This year has given rise to a series of extraordinary challenges, from the summer bushfires to the global coronavirus (COVID-19) pandemic, which have impacted the way we live and work like never before. In this environment, the Department of Premier and Cabinet’s role in providing leadership and driving innovation and collaboration for the benefit of the Victorian community has been more vital than ever.

The scale of this year’s bushfires across the eastern part of the state was devastating. DPC supported the rapid establishment of Bushfire Recovery Victoria and the Victorian Bushfire Appeal to work with local communities impacted by the fires and led the coordination and planning of recovery efforts.

The government’s declaration of a State of Emergency in response to the coronavirus (COVID-19) pandemic in March prompted a new way of working across the Victorian public service (VPS) and saw the department’s successful transition to a remote working model. DPC worked quickly to implement changes to the structure of the Victorian Government to support the response to the unprecedented health, economic and social policy challenges presented by coronavirus (COVID-19).

DPC has responded, and continues to respond, with incredible professionalism, flexibility and resilience to meet these challenges. The unwavering commitment demonstrated by DPC staff while navigating a period of significant change, both at work and at home, has been outstanding.

VPS employees, whether responding directly to the pandemic on the frontline or working from home to support the core business of government, have embraced new ways of working and continue to serve the Victorian community.

Importantly, as evidenced by some of the remarkable work highlighted in this annual report, the bushfires and the coronavirus (COVID-19) pandemic have not stopped DPC from delivering notable initiatives and ably supporting the core business of government over the course of the year.

In December 2019, in a major step forward on the path to Treaty, the First Peoples’ Assembly of Victoria was officially declared as Victoria’s Aboriginal Representative Body in accordance with the Advancing the Treaty Process with Aboriginal Victorians Act 2018. The Assembly, consisting of Victorian Traditional Owners, is the first democratically elected body for Aboriginal Victorians in the state’s history and is working in partnership with the Victorian Government to establish the framework to support future treaty negotiations.

Other important work delivered by DPC this year includes:

• establishing and supporting the Suburban Rail Loop Authority to coordinate and progress the Suburban Rail Loop Project and transform Victoria’s public transport system
• planning for the historic 75th anniversary of the end of the Second World War, including online commemorative services, to ensure Victorians could mark this important milestone
• delivering the Inquiry into the Victorian On-Demand Workforce, which investigated the conditions for on-demand workers in the Victorian labour market and made recommendations aimed at fairer arrangements and promoting a level playing field
• launching the Jobs and Skills Exchange jobs-matching platform to enhance workforce mobility across the VPS
• supporting the development and release of the Victorian Forestry Plan to assist the industry to transition to a plantation-based timber supply by 2030
• collaborating with departments and agencies to improve the use of data and advanced analytics to support decision-makers and drive better health, social, economic and environmental outcomes for Victorians
• enacting the Gender Equality Act 2020 to improve and support workplace gender equality across Victoria’s public sector, universities and local councils.

Our vision

The Department of Premier and Cabinet’s vision is to be a recognised and respected leader in whole of government policy and performance.

Our mission

DPC’s mission is to support the people of Victoria by:

• helping government achieve its strategic objectives
• providing leadership to the public sector to improve its effectiveness
• promoting collaboration across government to drive performance and improve outcomes.

DPC supports the Victorian Government’s commitment to a stronger, fairer, better Victoria by promoting excellence in government service delivery and reform.

Our values

DPC upholds the public sector values as outlined in the Public Administration Act 2004.

Responsiveness

• Providing frank, impartial and timely advice to the government
• Providing high-quality services to the Victorian community
• Identifying and promoting best practice

Integrity

• Being honest, open and transparent in our dealings
• Using powers responsibly
• Reporting improper conduct
• Avoiding any real or apparent conflicts of interest
• Striving to earn and sustain public trust of a high level

Impartiality

• Making decisions and providing advice on merit without bias, caprice, favouritism or self-interest
• Acting fairly by objectively considering all relevant facts and applying fair criteria
• Implementing government policies and programs equitably

Accountability

• Working to clear objectives in a transparent manner
• Accepting responsibility for our decisions and actions
• Seeking to achieve best use of resources
• Submitting ourselves to appropriate scrutiny

Respect

• Treating others fairly and objectively
• Ensuring freedom from discrimination, harassment and bullying
• Using others’ views to improve outcomes on an ongoing basis

Leadership

• Actively implementing, promoting and supporting these values

Commitment to human rights

• Making decisions and providing advice consistent with the human rights set out in the Charter of Human Rights and Responsibilities Act 2006
• Actively implementing, promoting and supporting human rights

Our objectives

DPC’s objectives are as follows.

Strong policy outcomes

• Pursuing policy and service delivery excellence and reform
• Leading the public sector response to significant state issues, policy challenges and projects
• Supporting the effective administration of government

Engaged citizens

• Supporting and promoting full participation in strong and vibrant communities
• Empowering citizens to participate in policymaking and service design
• Ensuring a holistic approach to social policy and service delivery

Professional public administration

• Fostering and promoting a high-performing public service
• Ensuring effective whole of government performance and outcomes
• Protecting the values of good public governance, integrity and accountability in support of public trust

High-performing DPC

• Empowering our people and investing in our culture
• Ensuring efficient and effective processes and systems
• Ensuring good governance and risk management

Premier of Victoria - The Hon Daniel Andrews MP

The Premier is Victoria’s head of government. DPC advises and supports the Premier and his portfolio.

The Premier is the main channel of communication between the Governor and Cabinet and between the Victorian Government and other state and territory governments.

The Premier is also responsible for the following DPC portfolio entities:

• Office of the Governor
• Bushfire Recovery Victoria.

Contact details

1 Treasury Place
East Melbourne VIC 3002
Email: daniel.andrews@parliament.vic.gov.au
Website: www.premier.vic.gov.au

Minister for Government Services - The Hon Danny Pearson MP

DPC advises and supports the Minister for Government Services and his portfolio, which includes public sector administration and reform, cybersecurity, data analytics and digital transformation.

The Minister for Government Services is also responsible for the following DPC portfolio entities:

• Office of the Chief Parliamentary Counsel
• Office of the Victorian Government Architect
• Public Record Office Victoria
• Service Victoria
• Victorian Electoral Commission
• Victorian Independent Remuneration Tribunal
• Victorian Public Sector Commission.

In addition to his DPC responsibilities, Mr Pearson is the Assistant Treasurer and Minister for Regulatory Reform.

Contact details

1 Macarthur Street
East Melbourne VIC 3002
Email: danny.pearson@parliament.vic.gov.au
Website: www.dannypearson.com.au

Minister for Industrial Relations - Tim Pallas MP

With the support of DPC, Minister Pallas looks after the Industrial Relations portfolio, which includes DPC’s Industrial Relations Victoria work towards achieving a positive working environment for all Victorians.

The Minister for Industrial Relations is also responsible for the following DPC portfolio entities:

• Labour Hire Authority
• Portable Long Service Authority.

In addition to his DPC responsibilities, Mr Pallas is the Treasurer, Minister for Economic Development and the Minister for Coordination of Treasury and Finance COVID‑19.

Contact details

1 Treasury Place
East Melbourne VIC 3002
Email: tim.pallas@parliament.vic.gov.au
Website: www.timpallas.com.au

Minister for Women and Minister for Aboriginal Affairs - Gabrielle Williams MP

Minister Williams oversees the Women and Aboriginal Affairs portfolios with the support and advice of DPC. DPC also supports the Minister’s Prevention of Family Violence portfolio, in conjunction with the Department of Health and Human Services.

As part of the Women’s portfolio, the Minister supports gender equality and women leadership through DPC’s Office for Women.

In the Aboriginal Affairs portfolio, Minister Williams has oversight of Aboriginal Victoria to strengthen communities and engagement, self-determination and treaty, cultural heritage management and protection.

Minister Williams is also responsible for the following DPC portfolio entities:

• Respect Victoria
• Queen Victoria Women’s Centre Trust
• Victorian Aboriginal Heritage Council.

Contact details

50 Lonsdale Street
Melbourne VIC 3000
Email: gabrielle.williams@parliament.vic.gov.au
Website: www.gabriellewilliams.com.au

Minister for Equality - Martin Foley MP

Minister Foley oversees the Equality portfolio, with the assistance of DPC, to promote equality and inclusion for LGBTIQ Victorians. Minister Foley is supported by the Victorian Commissioner for LGBTIQ+ communities and the Victorian LGBTIQ Taskforce.

In addition to his DPC responsibilities, Mr Foley is the Minister for Mental Health& and Minister for Creative Industries.

Contact details

50 Lonsdale Street
Melbourne VIC 3000
Email: martin.foley@parliament.vic.gov.au
Website: www.martinfoley.com.au

Minister for Multicultural Affairs and Minister for Youth - The Hon Ros Spence MP

As Minister for Multicultural Affairs, Minister Spence works to celebrate our multicultural society and to promote the inclusion of all Victorians in the social and economic life of our state.

As part of this portfolio, Minister Spence is responsible for the following DPC portfolio entities:

• Victorian Multicultural Commission
• VITS LanguageLoop.

Minister Spence also leads the government’s Youth portfolio to deliver youth programs and services.

In addition to her DPC responsibilities, Ms Spence is the Minister for Community Sport.

Contact details

2 Treasury Place
East Melbourne VIC 3002
Email: ros.spence@parliament.vic.gov.au
Website: www.rosspence.com.au

Minister for Veterans - The Hon Shaun Leane MP

Minister Leane is Victoria’s Minister for Veterans. With support from DPC, the Minister oversees the Veterans portfolio to honour the contribution of the ex-service community and support service organisations to deliver programs for veterans and their families.

Minister Leane is also responsible for the following DPC portfolio entities:

• Shrine of Remembrance
• Victorian Veterans Council.

In addition to his DPC responsibilities, Mr Leane is the Minister for Local Government and Minister for Suburban Development.

Contact details

121 Exhibition Street
Melbourne VIC 3000
Email: OfficeMinLeane@ecodev.vic.gov.au
Website: www.shaunleanemp.com.au

Other officials

Mary-Anne Thomas MP, Cabinet Secretary

DPC’s Cabinet Office supports the Cabinet Secretary for the operations of the Cabinet process and supports the Cabinet Secretary in her role.

Contact details

Email: mary-anne.thomas@parliament.vic.gov.au
Website: www.mary-annethomas.com.au

Steve Dimopoulos MP, Parliamentary Secretary to the Premier

Mr Dimopoulos assists the Premier with his portfolio responsibilities.

Contact details

Email: steve.dimopoulos@parliament.vic.gov.au
Website: www.stevedimopoulos.com.au

VPS missions during the coronavirus (COVID-19) pandemic

From April 2020 the most senior levels of the Victorian public service were structured to focus on a small number of core missions to help respond to the coronavirus (COVID-19) crisis, and to prepare for the recovery and post-crisis restoration of Victoria.

Departmental Secretaries have been appointed as Missions Leads by the Premier, who are responsible for planning and delivering the missions. Mission Leads engage with the Crisis Council of Cabinet (CCC) Coordinating Ministers and support the CCC as the structure’s core decision-making forum.

A Mission Coordination Committee, chaired by the Secretary of DPC, was also established as the key officials’ forum to help deliver the missions, reporting to the CCC. This mission structure has allowed the VPS to effectively focus activity, share resources and coordinate coronavirus (COVID-19) responses across departments.

From June 2020, the initial eight public service missions were consolidated into six key missions, to support a more focused effort on public health response and resilience, and to help deliver the deferred 2020/21 Victorian Budget. These six key missions are:

Two enabling programs of work were also established to guide the state’s response to the coronavirus (COVID-19) pandemic, and to support the six missions:

As at 30 June 2019:

The Secretary is Chris Eccles AO, who leads the department comprised of 5 groups and its associated entities and agencies.

Department of Premier and Cabinet

Secretary, Chris Eccles AO

Office of the Secretary

Mission Facilitation Office

Executive Director, Sam Trobe

Mission Secretariat

Executive Director, Jane Gardam

Governance Policy and Coordination

Deputy Secretary, Jeremi Moule

Cabinet Office

Acting Executive Director, Rachel Cowling

Corporate Services

Executive Director, Andrew Campbell

Digital Design and Innovation

Executive Director, Jithma Beneragama

Digital Strategy and Transformation

Executive Director, Lisa Tepper

Governance

Executive Director, Vicky Hudson

Public Sector Reform

Executive Director, Sam Hannah-Rankin

Strategic Communication, Engagement and Protocol

Executive Director, Genevieve Dolan

Victorian Centre for Data Insights

Chief Data Officer, Julian Hebden

Fairer Victoria

Deputy Secretary, Brigid Monagle

Equality and Youth, Multicultural Affairs

Executive Director, John Batho

Office for Women, Veterans

Executive Director, Vacant

Social Policy

Deputy Secretary, Kate Houghton

Aboriginal Victoria

Executive Director, Tim Kanoa

Health and Human Services, Family Violence, Mental Health Royal Commission Coordination

Executive Director, Nicola Quin

Aboriginal Affairs Policy, Treaty

Executive Director, Elly Patira

Education, Justice, Community Security and Emergency Management

Executive Directors, Penny Croser and Rebecca Jarvis

Economic Policy and State Productivity

Deputy Secretary, Tim Ada

Economic Development and International

Executive Director, Helen Stitt

Economic Strategy

Executive Director, Connie Crisafi

Energy Resources and Environment

Executive Director, Matt Minchin

Infrastructure Planning and Major Projects

Executive Director, Chris Miller

Office of the General Counsel

General Counsel, Toby Hemming

Assistant General Counsel, Elsie Loh

Director, Jonathan Ciullo

Jobs and Skills Exchange

Deputy Secretary, Elizabeth Langdon

Industrial Relations Victoria

Deputy Secretary, Matt O’Connor

Service Systems Reform

Deputy Secretary, Lill Healy

Administrative offices

• Bushfire Recovery Victoria
• Office of the Chief Parliamentary Counsel
• Office of the Governor
• Office of the Victorian Government Architect
• Public Record Office Victoria
• Service Victoria

Changes to the department over 2019–20

On 1 July 2019, following machinery of government changes, the portfolio agency Respect Victoria transferred to DPC from the Department of Health and Human Services.

On 8 January 2020, Bushfire Recovery Victoria was established as a new permanent administrative office within DPC. Bushfire Recovery Victoria’s focus is on the needs of Victorian communities following the devastating Victorian bushfires and is working closely with residents to ensure rehabilitation projects are both locally driven and delivered.

Machinery of government changes effective 1 May 2020 saw the following independent offices, and public sector integrity functions transfer from DPC to the Department of Justice and Community Safety: Independent Broad-based Anti-corruption Commission; Local Government Inspectorate; Office of the Public Interest Monitor; Office of the Victorian Information Commissioner; Victorian Inspectorate; and the Victorian Ombudsman.

Also, on 1 May 2020, the policy and coordination functions of Infrastructure Victoria and the Parliamentary Budget Officer were transferred from DPC to the Department of Treasury and Finance together with the coordination functions for the Victorian Auditor-General’s Office.

Our groups

DPC consists of eight groups:

• Economic Policy and State Productivity
• Fairer Victoria
• Governance Policy and Coordination
• Industrial Relations Victoria
• Jobs and Skills Exchange
• Office of the General Counsel
• Service Systems Reform
• Social Policy.

Economic Policy and State Productivity

The Economic Policy and State Productivity group works to support the government to achieve its objectives related to economic recovery and development, fiscal sustainability, regional and local government outcomes, international engagement, infrastructure, planning and priority precincts, transport, energy, agriculture, resources and the environment. The group works in collaboration with relevant departments and agencies to ensure a coordinated whole of government approach to policy and projects in these areas.

Fairer Victoria

Established on 1 January 2019, the Fairer Victoria group is responsible for advising the Premier, Cabinet and the ministers for Multicultural Affairs, Women, Youth, Equality and Veterans on policy and strategy aimed at embedding consideration of inclusion, access and social and economic participation for all Victorians in government programs, services and policy reforms. The Fairer Victoria group does this through:

• taking a whole of government approach and collaborating with departments and agencies
• providing high-quality strategic advice to the Premier, Cabinet and ministers
• leading and contributing to best practice initiatives to ensure the needs of Victoria’s diverse communities are considered.

Governance Policy and Coordination

The Governance Policy and Coordination group is responsible for overseeing Cabinet management, digital design and innovation, public sector governance, performance and reform, cybersecurity, government shared services, strategic communications, engagement and protocol, the Victorian Centre for Data Insights and DPC’s corporate services.

The group is also primarily responsible for supporting the Minister for Government Services.

Industrial Relations Victoria

Industrial Relations Victoria is the government’s lead agency for managing public sector industrial relations matters, advising on private sector industrial relations matters and enforcing workplace legislation. It works across government to develop regulatory and other solutions to meet the government’s industrial relations policy aims and oversees public sector enterprise bargaining. It also implements, and ensures compliance with, laws governing long service leave, child employment and independent contractors in transport and forestry.

Industrial Relations Victoria works closely with industry and unions to promote positive industrial relations and to improve the working standards and conditions in Victorian workplaces. It develops government responses and submissions to major workplace relations reviews and inquiries, and regularly lobbies the Commonwealth for improvements to national workplace relations laws.

Jobs and Skills Exchange

The Jobs and Skills Exchange group is responsible for supporting a more agile, flexible and modern public service by providing a whole of government approach to workforce mobility.

During the year, the group’s initial, primary focus was on the VPS to enable an agile, responsive and high-performing workforce.

Office of the General Counsel

The Office of the General Counsel (OGC) is responsible for providing legal and policy advice to the Premier, DPC’s ministers, the DPC Secretary and the department. OGC advises on the full range of legal issues government faces, including in the areas of administrative, constitutional and corporate law. OGC’s policy focus is on issues in the Premier’s, the Special Minister of State’s (until 23 March) and the Minister for Government Services (from 22 June) portfolios, principally in relation to Victoria’s integrity system (until 23 March) and electoral system. OGC also supports DPC in developing legislative and regulatory proposals.

Service Systems Reform

The Service Systems Reform group is responsible for overseeing a program of whole of government policy development and reforms that aim to improve social and economic outcomes, particularly for those Victorians who experience entrenched disadvantage.

The group’s work has a focus on how government can support and enable place-based approaches and people who use social and justice services. As part of a cross-government virtual team, the group also supports the Victorian Secretaries’ Board Service Delivery Reform subgroup. It coordinates and guides conversations with communities about how government can better design its services and support communities to build on their strengths to achieve better social and economic outcomes.

