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NORTHERN TERRITORY TREASURY

Annual Report
2006 - 07
Overview 3
Performance Reporting 11
Corporate Governance 35
Treasury People 53
Financial Performance 71
Northern Territory Treasury 74
Financial Statements 2006-07
Central Holding Authority 105
Financial Statements 2006-07
Appendixes 127
Glossary 146
List of Tables and Figures 149
Northern Territory Treasury
38 Cavenagh Street
GPO Box 1974
Darwin NT 0801

General Enquiries
Tel (08) 8999 7406

Business hours: 8:00 am to 4:30 pm


N o r t h e rn T e rr i t o r y Tr e a s u r y

Annual Report
2006-07
The Honourable Syd Stirling MLA
Treasurer
GPO Box 3146
DARWIN NT 0801

Dear Treasurer

In accordance with the provisions of section 28 of the Public Sector Employment


and Management Act, I am pleased to provide to you the Annual Report of
Northern Territory Treasury for 2006-07 and to confirm that, in terms of that Act, all
Employment Instructions have been satisfied.

This report describes developments and operational outcomes during the


year in a form intended to be informative to a wide range of readers including
Parliamentarians, other Government agencies, the public and Treasury employees.

Pursuant to the Financial Management Act, I advise that to the best of my


knowledge and belief:

(a) proper records of all transactions affecting Treasury are kept and that
employees under my control observe the provisions of that Act, the Financial
Management Regulations and the Treasurer’s Directions;

(b) procedures within Treasury afford proper internal control, and that these
procedures are recorded in the Accounting and Property Manual, which
has been prepared in accordance with the requirements of the Financial
Management Act;

(c) no indication of fraud, malpractice, major breach of legislation or delegation,


major error in or omission from the accounts and records exists;

(d) in accordance with the requirements of section 15 of the Act, the internal audit
capacity available to Treasury is adequate and the results of internal audits
have been reported to me;

(e) the financial statements included in the Annual Report have been prepared
from proper accounts and records and are in accordance with Treasurer’s
Directions; and

(f) all Employment Instructions issued by the Commissioner for Public


Employment have been satisfied.

Yours sincerely

Jennifer Prince
Under Treasurer
30 September 2007

iii
How to Use this Report

This report is designed to meet The Ointroduces Northern This year, the report is published in
Northern Territory Treasury’s annual Territory Treasury, with a profile of an electronic format (rather than in
reporting requirements, as specified the organisation and the Under print), with limited use of graphics
for public sector agencies in the Treasurer’s review of the year to and illustrations to minimise download
Public Sector Employment and June 2007. The corporate statement times. It is provided in PDF format with
Management Act and the Financial outlines our objectives and values. options for downloading the entire
Management Act. It reports our A summary of the past year’s report or individual sections.
performance to the Treasurer, the achievements and the focus for the
Please consider the environment
Legislative Assembly, government current year is also provided.
and avoid unnecessary paper usage
agencies and other stakeholders. It
Performance Reporting is a detailed before printing this document.
reflects on Treasury’s many and varied
account of Treasury’s performance
endeavours during 2006-07, and If you need more information, please
in 2006-07 measured against
provides information about Treasury’s visit our website at www.nt.gov.au/ntt
achievement of the five strategic
culture, responsibilities and internal
objectives. Output performance tables
governance arrangements.
report on Treasury’s performance in
terms of the measures published in
Budget papers.

Managing the organisation describes


how Treasury functions as an
organisation, its corporate governance
arrangements and staffing. It also
reports on our financial performance
by providing financial statements for
Treasury and the Central Holding
Authority.

The Appendixes provide further details


of Treasury’s responsibilities, functions
and structure. There is also a glossary
of common Treasury terms and a list
of tables and figures.

iv Annual Report 2006-07


Contents
Overview 3
Treasury Profile 4
Under Treasurer’s Review 5
Corporate Statement 7
Summary of Results in 2006-07 9
Our Focus in 2007-08 10
Performance Reporting 11
Reporting Preface 12
Objectives
1. Public Policy Advice 13
2. Financial Management 17
3. Intergovernmental Relations 21
4. Revenue Management 23
5. Superannuation 26
Output Performance Tables 28
Managing the Organisation 35
Corporate Governance 35
Treasury People 53
Financial Performance 71
Financial Statements – Treasury’s Dual Role 72
Northern Territory Treasury 74
Financial Statements 2006-07
Central Holding Authority 105
Financial Statements 2006-07
Appendixes 127
1. Directory 128
2. Functions of Treasury 130
3. Treasury’s Organisational Chart 133
4. Corporate Governance Committees 134
5. Membership of Boards and Committees 137
6. Legislation Administered 139
7. Legislative Changes 2006-07 140
8. Competitive Neutrality 142
9. Publications 143
Glossary 146
List of Tables and Figures 149
Overview
Treasury Profile 4
Under Treasurer’s Review 5
Corporate Statement 7
Summary of Results in 2006-07 9
Our Focus in 2007-08 10
Treasury Profile

Northern Territory Treasury was Organisation Our Services


established at Self Government in
Treasury reports to the Treasurer The services Treasury provides
1978. We are a young organisation
through the Under Treasurer. We include advice, analysis and
with an average age of 37 years and,
employ 185 staff, located in Cavenagh administration of matters relating to:
in our 29 years of operation, we have
House, Darwin.
developed a reputation for providing • financial management and fiscal
high quality, expert advice to Our business units are grouped into initiatives;
Government on fiscal, economic and five output groups for budgeting and • economic frameworks and the
commercial issues. It is a reputation reporting purposes. Territory economy;
that we are proud of and work hard to
Treasury is also responsible for two • commercial projects;
maintain.
statutory offices: Northern Territory • own-source revenue, including
Our Role Treasury Corporation and the Utilities taxation;
Commission. Although both produce
Treasury’s primary role is to provide • public sector superannuation;
their own annual reports, each forms
specialist financial, economic and • borrowing and investing on behalf
part of Treasury for administrative
commercial policy advice and of the Territory; and
purposes and so summary information
services to the Northern Territory • grants, subsidies and community
about their performance is included in
Government to assist it in its service obligations related to our
Treasury’s Annual Report.
responsibility to deliver services responsibilities.
and infrastructure for the benefit of Further details of the functions of
Territorians. our business units and statutory
authorities can be found in
Appendix 2: Functions of Treasury.
The contribution of business units to
Treasury’s strategic objectives and
output groups is illustrated on page 8.

 Annual Report 2006-07


Under Treasurer’s Review

closely with the Australian Bureau of Intergovernmental Relations


Statistics (ABS) for the last three years The high cost of service delivery in
to achieve an improved Population the Territory and the relatively greater
Census in August 2006. needs of our population mean that
The 2006 Census data was the Territory is more reliant than other
incorporated into the Territory’s jurisdictions on funding from the
estimated resident population in June Australian Government. Thus, effective
2007, resulting in an increase of 4000 management of intergovernmental
Treasury is committed to promoting people – an important outcome for the financial arrangements and,
sustainable fiscal strength, economic Territory. in particular, the application of
development and improved social horizontal fiscal equalisation by the
Treasury continues to work closely Commonwealth Grants Commission,
wellbeing for Territorians by providing
with the ABS on several data analysis remain a high priority for Treasury.
the best possible analysis, advice and
projects and is working with the ABS The Commission is undertaking a
services. This was again demonstrated
on improvements for the 2011 Census. major review of relativities, to be
in 2006‑07, with high quality outputs
completed by 2010, and Treasury
produced by all areas of Treasury Financial Reporting
and continued enhancement of our has been heavily involved in the
The Budget represents one of our
internal systems and processes. review process, making several
most significant contributions to
submissions during the year on behalf
The Annual Report provides a the Government’s overall policy
of the Territory. Treasury continues
detailed report on our performance framework. The 2007-08 Budget
to actively participate on matters
and achievements in 2006-07, as was handed down in May 2007,
such as the simplification of existing
well as highlighting the nature of incorporating an extensive
arrangements and the quality of data
our organisation and our strategic infrastructure program, home
used in assessments that underpin
priorities. ownership initiatives, ongoing service
the distribution of GST revenue.
delivery priorities and tax reform, and
National Reform Agenda was in line with the Government’s Indigenous Expenditure
Treasury contributed significantly to fiscal strategy. It also analysed
Review
developing and implementing the the implications of demographic
The Territory has a large and
Council of Australian Governments’ change for the Territory and provided
geographically dispersed Indigenous
National Reform Agenda. Treasury a summary of the Indigenous
population living in urban, rural and
represents the Territory in working Expenditure Review.
remote areas. The cost of delivering
groups in the three streams of
The 2005-06 Treasurer’s Annual infrastructure and services to
human capital, competition and
Financial Report and 2006-07 Indigenous Territorians, especially
regulatory reform, with other reforms
Mid‑Year Report were published, those in remote communities, can
still being developed. The National
meeting the Territory’s reporting be significant. In September 2006,
Reform Agenda aims to secure future
obligations under its own legislation as Treasury published the Indigenous
prosperity through further economic,
well as intergovernmental agreements. Expenditure Review, which presents
social and environmental gains.
and analyses expenditure compared
All these financial reports showed
2006 ABS Census and to funding received by the Territory
ongoing improvements in the
for Indigenous-related purposes. The
Demographics Territory’s fiscal position and
review is an important piece of work
Data from the Census determines continued clarity and transparency in
for the Territory and will be updated
distribution of GST and other revenues presentation.
annually.
as well as providing essential
information for planning government
services. The Territory has worked

Overview 
Motor Accidents Superannuation Well Managed and Flexible
Compensation To fulfil Government’s enterprise Organisation
The Motor Accidents (Compensation) bargaining commitments relating to More was achieved during the year in
Act (MACA) defines the statutory superannuation, legislation has been managing the organisation to improve
benefits available to people injured, drafted to formalise the death and our capability, responsiveness and
or the dependants of people killed, invalidity scheme and to implement culture.
in motor vehicle accidents in the member investment choice and
• Corporate governance
Territory. Following a review and public allocated pensions. The Australian
arrangements were improved
consultation on proposed legislative Government’s superannuation reforms
with the review of Treasury’s
amendments, a new MACA benefit were implemented as they applied to
conflict of interest policy and new
structure was introduced, with effect the Territory’s public sector schemes.
policies developed on flexible work
from 1 July 2007.
Tax Administration arrangements, equity and diversity.
Power and Water Reflecting the Territory’s economic • Continued efforts on recruiting staff
Corporation growth in 2006-07, Treasury to meet our ongoing needs included
In addition to advising on various administered and receipted over a large entry-level program in
commercial projects and issues, $500 million in own-source revenue. 2006‑07. This included 20 graduate
Treasury is responsible for the To simplify tax administration and trainees, eight cadets sponsored
financial management frameworks make it more transparent, legislation for their tertiary study and three
for government owned corporations. was drafted for a new Taxation apprentices. These programs are
Following a review of Power and Administration Act after consulting key elements in our long-term
Water’s financial systems, a new with taxpayers and industry recruitment strategy.
Statement of Corporate Intent was professionals. To achieve greater • To extend professional development,
negotiated detailing Power and national payroll tax consistency, a Treasury staff attended a range
Water’s operations and capital and review of other legislative provisions is of conferences, seminars and
maintenance programs for the next also progressing. other courses throughout the year.
five years. The Manager’s Toolkit was also
Racing, Gaming and
developed to enhance the skills and
Contributing to Whole of Licensing expertise of our managers.
Government Projects Late in 2006, the Government decided
Reflecting on the past year, Treasury
Treasury staff were involved in that the policy priorities and regulatory
has again achieved much as an
a number of strategic whole of activities of the racing, gaming
organisation and I acknowledge the
government committees and reviews. and licensing function were more
effort and expertise of our staff. With
This includes a review to improve the aligned with the community safety
their continued commitment and hard
delivery of corporate services, the responsibilities of the Department
work, I look to the challenges in the
review of legislation for competition of Justice. This alignment has been
year ahead, confident that Treasury
impacts and to reduce the regulatory especially important with the growing
will continue to make significant
burden on business, public sector focus on liquor-related matters
contributions to the development of
wages policy and enterprise and, more recently, relating to the
the Territory.
bargaining agreements and, most Australian Government’s emergency
recently, the Territory’s Indigenous response legislation for the Territory.
Generational Plan ‘Closing the Gap’.

Jennifer Prince
30 September 2007

 Annual Report 2006-07


Corporate Statement

Our Purpose Our Values Our Stakeholders


To promote sustainable fiscal strength Treasury’s values are underpinned by Treasury services are delivered to:
and economic development of the trust, integrity and professionalism.
• the Treasurer, Cabinet and
Northern Territory, and contribute to
• We are committed to providing Government agencies as part of
improved social and fiscal wellbeing
frank, accurate and timely strategic Treasury’s whole of government and
for Territorians.
advice. central agency responsibilities;
Our Strategic Objectives • Treasury staff take responsibility for • the Territory community, business
Treasury strives to provide: their work and behaviour and act groups and commentators
in a collaborative way with integrity, through Treasury publications and
• quality analysis and public policy respect and fairness. commentary;
advice on economic, fiscal, social
• We recognise the dedication and • the Legislative Assembly and
and commercial issues;
expertise of our staff and support the Auditor-General as part
• best practice financial management; them in balancing professional and of Treasury’s statutory and
• effective intergovernmental financial personal priorities. administrative responsibilities; and
relations;
Governance Principles • Treasury staff by providing a safe,
• a fair and efficient Territory tax professionally challenging and
We endeavour to consider each of
system; and supportive organisation.
these principles or criteria when
• appropriate superannuation
making decisions and taking action
arrangements for the Territory
on a day-to-day basis. The principles Figure 1 on page 8 illustrates how
public sector.
reflect Treasury’s values. Treasury is organised to meet the
Through a well-managed and flexible five strategic objectives and how this
• Accountability: Treasury and its
organisation, we: is represented in Budget Papers in
employees take responsibility for
• recruit and retain high quality staff their decisions and actions. terms of budget outputs.
and provide professional training,
• Transparency: decisions, actions
development and encouragement;
and advice are open to and can
• maintain our commitment to high withstand scrutiny, necessary to
quality output; and ensure that stakeholders can have
• ensure a safe, supportive workplace confidence in Treasury’s decision-
that recognises diversity and making processes.
respects every staff member. • Leadership: modelling and fostering
behaviour that supports Treasury
values, inspires and influences
others and shapes organisational
culture.
• Integrity: actively promote honesty
and ethical conduct, by upholding
appropriate standards of behaviour.
• Equity: fairness and equity in
decision making that is also free
from bias

Overview 
Figure 1: Our Purpose and Outputs

Our Purpose
To promote sustainable fiscal strength
and economic development of the
Northern Territory, and contribute to
improved social and fiscal wellbeing
for Territorians.

Strategic Objectives Business Units Budget Outputs


Public Policy Advice • Economic Policy and Frameworks • Economic
Quality analysis and public policy • Economic and Social Analysis • Economic
advice on economic, fiscal, social and • Commercial • Commercial
commercial issues
• Financial Management • Financial Management
• Territory Revenue Office • Territory Revenue
• Superannuation Office • Superannuation

Financial Management • Financial Management • Financial Management


Best practice financial management • Treasury Corporation • Treasury Corporation

Intergovernmental Relations
Effective intergovernmental financial • Public Finance • Economic
relations

Revenue Management
• Territory Revenue Office • Territory Revenue
A fair and efficient Territory tax system

Superannuation
Appropriate public sector • Superannuation Office • Superannuation
superannuation arrangements

Enable Treasury to achieve its


objectives through a well-managed, • Treasury Services Group • All output groups
flexible organisation

 Annual Report 2006-07


Summary of Results in 2006-07

Performance Reporting Page

• Significant contributions to developing the Council of Australian Governments’ National Reform Agenda 13
• Amended the Motor Accidents (Compensation) Act to reform the motor accident compensation scheme 14
• Commercial advice in relation to energy supply and performance of government owned corporations and 14
commercial entities
• Significant involvement in developing the Power and Water Corporation 2007-08 Statement of Corporate Intent 14
• Successful development and presentation of the 2007-08 Budget 17
• Implemented refinancing and new borrowing program, with $338 million borrowed in 2006-07 18
• Published the Indigenous Expenditure Review, an analysis of the proportion of Territory Government revenue 21
and expenditure which is Indigenous-related
• Implemented national tax reform initiatives, including the removal of stamp duty on hiring arrangements 23
• Progressed legislation for a new Taxation Administration Act 24
• Implemented a public sector death and invalidity scheme, and member investment choice and allocated 26
pensions for NTGPASS members
• Implemented changes for Territory public sector superannuation arrangements in order to conform with new 26
national requirements

Managing the Organisation


• Senior Management Group and six corporate governance committees led the organisation 39
• Implemented the 2006-07 internal audit program 43
• Major review undertaken of security and management of Treasury information and changes implemented 47
• Treasury’s energy management targets were well exceeded with further reductions in energy consumption and 50
greenhouse gas emissions
• Manager’s Toolkit developed to assist middle and senior level managers 57
• A record number of graduates, apprentices and cadets in 2006-07 62

Overview 
Our Focus in 2007-08

In 2007-08, in addition to managing its ongoing responsibilities, Treasury will


commence, or continue with, the following key projects and initiatives.

Priorities for Achieving Our Strategic Objectives


• Oversee the implementation of major economic reform measures including
National Reform Agenda and electricity market related initiatives.
• Finalise the review of the Territory Insurance Office Act for relevance of
current functions of the office and its operational environment.
• Continue to enhance economic and demographic modelling capabilities.
• Develop and publish the 2006-07 Treasurer’s Annual Financial Report, the
2007‑08 Mid-Year Report and the 2008-09 Budget.
• Update the Indigenous Expenditure Review to include 2006-07 data and
implement procedures to allow for annual updating of results.
• Undertake discussions with, and prepare submissions to, the Commonwealth
Grants Commission as part of the 2010 Major Review of Relativities, for the
distribution of GST revenue from the Australian Government.
• Implement the new Taxation Administration Act.
• Implement legislation to achieve agreed national payroll tax consistency.
• Implement new legislation for the Northern Territory Death and Invalidity
Scheme and enhanced superannuation products.
• Implement the allocated pensions product early in 2008.

Priorities for Managing the Organisation


• Continued emphasis on professional and management development, and
on entry-level employment programs, from apprenticeships through to the
graduate program.
• A range of corporate governance activities including finalising the 2007-08
Risk Register, implementing the internal audit plan and providing further staff
training to maintain ethical standards.
• Continued upgrading of systems and processes to ensure a high level of
information management security.

10 Annual Report 2006-07


Performance Reporting
Reporting Preface 12
Objectives
1. Public Policy Advice 13
2. Financial Management 17
3. Intergovernmental Relations 21
4. Revenue Management 23
5. Superannuation 26
Output Performance Tables 28
Reporting Preface

Treasury’s performance as an organisation is measured in terms of its five


strategic objectives, in pursuit of promoting sustainable fiscal strength and
economic development of the Northern Territory, and contribute to improved
social and fiscal wellbeing for Territorians.

1. Quality analysis and public policy advice on economic, fiscal, social and
commercial issues.

2. Best practice financial management.

3. Effective intergovernmental financial relations.

4. Management of a fair and efficient Territory tax system.

5. Appropriate public sector superannuation arrangements.

This section reports on Treasury’s performance in delivering outputs to


meet these strategic objectives. Details are provided on key projects and
achievements during the year, with performance recorded for the priorities
identified in last year’s annual report.

Performance against the measures published in Budget Paper No. 3 is reported


in the output performance tables. In almost all cases, measures were met or
exceeded. Where performance did not meet the estimate, an explanation is
provided.

Performance reporting for the Utilities Commission is included in Treasury’s


output performance tables, as performance measures are published in Budget
Paper No. 3 as part of Treasury. Performance against Northern Territory Treasury
Corporation’s business line measures is also included in this section. These two
statutory offices form part of Treasury for administrative purposes, however full
details of achievements in 2006-07 are reported in their own annual reports.

In November 2006, responsibility for racing, gaming and licensing was


transferred from Treasury to the Department of Justice. Performance reporting
on racing, gaming and licensing functions for 2006-07 is included in the
Department of Justice Annual Report.

12 Annual Report 2006-07


Objective 1:
Public Policy Advice

Strategic Objective
Quality analysis and public policy advice on economic, fiscal, social and
commercial issues.

Outputs Delivered
Analysis and policy advice on:
• national and Territory economic, social, demographic policy and statistical
issues including development and oversight of economic reforms and
frameworks;
• management of the Territory’s commercial activities and associated risks;
• whole of government resource allocation including financial management
frameworks, fiscal policy and fiscal strategy;
• Territory revenue and tax-related subsidies framework; and
• Territory Government superannuation arrangements.

Key Projects Analysis from 2006 The first results from the 2006
Population Census Census were released in June 2007
National Reform Agenda Conducting the Australian Population with further, more detailed releases
Treasury was an active participant expected over the next 12 months.
Census in the Territory is far more
in intergovernmental working groups
difficult than elsewhere because of The Territory’s estimated resident
established to advance the National
the transient nature of the population population was increased by 4000
Reform Agenda (NRA) of the Council
and the high proportion of Indigenous following incorporation of the Census
of Australian Governments (CoAG).
people, many of whom live in remote data.
Treasury represented the Territory
areas.
on working groups examining three Treasury is now working with ABS on
streams of NRA reform initiatives In 2005-06, Treasury worked closely a number of collaborative projects
– human capital, competition and with the Australian Bureau of Statistics including analysis of data quality,
regulatory reform. (ABS) on a range of strategies to housing and mobility. Discussions
support the ABS in conducting the have commenced on improvements
The NRA aims to increase the
2006 Census in the Territory. The for the 2011 Census.
efficiency of the Australian economy,
Territory’s support was considered
reduce the compliance burden
essential, given the data collected
of Government regulation on
through the Census is used by the
business, and increase labour force
Australian Government to determine
participation and productivity by
improving national health, education
the distribution of untied GST revenue General Public Policy
to the states and territories and for tied
and training standards. In April All Treasury’s functions involve
spending on programs such as those
2007, CoAG approved plans for providing public policy advice. In
for schools, housing and health.
implementing agreed NRA reforms, addition to the key projects presented
which have now commenced. Other under this objective, public policy advice
reforms are still being developed. is also provided under each of the other
strategic objectives outlined in the
Performance Reporting section.

Performance Reporting 13
Reform of Motor Accidents Energy Supply • managed an expert review of Power
(Compensation) Act Treasury has been a key specialist and Water’s financial systems; and
The Motor Accidents (Compensation) participant in all aspects of the • on behalf of the Treasurer,
Act (MACA) defines the statutory ongoing and future supply of gas to negotiated with Power and Water on
benefits available to people injured, the Territory, especially in relation to its 2007-08 Statement of Corporate
or the dependants of people killed, development of gas as an energy Intent (SCI). The SCI sets a new
in motor vehicle accidents in the source for electricity generation. This standard as informative, robust and
Territory. The Treasurer approved a includes assisting in the resolution transparent. It covers Power and
major review of the structure of MACA of matters relating to the existing Water’s operations, and its capital
benefits in April 2005. In response to long‑term contracts for supply of and maintenance programs for the
the findings of the review, legislative gas from the Amadeus Basin and next five years in detail, and also
amendments were drafted and the participating in negotiations with points to expectations for a further
public consulted in November 2006. current and prospective suppliers of 15 years.
Following consultation, which involved gas and with pipeline companies.
Whole of Government Policy
soliciting input by key stakeholders,
amendments were introduced during
Commercial Issues Issues
Undertaking commercial analysis In its central agency role, Treasury
the February 2007 sittings of the
is one of the important tasks that provides advice and assistance to
Legislative Assembly. The new MACA
Treasury performs, particularly on the other agencies on a range of whole of
benefit structure commenced on
delivery of a number of Government government issues including:
1 July 2007.
projects in 2006-07. These included • comments on all Cabinet
Review of Electricity commercial issues for Darwin Port, submissions;
Supply Industry Regulatory assessment of proposals to establish
• the financial aspects of public
Framework a tropical resort at Little Mindil
sector wages policy with particular
The current electricity regulatory and the new licence agreement to
emphasis on strategic aspects of
framework has been in place for support the ongoing operation of the
enterprise bargaining agreements;
over five years. A review to assess its SkyCity Casino in Darwin. Treasury
• information technology, including
effectiveness and to consider options provided advice on the commercial,
strategic directions and contract
for reform has been under way since financial and corporate governance
evaluations;
2006. CoAG requested the Territory perspectives.
• procurement policy and practices;
Government examine the merits of
Government Owned • regulatory review of competition
adopting the national regulatory
Corporation and business impacts for all new
framework for electricity, as part
The Power and Water Corporation and amending legislation, pursuant
of broader national energy market
continued to be the Territory’s only to the National Reform Agenda; and
reforms approved in April 2007.
government owned corporation (GOC)
Treasury is currently coordinating this • investment advice, such as for
in 2006-07. As part of managing the
work, in consultation with national and the Public Trustee and the Agents
GOC framework, Treasury:
Territory regulatory bodies, Power Licensing Fidelity Fund.
and Water Corporation and other • advised the shareholding Minister Appendix 5 details the whole of
stakeholders. on Power and Water’s financial and government boards and committees
non-financial performance and other on which Treasury is represented.
GOC-related matters;

14 Annual Report 2006-07


Treasury and NTG/CDU Partnership Agreement
Four years into the Territory Government’s Partnership Agreement with Charles Darwin University (CDU), Treasury has a very productive
engagement with the university. The focus has been predominantly, but by no means exclusively, in the areas of economics and
demography including:
• a three year research study into the mobility of the Territory’s people, in partnership with CDU and the Australian Bureau of Statistics
– attracting a competitive Australian Research Council grant of $0.4 million;
• a range of research projects on the demography of the Territory population through a $0.6 million research grant over three years from
Treasury;
• contracted services of Professor Tony Barnes, a Professorial Research Fellow, to strengthen the economic, social and demographic
analysis capacity of Treasury;
• scholarships and paid work experience to encourage enrolments in economics studies (see the Treasury People section of this report);
• formal adjunct academic status with CDU for four Treasury staff (Dr Sarah Rummery, Ms Jenny Coccetti, Ms Mary Beneforti and
Mr  Phillip Eatwell) to undertake teaching, research and other collaborative activities;
• a $50 000 contribution to an Associate Professorship in Economics at CDU; and
• delivery of Graduate Certificate in Public Governance to recent Treasury graduate trainees, including accrediting major elements of
Treasury’s graduate development program towards the degree.
It is anticipated similar arrangements will continue for the foreseeable future.
In addition, Dr Ram Vemuri was appointed as an independent commissioner to determine annual contribution amounts to be paid by
motorists under the Territory’s Motor Accidents Compensation Scheme.

Output Performance
Priorities for 2006-07 Results in 2006-07

Oversight of significant micro-economic Achieved – Treasury represented the Territory in relevant intergovernmental
reform initiatives. working groups charged with developing reform measures and
implementation plans under the CoAG National Reform Agenda.
Implementation of reforms for the Motor Achieved – New motor accident compensation benefits commenced on
Accidents (Compensation) Act. 1 July 2007.
Review of financial reporting processes Achieved – New frameworks for reporting processes for GOCs aligned
for government owned corporations and with internal GOC reporting requirements.
refinement of financial reporting processes
for government owned businesses.
Enhancements to current processes for Achieved – Position papers on specific issues developed and used during
analysis of financial aspects of gaming negotiations, including the Darwin casino licence agreement.
licence applications.
Continued oversight of the Territory’s Achieved – Review to assess effectiveness of existing regulatory
electricity supply industry regulatory regime and to assess options for reform completed. Review to assess
framework. effectiveness of adopting national law and rules for the Territory electricity
market under way.

Performance Reporting 15
Output Performance (continued)
Priorities for 2006-07 Results in 2006-07
Monitor and report on key economic Achieved – Economic Briefings and the Territory Economic Review
indicators and industries. published regularly.
Monitor and disseminate reports on key Ongoing – Disseminated analysis of social and economic conditions to
social issues. assist policy development.
Review of the Territory Insurance Office Act In progress – Review commenced and scheduled to be completed by
for relevance of current functions of the office December 2007, with implementation to follow.
and its operational environment.
Enhance forecasting and economic and In progress – Working with ABS to assess impacts of new Gross State
demographic modelling capacities. Product measure to be released in November 2007.
In progress – Continuing to work in collaboration with Charles Darwin
University (CDU) to develop Territory population projection models.
Improve understanding of factors influencing In progress – Surveys and fieldwork completed as part of a research
population mobility and regional population project with ABS and CDU.
growth.
Implement an inventory of economic and In progress – Specifications set and a database developed, with pilot
social data sources. testing commenced.
Investigate and analyse 2006 Census data In progress – A number of Census analysis projects are under way, with
and data quality. early results expected in first half of 2008.
Assist in organising the 2008 biennial In progress – Planning for the conference, to be held 1-4 July 2008, is well
conference of the Australian Population advanced.
Association, as a major sponsor.

Future Priorities
• Oversight of the implementation of major economic reform measures including
CoAG National Reform Agenda and electricity market related initiatives.
• Finalise the review of the Territory Insurance Office Act for relevance of
current functions of the office and its operational environment.
• Continue to enhance forecasting and economic and demographic modelling
capacities.
• Through the Statistical Liaison Committee, finalise an inventory of economic
and social data sources.
• Continue to improve understanding of factors influencing population mobility
and regional population growth.
• Enhance financial analysis and financial modelling capacities.

16 Annual Report 2006-07


Objective 2:
Financial Management

Strategic Objective
Best practice financial management.

