Annual Report 2018-19 - IPFA€¦ · CHRIS ALLEN Managing Director, Transport and Industry ROB RITCHIE Managing Director, Energy and Water CATHERINE BLACK Managing Director, Cities

Annual Report2018-19

Enquiries about the content of this annual report and the use of this document are welcome to:

Director, Corporate, Finance and PeopleInfrastructure and Project Financing Agency

PO Box 6500 Barton ACT 2600 Email [email protected] Website www.ipfa.gov.au

The electronic version of this report is available at https://www.ipfa.gov.au/reports/reports

ISSN: 2209-8437 (Print) ISSN: 2209-8429 (Online)

Copyright information

© Infrastructure and Project Financing Agency 2019

With the exception of the Commonwealth Coat of Arms and where otherwise noted, all material presented in this document is provided under a Creative Commons Attribution 3.0 Australia licence.

The details of the relevant licence conditions are available on the Creative Commons website (creativecommons.org/licences/by/3.0/au) as is the full legal code for the licence (creativecommons.org/licences/by/3.0/au/legalcode).

This document must be attributed as the Infrastructure and Project Financing Agency Annual Report 2018-19

Visual design by Boheem Layout by Boheem Printing by Direct Impressions

The Hon Alan Tudge MP Minister for Population, Cities and Urban Infrastructure Parliament House CANBERRA ACT 2600

Dear Minister

I am pleased to present to you the annual report for the Infrastructure and Project Financing Agency for the year ending 30 June 2019.

The report has been prepared in accordance with section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and includes IPFA’s audited financial statements as required under section 43(4) of the PGPA Act.

In accordance with the Commonwealth Fraud Control Framework, the Infrastructure and Project Financing Agency has appropriate fraud risk assessment and plans in place.

Following the tabling of the Infrastructure and Project Financing Agency’s 2018-19 Annual Report, the report will be made available on the Infrastructure and Project Financing Agency’s website www.ipfa.gov.au

Yours sincerely

Leilani Frew Chief Executive Officer

Infrastructure and Project Financing Agency

PO Box 6500 Canberra, ACT 2600

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Our Vision

Enabling commercial excellence in Australian Government

infrastructure investment for the benefit of all Australians.

ContentsSECTION 1PAGE 03

Agency Overview

SECTION 2PAGE 11

Report on Performance

SECTION 3PAGE 27

Financial Statements

SECTION 4PAGE 51

ReferencesChief Executive Officer Review 03

About IPFA 06

Governance and Organisational Structure 08

Annual Performance Statement 12

Organisational Performance 20

Financial Performance 25

Independent Auditor's Report 30

Statement by the Chief Executive Officer and the Chief Financial Officer 32

Statement of Comprehensive Income 33

Statement of Financial Position 34

Statement of Changes in Equity 35

Cash Flow Statement 36

Notes 38

List of Requirements 52

Glossary 59

Index 60

2 INFRASTRUCTURE AND PROJECT FINANCING AGENCY

Agency Overview

SECTION 1

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I am pleased to present the 2018-19 Annual Report for the Infrastructure and Project Financing Agency (IPFA).

IPFA is a small agency with a big impact.

We support the Australian Government to implement its investment decisions and deliver on its infrastructure priorities and commitments. We do this by providing independent, whole-of-government commercial and financial advisory services, program management services and capability building to support Australian Government infrastructure investments.

In our first two years of operation, IPFA has provided advice on over $55.7 billion worth of Australian Government infrastructure investments.

Our client service-operating model recognises that we work with a diverse range of Australian Government clients as the preferred commercial and financial advisor for Ministers as well as Commonwealth departments and agencies.

2018-19 saw significant progress for IPFA.

Over the last year alone, we received 100 requests for our commercial and financial advisory services from 11 agencies.

This reflects that demand for our services has expanded beyond the central agencies and the Department of Infrastructure, Transport, Cities and Regional Development, to include a

broader range of Commonwealth clients, including the Department of the Environment and Energy, Department of Home Affairs, Department of Foreign Affairs and Trade, and Department of Innovation, Industry and Science.

The increased demand for our services also reflects the breadth of our service offering, which has expanded to include negotiation services, governance oversight and program management services.

Notwithstanding the expansion of IPFA’s client base and scope of work, our vision remains, to enable commercial excellence in Australian Government infrastructure investment for all Australians.

Chief Executive Officer ReviewLEILANI FREW CHIEF EXECUTIVE OFFICER

Our vision remains to enable commercial excellence in Australian Government infrastructure investment for all Australians.

4 INFRASTRUCTURE AND PROJECT FINANCING AGENCY4 INFRASTRUCTURE AND PROJECT FINANCING AGENCY

Notable highlights in 2018-19 where IPFA delivered on this vision include:

• Supporting the Australian Rail Track Corporation, and the Department of Infrastructure, Transport, Cities and Regional Development, on the Inland Rail Project, including terminals, rail connections and Public Private Partnerships

• Supporting the Department of Infrastructure, Transport, Cities and Regional Development in its City Deals program, notably City Deals in Darwin, Geelong, Hobart and Western Sydney

• Supporting the Department of the Environment and Energy in developing the Underwriting New Generation Investments program.

In addition to the commercial and financial advisory services we provide, we were established to strengthen the capability of the Commonwealth, recognising that a more sophisticated and expert public service can better support the Australian Government in its infrastructure investment decisions.

To that end, we delivered 11 knowledge sharing activities through our signature event series, which has been well supported by our Commonwealth colleagues, as well as other levels of government, and the private sector.

These achievements are underpinned by our open collaboration with stakeholders which has fostered strong, trusting partnerships with our state and territory counterparts, and the private sector.

I am proud to be leading IPFA, and would like to thank our Ministers and our colleagues across the Australian Public Service for your support over the last year.

I would also like to thank all of the IPFA team for their professional, high-quality contributions and dedication to our vision and purpose.

Together we remain committed to enabling commercial excellence in Australian Government infrastructure investment for the benefit all Australians.

Ms Leilani Frew Chief Executive Officer

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ANNUAL REPORT 2019 5

IPFA is an independent executive agency under the Public Service Act 1999. For the purposes of the Public Governance, Performance and Accountability Act 2013, IPFA is a non-corporate Commonwealth entity.

At the institutional level, during 2018-19 IPFA was an executive agency within the Infrastructure, Transport, Cities and Regional Development portfolio. On 8 August 2019, through an amendment to the Administrative Arrangements Orders, IPFA transferred to the Treasury Portfolio. IPFA’s Chief Executive Officer now reports to the Minister for Population, Cities and Urban Infrastructure, the Hon Alan Tudge MP.

About IPFA

Our Values

Excellence

Client-focused

Integrity

Dynamic

Collaboration

Providing valued and

independent, commercial and

financial advisory services

Delivering specialist

infrastructure project governance

and program management

services

Arranging high quality knowledge sharing forums and capability building

activities

We do this through three core activities:

Our PurposeAs the Australian Government’s independent infrastructure and project finance executive agency, our purpose is to:

• Provide independent commercial and financial advice to support the delivery of Australian Government infrastructure projects and programs

• Build the Australian Government’s capability to deliver its infrastructure priorities

• Strengthen confidence in the Australian Government’s investment through better-informed decisions, improved governance and investment management

Our RoleIPFA supports the Australian Government in making commercially astute decisions on nationally significant infrastructure projects and programs through the provision of independent, whole-of-government commercial and financial advisory services.

Our project and commercial advisory teams provide a suite of services that cover the full spectrum of infrastructure across the economy and all phases of a project or program’s lifecycle, from business case development through procurement and delivery.

We support our Australian Government clients in identifying and implementing Commonwealth funding and financing opportunities, and undertaking project and program management related activities, such as due diligence reviews, market sounding processes, project governance facilitation, project reviews and monitoring, complex commercial negotiations and financial and commercial risk analysis.

In particular, we work with our Australian Government clients to seek opportunities for private sector investment, government funds, public finance or returnable grants utilising our strategic investor principles:

• for “others” to fund projects where possible and therefore eliminate or minimise the need for Commonwealth funding

• to bridge market failure and/or risks through public finance or returnable capital, allowing whole or partial recovery of Commonwealth’s funding in the future

• to use conditional grants to ensure outcomes are delivered, even though a capital return may not be possible; or

• for a combination of the above.

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LEILANI FREW

Chief Executive Officer and Accountable AuthorityCommenced 11 December 2017

BILL BRUMMITT

Managing Director, Strategy,

Stakeholders and Communications

CHRIS ALLEN

Managing Director, Transport and

Industry

ROB RITCHIE

Managing Director, Energy and Water

CATHERINE BLACK

Managing Director, Cities and Social

GILES LAMB

Director, Corporate, Finance and People

Figure 1 Leadership team as at 30 June 2019


IPFA Governance FrameworkIPFA has a framework of policies and guidelines supported by Accountable Authority Instructions, operational guidelines, HR policies, processes and behaviours to ensure it delivers on its purpose and vision, conforms to its obligations and meets expectations of accountability and transparency.