Social Policy

The Social Policy group works to provide better social outcomes for all Victorians by supporting the government to achieve its strategic objectives related to Aboriginal affairs, education, justice, family violence, health and human services, and community security and emergency management. Within Social Policy, a team leads the government’s preparation for treaty and negotiation of its framework in partnership with the First Peoples’ Assembly of Victoria. Aboriginal Victoria also forms part of Social Policy, playing a central role in advancing the Aboriginal self-determination agenda and protecting cultural heritage.

DPC’s senior executives

Secretary

Chris Eccles AO was appointed Secretary of DPC in December 2014. As Secretary, Chris led the department and the Victorian public service in advising the Premier and the Government of Victoria.

From 2011 to 2014, Chris was the Director-General of the New South Wales Department of Premier and Cabinet and from 2009 to 2011 he was Chief Executive of the South Australian Department of the Premier and Cabinet.

In 2017 Chris was made an Officer of the Order of Australia ‘for distinguished service to public administration, to innovative policy development and sound governance, and to the delivery of reform in the areas of training, education and disability’.

Chris holds a Bachelor of Arts and a Bachelor of Laws from the Australian National University.

Deputy Secretary, Economic Policy and State Productivity

Tim Ada began in the role of Deputy Secretary, Economic Policy and State Productivity in April 2019.

Previously, Tim was Deputy Secretary of Jobs and Innovation in the Department of Jobs, Precincts and Regions, responsible for the strategic development of key industry sectors, including manufacturing, life sciences and international education and the delivery of telecommunications and employment programs.

Tim has a Bachelor and Master of Agriculture Sciences from the University of Melbourne. He grew up in rural Victoria.

Deputy Secretary, Fairer Victoria

Brigid Monagle was appointed Deputy Secretary of Fairer Victoria in March 2019 and oversees the Equality, Veterans, Multicultural Affairs, Women’s and Youth portfolios.

Brigid has previously worked as an executive director in DPC, leading advice in the areas of Aboriginal affairs policy, including treaty and self-determination, health policy and reform, and inter-governmental strategy.

Brigid holds a Bachelor of Arts (Hons) from the University of Melbourne and a Master of Public Policy from Victoria University of Wellington.

Deputy Secretary, Governance Policy and Coordination

Jeremi Moule was appointed Deputy Secretary, Governance Policy and Coordination in August 2018.

Previously, he was DPC’s Executive Director of Strategic Communication, Engagement and Protocol. Prior to joining DPC Jeremi held the equivalent executive director role at the South Australian Department of the Premier and Cabinet, leading their communication, community engagement and citizen participation agenda.

Jeremi holds a journalism degree from the University of South Australia and is a graduate of the Australian Institute of Company Directors.

Deputy Secretary, Industrial Relations Victoria

Matt O’Connor was appointed Deputy Secretary, Industrial Relations Victoria in April 2015.

Matt has worked in the Victorian Government since 2003. He has overseen the development of industrial relations legislative and policy reforms, including wage theft, labour hire, long service leave and public sector employment protections. Matt has steered the Victorian Government’s public sector industrial relations strategy for several years and, more recently, played a pivotal role in the successful conclusion of agreements covering public transport. He has led the government’s initiation of various legal proceedings in the Fair Work Commission to protect the supply of essential services.

Matt provides strategic input on a range of whole of government industrial relations matters. He has also represented the Victorian Government in consultations with the Commonwealth Government on federal industrial relations legislative proposals, including the Fair Work Act 2009.

Deputy Secretary, Jobs and Skills Exchange

Elizabeth Langdon was appointed Deputy Secretary for the Jobs and Skills Exchange in June 2019. Before this, Elizabeth was Deputy Commissioner of the Victorian Public Service Commission, following a period as Acting Victorian Public Sector Commissioner.

Elizabeth joined the VPS in 2005, working in DPC, the Department of Health, and the Department of Health and Human Services, where she held the position of Deputy Secretary, People, Capability and Oversight. Elizabeth has also worked at the Harvard School of Public Health, the Sydney Organising Committee for the Olympic Games (SOCOG), Melbourne University Private and the United Nations in both Geneva and New York. Elizabeth has a Bachelor of Arts from the University of Melbourne, a Master of Politics from Université Pierre Mendès France, and is an Australia and New Zealand School of Government Executive Fellow.

General Counsel

Toby Hemming was appointed General Counsel in May 2018.

Toby has significant experience in the Victorian public sector, having held senior positions in organisations including the County Court of Victoria, the Victorian Managed Insurance Authority and the Emergency Services Telecommunications Authority.

Toby holds degrees in the areas of law, arts and corporate governance. He is also a graduate of the Australian Institute of Company Directors and has completed Executive Fellows programs at Harvard University’s Kennedy School of Government, and the Australia and New Zealand School of Government.

Deputy Secretary, Service Systems Reform

Lill Healy was appointed Deputy Secretary, Service Systems Reform in June 2019. Her group is responsible for working in collaboration with other departments to support the design and delivery of reforms that address issues of complexity and disadvantage with a focus on place-based initiatives.

Lill was previously Deputy Secretary of Inclusion at the Department of Jobs, Precincts and Regions. Before that, Lill held a variety of senior leadership roles in the VPS and across the private and community sectors.

Deputy Secretary, Social Policy

Kate Houghton was appointed Deputy Secretary of Social Policy in November 2018.

Kate has led many teams across a variety of portfolios within the VPS. Her most recent role was as Deputy Secretary of Police and Crime Prevention at the then Department of Justice and Regulation. Kate spent many years working within the natural resources and environment portfolio. She led the Water and Catchments group as Deputy Secretary and the Environment Policy Division as Executive Director.

Kate has an honours degree in economics and a Master of Environment. Kate is an Institute of Public Administration Australia Fellow.

Administrative offices

Administrative offices are established and abolished through orders under section 11 of the Public Administration Act, and each is established in relation to a department.

The following six administrative offices have been established in relation to DPC.

Bushfire Recovery Victoria

Bushfire Recovery Victoria (BRV) was established in January 2020 as a permanent and dedicated recovery agency. BRV is responsible for working directly with local communities affected by the devastating Victorian bushfires, advising the Victorian Government, leading recovery planning and coordinating efforts. BRV is wholly focused on the needs of Victorian communities, working closely with locals to ensure rehabilitation and recovery projects are both driven and delivered locally.

Office of the Chief Parliamentary Counsel

The Office of the Chief Parliamentary Counsel transforms policy into legislation and advises the government on its legislative program. The office is responsible for ensuring up-to-date public access to authoritative Victorian legislation. The Chief Parliamentary Counsel is also the Government Printer for Victoria, responsible for printing Victorian legislation.

Office of the Governor

The Office of the Governor provides support to the Governor of Victoria and her spouse in carrying out all aspects of their official duties for the benefit of the Victorian community and maintains Government House and grounds as a unique heritage community asset. The Governor’s role includes constitutional and ceremonial duties, community and international engagement as well as official municipal and regional visits.

Office of the Victorian Government Architect

The Office of the Victorian Government Architect (OVGA) provides leadership and independent advice to government about architecture and urban design. OVGA puts quality of design at the centre of all conversations about the shape, nature and function of our cities, buildings and landscapes. OVGA advocates for an approach founded in a deep understanding and respect for people and place. OVGA aims to ensure Victoria is a place that our community is proud to call home.

Public Record Office Victoria

The Public Record Office Victoria (PROV) maintains the archives of the State Government of Victoria, holding 100 kilometres of records dating from the mid-1830s to today. PROV manages these for use by the government and people of Victoria. PROV’s collection contains records of decisions, events, people and places that have shaped the history of Victoria.

Service Victoria

Service Victoria is a whole of government service capability created to improve the way government transactions are delivered to Victorians and to deliver a more effective customer experience. Service Victoria brings together the most popular digital transactions in one place, making it simpler, easier and faster for Victorians.

Service Victoria is responsible for implementing the Service Victoria Act 2018 and provides customer service and identity verification functions.

Other entities

DPC supports the Victorian Public Sector Commission and the following special bodies and public entities in performing their functions and responsibilities.

DPC also works with a range of ministerial advisory bodies across our portfolio areas of responsibility.

Special bodies

Special bodies are defined in section 6 of the Public Administration Act and created under separate legislation:

• Electoral Boundaries Commission
• Victorian Electoral Commission
• Victorian Independent Remuneration Tribunal.

Public entities

Public entities include statutory authorities, state-owned enterprises, state-owned corporations and formally constituted advisory boards that perform functions outside of the public service:

• Labour Hire Authority
• Portable Long Service Authority
• Queen Victoria Women’s Centre Trust
• Respect Victoria
• Shrine of Remembrance
• Victorian Aboriginal Heritage Council
• Victorian Multicultural Commission
• Victorian Veterans Council
• VITS LanguageLoop

Five-year financial summary

Key financial indicators from 2015–16 to 2019–20

The above table shows a summary of key financial indicators for DPC.

Notes:

[1] The increase in DPC’s 2019–20 income and expenditure is mainly due to bushfire recovery activities and responses to the coronavirus (COVID-19) pandemic. DPC’s assets decreased due to reductions in financial assets, from the use of funding received in prior financial years, and from machinery of government decisions where functions were transferred from DPC.

[2] The increase in DPC’s 2018–19 income and expenditure is mainly due to new government initiatives delivered during the year, including Pick My Project, Multicultural Community Infrastructure Programs and the Victorian Jobs and Investment Fund. Separately, there was increased income and expenditure due to the 2018 State Election. Assets increased due to investments in modernising DPC’s office spaces and further investments in Service Victoria’s digital services platform. DPC’s liabilities increased as a result of higher payables and employee liabilities due to growth and machinery of government transfers into the department.

[3] The increase in income from transactions and an increase in expenses from transactions in 2017–18 relate to new government initiatives carried out during the year. Separately, the increase in total assets is mainly due to building Service Victoria’s digital services platform.

[4] The full year impact of significant new initiatives affected DPC’s operations in 2016–17. Asset balances were affected by asset revaluations during the year.

[5] Machinery of government transfers affected DPC’s operations and balances in 2015–16. Asset balances were affected by asset revaluations during the year.

This section reports on the outcomes the Department of Premier and Cabinet (DPC) achieved during the year against key initiatives and departmental objectives.

This section also reports on DPC’s actions to address the urgent needs resulting from the Victorian bushfires and the coronavirus (COVID-19) pandemic.

Departmental output changes during 2019–20

Machinery of government changes from 1 May 2020 resulted in the transfer of certain public entities and their associated outputs.

• Integrity bodies became the responsibility of the Attorney-General, with the Public sector integrity output transferring from DPC to the Department of Justice and Community Safety (DJCS): Independent Broad-based Anti-corruption Commission, Local Government Inspectorate, Office of the Public Interest Monitor, Office of the Victorian Information Commissioner, Victorian Inspectorate and the Victorian Ombudsman.
• Responsibility for Infrastructure Victoria and associated output transferred from DPC to the Department of Treasury and Finance (DTF).

Departmental objectives, indicators and linked outputs

DPC’s medium-term objectives, associated indicators and linked outputs as set out in the 2019/20 Victorian Budget Paper No. 3 — Service Delivery are shown below.

Objective: Strong policy outcomes

Indicators

• DPC’s policy advice and its support for Cabinet, committee members and the Executive Council are valued and inform decision-making
• Quality infrastructure drives economic growth activity in Victoria
• The development and effective use of technology supports productivity and competitiveness

Outputs

• Government-wide leadership, reform and implementation
• Strategic advice and government support
• Digital government and communications
• Office of the Victorian Government Architect
• Industrial relations

Objective: Engaged citizens

Indicators

Increased opportunities for participation by members of the Victorian community in the social, cultural, economic and democratic life of Victoria

Outputs

• Aboriginal policy, strengthening Aboriginal cultural heritage and communities
• Multicultural affairs policy and programs
• Support to veterans in Victoria
• LGBTIQ equality policy and programs
• Women’s policy
• Youth

Objective: Professional public administration

Indicators

A values-driven, high-integrity public service characterised by employees who collaborate across government and in partnership with the community and other sectors, and who use evidence to support decisions that drive the progress of Victoria socially and economically

Outputs

• Advice and support to the Governor
• Chief Parliamentary Counsel services
• Management of Victoria’s public records
• Public sector integrity
• Public administration advice and support
• State electoral roll and electoral events

Objective: High-performing DPC

DPC’s fourth objective — High-performing DPC — underpins all work of the department and therefore has no specific outputs or funding.

This objective pursues policy, service and administration excellence and reform. It leads the public sector response to significant state issues, policy challenges and projects. It supports the effective administration of government and the delivery of policy and projects that enable increased productivity and competitiveness in Victoria.

DPC’s outcomes on the following key initiatives have helped us achieve the Strong policy outcomes strategic objective.

Supporting the government’s response to the Victorian bushfires

In 2019–20, DPC delivered high-level support and information to key decision-makers during emergencies. This included providing high-quality and timely strategic advice and updates to the Premier and ministers on the impact and consequences of the January 2020 bushfires.

DPC played an active role in coordinating emergency assistance measures and worked collaboratively with partner agencies to help activate and implement relief and recovery measures for the Victorian bushfires including establishing Bushfire Recovery Victoria.

DPC has continued to engage with the Commonwealth to ensure community relief and recovery needs are met through Disaster Recovery Funding Arrangements.

Bushfire Recovery Victoria has overseen the whole of government delivery of key recovery initiatives including:

• the clean-up of buildings destroyed or damaged by the bushfires free of charge for property owners, with more than 1,300 structures cleared out
• providing emergency and short-term accommodation for individuals and families whose primary place of residence became unhabitable due to the fires
• financial assistance through releasing over $17 million to more than 2,600 small businesses in $10,000 small business grants and over $23 million in $75,000 primary producer grants
• creating more than 600 local jobs to support recovery activities such as clean-up and short-term accommodation
• helping to establish nine Community Recovery Committees to support fire-affected communities and supporting them to develop their own recovery objectives.

Supporting the government’s response to the coronavirus (COVID-19) pandemic

DPC played a key role in supporting government decision-making in response to the coronavirus (COVID-19) pandemic. This included supporting government decision-making at National Cabinet and the Crisis Council of Cabinet by working across government to coordinate advice on policies to help manage the coronavirus (COVID-19) response. DPC, along with the Department of Health and Human Services (DHHS) and DTF, provided support to develop a national partnership agreement on coronavirus (COVID-19) to formalise the Commonwealth commitment to the response and bringing together the private and public hospital systems to work as one.

DPC has also worked with the Department of Education and Training (DET) and DHHS to support the viability of and continue to provide education services during the pandemic, including early childhood education and care, kindergartens, schools and TAFEs. This has included ensuring that vulnerable children and young people, as well as the children of key workforces, have been able to access schools and early childhood services throughout the pandemic.

Establishing the COVID-19 Aboriginal Community Taskforce

The Joint COVID-19 Aboriginal Community Taskforce has been established to support a comprehensive, coordinated and culturally safe response to coronavirus (COVID-19) impacts on Aboriginal Victorians. It identifies emerging issues, risks, gaps and opportunities for Aboriginal communities and sectors as a result of the coronavirus (COVID-19) pandemic.

Through providing experience and local and sector insight, taskforce members have been integral in identifying coronavirus (COVID-19) impacts and developing culturally appropriate responses within Aboriginal communities.

The taskforce has helped coordinate both proactive and emergency responses to the ongoing impacts of coronavirus (COVID-19) on Victoria’s Aboriginal communities. These responses include a $23 million whole of government Aboriginal-specific coronavirus (COVID-19) funding package, including a $10 million coronavirus (COVID-19) Aboriginal Community Response and Recovery Fund, providing support for Aboriginal school students during the pandemic, culturally effective coronavirus (COVID-19) communications, securing food supplies to a number of Aboriginal communities during the pandemic and ensuring culturally safe contact tracing.

Building safer and more resilient Victorian communities

DPC has continued to progress and implement key legislative reforms seeking to build safer and more resilient communities including fire services reform and emergency management planning reforms.

DPC led activities to enhance national and state crisis preparedness, including developing and delivering discussion exercises for the state’s peak strategic decision-making bodies in their response to a large-scale emergency.

DPC, in partnership with Emergency Management Victoria, continues to work with other jurisdictions through the Australia–New Zealand Emergency Management Committee to strengthen disaster resilience by providing strategic leadership on emergency management policy and related capability and capacity development activities including implementing the National Disaster Risk Reduction Framework.

In 2019–20, DPC supported Victorian and national counterterrorism reforms through the Council of Australian Governments, the Australia–New Zealand Counter-Terrorism Committee and work to implement the recommendations of the Expert Panel on Terrorism and Violent Extremism Prevention and Response Powers.

Supporting a more secure youth justice system

In 2019–20, DPC supported the release of the Youth Justice Strategic Plan 2020–2030, which sets out a path to reduce youth offending, boost workforce support and safety, and deliver positive outcomes for young people. DPC also continued to support the government to modernise Victoria’s youth justice system via the new youth justice centre in Cherry Creek. This included providing strategic advice on a revised design that will deliver a more specialised facility, better promote staff safety and support rehabilitation of young people in the youth justice system.

Supporting the Victorian Government’s engagement with the Royal Commission into Victoria’s Mental Health System

DPC continues to support the government’s engagement with the Royal Commission into Victoria’s Mental Health System in partnership with DHHS and Mental Health Reform Victoria.

The royal commission released its interim report in November 2019, which contained nine recommendations to government. The final report will be delivered to government in February 2021.

DPC has continued to lead engagement with the Commonwealth, including through supporting development of the National Mental Health and Wellbeing Pandemic Response Plan. The plan was endorsed by National Cabinet in May 2020 and identifies 10 priorities to guide and inform decision-making, and to ensure that responses are consistent and connected to a national mental health system. In addition, DPC has led work with the Commonwealth to ensure a joined-up approach to funding for suicide prevention activities in Victoria.

Reform and oversight of the recommendations made by the Royal Commission into Family Violence

DPC continues to coordinate and oversee implementation of the government’s family violence reform agenda. As at 30 June 2020, 154 Royal Commission into Family Violence recommendations have been implemented, with 73 recommendations remaining in progress. DPC continued to report to the Victorian Secretaries’ Board’s Subcommittee on Family Violence Reform about key reform projects and on the progress of the royal commission’s 227 recommendations before the coronavirus (COVID-19) related governance changes. DPC continues to chair an interdepartmental committee on family violence reform, supporting the subcommittee in its role in providing oversight across the reform. DPC’s strong governance lead in family violence was particularly important during the initial stages of Victoria’s coronavirus (COVID-19) pandemic response, enabling cross-government collaboration through the interdepartmental committee on key family violence response activities and emerging issues.