Outputs Delivered
Analysis on whole of government resource allocation and reporting of the
Territory’s financial resources through:

• whole of government budgeting and financial reporting;


• monitoring agency financial and output performance, including analysis of
agency budget proposals;
• reporting and analysis of infrastructure budget requirements and coordination
of the Infrastructure Program for Government; and
• management of financial accountabilities as prescribed in the Financial
Management Act.
Prudent management of the Government’s loans, borrowings and investment
program.1

1. Further details on achievements relating to loans, borrowing and investment programs can
be found in the Northern Territory Treasury Corporation 2006-07 Annual Report.

Key Projects Treasurer’s Annual Financial 2006-07 Mid-Year Report


Report 2005-06 The Fiscal Integrity and Transparency
2007-08 Budget The Treasurer’s Annual Financial Act requires the release of a mid‑year
Developing the Northern Territory’s fiscal outlook report each year.
Report 2005-06, which was finalised
Budget is one of Treasury’s primary The 2006-07 Mid-Year Report was
in September 2006 and tabled in the
roles and a major annual activity. tabled in the Legislative Assembly in
Legislative Assembly in October 2006,
The 2007-08 Budget was tabled in November 2006, updating Budget
provides a full set of financial
Parliament in May 2007, following projections from the May 2006
statements on a sectoral and whole
intensive work and effort by a range Budget by incorporating Government
of government basis, along with
of Treasury staff, in collaboration with decisions and revised Australian
additional explanatory notes covering
agencies. Various processes were Government revenue and Territory
the transition to International Financial
enhanced, resulting in improved taxation revenue estimates. The
Reporting Standards. The Report
timeliness and quality of financial Report also provides revised financial
was issued with an unqualified audit
and policy advice to Government, statements on a sectoral and whole
opinion against the Government
fostering better working relationships of government basis, discussion on
Finance Statistics (GFS) standard,
with agencies. Budget Papers updated economic estimates and the
the Territory’s adopted reporting
focused on significant issues for fiscal strategy outlook for 2006-07 and
format which aligns with the Uniform
the Territory, including analysis of three forward years.
Presentation Framework as adopted
the Territory’s demographic change
by all Australian jurisdictions.
and its implications for the future,
and a summary of the Indigenous
Expenditure Review methodology and
results.

Performance Reporting 17
Harmonisation of Whole of Corporate Services Review Borrowing Program
Government Reporting Treasury provided advice and As the Territory Government’s
A project is under way to assure the analysis, as a member of the central financing authority, Treasury
Territory Government’s compliance Corporate Services Review Steering Corporation implemented the
with the proposed new Australian Group. The review reported on shared Government’s 2006-07 borrowing
Accounting Standard on whole of services arrangements operating program. The requirement was
government financial reporting. for the Territory Government and lower than in recent years, with
The new reporting format aims to recommended process and system approximately $338 million raised to
harmonise the GFS model, currently changes to generate efficiencies and refinance maturing debt, compared
used by the Territory, with Australian improve services to agencies. with $593 million raised in 2005-06
Accounting Standards. All Australian and $373 million in 2004-05. The
jurisdictions have agreed to adopt the
Whole of Government smaller program reflected a lower
new harmonised reporting standard, Staffing refinancing requirement in 2006-07.
to take effect for the 2008‑09 Budget The Office of the Commissioner for
The entire borrowing requirement was
and final outcome reports. Changes Public Employment and Treasury
met from domestic financial and retail
are also expected to the Uniform continued to provide Government
markets. The bulk of funds was raised
Presentation Framework to allow for with advice on whole of government
through a number of medium and
alignment with the new harmonised staffing statistics, with particular
long dated fixed interest securities,
standard. emphasis on the budgetary
issued to institutional investors via
implications of staffing movements.
private placement and public issues.
Financial Management Policy
Development Conditions of Service Treasury Corporation’s retail funding
Treasury is responsible for Reserve source continues to provide a
administering the Territory’s financial The Conditions of Service notable proportion of overall funding
management framework, including Reserve (COSR) is managed by requirements, with almost 27 per cent
the Financial Management Act, the Treasury Corporation on behalf of the borrowing program met from
Fiscal Integrity and Transparency Act of the Central Holding Authority. Territory Bonds and migration-linked
and the Treasurer’s Directions. As part The funds are managed by three investors.
of ongoing review of the framework, investment managers: AMP Capital
agency budget management Investors Limited, Colonial First
and infrastructure principles State Investments Limited and MLC
have been identified as key areas Implemented Consulting. The COSR
requiring enhancement. In 2006-07, fund has a long-term investment
preliminary work began to expand strategy orientated towards growth
Treasurer’s Directions to improve assets, such as property and shares,
guidance for agencies on resource and is benchmarked against the
and infrastructure management, InTech Investor Choice Performance
performance and governance Growth Survey.
practices. Over the year, the COSR fund earned
an overall return of 16.7 per cent,
1.4 percentage points above the
benchmark. Over a three year period,
the fund has generated an average
annual return of 18.0 per cent,
3.7 percentage points above its
benchmark.

18 Annual Report 2006-07


Output Performance
Priorities for 2006-07 Results in 2006-07
Continued focus on major projects including development Achieved
and publication of whole of government financial • Treasurer’s Annual Financial Report 2005-06 released
information including the Budget, Treasurer’s Annual October 2006
Financial Report and the Mid-Year Report. • 2006-07 Mid-Year Report released November 2006
• Treasurer’s Quarterly Financial Report released
November 2006, February 2007 and May 2007
• 2007-08 Budget Papers released 1 May 2007
Continue development and amendment of Treasurer’s Ongoing – Expansion of new Treasurer’s Directions has
Directions and financial management principles. begun, with a focus on improving guidance to agencies on
financial management and performance practices.
Assess the effect of proposed new public sector In progress – Awaiting the release of new harmonisation
reporting arrangements on Territory financial reports. standards by the Australian Accounting Standards Board.
In conjunction with the Department of Planning and In progress – The joint project with the Department of
Infrastructure, continue the review of the Works Planning and Infrastructure will continue in 2007-08 with
Programming Procedures to update guidance for updated works programming principles to be included as
agencies on Infrastructure Program matters. part of the Treasurer’s Directions.
Ongoing review of Financial Management Act In progress – Review has identified priority areas of agency
accountability processes and enhancements to budget management and infrastructure for continued
supporting information management systems and policy and systems refinement in 2007-08.
processes. In progress – New vehicle gift and loan processes
implemented. A revised approach to considering and
managing government financial interests is being
introduced, including streamlining the process for
approving contingent liabilities.
Treasury Corporation will continue to develop its In progress – Business continuity plan developed. To be
business continuity planning and corporate governance integrated with Treasury plan.
framework.
Borrowed $338 million to meet Government funding Achieved – Lower refinancing rates achieved compared to
requirements. budget forecast.

Performance Reporting 19
Future Priorities
• Continued focus on monitoring, development and publication of critical whole
of government financial information in the Budget, Treasurer’s Annual Financial
Report and the Mid-Year Report.
• Ongoing development and amendment to Treasurer’s Directions, with
improvement of the agency budget management and infrastructure sections
as priorities for 2007-08.
• Assessment of the new Australian Accounting Standard on harmonisation of
whole of government reporting. This will encompass a staged implementation
of the new reporting format for both budget and outcome reporting.
• Evaluate opportunities for system modules enhancement to the whole of
government Apex budget and reporting system.
• Continue to review Financial Management Act accountability processes and
supporting information management systems.
• Implement the Government’s 2007-08 borrowing program.
• Continue to develop Treasury Corporation’s business continuity planning and
corporate governance framework.

20 Annual Report 2006-07


Objective 3:
Intergovernmental Relations

Strategic Objective
Effective intergovernmental financial relations.

Outputs Delivered
Analysis and policy advice to Government on public finance issues including
management of the Territory’s participation in major intergovernmental financial
arrangements and other public finance matters.

Key Projects Indigenous Expenditure Specific Purpose Payment


Review Revenues
Commonwealth Grants Treasury published a detailed Treasury represented the Territory
Commission – 2010 Review review of the proportions of Territory on the Heads of Treasuries Specific
The Commonwealth Grants Government revenue and expenditure Purpose Payments Working Group.
Commission (CGC) is undertaking which are Indigenous-related. The This involved the preparation of a
work on the next major review of purpose of the review was to provide report to the Australian Government
state revenue sharing relativities to an objective analysis of the surplus on options for restructuring the
be completed by 2010. The review or deficit in the Territory’s Indigenous- Commonwealth-State Housing
will examine all aspects of the CGC’s related expenditure when compared Agreement on behalf of the states.
approach, including the application to the funding the Territory receives
of the principle of horizontal fiscal Advice was also provided to
as a result of indigeneity. The review,
equalisation and methods by which Government and agencies in relation
published in September 2006, was
the calculation of relativities can be to a range of intergovernmental
conducted in consultation with all
simplified. agreements including Indigenous
Territory Government agencies.
housing, Commonwealth-State and
The Territory, represented by Treasury, The results and methodology are
Territory Disability Agreement, Natural
participated in a number of working summarised in the Territory’s 2007-08
Resource Management programs and
groups considering issues related to Budget Papers. The review is to be
the Australian Health Care Agreement.
assessment structure, simplification updated annually from 2007-08.
of methodology and reliability of data Goods and Services Tax
and methods as part of the 2010
Council of Australian Treasury continued to monitor
Review. Governments Working changes in the underlying parameters
Groups that determine the Territory’s GST
Treasury made submissions on the
Treasury represented the Territory on revenue. GST revenue parameters
Disaggregation of Revenue and
two working groups on Indigenous include population, national GST cash
Expenses, Socio-Demographic
Generational Reform and Local collections and CGC relativities.
Composition and Location factors,
Government. Treasury’s input to
and on Assessment Structure and Treasury also provided advice to
the groups focused on enhancing
Approaches, and provided data for Government on a range of GST-
Indigenous outcomes and providing
the CGC 2007 Update. related legislative proposals through
advice on the nature of, and trends
the year in order to protect the GST
in, revenue and expenditure of local
base and therefore the Territory’s main
government.
source of revenue.

Performance Reporting 21
Output Performance
Priorities for 2006-07 Results in 2006-07
Review of Territory Government’s expenditure and Achieved – Published Indigenous Expenditure Review in
revenue related to the Indigenous population. September 2006. Summary of results included in 2007-08
Budget Papers.
Preparation of submissions to the CGC. Ongoing – Submissions in 2006-07 included those related
to the Disaggregation of Revenue and Expenses, Socio-
Demographic Composition and Location factors, and
Assessment Structure and Approaches.
Ongoing review of the Territory’s General Purpose Ongoing – Major review completed for the CGC 2007 Update.
Classifications to assist with CGC assessment of
relativities.
Develop a framework for negotiation of a range of Ongoing – Treasury has worked with the Department of
health specific purpose payments. Health and Community Services to assist in developing the
negotiation framework.

Future Priorities
• Preparation of submissions to, and undertaking workplace discussions with,
the CGC as part of the 2010 Review.
• Updating the Indigenous Expenditure Review to include 2006-07 data and
implementing procedures to allow for annual updating of the results.

22 Annual Report 2006-07


Objective 4:
Revenue Management

Strategic Objective
Management of a fair and efficient Territory tax system.

Outputs Delivered
Management of the Territory’s revenue and tax-related subsidies framework,
encompassing:

• analysis and policy advice;


• administration systems;
• compliance activities; and
• community awareness and advisory services.

Key Projects • abolition of stamp duty on the National Payroll Tax


grant of a lease for nil or nominal Consistency Project
Budget Revenue Measures consideration and on all types of In March 2007, state and territory
Revenue measures announced in the guarantees; treasurers agreed to a national
2007-08 Budget were developed and • clarification of the stamp duty overhaul of payroll tax arrangements.
implemented. These included: valuation provisions; and The states and territories will adopt
• the continued implementation of the • changes to the Territory’s land common provisions and definitions
Territory Government’s response to holder stamp duty provisions. for the timing of lodgments, motor
National Tax Reform, as detailed in vehicle allowances, accommodation
Further details on these revenue
the Intergovernmental Agreement on allowances, a range of fringe
measures can be found in Appendix 7:
the Reform of Commonwealth-State benefits, payroll tax imposed on work
Legislative Changes 2006-07.
Financial Relations, by abolishing performed outside a jurisdiction,
stamp duty on hiring arrangements; employee share acquisition schemes,
• changes to the Territory’s home superannuation contributions for
buyer incentive schemes, such as non‑working directors and the
increasing the stamp duty first home grouping of businesses.
owner concession from the first
Although provisions and definitions
$225 000 of a property’s value (a
are to be harmonised, states and
concession of up to $8 015) to the
territories will continue to determine
first $350 000 of a property’s value
rates and thresholds applicable in
(a concession of up to $15 312);
their jurisdictions.

These measures are currently being


developed. It is proposed that the
legislation will be implemented during
2007-08 to commence on 1 July 2008.

Performance Reporting 23
Proposed New Taxation Internet-based Payroll Tax It also provides the Territory Revenue
Administration Arrangements Return System Office with a new payroll tax
Further extensive consultation on During 2006-07, an electronic administration system. Over half the
a draft proposed new Taxation payroll tax payment and returns employers in the Territory’s payroll tax
Administration Act occurred during system, known as Territory Revenue base have registered to use TRMeR.
2006-07. The proposed Taxation Management electronic Returns From a survey of these taxpayers,
Administration Act and legislation (TRMeR), was fully implemented. The 80 per cent of respondents found
for consequential amendments is new system provides: TRMeR easy to use. Enhancements
being introduced into the Parliament, to the system were designed and
• online calculation and easy developed during 2006‑07 and these
with implementation on track for
lodgement of monthly and annual will be implemented in 2007‑08.
1 January 2008.
payroll tax returns; As a result, businesses will benefit
• the option of online electronic from lower compliance costs and
payment of payroll tax; streamlined administration.
• industry standard security and a
secure payment gateway;
• online calculation and lodgement of
payroll tax annual reconciliations;
and
• the ability to view lodgement and
payment history.

24 Annual Report 2006-07


Output Performance
Priorities for 2006-07 Results in 2006-07
Finalise legislation for a new Taxation Administration In progress – Following further extensive consultation, the
Act. legislation was introduced into the Legislative Assembly in
August 2007. To be implemented during 2007-08.
Implement the Territory’s response to the list of Achieved – Stamp duty on hiring arrangements was
taxes for review, as detailed in the Intergovernmental abolished from 1 July 2007. The final agreed change,
Agreement on the Reform of Commonwealth-State abolishing stamp duty on business property, excluding
Financial Relations. land, is scheduled for 2009.
Further develop and enhance revenue management Achieved – Enhancements to TRMeR substantially
systems and related information technology, including developed during the year.
the implementation of an internet-based payroll tax
return and payment system.
Enhance and implement communication strategies to Achieved – Nine new and revised Commissioner’s
increase taxpayer and subsidy recipient knowledge of Guidelines and Circulars were issued during the year.
the Territory’s tax system and tax-related grants and This information assists taxation practitioners, taxpayers
subsidies. and grant and subsidy recipients in their dealings with the
Territory Revenue Office.

Future Priorities
• Implement the new Taxation Administration Act.
• Implement legislation to achieve national payroll tax consistency as part of an
agreement between all jurisdictions to lower compliance costs for businesses.
• Continue to develop and enhance revenue management systems and related
information technology, including a new stamp duty administration system and
an internet-based stamp duty lodgement and payment system.
• Continue to enhance and implement communication strategies to increase
taxpayer and subsidy recipient knowledge of the Territory’s tax system and
tax-related grants and subsidies.

Performance Reporting 25
Objective 5:
Superannuation

Strategic Objective
Appropriate public sector superannuation arrangements.

Outputs Delivered
Superannuation policy for Government and administration of the Government’s
superannuation schemes, including the relationship between national and
Territory legislation, and advice and assistance to investment and review boards.

Key Projects Actuarial Reviews Actuary Panel


The rolling program of three-yearly During 2006-07, the arrangements
Northern Territory Death and reviews of the Territory Government’s for engaging actuaries were reviewed
Invalidity Scheme superannuation schemes continued, and a new panel of actuaries was
The 2004-2007 Enterprise Bargaining with reviews of the Police established. The panel will mainly
Agreement (EBA) included a Supplementary Benefit Scheme and provide superannuation-related
commitment to provide a death and the Commonwealth Super Scheme actuarial advice, but will also be used
invalidity scheme for Northern Territory (CSS) completed in 2006-07. In the for workers compensation, insurance
Public Sector employees engaged CSS review, the actuary recognised and other matters across Government.
after 9 August 1999 in choice of that a further 200 members had The panel comprises:
fund superannuation arrangements. been identified as the Territory’s
• Bendzulla Actuarial Pty Ltd;
The scheme has been implemented, responsibility. This increased the
with formal commencement from • Cumpston Sarjeant Pty Ltd; and
Territory’s liability by $265 million and
1 July 2007. Eligible employees who the Budget and forward estimates • PricewaterhouseCoopers Securities
became totally and permanently were adjusted accordingly. Also, the Ltd.
incapacitated or died before Government set aside $150 million in
Member Investment Choice
1 July 2007 have been covered under the Conditions of Service Reserve to
The EBA included the introduction
transitional arrangements. ameliorate the future budget effects of
of member investment choice for
the liability.
Australian Government Better Northern Territory Government and
Super Reforms Public Authorities’ Superannuation
LAMS Investment
Scheme (NTGPASS) members.
Legislation to implement the Australian Management
Government Better Super reforms, It allows NTGPASS members the
Following the successful move to
designed to simplify superannuation choice of five investment options,
using an implemented investment
and associated taxation, was passed ranging from a conservative
consultant to manage the NTGPASS
in February 2007, with the majority (low risk) option to an aggressive
fund, the Legislative Assembly
of changes coming into effect from (high risk) option. Member investment
Members’ Superannuation Trust
1 July 2007. The Northern Territory choice development and testing
also transitioned to implemented
Superannuation Office implemented was completed in 2006-07, with
consultant funds management
the necessary changes for the implementation from 1 July 2007.
during 2006-07. MLC Implemented
Territory’s public sector schemes. Consulting provides services to
the Trust.

26 Annual Report 2006-07


Output Performance
Priorities for 2006-07 Results in 2006-07
Development of processes and legislative amendments Achieved – Legislative amendments to formalise the
required to implement a death and invalidity scheme death and invalidity scheme drafted, with passage of
for employees in choice of fund superannuation legislation anticipated in early 2007‑08.
arrangements, as well as to implement member
Member investment choice commenced on
investment choice and an allocated pension.
1 July 2007. Education program completed in all
Conduct information seminars for NTGPASS members on regional centres.
member investment choice and allocated pensions.
Allocated pension product on schedule for early 2008
commencement.
Continue working with the Territory’s counsel to finalise the Ongoing – During the year, the Community and
NTGPASS court case. Public Sector Union (CPSU) expanded the scope of
the action. In November 2006, the Territory filed its
defence. In May 2007 the matter was considered by
the Court, which ordered limited discovery in relation
to the CPSU’s claim. The matter has been further
adjourned until November 2007.
Complete actuarial reviews of the Territory’s future Achieved – Actuarial reviews completed and future
liabilities for the Northern Territory Police Supplementary liabilities adjusted in the 2007-08 Budget and forward
Benefit Scheme and the Commonwealth Superannuation estimates.
Scheme.

Future Priorities
• Information seminars to educate NTGPASS members about allocated
pensions.
• Implement legislation for the Northern Territory Death and Invalidity Scheme
and new superannuation products.
• Continue working with the Territory’s counsel to finalise legal action by CPSU
on the closure of NTGPASS.
• Complete actuarial reviews of NTGPASS, Northern Territory Supplementary
Superannuation Scheme, Legislative Assembly Members’ Superannuation
Trust, Administrators Pensions Scheme and Supreme Court (Judges’
Pensions) Scheme.
• Continued system and administrative process changes to implement an
allocated pension for NTGPASS members, including member information
seminars.
• Work with the trustees of the Government’s superannuation schemes to
comply with the requirements of the Australian Government’s anti-money
laundering and counter terrorist legislation.

Performance Reporting 27
Output Performance Tables

The following tables report the performance measures achieved by output in


2006‑07 against those published in Budget Paper No. 3.

Table 1: Financial Management Output Performance


Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Facilitate the development and presentation of 2007-08 Budget number 1 1
Financial performance reporting – Treasurer’s Annual Financial Report, number 5 5
Mid‑Year Report, Treasurer’s Quarterly Financial Reports
Capacity to provide policy advice and analysis on:
– budget proposals and estimates $ million 4.10 3.56
– agency expenses and revenues $ million 1.76 1.53
– financial frameworks $ million 1.22 1.06
Quality
Acceptable audit opinion from Auditor-General for Annual Financial Report yes/no yes yes
Stakeholder satisfaction1
– fiscal policy advice survey rating ≥5 5
– key financial reports and publications survey rating ≥5 5
Timeliness
Timeframes met as agreed per cent >85 85
Budget published by date set by Treasurer yes/no yes yes
Treasurer’s Annual Financial Report published in accordance with legislation yes/no yes yes
Mid-Year Report published in accordance with legislation yes/no yes yes
Treasurer’s Quarterly Reports published in accordance with legislation yes/no yes yes
1. Stakeholders are the Treasurer and Government agencies. Satisfaction ratings are: 1: Extremely Dissatisfied, 2: Dissatisfied,
3:  Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.

28 Annual Report 2006-07


Table 2: Economic Output Performance
Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to provide policy advice and analysis on:
– micro-economic and regulatory framework issues $ million 2.24 2.54
– macro-economic, demographic, statistical and social issues $ million 2.66 2.05
– public finance issues $ million 1.27 1.13
Contribution to Australian Taxation Office for GST collection costs $ million 6.23 6.31
Community service obligation payment for uniform tariff subsidy $ million 52.86 52.85
Publish Northern Territory Economy number 1 1
Publish Territory Economic Review number 11 11
Quality
Stakeholder satisfaction1 with advice on:
– micro-economic and regulatory framework issues survey rating ≥5 5
– macro-economic, demographic, statistical and social issues survey rating ≥5 5
– public finance issues survey rating ≥5 5
Stakeholder satisfaction1 with economic publications survey rating ≥5 5
Timeliness
Timeframes met as agreed survey rating ≥5 5
Briefings on ABS economic data provided on day of release per cent 100 100
Economic publications published by agreed date per cent 100 100
1. Stakeholders are the Treasurer, relevant Government agencies and users of Treasury’s economic publications. Satisfaction ratings are:
1: Extremely Dissatisfied, 2: Dissatisfied, 3: Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.

Performance Reporting 29
Table 3: Commercial Output Performance
Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to provide policy advice and services on commercial dealings1 $ million 2.01 2.88
Information sessions on indemnities, guarantees and contingent liabilities number of 120 100
held for Government agencies participants
Quality
Stakeholder satisfaction2 with policy advice and services on commercial survey rating ≥5 5
dealings
Timeliness
Timeframes met as agreed survey rating ≥5 5
1. Alice Springs Convention Centre Performance Incentive Grant not included. 2006‑07 includes one-off costs associated with a review of Power
and Water’s financial systems.
2. Stakeholders include the Treasurer and Government agencies. Satisfaction ratings are: 1: Extremely Dissatisfied, 2: Dissatisfied,
3: Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.

Table 4: Superannuation Output Performance


Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to provide policy advice and services on superannuation $ million 3.71 3.53
Quality
Stakeholder satisfaction1 with policy advice and services on superannuation survey rating ≥5 5.4
Superannuation benefits paid accurately per cent 100 100
Timeliness
Timeframes met as agreed survey rating ≥5 5
Average days to make benefit payments 2
days 30 10
Average administration cost per superannuation scheme member $ 78 82
1. Stakeholders include the Treasurer, superannuation scheme members and associated boards. Satisfaction ratings are:
1: Extremely Dissatisfied, 2: Dissatisfied, 3:  Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.
2. The Australian superannuation industry standard is 30 days.

30 Annual Report 2006-07


Table 5: Territory Revenue Output Performance
Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Territory revenue collected1 $ million 498.6 508.3
Capacity to provide revenue management policy advice $ million 1.03 0.90
Capacity to collect Territory revenue $ million 5.24 5.15
Subsidy payments $ million 13.08 11.88
Subsidy administration $ million 0.33 0.32
Quality
Territory revenue forecast accuracy per cent ±5 2.0
Stakeholder satisfaction
– taxpayers2 per cent 85 86
– Treasurer3 survey rating ≥5 6
Assessment accuracy4 per cent ≥99 99.9
Accuracy of first home owner grant (FHOG) payments processed per cent >98 100
Timeliness
Revenue received within agreed timeframes per cent >95 96.6
Services completed within agreed service standards 5
per cent >95 99.7
1. Includes taxes, gambling revenue and mining royalties. Gambling revenue was previously recorded against the ‘Gambling, Liquor and Other
Regulation’ output, which has since transferred from Treasury to the Department of Justice. However, gambling revenue collection remains a
responsibility of Treasury, and is now reflected in this performance measure.
2. Taxpayer satisfaction is determined via an electronic and telephone survey to payroll taxpayers and professionals who had dealings with the
Territory Revenue Office in 2006-07. A total of 101 responses were received to the survey. The survey questions related directly to assessing
satisfaction with the services provided by the Territory Revenue Office with the following ratings: 1: Extremely Dissatisfied, 2: Dissatisfied,
3: Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied. The result above is based on responses indicating a
score of five or higher. This differs to last year’s ratings which used a scale of one to ten, with the result based on responses indicating a score
of six or higher. The change in methodology brings the Territory Revenue output into line with other Treasury output reporting.
3. Treasurer’s satisfaction is determined via survey with the following ratings: 1: Extremely Dissatisfied, 2: Dissatisfied, 3: Somewhat Dissatisfied,
4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.
4. The target is expressed as a ratio of allowed objections to total assessments.
5. The result for 2006-07 is the weighted average performance of a series of lower level measures, included in the Service Charter (see page 32)
being the proportion of stamp duty assessments assessed within five working days, the proportion of responses to written inquiries that
were provided within 14 days of receipt, the proportion of audits completed within the required timeframe and the proportion of objections
determined within 120 days.

Performance Reporting 31
Table 6: Standards Published in the Territory Revenue Office Service Charter
2006-07 2006-07
Estimate Actual
% %
Stamp duty assessing document turnaround (proportion assessed within five 90 90
working days)
Response to written inquiries within 14 days of receipt1 100 93
Audits completed within the required timeframe 80 80
Objections determined within 120 days 80 100
Proportion of approved FHOG payments made within 24 hours of payment eligibility date 95 100
Proportion of wholesaler fuel subsidy applications and other grant and subsidy 95 90
applications determined within five business days of receipt of all relevant information2
1. TRO has not been able to meet the published standard and room for improvement exists. TRO continues to explore processes that will assist in
delivering a service that meets the high standards set.
2. Staffing shortages and subsequent difficulties in recruiting during the months of May and June 2007 meant that this published standard
dropped below its usual level. However, the standard was met for all other months in 2006-07.

Table 7: Economic Regulation Output Performance


Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to administer regulatory regime $ million 0.49 0.44
Capacity to advise Regulatory Minister $ million 0.12 0.11
Quality
Stakeholder satisfaction1 survey rating ≥5 5
Timeliness
Determinations and approvals issued within statutory timeframes per cent 100 100
1. Stakeholder is the Regulatory Minister. Satisfaction ratings are: 1: Extremely Dissatisfied, 2:  Dissatisfied, 3: Somewhat Dissatisfied,
4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.

32 Annual Report 2006-07


Table 8: Northern Territory Treasury Corporation Business Line Performance
Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to provide borrowing services $ million 2.21 1.99
Weighted average cost of borrowings during the year per cent 6.15 6.13
Quality
Borrowing margin compared to industry peers per cent < 0.20 +0.10
variance
Investment portfolio return above benchmark1 per cent > indices +0.03
Volatility of investment portfolio return against benchmark1 per cent ±0.25 -0.03
Stakeholder satisfaction with borrowing service
2
survey rating ≥5 6
Timeliness
Quotes issued within three days3 per cent 100 100
Funding available within five days per cent 100 100
1. The benchmark is measured against weighted relevant UBS Warburg Indices.
2. Stakeholders are the Treasurer, government owned corporations and agencies. Satisfaction ratings are: 1: Extremely Dissatisfied,
2: Dissatisfied, 3: Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.
3. A quote is the response to a request for financial information relating to a loan by a government business division or a government
owned corporation.

Performance Reporting 33
Managing the Organisation:
Corporate Governance
Main Results 36
Management Environment 38
Governance Structure 39
Risk Management 42
Monitoring Risk 43
Other Corporate Governance Matters 46
Corporate Planning Process 46
Communication 46
Information Management 47
Corporate Social Responsibility 49
Future Priorities 52
Corporate Governance

What is corporate Main Results


governance? • Treasury’s corporate governance committees continued to meet regularly
and approve various organisational policies and procedures including
Corporate governance refers to
monitoring the Territory’s fiscal strategy, reviewing Treasury’s risk register,
Treasury’s internal controls, and
approving various policies such as flexible work arrangements, probation
decision-making and approval
procedure and equity and diversity framework, approving numerous study
processes that support the organisation
assistance applications, considering information technology (IT) services and
in achieving its desired objectives.
business systems across the agency and continued monitoring of Treasury’s
This could also be expressed as our
occupational health and safety (OH&S) arrangements.
‘self‑governing arrangements’.
• Treasury’s conflict of interest policy remained a priority, with the policy being
Corporate governance is the means by
reviewed during the year.
which Treasury directs and controls its
operations to enable the organisation • 11 audits and 2 reviews were completed during the year on Treasury
to achieve its objectives and meet its processes, procedures and financial reports, with no adverse findings.
responsibilities to its stakeholders. • Environmental management efforts resulted in a 38 per cent reduction in
It also ensures that decision making energy consumption and a 46 per cent reduction in paper use.
and operations are guided by a set • Staff support of community groups resulted in over $3000 being raised for
of principles that maintain ethical various community organisations.
standards.
This chapter describes and reports on Treasury’s corporate governance
arrangements, referring to the principles that guide decision making and the
structures in place to govern our organisation. Our arrangements are presented
in diagrammatic form on page 37.