IPFA Leadership TeamThe central element of IPFA’s corporate governance structure is its leadership team, which provides leadership in pursuing and achieving IPFA’s purposes and vision as outlined in its Corporate Plan.

IPFA’s leadership team is responsible for setting and monitoring IPFA’s strategic direction, overseeing the business of IPFA, identifying risks, and managing IPFA’s budget and workforce.

IPFA Corporate PlanIPFA’s 2018-21 Corporate Plan is measured and reported in the annual performance statement contained in this Annual Report.

IPFA’s Corporate Plans discuss IPFA and IPFA’s broader operating environment, and our performance framework including our targets, success measures and key performance indicators. The most recent Corporate Plan was released on 29 August 2019.

Risk Management FrameworkIPFA’s risk management and oversight is contained in IPFA’s Risk Management Policy and Framework, developed in accordance with the Commonwealth Risk Management Policy.

These provide IPFA the basis to identify, prevent or mitigate the impact of uncertainty on the achievement of IPFA’s purposes as stated in its Corporate Plan.

Governance & Organisational Structure

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Within the framework, IPFA has conducted strategic and operational risk assessments, and developed strategies to mitigate these risks.

IPFA takes an integrated approach to risk management, with consideration and management of risk forming a key component of our operational work. The treatment of IPFA’s identified risks takes into account IPFA’s defined risk appetite in its risk policy statement.

IPFA Audit CommitteeIn accordance with section 45 of the Public Governance, Performance and Accountability Act 2013 and Public Governance and Accountability Rule 17 – Audit Committees for Commonwealth entities, IPFA’s Audit Committee reviews and

gives advice and assurance about the appropriateness of IPFA’s systems and frameworks for:

• Financial Reporting

• Performance Reporting

• Risk Oversight and Management

• Internal Control.

IPFA’s Audit Committee comprises an independent chair and two independent members from both within and outside of the Australian Public Service.

The Audit Committee is directly accountable to IPFA’s Chief Executive Officer.

IPFA’s Audit Committee met three times in 2018-19, with a further meeting occurring on 2 July 2019. Its long term work program provides for four meetings per year.

Internal AuditIPFA has engaged contracted audit providers to undertake its internal audit function. A two year Strategic Audit Plan is in place, linked to the planning cycle of IPFA’s strategic objective, risks and forward planning. The Strategic Audit Plan is reviewed by IPFA’s Audit Committee.


SECTION 2

Report on Performance

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Annual Performance StatementAs the accountable authority of the Infrastructure and Project Financing Agency, I present the 201819 annual performance statement of the Infrastructure and Project Financing Agency, as required under paragraphs 39(1)(a) and 39(1)(b) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act); and section 16F of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule). In my opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the Infrastructure and Project Financing Agency for 2018-19, and comply with subsection 39(2) of the PGPA Act.

Leilani Frew Chief Executive Officer


IPFA remains committed to supporting the Australian Government in achieving the maximum benefit for taxpayer funds applied to nationally-significant infrastructure projects.

As the Australian Government’s independent infrastructure and project finance executive agency our purpose is to:

• Provide independent commercial and financial advice to support the delivery of Australian Government infrastructure projects.

• Build the Australian Government’s capability to deliver infrastructure priorities.

• Strengthen confidence in the Australian Government’s investment through better-informed decisions and investment management.

We achieve our purpose through our vision and goals and by working collaboratively with Australian Government stakeholders and agencies, state and territory counterparts, and our industry partners.

IPFA’s Vision is enabling commercial excellence in Australian Government infrastructure investment for the benefit of all Australians.

IPFA’s strategic goals are:

• Be sought after for our people and influential advice.

• Commercial Excellence in the Australian Government’s investment in and delivery of priority projects and infrastructure programs.

• To be a great place for people to work and develop.

• To have best practice corporate and governance arrangements.

2018-19 Corporate Plan Purpose

13ANNUAL REPORT 2019

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Performance Results

IPFA works to a single program outcome, as described in the IPFA Portfolio Budget Statement from the 2018-19 Budget:

“To leverage additional private sector investment in infrastructure and secure better returns from the Commonwealth’s investment by assisting the Government identify, assess, and broker financing opportunities for infrastructure and projects, including through engagement with Commonwealth entities,

State and Territory Governments and the Private Sector”

In the two years since establishment, IPFA has provided advice on over $55.7 billion worth of Australian Government infrastructure investments, embedding stronger commercial acumen across the Commonwealth.

IPFA’s advisory services to date have covered some of the biggest infrastructure projects being undertaken in Australia, including Inland Rail, the Western Sydney City Deal, Snowy 2.0 and the Underwriting New Generation Investments program.

14 INFRASTRUCTURE AND PROJECT FINANCING AGENCY14 INFRASTRUCTURE AND PROJECT FINANCING AGENCY

IPFA Performance Summary2018-19 CORPORATE PLAN MEASURES

1 Our partners seek our commercial and financial adviceThe value of IPFA and our advice will be evident when we are viewed as the trusted adviser and first point of call, rather than a mandated partner, and we are approached to be involved in decision-making processes for nationally-significant infrastructure projects from day one.Source: IPFA Corporate Plan 2018-22

KPI Our advice is proactively sought by government and agencies

2018-19 Target30% of our work is sought proactively through unsolicited approaches from agencies and/or government

ResultAchieved - 93%

In its second year of operation, IPFA embedded its client service model, providing trusted advice to Commonwealth agencies on major infrastructure projects and programs.

The outcome is testament to the commitment shown by IPFA staff in nurturing and maintaining client relationships.

We have seen strong engagement across the Australian Government for the services we provide to our client departments. The demand for our commercial and financial advisory services has grown significantly since IPFA’s establishment, reflecting the high quality of IPFA’s client focussed approach and service offering.

Initially our key clients were the Australian Government’s central agencies and key divisions in the Infrastructure,

Transport, Cities and Regional Development portfolio. Our clients have now expanded to include the Departments of the Environment and Energy; Industry, Innovation and Science; Home Affairs and Foreign Affairs and Trade.

Into the future, we anticipate additional demand from client agencies seeking IPFA’s expertise and are currently pursuing discussions with the Departments of Communications and the Arts, Defence and Health.

In 2018-19, 93% of our work originated from unsolicited approaches from stakeholders and our Australian Government clients, which is a testament to the commitment of IPFA’s staff in nurturing and maintaining strong client relationships, but more importantly, delivering highly valued advisory services.


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KPI Stakeholders are satisfied with our advice and involvement

2018-19 Target75% of our stakeholders are satisfied that we are improving outcomes and provide valued advice


IPFA received feedback from its stakeholders through a combination of three general client surveys as well as specific surveys following delivery of major pieces of advice. IPFA also received a number of pieces of unsolicited feedback from its stakeholders.

The result of 89% is a significant improvement on last year’s result (72%), and reflects the embedding of IPFA’s client service model.

2 Our involvement improves outcomes for and our advice is valued by all stakeholdersA successful engagement on a project will be evident if it can be seen that our advice was adopted and/or it is acknowledged that we played a significant role in supporting decision-making on delivery of the project.Source: IPFA Corporate Plan 2018-22

In our two years since establishment, IPFA has provided advice on over $55.7 billion worth of Australian Government infrastructure investments, covering some of the largest infrastructure undertakings in Australia, including Inland Rail, the Western Sydney City Deal, Snowy 2.0 and the Underwriting New Generation Investments program.

Driven largely by demand from our clients, our activities have expanded to support our clients in a number of areas, including representation on project governance committees, leading negotiations with project sponsors and assisting with financial asset administration and analysis.

IPFA has received overwhelmingly positive feedback for its services which is testament to the high quality of our advice and our role in supporting Australian Government infrastructure projects and programs.


KPI Delivery of agreed activities and positive stakeholder/market regard for our contribution

2018-19 Target100% of committed activities completed within time frames

ResultNot achieved - 92%

Our stakeholders have advised that timely delivery of advice is important to them, and our target of 100% reflects this.

The result of 92% highlights that IPFA’s work is set in an environment where the timeframe for delivery can change.

This year’s result of 92% reflects a significant improvement on last year’s result (64%).

2018-19 Target75% of feedback from external parties regarding our contribution is positive

ResultAchieved – 100%

In its second year of operation, IPFA’s increased profile led to significant external feedback being received. This included through the media, discussion forums and other stakeholders outside of the Australian Government.

