DEPARTMENT of TREASURY - Treasury - ACT Government

DEPARTMENTof TREASURYA U S T R A L I A N C A P I T A L T E R R I T O R Yannual report 2005-2006 volume 1

ISSN 0 642 60237 9© Australian Capital Territory, Canberra 2006This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproducedby any process without written permission from the Territory Records Office, Community and InfrastructureServices, Territory and Municipal Services, ACT Government.GPO Box 158, Canberra City ACT 2601.Produced by Publishing Services for the:Department of TreasuryEnquiries about this publication should be directed to:Department of TreasuryGPO Box 158Canberra ACT 2601www.treasury.act.gov.auPrinted on recycled paperPublication No 06/1019http://www.act.gov.auTelephone: Canberra Connect 132 281i i D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Table of ContentsTransmittal CertificateMissionValuesOrganisation ChartChief Executive Review 1Analysis of Agency Performance 7Output 1.1 – Economic Management: 7Output 1.2 – Financial Management: 10Output 1.3 – Revenue Management: 15Output 1.4 – Procurement Support Services: 17Output EBT 1 – Central Financing Unit: 20Output EBT 1 – Superannuation Unit: 22Output 1.1 – Home Loan Portfolio: 24Output 1.1 – InTACT: 25Human Rights Act 30Access to Government Strategy 31Community Engagement 33Multicultural Framework 35Aboriginal and Torres Strait Islander Reporting 38ACT Women’s Plan 39Management of the Organisation 40Managing Our People 40Human Resource Performance and Analysis 40Staffing Profile 41Culture and Values 43Workplace Diversity 43Workplace Health and Safety 45Learning and Development 46Workplace Relations 48Governance 51Internal Accountability 51Fraud Prevention 52Risk Management and Internal Audit Arrangements 53External Scrutiny 54vviiviiviD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 i i i

Reports Required by Legislation 56Freedom of Information (FOI) 56Public Interest Disclosure 59Territory Records 59Sustainability and Environment 61Commissioner for the Environment Reporting 61Ecologically Sustainable Development 61Strategic Bushfire Management Plan 63Analysis of Financial Performance 64Management Discussion and Analysis 64Strategic Asset Management 65Capital Works Management 68Government Contracting 69External Sources of Labour and Services 70Appendices 78Legislative Reports 78Legislation administered by the department 78Legislative Assembly Committee Inquiries and Reports 79Annexed Reports 82Glossary of Acronyms 83Alphabetical Index 85Compliance Index 88iv D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Transmittal CertificateD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

ACT Department of Treasury organisation chartShared ServicesHeadUnder TreasurerDr Paul GrimesMichael VanderheideExecutive UnitManagerDr Merrilyn SernackPolicy Coordination& DevelopmentDivisionKhalid AhmedRevenueManagementDivisionCommissioner forRevenueGraeme DowellFinance & BudgetDivisionExecutive DirectorMegan SmithiesDirectorStephen MinersSenior ManagerHelen HillPolicy & SystemsManagerGlenn BainFinance & RecoveryManagerPhang LimRevenue AccountsManagerAngel MarinaCompliance ManagerCheryl OlleyAdvice andAssessmentManagerDavid ReadBudget Management& AnalysisDirectorNeil BullessSenior ManagersFloyd KennedyStuart FriendTony HaysDan StewartBudget Strategy& ReportingA/g DirectorLisa HolmesSenior ManagersDavid Morgan (A/g)Paul OgdenAccounting BranchDirectorPhil HextellSenior AccountingManagersAnita HargreavesSandra KennedyCorporateFinance Manager& ControllerKarl PhillipsInvestment andEconomics DivisionExecutive DirectorRoger BroughtonLegal and InsurancePolicy BranchDirectorTom McDonaldEconomics BranchDirectorJason McNamaraCth-State FinancesUnitSenior ManagerJohn PurcellCentral Financing UnitManagerPat McAuliffeSuperannuation UnitManagerGarry CartwrightACT Procurement SolutionsExecutive DirectorJohn RobertsonInTACTA/g General ManagerMick ChisnallACT InsuranceAuthorityGeneral ManagerPeter MatthewsCorporateDevelopmentDivisionDirectorvacant until 1/7/06v i D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

MissionTreasury’s mission is:To inform Government decisions by providing the best advice and implementing those decisions toachieve the highest benefit for the ACT through the effective and efficient allocation and utilisation ofits resources.ValuesTreasury’s values are to:• be responsive to the needs of the Government and the public;• work to achieve high-quality performance and outcomes;• be accountable and responsible for our performance;• strive to deliver efficiency and effectiveness in public administration;• promote open and effective communication with all stakeholders and improve communication andco-operation within the department;• promote trust, respect, fairness, integrity and transparency in all departmental activities; and• value professional development, teamwork, individuals and clients.Further information can be obtained from:Manager, Executive UnitDr Merrilyn SernackPh: (02) 6207 0280Fax: (02) 6207 0304Under TreasurerDr Paul GrimesPh: (02) 6207 0260Fax: (02) 6207 0304Department of TreasuryGPO Box 158Canberra ACT 2601http://www.treasury.act.gov.au/index.shtmlPublicationshttp://www.treasury.act.gov.au/about/publications.shtmlACT Government websitehttp://www.act.gov.au/D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 v i i

v i i i D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Chief Executive ReviewThe OrganisationTreasury provides strategic taxation, financial and economic policy advice and services to the ACTGovernment with the aim of improving the Territory’s financial position and economic management.Treasury plays a leading role in promoting accountability and transparency in the delivery of services tothe community and the management of resources.In addition to its traditional treasury functions, Treasury provides a number of key cross-governmentservices. These include InTACT, the ACT Government’s in-sourced provider of IT infrastructureservices, and a range of tendering, risk management, infrastructure procurement and on-lineprocurement services provided by ACT Procurement Solutions. From February 2007, these twofunctions, as well as the transactional and tactical elements of Human Resources and Financial services,will form part of a new “Shared Services” organisation that will sit within the department and provideservices on a whole-of-government basis.Overview and HighlightsI would like to pay tribute to the hard work and professionalism of Treasury’s staff in 2005-06. Overthe past year, Treasury has successfully completed several significant and challenging projects. Thiscould not have been achieved without the dedication and commitment of our staff to Treasury’s mission,the well-being of the ACT community, and the future growth and development of the Territory.Treasury managed a significant work program during 2005-06 to record a number of importantachievements.In providing analytical, monitoring and reporting services on financial performance to the Government,key achievements included:• the 2004-05 Territory Annual Financial Statements released in October 2005;• the 2005-06 Budget Mid-Year Review released in February 2006; and• the 2006-07 Budget delivered on 6 June 2006.The 2006-07 Budget was presented on a Government Finance Statistics (GFS) basis. The GFS systemis used by all other Australian Governments and provides an improved framework for evaluating theeconomic sustainability of the ACT budget.The 2006-07 Budget also included a far-reaching program of structural changes to place the ACTbudget on a long-term sustainable foundation. The preparation of the 2006-07 Budget was a farmore complex undertaking than usual, particularly as it involved the realignment of departmentalresponsibilities and accounts. This involved a considerable workload for officers in Treasury’s Financeand Budget Division, working closely with finance officers in other departments and agencies.The major structural changes delivered in the 2006-07 Budget were informed by the Strategicand Functional Review of the ACT Public Sector and Services, commissioned by the Executive inNovember 2005. Treasury made a significant contribution to the Review, hosting and providing the coreof the secretariat for the Review. The Review’s report was presented to the Executive in April 2006.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

The Financial Management Amendment Act 2005 (FMA)was tabled and passed during the Spring 2005sitting period to:• standardise and improve governance arrangements for Territory authorities;• introduce the ability to appropriate directly to Territory authorities and Territory OwnedCorporations;• support changes to the performance management framework implemented in the 2005-06Budget; and• facilitate access for Territory authorities to a credit facility from the Territory Banking Account.During 2005-06, Treasury implemented a number of improved financial procedures, including revisingthe model financial report for 2005-06 to adopt Australian equivalents to International FinancialReporting Standards. In addition, Territory-specific accounting policies were developed to assistagencies with accounting issues in relation to portable and attractive items, major bushfire replacementprojects, and property, plant and equipment.Other important financial achievements during 2005-06 included the restructuring of the generalgovernment debt portfolio to implement an interest rate swaps strategy, providing a better spread of risk.At the end of the year, borrowings were in line with the established benchmark targets. The Territoryinvestment portfolio also out-performed the benchmark index with a return of 5.37 per cent (net offees).Treasury provided advice on the long-term funding strategy for the defined benefit superannuationliabilities of the Territory, with choice of fund arrangements completed to enable a 1 July 2006 startdate.In the 2006-07 Budget, the Government announced that the target for funding the Territory’ssuperannuation liabilities would be brought forward from the previous target of 90 per cent funding by2040, to 100 per cent funding by 2030.The Superannuation Provision Account investments achieved a return of 16.3 per cent (net of fees).In terms of financial management, in conjunction with agencies, Treasury provided financialand economic analysis of a number of projects and policy proposals, including the proposeddevelopment of City Hill. Treasury also provided forecasts for key economic variables and revenuesources for the 2005-06 Mid Year Review and the 2006-07 Budget, incorporating the results of arevised macroeconomic forecasting model. Treasury prepared the ACT Government’s primary andsupplementary annual reports on the implementation of National Competition Policy to the NationalCompetition Council. Treasury also represented the ACT Government’s views to the CommonwealthGrants Commission regarding the distribution of GST grants among the states and territories, both for2006-07 and into the future. In addition, Treasury implemented revised arrangements for financing andmanaging the ACT Government vehicle fleet.In 2005-06, Treasury developed the following policies to manage the Territory’s potential exposure topublic liability claims arising from dealings between Territory agencies and the general public:• policies supporting revised insurance Determinations under the FMA, under which all partiesdoing business with the ACT Government now have a consistent expectation of objective, riskbasedcertainty in relation to an appropriate level of public liability insurance the Territoryexpects from them;• policy proposals and objectives relating to the Enterprise Risk Management Framework;• policies and objectives developed by the ACT Insurance Authority (ACTIA) – these werepromulgated across agencies with the assistance of Legal and Insurance Policy Branch; and• risk awareness policies applied by ACTIA in offering training to agencies.In 2005-06, Treasury also:• commenced work with agencies in relation to the essential linkages between risk managementand contract management;• integrated agency risk management activity with the budget and procedural related defencesavailable to the Government under the Civil Law (Wrongs) Act 2002; D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

• assisted community organisations and small businesses to obtain affordable insurance throughbetter risk management;• provided legal support for the winding up of Totalcare Industries Ltd (Totalcare); and• managed the legal aspects of outstanding superannuation issues for Totalcare and the AustralianInternational Hotel School.From 21 April 2006, Treasury became responsible for policies and oversight of Compulsory Third PartyInsurance arrangements and Part 10 of the Road Transport Act.In terms of financial policy advice, in 2005-06 Treasury was scheduled to conduct expenditure reviewsof the Department of Education and Training, the Department of Disability, Housing and CommunityServices and the Emergency Services Authority. These reviews were subsumed within the Strategic andFunctional Review.Treasury also provided financial policy advice to other agencies and the Government on a range ofpolicy issues including:• commissioning a review of the Home Loan Portfolio;• conducting an analysis of the profile of recipients of the Home Buyer Concession Scheme;• assisting ACT Health with the renegotiation of the ACT/NSW Cross-Border Agreement onHealth Services; and• progressing the development and implementation of Triple Bottom Line/Sustainability reportingin the Territory.A major focus for Treasury is the management of the Territory’s taxation revenue system. The ACTRevenue Office commenced implementation of the Online Lodgment and Payment Service Project toprovide for the electronic lodgment of certain tax assessments.Maintaining the integrity of the taxation system is a key priority for the Revenue Office, which has adedicated unit to ensure taxpayers comply with their legal obligations. The 2005-06 target of $300,000revenue per inspector was slightly exceeded with an achievement of $360,078 per inspector. This wasdue mainly to investigations identifying undeclared properties liable for land tax. Also, a number ofFirst Home Owner Grants were requested to be repaid due to the conditions of the grant not being metby recipients.The debt to revenue ratio was 1.5 per cent compared to the target of 2 per cent. The improvement indebt management by the Revenue Office is the result of on-going changes in procedures and practices.The Revenue Office has identified the timely resolution of taxpayer objections to their tax assessmentsas an area where improvements can be made. In 2005-06, additional resources were dedicated tothe determination of objections. While the complexity of many taxpayer objections means they willcontinue to take some time to resolve, the Revenue Office is striving to reduce the time it takes tofinalise the bulk of objections.For capital works, Procurement Solutions, on behalf of client agencies, managed a number of majorprojects, including the completion of the design and early ground works for the new ACT prison, andthe commencement of the construction of Gungahlin Drive Extension. Other projects included:• the commencement of the refurbishment of the Canberra Convention Centre;• the construction of Canberra Glassworks; and• the design of Harrison School.Overall, Procurement Solutions delivered construction activities costing $124 million (the majorcomponent of the whole-of-government capital works program). A total of 422 tenders were called onbehalf of ACT Government agencies, with 443 contracts being issued during 2005-06.In relation to information and communication technology (ICT), InTACT managed a number ofimportant initiatives during 2005-06, including:• completing the private optical fibre data network;• implementing Project unITy to aggregate the Territory’s ICT services;D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

• the technical implementation of Chris21, the new payroll system for the ACT Government;• rolling out the SPAM filter to substantially reduce email spam traffic across the ACTGovernment; and• implementing an ACT Government web site content management and hosting system for use byall ACT Government agencies, and the migration of over 20 sites to the new environment.Mr Ted Quinlan, MLA, resigned as Treasurer from 21 March 2006. Mr Jon Stanhope, MLA, acted asTreasurer from 22 March 2006. Mr Stanhope was appointed Treasurer on 20 April 2006 under ACT(Self-Government) Ministerial Appointments Notice 2006 (No 1).Also on 20 April 2006 under Administrative Arrangements 2006 (No 1), the reporting line for ACTTABand racing and gaming changed from the Minister for Economic Development to the Treasurer pendingthe abolition of the Department of Economic Development on 1 July 2006.Under Administrative Arrangements 2006 (No 2) of 16 June 2006, that reporting line to the Treasurerwas continued, with portfolio responsibility for ACTTAB and racing and gaming moving to Treasury on1 July 2006.OutlookTreasury will again play a central role in assisting the Government to deliver its agenda in 2006-07.A significant priority will be to implement the far-reaching measures stemming from the 2006-07Budget. Together with the Chief Minister’s Department, Treasury will monitor the implementation ofbudget measures by departments and agencies across the ACT public service.In addition and, most importantly, Treasury has been charged with primary responsibility forimplementing several specific measures, including:• the implementation of a strengthened Territory cash management framework, including moreeffective central management of the Territory’s cash assets;• a range of revenue measures, including the implementation of a new fire and emergency serviceslevy and a new fee for utility companies to occupy unleased Territory land for their infrastructure(cables and pipelines);• the introduction of new superannuation arrangements, bringing the ACT public sector in linewith other state and territory governments;• the development of improved whole-of-government capital budgeting and asset managementprocesses;• undertaking a scoping study to determine the most appropriate sale process for Rhodium AssetSolutions, in conjunction with the Rhodium Board; and• the strengthening of Treasury’s budget and financial policy advising capacity.A very significant priority for Treasury will be the implementation of a new shared services centre forthe ACT Public Service.The Shared Services Centre will become fully operational from 1 February 2007. It will bring togethercommon corporate service functions into one central area within the public service, including humanresource management, finance, information technology and communications, procurement, recordsmanagement, and publishing.The Shared Services Centre will incorporate InTACT and Procurement Solutions and will operate on afee for service basis.The new Shared Services Centre will form part of the Department of Treasury. However, it is criticalthat the Shared Services Centre is focussed on the needs of its client departments and agencies, andoperates within a genuine shared responsibility model. In recognition of this, the Shared ServicesCentre will be guided by a board comprising all departmental Chief Executives, and chaired by theChief Executive of the Chief Minister’s Department. D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

From within the Shared Services Centre, both InTACT and Procurement Solutions have severalimportant objectives in 2006-07:• InTACT will assume responsibility for the provision of IT services in the Department ofEducation and Training and the Canberra Institute of Technology, including the provision of ITservices in schools. InTACT will also be upgrading systems and processes in a number of areas,with a key priority being the implementation of an upgraded personal computer operating system(Microsoft XP) across departments and agencies.• Procurement Solutions will focus on completing the consolidation of procurement functions andresources across the ACT Government, building on the work undertaken in 2005-06. ProcurementSolutions will also have a major role to play in assisting agencies to achieve significant savings inthe procurement of goods and services. This will be achieved in a number of ways, includingthrough the greater aggregation of procurements and more strategic approaches to markets. Inaddition, Procurement Solutions will work to further improve procurement processes to reducecosts for government agencies and the costs to the private sector of doing business with the ACTGovernment. A review of the Government Procurement Act 2001 will also be completed in2006-07, and Procurement Solutions will implement any government decisions arising from thereview.In 2006-07, Treasury will be responsible for the collection of around $750 million in taxation revenue.Treasury’s Revenue Management Division will be seeking to further improve its systems and processesto promote efficiency and integrity in the administration and collection of ACT taxes.Over the coming year, Revenue Management Division will work towards developing a new systemto allow for the electronic assessment and payment of many ACT taxes. The introduction of newelectronic assessment and collection systems will give taxpayers access to more efficient and convenientservices, and allow the ACT Revenue Office shopfront to be closed later in the year.Commonwealth-State financial relations will remain an important priority for Treasury in 2006-07. TheCommonwealth Grants Commission is conducting a major five year review of the arrangements fordistributing GST grants between the states and territories, and this will continue to require significantinput from Treasury to ensure that the ACT’s interests are properly represented. In addition, the Councilof Australian Governments has recently committed to an ambitious National Reform Agenda (NRA)across a wide range of government functions. Treasury departments in all jurisdictions, including theACT, are expected to be heavily involved in the development of the NRA.In 2006-07, Treasury will progress the ACT Economics and Finance Graduate Program to attract highquality graduates to the ACT Government. Treasury sees the recruitment and development of graduatesas a critical element of its overall workforce strategy, ensuring that the department maintains a highlyskilled workforce into the future.Dr Paul GrimesUnder TreasurerD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Analysis ofAgency PerformanceOutput 1.1 – Economic ManagementRefer 2005-06 Budget Paper 4, page 102DescriptionDevelops and pursues initiatives to ensure the economic interests of the ACT and its residents areprotected and maximised through providing advice on economic and regulatory reform and evaluatingmajor projects, facilitates appropriate intergovernmental financial relations and provides communityinsurance support. Also oversights the Territory’s transactional banking arrangements, the motorvehicle financing facility, and manages the Territory Banking Account.Key Achievements• In conjunction with agencies, provided financial and economic analysis of a number of projectsand policy proposals including the proposed development of City Hill.• Provided forecasts for key economic variables and revenue heads for the 2005-06 Mid-YearReview and the 2006-07 Budget, incorporating the results of a revised macroeconomicforecasting model.• Produced the ACT Government’s primary and supplementary annual reports on theimplementation of National Competition Policy (NCP) to the National Competition Council.• Participated in a number of exercises associated with the distribution of GST grants among thestates and territories, both for 2006-07 and into the future.• Implemented revised arrangements for financing and managing the ACT Government vehiclefleet.OrganisationAs at 30 June 2006, Output 1.1, Economic Management comprised the Economics Branch,Commonwealth-State Finances Unit, Legal and Insurance Policy Branch, and Central Financing Unit, allof which are located in the Investment and Economics Division.Economics BranchThe Economics Branch comprises three units: Macroeconomics and Budget Forecasting, Major Projectsand Policy Analysis, and Microeconomic Reform. The Branch is Treasury’s chief source of economicanalysis and advice and deals with issues such as efficiency, public finances and economic development,together with providing advice on community issues, including social and environmental well-being.In 2005-06 the Branch:• prepared economic and revenue forecasts for the ACT Budget and Mid-Year review;• monitored and reported on the state of the ACT economy;• provided financial and economic analysis of policy proposals, including major capital works;• assisted agencies to improve the quality of financial and economic analysis in reports,submissions and other documents;D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

