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Government of Western Australia State Emergency Management Committee Ofce of Emergency Management 2017–2018 State Emergency Management Committee (SEMC) Annual Report Office of Emergency Management (OEM) Final Report

Office of Emergency Management (OEM) Final Report€¦ · As the Office of Emergency Management was integrated into the Department of Fire and Emergency Services from 1 July 2018,

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Page 1: Office of Emergency Management (OEM) Final Report€¦ · As the Office of Emergency Management was integrated into the Department of Fire and Emergency Services from 1 July 2018,

Government of Western Australia

State Emergency Management CommitteeOffi ce of Emergency Management

2017–2018

State Emergency Management Committee (SEMC) Annual Report

Office of Emergency Management (OEM) Final Report

Page 2: Office of Emergency Management (OEM) Final Report€¦ · As the Office of Emergency Management was integrated into the Department of Fire and Emergency Services from 1 July 2018,

Statement of compliance

In accordance with section 72(1) of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament, the final report of the Office of Emergency Management for the year ended 30 June 2018.

The report has been prepared in accordance with the provisions of the Financial Management Act 2006 as well as the Emergency Management Act 2005.

As the Office of Emergency Management was integrated into the Department of Fire and Emergency Services from 1 July 2018, this report is submitted, signed by the Reporting Officer, Mr Mal Cronstedt, as appointed by the Treasurer under section 68(1) of the Financial Management Act 2006.

Yours sincerely

Mal Cronstedt AFSM, MBA, BAReporting OfficerOffice of Emergency Management

23 August 2018

For the year ended 30 June 2018

To the Hon. Francis Logan MLA Minister for Emergency Services Responsible Minister

In accordance with section 25 of the Emergency Management Act 2005, I hereby submit for your information and presentation to Parliament the annual report of the State Emergency Management Committee for the year ended 30 June 2018.

The report has been prepared in accordance with the provisions of the Emergency Management Act 2005.

Yours sincerely

Dr Ron F EdwardsChairState Emergency Management Committee

23 August 2018

The Hon. Francis Logan MLA Minister for Emergency Services

SEMC Annual Report / OEM Final Report 2017–18 ii

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Contents

Statement of compliance ........................................ii

From the SEMC Chair ............................................03

From the OEM Executive Director .......................05

1. OVERVIEW ................................................................07Executive summary ...............................................08

Performance highlights ....................................09

The State Emergency Management Committee ..................................... 10

SEMC membership ...........................................10Report on activities ........................................... 11The SEMC meetings ......................................... 11The SEMC subcommittees and reference groups ................................................ 14District emergency management committees .........................................................21Local emergency management committees .........................................................25The State Emergency Management Framework ..........................................................27Hazard management agencies .......................33

The Office of Emergency Management .............41Operational structure ........................................41Enabling legislation ............................................41Responsible Minister .........................................41Employing authority ..........................................41Organisational structure ...................................42Senior officers ....................................................44Administered legislation ...................................46Other key legislation impacting on the activities of the SEMC and the OEM ..............46

Performance management framework .............47Outcome-based management framework ...47Changes to outcome-based management framework ...........................................................47Shared responsibilities with other agencies ..............................................................47

2. AGENCY PERFORMANCE .....................................48Report on operations – OEM ...............................49

3. SIGNIFICANT ISSUES IMPACTING ON THE AGENCY .........................................................51

Machinery of Government changes ...................52

Current and emerging issues and trends ..........53Preparedness for major emergencies ...........53Special Inquiry into the January 2016 Waroona Fire ......................................................53National Partnership Agreement on Natural Disaster Resilience ..............................53

Changes at the national level ...............................54National Resilience Taskforce .........................54Emergency Alert ................................................54Public Safety Mobile Broadband ....................54Recovery funding ...............................................54

Changes in written law ..........................................55

Likely developments and forecast results of operations ...........................................................55

4. DISCLOSURES AND LEGAL COMPLIANCE ......57Financial statements .............................................58

Certification of Financial Statements ............58Financial Statements Content .........................59Statement of comprehensive income ...........60Statement of financial position ....................... 61Statement of changes in equity ......................62Statement of cash flows ..................................63Summary of consolidated account appropriations and income estimates ...........64Notes to the Financial Statements .................65

Independent Audit Opinion Letter ..................... 111

SEMC Annual Report / OEM Final Report 2017–18 01ii

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Audited key performance indicators ................. 115Certification of key performance indicators ........................................................... 115Key effectiveness indicator: Stakeholder assessment of strategic coordination of emergency management ............................... 116Key efficiency indicator: Average hourly cost of providing emergency management advice and consultation ................................. 118

Ministerial directions ............................................ 119

Other financial disclosures ................................. 119Pricing policies of services provided ........... 119Capital works .................................................... 119Employment and industrial relations ........... 119Staff development ........................................... 119Workers’ compensation .................................. 119Recruitment ...................................................... 119Leave liability management ........................... 119Unauthorised use of credit cards ................. 119

Governance disclosures ......................................120Contracts with senior officers .......................120Audit and risk management ..........................120Indemnity insurance........................................120

Other legal requirements ....................................121Compliance with public sector standards and ethical codes .........................121

Government policy requirements ......................122Government building contracts ....................122Advertising ........................................................122Ministerial communication ............................122Disability Access and Inclusion Plan outcomes ..........................................................122Record Keeping Plans .....................................122Freedom of Information .................................122Occupational health and safety ....................122Reconciliation Action Plan .............................122

Acronyms ...............................................................123

SEMC Annual Report / OEM Final Report 2017–18 02

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It was a privilege to be appointed to the role of Chair of the State Emergency Management Committee (SEMC) commencing in October 2017. At the outset, I would like to thank Frank Edwards CSC for his contribution to the SEMC as Chair since 2014.

The implementation of the recommendations and opportunities for improvement of the Report of the Special Inquiry into the January 2016 Waroona Fire, prepared by Euan Ferguson AFSM, has continued to be an important focus for the SEMC. Considerable progress has been made by State Government agencies and other stakeholders.

In addressing a key recommendation of the Ferguson Report, in April 2018 the Government announced the establishment of a Rural Fire Division within the Department of Fire and Emergency Services (DFES). A Bushfire Centre of Excellence will be established within the Rural Fire Division. These two initiatives address two important Ferguson Report recommendations and opportunities and will enhance bushfire management in the state.

Importantly, the SEMC/OEM Strategic Plan 2017–2020 was launched during the year, reflecting the establishment of the Office of Emergency Management (OEM), including its new functions of assurance and recovery. The Strategic Plan will continue to set the strategic direction of the SEMC.

One of the functions of the SEMC – which I have given priority to since joining the Committee – is to advise the Minister for Emergency Services on the preparedness of the state to combat emergencies. Over the past six years, the SEMC Emergency Preparedness Report has played a key role in this.

The 2017 Emergency Preparedness Report found that emergency events are becoming more frequent and larger, while many communities are becoming less resilient and increasingly reliant upon the emergency management sector. The Report stated that the sector is well equipped to deal with emergencies to a certain level and there is a maturity developing on the need to better recover from them.

Dr Ron F Edwards Chair

I would like to acknowledge the major achievements of the OEM since it was established in December 2016

From the SEMC Chair

SEMC Annual Report / OEM Final Report 2017–18 0302

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From the SEMC Chair

However, of concern is that agencies would largely struggle with major and catastrophic events.

To raise the profile of the Emergency Preparedness Report, as well as being tabled in Parliament, presentations of the 2017 Report were made jointly by myself and/or the OEM risk team to Cabinet, some Ministers and Government agencies, and nationally.

The State Risk Project, initiated by the SEMC in 2013, continues to be another important focus of the SEMC. The project aims to gain a consistent and comprehensive understanding of the risks posed at the state, district and local levels by the 27 hazards that are prescribed in legislation. The focus is now on local-level risk assessment and it is encouraging that there has generally been a very rapid and positive uptake by local governments.

The SEMC decided to merge the Recovery and Community Engagement Subcommittees due to the strong links between the two. This also reflects changes to the Commonwealth arrangements. The terms of reference and membership for the new Recovery and Community Engagement Subcommittee have been approved by the SEMC.

Work has commenced on how to integrate the work plans of both former subcommittees.

With the integration of the OEM into DFES from 1 July 2018, I would like to acknowledge the major achievements of the OEM since it was established in December 2016. I also look forward to working more closely with DFES in the future. The Ministerial Statement of Expectation was updated to reflect this Machinery of Government change and a Committee Statement of Intent was subsequently developed to respond to the Ministerial Statement.

I would like to thank the continuing SEMC members for welcoming myself and a number of other new members onto the Committee and, together with support from the OEM, ensuring a smooth transition for us.

New members commencing at the same time as myself were Chris Dawson APM, Commissioner of Police; Darren Klemm AFSM, Fire and Emergency Services Commissioner; Grahame Searle, Director General of the Department of Communities; and Mark Webb PSM, Director General of the Department of Biodiversity, Conservation and Attractions.

In April 2018 Melissa Pexton was appointed as the new Deputy Chair, replacing Sue Ash AO. Melissa brings a wealth of experience having worked extensively in emergency management in the local government sector and the State Government. She is known to many in the industry and is well respected.

I would like to thank all the SEMC members who left during 2017–18 for their significant contribution to the Committee in enhancing emergency management in Western Australia and I look forward to continuing to work with the new Committee in addressing the significant challenges ahead.

Dr Ron F EdwardsChairState Emergency Management Committee

SEMC Annual Report / OEM Final Report 2017–18 04

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From the OEM Executive Director

It is a pleasure to introduce the last combined annual report of the State Emergency Management Committee (SEMC) and the final report of the Office of Emergency Management (OEM). With the integration of the OEM into the Department of Fire and Emergency Services (DFES) from 1 July 2018, the next report will be solely an annual report for the SEMC.

I welcome Dr Ron Edwards as the new Chair of the SEMC, who commenced in the role in October 2017, and Melissa Pexton, the new Deputy Chair who was appointed in April 2018. It was a privilege to work with the former Chair, Frank Edwards CSC, and Deputy Chair, Sue Ash AO. Their contributions to the Committee have been greatly appreciated. A number of other new members commenced during 2017–18 and I look forward to continuing to work with all new members.

The Assurance, Lessons Management and Exercise Management Frameworks have been well progressed to support the SEMC commitment to these functions. An Assurance Framework is being developed in consultation with the Office of the Auditor General (OAG), as future arrangements will be overseen by both the OAG and the SEMC.

Dealing with animals in emergencies has been a very difficult issue for response agencies for many years. During the year, the Department of Primary Industries and Regional Development appointed a State Animal Welfare Emergency Coordinator and a State Emergency Animal Welfare Plan was drafted.

The SEMC Policy and Governance Review Project has made great progress, undertaking reviews of a number of emergency management policy areas, including state-level emergency management arrangements, emergency public information, recovery arrangements, exchange of information, volunteer protections, traffic management and funding for emergencies.

Considerable work has also been undertaken on the Westplan Rationalisation Project which involves the rationalisation and amalgamation of the majority of Westplans and the conversion of all Westplans into State Hazard Plans as subplans to the State Emergency Management Plan. There have also been full content reviews for some of the newly created State Hazard Plans.

Mal Cronstedt AFSM, MBA, BA Executive Director

I would like to thank the SEMC for its guidance during the year and look forward to continuing to work with them

SEMC Annual Report / OEM Final Report 2017–18 0504

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From the OEM Executive Director

Having completed the state and district risk assessments, the State Risk Project has been focusing on facilitating local-level rollouts and treatment workshops. There has been encouraging progress by local governments as nearly 77, or more than half of, local governments had already commenced local-level rollouts by 30 June 2018. Treatment workshops are progressing well. A mitigation prioritisation database has been developed and houses a list of potential mitigation options that address extreme and high risks as identified through the State Risk Project risk workshops.

The Emergency Preparedness Report has again been enthusiastically embraced by the SEMC. With a considerable amount of information having been collected over recent years for the Report, the SEMC has been considering how this information can be used to build on the outstanding achievements attained to date.

The Recovery Team has for some time been working with the Commonwealth Government, the other states and the territories on the proposed Disaster Relief Funding Arrangements. The new arrangements commence on 1 November 2018 and will provide new challenges for the state in this complex area.

Since July 2017, the OEM has chaired the Ferguson Report Implementation Working Group that has been overseeing the implementation of the recommendations and opportunities for improvement of the Report of the Special Inquiry into the January 2016 Waroona Fire prepared by Euan Ferguson AFSM. Much progress has been made. As at 30 June 2018, 32 of the 40 recommendations and opportunities for improvement were completed, seven were in progress and one not yet progressed.

The Australasian Natural Hazards Management Conference that was held in Perth in November 2017 was hosted by the SEMC. With leadership from the SEMC, OEM staff worked hard to ensure the conference was a resounding success.

I would like to thank OEM staff for their outstanding contribution to the enhancement of emergency management in this state and for assisting me in providing a high level of support to the SEMC. A Service Level Agreement (SLA) between the Chair of the SEMC and the Fire and Emergency Services Commissioner has been developed. This provided the necessary support to the SEMC to enable it to perform its functions under the

Emergency Management Act 2005 since 1 July 2018. The OEM was integrated into DFES from this date.

I would like to thank the SEMC for its guidance during the year and look forward to continuing to work with them.

Mal Cronstedt AFSM, MBA, BAExecutive DirectorOffice of Emergency Management

06SEMC Annual Report / OEM Final Report 2017–18 06

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1. OVERVIEW

06 07SEMC Annual Report / OEM Final Report 2017–1806SIG

NIFICAN

T ISSUES IMPACTIN

G ON TH

E AGEN

CY

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The State Emergency Management Committee (SEMC) is the State Government’s peak planning body on emergency management.

The SEMC was established under s.13 of the Emergency Management Act 2005 (the Emergency Management Act). The SEMC’s vision is to have “a better prepared, safer and more resilient Western Australia.”

The SEMC’s primary roles are to:• advise the Minister on

emergency management and the preparedness of the state to combat emergencies;

• provide direction, advice and support to public authorities, industry, commerce and the community in order to plan and prepare for an efficient emergency management capability for Western Australia;

• provide a forum for whole-of-community coordination to ensure the effects of emergencies are minimised;

• provide a forum for the development of community-wide information systems to improve communications during emergencies;

• develop and coordinate risk management strategies to assess community vulnerability to emergencies; and

• arrange for the preparation of state emergency management policies and plans.

The SEMC is assisted in its work by five subcommittees and two reference groups.

The OEM has been providing executive, policy and administrative support to the SEMC in delivering on its strategic priorities. From 1 July 2018, this support will be provided by DFES.

The 2017–18 annual and final reports provide an overview of the work, activities and operations of the SEMC and the OEM.

Executive summary

SEMC Annual Report / OEM Final Report 2017–18 08

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Executive summary

• Achieved significant improvements in capability data-capture statewide through the State Capability Framework.

• Hosted the following:– federal-state pre-season

preparedness briefing– 2017 Australasian Natural

Hazards Management Conference

– 2018 Australian Vulnerability Profiling workshop.

• More than half of the local governments have engaged with the consistent and comprehensive risk profiling process under the State Risk Project.

• Establishment of a substantial risk treatments database.

• Publishing of the 2017 Emergency Preparedness Report with presentations to senior levels, both state and nationally.

• Continued to oversee the implementation of the recommendations and opportunities for improvement from the Report of the Special Inquiry into the January 2016 Waroona Fire, prepared by Euan Ferguson AFSM.

• Discharged the State Bushfire Coordinating Committee (SBCC), a subcommittee of the SEMC. It will be superseded by the new State Bushfire Advisory

Council, which will largely incorporate the functions of the SBCC, with an expanded remit and membership.

• Coordinated, on behalf of the Minister and the SEMC, the co-hosting of the East Asia Summit International Disaster Assistance Workshop in May 2018.

• Represented Western Australia on the National Resilience Taskforce established in April 2018 to develop a natural disaster risk reduction framework, and enhance and better target mitigation and resilience building investment such that the overall costs of disasters are reduced.

• Undertook cross-boundary exercises.

• Continued to improve coverage and quality of local emergency management arrangements.

• Progressed the SEMC Policy and Governance Review Project, which considers 62 emergency management policy positions across 16 themes.

• Published three SEMC bulletins – Strategic control priorities for all hazards, Community alert sirens, and Consequential amendments to HMA and controlling agency processes – and three State Hazard Plans, namely Fire, Heatwave and Tsunami.

• Facilitated the project management to implement the State Crisis Information Management System – WebFusion that went live on 3 December 2017.

• Progressed the development of Emergency Management Assurance and Lessons Management Frameworks for the state.

• Commenced the development of the Emergency Management Exercise Management Framework for the state.

• The SEMC assigned Department of Primary Industries and Regional Development (DPIRD)responsibility for animal welfare in emergencies in Western Australia. The Department appointed a State Animal Welfare Emergency Coordinator.

• With OEM oversight, DPIRD progressed the development of the State Emergency Animal Welfare Plan.

• Worked with Emergency Management Victoria and relevant State Government agencies on funding of the Emergency Alert Phase 4 upgrade cost, including a Memorandum of Understanding.

Performance highlights

SEMC Annual Report / OEM Final Report 2017–18 0908

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The State Emergency Management Committee

Members as at 30 June 2018• Dr Ron Edwards,

Independent SEMC Chair• Ms Melissa Pexton,

Independent SEMC Member; SEMC Deputy Chair

• Mr Richard Simpson, Independent SEMC Member

• Mr Mal Cronstedt AFSM, SEMC Executive Officer

• Mr Chris Dawson APM, SEMC Member; Commissioner of Police *

• Mr Darren Klemm AFSM, SEMC Member; Fire and Emergency Services Commissioner *

• Mr Darren Foster, SEMC Member; Director General, Department of the Premier and Cabinet**

• Mr Mark Webb PSM, SEMC Member; Director General, Department of Biodiversity, Conservation and Attractions*

• Dr David Russell-Weisz, SEMC Member; Director General, Department of Health*

• Mr Grahame Searle, SEMC Member; Director General, Department of Communities*

• Ms Ricky Burges PSM, SEMC Member; Chief Executive Officer, Western Australian Local Government Association

* Appointed in a personal capacity** Ex officio

Deputy Members who acted as proxies during the reporting period ending 30 June 2018• Mr Peter Dans – proxy for

Mr Mark Webb• Ms Melissa Pexton – proxy

for Ms Ricky Burges• Dr Andrew Robertson –

proxy for Dr David Russell-Weisz

• Ms Helen Gladstones – proxy for Mr Darren Foster

Member updates2017• Mr Frank Edwards – term of

appointment expired• Ms Emma White – resigned• Mr Jim Sharp – resigned• Dr Wayne Gregson –

resigned• Dr Karl O’ Callaghan –

resigned• Ms Jodie Holbrook – term of

appointment expired• Mr Gary Dreibergs – term of

appointment expired• Dr Ron Edwards – appointed

as SEMC Chair• Mr Grahame Searle –

appointed as a Member• Mr Mark Webb – appointed

as a Member• Mr Darren Klemm –

appointed as a Member• Mr Chris Dawson –

appointed as a Member

2018• Ms Sue Ash – term of

appointment expired• Ms Melissa Pexton –

appointed as Deputy Chair• Ms Jacqueline Tang –

appointed as Deputy Member for Mr Grahame Searle (Director General, Department of Communities)

• Mr Stephen Brown – appointed as Deputy Member for Mr Chris Dawson (Commissioner of Police)

• Ms Joanne Burges – appointed as Deputy Member for the Chief Executive Officer, Western Australian Local Government Association

SEMC membership

SEMC Annual Report / OEM Final Report 2017–18 10

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The State Emergency Management Committee

Presentations01 August 2017Perth StadiumSuperintendent Dario Bolzonella, Perth Stadium Project Team Leader, WA Police Force; Mr Mike McKenna, CEO, Perth Stadium; and Mr Chris Loftus-Hills, General Manager, Events and Operations, Perth Stadium delivered a presentation on the progress of the construction of the Perth Stadium, including an emergency management plan and structure.

