. It is an important feature of an accountable and transparent public sector and informs the Australian people of the daily work of Commonwealth entities and companies and their employees.

The PGPA Entity Survey continues to be an effective measure of how well Commonwealth entities and companies understand their obligations under the PGPA Act and how well they are supported by Finance to meet those obligations. Within a COVID-19 landscape, the Commonwealth Resource Management Framework continues to be adaptable to suit entity needs and deal with external pressures created by the global pandemic, in particular, engaging with risk and meeting performance framework requirements.

Finance’s work in the 2020–21 reporting period focused on providing entities with the tools they needed to meet their changing demands while maintaining transparency and accountability. This included providing additional guidance to support entities reporting against the new audit committee requirements introduced for the 2019–20 reporting period, and transition towards the new audit committee membership requirements for the 2020–21 reporting period.

During 2020–21, Finance provided each new accountable authority with PGPA Act introductory guidance to assist them to meet their PGPA Act responsibilities. Fourteen in-person PGPA Act briefings were also provided to accountable authorities and their senior executives.

The 2020 PGPA Entity Survey findings show similar results to the 2019 PGPA Entity Survey reflecting a similar trend on the general perception of the Commonwealth Resource Management Framework. Overall, the survey found that the guidance and support provided by Finance are widely used across the Commonwealth, aided by the client-focused Finance website. Trends identified since 2018 include:

● entities are broadly satisfied with the Commonwealth Resource Management Framework as a whole and the level of support provided to meet obligations under the framework

● review of audit committee qualifications increased over time, with a focus on ensuring persons with the required skills and experience was recruited for the role

● use of guidance materials has increased over time, with a majority of entities considering the Resource Management Guides developed by Finance useful and accessible.

Finance continued to meet demand for support across all elements of the Resource Management Framework, incorporating entity feedback to improve the delivery of resources and to maintain the framework as a fit-for-purpose vehicle to meet the needs of the Commonwealth.

Source: 2020–21 Corporate Plan, Key Activity 3, pg 26

Achieved - 93%

During the second quarter of 2020–21, Finance conducted the PGPA Entity Survey with Commonwealth entities and companies. Of the responses received:

● 93 per cent of respondents were satisfied or very satisfied with the level of support provided by Finance on the Commonwealth Resource Management Framework (which includes the Commonwealth Performance Framework)

● 94 per cent of respondents mostly or fully understood the CPF.

The Auditor-General tabled 41 performance audits in 2020–21. None of the performance audits were specific to the CPF. There were 18 performance audits that referenced the CPF, of which 15 had recommendations specific to the application of the CPF by audited entities.

The recommendations went to establishing the corporate plan as the primary planning document for an entity, improving and strengthening performance measures provided in corporate plans and providing performance measures related to the activity that was subject to audit.

The Auditor-General undertook a pilot assurance audit on the 2019–20 annual performance statements of the Attorney-General’s Department and the Department of Veterans’ Affairs. On 2 December 2020, the Auditor-General provided the Minister for Finance the assurance audit reports, which were tabled in both houses of Parliament on 3 February 2021.

The Auditor-General is undertaking an assurance audit of the 2020–21 annual performance statements of the Attorney-General’s Department, the Department of Veterans’ Affairs and the Department of Social Services and any CPF implications of these audits will be reported in Finance’s 2021–22 annual performance statements.

The parliamentary Joint Committee of Public Accounts and Audit (JCPAA) tabled seven reports in 2020–21. None considered the application of the CPF and there were no recommendations relating to the CPF in the reports.

Analysis

At the beginning of the 2020–21 reporting period, the resources and efforts of Finance in supporting the CPF focused on Commonwealth entities and companies impacted by COVID-19, including by providing the option to defer the publishing of 2020–21 corporate plans until 31 January 2021. In total, 34 entities chose to defer publishing, allowing them to focus their resources and attention on the Government’s response to the pandemic. The deferral capacity was provided through a one-off amendment to the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).

Finance also clarified and provided guidance on the Acts Interpretation Act 1901, affording some entities the option of deferring regular reports, including 2019–20 annual reports.

In the latter part of 2020–21, Finance integrated the Regulator Performance Framework reporting requirements into the reporting requirements of the CPF. This refinement will assist over 100 Commonwealth entities that are regulators or have regulatory functions by reducing duplicative reporting requirements. The reform will be implemented in 2021–22 with full implementation in 2022–23.

Due to disruption caused by COVID-19, Finance suspended Performance Community of Practice sessions, which inform and promote discussion about changes and issues relating to the CPF. Instead, Finance’s engagement focused on ensuring that digital guidance was relevant and appropriate, providing information through regular PGPA newsletters, responding to direct enquiries through the PGPA email address, and providing one-on-one assistance to entities and companies on request.