• monitored assistance to industry and assessed proposals for financial assistance under the ACTBusiness Incentive Fund, in compliance with the Interstate Investment Cooperation Agreement;• offered comments on the regulatory impact of policy proposals and assistance in preparation ofRegulatory Impact Statements (RIS);• completed a series of seminars across the ACT Government on the preparation of RIS statements;• represented the ACT on the Council of Australian Governments (COAG) competition andregulatory reform working groups;• provided advice to government on competition and regulatory matters, particularly in relation toenergy and water markets; and• established an economics and finance graduate recruitment stream within the main ACTGovernment program.Commonwealth-State Finance UnitThe Commonwealth-State Finances Unit is responsible for overseeing the day-to-day operations ofthe ACT Government’s participation in Commonwealth-State financial arrangements, with AustralianGovernment funding accounting for approximately 42 per cent of the ACT’s General GovernmentSector revenues in 2005-06.In 2005-06 the Unit:• provided advice on Commonwealth-State issues associated with the financing of the ACT in thecontext of Canberra as the national capital and seat of the Australian Government;• oversighted the ACT’s participation in Intergovernmental Agreement on the Reform ofCommonwealth State Financial Relations (IGA);• managed the ACT’s participation in the deliberations of the Commonweath Grants Commission(CGC), which is responsible for recommending the States’ and Territories’ annual shares of theGST;• provided policy advice and monitored the Australian Tax Office’s (ATO) administration of theGST, through the GST Administration Sub-Committee (GSTAS); and• participated in various national intergovernmental forums and working parties and oversightedother Commonwealth grant funding arrangements, including Specific Purpose Payments (SPPs).Legal and Insurance Policy BranchThe Legal and Insurance Policy Branch is responsible for formulating the Government’s policy onbroader community insurance related matters.In 2005-06 the Branch:• developed policies to manage the Territory’s potential exposure to public liability claims arisingfrom dealings between Territory agencies and the general public;• assisted community organisations and small businesses to obtain affordable insurance throughbetter risk management; and• provided general internal legal support to Treasury, for example, in relation to the winding up ofTotalcare Industries Ltd (Totalcare) and in managing legal aspects of outstanding superannuationissues for Totalcare and the Australian International Hotel School.From 21 April 2006, the Legal and Insurance Policy Branch assumed responsibility for policyformulation and oversighting Compulsory Third Party Insurance and Part 10 of the Road Transport Act.Central Financing UnitThe Central Financing Unit is responsible for managing the borrowing and investments of the GeneralGovernment sector, managing the financing and fleet management arrangements for the Territory’svehicle fleet, and managing whole-of-government transactional banking arrangements. D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Performance Against Accountability IndicatorsAgainst a target of 120 briefings on the ACT economy, 119 briefings were produced in 2005-06. Theestimated target of one submission to the ACT’s credit rating agency, Standard and Poor’s, was notmet due to a change in the timing of the 2006-07 ACT Budget, and subsequent rescheduling of thesubmission to the first quarter of 2006-07.Future DirectionsIn 2006-07 the Investment and Economics Division will work towards:• implementing the utilities land use permit arrangements to apply from 1 January 2007;• managing the ACT’s 2006 and 2007 submissions to Standard and Poor’s;• representing the ACT on the COAG National Reform Agenda Working Groups on infrastructureregulation, best practice regulation, and economic modeling;• progressing an ACT Government Economics and Finance Graduate Program in consultation withother ACT Government agencies;• managing the new ACT Government fleet financing arrangements applying from 1 July 2006.Fleet management oversight will be provided by Procurement Solutions;• oversighting the whole-of-government transactional banking arrangements;• participating in the annual update of GST distribution arrangements and the major review by theCGC of the distribution arrangements to apply from 2010-11; and• analysing the findings of the review of the interstate distribution of local road FinancialAssistance Grant – the CGC will report its findings to the Australian Government forconsideration. The outcome is likely to be material for the ACT as current indications reflect arevenue loss to the Territory.Further information can be obtained from:Roger Broughton Executive Director (02) 6207 6082 roger.broughton@act.gov.auInvestment andEconomics DivisionJason McNamara Director (02) 6207 0337 jasonp.mcnamara@act.gov.auEconomics BranchJohn Purcell Senior Manager (02) 6207 0269 john.purcell@act.gov.auCommonwealth StateFinances UnitTom McDonald Director (02) 6207 0284 tom.mcdonald@act.gov.auLegal and InsurancePolicy BranchPatrick McAuliffe Manager (02) 6207 0087 patrick.mcauliffe@act.gov.auCentral Finance UnitInvestment and Economics DivisionEconomic AnalysisCommonwealth State FinancesRisk AdvisoryRisk Guidehttp://www.treasury.act.gov.au/fig.shtmlhttp://www.treasury.act.gov.au/snapshot/index.shtmlhttp://www.treasury.act.gov.au/grants_commission/grants.htmlhttp://www.insuranceriskadvice.act.gov.au/http://www.treasury.act.gov.au/risktrain/index.htmlD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Output 1.2 – Financial ManagementRefer 2004-05 Budget Paper 4 page 92DescriptionProvision of analysis, monitoring and reporting on financial performance to assist the Government toachieve its preferred outcomes.Key Achievements• 2004-05 Territory Annual Financial Statements released in October 2005.• 2005-06 Budget Mid-Year Review released in February 2006.• 2006-07 Budget delivered on 6 June 2006.OrganisationThis output relates to the Finance and Budget Division and the Policy Coordination and DevelopmentDivision.The Finance and Budget Division (FABD) is responsible for advising the Government and agencies on thedevelopment of the Territory’s budget, advising on financial issues relating to agencies and the Territory,and accounting policies and financial frameworks.FABD comprises three branches: Accounting, Budget Management and Analysis, and Budget Strategy andReporting.The Accounting Branch is responsible for improving the Territory’s financial management frameworkand providing accounting expertise and strategic financial advice. The Branch also has responsibility forundertaking significant amendments to the FMA, providing financial training to agencies, and issuingsources of relevant financial instructions for the whole-of-government.The Budget Management and Analysis Branch is responsible for assisting in the development of theTerritory’s annual budget, monitoring, analysing and reporting to the Government and other stakeholderson the financial position of a broad range of Government agencies and businesses, and advisingGovernment and agencies on financial management, resource allocation, and budget development issues.The Budget Strategy and Reporting Branch is responsible for providing strategic advice on theGovernment’s financial position, the coordination and development of the Government’s budget, and theconsolidation of budget financial statements and financial outcome reporting. The Branch also providesperiodic reporting to the Australian Bureau of Statistics (ABS) and the CGC on behalf of the Government.The Branch distributes Treasury memoranda and is responsible for the administration of the FMA. TheBranch also provides policy advice about governance arrangements for those government businesses forwhich Treasury has direct portfolio responsibility.The Policy Coordination and Development Division is responsible for coordinating major policydevelopment within Treasury and advising the Government in respect of significant long-term financialissues and risks likely to impact on the Territory’s budget. The Division provided secretariat servicesfor the Strategic and Functional Review of the ACT Public Sector and Services commissioned by theExecutive in November 2005.The Division is also responsible for the development of a triple bottom line/sustainability assessmentframework for adoption by government agencies.1 0 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Performance Against Accountability IndicatorsPreparation and Delivery of the ACT BudgetThe 2006-07 Budget was delivered on 6 June 2006 and was debated in the Legislative Assembly inAugust 2006. The Government Financial Statistic Net Operating Balance is budgeted to be -$80.3million for 2006-07, then steadily improving in the forward years to $67.7 million in 2009-10.The 2006-07 Budget incorporates a new capital works program of $272.2 million, and provides fundingin 2006-07 for new works and work in progress of $337 million.The 2006-07 Budget was presented on a Government Finance Statistics (GFS) basis. The GFS systemis used by all other Australian Governments and provides an improved framework for evaluating theeconomic sustainability of the ACT budget.Whole of Government Consolidated Finance Report, Management Reports and Capital WorksQuarterly Territory consolidated financial reports and the Annual Territory Financial Statements wereprovided to the Legislative Assembly in line with statutory timeframes. The quarterly reports containeda detailed analysis of the Territory’s financial position.External Government ReportingThe Territory’s external financial reporting requirements to the ABS and CGC were met, fulfilling theTerritory’s obligations under the Uniform Presentation Framework (UPF) Agreement.Expenditure Reviews and Strategic and Functional ReviewThe Policy Coordination and Development Division is responsible for expenditure reviews of agencies.There were three agencies scheduled for examination by the Expenditure Review Committee in 2005-06: the Department of Education and Training, the Department of Disability, Housing and CommunityServices, and the Emergency Services Authority.These reviews were subsequently subsumed within the Strategic and Functional Review.The Managing Director of ACTEW Corporation, Michael Costello, headed the Review. Mr Costellowas assisted by former Australian Treasury officer Greg Smith, the Adjunct Professor of Economics andSocial Policy at the Australian Catholic University.The Terms of Reference for the Review were to:• review the outlook for the ACT budget and identify the major medium term fiscal risks;• undertake a high level benchmarking of government expenditure in the ACT relative to otherjurisdictions in Australia, drawing on available data (including data published by the CGC andthe Steering Committee for the Review of Government Service Provision);• consider all major areas of government expenditure and identify programs that could be deliveredmore efficiently or could be scaled back to more effectively meet whole-of-governmentobjectives;• identify options to improve efficiency through more effective structures for governmentoperations;• make recommendations on specific options for reducing expenditures or increasing non-taxationrevenues; and• investigate and report on options in relation to taxation revenue.The Review Report was presented to the Executive in April 2006.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 1 1

Policy AdviceThe Policy Coordination and Development Division also provided policy advice to other agencies andthe Government on a range of policy issues including:Housing• commissioning a review of the Home Loan Portfolio; and• conducting an analysis of the profile of recipients of the Home Buyer Concession Scheme, whichprovides stamp duty concessions on property purchases, primarily to first home-buyers.Health• assisting ACT Health with the renegotiation of the ACT/NSW Cross-Border Agreement onHealth Services. This agreement describes the methods used for both the ACT and NSW tocompensate each other for the use of local health services by residents of the other jurisdiction.The work involved providing quantitative analysis on the risks to the ACT under variouscompensation options provided by NSW; andTriple Bottom Line• progressing the development and implementation of Triple Bottom Line/Sustainability reportingin the Territory, with a Triple Bottom Line Assessment Framework discussion paper developedfor ACT Government agencies.Other IssuesGovernment Business Enterprise Oversight and Governance Implementation of new governancearrangements for statutory authoritiesA comprehensive review of the governance arrangements for prescribed statutory authorities in 2004-05resulted in significant changes to the FMA, which were passed in the Legislative Assembly on18 October 2005. New Parts 8 and 9 of the FMA provide a standardised governance and accountabilityframework for prescribed statutory authorities, replacing various outdated and contrasting provisionspreviously contained in the enabling legislation of each statutory authority.Sale of the Australian International Hotel SchoolIn April 2005, a project management team was established to negotiate, on behalf of the Territory, theproposed acquisition of the Australian International Hotel School by the Blue Mountains InternationalHotel Management School (BMHS). The sale was conditional upon the BMHS being accredited todeliver the degree course to existing students and the repeal of the Hotel School Act 1996. BMHSgained accreditation effective from 3 August 2005, and the Hotel School Act 1996 was repealed on31 October 2005 to coincide with the transfer of ownership to the BMHS. Under the terms of the sale,the Australian International Hotel School name will be retained and the school will continue to operateat the Hotel Kurrajong under a long term sublease.ACT Financial FrameworkThe Financial Management Amendment Act 2005 was tabled and passed during the Spring 2005 sittingperiod. The amendments:• standardise and improve governance arrangements for Territory authorities;• introduce the ability to appropriate directly to Territory authorities and Territory OwnedCorporations (TOCs);• support changes to the performance management framework implemented in the 2005-06Budget; and• facilitate Territory authorities’ access to a credit facility from the Territory Banking Account.1 2 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Improved Financial ProceduresTwo significant issues were progressed in 2005-06:• The Model Financial Report for 2005-06 was revised significantly, largely to address changesassociated with the adoption of Australian equivalents to International Financial ReportingStandards (AIFRS); and• ACT-specific accounting policies were developed to assist agencies with accounting issues inrelation to portable and attractive items, major bushfire replacement projects, and property, plantand equipment.Provision of Financial Management TrainingTreasury provided the following financial training modules during 2005-06:• Young Women’s Christian Association (YWCA) Women as Decision Makers;• Tax Managers Forum Training;• Budget Management for Program Managers;• FMA – Recent Financial Framework Amendments; and• Model Financial Report and Management Discussion and Analysis Update.Future DirectionsIn 2006-07, the Finance and Budget Division and the Policy Coordination and Development Divisionwill work towards:• implementing the Government’s new capital planning and development process announced in the2006-07 Budget;• undertaking the scoping study to examine the means by which Rhodium Asset Solutions will besold;• monitoring, reviewing and assessing the implementation of structural reforms to Governmentdepartments and agencies announced in the 2006-07 Budget;• amending the FMA to address changes to the Territory cash management frameworkimplemented in the 2006-07 Budget;• issuing a handbook stating the Territory’s revised financial framework, and providing associatedtraining to agencies;• expanding the range of ACT-specific accounting policies developed to assist agencies withaccounting issues; and• implementing a triple bottom line/sustainability assessment framework for the ACT Government.Further information can be obtained from:Megan Smithies Executive Director (02) 6207 0225 megan.smithies@act.gov.auFinance & BudgetDivisionNeil Bulless Director (02) 6207 0264 neil.bulless@act.gov.auBudget Management& Analysis BranchKirsten Thompson Director (02) 6207 0176 kirsten.thompson@act.gov.auBudget Strategy& Reporting BranchLisa Holmes A/g Director (02) 6207 5760 lisa.holmes@act.gov.auAccounting BranchD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 1 3

Khalid Ahmed Executive Director (02) 6207 0228 khalid.ahmed@act.gov.auPolicy Coordination& Development DivisionStephen Miners Director (02) 6207 5590 stephen.miners@act.gov.auPolicy Coordination& Development Division1 4 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Output 1.3 – Revenue ManagementRefer 2005-06 Budget Paper 4, page 103(includes the subsumed report of the Commissioner for ACT Revenue)DescriptionOptimise tax revenue concurrent with achieving a simple, equitable and efficient tax system, developpolicy, and advise and assist clients to meet their obligations.Key Achievements• Developed a Divisional Strategic Plan, which details vision, mission, values and strategicdirection for 2006-2010.• Finalised the implementation of the Territory Revenue System (TRS) in July 2005.• Commenced implementation of the Online Lodgment and Payment Service (OLPS) Project toprovide for electronic lodgment of certain tax assessments by the end of 2006.• Started the Property.Gov project, which will upgrade the Rates and Land Tax System(Community) with a modern Microsoft SQLServer database system.• Ceased duty on the acquisition of non-real core business assets and franchise arrangements(except long-term ones) on and from 1 July 2006.• Updated the Home Buyer Concession Scheme in July 2005 and January 2006 to reflect propertyand market fluctuations.• Introduced a facility to enable an applicant to lodge and pay for a Certificate of Rates, Land Taxand Other Charges online.• Completed new lodgment forms for certain transactions to assist taxpayers to provide all therelevant details at the time of lodgment.• Scanned rates and land tax documents. These documents will eventually be available on theIntegrated Document Management System.• Continued bushfire and drought relief through waivers of rates and land tax for affected propertyowners.• Achieved through compliance activity in 2005-06 the issue of 366 assessments and the collectionof $4.4 million in revenue.• Reduced outstanding arrears to 1.5 per cent of total budget revenue; the target was 2 per cent,with the 2004-05 result being 1.8 per cent.OrganisationRevenue Management Division (www.revenue.act.gov.au) collects revenue, develops tax policy, andadministers taxation legislation in the ACT. The Division also administers a number of governmentfinancial assistance schemes, including the First Home Owner Grant Scheme and the Home BuyerConcession Scheme.Revenue Management Division comprises the following sections:• Policy and Systems is responsible for policy advice on ACT taxation matters, the developmentand amendment of the Territory’s taxation legislation, and the development and maintenance ofIT systems used by the ACT Revenue Office (http://www.revenue.act.gov.au/policy.html).• Revenue Accounts administers Rates, Land Tax, Payroll Tax and other return taxes and maintainsrevenue accounts (http://www.revenue.act.gov.au/rates.html).• Advice and Assessments is responsible for the operation of the Customer Service Centre andadministers tax laws and provides advice relating to ACT taxes (http://www.revenue.act.gov.au/taxserv.html)D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 1 5

• Compliance is responsible for maintaining and enforcing compliance with all taxes administeredby the ACT Revenue Office (http://www.revenue.act.gov.au/compli.html)• Finance and Recovery provides financial reporting, coordinates budget, manages arrears, andadministers the Home Loan Portfolio on behalf of the ACT Commissioner for Housing(http://www.revenue.act.gov.au/fandr.html).Performance Against Accountability IndicatorsCompliance revenue per inspectorThe 2005-06 target of $300,000 revenue per inspector was exceeded with an achievement of $360,078per inspector. This was due mainly to investigations identifying undeclared properties liable for landtax. Also, an unexpected number of First Home Owner Grants were requested to be repaid due to theconditions of the grant not being met by recipients.Debt management - level of outstanding debtThe debt to revenue ratio was 1.5 per cent compared to the target of 2 per cent. The improvement indebt management is the result of on-going changes in procedures and practices.Future DirectionsIn 2006-07, the Revenue Management Division will work towards:• reviewing legislation to protect revenue, to implement government decisions on tax reform, andto make administrative or compliance efficiency gains for taxpayers and government;• making greater use of technology for the provision of services, including greater taxpayer accessto information;• developing a system to allow for electronic service delivery, including electronic lodgment andpayment for many ACT taxes, and the closure of the Revenue Management Division shopfront;• upgrading the Rates and Land Tax System (Community) with a modern Microsoft SQLServerdatabase system; and• increasing the resources devoted to compliance activities and dealing with complex matters.Further information can be obtained from:Graeme Dowell Commissioner (02) 6207 0010 graeme.dowell@act.gov.aufor Revenue,Revenue ManagementDivisionAngel Marina Manager (02) 6207 0063 angel.marina@act.gov.auRevenue AccountsSectionDavid Read Manager (02) 6207 0066 david.read@act.gov.auAdvice &Assessments SectionCheryl Olley Manager (02) 6207 0103 cheryl.olley@act.gov.auCompliance SectionGlenn Bain Manager (02) 6207 0293 glenn.bain@act.gov.auPolicy & SystemsSectionPhang-Chun Lim Manager (02) 6207 0172 phang-chun.lim@act.gov.auFinance & RecoverySection1 6 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Output 1.4 – Procurement Support ServicesRefer 2005-06 Budget Paper 4. page 103DescriptionDevelops procurement policy, manages the buyers and sellers information service (basis), on-lineprocurement services, business opportunities, and supplier notification of tenders and contracts,supports ACT Government purchasing officers and the implementation of construction industry reforms,including pre-qualification of suppliers and provides risk management services to ACT Governmentagencies.Key Achievements• Established a restructured Procurement Solutions with the capability and capacity to deliverprocurement services to all ACT Government agencies and significant savings to the ACT budget.• Delivered construction activities costing $124 million, comprising the major component of thewhole-of-government capital works program.• Managed on behalf of client agencies, a number of major or significant projects, includingcompletion of the design and early ground works for the new ACT Prison, and thecommencement of the construction of the Gungahlin Drive Extension.• Managed the commencement of procurement services relating to the refurbishment of theCanberra Convention Centre, the construction of Canberra Glassworks, and the design ofHarrison School.• Managed procurement services relating to the completion of the Multicultural Centre underbudget and on time, the Bushfire Memorial in Stromlo Forest Park, Woden Police Station, KippaxLibrary, several major upgrades for government schools, and a number of office fit-outs.• Called a total of 422 tenders on behalf of ACT Government agencies, and issued 443 contractsduring 2005-06.OrganisationIn 2005-06 ACT Procurement Solutions absorbed functions, staff and resources from across the ACTpublic sector. This followed the Government’s decision to consolidate key procurement actions forprocurements above $20,000 in Procurement Solutions. This supplemented Procurement Solutions’existing role and capabilities, as well as reinforcing its role as the Territory’s major source of expertiseon procurement-related issues.Procurement Solutions provides capital works delivery services, procurement advice, and tendering andcontracting services to the majority of ACT Government agencies. It provides secretariat support to theGovernment Procurement Board and operates the ACT’s major Approved Procurement Unit (APU). Inaccordance with the requirements of the Government Procurement Act 2001 and associated statutoryinstruments, the APU considers the vast majority of Procurement Plans.Procurement Solutions also manages a range of procurement support systems and services whichfacilitate private sector involvement in government contracts. These systems include the basis websiteand a range of pre-qualification schemes. Through its management of the Central Contracts Register,Procurement Solutions also facilitates public accountability and transparency of government contractingactivities.Infrastructure Procurement BranchThe Branch assisted ACT Government agencies with the procurement of capital works, includingpreparation of relevant documentation, obtaining regulatory approvals, conduct of tendering processes,D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 1 7

tender evaluation, contract formation and management of project delivery. In addition, agencies werealso assisted to establish contracts for asset maintenance programs and off-budget works. In late 2005the Branch became responsible for assisting the Department of Urban Services (now the Department ofTerritory and Municipal Services) in the delivery of the Gungahlin Drive Extension.Contracts & Tendering BranchThis group, following the consolidation of procurement activities, advised and assisted all ACTGovernment agencies with the development of their procurement, risk management, negotiation andtender evaluation plans, advertising requests for tender, tender documentation and tender box services,tender evaluations, and contract documentation and execution services. The group also administeredand further developed the Supplier Pre-qualification Schemes in a number of sectors.Procurement Policy UnitThe Unit provided secretariat support to the Government Procurement Board, management of the APU,policy advice to agencies and executives, and administrative support to the Procurement ConsultativeCommittee. The Unit was the Territory’s primary participant in the activities of the AustralianProcurement and Construction Council.During 2005-06, a number of industry forums were held on a range of procurement policy andoperational issues. Forum participants included representatives from a wide range of industryassociations, unions and firms.In accordance with the requirements of the Government Procurement Act 2001, a review of theoperations of the Act commenced in June 2006. A report on the outcome of the review will be providedto the Legislative Assembly in late November 2006.Performance Against Accountability IndicatorsProportion of Government funded annual Capital Works program supported with projectprocurement services.During 2005-06, Procurement Solutions provided project procurement services to projects equivalentto 62 per cent of the Government’s Capital Works program. A total of $124 million was expended byProcurement Solutions on behalf of a wide range of ACT Government agencies on the construction ofinfrastructure and other public facilities. This amount was 68 per cent of the ACT’s total capital worksexpenditure during 2005-06.Quality Management Systems ComplianceDuring 2005-06, the compliance of Procurement Solutions and its Quality Management System withthe requirements of international quality standard ISO9001:2000 was re-certified for a further 3 years,subject to periodic surveillance audits. The Quality Management System covers the vast majorityof Procurement Solutions’ activities. In early 2006, a category 1 non-conformance was identifiedrelating to the activities of a sub-unit which had transferred to Procurement Solutions as part of theprocurement centralisation process. The non-conformity arose because the quality auditor consideredthe underlying activities, which had transferred to Procurement Solutions, were outside the scope of itsexisting certification relating to construction activities. This non-conformity is being addressed throughdocumentation of relevant practices and procedures and expansion of the coverage of the QualitySystem.Future DirectionsIn 2006-07, ACT Procurement Solutions will work towards:• completing the review of the Government Procurement Act 2001 and implementing anyGovernment decisions arising from the review;• completing the consolidation of key procurement functions and resources from across the ACTpublic sector and delivering high-quality procurement services to agencies;1 8 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