Nearly four years into a 10-year plan to rebuild the family violence system, the implementation of more than two-thirds of the recommendations demonstrates the progress towards the reform of the family violence system; however, there remains more work to do to deliver on desired outcomes and to learn from the progress to date.

Release of the Family Violence Data Collection Framework

DPC led the development and release of the Family Violence Data Collection Framework, responding to the Royal Commission into Family Violence finding that limited data about the experience of Victorians affected by family violence contributes to poor outcomes. The framework includes:

• a common set of family violence and demographic data items
• definitions and standards
• advice on reporting practices that will make information on family violence more useful.

The framework provides a consistent approach for people working in the sector to collect information, including from the following priority communities: Aboriginal communities, LGBTIQ communities, people with disabilities, multicultural communities, children, young people and older people.

Supporting inclusion for all Victorians

The government is committed to building a state that is inclusive for all Victorians and celebrates the diversity and resilience of our LGBTIQ community. In June 2020, the government began public consultation with the LGBTIQ community and organisations that support LGBTIQ people
on the first whole of government LGBTIQ Strategy. The LGBTIQ Strategy will be guided by the expert advice of the LGBTIQ Taskforce and its working groups and will provide the government with a road map and direction on LGBTIQ equality for years to come.

Providing economic advice on current and future economic challenges and opportunities

In 2019–20, DPC continued to work closely with DTF and other departments to support the government’s economic growth objectives. This included advising on taxation, fiscal strategy, workplace safety, local government, regulation, private-sector industrial relations, consumer and gambling policy and transport policy and infrastructure delivery. DPC also supported the Premier in the annual Budget process and coordinated the undertaking of the Base and Efficiency Reviews across all departments.

Since the onset of the coronavirus (COVID-19) pandemic, DPC has actively supported Victorian Government departments to identify and develop measures to assist businesses and individuals.

Supporting industry capability, capacity and growth

In 2019–20, DPC supported the Premier and relevant departments to:

• develop policies and programs to enhance and support industry development, as a key driver of Victoria’s economic performance
• respond to the economic impacts of significant events including the drought, the Victorian bushfires and the coronavirus (COVID-19) pandemic
• position Victoria for longer term recovery through targeted policy advice and administration of the Victorian Jobs and Investment Fund.

In 2019–20, the Victorian Jobs and Investment Fund helped to secure new film projects for Victoria and new private sector investments in regional and metropolitan areas, and supported numerous bushfire recovery projects in affected regional areas.

Supporting the rollout of three-year-old kindergarten

During 2019–20, DPC worked to support DET to prepare for the first stage of implementing funded three-year-old kindergarten, beginning in six local government areas in 2020. This has included supporting government consideration of key workforce, infrastructure and change management approaches to deliver on the commitment to provide 15 hours of high-quality funded kindergarten programs to all three-year-old Victorians over the next 10 years.

Securing a new national health agreement

Throughout 2019–20, DPC, together with DHHS and DTF, continued to advance Victoria’s interests through negotiating the new National Health Reform Agreement, which came into effect on 1 July 2020.

Supporting coordination of Victoria’s public health strategy

In August 2019, the Victorian Government released the third Public Health and Wellbeing Plan, the overarching strategy to achieve our vision of all Victorians enjoying the highest attainable standards of health, wellbeing and participation at every age. Throughout 2019–20, DPC has helped coordinate this strategy across government to ensure that a whole of government approach is taken to tackling some of our most complex public health challenges.

Leading Victoria’s international engagement

DPC partnered with several organisations to develop Asia-focused capabilities within the state, including:

• collaborating with Asia Society Australia to utilise its expertise and extensive networks to enhance Victoria’s connections to, engagement with and knowledge of Asia
• continuing to work with the Australia India Institute to deliver a program that supports the objectives of Victoria’s India Strategy, including by building knowledge, understanding and connections between Victoria and India
• working with the Australia and New Zealand School of Government to initiate the Victoria India Government Exchange Program, including leading a delegation of senior Victorian public service (VPS) executives to Karnataka state in November 2019 to strengthen government-to-government links, and share knowledge and best practice.

Supporting delivery of the government’s infrastructure program

DPC continued its work in 2019–20 with the Department of Transport (DoT) and the Major Transport Infrastructure Authority on many of the major transport projects in construction, including the Level Crossing Removal Project, Metro Tunnel Project, West Gate Tunnel Project, North East Link Project and multiple road upgrades. The Victorian Government has 119 major road and rail projects being constructed or planned for at an investment of $70 billion and the creation of more than 15,000 jobs.

DPC has also been a key participant in establishing and supporting the operation of the Suburban Rail Loop Authority in progressing the Suburban Rail Loop project.

Cybersecurity strategy for better detection, prevention and response to cyber attacks

Throughout 2019–20, DPC has led implementation of the government’s Cyber Security Strategy 2016–2020 to improve the cyber resilience and governance in government and major infrastructure and service providers. This work included:

• supporting more than 240 organisations on more than 1,000 cyber incidents through the Victorian Government Cyber Incident Response Service
• research and communication to increase insight into the level of cyber incidents affecting government and critical infrastructure
• developing an integrated and federated Security Operations Centre model and implementation plan
• finalising implementation of cyber emergency governance arrangements (including creating a cybersecurity group that ultimately reports to the State Crisis and Resilience Committee)
• improving procurement mechanisms to allow government to more easily access private sector cyber services
• publishing cyber incident management guidance for Victorian public sector organisations.

Prioritising open and efficient IT spend and improving government digital processes

DPC continued to prioritise open information, efficient digital services, strong modern systems and technology and increased staff capability. In 2019–20, DPC has:

• continued to support transparent government ICT project spend through coordinating and publishing the Victorian Government ICT dashboard (which shows the status of government ICT projects with a total value of $1 million or more)
• worked with all parts of government to improve the success rate of IT-enabled business projects through delivering capability uplift programs
• completed a review and made recommendations on how data is collected, managed and used as part of legislative and regulatory performance reporting
• developed the Victorian Centre for Data Insights (VCDI) Strategy, which sets out a plan for how VCDI will help VPS agencies derive value and insights from data
• developed the Ethical Analytics Toolkit to provide ethical guidance to teams conducting analytics projects across the VPS.

Coordinating service system reform

The Service Systems Reform group is coordinating a whole of government initiative to build the Victorian Government’s knowledge and understanding of place-based approaches and improve our ability to partner with communities to tackle complex challenges at the local level. In its first 12 months, the Working Together in Place initiative has established a strong reputation across government and with external stakeholders for modelling the changes needed within government.

The project has:

• delivered a policy framework, outlining the potential for greater place-based and place-focused work within the government and a policy agenda to design responses to the known barriers and opportunities
• established seven Collaboration Sites to demonstrate new ways of working by collaborating with Regional Executives across government to support community change and aspiration
• implemented a new model for whole of government collaboration and learning, working in partnership across six departments
• identified four key reform areas to improve how government partners with communities through place-based initiatives: Structures and accountability; Funding and resourcing; Information and evidence; and Culture, capability and leadership
• developed an active learning capability across the whole of government team that will enable place-based reforms to be tested, monitored and adapted to maximise impact
• established partnerships with the Commonwealth and local governments to work together on place-based change and to share learning and evidence.

The initiative was put on hold in April 2020 to allow project resources to be diverted to support the coronavirus (COVID-19) response. It is anticipated that a restart of Working Together In Place will play an important role in Victoria’s recovery by demonstrating how place-based approaches can be used to effectively work with communities to ensure that the social and economic recovery from coronavirus (COVID-19) is both effectively coordinated and tailored to local needs and circumstances — and that actions are designed and led locally by communities.

Designing and establishing new ways of working with communities

In 2019–20, the Public Sector Innovation branch contributed to critical DPC work areas, including supporting the launch of the Jobs and Skills Exchange, responding to the coronavirus (COVID-19) pandemic and supporting the VPS to move to a remote working model.

In July 2019, key members of the Public Sector Innovation team formed the core of the new Jobs and Skills Exchange initiative. Over four months, Public Sector Innovation team members helped launch the Jobs and Skills Exchange’s job-matching platform and established the working model for the new initiative.

The Behavioural Insights Unit fosters innovation by supporting the VPS to understand and apply behavioural interventions. In 2019–20, the DPC Behavioural Insights Unit delivered 10 behavioural insights workshops attended by staff from across the VPS and supported 45 behavioural projects from across the VPS. With the onset of the coronavirus (COVID-19) pandemic, the Behavioural Insights Unit provided behavioural science–informed advice to VPS departments on their communication with Victorians, surveyed the VPS on their experiences with remote working and supported DHHS with embedded specialists across a range of policy areas.

Throughout 2019–20, the Innovation Network’s combination of online learning materials, peer communities and learning events addressed demand and anticipated future needs. The Innovation Network supported the VPS’s transition to a remote working model. The Innovation Network quickly launched a Remote Working Hub in March 2020, seamlessly transitioning to remote delivery of its learning events. The Innovation Network membership continued to perform strongly throughout the year, growing from 9,500 to almost 18,000 accounts, demonstrating the demand for the network’s training materials and events.

In March 2020, Public Sector Innovation branch’s Innovation Network team staged the second annual VPS Innovation Immersion event. The event again brought together more than 500 participants from across the public service to attend practical workshops and keynote speeches to build innovation skills across the VPS.

The trial of the Agile Delivery Office also concluded in 2019–20, and its functions were absorbed back into the core responsibility of the Public Sector Innovation branch. During its time as a discrete operating unit, the Agile Delivery Office provided agile coaching and customised advice to 44 project teams and delivered training and support to 588 members of the VPS.

The Public Sector Innovation Fund has committed its $11 million allocation and is now closed to new funding applications. In line with a recent independent impact review, the fund is continuing to achieve significant success in its objective to drive innovation across the VPS by partnering with departments and agencies.

In 2019–20, the Public Sector Innovation Fund continued to manage its portfolio of grant projects, notably including funding to help establish the Jobs and Skills Exchange and ongoing participation in the design and delivery of the CivVic Labs government start-up accelerator.

CivVic Labs completed its first and second rounds during 2019–20. To date, 21 start-ups have worked on solutions to 10 challenges from departments and agencies. Interim evaluations indicate that CivVic Labs is helping government challenge owners develop more innovative solutions and enabling start-ups to better work with government and grow their businesses. A third round of six new government challenges was launched in April 2020.

Data insights to enable better decisions and outcomes powered by analytics

In 2019–20, the VCDI partnered with departments and agencies across government to help deliver better policies, programs, services and outcomes for Victorians through improved use of data and advanced analytics. VCDI’s team of technologists, data management experts and analysts devoted significant focus to helping with response and recovery efforts for the coronavirus (COVID-19) pandemic and the Victorian bushfires.

Many other cross-VPS collaborations also saw VCDI provide technical and strategic advice to improve health, social, economic and environmental outcomes for Victorians while reducing waste, delivering savings and building data expertise across the VPS in keeping with the goals of the VCDI Strategy.

Service Victoria

During 2019–20, Service Victoria attracted 1.04 million visits to the online service platform, an 84 per cent growth rate on last year’s customer numbers, while maintaining the high satisfaction rate of 96 per cent. The time savings for customers to complete their transactions using Service Victoria was valued at more than $4.5 million.

An additional 17 transactions are using the platform, including applications for digital end-to-end new Working with Children Checks and miner’s rights. Digital capabilities, such as identity verification and authentication, are supporting a range of WorkSafe licences and residential tenancy bonds. The mobile app can now be used to share a fishing licence with a fisheries officer and for kangaroo harvesters to scan their tags. New features were released to remove some of the final roadblocks to fully online services such as online identity verification at a Level of Assurance 2, and five new business systems were delivered to enable end-to-end digital administration.

Promoting affordable, reliable and secure energy

In 2019–20, DPC supported the Premier, government departments (including the Department of Environment, Land, Water and Planning (DELWP) and the Department of Jobs, Precincts and Regions (DJPR)), and government entities in delivering on government energy commitments, including:

• overhauling the waste and resource recovery sector through the $300 million Recycling Victoria package
• protecting forests and threatened species for future generations through establishing the Victorian Forestry Plan, which details the phaseout of logging in Victoria’s native forests by 2030
• lifting the moratorium on onshore gas exploration to support an orderly restart of the industry and developing a Bill to enshrine Victoria’s fracking ban in the constitution
• legislating an increased Victorian renewable energy target of 50 per cent by 2030
• releasing the Latrobe Valley Regional Rehabilitation Strategy and establishing the independent Mine Land Rehabilitation Authority to support the transition to safe, stable and sustainable post-mining landforms in Victoria.

Office of the Victorian Government Architect

The OVGA was involved in the following key initiatives and projects in 2019–20.

Future Homes Competition — Delivering on an election commitment to work with Victoria’s architects to prepare exemplar plans for apartment buildings, OVGA worked collaboratively with DELWP to conduct industry and stakeholder consultation in developing the Future Homes design competition for better apartment buildings in established suburbs. Endorsed by the Australian Institute of Architects, Stage One of the competition was successfully launched on 12 March. On 30 March, Minister for Housing Richard Wynne added an incentive, announcing a commitment to construct a demonstration project funded by DHHS and delivered in partnership with DELWP and OVGA. Eight design teams, shortlisted by a multidisciplinary jury, have begun the Stage Two design refinement phase of the competition.

Federation Square Review — In collaboration with DJPR, OVGA led Stream 1: Public Purpose and Built Form Review of Federation Square. Convening a panel of architectural, urban design and other relevant experts, OVGA led the research, analysis and drafting of a report: Federation Square — Principles for Change. The report includes guiding principles, recommended strategies and priority initiatives to inform future enhancement of the square and its surrounds. OVGA’s work included
in-depth consultation with the community, tenants and stakeholders to establish a valuable long-term vision. Collaboration with Stream 2: Financial Base and Governance Investigations enabled inclusion of the panel’s recommendation for processes for good design governance.

Infrastructure portfolio — OVGA’s collaboration with Rail Projects Victoria, Level Crossing Removal Projects, North East Link Project, Major Road Projects Victoria and the West Gate Tunnel Project has continued OVGA’s focus on maintaining quality design throughout all project stages.

OVGA provides expert advice to help guide the design development of these projects and their integration with the places and communities they impact, ensuring the long-term legacy of these city-shaping projects will be delivered. OVGA advocates for multidisciplinary, iterative and collaborative processes that have evolved key aspects of the scope and technical requirements of these major infrastructure projects to support vibrant and engaging additions to our city and its public realm.

OVGA’s contribution to design quality is evident in recently completed projects such as the Reservoir and Carrum train stations. OVGA has collaborated with DoT to develop the Movement and Place Framework, aiming to better align movement functions with the places they serve. Collaborative engagements include developing a range of transport business cases and ‘future thinking’ about a place-based approach to gateway precincts in Melbourne.

Housing — OVGA’s independent expertise is embedded in the evaluation of the Public Housing Renewal Program, which includes the current redevelopment of public housing properties and estates in Brighton, Prahran and Flemington. Our role has been extended to include a review of public and affordable housing projects as part of the economic stimulus program. OVGA is also supporting DELWP to develop streamlined planning mechanisms for public housing land in Braybrook.

Priority precincts — OVGA collaborated with DJPR in providing strategic oversight and design expertise to shape the Sunshine Priority Precinct Roadmap and Footscray Priority Precinct Opportunity Statement. This role builds on the strong cultural heritage and character of these precincts and their surrounds to inform future precinct planning, built form and public realm quality for these emerging economic and social hubs. Recently OVGA has entered into an agreement with the Suburban Rail Loop Authority to help develop principles to achieve a good legacy of ‘places’ in this city-shaping project.

Design review — OVGA’s Victorian Design Review Panel provides independent and authoritative advice to government through structured design review. The panel has reviewed more than 400 significant projects across Victoria. This multidisciplinary panel of built environment experts has been critical in broadening the reach of OVGA design advice, particularly in regional Victoria. In 2019–20, the panel reviewed a broad range of projects and strategic design propositions including individual civic buildings, tourism and major transport infrastructure projects, educational buildings, design guidelines and master plans for priority precincts.

Promoting fair and equitable workplaces

In 2019–20, DPC’s Industrial Relations Victoria (IRV) group provided leadership and support on public sector bargaining matters, including approving 26 final agreements for public sector departments and agencies. IRV successfully completed significant projects for the benefit of workers and workplaces, including the Inquiry into the Victorian On-Demand Workforce and the passage of the Wage Theft Act 2020.

The advent of the coronavirus (COVID-19) pandemic required new initiatives to support Victorian employers and their workforces. IRV has advised government on industrial relations legislative and policy matters during the pandemic, establishing a framework of protections and arrangements for the public sector and participating in consultations with the private sector to manage the dissemination and implementation of public health directions.

Examples of how DPC has promoted fair and equitable workplaces through IRV in 2019–20 include the following.

In the private sector, DPC:

• developed and supported the passage of Australia’s first specific wage theft laws, which will result in a new statutory authority, Wage Inspectorate Victoria
• delivered the Inquiry and Report into the Victorian On-Demand Workforce, which involved an investigation into the conditions of workers in the ‘gig economy’
• worked with DJPR to develop the Fair Jobs Code
• supported the government’s policy responses to coronavirus (COVID-19) directed towards supporting workers and businesses in the private sector
• supported passage and managed the implementation of the Long Service Benefits Portability Act 2018 to provide portable long service benefits in the contract cleaning, security and community services industries
• developed and supported passage and implementation of the Owner Drivers and Forestry Contractors Amendment Act 2019 to help owner-drivers and forestry contractors
• led the government’s participation in Fair Work Commission cases, including the Annual Wage Review and test cases in support of award variations proposed for paid pandemic leave in the health and community sectors
• prepared submissions to numerous Commonwealth Government reviews and inquiries
• advised on addressing the superannuation gap for women and the development of the Gender Equality Act 2020
• supported the Equal Workplaces Advisory Council
• supported the Transport Industry Council and the Forestry Industry Council, including developing the Tip Truck Code of Conduct.