Entity responses to the PGPA survey, which was undertaken during the second quarter of 2020–21, provide confidence that Finance's stewardship, policy advice, engagement and guidance on the CPF is effective.

In relation to the assurance audits of annual performance statements, Finance is working with the Australian National Audit Office on the design and implementation of an expanded audit program.

Source: 2020–21 Corporate Plan, Key Activity 4 pg 27

2020–21 Portfolio Budget Statements, Outcome 2, pg 41

4.1.1 Effectiveness of Finance’s stewardship, policy advice, engagement and guidance on procurement systems and policies.

4.1.2 AusTender platform and data is available to users 99.5 per cent of the time.

4.1.3 Engagement with domestic and international stakeholders supports information exchange on advances in procurement policy.

4.1.4 Savings and efficiencies from WoAG arrangements are compared, where possible, against similar arrangements, previous arrangements or markets.

Finance took a proactive approach to its role as policy stewards, providing entities with web guidance and support on the Commonwealth Procurement Framework and tailored advice through a dedicated outreach program and inbox.

Finance delivered a scheduled outreach program, providing two-way communication between central procurement areas and the policies which support the Commonwealth Procurement Framework. Engagement on strategic procurement matters and related policies takes place through the Senior Procurement Officials Reference Group (SPORG).

In 2020–21, Finance hosted 26 outreach sessions attended by 106 entity representatives and nine SPORG meetings attended by 103 entity representatives. Finance facilitated workshops with the states and territories on engagement with Australian business in major civil construction projects.

Finance enhances procurement capability and productivity across the public sector by sharing experiences, knowledge and better practice, strengthening partnerships with industry and promoting self-help procurement tools.

In 2020–21, through the Centre of Procurement Excellence (CoPE), Finance delivered:

● two Secretaries’ Procurement Consultative Roundtable meetings

● two CoPE Steering Group meetings

● the Commonwealth Procurement Capability Self Assessment Survey, providing reports to participating entities.

In 2020–21, the AusTender platform and data were available to users more than 99.5 per cent of the time.

In 2020–21, Finance participated in:

● five rounds of trade negotiations with the United Kingdom

● four rounds of trade negotiations with the European Union

● one round of trade negotiations with the Association of South East Asian Nations and New Zealand

● one meeting of the Organisation for Economic Co-operation and Development Working Party of the Leading Practitioners on Public Procurement

● four meetings of the World Trade Organization Committee on Government Procurement

● five surveys by international organisations on issues related to public procurement such as gender, infrastructure, responses to COVID-19, support to small and medium-sized enterprises and anti-corruption in procurement.

Under the Commonwealth Procurement Framework, prior to formalising the extension of the WoAG Air Services Arrangement, Finance analysed performance and compliance with the Panel Deed and considered new pricing proposals. Finance determined that all suppliers continued to represent value for money for the Australian Government. Updated pricing, including route deals, point of sale discounts and other additional value-adds came into effect from 1 July 2021.

Extensions to the travel management services and car rental WoAG coordinated procurement arrangements were also exercised. This followed reviews that confirmed the arrangements are meeting their objectives and continue to deliver value for money, and the benefits of extending arrangements outweighed the costs and risks associated with approaches to market.

Source: 2020–21 Corporate Plan, Key Activity 5, pg 27

2020–21 Portfolio Budget Statements, Outcome 2, pg 39

5.1.1 An appropriate level of net assets is maintained

5.1.2 Litigation is undertaken honestly and fairly as a model litigant.

5.1.3 Effectiveness of Comcover’s stewardship, policy advice, engagement and guidance on risk management.

As at 30 June 2021, Comcover net assets were $5.6 million. As at 30 June 2021, Finance, had a net claims liability of $1,092.2 million, with cash reserves of $1,100.3 million in the Comcover Special Account. It is anticipated that Finance will be able to meet the liabilities generated through the operation and management of Comcover 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 Finance’s financial statements.

Finance has undertaken all litigation consistent with the obligation to act as a model litigant and other obligations under the Legal Services Directions 2017.

Finance continues to provide stewardship, policy advice, engagement and guidance on risk management. As at 30 June 2021, there has been increased uptake of Comcover's risk education program across all levels of the program. As at 30 June 2021, 3,300 individuals had completed Finance’s e-Learning program with 242 attending both face-to-face and virtual workshops. Participation in e-Learning increased 43 per cent compared to 2019–20 and participation in workshops increased 142 per cent compared to 2019–20.

Comcover's introductory risk education program has been adopted by a number of agencies as compliance training with significantly increasing program completions.