• supporting agencies in the delivery of the vast majority of the ACT Government’s capital worksprogram, including substantial progress on delivery of the ACT Prison project and the GungahlinDrive Extension;• improving and further integrating the range of procurement support systems which are availableto assist ACT agencies and the business community; and• assisting agencies to achieve significant savings in the procurement of goods and services throughenhanced aggregation of procurements, more strategic approaches to markets, and furtherimproving procurement processes to reduce Government costs, and the costs to the private sectorof doing business with the ACT Government.Further information can be obtained from:John Robertson Executive Director (02) 6207 0265 john.robertson@act.gov.auProcurementSolutionsRobyn Hardy Director (02) 6207 5876 robyn.hardy@act.gov.auProcurementSolutionsMike Berry Manager (02) 6207 5576 mike.berry@act.gov.auProcurementSolutionsBob Venables Manager (02) 6207 0226 bob.venables@act.gov.auProcurementSolutionsACT Contracts Registerhttp://www.contractsregister.act.gov.au/D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 1 9

Output EBT 1 – Central Financing UnitRefer 2005-06 Budget Paper 4, page 123DescriptionManage the investment and borrowing activities of the ACT Government.Key Achievements• The procurement and the appointment of a replacement financial debt liability risk managementadvisor and a debt management system provider.• Restructuring of the government debt portfolio to align it with the debt management benchmarkby implementing an interest rate swaps strategy.OrganisationThe Central Financing Unit (CFU) manages the central finances of the Territory through theTerritory Banking Account. The Unit provides services to the Government that includesfinancial asset and liability management through the establishment of investment andborrowing policies and objectives, and the coordination of investment and borrowing activities.CFU manages the surplus cash balances of the Territory and invests funds through externalmanagers within known cashflow requirements, and establishes investment policies. The CFUis also responsible for the administration of the Territory’s debt portfolio and the managementof the Territory’s debt servicing liabilities.The objective of the CFU is to effectively manage the capital markets functions throughthe maximisation of returns on investments within relevant risk tolerances, the achievementof competitive borrowing rates commensurate with the Territory’s credit rating, and thedevelopment of effective financial risk management strategies.The CFU, through the Territory Banking Account, recognises and manages the Government’sdebt liability and Territory unencumbered cash. Revenues on behalf of the Territory aretransferred to the Territory Banking Account, and fortnightly appropriation disbursements toagencies are made from the Territory Banking Account.Performance Against Accountability IndicatorsBorrowing ManagementAt the end of the 2005-06 financial year, the Territory’s debt portfolio was in line with benchmarkexpectations. During the year, the general government debt portfolio was restructured to align tothe benchmark by implementing an interest rate swaps strategy. The debt management result was asfollows:• a modified duration of 2.56 years was achieved against the benchmark target of three years(a policy range of ±0.5 years); and• a floating rate debt exposure of 16.15 per cent was achieved against the benchmark of afloating rate debt exposure of no more than 30 per cent.Investment ManagementDuring 2005-06, the Territory investment portfolio out-performed the target benchmark. Investmentreturns achieved (after fees) were as follows:• Cash Enhanced Fund: an investment return of 5.99 per cent was achieved against a benchmarkof 5.76 per cent; and2 0 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

• Fixed Interest Fund: an investment return of 3.57 per cent was achieved against a benchmark of3.41 per cent.Future DirectionsIn 2006-07, the CFU will work towards:• the ongoing management of the Government’s debt portfolio;• the ongoing management of the General Government Sector’s investment portfolio; and• implementing new investment arrangements applying to agencies as a result of new cashmanagement arrangements. These arrangements will require agencies’ cash to be maintainedcentrally and disbursed on a needs basis.Further Information can be obtained from:Roger Broughton Executive Director (02) 6207 6082 roger.broughton@act.gov.auInvestment &Economic DivisionPatrick McAuliffe Manager (02) 6207 0187 patrick.mcauliffe@act.gov.auCentral FinancingUnitD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 2 1

Output EBT 1 – Superannuation UnitRefer 2005-06 Budget Paper 4, page 153DescriptionManagement of the Superannuation Provision Account (SPA) and administration of the superannuationarrangements for Members of the Legislative Assembly (MLAs).Key Achievements• Completed a review into the long-term funding strategy for the defined benefit superannuationliabilities of the Territory.• Completed the triennial actuarial review using salary and membership data as at 30 June 2005.• Investment portfolio return out-performed the established benchmark.• Establishment of choice of fund arrangements to apply from 1 July 2006.OrganisationThe Superannuation Unit is responsible for managing funds set aside to meet employer superannuationliabilities of the Territory and its agencies, and for administering superannuation arrangements forMLAs.Until 30 June 2006, permanent ACT Government employees are members of the various Commonwealthsuperannuation schemes. The Commonwealth Superannuation Scheme (CSS) and the Public SectorSuperannuation Scheme (PSS) closed to new membership on 30 June 1990 and 30 June 2005respectively. Both these schemes are, at least partially, defined benefit schemes. From 1 July 2005, newemployees have been provided with membership of the PSSap, a fully funded accumulation schemerequiring an employer contribution of 15.4 per cent. From 1 July 2006, fund of choice arrangements areavailable to new employees.The SPA was established in 1991 to assist the ACT Government in managing its superannuationliabilities. The SPA is not a superannuation scheme for ACT Government employees, but an ACTGovernment account that receives appropriations and makes payments in connection with the ACTGovernment’s superannuation liabilities to the Commonwealth and to MLAs.The SPA receives appropriations and contributions from the ACT Budget and complies with theTerritory Superannuation Provision Protection Act 2000. During 2005-2006, capital injections into theSPA amounted to $125 million.The key investment objective of the SPA is to achieve a long-term annual rate of return averaging fiveper cent real (net of fees). In conjunction with planned annual appropriations, SPA assets are estimatedto achieve a long-term objective of 100 per cent level of funding of the Territory’s superannuationliability by 2030.Performance Against Accountability IndicatorsRatio of the investment earnings return divided by the established benchmark:• The investment portfolio matched the benchmark for the 2005-06 financial year, returning16.3 per cent against an asset-weighted benchmark return of 16.3 per cent.Actuarial revision of Territory superannuation liability:• The triennial actuarial review of the Territory’s superannuation liability using membership data asat 30 June 2005 was completed. The revised superannuation liability estimates of this review arecontained within the 2005-06 financial year result and the 2006-07 Budget estimates.Production of annual member statements for MLAs:• Annual superannuation statements were issued for all MLAs during October 2005.2 2 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Future DirectionsIn 2006-07 the Superannuation Unit will work towards:• undertaking an annual actuarial review of the Territory’s defined benefit superannuation liabilities;• undertaking a strategic investment review and implementing changes to the investment portfolioas required;• achieving an investment return greater than the established benchmark; and• achieving an average long-term investment return of five per cent real (net of inflation and fees).Further information can be obtained from:Roger Broughton Executive Director (02) 6207 6082 roger.broughton@act.gov.auInvestment andEconomics DivisionGarry Cartwright Manager (02) 6207 0178 garry.cartwright@act.gov.auSuperannuation UnitD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 2 3

Output 1.1 – Home Loan PortfolioRefer 2005-06 Budget Paper 4, page 133DescriptionAdministration of the ACT Home Loan Portfolio.Key Achievements• Reduced the number of loans to 446 as at the end of June 2006 (46 less than the Budget target of492). There were 560 outstanding loans at the start of 2005-06.• Repaid Commonwealth loans in accordance with the payment schedule.• Issued bi-annual loan statements to loan borrowers.• Reduced the total number of loans in arrears.OrganisationThe Home Loan Portfolio is responsible for administering home loans granted by the Commissioner forHousing to assist low-income households in achieving home ownership. All ACT Government homebuyerlending ceased in 1996.The Portfolio’s objective is to administer the remaining home loans effectively and efficiently.Performance Against Output MeasuresIncrease in net assets for the financial yearThe increase in net assets of $3.4 million was higher than the Budget estimate of $2.5 million. Theincrease was due to the net effect of an increase in the amount of unbudgeted other revenue (because ofa downward revision of provisioning for doubtful debts) and the decrease in market value of long-terminvestment and bad debt expenses.Administration Cost per Home LoanThe administration cost per managed home loan of $889 was higher than the Budget estimate of $816.The increase was due to a higher number of loan repayments being processed than expected.Other IssuesThe level of the Portfolio’s provision for doubtful debt in 2005-06 decreased from $12.5 million to$9.4 million as a result of the overall reduction of outstanding loans.Future DirectionsIn 2006-07, the Home Loan Portfolio will work towards:• continuing the development of policies and strategies for the effective and efficient managementof home loans;• developing effective strategies for the reduction of outstanding arrears; and• upgrading the IT systems for home loans.Further information can be obtained from:Graeme Dowell Director (02) 6207 0010 graeme.dowell@act.gov.auRevenueManagement DivisionPhang-Chun Lim Manager (02) 6207 0172 phang-chun.lim@act.gov.auFinance & RecoverySection2 4 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Output 1.1 – InTACTRefer 2005-06 Budget Paper 4, page 141DescriptionInTACT’s objective is to provide an integrated information and communications technology (ICT)service to the ACT Public Service.InTACT is a single shared ICT service provider providing a complete range of services includinginfrastructure, applications support and development, and policy and project services.Key Achievements• Completion of the private optical fibre data network.• Roll-out of telecommunications products and services providing a platform for converged voiceand data services.• Implementation of Project unITy which is designed to amalgamate all ICT services and staffwithin a single agency, InTACT.• Re-structuring of InTACT to facilitate better customer services delivery to agencies.• Implementation of a new whole-of-government payroll system, Chris21, on behalf of the ChiefMinister’s Department.• Takeover of ACT Government payroll services from CITEC.• Roll-out of a SPAM filter to substantially reduce email spam traffic across the ACT Government.• Implementation and ongoing loading and enhancement of Marval, InTACT’s new service deskmanagement tool.• Establishment of an ICT Policy and Planning Section and Policy Review Group to coordinatepolicy development across the ACT Government.• Implementation of an ACT Government web site content management and hosting system and themigration of over 20 sites to the new environment.• Redevelopment of the Learner Licence Knowledge Test for the Department of Urban Services.This project received the inaugural Australian Government e-Government award for excellence.• Significant increase in the number and type of changes being coordinated through the changemanagement process to ensure that standardised methods and procedures.OrganisationIn mid 2005, InTACT commenced Project unITy as a result of a Government decision to amalgamate allICT staff into one agency, InTACT.Project unITy was headed by InTACT’s Service Delivery Director and comprised a team ofapproximately 15-20 staff who worked with each customer agency to:• identify and agree all ICT staff in agencies and arrange their transfer to InTACT;• identify and agree on ICT expenditure for each agency; and• negotiate a Transition Agreement for the transfer of staff, resources and responsibilities toInTACT.At the conclusion of Project unITy, approximately 120 positions/staff had either transferred or were inthe process of transferring to InTACT. As at 30 June 2006, the transfer of staff and responsibilities fromthe Emergency Services Authority remained to be completed.With the completion of Project unITy in September 2005, a new InTACT structure was launched.The new structure emphasised InTACT’s new role, with embedded staff in customer agencies via thecreation of the Agency Operations Branch. For the first time, the structure also stressed the importanceof the difference between ongoing operations and future developments through the creation of aseparate Development and Planning Branch.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 2 5

Performance Against Accountability IndicatorsCosts within peer organisations’ costs, as benchmarked by an independent organisationGartner, a global organisation providing independent technology-related research and advice, conductsan annual benchmarking review of InTACT. The aims of the review are to:• establish a service specification and performance benchmarking model for the services providedby InTACT;• establish benchmark costs/prices for the services provided by InTACT;• examine the appropriateness of the current charges for services compared with the levels ofservices, in the context of the proposed benchmarking model; and• provide year to year analysis.The Gartner benchmarking report has shown that InTACT has consistently been within 10 per cent ofpeer organisations’ costs in previous reviews. Current indications suggest that this trend is likely tocontinue in the future.E-mail availability across Government during core business hoursInTACT strives to maintain 98 per cent availability of email across the ACT Government during corebusiness hours. This target has been met during 2005-2006.Service requests via the Service Desk responded to within Service Level Agreement timeframesInTACT continues to respond to service requests made through the Service Desk within agreed servicelevels. During 2005-2006 Marval, a new service desk management tool, was implemented and a newInternet Protocol (IP) telephony call centre was established. With the additional disruptions and trainingof staff in these new systems, InTACT has not met the 98 per cent target for responding to servicerequests for the year. However, Marval automatically logs requests sent via email to the service deskas cases in the system. Once fully implemented, this process will increase efficiency in responding toservice requests, and improve accuracy in reporting statistics in future years.Service requests made via the Service Desk resolved within Service Level Agreement timeframesInTACT seeks to resolve service requests made through the InTACT Service Desk within timeframesspecified in negotiated service levels. Again, with the introduction of Marval and IP telephony, and thedisruptions resulting from training staff in these new systems, InTACT has not met the 98 per cent targetfor resolving service requests.The implementation of Marval will increase efficiency in responding to service requests and improveaccuracy in reporting statistics. It will also enable greater reporting capabilities by providinginformation on the types of calls received through the service desk. It will also improve InTACT’sperformance in handling these requests. This increased efficiency and greater access to reportinginformation will facilitate InTACT meeting this performance measure in future years.Other IssuesCustomer projectsDuring 2005-06, Projects Group managed 58 customer projects and 18 internal projects. In addition,over 50 smaller less complex activities have been managed as Complex Service Requests. Notablecustomer projects include:• implementation of open source software-based Content Management System for many ACTGovernment web sites; and• implementation of web services architecture for the ACT Planning and Land Authority, whichreceived a grant from the Commonwealth Government’s Regulation Reduction Incentive Fund todevelop IT capabilities that will assist in reducing ‘red tape’ for small and home-based businesses.2 6 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Agencies will retain responsibility for making decisions and budget proposals on business applicationsand projects and will continue to exercise control over business specific strategic planning. The mergedICT services model will allow agencies to focus on core services delivered to clients, while all ICTsupport functions are undertaken by a centralised and skilled service provider.Software developments and upgradesInTACT continued to improve and enhance the ACT Government network during 2005-2006 throughsoftware development and upgrades. Significant undertakings included:• implementation of a patch to extend Daylight Saving, as a result of the Commonwealth Games inMelbourne;• review of the Active Directory structure, which records user information and enables access tothe ACT Government network and completed data matching between Active Directory and theACT Government directory, to ensure consistent information about ICT users in the ACTGovernment; and• development and population of a Configuration Management Database (CMDB) which tracksrelevant details of all items that make up the ACT Government ICT infrastructure.Implementation of ITILDuring 2005—2006, InTACT furthered its implementation of the information technology infrastructurelibrary (ITIL) service improvement program. ITIL provides a comprehensive and consistent set of bestpractices for IT service management, promoting a quality approach to achieving business effectivenessand efficiency in the use of information systems.Installation of uninterrupted power systemsThe new IP telephones are powered by the data network, rather than the telephone grid. With the rolloutof IP telephony across the ACT Government, InTACT has been working to install uninterruptedpower systems (UPS) to ensure that both telephone handsets and the ACT Government network havesufficient power protection to maintain communications in the event of an emergency or significantpower failure.This project is being undertaken by Central Server Facility staff. As at 30 June 2006, 185 UPS had beeninstalled in sites across the ACT Government, with an additional 80 UPS expected to be installed by theend of 2006. The project has come in under budget and with almost twice the number of UPS beinginstalled at less than half the anticipated expenditure.Storage Area Network upgradeA project was implemented in December 2005 to design and deliver to the ACT Government a newStorage Area Network (SAN), with back-up.The aims of the project are to increase the storage capacity in the ACT Government, as well as tointroduce a tiered storage model providing the ability to archive data and facilitate back-up to disk.The project is scheduled for completion in September 2006.SOE XP upgradeThe SOE XP Project upgrades the existing Windows 2000 based Standard Operating Environment(SOE) for desktops to a more contemporary, secure, reliable and stable Windows XP operatingenvironment. This environment will meet the immediate and medium-term business needs of ACTGovernment agencies. The SOE XP environment will provide superior performance, increased security,improved stability, better workflow, and enhanced functionality through the implementation of newtools and applications such as Office 2003.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 2 7

Staff developmentInTACT staff were provided with ITIL Essentials and Practitioner training to ensure consistentstandards for customer service delivery across the entire organisation. Two InTACT staff obtained ITILMasters qualifications in 2005-06.In order to provide ongoing support and development opportunities for InTACT managers, 18 seniorstaff attended the Centre for Public Sector Management’s “From Management to Leadership” seminar.This seminar seeks to provide an opportunity for managers to reflect on their leadership style andfurther develop management skills.InTACT has continued to use assessment centres to optimise recruitment and selection decisions, and toensure a best-fit solution for key vacancies. The cadetship and intern program has also continued, withtwo cadets accepting permanent positions within InTACT.InTACT has also selected an online induction tool to deliver a best practice induction process for newstaff to InTACT. The new induction program will be developed during 2006.ICT securityInTACT’s Security Unit acquired an encryption solution for mobile computing platforms and highlysensitive information on the ACT Government network. Further progress was made to redevelop theACT Government Internet gateway to make it eligible for accreditation at the ‘protected’ level under theAustralian Government’s Gateway Certification Guide. Work also progressed on the selection of baseliningand vulnerability assessment tools. These projects progressed more slowly than anticipated, butare scheduled for completion by June 2007.Business continuity and disaster recoveryInTACT has continued its focus on business continuity and disaster recovery (BCDR). Activitieshave been undertaken to ensure that ICT BCDR supports ACT government departments and agencies.BCDR improvement activities that are being evaluated include distributed computer centres, and geoclusteringto facilitate greater reliability in the case of system failures. InTACT is also developing anOperations Centre for out-of-hours support, and BCDR training and planning for ICT Managers.Future DirectionsIn 2005-06 InTACT will work towards:• providing greater recognition and support for ICT development activities;• transitioning ICT staff from the Department of Education and Training and the Canberra Instituteof Technology;• working to integrate InTACT into the wider Shared Services organisation;• implementing an online induction and learning program for new InTACT staff;• examining options for better integrating InTACT’s existing online performance managementsystem with Chris21 and the new online induction and learning system;• completing the SOE XP roll-out across the ACT Government;• implementing process improvements in the areas of incident, problem, change and configurationmanagement, to further align processes to provide an integrated ICT service to the ACTGovernment;• integrating program management capabilities across the ACT Government to improvemanagement and access to technical resources;• rationalising costing models and invoicing to reflect the new Shared Services concept;• implementing new applications support and project management frameworks;• establishing an ICT Policy Portal as a resource for ACT Government ICT policies and policydevelopment activities; and2 8 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