Findings from audits and reviews conducted in 2006‑07 of Treasury operations


and systems are reported in this section, reflecting the important role of risk
management in corporate governance.

The final part of this chapter contains information on other corporate governance
issues. These matters endeavour to promote transparency in our internal
processes and report on our corporate social responsibility to the environment
and community.

36 Annual Report 2006-07


Figure 2: Treasury’s Corporate Governance Arrangements

Strategic Objectives
Values Treasury strives to provide:
Treasury’s values are underpinned by • quality analysis and public policy advice on economic,
trust, integrity and professionalism. fiscal, social and commercial issues;
We are committed to providing frank, • best practice financial management;
accurate and timely strategic advice. • effective intergovernmental financial relations;
Treasury staff take responsibility for • a fair and efficient Territory tax system; and
their work and behaviour and act in a
• appropriate superannuation arrangements for
collaborative way with integrity, respect
the Territory public sector.
and fairness.
Through a well-managed and flexible
We recognise the dedication and expertise
organisation, we:
of our staff and support them in balancing
• recruit and retain high quality staff; and
professional and personal priorities.
S • are committed to high quality output in a
Ob trate safe, supportive workplace.
es jec gic
Under Treasurer Valu tiv
es
Senior Management Group Directors
and subcommittees and staff
Organisational
Responsible for strategic structure
policy and operational
planning, direction, corporate Responsible for
governance arrangements, day-to-day operations,
corporate policies and producing outputs
procedures to achieve outcomes

Corporate Governance Principles

Corporate Governance Principles


We endeavour to consider each of these principles or criteria when making decisions and taking action on a day-to-day basis.
• Accountability: Treasury and its employees take responsibility for their decisions and actions.
• Transparency: decisions, actions and advice are open to and can withstand scrutiny, necessary to ensure that stakeholders
can have confidence in Treasury’s decision-making processes.
• Leadership: modelling and fostering behaviour that supports Treasury values, inspires and influences others and shapes
organisational culture.
• Integrity: actively promote honesty and ethical conduct, by upholding appropriate standards of behaviour.
• Equity: fairness and equity in decision making that is also free from bias.

Managing the Organisation: Corporate Governance 37


Management As shown in figure 2, which depicts The binding nature of the Code
Treasury’s governance structure, SMG of Conduct is explained to all
Environment is responsible for decision making new staff at induction programs
This section discusses the and policy setting, while managers and through Treasury’s Induction
management environment Treasury and staff through the organisational Manual. Treasury’s Performance
has developed to ensure it operates in structure are responsible for the Development Framework also clearly
the public interest. Our management day-to-day operations of Treasury articulates Treasury’s expectation
environment refers to the principles to produce outputs. Treasury’s that all staff demonstrate behaviours
and values that guide our operations values govern all our structures which support Treasury values.
and our people and the committees and decisions, describing the Specific Treasury policies have been
responsible for decision making. personal behaviours we expect developed to guide employees in
The broad principles by which staff to demonstrate at all times. ethical issues such as engaging in
Treasury operates are reflective of Treasury’s values direct our corporate outside employment, harassment in
Treasury’s values. These principles governance principles, which the workplace, addressing grievances
and values influence our operations describe how we expect management and recognising and managing
and decision making and shape our to go about making decisions conflicts of interest.
corporate and personal behaviours. A key strategy in maintaining
Corporate Values
Maintenance of our management ethical standards is training staff
Treasury’s values place expectations
environment is achieved through staff in anti-discrimination, harassment,
on how staff should behave, perform
training and awareness as explained Indigenous and cross-cultural
their duties and interact in the
in the corporate ethics section below. awareness. Treasury provides
workplace. These values, outlined
In this management environment in the Corporate Statement are these courses on an ongoing basis,
section, you will be introduced to the incorporated into Treasury’s core throughout the year, including
individuals who comprise Treasury’s competencies matrix and Performance refresher training. During 2006-07
Senior Management Group (SMG). Development Framework, both of anti-discrimination and cross-cultural
This group is responsible for making which are used to conduct regular awareness courses were held for staff.
decisions about Treasury’s operations staff performance reviews. Our values Treasury’s conflict of interest policy
and internal processes. Details are also articulate what stakeholders can was reviewed during 2006-07 with
provided on areas of responsibility, expect from the organisation and its a focus on streamlining internal
experience and qualifications, staff. processes for managing conflicts of
with achievements of the six SMG interest, and raising staff awareness
subcommittees reported. Corporate Ethics of their personal responsibilities
Treasury’s values are underpinned
in relation to conflicts of interest.
by the Northern Territory Public
In 2007-08, planned activity in this
Sector (NTPS) Principles and Code
area includes information sessions
of Conduct, which guide staff on a
for staff and managers and trialling
range of moral and ethical issues they
revised conflict of interest declaration
may face during their employment
processes.
in the NTPS. Agreement to abide by
the Code of Conduct is a condition
of employment and applies to all
employees.

38 Annual Report 2006-07


Governance Structure Treasury’s directors are responsible Senior Executives
for managing the day-to-day Peter Caldwell is the Deputy
The Under Treasurer, Jennifer Prince,
operations of business units and are Under Treasurer (Commercial and
sets Treasury’s direction in response
accountable to their respective SMG Economic). Peter has high level
to Territory Government priorities
members (see Organisation Chart at responsibilities for commercial and
and statutory responsibilities. She is
Appendix 3). economic policy issues, and is directly
supported by the Senior Management
involved in energy policy issues for the
Group (SMG), Treasury Directors and Under Treasurer Territory.
several SMG subcommittees. Jennifer Prince has been Under
Treasurer since 2002, following five Peter has been Deputy Under
SMG comprises the Under
years as Deputy Under Treasurer. Treasurer since 2003, after rejoining
Treasurer, Deputy Under Treasurer,
As well as being the chief executive Treasury in 1992 as Principal Adviser.
Assistant Under Treasurers and
of Treasury, Jennifer is chair of the He has more than 40 years experience
Executive Director Revenue, and is
Treasury Corporation Board and is in a range of Territory and Australian
representative of all output groups.
a member of the Charles Darwin government departments in economic,
SMG focuses on strategic policy
University Council and Legislative resources, trade and capital policy
direction for the organisation,
Assembly Members’ Superannuation areas at senior management levels.
managing Treasury’s performance and
Trust. She also has responsibilities Peter holds a Bachelor of Arts (with
improving management and business
in a range of high level interagency Honours in Economics) from the
practices. The main role of SMG is
committees including the Executive University of New England and was
corporate governance and developing
Remuneration Review Panel and the honoured with a Public Service Medal
Treasury’s corporate capabilities, such
Capital Works Review Subcommittee. in 2006 for outstanding public service
as people, systems and environment.
and contribution to the strategic
SMG also determines operational Jennifer joined the Territory public
development of the Northern Territory
policy and strategies to address service in 1979, originally in the
economy.
strategic priorities, manage risks and Department of Health, before
improve organisational effectiveness. transferring to Treasury in 1985. Jodie Kirkman is Assistant Under
Jennifer’s experience relates to Treasurer (Budgets and Finance),
SMG usually meets fortnightly,
health policy issues and hospital responsible for the Territory’s budget
though this can vary at Budget time.
management, and intergovernmental management and financial reporting
For administrative efficiency, SMG
financial and budget policy matters. at the whole of government level.
also sits, in effect, as the risk and
audit, human resource management The Under Treasurer reports to the Jodie was appointed in May 2007,
and information management Treasurer. after holding Director positions
subcommittees, previously separate from 1999 and joining Treasury as
to SMG. a graduate in 1992. Her previous
experience has primarily been in
budgeting and financial management
roles within the Northern Territory
Government. She has a Bachelor of
Business (Accounting) from Northern
Territory University and is a Certified
Practising Accountant.

Managing the Organisation: Corporate Governance 39


Tony Stubbin is Assistant Under Catherine Wauchope is Assistant Corporate Governance
Treasurer (Economic) responsible Under Treasurer (Corporate and Committees
for economic, social and Superannuation). Catherine is Six standing committees support the
intergovernmental financial issues. He responsible for corporate and Senior Management Group (SMG)
also represents Treasury on a range executive services, ministerial liaison, in carrying out its responsibilities
of intergovernmental and whole of corporate communications and in providing leadership on key
government committees. publications, as well as high level issues affecting the organisation.
management of the Northern Territory These committees operate in the
Tony has been Assistant Under
Superannuation Office. areas of risk and audit, human
Treasurer since 2003, after joining
Treasury in 1992. He has more than Catherine held positions at the resource management policy,
20 years experience in a range director level, from 1998, in the professional development, fiscal
of Territory, ACT and Australian financial management and public strategy, information management
government departments in economic finance areas before appointment and occupational health and safety.
policy and statistics. as Director Executive Support and Membership of each committee is
Coordination in June 1999. The role reported in Appendix 4, with the
Tony has a Bachelor of Arts
has since expanded significantly risk and audit, human resource
(Economics) from the University of
to Assistant Under Treasurer level. management policy and information
Wollongong.
Catherine joined Treasury in 1993 management committees comprising
Craig Vukman is Executive Director with a Bachelor of Economics from all SMG members and relevant
Revenue, Commissioner of Taxes Flinders University, following earlier corporate services managers.
and Mineral Royalty Secretary. public sector roles. She also has a SMG considers reports and briefings
Craig’s responsibilities include the Master of Public Policy. on each of the areas below and
administration of the Territory’s tax
provides direction and approval of
and royalty regimes and developing
corporate policy or organisational
associated policy.
projects.
Craig was appointed Senior
Each committee’s role, performance in
Director Revenue in March 2002
2006-07 and priorities in 2007-08 are
and Commissioner of Taxes from
outlined in Table 9.
1 October 2004 after joining
Treasury in July 1998 as Director
Revenue Development and Assistant
Commissioner. He previously worked
in the Western Australian Department
of Treasury and Finance in various
positions within the Office of State
Revenue and other areas. Craig has
a Bachelor of Business (Accounting)
from Edith Cowan University and is
a Certified Practising Accountant.

Treasury’s Senior Management Group: (L-R) Tony Stubbin, Craig Vukman, Jennifer Prince,
Peter Caldwell, Catherine Wauchope (inset: Jodie Kirkman).

40 Annual Report 2006-07


Table 9: Corporate Governance Committees
Committee Role 2006-07 Performance 2007-08 Priorities
Fiscal Strategy Development of strategic Developed and monitored Increase the focus on accrual
policy advice on the Territory’s the Territory’s fiscal strategy, targets for whole of government
fiscal, budgetary and which guided development of outcomes.
economic position and monitor the 2006-07 Mid-Year Report
performance against the and the 2007-08 Budget. The
Government’s fiscal objectives. outcome was reported in the
2005-06 Treasurer’s Annual
Financial Report.
Risk and Audit Oversee internal audit Treasury’s Risk Register and Update Treasury’s Risk Register.
program, risk management internal audit plan updated Determined and implement
and compliance with for 2006-07. internal audit plan for 2007‑08.
legislation.
Refined conflict of interest Finalise conflict of interest policy
policy and procedures. and procedures.
Business Continuity Plan – finalise
and test; develop sub-plans.
Human Resource Provide strategic direction Approved various human Monitor effectiveness of policies,
Management in the development and resource policies and identify priority areas and
implementation of human procedures, including flexible consider policy implications for
resource management work practices, probation Treasury.
planning and policy in policy, and Manager’s Toolkit.
Treasury.
More details on achievements
are reported in the Treasury
People section.
Professional Responsible for Treasury’s The committee met twice and Continue emphasis on
Development study assistance policy approved 34 study assistance professional development
including consideration of applications in 2006-07. including sponsored study,
all applications for study tailored training and professional
More details on the
assistance and professional association activities.
professional development
development.
of staff are covered in the
Treasury People section.
Information Provide advice on the Commenced review of IT Make structural changes to
Management development, management and business application achieve efficiencies and prepare
and use of Treasury’s services in Treasury. for full information audits.
information resources and
Reviewed and implemented
technology.
changes to Treasury’s
information management
security arrangements.
Occupational Oversee and set direction for Committee met three times. Continue regular meetings and
Health and Safety occupational health and safety Achievements are reported in training as required.
activities. the Treasury People section.

Managing the Organisation: Corporate Governance 41


Risk Management Managing and Mitigating Risk Business unit directors and their SMG
Treasury manages its risk through members review the functions of their
Risk Management understanding its functions and areas every year, identify the elements
Framework potential areas of exposure, of risk and discuss strategies and
Considering potential risks and how implementing appropriate strategies to methods for limiting those risks.
to address them is an integral part of address these areas, and monitoring Treasury’s Risk Register and internal
all Treasury’s activities and decision the progress and effectiveness of audit program is developed as a result
making. those strategies. of these discussions.

The Australian and New Zealand The Risk and Audit Committee is The Auditor‑General also has a formal
Standard on Risk Management responsible for overseeing internal audit program that covers, in detail, all
AS/NZS 4360:2004 has been used review and quality assurance relating Treasury’s significant financial systems
as the framework for Treasury’s to financial management, risk and accountabilities in the areas of
risk management process and can management and fraud control, and the Territory Budget, Territory revenue,
be applied at all levels and for all considering how these can potentially Treasury Corporation’s borrowings
activities in the organisation. The impact on Treasury. The committee and investments and the Territory’s
emphasis is on proactively thinking oversees the examination of priority superannuation funds. Treasury’s
about and managing risks in all work risk areas and recommends review Risk Register, internal audit plan and
areas, rather than reacting to risks as and remedial actions to the Under the Auditor‑General’s formal audit
they emerge. Treasurer. program are considered by the Risk
and Audit Committee, to formulate
Risk Environment The process of identifying
Treasury’s annual audit program for
Treasury operates in an environment organisational risks involves reviewing
the coming year.
where the main risks at an individual business unit operations
organisational level are: and considering what elements of
their functions generate risks. These
• external – failure to comply with
risks are categorised according to the
processes, rules, regulations or
consequence or effect on business if
laws, the effect of which could
the risk was to eventuate (for example,
impact negatively on Treasury’s
extreme, high, medium, low) and the
reputation or on that of the Treasurer
likelihood of the risk occurring (for
and the Government; and
example, almost certain, moderate,
• internal – the risk of not being able rare).
to recruit and retain appropriately
qualified staff, or continue to
maintain capability, the effect of
which could impede Treasury’s
ability to pursue its strategic
objectives.
There are also shorter term risks at the
more operational or project-specific
level.

Specific strategies are being


developed to address these and other
risks.

42 Annual Report 2006-07


Monitoring Risk
During the year, several audits and reviews were undertaken as part of
Treasury’s internal audit program. They are categorised as internal and external,
where internal refers to reviews or audits instigated by Treasury, and external
refers to audits programmed by the Auditor-General. Table 10 summarises all
reviews and audits undertaken in 2006-07.

Table 10: Audits and Reviews


Area Audit/Review Audit Outcome/Review Recommendations

External
Northern Audit – final 2005-06 financial Unqualified audit opinion issued. No significant
Territory Treasury statements matters were identified.
Corporation Audit – interim 2006-07 financial Interim audit conducted to assist with end of year
statements audit and to address control and compliance
requirements. An unqualified audit opinion was
issued and no significant matters were identified.
Financial Audit – whole of government budget The audit confirmed that the system and internal
Management and reporting system (Apex) controls in place could be relied upon to provide
Group reasonable assurance that the system would
produce reliable reports with respect to the 2006‑07
Treasurer’s Annual Financial Statements.
Audit – Treasurer’s Annual Financial The audits found that the financial statements were
Statements – final 2005‑06 presented fairly in accordance with the Financial
Management Act and the Fiscal Integrity and
Transparency Act. However, the Auditor‑General
issued a qualified audit opinion in relation to non-
compliance with Australian Accounting Standards
(AAS). This qualification has no reflection on the
accuracy of the numbers, rather, it informs the reader
that the external reporting standards used by the
Northern Territory do not conform to AAS, but do
conform to the Territory’s adopted standard, the
Government Finance Statistics.

Assessment of the new AAS on harmonisation of


whole of government reporting is identified as a
future priority for the Financial Management Group.
This will encompass a staged implementation of
the new reporting format for budget and outcome
reporting.
Audit – Treasurer’s Annual Financial No major issues arose from the interim audit.
Statements – interim 2006‑07

Managing the Organisation: Corporate Governance 43


Table 10: Audits and Reviews (continued)
Area Audit/Review Audit Outcome/Review Recommendations

External (continued)
Territory Revenue Audit – taxes, royalties and tax-related The audit found that reasonable assurance can be
Office subsidy schemes given that all revenue due to the Northern Territory
from taxes and royalties is being received into the
Public Account and, if this is not the case, that
appropriate recovery action is pursued; and tax-
related subsidy schemes are being paid correctly.
Superannuation Audit – end of financial year reports Unqualified audit opinions were issued for the
Office – Northern Territory Government and financial statements of each scheme.
Public Authorities’ Superannuation
Scheme (NTGPASS), Legislative
Assembly Members’ Superannuation
(LAMS) Trust and the Police
Supplementary Benefit Scheme (PSBS)
Review – Superannuation Office No issues arose from audits which assessed
operating standards whether the NTGPASS, LAMS Trust and PSBS
schemes were administered in compliance with the
Superannuation Industry Supervision Act.
Treasury Services Audit – Territory’s 2005-06 Natural The audit found an overstatement of expenditure
Disaster Relief and Recovery made by one agency. The amount was repaid
Arrangements claim for assistance to the Australian Government, and Treasury has
from the Australian Government implemented revised procedures and agency
reporting requirements to ensure verification of future
claims is easier and more accurate.
Whole of Treasury Audit – Agency Compliance Audit 2007 The audit found internal audits, scheduled or in the
annual plan, were not being performed in a timely
manner. It was recommended that the internal audit
program be reviewed and adhered to.

44 Annual Report 2006-07


Table 10: Audits and Reviews (continued)
Area Audit/Review Audit Outcome/Review Recommendations

Internal
Whole of Treasury Review – Treasury risk register Treasury’s risk register is reviewed at least
six‑monthly by SMG. Action for 2007-08 includes
researching and considering methods of reporting
risks at project or operational level, in addition to
the strategic focus on risk reporting that presently
occurs.
Territory Revenue Review – internal review of taxpayer One document prepared for taxpayers was found
Office objections process to contain outdated information. The matter was
subsequently resolved.

Policies and procedures were found to be


appropriate, meeting legislative requirements and
specified service standards. Response times for
objections met published service standards.
Northern Audit − six-monthly financial report; Treasury Corporation, as the Territory’s central
Territory Treasury annual audit of the Corporation’s financing authority, manages the Territory’s borrowing
Corporation controls; half-yearly compliance report; program. As part of its corporate governance and
six-monthly audit of Central Holding risk management framework, it engages private
Authority investments audit firms to conduct regular audits. The auditors
identified no matters of significance in their reports
to the Under Treasurer and the Corporation’s
Advisory Board.

Managing the Organisation: Corporate Governance 45


Other Corporate As part of the process, business Communication
unit plans are developed annually Corporate communication is an
Governance Matters according to strategic priorities integral part of an effective corporate
This section covers other corporate identified for the coming year, and are governance framework, ensuring that
governance matters on which aligned with the Corporate Statement. organisational messages, priorities
Treasury reports as part of its The business unit plans are designed and performance are communicated
commitment to accountability and to pursue the strategic goals set out to stakeholders both internal and
transparency principles. In this in the Corporate Statement and may external to the organisation. Treasury
section, information is provided need to be adapted throughout the has a number of communication
on Treasury’s planning framework, year in response to emerging issues processes, outlined below.
communication policies and and risks.
processes used to achieve effective Internal
Business unit plans are used to Treasury is a small organisation, where
internal and external communication,
determine internal budget allocations all staff are located in one building.
information management and
and to direct individual work plans, This enables communications to be
Information Act reporting. Information
developed between employees more direct, with the key methods
is also provided on environmental
and their managers as part of for sharing corporate information
management and community
the Performance Development being Treasury’s intranet site ‘InSite’,
sponsorship as part of reporting on
Framework. Linking business plans CEO emails to staff on important
corporate social responsibility.
to individual employee work plans organisational issues, presentations
Corporate Planning Process ensures all Treasury employees to staff on major Treasury projects,
Every year the Under Treasurer know how their work contributes to or through SMG members briefing
and Senior Management Group Treasury’s business objectives and directors after SMG meetings or in
(SMG) outline Treasury’s Corporate strategic goals. response to specific issues or events.
Statement which sets Treasury’s Figure 3 outlines Treasury’s key
strategic objectives or goals. These corporate planning documents and
goals guide the direction of Treasury’s shows the connection between
core business areas in the delivery of corporate planning and individual
government outcomes. workplace plans.

Figure 3: Treasury’s Planning Process

Identified by SMG at the


Strategic Priorities − next 12 months
start of the financial year.

Business Plans − next 12 months Completed by business


Business units identify key goals and units at the start of the
outcomes to achieve organisational priorities. financial year.

Individual Workplace Plans − next 6 months


Identifies for individuals their work and how it Completed by managers
will contribute to the business unit and the and staff on a six-monthly
organisation as a whole. Each staff member basis as part of the
identifies the key work tasks and projects they Performance
will complete to assist the business unit in Development Framework.
achieving desired outcomes.

46 Annual Report 2006-07


InSite is the primary method of Treasury Circulars – provide whole Changes in 2006-07 included
keeping staff continually updated of government advice to Territory moving Treasury to a Microsoft
on the latest developments in public sector agencies on financial (MS) Exchange-based email and
Treasury. The site is maintained by management processes, such as scheduling solution, allowing greater
the Information Management and budget development and end of year integration with the MS Office Suite
Systems Unit and informs staff of financial reporting. and online collaboration through
key corporate events, presentations, MS SharePoint. From a records and
Commissioner’s Guidelines – provide
positions vacant, new or updated information management perspective,
information to taxpayers on Territory
policies or procedures and any other considerable work has been done
tax legislation and processes.
general announcements affecting to align records security with the
staff. External stakeholders are able requirements of the Information Act
to subscribe to publicly released through caveats and access controls.
During 2006-07, Treasury began
publications, reports and documents
trialling Microsoft SharePoint to Records and Archives Management
through Treasury’s Publication
explore new ways to collaborate on The Information Act established
Management System. The system
issues and disseminate information records management standards
emails subscribers as soon as new
electronically within the agency. While for the Territory Government and
content of interest becomes available
not without its challenges, the trial was requires public sector organisations
and provides direct access via the
successful and Treasury will move to to implement the necessary practices
internet.
a production installation of SharePoint and procedures for managing their
and develop greater use of the Information Management records. This is managed by the
product in 2007-08. Treasury continues to develop best Northern Territory Archives Service.

External practice information management Treasury complies with the preliminary


Treasury has extranet and internet solutions to ensure the integrity of requirements established by Archives
sites that are used to keep external its business information is protected and has reported data to demonstrate
stakeholders informed of various through appropriate internal systems its compliance in 2006-07.
changes relating to financial and controls. Treasury’s ultimate
goal is compliance with the Code Achievements in 2006-07 include:
management, taxation or economic
issues. In addition Treasury prepares of Practice for Information Security • progressing a review of all existing
various guidelines, circulars and Management (AS/NZS17799:2006). records management categories
publications to keep external This is a medium-term strategic and development of disposal
stakeholders informed of legislative, project with efforts to date including schedules for all Treasury-specific
policy or procedural changes. the development of a Treasury records; and
Treasury’s methods of communicating specific information security policy • Archives approved a retention and
externally include: which covers issues such as physical disposal schedule for the Northern
and environmental security, business Territory Superannuation Office
Internet site – publicly accessible,
continuity management and access in October 2006, with schedules
providing information on all Treasury
control. There will be significant work for four superannuation boards
functions, publications and contacts.
during 2007-08 to finalise the high approved in February 2007.
Extranet site – accessible by Territory level components of this project,
public sector agencies, provides including the development of an
information on legislation and Information Technology (IT) Strategic
processes of government where Plan, and to implement these within
Treasury has primary responsibility. the agency.

Managing the Organisation: Corporate Governance 47


A review of Tower Records and Applications Under the Information Act
Information Management (TRIM) During 2006-07, Treasury processed eight requests to access personal
security commenced during 2006-07 information and one request to change personal information. No requests were
to improve Treasury’s compliance received to access Government information.
with the Records Security and Access
Seven of the requests received related to the business of Racing, Gaming and
records management standard. As a
Licensing, a division of Treasury until November 2006, when it transferred to the
result, security caveats were updated
Department of Justice.
to reflect the exemptions provided
under the Information Act. This The status of requests is detailed in Table 11.
simplifies the process of classifying Table 11: Information Act Requests in 2006-07
information for Treasury staff and
Applications Carried Over from 2005-06 0
protects information requiring
restricted access (such as the Applications to Access Personal Information 9
personal and business information of – Applications to Access Personal Information for Racing, Gaming 7
Territorians). These will be expanded and Licensing
further to create a definitive set of
Applications to Access Government Information 0
caveat descriptions to meet Treasury’s
business and records management Requests Withdrawn 0
needs. Responses Completed Within 30 Day Period 9
Responses Completed, Exceeding 30 Day Period 0
Applications on Hand as at 30 June 2007 0

Website Links
The Treasury website http://www.nt.gov.au/ntt/info_act/index.shtml assists
members of the public who are considering applying to access information held
by Treasury.

Contact This site presents Treasury’s policies and procedures, and the forms required
Treasury’s Information Officer contact to lodge a request to access Government or personal information. Also on the
details are: website are links to:

Information Officer • the Information Act and Regulations;


Northern Territory Treasury • a public register of Government information held by Treasury, which describes
GPO Box 1974 the kinds of Government information usually held. The register will help an
DARWIN NT 0801 applicant decide if Treasury is likely to have the information they seek and
Telephone: +61 8 8999 6700 specifies if it is available outside the formal process of lodging a request
Facsimile: +61 8 8999 7150 under the Information Act;
Email: nt.treasury@nt.gov.au • Northern Territory Treasury’s Annual Reports and other published information;
website http://www.nt.gov.au/ntt/info_ • Northern Territory Treasury’s Organisational Chart; and
act/index.shtml • Information Commissioner’s website.

48 Annual Report 2006-07


Corporate Social Treasury Accommodation
Responsibility The information on Treasury’s
Environmental Reporting achievements in relation to electricity,
This section reports on Treasury’s water and paper use during 2006-07
energy usage in relation to the is disaggregated by the two buildings
Northern Territory Government Energy that Treasury occupied for the
Smart Buildings Policy; as well as majority of 2006-07, being Cavenagh
providing details on water and paper House and Enterprise House. The
usage during 2006-07. presentation of this information varies
from last year’s annual report, in
The Energy Smart Buildings Policy which achievements were reported
aims to achieve and maintain best as a combined Treasury total. The
practice energy management in separation of data by location
Government occupied buildings. provides for greater comparison of
The outcome of the policy is to performance over the years.
reduce greenhouse gas emissions
and save operating expenditure. It should be noted that from 2007‑08,
Through efficiency targets, each Treasury will only report on Cavenagh
agency’s performance is monitored House, as all Treasury staff are now
and reported upon annually, as located in the same building, following
part of efforts to achieve a targeted the transfer of the Superannuation
10 per cent reduction in energy use Office from Enterprise House to
per square metre of floor area by Cavenagh House in May 2007,
2011. Annual energy targets are and the transfer of the Racing,
identified in Table 12. Gaming and Licensing (RGL) group
to the Department of Justice in
November 2006.

Table 12: Annual Energy Targets


2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Target1 (%) 1 1.5 3 5.5 8 10
1. Per cent reduction from 2004-05.

Managing the Organisation: Corporate Governance 49


2006-07 Achievements Since monitoring of electricity use The inclusion of business hours
Treasury’s achievements in 2006-07 commenced in 2004-05, Treasury airconditioning in Enterprise
include: has reported a 23 per cent reduction House’s figures accounts for the
for Cavenagh House and 7 per cent higher electricity used per square
• 38 per cent reduction in electricity
reduction for Enterprise House. As metre of office space in 2006‑07
use per square metre of office
part of whole of government annual (910 megajoules for Enterprise House
space;
reporting on electricity use, Treasury’s compared to 249 megajoules for
• reduced greenhouse gas emissions;
38 per cent reduction in energy use Cavenagh House).
• reduction in water use; and per square metre of floor area will be
During the year, greenhouse gas
• 46 per cent lower paper use. reported in the annual Building Energy
emissions reduced by 8 per cent in
Figure 4 shows that Cavenagh and Greenhouse Report prepared
Cavenagh House and 67 per cent
House electricity use per square by the Department of Planning and
in Enterprise House. The large
metre reduced by 18 per cent from Infrastructure.
decrease in Enterprise House
303 megajoules in 2005-06, to Tables 13 and 14 provide further reflects a shorter reporting period,
249 megajoules in 2006-07, while details of electricity and water use with the figure of 174 greenhouse
electricity use per square metre for Cavenagh House and Enterprise gas tonnes, reflecting emissions
in Enterprise House reduced by House. Information for each location between July and November 2006.
6 per cent from 973 megajoules is presented separately as the From November 2006, Enterprise
in 2005-06 to 910 megajoules in calculations for electricity usage differ, House became the responsibility of
2006‑07. with Cavenagh House’s electricity the Department of Justice, and is
Energy saving activities undertaken usage figures including light, power now included in its environmental
in 2006‑07 included upgrading and after hours airconditioning usage, reporting.
computers, installing business hours while Enterprise House includes
timers as part of lighting initiatives and light, power and business hours
promoting good energy management airconditioning.
practices to staff, such as turning off
lights and computers at the end of the
day. The airconditioning plant was also
upgraded by the building owner.

