PUBLIC ACCOUNTS AND ESTIMATES COMMITTEE 2012-13 … · Please detail the original budget estimate for ‘purchases of non-financial assets’ for 2012-13 (or an equivalent line item

Public Accounts and Estimates Committee: 2012-13 Financial and Performance Outcomes General Questionnaire

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PUBLIC ACCOUNTS AND ESTIMATES COMMITTEE

2012-13 FINANCIAL AND PERFORMANCE OUTCOMES GENERAL QUESTIONNAIRE

RURAL FINANCE CORPORATION OF VICTORIA

AGENCY QUESTIONNAIRE

RCVD PAEC 06/12/2013

http://library.parliament.vic.gov.au/database/igfull.cfm?ImageName=emblem09

http://library.parliament.vic.gov.au/database/igfull.cfm?ImageName=emblem09


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SECTION A: Output variations and performance measures

Question 1 Please provide copies of all of your department’s/agency’s annual plans, business plans, strategic plans, corporate plans or similar relating to 2012-13 (these are requested in accordance with Section 28(1) of the Parliamentary Committees Act 2003) unless they are online. If they are online, please specify the document name and web address:

Document Web address:

Corporate Plan 2013-16

Question 2 Regarding the use of the performance measures in the budget papers relating to your department/agency:

(a) How did the 2012-13 results influence planning for 2013-14?

Influenced industry lending growth numbers and hence budget.

(b) Please detail all changes planned for 2013-14 as a consequence of actual results for any performance measures not meeting the targets in 2012-13.

N/A

(c) Please list any other ways that your department/agency used data related to the performance measures during 2012-13.

Board reporting, staff performance reviews and salary outcomes



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Question 3 (departments only) (Agency response not required)

Question 4 (Department of Treasury and Finance only) (Agency response not required)

SECTION B: Asset investment (departments only)

Question 5 (Agency response not required)




Question 9 This question does not apply to your department. (Agency response not required)



SECTION B: Asset investment (non-departments only)

Question 12 Please provide the following details for any asset investment project where actual expenditure in 2012-13 varied by $±10 million or more from the budget estimate:

(a) the total expenditure to 30 June 2013 (using actual figures, rather than the estimate in the budget papers);

(b) the estimated expenditure in 2012-13 according to the 2012-13 budget papers;

(c) the actual expenditure in 2012-13;

(d) explanations for any variations greater than ±10 per cent or $100 million between the actual expenditure and what was estimated in the budget papers at the start of the year;



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(e) the financial completion date (see definition in the explanatory memorandum) as estimated at 30 June 2012;

(f) the financial completion date as estimated at 30 June 2013; and

(g) an explanation for any changes to the estimated financial completion date between 2012 and 2013.

If there were no asset investment projects for your agency where the actual expenditure varied by $±10 million or more from the budget estimate, you do not need to answer this question.

Project Actual expenditure to 30/06/2013

Estimated expenditure in 2012-13 (2012-13 budget papers)

Actual expenditure in 2012-13

Explanation for variation Estimated financial completion date as at 30/6/2012

Estimated financial completion date as at 30/6/2013

Explanation for any changes to the estimated financial completion date

($ million) ($ million) ($ million)

N/A

Question 13 Please detail the original budget estimate for ‘purchases of non-financial assets’ for 2012-13 (or an equivalent line item in the cash flow statement) for your entity, the actual amount of that line item in your annual report and an explanation for any variation greater than ±10 per cent or $100 million.

Original budget estimate for 2012-13

Actual for 2012-13 Explanation for any variation greater than ±10 per cent or $100 million

($ million) ($ million)

None



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SECTION C: Revenue and revenue foregone

Question 14 Please explain and detail the impact of any variances greater than ±10 per cent or $100 million between the prior year’s actual result and the actual result for 2012-13 for each revenue/income category detailed in your operating statement.

For departments, please provide data consolidated on the same basis as the budget portfolios outcomes statement in your annual reports.

If there were no revenue/income categories for your department/agency for which the 2012-13 expenditure varied from the 2011-12 expenditure by more than ±10 per cent or $100 million, you do not need to answer this question.

Revenue category

2011-12 actual

2012-13 actual

Explanations for variances greater than ±10 per cent or $100 million

Impact of variances


Other income 3.1 2.5 Lower fees from the administration of Government schemes/supports programs (e.g. flood grants, bushfire grants) as there were fewer natural disasters.

Lower profit generated from other income.

Question 15 Please explain and detail the impact of any variances greater than ±10 per cent or $100 million between the initial budget estimate (not the revised estimate) and the actual result for 2012-13 for each revenue/income category detailed in your operating statement.