Strong attendance continues for both face-to-face and virtual workshops, increasing the uptake of the associated e‑Learning modules. The average maturity of the fund achieved in 2021 was equivalent to the third level of a five-level maturity model. Given this is the first year of the revised Risk Management Benchmarking Program, it is not possible to compare the fund's performance to previous years.

Analysis

Property and liability claims following natural disasters in 2019–20 continued to impact net assets, combined with forecast increases to significant liability matters.

In 2020–21, Comcover did not breached the model litigant obligations. Over the last three financial years, Comcover has closed on average over 4,800 claims per year.

Finance supports entities to obtain the knowledge, skills and expertise they need to successfully implement and integrate risk management in their organisations. Finance adapted to the COVID-19 pandemic by offering the Comcover education and workshops virtually and introducing micro-bites on specific risk topics. The uptake of virtual workshops continues to be strong as staff outside Canberra can now access these offerings. The micro-bites released in early 2020 have received more than 10,000 views with the most popular receiving more than 2,400 views.

The Comcover Risk Management Benchmarking Program was refreshed over 2020–21, recognising that the risk maturity of fund members has improved over the past five years of the program. This includes changes to the survey questions, scoring methodology, and reporting capability. The changes to the scoring methodology mean that it is not possible to compare this year's results to previous years. However, it will be possible to compare the results of the next iteration of the biennial program in 2022–23 to this year’s results, to assess whether there has been an aggregate improvement in risk maturity.

Source: 2020–21 Corporate Plan, Key Activity 6, pg 28

2020–21 Portfolio Budget Statements, Outcome 2, pg 38

6.1.2 Effectiveness of Finance’s stewardship, policy advice, engagement and guidance on Commonwealth property management.

The Whole-of-Australian Government Property Services Coordinated Procurement Arrangements (the arrangements) continue to deliver property efficiencies. As at 30 June 2021, 94 per cent of NCEs had transitioned to the arrangements, representing 99 per cent of the total properties that are in scope.

The 2020 Australian Government Office Occupancy Report highlights continued improvement in the efficiency of the Commonwealth’s office portfolio, including a reduction in the work-point vacancy rate from 16.2 per cent in 2017 to 8.8 per cent in 2020, and an improvement in aggregate occupational density from 17.1 m2 per occupied work point in 2017 to 15.1 m2 in 2020. The proportion of individual leases meeting the Government’s occupational density target of 14 m2 per occupied work point increased from 25.0 per cent in 2017 to 40.1 per cent in 2020.

Property Service Providers met the combined property operating expense savings targets for 2019–20 and 2020–21 and continue to exceed contractual targets regarding participation by Indigenous-owned businesses and SMEs.

Other benefits of the arrangements include improved service delivery, employment of best practice industry standards and more efficient procurement and management of subcontractors by Property Service Providers.

In 2020–21, Finance continued to rationalise the Finance Owned Estate in accordance with the Commonwealth Property Disposal Policy. Finance divested 13 properties, with total sale proceeds of $0.9 million.

Analysis

Finance provides oversight, management and support to Commonwealth entities in relation to property management. The reform of Commonwealth property asset management and operations, led by Finance, has made a significant contribution to improving efficiency.

In 2020–21, Finance continued to assist entities to manage their lease holdings effectively and efficiently resulting in more efficient use of office space.

In 2020–21, Finance quickly identified and responded to rapidly emerging property-related issues resulting from the COVID-19 pandemic. Finance developed guidance materials and advice to support entities to manage office accommodation. For example, 448 Commonwealth tenants received the benefit of Finance’s Rent Relief Policy, which supports SMEs and not-for-profit occupants through COVID-19.

Finance also manages a significant and strategically important property portfolio, oversees the planning, construction and delivery of major capital works projects, and demonstrates leadership in rationalising the Commonwealth’s property holdings by divesting properties that are surplus to requirements.

Source: 2020–21 Corporate Plan, Key Activity 7, pg 28

7.1.1 GBEs operate efficiently, maintain a commercial focus and manage the longer-term financial and operational sustainability of the entity, including the payment of dividends.

7.1.2 GBE corporate plans comply with GBE guidelines and provide sufficient information to permit performance and financial reporting and monitoring. This includes timely reporting to ministers and government on progress of key projects and proactive reporting on emerging issues.

7.1.3 Ensure that GBE and project governance is fit for purpose including through the establishment of governance documents such as statements of expectations, commercial freedom frameworks and funding agreements.

Advice is provided on a regular basis to shareholder ministers on the compliance and performance of GBEs, based on information provided in corporate plans, progress reports and annual reports, as well as regular interactions with GBEs.