Figure 4: Electricity Use per Square Metre of Office Space


MJ
1000

800

600

400

200

0
2004-05 2005-06 2006-07
Cavenagh House Enterprise House

50 Annual Report 2006-07


Table 13: Cavenagh House Electricity and Water Use
Description Unit 2006-07 2005-06 2004-05
Key
kL= kilolitre
FTE Full-time equivalent staff1   161 174 187
Electricity Light and power GJ 921 1 076 1 160
GJ = gigajoule

Variation from previous year % -14 -7 MJ = megajoule

  Use per FTE GJ 5.7 6.2 6.2 GHG = greenhouse gas emissions

  Variation from previous year % -7 0 1 MJ = 1000 kilojoules


  Use per square metre of MJ 249 303 327 1000 MJ = 1 GJ
office space
  Variation from previous year % -18 -7
  Total associated greenhouse GHG 217 235 239
gas emissions tonnes
Variation from previous year % -8 -2
Water Total use kL 4 674 5 482 5 948
  Variation from previous year % -15 -8
  Use per FTE kL 29 32 32
  Variation from previous year % -8 -1
1. FTE figure excludes Superannuation and RGL staff as they are included in the Enterprise House figure.
Some figures may not add up due to rounding.

Table 14: Enterprise House Electricity and Water Use


Description Unit 2006-07 2005-06 2004-05
FTE Full-time equivalent staff % 241 72.92 77.22
Electricity Light, power and GJ 7483 2 399 2 424
airconditioning
Variation from previous year % -69 -1
  Use per FTE GJ 31 33 31
  Variation from previous year % -5 5
  Use per square metre of MJ 910 973 983
office space
  Variation from previous year % -6 -1
  Total associated greenhouse GHG 174 3
525 499
gas emissions tonnes
  Variation from previous year % -67 5
Water Total use kL 5593 1 493 1 538
  Variation from previous year % -63 -3
  Use per FTE kL 23 20 20
  Variation from previous year % 14 3
1. FTE figure represents Superannuation Office staff only.
2. FTE figures for 2004-05 and 2005-06 represent RGL and Superannuation staff.
3. Figure for period July 2006 to October 2006 only. From November 2006, the Department of Justice assumed responsibility for the building.
Some figures may not add due to rounding.

Managing the Organisation: Corporate Governance 51


Figure 5 shows that over the last three years there have been changes in water Figure 5: Water Use per FTE
Kilolitre
usage, with Cavenagh House reducing its use of water by 8 per cent per FTE
40
staff member, while Enterprise House increased its usage by 14 per cent per
FTE from the previous year. 30

Table 15 provides data on paper usage in Treasury. There was a reduction in


20
the paper used between 2005-06 and 2006‑07 of 46 per cent. During this time
Treasury staff have been encouraged to make more use of online rather than 10

printed documents and are more aware of the need to conserve paper and as
0
a consequence are printing double-sided. This will continue in 2007‑08 with 2004-05 2005-06 2006-07
Cavenagh House Enterprise House
greater use of Microsoft SharePoint for online collaboration within Treasury.

Table 15: Paper Usage


 Unit 2006-07 2005-06 Variation
A4 paper Reams1 4 452 8 286 -3 834
FTE 185 247 -62
Use of A4 paper per FTE Reams 24.06 33.56 -9.5
Waste for recycling Bins 212 104 108
1. Ream = 500 sheets

Fundraising for Community Organisations


The Treasury Social Club supports and coordinates a number of charitable
and social events each year. The events are an important opportunity for staff
to gather socially and to contribute toward national charity appeals and local
community fundraising events. In 2006-07, the social club raised over $3000 for
various charities including:
• Cancer Council NT
• SIDS and Kids NT
• Leukaemia Foundation

Future Priorities
• Staff training in maintaining ethical standards through anti-discrimination,
harassment, Indigenous and cross-cultural awareness training sessions.
• Finalise implementation of the conflict of interest policy.
• Update Treasury’s Risk Register and implement the internal audit plan for
2007-08.
• Continue with the project to achieve compliance with the Code of Practice for
Information Security Management.
• Continue staff awareness programs to promote efficient and wise use of
resources such as paper, electricity and water.

52 Annual Report 2006-07


Managing the Organisation:
Treasury People
Main Results 54
Staffing 54
Strategic Human Resource Issues 57
Training and Development 59
Employment Programs 62
Equal Employment Opportunity (EEO) 64
Industrial Relations 65
Occupational Health and Safety 65
Workers Compensation 65
Employee Wellness 66
Reporting Against Employment Instructions 67
Future Priorities 70
Treasury People

Main Results
• As at 30 June 2007, 185 staff were employed on a full-time equivalent basis in
Treasury and Treasury Corporation.
• 61 per cent of Treasury’s workforce were women, 3 per cent were Indigenous
and 4 per cent were employed on a part-time basis.
• 31 people or 17 per cent of Treasury staff were engaged in Treasury
employment entry programs, including 20 graduates.
• Strategic human resource focus remained on developing managerial
capabilities and leadership, facilitating professional development for middle
and senior managers, and expanding and promoting entry-level programs and
career opportunities.
• $0.28 million was spent on training and development in 2006-07, with
expenditure per employee increasing 22 per cent to $1535.
• A second group of staff was sponsored to undertake the Graduate Certificate
in Public Governance through Charles Darwin University.
• Under Treasury’s OH&S program, 15 staff were trained in risk assessment,
9 as fire wardens and 8 in first aid.
• 34 per cent of staff took up the offer of free influenza vaccinations.
• All Employment Instructions were satisfied.

Staffing
• As at 30 June 2007, Treasury (including Northern Territory Treasury
Corporation) employed 185 staff on a full-time equivalent (FTE) basis. All
Treasury staff are located in Darwin, with the exception of two staff operating
on home-based work arrangements.
• Table 16 shows a decrease of 57 staff between 30 June 2006 and 2007. This
reflects the 57 FTE staff who transferred to the Department of Justice with the
racing, gaming and licensing (RGL) function and related corporate-type staff
from Treasury Services.
• Over the 26 pays for 2006-07, Treasury averaged 214 FTEs. In that time, there
were 41 separations (excluding casual employees), a staff turnover rate for
the year of 19.2 per cent. Although this figure appears high, it is well below
the Northern Territory Public Sector (NTPS) turnover rate of 26 per cent for the
same period.

54 Annual Report 2006-07


Table 16: FTE Staff by Gender and Classification as at 30 June
Females Males Total
Designation 2007 2006 Diff 2007 2006 Diff 2007 2006 Diff
Trainee 1 7 -6 2 1 1 3 8 -5
Graduate 10 4 6 10 3 7 20 7 13
AO1 0 0 0 1 0 1 1 0 1
AO2 3 4 -1 1 3 -2 4 7 -3
AO3 12 18 -6 0 2 -2 12 20 -8
AO4 21 30 -9 6 7 -1 27 37 -10
AO5 19 27 -8 6 13 -7 25 40 -15
AO6 19 17 2 14 22 -8 33 39 -6
AO7 11 15 -4 4 11 -7 15 26 -11
AO8 6 8 -2 16 17 -1 22 25 -3
EO1 3 3 0 2 4 -2 5 7 -2
ECO1 3 5 -2 4 9 -5 7 14 -7
ECO2 3 4 -1 3 1 2 6 5 1
ECO3 2 1 1 2 2 0 4 3 1
ECO4 0 0 0 1 1 0 1 1 0
ECO6 1 1 0 0 0 0 1 1 0
Total 113 145 -32 72 97 -25 185 242 -57
Note: Figures may not add due to rounding to the nearest full-time equivalent. These figures
do not include staff on leave without pay or staff who were employed, but unpaid (such as
casuals), as at 30 June.
Source: Personnel Integrated Payroll System (PIPS)

Managing the Organisation: Treasury People 55


Figure 6 compares gender for each Of the 185 staff employed by Treasury As illustrated in Figure 8, Treasury
individual classification level. Females as at 30 June 2007, 61 per cent of the has a relatively young staff profile,
occupy the majority of AO3 to AO5 workforce (113 staff) were women. with an average age of 37 years.
positions, which include administrative The high proportion of females in Treasury’s young age is mostly
and secretarial roles as well as recent Treasury is slightly lower than the attributed to its graduate, cadetship
graduates. The gender balance is NTPS proportion of 61.9 per cent and apprenticeship programs which,
fairly even in the middle and senior of the workforce. The high female as at 30 June 2007, represented
management levels from AO6 and representation in the administrative 17 per cent of Treasury total staff.
above. stream (see Figure 6), especially AO3 Although the majority of these are
to AO5 levels, reflects the trend across full-time graduate trainees (over 20
As shown in Figure 7, over the
the NTPS. years of age), those in the 16- to
ten years spanning 1997 to 2007,
20-year-old age group are employed
Treasury’s gender balance has As at 30 June 2007, the proportion
under Treasury’s various entry-level
remained steady at around the ratio of of executive women in Treasury was
employment programs such as the
6 females to every 4 males. 49 per cent, well above the NTPS
National Indigenous Cadetship Project
2007 figure of 36 per cent.
(NICP), Work Integrated Learning
Scheme in Economics and vacation
employment (work placements
during university breaks), and
apprentices employed under the New
Apprenticeship Program (NAP).
Figure 6: Treasury Staff by Classification and Gender Figure 7: Overall 10 Year Gender Comparison
as at 30 June 2007
160
25 Male
Male 140 Female
Female
20 120
Number of Staff
Number of Staff

100
15
80

10 60

40
5
20

0 0
1997 1999 2001 2003 2005 2007
4C

6C
IT

EO C
3C
5
2
3
AP

1C
EO 1
4

8
1

7
AO
AO

AO

EO
AO

AO

AO

AO
AO

2
FO

EO

EO

EO
N

Figure 8: Treasury Staff Age Profile as at 30 June 2007 Figure 9: Staff with Over 10 Years of Service in Treasury
as at 30 June 2007
25 10
Male Male
9 Female
Female
20 8
Number of Staff
Number of Staff

7
15 6
5
10 4
3
5 2
1
0 0
16-20 21-25 26-30 31-35 36-40 41-4546-50 51-55 56-60 61-65 66-70 10-15 15-20 20-25 25-30 30-35 35-40 40-45
Years of Age Years of Service

56 Annual Report 2006-07


Figure 9 shows that, of Treasury’s 185 Developing Managerial The Manager’s Toolkit
FTE staff, 14 per cent or 26 staff had Capabilities and Leadership The Manager’s Toolkit provides a
completed more than 10 years service For 2006-07, the focus on enhancing Treasury-specific reference manual
with the agency as at 30 June 2007, management skills and expertise for managers that consolidates many
with 10 staff achieving impressive in the area of people management sources of information into one
milestones of between 20 and 44 remained a key strategic priority. comprehensive document and provides
years of service. Treasury recognises Activities in 2006‑07 included: links to more detailed information where
the significant roles these staff
• AO6 to AO8 staff invited to nominate required.
have played in the agency, and their
contribution to the Northern Territory for the Public Sector Management The Toolkit explains the responsibilities
Government. Program; of managers as they relate to Treasury
• managers being provided with policies and procedures and serves as a
Strategic Human executive coaching, training useful reference guide.
Resource Issues courses, and advice and support Covering key aspects of how
from Human Resource staff, organisations operate (such as managing
During 2006-07, Treasury continued
in recruitment and selection risk, finances, information, equipment,
its efforts to be an employer of
processes, and case management facilities and staff), the Toolkit assists
choice, through a well managed and
matters such as underperformance managers with management and
flexible organisation that promotes
and grievance issues; and supervisory responsibilities.
the improvement of staff capability,
and which values the dedication and • development of a Manager’s
expertise of its staff by supporting Toolkit to provide managers with
them in balancing professional and practical assistance in carrying out
personal priorities. management duties.

In 2006-07, Treasury focused on the


following strategic human resource
issues:

• developing managerial capabilities


and leadership;
• promoting and facilitating learning
and growth for middle and senior
managers through Treasury’s
mobility program; and
• increasing and promoting career
opportunities at entry level.

Managing the Organisation: Treasury People 57


Mobility In 2006-07 Treasury also sponsored
In 2006-07, Treasury continued to three awards for Casuarina Senior Treasury Forum and Mock
support leadership development College’s Year 12 Graduation Awards Budget
and mobility through the role of the Ceremony, donating $600 in prizes The Treasury forum is aimed at
Senior Ministerial Liaison Officer, with for excellence in mathematics, high school students of economics,
three staff completing placements in accounting and economics. accounting, politics and legal studies.
2006‑07. In 2005-06 Treasury developed a It provides them with an opportunity
The position offers Treasury staff half-day forum/mock budget for senior to experience the dilemmas and
from AO7 to ECO1 level a three- to Darwin High School students. Based conundrums of decision making in
six-month placement in the Executive on the success of the first group in government, where there are limited
area where they contribute to Treasury June 2006, Treasury continued the resources and the impact on the
comments on all Cabinet submissions, forum in 2006-07 in Darwin and Alice community is a key consideration.
contribute to the preparation of Springs with about 130 students Students take on the role of Budget
Ministerial briefings and are involved taking part during the year. The forum Cabinet, working together to decide what
in organisational projects such as promotes entry‑level programs in priorities and projects they would fund
development of the Territory Budget Treasury and government. with their limited budget.
papers, Estimates Committee The session concludes with the students
briefings, Treasury’s annual report and ‘handing down’ their budget in a speech
executive conference. to the group.
The forum also informs students about
Promoting Entry Level
employment programs offered by
Programs and Career
Treasury and wider career options in the
Opportunities public sector.
In 2006-07 Treasury participated in a
number of public events to promote
the various career options available in
Treasury and the public sector:

• the Territory show circuit;


• Darwin and Alice Springs Careers
Expos; and
• Graduate Recruitment Fair at
Charles Darwin University.

Students from Kormilda College participating in the 2007 Treasury Forum.

58 Annual Report 2006-07


Training and Professional Development Key areas of professional training and
and Training development were:
Development In 2006-07, $0.28 million was • professional conferences and
The greater part of Treasury staff
spent on professional development seminars which focused on current
comprise employees who either
and training, through attendance issues in areas related to Treasury’s
have tertiary qualifications or are
at conferences, seminars and core business, namely accounting,
studying towards them. As a means
workshops, and assistance with formal commerce, economics, taxation,
of attracting and retaining staff, and
study (see Table 17). superannuation and public policy.
in order to develop and promote staff,
Although overall expenditure in This included seminars and one-day
Treasury has developed systems
2006-07 was 2.4 per cent less than workshops with keynote speakers
to support and encourage further
in the previous year, training and such as Barry Dunphy, of Clayton
professional development and
development costs as a percentage Utz Brisbane, who presented
continuing education.
of personnel expenditure increased Advanced Government Decision-
by 0.38 percentage points, as did Making. Other courses included
training expenditure per employee, the Taxation Institute GST seminar,
which increased by 22 per cent to BIS Shrapnel Business Forecasting
$1535. Conference and short courses
such as FBT 2007, CPA: Strategic
Thinking and People Profiling,
PS146 Superannuation Training, and
Public Policy Program;
• tailored public sector academic
courses such as the Public Sector
Management Program and the
Graduate Certificate in Public
Governance;
• equity and diversity awareness
training, such as Indigenous cultural
awareness, and anti-discrimination
courses for new employees as well
as refresher sessions tailored for
managers; and
• personal and skills development
short courses, including project
Table 17: Training and Development Expenditure
management, business writing
2006-07 2005-06 and writing Ministerial briefings,
Total employees 185 242 information technology systems and
computer training, and seminars
Total training and development expenditure $284 021 $291 003
with a health and lifestyle focus.
Total personnel expenditure $15.19M $19.54M
Training and development costs as a percentage of 1.87% 1.49%
personnel expenditure
Training expenditure per employee $1 535 $1 202

Managing the Organisation: Treasury People 59


Public Sector Management Graduate Certificate in Public Study Assistance
Program Governance Formal study is strongly supported,
Treasury participation in the Public The Graduate Certificate in Public with assistance for staff undertaking
Sector Management Program (PSMP) Governance has been a means of further study in areas relevant to
continued in 2006-07 with three staff enhancing Treasury’s already well Treasury’s core business. Study
commencing the September 2006 respected graduate Finance Officer assistance consists of up to 2.5 hours
program. Another two staff were in Training (FOIT) program. In 2005, paid study leave per week for staff
sponsored for the fast track program Charles Darwin University (CDU) to either attend lectures, tutorials and
commencing in August 2007, and a recognised prior learning from the exams within working hours, or to
third will begin in November 2007. training and workshop component of study online or by distance learning.
the FOIT program and on-the-job work In addition, financial assistance is
In 2007 another Treasury employee
placements completed by graduates. provided as reimbursement of course
was able to graduate from the PSMP,
That learning was credited as costs upon successful completion of
following completion of her work‑based
20 ‘unspecified’ credit points towards units (capped at $1500 per unit).
project. The project dealt with graduate
a Graduate Certificate/Diploma or During 2006-07, 36 staff (including
retention issues in Treasury and
Masters in Public Governance, with two NICP cadets) were approved
recommended strategies to assist in
ex‑FOITs only needing to undertake to study, compared with 40 staff in
improving graduates’ length of stay
two further units: Policy Systems, 2005-06. Table 18 and Figure 10
and enhancing the value of the current
Design and Analysis; and Financial show a decrease in the number of
graduate program.
and Economic Management, to staff receiving assistance and total
complete the Graduate Certificate. expenditure. However, at an individual
In 2006-07, 10 staff were sponsored level, there has been an increase in
to undertake the Graduate Certificate. spending per employee in 2006-07
This follows the first group of compared to the previous year.
20 ex‑FOITs that Treasury sponsored
in 2005-06, when the program was first
awarded recognition. All obtained a
grade of distinction.

Participants who successfully complete


the program will be eligible to graduate
with a Graduate Certificate in Public
Governance by mid 2008.

60 Annual Report 2006-07


Table 18: Study Fees Reimbursed In 2006-07, $6295 was provided
2006-07 2005-06 in professional membership
reimbursements to 23 staff (2005‑06:
Number of employees receiving assistance 361,2 40
22) who are required to keep current
Number of employees who applied for 20 31 professional memberships with
reimbursement by 30 June registered industry bodies as part
Total expenditure $40 656 $62 415 of their work. This is an increase
from $5294 in 2005-06. The increase
Average reimbursement per employee $2 033 $2 013
is mainly due to one employee
1. Includes Racing, Gaming and Licensing staff who applied for study assistance prior to their seeking reimbursement for multiple
transfer to the Department of Justice. memberships from the last two
2. Of the 36 employees, only 20 submitted and received study reimbursements as at
financial years.
30 June 2007, totalling $40 656. This is primarily due to some institutions issuing students’
results later, such that not all applications for reimbursement were received or processed before The lower spending for Training
the end of the financial year. These reimbursements will be reflected in the 2007-08 Annual
and Other Course Fees identified
Report.
in Figure 10 is largely due to a
number of courses being delivered
Treasury’s study assistance policy Professional Membership agency‑wide during 2004-05. These
enabled staff to undertake studies Assistance courses included cross-cultural and
towards the following qualifications: Treasury assisted staff by reimbursing Indigenous awareness training as well
• Diploma of Business (Human 50 per cent of their membership fees as anti-discrimination and harassment
Resources); for the following organisations: refresher courses, and formed part of
• Bachelor Degrees (Business, • CPA Australia; a rolling schedule of training offered
Information Technology); every 18 months. Consequently, these
• Institute of Chartered Accountants;
courses were not delivered again
• Certified Practising Accountant • Australian Institute of Company
until 2007, by which time staffing
(CPA); Directors;
numbers had decreased significantly
• Chartered Accountants Program; • Australian Institute of Management; since 2005 so the total cost was lower.
• Masters (Professional Accounting, • Taxation Institute of Australia; At an individual level, spending per
Business Administration and employee increased from $1317 in
• Australian Human Resources
Taxation); and 2005 to $1535 in 2007.
Institute; and
• Graduate Diploma (Legal Practice).
• Institute of Public Administration
Two staff members also undertook Australia.
a Tertiary Enabling Program to
develop the skills and knowledge to Figure 10: Professional Development Expenditure
successfully complete tertiary studies as at 30 June
$000
and allow them to meet the minimum 400
entry requirements for most CDU 350
vocational education and training 300
diplomas and bachelor degrees. 250
200
150
100
50
0
Professional Study Assistance Training and Total
Membership (includes HECS) Other Course Fees
2005 2006 2007

Managing the Organisation: Treasury People 61


Apprentices National Indigenous
Employment Programs All agencies are strongly encouraged Cadetship Project
As at 30 June 2007, 31 entry-level staff to participate in the Northern Territory The National Indigenous Cadetship
were employed by Treasury under the Government’s New Apprenticeship Project provides financial assistance
following programs: Program (NAP) as host employers and work experience to Indigenous
• New Apprentice Program (NAP) of apprentices, who are recruited students studying towards a degree,
– 3 staff employed full-time while and centrally managed through for the duration of their tertiary study.
completing Certificate III; the Department of Corporate and Treasury has participated in the
• National Indigenous Cadetship Information Services (DCIS). program for several years, along with
Project (NICP) – 1 student employed Apprentices are engaged for other Northern Territory Government
while studying business full time at 12 months and combine study agencies.
undergraduate level at Charles Darwin towards a Certificate III, either During 2006-07:
University (CDU); through Group Training NT or CDU, • of the three students, two were
• Work Integrated Learning Scholarship with full‑time work. As part of on-the- studying business degrees at
(WILS) in Economics – 7 students job training during their 12-month CDU – one cadet majoring in
employed while studying economics contract, apprentices complete two management and the other in
full time at undergraduate level at six-month work placements in different economics; while the third studied
CDU; and areas of Treasury in order to provide International Business at Flinders
• Finance Officer in Training (FOIT) them with the opportunity to develop a University in Adelaide. The two
– 20 staff with a tertiary qualification broad range of skills and knowledge latter cadets subsequently withdrew
employed full time in Treasury’s that is not only relevant to their from the program, in August 2006
graduate training scheme. discipline but to the agency and the and February 2007 respectively, to
public sector. pursue studies in other fields. The
Employment Programs During 2006-07: former is on track to complete his
degree in 2007; and
As described earlier in this section, • Treasury employed one business
Treasury has a range of employment administration apprentice and two • all three completed paid work
programs that provide opportunities information technology apprentices; experience placements during
for participants to experience, first and university breaks.
hand, work in Treasury and to learn • of the eight apprentices employed
about career options in the Territory in 2006, three successfully
public sector. These programs, completed their apprenticeships
particularly the cadetships and in February 2007. Two transferred
vacation employment programs are to the Department of Justice with
key elements in Treasury’s long-term Racing, Gaming and Licensing,
strategy to recruit local people, rather and the third has been permanently
than needing to rely on interstate placed in the Superannuation Office.
recruits. A summary of achievements
during the year is outlined above.

Samantha Brittain, business administration


apprentice

62 Annual Report 2006-07


Cadetships and Scholarships Graduate Program Work Experience
for CDU Students The Finance Officer in Training In addition to cadets and scholarship
In March 2007, the Work Integrated (FOIT) program employs local and holders sponsored by Treasury, work
Learning Scholarship (WILS) in interstate graduates from a variety experience placements during holiday
Economics commenced, replacing of disciplines, including accounting, breaks were also provided to other
the Student Economist Scheme economics and business law. The university students during 2006-07:
(SES) previously offered by Treasury. FOIT program is an important ongoing
• five Northern Territory Government
The structure of the program component of Treasury’s recruitment
scholarship holders / vacation
remained unchanged with students strategy and succession planning,
employees; and
completing economics studies at and aims to fast track high quality
• five James Cook University
CDU receiving scholarship payments graduates to middle and senior
economics students from
and undertaking paid vacation work management capability.
Queensland.
in Treasury while completing their During 2006-07:
degree. It is anticipated that in 2008, Students were employed for up to
Treasury will also extend scholarships • six of the eight graduates from the two months at the AO1/AO2 level in
to students of accounting at CDU. 2006 FOIT program were appointed various Treasury areas.
to permanent positions;
During 2006‑07:
• 20 graduates commenced the 2007
• eight students were engaged as FOIT program (pictured below). This
cadets under the SES program in is by far the largest intake since the
2006, six of whom received financial commencement of the program in
assistance as well as paid work 1998; and
experience, and two who undertook • the second Graduate Certificate
work placements only; in Public Governance program
• Treasury employed seven WILS was delivered to graduates from
students in 2007, three of whom the 2006 FOIT program and from
were previously SES cadets; and previous years, and to other
• all cadets completed work non‑FOITs.
experience placements in various
Treasury business units during
university breaks.

2007 FOITs: back row (L-R): Solomon Gaturu, Sashi Kiran, Adam Harwood, Claire Zhu, Erin Stone, Craig Turner, James McLoughlin, HuiWen Wu,
Kama McCarthy, Annie Richmond, Luke Belperio, Wendy Ho; front row (L-R): Anthony Parletta, Christopher Beagley, Kimberlee McKay, Kelly
Combe (since withdrawn from program), Tenille Cahill, Ippei Okazaki, Sarah Jones, Joseph Kuhn

Managing the Organisation: Treasury People 63


Equal Employment Indigenous Employment and – through an entry-level program,
Career Development one staff member will shortly
Opportunity (EEO) Treasury continues to implement complete his undergraduate
Treasury has a diverse workforce degree;
its Indigenous Employment and
consisting of many highly skilled and
Career Development (IECD) strategy. – one staff member commenced
qualified staff.
Treasury’s 2004-06 strategy is the Public Sector Management
Data from the Personnel Integrated currently undergoing evaluation and Program in September 2006; and
Payroll System (PIPS) indicates a revised strategy will be prepared in
– a placement was negotiated with
that 82 per cent of Treasury staff 2007-08.
the South Australian Department
had recorded their EEO details as
The following are achievements of the of Treasury and Finance for an
at 30 June 2007. A Census Week
strategy during 2006-07. employee, as a policy officer,
was held in July 2007 to encourage
• Indigenous staff are represented on while on leave without pay from
staff to update their contact and
Treasury’s Indigenous Employment the NTPS.
next of kin details in PIPS and their
EEO details. This forms part of a and Career Development Committee Table 20 shows that as at
Government strategy to ensure that and the Occupational Health and 30 June 2007, seven staff members
equal opportunity data is accurately Safety Committee. Input to policy had self-identified as Aboriginal
recorded to assist in workforce and decision making is also made or Torres Strait Islander (although
planning, and also assists the through Treasury’s Indigenous only six did so through PIPS). This
Government in monitoring Indigenous Discussion Group. represents a decrease of seven from
staff numbers. • Indigenous staff have been the 14 reported at 30 June 2006. This
encouraged and supported in occurred because four Indigenous
Table 19 provides details of EEO data
further professional development: staff transferred to other agencies
entered voluntarily by staff in PIPS.
– one employee received and others ceased their employment
assistance to undertake a Tertiary program or contract during 2006‑07.
Enabling Program, the successful
completion of which would allow
her to meet the minimum entry Table 20: Indigenous Employment as
requirements for most diploma at 30 June
and bachelor courses at CDU; Classification 2007 2006
Trainees 1 4
Table 19: Equal Employment Opportunity Data as at 30 June
AO1
Aboriginal and Non-English Non-English
Torres Strait AO2 1 3
Speaking Speaking Person with
Islander Background1 Background2 Disability AO3 1
EEO Status 2007 2006 2007 2006 2007 2006 2007 2006 AO4 3 3
Male 2 3 2 5 0 0 2 1 AO5 1
Female 4 4 5 6 4 3 1 4 AO6 2 2
% total staff 3 3 4 5 2 1 2 2 Total 7 14
1. Identified as being of first generation non-English speaking background, where the first
language is not English and neither parent’s first language is English.
2. Identified as second generation non-English speaking, where the first language spoken is
not English, but the person was in Australia or came to Australia before the age of five, or at
least one parent’s first language is English.

64 Annual Report 2006-07


Industrial Relations Achievements during 2006-07: The value of claims in 2006-07 was
90 per cent lower than in 2005-06, and
All administrative staff in Treasury • training of 15 staff members in risk
totalled $18 380. The higher expense
are covered by the NTPS 2004‑2007 assessment, enabling these staff to
in 2005-06 was due to a lump sum
Certified Agreement, which expired in conduct workstation assessments
payment to one employee.
August 2007 and will be renegotiated and provide advice to staff as
in 2007‑08. No industrial disputes required; The types of injuries for workers
were reported during the year, with • OH&S training for 8 managers and compensation claims either lodged or
Treasury’s efforts in 2006-07 focusing supervisors; ongoing in 2006-07 were:
on improving human resources • selection and training of 8 first aid • falls on the same level – caused by
practices, management development, officers and 9 fire wardens; and wet or oily internal traffic areas;
and professional development
• training of 4 staff in hazard • neck injury as a result of a car
programs.
identification, assessment and collision; and
Recognising the need for employees control. • mental stress – aggravation of
to balance their work and family
commitments, a Flexible Work
Workers Compensation depression and anxiety.

Two new workers compensation Table 21 compares 2006‑07 with


Arrangements Policy was developed
claims were lodged during 2006-07, 2005-06 workers compensation data.
in 2006-07. The policy provides a
framework for employees and their bringing total claims to four. During
managers to negotiate arrangements the reporting period, one claim was
that suit both the individual and the resolved and two transferred to the
needs of the workplace, providing Department of Justice with Racing,
clarity and equity for those involved. Gaming and Licensing.