3 Our contribution increases confidence in the Australian Government’s infrastructure investment decisions and processesA key area of success will be where external stakeholders acknowledge the value of having a more sophisticated Australian Government investor in infrastructure and how we have contributed to a greater level of confidence of stakeholders in the government’s decisions and processes.Source: IPFA Corporate Plan 2018-22

We surveyed our Australian Government clients to better understand the key attributes that they value in commercial and financial advisers. In addition to high quality advice, the timely provision of our advice and services were critical to enabling our clients to support implementation of the Australian Government’s infrastructure investment decisions and processes.

Our services are delivered in a dynamic environment where timeframes for delivery can change depending on a range of external factors.

Our significant improvement in the timely delivery of our services reflects our ongoing commitment to provide high quality services to our clients.

We also acknowledge that a key area of success for the Commonwealth is where external stakeholders and industry participants acknowledge the value of having a more commercially astute Australian Government and how we have contributed to a greater degree of confidence in the Australian Government’s decisions and processes.

We maintain strong, collaborative relationships with other Commonwealth infrastructure bodies, as well as our counterparts in the states and territories, local governments and our partners in the infrastructure business, finance and advisory sector.


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KPI Facilitation of quality knowledge sharing and development programs, events and forums

2018-19 Target10 knowledge sharing activities

ResultAchieved – 11 activities held.

These events focused on understanding aspects of infrastructure finance, governance and project delivery through the lens of practical implementation opportunities and challenges. These events were supported by expert speakers from state, territory and local government and private sector practitioners.

2018-19 Target75% satisfaction with quality of the activity


Feedback on activities was extremely positive. Reflecting this, IPFA looks forward to building on these events in 2019-20.

4 Our work strengthens the commercial and financial capability of the Australian Government

A more sophisticated and expert public service can better support the Australian Government in its infrastructure investment decisions, reduce dependency on external advisers and improve the retention of critical commercial knowledge. Source: IPFA Corporate Plan 2018-22

IPFA is strengthening commercial and financial capabilities across the Commonwealth, better equipping it to deliver better value for money for taxpayers, by delivering a program of knowledge sharing events and activities ( ), and by providing an active inbound and outbound secondment program with our client departments.

In 2018-19, we facilitated 11 (“ ”) events, which focused on understanding aspects of infrastructure finance, governance and project delivery through the lens of practical implementation opportunities and challenges.

These events are well supported by expert speakers from the Commonwealth, state, territory and local

governments, and private sector practitioners.

Our secondment program has also strengthened capability across the Commonwealth, with 3 inbound secondees joining IPFA from other Australian Government agencies, and 2 outbound secondments embedded into specific project teams in other Australian Government agencies.

As we strive for excellence and value accountability, IPFA’s 2019-20 – 2022-23 Corporate Plan, which was released on 29 August 2019, contains an additional two new strategic goals, which reflect our commitment to our people and best practice corporate health. These are

• To be a great place for people to work and develop.

• To have best practice corporate and governance arrangements.Our performance against these additional goals will be measured in next year’s annual report.


Analysis of Performance against Purpose

In 2018-19, IPFA embedded processes and capabilities to enable it to deliver on its key objectives. This included:

• Delivering advisory services for over $55.7 billion worth of Australian Government infrastructure investments across 11 departments and agencies.

• Completing key recruitment activities to establish a high performing team of expert advisors, and with it fostering a diverse, inclusive and high-performance workplace culture.

• Implementing a comprehensive program of knowledge sharing events (“ ”) to improve commercial and financial expertise across the Australian Government.

• Nurturing and expanding collaborative and trust-based stakeholder engagement and partnerships, across all levels of Government and also with project proponents, to support the delivery of appropriate advice.

IPFA’s performance results for 2018-19 have shown significant improvements as a result, particularly in relation to stakeholder satisfaction and timeliness. In addition, feedback from IPFA’s program of knowledge sharing events (“ ”) has been extremely positive.


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Organisational Performance

Human Resource Management

Employment StatisticsAs at 30 June 2019, IPFA had a total of 14 APS employees, including part-time and non-ongoing employees (based on headcount). Of these, 8 were based in IPFA’s Canberra Office, and 6 located in IPFA’s Sydney office.

A detailed profile of IPFA’s staffing profile is below.

Type Status Location Gender

Total Ongoing Non-Ongoing

Full time Part time Canberra Sydney Female Male Other

CEO 1 1 - 1 - - 1 1 - -

SES B1 1 1 - 1 - 1 - - 1 -

EL2 5 5 - 5 - 2 3 2 3 -

EL1 3 2 1 3 - 2 1 2 1 -

APS6 3 3 - 2 1 2 1 2 1 -

APS5 1 - 1 1 - 1 - 1 - -

Total 14 12 2 13 1 8 6 8 6 -

No IPFA employees as at 30 June 2019 have identified themselves as indigenous. IPFA had an average staffing level (ASL) of 13.1 during the year.

Classification Minimum ($) Maximum ($)

APS1* 45,900 49,980

APS2* 53,040 57,120

APS3* 59,160 64,260

APS4* 66,300 72,420

APS5 72,000 80,070

APS6 81,600 107,100

EL1 105,000 137,700

EL2 131,580 190,000

SES 234,000 234,000

* Note: IPFA did not engage any employees at the levels of APS1-4 during 2017-18

Employment ArrangementsIPFA’s non-SES staff are employed under common law contracts under the National Employment Standards, Public Service Act 1999 and the APS Award 2015.

In addition to the APS staff above, IPFA has a number of labour hire contractors engaged for their technical or specialist skills and capabilities.

Details of the base salary ranges applying to IPFA staff in 2018-19 are provided in the table on the right.


Non-salary benefitsIPFA provides its staff and contractors with a mobile phone and a tablet and/or laptop. These provide them with reasonable flexibility in how, when and where they perform their roles. This allows staff and contractors to balance their work, personal commitments and interests.

This flexibility is assisted by:

• Extensive use of mobile technology, including video conferencing, teleconferencing and Skype.

• Access to flexible working arrangements such as part time hours and compressed hours.

• Various forms of leave that can be accessed flexibly.

Where there is a demonstrated business need, staff may be provided with airline lounge memberships. In addition, staff may be reimbursed for costs such as professional membership fees, as well as health care costs and other wellbeing costs such as influenza vaccinations.

IPFA did not pay performance bonuses to staff in 2018-19.

Workforce Planning, Recruitment, Retention and TurnoverIPFA recognises that its people are its most valuable resources. The IPFA team has significant expertise and experience in infrastructure policy and reform, advisory and governance, sponsorship, development, procurement and delivery, corporate and project financing, and commercial and legal arrangements.

IPFA seeks to foster a diverse, inclusive, high performance and flexible working culture. This supports IPFA in attracting, engaging, enabling and retaining talented staff.

IPFA uses a variety of strategies to achieve this, notably through flexible working arrangements, targeted recruitment processes, and training and skills development.

During 2017-18, IPFA had an employee turnover rate of 15 per cent.

Ethical StandardsIPFA’s commitment to high ethical and professional standards underpins the quality

of its work. The independence of IPFA’s advice is a critical factor in IPFA’s support of the Australian Government and its agencies in their infrastructure investment analysis, and subsequent decision-making and delivery of nationally significant infrastructure projects.

IPFA staff and contractors are obliged to adhere to standards of integrity and behaviour governed by the APS legislative, regulatory and ethical framework, and reinforced in IPFA policies and procedures. Their accountability for performance, probity and ethical behaviour is aligned with the APS values and APS code of conduct as set out in the Public Service Act 1999.


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Disability ReportingIPFA is committed to a diverse workforce and provides reasonable adjustment and support to employees with a disability. Both its Canberra and Sydney offices are accessible for employees and visitors.

Reporting on disability is available from the Australian Public Service Commission’s State of the Service Report and the APS statistical bulletin. Both of these reports are available from www.apsc.gov.au.

Supporting Employees with Carer ResponsibilitiesIPFA fully supports employees with carer responsibilities. Carer support, consistent with the requirements under sections 7 and 8 of the Carer Recognition Act 2010, includes:

• Family-friendly work arrangements, such as access to and leadership in availing of flexible working arrangements.

• Specific leave provisions to support IPFA staff with caring responsibilities.

• A non-discriminatory definition of immediate family that recognises family members by blood, marriage, traditional kinship, current or former partner or de facto partner, and those in a genuine domestic or household relationship.

Work Health and SafetyIPFA is committed to providing a safe workplace for all staff and contractors. As part of this commitment, IPFA has:

• Developed work health and safety policies and procedures.

• Provided ergonomically appropriate workstation equipment, including sit-stand desks and dual monitors.

• Promoted the use of taxi and other car-with-driver services where employees are required to work longer hours or attend late-evening functions.