GBEs continue to support the Australian economy by delivering on significant infrastructure projects, including the development of a world-leading vertically-integrated shipyard by Australian Naval Infrastructure in Osborne South, South Australia. These facilities were completed in 2020 and handed over to BAE Systems Maritime Australia, to support prototyping and construction of the Hunter Class Frigates. In 2020–21, construction of the first section of the Inland Rail, Parkes to Narrabri, was completed, with work commencing on the Narrabri to North Star section. The construction of Snowy 2.0 continues with the recent commencement of tunnelling works by Snowy Hydro Limited. Western Sydney Airport Co achieved key milestones in the construction of Western Sydney International (Nancy-Bird Walton) Airport, including the completion of over 50 per cent of bulk earthworks.

GBEs supported the Australian community through the COVID-19 pandemic by ensuring they remained connected. To this end, Australia Post adjusted its operations to enable it to respond flexibility to the impacts of COVID-19 and the significant increase in parcel volumes. The NBN network was formally declared as Built and Fully Operational in December 2020, with the network connecting in excess of 11.86 million premises.

An update to the GBE guidelines and GBEs’ key governance documentation has commenced, to ensure they remain fit for purpose and reflect the latest government policies, best practice guidance and expectations of GBEs. The outcomes of recent reviews will be included and extensive stakeholder consultation is ongoing in 2021 to support the update.

Analysis

The Government’s involvement in commercial enterprises, such as GBEs, aims to support the delivery of essential services and infrastructure to the Australian community. Currently there are nine GBEs prescribed under the PGPA Act (two corporate Commonwealth entities and seven Commonwealth companies).

Finance’s governance and oversight of GBEs contributes significantly to achievement of the public sector resourcing and governance element of our purpose. By executing these responsibilities, Finance assists the Government to achieve its fiscal and policy objectives.

Through 2020–21, Finance’s effective ongoing governance continued, including through regular reporting and accountability arrangements, set out in legislation, regulations and policy guidance and targeted stakeholder forums and engagement. Finance’s relationships with shareholder departments have been strengthened through these ongoing engagements. Some examples include:

● organising a GBE Forum to promote shared learnings and experiences between GBEs

● a professional education program for Finance and shareholder departments, and pivoting to online delivery where needed.

To support the delivery of policy outcomes, Finance works with the Organisation for Economic Co-operation and Development, state and territory governments and professional associations to gain insights and share learnings on the development of best practice accountability, transparency and governance practices. Finance also continues to engage with the wider APS community on matters involving GBEs, including in the development of the State-Owned Enterprises chapter for the recently announced Australia-United Kingdom Free Trade Agreement.

Recognising the significant contribution of major infrastructure projects to the Government’s balance sheet, Finance provides oversight to GBEs responsible for these activities. This includes detailed financial analysis to support the Minister for Finance’s role as a shareholder minister.

In the context of the COVID-19 pandemic, Finance continued its support of the Government’s effort to temporarily adjust Australia Post’s performance standards to reflect the operating constraints and limitations that have resulted from the significantly changed environment in 2020–21. These adjustments provide Australia Post with flexibility to meet increased demand for online ordering and delivery as people practise social distancing. Finance continues to assist in a range of commercial matters across government.

Source: 2020–21 Corporate Plan, Key Activity 8, pg 29

2020–21 Portfolio Budget Statements, Outcome 2, pg 45

8.1.1 Investment mandates for the managed funds issued by the Australian Government are set and appropriately monitored.

The Future Fund 30 June 2021 Portfolio Update confirms that the benchmark rate of return for the Future Fund, the Medical Research Future Fund, the DisabilityCare Australia Fund, the Aboriginal and Torres Strait Islander Land and Sea Future Fund, the Future Drought Fund and the Emergency Response Fund managed by the Future Fund Board of Guardians (Future Fund Board) has been met since inception of the funds and within agreed risk tolerances.

Analysis

Finance supports the Government through implementing a policy and legislative framework that assists in achieving the financial and risk objectives of the investment funds managed by the Future Fund Board. These investment funds are designed to strengthen the Commonwealth’s long-term financial position by making investments that benefit future generations of Australians.

Finance is responsible for providing advice to the Government on the Australian Government’s investment funds. Finance provides advice on a wide range of issues, including Board appointments, governance, investment mandates and credits and debits from the funds. This advice ensures that the Government’s investment funds can continue to meet their legislated policy objectives within a robust governance framework.

8.2.1 The legislation establishing the civilian superannuation schemes is reviewed as needed to ensure it complies with the broader regulatory and legislative requirements.