08 December 2017Public Safety Mobile BroadbandMr Justin Court, Senior Policy Officer, Office of State Security and Emergency Coordination, Department of the Premier and Cabinet; Mr Phil Manna, Enterprise Architect, WA Police Force; and Superintendent Syd Bignell, Hazard Planning & Operations Support, Department of Fire and Emergency Services, delivered a presentation providing an update and key developments expected.

09 March 2018Freeway Emergency Lane ProposalMr James Dobinson, Congestion Program Director and Ms Claudia La Pegna, Strategic Communication Specialist, Main Roads WA, delivered a PowerPoint presentation about the overall congestion program and Perth’s first Smart Freeway.

04 May 2018State Emergency Animal Welfare PlanMs Mia Carbon, A/Executive Director Biosecurity, and Ms Amanda Nardi-Wallace, State Animal Welfare Emergency Coordinator, DPIRD, delivered a presentation on animal welfare in state emergencies.

Report on activitiesThe emergency management structure in Western Australia follows a three-tiered hierarchy, as established by the Emergency Management Act 2005. The following pages explain the role of the SEMC subcommittees and reference groups, district emergency management committees (DEMCs) and local emergency management committees (LEMCs) within the SEMC structure.

The SEMC meetingsDuring the reporting period ending 30 June 2018, SEMC members held the following meetings:• four ordinary meetings –

1 August 2017, 8 December 2017, 9 March 2018 and 4 May 2018

• one special meeting on 3 October 2017, to discuss the Emergency Preparedness Report

• seven out-of-session meetings – 18 October 2017, 6 November 2017, 18 December 2017, 20 December 2017, 19 January 2018, 4 April 2018, and 30 May 2018.

Western Australian emergency management structure

District Emergency Management Committees (DEMCs)

Local Emergency Management Committees (LEMCs)

State Emergency Management Committee (SEMC)

SEMC Subcommittees and Reference Groups

SEMC Annual Report / OEM Final Report 2017–18 1110

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The State Emergency Management Committee

Attendance at the SEMC ordinary meetings

✓ NameAttend-

ance01/08/17

Attend-ance

03/10/17

Attend-ance

08/12/17

Attend-ance

09/03/18

Attend-ance

04/05/18

Represented by proxy (no. of

meetings)

Observer (no. of meetings and date)

Mr Frank Edwards ✓ - -Dr Ron Edwards ✓ ✓ ✓ ✓ - -Ms Sue Ash ✓ ✓ ✓ ✓ - -Ms Melissa Pexton ✓* - -Dr David Russell-Weisz

Dr Andrew Robertson

(5)Mr Darren Foster ✓ ✓ ✓ ✓ Ms Helen

Gladstones (1)

Mr Mal Cronstedt ✓ ✓ ✓ ✓ ✓

Mr Richard Simpson ✓ ✓ ✓ - ✓

Dr Karl O’Callaghan ✓ Mr Peter Sawyer (1 – 01/08/17)

Mr Chris Dawson ✓ ✓ Mr Stephen Brown (1 – 03/10/17); Mr Paul Zanetti (1 –

08/12/17)Ms Ricky Burges ✓ Ms Melissa

Pexton (4)Dr Wayne Gregson ✓

Mr Darren Klemm ✓ ✓ ✓ ✓

Mr Grahame Searle

✓ ✓ ✓ Ms Rachael Green (1 – 03/10/17)

Mr Mark Webb ✓ ✓ Mr Peter Dans (3)

Office of the Minister for Emergency Services

✓** Mr Tom Palmer (1 – 04/05/18)

Mr Barry Winmar (2 – 01/08/17 and

08/12/17)

Ms Mia Onorato-Sartari (3 – 03/10/17, 08/12/17 and

09/03/18)

* Attended this meeting as Deputy Chair

** The Hon Francis Logan MLA, Minister for Emergency Services attended this meeting

SEMC Annual Report / OEM Final Report 2017–18 12

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The State Emergency Management Committee

Attendance at the SEMC out-of-session meetings

✓ Name 14/08/17 18/10/17 06/11/17 18/12/17 20/12/17 19/01/18 04/04/18 30/05/18

Mr Frank Edwards

Dr Ron Edwards ✓ ✓ ✓ ✓ ✓ ✓ ✓

Mr Mal Cronstedt ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Ms Ricky Burges ✓ ✓ ✓ ✓ ✓ ✓

Dr Wayne Gregson

Mr Richard Simpson

✓ ✓ ✓ ✓ ✓ ✓

Ms Sue Ash ✓ ✓ ✓

Mr Mark Webb ✓ ✓ ✓ ✓ ✓ ✓

Mr Darren Foster ✓ ✓

Mr David Russell-Weisz

Mr Chris Dawson ✓ ✓ ✓ ✓

Mr Grahame Searle

Mr Paul Whyte

Mr Paul Whyte

✓ ✓ ✓ ✓ ✓

Mr Darren Klemm

Ms Melissa Pexton

✓ ✓

SEMC Annual Report / OEM Final Report 2017–18 1312

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The State Emergency Management Committee

Section 21 of the Emergency Management Act 2005 allows the SEMC to establish such subcommittees as it thinks fit to advise the SEMC on any aspect of its functions or to assist with any matters relevant to the performance of its functions. Subcommittees may, but need not, consist of or include members of the SEMC.

Organisational chart for SEMC subcommittees, reference groups, and district and local emergency management committees

* The SEMC decided to discharge the State Bushfire Coordinating Committee in June 2018

State Emergency Management Committee (SEMC)

Response Capability

Sub committee

State Bushfire Coordinating Committee*

Community Engagement

Sub committee

District Emergency

Management Committees

(DEMCs)

Local Emergency

Management Committees

(LEMCs)

Recovery Sub committee

Risk Sub committee

Essential Services Network

Operators Reference

Group

Public Information Reference

Group

The SEMC subcommittees and reference groups

SEMC Annual Report / OEM Final Report 2017–18 14

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The State Emergency Management Committee

The SEMC subcommittees and reference groups – key achievementsEach subcommittee and reference group reports to the SEMC on their annual activities. The table below highlights their activities during the financial year ending 30 June 2018.

Subcommittee / reference group Objective No. of

meetings Key achievements and updates

Community Engagement Subcommittee

Chair: Mr Steve Fewster, DFES

Sponsor: Mr Darren Klemm, DFES

Executive Officer: Mr Ron de Blank, OEM

To support the SEMC in strengthening resilience by providing advice on community engagement and education programs and initiatives, and looking for synergies between programs

3 (including

one out-of-

session)

• Completed Prepare the Peel Project – to enhance emergency preparedness within the Peel tourism industry

• Completed Keeping Our Mob Safe Project – a review of the national emergency management strategy for remote Indigenous communities

• Planning day held in August 2017 – members discussed current projects, needs, gaps and additions to the work plan

• Discharge of the subcommittee – the SEMC endorsed the merger of the Recovery Subcommittee and the Community Engagement Subcommittee to form the Recovery and Community Engagement Subcommittee

SEMC Annual Report / OEM Final Report 2017–18 1514

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The State Emergency Management Committee

Subcommittee / reference group Objective No. of

meetings Key achievements and updates

Response Capability Subcommittee

Chairs: Mr Gary Dreibergs, WA Police Force and Mr Stephen Brown, WA Police Force

Sponsor: Mr Chris Dawson, WA Police Force

Executive Officers: Ms Kelli Williams, OEM and Ms Peta Turner, OEM

To provide a forum that promotes collaborative and strategic dialogue to consider and promote strategies to address the state’s emergency response capability gaps

4 (including

one out-of-

session)

• Oversaw the following projects:– State Crisis Information Management

System Implementation Project – WebFusion went live on 3 December 2017

– Exercise Management Framework Development Project – appointed a Project Officer in May 2018 for 12 months. Stakeholder consultation and review of existing arrangements have commenced

– Animals in Emergencies Project – the SEMC has assigned Department of Primary Industries and Regional Development (DPIRD) responsibility for animal welfare in emergencies in Western Australia. A State Animal Welfare Emergency Coordinator was appointed in February 2018 and a draft State Emergency Animal Welfare Plan has been produced. Consultation is currently taking place with stakeholders

• Provided input to the following:– The OEM’s Emergency Management

Framework Advisory Group– Review of incident management

and emergency management within state emergency management arrangements

– Development of ‘emergency determination’ concept and process

– Mandatory establishment of Incident Support Groups for Level 3 incidents

– State exercise register

– Revocation of Westplan – Dambreak– The SEMC Policy and Governance

Review Project• Reviewed and endorsed the State

Hazard Plan – Heatwave

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The State Emergency Management Committee

Subcommittee / reference group Objective No. of

meetings Key achievements and updates

Recovery Subcommittee

Chair: Ms Sue Ash, SEMC

Sponsor: Ms Sue Ash, SEMC

Executive Officer: Ms Katherine Clarke, OEM

To provide a forum for promoting and supporting the development and maintenance of emergency recovery capability

2 • State Waste Management Project – identified the skills, equipment, systems and licences/approvals required to carry out emergency waste management activities

• Local Waste Management Project – extensive consultation and review of the legislation has been undertaken and preferred client panel for waste management contract providers has been developed and is now operational

• Public Communications Management Project – WA Police Force, Public Information Reference Group and the Recovery Communications Project Advisory Group have completed the development of the Communicating in Recovery Guidelines

• Discharge of the subcommittee – the SEMC endorsed the merger of the Recovery Subcommittee and the Community Engagement Subcommittee to form the Recovery and Community Engagement Subcommittee

SEMC Annual Report / OEM Final Report 2017–18 1716

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The State Emergency Management Committee

Subcommittee / reference group Objective No. of

meetings Key achievements and updates

Risk Subcommittee

Chair: Mr Mal Cronstedt, OEM

Sponsor: Dr Ron Edwards, SEMC

Executive Officer: Mr Andrew Sanders, OEM

To act as a reference group to consult and advise on ways to improve the coordination and application of an evidence-based approach to emergency risk management for all hazards

3 • State Risk Project – completed 26 of 27 standard state-level risk assessments. Counter terrorism is the remaining hazard which has been subject to a separate risk process through the Australia-New Zealand Counter-Terrorism Committee. Local-level risk assessment program underway with over half of local governments involved.

• Significant developments made in hazard assessment studies and DFES intelligence products

• Established Decision Support System Project and methodologies for the South West

• Developed risk treatments prioritisation methodology and database

• Ongoing development of hazard and risk information in the Knowledge Hub, risk assessment tools and release of hazard videos

• Published the Western Australia Emergency Risk Management Procedure

• Upgraded the Western Australian Risk Register Tool to include treatment decisions

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Subcommittee / reference group Objective No. of

meetings Key achievements and updates

State Bushfire Coordinating Committee

Chair: Mr Murray Carter, Office of Bushfire Risk Management, DFES

Sponsor: Mr Darren Klemm, DFES

Executive Officer: Ms Kendall Winter, Office of Bushfire Risk Management, DFES

(1) To identify and oversee the implementation of bushfire-related risk treatments throughout Western Australia that are efficient, effective and sustainable

(2) To promote interagency cooperation and interoperability and the effectiveness of arrangements between agencies, local governments and volunteers

3 • Developed draft State Bushfire Management Policy – providing a solid base for guiding decisions of government, non-government organisations, communities and volunteers in bushfire management

• Members attended a tour of Mundaring and Toodyay to enhance collective understanding of bushfires

• Presentation to State Bushfire Coordinating Committee (SBCC) members on a collaborative project between Western Power, Landgate and DFES that enabled Western Power to redesign power pole replacement on a risk-based approach

• Established the $15 million Mitigation Activity Fund, which has enabled the identification of bushfire risk, appropriate treatment actions and prioritisation of treatment

• Discharge of the subcommittee – the SEMC has discharged the subcommittee. It will be superseded by the new State Bushfire Advisory Council, which will largely incorporate the functions of the SBCC with an expanded remit and membership

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Subcommittee / reference group Objective No. of

meetings Key achievements and updates

Public Information Reference Group

Chair (acting): Mr Samuel Dinnison, WA Police Force

To provide advice and support to the SEMC and its subcommittees in relation to arrangements for the provision of emergency public information and public awareness related to emergency management in Western Australia

4 • Undertook a membership and governance review ensuring future membership and processes are consistent with broader SEMC/OEM arrangements

• Managed the Recovery Communications Project, resulting in development of the new Communicating in Recovery Guidelines and identification of areas of improvements to state emergency management arrangements

• Commenced reviews of state public information roles and responsibilities and the State Emergency Public Information Plan

• Conducted Exercise Night Owl – an after hours exercise of the State Public Information Line

• Continued exercise and training activities relating to the Reference Group and State Emergency Public Information Coordinator functions

Essential Services Network Operators Reference Group

Chair: Mr Mark Vassiliou, Main Roads WA

Executive Officer: Ms Sarah Clarke, Water Corporation

To provide a forum for the exchange of information that will assist or improve the operation of essential services or functions in relation to emergency management for the benefit of the community

4 • Re-established regular visits to all emergency management services/support organisations and operation centres

• Prepared a Mutual Assistance Policy• Established (in consultation with

DFES) an All Hazard Liaison Group for Essential Services Network Operators during emergencies in respect of the hazards for which DFES is the hazard management agency

• Started to investigate whether a consistent approach can be undertaken to inform Essential Services Network Operators of any Total Fire Bans and Vehicle Harvest Movement Bans

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District Emergency Management

Committees (DEMCs)

Local Emergency Management Committees (LEMCs)

State Emergency Management Committee (SEMC)

SEMC Subcommittees and Reference Groups

District emergency management committee positioning in the SEMC structure

The Emergency Management Act 2005 establishes emergency management districts in Western Australia and district emergency management committees (DEMCs). There are seven emergency management districts in the regions and four in the Perth metropolitan area.

The DEMCs are an integral part of the state’s emergency management structure. Their members come from state and local government agencies, service providers and community agencies that have a key role in prevention, preparedness, response and recovery activities in their districts.

DEMCs are led by the Police Superintendent (Chair) and DFES Superintendent (Deputy Chair) in each district.

DEMCs form an important conduit between state and local-level emergency management. They are key forums for relationship building, bringing together decision-makers from emergency management agencies, industry and local government to discuss emergency management issues affecting their district.

District emergency management advisorsThe OEM’s Regional Services section continues to provide support to emergency management districts through their network of District Advisors (DAs).

The key role of DAs is to engage with people across their districts to enhance emergency management abilities and capacities, and build resilience.

The DAs provide executive officer support to the DEMCs and provide advice and knowledge to local government and local emergency management committees (LEMCs).

The DAs promote prevention, preparedness, response and recovery activities and are a conduit between the regions and the OEM on a wide range of topics including emergency management policy and legislation, recovery activities, Western Australia Natural Disaster Relief and Recovery Arrangements (WANDRRA) funding, risk assessment, capability development and preparedness, and annual reporting.

DAs are located in Albany, Bunbury, Geraldton, Northam and Broome. There are also two DAs in the Perth metropolitan area.

District emergency management committees

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Some key activities from the districts during the reporting year follow:Great Southern• Completed two risk

assessment workshops – Marine Risk and Emergency Services Risk.

• Fostered cross-boundary and agency collaboration. Members attended a special joint meeting of the Goldfields–Esperance and Great Southern DEMCs in Esperance. The meeting included presentations on the geological background of Earthquake, and some of the learnings from the response to the Esperance and Ravensthorpe Flood event, as well as the Kalgoorlie Storm event.

• Undertook a comprehensive review of the operational effectiveness of the Operational Area Support Group for the Albany Complex Fires with several lessons learnt and recommendations being implemented.

• Provided DEMC support to the State Risk Project – local-level rollout.

Midwest• Completed preliminary

treatment workshop with the DEMC.

• Completed an Emergency Risk Assessment Report (Shire of Coorow). Representatives from 17 local governments participated in the State Risk Project (Local) Workshop 1, introducing the emergency risk management process. Many local governments are showing progress with local risk assessment workshops planned for August 2018 onwards.

• Achieved the highest submission rate in the last three years for the Annual and Preparedness Report Capability Survey. Of the 19 local governments in the district, 18 submitted the survey in 2017-18.

• Reported on existing capability of local governments in the district in 2017 and identified potential key capability gaps (areas of improvement). The DEMC can use this data to provide strategic direction and agenda items for DEMC meetings.

• Produced a Capability Topic Score for 19 local governments and delivered 2017 Capability Topic Score data to 12 local governments. This data can show existing capability and key capability gaps (areas of improvement) and provide strategic direction and potential agenda item topics for LEMC meetings. The local governments can compare their reported capability with the average score for other local governments of similar population, density and remoteness to identify key capability gaps. The local governments can also compare their capability score with the district average and the state average.

South West• All 12 South West local

governments are now engaged to progress the State Risk Project – local-level rollout. A number of group and individual risk workshops have been run to assist the local governments. Two out of 12 local governments have completed risk assessments for their top five risks.

• Completed DEMC risk treatment workshops – Personal Safety risk on 25 October 2017 and Emergency Services on 1 May 2018.

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• Completed State Risk Project (Local) Storm and Flood risk workshop on 29 August 2017 and Electricity Supply Disruption and Human Epidemic risk workshop on 3 October 2017 with the Shire of Dardanup, City of Bunbury, Shire of Capel, City of Busselton, Shire of Donnybrook–Balingup and Shire of Augusta–Margaret River.

• Completed State Risk Project (Local) Storm and Flood risk workshop on 27 June 2018 with the Shire of Harvey, Shire of Collie, Shire of Bridgetown–Greenbushes, Shire of Nannup, Shire of Boyup Brook and Shire of Manjimup (Storm only).

• Completed State Risk Project (Local) Bushfire risk workshop with the Shire of Donnybrook–Balingup on 12 September 2017 and Shire of Augusta–Margaret River on 13 February 2018.

Metropolitan (North, East, Central and South)• The district risk treatment

workshops did not take place in the metropolitan area as many of the treatment ideas generated at the metropolitan district level would be state-level treatments.

• Local governments in these districts are currently conducting their own risk assessments that will be followed by treatment discussions for their local areas. These discussions will offer localised treatment options that can be implemented by the local government or a collective group of local governments.

• The majority of the Metropolitan DEMC State Government agencies – including the City of Perth, City of Belmont and Town of Victoria Park – were members of the Perth Stadium Working Group.

• The South Metropolitan DEMC continued to support the MoU with local governments to share resources in response and recovery activities.

Wheatbelt• Completed State Risk

Project – district risk workshops. The two additional hazards of Human Epidemic and Animal and Plant Biosecurity (Foot and Mouth) were assessed on 14 June 2018. Electricity Supply Disruption will be assessed in October 2018. Members have also given substantial support to local government risk assessment workshops and ensured agencies have been represented at these local level activities.

• Eight local governments participated in a semi-regional exercise. The outcomes of this exercise were based around the sharing of resources in a widespread incident. The results and recommendations are listed in the formal exercise report.

• Attended two exercises during the year:– At Dowerin, which focused

on testing the efficacy of local government arrangements, including recovery, and evaluating the ability of local governments and agencies to share/source resources in a widespread incident.

– A regional DFES fire exercise, which included Incident Support Group/Operational Area Support Group and a recovery meeting to evaluate the agency’s understanding of roles and responsibilities and processes such as the Comprehensive Impact Assessment.

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Goldfields–Esperance• Fostered cross-boundary

and agency collaboration. Members attended a special joint DEMC meeting of the Goldfields–Esperance and Great Southern DEMCs in Esperance. The meeting included presentations on the geological background of Earthquake, and some of the learnings from the response to the Esperance and Ravensthorpe Flood event as well as the Kalgoorlie Storm event.