During 2018-19, there were no notifiable Work Health and Safety incidents that required reporting to Comcare. No directions or notices were given to IPFA by Comcare, and no work health and safety investigations were undertaken. IPFA has no active workers compensation claims as at 30 June 2019.


Fraud Prevention and ControlSection 10 of the Public Governance, Performance and Accountability Rule 2014, requires that Australian Government entities include a section detailing their compliance with the rule. In accordance with PGPA Fraud rule, IPFA has:

• prepared fraud risk assessments and fraud control plans.

• has in place appropriate fraud prevention, detection, investigation and reporting mechanisms that meet its specific needs.

• All reasonable measures have been taken all reasonable measures to appropriately deal with fraud relating to it.

No instances of fraud or potential fraud were detected during 2018-19.

IPFA’s Fraud and Corruption control policy and plan support IPFA’s risk management process.

Compliance with Financial LawIn 2018-19, IPFA had no significant issues under paragraph 19(1) (e) of the PGPA, relating to noncompliance with the finance law.

External ScrutinyDuring 2018-19, IPFA appeared at Senate Estimates, before the Senate Rural and Regional Affairs and Transport Legislation Committee, on 3 occasions:

• 22 October 2018.

• 18 February 2019.

• 8 April 2019.

No decisions made by a court or administrative tribunal or by the Australian Information Commissioner had or may have a significant effect on the operations of IPFA in 2018-19. IPFA was not subject of any agency capability reviews or reports by a Parliamentary Committee or the Commonwealth Ombudsman during 2018-19.

Other than for the audit of its financial statements under section 43 of the PGPA Act, IPFA was not subject to any reports or reviews by the Australian National Audit Office.

Environmental Protection and Biodiversity ConservationSection 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) requires that Australian Government entities include a section detailing their

environmental performance and contribution to ecologically sustainable development in their Annual Report.

IPFA’s day-to-day operations continue to look for practical ways to reduce its impact on the environment in the areas of energy efficiency and waste reduction. These include:

• With two offices across both Sydney and Canberra, supporting the use of electronic solutions such as video-conferencing, telephone conferencing and Skype, as far as possible for meetings and conferences.

• Minimising paper usage through adoption of digital signatures on routine forms and internal correspondence, as well as adopting electronic storage procedures for key records.

• Providing recycling bins and using recycled products and materials where practical.

• Reducing power consumption, by having lights automatically dim in workplaces following periods of inactivity.

Other Management Issues


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Information Publication SchemeIPFA received no requests for information under the Freedom of Information Act 1982 during 2018 - 19.

Information to be published in accordance with the Information Publication Scheme, including

any future requests under the Freedom of Information Act 1982, will be made available at the IPFA website https://www.ipfa.gov.au/privacy-legals#freedom-of-information.

REMUNERATION PAID TO KEY MANAGEMENT PERSONNEL 2018-19

$Short-term benefits

Post-employment benefits

Other long-term benefits

Termination benefits

Total remuneration

Name Position Title

Base Salary Bonuses Other benefits and allowances

Superannuation Contributions

Long service leave


Leilani Frew CEO

436,490.89 - - 20,531.13 10,721.55 - - 467,743.58

REMUNERATION PAID TO SENIOR EXECUTIVES 2018-19

$Short-term benefits

Post-employment benefits


Termination benefits

Total remuneration

Name Position Title

Base Salary Bonuses Other benefits and allowances

Superannuation Contributions

Long service leave


William Brummitt

Managing Director

236,729.61 - - 39,932.17 5,769.86 - - 282,431.64

Executive Remuneration


Financial Performance

The work of IPFA is funded by Government appropriation. As a non-corporate Commonwealth entity, IPFA aims to operate to a break even position, rather than to make a surplus.

Overview of Financial Performance and Future Financial ViabilityIPFA is operating within its appropriation and has sufficient cash reserves to fund its debts as and when they fall due. In monitoring financial performance, IPFA excludes the impact of depreciation and amortisation expenses, consistent with the net cash appropriation arrangements introduced by the Government in 2010-11.

In 2018-19, after adjusting for depreciation and amortisation expenses, IPFA recorded an operating deficit of $202k, against an approved budgeted deficit of $912k. IPFA has received approval to carry $650k from prior year surpluses into 2019-20, which will be reflected in its next Budget Statements. This reprofiling of

expenses between is to support IPFA as embeds operations particularly from the 2018-19 Mid Year Economic and Fiscal Outlook measure “Supporting Infrastructure Investment – additional resourcing” first two years’ work program.

2022-23Forward year 3

6,000

4,500

3,000

1,500

02018-19

Actual2019-20Budget



Expense CategoriesTotal expenses ($,000)

Employees50%

Other2%

Goods and Services 48%


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IPFA budgets to remain financial sustainable into the forward estimates During 2018-19, IPFA procured much of its back office operations from other entities (notably the Department of the Prime Minister and Cabinet and the Department of Infrastructure, Transport, Cities and Regional Development) and the private sector. This enabled IPFA to avail of economies of scale in the delivery of these services, and also purchase technical services only as required.

EXPENSE IMPACTSIPFA spends most of its budget on employees and contract services. IPFA is split between two roughly equivalent-sized offices, in Canberra and Sydney.

IPFA’s total expenses for 2018-19 was $5,241k.

REVENUE IMPACTSIPFA received the vast majority of its income from appropriations from Government. An amount of $48,500 was received in the form of Resources Received Free of Charge, and relates to the provision of audit services from the Australian National Audit Office.

FINANCIAL POSITIONAs at 30 June 2019, IPFA had net equity of $816k, representing $1,663k of assets and $847k of liabilities. Most of IPFA’s

assets and liabilities are of a financial nature, with the largest asset balances being cash and receivables (including appropriation receivables), and liabilities relating to employee provisions and supplier payables.

ENTITY RESOURCE STATEMENTThe entity resource statement provides additional information about the various funding sources that IPFA may draw upon during the year.

Table 1 Resource Statement

A. Appropriation Act (No.1) 2018-19

2018-19 Actual available

appropriation

2018-19 Payments made

2018-19 Remaining

balance

$'000 $’000 $'000

Departmental

Annual appropriations - ordinary annual services A

Prior year appropriations available 885 885 -

Departmental Appropriation 4,962 4,198 764

Total - ordinary annual services 5,847 5,083 764

Total departmental resourcing 5,847 5,083


PURCHASING AND PROCUREMENTIPFA’s purchasing activities were undertaken in accordance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Commonwealth Procurement Rules.

The CEO’s Accountable Authority Instructions (AAIs) support these by providing further direction to IPFA staff and contractors when conducting procurement activities on behalf of IPFA.

No contracts in excess of $10,000 (including GST) were

exempted by IPFA’s CEO from being published on AusTender on the basis that they would disclose exempt matters under the Freedom of Information Act 1982.

IPFA held no contract to the value of $100,000 or more that did not provide for the Auditor-General to have access to the contractor’s premises.

CONSULTANTSIPFA engages consultants where specialist or technical expertise is required. Consultants are typically engaged in Commonwealth agencies to:

• Investigate or diagnose a defined issue or problem

• Carry out independent reviews or evaluations

• Provide objective advice

• Provide recommendations to assist in decision making.

IPFA’s decision to engage consultants is assessed to ensure value for money and compliance with the PGPA Act, the Commonwealth Procurement Rules and IPFA’s Accountable Authority Instructions.

Table 2 Expenses by Outcome

2018-19 2018-19 2018-19

Budget 1 Actual Variation

$’000 (a) (b) (a) - (b)

Program 1.1: Infrastructure and Project Financing Agency

Departmental expenses

Departmental appropriation 2 4,198 5,110 (912)

Expenses not requiring appropriation in the Budget year 3 27 131 (104)

Total for program 1.1 4,225 5,241 (1,016)

Total expenses for Outcome 1 4,225 5,241 (1,016)

2017-18 2018-19

Average staffing level (number) 7 13

1. Full year budget as published in the 2018-19 Portfolio Budget Statements

2. Departmental appropriation combines ordinary annual services (Appropriation Act No.s 1 and 3) and retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013

3. Expenses not requiring appropriation in the Budget year includes depreciation and amortisation expenses, amounts expensed using appropriations from prior years, as well as an amount relating to Audit Services provided by the Australian National Audit Office


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During 2018-19, no new consultancy contract was entered into. In addition, one ongoing consultancy contract was active during 2018-19, involving total actual expenditure of $27k.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.

PROCUREMENT INITIATIVES TO SUPPORT SMALL BUSINESSIPFA supports small business participation in the Commonwealth Government

procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website.