In 2020–21, Finance provided advice to the Government on changes to the legislation governing the Commonwealth’s civilian superannuation schemes. This included the:

● Treasury Laws Amendment (Your Future, Your Super) Act 2021, in relation to changes to the Superannuation Act 2005 and the Superannuation Act 1990

● Superannuation Amendment (PSS Trust Deed) Instrument 2021

● Superannuation Amendment (PSSAP Membership) Act 2020

● Family Law Amendment (Western Australia De Facto Superannuation Splitting and Bankruptcy) Act 2020 – in relation to the Superannuation Act 1976, Superannuation Act 2005, Parliamentary Contributory Superannuation Act 1948, Judges’ Pensions Act 1968 and the Governor-General Act 1974

● Superannuation (PSSAP – Ordinary Employer – Sponsored Membership Exclusion) Determination 2020

● Superannuation Amendment (PSSAP Trust Deed – Membership) Instrument 2020

● Federal Circuit and Family Court of Australia (Consequential Amendments and Transitional Provisions) Act 2021, in relation to the Judges’ Pensions Act 1968 and the Federal Circuit Court of Australia Act 1999.

Analysis

Finance supports the Government to maintain a policy and legislative framework for the Commonwealth civilian superannuation schemes that is consistent with the Government’s broader superannuation prudential requirements.

This includes the review of the CSS, PSS, and PSSAP regulated superannuation schemes, and their legislation, as needed, to ensure compliance with regulatory and legislative requirements.

Finance is also responsible for providing advice to government on policy and legislative matters relevant to the pension schemes managed in-house for former parliamentarians, federal judges and governors-general.

Source: 2020–21 Corporate Plan, Key Activity 8, pg 29

8.3.1 The operations of the civilian superannuation schemes administered by the Department comply with the applicable regulatory and legislative requirements.

Analysis

Entitlement to scheme benefits is prescribed under the various legislation, Parliamentary Contributory Superannuation Act 1948, the Judges’ Pensions Act 1968, the Governor-General Act 1974 and the superannuation arrangements under the Federal Circuit Court of Australia Act 1999. In certain prescribed circumstances, particularly relating to reversionary beneficiaries, additional consideration is required by the Minister for Finance or the Parliamentary Retiring Allowances Trust. In 2020–21, Finance provided support to the Minister for Finance and the Trust in relation to five benefit applications.

Finance also administers the pension schemes in-house in accordance with the applicable regulatory and legislative requirements. In March 2020, during a COVID-related lockdown, a new superannuation IT system was implemented. Without business interruption, Finance was able to:

● continue to process pension payments in accordance with the relevant fortnightly or monthly payment schedules

● respond to member queries and issued member annual statements in a timely manner

● further improve automation of scheme reports for submission to regulatory agencies.

Source: 2020–21 Corporate Plan, Key Activity 9, pg 34

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Finance has responsibility for the Shared Services Program from a policy perspective, as well as the development of a whole-of-government enterprise resource platform, GovERP, and shared service delivery responsibilities through the SDO Hub. Significant progress was made in relation to the shared services agenda. This included:

● agreeing all major parameters of the operating model for shared services and the on-boarding and implementation approach for agencies using SAP technologies. This work underpinned the combined first and second pass whole-of-government business case that was considered and endorsed by the Government in the 2021–22 Budget. Funding was provided to build the GovERP platform and to on-board the SDO and its clients as the first use case.

● conducting a template review, defining and testing of the end-to-end business processes that it is built on and developing the GovERP core demonstration system to engage stakeholders to ensure end user needs are met prior to the production solution being developed. These processes provide the foundation for the GovERP template and the GovERP process automation strategy. The template will be built once and used to assist over 40 agencies to transition to the new technology and will enhance adoption of digital technologies within government.

● undertaking procurement of four complementary (edge) functional capabilities and commencing the procurement process for a strategic partner through a two-stage market approach. The program utilised SAP training credits with over 150 public servants being upskilled in SAP S/4 HANA capability.

In addition, the efforts of the shared services provider hubs resulted in:

● four shared services provider hubs being lead adopters of e-Invoicing technology, Services Australia, the Australian Taxation Office, the Department of Industry, Science, Energy and Resources and the SDO. This initiative aims to provide faster payment of invoices to small business. In addition, the Services Australia access point has supported several agencies to become e-Invoicing enabled.

● shared services provider hubs focusing effort to assist their client entities to prepare for the transition to GovERP, including through documenting current processes, sharing policies and procedures to align approaches, developing a maturity index assessment and creating communities of practice to build knowledge, expertise and share learning.

● the SDO increasing adoption by client entities of enterprise resource platform solutions and shared services arrangements. Further detail is provided under Performance Measure 9.2.

Analysis

The Shared Services Program seeks to consolidate the provision of corporate transactional services into a small number of shared services provider hubs and to deliver a common corporate platform leveraging shared technology for the APS. Shared services is a long-term priority for the Australian Government.

When fully implemented, it will support over 90 NCEs and 130,000 public servants and replace disparate, ageing and soon-to-be obsolete back-office systems with a common technology platform, GovERP. GovERP will support a limited suite of ICT solutions to meet the functional requirements of large and small/medium agencies across the Commonwealth.