• Prioritised the continued development of risk treatment options and continued to monitor and review risk profiles. Members have supported risk work by ensuring their agencies are in attendance where possible.

• Agreed to organise an exercise to assess the Rail Crash Plan east of Kalgoorlie. Members have agreed that the plan and the risk posed are areas of concern and work will continue to review and enhance the plan, and monitor and review this particular risk.

• Created a working group to address concerns about Emergency Medical Assistance and evacuations along the Eyre Highway.

Kimberley• During the 2017–18 wet

season, the district had four tropical cyclones (TCs) and a significant tropical low:– TC Hilda, December 2017– TC Joyce, January 2018– Tropical low, January 2018– TC Kelvin, February 2018– TC Marcus, March 2018.

• There was extensive damage to state and local roads estimated at $30 million.

• The following Kimberley local governments were eligible for financial assistance through WANDRRA:– Shire of Broome with

TC Hilda and associated heavy rainfall; and TC Joyce and associated rainfall.

– Shires of Broome, Derby–West Kimberley, Wyndham–East Kimberley, Halls Creek with tropical low and associated flooding; and Shires of Broome, Derby–West Kimberley and Wyndham–East Kimberley with TC Kelvin and associated flooding.

• On 5 September 2017, the Shire of Derby–West Kimberley and the Shire of Broome undertook OEM emergency risk management training.

• The Shire of Derby–West Kimberley is due to commence the Emergency Risk Management process in 2018–19.

Pilbara• LEMAs for the Shires of

East Pilbara and Exmouth were noted by the SEMC for the first time – a great achievement as it is the first time these local governments have had current and compliant LEMAs.

• The LEMAs were developed, reviewed for compliance and progressed through the approvals process, including noting by the SEMC. The DA provided advice and support throughout the entire development and approvals process:– Shire of East Pilbara –

noted by the SEMC on 3 October 2017

– Shire of Exmouth – noted by the SEMC on 8 December 2017.

• Three local governments have undertaken OEM emergency risk management training – Shire of Ashburton (Inland and Pannawonica LEMCs), Shire of Exmouth and Shire of East Pilbara.

• Shires of East Pilbara and Exmouth will commence risk assessment workshops in August 2018.

• The Shire of Ashburton’s schedule will be released during the year.

• The Shire of Pilbara was eligible for financial assistance through WANDRRA for the tropical low in January 2018.

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Position of local emergency management committees within the SEMC structure

District Emergency Management Committees (DEMCs)

Local Emergency Management

Committees (LEMCs)

State Emergency Management Committee (SEMC)

SEMC Subcommittees and Reference Groups

Section 38 of the Emergency Management Act 2005 (EM Act) requires local governments to establish one or more LEMCs. The LEMCs advise and assist local governments to ensure that local emergency management arrangements (LEMAs) are established, reviewed and tested in accordance with s. 39 of the EM Act.

The LEMCs have representation from organisations and agencies that play a role in emergency management within each area. Local governments are particularly important, providing expert knowledge about their communities and environments. It is the role of local governments not only to ensure that LEMAs are prepared and maintained, but also to manage recovery after an emergency.

Under s. 40 of the EM Act, all LEMCs are required to prepare and submit to their district’s DEMC an annual report on activities during the financial year.

Local emergency management committees

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Status of local emergency management arrangementsThe maps on this page indicate the number of LEMAs per emergency management district, categorised as follows:• LEMAs that are current• LEMAs that are nearing

review• LEMAs that are overdue for

review

The 2018 LEMA status is an overall improvement on the previous year.

Note: The number of LEMAs expected from an emergency management district may be different from the number of local governments in the district because some local governments have more than one LEMA while other local governments combine for the purposes of emergency management, resulting in a reduced number of LEMAs.

Status of local emergency management arrangements as at 30 June 2018

P i l b a r aP i l b a r a

W h e a t b e l tW h e a t b e l t

K i m b e r l e yK i m b e r l e y

G r e a tG r e a tS o u t h e r nS o u t h e r n

M i d w e s t -M i d w e s t -G a s c o y n eG a s c o y n e

G o l d � e l d s - E s p e r a n c eG o l d � e l d s - E s p e r a n c e

S o u t h W e s tS o u t h W e s t

LEMA Status 2018

Current

Nearing review

Overdue

N o r t hN o r t h

E a s tE a s t

S o u t hS o u t h

C e n t r a lC e n t r a l

Metropolitan Districts

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The State Emergency Management Framework

STATUTO

RYPRO

CEDU

RAL

INFO

RMATIO

N

State Emergency Management GuidelinesThe State Emergency Management Guidelines are prepared to assist personnel in conducting

their role, by proposing methods for conducting activities, and are not formal instructions.

State Emergency Management Plan and WestplansThe State Emergency Management Plan and Westplans are prepared under s.18 of the Emergency Management

Act 2005 to outline State arrangements for the emergency management of hazards and support functions.

State Emergency Management ProceduresThe State Emergency Management Procedures are developed when a procedural activity needs to be explained through a step by step process, allowing emergency management agencies and personnel

to complete tasks in compliance with State Emergency Management Policy.

Emergency Management Act 2005

Emergency Management Regulations 2006

State Emergency Management PolicyThe State Emergency Management Policy is prepared in accordance with s. 17 of the Emergency Management

Act 2005. Amendments may arise if there is a requirement to prescribe a formal instruction or process as a result of amendment to governing legislation or a SEMC resolution. This shall ensure clearly defined roles

and responsibilities of all parties involved and is supported by the following documents.

The Assurance, Lessons Management and Exercise Management Frameworks have been progressed to support the SEMC commitment to these functions. The Assurance Framework is under development in consultation with the Office of the Auditor General.

The State Emergency Management Framework

Policy and legislation updates

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The Lessons Management Framework proposal was endorsed by the SEMC in December 2017 for consultation purposes. The Western Australian lessons management model was presented at the 2017 National Lessons Management Forum. This proposal commits to continue national alignment among developing frameworks. A further paper was published in the April 2018 Australian Journal of Emergency Management. A governance structure for lessons management has been developed through a Reference Group, which will monitor and recommend priority lessons for the sector to address.

The State Exercise Management Framework Project commenced in May 2018 with the appointment of the project officer. It is anticipated that this project will be completed by June 2019.

Planning for animals in emergencies continued during the year. In 2017, the Department of Primary Industries and Regional Development (DPIRD) appointed a State Animal Welfare Emergency Coordinator to progress the required work, and in March 2018 the SEMC formally assigned responsibility for animal welfare in emergencies.

The OEM continued to provide project oversight and facilitated DPIRD’s development of the draft State Emergency Animal Welfare Plan.

The SEMC Policy and Governance Review Project progressed, undertaking reviews of a number of emergency management policy areas including state-level emergency management arrangements, emergency public information, recovery arrangements, exchange of information, volunteer protections, traffic management and funding for emergencies.

Changes to emergency management legislationThere were no changes to emergency management legislation during the year.

Changes to state emergency management documentsAs part of the regular updating of the suite of state emergency management documents, on 1 August 2017, 8 December 2017 and 4 May 2018 the SEMC approved amendments. These amendments included policy content and statement of fact (factual accuracy) amendments and corrections of a minor nature.

Amendments of note:December 2017• Statement amended to state

that the emergency risk management process must

follow state emergency management Prevention and Mitigation Procedure 1 and its attachment, Western Australian Emergency Risk Management.

May 2018• Introduction of the concept

of emergency determination – due to their nature and magnitude, Level 2 and Level 3 incidents require a significant and coordinated response which meets the Emergency Management Act 2005 definition of ‘emergency’. Policy amendment was made to specify that notification of Level 2 and Level 3 incidents must be provided to the OEM in accordance with State Emergency Management Response Procedure 2.

• Amendments to require consideration of establishment of an Incident Support Group (ISG) for Level 2 incidents and that an ISG must be established for Level 3 incidents.

• Statement inserted regarding the SEMC assigning the role and responsibility for coordinating animal welfare during emergencies to DPIRD.

• Insertion of new text on NBN Co Limited’s role and responsibilities in relation to emergency management.

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This has been undertaken through the Westplan Rationalisation Project, which involves the rationalisation and amalgamation of the majority of Westplans, as agreed by the SEMC in December 2016, and the conversion of all Westplans into State Hazard Plans as subplans to the State Emergency Management Plan.

There has also been full content reviews for some of the newly created State Hazard Plans. Reviews are being conducted when the original Westplan was due for review, or if agencies identify a need to conduct a full review as part of the amalgamation activities.

Once the new State Hazard Plan is completed, the former associated Westplan is revoked.

While substantial progress has been made with this project, it has taken longer than anticipated due to:• the complexities and

sensitivities in amalgamating some plans into single State Hazard Plans

• the number of lead agencies and stakeholders involved

• some agencies taking the opportunity to conduct a full content review of their arrangements earlier than required.

State Hazard Plan development status as at 30 June 2018

New State Hazard Plan name Lead agency Amalgamating

WestplansStatus of development of the State Hazard Plan

1 Animal and Plant Biosecurity

Department of Primary Industries and Regional Development (DPIRD)

• Animal and Plant Biosecurity

• Conversion activities are in the final stages

• Plan due for full review in March 2020

2 Crash Emergency The SEMC with input from WA Police Force, DFES, the Public Transport Authority (PTA) and Arc Infrastructure

• Air Crash• Brookfield

Rail1 Crash Emergencies

• Rail Crash PTA• Road Crash

• The final draft of the converted plan was due for endorsement by the Response Capability Subcommittee in July 2018 and approval by the SEMC in August 2018

• Full content review completed1 Arc Infrastructure was formerly known as Brookfield Rail

Details of all amendments are available at: www.semc.wa.gov.au/resources/legislation-and-policy-framework/policy-amendments.

Changes to state emergency management plans (Westplans)The revocation of Westplan – Dambreak was finalised by the SEMC on 9 March 2018.

As part of a broader Policy and Governance Review Project, the OEM has been addressing the substantial duplication between Westplans of a similar nature and with the State Emergency Management Plan for the 27 hazards prescribed in the Emergency Management Act 2005.

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State Hazard Plan development status as at 30 June 2018

New State Hazard Plan name Lead agency Amalgamating

WestplansStatus of development of the State Hazard Plan

3 Energy Supply Disruption

Public Utilities Office (PUO)

• Electricity Supply• Gas Supply• Liquid Fuel Supply

• Final draft of the converted plan is out for consultation

• Plan undergoing full content review

4 Fire DFES • Fire (revoked and converted to a State Hazard Plan)

• Conversion completed

• Full review of State Hazard Plan in progress

5 HAZMAT (hazardous materials)

Annexes:

Nuclear Powered Warship (NPW)

Space Re-entry Debris (SPRED)

HAZMAT Plan: DFES

NPW and SPRED annexes: WA Police Force

• HAZMAT• Chemical and

radiological aspects of Chemical, Biological, Radiological and Nuclear (CBRN)

• NPW• SPRED

State Hazard Plan:• The final draft

of the converted plan was due for endorsement by the Response Capability Subcommittee in July 2018 and approval by the SEMC in August 2018

• Full content review completed

Annexes:• Conversion activities

are in the final stages

• Annex NPW is due for full review in March 2021 and Annex SPRED is due for full content review in August 2020

1 Arc Infrastructure was formerly known as Brookfield Rail

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State Hazard Plan development status as at 30 June 2018

New State Hazard Plan name Lead agency Amalgamating

WestplansStatus of development of the State Hazard Plan

6 Heatwave Department of Health

• Heatwave (revoked and converted to a State Hazard Plan)

• Conversion completed (incorporating full content review)

• Plan due for full review in May 2023

7 Human Biosecurity Department of Health

• Human Epidemic• Biological

component of CBRN

• Conversion of the plan is in progress

• Plan undergoing full content review

8 Maritime Environment Emergency

Department of Transport – Marine

• Marine Oil Pollution

• Marine Transport Emergency

• The final draft of the converted plan was due for endorsement by the Response Capability Subcommittee in July 2018 and approval by the SEMC in August 2018

• Plan due for full review in September 2020

9 Persons Lost or in Distress Requiring a Search and Rescue Response (SAR emergency)

WA Police Force • Land Search• Marine Search and

Rescue

• The final draft of the converted plan was due for endorsement by the Response Capability Subcommittee in July 2018 and approval by the SEMC in August 2018

• Full content review completed

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State Hazard Plan development status as at 30 June 2018

New State Hazard Plan name Lead agency Amalgamating

WestplansStatus of development of the State Hazard Plan

10 Terrorist Act WA Police Force • Terrorist Act (revoked and converted to a State Hazard Plan)

• Conversion completed

• Plan due for full review in August 2019

11 Collapse and Earthquake (name to be confirmed)

DFES • Collapse• Earthquake

• Conversion of the plan is in progress

• Plan undergoing full content review

12 Tsunami DFES • Tsunami (revoked and converted to a State Hazard Plan)

• Conversion completed

• Plan due for full review in August 2020

13 Severe Weather DFES • Cyclone• Storm• Flood

• Conversion of the plan is in progress

• Plan undergoing a full content review

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State Emergency Management Plans in Western Australia are transitioning from Westplans to State Hazard Plans. They provide strategic, state-level arrangements for managing the particular hazards to which they apply.

The table below shows the status of all State Emergency Management Plans, including exercises undertaken and state-level activations that tested hazard management agency (HMA) plans for the period 1 July 2017 to 30 June 2018.

HMA State Emergency Management Plans – status and testing, 2017–18

Hazard management agency

Westplan / State Hazard Plan (status)

Hazard

Date of State Emergency Management Plan exercise and name

Date of state-level incident and name

1 Commissioner of Police

Westplan Air Crash (under review)

Air Crash

Exercise Mayfly June 2018

Nil

2 Agriculture Director General

Westplan Animal and Plant Biosecurity (current)

Animal or Plant Pests or Diseases

Nil 2017 Potato Dickeya dianthicola response multi-region June to Sept 2017

Citrus Canker – NT & WA April 2018

3 Fire and Emergency Services Commissioner

Westplan Collapse (under review)

Collapse Injury or threat to life of persons trapped by the collapse of a

structure or landform

Exercise Jaguar August 2017

Nil

4 Fire and Emergency Services Commissioner

Westplan Cyclone (under review)

Cyclone

Nil TC Joyce January 2018

TC Kelvin February 2018

TC Marcus March 2018

Hazard management agencies

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Hazard management agency

Westplan / State Hazard Plan (status)

Hazard

Date of State Emergency Management Plan exercise and name

Date of state-level incident and name

5 Fire and Emergency Services Commissioner

Westplan Earthquake (under review)

Earthquake

Exercise Jaguar August 2017

Nil

6 Coordinator of Energy

Westplan Electricity Supply Disruption (under review)

Electricity Supply Disruption Loss of or

interruption to the supply of electricity that is capable of

causing or resulting in loss of life,

prejudice to the safety, or harm to the

health, of a person

Exercise Aquawatt February 2018

Nil

7 Fire and Emergency Services Commissioner

State Hazard Plan Fire (interim) (under review)

Fire

Exercise Ember July – August 2017

Functional exercise October 2017

Albany Bushfire Complex Fires May 2018

8 Fire and Emergency Services Commissioner

Westplan Flood (under review)

Flood

Exercise Nimbus May 2018

Nil

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Hazard management agency

Westplan / State Hazard Plan (status)

Hazard

Date of State Emergency Management Plan exercise and name

Date of state-level incident and name

9 Coordinator of Energy

Westplan Gas Supply Disruption (under review)

Gas Supply Disruption Loss of or

interruption to the supply of natural

gas, that is capable of causing or

resulting in loss of life, prejudice to the

safety, or harm to the health, of a person

Nil Nil

10 State Health Coordinator

(Biological)

Westplan Chemical, Biological, Radiological and Nuclear (under review)

Hazardous Substance –

Biological Actual or impending

spillage, release or escape of a

biological, substance that is capable of

causing loss of life, injury to a person or

damage to the health of a person, property or the environment

Nil Nil

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Hazard management agency

Westplan / State Hazard Plan (status)

Hazard

Date of State Emergency Management Plan exercise and name

Date of state-level incident and name

11/12 Fire and Emergency Services Commissioner

(Chemical, radiological or other substance)

Westplan Hazardous Materials Emergencies [HAZMAT] (under review)

Hazardous Substance –

Chemical Actual or impending

spillage, release or escape of a chemical,

radiological or other substance that is

capable of causing loss of life, injury to a person or damage

to the health of a person, property or

the environment

Exercise Jaguar August 2017

Field exercise Canning Dam August 2017

Field Exercise Heath Ledger Theatre Perth Sept 2017

Field exercise February 2018

Exercise Centum May 2018

Nil

13 State Health Coordinator

State Hazard Plan Heatwave (current)

Heatwave

Discussion exercise December 2017

Nil

14 State Human Epidemic Controller

Westplan Human Epidemic (current)

Human Epidemic

Nil Nil

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The State Emergency Management Committee

Hazard management agency

Westplan / State Hazard Plan (status)

Hazard

Date of State Emergency Management Plan exercise and name

Date of state-level incident and name

15 Commissioner of Police

Westplan Land Search (under review)

Land search For persons lost or in distress that

requires a significant coordination of

search operations

Nil Land search in Bedfordale

May 2018

16 Coordinator of Energy

Westplan Liquid Fuel Supply Disruption (under review)

Liquid Fuel Supply Disruption Loss of or

interruption to the supply of liquid fuel as defined

in the Liquid Fuel Emergency Act 1984 (Cwlth) s. 3(1), that is capable of causing

or resulting in loss of life, prejudice to the

safety, or harm to the health, of a person

Nil Nil

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The State Emergency Management Committee

Hazard management agency

Westplan / State Hazard Plan (status)

Hazard

Date of State Emergency Management Plan exercise and name

Date of state-level incident and name

17 Marine Safety, General Manager

Westplan Marine Oil Pollution (current)

Marine Oil Pollution Actual or impending spillage, release or escape of oil or an oily mixture that is capable of causing loss of life, injury to a person or damage

to the health of a person, property or

the environment

Exercise Ningaloo Challenge Sept 2017

Nil

18 Commissioner of Police

Westplan Marine Search and Rescue [MARSAR] (under review)

Marine Search For persons lost or in distress on inland waterways within the limits of a port or in a fishing vessel or

pleasure craft within the limits of a port or

at sea

Nil Rottnest January 2018

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The State Emergency Management Committee

Hazard management agency

Westplan / State Hazard Plan (status)

Hazard

Date of State Emergency Management Plan exercise and name

Date of state-level incident and name

19 Marine Safety, General Manager

Westplan Marine Transport Emergency (current) Marine Transport

Emergency Actual or impending

event involving a ship that is capable of

causing loss of life, injury to a person or

damage to the health of a person, property or the environment

Exercise Ningaloo Challenge Sept 2017

Nil

20 Commissioner of Police

Westplan Nuclear Powered Warships (current)

Radiation Escape from a Nuclear-

Powered Warship

SEMC exemption for exercising in 2017/2018 (Resolution – 72/2017)

Nil

21 Public Transport Authority (PTA)

Westplan Rail Crash PTA (under review)

Rail Crash – PTA Network (passenger)

Nil Nil

22 Brookfield Rail Pty Ltd

Westplan Brookfield Rail Crash Emergencies (under review) Rail Crash –

Brookfield Rail Network (freight)

Nil Nil

23 Commissioner of Police

Westplan Road Crash (under review)

Road Crash

SEMC exemption for exercising in 2017/2018 (Resolution – 72/2017)

Nil

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The State Emergency Management Committee

Hazard management agency

Westplan / State Hazard Plan (status)

Hazard

Date of State Emergency Management Plan exercise and name

Date of state-level incident and name

24 Commissioner of Police

Westplan Space Re-entry Debris [SPRED] (current)

Space Re-Entry Debris

SEMC exemption for exercising in 2017/2018 (Resolution – 72/2017)

Nil

25 Fire and Emergency Services Commissioner

Westplan Storm (under review)

Storm

Exercise Nimbus

May 2018

Nil

26 Commissioner of Police

State Hazard Plan Terrorist Act (current)

Terrorist Act

Exercise Outback (Discex/ Deployment)

August/Nov 2017

Exercise Centum – with Health (Discex, Drill & combined Functional/ Field exercise)

April/May 2018

Nil

27 Fire and Emergency Services Commissioner

State Hazard Plan Tsunami (current)

Tsunami

Nil Nil

* In accordance with State Emergency Management Policy Statement 4.8.5, where the response part of a Westplan is activated or arrangements used during an emergency, this activation may satisfy the field exercise requirement. This is provided the agency involved prepares and submits a post-incident report that meets the post-exercise report requirements, as detailed in State Emergency Management Preparedness Procedure 19.