Occupational Health
and Safety
Treasury’s Occupational Health
and Safety (OH&S) Committee,
established to examine OH&S issues
Table 21: Workers Compensation Claims
that may affect Treasury employees,
comprises staff ranging from AO3 to 2006-07 2005-06
senior management levels. It regularly Total expenditure $18 380 $189 300
reports to the Senior Management
Claims as at 1 July 2 2
Group.
New claims 2 1
The committee focuses on safe
workplaces and systems of work; Claims resolved 1 1
developing, implementing and Claims transferred with Racing, Gaming and 2 -
monitoring OH&S measures; Licensing
advocating acceptable and
Claims as at 30 June 1 2
responsible practices by employees
and others; and promoting the health Number of staff receiving ongoing workers 0 0
and safety ethos. compensation payments

Managing the Organisation: Treasury People 65


Employee Wellness Table 22: Employee Assistance Program
2006-07 2005-06
Employee Assistance
Total expenditure for financial year $21 039 $38 077
Program
Treasury’s Employee Assistance Total number of people assisted by EAP providers 46 48
Program (EAP) provides an important – Treasury employees 32 37
service to the agency’s employees – Immediate family members 7 8
and forms part of our OH&S – Manager assistance, advice, coaching 7 3
commitments. From time to time, staff
Total number of sessions 105 194
may be affected by personal, family
or work-related issues and the EAP
Flu Vaccinations Corporate Challenges
is one way that Treasury supports
Free flu vaccinations for all Treasury Staff are encouraged to become
staff. The EAP offers up to five free
staff were provided again in 2006-07, involved in Corporate Challenges,
confidential counselling sessions for
the fourth year the program has been which provide unique opportunities
employees and their family members,
offered. 34 per cent of staff received for work colleagues to match their
with either of Treasury’s EAP
the vaccination, up from 30 per cent in sporting skills against others in a fun
providers.
2005-06. and social atmosphere while enjoying
EAP also provides coaching for the benefits of being active.
supervisors and managers in dealing The value of the program in terms
of reducing sickness is difficult to In 2006-07 Treasury sponsored
with difficult and sensitive staff
monitor, as staff are not required several corporate teams in running
issues in the workplace, by providing
to provide reasons for sick leave and walking, soccer, netball and lawn
guidance and strategies, as well as
absences, which precludes bowls. The All Revved Up run/walk
mediation and dispute resolution
matching absences to vaccination team took the top honours in the 2007
services.
status. Also, the vaccination does Run/Walk Corporate Challenge.
In 2006-07 a total of 105 EAP sessions not provide immunity against
were taken up by Treasury staff and all possible strains of influenza.
immediate family members, at a cost Nonetheless Treasury will continue
of $21 039. Although the utilisation to offer this program to staff.
rate remained steady with 46 people
assisted by the EAP providers, fewer
sessions were accessed overall. In
2006-07 only seven staff utilised the
full five sessions available, compared
to 18 in 2005‑06, with a number of
employees accessing additional
sessions in order to enable them to
deal with their work-related issues or
personal concerns.

Details are summarised in Table 22.

Treasury’s All Revved Up run/walk team (L-R): Kristina Skipper, Jayne Balding, Nathan Schultz,
Mathew Pickering, Felicity Wannan and James England

66 Annual Report 2006-07


Reporting Against Employment Instructions
Under the Public Sector Employment and Management Act (PSEMA), 13 Employment Instructions provide direction to
agencies on human resource management matters. Each instruction specifies required reporting in agency annual reports.
Treasury’s performance against each instruction is reported below.

Table 23: Employment Instructions, Annual Reporting Requirements and Agency Action
Employment Instruction and Annual
Reporting Requirements Agency Action
Number 1 – Recruitment Treasury’s recruitment policy was revised in 2006, with standard
Agency to develop procedures on templates developed for each stage of the selection process for use
recruitment and selection for internal use. by managers and selection panels.

CEO required to report annually on the Recruitment action undertaken during 2006-07 included advertising
number of employees in each designation 73 vacancies, 75 staff commencing and 62 staff leaving Treasury.
and variations since last report.
Two promotion appeals were lodged in 2006-07, with the Promotions
Appeal Board finding them to be unsubstantiated.

Staffing data is reported at the beginning of this section.


Number 2 – Probation Treasury’s probation policy and procedures were finalised in 2006-07,
CEO shall develop a probationary process reflecting the improved processes that have been developed over the
for their agency and convey details of the past year. It accommodates the necessary review processes for the
probationary process to employees within relatively high number of staff on entry-level employment programs,
their first week of reporting for duty. who are (necessarily) engaged on temporary contracts.

The policy outlines a process that ensures that both supervisors


and employees understand the elements of probation, and their
respective responsibilities when an employee is on probation. It also
provides supporting documentation to complement the process,
including revised three and six monthly probation reports, monthly
reporting for graduates and other full-time trainees, and a Probation
Commencement Form for supervisors to complete and provide to the
probationer within one week of the probationer’s commencement with
Treasury.

New employees have also been advised of the probation process


by DCIS Recruitment when undergoing E-Induction. New employees
are then provided with a further explanation of the probation process
by Treasury human resources (HR) staff at their internal induction
training.
Number 3 – Natural Justice The principles of natural justice are followed in all dealings with
The rules of natural justice to be observed in employees and are reflected in Treasury’s Corporate Governance
all dealings with employees. principles, and all internal policies and procedures.

Managing the Organisation: Treasury People 67


Table 23: Employment Instructions, Annual Reporting Requirements and Agency Action (continued)
Employment Instruction and Annual
Reporting Requirements Agency Action
Number 4 – Performance Management Treasury provides this information through an annual report
CEO is to report annually on management coordinated by OCPE, details of which are published in the State of
training and staff development programs. the Service Report.

CEO shall develop and implement Treasury’s Performance Development Framework (PDF) remains
performance management systems for their a fundamental element in developing our staff. It comprises a
agency. performance management system based on assessment against
well established competencies, six-monthly feedback reviews,
upward feedback from employees to managers and identification of
development opportunities.

To support this framework, Treasury’s HR Unit continues to monitor


individual staff training needs and training that has been undertaken
through its training database, and will soon be providing regular
reports to managers. The PDF framework also guides staff and
mangers in the event that performance recovery is required. HR staff
also support managers in dealing with under-performance issues and
assisting managers and staff in performance recovery efforts.

Management training and staff development activities in 2006‑07 are


reported earlier in this section.
Number 5 – Medical Incapacity Treasury rarely has a need relating to medical incapacity, however
No agency action or reporting requirements where advice is required, managers liaise directly with senior
executives, Treasury’s HR Unit or the Office of the Commissioner for
Public Employment (OCPE) seeking specific advice as required.
Number 6 – Medical Inability Treasury provides this information through an annual report
CEO to provide OCPE with information coordinated by OCPE, details of which are published in the State of
on the extent to which this Employment the Service Report.
Instruction has been used by the agency.
Treasury rarely has a need relating to medical inability, however where
CEO may establish procedures regarding advice is required, managers liaise directly with senior executives,
inability within their agency. Treasury HR or OCPE seeking specific advice as required.
Number 7 – Discipline Treasury provides this information through an annual report
CEO to provide OCPE with information coordinated by OCPE, details of which are published in the State of
on the extent to which this Employment the Service Report.
Instruction has been used by the agency.
During 2006-07, disciplinary action was not taken against any
CEO may establish procedures regarding employee.
discipline within their agency.

68 Annual Report 2006-07


Table 23: Employment Instructions, Annual Reporting Requirements and Agency Action (continued)
Employment Instruction and Annual
Reporting Requirements Agency Action
Number 8 – Grievances Treasury’s Grievance Policy has been in place since 2004 and is
CEO shall establish written grievance setting available to all staff on the internal intranet site. Treasury HR provides
procedures for the agency that should be advice and support to managers in dealing with grievances.
available to employees and outline steps for
There were no grievances lodged in 2006-07.
dealing with grievances.
Number 9 – Now incorporated in Employment
Instruction 1
Number 10 – Employee Records DCIS is responsible for storing all agency personnel files. Treasury
Agencies are required to maintain follows DCIS policy in regard to accessing these files. Any requests to
appropriate employee records and access employee records are made through the Manager HR.
implement procedures for maintaining and
accessing these records.
Number 11 – Equal Employment Opportunity In 2006-07 Treasury’s workplace Equity and Diversity Framework
CEO to devise and implement programs to was finalised. In support of Treasury’s Indigenous Employment and
ensure equal employment opportunities and Career Development Strategy, the framework incorporates agency
outcomes are achieved. requirements under the PSEMA and the Anti-Discrimination Act, in
addition to whole of government strategies, such as Willing and Able,
CEO to report annually on programs and
to promote and encourage our diverse workforce.
initiatives agency has developed. Report
should also include reports detailing These documents are provided to staff through the internal intranet
specific action in relation to Aboriginal site.
Employment and Career Development,
Details of Treasury’s programs and initiatives are reported earlier in
and also measures to enable employees to
this section.
balance work and family responsibilities.
Number 12 – Occupational Health and Safety Treasury’s OH&S Committee comprises staff from AO3 to
CEO to develop programs to ensure management level from all areas of Treasury. The committee deals
employees are consulted in the development with OH&S issues, including safe workplaces and systems and
and implementation of occupational health developing, implementing and monitoring OH&S measures.
and safety programs.
The Committee has developed a site on the internal intranet, which
CEO to report annually on occupation health identifies the OH&S Committee, policies, training opportunities
and safety programs. Records must be kept and related information and links, for example, to the DCIS OH&S
on risk assessment, maintenance control newsletter.
and information, instruction and training
Details of Treasury’s programs and initiatives are provided earlier in
provided to employees.
this section of the annual report.
Number 13 – Code of Conduct New staff are provided with the Code of Conduct as part of their
CEO may issue guidelines regarding commencement package. New staff are also advised of their
acceptance of gifts and benefits to obligations at regular Treasury induction training.
employees. CEO may issue agency specific
Other staff are reminded of their obligations at regular intervals and
Code of Conduct.
with each major exercise or project.

Managing the Organisation: Treasury People 69


Table 23: Employment Instructions, Annual Reporting Requirements and Agency Action (continued)
Employment Instruction and Annual
Reporting Requirements Agency Action
Number 14 – Part-Time Employment Treasury’s Flexible Work Arrangements Policy is available on the
CEO to advise unions on a six-monthly basis internal intranet site.
of number of part-time employees by salary
As at 30 June 2007, ten employees were working part-time, and two
stream.
were working in home-based arrangements.

Future Priorities
• Development of Treasury’s Performance Management System that will provide
managers with the necessary skills and practical assistance to address
underperformance, and will encompass the following elements:
– Performance Development;
– Professional and Career Development; and
– Performance Recovery.

• Further development of the leadership development and mobility program


within Treasury to enhance professional development opportunities,
management capabilities and generally broaden skills and expertise.
• Completion of Treasury’s 2007-09 Indigenous Employment and Career
Development Strategy in accordance with whole of government strategy.
• Work Integrated Learning Scholarship to be expanded to include accounting in 2008.
• Continued emphasis on professional and technical development, including
sponsored study, tailored training and participation in professional body
activities.

70 Annual Report 2006-07


Managing the Organisation:
Financial Performance
Financial Statements – Treasury’s Dual Role
Reporting Preface 72

Northern Territory Treasury Central Holding Authority


Overview 74 Overview 105
Certification of the Financial Statements 80 Certification of the Financial Statements 108
Financial Statements 81 Financial Statements 109
Notes to the Financial Statements 85 Notes to the Financial Statements 113
1. Objectives and Funding 85 1. Objectives and Funding 113
2. Statement of Significant Accounting Policies 85 2. Statement of Significant Accounting Policies 113
3. Operating Statement by Output Group 93 3. Goods and Services Received 118
4. Goods and Services Received 95 Free of Charge
Free of Charge 4. Cash and Deposits 118
5. Gain on Disposal of Assets 95 5. Receivables 118
6. Purchases of Goods and Services 95 6. Payables 118
7. Cash and Deposits 96 7. Borrowings and Advances 118
8. Receivables 96 8. Provisions 119
9. Property, Plant and Equipment 96 9. Superannuation Liability 119
10. Payables 97 10. Equity 121
11. Borrowings and Advances 97 11. Notes to the Cash Flow Statement 122
12. Provisions 98 12. Financial Instruments 122
13. Equity 98 13. Contingent Liabilities and Contingent Assets 125
14. Notes to the Cash Flow Statement 99 14. Events Subsequent to Balance Date 125
15. Financial Instruments 99 15. Write-offs, Postponements and Waivers 125
16. Commitments 101
17. Contingent Liabilities and Contingent Assets 102
18. Events Subsequent to Balance Date 102
19. Accountable Officer’s Trust Account 102
20. Write-offs, Postponements and Waivers 103
21. Schedule of Territory Items 104
Financial Statements – Treasury’s Dual Role

Reporting Preface
Treasury is a central agency, whose primary function is providing advice to
Government. Treasury’s policy role differs from many other agencies, whose
activities predominantly involve the delivery of services directly to the public.
Like all government agencies, Treasury’s activities are mainly funded by output
and capital appropriations, as determined in the annual Budget.

However, Treasury has an important dual role in that it is responsible for its own
budget and accounts, but it also manages the Central Holding Authority (CHA)
for the Government. The CHA is the Territory’s own entity that holds the revenue,
expenses, assets and liabilities of the Territory and has a similar function to that
of a parent company. Revenue is collected by agencies on behalf of the CHA.
Funds are transferred from the CHA to agencies, according to appropriation
amounts, for spending.

Because of its central agency role, Treasury undertakes certain responsibilities


on behalf of government, incurring Territory Government expenses through
Treasury’s Operating Statement. These expenses include the Territory’s GST
administration costs and payment of some community service obligations
on behalf of the Government. Treasury also collects significant levels of
Government revenue on behalf of the CHA for use across government. It is
important, in reviewing Treasury’s financial statements, to understand the
impacts these whole of government expenses and revenues have on Treasury’s
accounts, and how this effect differs from most other agencies.

Necessarily, Treasury’s agency accounts and the CHA are closely interrelated
and reflect whole of government responsibilities beyond Treasury’s internal
arrangements and operations. Figure 11 endeavours to illustrate the relationship
and compare it to the CHA’s relationship with other agencies.

It is worth noting that the Northern Territory Treasury Corporation, as the


Government’s central financing authority, also has a unique financial relationship
with the CHA. However, although it is part of Treasury for organisational
purposes, Treasury Corporation is a government business division and reports
separately under its own legislation.

As a result of Treasury’s dual financial role, this section presents the 2006-07
financial statements for both Treasury and the CHA. A brief overview is provided
with each set of accounts and their accompanying notes to assist the reader in
understanding the performance of each entity and their unique relationship.

72 Annual Report 2006-07


Figure 11: Relationship Between the Central Holding Authority, Treasury and Other Agencies

Central Holding Authority


On behalf of the Territory,
records:
− assets not assigned to
agencies, eg. investments
− liabilities not assigned to
agencies, eg. borrowings,
unfunded superannuation,
Treasury long service leave
Receives:
Other Agencies
Receives revenue, collected for
Receive:
the Territory through agencies:
− unti ,
e d G ST revenue
revenue -source
from Austra
lian Gover nment so me Ter ritor y own

− ow
n-sour es
ce revenue stamp duty, fin
, eg. taxes CHA eg. vehicle

− agency-own revenue,
− tied grants from
eg. interest on loans
Australian Government
to TIO
− agency own-source
revenue, eg. fees for
transfers outp service, charges
u t an d
c ap i t a
l appr
o p r i at i o
n to agenc
ie s
Spends on:
− operations on behalf
of government (74%) On behalf of the Territory:
eg. CSOs, GST − pays interest owed Spend on:
administration − pays out long service − own operations, eg.
payment, fuel subsidy, leave and superannuation salaries, operational
home owner grants benefits costs
and subsidies − some CSOs
− own operations (26%) − grant programs
eg. salaries,
operational costs

Northern Territory Treasury Financial Statements 73


Northern Territory Treasury Financial
Statements 2006-07 – Overview

Treasury’s financial performance in 2006-07 and comparatives for 2005-06 are


reported in four financial statements: the Operating Statement, Balance Sheet,
Statement of Changes in Equity and Statement of Cash Flows. These statements
have been prepared in accordance with the whole of government financial
management framework and the requirements of accounting standards.

Main Results
• Treasury reported an operating surplus of $3.4 million in 2006-07, an
improvement on the Budget estimate of $1.1 million. This was a result of lower
than expected employee expenses and lower requirements for grants and
subsidies.
• Equity of $20.3 million at 30 June 2007 was $5.7 million less than the previous
year, mainly the result of large cash balances transferring to the CHA following
the repayment of the Motor Accidents Compensation Scheme (MACA) loan by
the Territory Insurance Office (TIO).
• Cash at 30 June 2007 was $1.3 million, $11.3 million less than 30 June 2006,
reflecting the equity transfer to the CHA.
• During 2006-07, the Racing, Gaming and Licensing function transferred
from Treasury to the Department of Justice, involving 57 full‑time equivalent
staff and $16.7 million in budget. The financial transfer is backcast in these
statements with effect from 1 July 2006.

Operating Statement – Summary


Table 24: Operating Statement

Operating Statement 2006-07 2005-06 Variation


$000 $000 $000 %
Operating income 101 278 128 221 -26 943 -21.0
Operating expenses 97 880 128 100 -30 220 -23.6
Net operating surplus 3 398 121 3 277 2 708.3

Treasury reported a net operating surplus of $3.4 million for 2006-07, compared


to $0.12 million the previous financial year. This large variation in operating
income and expenses was due to the transfer of Racing, Gaming and Licensing
(RGL) to the Department of Justice, lower than expected employee costs due to
difficulty recruiting to all vacant positions, lower grant and subsidy payments, and
finalisation of the High Court case brought against the Territory by NT Power in
2005-06.

74 Annual Report 2006-07


Operating Income
Table 25: Operating Income
Operating Income 2006-07 2005-06 Variation
$000 $000 $000 %
Taxation revenue 1 708 -1 708 -100.0
Output revenue 97 278 122 933 -25 655 -20.9
Goods and services received free 2 172 2 509 - 337 -13.4
of charge
Other income 1 828 1 071 757 70.7
Total 101 278 128 221 -26 943 -21.0

Treasury’s principal source of revenue (96 per cent or $97 million) is


appropriation transferred from the Central Holding Authority (output revenue).
The remaining $4 million is sourced from (notional) revenue to meet the (notional)
cost of services received free of charge from the Department of Corporate and
Information Services (DCIS) and interest earned on loans to TIO (other income).

The $26.9 million decrease in operating income since 2005-06 relates to lower
output revenue requirements following the RGL transfer from Treasury and higher
output revenue in 2005-06 due to legal costs, including settlement of $12 million
related to the NT Power matter.

Operating Expenses
Table 26: Operating Expenses
Operating Expenses 2006-07 2005-06 Variation
$000 $000 $000 %
Employee expenses 15 212 19 545 - 4 333 - 22.2
Administrative expenses
Purchases of goods and services 7 865 21 153 -13 288 - 62.8
Figure 12: Treasury’s Operating
DCIS services free of charge 2 172 2 509 - 337 - 13.4 Expenses
GST administration 6 314 6 063 251 4.1 Expenses on behalf
of Government
Other expenses 249 287 - 38 - 13.2 $72.1M

Grants and subsidies 66 068 78 543 -12 475 -15.9


Total 97 880 128 100 -30 220 -23.6 74%
Expenses incurred by Treasury during the year were largely whole of
government items paid from Treasury’s budget. Figure 12 shows that only 26%
26 per cent or $26 million of the 2006-07 operating expenses related to
Treasury’s own agency operations, while 74 per cent or $72 million were Territory Treasury-own
Government expenses met by Treasury in its central agency role. As explained expenses
$25.8M
earlier in this section, while expenses on behalf of the Government are recorded
in Treasury’s financial reports, Treasury has no discretion on how these
resources will be spent and cannot divert these resources to its own operations.

Northern Territory Treasury Financial Statements 75


Treasury’s own expenses relate to employee and administrative costs (mostly
for information technology and communications). The expenses on behalf of
the Government arise from grants and subsidies such as community service
obligation payments to maintain uniform tariffs for households and small
businesses ($52.8 million) and payments to the Australian Government for the
Territory’s share of GST administration costs ($6.3 million). Further commentary
is provided below for each category of expense and reasons for variations
during 2006-07.

Employee Expenses
This $4.3 million decrease in employee expenses in 2006-07 reflects vacant
positions not filled as a result of difficulties recruiting professional staff and the
transfer of RGL staff to the Department of Justice.

Administrative Expenses
Administrative expenses were lower in 2006-07 largely due to one-off legal costs
in 2005-06, reported as a 63 per cent variation or $13.3 million reduction in
expenses for this financial year.

Grants and Subsidies


Overall, Treasury paid $66 million in grants and subsidies in 2006‑07, a
decrease of $12.5 million from 2005-06. Almost $53 million of the 2006-07
grants and subsidies related to community service obligation payments to
subsidise uniform tariffs for electricity, water and sewerage for households, small
businesses and Tranche 4 electricity customers.

Also, RGL grants accounted for approximately $9.2 million in 2005-06. First


home owner grants were also lower in 2006-07.

Because of the magnitude of the grants and subsidies element of Treasury


expenditures, it is useful to understand its components in more detail. This
information is presented in Table 27.

76 Annual Report 2006-07


Table 27: Grants and Subsidies
Grants and Subsidies 2006-07 2005-06 Variation
$000 $000 $000 %
Community service obligations 52 805 54 937 -2 132 -3.9
First home owner grant 8 820 10 150 -1 330 -13.1
Fuel subsidy 3 060 3 138 -78 -2.5
Alice Springs Convention 1 115 869 246 28.3
Centre subsidy
Charles Darwin University 268 213 55 25.8
demographic research
grants
RGL grants and subsidies1 0 9 236 -9 236 -100.0
Total 66 068 78 543 -12 475 -15.9
1. The RGL transfer to the Department of Justice is treated with effect from 1 July 2006 for
financial purposes.

Balance Sheet – Summary


Table 28: Balance Sheet
Balance Sheet 2006-07 2005-06 Variation
$000 $000 $000 %
Assets 23 373 32 864 -9 491 -28.9
Liabilities 3 028 4 843 -1 815 -37.5
Equity 20 345 28 021 -7 676 -27.4

Table 28 shows that during 2006-07, assets and liabilities reduced. As the
reduction of assets was larger than the reduction in liabilities this resulted in a
lower level of equity.

Treasury’s assets comprise mostly cash, deposits, advances and investments,


with a small amount of property, plant and equipment which reflect Treasury’s
policy advice rather than a service delivery role.

Excess cash balances were transferred to the CHA following TIO’s repayment
of the Motor Accidents Compensation Scheme (MACA) loan. The excess cash
balances were not needed by Treasury to carry out its normal operations and
were therefore transferred to the CHA as an equity withdrawal.

Lower liabilities were mainly due to fewer outstanding creditors at the end of
2006-07, the repayment to the Australian Government of the Natural Disaster
Relief and Recovery Arrangements loan, and a lower provision for employee
entitlements at the end of the year, with the transfer of RGL staff to the
Department of Justice.

Northern Territory Treasury Financial Statements 77


Statement of Cash Flows – Summary
Table 29: Statement of Cash Flows
Cash Flows 2006-07 2005-06 Variation
$000 $000 $000 %
Cash at beginning of the 12 564 3 936 8 628 219.2
reporting period
Receipts 100 963 127 972 - 27 009 -21.1
Payments 99 201 127 597 -28 396 -22.3
Return on assets -1 368 10 322 -11 690 -113.3
Equity withdrawals 11 660 2 069 9 591 463.6
Cash at end of reporting 1 298 12 564 -11 266 -89.7
period

Figures in Table 29 reflect the expenses and revenues shown in the Operating
Statement summary including necessary accrual adjustments (Table 24). The
reduction in cash at the end of the year, compared to 2005-06, is mainly due to
the equity withdrawal of the MACA loan repayment made to Treasury in 2005-06
and cash payment of accrual items from the 2005-06 financial year.

Collection of Territory Income


Table 30: Total Income Collected by Treasury in 2006-07
Total Income Collected by Treasury 2006-07 % of Total
$000 %
Treasury – Agency Income – reported in Operating 101 278 4
Statement
Territory Income – reported in Note 21 2 534 575 96
Total Income Collected 2 635 853 100

During 2006-07, Treasury collected a total of $2.64 billion in income, however


only 4 per cent of that income ($101 million) flowed back to Treasury for its
own purposes. This 4 per cent or $101 million is the income figure reported in
Treasury’s financial reports, with the remaining 96 per cent (or $2.53 billion)
being Territory income, collected on behalf of, and recorded in, the Central
Holding Authority. Accordingly, Territory income does not form part of income
controlled by Treasury and is therefore not reported in Treasury’s financial
reports. Rather, it is summarised by way of disclosure in Note 21 to the financial
statements.

Table 30 shows the total income collected by Treasury, categorised by agency


income and Territory income, collected and administered on behalf of the
Central Holding Authority.

78 Annual Report 2006-07


Summary
In 2006-07, Treasury came in under budget, reporting a higher than expected
surplus as a result of lower than anticipated employee expenses and lower than
expected grant and subsidy payments. It is important to note that 74 per cent
of Treasury’s expenses are managed on behalf of the Government in Treasury’s
central agency role. Treasury’s surplus was generated from lower costs in both
its central agency and own-agency operations.

The RGL transfer, treated as occurring from the beginning of 2006-07, resulted
in reduced income and expenses for Treasury, with commensurate movement of
the Gambling, Liquor and Other Regulation output group to the Department of
Justice’s budget.

Northern Territory Treasury Financial Statements 79


Certification of the Financial Statements

We certify that the attached financial statements for the Northern Territory
Treasury have been prepared from proper accounts and records in accordance
with the prescribed format, the Financial Management Act and Treasurer’s
Directions.

We further state that the information set out in the Operating Statement, Balance
Sheet, Statement of Changes in Equity, Cash Flow Statement, and notes to and
forming part of the financial statements, presents fairly the financial performance
and cash flows for the year ended 30 June 2007 and the financial position on
that date.

At the time of signing, we are not aware of any circumstances that would render
the particulars included in the financial statements misleading or inaccurate.

Jennifer Prince Catherine Wauchope

Under Treasurer Assistant Under Treasurer


(Corporate and Superannuation)
30 September 2007 30 September 2007

80 Annual Report 2006-07


Operating Statement
For the year ended 30 June 2007

Note 2007 2006


$000 $000
INCOME
Taxation revenue 1 708
Grants and subsidies revenue
Current 30 45
Output revenue 97 278 122 933
Sales of goods and services 316
Interest revenue 1 368 738
Goods and services received free of 4 2 172 2 509
charge
Gain on disposal of assets 5 1
Other income 114 287
TOTAL INCOME 3 101 278 128 221

EXPENSES
Employee expenses 15 212 19 545
Administrative expenses
Purchases of goods and services 6 7 865 21 153
Repairs and maintenance 11 12
Depreciation and amortisation 9 157 209
Other administrative expenses 1
8 486 8 580
Grants and subsidies expenses
Current 13 263 23 256
Capital 350
Community service obligations 52 805 54 937
Interest expenses 81 58
TOTAL EXPENSES 3 97 880 128 100
NET SURPLUS 13 3 398 121
1. Includes DCIS service charges.

The Operating Statement is to be read in conjunction with the notes to the


financial statements.

Northern Territory Treasury Financial Statements 81


Balance Sheet
As at 30 June 2007

Note 2007 2006


$000 $000
ASSETS
Current assets
Cash and deposits 7 1 298 12 564
Receivables 8 440 342
Advances and investments 4 816 3 450
Prepayments 727 355
Other assets -7
Total current assets 7 274 16 711

Non-current assets
Advances and investments 15 423 15 423
Property, plant and equipment 9 676 730
Total non-current assets 16 099 16 153
TOTAL ASSETS 23 373 32 864

LIABILITIES
Current liabilities
Deposits held 151
Payables 10 790 1 391
Borrowings and advances 11 83 411
Provisions 12 1 557 2 076
Total current liabilities 2 430 4 029

Non-current liabilities
Provisions 12 598 814
Total non-current liabilities 598 814
TOTAL LIABILITIES 3 028 4 843
NET ASSETS 20 345 28 021

EQUITY 13
Capital 6 019 17 093
Accumulated funds 14 326 10 928
TOTAL EQUITY 20 345 28 021

The Balance Sheet is to be read in conjunction with the notes to the financial
statements.

82 Annual Report 2006-07


Statement of Changes in Equity
For the year ended 30 June 2007

Note 2007 2006


$000 $000
BALANCE OF EQUITY AT 1 JULY 28 021 29 159

Capital 13
Balance at 1 July 17 094 18 352
Equity injections 1 103 838
Equity withdrawals -12 178 -2 097
Balance at 30 June 6 019 17 093

Accumulated Funds 13
Balance at 1 July 10 928 10 807
Surplus (+)/deficit(-) for the period 3 398 121
Balance at 30 June 14 326 10 928

BALANCE OF EQUITY AT 30 JUNE 20 345 28 021

This Statement of Changes in Equity is to be read in conjunction with the notes


to the financial statements.

Northern Territory Treasury Financial Statements 83


Cash Flow Statement
For the year ended 30 June 2007

Note 2007 2006


$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating receipts
Taxes received 1 708
Grants and subsidies received
Current 30 45
Output revenue received 97 278 122 933
Receipts from sales of goods and services
Other agency receipts 2 287 2 548
Interest received 1 368 738
Total operating receipts 100 963 127 972
Operating payments
Payments to employees 15 964 19 644
Payments for goods and services 17 088 29 352
Grants and subsidies paid
Current 13 263 23 256
Capital 350
Community service obligations 52 805 54 937
Interest paid 81 58
TOTAL OPERATING PAYMENTS 99 201 127 597
NET CASH FROM OPERATING ACTIVITIES 14 1 762 375
CASH FLOWS FROM INVESTING ACTIVITIES
Investing receipts
Repayment of advances 11 108
Total investing receipts 11 108
Investing payments
Purchases of assets 9 54
Advances and investing payments 1 368 732
Total investing payments 1 368 786
NET CASH FROM INVESTING ACTIVITIES -1 368 10 322
CASH FLOWS FROM FINANCING ACTIVITIES
Financing receipts
Proceeds of borrowings 903
Deposits received - 150 - 358
Equity injections 13
Capital appropriation 329 390
Other equity injections 664 325
Total financing receipts 843 1 260
Financing payments
Repayment of borrowings 329 1 232
Equity withdrawals 13 12 174 2 097
Total financing payments 12 503 3 329
NET CASH FROM FINANCING ACTIVITIES -11 660 -2 069
Net increase(+)/decrease(-) in cash held -11 266 8 628
Cash at beginning of financial year 12 564 3 936
CASH AT END OF FINANCIAL YEAR 7 1 298 12 564

The Cash Flow Statement is to be read in conjunction with the notes to the financial statements.