In 2020–21:

● Finance progressed its responsibility for the Shared Services Program from a policy perspective, developed an approach for a common whole-of-government enterprise resource platform, GovERP, and further enhanced shared service delivery through the SDO Hub

● consolidated efforts and expertise from across the Program, the SDO Hub and GovERP continued and were used to confirm the core elements of the Program needed to deliver shared services using GovERP and to inform the technical solution for GovERP and the implementation approach to scale across the APS

● despite the challenge COVID-19 placed on meeting with stakeholders and workforce mobility, Finance used latest technologies, secondment opportunities and refined procurement approaches to further enhance its engagement and collaboration with NCEs, APS staff and industry. Through this engagement, Finance was able to develop the operating model for shared services, build the initial demonstration solution of GovERP and validate the streamlined end-to-end business processes necessary to support shared services

● the preparation, planning and high-level design phases for the GovERP platform were completed, which has involved consulting with hubs, entities and industry to confirm the best approach to deliver a platform that addresses whole-of-government business needs

● Finance also worked with the Digital Transformation Agency, the Australian Public Service Commission and SAP to develop an approach for enhancing skillsets of public servants in the latest SAP S/4 HANA technologies, which are necessary for building the SAP instance of GovERP

The Government has transferred responsibility for the completion of the on-boarding template, the design, build and operation of the GovERP platform, and the on-boarding of the SDO and its clients to Services Australia from 1 July 2021. Finance will retain responsibility for the policy and governance oversight functions for the wider Shared Services Program and the SDO provider hub. Finance will continue to work with Services Australia on GovERP to deliver consistent and integrated business services through standardising and consolidating processes and software across Commonwealth entities. This approach will enable entities to focus on frontline priorities rather than back-end administration.

Source: 2020–21 Corporate Plan, Key Activity 9, pg 34

2020–21 Portfolio Budget Statements, Outcome 2, pg 43

9.2.1 Service level agreements with client entities, including measurement of efficiency and effectiveness of services, are met, including:

— Average resolution time of client request of 10 days

— Increased rating in client satisfaction surveys (baseline established in 2020–21)

9.2.2 The benefits of shared, standard and sustainable technologies and processes are realised:

— Increased client uptake of shared ERP technology solutions (year on year increase)

— Increased client adoption of end-to-end corporate processes – travel and credit card

The SDO has agreed service level outcomes with clients. The SDO has revised its performance reporting framework to enable the provision of quarterly reports to clients. The following client-centric key performance areas are captured:

● efficiency in payroll administration

● timeliness and accuracy in processing financial documents

● efficient usage of client investment funds through proper project management

● application of a robust risk management framework (controls and assurance)

As at 30 June 2021:

● the SDO was meeting service level outcomes for accounts payable, accounts receivable, payroll administration, credit card management and hub usage

● there were 8,189 hub users, continuing the increasing trend in the number of users of shared ERP systems

● 100 per cent of clients were able to manage their services, data and ledger maintenance activities through the hub

● over 105,000 tickets were raised and resolved during 2020–21 with an average resolution time of 4.4 days.

Results from the SDO client surveys across 2020–21 found ‘positive’ or ‘very positive’ response rates of 53 per cent across quality, timeliness, interaction and overall experience. The survey results showed continual improvement on a quarter-by-quarter basis. The results of the surveys establish the baseline to measure performance for 2021–22 and beyond.

Analysis

The SDO directly contributes to Finance’s delivery of efficient and cost-effective services to, and for, government, and to the transformation of the public sector through the shared use of common, standard and sustainable technologies and processes.

As one of the six service delivery hubs, the SDO continues to be a centre of excellence for shared services, developing innovative service delivery arrangements across entities. The SDO supports the whole-of-government agenda for standardising business systems and processes across the APS by consolidating service provision and increasing the use of shared digital solutions and automation.

During the 2020–21 reporting period, the SDO:

● developed a new process automation for debt management to provide for improved efficiency in business processes

● completed the discovery phase with the Office of the Australian Information Commissioner with the intent of on-boarding to the SDO in 2021–22

● implemented a digital travel and expense management capability which has been adopted by six additional SDO clients

● successfully on-boarded the Department of Education, Skills and Employment to the e-Invoicing solution.

Source: 2020–21 Corporate Plan, Key Activity 10, pg 35

2020–21 Portfolio Budget Statements, Outcome 2, pg 35

Analysis

Finance remains committed to driving transformation in the public sector. GovTEAMS supports this commitment by facilitating APS-wide online collaboration, and equips individuals with the modern tools they need to build their digital capability and increase their productivity.