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The operational structure of the State Emergency Management Committee (SEMC) and the Office of Emergency Management (OEM) is provided below.

Department of Fire and Emergency Services

(DFES)

State Emergency Management Committee (SEMC)

Office of Emergency Management (OEM)

Minister for Emergency Services Hon. Francis Logan MLA

SEMC Subcommittees and Reference

Groups

District Emergency

Management Committees

(DEMCs)

Local Emergency Management Committees

(LEMCs)

Sub-department

Enabling legislationThe SEMC is established by s. 13(1) of the Emergency Management Act 2005.

The OEM was established on 1 December 2016 as a subdepartment of the Department of Fire and Emergency Services (DFES) pursuant to s.56(2) of the Financial Management Act 2006. From 1 July 2018 the OEM was integrated into DFES.

Responsible MinisterThe Hon. Francis Logan MLA, Minister for Emergency Services.

Employing authorityThe employing authority of the OEM is the Fire and Emergency Services Commissioner.

The Office of Emergency ManagementOperational structure

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The Office of Emergency Management

The OEM comprises 34.29 full-time equivalents. DFES provides support services in human resources, finance and information technology.

The OEM provides executive, policy and administrative support to the SEMC to enable it to carry out its functions under the Emergency Management Act 2005 and meet its requirements in its strategic plan.

To enable the OEM to support the SEMC the Office comprises five sections: Risk and Resilience (including Regional Services); Office of the Executive Director; Business Services; Assurance; and Recovery.

Executive Director M Cronstedt AFSM

Director Assurance M Leclercq

A/Director Business Services J Murgia

A/Executive Manager

Office of the Executive Director

R de Blank

Director Risk and

Resilience A Sanders

State Recovery Coordinator

Recovery S Joske CSC

OEM organisational chart and key responsibilities

Organisational structure

Risk and ResilienceRisk and Capability• Oversees the State Risk

Project and State Capability Project

• Oversees production of the Emergency Preparedness Report

• Promotes a consistent profile of risk across the state from an all-priority hazards perspective and ascertains appropriate options for mitigation

• Works to inform appropriate mitigation and capability enhancement

• Develops policy advice and guidance for implementing risk management and capability development

• Represents the state on national committees on risk mitigation

• Provides Executive Officer and administrative support to the SEMC Risk Subcommittee.

Regional Services• Builds strong emergency

management interagency networks across districts and local areas

• Provides a conduit between Local Emergency Management Committees (LEMCs), District Emergency Management Committees (DEMCs) and the SEMC to ensure consistent and comprehensive coverage of the state in emergency management matters

• Supports local governments’ emergency management arrangements through LEMCs

• Provides executive support to DEMCs

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The Office of Emergency Management

• Assists local governments to establish recovery management arrangements for major emergency events

• Contributes to the development of SEMC policy and procedures

• Advises and coordinates with local governments and district stakeholders on risk, capability and other emergency management issues

Office of the Executive Director• Provides administrative

support to the SEMC and its subcommittees

• Provides high-level support for the Executive Director and Corporate Leadership Team

• Coordinates delivery of services provided by the Office of Executive Director

• Manages internal and external communications, including publications and website

• Provides Executive Officer and administrative support to the SEMC Community Engagement Subcommittee.

Business Services• Oversees financial

management and annual reporting

• Manages human resources and occupational safety and health

• Manages Information technology

• Administers grants• Manages records• Manages corporate risk

Assurance• Develops, monitors, reviews

and assesses the state emergency management arrangements, plans, policies, systems and procedures

• Leads stakeholders in policy/plan review processes

• Administers the Emergency Management Act 2005 (EM Act) on behalf of the SEMC

• Provides specialist policy and legal advice and education regarding responsibilities under the EM Act

• Provides Executive Officer support to the SEMC Response Capability Subcommittee

• Manages development of Emergency Management Assurance and Lessons Management Frameworks

• Tracks status of incident and inquiry recommendations on behalf of the SEMC

Recovery• Coordinates whole-of-

government approach to recovery, working with agencies, local governments and the community

• Promotes emergency recovery capability at a federal, state and local level

• Reviews local government Recovery Arrangements Framework

• Represents the state on national recovery committees

• Participates in State Emergency Coordination Group meetings and provides state-level recovery advice

• Liaises with local government CEOs and Local Recovery Coordinator(s) during emergencies to ensure recovery arrangements are established

• Oversees and manages the Western Australia Natural Disaster Relief and Recovery Arrangements (WANDRRA)

• Consults and negotiates with the Commonwealth on WANDRRA, and liaises with other state jurisdictions on emerging recovery models

• Provides Executive Officer and administrative support to the SEMC Recovery Subcommittee

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The Office of Emergency Management

Senior officersMal Cronstedt AFSM – Executive Director

Mal was appointed inaugural Director of the Office of Bushfire Risk Management in August 2012. In August 2014 he became Executive Director of the SEMC Secretariat (and the OEM in 2017). Mal is an ex-officio member of the SEMC and Chair of the SEMC Risk Subcommittee. In addition, he is actively involved in the disability sector, as Chair of the Development Disability WA board.

Mal holds a Master of Business Administration, a Graduate Diploma in Disaster Management and a Bachelor of Arts. He is a graduate of the Australian Institute of Company Directors, the Institution of Fire Engineers and the Australia and New Zealand School of Government’s Executive Fellows Program.

Mal Cronstedt commenced his career in the fire service as a volunteer in 1976, commencing full-time in 1982, subsequently progressing through the ranks across the state in a variety of operational and support roles. He undertook a secondment to Fire & Rescue NSW (then NSW Fire Brigades) in 2003–04 and in 2005 joined the NSW Rural Fire Service as the Blue Mountains Superintendent.

Mal returned to Western Australia in 2008 as the Fire and Emergency Service Authority’s Rural Operations Coordinator South. He was subsequently appointed as Chief Superintendent Country South in July 2012, upon the creation of DFES.

Andrew Sanders – Director Risk and Resilience

Andrew Sanders has had a diverse career commencing in the early 1990s working for 10 years in the marine, agricultural and mineral exploration sciences across a number of government departments in Western Australia.

Andrew subsequently spent eight years in Singapore as a national and Olympic sports coach and as CEO of one of the country’s largest sports organisations, developing international elite sports programs and events.

Across his mineral exploration and sports management roles, he developed particular experience in organisational, financial, event and operational risk management.

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The Office of Emergency Management

Andrew holds a Bachelor of Science in Geology and Information Technology, a Master of Science in Mineral Economics, a Master of Business Administration and is a Graduate of the Australian Institute of Company Directors.

Andrew was involved with scoping and development of the inaugural 2012 Western Australian Emergency Preparedness Report and has led development of the State Risk Project since 2013. He has also represented Western Australia on the national risk subcommittee (RAMMS) since 2014.

In 2017–18 Andrew served as the OEM’s Director of Risk and Resilience and oversaw regional operations as well as the ongoing strategic risk and capability profiling of the state and production of the annual Emergency Preparedness Report.

Steve Joske CSC – State Recovery Coordinator

In March 2003 Steve joined the Red Cross as Executive Director for Western Australia after a long career in the Australian Army, including being the first Commander of the Australian Contingent to the Truce Monitoring Group in Bougainville. He was awarded the Conspicuous Service Cross in the 1998 Queen’s Birthday Honours for service in Bougainville.

In August 1998 he was reassigned as Colonel Olympic Games and Chief of Staff to Operation Gold, responsible for the planning and conduct of the Australian Defence Force’s security operations at the Sydney 2000 Olympic Games.

After resigning from the Australian Defence Force in 2000, Steve joined a large resource company as the Human Resources Manager at Leinster Nickel Operation in Western Australia.

As well as being the Executive Director of Red Cross WA, Steve served at the international level as Country Manager in Indonesia controlling Australian Red Cross post-tsunami recovery operations, and he led the national business improvement project and IT infrastructure upgrade for the Red Cross.

Steve holds a Master in Defence Studies from Deakin University. He has previously served on the boards of the Western Australian Council of Social Service (WACOSS), Leadership WA and the AIF Malaya Nursing Scholarship.

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The Office of Emergency Management

Administered legislationThe OEM assists the Minister for Emergency Services in the administration of the Emergency Management Act 2005.

Other key legislation impacting on the activities of the SEMC and the OEMIn the performance of its functions, the SEMC and the OEM comply with the following relevant legislation and code:

Auditor General Act 2006Commissioner’s Instruction No.7, Code of Ethics, 3 July 2012Competition and Consumer Act 2010Copyright Amendment (Digital Agenda) Act 2000Corruption and Crime Commission Act 2003Criminal Code Act Compilation Act 1913Disability Discrimination Act 1992Disability Services Act 1993Electoral Act 2007Electronic Transactions Act 2011Employment Dispute Resolutions Act 2008Equal Opportunity Act 1984Evidence Act 1995Financial Management Act 2006Freedom of Information Act 1992Fringe Benefits Tax Act 1986Government Financial Responsibility Act 2000Industrial Relations Act 1979Minimum Conditions of Employment Act 1993Occupational Safety and Health Act 1984Privacy Act 1988Public Interest Disclosure Act 2003Public Sector Management Act 1994Racial Discrimination Act 1975State Records Act 2000State Superannuation Act 2000State Supply Commission Act 1991Workers’ Compensation and Injury Management Act 1981

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Performance management framework

Outcome-based management frameworkThe core business of the OEM is to support the Government’s goal of ‘Results-based service delivery: greater focus on achieving results in key service delivery areas for the benefit of all Western Australians’.

Many initiatives also contribute towards the Government’s goals of ‘Social and environmental responsibility’ and ‘A stronger focus on the regions’.

Changes to outcome-based management frameworkThe outcome-based management structure of the SEMC Secretariat (now the OEM) was approved in 2013 for inclusion in the 2013–14 annual reporting period. There were no changes to the framework in 2017–18.

Outcome

Effective strategic coordination of emergency management

Key effectiveness indicator

Stakeholder assessment of strategic coordination and quality management

Key efficiency indicator

Average hourly cost of providing emergency management advice and consultation

Service

Emergency management advice and consultation

Outcome-based management structure

Shared responsibilities with other agenciesThe OEM supports the SEMC and its five subcommittees and two reference groups. Each subcommittee and reference group comprises organisational executives and senior personnel from a range of public sector agencies and private organisations. The ongoing involvement of all parties is critical to the success of the SEMC and the progression of emergency management arrangements across the state.

SEMC Annual Report / OEM Final Report 2017–18 4747SIG

NIFICAN

T ISSUES IMPACTIN

G ON TH

E OEM

46

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2. AGENCY PERFORMANCE

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2. AGENCY PERFORMANCE

Report on operations – OEM

Resource AgreementThe following performance information (financial and non-financial) is the subject of a Resource Agreement signed by the Minister for Emergency Services, the OEM and the Treasurer under Part 3, Division 5 of the Financial Management Act 2006. Resources are provided for the purpose of achieving one agency-level outcome – to ensure the effective strategic coordination of emergency management through the delivery of emergency management advice and consultation.

Financial targets

2018 Target (1)

($000s)

2018 Actual($000s)

Variation($000s)

Reason for significant variation between target and actual (2)

Total cost of services (expense limit details from Statement of Comprehensive Income)

16,128 10,784 -5,344 Lower than estimate mainly due to the Emergency Alert Upgrade payment to Emergency Management Victoria being deferred due to tendering delays, and the completion of ongoing Natural Disaster Resilience Program (NDRP) and National Bushfire Mitigation Program (NBMP) projects being behind schedule.

Net cost of services

(sourced from Statement of Comprehensive Income)

10,959 9,074 -1,885 Lower than estimate mainly due to the Emergency Alert Upgrade payment to Emergency Management Victoria being deferred due to tendering delays.

Total equity (sourced from Statement of Financial Position)

4,576 4,859 283

Agreed salary expense level

4,835 4,422 -413 Lower than estimate mainly due to the recruitment processes being deferred in respect of NDRP projects delivered by the OEM.

Agreed borrowing limit

0 0 0

(1) As specified in the budget statements.

(2) Further explanations are contained in Note 9.10 ‘Explanatory statement’ to the financial statements.

Actual results versus budget targets

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Report on operations – OEM

Working cash targets

Agreed limit($000s)

Target (1)/Actual (2)

($000s)

Variation($000s)

Reason for significant variation between target and agreed (3)

Agreed working cash limit (at Budget)

734 536 -198

Agreed working cash limit (at Actuals)

518 2226 1708 Higher than estimate mainly due to the Emergency Alert Upgrade payment to Emergency Management Victoria being deferred due to tendering delays, and the completion of ongoing Natural Disaster Resilience Program matching support costs being behind schedule.

(1) Reflects anticipated working cash.

(2) Reflects actual working cash at the end of the financial year.

(3) Further explanations are contained in Note 9.10 ‘Explanatory statement’ to the financial statements.

Summary of key performance indicators

2018Target (1)

2018Actual Variation (2)

Outcome: Stakeholder assessment of strategic coordination and quality management

68% 73% 5%

Service: Average hourly cost of providing emergency management advice and consultation

$54 $58 $4

(1) As specified in the budget statements.

(2) Further explanations are contained in note 9.10 ‘Explanatory statement’ to the financial statements.

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3. SIGNIFICANT ISSUES IMPACTING ON THE AGENCY

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Machinery of Government changes

On 14 February 2018, the Hon Francis Logan MLA, Minister for Emergency Services, announced that, as part of the review of government services, the Office of Emergency Management (OEM) would be integrated into the Department of Fire and Emergency Services (DFES). The OEM was a subdepartment of DFES under the Financial Management Act 2006. The Minister stated that the integration would help the Department improve its focus across all hazards and strengthen its prevention, preparedness, response and recovery functions. He added that DFES is being restructured into an organisation that will more fully integrate the many aspects of fire and emergency services. From 1 July 2018 the OEM ceased to be a subdepartment and was integrated into DFES.

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Current and emerging issues and trends

Preparedness for major emergenciesOne of the key messages at the joint Commonwealth/State Western Australia Annual Preparedness Brief held in September 2017 was the need to be prepared for more and larger catastrophic events, the limitation of risk treatment effectiveness and the requirement to reduce the residual risk. This highlighted the need to continue the focus on risk assessment, particularly at the local level.

Special Inquiry into the January 2016 Waroona FireThe Report of the Special Inquiry into the January 2016 Waroona Fire prepared by Euan Ferguson AFSM was commissioned under provisions of the Public Sector Management Act 1994. The report was released on 29 April 2016.

The OEM oversees the program in Western Australia, which focuses on reducing the vulnerability of communities to natural disasters, and addresses priorities outlined in the National Strategy for Disaster Resilience.

The most recent two-year NPA was due to expire on 30 June 2017. This agreement expired on 30 June 2018. The NPA was executed on 14 December 2017 with the supporting Implementation Plan signed on 14 April 2018.

The addition of another year’s extension to the NPA will enable WA to access the remaining funds of $9.4 million from the current round, to deliver important disaster resilience work for Western Australia.

From July 2017, the OEM chaired a working group overseeing the implementation of the recommendations and opportunities for improvement. Significant progress has been made. At 30 June 2018, of the 40 recommendations and opportunities for improvement, 32 had been completed, seven were in progress and one had not yet progressed.

Work is continuing to complete implementation of the outstanding recommendations and opportunities.

National Partnership Agreement on Natural Disaster ResilienceThe National Partnership Agreement on Natural Disaster Resilience (NPA) between the Attorney-General’s Department (now the Department of Home Affairs) and the State Government delivers the Natural Disaster Resilience Program.

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National Resilience TaskforceWestern Australia is well positioned to take advantage of the movement towards a mitigation/resilience building focus of the National Resilience Taskforce.

Through the work of the OEM the state already possesses substantial understanding of its risk profile and where and how to mitigate, gathered over five years through the SEMC’s State Risk Project. Furthermore, through the annual SEMC Emergency Preparedness Report cycle the OEM has a strong understanding of capabilities across 170 State Government agencies. This information can also be effectively utilised to help inform investment in resilience building.

As part of the taskforce, DFES will ensure the framework accommodates the geographic, environmental, economic and demographic circumstances of our state and that we are able to capitalise on the investments we have already made in understanding our risk, capability and preparedness level.

Emergency AlertEmergency Alert (EA) is a fully inclusive telephony

based national emergency warning system managed by Emergency Management Victoria on behalf of all states and territories. The current service contracts will expire on 30 June 2019. Negotiations are continuing to provide a new solution (EA Phase 4) by 1 July 2019.

DFES represents WA on the High Level Group, the national governance body for EA, and will continue to work to ensure the new solution meets the requirements of the state.

Public Safety Mobile BroadbandA national interoperable Public Safety Mobile Broadband (PSMB) capability would improve public safety agency operational effectiveness and efficiency during business-as-usual and incident (including emergency) response activities. The Commonwealth, state and territory governments are continuing to work to develop a PSMB capability. DFES is represented on the National PSMB Functional Working Group that provides technical support to the Senior Officials Committee.

Recovery fundingThe large and increasing recovery expenditure following natural disasters has prompted the Commonwealth to review the effectiveness and sustainability of current funding arrangements.

The Commonwealth Government is looking to encourage expenditure on mitigation actions focused on reducing or eliminating long-term risk to natural hazards. In light of the above, national recovery funding arrangements have been reviewed and updated and are due to commence on 1 November 2018. Referred to as the Disaster Recovery Funding Arrangements, these arrangements will result in significant changes to the underlying processes and systems that are currently established to support the repair of essential public assets. Extensive consultation is ongoing with all stakeholders and those affected by the new arrangements.

Changes at the national level

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Changes in written law

There were no changes in written law that affected the OEM during the financial year.

Risk and capabilityThe OEM’s Risk and Capability section continues to work to gain a comprehensive risk profile for Western Australia across all hazards at the state, district and local level. This profile will help inform decision-making in the emergency management sector with an emphasis on prevention and preparedness activities. Substantial work has already been undertaken at the state and district level.

In 2017–18 significant inroads were made in expanding the consistent and comprehensive risk assessment process at the local level. During the year, more than half the number of local governments either participated in introductory sessions on the risk process and/or have started or are well underway in analysing their priority hazards.

Significant traction has been achieved by conducting risk workshops in clusters with numerous local governments together who share similar kinds of hazard risk, coordinated and facilitated by the OEM’s network of District Advisors (DAs) (see below).

The OEM continues to survey agencies involved in emergency management to gain a profile of the State’s capabilities to prepare for, respond to, and recover from emergencies. This information is assimilated and reported against in the yearly Emergency Preparedness Report.

The 2017 Emergency Preparedness Report attained significant attention and readership, within the state and nationally. Commencing in 2017 and extending into 2018, the data collection methodologies have been significantly upgraded.

Likely developments and forecast results of operations

In 2017 nearly 100,000 measures of capability were collected from surveying up to 170 agencies and this data volume is expected to increase again in 2018.

The risk and capability profiling processes aim to fulfil the OEM’s longer-term strategy of developing appropriate capability that matches the State’s risks.