• further implementing proactive security tools to minimise the vulnerabilities inherent in large andcomplex ICT networks.Further information can be obtained from:Michael Chisnall A/g General Manager (02) 6207 6489 michael.chisnall@act.gov.auInTACTRon Shaw Manager (02) 6207 6198 ron.shaw@act.gov.auHR and Corporate SupportInTACTD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 2 9

Human Rights ActTreasury has taken the steps set out below to meet human rights requirements that have applied from1 July 2004 consequent on enactment of the Human Rights Act 2004 (HRA). The HRA imposes a dutyon all public officials to operate within a human rights framework and to interpret legislation consistentwith the HRA.• Treasury legislation pro-formas include advice on meeting the requirements of and forobtaining a HRA Compatibility Statement. The pro-formas note that bills must be compatiblewith the HRA and be cleared by the Bill of Rights Unit, Department of Justice and CommunitySafety (JACS).• Treasury also briefs staff on these requirements through Legislation Training Seminars. TheExecutive Unit provides specific assistance to departmental instructors in developing legislationto ensure timely liaison with the Bill of Rights Unit, JACS. The Executive Unit also ensures thatall proposed legislation has been assessed for compliance with the HRA.• Treasury has completed the audit flagged in last year’s report of its existing legislation to identifyHRA implications.There are several observations to be made about the possible effect of the HRA on Treasury. Forexample, one result of the Territory’s participation in the National Competition Code is the ceding tothe Commonwealth of the ACT’s legislative and administrative jurisdiction with respect to activitiescovered by the Code. The Code (comprising Part 4 and related provisions in the Trade Practices Act1974 (Cth)) is applied to the Territory by the ACT Competition Policy Reform Act 1996.The Competition Policy Reform Act excludes all Territory laws and courts in relation to the Code, andcedes enforcement of the Code to the Australian Competition and Consumer Commission.These arrangements may bear on the operation of the HRA, including whether Commonwealthofficers exercising investigative and coercive powers under the Code must comply with the HRA in theperformance of them.In addition, a number of the Territory’s tax laws and subsidiary instruments raise issues of compatibilitywith the HRA in providing for strict liability offences. These laws and instruments apply to taxationadministration, duties, rates, and the First Home Owner Grant Scheme. However, on balance they arenot directly in conflict with the HRA as they are considered to meet the requirements of proportionality,access to review, and equity in application.The JACS Bill of Rights Unit is separately examining the inspectorate powers provided by a numberof Treasury Acts insofar as they authorise entry, search and seizure powers, and power to require theproduction of documents.Similarly, offence provisions in the Government Procurement Act 2001 meet the HRA proportionalitytest insofar as they relate to members of the Board and other persons. This Act is currently understatutory review and will accordingly be subject to the HRA tests in the course of being reviewed.Staff members of Procurement Solutions attended an information session on the Human Rights Actduring the year.3 0 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Access to Government StrategyIn July 2003, the ACT Government launched its Access to ACT Government Strategy. The strategy aimsto ensure that services and facilities provided by the ACT Government are accessible to members of theACT community who have a disability. The key objectives of the strategy are to identify access issueswithin each ACT Government agency, and to address these issues through a detailed Action Plan thatspans a number of years.In 2004, external consultant West Wood Spice undertook Treasury’s audit and subsequent developmentof the Treasury Disability Access Action Plan. The audit was completed in June 2004, with the finalreport provided to Treasury in July 2004.During 2005-06, Treasury continued to implement and review the Plan as part of the Access toGovernment Strategy. The Plan is designed to be a living document, and identifies a series of risksassociated with the ongoing presence of disability access barriers, as well as control strategies for thetreatment of each risk and suggested implementation actions.A summary of Treasury’s progress in implementing objectives of the strategy as contained in the Accessto Government Access Action Plan is detailed below.Treasury has successfully achieved 15 of the 22 actions recommended by the 2004 audit. They include:• Revising the protocol and procedures facilitating access by people with a disability to tenderingor procurement information sessions.• Revising tender processes for contractors to identify and remove barriers to equality ofcompetition for tenderers who have a disability.• Developing a Publications Policy for documents that includes advice on alternative formatoptions.• Engaging in new policy development activities with specific impacts on people with disabilities.• Treasury Annual Reports comply with the Annual Report requirements as prescribed in theAnnual Reports (Government Agencies) Act 2004 and through Chief Minister’s Department(CMD) Annual Report guidelines promulgated on a whole-of-government basis.• Treasury is committed to facilitating the engagement of people with disabilities whereverpossible, consistent with the whole-of-government framework to enhance employmentopportunities for such people.• A “Disability Impact Statement” has been considered insofar as Treasury is engaged in newpolicy development activities with specific impacts on people with disabilities – for example,providing duty concessions for disabled ACT car owners, and owners of cars used to transport adisabled person.• People with disabilities are able to access concessions under the Duties Act 1999 on the dutypayable for the registration of a motor vehicle. Full duty exemptions are limited to persons whoeither have a TPI card, or who are unable to use public transport (because of the loss of, or lossof use of, a leg or both legs) and require a vehicle to travel to and from work. An extension to thisexemption commenced on 18 May 2006. The cost of modifications to motor vehicles toaccommodate the needs of people with a disability is now exempt from duty. The exemptionis intended to be broad and applies to a disabled owner, or a person who owns a specificallymodified vehicle used to transport a person with a disability.• Accordingly, the definition of ‘disabled person’ in the Duties Act has been broadened to giveeffect to this proposal and to make the definition consistent with the Commonwealth-State-Territory Disability Agreement. People with a disability, and people who transport a personwith a disability, will be eligible for this new exemption if they purchase a modified vehicle orhave modifications made as part of the vehicle purchase agreement. This exemption may beclaimed at the time duty is payable (on the application for, and transfer of, motor vehicleregistration) at the Dickson Motor Registry Office (Rego ACT) or at an ACT GovernmentShopfront.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 3 1

There are several barriers to further implementation of the Plan, including Physical and Sensory Accessactions that will not be completed due to physical building limitations or are not considered to be costeffective at this time.The following six physical access items are involved:• Improving external signage to indicate the direction to Nara Centre and Dame Pattie MenziesHouse entrances.• Upgrading the fire alarm system to include flashing lights in both Nara Centre and Dame PattieMenzies House.• Incorporating a desk-height customer service area in each service centre, including appropriatesecurity screening for Dame Pattie Menzies House.• Considering auditory lift signals in Nara Centre and Dame Pattie Menzies House.• Considering door widths that are < 850mm.• Considering converting general car parking spaces to disabled parking in the undercover area atNara Centre according to new standards yet to be promulgated (i.e. AS1428.1 and AS2890.6).As at 30 June 2006, Treasury has a fee-for-service arrangement with Chief Minister’s Department.Accordingly, these items are the responsibility of the Facilities Management area within CMD, and willbe continually monitored and treatments implemented to minimise risk exposure.Modification of the after hours switch at Nara Centre foyer for better access by people in wheelchairs(consistent with new standard AS1428 yet to be promulgated) has not been completed to date. FacilitiesManagement are currently assessing the overall lighting in the building and will consider modifying theafter hours switch as well.As at 30 June 2006, Treasury is conducting an analysis of its future accommodation options. Animportant priority is that any future office accommodation has regard to the draft Disability Accessto Premises (Buildings) Guidelines promulgated by the Australian Building Construction Board inFebruary 2004, and the draft Disability Standards for Access to Premises (Buildings) promulgated bythe Federal Attorney-General in January 2004.Treasury periodically reviews its Disability Access Action Plan to update access-related initiatives andto set priorities for future action. The Plan will continue to be implemented and disseminated to staffon a regular ongoing basis to heighten staff awareness of community access issues, as well as to providethe community with better services and understanding.Procurement Solutions publish information related to tender opportunities and contracts awarded by theTerritory, in addition to a range of other procurement related information, on the Buyers’ and SellersInformation Service (basis) website located at www.basis.act.gov.au. Documentation available fromthe basis website is formatted to allow access by persons who are sight impaired, and is available bothelectronically or, if requested, in hard copy format.A number of Procurement Solutions staff also attended information sessions, facilitated by DisabilityWorks Australia, to gain an understanding of how the ACT Government’s disability employmentstrategy impacts on the responsibilities of employees involved in recruitment processes.3 2 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Community EngagementTreasury’s primary areas of community engagement relate principally to its revenue management,community insurance support and procurement functions. In relation to policy issues more broadly,the Strategic and Functional Review sought public input through advertisements in local and suburbannewspapers. Written submissions were also invited. The Review received 25 Submissions.The Strategic and Functional Review also met with representatives from the community sector, industryand unions.The Legal and Insurance Policy Branch (L&IP) is responsible for the Treasury’s Risk Advisory website,http://www.insuranceriskadvice.act.gov.auThis website has now been visited more that 25,000 times. It continues to be a valuable source ofinsurance and risk management expertise for the Territory. There are in excess of 1,800 registeredusers. With the FMA Guidelines now in place, community groups and business can be assured thatthey can be accurately assessed for any required level of public liability insurance risk. The onlineassessment ratings are authorised by ACTIA. Approximately 700 risk profiles have been prepared. Thewebsite also has a telephone assistance hotline. Approximately 400 calls were fully resolved.Responsibility for the ACT Government’s policy concerning compulsory third party (CTP) insurancewas transferred to L&IP from the Road Transport Branch of the Department of Urban Services on21 April 2006. Information about the ACT CTP scheme can be found on the Road Transport website athttp://www.transport.act.gov.au/compulsorytpi.L&IP will soon be publishing a greatly enhanced website containing additional information about CTPat http://www.treasury.act.gov.au/compulsorytpi/index.shtml.Enhancements on this website will include a facility for consumer feedback about the scheme,frequently asked questions (FAQ’s) and responses, and additional material as Treasury’s administrationof CTP evolves.During 2005-06 L&IP ran two public and eleven invitation-only risk management courses, with a totalof 127 people attending. Branch personnel also undertook a number of public and private speakingengagements on risk management and cost effective insurance cover. There is still a strong emphasison engagement with multicultural, welfare and community organisations. However, the extensionof the Insurance Guidelines to all contractual relationships between the Territory and external parties(in relation to cases where public liability insurance is required) has met the business community’sexpectations. Support is ongoing to assist with an understanding of the issues, in a way similar to theprocess undertaken with respect to community organisations.The Risk Advisory Website’s critical risk management documentation is available in eight languages.There is also a Braille version of the generic risk management plan available on request.Procurement Solutions undertook a range of consultative mechanisms to engage with sectors of thecommunity during 2005-2006, including:• two procurement industry forums on changing and emerging procurement policy issues andmajor projects that are being undertaken. The forums provided an opportunity to industry, unionrepresentatives and other interested parties to raise issues and provide feedback to Treasury aboutgovernment procurement activity;• five meetings of the Procurement Consultative Committee. This Committee was established in2005-06 as a mechanism for consultation between representatives of ACT Government,UnionsACT, and business and industry associations with respect to procurement matters;• in excess of 20 ‘pre tender consultations’ relating to proposed major procurement activities wereconducted. These consultations related to activities of a value greater than $1 million for goodsand services type requirements, and greater than $5 million for works type requirements. Theyprovided an opportunity to industry and the community to contribute to the proposedprocurement processes prior to formal letting; andD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 3 3

• in excess of 700 tenders advertised on the basis website, with over 25,000 email or faxnotifications to interested parties.The Executive Director, Procurement Solutions, is the point of contact within Treasury for thecommunity on any issues related to procurement in the ACT. In addition, each public notification bynewspaper or website advertisement includes a nominated person for contact on the subject of thenotification.3 4 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Multicultural FrameworkThe Framework for a Multicultural ACT set goals for embracing cultural and linguistic diversity,valuing cultural and linguistic diversity, and utilising cultural and linguistic diversity. The table belowsummarises activities in Treasury relating to the Multicultural Action Plan 2004-2005.ActionMonitor the integration of the Multicultural ActionPlan 2004-2005 into strategic and operationalplanning processes.Facilitate staff participation in the MulticulturalStaff Network.Engage professional interpreters whereappropriate if clients have difficultiescommunicating in English, and ensure that staffare aware of the appropriate procedure for theuse of interpreters described in the bookletWorking with Interpreters available from theOffice of Multicultural Affairs. Bilingual staff area valuable resource in providing assistanceto clients, but should not be used in complexmedical or legal situations.Continue to ensure that all significant ACTGovernment publications and websitesincorporate information on how to accessinterpreting assistance.Adopt a planned approach to the production anddissemination of information regarding services,policies and activities in English and otherlanguages after consultation with client groups.This will include decisions on whether there is aneed to translate documents into languages otherthan English.Plan for language services by incorporatinginterpreting and multilingual information needsinto internal agency budgeting, human resourceand client service program management; andmake maximum use of the cultural and linguisticskills of employees in the development andimplementation of this planning.Ensure that cultural awareness training is acomponent of senior management performanceagreements.OutcomeRelevant aspects of the framework are includedas specific items linking individual performanceagreements and training activities.All relevant staff were encouraged to participatein this initiative through circulars and informationon the Business Portal.All Customer Service standards incorporateguidelines for the use of interpreters, particularlyRevenue Management Division.Many Treasury staff have bilingual skills andare available to assist clients in appropriatesituations.Interpreter contact information is provided atshopfronts, on the Office of Multicultural Affairswebsite and in relevant publications.Treasury’s risk awareness seminars placea strong emphasis on engagement withmulticultural, welfare and communityorganisations.The Revenue Management Division hasreviewed this requirement. However, at thepresent time, production of information in otherlanguages does not appear to be justified.The ACT Government Multicultural Staff Networkhas compiled a skills register which includeslanguage skills of members.Treasury Executives have participated in culturalawareness training.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 3 5

ActionEnsure that policy development and planningfor service provision are informed by data on thecommunity to which the policies apply and towhom services are provided, including:• country of birth;• main language other than English spoken athome;• proficiency in English;• gender; and• age group.Ensure that consultation strategies include allclients eligible to access services, includingthose from culturally and linguistically diversebackgrounds. Ensure that a variety ofconsultation methods are used appropriate tothe cultural background, age, gender and othercharacteristics of the community to be consulted.These methods include discussion papers, focusgroups, regular networking, community meetingsand joint planning processes.Continue to monitor the membership ofgovernment boards and committees so that theyreflect the make-up of the community as far aspossible in terms of gender, age and culturalbackground. (Office of Multicultural Affairs(OMA) has developed a Register of MulticulturalAdvisers that lists details of Canberrans fromculturally and linguistically diverse backgroundswho are interested in appointment to boards andcommittees.)OutcomeAll areas of Treasury providing direct service tothe public consider these issues.All areas of Treasury providing direct serviceto the public consider these issues and takeappropriate steps to ensure these requirementsare met.In recommending membership of governmentboards and committees, Treasury consults withOMA to ensure members may be selected fromculturally and linguistically diverse backgroundswhere appropriate.3 6 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

ActionPromote diversity in the workplace throughmeasures including:• Using multicultural community radio andcommunity groups to disseminateinformation and to promote employmentopportunities;• Recognising and utilising the skills ofmultilingual staff members, and encouragingstaff to develop these skills;• Having staff who speak languages otherthan English accredited with the NationalAccreditation Authority for Translators andInterpreters (NAAATI);• Providing information for staff on theprocedure for obtaining recognition ofoverseas qualifications and aboutopportunities to participate in workplaceEnglish language learning programs;• Addressing requirements for specificworkplace provisions as appropriate (eg,prayer rooms, cultural leave) and• Integrating cross-cultural issues intoorientation, team training and professionaldevelopment programs.OutcomeTreasury actively encourages initiatives whichrecognise and utilise the skills of multilingualstaff members through the ACT GovernmentMulticultural Staff Network.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 3 7

Aboriginal and Torres Strait Islander ReportingCommencing in 2004-05, relevant ACT Government agencies, through their annual reports, are requiredto provide information in terms of achievements during the reporting year against the indicators listed inCOAG’s Overcoming Indigenous Disadvantage, Key Indicators 2003 Report.The report documented outcomes for Aboriginal and Torres Strait Islander people within a frameworkand identified strategic areas for action and strategic change indicators. These included:• early childhood development and growth (prenatal to age 3);• early school engagement and performance (preschool to year 3);• positive childhood and transition to adulthood;• substance use and misuse;• functional and resilient families and communities;• effective environmental health systems; and• economic participation and development.During 2005-06, Treasury was not directly involved in activities specifically related to these strategicareas or indicators.Treasury will continue to monitor the framework from the COAG report to ensure that any issues orstrategies that impact on it are addressed.3 8 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

ACT Women’s PlanThe ACT Women’s Plan established the Government’s vision for working with the community toimprove the status of all women and girls, and provided a shared approach for working towards thisvision across ACT Government agencies.The Plan identifies six key objectives for agencies to work towards, together with an annual Action Planoutlining specific actions for agencies to progress the Plan’s objectives.One of the identified key objectives in the Plan is Representation and Recognition. During 2005-06,Treasury implemented the ACT Government’s Work and Life Balance Policy by recognising andsupporting family friendly initiatives for female employees, including by positively managingmaternity/parental leave, and by providing space and accommodation for nursing mothers through aCarer’s and Nursing Mother’s room.Provision of accessible services and supporting healthy lifestyles for ACT women are high priorities forthe Government. Treasury offers a number of affordable, accessible and appropriate programs on-site tomeet the health and wellbeing needs of female staff, including weekly Yoga and Pilates classes, seatedmassages, walking groups, and health sessions on breast cancer, heart health and diabetes.Treasury is strongly committed to increasing the level of participation of women on government boards.The ACT Office of Women is consulted each time a Board vacancy arises under Cabinet HandbookGuidelines.There are fifteen women on Boards within the Treasury portfolio, with five serving as Chair/DeputyChair.Treasury has also sponsored five women on the Take the Lead Program for public sector employees.During 2005-06, InTACT has undertaken a number of initiatives to encourage the representation andrecognition of women across the organisation. InTACT conducted Speak Out, Step Up workshops forfemale employees. These workshops focussed on leadership, assertiveness, gender communication, andleading change. As a result of these workshops, a number of employees have also been additionallysupported through mentoring opportunities. A number of female employees were also sponsored in theSpringboard for Women Program.InTACT is represented on the Board of Women in Information and Communication (WIC). WIC isan association that encourages women to enter the technology and communications industries, andprovides peer support for them. A number of employees have participated in WIC functions throughoutthe year.Further information can be obtained from:Merrilyn Sernack Manager (02) 6207 0280 merrilyn.sernack@act.gov.auExecutive UnitD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 3 9

Management of theOrganisationManaging Our PeopleHuman Resource Performance and AnalysisHuman resource transactional services are provided to Treasury by Corporate Management in CMD.During 2005-06, following implementation of Chris21, payroll services were transferred to theDepartment of Urban Services pay centre, together with ten pay services staff.Corporate Management managed Treasury’s recruitment function in 2005-06.Treasury employs a number of people with a disability, and participates in other whole-of-governmentstrategies aimed at increasing employment opportunities for people with a disability. These includeparticipation in partnering arrangements, where temporary vacancies are notified to Disability WorksAustralia concurrently with service-wide advertising.During 2005-06, Treasury initiated the ACT Government Economics and Finance Graduate Program.Treasury produced promotions material, including the development of a website, and attended anumber of graduate fairs to generate interest in the program. The program is intended to recruit 10 to 15graduates in economics, finance, accounting and related streams from all around Australia. Graduatesare expected to join the Treasury from early in 2007. In the context of skills shortages, and a tightlabour market, Treasury has sought to differentiate the program from similar programs available inCommonwealth agencies. This has involved emphasising that the relatively smaller scale of the ACTTreasury can lead to a greater range of experiences and more access to senior management to assistdevelopment and involvement in locally based politics.During 2005-06, InTACT’s organisational structure and staffing profile changed significantly as adirect result of amalgamating agency ICT staff within the InTACT organisation. As at 30 June 2006,a majority of ICT staff from across the ACT public service (excluding CIT and Education) havetransferred to InTACT to provide agency-specific ICT support.Under InTACT’s June 2005 Ownership Agreement, staff numbers were projected to increase to 260(allowing for the transfer of the payroll function to InTACT) by 30 June 2006. The actual staff numberat this date was 330, of whom approximately 75 per cent were permanent. The higher staff complementis attributable to amalgamating ICT staff through Project unITy.InTACT attempts to fill all vacancies on a permanent basis; however, some positions require highlyspecialised skills with commensurately higher remuneration levels. InTACT cannot attract andretain suitably skilled staff to fill these roles by offering the rates of pay provided in Treasury’sCertified Agreement. Accordingly, in some instances InTACT has negotiated a Special EmploymentArrangement (SEA) to attract and retain permanent staff in specialised roles. In other circumstances,the use of SEAs has not provided sufficient remuneration to attract permanent staff. Consequently,InTACT is obliged to employ contract staff on an ongoing basis to fill up to approximately 25 per centof its vacant permanent positions.InTACT uses assessment centres to optimise recruitment and selection decisions, and to ensure a best-fitsolution for key vacancies. In addition, work has commenced on completing competency profiles forpositions and validating position documentation to align with the national competency framework.4 0 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