In the 2020–21 financial year, GovTEAMS hosted:

● 560,880 inter-agency chat messages between virtual online teams

● 11,919,988 chat messages between individuals across the APS and external partners

● 426,379 audio and video calls

● 733,066 online meeting attendees.

As at 30 June 2021, GovTEAMS has over 127,800 registered members. Of these, there are 53,618 Australian Government and state government members actively using the platform across 17,645 teams or communities. Members are working with 26,907 registered partners from industry and academia.

An average of 40,000 video and audio calls are conducted monthly using GovTEAMS. Over 1,750 Commonwealth Senior Executive Staff are registered in GovTEAMS. Finance recently concluded a successful 18-month trial of its protected-level collaboration offering and launched the full offering of GovTEAMS PROTECTED in July 2021. Building on the existing GovTEAMS platform, GovTEAMS PROTECTED provides an approved, secure online workspace to share protected-level information, creating a safe collaboration platform for agencies that have existing protected networks, as well as for those that do not. The latest GovTEAMS PROTECTED capabilities allow users to collaborate from outside a protected network with appropriate restrictions and controls, making GovTEAMS PROTECTED a truly mobile solution for secure collaboration at the protected level.

Source: 2020–21 Corporate Plan, Key Activity 10, pg 35

2020–21 Portfolio Budget Statements, Outcome 2, pg 36

10.2.2 Evidence of continued use of GovCMS by non-corporate Commonwealth entities (target of ~350 websites)

*A further 32 websites were on the platform for the majority of the year. Twenty-nine sites were consolidated into a single larger site on GovCMS as part of a digital transformation project. Three sites ceased as a result of machinery-of-government changes.

The GovCMS platform availability in 2020–21 was 99.92 per cent, exceeding service level targets. Platform availability was 100 per cent in all months, except December 2020.

In 2020–21, 119 sites were launched by non-corporate Commonwealth entities (NCEs) on the platform. Sixty-three sites were upgrades for existing sites moving to the most recent version of Drupal, the content management tool used by the GovCMS platform.

In addition to sites consolidated through machinery-of-government and transformation initiatives, a further 37 sites ceased during the reporting period. This was a result of the completion of beta projects, and one NCE electing to host their sites with the previous GovCMS service provider.

The total number of sites live as at 30 June 2021 was 318, with 245 of these managed by NCEs and 73 by other entities. The majority of these are state and local government entities, whose websites total 50 (seven in New South Wales, seven in Queensland, six in South Australia and 30 in Victoria).

As at 30 June 2021, the number of NCEs using GovCMS was 60, up from 54 in 2019–20. In 2020–21, eight NCEs joined the program, one entity was disestablished via a machinery-of-government change, and one entity left the platform having completed a separate procurement. There are also 18 corporate Commonwealth entities with active subscriptions. In June 2021, the Federal Court joined the GovCMS program.

Analysis

In 2020–21, Finance continued to on-board entities and websites to the secure platform.

Finance worked closely with entities, assisting with the upgrade of 63 websites. The GovCMS team centrally managed the majority of the upgrade. The team provided an efficient and timely transition for entities to the latest version of content management tools available for use within the platform. This ensured entities continued to deliver their sites using modern, secure and supported software.

As part of a larger upgrade program, Finance (with the assistance of its service provider) implemented new processes and tools to automate both the majority of the upgrade and any remediation needed. This is to ensure sites remain operational. Entities were supported during testing activities, ensuring confidence in the platform was maintained.

The ongoing impact of the COVID-19 pandemic can be observed with high traffic levels of websites hosted on the platform. Finance's GovCMS platform continues to meet and exceed expectations. During the reporting period, the platform served more than 1.5 billion pages of content to website visitors.

Finance supported entities during the reporting period by delivering 16 training sessions for staff from 35 entities. To accommodate the shift towards work-from-home arrangements, Finance delivered two pilot sessions to trial the effectiveness of training courses run by an online facilitator rather than using more traditional in-person classes. Both pilots generated successful outcomes and positive responses from attendees.

Over the reporting period, more than 100 people completed at least one training course. This has increased the breadth and depth of skills available to entities using GovCMS, and increases APS flexibility in providing future surge capacity.

Source: 2020–21 Corporate Plan, Key Activity 11, pg 36

2020–21 Portfolio Budget Statements, Outcome 3, pg 49

11.1.1 The following service standards are met or exceeded.

— Client contacts acknowledged within 24 hours and responded to within agreed timeframes 95 per cent of the time.

— Payments (including payroll) made within agreed timeframes 95 per cent of the time.

— Office establishment and relocation projects delivered in accordance with the National Fitout Standards 100 per cent of the time.

— COMCAR reservations will be completed without service failure 99 per cent of the time.