Regional servicesThe OEM’s Regional Services section continues to engage across emergency management districts through its network of DAs. The section plays a key role as the delivery and engagement arm for policies, guidelines, plans, risk and capability profiling and preparedness reporting, recovery planning, and pre-and post-disaster grants and funding.

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Likely developments and forecast results of operations

Regional Services will continue to focus on how to best engage across the state and across agencies and organisations so that the state’s resilience to emergencies is enhanced. The DAs interact with more than 170 agencies, with a particular focus at the district and local level. The work includes a balanced emphasis across the spectrum of prevention, preparedness, response and recovery and across all 27 hazards.

Assurance directorate (including Policy, Legislation and Assurance sections)In 2017–18 the Assurance Directorate made significant progress in the SEMC Policy and Governance Review Project. This project considers 62 emergency management policy positions across 16 themes. The work marks the culmination of a substantial review of emergency management policy and processes.

The development of the Emergency Management Assurance, Lessons Management and Exercise Frameworks for Western Australia will continue.

4. DISCLOSURES AND LEGAL COMPLIANCE

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4. DISCLOSURES AND LEGAL COMPLIANCE

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Certification of Financial Statements for the period 1 July 2017 to 30 June 2018.The accompanying financial statements of the agency have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the year ended 30 June 2018 and the financial position as at 30 June 2018.

At the date of signing, I am not aware of any circumstances that would render any particulars included in the financial statements misleading or inaccurate.

Financial statements

Mal Cronstedt AFSM, MBA, BAReporting Officer

23 August 2018

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Contents

Statement of comprehensive income .............................................................................................60

Statement of financial position ......................................................................................................... 61

Statement of changes in equity........................................................................................................ 62

Statement of cash flows ....................................................................................................................63

Summary of consolidated account appropriations and income estimates ............................64

Notes to the Financial Statements................................................................................................... 65

Financial reporting for the year ended 30 June 2018The agency has pleasure in presenting its audited general purpose financial statements for the financial reporting period ended 30 June 2018 which provides users with the information about the agency’s stewardship of resource entrusted to it. The financial information is presented in the following structure:

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Statement of comprehensive incomeFor the year ended 30 June 2018

Notes2018

($’000)2017

($’000)

COST OF SERVICESExpensesEmployee benefits expenses 3.1 (a) 5,137 4,622

Supplies and services 3.3 1,268 1,291

Depreciation and impairment 5.1.1 9 62

Accommodation expenses 3.3 774 667

Grants and subsidies 3.2 3,512 1,315

Loss on disposal of non-current assets 4.4 27 15

Other expenses 3.3 57 34

Total cost of services 10,784 8,006

IncomeRevenueCommonwealth grants and contributions 4.3 1,566 1,926

Other revenue 4.2 144 419

Total revenue 1,710 2,345

Total income other than income from State Government 1,710 2,345

NET COST OF SERVICES 9,074 5,661

Income from State Government 4.1

Service appropriation 6,430 5,450

Services received free of charge 575 623

Royalties for Regions Fund 1,478 –

Total income from State Government 8,483 6,073

SURPLUS/(DEFICIT) FOR THE PERIOD (591) 412

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus – –

Gains/(losses) recognised directly in equity – –

Total other comprehensive income – –

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (591) 412

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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Statement of financial positionAs at 30 June 2018

Notes2018

($’000)2017

($’000)

ASSETS

Current AssetsCash and cash equivalents 7.1 5,682 6,178

Receivables 6.1 19 82

Other assets 6.3 112 93

Total Current Assets 5,813 6,353

Non-Current AssetsAmounts receivable for services (Holding Account) 6.2 224 221

Plant and equipment 5.1 12 15

Total Non-Current Assets 236 236

TOTAL ASSETS 6,049 6,589

LIABILITIES

Current LiabilitiesPayables 6.4 134 167

Employee related provisions 3.1 (b) 851 801

Total current liabilities 985 968

Non-Current LiabilitiesEmployee related provisions 3.1 (b) 205 204

Total Non-Current Liabilities 205 204

TOTAL LIABILITIES 1,190 1,172

NET ASSETS 4,859 5,417

EQUITY 9.8

Contributed equity 3,787 3,754

Accumulated surplus 1,072 1,663

TOTAL EQUITY 4,859 5,417

The Statement of Financial Position should be read in conjunction with the accompanying notes.

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Statement of changes in equityFor the year ended 30 June 2018

Notes

Contributed equity

($’000)

Accumulated surplus($’000)

Total equity($’000)

Balance at 1 July 2016 3,754 1,251 5,005

Surplus/(deficit) – 412 412

Other comprehensive income – – –

Total comprehensive income for the period – 412 412

Transactions with owners in their capacity as owners: Capital appropriations – – –

Other contributions by owners – – –

Distributions to owners – – –

Total – – –

Balance at 30 June 2017 9.8 3,754 1,663 5,417

Balance at 1 July 2017 3,754 1,663 5,417

Surplus/(deficit) – (591) (591)

Other comprehensive income – – –

Total comprehensive income for the period – (591) (591)

Transactions with owners in their capacity as owners: Capital appropriations 33 – 33

Other contributions by owners – – –

Distributions to owners – – –

Total 33 – 33

Balance at 30 June 2018 9.8 3,787 1,072 4,859

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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Statement of cash flowsFor the year ended 30 June 2018

Notes2018

($’000)2017

($’000)

CASH FLOWS FROM STATE GOVERNMENTService appropriation 6,427 5,377

Capital contributions 33 –

Royalties for Regions Fund 1,478 –

Net cash provided by State Government 7,938 5,377

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

PaymentsEmployee benefits (5,053) (4,375)

Supplies and services (746) (589)

Accommodation (744) (979)

Grants and subsidies (3,530) (1,235)

GST payments on purchases (191) (206)

Other payments (57) (34)

ReceiptsCommonwealth grants and contributions 1,566 1,926

GST receipts on sales 3 35

GST receipts from taxation authority 212 184

Other receipts 139 424

Net cash provided by/(used in) operating activities 7.1.2 (8,401) (4,849)

CASH FLOWS FROM INVESTING ACTIVITIESPaymentsPurchase of non-current physical assets (33) –

Net cash provided by/(used in) investing activities (33) –

Net increase (decrease) in cash and cash equivalents (496) 528

Cash and cash equivalents at the beginning of the period 6,178 5,650

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 7.1.1 5,682 6,178

The Statement of Cash Flow should be read in conjunction with the accompanying notes.

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Summary of consolidated account appropriations and income estimatesFor the year ended 30 June 2018

2018Estimate

($’000)

2018 Actual($’000)

Variance($’000)

2018 Actual($’000)

2017 Actual($’000)

Variance($’000)

Delivery of ServicesItem 102 Net amount appropriated to deliver services 6,244 6,430 186 6,430 5,450 (980)

Section 25 transfer of service appropriationAmount Authorised by Other Statutes – Salaries and Allowances Act 1975

Total appropriations provided to deliver services 6,244 6,430 186 6,430 5,450 (980)

CapitalItem 173 Capital appropriations 31 33 2 33 – (33)

GRAND TOTAL 6,275 6,463 188 6,463 5,450 (1,013)

Details of expensesTotal cost of services 16,128 10,784 (5,344) 10,784 8,006 (2,778)

Less Total income 5,169 1,710 (3,459) 1,710 2,345 635

Net cost of services 10,959 9,074 (1,885) 9,074 5,661 (3,413)

Adjustments (4,715) (2,644) 2,071 (2,644) (211) 2,433

Total appropriations provided to deliver services 6,244 6,430 186 6,430 5,450 (980)

Adjustments comprise movements in cash balances and other accrual items such as receivables, payables and superannuation.

Note 9.8 ‘Explanatory Statement’ provide details of any significant variations between estimates and actual results for 2018 and between the actual results for 2018 and 2017.

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Notes to the Financial StatementsNotes to the Financial Statements

1 Basis of preparationThe reporting entity comprises the Office of Emergency Management (OEM) and State Emergency Management Committee. The agency is a WA Government entity and is controlled by the State of Western Australia, which is the ultimate parent. The agency is a not-for-profit entity (as profit is not its principal objective).

A description of the nature of its operations and its principal activities have been included in the ‘Overview’ which does not form part of these financial statements.

These annual financial statements were authorised for issue by the Reporting Authority of the agency on 23 August 2018.

Statement of complianceThese general purpose financial statements are prepared in accordance with:1) The Financial Management Act 2006 (FMA)2) The Treasurer’s Instructions (the Instructions or TI)3) Australian Accounting Standards (AAS) including applicable interpretations4) Where appropriate, those AAS paragraphs applicable for not-for-profit entities have been applied.

The Financial Management Act 2006 and the Treasurer’s Instructions (the Instructions) take precedence over AAS. Several AAS are modified by the Instructions to vary application, disclosure format and wording. Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements.

Basis of preparationThese financial statements are presented in Australian dollars applying the accrual basis of accounting and using the historical cost convention. Certain balances will apply a different measurement basis (such as the fair value basis). Where this is the case the different measurement basis is disclosed in the associated note. All values are rounded to the nearest thousand dollars ($’000).

As disclosed in Note 9.1, the agency was integrated with DFES. The financial statements have been prepared on a going concern basis as the net assets of the agency have been transferred to DFES who will continue to provide the agency’s services.

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

Contributed equityAASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to, transfer) before such transfers can be recognised as equity contributions. Capital appropriations have been designated as contributions by owners by TI 955 Contributions by Owners made to Wholly Owned Public Sector Entities and have been credited directly to Contributed Equity.

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Notes to the Financial Statements

1 Basis of preparation (continued)The transfers of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal.

2 Agency outputsHow the agency operatesThis section includes information regarding the nature of funding the agency receives and how this funding is utilised to achieve the agency’s objectives. This note also provides the distinction between controlled funding and administered funding:

NoteAgency objectives 2.1

2.1 Agency objectivesVisionA better prepared, safer and more resilient Western Australia.

MissionTo harness and optimise the knowledge, expertise and resources of the state to reduce the impact of emergencies on our people, economy and environment management.

The agency is predominantly funded by Parliamentary appropriations.

ServicesThe agency provides Emergency Management Advice and Consultation.

The agency is only responsible for delivering one service as set out above. All income, expenditure, assets and liabilities are in relation to the delivery of this service.

3 Use of our fundingExpenses incurred in the delivery of the serviceThis section provides additional information about how the agency’s funding is applied and the accounting policies that are relevant for an understanding of the items recognised in the financial statements. The primary expenses incurred by the agency in achieving its objectives and the relevant notes are:

Notes2018

($’000)2017

($’000)

Employee benefits expenses 3.1 (a) 5,137 4,622

Employee related provisions 3.1 (b) 1,056 1,004

Grants and subsidies 3.2 3,512 1,315

Other expenditure 3.3 2,099 1,992

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Notes to the Financial Statements

3.1 (a) Employee benefits expense2018

($’000)2017

($’000)

Wages and salaries 4,422 4,172

Termination Benefits 236 –

Superannuation — defined contribution plans:(a)

Fire and Emergency Services Superannuation Board (FESSB) 243 249

Government Employees Superannuation Board (GESB) 182 130

Other superannuation funds 13 13

Other related expenses 41 58

5,137 4,622

(a) Defined contribution plans include Fire and Emergency Services Superannuation Board (FESSB), West State Superannuation Scheme (WSS), Gold State Superannuation Scheme (GSS), Government Employees Superannuation Board Schemes (GESBs) and other eligible funds.

Wages and salaries: Employee expenses include all costs related to employment including wages and salaries, fringe benefits tax, and leave entitlements.

Termination benefits: Payable when employment is terminated before normal retirement date, or when an employee accepts an offer of benefits in exchange for the termination of employment. Termination benefits are recognised when the agency is demonstrably committed to terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

Superannuation: The amount recognised in profit or loss of the Statement of Comprehensive Income comprises employer contributions paid to the GSS (concurrent contributions), the FESSB, the WSS, the GESBs, or other superannuation funds. The employer contribution paid to the Government Employees Superannuation Board (GESB) in respect of the GSS is paid back into the Consolidated Account by the GESB.

GSS (concurrent contributions) is a defined benefit scheme for the purposes of employees and whole-of-government reporting. It is however a defined contribution plan for agency purposes because the concurrent contributions (defined contributions) made by the agency to GESB extinguishes the agency’s obligations to the related superannuation liability.

The agency does not recognise any defined benefit liabilities because it has no legal or constructive obligation to pay future benefits relating to its employees. The Liabilities for the unfunded Pension Scheme and the unfunded GSS transfer benefits attributable to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS obligations are funded by concurrent contributions made by the agency to the GESB.

The GESB and other fund providers administer public sector superannuation arrangements in Western Australia in accordance with legislative requirements. Eligibility criteria for membership in particular schemes for public sector employees vary according to commencement and implementation dates.

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Notes to the Financial Statements

3.1 (b) Employee related provisionsProvision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered up to the reporting date and recorded as an expense during the period the services are delivered.

2018($’000)

2017($’000)

CurrentEmployee benefits provision Annual leave (a) 317 310

Long service leave (b) 365 378

Deferred salary scheme (c) 91 31

773 719

Other provisions Employment on-costs (d) 78 82

Total current employee related provisions 851 801

Non-currentEmployee benefits provision Long service leave (b) 182 180

Other provisions Employment on-costs (d) 23 23

Total non-current employee related provisions 205 203

Total employee related provisions 1,056 1,004

(a) Annual leave liabilities: Classified as current as there is no unconditional right to defer settlement for at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

2018($’000)

2017($’000)

Within 12 months of the end of the reporting period 297 310

More than 12 months after the end of the reporting period 20 –

317 310

The provision for annual leave is calculated at the present value of expected payments to be made in relation to services provided by employees up to the reporting date.

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Notes to the Financial Statements

3.1 (b) Employee related provisions (continued)(b) Long service leave liabilities: Unconditional long service leave provisions are classified as current liabilities as the agency does not have an

unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.

Pre-conditional and conditional long service leave provisions are classified as non-current liabilities because the agency has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

2018($’000)

2017($’000)

Within 12 months of the end of the reporting period 109 378

More than 12 months after the end of the reporting period 438 180

547 558

(c) Deferred salary scheme liabilities: Classified as current where there is no unconditional right to defer settlement for at least 12 months after the end of the reporting period. Actual settlement of the liabilities is expected to occur as follows:

2018($’000)

2017($’000)

Within 12 months of the end of the reporting period – –

More than 12 months after the end of the reporting period 91 31

91 31

(d) Employment on-costs: The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers’ compensation insurance. The provision is the present value of expected future payments.

Employment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are included as part of ‘Other expenses, Note 3.3 (apart from the unwinding of the discount (finance cost))’ and are not included as part of the agency’s ‘employee benefits expense’. The related liability is included in ‘Employment on-costs provision’.

2018($’000)

2017($’000)

Employment on-cost provisionCarrying amount at start of period 105 79

Additional/(reversals of) provisions recognised (4) 26

Carrying amount at end of period 101 105

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Notes to the Financial Statements

3.1 (b) Employee related provisions (continued)Key sources of estimation uncertainty – long service leaveKey estimates and assumptions concerning the future are based on historical experience and various other factors that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Several estimates and assumptions are used in calculating the agency’s long service leave provision. These include:• Expected future salary rates• Discount rates• Employee retention rates; and• Expected future payments

Changes in these estimations and assumptions may impact on the carrying amount of the long service leave provision.

Any gain or loss following revaluation of the present value of long service leave liabilities is recognised as employee benefits expense.

3.2 Grants and subsidies2018

($’000)2017

($’000)

RecurrentNational Partnership Agreement on Natural Disaster Resilience Program (NPA—NDRP) 1,706 275

National Partnership Agreement on National Bushfire Mitigation Program (NPA—NBMP) 214 361

All West Australians Reducing Emergencies (AWARE) Program 178 238

State Crisis Information Management System – 352

Policy and Legislation – 14

Royalties For Regions Funds – Bushfire Mitigation Activity Fund (MAF) 980 –

Emergency Alert System 344 –

RefundedNational Emergency Management Projects – 75

Department of Home Affairs (Keep Our Mob Safe) 62 –

Department Attorney-General (Risk Assessment Measurement & Mitigation) 28 –

3,512 1,315

Transactions in which the agency provides goods, services, assets (or extinguishes a liability) or labour to another party without receiving approximately equal value in return are categorised as ‘Grant expenses’. Grants can either be operating or capital in nature.

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Notes to the Financial Statements

3.2 Grants and subsidies (continued)Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use.

Grants and other transfers to third parties (other than contribution to owners) are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as: grants, subsidies, personal benefit payments made in cash to individuals, other transfer payments made to public sector agencies, local government, non-government schools, and community groups.

3.3 Other expenditure2018

($’000)2017

($’000)

Supplies and servicesCommunications 12 66

Consultants and contractors 793 776

Leases 57 88

Travel 130 104

Other 276 257

Total supplies and services expenses 1,268 1,291

Accommodation expensesLease rentals 712 654

Repairs and maintenance 62 13

Total accommodation expenses 774 667

Other expensesAudit fees 61 8

Employment on-costs/(reversal of provision) (4) 26

Total other expenses 57 34

Total other expenditure 2,099 1,992

Supplies and services: Supplies and services are recognised as an expense in the reporting period in which they are incurred.

Accommodation expenses: Operating lease payments are recognised on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. [AASB 117.33]. Repairs, maintenance and cleaning costs are recognised as expenses as incurred.

Other: Other operating expenses generally represent the day-to-day running costs incurred in normal operations.

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Notes to the Financial Statements

3.3 Other expenditure (continued)Building and infrastructure maintenance and equipment repairs and maintenance: Repairs and maintenance costs are recognised as expenses as incurred, except where they relate to the replacement of a significant component of an asset. In that case, the costs are capitalised and depreciated.

Employee on-cost includes workers’ compensation insurance and other employment on-costs. The on costs liability associated with the recognition of annual and long service leave liabilities is included at Note 3.1(b) Employee related provisions. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not included in employment on-costs.

4 Our funding sourcesHow we obtain our fundingThis section provides additional information about how the agency obtains its funding and the relevant accounting policy notes that govern the recognition and measurement of this funding. The primary income received by the agency and the relevant notes are:

Notes2018

($’000)2017

($’000)

Income from State Government 4.1 8,483 6,073

Other Revenue 4.2 144 419

Commonwealth grants and contributions 4.3 1,566 1,926

Loss on disposal of non-current assets 4.4 27 15

4.1 Income from State Government2018

($’000)2017

($’000)

Appropriation received during the period:Service appropriation (a) 6,430 5,450

6,430 5,450

Services received free of charge from other State Government agencies during period:(b)

DFES (i) 438 417

State Solicitor's Office (SSO) (ii) 14 9

Department of Finance (DoF) (iii) 123 50

Public Sector Commission (PSC) (iv) – 147

Total services received 575 623

Royalties for Regions Funds:

Regional Community Services Account (c) 1,478 –

Total Royalties for Regions Fund 1,478 –

Total income from State Government 8,483 6,073

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Notes to the Financial Statements

4.1 Income from State Government (continued)(a) Service Appropriations are recognised as revenues at fair value in the period in which the agency gains control of the appropriated funds. The agency

gains control of appropriated funds at the time those funds are deposited in the bank account or credited to the ‘Amounts receivable for services’ (holding account) held at Treasury.

Service appropriations fund the net cost of services delivered (as set out in note 2). Appropriation revenue comprises the following:

• Cash component; and

• A receivable (asset).

The receivable (holding account – note 6.2) comprises the following:

• The budgeted depreciation expense for the year; and

• Any agreed increase in leave liabilities during the year.