IPFA’s procurement practices support SMEs by the use of the Commonwealth Contracting Suite for low-risk procurements under $200,000. This reduces process costs for SMEs by creating consistency and simplifying liability, insurance and indemnity requirements. Practices also support the use of electronic systems or other processes to facilitate on-time payment, including the use of credit cards.

ADVERTISING AND MARKET RESEARCHIPFA did not undertake media advertising campaigns and therefore did not make any payments to advertising agencies in 2017-18. IPFA did not make any payments to direct mail organisations or polling organisations.

GRANT PROGRAMSIPFA does not administer any grant programs.


SECTION 3

Financial StatementsFor the period ending 30 June 2019

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GPO Box 707 CANBERRA ACT 260119 National Circuit BARTON ACTPhone (02) 6203 7300 Fax (02) 6203 7777

INDEPENDENT AUDITOR’S REPORT

To the Minister for Population, Cities and Urban Infrastructure

Opinion

In my opinion, the financial statements of the Infrastructure and Project Financing Agency (‘the Entity’) for the year ended 30 June 2019:

(a) comply with Australian Accounting Standards – Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and

(b) present fairly the financial position of the Entity as at 30 June 2019 and its financial performance and cash flows for the year then ended.

The financial statements of the Entity, which I have audited, comprise the following statements as at 30 June 2019 and for the year then ended:

• Statement by the Chief Executive Officer and Chief Financial Officer; • Statement of Comprehensive Income; • Statement of Financial Position; • Statement of Changes in Equity; • Cash Flow Statement; and • Notes to the financial statements, comprising a Summary of Significant Accounting Policies and other

explanatory information.

Basis for opinion

I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Entity in accordance with the relevant ethical requirements for financial statement audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Accountable Authority’s responsibility for the financial statements

As the Accountable Authority of the Entity, the Chief Executive Officer is responsible under the Public Governance, Performance and Accountability Act 2013 (the Act) for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards – Reduced Disclosure Requirements and the rules made under the Act. The Chief Executive Officer is also responsible for such internal control as the Chief Executive Officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Chief Executive Officer is responsible for assessing the ability of the Entity to continue as a going concern, taking into account whether the Entity’s operations will cease as a result of an administrative restructure or for any other reason. The Chief executive Officer is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.


Auditor’s responsibilities for the audit of the financial statements

My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority;

• conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern; and

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Accountable Authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Australian National Audit Office

Lorena Skipper

A/g Executive Director

Delegate of the Auditor-General

Canberra

11 September 2019


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Statement of Comprehensive IncomeFOR THE PERIOD ENDED 30 JUNE 2019

2019 2018Original Budget

Notes $ $ $

NET COST OF SERVICES

EXPENSES

Employee benefits 1.1A 2,597,027 1,625,986 2,327,000

Suppliers 1.1B 2,525,805 1,714,826 2,756,000

Depreciation 2.2A 82,992 27,967 27,000

Write-Down and Impairment of Other Assets 2.2A 35,037 - -

Total expenses 5,240,861 3,368,779 5,110,000

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 1.2A 28,431 23,353 -

Other Revenue Resources received free of charge - Remuneration of auditors

48,500 46,700 -

Total own-source revenue 76,931 70,053 -

Total own-source income 76,931 70,053 -

Net cost of services (5,163,930) (3,298,726) (5,110,000)

Revenue from Government 4,962,000 4,212,000 4,198,000

Total comprehensive (loss)/income (201,930) 913,274 (912,000)

The above statement should be read in conjunction with the accompanying notes.


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Notes $ $ $

ASSETS

Financial assets

Cash and cash equivalents 758,371 519,746 -

Trade and other receivables 2.1 842,490 1,094,058 262,000

Total financial assets 1,600,861 1,613,804 262,000

Non-financial assets

Property, plant and equipment 2.2 26,900 144,930 67,000

Prepayments 35,159 23,438 -

Total non-financial assets 62,059 168,368 67,000

Total assets 1,662,920 1,782,172 329,000

LIABILITIES

Payables

Suppliers 202,351 262,506 -

Other payables 2.3 151,171 51,940 -

Total payables 353,522 314,446 -

Provisions

Employee provisions 4.1 493,054 449,452 262,000

Total provisions 493,054 449,452 262,000

Total liabilities 846,576 763,898 262,000

Net assets 816,344 1,018,274 67,000

EQUITY

Contributed equity 105,000 105,000 105,000

Retained surplus 711,344 913,274 (38,000)

Total equity 816,344 1,018,274 67,000



Statement of Financial PositionAS AT 30 JUNE 2019



Statement of Changes in EquityFOR THE PERIOD ENDED 30 JUNE 2019

Accounting PolicyEquity Injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.


Notes $ $ $

CONTRIBUTED EQUITYOpening balanceBalance carried forward from previous period 105,000 - 105,000

Contributions by owners

Equity injection - Appropriations - 105,000 -

Total transactions with owners - 105,000 -

Closing balance as at 30 June 105,000 105,000 105,000

RETAINED EARNINGSOpening balanceBalance carried forward from previous period 913,274 - 874,000

Comprehensive income

Surplus / (deficit) for the period (201,930) 913,274 (912,000)

Total comprehensive income (201,930) 913,274 (912,000)

Closing balance as at 30 June 711,344 913,274 (38,000)

TOTAL EQUITYOpening balanceBalance carried forward from previous period 1,018,274 - 979,000

Comprehensive income

Surplus for the period (201,930) 913,274 (912,000)

Total comprehensive income (201,930) 913,274 (912,000)

Transactions with owners

Contributions by owners

Equity injection - Appropriations - 105,000 -

Total transactions with owners - 105,000 -

Closing balance as at 30 June 816,344 1,018,274 67,000



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Budget Variances CommentaryThe total expenses on the statement of comprehensive income only have a minor variance between budget and actual, which is comprised by higher employee benefits, offset by the lower suppliers. IPFA was approved at 2018-19 MYEFO for extra FTE and associated funding. As a result, higher employee benefits were driven by extra staff. The variance in supplier expenses was a result of lower than anticipated contractor expenses, recruitment and travel. Depreciation increased when compared to budget due to a change in leasing arrangements. This resulted in accelerated depreciation that was unknown at the time of the budget. In the statement of financial position, trade and other receivables variance is mainly due to higher appropriation receivable in the context of higher MYEFO appropriation. No budgeted figures were provided for suppliers and other payables.


Cash Flow StatementFOR THE PERIOD ENDED 30 JUNE 2019

Notes2019

$2018

$

Original Budget

$

OPERATING ACTIVITIES

Cash received

Appropriations 5,083,000 3,327,000 5,083,000

Sale of goods and rendering of services 47,825 - -

Net GST Received 189,806 58,426 -

Total cash received 5,320,631 3,385,426 5,083,000

Cash used

Employees 2,336,712 1,241,078 2,327,000

Suppliers 2,745,294 1,556,705 2,756,000

Total cash used 5,082,006 2,797,783 5,083,000

Net cash from operating activities 238,625 587,643 -

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and equipment - 172,897 -

Total cash used - 172,897 -

Net cash used by investing activities - (172,897) -

FINANCING ACTIVITIES

Cash received

Contributed Equity - 105,000 -

Total cash received - 105,000 -

Net cash from financing activities - 105,000 -

Net increase in cash held 238,625 519,746 -

Cash and cash equivalents at the beginning of the reporting period 519,746 - -

Cash and cash equivalents at the end of the reporting period 758,371 519,746 -



The Basis of PreparationThe financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

a) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR); and

b) Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars.

New Australian Accounting Standards All new, revised and amending standards and interpretations that were issued by the Australian Accounting Standards Board (AASB) prior to the sign-off date and are applicable to the current reporting period did not have a material effect on the entity’s financial statements.

TaxationIPFA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Events After the Reporting PeriodThere are no known events occuring after the reporting period that could impact the financial statements.

Overview


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Departmental Financial PerformanceThis section analyses the financial performance of Infrastructure and Project Financing Agency for the year ended 30 June 2019

Note 1.1 Expenses2019

$2018

$Note 1.1A: Employee Benefits1

Wages and salaries 2,149,914 1,210,024

Superannuation

Defined contribution plans 188,792 80,835

Defined benefit plans 93,444 90,953

Leave and other entitlements 159,143 243,505

Other employee benefits 5,734 670

Total employee benefits 2,597,027 1,625,986

1. The comparable year figures at subtotal level are different from the published Annual Report. There is a reclassification between Wages and salaries and Leave and other entitlements. The split of superannuation expenses between defined contribution plans and defined benefit plans was reported incorrectly in 2018 financial statements. This has been rectified in the above table. The total employee benefits amount in 2018 remains the same and this does not affect the 2019 balance.

Accounting PolicyAccounting policies for employee related expenses is contained in the People and Relationships Section.