84 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

1. Objectives and Funding


Treasury’s purpose is to promote sustainable fiscal strength and economic
development of the Northern Territory, and contribute to improved social
and fiscal wellbeing for Territorians.

Treasury is predominantly funded by, and is dependent on, the receipt


of Parliamentary appropriations. The financial statements encompass
all funds through which the agency controls resources to carry on its
functions and deliver outputs. For reporting purposes, outputs delivered by
the agency are summarised into several Output Groups. Note 3 provides
summary financial information in the form of an Operating Statement by
Output Group.

2. Statement of Significant Accounting Policies


(a) Basis of Accounting
The financial statements have been prepared in accordance with the
requirements of the Financial Management Act and related Treasurer’s
Directions. The Financial Management Act requires Treasury to prepare
financial statements for the year ended 30 June based on the form
determined by the Treasurer. The form of agency financial statements is to
include:

(i) a Certification of the Financial Statements;

(ii) an Operating Statement;

(iii) a Balance Sheet;

(iv) a Statement of Changes in Equity;

(v) a Cash Flow Statement; and

(vi) applicable explanatory notes to the financial statements.

The form of agency financial statements is consistent with the accrual


budget format and the requirements of Australian Accounting Standards,
including AASB 101, AASB 107 and AAS 29. The format also requires
additional disclosures specific to Territory Government entities.

The financial statements have been prepared using the accrual basis
of accounting, which recognises the effect of financial transactions and
events when they occur, rather than when cash is paid out or received.
As part of the preparation of the financial statements, all intra agency
transactions and balances have been eliminated.

Except where stated, the financial statements have also been prepared in
accordance with the historical cost convention.

Northern Territory Treasury Financial Statements 85


Notes to the Financial Statements
For the year ended 30 June 2007

(b) Agency and Territory Items


The financial statements of Treasury include income, expenses, assets,
liabilities and equity over which Treasury has control (agency items).
Certain items, although managed by the agency, are controlled and
recorded by the Territory rather than the agency (Territory items). Territory
items are recognised and recorded in the Central Holding Authority as
discussed below.

Central Holding Authority


The Central Holding Authority is the ‘parent body’ that represents the
Government’s ownership interest in Government controlled entities.

The Central Holding Authority also records all Territory items, such as
income, expenses, assets and liabilities controlled by the Government and
managed by agencies on behalf of the Government. The main Territory
item is Territory income, which includes taxation and royalty revenue,
Australian Government general purpose funding (such as GST revenue),
fines, and statutory fees and charges.

The Central Holding Authority also holds certain Territory assets not
assigned to agencies, as well as certain Territory liabilities that are not
practical or effective to assign to individual agencies, such as unfunded
superannuation and long service leave.

The Central Holding Authority recognises and records all Territory items
and, as such, these items are not included in the agency’s financial
statements. However, as the agency is accountable for certain Territory
items managed on behalf of Government, these items have been
separately disclosed in Note 21 – Schedule of Territory Items.

(c) Comparatives
Where necessary, comparative information for the 2005-06 financial year
has been reclassified to provide consistency with current year disclosures.
Please note that 2005-06 financial year comparatives include the
Gambling, Liquor and Other Regulation output group, which is no longer a
Treasury function following its transfer to the Department of Justice.

(d) Presentation and Rounding of Amounts


Amounts in the financial statements and notes to the financial statements
are presented in Australian dollars and have been rounded to the nearest
thousand dollars, with amounts of $500 or less being rounded down to
zero.

(e) Changes in Accounting Policies


There have been no changes to accounting policies adopted in 2006-07 as
a result of management decisions.

86 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

(f) Goods and Services Tax


Income, expenses and assets are recognised net of the amount of Goods
and Services Tax (GST), except where the amount of GST incurred on a
purchase of goods and services is not recoverable from the Australian
Taxation Office (ATO). In these circumstances the GST is recognised as
part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the ATO is
included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis.
The GST components of cash flows arising from investing and financing
activities which are recoverable from, or payable to, the ATO are classified as
operating cash flows. Commitments and contingencies are disclosed net
of the amount of GST recoverable or payable unless otherwise specified.

(g) Income Recognition


Income encompasses both revenue and gains.

Income is recognised at the fair value of the consideration received,


exclusive of the amount of goods and services tax (GST). Exchanges
of goods or services of the same nature and value without any cash
consideration being exchanged are not recognised as income.

Output Revenue
Output revenue represents Government funding for agency operations and
is calculated as the net cost of agency outputs after taking into account
funding from agency income. The net cost of agency outputs for Output
Appropriation purposes does not include any allowance for major non‑cash
costs such as depreciation.

Revenue in respect of this funding is recognised in the period in which the


agency gains control of the funds.

Grants and Other Contributions


Grants, donations, gifts and other non-reciprocal contributions are
recognised as revenue when the agency obtains control over the assets
comprising the contributions. Control is normally obtained upon receipt.

Contributions are recognised at their fair value. Contributions of services


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

Sale of Goods
Revenue from the sale of goods is recognised (net of returns, discounts
and allowances) when control of the goods passes to the customer and
specified conditions associated with the sale have been satisfied.

Northern Territory Treasury Financial Statements 87


Notes to the Financial Statements
For the year ended 30 June 2007

Rendering of Services
Revenue from rendering services is recognised on a stage of completion
basis.

Interest Revenue
Interest revenue is recognised as it accrues, taking into account the
effective yield on the financial asset.

Disposal of Assets
A gain or loss on disposal of assets is included as a gain or loss on
the date control of the asset passes to the buyer, usually when an
unconditional contract of sale is signed. The gain or loss on disposal is
calculated as the difference between the carrying amount of the asset
at the time of disposal and the net proceeds on disposal. Refer also to
Note 5.

Contributions of Assets
Contributions of assets and contributions to assist in the acquisition of
assets, being non-reciprocal transfers, are recognised, unless otherwise
determined by Government, as gains when the agency obtains control
of the asset or contribution. Contributions are recognised at the fair value
received or receivable.

(h) Repairs and Maintenance Expenses


Funding is received for repairs and maintenance works associated with
agency assets as part of output revenue. Costs associated with repairs
and maintenance works on agency assets are expensed as incurred.

(i) Interest Expenses


Interest expenses include interest and finance lease charges. Interest
expenses are expensed in the period in which they are incurred.

(j) Cash and Deposits


For the purposes of the Balance Sheet and the Cash Flow Statement,
cash includes cash on hand, cash at bank and cash equivalents. Cash
equivalents are highly liquid short-term investments that are readily
convertible to cash. Cash at bank includes monies held in the Accountable
Officer’s Trust Account that are ultimately payable to the beneficial owner
– refer also to Note 19.

(k) Receivables
Receivables include accounts receivable and other receivables and are
recognised at fair value less any allowance for uncollectible amounts. The
collectibility of receivables is reviewed regularly, and part of this process
is to assess, at reporting date, whether an allowance for doubtful debts is
required.

Accounts receivable are generally settled within 30 days.

88 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

(l) Property, Plant and Equipment


Acquisitions
All items of property, plant and equipment with a cost, or other value, equal
to or greater than $5000 are recognised in the year of acquisition and
depreciated as outlined below. Items of property, plant and equipment
below the $5000 threshold are expensed in the year of acquisition.

The construction cost of property, plant and equipment includes the cost
of materials and direct labour, and an appropriate proportion of fixed and
variable overheads.

Complex Assets
Major items of plant and equipment comprising a number of components
that have different useful lives, are accounted for as separate assets. The
components may be replaced during the useful life of the complex asset.

Subsequent Additional Costs


Costs incurred on property, plant and equipment subsequent to initial
acquisition are capitalised when it is probable that future economic
benefits in excess of the originally assessed performance of the asset will
flow to the agency in future years. Where these costs represent separate
components of a complex asset, they are accounted for as separate
assets and are separately depreciated over their expected useful lives.

Construction (Work in Progress)


As part of the Financial Management Framework, the Department
of Planning and Infrastructure is responsible for managing general
government capital works projects on a whole of government basis.
Therefore appropriation for most capital works is provided directly to the
Department of Planning and Infrastructure and the cost of construction
work in progress is recognised as an asset of that Department. Once
completed, capital works assets are transferred to the agency.

Depreciation and Amortisation


Items of property, plant and equipment, including buildings but excluding
land, have limited useful lives and are depreciated or amortised using the
straight line method over their estimated useful lives.

Amortisation applies in relation to intangible non-current assets with limited


useful lives and is calculated and accounted for in a similar manner to
depreciation.

Northern Territory Treasury Financial Statements 89


Notes to the Financial Statements
For the year ended 30 June 2007

The estimated useful lives for each class of asset are in accordance with
the Treasurer’s Directions and are determined as follows:

2007 2006
Plant and Equipment 3-10 Years 4-10 Years

Assets are depreciated or amortised from the date of acquisition or from


the time an asset is completed and held ready for use.

Impairment of Assets
An asset is said to be impaired when the asset’s carrying amount exceeds
its recoverable amount.

Non-current physical and intangible agency assets are assessed for


indicators of impairment on an annual basis. If an indicator of impairment
exists, the agency determines the asset’s recoverable amount. The asset’s
recoverable amount is determined as the higher of the asset’s depreciated
replacement cost and fair value less costs to sell. Any amount by which the
asset’s carrying amount exceeds the recoverable amount is recorded as
an impairment loss.

Impairment losses are recognised in the Operating Statement unless


the asset is carried at a revalued amount. Where the asset is measured
at a revalued amount, the impairment loss is offset against the Asset
Revaluation Reserve for that class of asset to the extent that an available
balance exists in the Asset Revaluation Reserve.

In certain situations, an impairment loss may subsequently be reversed.


Where an impairment loss is subsequently reversed, the carrying amount
of the asset is increased to the revised estimate of its recoverable amount.
A reversal of an impairment loss is recognised in the Operating Statement
as income, unless the asset is carried at a revalued amount, in which case
the impairment reversal results in an increase in the Asset Revaluation
Reserve.

(m) Operating Leases


Operating lease payments made at regular intervals throughout the term
are expensed when the payments are due, except where an alternative
basis is more representative of the pattern of benefits to be derived
from the leased property. Lease incentives under an operating lease
of a building or office space are recognised as an integral part of the
consideration for the use of the leased asset. The lease incentive is
recognised as a deduction of the lease expense over the term of the lease.

(n) Payables
Liabilities for accounts payable and other amounts payable are carried
at cost which is the fair value of the consideration to be paid in the future
for goods and services received, whether or not billed to the agency.
Accounts payable are normally settled within 30 days.

90 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

(o) Employee Benefits


Provision is made for employee benefits accumulated as a result of
employees rendering services up to the reporting date. These benefits
include wages and salaries and recreation leave. Liabilities arising in
respect of wages and salaries and recreation leave and other employee
benefit liabilities that fall due within twelve months of reporting date are
classified as current liabilities and are measured at amounts expected to
be paid. Non-current employee benefit liabilities that fall due after twelve
months of the reporting date are measured at present value, calculated
using the Government long-term bond rate.

No provision is made for sick leave, which is non-vesting, as the anticipated


pattern of future sick leave to be taken is less than the entitlement accruing
in each reporting period.

Employee benefit expenses are recognised on a net basis in respect of the


following categories:

• wages and salaries, non-monetary benefits, recreation leave, sick leave


and other leave entitlements; and
• other types of employee benefits.
As part of the Financial Management Framework, the Central Holding
Authority assumes the long service leave liabilities of Government
agencies, including Treasury and, as such, no long service leave liability is
recognised in agency financial statements.

(p) Superannuation
Employees’ superannuation entitlements are provided through the:

• Northern Territory Government and Public Authorities Superannuation


Scheme (NTGPASS);
• Commonwealth Superannuation Scheme (CSS); or
• non-government employee nominated schemes for those employees
commencing on or after 10 August 1999.
The agency makes superannuation contributions on behalf of its
employees to the Central Holding Authority or non-government employee
nominated schemes. Superannuation liabilities related to government
superannuation schemes are held by the Central Holding Authority and, as
such, are not recognised in agency financial statements.

Northern Territory Treasury Financial Statements 91


Notes to the Financial Statements
For the year ended 30 June 2007

(q) Contributions by and Distributions to Government


The agency may receive contributions from Government where the
Government is acting as owner of the agency. Conversely, the agency
may make distributions to Government. In accordance with the Financial
Management Act and Treasurer’s Directions, certain types of contributions
and distributions, including those relating to administrative restructures,
have been designated as contributions by, and distributions to,
Government. These designated contributions and distributions are treated
by the agency as adjustments to equity.

The Statement of Changes in Equity and Note 13 provide additional


information in relation to contributions by, and distributions to, Government.

(r) Commitments
Disclosures in relation to capital and other commitments, including
lease commitments, are shown at Note 16 and are consistent with the
requirements contained in AASB 101, AASB 117 and AAS 29.

Commitments are those contracted as at 30 June where the amount of the


future commitment can be reliably measured.

92 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

3. O
perating Statement by Output Group
Financial Territory
Management Economic Commercial2 Revenue
2007 2006 2007 2006 2007 2006 2007 2006
$000 $000 $000 $000 $000 $000 $000 $000
INCOME
Taxation revenue
Grants and subsidies revenue
Current 9 13 6 8 3 7 10
Output revenue 5 849 6 869 64 999 76 627 3 907 5 108 18 592 18 654
Sales of goods and services
Interest revenue 1 368 738
Goods and services received free 630 716 456 448 217 41 543 583
of  charge
Gain on disposal of assets 1
Other income 33 9 94 41 253 211 29 7
TOTAL INCOME 6 521 7 608 65 555 77 124 5 748 6 098 19 171 19 254

EXPENSES
Employee expenses 4 112 4 869 3 237 3 024 1 180 2 972 4 275 4 134
Administrative expenses
Purchases of goods and services 1 340 1 484 1 770 15 109 1 472 1 584 1 969 1 344
Repairs and maintenance 2 2 2 2 1 2 3 2
Depreciation and amortisation 57 72 28 32 13 5 33 43
Other administrative expenses 1
633 725 6 764 6 500 217 41 545 584
Grants and subsidies expenses
Current 269 213 1 115 870 11 879 13 288
Capital
Community service obligations 52 805 54 965
Interest expenses 4 6 3 3 1 71 43
TOTAL EXPENSES 6 148 7 158 64 878 79 848 3 999 5 474 18 775 19 438

NET SURPLUS(+)/DEFICIT(-) 373 450 677 -2 724 1 749 624 396 - 184
1. Includes DCIS service charges.
2. Superannuation has previously been included in the Commercial Services output group,
however from 2006-07, reports separately.

Northern Territory Treasury Financial Statements 93


Notes to the Financial Statements
For the year ended 30 June 2007

3. Operating Statement by Output Group (continued)


Gambling,
Economic Liquor and Other
Superannuation2 Regulation Regulation Total
2007 2006 2007 2006 2007 2006 2007 2006
$000 $000 $000 $000 $000 $000 $000 $000
INCOME
Taxation revenue 1 708 1 708
Grants and subsidies revenue
Current 4 9 1 1 4 30 45
Output revenue 3 401 616 530 534 14 525 97 278 122 933
Sales of goods and services
Interest revenue 1 368 738
Goods and services received free of
charge 282 449 44 43 229 2 172 2 509
Gain on disposal of assets 1 1
Other income 18 6 3 1 12 430 287
TOTAL INCOME 3 705 1 081 578 579 16 478 101 278 128 221

EXPENSES
Employee expenses 2 064 344 265 4 271 15 212 19 535
Administrative expenses
Purchases of goods and services 1 155 159 245 1 377 7 865 21 143
Repairs and maintenance 3 4 11 12
Depreciation and amortisation 23 36 3 3 17 157 208
Other administrative expenses1 284 450 43 43 230 8 486 8 573
Grants and subsidies expenses
Current 8 885 13 263 23 256
Capital 350 350
Community service obligations 52 805 54 965
Interest expenses 2 4 2 81 58
TOTAL EXPENSES 3 531 490 549 556 15 136 97 880 128 100

NET SURPLUS(+)/DEFICIT(-) 174 591 29 23 1 342 3 398 121


1. Includes DCIS service charges.
2. Superannuation has previously been included in the Commercial output group, however from 2006-07, reports separately.
Note: Gambling, Liquor and Other Regulation transferred to the Department of Justice, backcast for 2006-07.
This Operating Statement by Output Group is to be read in conjunction with the notes to the financial statements.

94 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

4. Goods and Services Received Free of Charge


Recognised in the financial statements
Corporate and information services 2 172 2 509
Not recognised in the financial statements
Internal audits and reviews 71
Total 2 172 2 580

5. Gain on Disposal of Assets


Net proceeds from the disposal of non-current assets 1
Gain on the disposal of non-current assets 1

6. Purchases of Goods and Services


The net surplus has been arrived at after charging the following expenses:
Goods and services expenses:
Consultants1 2 273 1 736
Advertising 2
47 68
Marketing and promotion3 86 65
Document production 360 335
Legal expenses 4
953 13 268
Recruitment 5
81 115
Training and study 284 294
Official duty fares 269 425
Travelling allowance 39 57
1. Includes marketing, promotion and information technology consultants.
2. Does not include recruitment advertising or marketing and promotion advertising.
3. Includes advertising for marketing and promotion but excludes marketing and promotion consultant expenses, which are incorporated in
the consultants category.
4. Includes legal fees, claim and settlement costs.
5. Includes recruitment-related advertising costs.

Northern Territory Treasury Financial Statements 95


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

7. Cash and Deposits


Cash on hand 2 4
Cash at bank 1 296 12 560
Total cash and deposits 1 298 12 564

8. Receivables
Current
Accounts receivable 130 77
GST receivables 285 546
Other receivables 25 - 281
Total receivables 440 342

9. Property, Plant and Equipment


Plant and equipment
At cost 1 177 1 130
Less: Accumulated depreciation - 535 - 459
642 671
Computer Hardware
At cost 248 277
Less: Accumulated depreciation - 214 - 218
34 59

Total property, plant and equipment 676 730

96 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

9. Property, Plant and Equipment (continued)


Reconciliations
A reconciliation of the carrying amount of property, plant and equipment
at the beginning and end of 2006-07 is set out below:
Plant and equipment
Carrying amount as at 1 July 671 698
Disposals 38
Depreciation and amortisation - 132 - 182
Additions from asset transfers 103 117
Carrying amount as at 30 June 642 671

Computer hardware
Carrying amount as at 1 July 59 70
Disposals 16
Depreciation and amortisation - 25 - 27
Carrying amount as at 30 June 34 59

10. Payables
Accounts payable 295 572
Accrued expenses 495 819
Total payables 790 1 391

11. Borrowings and Advances


Current
Loans and advances 83 411
Total borrowings and advances 83 411

Northern Territory Treasury Financial Statements 97


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

12. Provisions
Current
Employee benefits
Recreation leave 1 140 1 520
Leave loading 158 227
Other current provisions
Other provisions 259 329
1 557 2 076
Non-current
Employee benefits
Recreation leave 598 814
598 814
Total provisions 2 155 2 890

13. Equity
Equity represents the residual interest in the net assets of the Treasury. The
Government’s ownership interest in Treasury is held in the Central Holding
Authority as described in Note 2(b).

Capital
Balance as at 1 July 17 094 18 352
Equity injections
Capital appropriation 994 390
Equity transfers in 109 123
Equity withdrawals
Capital withdrawal -12 174 -2 096
Equity transfers out -4 -1
Net effect of administrative restructure 325
Balance as at 30 June 6 019 17 093

Accumulated funds
Balance as at 1 July 10 928 10 807
Surplus for the period 3 398 121
Balance as at 30 June 14 326 10 928

98 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

14. Notes to the Cash Flow Statement


Reconciliation of net surplus to net cash from operating activities
Net surplus 3 398 121
Non-cash items:
Depreciation and amortisation 157 209
Asset write-downs 7
Asset donations/gifts -1
Repairs and maintenance – minor new works – non cash 3
Changes in assets and liabilities:
Decrease(+)/increase(-) in receivables 196 - 470
Decrease(+)/increase(-) in prepayments - 371 234
Decrease(+)/increase(-) in other assets - 287 294
Decrease(-)/increase(+) in payables - 600 156
Decrease(-) in provision for employee benefits - 676 - 121
Decrease(-) in other provisions - 58 - 54
Net cash from operating activities 1 762 375

15. Financial Instruments


A financial instrument is a contract that gives rise to a financial asset of
one entity and a financial liability or equity instrument of another entity.
Financial instruments held by Treasury include cash and deposits,
receivables, payables and finance leases. Treasury has limited exposure to
financial risks as discussed below.

(a) Credit Risk


Treasury has limited credit risk exposure (risk of default). In respect of any
dealings with organisations external to Government, Treasury has adopted
a policy of only dealing with creditworthy organisations and obtaining
sufficient collateral or other security where appropriate, as a means of
mitigating the risk of financial loss from defaults.

The carrying amount of financial assets recorded in the financial


statements, net of any allowances for losses, represents Treasury’s
maximum exposure to credit risk without taking account of the value of any
collateral or other security obtained.

Northern Territory Treasury Financial Statements 99


Notes to the Financial Statements
For the year ended 30 June 2007

(b) Net Fair Value


The carrying amount of financial assets and financial liabilities recorded
in the financial statements approximates their respective net fair values.
Where differences exist, these are not material.

(c) Interest Rate Risk


Treasury has limited exposure to interest rate risk as agency financial
assets and financial liabilities, with the exception of investments and
borrowings, are non-interest bearing. Treasury’s exposure to interest
rate risk and the average interest rate for classes of financial assets and
financial liabilities are set out in the following tables. The average interest
rate is based on the outstanding balance at the start of the year.

Fixed Interest Maturity


Weighted
Average Non-
Interest Variable Under 1 1 to 5 Over 5 Interest
Rate Interest year years years Bearing Total
% $000 $000 $000 $000 $000 $000
2007 Financial assets
Cash and deposits 1 298 1 298
Receivables 440 440
Advances and investments 7.215 20 240 20 240
Total financial assets 20 240 1 738 21 978
Financial liabilities
Payables 790 790
Borrowings and advances 2.9 83 83
Total financial liabilities 83 790 873

Net financial assets 20 157 948 21 105

100 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

(c) Interest Rate Risk (continued)


Fixed Interest Maturity
Weighted
Average Non-
Interest Variable Under 1 1 to 5 Over 5 Interest
Rate Interest year years years Bearing Total
% $000 $000 $000 $000 $000 $000
2006 Financial assets
Cash and deposits 12 564 12 564
Receivables 342 342
Advances and investments 6.6 18 873 18 873
Total financial assets 18 873 12 906 31 779
Financial liabilities
Deposits held 151 151
Payables 1 391 1 391
Borrowings and advances 2.6 411 411
Total financial liabilities 411 1 542 1 953

Net financial assets 18 462 11 364 29 826

16. Commitments
Operating Lease Commitments 2007 2006
Treasury leases property under non-cancellable operating leases expiring $000 $000
from 1 to 5 years. Leases generally provide Treasury with a right of
renewal at which time all lease terms are renegotiated, and relate to
items of plant and equipment. Future operating lease commitments not
recognised as liabilities are payable as follows:
Within one year 30 42
Later than one year and not later than five years 36 29
Total lease liability 66 71

Northern Territory Treasury Financial Statements 101


Notes to the Financial Statements
For the year ended 30 June 2007

17. Contingent Liabilities and Contingent Assets


(a) Contingent Liabilities
Workers Compensation Insurance
The Government has indemnified private sector insurers, which provided
workers compensation insurance in the Territory. The indemnity covers
insurers for losses which arise as a result of acts of terrorism. The resultant
contingent liability is unquantifiable.

Finance
The Territory financial management framework is underpinned by
centralised banking arrangements. The sole provider of banking related
services has been granted indemnities under the whole of government
banking contract. The contingent liability resulting from the indemnities is
unquantifiable.

b) Contingent Assets
The Northern Territory Treasury had no contingent assets as at
30 June 2007 or 30 June 2006.

18. Events Subsequent to Balance Date


No events have arisen between the end of financial year and the date
of this report that require adjustment to, or disclosure in, these financial
statements.

19. Accountable Officer’s Trust Account


In accordance with section 7 of the Financial Management Act, an
Accountable Officer’s Trust Account has been established for the receipt
of money to be held in trust. A summary of activity is shown below.

Opening Closing
Balance Balance
Nature of Trust Money 1 July 2006 Receipts Payments 30 June 2007
$000 $000 $000 $000
NT TAB 73 73
Unclaimed money 78 78
Total 151 151

102 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

20. Write-offs, Postponements and Waivers


Agency Agency Territory Items Territory Items
No. of No. of No. of No. of
2007 Trans. 2006 Trans. 2007 Trans. 2006 Trans.
$000 $000 $000 $000
Write-offs, postponements and waivers under
the Financial Management Act
Amounts written off, postponed and waived by
delegates
Irrecoverable amounts payable to the Territory 5 16 6 7
or an agency written off
Total written off, postponed and waived by 5 16 6 7
delegates

Amounts written off, postponed and waived by


the Treasurer
Irrecoverable amounts payable to the Territory 213 10 131 6
or an agency written off
Postponement or waiver of right to receive or 2 816 6 1 356 3
recover money or property
Total written off, postponed and waived by the 3 029 16 1 487 9
Treasurer

Total write-offs, postponements and waivers 3 034 32 1 493 16


authorised

Northern Territory Treasury Financial Statements 103


Notes to the Financial Statements
For the year ended 30 June 2007

21. Schedule of Territory Items


The following Territory items are managed by the Northern Territory
Treasury on behalf of the Government and are recorded in the Central
Holding Authority (CHA) (refer Note 2(b)).

2007 2006
$000 $000
TERRITORY INCOME AND EXPENSES
Income
Taxation revenue 432 140 439 416
Grants and subsidies revenue
GST revenue 2 015 336 1 850 175
Current 6 790 21 871
Sales of goods and services
Fees from regulatory services 2 659 1 967
Royalties and rents 76 203 51 386
Other income -7 1 361
Total income 2 533 121 2 366 176

Expenses
CHA income transferred 2 533 121 2 366 176
Total expenses 2 533 121 2 366 176

Revenue less expenses

TERRITORY ASSETS AND LIABILITIES


Assets
Accounts receivable 1 458 679
Taxes receivable 50 370 44 050
Other receivables 352
Total assets 51 828 45 081

Liabilities
CHA income payable 51 828 44 729
Unearned CHA income 352
Total liabilities 51 828 45 081

Net assets

104 Annual Report 2006-07


Central Holding Authority Financial Statements
2006-07 – Overview

This section of the report provides an analysis of the financial performance of


the Central Holding Authority (CHA).

The CHA is a key element of the Territory’s financial management framework


and is similar in role to the parent entity in a group of companies. It records on
behalf of the Territory:

• assets which are not assigned to agencies, such as the Territory’s investment
portfolio. The CHA does not hold physical assets such as land and buildings;
• liabilities where it is not practical or effective to assign them to individual
agencies. The CHA has two major liabilities – Territory borrowings and
unfunded employee liabilities. Territory borrowings comprise the stock of
general government debt that has accumulated since Self Government and
has been used to fund the construction of major infrastructure in the Territory
over this period. Unfunded employee liabilities are those which have accrued
but are not yet due to be paid, such as superannuation and long service leave;
• revenue collected by the CHA is regarded as Territory revenue, the main types
being taxation, untied grants (predominantly GST revenue) and fines; and
• expenses where the main expense is the payment of appropriation to
agencies. Other significant expenses are interest on Territory borrowings,
interest on cash balances of government business divisions and the
government owned corporation, and the centrally-managed employee costs of
superannuation and long service leave.
The significant movements in these items are analysed below and incorporated
in the Operating Statement, Balance Sheet, Statement of Changes in Equity and
Cash Flow Statement of the accompanying financial statements.

Main Results
• The CHA reported an operating surplus of $29 million in 2006-07, compared
with $218 million in 2005-06. The reduction was a result of increased
superannuation expenses following actuarial review, partially offset by
increased revenue, predominantly GST.
• The Conditions of Service Reserve (COSR) investments ($422 million) earned
an overall return of 16.7 per cent during 2006-07, 1.4 percentage points above
the benchmark.
• Equity increased by $29 million to $1055 million in 2006-07, compared with
$1026 million in 2005-06.
• The CHA made additional contributions of $150 million towards the Territory’s
superannuation liability, invested within the COSR.