In 2005, InTACT conducted a cadetship program for ITO Trainees. Three cadets from the Universityof Canberra participated in the cadet program and were provided with an opportunity to combine theirfinal year of study with part-time employment. The cadets were engaged in a variety of roles acrossInTACT over a 12 month period.InTACT has recently completed a tender for the development and implementation of an online inductionprogram. The online induction program will benefit InTACT by providing a system that enables theorganisation to develop, monitor and report on staff induction to the ACT Government and InTACT.It will also provide staff with timely and relevant information in performing their duties. In addition,InTACT reviewed and tailored existing induction information for staff transitioning to the organisationunder Project unITy.Staffing ProfileStaff employed under the Public Sector Management Act 1994 or other legislationClassification Male Female TotalExecutive 14 4 18SOG A 27 7 34SOG B 33 20 53SOG C 48 31 79SITO B 11 1 12SITO C 22 5 27SPOA 4 0 4SPOB 7 1 8SPOC 7 3 10ITO2 38 9 47ITO1 19 2 21ITOT 1 0 1ASO6 20 34 54ASO5 19 38 57ASO4 11 22 33ASO3 8 7 15ASO2 0 2 2ASO1 0 2 2GAA 1 0 1Trainee/Apprentice/Cadet 1 0 1PSMA Total 290 188 478Verossity Contractors 1 66 15 81Other Contractors 7 0 7Total 363 203 5661Contractors are generally engaged through Verossity, in accordance with a master vendor agreement. This agreement was due to expirein July 2006 but a 12 month extension has applied because of ongoing difficulties in accurately predicting InTACT’s contractor needs.A small number of contractors remain outside the Verossity agreement. These contractors were initially engaged by other agencies andtheir contractual arrangements continued with InTACT post Project unITy.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 4 1

Employment Category by Gender (Full-time/Part-time)Employment Status Full-time TotalMaleFemaleCasual 2 2Permanent Full-time 265 159 424Permanent Part-time 4 16 20Temporary Full-time 19 11 30Temporary Part-time 0 2 2PSMA Total 290 188 478Verossity Contractors Full-time 64 15 79Verossity Contractors Part-time 2 0 2Other Contractors Full-time 7 0 7Other Contractors Part-time 0 0 0Total 363 203 566Age ProfileAge Male Female Total15-19 1 0 120-24 19 19 3825-29 30 31 6130-34 36 29 6535-39 45 33 7840-44 33 25 5845-49 37 21 5850-54 54 14 6855-59 19 11 6860-64 14 5 1965+ 2 0 2478Note: These statistics relate to Treasury staff employed under the PSMA only (i.e. excludes contractors).Average Length of ServiceLength of Service (in years) Male Female Total

Culture and ValuesThe Statement of Values and Principles in Section 6 and 7 of the Public Sector Management Act 1994,together with Section 9, the Code of Ethics, provide the framework for standards of conduct in Treasury.All employees are required to sign a copy of the Code of Ethics on commencement of employment, as arecord of acknowledgment and understanding of the expected standards of behaviour. Treasury’s StaffInformation Toolkit, provided to all new starters, also provides an explanation of the Code of Ethics andits importance in the ACT Public Service. The booklet is promoted through Treasury’s Joint Union andManagement Consultative Committee. In addition, InTACT staff are required to complete an onlineCode of Conduct training program.New employees and contractors are also required to read the ‘Acceptable Use of IT Resources Policy’and sign a declaration that they have read the policy. Copies of the declarations are held on file.Treasury’s Certified Agreement 2004-2007 (Certified Agreement) provides the framework for thereporting of alleged breaches of the Code of Conduct. In particular, the internal review provisions,the appeal provisions, and the discipline procedures in the Agreement provide the mechanisms forTreasury to manage potential breaches of the Code of Conduct. These processes are underpinned by theprinciples of natural justice and procedural fairness.In addition, Treasury continues to provide employees with external avenues of redress, including accessto the ACT Human Rights Office, in relation to matters concerning allegations of discrimination orharassment.As members of the ACT Public Service, Treasury employees are encouraged to report instances ofcorrupt or fraudulent behaviour or any possible maladministration in the service. Complaint-handlingprocedures are also available to members of the public who wish to raise concerns or lodge a complaintwith Treasury.In InTACT, personnel security (including the security clearance process) is a valuable and essentialelement of risk management in enabling staff access to classified information. InTACT managesand administers security clearances for all personnel holding positions that have access to sensitiveinformation. The level of security is determined by the nature of the position on either a ‘highlyprotected’ or ‘protected’ basis. Approximately 54 per cent of InTACT staff have current or pendingsecurity clearances.Workplace DiversityThe Certified Agreement provides terms and conditions of employment that recognise the diversenature of the department’s workforce. In particular, the Certified Agreement provides for 14 weekspaid primary care givers’ leave, 14 weeks paid maternity leave, the commitment to the management ofexcessive working hours, recognition of employees with carers’ responsibilities, the vacation childcareprogram, and access to part-time work.The Certified Agreement also continues to provide leave provisions that recognise diversity, includingceremonial leave, religious leave and sporting leave.As noted, Treasury provides accommodation for carers and nursing mothers.Treasury also provides staff with access to designated equity and diversity officers for advice or thelodgment of a complaint alleging discrimination, harassment or bullying.Treasury’s recruitment processes require selection panels to apply comprehensive equity and diversityguidelines in any interview process. In addition, Treasury’s application kit for potential employeesincludes information about the merit selection process, together with information relating to applicantswith a disability or from diverse cultural backgrounds.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 4 3

InTACT has taken a number of initiatives to implement the ACT Equity and Diversity Framework.During 2005-06, InTACT:• continued to implement and support relevant flexible work practice policies, including part-timeemployment and access to a private room for mothers to breast feed;• provided opportunities for staff to comment on equity and diversity policies, processes andpractices;• conducted Speak Out, Step Up workshops for female employees. The workshops focussed onleadership, assertiveness, gender communication and leading change;• sponsored female employees in the Springboard for Women Program;• provided facilities to enable applicants with disabilities to adjust to InTACT’s selection processes;and• developed a Leadership Forum for middle and senior managers to consider a broad range ofissues confronting InTACT and the ACT public sector.InTACT is committed to workplace diversity and continues to review policies and procedures toensure equity and diversity principles are incorporated. All policies and procedures are published andaccessible on the InTACT Knowledge Portal.Staff by Equal Employment Opportunity GroupAboriginal and People from Persons with a Staff first spoke Total NESBTorres Strait Culturally and Disability* English andIslander Persons* Linguistically anotherDiverselanguageBackgrounds*1 7 61 12 73Employment Women Aboriginal and Persons with NESB* All StaffCategory Torres Strait a Disability*Islander Persons*Casual 0 0 0 0 2Permanent Full-time 159 1 7 67 424Permanent Part-time 16 0 0 3 20Temporary Full-time 11 0 0 3 30Temporary Part-time 2 0 0 0 2Total 188 1 7 73 478Percentage of all staff 39.3% 0.2% 1.5% 15.3% 100%Note: Submission of EEO data by staff members is voluntary. The number of staff participating in this data set was 329 (68.8 percent of Treasury staff). The data relates only to Treasury staff employed under the Public Sector Management Act (i.e. excludingcontractors).4 4 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Workplace Health and SafetyTreasury remains committed to maintaining the health, safety and welfare of its employees. WithinTreasury, occupational health and safety is managed in accordance with the provisions of theOccupational Health and Safety Act 1989 (as modified by the Public Sector Management Act 1994)under an Injury Prevention and Management Agreement.During 2005-06, Treasury did not contravene any provisions of the Occupational Health and SafetyAct 1989 as would have involved the issue of a notice under sections 146, 155 or 212. Treasury did notnotify any incidents under section 204 of the Act.A Rehabilitation Case Manager monitors all reported injuries and long-term absences to ensure that illor injured staff return to work at the earliest practicable date, whether the work-related illness or injuryis compensable or non-compensable.The Rehabilitation case manager liaises with the relevant manager on any rehabilitation and returnto work programs to ensure a high level of communication, awareness, and commitment to therehabilitation process. In this regard, Treasury may apply an early intervention protocol involving theengagement of professional rehabilitation providers as soon as possible after notification of the illnessor injury.Treasury is represented on an OH&S Committee, which includes other co-tenants of the CanberraNara Centre. The Committee meets regularly so work-based Health and Safety Representatives candiscuss current health and safety issues. The Health and Safety Representatives are chosen to representdesignated workgroups. During 2005-06, the Committee developed an after hours personal securitypolicy.In 2006, an assessment of Treasury’s Occupational Health and Safety Management Systems wascommissioned, and an action plan based on the assessment is in train.Programs implemented to maintain health, safety and well-being of staffDuring 2005-06, Corporate Management coordinated the delivery of the following activities toTreasury:• Employee Assistance Program (EAP): Treasury’s EAP program provided services to staff andtheir families through Davidson Trehaire, a professional and confidential counselling service. TheEAP assists staff to work through difficult circumstances and issues. The EAP is also utilisedin response to any critical workplace incidents impacting on the working environment. No suchincidents occurred during 2005-06.• Work Station Assessments: A number of workstation assessments were arranged for Treasurystaff to minimise potential repetitive strain injuries, poor posture, and muscular or skeletal injury.Information was also provided to staff on simple exercises to reduce eye and postural strainthrough poor keyboard and screen practices.• Fire Warden training: Fire warden training was provided during 2005-06.• Health and Safety Representative training: Health and Safety Representative training wasprovided throughout 2005-06.Health & Well-being initiativesTreasury met its commitment to the health and well-being of staff through the following initiativesduring 2005-06:• Yoga and Pilates: staff can participate in one hour Yoga or Pilates sessions throughout theweek. Staff are responsible for payment for the session. These sessions continue to enjoy highparticipation rates;• Seated Massage: in-house in fifteen-minute seated massage sessions are offered once a week.Staff are responsible for payment for the session. These sessions are well patronised.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 4 5

• Walking Groups: lunch-time walking groups have been formed, with numerous staffparticipating on a regular basis under staff volunteers, who lead and motivate the group;• Flu Vaccinations: Treasury offered flu vaccinations at no cost to staff. The vaccinations wereadministered by Health Services Australia, with 68 people receiving vaccinations;• Health Seminars: several health seminars were presented inhouse. Topics included Heart Health,Breast Cancer and Diabetes. All seminars were well attended by staff; and• Social Activities: a Social Committee was formed and it conducted a range of social activitiesthroughout the year. These activities were well-received by staff. An amenities room in theCanberra Nara Centre was also established. Fortnightly social activities are held in the amenitiesroom and weekly table tennis facilities are also available. The Social Committee coordinatesfund-raising for various charities on behalf of Treasury and CMD.InTACTNo agreements were made with InTACT employees about occupational health and safety (OH&S)during 2005-06. InTACT does not have an OH&S Committee but it participates in the workplaceconsultative committee identified above. No new OH&S representatives were sought during 2005-06.During 2005-06, asbestos was removed from Callam Offices and the fire systems upgraded, includingsigns, sprinklers and lighting. Two Bomb/Fire Evacuation drills were conducted at Callam Offices.InTACT continues to ensure Fire Wardens and First Aid Officers receive training. In addition, a fluinjection program was provided for staff.InTACT endeavours to support workplace health and safety issues and uses rehabilitation providers toassist in the effective return to work of both work and non-work related illnesses and injuries. InTACTcontinues to engage external case managers to support staff in the management of particular healthissues where agreed and appropriate.In 2005, InTACT reviewed existing employee assistance arrangements and engaged IPS Worldwide toprovide counselling services to staff as required.Learning and DevelopmentParticipation in whole of Government learning and development activitiesDuring 2005-06, Treasury remained committed to providing all staff with professional developmentopportunities. This included participating in the Take the Lead Program.This program commenced in 2003-04, and is designed to develop the leadership skills of middle-levelmanagers by identifying individual leadership challenges. It also enhances leadership skills to prepareparticipants for more senior management and executive roles.Eight managers participated in this program during 2005-06.Agency learning and development activities and participation ratesTreasury established a graduate training and development program to address the learning anddevelopment needs of graduates who commenced employment at the start of 2006. This training, whichis part of a full year program, is provided to enable graduates to develop a range of technical skills thatare relevant to a public policy environment. As part of the program, Treasury offered components offormal training and professional development, together with informal training and activities.4 6 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

In addition, Treasury offered the following technical skills training courses:CourseGraduate attendeesIntroductory Microsoft Excel 4Intermediate Microsoft Excel 6Accounting for Non-Accountants (Public Sector) 5Record Keeping – Thesaurus 5Introductory Microsoft Word 4Introduction to Record Keeping 8Treasury’s graduate program is aimed at enabling graduates to integrate effectively, efficiently, andcomfortably into the department. It provides opportunities for graduates to establish useful personaland professional networks, both inside and outside the department. Stimulating training opportunitiesare also provided to assist graduates to understand government functions and processes, and allow themto improve and develop their professional, interpersonal, managerial and technical skills.During 2005-06, the Executive Unit presented training on Cabinet and Assembly processes to allTreasury staff. The training included an overview of government and Assembly procedures, adviceon developing legislation, and how to develop Executive documents. The presentation also addresseda range of Cabinet issues. A total of 11 staff attended this session. The presentations will continuethroughout 2006.Treasury also hosted an all staff training session presented by the Cabinet Office. This training providedan overview of the Cabinet Handbook. A total of 14 staff attended.During 2005-06, the Finance and Budget Division provided training for staff and agency finance staffon the following:• budget systems;• budget process;• Performance Management Framework; and• annual financial statement and audit process.The Economics Branch organised five presentations during 2005-06 as part of the Branch’s seminarseries, which is open to all Treasury staff. The aim of the seminar series is to further the professionaldevelopment of Treasury staff through exposure to a variety of frameworks and the latest thinking onpolicy issues in areas that staff may not be involved in directly.Specifically, the five presentations organised by the Branch during 2005-06 as part of the seminar serieswere:• The Budget Outlook — by Paul Grimes (Chief Executive);• The Role of Narrative in Promoting Public Policy Reform — by Greg Smith (Australian CatholicUniversity academic, and former Australian Treasury Executive);• Australia’s Economic Performance and Prospects — by Dr Ken Henry (Secretary of theAustralian Treasury);• Optimal Regulation — by Jason McNamara (Director, Economics Branch); and• The National and ACT Economic Outlook — by Jason Allford (Principal Adviser of Forecastingin Domestic Economy Division, Australian Treasury) and Danny O’Dea (Manager ofMacroeconomics and Budget Forecasting, Economics Branch).D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 4 7

Revenue Management Division has undertaken the following series of training for tax officers in2005-06:• emotions at work;• challenging difficult behaviour; and• conflict management.The training was designed to provide employees with the support needed to contribute to a respectfuland fully engaged workplace. Apart from services provided by external training providers, RevenueManagement has also implemented a program of specialist training by senior officers on variousinternal, technical issues such as land-rich provisions, understanding of trusts, investigation strategies,and accounting transactions in IT systems.Study bankTreasury continued to support staff in obtaining academic qualifications through the Studybank scheme.This scheme provides for paid leave and full/partial reimbursement of expenses associated withstudy. The following tables present details of staff who received study assistance during 2005-06 byclassification and area of study:Classification Male Female TotalExecutive 0 1 1SOG A 1 0 1SOG B 0 1 1SOG C 4 3 7ASO 5-6 5 10 15ASO 1-4 2 3 5ITO 5 1 6Total 36Area of StudyTotalLaw/Legal Practice 3Applied Science 1CPA Program 1Accounting/Commerce 7Finance 5Economics 1Information Technology 4Public Administration 4Business Administration 9Govt. Contract Management 1Total 36InTACTLearning and development of staff continues to be a high priority for InTACT management. AllInTACT staff employed under the PSMA are provided with a notional $2,000 expenditure allocation.One hundred permanent staff accessed the allocation, with 48 permanent staff fully expending thisnotional allocation.All InTACT staff are required to document future learning and development needs during performanceassessments. Documentation of learning and development needs is a mandatory field on the onlineperformance management system.Each staff member, in consultation with their manager, is responsible for ensuring they receive accessto their training funding for the year. While a notional amount of $2,000 per permanent staff memberis allocated to staff training and development, there is no specific cap. Where appropriate, staff withparticular needs may access additional or more expensive training.InTACT had a number of key learning and development priorities for 2005-06. Continued emphasis hasbeen placed on ITIL training and the Marval case management system. In addition, senior managershave been encouraged to attend a Management to Leadership residential program. Technical skillscontinue to be upgraded and supported through learning and development activities and courses.4 8 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

An online induction and learning management system will be implemented within InTACT during2006-07. The focus of the system will be to improve the cost efficiency, effectiveness and timeliness ofinduction processes, and provide staff with access to pertinent job and organisational information.Two InTACT staff members participated in the Take the Lead program in 2005-06.InTACT continues to support Studybank applications for staff undertaking ongoing tertiary studies.Approximately six staff received Studybank Assistance during the 2005-06 financial year.Workplace RelationsAustralian Workplace AgreementsAustralian Workplace Agreements (AWAs). negotiated under the terms of the former government havecontinued to operate during 2005-06. Consistent with government policy, no new AWAs have beenoffered or approved during this period.Collective Managers’ AWA 2001–2003Treasury (excluding InTACT)Total number of staff covered by Australian WorkplaceAgreements (AWAs) 23 1Number of AWAs terminated/lapsed (including formalterminations and those that have lapsed due to staffdepartures) 5 1Duration of the AWA6 – 12 monthsThe range of remuneration payable in the classifications DT Manager 1-4 $82,811-$137,287for collective and individual AWAs SOGC $69,544-$95,15631As at 30 June 2006, 18 staff were covered by AWAs. The reduction in the number of AWAs is a result of transfer of staffInTACTto other ACTPS departments, promotions and resignations.Total number of staff covered by Australian WorkplaceAgreements (AWAs) 12Number of AWAs terminated/lapsed (including formalterminations and those that have lapsed due to staffdepartures) 1Duration of the AWA 26 or 12 monthsThe range of remuneration payable in the SOGA/SITOA $112,886 - $132,007classifications for collective and individual AWAs SOGB/SITOB $102,225 - $119,761SOGC/SITOC $88,832 - $130,686D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 4 9

Special Employment ArrangementsTreasury (excluding InTACT)Total number of staff covered by Special EmploymentArrangements (SEAs) 14Total number of SEAs entered into during thefinancial year 14Number of SEAs currently being negotiated 0The remuneration payable in the classifications for SOGC – SOGA $82,111 - $133,837collective and individual SEAsThe number of SEAs providing for privately platedvehicles 0Number of SEAs for employees who have transferredfrom Australian Workplace Agreements (AWAs) 0InTACTTotal number of staff covered by Special EmploymentArrangements (SEAs) 7Total number of SEAs entered into during thefinancial year 7Number of SEAs currently being negotiated 1The remuneration payable in the classifications for SOGA $122,000 - $130,000collective and individual SEAs SOGC $92,000 - $105,000The number of SEAs providing for privately platedvehicles 0Number of SEAs for employees who have transferredfrom Australian Workplace Agreements (AWAs) 12AWAs continue to operate past the nominal expiry date until such time as the AWA is terminated or superseded byanother AgreementFurther information can be obtained from:Ron Shaw Manager (02) 6207 6198 ron.shaw@act.gov.auHR & Corporate SupportInTACT5 0 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