Note 1.1B: Suppliers2 Goods and servicesContractors 1,073,894 986,406

Consultants and contracted services 340,312 53,267

Travel 195,469 109,641

Staff related expenses 256,589 138,014

ICT services 115,500 80,155

Other goods and services 269,011 125,900

Total goods and services supplied or rendered 2,250,775 1,493,384

2. In 2019, the sub-categories under employee benefits and suppliers were reclassified to meet changing business needs. This reclassification has affected the 2018 subtotal amounts between employee benefits and suppliers, as well as the amounts for some sub-categories. However total expenses remain the same.

Goods supplied 28,308 35,559

Services rendered 2,222,467 1,457,825

Total goods and services supplied or rendered 2,250,775 1,493,384

Other suppliers

Operating lease rentals 262,478 205,353

Workers compensation expenses 12,552 16,089

Total other suppliers 275,030 221,442

Total suppliers 2,525,805 1,714,826

Operating lease rentals relate to payments made to the Department of Prime Minister and Cabinet (PM&C) under a sub-lease arrangement for accommodation in premises located in Canberra and Sydney that are leased by PM&C. The agreement does not have a specified term and is cancellable by either party. Under the terms of the sub-lease IPFA reimburses PM&C costs that are payable to the lessor.


Note 1.2 Own-Source Revenue and Gains

2019 $

2018 $

OWN-SOURCE REVENUE

Note 1.2A: Sale of goods and rendering of services

Rendering of Services 26,463 -

Other Non-Taxation Revenue 1,968 23,353

Total sale of good and rendering of services 28,431 23,353

Accounting PolicyRevenue from rendering of services is recognised when IPFA acknowledges that the services have been performed.The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Revenue from Government

Accounting PolicyRevenue from Government Amounts appropriated for departmental appropriations for the year are recognised as Revenue from Government when the entity gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts. Funding received or receivable from non-corporate Commonwealth entities (appropriated to the non-corporate Commonwealth entity as a corporate Commonwealth entity payment item for payment to this entity) is recognised as Revenue from Government by the corporate Commonwealth entity unless the funding is in the nature of an equity injection or a loan.


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Departmental Financial PositionThis section analyses Infrastructure and Project Financing Agency‘s assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

Note 2.1 Financial Assets

Accounting Judgements and EstimatesFinancial assets are assessed for impairment at the end of each reporting period.

Accounting PolicyReceivablesCollectability of debts is reviewed as at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable. Credit terms for receivables were within 30 days.

2019 $

2018 $

Note 2.1: Trade and Other Receivables

Appropriations receivables

Appropriations receivables 764,000 885,000

Total appropriations receivables 764,000 885,000

Goods and services receivables

Goods and services 18,558 155,901

GST receivable from the Australian Taxation Office 59,932 53,157

Total goods and services receivables 78,490 209,058

Total trade and other receivables (gross) 842,490 1,094,058

Less impairment allowance - -

Total trade and other receivables (net) 842,490 1,094,058


Leasehold Improvements

$

Plant and equipment

$Total

$

As at 1 July 2018

Gross book value 129,117 43,780 172,897

Accumulated depreciation, amortisation and impairment (20,885) (7,082) (27,967)

Total as at 1 July 2018 108,232 36,698 144,930

Impairments recognised in net cost of services (26,165) (8,872) (35,037)

Depreciation and amortisation (61,978) (21,014) (82,992)

Total as at 30 June 2019 20,089 6,812 26,900

Total as at 30 June 2019 represented by

Gross book value 129,117 43,780 172,897

Accumulated depreciation, amortisation and impairment (109,028) (36,968) (145,996)

Total as at 30 June 2019 represented by 20,089 6,812 26,900

Leasehold improvements relate to IPFA’s premises in Sydney NSW. These premises have been provided to IPFA by the Department of Prime Minister and Cabinet (PM&C), which has obtained under a separate sub-lease arrangement. The arrangement does not have a specified term and is cancellable by either party. Under the terms of the sub-lease IPFA reimburses PM&C costs that are payable to the lessor.

IPFA became aware in June 2019 that the current lease in Sydney will be shortened. The original lease expires on 30 March 2020 however IPFA has been advised to vacate on 30 September 2019. This circumstance requires the impairment to the asset. IPFA has estimated that the asset will not be recoverable. Impairments has been calculated.

As at 30 June 2019 the agency has no contractual commitments for the purchase of additional property, plant and equipment.

Note 2.2 Non-Financial Assets

Note 2.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment


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Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

Asset Recognition ThresholdPurchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

RevaluationsFollowing initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised

in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

DepreciationDepreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the entity using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2019 2018Leasehold improvements

Lease terms

Lease terms

Plant and equipment

2 to 6 years

2 to 6 years

ImpairmentAll assets were assessed for impairment at 30 June 2019. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs of

disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its current replacement cost.

DerecognitionAn item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Fair valueAll property, plant and equipment are measured at fair value in the Statement of Financial Position. When estimating fair value, market prices (with adjustment) were used where available. Where market prices were not available, current replacement cost was used (ie level 3).

Level 3 measurements use inputs to estimate fair value where there are no observable market prices for the assets being valued.

The future economic benefits of IPFA’s plant and equipment and leasehold improvements are not primarily dependent on their ability to generate cash flows. IPFA has not disclosed quantitative information about the significant unobservable inputs for the level 3 measurements in these classes.

Accounting Policy


2019 $

2018 $

Note 2.3: Other Payables1

Salaries and wages 80,483 11,252

Superannuation 12,251 1,440

PAYG Payable 58,438 39,248

Total other payables 151,171 51,940

1. 2018 Balance of Other has changed as a result of reclassification between account categories to meet changing business needs.

Amounts are expected to be settled in no more than 30 days.

Note 2.3 Payables


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FundingThis section identifies the Infrastructure and Project Financing Agency‘s funding structure.

Note 3.1 Appropriations Note 3.1A: Annual Appropriations ('Recoverable GST exclusive')

Annual Appropriations for 2019

Note 3.1B: Unspent Annual Appropriations (‘Recoverable GST exclusive’)

Annual Appropriation1

$

Adjustments to appropriation

$

Total appropriation

$

Appropriation applied in 2019

$Variance2

$

Departmental

Ordinary Annual Services 4,962,000 - 4,962,000 5,083,000 (121,000)

Other services

Equity Injections - - - - -

Total departmental 4,962,000 - 4,962,000 5,083,000 (121,000)

Annual Appropriation1

$

Adjustments to appropriation

$

Total appropriation

$

Appropriation applied in 2019

$Variance2

$

Departmental

Ordinary Annual Services 4,212,000 - 4,212,000 3,327,000 885,000

Other services

Equity Injections 105,000 - 105,000 105,000 -

Total departmental 4,317,000 - 4,317,000 3,432,000 885,000

1. No amount of the appropriation has been quarantined for administrative purposes.2. Variance in the appropriation applied primarily due to timing issues associated with the establishment of IPFA during 2017-18.3. Departmental Capital Budgets are appropriated through Appropriation Acts (No. 1, 3, 5). They form part of ordinary annual services, and are not

separately identified in the Appropriation Acts.

Annual Appropriations for 2018

2019 $

2018 $

Departmental

Appropriation Act (No. 3) 2018-19 764,000

Appropriation Act (No. 1) 2017-18 - 885,000

Total departmental 764,000 885,000


Accounting policyLiabilities for short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

LeaveThe liability for employee benefits includes provision for annual leave and long service leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the entity’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the short hand method as at 30 June 2019. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and RedundancyProvision is made for separation and redundancy benefit payments where applicable. The entity recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

SuperannuationThe entity's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), or the PSS accumulation plan (PSSap), or other superannuation funds held outside the Australian Government.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The entity makes employer contributions to the employees' defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The entity accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions.

Accounting Judgements and EstimatesThe long service leave provision has been calculated by applying the shorthand method detailed in the Resource Management Guidance No.125: Commonwealth Entities Financial Statements Guide.

People and RelationshipsThis section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

Note 4.1 Employee Provisions

2019 $

2018 $

Leave 493,054 449,452

Total employee provisions 493,054 449,452


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Note 4.3 Related Party Disclosures

Related party relationships: The entity is an Australian Government controlled entity. Related parties to this entity are Infrastructure and Project Financing Agency Key Management Personnel, including the Portfolio Minister and Executive, and other Australian Government entities.

Transactions with related parties: Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.

Giving consideration to relationships with related entities, and transations entered into during reporting period by the entity, it has been determined that there are no related party transactions to be separately disclosed.

Note 4.2 Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Infrastructure and Project Financing Agency member. The entity has determined the key management personnel to be the Chief Executive Officer.