In the public sector, DPC:

• implemented the revised Wages Policy and the Enterprise Bargaining Framework, which focus on the government’s operational and public sector priorities to deliver real benefits for all Victorians
• developed and implemented Guidance Notes and the Industrial Relations Framework for managing the effects of the coronavirus (COVID-19) pandemic in the Victorian public sector
• renegotiated the Victorian Public Service Enterprise Agreement, covering 51 public service employers and approximately 50,000 employees
• oversaw the renegotiation of enterprise agreements for public transport workers, paramedics and sworn police officers
• implemented the Women in Construction Strategy to support attraction, recruitment and retention of women in building and construction
• provided industrial relations support and advice for the government’s building and infrastructure projects
• began a review of casual and fixed-term employment in the public service.

With Wage Inspectorate Victoria, DPC:

• ensured protection of children working in Victoria by administering child employment laws, including assessing and issuing 9,425 child employment permits and undertaking 1,172 child employment investigations
• finalised 105 investigations into breaches of long service leave laws and recovered $379,623 in outstanding long service leave entitlements for employees
• answered 11,139 long service leave and child employment queries through the Inspectorate’s Information Line and responded to more than 1,600 email queries from the public
• began establishing the Inspectorate as a statutory body to enforce the wage theft laws once they come into effect on 1 July 2021
• assumed new regulatory responsibilities under the Owner Drivers and Forestry Contractors Act 2005.

Progress towards achieving the objective

The output performance measures that provide information on DPC’s progress in achieving the ‘Strong policy outcomes’ strategic objective are outlined below.

Objective indicator: DPC’s policy advice and its support for Cabinet, committee members and the Executive Council are valued and inform decision-making

Objective indicator: Quality infrastructure drives economic growth activity in Victoria

Objective indicator: The development and effective use of technology supports productivity and competitiveness

Note: nm = new measure

Further details on DPC’s 2019–20 performance against its output performance measures are covered in the section Performance against output performance measures.

This objective supports and promotes full participation in strong, resilient and vibrant communities. It empowers citizens to participate in policymaking and service design. It ensures a holistic approach to social policy and service delivery.

DPC’s outcomes on the following key initiatives helped us achieve the Engaged citizens strategic objective.

The Victorian Aboriginal Affairs Framework 2018–2023

Throughout 2019–20, DPC has continued to progress whole of government self-determination reforms in line with the Victorian Aboriginal Affairs Framework 2018–2023 (VAAF). The VAAF is the government’s overarching framework for working with Aboriginal Victorians, organisations and the wider community to drive action so all Victorian Aboriginal people, families and communities are healthy, safe, resilient, thriving and living culturally rich lives.

In August 2019, DPC launched the Victorian Government Self-Determination Reform Framework to guide public service action to implement the VAAF, particularly the VAAF’s four self-determination enablers.

Some of the reforms being progressed by DPC include:

• establishment of, in partnership with DJCS, the Stolen Generations Redress Scheme to address the trauma and suffering caused by the forced removal of Aboriginal children from their families and communities
• supporting establishment of a truth and justice process to reckon with past and ongoing injustices perpetrated against Aboriginal Victorians, an historic commitment called for by the Aboriginal community
• progressing the Aboriginal Funding Reform Project to explore ways to move towards pooled, outcomes-based funding for Aboriginal organisations to support greater self-determination and flexibility over funding expenditure.

DPC also developed the annual Victorian Government Aboriginal Affairs Report (VGAAR), which measures whole of government progress against the VAAF and fulfils a Victorian Budget Paper No. 3 commitment for DPC. The first VGAAR under the new VAAF was tabled in parliament in November 2019 and the second annual report will be tabled in late 2020. In addition to measuring progress against the 111 measures, the second report will also include specific information on whole of government progress to enable self-determination. DPC has also been developing an online data dashboard to ensure VGAAR data is more transparent and accessible to the Aboriginal community and organisations.

Advancing treaty with Aboriginal Victorians

Throughout 2019–20, DPC has continued to lead the government’s work to advance the treaty process in Victoria. This work has accelerated since establishing the First Peoples’ Assembly of Victoria in late 2019. The Assembly represents Aboriginal Victorians in the current phase of the treaty process and is working with the government to establish elements necessary to support future treaty negotiations. DPC’s work to advance the treaty in 2019–20 has included:

• supporting the Victorian Treaty Advancement Commission to establish the First Peoples’ Assembly, including successfully holding a statewide election for Aboriginal Victorians
• preparing the government to engage with the Assembly in treaty discussions, including coordinating whole of government participation in advice and decision-making on treaty
• starting discussions with the Assembly to develop and agree on the treaty elements required under the Advancing the Treaty Process with Aboriginal Victorians Act 2018
  — a Treaty Authority, treaty negotiation framework, self-determination fund and dispute resolution process
• continuing the treaty communications strategy to build understanding between Aboriginal and
  non-Aboriginal Victorians and increase public support and engagement for the treaty.

World Heritage Listing: Budj Bim Cultural Landscape

DPC, in partnership with the Gunditj Mirring Traditional Owners Aboriginal Corporation and the Commonwealth Department of the Environment and Energy, completed the nomination dossier for Budj Bim Cultural Landscape to be included on the World Heritage List. In July 2019 Budj Bim became the first Australian World Heritage property inscribed on the list exclusively for its Aboriginal cultural heritage values.

Budj Bim includes evidence of one of the world’s largest and oldest aquaculture systems. Gunditjmara people have used the hydrological systems of the Budj Bim lava flow for the systematic trapping and farming of eels for more than 6,600 years.

DPC worked with the Australian Government to support 12 Gunditjmara Traditional Owners to travel to Azerbaijan for the listing.

Budj Bim experienced a significant increase in visitors immediately following the World Heritage announcement. Accordingly, DPC secured $5 million over four years as part of the 2019–20 Victorian Budget to deliver additional tourism infrastructure at Budj Bim to ensure the area can sustainably accommodate the increased tourism. The additional infrastructure will include new walking paths, signage and multimedia displays, habitats for native bird life and a jetty for visitors to participate in cultural tourism experiences at Tae Rak (Lake Condah).

DPC will continue to work with Gunditj Mirring in delivering the tourism infrastructure at Budj Bim and in supporting the Australian Government to meet its requirements under the World Heritage Convention.

Delivering the Victorian African Communities Action Plan

The Victorian African Communities Action Plan was launched in April 2018 and includes more than 250 actions across six focus areas: business; employment; education; health and wellbeing; inclusion and empowerment; and leadership, cohesion and connection.

In 2019–20, the government has worked alongside African communities and an implementation committee to progress initiatives under the Victorian African Communities Action Plan. This has included:

• funding homework clubs and engaging school community liaison officers to better support students from African backgrounds
• developing and beginning the implementation of leadership development programs to develop the capability of up-and-coming and more established African community leaders
• carrying out the application phase of the Community Innovation Grants to support creative project ideas to effectively engage and support African communities.

Strengthening multicultural affairs and social cohesion

DPC has further strengthened its policy advice and program offerings in multicultural affairs and social cohesion through delivering a range of initiatives focusing on anti-racism and community cohesion. In May 2020, an $11.3 million Multicultural Affairs COVID-19 Response Package was announced to provide a range of support to multicultural communities to help them navigate the coronavirus (COVID-19) pandemic. This included DPC providing funding to directly support community organisations to engage with their communities, build digital capabilities, enhance communication with multicultural communities and support at-risk individuals and groups within the multicultural sector.

In 2019–20, DPC worked to improve community education, awareness and access to rights and reporting avenues in relation to experiences of racism and discrimination, including through partnering with the Victorian Equal Opportunity and Human Rights Commission to deliver the Reducing Racism project. The project seeks to improve reporting of racist incidents. In addition, DPC funded research through the Scanlon Foundation to strengthen evidence and better understand community-based attitudes towards racism. DPC also partnered with the Melbourne Press Club to establish an inaugural Quill award to address racism in the media.

Supporting multicultural and multifaith community groups

Grant programs offer multicultural communities an opportunity to express, share and practise their beliefs and traditions with the wider Victorian community. In 2019–20, DPC continued to offer support to multicultural Victorians through several grant programs:

• The Multicultural Festivals and Events program showcases Victoria’s cultural diversity and allows multicultural communities to celebrate, preserve and share traditions through festivals, events and performances. In 2019–20, DPC supported 837 festivals and events with an allocated budget of $2.23 million. Due to coronavirus (COVID-19) restrictions, around 270 funded festivals and events scheduled to take place between 1 January 2020 to 30 June 2020 were cancelled or postponed. DPC supported organisations to reschedule festivals and events, or to deliver their events in an online format to enable Victorians to continue to celebrate our state’s vibrant cultural diversity.
• The Multicultural Community Infrastructure Fund program helps Victoria’s culturally diverse communities to feel connected with their traditional culture and identity as they participate in and contribute to society. The fund achieves this by helping build, restore and enhance facilities where multicultural communities gather.
• The Multicultural Senior Citizens Organisational Support program ran from 2016–17 to 2018–19 and provided $6.8 million in funding to 840 multicultural seniors’ organisations across Victoria to support their activities and needs.

Supporting asylum seekers and refugees

In 2019–20, DPC continued to support asylum seekers, refugees and established culturally diverse communities via the Strategic Partnerships Program, which delivers community-designed solutions in 11 defined geographical areas (four metropolitan and seven regional). Each partnership comprises a lead agency and several partner agencies.

To complement the program, a network of 11 strategic engagement coordinators have been employed — one in each area. The coordinators work to identify service gaps and opportunities to deliver improvements to place-based support services for diverse communities. Under the Multicultural Affairs COVID-19 Response Package, $440,000 in extra funding was provided to the coordinators for projects that improve digital outreach to refugees and new migrants during the pandemic.

Providing translation services

In 2019–20, DPC continued work to improve multicultural communities’ access to interpreting services. DPC supported the interpreter workforce with training and professional development through the Interpreter Scholarship Program with RMIT University and the Professional Development Program with Monash University.

As part of the $11.3 million Multicultural Affairs COVID-19 Response Package, $1 million was dedicated towards improving access to translated materials during the coronavirus (COVID-19) pandemic.

Supporting Victoria’s veterans

This year an important focus has been on planning for the historic 75th anniversary of the end of the Second World War. Due to coronavirus (COVID-19) restrictions, DPC developed an extensive program of activities to enable Victorians to recognise this important anniversary at home. Key cultural institutions and organisations representing ex-service members were engaged to deliver a virtual program, and 32 projects were funded across Victoria including events, exhibitions and activities to recognise the anniversary in August 2020.

In 2019–20, DPC distributed $2.13 million in grant funding to 148 projects for veterans’ welfare and capital works and on projects to commemorate veterans service, to educate Victorians on the service and sacrifice of veterans and to encourage community support of significant events such as ANZAC Day and Remembrance Day. The Veteran Capital Works Grants program supports building and facility improvements for organisations.

Additional funding of $1.55 million was distributed to RSL Victoria and Melbourne Legacy to ensure veterans receive vital support during the coronavirus (COVID‑19) pandemic. RSL Victoria was provided with a $100,000 grant of which $80,000 will be paid in 2020–21, to establish a veteran’s call centre to provide a central point to connect veterans and their families with government services and support from ex-service organisations.

In October 2019, DPC supported the government to launch the Veteran Employment Network for veterans working in the public sector and the Veteran Mentor Program to match veterans interested in working in the public sector with veteran public sector employees. DPC engaged with people who had expressed an interest in veteran employment programs through delivering veteran employment workshops and transition seminars. New tools were developed to help guide veterans on applying for roles in the public sector.

DPC continues to support the Shrine of Remembrance to commemorate the service and sacrifice of veterans, including through virtual commemorative services held on ANZAC Day and the 75th anniversary of Victory in Europe Day for the Second World War.

Support was provided to the Vietnam Veterans Association of Victoria for welfare and commemorative activities, school visits, the development of new teaching and learning resources and for the National Vietnam Veterans Museum.

Victoria’s war heritage was supported through the grants program, the War Heritage Collections Training program and an audit of Avenues of Honour.

In 2019–20, DPC continued its support of the Victorian Veterans Council to assist the council to meet its objectives.

Delivering inclusive events and festivals

Beginning in 2018–19, the Pride Events and Festivals Fund is investing $3.2 million over five years to help deliver inclusive events and opportunities for LGBTIQ Victorians and communities to connect, engage, celebrate diversity and promote inclusion. Grants provided in 2019–20 supported 52 events, including the Minus18 Queer Formal 2019, which brought together 500 LGBTIQ young people to connect, make friends and celebrate. Funding was also provided to the Melbourne Queer Film Festival to strengthen the organisation’s philanthropic, patron and donor programs and to further develop its connection, engagement and reach across regional Victoria.

Progressing full inclusion for LGBTIQ Victorians

Key initiatives delivered by DPC in 2019–20 to support the wellbeing, inclusion and participation of LGBTIQ Victorians include:

• allocating additional funding to La Trobe University to develop tailored resources to support survivors of harmful LGBT conversion practices
• building capacity and leadership capabilities through the LGBTIQ Leadership Program
• progressing Victorian Government election commitments by engaging communities in the development of Melbourne Pride 2021 and starting to develop improved wellbeing and mental health supports and the LGBTIQ homelessness grants program to improve the safety and inclusion of LGBTIQ Victorians.

Support for LGBTIQ Victorians during the coronavirus (COVID-19) pandemic

More than $1 million was provided to LGBTIQ organisations to target the needs of LGBTIQ Victorians during the coronavirus (COVID-19) pandemic. The funding has helped organisations to meet increased demand for services and to provide support to LGBTIQ Victorians by building connectedness and countering the impacts of social isolation within the LGBTIQ community. Organisations that have received funding include Switchboard Victoria, Drummond Street Services, Thorne Harbour Health, JOY 94.9 FM, Pride Cup and Celebrate Ageing.

Progressing gender equality

In 2019–20, DPC continued its work on creating a more gender equal Victoria, through the continued implementation of Safe and Strong, Victoria’s first gender equality strategy. The Office for Women worked closely with funded partners to adapt to a coronavirus (COVID-19) environment.

As at 30 June 2020, gender equality progress includes:

• Passing the Gender Equality Act 2020, which was enacted on 25 February 2020 and will commence in March 2021. The legislation, the first of its kind in Australia, aims to improve gender equality across Victoria’s public sector, universities and local councils with 50 or more employees, and to get better results for the Victorian community through improved policies, programs and services. The Commission for Gender Equality in the Public Sector will also be established to support entities to meet their obligations and drive real progress towards workplace gender equality.
• Releasing Victoria’s first ever Gender Equality Baseline Report. This baseline allows the Victorian Government to measure progress on key gender equality priorities — including women’s economic security, leadership and participation in decision making and addressing gendered norms, stereotypes and expectations. It provides the first ever baseline position of gender equality in Victoria in 2019.
• Supporting the delivery of a range of women’s economic security programs. Brotherhood of St Laurence Stepping Stones program supported 298 women to build the skills to start their own small business, SisterWorks scaled up operations and supported 783 migrant and refugee women to access employment, and Women’s Information Referral Exchange developed an evidence based toolkit to support women’s financial literacy.
• Continuing to address sexist advertising by reinvesting in the Gender Equity in Advertising project with Women’s Health Victoria. This project is the first coordinated effort in Australia to promote gender equality and address the gendered drivers of violence within an advertising setting. The project aims to create a more gender equal advertising sector by targeting the industry, through the development of sector training pilots. The project also increases awareness of the harms of sexist advertising, through a website and campaign, and through partnerships with the Australian Association of National Advertisers and the Commonwealth Government will seek stricter parameters around sexist advertising in Australia.
• DPC supported the Queen Victoria Women’s Centre Trust to engage more than 12,000 women across Victoria in a series of talks, events and workshops held at the Queen Victoria Women’s Centre, including events on International Women’s Day. The Trust also partnered with organisations including Multicultural Arts Victoria, the Melbourne Writers Festival and the Feminist Writers Festival to drive the development of new women’s cultural activities.
• Supporting a range of activities highlighting women’s achievements and supporting women into leadership roles, including the induction of 32 women to the 2020 Victorian Honour Roll of Women, as well as the provision of 62 scholarships for Victorian women to participate in the Australian Institute of Company Director’s Board Leadership programs.
• Delivering the ‘Together We Care’ social media campaign, which highlighted the immense unpaid and paid care work performed by women, in the context of COVID-19, as a basis to challenge assumptions about the way we live, work and care, and promote greater equality. The campaign featured a number of case studies, spotlighting and celebrating frontline workers, women juggling paid and unpaid work with teaching responsibilities, and men undertaking care work. Over a period of two weeks in May 2020, the campaign was delivered on the Minister for Women and Women Victoria social channels and reached almost 95,000 people.

Preventing family violence and all forms of violence against women

In 2019–20, DPC continued to implement the Free from Violence: First Action Plan 2018–2021, which was launched in January 2018. The action plan highlights 33 key actions to deliver on the 10-year Free from Violence Strategy, which was launched in 2017.

As at June 2020 progress against Free from Violence includes:

• Continued roll out of the Free from Violence Local Government Grants Program across 35 local government councils. An evaluation by Australia’s National Research Organisation for Women’s Safety of progress towards outcomes found that: participating councils have demonstrated increased capacity to be leaders in primary prevention; there has been growth in the number and expertise of the prevention workforce; and high-quality prevention programs are being delivered.
• Delivery of a range of initiatives through the Aboriginal Innovation Fund, led by the community and community leaders, which have shown increased community awareness and knowledge of services, support and culture; improved understanding of healthy and respectful relationships in Aboriginal families and community; and increased confidence and leadership of Aboriginal people in the design and delivery of primary prevention projects.
• New and further research into the intersectional drivers of family violence and what works to prevent it, including new evidence-based guidance for promoting bystander action, for engaging men and boys in prevention of violence against women and for preventing family violence against LGBTIQ communities.
• A stronger, more capable specialist prevention sector, through roll out of capacity building support in 12 women’s health services and dedicated training provided to practitioners. Prevention workers built their knowledge and skills and were able to connect with other prevention workers through communities of practice, conferences and networking events.
• A joint commitment by the Victorian Government and the City of Melbourne to build a family violence memorial in the heart of Melbourne to honour the lives of victims and survivors of family violence, and provide a place for healing, remembering and reflection. A Working Group was established in late 2019, made up of representatives from the City of Melbourne, the Victorian Government and the Victims Survivors’ Advisory Council (VSAC). As part of its work to recommend a design concept, the Working Group consulted with several stakeholders including, VSAC, Traditional Owner groups and Aboriginal Family Violence organisations.