If there were no revenue/income categories for your department/agency for which the 2012-13 expenditure varied from the initial budget estimate by more than ±10 per cent or $100 million, you do not need to answer this question.



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Revenue category

2012-13 budget estimate

2012-13 actual


Impact of variances


Other income 4.9 2.5 Lower fees from the administration of Government schemes/supports programs (e.g. flood grants, bushfire grants) as there were fewer natural disasters.

Lower profit generated from other income.

Question 16 Please provide an itemised schedule of any concessions and subsidies (revenue foregone) (see the Explanatory Memorandum for a definition of concessions and subsidies) provided by your organisation in 2012-13. For each item, please:

(d) describe the purpose of the concession/subsidy;

(e) explain any variations greater than ±10 per cent or $100 million between the actual expenditure and the initial budget estimate for the year;

(f) indicate the number of concessions/subsidies granted in each category; and

(g) explain whether the outcomes in the community1 expected to be achieved by granting these concessions or providing these subsidies have been achieved.

1 ‘outcomes’ are the impact of service delivery on the community rather than a description of the services delivered



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Concession/ subsidy

Purpose 2012-13 budget estimate

2012-13 actual


Number of concessions/subsidies granted in 2012-13

Outcomes achieved


Young Farmers’ Finance Scheme

Discounted lending rates to enable purchase of property for young farmers

1.6 1.5 N/A 108 Supported young farmers by enabling lower finance costs for the purchase of stock, equipment and land.

Question 17 (Department of Treasury and Finance only (Agency response not required)

SECTION D: Expenditure

Question 18 Please explain and detail the impact of any variances greater than ±10 per cent or $100 million between the prior year’s actual result and the actual result for 2012-13 for each expenditure category detailed in your operating statement.


If there were no expenditure categories for your department/agency for which the 2012-13 expenditure varied from the 2011-12 expenditure by more than ±10 per cent or $100 million, you do not need to answer this question.

Expenditure category

2011-12 actual

2012-13 actual


Impact of variances


Total operating 18.260 20.315 Growth in operating expenses due to growth in business, regulatory changes such as increased Fringe Benefit Tax

2012-13 expenses are higher than previous year.



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expenses rates, increased compliance costs for fraud security on client visa cards and investing in a new IT Banking Platform

Professional fees

1.485 2.561 Costs incurred for the new IT Banking Platform development 2012-13 expenses are higher than previous year.

Profit/Loss on sale of assets

0.059 0.097 Lower trade in prices on motor vehicles 2012-13 expenses are higher than previous year.

Question 19 Please explain and detail the impact of any variances greater than ±10 per cent or $100 million between the initial budget estimate (not the revised budget) and the actual result for 2012-13 for each expenditure category detailed in your operating statement.


If there were no expenditure categories for your department/agency for which the 2012-13 expenditure varied from the initial budget estimate by more than ±10 per cent or $100 million, you do not need to answer this question.

Expenditure category

2012-13 budget estimate

2012-13 actual


Impact of variances


Professional fees

1.418 2.561 Costs incurred for the new IT Banking Platform development were originally expected to be capitalised and not expensed.

2012-13 expenses are higher than previous year

Profit/Loss on sale of assets

0.040 0.097 Lower trade in prices on motor vehicles. 2012-13 expenses are higher than previous year




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Question 21 Please detail any changes to your department’s/agency’s service delivery as a result of savings initiatives released since the change of government, e.g. changes to the timing and scope of specific programs or discontinued programs.

N/A

Question 22 Please detail the initial budget estimate (not the revised estimate) for net debt for 2012-13 for your entity, the actual value of that line item and an explanation for any variation greater than ±10 per cent or $100 million.

Original budget estimate for 2012-13

Actual for 2012-13 Explanation for any variation greater than ±10 per cent or $100 million


Please note that Rural Finance is a financial institution and net debt is therefore not applicable as we borrow from TCV to fund our client lending.


Question 24 (PNFC and PFC entities only) Please detail the value of dividends paid by your agency to the general government sector during 2011-12 and 2012-13, explaining the reasons for any significant change and the impact of changed dividends on the agency.

Total dividends paid in 2011-12

Total dividends paid in 2012-13

Explanation for any variation greater than ±10 per cent or $100 million

Impact of changes to dividends on the agency



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13.790 15.263 Increase in net profit, therefore increase in dividend. Nil.