Key management personnel remuneration is reported in the table below:

2019 $

2018 $

Short-term employee benefits 436,491 393,838

Post-employment benefits 20,531 20,533

Other long-term benefits 10,722 8,623

Termination benefits - -

Total key management personnel remuneration expenses 467,744 422,994

The total number of key management personnel that are included in the above table is one in 2019 and is the CEO. In 2018 it was two and they were the interim CEO and the CEO.

The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister whose remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.


Managing UncertaintiesThis section analyses how IPFA manages financial risks within its operating environment.

Note 5.1 Contingent Assets and Liabilities

Quantifiable ContingenciesThere were no quantifiable contingent assets or liabilities in this reporting period.

Unquantifiable ContingenciesThere were no unquantifiable contingent assets or liabilities in this reporting period.

Accounting PolicyContingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.


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Financial assets class Note

AASB 139 original

classificationAASB 9 new classification

AASB 139 carrying amount at

1 July 2018$

AASB 9 carrying amount at

1 July 2018$

Cash and Cash Equivalents Loans and receivables

Amortised Cost

519,746 519,746

Trade receivables 2.1 Loans and receivables

Amortised Cost

37,379 37,379

Total financial assets 557,125 557,125

Classification of financial assets on the date of initial application of AASB 9.

Note 5.2 Financial Instruments Note 5.2A: Categories of Financial Instruments

2019 $

2018 $

Financial Assets under AASB 139

Loans and receivables

Cash and cash equivalents 519,746

Trade and other receivables 37,379

Total loans and receivables 557,125

Financial Assets under AASB 9

Financial assets at amortised cost

Cash and cash equivalents 758,371

Trade and other receivables 18,558

Total financial assets at amortised cost 776,929

Total financial assets 776,929 557,125

Financial Liabilities

Financial liabilities measured at amortised cost

Trade creditors and accruals 202,351 198,615

Other payables - -

Total financial liabilities measured at amortised cost 202,351 198,615

Total financial liabilities 202,351 198,615


Accounting PolicyFinancial assetsWith the implementation of AASB 9 Financial Instruments for the first time in 2019, the entity classifies its financial assets in the following categories:

a. financial assets at fair value through profit or loss;

b. financial assets at fair value through other comprehensive income; and

c. financial assets measured at amortised cost.

The classification depends on both the entity’s business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Comparatives have not been restated on initial application.

Financial Assets at Amortised CostFinancial assets included in this category need to meet two criteria:

1. the financial asset is held in order to collect the contractual cash flows; and

2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

Effective Interest MethodIncome is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost.

Financial Assets at Fair Value Through Other Comprehensive Income (FVOCI)Financial assets measured at fair value through other comprehensive income are held with the objective of both collecting contractual cash flows and selling the financial assets and the cash flows meet the SPPI test.

Any gains or losses as a result of fair value measurement or the recognition of an impairment loss allowance is recognised in other comprehensive income.

Financial Assets at Fair Value Through Profit or Loss (FVTPL)Financial assets are classified as financial assets at fair value through profit or loss where the financial assets either doesn’t meet the criteria of financial assets held at amortised cost or at FVOCI (i.e. mandatorily held at FVTPL) or may be designated.

Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset.

Impairment of Financial AssetsFinancial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12-month expected credit losses if risk has not increased.

The simplified approach for trade, contract and lease receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime expected credit losses.

A write-off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of the financial asset.

Financial liabilitiesFinancial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value Through Profit or LossFinancial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Financial Liabilities at Amortised CostFinancial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective interest basis.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).


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Other informationNote 6.1 Aggregate Assets and Liabilities 6.1A: Aggregate Assets and Liabilities

2019 $

2018 $

Assets expected to be recovered in:

No more than 12 months 1,662,920 1,782,172

More than 12 months - -

Total assets 1,662,920 1,782,172

Liabilities expected to be settled in:

No more than 12 months 412,436 314,446

More than 12 months 434,139 449,452

Total liabilities 846,576 763,898


SECTION 4

References

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PGPA Rule Reference Part of Report Description Requirement

17AD(g) Letter of transmittal

17AI Inside cover A copy of the letter of transmittal signed and dated by accountable authority on date final text approved, with statement that the report has been prepared in accordance with section 46 of the Act and any enabling legislation that specifies additional requirements in relation to the annual report.

Mandatory

17AD(h) Aids to access

17AJ(a) 1 Table of contents. Mandatory

17AJ(b) 60 Alphabetical index. Mandatory

17AJ(c) 59 Glossary of abbreviations and acronyms. Mandatory

17AJ(d) 52 List of requirements. Mandatory

17AJ(e) Inside cover Details of contact officer. Mandatory

17AJ(f) Inside cover Entity’s website address. Mandatory

17AJ(g) Inside cover Electronic address of report. Mandatory

17AD(a) Review by accountable authority

17AD(a) 4 A review by the accountable authority of the entity. Mandatory

17AD(b) Overview of the entity

17AE(1)(a)(i) 6 A description of the role and functions of the entity. Mandatory

17AE(1)(a)(ii) 8 A description of the organisational structure of the entity.

Mandatory

17AE(1)(a)(iii) 14 A description of the outcomes and programmes administered by the entity.

Mandatory

List of requirementsSection 17AJ(d) of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) requires the following list of requirements be included in the annual report as an aid of access.


17AE(1)(a)(iv) 13 A description of the purposes of the entity as included in corporate plan.

Mandatory

17AE(1)(aa)(i) 8 Name of the accountable authority or each member of the accountable authority

Mandatory

17AE(1)(aa)(ii) 8 Position title of the accountable authority or each member of the accountable authority

Mandatory

17AE(1)(aa)(iii) 8 Period as the accountable authority or member of the accountable authority within the reporting period

Mandatory

17AE(1)(b) Not applicable An outline of the structure of the portfolio of the entity. Portfolio departments - mandatory

17AE(2) Not applicable Where the outcomes and programs administered by the entity differ from any Portfolio Budget Statement, Portfolio Additional Estimates Statement or other portfolio estimates statement that was prepared for the entity for the period, include details of variation and reasons for change.

If applicable, Mandatory

17AD(c) Report on the Performance of the entity

Annual performance Statements

17AD(c)(i); 16F 11 Annual performance statement in accordance with paragraph 39(1)(b) of the Act and section 16F of the Rule.

Mandatory

17AD(c)(ii) Report on Financial Performance

17AF(1)(a) 25 A discussion and analysis of the entity’s financial performance.

Mandatory

17AF(1)(b) 26, 27 A table summarising the total resources and total payments of the entity.

Mandatory

17AF(2) Not applicable If there may be significant changes in the financial results during or after the previous or current reporting period, information on those changes, including: the cause of any operating loss of the entity; how the entity has responded to the loss and the actions that have been taken in relation to the loss; and any matter or circumstances that it can reasonably be anticipated will have a significant impact on the entity’s future operation or financial results.

If applicable, Mandatory.


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17AD(d) Management and Accountability

Corporate Governance

17AG(2)(a) 23 Information on compliance with section 10 (fraud systems)

Mandatory

17AG(2)(b)(i) Letter of Transmittal

A certification by accountable authority that fraud risk assessments and fraud control plans have been prepared.

Mandatory

17AG(2)(b)(ii) Letter of Transmittal

A certification by accountable authority that appropriate mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the entity are in place.

Mandatory

17AG(2)(b)(iii) Letter of Transmittal

A certification by accountable authority that all reasonable measures have been taken to deal appropriately with fraud relating to the entity.

Mandatory

17AG(2)(c) 9 An outline of structures and processes in place for the entity to implement principles and objectives of corporate governance.

Mandatory

17AG(2)(d) – (e)

Not applicable A statement of significant issues reported to Minister under paragraph 19(1)(e) of the Act that relates to noncompliance with Finance law and action taken to remedy noncompliance.


External Scrutiny

17AG(3) 23 Information on the most significant developments in external scrutiny and the entity’s response to the scrutiny.

Mandatory

17AG(3)(a) 23 Information on judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner that may have a significant effect on the operations of the entity.


17AG(3)(b) 23 Information on any reports on operations of the entity by the AuditorGeneral (other than report under section 43 of the Act), a Parliamentary Committee, or the Commonwealth Ombudsman.


17AG(3)(c) 23 Information on any capability reviews on the entity that were released during the period.


Management of Human Resources

17AG(4)(a) 20 An assessment of the entity’s effectiveness in managing and developing employees to achieve entity objectives.

Mandatory


17AG(4)(aa) 20 "Statistics on the entity’s employees on an ongoing and nonongoing basis, including the following:

(a) statistics on fulltime employees;

(b) statistics on parttime employees;

(c) statistics on gender

(d) statistics on staff location”

Mandatory

17AG(4)(b) 20 "Statistics on the entity’s APS employees on an ongoing and nonongoing basis; including the following:

· Statistics on staffing classification level;

· Statistics on fulltime employees;

· Statistics on parttime employees;

· Statistics on gender;

· Statistics on staff location;

· Statistics on employees who identify as Indigenous.”