Central Holding Authority Financial Statements 105


Operating Statement
The CHA reported a net operating surplus of $29 million compared with a
surplus of $218 million in 2006. The decline in operating surplus in 2007 resulted
Figure 13: Components of CHA
largely from an increase in superannuation expenses following actuarial review
Operating Revenue
and appropriation to agencies reflecting increased service provision across
% Revenue
government. This was partially offset by increases in revenue, predominantly 80

related to GST received from the Australian Government. 70

60

Operating Revenue 50

The CHA has revenue in excess of $2.7 billion of which the majority is Australian 40

Government grants, predominantly GST and, to a lesser extent, Territory own- 30

source revenue. 20

10
Total operating revenue increased by $180 million or 7 per cent compared with 0
GST Tax Royalties, Employer Other
the previous year (see Table 31). Figure 13 indicates that the proportion of etc super
revenue by category has remained constant. 2006-07 2005-06

Table 31: Significant Components of the $180 million Revenue Increase


2006-07 2005-06 Variation Reason for Variation
$M $M $M
GST revenue 2 015 1 850 165 Increased GST revenue collected by the Australian
Government combined with higher growth in
Territory population
Payroll tax 187 181 6 Growth in employment across the Territory
Stamp duty on 113 137 - 24 2005-06 included a number of one-off transactions
conveyances totalling $50 million; 2006-07 shows continued
activity in business conveyancing albeit from a lower
base
Dividends and income tax 49 58 -9 Reduced amounts received from government trading
equivalents entities, mainly Power and Water Corporation
Mining royalties 76 51 25 Increased commodity prices and strong production

Operating Expenses Figure 14: Components of CHA


The CHA had operating expenses of $2.7 billion in 2006-07, however the bulk of Operating Expenses
these were not for its own operations. In excess of 78 per cent was provided as % Expenses
90
appropriation to agencies to enable them to deliver government services across
80
the Territory. A large proportion of the remainder relates to superannuation 70
expenses and interest on borrowings. 60
50
Total operating expenses increased by $369 million or 16 per cent compared to 40

the previous year, largely the result of an increase in superannuation expense 30


20
following actuarial reassessment and appropriation to agencies (see Table 32).
10
Figure 14 indicates that the relative proportion of expenses by category, other 0
Output Interest Super Long Other
than superannuation expense, has not changed significantly. -10 service leave
2006-07 2005-06

106 Annual Report 2006-07


Table 32: Significant Components of the $369 million Expenses Increase
2006-07 2005-06 Variation Reason for variation
$M $M $M
Output appropriation 2 128 2 073 55 Increase to enable agencies to provide services across
the Territory
Superannuation expense 425 111 314 Increase following actuarial review

Balance Sheet
As at 30 June 2007 net assets, being total assets less total liabilities, increased
by $29 million to $1055 million, compared with $1026 million in 2005-06.

Figures 15 and 16 compare the relative components of both assets and liabilities
with the previous year.

The most significant movement in assets relates to the increase in Advances


and Investments of $212 million resulting from increased monies available for
investment.

In relation to liabilities, the most significant upward movement was an increase


of $314 million in the level of superannuation liability following actuarial
reassessment, largely related to the Commonwealth Superannuation Scheme.

Figure 15: Components of CHA % Assets


100
Operating Assets
80

60

40

20

0
Cash, Receivables Advances, Investments
etc etc in agencies
2006-07 2005-06

Figure 16: Components of CHA


Operating Liabilities % Liabilities
80

60

40

20

0
Deposits Borrowings Provisions Super
held and advances liability
2006-07 2005-06

Central Holding Authority Financial Statements 107


Certification of the Financial Statements

We certify that the attached financial statements for the Central Holding Authority
have been prepared from proper accounts and records in accordance with the
prescribed format, the Financial Management Act and Treasurer’s Directions.

We further state that the information set out in the Operating Statement, Balance
Sheet, Statement of Changes in Equity, Cash Flow Statement, and notes to and
forming part of the financial statements, presents fairly the financial performance
and cash flows for the year ended 30 June 2007 and the financial position on
that date.

At the time of signing, we are not aware of any circumstances that would render
the particulars included in the financial statements misleading or inaccurate.

Jennifer Prince David Braines-Mead


Under Treasurer Senior Director Financial
Management
30 September 2007 30 September 2007

108 Annual Report 2006-07


Operating Statement
For the year ended 30 June 2007

Note 2007 2006


$000 $000
INCOME
Taxation revenue 452 694 457 561
Grants and subsidies revenue
GST revenue 2 015 336 1 850 175
Current 6 790 21 871
Capital 8 436
Sales of goods and services
Fees from regulatory services 13 638 11 810
Interest revenue 32 490 18 786
Goods and services received free of 3 15 16
charge
Unrealised gain on securities marked to 37 989 38 995
market
Royalties rents and dividends 103 439 89 469
Employer superannuation contribution 45 807 46 289
Other Income 7 272 8 862
TOTAL INCOME 2 723 907 2 543 834

EXPENSES
Long service leave expense 25 267 28 523
Superannuation expense 9 424 970 111 496
Workers compensation expense - 2 950 - 5 100
Administrative expenses 1 419 478
Borrowing expenses
Interest expense 118 674 117 379
Output expense 2 127 603 2 073 400
TOTAL EXPENSES 2 694 983 2 326 176
NET SURPLUS 10 28 924 217 658

The Operating Statement is to be read in conjunction with the notes to the financial statements.

Central Holding Authority Financial Statements 109


Balance Sheet
As at 30 June 2007

Note 2007 2006


$000 $000
ASSETS
Current assets
Cash and deposits 4 61 387 37 755
Receivables 5 65 349 71 360
Advances and investments 775 916 513 983
Prepayments 259 243
Total current assets 902 912 623 340
Non-current assets
Advances and investments 40 000 90 000
Investments in agencies 4 342 803 4 186 339
Total non-current assets 4 382 803 4 276 339
TOTAL ASSETS 5 285 715 4 899 679

LIABILITIES
Current liabilities
Deposits held 327 656 289 446
Payables 6 7 384 5 522
Borrowings and advances 7 861 799
Provisions 8 135 516 130 258
Superannuation liability 9 126 614 108 899
Total current liabilities 598 031 534 924
Non-current liabilities
Borrowings and advances 7 1 598 294 1 599 067
Provisions 8 73 610 75 310
Superannuation liability 9 1 960 773 1 664 297
Total non-current liabilities 3 632 677 3 338 674
TOTAL LIABILITIES 4 230 709 3 873 598
NET ASSETS 1 055 005 1 026 081

EQUITY
Capital 590 252
Reserves
Accumulated funds 1 055 005 435 829
TOTAL EQUITY 10 1 055 005 1 026 081

The Balance Sheet is to be read in conjunction with the notes to the financial statements.

110 Annual Report 2006-07


Statement of Changes in Equity
For the year ended 30 June 2007

Note 2007 2006


$000 $000
BALANCE OF EQUITY AT 1 JULY 1 026 081 808 423

Capital
Balance at 1 July 590 252 590 252
Movement in year1 - 590 252
Balance at 30 June 10 590 252

Accumulated Funds
Balance at 1 July 435 829 218 171
Movement in year 1
590 252
Surplus for the period 28 924 217 658
Balance at 30 June 10 1 055 005 435 829

BALANCE OF EQUITY AT 30 JUNE 1 055 005 1 026 081


1. A change in classification in preparation for adoption of Accounting Standard AASB 1049.

This Statement of Changes in Equity is to be read in conjunction with the notes


to the financial statements.

Central Holding Authority Financial Statements 111


Cash Flow Statement
For the year ended 30 June 2007

Note 2007 2006


$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating receipts
Taxes received 447 956 462 953
Grants and subsidies received
GST received 2 015 336 1 850 175
Current 6 790 21 871
Capital 8 436
Royalties rent and dividends 117 008 97 717
Agency superannuation contributions 45 807 46 289
Other agency receipts 20 794 20 602
Interest received 32 914 18 779
Total operating receipts 2 695 042 2 518 386
Operating payments
Long service leave 18 776 18 101
Superannuation benefits 110 779 99 809
Payments for goods and services 2 520 510
Interest paid 118 387 117 268
Output payments 2 127 603 2 073 400
Total operating payments 2 378 064 2 309 088
Net cash from(+)/used(-) in operating 11 316 978 209 298
activities

CASH FLOWS FROM INVESTING ACTIVITIES


Investing receipts
Equity sales or withdrawals 25 032 20 386
Total investing receipts 25 032 20 386
Investing payments
Advances and investing payments 174 419 147 676
Capital appropriation 176 525 189 399
Equity acquisitions 4 971 19 916
Total investing payments 355 915 356 991
Net cash from(+)/used(-) in investing activities - 330 883 - 336 605

CASH FLOWS FROM FINANCING ACTIVITIES


Financing receipts
Proceeds of borrowings 228 249
Deposits received 38 211 147 120
Total financing receipts 38 439 147 369
Financing payments
Repayment of borrowings - 901 - 1 011
Total financing payments - 901 - 1 011
Net cash from(+)/used(-) in financing activities 37 538 146 358
Net increase(+)/decrease(-) in cash held 23 632 19 051
Cash at beginning of financial year 37 755 18 704
CASH AT END OF FINANCIAL YEAR 4 61 387 37 755
The Cash Flow Statement is to be read in conjunction with the notes to the
financial statements.

112 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

1. Objectives and Funding


The Central Holding Authority (CHA) is the ‘parent body’ that represents
the Government’s ownership interest in Government controlled entities.

The CHA also records all Territory items. Territory items are revenues,
expenses, assets and liabilities controlled by the Government and
managed by agencies on behalf of the Government. The main Territory
item is Territory revenue, which includes taxation and royalty revenue,
Australian Government general purpose funding (such as GST revenue),
fines and statutory fees and charges.

The CHA also holds certain Territory assets not assigned to agencies as
well as certain Territory liabilities that are not practical or effective to assign
to individual agencies.

Territory items
The CHA recognises all Territory items, therefore the Territory items
managed by agencies on behalf of the Government are not recorded
in their own financial statements. However, as agencies are accountable
for the Territory items they manage on behalf of Government, these
items have been separately disclosed in the notes of agency financial
statements.

2. Statement of Significant Accounting Policies


(a) Basis of Accounting
The financial statements have been prepared in accordance with the
requirements of the Financial Management Act and related Treasurer’s
Directions. The Financial Management Act requires the CHA to prepare
financial statements for the year ended 30 June 2007 based on the form
determined by the Treasurer. The form of agency financial statements is to
include:

i) a Certification of the Financial Statements;


ii) an Operating Statement;
iii) a Balance Sheet;
iv) a Statement of Changes in Equity;
v) a Cash Flow Statement; and
vi) applicable explanatory notes to the financial statements.
The form of agency financial statements is consistent with the accrual
budget format and the requirements of Australian Accounting Standards,
including AASB 101, AASB 107 and AAS 29. The format also requires
additional disclosures specific to Territory Government entities.

The financial statements have been prepared using the accrual basis
of accounting, which recognises the effect of financial transactions and
events when they occur, rather than when cash is paid out or received.

Central Holding Authority Financial Statements 113


Notes to the Financial Statements
For the year ended 30 June 2007

Except where stated, the financial statements have also been prepared in
accordance with the historical cost convention.

(b) Comparatives
Where necessary, comparative information for the 2005-06 financial year
has been reclassified to provide consistency with current year disclosures.

(c) Presentation and Rounding of Amounts


Amounts in the financial statements and notes to the financial statements
are presented in Australian dollars and have been rounded to the nearest
thousand dollars, with amounts of $500 or less being rounded down to
zero.

(d) Changes in Accounting Policies


There have been no changes to accounting policies adopted in 2006-07 as
a result of management decisions.

(e) Goods and Services Tax


Income, expenses and assets are recognised net of the amount of goods
and services tax (GST), except where the amount of GST incurred on a
purchase of goods and services is not recoverable from the Australian
Taxation Office (ATO). In these circumstances the GST is recognised as
part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the ATO is
included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis.
The GST components of cash flows arising from investing and financing
activities which are recoverable from, or payable to, the ATO are classified
as operating cash flows. Commitments and contingencies are disclosed
net of the amount of GST recoverable or payable unless otherwise
specified.

(f) Income Recognition


Income encompasses both revenue and gains.

Income is recognised at the fair value of the consideration received,


exclusive of the amount of GST. Exchanges of goods or services of the
same nature and value without any cash consideration being exchanged
are not recognised as income.

114 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

Grants and Other Contributions


Grants, donations, gifts and other non-reciprocal contributions are
recognised as revenue when the agency obtains control over the assets
comprising the contributions. Control is normally obtained upon receipt.

Contributions are recognised at their fair value. Contributions of services


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

Taxation
Territory taxation is recognised when the underlying transaction or
event, which gives rise to the right to collect revenue, occurs and can be
measured reliably.

Government-assessed revenues, including payroll tax and stamp duty,


are recognised when a taxpayer’s self-assessment is received. Additional
revenues are recognised for assessments subsequently issued following
review of returns lodged by taxpayers.

In respect of taxation balances from government trading entities under


the National Tax Equivalent Regime, only the current taxation receivable is
recognised in these statements.

Revenue from regulatory fees and fines is recognised at the time the fine or
regulatory fee is issued.

Sale of Goods
Revenue from the sale of goods is recognised (net of returns, discounts
and allowances) when control of the goods passes to the customer and
specified conditions associated with the sale have been satisfied.

Rendering of Services
Revenue from rendering services is recognised on a stage of completion
basis with respect to the contract.

Interest Revenue
Interest revenue is recognised as it accrues, taking into account the
effective yield on the financial asset.

Dividends
Dividends revenue is recognised when control of the right to receive the
dividend receivable from government trading entities is obtained by CHA.

(g) Interest Expenses


Interest expenses include interest charges on borrowings and interest paid
to government business divisions on cash holdings and are expensed in
the period in which they are incurred.

Central Holding Authority Financial Statements 115


Notes to the Financial Statements
For the year ended 30 June 2007

(h) Cash and Deposits


For the purposes of the Balance Sheet and the Cash Flow Statement, cash
includes cash on hand, cash at bank and cash equivalents controlled by
the CHA. Cash equivalents are highly liquid short-term investments that are
readily convertible to cash.

Bank overdrafts are carried at the principal amount.

(i) Receivables
Receivables include accounts receivable and other receivables and are
recognised at fair value less any allowance for uncollectible amounts. The
collectibility of receivables is reviewed regularly, and part of this process
is to assess, at reporting date, whether an allowance for doubtful debts is
required.

Accounts receivable are generally settled within 30 days and other


receivables within 30 days.

(j) Advances and Investments


Advances include investment in financial assets for policy purposes and
are recorded at cost.

Investments include investments in financial assets for liquidity


management purposes. Securities and investments are recorded at net
market value, after deducting estimated costs of realisation at reporting
date.

(k) Investments in Agencies


This represents the contributed capital balances of the Territory’s
investment in all its controlled entities.

(l) Deposits Held


These represent amounts held on behalf of agencies, which are
subsequently invested on their behalf.

(m) Payables
Liabilities for accounts payable and other amounts payable are carried at
cost which is the fair value of the consideration to be paid in the future for
goods and services received, whether or not billed to the CHA.

Accounts payable are normally settled within 30 days.

116 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

(n) Provisions
Employee Benefits
As part of the introduction of Working for Outcomes, the CHA assumed
the long service leave liabilities of Government agencies with the actual
liability being transferred from agency ledgers during 2002-03.

Liabilities arising in respect of long service leave due within twelve months
of the reporting date are measured at their nominal amounts based
on remuneration rates which are expected to be paid when the liability
is settled. All other liabilities are measured at the present value of the
estimated future cash outflow to be made in respect of services provided
by employees up to the reporting date.

Workers Compensation and Other Provisions


Workers compensation and other provisions are measured at the present
value of management’s best estimate of the expenditure required to settle
the present obligation at the balance sheet date.

(o) Superannuation Liability


Employees’ superannuation entitlements are provided through the:
• Northern Territory Government and Public Authorities’ Superannuation
Scheme (NTGPASS);
• Commonwealth Superannuation Scheme (CSS); or
• non-government employee nominated schemes for those employees
commencing on or after 10 August 1999.

Liability for government superannuation is met directly by the CHA.


Agencies make superannuation contributions on behalf of their employees
to the CHA or the non-government employee nominated schemes.

(p) Borrowings and Advances


Borrowings represent funds raised for liquidity management purposes
through the Northern Territory Treasury Corporation.

Advances reflect loans received for policy purposes.

Central Holding Authority Financial Statements 117


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

3. Goods and Services Received Free of Charge


Corporate and information services 15 16
Total 15 16

4. Cash and Deposits


Cash and short-term deposits 61 387 37 755
Total cash and deposits 61 387 37 755

5. Receivables
Taxes receivable 40 046 35 502
Royalties, rents and dividends receivable 21 867 32 983
Interest receivables 1 325 1 312
Other receivables 2 111 1 564
Total receivables 65 349 71 360

6. Payables
Current
Accounts payable 168 1 046
Other payables 7 216 4 476
7 384 5 522

7. Borrowings and Advances


Current
Loans and advances 861 799
861 799
Non-current
Loans and advances 1 598 294 1 599 067
1 598 294 1 599 067
Total borrowings and advances 1 599 156 1 599 867

118 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

8. Provisions
Current
Long service leave 120 923 116 222
Workers compensation 14 593 14 036
135 516 130 258
Non-current
Long service leave 32 453 30 646
Workers compensation 41 157 44 664
73 610 75 310
Total provisions 209 126 205 568
Reconciliations of provisions – workers compensation and other
Balance as at 1 July 58 700 63 800
Additional provisions recognised 11 643 8 936
Reductions arising from payments - 14 593 - 14 036
Balance as at 30 June 55 750 58 700

9. Superannuation Liability
Employees’ superannuation entitlements are provided through the:

• NTGPASS;
• CSS; or
• non-government employee nominated schemes for those employees
commencing on or after 10 August 1999.
Liability for government superannuation is met directly by the CHA.
Agencies make superannuation contributions on behalf of their employees
to the CHA or the non-government employee nominated schemes.

These benefits are largely unfunded and the liabilities for future payments
are provided for at reporting date. The liabilities under these schemes have
been calculated annually by various actuaries using the projected unit cost
method.

The expected future payments are discounted to present value using


market yields at the reporting date on national government bonds with
terms to maturity that match, as closely as possible, the estimated future
cash outflows.

Central Holding Authority Financial Statements 119


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
% %

9. Superannuation Liability (continued)


Key assumptions
Key assumptions as at balance date and for following year expense:
Discount rate (gross of tax) 6.25 5.90
Salary rate 4.50 3.50
Expected return on plan assets 6.00 6.00
Inflation (pensions) 2.50 2.50
Imputed cost of interest 5.90 5.20

2007 2006
$000 $000
Balance sheet amounts
The amounts recognised in the balance sheet are determined as follows:
Total defined benefit obligations 2 144 450 1 821 792
Scheme assets 57 063 48 596
Deficit(+)/surplus(-) 2 087 387 1 773 196
Current net liability 126 614 108 899
Non-current net liability 1 960 773 1 664 297
Net liability 2 087 387 1 773 196
Movement in net liability
Net liability in balance sheet at end of prior year 1 773 196 1 761 509
Expense recognised in operating statement 424 970 111 496
Benefits paid - 110 779 - 99 400
Other - 409
Net liability in balance sheet at end of year 2 087 387 1 773 196
Plan assets
The major categories of plan assets are as follows:
Investment trust 56 880 47 705
Other 183 891
Total 57 063 48 596

120 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

9. Superannuation Liability (continued)


Funded status
Defined benefit obligations:
Funded 57 063 48 596
Unfunded 2 087 387 1 773 196
Total 2 144 450 1 821 792
Income statement
The amounts recognised in the income statement are as follows:
Interest cost 104 800 96 103
Net actuarial losses(+)/gains(-) recognised in year 236 920 - 55 600
Past service cost 83 250 70 993
Total included in superannuation expense 424 970 111 496

10. Equity
Capital
Balance as at 1 July 590 252 590 252
Equity transfer out to accumulated funds1 - 590 252
Balance as at 30 June 590 252
Accumulated funds
Balance as at 1 July 435 829 218 171
Equity transfer in from capital1 590 252
Surplus for the period 28 924 217 658
Balance as at 30 June 1 055 005 435 829

1. A change in classification in preparation for adoption of Accounting Standard AASB 1049.

Central Holding Authority Financial Statements 121


Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

11. Notes to the Cash Flow Statement


Reconciliation of cash
The total of agency cash and deposits of $61.4 million (2006: $37.8 million)
recorded in the Balance Sheet is consistent with that recorded as ‘cash’ in the
Cash Flow Statement.
Reconciliation of net surplus(+)/deficit(-) to net cash from operating activities
Net surplus(+) 28 924 217 658
Changes in assets and liabilities:
Unrealised gain(-)/loss (+)on securities marked to market - 37 989 - 38 995
Amortisation on investments 475 370
Gain on extinguishment - 38 - 53
Decrease(+)/increase(-) in receivables 6 011 11 253
Decrease(+)/increase(-) in prepayments - 16 - 243
Decrease(-)/increase(+) in payables 1 863 878
Decrease(-)/increase(+) in provision for employee benefits 320 699 23 529
Decrease(-)/increase(+) in other provisions - 2 950 - 5 100
Net cash from operating activities 316 978 209 298

12. Financial Instruments


A financial instrument is a contract that gives rise to a financial asset of
one entity and a financial liability or equity instrument of another entity.
Financial instruments held by the CHA include cash and deposits,
receivables, payables and finance leases. The CHA has limited exposure
to financial risks as discussed below.

(a) Credit Risk


The CHA has limited credit risk exposure (risk of default). In respect of
any dealings with organisations external to Government, the agency has
adopted a policy of only dealing with creditworthy organisations and
obtaining sufficient collateral or other security where appropriate, as a
means of mitigating the risk of financial loss from defaults.

The carrying amount of financial assets recorded in the financial


statements, net of any allowances for losses, represents the CHA’s
maximum exposure to credit risk without taking account of the value of any
collateral or other security obtained.

122 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

(b) Net Fair Value


The carrying amount of financial assets and financial liabilities recorded
in the financial statements approximates their respective net fair values.
Where differences exist, these are not material.

(c) Interest Rate Risk


The CHA’s exposure to interest rate risk and the average interest rate
for classes of financial assets and financial liabilities are set out in the
following tables.

The average interest rate is based on the outstanding balance at the start
of the year.

Fixed Interest Maturity


Weighted
Average Non-
Interest Variable Under 1 Over 1 to Over 2 to Over 3 to Over 4 to Over 5 Interest
Rate Interest Year 2 Years 3 Years 4 Years 5 Years Years Bearing Total
% $000 $000 $000 $000 $000 $000 $000 $000 $000
2007 Financial assets
Cash and deposits 6.25 61 387 61 387
Receivables 65 349 65 349
Advances and investments
Unit trust investments 421 908 421 908
Discount securities 6.39 324 099 324 099
Floating rate notes 6.56 5 000 5 000 5 000 15 000
Fixed interest 4.03 24 958 9 983 19 967 54 908
securities
Total financial assets 61 387 354 057 14 983 19 967 5 000 487 257 942 651

Financial liabilities
Deposits held 327 656 327 656
Payables 7 384 7 384
Borrowings and 6.61 390 000 100 000 295 000 305 000 82 900 426 256 1 599 156
advances

Total financial liabilities 390 000 100 000 295 000 305 000 82 900 426 256 335 041 1 934 197

Net financial assets(+)/ 61 387 -35 942 -85 017 -275 033 -305 000 -77 900 -426 256 152 217 -991 544
liabilities(-)

Central Holding Authority Financial Statements 123


Notes to the Financial Statements
For the year ended 30 June 2007

12. Financial Instruments (continued)


Fixed Interest Maturity
Weighted
Average Non-
Interest Variable Under 1 Over 1 to Over 2 to Over 3 to Over 4 to Over 5 Interest
Rate Interest Year 2 Years 3 Years 4 Years 5 Years Years Bearing Total
% $000 $000 $000 $000 $000 $000 $000 $000 $000
2006 Financial assets
Cash and deposits 5.75 37 755 37 755
Receivables 71 360 71 360
Advances and investments
Unit trust investments 233 483 233 483
Discount 5.92 280 500 280 500
securities
Floating rate notes 6.14 5 000 5 000 10 000
Fixed interest 5.80 35 000 25 000 20 000 80 000
securities
Total financial assets 37 755 280 500 35 000 5 000 30 000 20 000 304 843 713 098

Financial liabilities
Deposits held 289 446 289 446
Payables 5 522 5 522
Borrowings and 9.00 258 771 390 000 100 000 295 000 128 900 427 195 1 599 866
advances

Total financial liabilities 258 771 390 000 100 000 295 000 128 900 427 195 294 968 1 894 834

Net financial assets(+)/ 37 755 21 729 -355 000 -95 000 -265 000 -108 900 -427 195 9 875 -1 181 736
liabilities(-)

124 Annual Report 2006-07


Notes to the Financial Statements
For the year ended 30 June 2007

13. Contingent Liabilities and Contingent Assets


The CHA had no contingent liabilities or contingent assets as at 30 June
2007 or 30 June 2006.

14. Events Subsequent to Balance Date


No events have arisen between the end of the financial year and the date
of this report that require adjustment to, or disclosure, in these financial
statements.

15. Write-offs, Postponements and Waivers


The CHA had no write-offs, postponements or waivers in 2006-07 or
2005‑06.

Central Holding Authority Financial Statements 125


Appendixes, Glossary and Lists
Appendixes
1. Directory 128
2. Functions of Treasury 130
3. Treasury’s Organisational Chart 133
4. Corporate Governance Committees 134
5. Membership of Boards and Committees 137
6. Legislation Administered 139
7. Legislative Changes 2006-07 140
8. Competitive Neutrality 142
9. Publications 143
Glossary 146
List of Tables and Figures 149
Appendix 1:
Directory

Northern Territory Treasury Director Financial Reporting Director Social Analysis


38 Cavenagh Street Lisa Strohfeldt Jenny Coccetti
GPO Box 1974 6th Floor, Cavenagh House 5th Floor, Cavenagh House
Darwin NT 0801 Tel (08) 8999 6754 Tel (08) 8999 6255
(unless otherwise stated, please use Fax (08) 8999 5095 Fax (08) 8999 6446
this postal address) Director Budget Development Director Economic Policy
General Enquiries Sibylle Brautigam, Amanda Balchin Rodney McComiskie
Tel (08) 8999 7406 6th Floor, Cavenagh House 5th Floor, Cavenagh House
Tel (08) 8999 5586 Tel (08) 8999 6428
Business hours: 8:00 am to 4:30 pm
Fax (08) 8999 5095 Fax (08) 8999 6446
Executive Director Economic Frameworks
Economic
Under Treasurer Craig Graham
Assistant Under Treasurer (Economic)
Jennifer Prince 5th Floor, Cavenagh House
Tony Stubbin
7th Floor, Cavenagh House Tel (08) 8999 7238
7th Floor, Cavenagh House
Tel (08) 8999 6033 Fax (08) 8999 6446
Tel (08) 8999 6447
Fax (08) 8999 7150
Fax (08) 8999 7150
Deputy Under Treasurer
Senior Director Commercial
(Commercial and Economic)
Anne Tan
Peter Caldwell
5th Floor, Cavenagh House
7th Floor, Cavenagh House
Tel (08) 8999 6812
Tel (08) 8999 7087
Fax (08) 8999 6446
Fax (08) 8999 7150
Senior Director Public Finance
Manager Secretariat
Bruce Michael
Felicity Wannan
5th Floor, Cavenagh House
7th Floor, Cavenagh House
Tel (08) 8999 6398
Tel (08) 8999 6700
Fax (08) 8999 6446
Fax (08) 8999 7150
Senior Director Economic and
Financial Management Social Analysis
Assistant Under Treasurer Tony Barnes
(Budgets and Finance) 7th Floor, Cavenagh House
Jodie Kirkman Tel (08) 8999 6514
7th Floor, Cavenagh House Fax (08) 8999 7150
Tel (08) 8999 7433
Director Economic Analysis
Fax (08) 8999 7150
Sarah Rummery
Senior Director Financial Management 5th Floor, Cavenagh House
David Braines-Mead, Bronwyn Riedel Tel (08) 8999 6546
6th Floor, Cavenagh House Fax (08) 8999 6446
Tel (08) 8999 6110, (08) 8999 6611
Fax (08) 8999 5095

128 Annual Report 2006-07


Territory Revenue Office Northern Territory Statutory Offices
GPO Box 154 Superannuation Office Northern Territory Treasury
Darwin NT 0801 GPO Box 4675 Corporation
Darwin NT 0801 Senior Director Funds Management
General Enquiries
John Montague
Tel (08) 8999 7949 or 1300 305 353 General Enquiries
3rd Floor, Cavenagh House
Fax (08) 8999 6395 Tel (08) 8901 4200 or 1800 631 630
GPO Box 2035
Executive Director Revenue Fax (08) 8901 4222
Darwin NT 0801
Commissioner of Taxes Commissioner of Superannuation Tel (08) 8999 7975
Craig Vukman Kathleen Clayden Fax (08) 8999 7449
9th Floor, Cavenagh House 1st Floor, Cavenagh House
Utilities Commission
Tel (08) 8999 7935 Tel (08) 8901 4272
Commissioner
Fax (08) 8999 6395 Fax (08) 8901 4277
Alan Tregilgas
Director Revenue Collection 9th Floor, Cavenagh House
Treasury Services Group
Deputy Commissioner of Taxes GPO Box 915
Assistant Under Treasurer
Murray Hancock Darwin NT 0801
(Corporate and Superannuation)
9th Floor, Cavenagh House Tel (08) 8999 5480
Catherine Wauchope
Tel (08) 8999 6326 Fax (08) 8999 6262
7th Floor, Cavenagh House
Fax (08) 8999 6395
Tel (08) 8999 6691
Director Revenue Development Fax (08) 8999 7150
Assistant Commissioner of Taxes
Director Corporate Support
Ivan Basei
Sarah Temple
9th Floor, Cavenagh House
4th Floor, Cavenagh House
Tel (08) 8999 6388
Tel (08) 8999 5059
Fax (08) 8999 6395
Fax (08) 8999 6150

Manager Communications and


Information Services
Richard Smith
7th Floor, Cavenagh House
Tel (08) 8999 7911
Fax (08) 8999 7150

Appendixes 129
Appendix 2:
Functions of Treasury

The services Treasury provides Financial Management It also manages the Central
include advice, analysis and Holding Authority, is responsible for
administration of matters relating to: Group administering the Territory’s financial
The Financial Management Group management framework and policies,
• financial management and fiscal
is responsible for advice on and developing and maintaining the
initiatives;
management of the Territory’s whole of government budgeting and
• economic frameworks and the finances and related arrangements. reporting system, meets the Territory’s
Territory economy;
It comprises a number of areas of external reporting requirements and
• commercial projects; plays a major role in developing
expertise including:
• own-source revenue including and monitoring the Territory’s Fiscal
• budget development;
taxation; Strategy.
• financial reporting;
• public sector superannuation; It also manages the Government’s
• policy analysis and development;
• borrowing and investing on behalf commercial accountabilities and risks
of the Territory; and • budgeting and reporting system under the Financial Management Act.
(Apex); and
• grants, subsidies and community
service obligations related to its • whole of government financial
responsibilities. information requirements.