Supporting the Family Violence Reform Implementation Monitor

On 1 August 2019, former Victorian Corrections Commissioner Jan Shuard PSM was appointed as the new Family Violence Reform Implementation Monitor to monitor and review how effectively the government and its agencies are implementing the family violence reform recommendations. Informed by consultations with more than 50 individuals, agencies and organisations, the Monitor’s third report was tabled in parliament on 18 February 2020. The report detailed implementation over the 12 months to 1 November 2019 and identified areas of progress, as well as where greater attention would benefit the effective reform of family violence services. On 1 June 2020, Ms Shuard called for submissions from the family violence and broader service sector to supplement consultations and other monitoring activity to inform her fourth report.

Giving youth a voice in the design of policies, programs and services

Victorian Youth Congress

In 2019, 19 diverse young people from across Victoria were appointed to the second Victorian Youth Congress to provide advice and feedback to the Minister for Youth on issues of importance to young people. The 2019 Victorian Youth Congress identified political and civic engagement of Victoria’s young people as their priority area of focus.

Engaging and supporting vulnerable and at-risk young people

Community support groups

DPC funds six community support groups (CSGs) to support young people from diverse backgrounds. CSGs are place-based and community-led initiatives that work with multicultural communities across Melbourne. The CSGs have assisted communities with more than 10,000 case management requests in 2019–20 and have been instrumental in supporting communities through the coronavirus (COVID-19) pandemic.

Le Mana Pasifika Project

In 2019–20, the Le Mana (Empower) Pasifika Project worked in eight Melbourne schools providing individual and group support to Pasifika young people with the aim of increasing their educational engagement and community involvement. Two Youth Governance Groups consisting of 28 Pasifika young people ensured that the voices of young people drove the design of program activities. Project activities included a homework club, sporting activities and facilitated discussions on mental health and strengthening cultural identity.

The Le Mana Pasifika Project adapted its delivery model in response to the coronavirus (COVID-19) pandemic, with supports delivered online and via phone. Since March 2020, individual phone support provided to Pasifika young people increased by 250 per cent.

Empowering communities to lead change through place-based approaches

The Working Together in Place initiative aims to identify how government can work differently to address entrenched disadvantage in Victorian communities. Work to date has highlighted the need for more flexible, multidisciplinary and outcome-focused ways of working across government.

The initiative recognises that providing services alone does not enable communities to strengthen and overcome complex challenges. Place-based approaches put the knowledge, resources, capabilities and priorities of local communities at the centre. Importantly, decision-making is shared between the community and government, and all stakeholders work collectively towards the shared goal to achieve real change. In this way, place-based approaches support preventative, cost-effective responses to complex challenges by leveraging a community’s strengths, building resilience and targeting investment on what works locally.

In implementing the initiative, DPC is working with diverse communities across Victoria and external experts, drawing on a broad range of evidence to test and demonstrate reforms required to more effectively support and enable communities to achieve locally identified outcomes.

Progress towards achieving the objective

The output performance measures that provide information on DPC’s progress in achieving the ‘Engaged citizens’ strategic objective are outlined below.

Objective indicator: Increased opportunities for participation by members of the Victorian community in the social, cultural, economic and democratic life of Victoria

Note: nm — new measure

Further details on DPC’s 2019–20 performance against its output performance measures are covered in the section Performance against output performance measures.

This objective fosters and promotes a high-performing public service. It ensures effective whole of government performance and outcomes. It protects the values of good public governance in support of public trust.

DPC’s outcomes on the following key initiatives have helped us achieve the Professional public administration strategic objective.

Office of the Governor initiatives

In addition to constitutional and ceremonial duties, the Governor hosted a wide range of events in 2019–20, making Government House and its grounds available in new ways for events, community programs and groups that might not have previously had the opportunity to visit it.

The Governor and her spouse, Mr Anthony Howard, continued an extensive international engagement program on behalf of the government. In early 2020, the Governor and Mr Howard had a particular focus on community engagement in the aftermath of the Victorian bushfires. The coronavirus (COVID-19) related physical distancing directions from March 2020 resulted in the Governor continuing a full program in virtual form. The Office of the Governor continues to modernise its business systems, work that will continue into 2020–21.

Implementing security upgrades for government buildings

In 2019–20, the Office of the Governor continued a significant program of projects, including security and conservation upgrade works. This program of works will be completed in 2020–21.

Chief Parliamentary Counsel services

In 2019–20, the Office of the Chief Parliamentary Counsel (OCPC) drafted a range of legislation to implement major government policy initiatives and reforms across a wide range of law.

OCPC drafted the large and complex COVID-19 Omnibus (Emergency Measures) Act 2020 in an extremely compressed timeframe as part of the government’s response to the coronavirus (COVID-19) pandemic.

The Local Government Act 2020 was the most significant reform to Victoria’s local government legislation in more than 30 years. Other legislation to implement significant policy initiatives included the North East Link Act 2020, the Transport Legislation Amendment Act 2019, the Melbourne Strategic Assessment (Environment Mitigation Levy) Act 2020, the Workplace Safety Legislation (Workplace Manslaughter and Other Matters) Act 2019, the Wage Theft Act 2020 and the Crimes Mental Impairment and Unfitness to be Tried Amendment Bill 2020.

OCPC drafted important environmental legislation such as the Water and Catchment Legislation Amendment Act 2019 and the Great Ocean Road and Environs Protection Act 2020, the Parks and Crown Land Legislation Amendment Bill 2019 and the Flora and Fauna Guarantee Amendment Act 2019.

Over the 2019–20 period, 169 statutory rules were made. This involved a large number of remakes of sunsetting regulations such as the Fisheries Regulations 2019 and the Children’s Services Regulations 2020. Regulations were made to support amendments made by the Fire Rescue Victoria Act, and the Residential Tenancies Regulations 2019 were made to support reforms in the residential tenancies law. Several statutory rules were also made to implement changes required by the coronavirus (COVID-19) pandemic.

Throughout 2019–20, OCPC continued providing drafting services to parliament to facilitate the passage of Victorian Government legislation, the preparation of House amendments and the introduction of Private Members’ Bills.

The demand from opposition and independent Members of Parliament (MPs) for drafting services for House Amendments continues to be a challenge. Reflecting the anticipated rise in non-election years and minor party representation in the new parliament, the number of House Amendments for 2019–20 was 88, against a target of 60.

An amount of $250,000 was provided in the 2019/20 Victorian Budget to undertake initial scoping and business requirements and to develop a detailed business case for a replacement Integrated Legislative Database.

The database provides community access to current and historical Victorian legislation. OCPC worked closely with the Single Digital Presence team in DPC to build a new legislation website using updated technology and enhanced reliability, support and security. The new website was launched on 27 February 2020.

Securing public records by accessing a customised storage facility

During 2019–20, Public Record Office Victoria was able to increase its storage capacity for maps by another 15,000 flat maps. The planning for the transfer of 10,000 linear metres of general storage capacity to a State Library Victoria storage facility in Ballarat has been completed.

The transfer, initially planned for the last quarter of 2019–20, was delayed because of the coronavirus (COVID-19) pandemic. This is now expected to occur in the last quarter of 2020–21. The total expenditure for 2019–20 was $0.352 million ($0.500 million budget).

Establishing and leading the government’s Independent Remuneration Tribunal and compliance officer function

The Victorian Independent Remuneration Tribunal (Tribunal) was established in March 2019 to support independent and impartial decision-making about MP salaries and allowances and remuneration bands for executives employed in the VPS and prescribed public entities. The Tribunal completed its first Determination for MP salaries and allowances in September 2019 and made an annual adjustment Determination in June 2020. The Tribunal issued its first set of guidelines that govern the use of MP work-related parliamentary allowances. The guidelines were updated in late 2019, and the Tribunal began a major review of the guidelines in early 2020, with the release of an issues paper and stakeholder consultation.

In July 2019, the Tribunal assumed responsibility for administering the Public Entity Executive Remuneration Policy, which details the government’s approach to executive remuneration for executives in specified entities. In 2019–20, the Tribunal determined the total remuneration packages for 36 chief executive officers of specified public entities.

The Tribunal made its first Determination of remuneration bands for executives employed in public service bodies in May 2020. It also began the process for making the first Determination of remuneration bands for executives employed in prescribed public entities in late 2019, undertaking significant stakeholder consultation with public entity board chairs and executives.

The Office of Compliance Officer, attached to the Tribunal, was also established in 2019 to hear and determine appeals from MPs in relation to use of parliamentary allowances and the separation payment. During 2019–20, the Compliance Officer heard one appeal being the first appeal made by an MP, and published a statement of findings in relation to that appeal.

The Tribunal and Compliance Officer are supported by a secretariat that sits within DPC.

Fostering innovation and new ways of working in the public sector

Human-centred design

Human-centred design is an approach to problem solving that puts the people we are designing for at the heart of the process. By taking an empathic approach we can align government services with the needs and desires of people. By continually validating, refining and improving our work we can discover the root causes of complex problems, generate more ideas, exercise our creativity and arrive more quickly at fitting solutions.

In 2019–20, DPC’s Digital, Design and Innovation branch produced the Human-Centred Design Playbook, an online practical learning guide for public servants who are designing, procuring or managing human-centred design projects. The playbook is targeted at VPS staff who are new to human-centred design practice to help them collaborate better with citizens, technologists and external design agencies. Since its launch early in 2020, the website (www.vic.gov.au/hcd) has been visited 2,963 times and the playbook downloaded 245 times.

In 2019–20, Digital, Design and Innovation championed the human-centred design approach by providing advisory and technical assistance to 30 government entities. It also served an additional 417 people from across government through training, workshops and presentations at seminars and conferences.

Modernising systems and processes to improve government productivity

Single Digital Presence

Built for government, by government, Single Digital Presence (SDP) is a sustainable, scalable, secure and accessible publishing platform that reduces the cost and time to deliver high-quality digital presences for government agencies.

As a result, SDP has made it easier for Victorians to find, access, understand and use Victorian Government information.

In 2019–20, SDP completed the DPC business case and transitioned to operations. Over the life of the business case, SDP simplified the community experience of online government information by consolidating 79 websites. This was achieved by publishing content on vic.gov.au by default and joining up user journeys.

To support digital capability uplift in the VPS, SDP has trained more than 300 public servants to use the platform’s content management system, and more than 600 VPS have attended a writing for the web training session.

Victorian Government Digital Guides

Victorian Government Digital Guides uplift VPS capability in important and challenging areas of digital delivery. In 2019–20, DPC delivered two new guides, bringing the total number of guides to 22.

‘Make your project open source’ encourages the VPS to make projects ‘open source’, which means to publicly share intellectual property for software, design and content. Opening projects and making them available for sharing and re-use avoids duplication and drives innovation and collaboration across government. Open source projects also give back to the Victorian community.

‘Protect privacy’ helps VPS staff meet obligations under the Privacy and Data Protection Act 2014 when delivering a digital service. Good privacy practices protect human rights, build trust and engagement with the community, prevent privacy and data breaches and reduce the time and cost of responding to privacy complaints.

DPC offers continued support to modernising departmental processes through the whole of government Application Programming Interface (API) Capability Program.

In September 2019, the Victorian Secretaries Board formalised the program to support all departments and Victoria Police to surface the valuable information stored in core business systems and make this available in a secure and reusable manner — not only within each department but also across government and in some cases to the general public.

The API capability program provides a range of modern technology products and professional services that have supported API integration and data-sharing initiatives across DPC, DHHS, DELWP, DJPR and DJCS.

By partnering with each department on their initiatives, DPC has been successful in promoting the re-use of existing government data to support service delivery to citizens and improving government productivity through reducing manual processing effort.

The API capability program was central to the creation and open publishing of the National API Design Standards (NAPIDS). In December 2019, the Council of Australian Governments endorsed NAPIDS as the common design standard for APIs. This allows all levels of government to develop independent or shared services more efficiently through secure data sharing and re-use across jurisdictions.

Supporting our integrity agencies

Integrity system and public information reforms

Reforms introduced by the Integrity and Accountability Legislation Amendment (Public Interest Disclosures, Oversight and Independence) Act 2019 strengthened the public interest disclosure system and streamlined Victoria’s integrity and accountability system. The reforms began on 31 December 2019 and 1 January 2020 respectively. The 2019 Integrity Act:

• expanded the definition of ‘improper conduct’ under the Public Interest Disclosure Act 2012
• simplified confidentiality obligations under the public interest disclosure scheme
• streamlined oversight of the integrity agencies under the new Integrity and Oversight Committee
• provided greater independence for the Victorian Ombudsman, Independent
  Broad-based Anti-corruption Commission and Victorian Inspectorate in their budget processes (draft budgets will be determined in consultation with the Integrity and Oversight Committee and the annual appropriation will be specified in the Parliament Appropriation Bill)
• brought the Office of the Victorian Information Commissioner (OVIC) into the public interest disclosure regime. (OVIC can now investigate public interest disclosures referred to OVIC by the Independent Broad-based Anti-corruption Commission).

DPC supported implementation of the 2019 Integrity Act, including the making of the following regulations to give effect to the Act:

• Victorian Inspectorate Amendment Regulations 2019
• Independent Broad-based Anti-corruption Commission Amendment Regulations 2019
• Ombudsman Regulations 2019
• Public Interest Disclosures Regulations 2019
• Freedom of Information Amendment Regulations 2019
• Local Government (General) Amendment Regulations 2019.

The regulations prescribe forms for a witness summons and confidentiality notice.

DPC also liaised with the Information Commissioner on developing Professional Standards issued in accordance with Part IB of the Freedom of Information Act 1982. The Professional Standards prescribe how agencies must discharge their obligations under the Act.

On 1 May 2020, as part of machinery of government changes, the integrity agencies transferred to DJCS.

Driving and leading a new information culture and leading freedom of information activities

During 2019–20, OVIC:

• developed resources for upholding information rights when responding to coronavirus (COVID-19)
• issued Professional Standards under Part IB of the Freedom of Information (FOI) Act on 2 December 2019
• delivered a suite of updated and new guidance materials on FOI in the form of practice notes and agency templates
• delivered a report on the state of FOI in Victoria to provide a five-year overview of FOI in Victoria from 2014 to 2019
• published a discussion paper and started consultation on a proactive and informal release of government-held information
• began the Monash University pilot study into FOI and information access culture in Victoria
• published a book, Closer to the Machine, with contributions from eight notable experts in the field aimed at explaining concepts in artificial intelligence to VPS staff
• published a Privacy Management Framework to provide organisations with guidance on the policies and procedures that promote good privacy practices within an organisation.

On 1 May 2020, as part of machinery of government changes, OVIC transferred to DJCS.

Implementing the Jobs and Skills Exchange to expand opportunities for VPS staff

Since its launch in July 2019, the Jobs and Skills Exchange (JSE) has designed and implemented new approaches to enhancing workforce mobility and career development in the VPS. The JSE successfully delivered a jobs platform, other digital tools and a recruitment policy that provides greater visibility of and access to career opportunities for VPS employees. At the end of the JSE’s first year of operations, over half of the VPS workforce have registered as JSE members and more than 10,000 VPS jobs have been advertised. The JSE has begun the transition to a technology platform that provides an enhanced user interface and better user experience, particularly with respect to accessing holistic career development content.

The JSE has engaged widely across the VPS to develop policies and service offerings that promote diversity and inclusion as well as recruitment that focuses on the growth potential of existing VPS employees. JSE has undertaken research to better understand the barriers to mobility and how these can be addressed. Governance mechanisms have been established so that the input of departments and other key stakeholders can actively inform the JSE’s priorities and growth.

Through analysis of job platform data and feedback from hiring managers, the JSE has a unique ‘intelligence bank’ about the specific needs and availability of skills and capabilities to deliver government priorities. The launch of Member Profiles has allowed the JSE to understand the skills and professional experience that exist across the VPS workforce, which will help to inform future reform in learning and development and to create professional cohorts. The strong uptake of Member Profiles indicates there is an appetite from the workforce to participate in new ways of sharing information about its skills and career ambitions.

In 2019–20, the JSE also supported employee mobility during delivery of a whole of government mobilisation program to support the Industrial Relations Framework for managing the coronavirus (COVID-19) pandemic. This work has established strong foundations to support future anticipation of and response to urgent and emerging workforce needs.

Enhancing public sector integrity and governance capability through the Victorian Public Sector Commission

The Victorian Public Sector Commission’s (VPSC) initiatives to enhance public sector integrity and governance capability this year included a restructured State of the Public Sector in Victoria report that provides public sector organisations with an evidence base to continually improve the way they build, manage and lead the workforce. The focus in 2019–20 was on the following issues: building workforce capacity; strengthening senior leadership; workplace mental health and wellbeing; and a values-based culture. The VPSC placed particular emphasis on these priorities in the context of responding to the impacts of the coronavirus (COVID-19) pandemic on the VPS workforce and broader community.

The VPSC also developed a workforce capability framework, identifying five domains of capability that the public sector will need in its future workforce: meaningful outcomes, enabling delivery, authentic relationships, people leadership; and personal attributes. These capabilities provide a solid foundation for a wide range of workforce management and development activities including role design, recruitment, learning and development and workforce planning.

The VPSC recruited 92 people to the 2020 Victorian Government graduate program, adding new streams in data analytics and program delivery. Inclusive recruitment practices increased participation by Aboriginal and Torres Strait Islander people and people with disability.

Pre-employment screening was broadened, extending the VPS executive screening to cover non-executives too. The Victorian Leadership Academy established an induction program for executives that explains the integrity, governance and ethical standards required of leaders in senior public service roles. Thirty-nine people joined the first induction program, reinforcing the critical role that leaders play in modelling and upholding a values-based culture.

The VPSC provided HR guidance to help the public sector transition to remote management of the employee lifecycle during the coronavirus (COVID-19) pandemic. This included publishing a guide for remote recruitment and supporting development of a remote working checklist and advice about managing performance development plans remotely.

This objective pursues policy, service and administration excellence and reform. It leads the public sector response to significant state issues, policy challenges and projects. It supports the effective administration of government. It supports delivery of policy and projects that enable increased productivity and competitiveness in Victoria.

DPC’s outcomes on the following key initiatives have helped us achieve the High-performing DPC strategic objective.

Developing a portfolio governance framework

In March 2020, the DPC Audit and Risk Management Committee endorsed the Portfolio Entities Risk and Financial Oversight Framework, which details the department’s responsibilities in accordance with the Standing Directions for the monitoring, oversight and reporting of its Portfolio Entities.

This contributes to DPC as a high-performing department by ensuring clear accountability and transparency in relation to risk and resource management practices.