(b) Services received free of charge from other State Government agencies for: (i) DFES provide: information technology, financial, human resource and other support services. (ii) SSO provide: legal services. (iii) DoF provide: accommodation – leasing and fit out – depreciation costs. (iv) PSC provide: rental, parking bays, electricity and GBCN ICT charges

(c) The Regional Infrastructure and Headworks Account, and, Regional Community Services Accounts are sub-funds within the over-arching ‘Royalties for Regions Fund’. The recurrent funds are committed to projects and programs in WA regional areas and are recognised as revenue when the agency gains control on receipt of the funds.

4.2 Other Revenue2018

($’000)2017

($’000)

Employee and volunteer cost recovery – 54

General revenue 144 365

144 419

Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows:– Australasian Natural Hazard Management Conference (ANHMC) ; and– State Crisis Information Management System.4.3 Commonwealth grants and contributions

2018($’000)

2017($’000)

Recurrent 1,566 1,566

Other – 360

1,566 1,926

The agency receives Commonwealth funding under the National Partnership Agreement for Natural Disaster Resilience (NPA). These non-recurrent funds are allocated to projects throughout WA to support natural disaster resilience activities that help deliver the priorities identified in the National Strategy for Disaster Resilience.

The 2015-17 NPA was officially extended in April 2018 following the execution of the supporting Implementation Plan. The 2015-18 NPA provides WA with $9.4 million to help build community resilience against natural disasters.

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Notes to the Financial Statements

4.3 Commonwealth grants and contributions (continued)Of the $9.4 million allocated to WA under this agreement, WA has received $3.1 million, with $1.6 million received in July 2017, and the first instalment received in January 2017. The remaining $6.3 million is expected in February 2019 following allocation of all funds to priority projects.

Of the total $9.4 million of NPA funds WA has committed $5.2 million. The remaining $4.2 million will be distributed as part of a competitive grants program called in early 2018-19.

At June 1 2017, a total of 32 projects were in progress (including previous NPAs), with a total value of $23 million and a Commonwealth contribution of $11 million. Throughout the year 10 were completed and one was cancelled. The total value of the projects currently in progress is $11.5 million. Projects delivered using NPA funds can only use 50% of Commonwealth funds. With $4.2 million yet to allocate, at least $8.4 million is expected to be invested in natural disaster resilience as part of this program.

For non-reciprocal grants, the agency recognises revenue when the grant is receivable at its fair value as and when its fair value can be reliably measured.

Contributions of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.

4.4 Loss on disposal of non-current assets2018

($’000)2017

($’000)

Carrying amount of non-current assets disposedPlant and equipment 26 15

Computer hardware 1 –

Net loss 27 15

Realised and unrealised gains are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and some revaluations of non-current assets.

Gains and losses on the disposal of non-current assets are presented by deducting from the proceeds on disposal the carrying amount of the asset and related selling expenses. Gains and losses are recognised in profit or loss in the statement of comprehensive income (from the proceeds of sale).

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Notes to the Financial Statements

5 Key assetsAssets the agency utilises for economic benefit or service potentialThis section includes information regarding the key assets the agency utilises to gain economic benefits or provide service potential. The section sets out both the key accounting policies and financial information about the performance of these assets:

Notes2018

($’000)2017

($’000)

Plant and equipment 5.1 12 15

Intangibles 5.2 – –

Total key assets 12 15

5.1 Plant and equipmentPlant and

equipment($’000)

Leasehold improvements

($’000)

Computer hardware

($’000)Total

($’000)

Year ended 30 June 2017

1 July 2016Gross carrying amount 19 250 38 307

Accumulated depreciation (4) (190) (29) (223)

Accumulated impairment loss – – – –

Carrying amount at start of period 15 60 9 84

Additions – – – –

Transfers (a) – – – –

Other disposals – (15) – (15)

Impairment losses (b) – – – –

Depreciation – (45) (9) (54)

Revaluation increments/(decrements) – – – –

Carrying amount at 30 June 2017 15 – – 15

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Notes to the Financial Statements

Plant and equipment

($’000)

Leasehold improvements

($’000)

Computer hardware

($’000)Total

($’000)

Year ended 30 June 2018

1 July 2017Gross carrying amount 19 – – 19

Accumulated depreciation (4) – (4)

Accumulated impairment loss – – – –

Carrying amount at start of period 15 – – 15

Additions – 33 – 33

Transfers (a)

Other disposals – (27) – (27)

Impairment losses (b) – – – –

Depreciation (3) (6) – (9)

Revaluation increments/(decrements) – – – –

Carrying amount at 30 June 2018 12 – – 12

(a) The Department of Planning, Lands and Heritage (DPLH) is the only agency with the power to sell Crown land. The land is transferred to DPLH for sale and the agency accounts for the transfer as a distribution to owner.

(b) Impairment losses are recognised in the Statement of Comprehensive Income. Where an asset measured at cost is written-down to recoverable amount, an impairment loss is recognised in profit or loss. Where a previously revalued asset is written down to recoverable amount, the loss is recognised as a revaluation decrement in other comprehensive income.

Initial recognitionItems of plant and equipment costing $5,000 or more are measured initially at cost. Where an asset is acquired for no or nominal cost, the cost is valued at its fair value at the date of acquisition. Items of plant and equipment costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income (other than where they form part of a group of similar items which are significant in total).

Assets transferred as part of a Machinery of Government change are transferred at their fair value.

The cost of a leasehold improvement is capitalised and depreciated over the shorter of the remaining term of the lease or the estimated useful life of the leasehold improvement.

Subsequent measurementAll plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.

5.1 Plant and equipment (continued)

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Notes to the Financial Statements

5.1.1 Depreciation and impairment2018

($’000)2017

($’000)

Charge for the periodPlant and equipment 9 –

Computer hardware – 9

Leasehold improvements – 45

Total depreciation for the period 9 54

As at 30 June 2018 there were no indications of impairment to plant and equipment.

All surplus assets at 30 June 2018 have either been classified as assets held for sale or have been written-off.

Please refer to note 5.2 for guidance in relation to the impairment assessment that has been performed for intangible assets.

All plant and equipment having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits. The exceptions to this rule include assets held for sale.

Depreciation is generally calculated on a straight line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. Typical estimated useful lives for the different asset classes for current and prior years are included in the table below:

Asset Useful life: years Plant and equipment 5 yearsSoftware (a) 3 to 5 years

(a) Software that is integral to the operation of related hardware.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments should be made where appropriate.

Leasehold improvements are depreciated over the shorter of the lease term and their useful lives.

ImpairmentNon-financial assets, including items of plant and equipment, are tested for impairment whenever there is an indication that the asset may be impaired. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised.

Where an asset measured at cost is written down to its recoverable amount, an impairment loss is recognised through profit or loss.

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5.1.1 Depreciation and impairment (continued)Where a previously revalued asset is written down to its recoverable amount, the loss is recognised as a revaluation decrement through other comprehensive income.

As the agency is a not-for-profit agency, the recoverable amount of regularly revalued specialised assets is anticipated to be materially the same as fair value.

If there is an indication that there has been a reversal in impairment, the carrying amount shall be increased to its recoverable amount. However this reversal should not increase the asset’s carrying amount above what would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of the asset’s future economic benefits and to evaluate any impairment risk from declining replacement costs.

5.2 Intangible assetsComputer software

$000Total$000

Year ended 30 June 2017

1 July 2016Gross carrying amount 26 26

Accumulated depreciation (26) (26)

Accumulated impairment loss – –

Carrying amount at start of period – –

Additions – –

Transfers (a) – –

Other disposals – –

Impairment losses (b) – –

Depreciation – –

Revaluation increments/(decrements) – –

Carrying amount at 30 June 2017 – –

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Computer software

$000Total$000

Year ended 30 June 2018

1 July 2017Gross carrying amount – –

Accumulated depreciation – –

Accumulated impairment loss – –

Carrying amount at start of period – –

Additions – –

Transfers (a) – –

Other disposals – –

Impairment losses (b) – –

Depreciation – –

Revaluation increments/(decrements) – –

Carrying amount at 30 June 2018 – –

Computer softwareAt cost – 26

Accumulated amortisation – (26)

Total intangible assets – –

Initial recognitionAcquisitions of intangible assets costing $5,000 or more and internally generated intangible assets costing $50,000 or more that comply with the recognition criteria as per AASB 138.57 (as noted below), are capitalised.

Costs incurred below these thresholds are immediately expensed directly to the Statement of Comprehensive Income.

Intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following are demonstrated:(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale;

(b) an intention to complete the intangible asset, and use or sell it;

(c) the ability to use or sell the intangible asset;

(d) the intangible asset will generate probable future economic benefit;

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

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

5.2 Intangible assets (continued)

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5.2 Intangible assets (continued)Costs incurred in the research phase of a project are immediately expensed.

Subsequent measurementThe cost model is applied for subsequent measurement of intangible assets, requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses.

5.2.1 Amortisation and impairment2018

($’000)2017

$’000

Charge for the periodAmortisationIntangible assets – 8

Total amortisation for the period – 8

As at 30 June 2018 there were no indications of impairment to intangible assets.

The agency held no goodwill or intangible assets with an indefinite useful life during the reporting period. At the end of the reporting period there were no intangible assets not yet available for use.

Amortisation of finite life intangible assets is calculated on a straight line basis at rates that allocate the asset’s value over its estimated useful life. All intangible assets controlled by the agency have a finite useful life and zero residual value. Estimated useful lives are reviewed annually.

The estimated useful lives for each class of intangible asset are:

Software (a) 3 to 5 years(a) Software that is not integral to the operation of any related hardware.

Impairment of intangible assetsIntangible assets with finite useful lives are tested for impairment annually or when an indication of impairment is identified.

The policy in connection with testing for impairment is outlined in note 5.1.1.

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6 Other assets and liabilitiesThis section sets out those assets and liabilities that arose from the agency’s controlled operations and includes other assets utilised for economic benefits and liabilities incurred during normal operations:

Notes2018

($’000)2017

($’000)

Receivables 6.1 19 82

Amounts receivable for services (Holding Account) 6.2 224 221

Other current assets 6.3 112 93

Payables 6.4 134 167

6.1 ReceivablesCurrentReceivables – 46

Paid parental leave receivable – (6)

GST receivable 19 42

Total receivables 19 82

The agency does not hold any collateral or other credit enhancements as security for receivables.

Receivables are recognised at original invoice amount less any allowances for uncollectible amounts (i.e. impairment). The carrying amount of net trade receivables is equivalent to fair value as it is due for settlement within 30 days.’

6.2 Amounts receivable for services (Holding Account)2018

($’000)2017

$’000

Non-current 224 221

Balance at end of period 224 221

Amounts receivable for services represent the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability.

The agency receives funding on an accrual basis. The appropriations are paid partly in cash and partly as an asset (holding account receivable). The accrued amount receivable is accessible on the emergence of the cash funding requirement to cover leave entitlements and asset replacement.

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6.3 Other assets2018

($'000)2017

$'000

CurrentPrepayments (a) 112 93

Total current 112 93

Balance at end of period 112 93

Other assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.

6.4 Payables2018

($'000)2017

$'000

CurrentTrade payables 33 21

Accrued expenditure 85 124

Accrued salaries 16 17

Income received in advance – 5

GST payable – –

Total current 134 167

Payables are recognised at the amounts payable when the agency becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as settlement is generally within 30 days.

Accrued salaries represent the amount due to staff but unpaid at the end of the reporting period. Accrued salaries are settled within a fortnight after the reporting period. The agency considers the carrying amount of accrued salaries to be equivalent to its fair value.

The accrued salaries suspense account (See Note 7.1 ‘Restricted cash and cash equivalents’) consists of amounts paid annually, from agency appropriations for salaries expense, into a Treasury suspense account to meet the additional cash outflow for employee salary payments in reporting periods with 27 pay days instead of the normal 26. No interest is received on this account.

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7 FinancingThe accrued salaries suspense account (See Note 7.1 ‘Restricted cash and cash equivalents’) consists of amounts paid annually, from agency appropriations for salaries expense, into a Treasury suspense account to meet the additional cash outflow for employee salary payments in reporting periods with 27 pay days instead of the normal 26. No interest is received on this account.

Notes

Cash and cash equivalents 7.1

Reconciliation of cash 7.1.1

Reconciliation of operating activities 7.1.2

Commitments 7.2

Non-cancellable operating lease commitments 7.2.1

7.1 Cash and cash equivalents2018

($’000)2017

$’000

7.1.1 Reconciliation of cashCash and cash equivalents 2,226 64

Restricted cash and cash equivalents NDRP (a) 2,697 5,475

NBMP (b) 177 482

RAMMS (c) – 47

KOMS (d) 62 100

MAF (e) 498 –

Rental deposit (f) 2 2

5,662 6,170

Accrued salaries suspense account(g) 20 8

Balance at end of period 5,682 6,178

(a) Commonwealth funds held for National Partnership Agreement on Natural Disaster Resilience Program (NPA-NDRP).

(b) Commonwealth funds held for National Partnership Agreement on National Bushfire Mitigation Program (NPA—NBMP).

(c) Commonwealth funds held for Risk Assessment, Measurement and Mitigation Subcommittee (RAMMS).

(d) Commonwealth funds held for Keep Our Mob Safe Program (KOMS).

(e) State funds, Royalty for Regions, held for Mitigation Activity Fund (MAF) local government initiatives.

(f) Deposit for rental property in Broome ,Western Australia.

(g) Funds held in the suspense account for the purpose of meeting the 27th pay in a reporting period that occurs every 11th year. This account is classified as non current for 10 out of 11 years.

For the purpose of the statement of cash flows, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash on hand and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value.

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7.1.2 Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities

Notes2018

($'000)2017

($'000)

Net cost of services (9,074) (5,661)

Non-cash items:

Depreciation and amortisation expense 5.1.1 9 62

Services received free of charge 4.1 575 624

Increase/(decrease) in assets:Current receivables (a) 63 (25)

Other assets (19) (16)

Increase/(decrease) in liabilities:Current payables (a) (33) (120)

Current provisions 50 265

Non-current provisions 1 6

Change in GST in receivables/payables (b) 27 16

Net cash used in operating activities (8,401) (4,849)

(a) Note that the Australian Taxation Office (ATO) receivable/payable in respect of GST and the receivable/payable in respect of the sale/purchase of non-current assets are not included in these items as they do not form part of the reconciling items.

(b) This reverses out the GST in receivables and payables.

The mandatory application of AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 imposed disclosure impacts only. The agency is not exposed to changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes.

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7.2 Commitments7.2.1 Non-cancellable operating lease commitmentsCommitments for minimum lease payments are payable as follows:

2018($'000)

2017($'000)

Within 1 year 415 1,070

Later than 1 year and not later than 5 years 281 1,807

696 2,877

Operating leases are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased properties.

The agency has entered into a property lease which is a non-cancellable lease with a two year term, with rent payable monthly in advance. Contingent rent provisions within the lease agreement require that the minimum lease payments shall be increased by current market value.

Judgements made by management in applying accounting policies – operating lease commitmentsThe agency’s fleet and commercial lease for premises at Level 1 Albert Facey House Wellington Street Perth account for the majority of the non-cancellable operating lease commitments. Lease terms for vehicles vary depending on vehicle type and its assigned role.

8 Risks and ContingenciesThis note sets out the key risk management policies and measurement techniques of the agency.

Note

Financial risk management 8.1

Contingent assets and liabilities 8.2

8.1 Financial risk managementFinancial instruments held by the agency are cash and cash equivalents, restricted cash and cash equivalents, receivables and payables. The agency has limited exposure to financial risks. The agency’s overall risk management program focuses on managing the risks identified below.

(a) Summary of risks and risk managementCredit riskCredit risk arises when there is the possibility of the agency’s receivables defaulting on their contractual obligations resulting in financial loss to the agency.

The maximum exposure to credit risk at the end of the reporting period in relation to each class of recognised financial asset is the gross carrying amount of those assets inclusive of any allowance for impairment as shown in the table at Note 8.1(c) ‘Financial instruments disclosures’ and Note 6.1 ‘Receivables’.

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8.1 Financial risk management (continued)Credit risk associated with the agency’s financial assets is minimal because the main receivable is the amounts receivable for services (holding account). For receivables other than Government, the agency trades only with recognised, creditworthy third parties. The agency has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the agency’s exposure to bad debts is minimal. At the end of the reporting period there were no significant concentrations of credit risk.

Liquidity riskLiquidity risk arises when the agency is unable to meet its financial obligations as they fall due.

The agency is exposed to liquidity risk through its trading in the normal course of business.

The agency has appropriate procedures to manage cash flows including drawdown of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Market riskMarket risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the agency’s income or the value of its holdings of financial instruments. The agency does not trade in foreign currency and is not materially exposed to other price risks [for example, equity securities or commodity prices changes]. The agency’s exposure to market risk for changes in interest rates relate primarily to the long-term debt obligations.

(b) Categories of financial instrumentsThe carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are:

2018($'000)

2017($'000)

Financial AssetsCash and cash equivalents 2,226 64

Restricted cash and cash equivalents 3,456 6,114

Loans and receivables (a) 224 261

Total financial assets 5,906 6,439

Financial liabilitiesFinancial liabilities measured at amortised cost 134 167

Total financial liability 134 167

(a) The amount of receivables excludes GST recoverable from the ATO (statutory receivable).

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8.1 Financial risk management (continued)(c) Ageing analysis of financial assets

2018

Past due but not impaired

CarryingAmount

Not past due

and not impaired

Up to 1month

1 – 3months

3 – 12months

1– 5years

More than

5 years

Impaired financial

assets

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Cash and cash equivalents 2,226 2,226 – – – – – –

Restricted cash and cash equivalents 3,456 3,456 – – – – – –

Receivables (a) – – – – – – – –

Amounts receivable for services (Holding Account) 224 224 – – – – – –

5,906 5,906 – – – – –

2017Cash and cash equivalents 64 64 – – – – – –

Restricted cash and cash equivalents 6,114 6,114 – – – – – –

Receivables (a) 40 40 – – – – – –

Amounts receivable for services (Holding Account) 221 221 – – – – – –

6,439 6,439 – – – – – –

(a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).

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8.1 Financial risk management (continued)(d) Liquidity Risk and Interest Rate ExposureThe following table details the agency’s interest rate exposure and the contractual maturity analysis of financial assets and financial liabilities. The maturity analysis section includes interest and principal cash flows. The interest rate exposure section analyses only the carrying amounts of each item.

Interest rate exposure and maturity analysis of financial assets and financial liabilities

Interest rate exposure Maturity dates

Weigh ted average

effective Interest

RateCarry ing amount

Fixed interest

rate

Vari-able

interest rate

Non-interest bearing

Nom-inal

amountUp to 1month

1 – 3months

3 –12months

1 – 5years

More than

5 years

% $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

2018Financial assetsCash and cash equivalents – 2,226 – – 2,226 2,226 2,226 – – – –

Restricted cash and cash equivalents – 3,456 – – 3,456 3,456 3,456 – – – –

Receivables (a) – – – – – – – – – – –

Amounts receivable for services (Holding Account) – 224 – – 224 224 224 – – – –

5,906 – – 5,906 5,906 5,906 – – – –

Financial liabilitiesPayables – 134 – – 134 134 134 – – – –

134 – – 134 134 134 – – – –

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Notes to the Financial Statements

Interest rate exposure and maturity analysis of financial assets and financial liabilities

Interest rate exposure Maturity dates

Weigh ted average

effective Interest

RateCarry ing amount

Fixed interest

rate

Vari-able

interest rate

Non-interest bearing

Nom-inal

amountUp to 1month

1 – 3months

3 –12months

1 – 5years

More than

5 years

% $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

2017Financial assetsCash and cash equivalents 64 – – 64 64 64 – – – –

Restricted cash and cash equivalents 6,114 – – 6,114 6,114 6,114 – – – –

Receivables (a) 40 – – 40 40 40 – – – –

Amounts receivable for services (Holding Account) 221 – – 221 221 221 – – – –

6,439 – – 6,439 6,439 6,439 – – – –

Financial liabilitiesPayables 167 – – 167 167 167

167 – – 167 167 167 – – – –

(a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).