GovernanceInternal AccountabilityExecutive Management Group, comprising each divisional executive director and the Chief Executiveas Chair, met on a weekly basis to address current and emerging issues at government and agency level.Executive Management Group also provides ongoing direction and guidance to ensure that Treasury’sbusiness operations and strategies are consistent with Government policy and objectives.As at 30 June 2006, the Executive Management Group comprised:• Dr Paul Grimes, Chief Executive and Under Treasurer;• Ms Megan Smithies, Executive Director, Finance and Budget Division;• Mr Roger Broughton, Executive Director, Investment and Economics Division;• Mr Khalid Ahmed, Executive Director, Policy and Coordination Development Division;• Mr Graeme Dowell, Commissioner for ACT Revenue, Revenue Management Division;• Mr Michael Chisnall, Acting General Manager, InTACT;• Mr John Robertson, Executive Director, ACT Procurement Solutions; and• Mr Michael Vanderheide, Head, Shared Services Transition Team.The Treasury Corporate Plan 2006 sets out Treasury’s strategic directions, values and guidingprinciples.The InTACT Strategic Plan 2004-07 was under review as at 30 June 2006 to incorporate changedresponsibilities as a result of Project unITy and the 2006-07 Budget. The review will also provide forInTACT’s operations. Detailed business planning will take place in the second half of 2006.Treasury reports biannually on its performance through the Budget Outputs Performance Report tabledin the Legislative Assembly.Treasury induction processes promulgate the ACT Public Service Code of Ethics, with all new staffsigning an acknowledgement that they understand its purpose. The Code is also referenced in the StaffInformation Toolkit and on the Treasury portal online.The ACT Remuneration Tribunal determines remuneration and allowances for Treasury seniorexecutives.Procurement Solutions, Management Review CommitteeAs at 30 June 2006, Procurement Solutions, Management Review Committee included:• Mr John Robertson, Executive Director;• Ms Robyn Hardy, Director, Procurement Services;• Mr Mike Berry, Manager, Infrastructure Procurement;• Mr Fred Watman, Manager, Infrastructure Procurement;• Mr Owen Brown, Manager, Infrastructure Procurement;• Mr Steve Greenhalgh, Infrastructure Procurement;• Mr David Evans, Manager, Manager, Infrastructure Procurement;• Mr Ted Parker, Manager, Quality Systems;• Mr John Coghlan, Manager, Contracts and Tendering;• Mr Alf Moscaritolo, Manager, Contracts and Tendering;• Ms Caroline Hall, Manager, Contracts and Tendering;• Ms Lee-Anne Aldwell, Manager, Contracts and Prequalification;• Mr Alex Fox, Manager, Contracts and Tendering;D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 5 1

• Ms Margaret O’Connor, Manager, Business Systems Support;• Mr John Maher, Manager, Business Support; and• Mr Bob Venables, Manager, Procurement Policy and Government Procurement Board Secretariat.InTACT Senior Executive TeamAs at 30 June 2006, the InTACT Senior Executive Group included:• Mr Michael Chisnall, Acting General Manager;• Mr Ian Waters, Acting Director Technical Solutions;• Mr Chris Tully, Acting Director Service Support;• Mr Ed Pellegrino, Acting Director ICT Development and Planning;• Mr David Turner, Acting Director ICT Health;• Ms Lisa Jackson, Acting Director ICT Government Services;• Mr Bob Davies, Acting Director ICT Community Services;• Mr Richard Hart, Director, Converged Networks Program;• Mr Ross Burton, Chief Financial Officer; and• Mr Ron Shaw, Manager HR and Corporate Support.InTACT’s Senior Executive structure and responsibilities have undergone substantial restructuring in2005-06 as a result of the merging of ICT functions across government.Fraud PreventionThe ACT Integrity Policy addresses fraud and corruption prevention at a whole-of-government level.The Policy requires the development of a departmental risk assessment, followed by a fraud andcorruption prevention plan.Treasury has completed a risk assessment process, including consideration of fraud risks, existingcontrols and risk treatments (see following section).All staff have access to information concerning fraud awareness and prevention, together withappropriate contact officers, through Treasury’s intranet site. This includes the guideline IdentifyingFraud and Corruption in the ACT Public Service, information on the Public Interest DisclosureAct 1994 and procedures, and the ACT Public Service Code of Ethics included in the New StartersInformation Toolkit.Incidents of Fraud reported during 2005-06There were no incidents of fraud reported in Treasury during the reporting period.Business Integrity Risk (SERBIR) is the responsibility of HR and Corporate Support.Further information can be obtained from:Ron Shaw HR and Corporate Support (02) 6207 6198 ron.shaw@act.gov.auInTACT5 2 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Risk Management and Internal Audit ArrangementsInternal Audit is an independent assurance and consulting activity that reviews and evaluates theeffectiveness of departmental risk management, internal control, and governance practices. It reportsthe outcomes of its investigations to the Audit Committee and Chief Executives. It also monitors actiontaken by relevant managers to remedy deficiencies identified in the audit reviews.Internal Audit is managed by a joint Audit Committee, which provides services to Treasury, the ChiefMinister’s Department, the Department of Economic Development, ACT WorkCover, and an additionalfour statutory authorities. The Committee’s functions are governed by the Audit Committee Charter.The objectives of the Committee are to assist the Chief Executives to discharge their responsibilitiesfor exercising due care and diligence in relation to the reporting of financial information, application ofaccounting policies, adequacy of internal controls, financial and risk management, and compliance withapplicable laws.The membership includes appointees from the three above departments and ACT WorkCover, and anindependent Chair. Observers also regularly attend meetings including a representative from the ACTAuditor-General’s Office. Eight meetings were held during the year.Member Title Meetings attendedMr. Will Laurie Independent Chair 8Ms. Megan SmithiesExecutive Director, Finance and BudgetDepartment of Treasury 7Mr. Michael VanderheideGeneral Manager, InTACTDepartment of Treasury 6Ms. Pam DavorenDeputy Chief Executive, PolicyChief Minister’s Department 6Mr. Ian YorkManager, Corporate ServicesACTWorkcover 7Ms. Mandy HillsonDirector, artsACTChief Minister’s Department 7Ms. Sue MarriageDirector, Sport and RecreationDepartment of Economic Development 4Mr. Bernie Sheville (Observer) Director, Financial AuditsACT Auditor-General’s Office 8Mr. Phil HextellDirector, Accounting(Observer) Department of Treasury 8Roger BroughtonExecutive Director, Investment and(part-year appointment)EconomicsDepartment of Treasury 5Glen GaskillDirector, Corporate Management(part-year appointment) Chief Minister’s Department 3Mr. Bill FraserManager, Internal Audit(Secretary) Chief Minister’s Department 8Internal audit services are provided by “in-house” staff, supplemented by two private accountingfirms. Internal Audits are normally selected from a three-year internal audit program developed by theCommittee after identifying areas of operational and financial risk. Internal Audit also reviews new ITmanagement systems when requested, to provide an independent assessment prior to commissioning.Internal audit reviews completed during the year included:• Asset Management of Non-IT Assets;• Chris21;D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 5 3

• Home Buyer Concession Scheme;• Home Loan Portfolio;• Insurance Claims on the ACT Insurance Authority;• Mandatory Reporting; and• Office and IT Equipment Procurement.In accordance with the requirements of the ACT Government Enterprise-wide Risk ManagementFramework, and as part of its overall fraud and corruption prevention framework, Treasury has anoverarching Executive level risk management plan, and individual business unit risk management plans.The plans include risks identification and analysis, and the development of risk treatment schedules. Atthe organisational level, a risk management database has been developed to facilitate the managementand reporting of key risks to senior management.The Audit Committee monitors risk management. The Director, Corporate Management, is the SeniorExecutive responsible for reporting risk under Treasury’s risk management plan.Further information can be obtained from:Bill Fraser Manager (02) 6205 2771 bill.fraser@act.gov.auInternal AuditExternal ScrutinyJudicial and administrative tribunal decisionsDate of Decision Objection No. Appellant/Plaintiff09/06/2006 AT06/34 Ian Cowan18/11/2005 AT05/27 Chapman & Morgan01/05/2006 38882 Gavin and Louise Smith27/04/2006 AT0/113 Manuil Haque11/11/2005 AT0/376 Commonwealth Funds Management Ltd18/11/2005 AT05/26 Chapman and Morgan10/04/2006 AT06/06 McDonald Properties07/04/2006 AT05/120 Willemsen Investment Corporation07/04/2006 AT05/26 Chapman & Morgan13/03/2006 AT05/118 Trust Co of AustReports by the Auditor-GeneralTreasury provided responses to three performance audits by the ACT Auditor-General released duringthe reporting period:• Reporting on Ecologically Sustainable Development;• Report No.6 2005, Government Procurement; and• Management of Trust Moneys and Other Non-Public Moneys.Reporting on Ecologically Sustainable DevelopmentThe objective of the performance audit Reporting on Ecologically Sustainable Development, presentedon 1 July 2005, was to provide an independent opinion on whether selected ACT public sector agencieshad in place sound systems, guidelines and processes, to meet Ecologically Sustainable Development5 4 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

(ESD) reporting responsibilities under the Environmental Protection Act 1997 (EPA), the Annual ReportDirections, and other relevant departmental legislation and policies. It also considered the adequacy ofguidelines issued by the Chief Minister’s Department.The audit found that while in general agencies complied with the EPA reporting requirements, there wasscope for considerable improvement of ESD information contained in annual reports.Treasury agreed with the recommendations in the audit report. Treasury has maintained its commitmentto building on reporting practices currently in place to provide an integrated and comprehensiveframework for implementing ESD principles throughout the planning, decision-making, financialmanagement and reporting spectrum. A major whole-of-government initiative implemented byTreasury was the revised performance measurement framework in the 2005-06 Budget. The continuedrefinement of this framework, and development of more meaningful performance indicators, will informthe integration of ESD principles into the planning, decision-making and reporting framework.Report No.6 2005 Government ProcurementThe objective of the performance audit Report No.6 2005 Government Procurement, released on15 November 2005, was to provide an independent opinion on whether:• government agencies are complying with the Government Procurement Act 2001 and associatedpolicies and guidelines;• current procurement processes encourage efficient and effective procurement management, andachieve value for money for the Territory; and• transparency and accountability goals of the Government are being achieved.The audit noted that while there was a satisfactory level of compliance with the GovernmentProcurement Act 2001, principles and guidelines in respect of major procurement activities (over$50,000), there was a level of non-compliance with the procurement practices for small purchases(under ($50,000). It identified opportunities for improvement, including improved compliance withthe procurement principles and guidelines in areas such as risk management and documentation, andbetter co-ordination of procurement functions within agencies and across agencies leading to whole-ofgovernmentpurchasing decisions.Treasury agreed with the recommendations in the audit report and noted that the reforms to procurementarrangements being implemented across ACT Government agencies with the consolidation ofprocurement activities in Procurement Solutions would address a significant number of them.Treasury also ensures that officers responsible for procurement activity are aware of the legislativerequirements through the availability of procurement circulars, guidelines, process charts and delegationschedules on Treasury’s intranet site.Management of Trust Moneys and Other Non-Public MoneysThe objective of the performance audit Management of Trust Moneys and Other Non-Public Moneyswas to provide an independent opinion on whether the trust moneys and other non-public (third party)moneys held by agencies are:• managed in accordance with relevant legal requirements;• accounted for accurately and transparently an in accordance with better practices; and• managed to adequately protect the rights of beneficiaries.The audit found that, overall, trust moneys and third party moneys were managed in accordance withrelevant legal and administrative requirements, and that adequate controls and procedures were in placeto ensure trust accounting records are accurate and transparent.The audit noted that the provisions of the FMA in relation to the definition and management of Territorytrust moneys do not apply to Territory authorities, and that this may create some inconsistency in trustmanagement across the ACT public sector. It recommended that Treasury should consider amendmentsD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 5 5

to the FMA to extend the application of current legislative requirements for trust moneys to Territoryauthorities.Treasury did not agree with the recommendation, on the basis that inclusion of more general trustprovisions for Territory authorities in the FMA could result in conflict with the more specific provisionsincluded in the enabling legislation of the various authorities formulated to address their specificoperating needs, including, if necessary, any issues relating to the management of trust moneys.Reports by Legislative Assembly CommitteesACT Legislative Assembly Standing Committee Reports presented during the year in which Treasurywas involved in progressing recommendations are as follows:Standing Committee on Public Accounts:• Report on the 2003-04 Annual and Financial Reports; and• Review of Auditor-General’s Report No 10 of 2004: 2003-04 Financial Audits.Standing Committee on Education, Training and Young People:• Report on 2003 to 2004 Annual and Financial Reports.See Legislative Assembly Committee Inquiries and Reports under the Appendices section for furtherinformation on these reports.Reports by the OmbudsmanThere were no reports by the Ombudsman relevant to Treasury during the reporting period.Further information can be obtained from:Merrilyn Sernack Manager (02) 6207 0280 merrilyn.sernack@act.gov.auExecutive UnitReports Required by LegislationFreedom of Information (FOI)The Freedom of Information Act 1989 (the FOI Act) provides a legally enforceable right of access bycitizens to all documentation in the possession of the ACT Government, subject only to exemptions toprotect the legitimate interest of the ACT Government, and of the third parties who deal with the ACTGovernment. The Act requires information about the operations of ACT agencies to be made publiclyavailable, in particular, the rules and practices affecting citizens in their dealings with those agencies.Section 7 of the FOI Act requires Treasury to prepare and publish a statement outlining its organisation,functions and powers, the categories of documents, available and facilities provided for access todocuments.Section 7 StatementOrganisation Functions and PowersTreasury provides strategic financial and economic advice and services to the ACT Government with theaim of improving the Territory’s financial position and economic management.Treasury plays a leading role in promoting accountability and transparency in the delivery of servicesto the community and the management of resources. This is achieved through financial policies,management practices, and analysis and input into major change initiatives across the ACT PublicService.5 6 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

In addition to its traditional treasury functions, Treasury also provides a number of key crossgovernmentservices including in-sourced IT infrastructure services provided by InTACT, as well asa range of tendering, risk management, infrastructure procurement and on-line procurement servicesprovided by ACT Procurement Solutions.A list of legislation under which Treasury exercises statutory powers is included in the Appendicesunder the heading Legislation Administered by the Department.Public Participation in Decision-makingArrangements for public participation in decision-making include public submissions to inquiries,customer consultation on policies, procedures and legislation, interaction with peak industry andprofessional bodies, discussion at public meetings, consultative committees for specific purposes, accessto records through Freedom of Information (FOI) requests, comments on draft documents, comments onBills before the Assembly, and contact with the Treasurer.Categories of DocumentsTreasury holds several basic categories of documents:• those that are available on request and without charge;• those available for sale, including those that are part of a public register; and• other kinds of documents that may be available under the FOI Act.Documents available on request and without chargeDocuments within this category include publications produced by Treasury on various aspects of itsactivities. These are distributed from public counters and libraries throughout the ACT and may also beavailable via the Treasury’s webpage http://www.treasury.act.gov.au/ or on the ACT Government ContractsRegister at http://www.contractsregister.act.gov.au. This site lists contracts made by the Government overthe value of $50,000.Documents of other kinds that might be available under the FOI Act• general files, including internal, interdepartmental and public documents, minutes of meetings ofmanagement and other committees, agendas and background papers, policy statements, financialand staffing estimates;• diaries, rosters, work sheets;• program and policy files;• records held on microfilm, computer or paper in connection with specialised divisional functions;• photographs, videos and films;• financial and accounting records;• files on applicants and clients;• records of government, including the machinery of government;• leases and deeds of agreement; and• brochures.Facilities for AccessMembers of the public are encouraged to seek access to documents by contacting Treasury beforeresorting to the more formal FOI procedure. In many cases, it may be possible to access informationmore quickly and efficiently through such an approach.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 5 7

All FOI requests should be directed to:The FOI CoordinatorACT Department of TreasuryCanberra Nara Centre1 Constitution AvenueCANBERRA ACT 2601Ph: (02) 6205 0623Fax: (02) 6207 0304Several bus stops are close to the Nara Centre in London Circuit. Short-term car parking is locatedopposite the Centre and a disabled car park space is available in Nangari Street alongside the Centre.Information regarding bus routes and timetables can be obtained from ACTION telephone 13 17 10.Section 8 StatementTreasury makes available a section 8 statement. This is an index of documents provided by the agencyfor the purpose of making a decision or recommendation under an enactment or scheme. The statementis available from Treasury’s Freedom of Information (FOI) Coordinator or Treasury’s website at http://www.treasury.act.gov.au/• Summary of outcomes of FOI requests (Section 79(2)) 15 requests were received under section18 of the FOI Act during 2005-2006.• 3 of these requests had not been completed at 30 June 2006.Access DecisionsFull Release Partial Access Total Exemption Technical Refusal(no documents)Withdrawn2 5 Nil 3 2Response Times0-30 days 31-45 days 46-60 days 61-90 days > 90 days7 2 1 1 1Appeal of decisionsRequests for InternalAffirmed Partial Release OverturnedReviewNil - - -Administrative Appeals Tribunal (AAT)Requests to AAT Affirmed Overturned OngoingNil - - -Fees and charges (for requests with > 10 hours processing time)Request for personal affairsremissionRequest for financialhardship remissionRequest for public interestremissionAccepted Refused Accepted Refused Accepted Refused1 1 n/a n/a 1 n/aNo processing charges were collected during the reporting period.5 8 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Applicant typeMember of public Solicitor Association/OrganisationPoliticianCompany10 Nil 2 1 2Requests to amend personal records (section 48)No applications were made to amend personal records.Public Interest DisclosureThe Public Interest Disclosure Act 1994 provides a mechanism for people to report wrongdoing in theACT public sector. This action is referred to as making public interest disclosure’, and is less formallyknown as ‘whistleblowing’. An agency leaflet is available, which provides information on making apublic interest disclosure.The leaflet includes summary information on:• who can make a disclosure;• what can be disclosed;• what protection is available if a disclosure is made;• who can receive a disclosure; and• what agencies must do under the Public Interest Disclosure Act 1994.The leaflet also provides contact details to obtain further information in making a disclosure.During 2005-06, Treasury received four disclosures made under the Public Interest Disclosure Act 1994.The Chief Executive declined to investigate two of the disclosures on the grounds that:• the allegations have already been dealt with adequately;• the disclosures lacked substance and contained no credible evidence; and• it is inappropriate to investigate one aspect of the disclosures until current court proceedings arefinalised.The third disclosure will be considered when the same court proceedings are finalised. The ChiefExecutive has sought legal advice regarding the fourth disclosure.Further information may be obtained from:Merrilyn Sernack Manager Ph: (02) 6207 0280 merrilyn.sernack@act.gov.auExecutive UnitTerritory RecordsDepartment of Treasury Records Management Program 2005-06Treasury Records Management Program is based on the Territory Records Act 2002 to establish aframework ensuring responsible management of records and recordkeeping systems to:• provide evidence of decisions, authorisations and activities;• demonstrate that accountability requirements have been met, and• support business activities through creating, storing and providing retrievability for useable andreliable records to achieve business efficiency and effectiveness.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 5 9

As part of the Records Management Program, Treasury has an identified Records Management Policythat has been approved by the Chief Executive.Also included in the Records Management Program is a procedures manual and core businessfunctional thesaurus, based on the Territory Version of Keyword AAA and the agency specific recordsdisposal schedules.During 2005-06 the following Treasury Records Disposal Schedules were approved during thisreporting period:• Territory Records (Records Disposal Schedule – Treasury Management Records) Approval 2006(No 1) NI2006-138. Containing the functions of Government and Asset Liability Services,Government Budget Management, Government Insurance Services, Home Loan PortfolioAdministration and Superannuation Management.InTACT has developed a Records Disposal Schedule for Information and Communications Technology,which has been submitted to the Territory Records Advisory Council for approval as a notifiableinstrument. It was withdrawn following a restructure within InTACT and is now being resubmitted.The Records Management Policy, Procedures and Functional Thesaurus are available on Treasury’sintranet site along with ancillary documents, which highlight particular procedures or aspects of policy.A Records Management Training Program is continuing. Formal training incorporates two workshops,Introduction to Recordkeeping and Understanding and Using a Thesaurus. These are presented by theACT Record Services, a business unit of the Department of Urban Services. These courses are generalin nature and are not competency based and do not lead to further qualifications. Forty-three staffattended the courses.Although Treasury uses a paper-based records management system, there are some electronicrecordkeeping applications. TRIM Captura 4.3 is used as a document tracking system for themanagement of briefs. In an effort to correlate the storage of electronic documents with official recordsTreasury’s computer network is being reorganised along the same lines as the functional thesaurus.Plans are being made for the commencement of part III of the Territory Records Act 2002 on 1 July 2007.This part allows public access to records older than 20 years that do not have FOI Act exemptions.A program of appraising and sentencing legacy records is being undertaken. Records are beingdisposed of according to the authorised records disposal schedules. This will leave a collection ofrecords of business, historical and research value available for use by interested members of the public.It has not been necessary to make arrangements for preserving records that contain information thatmay allow people to establish links with their Aboriginal or Torres Strait Islander heritage, as Treasuryhas not identified any relevant classes of records.Further information may be obtained from:Elizabeth Estbergs Records Manager Ph: (02) 6207 5830 elizabeth.estbergs@act.gov.auACT Department of Treasury6 0 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Sustainability and EnvironmentCommissioner for the Environment ReportingNo investigations relating to Treasury were conducted by the Commissioner for the Environment during2005-06.Ecologically Sustainable DevelopmentThe ACT Government has adopted an understanding of sustainability that recognises the need fora long-term perspective, the need for responsibilities and benefits to be shared equitably, and theinterdependence of our economy, environment and society. The table below outlines the contributionmade by Treasury to this recognition of social, economic and environmental well-being.DescriptionTransport FleetManagementEnvironmental/Economic/Social OutcomeTreasury utilises vehicles allocated to executives as corporate fleetvehicles. This dual purpose of executive vehicles serves to minimise theneed for, and purchase of, additional fleet/corporate vehicles for generaluse.Fuel consumption data is not available for Treasury.InTACT maintained a fleet of 15 vehicles for the majority of 2005/2006.During the year 10 vehicles were replaced with new vehicles. Onevehicle was not replaced at the end of its lease. At 30 June 2006, InTACThad 14 vehicles in its fleet, including 1 SES vehicle.InTACT vehicles used 15,825.4 litres of unleaded fuel during 2005-2006.Total distance travelled for all InTACT vehicles was 162,652 kms.Energy UseManagementAir-conditioning systems in the Canberra Nara Centre are controlled byautomatic shutdown timers, reducing potentially wasted energy. OfficebasedIT equipment features energy saving shutdown timers, designed tominimise electricity consumption.The following data is available for InTACT:• Callam Offices used 3,765.7 megawatt hours (approx) of electricityduring 2005/2006.• Callam Offices used 3,765.7 megawatt hours (approx) of electricityduring 2005/2006.• Approximately 30 per cent of electricity used at Callam Offices wasfrom ‘green’ sources.• Callam Offices used 557,677 megajoules (approx) of gas during2005-2006.Note: While Callam Offices is primarily tenanted by InTACT, a number ofother agencies have occupied space at Callam throughout the year. Theelectricity and gas consumption figures are for the entire building and notsolely for the InTACT tenancy.Intensity figures are not available as consumption figures are for CallamOffices, not InTACT.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 6 1