DPC business continuity to respond to the coronavirus (COVID-19) pandemic

The DPC Business Continuity Plan and DPC Pandemic Plan were activated in March 2020 in response to the coronavirus (COVID-19) pandemic. DPC’s business continuity response has continually adapted to respond to the directions of Victoria’s Chief Health Officer and to provide support to both frontline staff and staff working remotely.

DPC’s business continuity has been overseen by the Continuity Leadership Team. This team was expanded in March 2020 to include representatives from across DPC, and continues to meet weekly to provide direction, oversight and support to identify and resolve business continuity issues and progress initiatives.

With most DPC staff working remotely since 24 March, business continuity has focused on remote working initiatives and business system improvements, staff health and wellbeing initiatives, and staff redeployment to ensure
high-priority work and essential regular work can be completed.

DPC’s response has included:

• adjusting business processes so they can be undertaken virtually
• providing equipment to staff working remotely to ensure they can work safely
• deploying technical solutions and applications with guidance and advice to enable secure virtual collaboration and compliance with DPC information management and security standards.

The Continuity Leadership Team and DPC Board of Management continue to monitor and mitigate risks related to the large-scale impact of staff working remotely.

In May 2020, a supplement to the Business Continuity Plan was developed to address the key business continuity challenges DPC faced due to the impacts of coronavirus (COVID-19). The supplement identified key issues and actions required to support the continuation of DPC’s three key focus areas:

• supporting the government in its response to coronavirus (COVID-19) including the work of National Cabinet, the Crisis Council of Cabinet and the Public Sector Administration Committee, and the progress of core missions and enabling programs
• progressing the core business of government including developing legislation, State Budget preparation, policy advice, statutory reporting requirements, contract management and financial and grants payments
• supporting staff welfare, ensuring their safety and wellbeing while remaining productive and effective in a changed and challenging work environment.

Delivering an integrated automated briefing and correspondence system

DPC made significant progress in 2019–20 towards delivering an automated briefing and correspondence system to drive consistency and efficiency in managing briefings and correspondence. Extensive user experience discovery research was undertaken including an all-staff survey, interviews, co-design workshops and user testing sessions. A design panel, a design reference group and a technical advisory panel were established, with a prototype also developed and tested. A detailed business case has been prepared and, subject to funding, implementation will occur in 2020–21.

In collaboration with DJPR, DPC established an automated briefing and correspondence Community of Practice with representation from other departments including DoT, DJCS, DHHS, DET and DELWP. The Community of Practice is a collaborative forum, helping to ensure departments’ automated briefing and correspondence systems are standards-based and interoperable, and can be integrated and enhanced as efficiently as possible.

Establishing the internal Program Management Office to drive efficient and effective delivery of technology projects

In 2019–20, DPC created a dedicated Program Management Office (PMO) within corporate services, under the remit of the Chief Information Officer.

The PMO has reviewed baseline project and program standards and templates and established a clear framework to increase maturity over time and continue to drive efficient and effective delivery of technology projects. Initial work has included establishing clear status reporting for all DPC technology projects, enabling DPC to track progress and make data-informed decisions. The PMO has also provided strong support and delivery assurance to project managers and teams across DPC.

Building on this foundation, future work will include establishing an internal ICT governance and investment committee to oversee system prioritisation and funding.

Establishing an internal ICT governance and investment committee to oversee system prioritisation and funding

This initiative, as part of the PMO, will now be delivered in 2020–21 due to other project-related priorities that emerged due to coronavirus (COVID-19) and DPC’s transition to remote working.

Implementing integrated communications technology

During 2019–20, progress in delivering DPC’s integrated communications technology road map continued to be made, building on DPC’s implementation of Microsoft 365 to deliver enhanced security, efficiencies and effectiveness. The rollout of Microsoft Teams from March 2020 was a critical technology enabler for cross-department collaboration and communication during DPC’s remote working transition as part of the coronavirus (COVID-19) response.

Developing leaders and embedding a culture of flexibility and wellbeing

Leadership

Leadership development opportunities for executive and VPS staff are critical in supporting the vision of DPC to be recognised and respected leaders in whole of government policy and performance. In 2019–20, DPC continued to deliver several leadership development programs including the following:

• DPC continued with Leading Edge, a leadership development program designed specifically for VPS 6 managers that provides exposure to strategies, frameworks and tools to support the move from manager to leader. There were also opportunities for previous participants to reconnect as a VPS 6 manager cohort through alumni forums.
• More than 40 DPC VPS 4 and VPS 5 staff attended the Igniting Leadership Program, a leadership development program tailored for emerging DPC leaders to gain the insights, skills and confidence to raise individual and team performance and successfully deliver organisational goals.
• DPC supported directors, executive directors and deputy secretaries to participate in the Victorian Leadership Academy development programs. These programs provide intensive and collaborative development experiences designed to support new ways of thinking, leading and working.
• In partnership with DTF and the Essential Services Commission, more than 200 staff participated in a mentoring program established to support staff development, cultivate connections within the VPS and create a culture of developing others.

Learning and development

DPC is committed to providing learning and development opportunities for its staff. Based on the Experience, Exposure, Education model of learning, DPC offers programs and resources to support individuals and teams to drive their own learning and development.

In 2019–20, DPC staff took up more than 1,800 places at development programs, events, workshops and digital offerings across a range of topics including strategic planning, diversity and inclusion, policy development, mental health, leadership and management development.

In August 2019, DPC again delivered the highly successful Empowering Women summit. For the third year in a row, this full-day event provided professional development opportunities to staff across DPC and the wider Victorian public sector. In 2019, the summit was designed to allow attendees to create their own personalised development program from 40 workshops and a rich plenary session with three keynote speakers that achieved a 98 per cent satisfaction rate. Nearly 1,400 Victorian public servants attended, with almost 200 DPC staff participating.

Flexibility

DPC recognises that flexibility is an essential part of a diverse, adaptive and high-performing workforce. DPC provides a range of flexible working arrangements and continues to support and empower all staff to successfully manage work and life commitments. Since 24 March, in response to the coronavirus (COVID-19) pandemic, DPC has pivoted to remote working. This has seen the organisation adapt to new technologies and ways of communicating, collaborating and managing teams. Support for staff and managers through this transition has included delivering a series of workshops and webinars on successfully managing flexible working arrangements.

Enhancing mental health and wellbeing

The continued implementation of the VPS Mental Health and Wellbeing Charter has been a key focus for 2019–20. Initiatives in line with the charter have included:

• introducing a second cohort of volunteers to DPC’s Peer Support Program in November 2019, as an additional avenue of support for employees
• continued promotion of positive wellbeing events and activities, Health and Safety Month, Mental Health Week and establishing an Executive Champion for Wellbeing
• the promotion and delivery of mandatory mental health and wellbeing training for executives, managers and staff. This program supports a culture where staff can feel confident and comfortable talking about mental health and wellbeing, to support a proactive approach to mental health. As at 30 June 2020, 95 per cent of staff had completed training.

For more information, refer to Appendix 4 under ‘Occupational health and safety management’.

Wellbeing support during the coronavirus (COVID-19) pandemic

In response to the evolving coronavirus (COVID-19) pandemic, DPC initially focused on supporting staff to safely transition to working from home arrangements. DPC developed and communicated a Remote Work Policy and Operating Guideline, including an occupational health and safety assessment adapted for the home environment. Appropriate equipment and ergonomics-at-home sessions have been provided to ensure staff are able to work safely from home over an extended period.

DPC also developed preventative action plans to reduce the likelihood of exposure to coronavirus (COVID-19) in the workplace and to ensure appropriate response plans in line with the directives of Victoria’s Chief Health Officer.

A weekly mental health and wellbeing newsletter and dedicated intranet micro-site for staff was established to promote a range of wellbeing support resources, including activities to: maintain physical health, psychological wellbeing and connection with teams and colleagues; balance work and life commitments; manage stress; and lead through challenging times.

Delivering the DPC Diversity and Inclusion Strategy and action plans

DPC is committed to promoting and embedding a diverse, inclusive and equitable workforce. In 2019–20, DPC continued to implement the Diversity and Inclusion Strategy 2019–2021 to ensure our culture and day-to-day practices are as inclusive as possible for all staff. The strategy includes a suite of diversity action plans that focus on Aboriginal employment; cultural, linguistic and religious diversity; people with disability; gender equity; and the LGBTIQ community. DPC is in its second year of supporting the VPS Enablers Network for people with disability. The network has grown to more than 500 members and held a key event in December 2019 with senior executives across the VPS to celebrate International Day of People with Disability.

Embedding a positive and productive workplace culture

In May 2019, DPC achieved an 80 per cent response rate for the People Matter Survey. The response rate shows significant employee interest in sharing views and experiences and continuing to evolve DPC’s culture and performance. A departmental ‘pulse’ survey was also run in December 2019 to supplement the 2019 People Matter results and to monitor key focus areas.

Priority areas of focus are psychological safety; communication of vision, direction and change; management across the department; the elimination of negative or inappropriate behaviours; and building a culture of respect.

During 2019–20, DPC has implemented departmental, group and branch-level initiatives to help address key issues identified in the survey while also maintaining positive results in other areas.

Implementing strategies to attract, develop and retain talented and diverse people

DPC is an equal opportunity employer committed to a fair and merit-based approach to recruitment and selection while actively fostering and promoting diversity and inclusion. We welcome and encourage applicants from all backgrounds, ensuring all recruitment processes are accessible and, where required, reasonable adjustments are made.

DPC has implemented several reforms to strengthen and enhance our recruitment processes including using online selection forms, introducing pre-employment misconduct screening for all potential VPS employees, role-based risk assessments and enhancements to our conflict of interest policies and associated recruitment panel requirements. DPC leverages the Jobs and Skills Exchange as a key recruitment avenue.

Modernising and strengthening HR systems and processes

In 2019–20, DPC implemented the first stage of the new Human Capital Management System to transform HR systems and processes. Named ‘PeopleCentral’, the platform helps manage the performance development process and includes a new learning management system.

PeopleCentral is easy to use and offers staff a range of features such as:

• a central location to view and enrol in training, complete e-learning modules, create and share learning resources, and record learning activities
• the ability for employees and managers to regularly capture performance and development progress with real-time performance development status updates.

A new DPC induction program, housed in the learning management system, includes four refreshed e-learning modules developed to help staff understand the operating context and expectations of working within DPC.

The section provides information about DPC’s performance against our output performance measures. It provides comparison with our output targets that were published in the Departmental Performance Statement section of the 2019/20 Victorian Budget Paper No. 3 — Service Delivery.

Commentary is provided where there are variances of more than 5 per cent between targets and actual results for performance measures.

Government-wide leadership, reform and implementation

This output provides advice and support to the Premier and Cabinet on all aspects of government policy. This involves advice on issues as they arise, policy coordination, research and analysis, consultation with stakeholders and leadership in long‑term policy development.

Results legend

✔ Performance target achieved or exceeded in a desirable way

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Strategic advice and government support

This output provides strategic policy analysis and advice to the Premier, leads policy development on key priority issues and supports informed government decision-making.

Results legend

✔ Performance target achieved or exceeded in a desirable way

○ Performance target not achieved — within 5 per cent or $50 million (cost measures only) variance

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Digital government and communications

This output encourages innovative use of ICT to improve service delivery and business processes and provides information and services to Victorian citizens and businesses through digital and other delivery channels.

Results legend

✔ Performance target achieved or exceeded in a desirable way

Office of the Victorian Government Architect

This output provides strategic leadership and advice to government and key stakeholders on architecture and the built environment.

Results legend

✔ Performance target achieved or exceeded in a desirable way

Industrial relations

This output contributes to providing fair jobs and a positive industrial relations environment through sound industrial relations policy and advice to government. This includes oversight of enterprise bargaining across the Victorian public sector and support for Victoria’s participation in the national workplace relations system.

Results legend

✔ Performance target achieved or exceeded in a desirable way

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Aboriginal policy and strengthening Aboriginal cultural heritage and communities

This output supports the Victorian Government’s commitment to advancing self-determination for Aboriginal Victorians and to improving long-term social and economic outcomes for Aboriginal Victorians. This includes the protection and management of Aboriginal cultural heritage; strengthening Aboriginal community organisations; progress towards treaty; broad community engagement; and work to reform government to enable self-determination.

Results legend

✔ Performance target achieved or exceeded in a desirable way

○ Performance target not achieved — within 5 per cent or $50 million (cost measures only) variance

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Multicultural affairs policy and programs

This output provides policy advice on Multicultural Affairs, settlement coordination for newly arrived migrants and refugees and delivers programs to support Victoria’s whole of government approach to multiculturalism. It coordinates the monitoring of government departments’ responsiveness to Victorians from culturally, linguistically and religiously diverse backgrounds.

Results legend

✔ Performance target achieved or exceeded in a desirable way

○ Performance target not achieved — within 5 per cent or $50 million (cost measures only) variance

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Support to veterans in Victoria

This output provides coordination of veteran‑related issues at a state level, especially in relation to commemoration, education programs, grant programs, research and veteran welfare. This output supports the Shrine of Remembrance and the Victorian Veterans Council.

Results legend

✔ Performance target achieved or exceeded in a desirable way

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

LGBTIQ equality policy and programs

This output provides for the delivery of programs and services to promote equality for LGBTIQ Victorians and to support these communities’ economic, social and civic participation.

Results legend

✔ Performance target achieved or exceeded in a desirable way

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Women’s policy

This output provides initiatives that support women and the prevention of family violence and supports the economic, social and civic participation and inclusion of all Victorians.

Results legend

✔ Performance target achieved or exceeded in a desirable way

○ Performance target not achieved — within 5 per cent or $50 million (cost measures only) variance

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Youth

This output leads and coordinates whole of government policy advice and delivers a range of initiatives for young people aged between 12 and 25 years to gain a range of skills and experiences and to actively participate in their local communities.

Results legend

✔ Performance target achieved or exceeded in a desirable way

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Advice and support to the Governor

This output provides advice and support to the Governor and maintenance to Government House and its collections as a heritage asset of national importance.

Results legend

✔ Performance target achieved or exceeded in a desirable way

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Chief Parliamentary Counsel services

This output provides Bills for introduction in parliament including: providing quality and timely legislative drafting services; hard copy and electronic publication of Acts and statutory rules; and maintaining a database of Victorian legislation and legislative information at www.legislation.vic.gov.au.

Results legend

✔ Performance target achieved or exceeded in a desirable way

✗ Performance target not achieved — exceeds 5 per cent or $50 million (cost measures only) variance

Management of Victoria’s public records

This output provides direction to government on the management of public records and ensures the historical memory of the Victorian Government endures, is secure and is accessible.

Results legend

✔ Performance target achieved or exceeded in a desirable way

○ Performance target not achieved — within 5 per cent or $50 million (cost measures only) variance

Public administration advice and support

This output, through the Victorian Public Sector Commission, provides advice and support on issues relevant to public administration, governance, service delivery and workforce matters; undertakes related research, data collection, reporting and dissemination of information; advocates for an apolitical and professional public sector; monitors compliance with the public sector values, employment principles, codes and standards; and conducts related reviews and makes recommendations to public sector body heads.

Results legend

✔ Performance target achieved or exceeded in a desirable way

State electoral roll and electoral events

This output, through the Victorian Electoral Commission, provides a high‑quality electoral system that supports democracy in Victoria through the administration of an accurate and secure electoral roll, electoral services to ensure fair and equitable representation, the conduct of fair and impartial elections and encouraging greater participation in civic life through education and awareness activities and improving ease of access.

Results legend

✔ Performance target achieved or exceeded in a desirable way

Download this document for the full financial statements, including:

• Comprehensive operating statement for the financial year ended 30 June 2020
• Balance sheet as at 30 June 2020
• Cash flow statement for the financial year ended 30 June 2020
• Statement of changes in equity for the financial year ended 30 June 2020
• Notes to the financial statements for the financial year ended 30 June 2020
• Accountable Officer’s and Chief Financial Officer’s declaration
• Independent audit report for the year ended 30 June 2020

DPC 2019-20 Annual Report - Financial Statement

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Comprehensive operating statement for the financial year ended 30 June 2020

The accompanying notes form part of these financial statements.

Balance sheet as at 30 June 2020

The accompanying notes form part of these financial statements.

Cash flow statement for the financial year ended 30 June 2020

The accompanying notes form part of these financial statements.

Statement of changes in equity for the financial year ended 30 June 2020

The accompanying notes form part of these financial statements.

Notes to the financial statements for the financial year ended 30 June 2020

Note 1. About this report

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

The principal address of the department is:

Department of Premier and Cabinet
1 Treasury Place Melbourne VIC 3002

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

Basis of preparation

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

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

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

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

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

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

Where control of an entity is obtained during the financial period, its results are included in the comprehensive operating statement from the date on which control commenced. Where control ceases during a financial period, the entity’s results are included for that part of the period in which control existed.

The Office of the Victorian Information Commissioner was established under the Freedom of Information Amendment (Freedom of Information Commissioner) Act 2017 , included until 1 May 2020.

The Victorian Multicultural Commission was established under the Multicultural Victoria Act 2011.

The Victorian Veterans Council is an independent statutory body established under the Veterans Act 2005.

The Victorian Independent Remuneration Tribunal was established on 20 March 2019 under the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2020 .

Respect Victoria was established on 5 September 2018 under the Prevention of Family Violence Bill 2018.

The comparatives for 2019 include the Labour Hire Authority, which was a section 53(1)(b) inclusion only in 2019, and do not include Respect Victoria which was transferred into the department as a result of an administrative restructure effective from 1 July 2019.

The 2020 derecognition of the opening balance impact of the Labour Hire Authority in ‘Statement of changes in equity’, ‘Cash flow statement’ and ‘Reconciliation of movements in carrying amount of property, plant and equipment’ note (Note 5.1.1) are separately reported as a line item in those notes.

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

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

Compliance information

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

Where appropriate, those paragraphs in AASs applicable to not-for-profit entities have also been applied. Accounting policies selected and applied in these financial statements ensure the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring the substance of the underlying transactions or other events is reported.

Other accounting policies

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

Note 2. Funding of our services

Introduction

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

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

Structure of this section

2.1 Income that funds the delivery of services

2.2 Summary of compliance with annual parliamentary and special appropriations

Key accounting recognition and measurement criteria

Income is recognised to the extent that it is probable the economic benefits will flow to the department and the income can be reliably measured at fair value. Where applicable, amounts disclosed as income are net of returns, allowances, duties and taxes. Amounts of income where the department does not have control are separately disclosed as administered income (see Note 8.8 Administered items).