8.1 Financial risk management (continued)(d) Liquidity Risk and Interest Rate Exposure (continued)

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Notes to the Financial Statements

8.2 Contingent assets and liabilitiesContingent assets and contingent liabilities are not recognised in the statement of financial position but are disclosed and, if quantifiable, are measured at nominal value.

The agency has no contingent assets and liabilities to disclose.

9 Other disclosuresThis section includes additional material disclosures required by accounting standards or other pronouncements, for the understanding of this financial report.

Notes

Events occurring after the end of the reporting period 9.1

Future impact of Australian standards issued not yet operative 9.2

Key management personnel 9.3

Related party transactions 9.4

Related bodies 9.5

Affiliated bodies 9.6

Remuneration of auditors 9.7

Equity 9.8

Supplementary financial information 9.9

Explanatory statement 9.10

9.1 Events occurring after the end of the reporting periodThe following represents a summary of events occurring after the end of the reporting period:

Machinery of Government ChangesOn 1 July 2018 the agency ceased to exist and its functions were integrated into DFES. The State Emergency Management Committee, its subcommittees and reference groups largely continue and are now supported by DFES.

As a result of the Machinery of Government changes, the functions of the agency, staff and all assets, rights, liabilities and obligations have been transferred to DFES, effective from 1 July 2018.

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Notes to the Financial Statements

9.2 Future impact of Australian Accounting Standards not yet operativeThe agency cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 ‘Application of Australian Accounting Standards and Other Pronouncements’ or by an exemption from TI 1101. Where applicable, the agency plans to apply the following Australian Accounting Standards from their application date.

Operative for reporting periods beginning on/after

AASB 9 Financial InstrumentsThis Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments.

The agency has assessed that recognition of expected credit losses will increase the amount of impairment losses recognised as Other expenses in the Statement of Comprehensive Income by nil$, and thus have does not adversely impact on the agency’s Surplus/(Deficit) for the period.

1 Jan 2018

AASB 15 Revenue from Contracts with CustomersThis Standard establishes the principles that the agency shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. The mandatory application date of this Standard is currently 1 January 2019 after being amended by AASB 2016-7.

The agency's income is principally derived from appropriations which will be measured under AASB 1058 and will be unaffected by this change. However, the agency has not yet determined the potential impact of the Standard on ‘User charges and fees’ and ‘Sales’ revenue. In broad terms, it is anticipated that the terms and conditions attached to these revenues will defer revenue recognition until the agency has discharged its performance obligations.

1 Jan 2019

AASB 16 LeasesThis Standard introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value.

Whilst the impact of AASB 16 has not yet been quantified, the entity currently has commitments for $2,877,000 worth of non-cancellable operating leases which will mostly be brought onto the Statement of Financial Position. Interest and amortisation expense will increase and rental expense will decrease.

1 Jan 2019

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Notes to the Financial Statements

Operative for reporting periods beginning on/after

AASB 1058 Income of Not-for-Profit EntitiesThis Standard clarifies and simplifies the income recognition requirements that apply to not-for-profit (NFP) entities, more closely reflecting the economic reality of NFP entity transactions that are not contracts with customers. Timing of income recognition is dependent on whether such a transaction gives rise to a liability or other performance obligation (a promise to transfer a good or service), or a contribution by owners, related to an asset (such as cash or another asset) received by an agency. The agency anticipates that the application will not materially impact appropriations or untied grant revenues.

1 Jan 2019

AASB 1059 Service Concession Arrangements: GrantorsThis Standard addresses the accounting for a service concession arrangement (a type of public private partnership) by a grantor that is a public sector agency by prescribing the accounting for the arrangement from the grantor’s perspective. Timing and measurement for the recognition of a specific asset class occurs on commencement of the arrangement and the accounting for associated liabilities is determined by whether the grantee is paid by the grantor or users of the public service provided. The agency has not identified any public private partnerships within scope of the Standard.

1 Jan 2019

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Int 2, 5, 10, 12, 19 & 127]This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 9 in December 2010.

The mandatory application date of this Standard has been amended by AASB 2012-6 and AASB 2014-1 to 1 January 2018. Other than the exposures to AASB 9 noted above, the agency is only insignificantly impacted by the application of the Standard.

1 Jan 2018

AASB 2014-1 Amendments to Australian Accounting StandardsPart E of this Standard makes amendments to AASB 9 and consequential amendments to other Standards. These changes have no impact as Appendix E has been superseded and the agency was not permitted to early adopt AASB 9.

1 Jan 2018

9.2 Future impact of Australian Accounting Standards not yet operative (continued)

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Notes to the Financial Statements

Operative for reporting periods beginning on/after

AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15This Standard gives effect to the consequential amendments to Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 15. The mandatory application date of this Standard has been amended by AASB 2015-8 to 1 January 2018. The agency has not yet determined the application or the potential impact of the Standard.

1 Jan 2018

AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)This Standard gives effect to the consequential amendments to Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 9 (December 2014). The agency has not yet determined the application or the potential impact of the Standard.

1 Jan 2018

AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15This Standard amends the mandatory application date of AASB 15 to 1 January 2018 (instead of 1 January 2017). It also defers the consequential amendments that were originally set out in AASB 2014-5. There is no financial impact arising from this Standard.

1 Jan 2018

AASB 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15This Standard clarifies identifying performance obligations, principal versus agent considerations, timing of recognising revenue from granting a licence, and, provides further transitional provisions to AASB 15. The agency has not yet determined the application or the potential impact when the deferred AASB 15 becomes effective from 1 January 2019.

1 Jan 2018

AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities

This Standard defers, for not-for-profit entities, the mandatory application date of AASB 15 to 1 January 2019, and the consequential amendments that were originally set out in AASB 2014-5. There is no financial impact arising from this standard.

1 Jan 2018

9.2 Future impact of Australian Accounting Standards not yet operative (continued)

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Notes to the Financial Statements

Operative for reporting periods beginning on/after

AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit EntitiesThis Standard inserts Australian requirements and authoritative implementation guidance for not-for-profit entities into AASB 9 and AASB 15. This guidance assists not-for-profit entities in applying those Standards to particular transactions and other events. There is no financial impact.

1 Jan 2019

9.3 Key management personnelThe agency has determined that key management personnel include Chairperson of the State Emergency Management Committee and Executive Director of the agency. The agency does not incur expenditures to compensate Ministers and those disclosures may be found in the Annual Report on State Finances.

The total fees, salaries, superannuation, non-monetary benefits and other benefits for senior officers of the agency for the reporting period are presented within the following bands:

Compensation band ($) 2018 2017

20,001 — 30,000 1 –

50,001 — 60,000 1 –

70,001 — 80,000 – 1

280,001 — 290,000 – 1

320,001 — 330,000 1 –

($'000) $'000

Short-term employee benefits 349 328

Other long-term benefits 50 40

Total compensation of senior officers 399 368

Total compensation includes the superannuation expense incurred by the agency in respect of senior officers.

There are no senior officers who are members of the Pension Scheme.

9.2 Future impact of Australian Accounting Standards not yet operative (continued)

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Notes to the Financial Statements

9.4 Related party transactionsThe agency is a wholly owned public sector entity that is controlled by the State of Western Australia.

Related parties of the agency include:• all cabinet ministers and their close family members, and their controlled or jointly controlled

entities;• all senior officers and their close family members, and their controlled or jointly controlled entities;• other departments and statutory authorities, including related bodies, that are included in the

whole of government consolidated financial statements (i.e. wholly owned public sector entities);• associates and joint ventures of a wholly owned public sector entity; and• the Government Employees Superannuation Board (GESB).

Significant Transactions with Government-related entitiesIn conducting its activities, the agency is required to transact with the state and entities related to the state. These transactions are generally based on the standard terms and conditions that apply to all agencies. Such transactions include:• income from State Government (Note 4.1);• equity contributions (Note 9.8);• superannuation payments to GESB (Note 3.1(a));• lease rentals payments to the Department of Finance (Government Office Accommodation and

State Fleet) and the Housing Authority (Government Regional Officer Housing) (Note 3.3) and related outstanding balances (Note 7.2.1); and

• remuneration for services provided by the Auditor General (Note 9.7).

Material transactions with related partiesOutside of normal citizen type transactions with the agency, there were no other related party transactions that involved key management personnel and/or their close family members and/or their controlled (or jointly controlled) entities.

9.5 Related bodiesThe State Emergency Management Committee and the agency have no related bodies.

9.6 Affiliated bodiesThe State Emergency Management Committee and the agency have no affiliated bodies.

9.7 Remuneration of auditorRemuneration payable to the Auditor General in respect of the audit for the current financial period is as follows:

2018($'000)

2017($'000)

Auditing the accounts, financial statements and key performance indicators 10 8

Auditing the accounts of the Western Australia Natural Disaster Relief and Recovery Arrangements 38 –

48 8

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Notes to the Financial Statements

9.8 Equity The Western Australian Government holds the equity interest in the agency on behalf of the community. Equity represents the residual interest in the net assets of the agency.

2018($'000)

2017($'000)

Contributed equityBalance at start of period 3,754 3,754

Contribution by ownersCapital appropriation 33 –

Total contributions by owners 3,787 3,754

Balance at end of period 3,787 3,754

Accumulated surplusBalance at start of period 1,663 1,251

Result for period (591) 412

Balance at end of period 1,072 1,663

Total equity at end of period 4,859 5,417

9.9 Supplementary financial information(a) Write-offs

No public property was written-off by the agency during the reporting period.

(b) Losses through theft, defaults and other causesLosses of public money and public and other property through theft or default – –

Amounts recovered – –

Loss of other property through other causes – –

– –

(c) Gifts of public propertyNo gifts of public property were provided by the agency. – –

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9.10 Explanatory statementAll variances between estimates (original budget) and actual results for 2018, and between the actual results for 2018 and 2017 are shown below. Narratives are provided for selected major variances which are greater than: – 5% and $0.160 million for Statements of Comprehensive Income and Cash Flows– 5% and $0.114 million for Statement of Financial Position

9.10.1 Statement of Comprehensive Income Variances

Variance note

Estimate2018

Actual2018

Actual2017

Variance between estimate

and actual

Variance between

actual results

for 2018 and 2017

$'000 $'000 $'000 $'000 $'000

Cost of servicesExpensesEmployee benefits expense 1 5,570 5,137 4,622 (433) 515

Supplies and services 2 949 1,268 1,291 319 (23)

Depreciation and amortisation expense 3 9 62 6 (53)

Accommodation expenses 3 1,017 774 667 (243) 107

Grants and subsidies 4 8,280 3,512 1,315 (4,768) 2,197

Loss on disposal of non-current assets – 27 15 27 12

Other expenses 5 309 57 34 (252) 23

Total cost of services 16,128 10,784 8,006 (5,344) 2,778

Income

Commonwealth grants and contributions 6 5,169 1,566 1,926 (3,603) (360)

Other revenue 7 – 144 419 144 (275)

Total revenue 5,169 1,710 2,345 (3,459) (635)

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Notes to the Financial Statements

Variance note

Estimate2018

Actual2018

Actual2017

Variance between estimate

and actual

Variance between

actual results

for 2018 and 2017

$'000 $'000 $'000 $'000 $'000

GainsGains on disposal of non-current assets – – – – –

Other gains – – – – –

Total Gains – – – – –

Total income other than income from State Government 5,169 1,710 2,345 (3,459) (635)

NET COST OF SERVICES 10,959 9,074 5,661 (1,885) 3,413

Income from State GovernmentService appropriation 8 6,244 6,430 5,450 186 980

Services received free of charge 9 273 575 623 302 (48)

Royalties for Regions Fund 10 – 1,478 – 1,478 1,478

Total income from State Government 6,517 8,483 6,073 1,966 2,410

SURPLUS/(DEFICIT) FOR THE PERIOD (4,442) (591) 412 3,851 (1,003)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR (4,442) (591) 412 3,851 (1,003)

9.10.1 Statement of Comprehensive Income Variances (continued)

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Notes to the Financial Statements

Major Variances Narratives

Note Statement of Comprehen-sive Income Allocation Line item Variance estimate vs actuals Variance actuals vs actuals

1 Expenses Employee benefits expenses

Lower than estimate by $0.433m due to delays in the completion of the Natural Disaster Resilience Program (NDRP) Risk and Resilience and Capability projects.

Higher than prior year by $0.515m due to an increase of Recovery and Risk and Resilience program activities, and $0.236m of termination payments resulting from Machinery of Government changes.

2 Expenses Supplies & Services

Higher than original estimate by $0.319m due to the reallocation of the 'Other Expenses budget to Supplies & Services' budget line. Actuals between 2017-18 and 2016-17 are aligned. See Note 3.3 for further details.

N/A.

3 Expenses Accommodation Lower than estimate by $0.243m due to the agency leasing arrangements being revised by the Department of Finance resulting in the agency shifting from Dumas House to Albert Facey House in November 2017, and the make good costs in relation to its previous tenancy at Southport Street Leederville being lower than expected.

N/A.

4 Expenses Grants and subsidies

Lower than estimate by $4.768m due to the Emergency Alert Upgrade payment to Emergency Management Victoria being deferred due to tendering delays, and the completion of ongoing Natural Disaster Resilience Program (NDRP) and National Bushfire Mitigation Program (NBMP) projects being behind schedule.

Higher than prior year by $2.197m due to an increase of Natural Disaster Resilience Program (NDRP) activities being completed and the commencement of Royalties For Regions Funds – Bushfire Mitigation Activity Fund (MAF) grant program that the agency administered on behalf of the Department Planning, Lands and Heritage. See Note 3.2 for further details.

9.10.1 Statement of Comprehensive Income Variances (continued)

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Major Variances Narratives

Note Statement of Comprehen-sive Income Allocation Line item Variance estimate vs actuals Variance actuals vs actuals

5 Expenses Other expenses Lower than estimate by $0.252m due to budget items being misaligned as 'Other expenses' instead of 'Supplies and Services'.

N/A.

6 Income Commonwealth grants and contributions

Lower than estimate by $3.6m due to the Emergency Alert Upgrade funding arrangement being revised whereby DFES will fund the program moving forward, and a delay in Commonwealth signing the NDRP project implementation plan, noting the balance of NDRP funds will be received in 2018–19 as per the 2018-19 Federal Budget Papers.

Lower than prior year by $0.36m mainly due to funding for the NBMP ceasing in June 2017.

7 Income Other revenue N/A. Lower than the prior year by $0.275m due to one-off funding for the State Crisis Information Management System received in 2016–17.

8 Income from State Government

Service appropriation

Higher than estimate by $0.186m mainly due to additional funding being provided for the Voluntary Targeted Separation Scheme as part of the Machinery of Government changes.

Higher the than prior year by $0.980 mainly due to the transfer of the Recovery function from the Department of the Premier and Cabinet and additional Assurance functions being undertaken by the agency.

9 Income from State Government

Services received free of charge

Higher than estimate by $0.3m due to Department of Finance providing services relating to the transition from accommodation at Leederville to West Perth and then Albert Facey House in Perth CBD that was not anticipated.

N/A.

9.10.1 Statement of Comprehensive Income Variances (continued)

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Notes to the Financial Statements

Major Variances Narratives

Note Statement of Comprehen-sive Income Allocation Line item Variance estimate vs actuals Variance actuals vs actuals

10 Income from State Government

Royalties for Regions Fund

Higher than estimate by $1.478m due to the commencement of Royalties For Regions Funds – Bushfire Mitigation Activity Fund (MAF) grant program that the agency administered on behalf of the Department Planning, Lands and Heritage.

Higher than the prior year by $1.478m due to the commencement of Royalties For Regions Funds – Bushfire Mitigation Activity Fund (MAF) grant program that the agency administered on behalf of the Department Planning, Lands and Heritage.

9.10.1 Statement of Comprehensive Income Variances (continued)

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9.10.2 Statement of Financial Position Variances

Variance note

Estimate2018

Actual2018

Actual2017

Variance between estimate

and actual

Variance between

actual results

for 2018 and 2017

$'000 $'000 $'000 $'000 $'000

Statement of financial positionCurrent assetsCash and cash equivalents A 5,313 5,682 6,178 369 (496)

Receivables 57 19 82 (38) (63)

Other assets 85 112 93 27 19

Total current assets 5,455 5,813 6,353 358 (540)

Non-current assetsAmounts receivable for services (Holding Account) 224 224 221 – 3

Plant and equipment 48 12 15 (36) (3)

Total non-current assets 272 236 236 (36) –

TOTAL ASSETS 5,727 6,049 6,589 322 (540)

LIABILITIESCurrent liabilitiesPayables B 286 134 167 (152) (33)

Employee related provisions C 617 851 801 234 50

Total current liabilities 903 985 968 82 17

Non-current liabilitiesEmployee related provisions 248 205 204 (43) 1

Total non-current liabilities 248 205 204 (43) 1

TOTAL LIABILITIES 1,151 1,190 1,172 39 18

NET ASSETS 4,576 4,859 5,417 283 (558)

EQUITYContributed equity 3,785 3,787 3,754 2 33

Accumulated surplus D 791 1,072 1,663 281 (591)

TOTAL EQUITY 4,576 4,859 5,417 283 (558)

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Notes to the Financial Statements

Major Variances Narratives

Note Statement of Financial Position Allocation Line item Variance estimate vs actuals Variance actuals vs actuals

A Current assets

Cash and cash equivalents

Higher than estimate by $0.369m mainly due to ongoing Natural Disaster Resilience Program (NDRP) and National Bushfire Mitigation Program (NBMP) projects being behind schedule.

Lower than prior year by $0.496m due to an increase of Natural Disaster Resilience Program (NDRP) activities being completed.

B Current liabilities

Payables Lower than estimate by $0.152m due to a lower number project Grants and Subsidies invoices being received at year end.

N/A.

C Current liabilities

Provisions Higher than estimate by $0.234m due to transfer of employee annual and long service leave liability from other state departments.

N/A.

D Equity Accumulated surplus

Higher than estimate by $0.281m mainly due to ongoing Natural Disaster Resilience Program (NDRP) and National Bushfire Mitigation Program (NBMP) projects being behind schedule.

Lower than prior year by $0.591m due to an increase of Natural Disaster Resilience Program (NDRP) activities being completed.

9.10.2 Statement of Financial Position Variances (continued)

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9.10.3 Statement of Cash Flows Variances

Variance Note

Estimate2018

Actual2108

Actual2017

Variance between estimate

and actual

Variance between

actual results

for 2018 and 2017

$'000 $'000 $'000 $'000 $'000

Cash flows from State GovernmentCASH FLOWS FROM STATE GOVERNMENTService appropriation 1 6,241 6,427 5,377 186 1,050

Capital contributions 31 33 – 2 33

Royalties for Regions Fund 2 – 1,478 – 1,478 1,478

Net cash provided by State Government 6,272 7,938 5,377 1,666 2,561

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

PaymentsEmployee benefits 3 (5,574) (5,053) (4,375) 521 (678)

Supplies and services 4 (676) (746) (589) (70) (157)

Accommodation 5 (1,017) (744) (979) 273 235

Grants and subsidies 6 (8,280) (3,530) (1,235) 4,750 (2,295)

GST payments on purchases 7 – (191) (206) (191) 15

Other payments 8 (305) (57) (34) 248 (23)

ReceiptsCommonwealth grants and contributions 9 5,169 1,566 1,926 (3,603) (360)

GST receipts on sales – 3 35 3 (32)

GST receipts from taxation authority 10 – 212 184 212 28

Other receipts 11 – 139 424 139 (285)

Net cash provided by/(used in) investing activities (10,683) (8,401) (4,849) 2,282 (3,552)

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Notes to the Financial Statements

Variance Note

Estimate2018

Actual2108

Actual2017

Variance between estimate

and actual

Variance between

actual results

for 2018 and 2017

$'000 $'000 $'000 $'000 $'000

CASH FLOWS FROM INVESTING ACTIVITIESPaymentsPurchase of non-current physical assets (31) (33) – (2) (33)

Net cash used in investing activities (31) (33) – (2) (33)

Net increase/(decrease) in cash and cash equivalents (4,442) (496) 528 3,946 (1,024)

Cash and cash equivalents at the beginning of the period 9,755 6,178 5,650 (3,577) 528

CASH ASSETS AT END OF REPORTING PERIOD 5,313 5,682 6,178 369 (496)

Major Variances Narratives

Note Statement of Cash Flows Allocation Line item Variance estimate vs actuals Variance actuals vs actuals

1 Cash flows from State Government

Service appropriation

Higher than estimate by $0.186m mainly due to additional funding being provided for the Voluntary Targeted Separation Scheme as part of the Machinery of Government changes.