Analysis

Finance’s delivery of timely and efficient services, within our set standards to support current parliamentarians and former prime ministers and their employees under the Members of Parliament (Staff) Act 1984 (MOP(S) Act) is crucial to achieving our purpose.

Ministerial and Parliamentary Services (MaPS) oversees the provision of non-travel related expenses and services to parliamentarians and their respective employees. MaPS also provides high quality, secure and confidential car-with-driver services (COMCAR) to a range of eligible clients, including the Governor-General, the Prime Minister’s Office, federal parliamentarians, the federal judiciary and heads of Commonwealth entities. COMCAR also facilitates delivery of transport services for Guest of Australian Government visits and major events.

In order to determine our performance in delivering these services, Finance identified four high-level service standards. In 2020–21, Finance met all of these service standards.

Finance continues to put the needs of parliamentarians and their employees at the centre when designing and delivering services. This is done by engaging with user reference groups and consultative groups, and reviewing service delivery data and surveys to ensure the best outcomes for our clients. As part of our enhanced delivery of services, in 2020–21 MaPS launched its redesigned website for parliamentarians and MOP(S) Act employees, intended to better support clients by providing them with an improved way to access the information they need, whenever they need it.

Source: 2020–21 Corporate Plan, Key Activity 11, pg 36

2020–21 Portfolio Budget Statements, Outcome 3, pg 50

In 2020–21, the PEMS project was separated into Phase 1 and 2. Phase 1 saw the release of the Human Resources (HR) and payroll administration functions which went live on 1 July 2021. Parliamentarians and their staff have access to increased self-service HR management functions enabling access to payslips, to apply for additional leave types, to maintain personal information and to apply for authorisations in the one system.

Phase 2 will see the release of the work expenses functionality by no later than mid–2022.

PEMS portal (web-based application) access was delivered in 2018, allowing parliamentarians and their staff to access PEMS from any computer or mobile device, to lodge, monitor and certify work expense claims. This provides increased efficiencies and reduces the administrative burden on parliamentarians’ offices.

A number of targeted PEMS adoption strategies were implemented during the 12 months to 30 June 2021, resulting in increased usage of the PEMS portal by parliamentarians and their staff for office expense claims and travel expense claims:

● 62 per cent of parliamentarians have personally used PEMS to certify claims (office or travel)—an increase of 6 percentage points in 12 months

● 91 per cent of parliamentary offices have used PEMS to certify at least one claim (office or travel)—an increase of 7 percentage points in 12 months

● In 2020–21, the proportion of claims processed through PEMS (relating only to claims where PEMS functionality is available) was 74 per cent for office expenses.

Analysis

PEMS is a key element of the reforms to the parliamentary work expenses framework which have been delivered in response to the recommendations of the report of 'An Independent Parliamentary Entitlements System: Review'. The delivery of PEMS has been a high-priority activity for Finance over a number of reporting periods. Finance recognises the importance of achieving improvements in timeliness, efficiency, clarity and transparency of the administration of parliamentary work expenses.

The HR release on 1 July 2021 provides increased self-service functions for parliamentarians and their staff, enabling access to apply for additional leave types, to maintain personal information and to apply for authorisations in the one system.

The full PEMS functionality is expected to be delivered in mid–2022. The revised timeline will ensure the PEMS solution is tested and available to users with supporting education and training.

While the progress of the project has been impacted by a range of factors, including finalising design issues and the deferral of user acceptance testing during the COVID-19 pandemic, significant milestones have been reached in 2020–21. Moreover, adoption levels went beyond that anticipated at the start of the year, attributable to Finance’s enhanced and targeted campaign coinciding with the COVID-19 pandemic and HR release.

Source: 2020–21 Corporate Plan, Key Activity 12, pg 36

For the 2020–21 reporting period, Finance exceeded the 14 m2 occupational density target with an occupational density of 14.08 m2.

This largely stemmed from a change in leasing arrangements in late 2019–20, which saw the cessation of a tenant’s sublease in the One Canberra Avenue tenancy. Work to refit part of the vacated area also contributed to the result.

Analysis

The efficient management of Finance tenancies is an important component of the Department’s business enabling services, which, together with corporate services, IT and workplace support, ensures Finance continues to meet its operational requirements.

The Department considered subleasing and redevelopment opportunities within One Canberra Avenue for 2020–21, including refitting areas of the vacated part of the tenancy. The fit-out activities are expected to be completed in early 2021–22, which will impact density targets over the next reporting period.

The Department is also undertaking workforce planning activities that should contribute to meeting our density targets in 2021–22, and will continue to explore subleasing opportunities.

Overall, these efforts demonstrate the focus Finance maintained throughout this reporting cycle on ongoing efficient management of its resources.