2.1 Income that funds the delivery of services

Appropriations

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

The department receives the following forms of appropriation:

n Output appropriations: Income from the outputs (i.e. services) the department provides to the government is recognised when those outputs have been delivered and the relevant minister has certified delivery of those outputs in accordance with specified performance criteria.

n Special appropriations: Income related to special appropriation is recognised when the expenditure relating to the amounts appropriated are paid by the department.

Grants

The department has determined that all grant income is recognised as income of not-for-profit entities in accordance with AASB 1058, except for grants that are reciprocal in nature (i.e. equal value is given back by the recipient of the grant to the provider) and are enforceable with sufficiently specific performance obligations. These are accounted for as revenue from contracts with customers in accordance with AASB 15.

The impact of initially applying AASB 1058 on the department’s grant revenue is described in Note 8.10. Due to the modified retrospective transition method chosen in applying AASB 1058, 2019 comparative information has not been restated to reflect the new requirements. The adoption of AASB 1058 did not have an impact on the Comprehensive operating statement or the Cash flow statement for the financial year.

Income from grants for the development and construction of the Service Victoria systems are recognised progressively as the asset is constructed. This aligns with the department’s obligation to construct the asset. The progressive percentage costs incurred is used to recognise income because this closely reflects the revenue earned by the department in constructing the asset. As the asset remains within the department this revenue is recognised under AASB 1058 rules.

Income from grants without any sufficiently specific performance obligations, or that are not enforceable, is recognised when the department has an unconditional right to receive cash that usually coincides with the department raising invoices.

Income received for specific purpose grants for on-passing is recognised simultaneously because the funds are immediately on passed to the relevant recipient entities on behalf of the Commonwealth Government.

Other income

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

n Trust fund income: Trust fund income mostly includes fees collected from the Aboriginal Cultural Heritage Register and income from other external parties. In 2019–20, the department has also obtained substantial grants through Emergency Management Victoria for bushfire recovery efforts.

n Sponsorship income: Sponsorship income includes receipts from external parties for the Australia Day Fund and Cultural Diversity Week.

n Resources received free of charge: Contributions of resources received free of charge or for nominal consideration are recognised at fair value when control is obtained over them, irrespective of whether these contributions are subject to restrictions or conditions over their use.

Resources received free of charge includes the net increases in the value of public records due to records transferred to and from the Public Record Office Victoria.

Previous accounting policy for the period ending 30 June 2019 relating to grant income

Grant income arises from transactions in which a party provides goods, services or assets (or extinguishes a liability) to the department without receiving approximately equal value in return. While grants may result in the provision of some goods or services to the transferring party, they do not represent a claim to receive benefits directly of approximately equal value (and are termed ‘non-reciprocal’ transfers). For non-reciprocal grants, the department recognises revenue when a grant is receivable or received.

n General purpose grants are mainly not subject to conditions regarding their use.

n Specific purpose grants for on-passing are grants received by the department to be passed on to another institution (e.g. local government or a private non-profit institution).

Other specific purpose grants during the current financial year include funds received from the Commonwealth for the Multicultural Affairs and Social Cohesion programs.

2.2 Summary of compliance with annual parliamentary and special appropriations

2.2.1 Summary of annual appropriations

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

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

Notes:

(i) The department is permitted under section 29 of the Financial Management Act to have certain income annotated to the annual appropriation. The income that forms part of a section 29 agreement is recognised by the department and the receipts paid into the Consolidated Fund as an administered item. At the point of income recognition, section 29 provides for an equivalent amount to be added to the annual appropriation.

(ii) Under section 30, the department may transfer an amount from one appropriation item to another in the current year. All expenses and obligations to which any section 30 transfer is applied must be reported in the financial year in which the transfer was made.

(iii) Section 32 constitutes the approved carryover of unapplied appropriations from the prior year to be applied against outputs in the current year.

(iv) Variances in output appropriations primarily related to transfer of appropriations by the department to other departments as part of machinery of government changes and no additional capital drawdown since the department’s capital spend is sourced from existing depreciation equivalent funding.

2.2.2 Summary of special appropriations

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

Note:

(i) In the 2019 published financial statements, capital appropriations of $5.04 million was classified as part of the Victorian Electoral Commission’s normal operational funding. This capital portion has been separately disclosed in this note for 2019 comparatives.

Note 3. Cost of delivering our services

Introduction

This section provides an account of the expenses incurred by the department in delivering its services.

The funds that enable the provision of services are disclosed in Note 2 and in this section.

Structure of this section

3.1 Expenses incurred in the delivery of services

Key accounting recognition and measurement criteria

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

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

3.1 Expenses incurred in the delivery of services

Employee expenses

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

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

Grant expenses

Grant expenses are contributions of the department’s resources to another party for specific or general purposes where there is no expectation that the amount will be repaid in equal value (either by goods or services). Grant expenses also include grants paid to entities within the department’s portfolio. These grants are reported in specific purpose grants for on-passing in Note 3.1.

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

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

Details of the department’s grants payments in 2019–20 can be viewed at www.dpc.vic.gov.au . This grants payments information on the department’s intranet page is not subject to audit by the Victorian Auditor-General’s Office.

Capital asset charge

A capital asset charge is a charge levied by the Department of Treasury and Finance (DTF) on the budgeted written down value of controlled non-current physical assets of the department. It aims to attribute to the department outputs, a cost of capital used in service delivery. Imposing this charge provides incentives for the department to identify and dispose of under-utilised or surplus non‑current physical assets.

Other operating expenses

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

Operating lease payments up until 30 June 2019 (including contingent rentals) are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset.

From 1 July 2019, the following lease payments are recognised as an expense on a paid or payable basis:

n short-term leases — leases with a term less than 12 months

n low-value leases — leases where the underlying asset’s fair value (when new, regardless of the age of the asset being leased) is no more than $10,000.

Note 4. Output information

Introduction

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

Structure of this section

4.1 Departmental outputs

4.2 Changes in departmental outputs

4.3 Departmental outputs — controlled income and controlled expenses

4.1 Departmental outputs

A description of the departmental outputs during the financial year ended 30 June 2020 and the objectives of these outputs is summarised below.

Strong policy outcomes

These outputs relate to providing advice and support to the Premier and Cabinet on all aspects of government policy. This includes advice on issues as they arise, policy coordination, research and analysis, consultation with stakeholders and leadership in long-term policy development. These outputs also relate to advice on investment relating to Victorian infrastructure, architecture and digital government. This involves driving the economy for Victoria and developing the effective use of technology to support productivity and competitiveness.

Engaged citizens

These outputs relate to coordinating and providing services and support to culturally, linguistically and religiously diverse communities such as Aboriginal Victorians, veterans and the equality portfolio. They promote social cohesion, enhanced engagement and greater opportunities for participation and contribution to the social, cultural and economic life of Victoria.

Professional public administration

These outputs relate to providing independent services and aim to ensure effective management, governance and support in the public sector.

4.2 Changes in departmental outputs

The following changes were made to the department’s outputs in 2019–20:

Transfer of public sector integrity entities to the Department of Justice and Community Safety (DJCS), and Infrastructure Victoria to DTF from 1 May 2020. These transactions are reflected in professional public administration and strong policy outcomes outputs respectively up to 30 April 2020.

4.3 Departmental outputs — controlled income and controlled expenses

Note 5. Key assets to support output delivery

Introduction

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

Structure of this section

5.1 Property, plant and equipment

5.2 Intangible assets

5.3 Depreciation and amortisation

5.4 Fair value determination

Key accounting recognition and measurement criteria

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

The cost of leasehold improvements is capitalised and depreciated over their estimated useful lives.

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

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

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

5.1 Property, plant and equipment

Notes:

(i) Land and buildings at both Government House and the Public Record Office Victoria were valued at 30 June 2017 by the Valuer-General of Victoria. The department does not hold any other land and buildings.

(ii) Public records held by the Public Record Office Victoria and other heritage assets were valued at 30 June 2017 by the Valuer-General of Victoria.

Land and buildings (including heritage buildings)

Land and buildings are classified as specialised land and specialised buildings due to restrictions on the use of these assets. They are reported at fair value. For valuation purposes, the market approach is used for specialised land, although this is adjusted for any community service obligations to reflect the specialised nature of the land being valued. Buildings are valued using the current replacement cost method. For more details refer to Note 5.4.

Leasehold improvements

Leasehold improvements are valued using the historical cost method. Historical cost is used as a close proxy to the current replacement cost due to its short useful life.

Office equipment and computer equipment

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

Motor vehicles (including motor vehicles under finance lease)

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

Public records and other heritage assets

These assets are reported at fair value. The valuation of these assets are based on a market approach. This involves using market prices and other relevant information generated by market transactions from comparable or similar assets (refer to Note 5.4 for details on valuation techniques).

Right-of-use assets acquired by lessees (under AASB 16 Leases from 1 July 2019)

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

n any lease payments made at or before the commencement date less any lease incentive received

n any initial direct costs incurred

n an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located.

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

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

The following table is a subset of buildings and vehicles included in Note 5.1 by right-of-use assets.

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

Notes:

(i) This balance represents the initial recognition of right-of-use assets recorded on the balance sheet on 1 July 2019 along with the transfer from finance lease assets (recognised under AASB 117 at 30 June 2019) to right-of-use assets (recognised under AASB 16 at 1 July 2019).

(ii) On 1 November 2019, the department transferred the right-of-use assets to the DTF Shared Service Provider. Details of the transfer are included in Note 8.6 Restructuring of administrative arrangements.

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

Carrying amount as at start of the year

5.2 Intangible assets

Key accounting recognition and measurement criteria

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

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

a) an intention to complete the intangible asset for use or sale

b) the ability to use or sell the intangible asset

c) the intangible asset will generate probable future economic benefits

d) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset

e) the ability to measure reliably the expenditure attributable to the intangible asset during its development.

Intangible produced assets with finite useful lives are amortised on a straight-line basis over their useful lives.

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

Intangible assets with finite useful lives are tested for impairment whenever an indication of impairment is identified.

5.3 Depreciation and amortisation

The increase in intangible assets amortisation is due to the amortisation of Service Victoria’s digital services platform.

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

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

Useful life of assets

Typical estimated useful lives for the different asset classes are included in the table below.

Note:

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

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

Impairment

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

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

The recoverable amount for most assets is measured at the higher of current replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

Assets subject to restriction on use

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

5.4 Fair value determination

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

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

n Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities

n Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

n Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

The department determines whether transfers have occurred between levels in the hierarchy by reassessing the categorisation at the end of each reporting period (based on the lowest level input that is significant to the fair value measurement as a whole).

There have been no transfers between levels during the period.

The Valuer‑General Victoria (VGV) is the department’s independent valuation agency. The department, in conjunction with VGV, monitors changes in the fair value of each asset through relevant data sources to determine whether a revaluation is required. If a valuation is required, then the department will engage with VGV to value those asset classes. However, every five years the department’s assets will be valued by professional valuers engaged through VGV. The last such valuation was conducted in June 2017.

The carrying amounts of all non-financial physical assets approximate to Level 3 fair value.

The reconciliation of all movements of Level 3 fair value assets is shown in Table 5.1.

The disclosures in connection with fair value determination for non-financial physical assets is as follows:

Land and buildings (including heritage buildings)

The department’s land and buildings are classified as specialised land and buildings for valuation purposes. The market approach is used to value specialised land, although this is adjusted for any community service obligations to reflect the use of the land being valued.

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

For the department’s specialised buildings, the current replacement cost method is used, adjusting for associated depreciation. Such adjustments are considered significant unobservable inputs and specialised buildings are classified as Level 3 fair value measurements.

The VGV performed an independent valuation of the department’s specialised land and specialised buildings. The effective date of the valuation was 30 June 2017.

Office equipment and computer equipment

Office equipment and computer equipment is valued using the historical cost method, which is considered a close proxy to the current replacement cost due to the short useful lives of these assets. Depreciation rates used in arriving at the current replacement costs are an unobservable input; as such, these assets are classified under Level 3 in the fair value measurement hierarchy.

There were no changes in valuation techniques during the current financial year.

For all assets measured at fair value, the current use is considered the ‘highest and best’ use.

Public records and other heritage assets

The valuation of public records and other heritage assets involves the use of market prices and other relevant information generated by market transactions involving comparable or similar assets. The assessment of similar assets in existence is performed by identifying comparable sales and undertaking research using subscription databases as well as referring to auction catalogues and other specialised libraries. Such a valuation technique will involve unobservable inputs to the fair value measurement, therefore public records and other heritage assets are classified under Level 3 in the fair value measurements hierarchy.

The VGV performed an independent valuation of the department’s public records and other heritage assets. The effective date of the valuation was 30 June 2017.

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

Note 6. Other assets and liabilities

Introduction

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

Structure of this section

6.1 Receivables

6.2 Payables

6.3 Other non-financial assets

6.4 Employee benefits

Key accounting recognition and measurement criteria

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

The department currently holds financial instruments that are recorded in the financial statements where the carrying amounts approximate to fair value, due to their short-term nature or with the expectation that they will be paid in full by the end of the 2020–21 reporting period.

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

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

Statutory payables are recognised and measured similarly to contractual payables but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from contracts.

Deferred capital grant revenue is recognised progressively when the underlying asset is constructed because this is when the department satisfies its obligations under the asset construction contract. The progressive percentage costs incurred in constructing the asset is used to recognise income because this closely reflects the progress completion of the asset. The department will defer the recognition of a portion of the grant received as a liability for the outstanding obligations. There were no deferrals in 2019–20 or the comparative year.

6.1 Receivables

Note:

(i) Represents the balance of available appropriations relating to providing outputs as well as funds available for capital purchases,
for which payments had not been disbursed at the balance date, and accordingly had not been drawn from the Consolidated Fund. This includes the timing impact of a grant received from Emergency Management Victoria that relates to Bushfire Recovery Victoria. The receivable was still outstanding as of 30 June 2020 and reflected in the contractual receivables amount above. As such, the payments for expenditure that had occurred up to 30 June 2020 were paid from the Consolidated Fund. This has reduced the statutory receivable from the Victorian Government. To manage this, the department has organised a section 37 advance from the public account to manage the temporary reduction in the Consolidated Fund.

The decrease from 30 June 2019 is also as a result of machinery of government transfers of agencies — Infrastructure Victoria to DTF and the Victorian Inspectorate, Independent Broad-based Anti-corruption Commission and Victorian Ombudsman to DJCS, which no longer forms part of department’s statutory receivable at 30 June 2020 (see Note 6.2).

6.1.1 Ageing analysis of contractual receivables

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

6.2 Payables

6.3 Other non-financial assets

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

6.4 Employee benefits

Key accounting recognition and measurement criteria

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

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

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

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

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

n undiscounted value — if the department expects to wholly settle within 12 months, or

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

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

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

Employment on-costs such as payroll tax, workers compensation and superannuation are not employee benefits. They are disclosed separately as a component of the provision for employee benefits.

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

Note 7. Our financing activities

Introduction

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

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

Structure of this section

7.1 Borrowings

7.2 Cash balances and cash flow information

7.3 Financial instruments and financial risk management

7.4 Commitments for expenditure

7.5 Trust account balances

7.1 Borrowings

Key accounting recognition and measurement criteria

Borrowing s are classified as financial instruments.

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

Leases recognised under the AASB16 lease accounting standard are initially measured at the present value of the lease payments unpaid at the commencement date, discounted using an interest rate implicit in the lease if that rate is readily determinable or at the department’s incremental borrowing rate.

Interest expenses include costs incurred in connection with the borrowing of funds or the notional interest cost in leases recognised under the AASB16 lease accounting standard. Interest expenses are recognised in the period in which they are incurred.

The department leases various properties, equipment and motor vehicles. The lease contracts are typically made for fixed periods of 1–10 years, with an option to renew the lease after that date.

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

In October 2019, the department agreed to centralised accommodation management services with the DTF Shared Service Provider. The effect of this transfer is disclosed in Note 8.6. From November 2019, accommodation costs have been recognised as an expense (Note 3.1 Other operating expenses) and the commitment recognised in Note 7.4. Right-of-use assets are presented in Note 5.1(a).

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

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

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

The following amounts are recognised in the ‘Cash flow statement for the financial year ending 30 June 2020’ relating to leases.

Leases

From 1 July 2019, the department considers whether contracts contain leases. A lease is defined as a contract that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. To apply this definition the department assesses whether the contract meets the following three key evaluations:

n whether the contract contains an identified asset that is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the department and for which the supplier does not have substantive substitution rights

n whether the department has the right to obtain substantially all of the economic benefits from using the identified asset throughout the period of use, considering its rights within the defined scope of the contract, and the department has the right to direct the use of the identified asset throughout the period of use

n whether the department has the right to make decisions in respect of ‘how and for what purpose’ the asset is used throughout the period of use.

This policy is applied to all contracts from 1 July 2019.

Separation of lease and non-lease components

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

Recognition and measurement of leases (under AASB 16 from 1 July 2019)

The lease liability is initially measured at the present value of the lease payments unpaid at the commencement date, discounted using the interest rate implicit in the lease if that rate is readily determinable or at the department’s incremental borrowing rate.

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

n fixed payments (including in-substance fixed payments) less any lease incentive receivable

n variable payments based on an index or rate, initially measured using the index or rate on the commencement date

n amounts expected to be payable under a residual value guarantee

n payments arising from purchase and termination options reasonably certain to be exercised.

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

When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.

Short-term leases and leases of low-value assets

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

Presentation of right-of-use assets and lease liabilities

The department presents right-of-use assets as ‘Property plant and equipment’ unless they meet the definition of investment property, in which case they are disclosed as ‘Investment property’ in the balance sheet. Lease liabilities are presented as ‘Borrowings’ in the balance sheet.

Recognition and measurement of leases (under AASB 117 until 30 June 2019)

In the comparative period, leases of property, plant and equipment were classified as either finance leases or operating leases.

The department determined whether an arrangement was or contained a lease based on the substance of the arrangement and required an assessment of whether fulfilment of the arrangement is dependent on the use of the specific asset(s) and the arrangement conveyed a right to use the asset(s).

Leases of property, plant and equipment where the department as a lessee had substantially all of the risks and rewards of ownership were classified as finance leases.

Finance leases were initially recognised as assets and liabilities at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease.

The leased asset is accounted for as a non-financial physical asset and depreciated over the shorter of the estimated useful life of the asset or the term of the lease.

Minimum finance lease payments were apportioned between the reduction of the outstanding lease liability and the periodic finance expense, which is calculated using the interest rate implicit in the lease and charged directly to the consolidated comprehensive operating statement.