Description Environmental/Economic/Social OutcomeEnergy reductionmanagement strategyto meet targets set inthe ACT GreenhouseStrategyStationery UseManagementTreasury contributed to emission reduction targets as specified in theACT Greenhouse Strategy through:• the use of an automatic power shutdown of building air conditioningsystems;• the use of office-based ICT equipment featuring energy savingshutdown timers;• the use of executive allocated vehicles as corporate fleet vehiclesfor use by staff; thereby negating the purchase of pool cars;• an agency annual financial contribution to the tree planting programto offset private vehicle emissions;• scheduled continuous maintenance and fine tuning of the DirectDigital Control Valves throughout building air conditioning systemsto increase the efficiency of the system.The use of recycled paper and office consumables is encouraged to reducethe quantity of virgin paper purchased. For example, InTACT has contractswith Recall for white paper recycling and Canberra Recycling for paper andcardboard recycling.No data is available for the amount of waste produced by Treasury.Property Branch (TAMS) maintains the cleaning contract for CallamOffices. InTACT is currently unable to report on the amount of wasteproduced and has approached Property Branch to ascertain whether it willbe practicable to report on this in the future.WasteUnder the ACT Greenhouse Strategy, Treasury worked to achievecompliance with the ACT NoWaste by 2010 Strategy, the aims ofwhich are to reduce waste in landfills and to promote waste recycling.Recycling is strongly encouraged throughout the department.Consistent with this strategy, Treasury continued with the followingpractices:• the use of recycled paper to reduce the quantity of virgin paperused;• the allocation of recycling bins throughout the building (marked fordisposal of different types of paper waste), including the trial ofpersonal classified waste paper bins at individual desks throughoutthe year; and• the placement of worm farm bins in all kitchens as anenvironmentally-friendly method of reducing compost waste,together with the provision of glass/tin recycling bins.InTACT has contracts with Recall for white paper recycling and CanberraRecycling for paper and cardboard recycling.• Property Branch maintains the cleaning contract for Callam Offices.InTACT is currently unable to report on the amount of wasteproduced and has approached Property Branch to ascertainwhether it will be practicable to report on this in the future.6 2 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Description Environmental/Economic/Social OutcomeWater Use ManagementStaff kitchens on all floors feature purified chilled and boiled water,enhancing cleanliness and reducing heating costs.The Nara Centre tenancy includes tenants other than Treasury and CMDmanages the tenancy on their behalf.At the Nara Centre, Treasury used a total of 2.557 megalitres (approx) ofwater were used during 2005-2006, with a water use intensity of 0.015megalitres/person (170 staff).At Callam Offices, a total of 3.215 megalitres (approx) of water were usedduring 2005-2006.Note: While Callam Offices is primarily tenanted by InTACT, a numberof other agencies have occupied space at Callam throughout the year.The water consumption figure is for the entire building and not solelythe InTACT tenancy. Intensity figures are not available as consumptionfigures are for Callam Offices, not InTACT.Sustainable InfrastructureProgramDuring 2005-06 Procurement Solutions administered the SustainableInfrastructure Program. The program supports the implementation ofmeasures aimed at increasing energy efficiency, conserving water,reducing emissions, exploring the use of alternative energy sources, andexploring the use of materials and design elements to deliver cost effectiveenhancements to public facilities and infrastructure.Some of the projects which benefited from the Sustainable InfrastructureProgram include:• Multicultural Centre;• Gungahlin Child and Family Centre;• Environment ACT Ranger House Replacement;• Palmerston Community Hall;• Holder Health Protection Services Accommodation; and• Birrigai Outdoor School Restoration.ACT Procurement Solutions worked in consultation with the Office ofSustainability on the development of advisory toolkits and information forACT Government officers to assist them in their procurement activity.Strategic Bushfire Management Plan and Operational PlansTreasury does not own or manage unleased Territory Land and therefore has no plans on which tocomment.Further information can be obtained from:Merrilyn Sernack Manager (02) 6207 0280 merrilyn.sernack@act.gov.auExecutive UnitD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 6 3

Analysis of FinancialPerformanceManagement Discussion and AnalysisTreasury’s financial results are reported in Volume 2 of the 2005-06 Department of Treasury AnnualReport. Volume 2 contains annual financial results and Statements of Performance for Department ofTreasury, Home Loan Portfolio, Central Financing Unit, Superannuation Unit and InTACT, along with aManagement Discussion and Analysis (MDA) overview for each reporting entity.6 4 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Strategic Asset ManagementThe table below outlines Treasury’s Asset Management Strategy, in relation to the department’sOwnership Agreement 2005-06. Copies of the Ownership Agreement may be accessed electronically atwww.treasury.act.gov.au/about/publications.shtml#Ownership%20AgreementsAsset Management StrategyOffice accommodation,including movementtowards the 15m 2 per officeemployee target and futureaccommodation strategies tomeet this target.As at 30 June 2006, Treasury (excluding InTACT and ACTIA— ACTIA reports separately through the ACTIA Annual Report, whileInTACT reports separately in this Report) employed approximately236 staff. They were accommodated at:• Canberra Nara Centre; and• Dame Pattie Menzies House and 20 Challis Street, Dickson(Procurement Solutions).Excluding the ACTRO shopfront on the ground floor of the CanberraNara Centre, and including 330m 2 of space on the third floor ofthe Canberra Nara Centre that was vacant as at 30 June 2006but which is now occupied by ACTIA, Treasury utilised 4901m 2 ofoffice accommodation at that date, with an average area of 20.76m 2occupied by each employee. Arrangements are progressing for theconsolidation of Treasury functions within the Canberra Nara Centreto better utilise existing office space.Procurement Solutions has absorbed the full tenancy at 20 ChallisStreet, Dickson during 2006. This followed a redesign and fitoutprocess. Procurement Solutions has also leased extra space onlevel one north of Dame Pattie Menzies House to accommodate theextra staff transferred from other departments during 2006.All office layouts/fitouts were undertaken in consultation with anarchitect to ensure the maximum use of floor space and optimumfunctionality, with the aim of achieving compliance with the 15m 2 peroffice employee.Accommodation strategies likely to be pursued in 2006-07 includeactions to progress the consolidation of departmental office locations(excluding Shared Services) into one location at the CanberraNara Centre. Consolidation of departmental office locations willalso assist in achieving the Government’s target of 15m 2 per officeemployee.Further accommodation data is available in the Treasury OwnershipAgreement 2005-06.Asset managementimprovements including assetmaintenance planning, majorproperty upgrades, conditionaudits, property valuation,asset recording, performance/utilisation, and identificationof surplus property.Treasury’s major assets are:• leasehold improvements (totalling approximately $333,000during the reporting period);• plant and equipment to an approximate value of $16,000;• software, including the whole-of-government Oracle financialmanagement system valued at $894,000. All ACT Governmentproduction and test instances of Oracle Government Financialshave now been upgraded to Release 11i – version 11.5.9. Thisrobust and fully supported Financial Management Systemallows users to take advantage of a feature-rich user interface.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 6 5

Asset Management StrategyAdoption of asbestosmaterials managementprocedures and monitoringprogram.InTACTTreasury continues to be represented on the Government AssetsAsbestos Group, which coordinates the Government’s response toACT Asbestos laws to ensure properties owned or occupied by theTerritory comply with them.As required under the legislation, Treasury worked towardsimplementing asbestos materials management and monitoringprograms. These programs aim to provide written information aboutany materials containing asbestos on departmental premises totenants, tradespeople and maintenance workers.As at 30 June 2006, InTACT was leasing 5,539 sqm of space inCallam Offices.Of this space:• 450m 2 is Computer Centre and associated areas not used asoffice space;• 613 m 2 is temporary accommodation for the ConvergedNetworks Project , and is expected to be handed back toProperty Branch in mid 2006; and• 663 m 2 is being occupied by Shared Services and will betransferred to the Shared Services Centre on 1 July 2006.This leaves InTACT with an effective 3,813 m 2 of long-term officespace for 2006-07. As at 30 June 2006, InTACT had 262 staff inCallam offices, resulting in a predicted long-term occupancy rateof 14.6m 2 for 2006-07. Actual occupancy rates may vary fromthis figure, however, depending on the impact of 2006-07 Budgetdecisions.2005-06 also saw a major shift in the location of InTACT staff.As a result of the transfer of former agency staff to InTACT as apart of Project unITy, for the first time a substantial component ofInTACT staff are now not located at Callam Offices. The majorityof staff who transferred to InTACT remain embedded in their formeragencies, which they continue to service. As part of the TransitionAgreements signed between InTACT and each agency, the formeragency is required to continue to provide accommodation andassociated office services to these staff. Consequently, InTACTdoes not lease accommodation for these staff nor count them in itsoccupancy calculations.As part of the 2005-06 Budget, funding was provided to enableInTACT to commence implementing the dispersed data centremodel recommended in the ‘Relocation Options Report’ producedfor InTACT by Colliers International in 2005. By 30 June 2006, workhad commenced on a third data centre at The Canberra Hospital.InTACT was negotiating with the Canberra Institute of Technologyon the location of a fourth, and options for a fifth are being identified.Equipment assets associated with the new data centres will bemanaged in accordance with existing asset management strategies.6 6 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Asset Management StrategyInTACT continuedThe Colliers Report also found that Callam Offices is not fullyappropriate for an organisation such as InTACT. The reportidentified a number of relocation options, however, in the currenttight office accommodation climate these were not readily available.InTACT’s future office accommodation needs will now be consideredas part of the accommodation requirements for the Shared ServicesCentre, of which InTACT will be a part.During 2005-06, InTACT continued to upgrade physical security atCallam Offices and at its Macarthur House data centre through theinstallation of new video surveillance and physical access systems.InTACT also manages the private optical fibre data network thatwas rolled out in 2004–2005 and is currently installing uninterruptedpower systems across ACT Government sites which will requiremanagement in future years.Further information can be obtained from:Ron Shaw HR and (02) 6207 6198 ron.shaw@act.gov.auCorporate SupportInTACTD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 6 7

Capital Works ManagementPrior Years Current YearProject OriginalProjectRevisedProjectValue 1Prior Year’sExpenditureValue 1Prior Year’sFinancingBudgetedFinancingRevisedFinancingBudgetedExpenditureActualExpenditureTotalTotalto date 1 to date 1Financing ExpenditureNEW WORKSN/A - - - - - - - - - -Private Data Network1,530 1,530 - - 1,530 30 1,530 24 30 24Extension to Hume 2Data Communications2,975 2,975 - - 1,782 250 1,782 259 250 259Centres 3Total New Works 4,505 4,505 - - 3,312 280 3,312 283 280 283WORKS IN PROGRESSN/A - - - - - - - - - -Total Works in Progress - - - - - - - - - -COMPLETED PROJECTSN/A - - - - - - - - - -Total Completed Works - - - - - - - - - -Grand Total 4,505 4,505 - - 3,312 280 3,312 283 280 283Notes:(1) All amounts are in $’000.(2) Unspent funding has been rolled into 2006-07. Delays are associated with protracted negotiations over arrangements for sharing cabling trenches. The revised completion date is December 2006.(3) Unspent funding has been rolled into 2006-07. Delays are due to difficulties in finding suitable sites and the need to align with construction timetables of shared facilities. The revised completiondate is June 2007.6 8 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Government ContractingProcurement Contracting Principles and ProcessesTreasury’s procurement selection and management processes complied with the GovernmentProcurement Act 2001, and subordinate Guidelines and Circulars, including:• Government Procurement (Approved Procurement Units) Guideline 2002 (No 2);• Government Procurement (Principles) Guideline 2002 (No 2);• Government Procurement (Quotation and Tender Thresholds) Guideline 2003 (No 1); and• Procurement Circular 2004/08 Contract Variations.Procurement proposals valued at over $50,000 were reviewed by an Approved Procurement Unit (APU)and, if applicable, by the Government Procurement Board as required by the Government Procurement(Approved Procurement Units) Guideline 2002.Analysis of 2005-2006 Procurement ProposalsProcurement Type Number Value ($m) GST incl.Public Tender: Goods 1 0.68Services 6 6.49Works 1 0.27Select Tender: Goods 3 0.99Services 5 0.87Works - -Single Select Tender: Goods 2 9.47Services 13 13.51Works - -Variations: Goods - -Services 6 4.13Works - -Total: 37 36.41Major procurement activities during 2005-06 include:• extension of the current Enterprise Agreement for Microsoft Software Licensing and RelatedServices - $9.30 million;• provision of Analogue Telephone Services - $3.80 million;• provision of Hewlett Packard Server Maintenance and Support - $2.10 million;• selection of Default Superannuation Scheme - $1.80 million; and• provision of Credit Rating Services - $0.96 million.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 6 9

External Sources of Labour and ServicesTreasury engaged external labour and organisations to undertake a range of services during 2005-06.These procurements are undertaken and managed under the ACT Government’s procurement principlesof value for money, open and effective competition, probity and ethical behaviour, environmentalsustainability, local industry development, and management of risk.External labour and organisations are engaged for reasons including the need for specialist skills, thelack of suitable in-house resources and the need for independent review or facilitation.Interest Paid on Commercial AccountsPart 4 of the Government Procurement Act 2001 requires interest to be paid on overdue payments tosuppliers of goods, services and works. Treasury normally settles its creditors within a 30-day period.Treasury did not pay any interest during the reporting period on overdue accounts and did not enter intoany contracts that excluded the provisions of the Government Procurement Act 2001.Further information can be obtained from:Annette Wright Business (02) 6207 8935 annette.wright@act.gov.auManagementManagerShared Services7 0 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

External Sources of Labour and Services (GST exclusive)• Treasury has not used Select Tender for contracts of value greater than $100,000.• Treasury has not used non-pre-qualified construction contractorsName Description and Cost $ Area managing DateReason for Contract (GST contract contract letexclusive)2005-06Output 1.1 Economic DevelopmentMacquarie Risk Provision of specialist $33,024 Central Financing November 2002Advisory Services risk management UnitservicesHays Personnel Administrative Services $44,121 Central Financing OngoingUnitStandard and Poor’s Credit Rating Services $66,048 Central Financing April 2006UnitVisual Risk Pty Ltd Provision of specialist risk $15,657 Central Financing December 2005management servicesUnitBarrington Treasury Provision of specialist risk $8,256 Central Financing December 2005Services Pty Ltd management services UnitAustraclear Services Provision of Registry, $9,000 Central Financing February 2005Limited Issuing and Paying UnitAgency Services to theTerritory’s $1 billion DebtProgramHayes Personnel Specialist Economic $60,160 Economics November 2005ServicesBranchOutput 1.2: Financial ManagementMonash University Specialist advice on $30,700 Policy June 2005Centre for the Vocational Coordination andEconomics of Education and Training DevelopmentEducation and matters for theTrainingExpenditure RevenueCommitteePrudence Ford Work around shared $60,300 Policy January 2006services and itsCoordination andimplementationDevelopmentValueSourcing Review of ACT $30,650 Policy January 2006Information TechnologyCoordination andservices for the StrategicDevelopmentand Functional Review ofthe ACT Public Sectorand ServicesIan Thomson Professional accounting $45,240 Policy November 2005services and advice toCoordination andthe Strategic andDevelopmentFunctional Review of theACT Public Sector andServicesD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 7 1

Name Description and Cost $ Area managing DateReason for Contract (GST contract contract letexclusive)2005-06Output 1.2: Financial Management continuedAustralian Council of Specialist advice on $60,343 Policy June 2005Education Research government school Coordination andeducation matters for theDevelopmentExpenditure ReviewCommitteeGreg Smith Advice to Strategic and $68,250 Policy November 2005Functional Review of theCoordination andACT Public Sector andDevelopmentServicesPrice Waterhouse Advice on Territory $50,000 Policy March 2006Coopers ownership interests in Coordination andRhodiumDevelopmentHays Personnel 1 Accounting and Financial $86,891 Finance and OngoingServicesBudgetASG Group Limited 2 Ongoing support and $263,561 Finance and October 2004maintenance andBudgetassociated services forOracle GovernmentFinancial ApplicationsMakeham Kichner Research for Expenditure $20,817 Policy May 2005Research 3 Review Committee Coordination andreviews andDevelopmentimplementation of theTBL evaluation framework1This represents the total of a number of individual contracts for specialised accounting staff,each of whom was selected on merit against a number of candidates.2This is a whole-of-government contract managed by Treasury. Portions of these costs are reimbursed by agencies.3This cost is for the duration of the contract.Output 1.3: Revenue Management (RMD)Aussoft Solutions Pty Maintain and support $60,984 Revenue May 1998Limited 3 Rates and Land Tax ManagementSoftwareDivisionTechnology One Maintain and support $178,071 Revenue October 2003Limited Territory Revenue System ManagementDivisionAustralian Valuation Valuation services $422,728 Revenue November 2003OfficeManagementDivisionHermes Precisa Pty Printing and Base $142,035 Revenue June 2003Limited Stationary for General ManagementRates, Land Tax andDivisionValuation Notices andscanning of documentsUNISYS Payment Payment collection $25,176 Revenue OngoingServices Ltd services ManagementDivision7 2 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Name Description and Cost $ Area managing DateReason for Contract (GST contract contract letexclusive)2005-06Output 1.3: Revenue Management (RMD) continuedAustralian Postal Payment collection $257,570 Canberra Connect April 2005Corporation 4servicesCommonwealth Processing of Credit Card $238,066 ACT September 2004Bank 4and Bpay payments, directdebits and various servicesrelated to collection ofTerritory’s revenueEffective People Contract staff $245,554 Revenue OngoingPty LtdManagementDivision3Continuation of user proprietary software.4Contract is negotiated as a whole-of-government contract, amount disclosed relates only to the Revenue ManagementDivision.Output 1.4 Procurement SupportArch Info Tech Project coordination $39,437 ACT Procurement Transferredservices Solutions from DUSFulton Technology Development and $45,918 ACT Procurement July 2002maintenance of ContractsSolutionsManagement System(CMS), Basis website,Contracts Register, ACTGovernmentPre-qualification SystemKingsway Financial Pre-qualification financial $31,264 ACT Procurement September 2002Assessments advice/assessment SolutionsRandom Computing Development and $38,471 ACT Procurement July 2000maintenance of Project-R,Solutionsinterface to Oracle andReserve-RHome Loan Portfolio (HLP)Bureau Services Southpac’s agent for $86,772 Home Loan September 2005Australia 5 licensing the software to Portfoliothe TerritoryKPMG Review the risks $27,000 Home Loan October 2005associated withPortfoliomortgages, the level ofprovisions and capitaladequacy of the portfolio5Proprietary software.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 7 3