Mandatory

17AG(4)(c) 20 Information on any enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999.

Mandatory

17AG(4)(c)(i) 20 Information on the number of SES and nonSES employees covered by agreements etc identified in paragraph 17AG(4)(c).

Mandatory

17AG(4)(c)(ii) 20 The salary ranges available for APS employees by classification level.

Mandatory

17AG(4)(c)(iii) 21 A description of nonsalary benefits provided to employees.

Mandatory

17AG(4)(d)(i) 21 Information on the number of employees at each classification level who received performance pay.


17AG(4)(d)(ii) 21 Information on aggregate amounts of performance pay at each classification level.


17AG(4)(d)(iii) 21 Information on the average amount of performance payment, and range of such payments, at each classification level.


17AG(4)(d)(iv) 21 Information on aggregate amount of performance payments.



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Assets Management

17AG(5) Not applicable An assessment of effectiveness of assets management where asset management is a significant part of the entity’s activities

If applicable, mandatory

Purchasing

17AG(6) 27 An assessment of entity performance against the Commonwealth Procurement Rules.

Mandatory

Consultants

17AG(7)(a) 27 A summary statement detailing the number of new contracts engaging consultants entered into during the period; the total actual expenditure on all new consultancy contracts entered into during the period (inclusive of GST); the number of ongoing consultancy contracts that were entered into during a previous reporting period; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST).

Mandatory

17AG(7)(b) 27 A statement that “During [reporting period], [specified number] new consultancy contracts were entered into involving total actual expenditure of $[specified million]. In addition, [specified number] ongoing consultancy contracts were active during the period, involving total actual expenditure of $[specified million]”.

Mandatory

17AG(7)(c) 27 A summary of the policies and procedures for selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged.

Mandatory

17AG(7)(d) 27 A statement that “Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.”

Mandatory

Australian National Audit Office Access Clauses

17AG(8) Not applicable If an entity entered into a contract with a value of more than $100 000 (inclusive of GST) and the contract did not provide the AuditorGeneral with access to the contractor’s premises, the report must include the name of the contractor, purpose and value of the contract, and the reason why a clause allowing access was not included in the contract.



Exempt contracts

17AG(9) Not applicable If an entity entered into a contract or there is a standing offer with a value greater than $10 000 (inclusive of GST) which has been exempted from being published in AusTender because it would disclose exempt matters under the FOI Act, the annual report must include a statement that the contract or standing offer has been exempted, and the value of the contract or standing offer, to the extent that doing so does not disclose the exempt matters.


Small business

17AG(10)(a) 28 A statement that “[Name of entity] supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website.”

Mandatory

17AG(10)(b) 28 An outline of the ways in which the procurement practices of the entity support small and medium enterprises.

Mandatory

17AG(10)(c) Not applicable If the entity is considered by the Department administered by the Finance Minister as material in nature—a statement that “[Name of entity] recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website.”


Financial Statements

17AD(e) 29 Inclusion of the annual financial statements in accordance with subsection 43(4) of the Act.

Mandatory

Executive Remuneration

17AD(da) 24 Information about executive remuneration in accordance with Subdivision C of Division 3A of Part 23 of the Rule.

Mandatory

17AD(f) Other Mandatory Information

17AH(1)(a)(i) Not applicable If the entity conducted advertising campaigns, a statement that “During [reporting period], the [name of entity] conducted the following advertising campaigns: [name of advertising campaigns undertaken]. Further information on those advertising campaigns is available at [address of entity’s website] and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.”



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17AH(1)(a)(ii) 28 If the entity did not conduct advertising campaigns, a statement to that effect.


17AH(1)(b) Not applicable A statement that “Information on grants awarded by [name of entity] during [reporting period] is available at [address of entity’s website].”


17AH(1)(c) 22 Outline of mechanisms of disability reporting, including reference to website for further information.

Mandatory

17AH(1)(d) 24 Website reference to where the entity’s Information Publication Scheme statement pursuant to Part II of FOI Act can be found.

Mandatory

17AH(1)(e) Not applicable Correction of material errors in previous annual report If applicable, mandatory

17AH(2) Information required by other legislation Mandatory

22 Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011)

Mandatory

23 Ecologically sustainable development and environmental performance (section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory

22 Compliance with obligations under the Carer Recognition Act 2010

Mandatory


Term Meaning

ANAO Australian National Audit Office

APS Australian Public Service

APS Act Public Service Act 1999

APS Employee A person engaged under section 22, or a person who is engaged under section 72 of the APS Act. Non-ongoing APS employees are engaged under subsections 22(2)(b) of the APS Act. Ongoing APS employees are engaged under subsection 22(2)(a) of the APS Act.

CEO Chief Executive Officer

CFO Chief Financial Officer

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

FOI Act Freedom of Information Act 1982

Grant Commonwealth financial assistance covered by the Commonwealth Grants Rules and Guidelines

GST Goods and Services Tax

ICT Information and Communications Technology

IT Information Technology

KPI Key Performance Indicator

MP Member of Parliament

PGPA Act Public Governance, Performance and Accountability Act 2013

PGPA Rule Public Governance, Performance and Accountability Rule 2014

SES Senior Executive Service

SME Small and Medium Enterprise

WHS Work Health and Safety

WOAG Whole of Australian Government

Glossary


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Index

AAccountable Authority . . . . . . 08

Advertising and Market Research 28

Analysis of Performance Against Purpose . . . . . . . . . . . . . . . 19

Annual Performance Statement . 11

Auditor-General . . . . . . . . . . 30

AusTender . . . . . . . . . . . . . 27

Australian Information Commissioner . . . . . . . . . . . 23

Australian National Audit Office (ANAO) . . . . . . . . . 23, 30

Australian Public Service Commission (APSC) . . . . . . . . 22

CCarer Recognition Act 2010 . . . 22

Chief Executive Officer Review . 04

Comcare. . . . . . . . . . . . . . . 22

Common Law Contract . . . . . . 20

Commonwealth Ombudsman . . 23

Commonwealth Procurement Rules. . . . . . . . . . . . . . . . . 27

Compliance with Financial Law . 27

Consultants . . . . . . . . . . . . . 27

Contractors . . . . . . . . . . . 20

Contracts . . . . . . . . . . . . 20

Corporate Plan . . . . . . . . . . . 13

DDepartment of Finance . . . . . . 28

Department of Infrastructure, Transport, Cities and Regional Development . . . . . . . . .04, 05, 26

Department of the Prime Minister and Cabinet. . . . . . . . . . . . . 26

Disability Reporting . . . . . . . . 22

EEmployment Arrangements . . . 20

Employment Statistics. . . . . . . 20

Environment Protection and Biodiversity Conservation Act 1999 . . . . . . . . . . . . . . 23

Ethical Standards . . . . . . . . . 21

External Scrutiny . . . . . . . . . . 23

FFinancial Statements . . . . . . . 29

Fraud Prevention and Control . . 23

Freedom of Information Act 1982 . . . . . . . . . . . . . . . . . 24

Frew, Leilani . . . . . . . . . . 04, 08

GGovernance and Organisational Structure . . . . . . . . . . . . . . 08

Grant Programs . . . . . . . . . . 28

IIndependent Auditor’s Report . . . . . . . . . . . . . . 31, 32

Information Publication Scheme . 24

IPFA Audit Committee . . . . . . 10

IPFA Governance Framework . . 09

IPFA Leadership Team . . . . . . 08

LLeadership Team. . . . . . . . . . 08

List of Requirements. . . . . . . . 52

MManagement Issues . . . . . . . . 23

Market Research . . . . . . . . . . 28

NNon-salary Benefits . . . . . . . . 21

PPerformance Pay. . . . . . . . . . 21

Procurement Initiatives to support Small Business . . . . 28

Purchasing and Procurement . . 27

RReport on Financial Performance 25

Risk Management Framework . . 09

SSenate Estimates . . . . . . . . . 23

Staff . . . . . . . . . . . . . . . . . 20

Statement of Comprehensive Income . . . . . . . . . . . . . . . 33

Statement of Financial Position . 34

Strategic Goals . . . . . . . . . . 46

Supporting Employees with Carer Responsibilities . . . . . . . 22

WWork Health and Safety . . . . . 22


Collaborative Impact

Documents

Annual Report 2018-19 - IPFA€¦ · CHRIS ALLEN Managing Director, Transport and Industry ROB RITCHIE Managing Director, Energy and Water CATHERINE BLACK Managing Director, Cities