Contingent rentals associated with finance leases were recognised as an expense in the period in which they were incurred.

Assets held under other leases were classified as operating leases and were not recognised in the department’s balance sheet. Operating lease payments were recognised as an operating expense in the Statement of comprehensive income on a straight-line basis over the lease term.

7.2 Cash balances and cash flow information

7.2.1 Cash balances

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

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

7.3 Financial instruments and financial risk management

Key accounting recognition and measurement criteria

Introduction

Financial instruments arise out of contractual agreements between entities that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the department’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables do not meet the definition of financial instruments because they do not arise under contract. The department’s statutory receivables are disclosed in Note 6.1.

From 1 July 2018, the department applies AASB 9 and classifies all its financial assets based on the business model for managing the assets and the assets’ contractual terms.

Categories of financial assets

Financial assets at amortised cost

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

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

Categories of financial liabilities

Financial liabilities at amortised cost

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

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

Derecognition of financial assets

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

Derecognition of financial liabilities

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

Offsetting financial instruments

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

Categories of financial assets and liabilities

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

The department’s main financial risks include credit risk, liquidity risk and market risk. The department manages these financial risks in accordance with its financial risk management policy.

Credit risk

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

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

Liquidity risk

Liquidity risk arises when the department is unable to meet its financial obligations as they fall due. The department’s exposure to liquidity risk is deemed insignificant based on a current assessment of risk, the nature and the size of the department, and a review of data from previous financial periods.

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

n maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short-term obligations

n careful maturity planning of its financial obligations based on forecasts of future cash flows.

Market risk

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

Interest rate risk

The department’s exposure to interest rate risk is insignificant and arises primarily through the department’s interest-bearing liabilities. The only interest-bearing liabilities are the motor vehicles under finance lease liabilities entered under fixed-rate contracts.

7.4 Commitments for expenditure

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

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

Notes:

(i) The capital commitments include obligations relating to Bushfire Recovery Victoria. Subsequent to the balance date Bushfire Recovery Victoria was transferred to DJCS with effect from 1 July 2020.

(ii) The department has an occupancy agreement, ending on 31 October 2021, with the DTF Shared Service Provider for office accommodation and other related services, including management fee, maintenance, electricity and other. A significant judgement was made that the occupancy agreement is a service contract (rather than a ‘lease’ as defined in AASB 16 Leases). The cost for the accommodation and other related services are expensed (Note 3.1 ― see ‘Other operating expenses’) based on agreed payments in the occupancy agreement.

7.5 Trust account balances

Trust accounts controlled by the department are shown above. These trust balances are reported as cash at bank in Note 7.2.1.

Notes:

(i) This relates to funds belonging to the Victorian Pride Centre Consortium. Upon completion of project milestones these funds were released to the consortium.

(ii) The Intergovernmental Trust was established during 2017–18 under section 19 of the Financial Management Act to record projects managed through inter-departmental fund transfers.

Note 8. Other disclosures

Introduction

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

It also provides information on administered items.

Structure of this section

8.1 Other economic flows

8.2 Responsible persons

8.3 Executive remuneration

8.4 Related parties

8.5 Remuneration of auditors

8.6 Restructuring of administrative arrangements

8.7 Contingent assets and contingent liabilities

8.8 Administered items

8.9 Third-party funds under management

8.10 Changes in accounting policies, other accounting policies and Australian Accounting Standards issued but not yet effective

8.11 Subsequent events

8.1 Other economic flows

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

n the disposal of leased motor vehicles

n the revaluation of the present value of the long service and recreational leave liability due to changes in the bond interest rate.

8.2 Responsible persons

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

Names

The persons who held the positions of Minister and of Accountable Officer in the department (from 1 July 2019 to 30 June 2020 unless otherwise stated) were:

The persons who acted in the positions of Minister and of Accountable Officer in the department (from 1 July 2019 to 30 June 2020) were:

Remuneration

Remuneration received or receivable by the Accountable Officer in connection with managing the department during the reporting period was in the range of $690,000–$699,999
(2019: $660,000–$669,999).

8.3 Executive remuneration

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

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

n Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.

n Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased.

n Other long-term benefits include long service leave, other long-service benefit or deferred compensation.

Notes:

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

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

8.4 Related parties

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

Related parties of the department, Office of the Victorian Information Commissioner, Victorian Multicultural Commission, Victorian Independent Remuneration Tribunal, Victorian Veterans Council and Respect Victoria include:

n all key management personnel and their close family members and personal business interests (controlled entities, joint ventures and entities they have significant influence over)

n all Cabinet ministers and their close family members

n all departments and public sector entities that are controlled and included in the whole of state consolidated financial statements.

Significant transactions with government-related entities

The department received funding from the Consolidated Fund totalling $726.9 million
(2019: $720.1 million).

Key management personnel

The department’s key management personnel from 1 July 2019 to 30 June 2020 include:

The Premier

The Hon Daniel Andrews MP

Portfolio ministers

The Hon James Merlino MP

Gavin Jennings MLC

Martin Foley MP

The Hon Richard Wynne MP

Robin Scott MP

Tim Pallas MP

Gabrielle Williams MP

The Hon Shaun Leane MP

The Hon Ros Spence MP

The Hon Danny Pearson MP

Secretary

Chris Eccles AO

Deputy Secretaries

Timothy Ada

Jeremi Moule

Kate Houghton

Brigid Monagle

Matthew O’Connor

Lill Healy

Elizabeth Langdon

Other members of the executive team

Toby Hemming — General Counsel

Andrew Campbell — Executive Director, Corporate Services

Administrative offices

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

n Justine Heazlewood — The Keeper of Public Records of Public Record Office Victoria

n Joanne de Morton — Chief Executive Officer of Service Victoria

n Lee Miezis — Chief Executive Officer of Bushfire Recovery Victoria (from 20 January 2020).

The compensation detailed below excludes the salaries and benefits of portfolio ministers. Minister’s remuneration and allowances are set by the Parliamentary Salaries and Superannuation Act 1968 and is reported by the Department of Parliamentary Services.

Transactions with key management personnel and other related parties

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

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

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

8.5 Remuneration of auditors

8.6 Restructuring of administrative arrangements

Transfers out of the department

In March 2020, the government issued an administrative order restructuring some of its activities via machinery of government changes. As part of the machinery of government restructure, the department (the transferor) relinquished the following areas, taking effect on 1 May 2020:

n Office of the Public Interest Monitor to DJCS (the transferee)

n Office of the Victorian Information Commissioner to DJCS (the transferee)

An order made under section 11 of the Public Administration Act, designated by the Premier, relinquished the Local Government Inspectorate to DJCS (the transferee), taking effect on 1 May 2020.

The following transfers from the department (the transferor) were based on the declaration pursuant to section 28(1) of the Public Administration Act, designated by the Secretary of the department, taking effect on 1 May 2020:

n Office of the General Counsel staff for provision and advice on integrity matters to DJCS (the transferee)

n policy and coordination functions for Infrastructure Victoria and the Parliamentary Budget Officer (PBO) and coordination functions for the Victorian Auditor General’s Office to DTF (the transferee).

In addition, following the department’s agreement to centralise accommodation management services with DTF, the right-of-use asset and lease liability recognised for the accommodation leases were transferred to DTF effective from 1 November as a transfer through equity, in accordance with the requirements of Financial Reporting Direction 119A Transfers through contributed capital.

Due to machinery of government changes, the portfolio department for the Victorian Inspectorate, Independent Broad-based Anti-corruption Commission and Victorian Ombudsman was transferred to DJCS and Infrastructure Victoria to DTF, taking effect on 1 May 2020.

Transfers into the department

The department (as transferee) also assumed responsibility for Respect Victoria from the Department of Health and Human Services (the transferor), taking effect on 1 July 2019.

Restructuring of administrative arrangements during the year are as follows.

Note:

(i) The net asset transfers were treated as a transfer of contributed capital provided by the State of Victoria.

8.7 Contingent assets and contingent liabilities

Key accounting recognition and measurement criteria

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

Contingent assets and liabilities are presented inclusive of GST.

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

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

Contingent liabilities are:

n possible obligations that arise from past events, whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, or

n present obligations that arise from past events but are not recognised because:

– it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligations, or

– the amount of the obligations cannot be measured with sufficient reliability.

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

Contingent liabilities

Non-quantifiable contingent liabilities — Victorian bushfires

During the period December 2019 to February 2020, Victoria experienced significant loss and damage to homes, farms, properties, community assets, roads and other infrastructure as a result of several large bushfires across parts of Victoria, including East Gippsland and North East Victoria.

To minimise the environmental, social and economic impact of the Victorian bushfires, a State-coordinated clean-up program was activated in January 2020 with a single contractor, Grocon Constructors Pty Ltd. The Victorian Government has agreed to demolish, remove and safely dispose of all applicable buildings destroyed or damaged beyond repair, regardless of insurance arrangements and is contributing towards the cost of the clean-up.

The costs of the clean-up will be jointly shared with the Commonwealth Government under the Commonwealth-State Disaster Recovery Funding Arrangements.

At this stage it is impractical to accurately quantify the financial effects of these contingent liabilities.

These bushfire recovery activities were conducted by Bushfire Recovery Victoria, which was an administrative office of the department until 30 June 2020. On 1 July 2020, Bushfire Recovery Victoria was transferred to DJCS as part of a machinery of government decision.

Contingent assets

There were no contingent assets during the reporting period (2019: nil).

8.8 Administered items

Key accounting recognition and measurement criteria

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

The below transactions and balances relate to administered items and are not included elsewhere in these financial statements because the department does not control these activities. However, the department remains accountable to the State for the transactions involving these administered resources even though it does not have the discretion to deploy these resources for its own benefit or for the achievement of its objectives. Some of the activities include disposal of vehicles under finance leases, the Public Service Commuter Club and other Treasury and departmental trusts.

Notes:

(i) This includes pass-through of administered special appropriation provided for the Victorian Electoral Commission.

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

Administered trust account balances

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

Notes:

(i) Opening balances have been realigned into relevant trust funds for better presentation.

(ii) The decrease is mainly due to transfer out of the Victorian Ombudsman and the Independent Broad-based Anti-corruption Commission to DJCS as a result of the machinery of government transfers.

(iii) This is a specific purpose trust account established under section 19 of the Financial Management Act.

8.9 Third-party funds under management

The department is responsible for transactions and balances relating to trust funds held on behalf of third parties external to the department.

Any earnings on the funds held pending distribution are also applied to the trust funds under management as appropriate.

The Victorian Veterans Council is the trustee for the following patriotic funds which are administered in accordance with Part 4 of the Veterans Act.

The Australian Legion of Ex Servicemen and Women Scholarship Fund No 1 ― Australian Nurses Memorial Centre

The fund was established in August 2006 to provide scholarships to students undertaking postgraduate studies in care of either older persons or palliative care at a recognised Victorian university. The funds are provided to the Australian Nurses Memorial Centre as the facilitator of the scholarships.

Australian Legion of Ex Servicemen and Women Scholarship Fund — Albert Coates Memorial Trust

The fund was established in August 2006 to provide scholarships to students undertaking postgraduate studies in care of either older persons or palliative care at a recognised Victorian university. The funds are provided to the Australian Nurses Memorial Centre as the facilitator of the scholarships.

War Widows and Widowed Mothers Association Scholarship Fund

This fund supports scholarships awarded by the Federation University Australia to students undertaking a Bachelor of Nursing or a Graduate Diploma of Midwifery.

The Victorian Blinded Soldiers’ Welfare Patriotic Fund

This fund was established in April 2013 to provide welfare assistance to veterans who have a visual impairment due to their service in defence of our nation, and to their dependants.

The EDA Patriotic Fund

This fund was established in 2013–14 to provide an annual prize of $500 for the Victorian Veteran Community Story Writing and Art Competition (discontinued in 2018), and to provide scholarships for Victorian students.

Australian United Ex-Services Association Patriotic Fund

This fund provides for yearly scholarships to train clinicians working at the Psychological Trauma Recovery Service at the Heidelberg Repatriation Hospital in cognitive processing therapy, with an associated year of supervision.

8.10 Changes in accounting policies, other accounting policies and Australian Accounting Standards issued but not yet effective

Changes in accounting policies

Leases

This note explains the effect of adopting AASB 16 (Leases) on the department’s financial statements.

The department has applied AASB 16 with a date of initial application of 1 July 2019.

The department has elected to apply AASB 16 using the modified retrospective approach, as per the transitional provisions of AASB 16 for all leases for which the department is the lessee. The cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented is not restated and is reported under AASB 117 and related interpretations.

Previously, the department determined at contract inception whether an arrangement is or contains a lease under AASB 117 and Interpretation 4 Determining whether an arrangement contains a Lease. Under AASB 16, the department assesses whether a contract is or contains a lease based on the definition of a lease as explained in Note 7.1.

As a lessee, the department previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the department. Under AASB 16, the department recognises right-of-use assets and lease liabilities for all leases except where an exemption is availed in respect of short-term and low-value leases.

On adoption of AASB 16, the department recognised lease liabilities in relation to leases that had previously been classified as operating leases under the principles of AASB 117. These liabilities were measured at the present value of the remaining lease payments, discounted using the department’s incremental borrowing rate as of 1 July 2019. On transition, right-of-use assets are measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the balance sheet at 30 June 2019.

The department has elected to apply the following practical expedients when applying AASB 16 to leases previously classified as operating leases under AASB 117:

n applied a single discount rate to a portfolio of leases with similar characteristics

n adjusted the right-of-use assets by the amount of AASB 137 onerous contracts provision immediately before the date of initial application, as an alternative to an impairment review

n applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term

n excluded initial direct costs from measuring the right-of-use asset at the date of initial application

n used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.

For leases that were classified as finance leases under AASB 117, the carrying amount of the right-of-use asset and lease liability at 1 July 2019 are determined as the carrying amount of the lease asset and lease liability under AASB 117 immediately before that date.

Impacts on financial statements

On transition to AASB 16, the department recognised $63.8 million of right-of-use assets and $63.8 million of lease liabilities. These right-of-use assets and liabilities were subsequently transferred to DTF effective 1 November 2019 as a transfer through equity.

Revenue from contracts with customers

The department has nil impact from transitional application of AASB 15.

Income of not-for-profit entities

In accordance with Financial Reporting Direction 122 requirements, the department has applied the transitional provision of AASB 1058, under a modified retrospective method with the cumulative effect of initially applying this standard against the opening retained earnings at 1 July 2019. Under this transition method, the department applied this standard retrospectively only to contracts and transactions that were not completed contracts at the date of initial application.

Comparative information has not been restated.

Note 2.1 (see under ‘Grants’) and Note 6.2 Payables include details about the transitional application of AASB 1058 and how the standard has been applied to revenue transactions.

The adoption of AASB 1058 did not have an impact on Other comprehensive income or the Cash flow statement for the financial year.

Other accounting policies — contributions by owners

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

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

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

Australian Accounting Standards issued but not yet effective

Certain new and revised accounting standards have been issued but are not effective for the 2019–20 reporting period. These accounting standards have not been applied to the department’s financial statements. The State is reviewing its existing policies and assessing the potential implications of these accounting standards, which includes:

n AASB 2018-7 Amendments to Australian Accounting Standards — Definition of Material

This AAS principally amends AASB 101 (Presentation of Financial Statements) and AASB 108 (Accounting Policies, Changes in Accounting Estimates and Errors). It applies to reporting periods beginning on or after 1 January 2020 with earlier application permitted. The department has not earlier adopted the standard.

The amendments refine and clarify the definition of material in AASB 101 and its application by improving the wording and aligning the definition across AASs and other publications. The amendments also include some supporting requirements in AASB 101 in the definition to give it more prominence and clarify the explanation accompanying the definition of material.

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

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

This AAS amends AASB 101 to clarify requirements for the presentation of liabilities in the statement of financial position as current or non-current. It initially applied to annual reporting periods beginning on or after 1 January 2022 with earlier application permitted however, the AASB has recently issued ED 301 Classification of Liabilities as Current or Non-Current — Deferral of Effective Date with the intention to defer the application by one year to periods beginning on or after 1 January 2023. The department will not early adopt the standard.

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

Several other amending standards and AASB interpretations have been issued that apply to future reporting periods but are considered to have limited impact on the department’s reporting. In general, these amended standards include editorial and reference changes that are expected to have insignificant impacts on public sector reporting and include:

n AASB 2018-6 Amendments to Australian Accounting Standards — Definition of a Business

n AASB 2019-1 Amendments to Australian Accounting Standards — References to the Conceptual Framework

n AASB 2019-3 Amendments to Australian Accounting Standards — Interest Rate Benchmark Reform

n AASB 2019-5 Amendments to Australian Accounting Standards — Disclosure of the Effect of New IFRS Standards Not Yet Issued in Australia

n AASB 2019-4 Amendments to Australian Accounting Standards — Disclosure in Special Purpose Financial Statements of Not-for-Profit Private Sector Entities on Compliance with Recognition and Measurement Requirements

n AASB 1060 General Purpose Financial Statements — Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (Appendix C)

n AASB 17 Insurance Contracts

n AASB 1060 General Purpose Financial Statements — Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (Appendix C).

8.11 Subsequent events

No significant events have occurred since 30 June 2020 that will have a material impact on the information disclosed in the financial statements.

Accountable Officer’s and Chief Financial Officer’s declaration

The attached financial statements for the Department of Premier and Cabinet have been prepared in accordance with Direction 5.2 of the Standing Directions of the Assistant Treasurer under the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, cash flow statement, statement of changes in equity and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2020 and financial position of the department at 30 June 2020.

At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

We authorise the attached financial statements for issue on 16 September 2020.

Andrew Davis

Chief Financial Officer

Department of Premier and Cabinet

Melbourne
16 September 2020

Chris Eccles AO

Secretary

Department of Premier and Cabinet

Melbourne
16 September 2020

Download this document for the full appendices, including:

Disclosure index

Appendix 1: Budget portfolio outcomes

Appendix 2: Other financial information

Appendix 3: Governance

Appendix 4: Workforce data

Appendix 5: Environmental performance

Appendix 6: Statutory compliance and other information

DPC 2019-20 Annual Report - Appendices

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Department of Premier and Cabinet

Secretary

1 Treasury Place
Melbourne 3002
(DX 210753)
(GPO Box 4912, Melbourne 3001)
Telephone: 03 9651 5111
Email: dp&c@dpc.vic.gov.au
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