Name Description and Cost $ Area managing DateReason for Contract (GST contract contract letexclusive)2005-06Output 1.1: InTACTAcumen Alliance Risk management & $52,245 InTACT October 2005(ACT) Pty Ltd internal audit servicesCapital Easy Finance Asset Leasing $4,916,783 InTACT May 2004and LeasingCerulean Solutions Provision of $572,494 InTACT March 2004Ltdtelecommunicationsproducts and servicesCHUBB Security Physical security services $77,823 InTACT January 2002Australia Pty LtdCITEC Payroll disbursement $30,901 InTACT May 2001servicesCitrix Systems Asia Citrix Support Services $67,141 InTACT June 2005Pacific Pty Ltd AgreementCorporate Express Provision of servers, $1,767,161 InTACT December 2002Aust Ltd 6PC’s workstation andother peripherals,accessories and softwareCybertrust Australia Provision of External $115,962 InTACT October 2004Pty LtdFirewallsDimension Data Provision of $3,961,380 InTACT March 2004Australia Pty Ltd telecommunicationsproducts and services –Active EquipmentEB2B.COM Pty Ltd Provision of an $167,088 InTACT February 2006Encryption SolutionEMC Global Holdings Company Storage Area $5,103,585 InTACT October 2004Network maintenanceand supportEmerson Network UPS Maintenance $997,130 InTACT May 2004Power Global AgreementServices AustraliaExceed Systems Consultancy for $60,570 InTACT September 2005IntegrationApplication Sociability,Testing and ConsolidationManagerGartner Australasia Research and advisory $47,285 InTACT April 2004Pty LtdservicesGibson Quai-AAS Consultancy evaluating $66,697 InTACT December 2004Pty Ltdoptions for voice systemsin ACT GovernmentSchoolsGlobal Asset Systems Barracuda 600 Spam $63,330 InTACT August 2005Filters supportHewlett-Packard Aust Hardware Maintenance $547,383 InTACT October 2003Limited 6Agreement7 4 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Name Description and Cost $ Area managing DateReason for Contract (GST contract contract letexclusive)2005-06Output 1.1: InTACT continuedInformation Builders Provision of a service $114,823 InTACT August 2005Pty Ltdmanagement reportingsolutionIntersect Alliance Provision of security $20,000 InTACT October 2003Pty Ltdsoftware support andmaintenanceItilics Pty Ltd Provision of Infrastructure $231,350 InTACT May 2005Technology Library ServiceDesk management systemKAZ Technology PERSPECT Software $238,305 InTACT July 2003Services Pty Ltd Support AgreementLexmark International Monochrome and colour $33,664 InTACT December 2002(Aust) Pty Ltd 6 printersMacquarie Bank Asset leasing $6,988,863 InTACT January 2000LimitedMercer Human Organisational design $72,389 InTACT September 2005Resources Consulting consultancyPty LtdMeta Group Aust IT benchmarking $88,298 InTACT September 2002Holdings Pty Ltd consultancyMicrosoft Enterprise Microsoft enterprise $120,525 InTACT June 2003agreementMicrosoft Pty Ltd Microsoft Premier $31,293 InTACT July 2002Support AgreementOptus Network Pty Ltd Mobile phone products $1,224,850 InTACT September 2004and servicesProactive Services IT Service management $135,584 InTACT May 2004Pty Ltdconsultancy and trainingRicoh Australia Provision of photocopiers $182,957 InTACT December 2002Pty Ltd 6and MFDsSaville & Holdsworth Provision for psychometric $51,678 InTACT November 2005Australia Pty Ltd on-line testingSquiz Pty Ltd Provision of remote $96,125 InTACT December 2005access to the MySourceMatrix SystemSRC Solutions Provision of rehabilitation $27,761 InTACT July 2004Pty Ltdcase management andOH&S servicesSun Microsystems Sun Support Agreement $111,253 InTACT February 2004Telstra Corporation Strategic Partner $6,576,556 InTACT April 1997LtdAgreementTransact Capital Voice $2,915,431 InTACT April 2004Communications telecommunicationsproducts & servicesD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 7 5

Name Description and Cost $ Area managing DateReason for Contract (GST contract contract letexclusive)2005-06Output 1.1: InTACT continuedTurboSoft Pty Ltd TurboSoft TTWin $40,000 InTACT July 2003Emulation SoftwareLicence AgreementUnisys Australia Unisys Clearpath $221,615 InTACT February 2004Pty LtdHardware Maintenance& Software SupportVeriSign Australia Digital Server Certificates $68,630 InTACT August 2004Pty LtdVerossity Pty Ltd Provision of Human $10,739,751 InTACT July 2003Resources andRecruitment ServicesVolante Systems Provision of large $269,950 InTACT September 2003Pty Ltd (merged with account reseller servicesIPEX ITG)(Microsoft licences)Vperformance VNMS Maintenance & $72,350 InTACT October 2003Pty LtdSupport6Includes equipment paid for by InTACT’s lease provider and subsequently leased to InTACTCorporate ManagementBellewarra Audit committee services $5,580 Corporate January 2001Investments Pty LtdManagementDavidson Trahaire Staff counselling services $10,000 Corporate January 2004Corpsych Pty LtdManagementMasters Le Mesurier Internal audit Services $9,000 Corporate February 2005Pty LtdManagementWalter Turnbull Internal audit services $17,941 Corporate January 2002Pty LtdManagementWalter Turnbull Review of HR system $22,005 Corporate March 2006Pty LtdManagementEBT 1 Central Financing UnitMacquarie Investment Provision of Funds $391,595 Central Financing October 2003Management Limited management Services UnitVanguard Provision of Funds $110,000 Central Financing October 2003Investments Australia management Services (estimated UnitLimitedas fees aredeductedfrom theunit priceof theinvestment)JPMorganChase Provision of master $108,842 Central Financing November 2003custodian servicesUnit7 6 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Name Description and Cost $ Area managing DateReason for Contract (GST contract contract letexclusive)2005-06Superannuation UnitRussell Employee Consulting Actuary $196,941 Superannuation December 2003BenefitsUnitComSuper Administrator CSS / PSS $3,237,257 Superannuation OngoingUnitJP Morgan Master Custody Services $582,040 Superannuation November 2003UnitVanguard External Funds Manager $625,840 Superannuation October 2003UnitAlliance Bernstein External Funds Manager $718,679 Superannuation January 2004UnitWellington External Funds Manager $945,015 Superannuation January 2004UnitPerpetual External Funds Manager $597,820 Superannuation January 2004UnitWestLB Mellon External Funds Manager $524,909 Superannuation January 2004UnitRenaissance External Funds Manager $664,379 Superannuation January 2004UnitColonial External Funds Manager $199,498 Superannuation OngoingUnitFrontier Investment Investment Advisory $238,011 Superannuation May 2001Consulting Services UnitAMP External Funds Manager $500,662 Superannuation OngoingUnitWilshire External Funds Manager $525,000 Superannuation December 2004UnitGillespie & Co. Contractor $24,164 Superannuation February 2006UnitHays Personnel Contractor $74,998 Superannuation OngoingUnitD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 7 7

AppendicesLegislative ReportLegislation administered by the departmentTreasurerACTEW/AGL Partnership Facilitation Act 2000Appropriation ActsCompetition Policy Reform Act 1996Debits Tax Act 1997Duties Act 1999 1Emergencies Act 2004, schedule 1Exhibition Park Corporation Act 1976Financial Agreement Act 1994Financial Management Act 1996 1Financial Relations Agreement Act 2000First Home Owner Grant Act 2000Government Procurement Act 2001Hotel School (Repeal) Act 2005 2Independent Competition and Regulatory Commission Act 1997Insurance Authority Act 2005Land Tax Act 2004 1Motor Sport (Public Safety) Act 2006 2Payroll Tax Act 1987 1Rates Act 2004 1Road Transport (General) Act 1999, part 10Superannuation (Legislative Assembly Members) Act 1991Taxation Administration Act 1999Taxation (Government Business Enterprises) Act 2003Territory Owned Corporations Act 1990Territory Superannuation Provision Protection Act 2000Minister for PlanningPlanning and Land Act 2002, chapter 41Amending legislation passed during 2005-62New legislation enacted during 2005-067 8 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Legislative Assembly Committee Inquiries and ReportsStanding Committee on Education, Training and Young People – Report on 2003 to 2004 Annualand Financial ReportsReport tabled 5 May 2005: Government response tabled 15 December 2005Recommendation 2Government responseAction to dateThe Committee recommends that reporting agencies improve the levelof discussion and analysis in reports, including clear and plainexplanations of the intent, meaning and variances in performancemeasures, and including discussion of challenges and difficulties facedby the agency.Agreed. In the Department of Education and Training Annual Report2003-2004, the performance measures incorporated finance measureswith material variances requiring explanations. Financial terminologywas used in the explanations to provide factual, precise reasons formaterial variances.For 2005-2006, all ACT departments initiated changes to performancemeasures according to Department of Treasury guidelines. Newmeasures have been introduced to enable reporting on effectivenessand efficiency in the delivery of services and Early Intervention wasidentified as a cross-agency output. The 2004-2005 reporting willconstitute a transition model with the aim being to move to triple bottomline reporting.Treasury notes the concerns of the Committee regarding clarity ofdocumentation, and every attempt will be made to clarify theexplanations given on the notes to the measures.Since the inception of the Annual Management Discussion andAnalysis (MD&A) several years ago, Treasury has provided annualadvice to agencies on information requirements for inclusion in theirMD&A. The information content of the MD&A is reviewed annually and,where relevant, the advice provided incorporates guidance on howto address audit recommendations from prior years. The Memorandumaddressing information requirements for the 2005-06 MD&A was issuedin May 2006 (2006/08).A separate Treasury Memorandum (2006/13) was issued in July 2006providing a “Better Practice Guideline” to agencies for use in thepreparation of their 2005-06 Statements of Performance. The“Better Practice Guideline” was developed principally to support theaims of the revised performance measurement framework, that is, toassist agencies to provide more meaningful and useful measures forthe Legislative Assembly and the ACT community.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 7 9

Standing Committee on Public Accounts – Report on the 2003-04 Annual and Financial ReportsReport tabled 25 August 2005: Government response tabled 15 December 2005Recommendation 2Government responseAction to dateThe Committee recommends that agencies take up the Auditor-General’s finding regarding the desirability of improvements toprocesses for the preparation of financial statements.Agreed. Agencies have been reminded by the Department of Treasuryof the need to submit timely financial information to the Auditor-General,and compliance with this is monitored through the financial statementprocess.In preparation for the 2004-05 audit of the Territory’s ConsolidatedAnnual Financial Statements, Treasury issued Memorandum 2005/08to agencies outlining timeframes, processes and other informationpertinent to the preparation of their 2004-05 Annual FinancialStatements. Agencies were reminded through that Memorandum toensure that appropriate process are in place to meet the due dates,and to address the concerns raised by the Auditor-General in her reporton the 2003-04 Financial Audits. A similar message was conveyed inMemorandum 2006/09, issued in June 2006, which outlines agencyrequirements for the preparation of the Territory’s 2005-06 AnnualFinancial Report.Standing Committee on Public Accounts – Review of Auditor-General’s Report No 10 of 2004:2003-04 Financial AuditsReport tabled 24 November 2005: Government response tabled 14 February 2006Recommendation 1Government responseAction to dateRecommendation 2Government responseAgencies take up the Auditor-General’s finding regarding desirability ofimprovements to processes for the preparation of financial statements.Noted. The Government and agencies will continue to work with theAuditor-General to improve financial development processes, whereapplicable and practical, within the Territory.In preparation for the 2004-05 audit of the Territory’s ConsolidatedAnnual Financial Statements, Treasury issued Memorandum 2005/08to agencies outlining timeframes, processes and other informationpertinent to the preparation of their 2004-05 Annual FinancialStatements. Agencies were reminded through that Memorandum toensure that appropriate process are in place to meet the due dates,and to address the concerns raised by the Auditor-General in her reporton the 2003-04 Financial Audits. A similar message was conveyed inMemorandum 2006/09, issued in June 2006, which outlines agencyrequirements for the preparation of the Territory’s 2005-06 AnnualFinancial Report.A capital works framework policy be developed to establish aconsistent, whole-of-government approach to the monitoring, planningand procurement of capital works.The Government has made significant improvements to capital worksbudgeting and reporting processes since 2003-04. These include acapital works framework for the development of capital works businesscase proposals, incorporating linkages to whole-of-governmentobjectives in planning for new or replacement infrastructure. Thisframework is being implemented in the 2006-07 Budget process.8 0 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

In May 2005, the Treasurer announced that the Government wasreforming procurement arrangements across Territory agencies andcentralising the majority of procurement in Procurement Solutions.A key element of the reform is transferring responsibility for theprocurement and delivery of capital works project to ProcurementSolutions to enable a more coordinated and consistent approach to theprocurement of capital works.The Government has also implemented the capital upgrades programwhich commenced in the 2005-06 Budget, allowing agencies to betterplan for and manage expenditure on existing infrastructure orprograms, based on principles of strategic asset management. Thishas made a significant improvement in planning for a large componentof the capital works program.Action to dateThe Government has continued with its commitment to improved andconsistent approaches to capital works monitoring, planning andprocurement processes. The reforms described above are working welland delivering positive results for the ACT Government.Further to the 2005 procurement and capital works reforms, the2006-07 Budget provided for continued reforms in the areas ofprocurement and capital works (including asset management), asoutlined below.Capital WorksFrom 2007-08, a four-year rolling capital works program will beimplemented. Agencies will be required to develop a four-yearindicative forward program, updated on a rolling basis, with fundingconsideration by Government annually for the budget year only. Thiswill further strengthen forward planning and approval processes for allinfrastructure projects.In addition to this, all agencies will be required to prepare strategicasset management plans, which will include condition audits, as part ofthe 2007-08 Budget process.Further investigative and development work will also be undertaken inthe coming year for the adoption of a two-stage approval and fundingprocess for new capital works projects. The process will involve projectconcept approval prior to final approval, and authorisation of projectsready for construction. This process is targeted at improving programscoping, delivery and project assessments, including cost/benefit andrisk assessments.ProcurementA range of procurement-related initiatives are proposed for introductionincluding:• development of procurement toolkits for a whole-of-governmentapproach to procurement;• development and management of common use contracts;• implementation of a whole-of-government e-procurementsystem;• statutory and management reporting of all procurementspending; and• standardisation and streamlining of all documentation forprocurement activities.D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 8 1

Standing Committee on Public Accounts – Report on the Annual and Financial Reports 2004-05Report tabled 25 August 2005: Government response not yet tabledAnnexed ReportsTreasury has no Annexed Reports for 2005-06.8 2 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Glossary of AcronymsABSAustralian Bureau of StatisticsACTAustralian Capital TerritoryACTPLA Australian Capital Territory Planning and Land AuthorityAIFRSAustralian equivalent to International Financial Reporting StandardsAPUApproved Procurement UnitASOAdministrative Service OfficerAS1428.1 Australian Standard 1428.1ATOAustralian Taxation OfficeAWAAustralian Workplace AgreementbasisBuyers and Sellers Information ServiceBCDRBusiness Continuity and Disaster RecoveryBDDBusiness Desktop DeploymentBMHSBlue Mountains International Hotel Management SchoolCFUCentral Financing UnitCGCCommonwealth Grants CommissionChris21 Complete Human Resource Information System (version 21)CITCanberra Institute of TechnologyCITECA national information and communications technology (ICT) service providerCMDChief Minister’s DepartmentCMDB Configuration Management DatabaseCSSCommonwealth Superannuation SchemeCOAGCouncil of Australian GovernmentsCTHCommonwealth of AustraliaDTDepartment of TreasuryEAPEmployee Assistance ProgramEEOEqual Employment OpportunityEPAEnvironment Protection AuthorityESAEmergency Services AuthorityESDEcologically Sustainable DevelopmentFABDFinance and Budget DivisionFMA Financial Management Act 1996FOIFreedom of InformationGAAGraduate Administrative AssistantGBEGovernment Business EnterpriseGFSGovernment Finance StatisticsGSTGoods and Services TaxGSTAS GST Administration Sub-CommitteeHLPHome Loan PortfolioD E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 8 3

HRHuman ResourcesHRA Human Rights Act 2004ICTInformation Communication TechnologyIGAIntergovernmental Agreement on the reform of Commonwealth State FinancialRelationsIPInternet ProtocolITInformation TechnologyITILInformation Technology Infrastructure LibraryITOInformation Technology OfficerJACSDepartment of Justice and Community SafetyMDAManagement Discussion and AnalysisMLAMembers of the Legislative AssemblyMSAM MetaFrame Secure Access ManagerN/aNot applicableNAAATI National Accreditation Authority for Translators and InterpretersNCONational Competition councilNCPNational Competition PolicyOH&SOccupational Health and SafetyOLPSOnline Lodgment and Payment ServiceOMAOffice of Multicultural AffairsOpCenOperations CentrePCPersonal ComputerPSMA Public Sector Management Act 1994PSSPublic Superannuation SchemePty Ltd Propriety LimitedRAPSReceipting and Payments SystemRISRegulatory Impact StatementsRMDRevenue Management DivisionSANStorage Area NetworkSEOsSpecial Employment ArrangementsSERBIR Senior Executive Responsible for Business Integrity RiskSITOSenior Information Technology OfficerSOEStandard Operating EnvironmentSOGSenior Officer GradeSPASuperannuation Provision AccountSPPsSpecific Purpose PaymentsSQL Server Standardised Query Language ServerTOCsTerritory Owned CorporationsTRSTerritory Revenue SystemUPFUniform Presentation FrameworkYWCA Young Women’s Christian Association8 4 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Alphabetical IndexAboriginal and Torres Strait Islander Reporting 38Access to Government Strategy 31ACT Financial Framework 12ACT Women’s Plan 39Administration Cost per Home Loan 24Analysis of 2005-2006 Procurement Proposals 69Analysis of Agency Performance 7Borrowing Management 20Business continuity and disaster recovery 28Capital Works Management 68Chief Executive Review 1Commissioner for the Environment Reporting 61Community Engagement 33Compliance revenue per inspector 16Contracts & Tendering Branch 18Culture and Values 43Customer projects 26Debt management - level of outstanding debt 16Ecologically Sustainable Development 61Executive Management Group 51Expenditure Reviews and Strategic and Functional Review 11External Government Reporting 11External Scrutiny 54External Sources of Labour and Services 70Fraud Prevention 52Freedom of Information 56Governance 51Government Business Enterprise Oversight and Governance 12Government Contracting 69Government Procurement 55Health 45Housing 12Human Resource Performance 40Human Rights Act 30ICT security 28Implementation of ITIL 27Increase in net assets for the financial year 24Infrastructure Procurement Branch 17D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 8 5

Installation of uninterrupted power systems 27InTACT Senior Executive Team 52InTACT Strategic Plan 2004-07 51Internal Accountability 51Internal audit reviews 53Investment Management 20Learning and Development 46Legislation administered by the department 78Legislative Assembly Committee Inquiries and Reports 79Legislative Report 78Management of Trust Moneys and Other Non-Public Moneys 55Managing Our People 40Multicultural Framework 35Organisation ChartviOutput 1.1 – Economic Management: 7Output 1.1 – Home Loan Portfolio: 24Output 1.1 – InTACT: 25Output 1.2 – Financial Management: 10Output 1.3 – Revenue Management: 15Output 1.4 – Procurement Support Services: 17Output EBT 1 – Central Financing Unit: 20Output EBT 1 – Superannuation Unit: 22Preparation and Delivery of the ACT Budget 11Procurement Contracting Principles and Processes 69Procurement Policy Unit 18Procurement Solutions, Management Review Committee 51Provision of Financial Management Training 13Public Interest Disclosure 59Reports by Legislative Assembly Committees 56Reports by the Auditor-General 54Reports by the Ombudsman 56Reports Required by Legislation 56Risk Management and Internal Audit Arrangements 53Sale of the Australian International Hotel School 12Section 7 Statement 56Section 8 Statement 58SOE XP upgrade 27Software developments and upgrades 27Staff development 28Staffing Profile 41Storage Area Network upgrade 27Strategic Asset Management 65Strategic Bushfire Management Plan 63Studybank 48Summary of Outcomes of FOI Requests (Section 79(2)) 588 6 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Sustainability and Environment 61Territory Records 59Transmittal CertificatesvTreasury Corporate Plan 2006 51Triple Bottom Line 12Workplace Diversity 43Workplace Health and Safety 45Workplace Relations 49D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 8 7

Compliance IndexSectionPage NumberTRANSMITTAL CERTIFICATECHIEF EXECUTIVE REVIEW 1The organisation 1Overview and Highlights 1Outlook 4AGENCY PERFORMANCE 7Analysis of agency performance 7Human Rights Act 30Access to Government Strategy 31Community Engagement 33Multicultural Framework 35Aboriginal and Torres Strait Islander reporting 38ACT Women’s Plan 39MANAGEMENT OF THE ORGANISATION 40Managing our people 40HR performance 40Staffing profile 41Culture & values 43Workplace diversity 43Workplace health and safety 45Learning & development 46Workplace relations 49Governance 51Internal accountability 51Fraud prevention 52Risk management & internal audit arrangements 53External scrutiny 54Reports required by legislation 56Freedom of Information 56Public Interest Disclosure 59Territory records 59Sustainability & Environment 61v8 8 D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6

Commissioner for the Environment reporting 61Ecologically sustainable development 61Strategic bushfire management plan and bushfire operational plans 63ANALYSIS OF FINANCIAL PERFORMANCE 64Management discussion and analysis 64, Volume 2Financial report Volume 2Statement of performance Volume 2Strategic asset management 65Capital works 68Government contracting 69APPENDICES 78Legislative Report 78Legislation administered by the Department 78Legislative Assembly Committee Inquiries and Reports 79ANNEXED REPORTS 82NilSUBSUMED REPORTSn/aCommissioner for ACT Revenue 15D E PA RT M E N T O F T R E A S U RY A N N U A L R E P O RT 0 5 - 0 6 8 9