SECTION E: Public sector workforce

Question 25 Please detail the total full-time equivalent number of staff in your department/agency as at 30 June 2012 and 30 June 2013 in each of the following bands of levels, and explain the changes from one year to the next:

Level Total FTE (30 June 2012) Total FTE (30 June 2013) Explanation for changes

VPS Grades 1-3 N/A N/A N/A

VPS Grade 4 N/A N/A N/A

VPS Grades 5-6 and STS N/A N/A N/A

EO N/A N/A N/A

Other N/A N/A N/A

Total of all staff (including non-VPS grades)

108.95

Plus 3.2 Agency Temps

120.25 6 maternity leave contracts; 2 graduates; business growth and project resources.

Note: Rural Finance staff are on individual contracts and the grading system does not apply.

Question 26 In the table below, please detail the salary costs for 2011-12 and 2012-13, broken down by ongoing, fixed-term and casual, and explain any variations greater than ±10 per cent or $100 million between the years for each category.



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Employment category Gross salary 2011-12 Gross salary 2012-13 Explanation for any variations greater than ±10 per cent or $100 million


Ongoing 7.8 8.3

Fixed-term 0.2 0.4 Maternity Leave & Project Contract roles.

Casual 0.3 0.06 Less casuals for Government Industry Programs.

Total 8.3 8.7

Question 27 Please provide the following details about staff number changes in 2012-13.

(Please include VPS, non-VPS and fixed-term staff, and provide all data as FTE):

Target for 2012-13

Actual for 2012-13

Reason for any variation between target and actual Impact of reduction or increase in staff numbers on services delivery

Total change in staff numbers (please indicate + for increase and – for decrease)

N/A N/A N/A

Change in the number of head office staff* (please indicate + for increase and – for decrease)

Change in the number of front-line staff* (please indicate + for increase and – for decrease)

Number of new staff hired

Number of staff reduced



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through resignation and retirement

Number of staff reduced through non-renewal of contracts

Number of staff reduced through VDPs

Number of staff reduced through TSPs

Number of staff reduced through other means

Costs associated with staff reductions (e.g. VDP and redundancies pay-outs) ($ million)

* Please indicate how you have defined ‘head office staff’ and ‘front-line staff’.

Note: Question not applicable. Rural Finance staff are on individual contracts and the grading system does not apply.

Question 28 Please itemise the services delivered by contractors or contract staff in 2012-13 (refer to Explanatory Memorandum for definition of contractors):

Role/services provided Number of contractors/contract staff

Value of services ($)

Communications 1 31,939

IT 6 (multiple staff from 2 providers)

1,133,373



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Administration 9 43,931

HR / Recruitment 4 90,486

Legal 7 74,670

Question 29 Please itemise the services delivered by consultants in 2012-13 (refer to Explanatory Memorandum for definition of consultants):

Role/services provided Number of consultants Value of services ($)

Support of the due diligence and selection process for a provider of a new banking transaction platform (software)

2 39,382

Specialist legal advice 3 50,510

Rural Finance brand enhancement assistance 1 30,069

Workflow realignment review 1 26,052

Executive remuneration review and strategic planning assistance 1 21,050

Assistance with strategic planning 6 49,239

Assistance with Young Farmer Initiative Scheme 1 12,834

Staff recruitment and HR assistance 5 13,754



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Question 30 Please complete the following tables showing the number of executive staff and total value of bonuses paid in the 2012-13 performance period:

Executive category

Number of staff (FTE) Total value of bonuses paid ($)

Eligible for a performance bonus

Not awarded bonus payment

Awarded bonus payment

Secretary or CEO, EO1 – Deputy(a)

8 0 8 285,296

EO2(a)

EO3

Other Executives

Other staff 113 66 47 148,467

Note (a): Combine categories to preserve confidentiality where necessary



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Question 31 Please detail the number of executives who received increases in their base remuneration in 2012-13, breaking that information down according to what proportion of their salary the increase was, and explaining the reasons for executives’ salaries increasing in each bracket.

Increase in base remuneration Number of executives receiving increases in their base rate of remuneration of this amount

Reasons for these increases

0-3 per cent 8 In line with Premier’s determination for maximum annual salary increase.

3-5 per cent 2 Increased responsibility and alignment with market.

5-10 per cent

10-15 per cent

greater than 15 per cent

SECTION F: Program outcomes (departments only) (Agency response not required) Outcomes and objectives reflect the impact on the community of the goods and services provided by a department. The questions in this section all relate to the outcomes and objectives that your department contributed to in 2012-13.



SECTION G: Fiscal and economic strategy (Department of Treasury and Finance only) (Agency response not required)



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SECTION H: Previous recommendations (Agency response not required)



Documents

PUBLIC ACCOUNTS AND ESTIMATES COMMITTEE 2012-13 … · Please detail the original budget estimate for ‘purchases of non-financial assets’ for 2012-13 (or an equivalent line item