Higher the than prior year by $1.050m mainly due to the transfer of the Recovery function from the Department of the Premier and Cabinet and additional Assurance functions being undertaken by the agency.

2 Cash flows from State Government

Royalties for Regions Fund

Higher than estimate by $1.478m due to the commencement of Royalties For Regions Funds – Bushfire Mitigation Activity Fund (MAF) grant program that the agency administered on behalf of the Department Planning, Lands and Heritage.

Higher than the prior year by $1.478m due to the commencement of Royalties For Regions Funds – Bushfire Mitigation Activity Fund (MAF) grant program that the agency administered on behalf of the Department Planning, Lands and Heritage.

9.10.3 Statement of Cash Flows Variances (continued)

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Notes to the Financial Statements

Major Variances Narratives

Note Statement of Cash Flows Allocation Line item Variance estimate vs actuals Variance actuals vs actuals

3 Payments Employee benefits

Lower than estimate by $0.521m due to delays in the completion of the Natural Disaster Resilience Program (NDRP) Risk and Resilience and Capability projects resulting from Machinery of Government changes.

Higher than prior year by $0.678m due to an increase of Recovery and Risk and Resilience program activities, and $0.236m of termination payments resulting from Machinery of Government changes.

4 Payments Supplies & services

N/A. Higher than prior year by $0.157m due to an increase of Recovery and Risk and Resilience program activities.

5 Payments Accommodation Lower than estimate by $0.273m due to the agency leasing arrangements being revised by the Department of Finance resulting in the agency shifting from Dumas House to Albert Facey House in November 2017, and the make good costs in relation to its previous tenancy at Southport Street Leederville being lower than expected.

Lower than prior year by $0.235m due to the agency leasing arrangements being revised by the Department of Finance resulting in the agency shifting from Dumas House to Albert Facey House in November 2017, and the make good costs in relation to its previous tenancy at Southport Street Leederville being lower than expected.

6 Payments Grants and subsidies

Lower than estimate by $4.750m due to the Emergency Alert Upgrade payment to Emergency Management Victoria being deferred due to tendering delays, and the completion of ongoing Natural Disaster Resilience Program (NDRP) and National Bushfire Mitigation Program (NBMP) projects being behind schedule.

Higher than prior year by $2.295m due to an increase of Natural Disaster Resilience Program (NDRP) activities being completed and the commencement of Royalties For Regions Funds – Bushfire Mitigation Activity Fund (MAF) grant program that the agency administered on behalf of the Department Planning, Lands and Heritage. See Note 3.2 for further details.

9.10.3 Statement of Cash Flows Variances (continued)

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Notes to the Financial Statements

Major Variances Narratives

Note Statement of Cash Flows Allocation Line item Variance estimate vs actuals Variance actuals vs actuals

7 Payments GST payments on purchases

Higher than estimate by $0.191m as no estimate was included within the budget for GST flows that are grouped with DFES group return.

N/A.

8 Payments Other payments Lower than estimate by $0.248m due to budget items being misaligned as 'Other expenses' instead of 'Supplies and Services'.

N/A.

9 Receipts Commonwealth grants and contributions

Lower than estimate by $3.6m due to the Emergency Alert Upgrade funding arrangement being revised whereby DFES will fund the program moving forward, and a delay in Commonwealth signing the NDRP project implementation plan, noting the balance of NDRP funds will be received in 2018–19 as per the 2018-19 Federal Budget Papers.

Lower than prior year by $0.36m mainly due to funding for the NBMP ceasing in June 2017.

10 Receipts GST receipts from taxation authority

Higher than estimate by $0.212m as no estimate was included within the budget for GST flows that are grouped with DFES group return.

N/A.

11 Receipts Other receipts N/A. Lower than the prior year by $0.285m due to one-off funding for the State Crisis Information Management System received in 2016–17.

9.10.3 Statement of Cash Flows Variances (continued)

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Notes to the Financial Statements

10 Administered disclosuresThis section sets out all of the statutory disclosures regarding the financial performance of the agency.

Note

Disclosure of administered income and expenses by service 10.1

Explanatory statement for administered items 10.2

10.1 Disclosure of administered income and expenses by serviceINCOME FROM ADMINISTERED ITEMS

Note2018

($'000)2017

$'000

IncomeFor transfer:Administered appropriation (a) 102,900 45,300

Total administered income 102,900 45,300

ExpensesGrants and Subsidies 125,835 57,276

Total administered expenses 125,835 57,276

(a) The agency administers the payment of claims from government agencies and local authorities with funding of such claims being processed pursuant to the Western Australian Natural Disaster Relief and Recovery  Arrangements. This function was transferred from the Department of the Premier and Cabinet to the agency in December 2016.

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Notes to the Financial Statements

10.1 Disclosure of administered income and expenses by service (continued)

Administered assets and liabilities

Note2018

($'000)2017

$'000

Current assetsCash and cash equivalents – WANDRRA (a) 5,032 795

Total administered assets 5,032 795

Current liabilitiesPayables – WANDRRA (a) 36,670 9,499

Total administered liabilities 36,670 9,499

Net Liabilities (31,638) (8,704)

EquityEquity transfer – Department of the Premier and Cabinet (b) 3,272 3,272

Accumulated deficits (34,910) (11,976)

Total administered equity (31,638) (8,704)

(a) The agency administers the payment of claims from government agencies and local authorities with funding of such claims being processed pursuant to the Western Australia Natural Disaster Relief and Recovery  Arrangements. This function was transferred from the Department of the Premier and Cabinet to the agency in December 2016.

(b) During the reporting period, the Department of the Premier and Cabinet transferred funds to the sub-department to pay claims pursuant to the Western Australia Natural Disaster Relief and Recovery Arrangements.

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Notes to the Financial Statements

10.2 Explanatory statement for administered items

Variance note

Estimate2018

Actual2018

Actual2017

Variance between estimate

and actual

Variance between

actual results

for 2018 and 2017

$'000 $'000 $'000 $'000 $'000

Cost of servicesExpensesGrants to charitable and other public bodiesWestern Australia Natural Disaster Relief and Recovery Arrangements 1 102,900 125,835 57,276 22,935 68,559

Total administered expenses 102,900 125,835 57,276 22,935 68,559

IncomeOtherWestern Australia Natural Disaster Relief and Recovery Arrangements 2 102,900 102,900 45,300 – 57,600

Total administered income 102,900 102,900 45,300 – 57,600

Major Variances Narratives

Note Statement of Comprehensive Income Allocation Line Item Variance estimate vs actuals Variance Actuals vs Actuals

1 Expenses Grants to charitable and other public bodies

Higher than estimate by $22.9m is mainly due to payments being paid to Main Roads WA for eligible disaster claims under the Western Australia Natural Disaster Relief and Recovery Arrangements (WANDRRA).

Higher than prior year by $68.5m due to more payments being made to Main Roads WA for eligible disaster claims under the WANDRRA.

2 Income Other N/A Higher than prior year by $57.6m due to an unprecendented number of natural disaster events occuring in Western Australia in 2016-17 and 2017-18 for eligible disaster claims under the WANDRRA.

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Independent Audit Opinion Letter

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Independent Audit Opinion Letter

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Independent Audit Opinion Letter

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Audited key performance indicators

Certification of key performance indicatorsAs prescribed by Treasurer’s Instruction 904, the key performance indicators provide information to assist readers to assess the performance of the agency in meeting its mission and outcomes.

I hereby certify that the key performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the agency’s performance, and fairly represent the performance of the agency for the financial year ended 30 June 2018.

Mal CronstedtReporting Officer

23 August 2018

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Audited key performance indicators

Key effectiveness indicator: Stakeholder assessment of strategic coordination of emergency management

For 2017–18, 73% of stakeholders consider the OEM effective in their support to the SEMC in the strategic coordination of emergency management in WA, exceeding the target of 68% and improving on last years actual of 71%.

WHY is this a key indicator of our performance?A goal of the OEM is to support the SEMC who have responsibility for the strategic oversight and coordination of emergency management in Western Australia. This indicator illustrates, from a stakeholder perspective, how effective the OEM is in supporting the SEMC in achieving its strategic goals.

HOW is this indicator derived?This indicator is based on an online survey that is distributed to emergency management stakeholders through an external agent. Stakeholders were emailed a link to the survey questionnaire. The survey period ran from 12 June 2018 until 29 June 2018, and 386 stakeholders completed the survey.

0 10 20 30 40 50

Very dissatisfied

Dissatisfied

Neither satisfiednor dissatisfied

Satisfied

Very satisfied 25%

48%

26%

1%

0%

0 10 20 30 40 50

Very dissatisfied

Dissatisfied

Neither satisfiednor dissatisfied

Satisfied

Very satisfied 20%

48%

27%

4%

1%

0 10 20 30 40 50

Very dissatisfied

Dissatisfied

Neither satisfied nor dissatisfied

Satisfied

Very satisfied 22%

49%

27%

2%

0%

2017–18Stakeholder assessment of strategic coordination of emergency management

2016–17Stakeholder assessment of strategic coordination of emergency management

2015–16Stakeholder assessment of strategic coordination of emergency management

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Audited key performance indicators

This compares with 315 respondents the previous year. Stakeholders were asked a variety of questions, including how effective the OEM was in supporting the goal of strategic coordination of emergency management in Western Australia. The scale used for measuring responses was: very satisfied, satisfied, neither satisfied nor dissatisfied, dissatisfied and very dissatisfied.

The result was then derived by the sum of ‘very satisfied’ and ‘satisfied’ response options.

WHAT does this indicator show?The majority of respondents indicated that they were very satisfied (25%) or satisfied (48%) with the effectiveness of the OEM.

This benchmark performance measure will be utilised for future business planning and continuous improvement, and will provide comparative analysis for the future.

This Key Performance Indicator (KPI) is under review as a result of Machinery of Government changes, as the OEM was integrated into DFES from 1 July 2018, and may be revised in the future to recognise the changes, with the approval of the Treasurer.

The OEM Target satisfaction level vs actual satisfaction level

The OEM 2015–16 2016–17 2017–18

Target satisfaction level

60% 60% 68%

Actual satisfaction level

68% 71% 73%

*Standard error is within 4.1% of the 95% confidence level.

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Audited key performance indicators

Key efficiency indicator: Average hourly cost of providing emergency management advice and consultation

$58 is the average hourly cost of providing emergency management advice and consultation and is above the target and the previous year actual.

Average hourly cost of providing emergency management advice and consultation

The OEM 2015-16 2016-17 2017-18

Target Average Hourly Cost

$56 $56 $54

Actual Average Hourly Cost

$54 $51 $58

WHY is this key indicator of our performance?This indicator illustrates the OEM’s efficiency in meeting the Government goal of results-based service delivery in the provision of our key function to provide emergency management advice and consultation.

HOW is this indicator derived?This indicator is derived by dividing the total annual salary costs as represented by the actual costs for 2017-18 by the annualised hours per Full Time Equivalent (FTE).

The calculation excludes time spent on the resources committed to state projects funded by the National Disaster Resilience Program and for the members of the SEMC.

WHAT does this indicator show?This indicator shows how efficient the OEM is in undertaking its core business (providing emergency management advice and consultation).

The average cost of providing emergency management advice has increased compared to the prior year by 14.3% as a result of increased OEM assurance and recovery functions being introduced and is 8.2% above target subsequently.

The original target was set at inception of the agency and did not account for salary increases and changes to scope and scale of the agency’s business.

The total hours spent on providing emergency management advice and consultation for 2017-18 was 54,776 hours, compared to 57,648 hours in 2016-17, a decrease of almost 5% and increase of 25% when compared to 43,745 hours in 2015-16.

The OEM salaries have increased by $1000 pa due to award increases and staffing levels have decreased by 1.5 FTE as Machinery of Government changes resulted in the OEM being integrated into DFES from 1 July 2018.

With the approval of the Treasurer, this KPI will be reviewed and may be revised in the future to recognise the changes.

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Other financial disclosures

Ministerial directionsNo ministerial directions were received during 2017–18.

Leave liability managementThe OEM has formal leave management processes in place. A key strategy followed by the OEM is to ensure staff are taking leave to support their welfare and wellbeing.

Unauthorised use of credit cardsOfficers of the agency hold corporate credit cards where their functions warrant usage of this facility. Despite each cardholder being reminded of their obligations annually under the agency’s credit card policy, one employee inadvertently utilised the corporate credit card. The matter was not referred for disciplinary action as the Chief Finance Officer noted prompt advice and settlement of the personal use amount, and, that the nature of the expenditure was immaterial and characteristic of an honest mistake.

Pricing policies of services providedNo pricing policies of services impacted the OEM, as the agency does not generate Tariffs, Fees and Charges.

Capital worksNo capital works were undertaken by the OEM during 2017–18. The OEM as a subdepartment of DFES follows the processes and policy of the Department.

Employment and industrial relationsDFES is the employing authority for all the OEM staff.

Staff profile 2018 2017

Full-time permanent

17 20

Full-time contract 11 10

Part-time permanent

4 6

Part-time contract 4 4

On secondment 2 3

Total (head count)

38 43

Staff developmentThe OEM has a commitment to the development of its employees. Our strategies are to build a highly skilled, professional and fair workforce with the ability to adapt to changes in the business environment and to be responsive to changing community needs.

Staff have access to formal staff development schemes offered by DFES. Staff have also been provided with a range of training and development opportunities predominantly occurring through the performance discussion process.

Workers’ compensationNil compensation claims were received during 2017–18.

RecruitmentThe OEM operates under a service agreement with DFES Human Resources for recruitment support. DFES undertakes many of the key processes for recruitment, such as classification benchmarking, provision of access to the online recruitment system (RAMS), and reinforcement of support with guidance, education and training.

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2018$

Aggregate amount of personal use expenditure for the reporting period

194

Aggregate amount of personal use expenditure settled by the due date (within 5 working days)

114

Aggregate amount of personal use expenditure settled after the period (after 5 working days)

80

Aggregate amount of personal use expenditure outstanding at balance date

Governance disclosures

Contracts with senior officersAt the date of reporting, other than normal contracts of employment of service, no senior officers, or firms of which senior officers are members or entities in which senior officers have substantial interests, had any interests in existing or proposed contracts with the OEM and senior officers.

Audit and risk managementThe OEM Executive Director is a member of the DFES Audit and Risk Management Committee. This participation allows the OEM to contribute to the annual audit program undertaken by its internal auditors. The Office of the Auditor General has appointed external auditors from Deloitte Touche Tohmatsu to audit DFES and subsequently the OEM. Additional information can be found in the DFES Annual Report 2017–18.

Indemnity insuranceAs a subdepartment of DFES, the OEM is indemnified as part of the process followed by DFES. Additional information can be found in the DFES Annual Report 2017–18.

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Compliance with public sector standards and ethical codes(Public Sector Management Act 1994, s. 31(1))

In the administration of the Office of Emergency Management, I have complied with the Public Sector Standards in Human Resource Management, the Western Australian Public Sector Code of Ethics and DFES Code of Conduct.

I have established procedures designed to ensure compliance (if not provided by DFES) and conducted appropriate internal assessments to satisfy myself that the statement made above is correct.

Breaches of Standards Review is included in DFES results. Additional Information can be found in the DFES Annual Report 2017-18.

Professional Standards is included in the DFES results. Additional Information can be found in the DFES Annual Report 2017-18.

Mal Cronstedt AFSM, MBA, BAReporting Officer

23 August 2018

Other legal requirements

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Government policy requirements

Government building contractsThe OEM did not undertake any works or issue any contracts within the scope of Government Building Training Policy (Premier’s Circular 2015-02 – Government Building Training Policy).

AdvertisingIn accordance with s.175ZE of the Electoral Act 1907, the OEM did not incur any expenditure on advertising, market research, polling, direct mail and media advertising.

Ministerial communicationIn accordance with s. 74 of the Public Sector Management Act 1994, the OEM has an agreement with the Minister for Emergency Services that outlines communication procedures between the Minister’s office and the OEM staff. This agreement ensures that the Minister receives accurate and timely information and advice.

Ministerial communication 2017–18

Ministerial items:• briefing notes• contentious

issues with briefing notes

• cabinet submissions

• cabinet referrals

116

20 6

16

Parliamentary questions

42

Disability Access and Inclusion Plan outcomesThe OEM is committed to following DFES’s Disability Access and Inclusion Plan outcomes. Accommodation at Level 1, Albert Facey House, 469 Wellington Street, Perth, is considered to comply. With regard to formal OEM communications, the Communications Coordinator can provide information in alternative formats to assist stakeholders where requested. Additional information can be found in the DFES Annual Report 2017–18.

Record Keeping PlansDFES provides this service to the OEM. Information can be found in the DFES Annual Report 2017–18.

Freedom of InformationDFES provides this service to the OEM. Information can be found in the DFES Annual Report 2017–18.

Occupational health and safetyDFES provides occupational safety, health and injury management and workers’ compensation services for the OEM. The OEM is represented on subcommittees at DFES and has a local working group operating in the Albert Facey House office. All reporting occurs through DFES’s online reporting system. Additional Information can be found in the DFES Annual Report 2017–18.

Reconciliation Action PlanThe OEM is committed to DFES’s Reconciliation Action Plan. Additional Information can be found in the DFES Annual Report 2017–18.

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AFSM Australian Fire Service MedalCWLTH Commonwealth of AustraliaCSC Conspicuous Service CrossDA District AdvisorDEMC District Emergency Management CommitteeDFES Department of Fire and Emergency ServicesDPIRD Department of Primary Industries and Regional DevelopmentEM Act Emergency Management Act 2005GST Goods and Services TaxHMA Hazard management agencyKPI key performance indicatorLEMA local emergency management arrangementsLEMC Local Emergency Management CommitteeNDRP Natural Disaster Resilience ProgramNPA National Partnership AgreementOAG Office of the Auditor GeneralOEM Office of Emergency ManagementPTA Public Transport AuthorityRAMMS Risk Assessment, Measurement and Mitigation SubcommitteeSAR Search and Rescue ResponseSEMC State Emergency Management CommitteeSPRED space re-entry debrisTC tropical cycloneWACOSS Western Australian Council of Social ServiceWA Western AustraliaWANDRRA Western Australia Natural Disaster Relief and Recovery Arrangements

Acronyms

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Contact information© Government of Western Australia

Published September 2018 by the Office of Emergency Management

Address:Level 1, 469 Wellington StreetPerthWestern Australia 6000

Tel: +61 8 6551 4029Email: [email protected]: www.semc.wa.gov.au

The annual report of the State Emergency Management Committee (SEMC) and the final report of the Office of Emergency Management (OEM) have been produced in accordance with the Public Sector Annual Report Framework.

This report is copyright and may be reproduced provided the source is acknowledged. All photographs within have been used with permission and remain the property of the SEMC or the contributors.

The report has been produced in electronic format and is available to download from the SEMC’s website in PDF. The report is available in alternative formats on request. For hearing or speech-impaired access, please contact the National Relay Service TTY 133 677.