Following are details of the functions In fulfilling its responsibility for


and responsibilities of the groups the development and management
and business units in Treasury. This is of the Territory Budget, the group
supplemented by the Organisational provides advice to the Treasurer,
Chart at Appendix 3 which shows the Government and agencies on
Treasury’s management reporting budget proposals, assists agencies
structure. and monitors agency performance
in delivering outputs. It is also
responsible for coordination, analysis
and monitoring of the Territory’s
Infrastructure Program.

The group manages the preparation


and analysis of both agency and whole
of government financial statements in
the development of the Budget and its
monitoring throughout the year.

130 Annual Report 2006-07


Economic Group Economic and Social Territory Revenue Office
The Economic Group provides Analysis Territory Revenue Office provides
analysis and advice on economic Economic and Social Analysis advice on the Territory’s taxes and
and commercial issues. It comprises provides a quantitative view of the charges regime, and administers
four business units: Commercial, Territory economy and relevant Northern Territory taxes, tax-related
Economic Policy and Frameworks, social issues, as a basis for policy grants and subsidies and mineral
Economic and Social Analysis, and development by Government. The royalties in a fair and equitable
Public Finance. business unit monitors and analyses manner. It comprises two business
trends in macro-economic conditions, units: Revenue Collection and
Commercial provides regular briefings for the Revenue Development.
Commercial provides commercial Treasurer and senior officials and
advice to Government. It administers regularly publishes information and Revenue Collection
the government owned corporations analysis on the Territory economy. It Revenue Collection ensures the
framework on behalf of the also analyses and provides advice effective collection of Territory revenue
shareholding Minister and provides on social statistics of significance in in accordance with the relevant tax
financial and commercial advice, the Territory. It has responsibility for and royalty legislation and develops
particularly on major government demographic analysis and research community understanding of revenue
projects and initiatives and public and oversees statistical coordination obligations. The area advises on and
private partnership policy issues. across Northern Territory Government administers tax and royalty legislation,
agencies. including identifying tax and royalty
Economic Policy and payers and minimising losses to
Frameworks Public Finance revenue from avoidance practices. It
Economic Policy and Frameworks Public Finance has its primary also administers a number of subsidy
aims to ensure that the Territory’s focus on intergovernmental financial schemes and grants, including the
economic resources are applied arrangements, incorporating a wide first home owner grant.
in a manner which promotes the spectrum of policy issues. Major
Territory’s economic performance. activities include representation on Revenue Development
The unit provides advice on economic national working groups on goods Revenue Development ensures the
policy and reform issues including the and services tax administration and continuing relevance and efficacy of
National Reform Agenda (legislative specific purpose payments policy, the Territory’s revenue regime. The
review, infrastructure regulation, analysis of whole of government area provides advice to Government
transport and energy reform and financial issues, provision of strategic on revenue policy and budgetary
competitive neutrality), government advice on intergovernmental financial issues, undertakes revenue modelling
owned businesses, water reform, relations, and management of and forecasting analysis, monitors
climate change, insurance and submissions and data returns to the revenue collections, reviews decisions
broader Government policy initiatives. Commonwealth Grants Commission. made under tax and royalty legislation
and manages the Territory Revenue
Office’s information systems.

Appendixes 131
Northern Territory Corporate Support Statutory Offices
Corporate Support provides services
Superannuation Office to Treasury business units to enable
The following statutory offices also fall
Northern Territory Superannuation within the administrative responsibility
staff to concentrate on core business
Office is responsible for of Treasury, which provides support
in their functional area. Services
superannuation policy and legislation for these entities to conduct their
include human resource management,
that meets statutory requirements of business operations.
recruitment, staff development,
Territory and national superannuation finance and accounting, office Northern Territory Treasury
legislation, member services, support accommodation, asset control and Corporation
services for the Trustee and Review vehicles. The area also manages the Northern Territory Treasury
Boards of various schemes, and the Finance Officer in Training (FOIT) Corporation is the Territory
Northern Territory Government. graduate employment program Government’s central financing
and other entry-level employment
Treasury Services programs for Treasury.
authority and borrows, lends and
invests on behalf of the Territory.
Group The Corporation provides loans to
Treasury Services Group provides Information Management
Government, its agencies, government
executive and corporate services to and Systems owned corporations and, in certain
enable Treasury to fulfil its role as the Information Management and Systems
circumstances, local governing
key central agency for the provision also provides services to Treasury
authorities. It manages an average of
of fiscal, economic and commercial business units including internal and
$500 million in investments including
advice. external communication activities;
investing the surplus cash balances in
website management; publishing
Government accounts.
Senior Executive Budget Papers and other key Treasury
The Under Treasurer, Deputy and publications, reports and documents; Utilities Commission
Assistant Under Treasurers and information and communications The Utilities Commission is the
Executive Director have whole technology; building and internal independent regulator established
of agency responsibilities and access control; and records to oversee those industries declared
accountabilities, providing strategic management. to be regulated industries, currently
direction and leadership for Treasury. the electricity and water supply and
The Information Officer is part of
They are also involved in high level sewerage services industries.
Treasury Services and coordinates
whole of government projects and
activities relating to Treasury’s The Commission was established as
policy development.
Information Act responsibilities. a separate administrative unit within
Executive Support Treasury, has specific statutory powers
Executive Support provides support and undertakes its considerations
services to the Under Treasurer, senior independently of Treasury.
executives and the Treasurer’s office. The Commission is responsible
The area provides central coordination for promoting and safeguarding
and liaison services for Treasury competition and fair and efficient
between the Treasurer’s office, other market conduct or, in the absence
Ministers’ offices, the Cabinet Office, of a competitive market, simulating
Legislative Assembly and other competitive market conduct and
Government agencies on issues preventing the misuse of monopoly
relating to Treasury responsibilities. power.

132 Annual Report 2006-07


Appendix 3:
Treasury’s Organisational Chart
at September 2007

Territory Revenue
Executive Director
Office
Revenue
Murray Hancock
Craig Vukman
Ivan Basei

Commercial
Anne Tan
Economic Policy and
Under Treasurer Frameworks
Jennifer Prince Rodney McComiskie
Assistant
Craig Graham
Under Treasurer
(Economic) Economic and
Tony Stubbin Social Analysis
Tony Barnes
Sarah Rummery
Deputy Under Treasurer
Jenny Coccetti
(Commercial and Economic)
Peter Caldwell Public Finance
Bruce Michael

Treasury Corporation
John Montague

Financial Management
Assistant David Braines-Mead
Under Treasurer Bronwyn Riedel
(Budgets and Finance) Lisa Strohfeldt
Jodie Kirkman Sibylle Brautigam
Amanda Balchin

Superannuation Office
Kathleen Clayden

Assistant Under
Treasurer (Corporate
and Superannuation) Corporate Support
Catherine Wauchope Sarah Temple
Information Management
and Systems
Richard Smith
Executive Support
and Secretariat
Senior Management Group Felicity Wannan

Appendixes 133
Appendix 4:
Corporate Governance Committees

Fiscal Strategy Committee


Responsible for development of strategic policy advice on the Territory’s fiscal,
budgetary and economic position, and monitoring performance against the
Government’s fiscal objectives. Although the committee’s focus concerns issues
unrelated to internal management, it is responsible for the management of
strategic issues that draw on expertise from several areas across Treasury and
which necessarily require a comprehensive (rather than narrow) approach. In
this sense, it is an important element in Treasury’s governance arrangements
and is regarded as one of Treasury’s corporate governance committees.

Membership
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman (Chair)
Assistant Under Treasurer (Economic), Tony Stubbin
Executive Director Revenue, Craig Vukman
Senior Director Financial Management, David Braines-Mead

Risk and Audit Committee


Responsible for:
• monitoring business risk assessments and adequacy of internal controls
established to manage identified risks and review the adequacy of policies,
practices and procedures that impact on those controls;
• overseeing the audit and risk management function within Treasury, including
the development of internal audit and risk management programs, terms
of reference, monitoring audit and risk management outcomes and the
implementation of recommendations;
• reviewing the effectiveness of structures and practices that support the key
elements of Treasury’s corporate governance framework; and
• reviewing the outcomes and monitoring responses to recommendations of
external auditors.
Membership
Under Treasurer, Jennifer Prince
Deputy Under Treasurer (Commercial and Economic), Peter Caldwell (Chair)
Assistant Under Treasurer (Economic), Tony Stubbin
Executive Director Revenue, Craig Vukman
Assistant Under Treasurer (Corporate and Superannuation), Catherine Wauchope
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman
Director Corporate Support, Sarah Temple

134 Annual Report 2006-07


Human Resource Management Committee
Responsible for guiding the development and implementation of human
resource management policy and planning in Treasury.

Membership
Under Treasurer, Jennifer Prince (Chair)
Deputy Under Treasurer (Commercial and Economic), Peter Caldwell
Assistant Under Treasurer (Economic), Tony Stubbin
Executive Director Revenue, Craig Vukman
Assistant Under Treasurer (Corporate and Superannuation), Catherine Wauchope
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman
Director Corporate Support, Sarah Temple

Professional Development Committee


Responsible for considering and setting policy relating to professional
development of staff.

Membership
Assistant Under Treasurer (Corporate and Superannuation),
Catherine Wauchope (Chair)
Assistant Under Treasurer (Economic), Tony Stubbin
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman

Information Management Committee


Responsible for guiding development, management and use of Treasury’s
information resources and technology.

Membership
Under Treasurer, Jennifer Prince (Chair)
Deputy Under Treasurer (Commercial and Economic), Peter Caldwell
Assistant Under Treasurer (Economic), Tony Stubbin
Executive Director Revenue, Craig Vukman
Assistant Under Treasurer (Corporate and Superannuation), Catherine Wauchope
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman
Manager Communications and Information Services, Richard Smith

Appendixes 135
Occupational Health and Safety Committee
Responsible for:
• facilitating the provision of safe workplaces and systems of work through the
cooperative efforts of Treasury and its employees;
• developing, implementing and monitoring measures designed to ensure the
health and safety of employees at work; and
• advocating acceptable and responsible practices by employees and others
and promoting the health and safety ethos for the workplace.
Membership
Manager Office Services, Peter Jones (Chair)
Director Corporate Support, Sarah Temple
Manager Communications and Information Services, Richard Smith
Sharon Laughton (Superannuation)
Christine Millowick (Revenue)
Douglas Burns (Financial Management)
Leigh Jenner (Treasury Services)

136 Annual Report 2006-07


Appendix 5:
Membership of Boards and Committees

Northern Territory Inter-Departmental Committee Procurement Review Board (Darwin)


on Corporate Taxation and
Public Sector Superannuation Advice
Public Housing Management in
Remote Areas and Town Camps
Agents Licensing Fidelity Guarantee
Legal Practitioners Funds Working Group
Fund Investment Board
Management Committee
Public Sector Consultative Council
Asset Management Systems Review
Legislative Assembly Members’
Steering Committee Public Trustee Investment Board
Superannuation Trust
AustralAsia Railway Corporation Regional Development Inter-
Major Projects Group
Departmental Committee
Charles Darwin University Council
Major Projects Taskforces:
Secretariat Network Group
Charles Darwin University Audit and
• AustralAsia Trade Route
Risk Committee Statistical Priorities Advisory
• Darwin Waterfront Redevelopment Committee
Chief Executives Taskforce on
• Defence Support Industries
Indigenous Affairs Strategic Workforce Steering
• Onshore Gas Developments Committee
Chief Finance Officers Forum
Measuring Indigenous Economic
Superannuation Investment Board
Communications and Marketing Development Steering Committee
Directors’ Forum Territory Motor Sports Board Limited
Northern Territory Government
Competition Impact Analysis Census Steering Committee Territory Taxation Administration
Committee Liaison Committee
Northern Territory Government
Coordination Committee Information Management Committee
Coordination Committee – Capital Northern Territory Government
Works Review Subcommittee Information Management Committee –
Corporate Services Review Steering Records Management Subcommittee
Group Northern Territory Police Legacy
Corrective Services Working Group Board

Darnor Pty Ltd Northern Territory Police


Supplementary Benefit Scheme Trust
Darwin Waterfront Corporation
Northern Territory Population
Enterprise Architecture Reference Intelligence Working Group
Group
Northern Territory Statistical Liaison
Executive Remuneration Review Panel Committee
Gasgo Pty Ltd Northern Territory Treasury
Government Office Accommodation Corporation Advisory Board
Committee NT Build Board
Indigenous Economic Development NT Gas Distribution Pty Ltd
Inter-Departmental Committee
NT Gas Pty Ltd

Appendixes 137
National Public Private Partnerships Working
Party
Australian Bureau of Statistics 2006
Census Coordination Committee State Tax Commissioners Business
Practices Subcommittee
Australian Bureau of Statistics 2006
Census Indigenous Enumeration State Tax Commissioners Compliance
Committee Committee

Australian Bureau of Statistics State Tax Commissioners Group


Advisory Group on Aboriginal and State Tax Commissioners Information
Torres Strait Islander Statistics and Communication Technology
Australian Statistics Advisory Council Committee

Council of Australian Governments State Tax Commissioners National


Indigenous Generational Reform First Home Owner Grant Committee
Working Group State Tax Commissioners Tax Law
Council of Australian Governments Committee
Local Government Working Group State Tax Commissioners Training and
Goods and Services Tax Customer Education Committee
Administration Subcommittee Steering Committee for Review of
Goods and Services Tax Policy Government Service Provision
Advisory Group Treasury Corporate Services
Heads of Treasuries Directors’ Forum

Heads of Treasuries Accounting and Uniform Presentation Framework


Reporting Advisory Committee Committee

Heads of Treasuries Budget and Utility Regulators Forum


Financial Framework Advisory
Committee

Heads of Treasuries Specific Purpose


Payments Working Group

Heads of Treasuries Tax Equivalents


Regime Working Party

Natural Disaster Relief and Recovery


Arrangements Stakeholder Group

National Reform Agenda Competition


and Regulation Working Group

National Reform Agenda Human


Capital Working Group

138 Annual Report 2006-07


Appendix 6:
Legislation Administered

Advance Bank Integration Act Gaming Control Act (tax and levy Soccer Football Pools Act (duty
provisions) provisions)
Appropriation Act
Gaming Machine Act (tax, levy and Stamp Duty Act
Bank of South Australia (Merger with
fee provisions)
Advance Bank) Act Superannuation Act
Government Owned Corporations Act
Competition Policy Reform (Northern Superannuation Guarantee
Territory) Act McArthur River Project Agreement (Safety Net) Act
Ratification Act (royalty provisions)
Debits Tax Act Taxation (Administration) Act
Merlin Project Agreement Ratification
Electricity Networks (Third Party Territory Insurance Office Act
Act (royalty provisions)
Access) Act
Totalisator Licensing and
Mineral Royalty Act
Electricity Reform Act (economic Regulation Act (tax provisions)
regulation) Mining (Gove Peninsula Nabalco
Utilities Commission Act
Agreement) Act (royalty provisions)
Energy Resource Consumption Levy
Water Supply and Sewerage
Act Motor Accidents (Compensation) Act
Services Act (economic regulation)
Energy Resource Consumption Levy Motor Vehicles Act (Part V)
(Waiver of Levy) Act
New Tax System Price Exploitation
Financial Agreement Between the Code (Northern Territory) Act
Commonwealth, States and Territories
Northern Territory Treasury
(Approval) Act
Corporation Act
Financial Institutions Duty Act
Pay-roll Tax Act
Financial Management Act
Petroleum Act (royalty provisions)
Financial Relations Agreement
Racing and Betting Act (tax
(Consequential Provisions) Act
provisions)
First Home Owner Grant Act
Revenue Units Act
Fiscal Integrity and Transparency Act

Fuel Subsidies Act

Appendixes 139
Appendix 7:
Legislative Changes 2006-07

Own-Source Revenue • clarified that the stamp duty Motor Accidents


treatment of mining information in
Stamp Duty Act and Taxation
relation to mines that are not subject Compensation
(Administration) Act Motor Accidents (Compensation) Act
to the Mining Act is the same
Amendments commencing from The Motor Accidents (Compensation)
as information relating to mines
1 May 2007: Act (MACA) prescribes compensation
governed by the Mining Act; and
• increased the first home owner benefits for persons injured, or
• clarified that a person who has
stamp duty concession from the the dependants of persons killed,
previously owned a home interstate
stamp duty payable on the first in motor vehicle accidents in the
under a long-term lease cannot
$225 000 of a home’s value (a Territory. The MACA scheme is
qualify for the stamp duty first home
concession of up to $8 015) to the funded by contributions paid by
owner concession on a subsequent
first $350 000 (a concession of up motorists at the time of registering
home purchase.
to $15 312); and or re‑registering a motor vehicle.
First Home Owner Grant Act
• prevented the use of the stamp duty Following a comprehensive review of
Amendments commencing from
corporate reconstruction exemption motor accident compensation benefits
1 July 2007:
to frustrate the recovery of any in 2006, involving an extensive
stamp duty, tax or royalty payable to • clarified that consideration needs public consultation process, MACA
the Territory. to actually have been paid for the amendments commencing from
purchase of a home before an 1 July 2007:
Amendments commencing from
applicant can receive the first home
1 July 2007: • abolished common law damages
owner grant; and
• abolished stamp duty on hiring for non residents, with benefits
• clarified that any overpayment of prescribed under MACA applying
arrangements;
a first home owner grant can be for all accidents in the Territory
• abolished stamp duty on the recovered. regardless of residency of the
grant of a lease for nil or nominal
claimant or location of accident;
consideration;
• limited MACA benefits to accidents
• exempted all types of guarantees
occurring within Australia (with
from stamp duty;
provision for lump sum payment of
• clarified that anything that is benefits, in certain circumstances,
physically fixed to land is regarded where a claimant relocates
as ‘land’ for the purposes of the overseas);
stamp duty ‘land holder’ provisions;
• increased the cap on benefits for
• clarified that the stamp duty personal attendant care for the
valuation provisions imposed stamp severely and permanently injured
duty on the full value and best use from 28 to 32 hours per week and to
of land, which includes having reduce the permanent impairment
regard to information that enhances threshold for eligibility for benefits
the value of land; from 85 per cent to 60 per cent;

140 Annual Report 2006-07


• introduced new benefits for Superannuation
seriously and permanently injured,
Northern Territory Police Supplementary
including respite care (equal to two
Benefit Scheme Trust Deed
weeks attendant care benefits per
The Northern Territory Police
year) and domestic services (such
Supplementary Benefit Scheme
as home repairs, maintenance and
Trust Deed was amended on
cleaning);
15 March 2007 to clarify that the
• introduced a new $4000 emergency application of interest to member
travel payment to assist family accounts can be positive or negative.
members to visit a seriously injured
relative;
• excluded the owner or driver from
non-medical benefits if the motor
vehicle was unregistered at the
time of accident for more than three
months;
• linked the existing exclusion from
non-medical benefits for accidents
involving alcohol or drugs to relevant
laws regulating road traffic and
provided for reduced death benefits
for accidents involving alcohol and
drugs;
• excluded non-medical benefits
where a person engages in conduct
that creates a substantial risk of
injury and the person recklessly
ignores that risk; and
• reduced non-medical benefits by
25 per cent for persons not wearing
a seat belt or helmet at the time of
accident (where required to do so).

Appendixes 141
Appendix 8:
Competitive Neutrality

Treasury is responsible for managing Treasury manages the competitive


competitive neutrality policy neutrality complaints process and is
development and monitoring for responsible for monitoring government
Northern Territory Government trading business divisions’ pricing policy and
enterprises. Competitive neutrality community service obligations.
aims to ensure that significant
In August 2006, Treasury received
government businesses do not enjoy
a formal complaint that related to
net competitive advantages over
whether the Darwin Aquaculture
competitors simply by virtue of their
Centre had an unfair competitive
public ownership. Implementation of
advantage in supplying barramundi
competitive neutrality principles since
larvae for a particular transaction.
1995 has improved the transparency
The complaint was investigated
and accountability of government
and dismissed on the basis that the
businesses and ensured that public
complainant could not substantiate
resources are used efficiently. A key
a material loss associated with the
objective of competitive neutrality
transaction.
is to encourage fair and effective
competition in the supply of goods
and services across the economy.

Competitive neutrality principles are


implemented through provisions of the
Financial Management Act and the
Government Owned Corporations Act.
Government businesses are required
to operate with a commercial focus,
to meet the same costs as privately
owned firms (for example, taxes
and charges), and to set prices that
enable them to earn sufficient revenue
to cover costs, including the cost of
capital.

142 Annual Report 2006-07


Appendix 9:
Publications

Northern Territory Budget Paper No. 4 The Infrastructure Treasurer’s Financial


Program
Budget Papers Presents a summary of the Reports
The 2007-08 Budget was handed Government’s Infrastructure Program 2005-06 Treasurer’s Annual Financial
down on 1 May 2007. for all budget sector agencies, as well Report
as detailed descriptions of 2007-08 The Treasurer’s Annual Financial
2007-08 Budget capital projects for each agency. Report (TAFR) provides information
Budget Paper No. 1 Budget Speech about the financial performance and
Expected committal dates for major
The Treasurer’s speech to the position of the Northern Territory
projects in 2007-08 are also provided.
Legislative Assembly describes the Government. TAFR reports under
Government’s Budget strategy and Related Papers the accrual framework and provides
key features of the 2007-08 Budget, Budget Overview information on a sectoral basis
together with the Bill presented to Key features of the 2007-08 Budget (General Government, Public Non
Parliament outlining appropriations for are outlined. Financial Corporations, Non Financial
2007-08. Public Sector, Public Financial
Northern Territory Economy
Budget Paper No. 2 Fiscal and A detailed assessment of the Corporations and Total Public Sector)
Economic Outlook Territory economy, including recent in accordance with the Fiscal Integrity
Meets the requirements of the performance and growth prospects, and Transparency Act and the UPF
Fiscal Integrity and Transparency employment, population, trade, Agreement. It also includes notes
Act. Includes a discussion of the and Australian and international to the accounts for the Total Public
Government’s fiscal strategy, the fiscal conditions. Includes chapters on the Sector and provides an explanation
and economic outlook for 2007-08 performance and outlook for major of key variations on an agency by
and the forward estimates period, an Territory industries. agency basis in an unaudited section.
overview of expenditure and revenue 2006-07 Mid-Year Report
Economy Overview
initiatives in the Budget, and current The Fiscal Integrity and Transparency
Presents a concise summary of each
issues in public finance from the Act requires the Territory to publish
chapter within the Northern Territory
Territory’s perspective. The financial a report before the end of February
Economy book.
data provided meets the Territory’s each year which revises the current
obligations under the Uniform Regional Highlights year’s Budget projections and forward
Presentation Framework (UPF) as A regional overview of the estimates. This interim report on
agreed between governments. Government’s initiatives, programs the Territory’s Budget position also
and expenditures in the 2007-08 satisfies the Territory’s UPF reporting
Budget Paper No. 3 The Budget
Budget. obligations. The report provides
Provides detailed information on the
budgets of agencies and government Business Highlights updated information to enable an
business divisions in the Northern A summary of the Government’s assessment of the Government’s
Territory budget sector, and focuses initiatives, policies and programs fiscal performance against the current
on the services and outputs delivered designed to facilitate and assist the fiscal strategy.
across Government. A summary of Territory business sector.
revenue information is also provided.

Appendixes 143
Treasurer’s Quarterly Financial Other Publications Grocery Price Survey
Reports The survey monitors grocery prices
Indigenous Expenditure Review
These reports provide statements by measuring the cost of purchasing
The Territory has a large and
which summarise the quarterly and an average basket of goods at each
geographically dispersed Indigenous
year to date financial transactions, major supermarket across the Territory
population living in urban, rural and
from a whole of government and in comparable centres in north
remote areas. The cost of delivering
perspective on a UPF basis. Queensland. The survey is conducted
infrastructure and services to
on a six-monthly basis and results are
Reports were published for Indigenous Territorians, especially
published on the Treasury website.
the quarters to 30 September those in remote communities, can
2006, 31 December 2006 and be significant. The Indigenous Employers’ Guide to Payroll Tax in the
31 March 2007. The June quarter Expenditure Review, commissioned by Northern Territory
results are incorporated into the the Northern Territory Government’s An aid to employers who may have
Treasurer’s Annual Financial Report. Chief Executives Task Force on a liability for payroll tax, the guide
Indigenous Affairs, reviews and comprehensively explains the basic
2005-06 Annual analyses expenditure to this group provisions of the Pay-roll Tax Act and
Reports and compares it to funding received gives examples of how to calculate
Legislative Assembly Members’ by the Territory for Indigenous-related payroll tax.
Superannuation Trust purposes. Stamp Duty Lodgement Guide
Northern Territory Government and Territory Economic Review The guide sets out taxpayer
Public Authorities’ Superannuation This publication monitors the lodgement and information
Scheme latest economic data and provides requirements for assessing certain
analysis of major Territory industries, duties imposed under the Stamp Duty
Northern Territory Licensing Act. It is updated as necessary.
consumption and investment, trade,
Commission
external economic conditions, TRMeR Manual
Northern Territory Police business sentiment, price and wage The TRMeR Instruction Manual was
Supplementary Benefit Scheme inflation and other topical issues as designed to provide information on
they develop. The review also presents how to access and use the Territory
Northern Territory Treasury
a range of relevant time series data Revenue Management electronic
Northern Territory Treasury and state by state comparisons of Returns (TRMeR) system for payroll
Corporation major economic indicators. There are tax returns. Although primarily
Racing, Gaming and Licensing about ten editions each year. designed to assist employers in the
Northern Territory Economic Briefs lodgement of their monthly and annual
Utilities Commission
Northern Territory Economic Briefs adjustment returns, TRMeR can also
provide up to date analysis of the be used for a range of other functions,
Territory economy and its performance such as payment of liability by direct
in relation to the Australian economy. debit utilising the Northern Territory
These briefs cover a broad range Government online banking facility,
of economic and social indicators, updating contact details, calculating
drawing on various sources of data the general exemption deduction,
including the Australian Bureau of viewing lodgement and payment
Statistics and Access Economics. history and communicating with the
Territory Revenue Office.

144 Annual Report 2006-07


First Home Owner Concession Guide Member Investment Choice Booklet Websites
and Application Form The booklet provides NTGPASS
Northern Territory Treasury
The first home owner concession members with information about the
www.nt.gov.au/ntt
provides Territorians buying their different options available to them
first home or land to build their first for investing their superannuation Northern Territory Budget
home, with a concession on the stamp contribution balances. It details the www.budget.nt.gov.au
duty payable. The guide provides investment asset classes of cash,
Northern Territory Superannuation
information on the concession fixed interest, property and shares
Office
and also informs applicants of the and the associated levels of risk.
www.nt.gov.au/ntt/super
eligibility criteria. An application form
Territory Talking
is attached. Northern Territory Treasury
This publication is aimed specifically
Corporation
Principal Place of Residence Rebate at holders and prospective holders of
www.territorybonds.nt.gov.au
Guide and Application Form Territory Bonds. Articles are prepared
The principal place of residence both in house and by interested Territory Revenue Office
rebate provides a stamp duty external parties, such as the registry www.revenue.nt.gov.au
concession to Territorians buying a managers. Utilities Commission
home or purchasing land to build www.utilicom.nt.gov.au
Territory Bonds Prospectus
a new home, where it is not their
Aimed at prospective holders of The papers and publications listed
first home in Australia. The guide
Territory Bonds, this publication above are available online at
provides information on the rebate
provides background on Territory www.nt.gov.au/ntt
and also informs applicants of the
Bonds, and outlines the terms and
eligibility criteria. An application form The Budget Papers can also be
conditions. An application form is
is attached. obtained from
attached.
Northern Territory Government and www.budget.nt.gov.au
Public Authorities’ Superannuation or purchased from:
Scheme 2005-06 Report to Members
Northern Territory Government
The report provides information to
Printing Office
members of the Northern Territory
Retail Sales
Government and Public Authorities’
Railway Street
Superannuation Scheme (NTGPASS)
Parap NT 0820
on the management, investment
performance and financial position or
of the scheme in 2005-06, and on GPO Box 1447
current superannuation issues. Darwin NT 0801
Similar reports are prepared for
members of the Legislative Assembly Telephone: (08) 8999 4031
Members’ Superannuation Trust Facsimile: (08) 8999 4001
and the Northern Territory Police
Supplementary Benefit Scheme.

Appendixes 145
Glossary

Accountable Officer’s Trust Agency Central Holding Authority


Account A unit of government administration, Created by section 5 of the Financial
Established under section 7(1) of the office or statutory corporation, Management Act, the Central Holding
Financial Management Act to enable nominated in an Administrative Authority is a representation of the
agencies to hold money in trust for Arrangements Order for the purposes revenue, expenses, assets and
another person or entity. Transactions of the Financial Management Act liabilities of the Territory. Credited to
in these accounts are excluded from and includes a part or division of an this account is all money received
the Public Account. agency. by or on behalf of the Territory or
an agency, except that required or
Accounts payable Appropriation permitted by or under that or any other
Refers to the value of short and An authority given by the Legislative Act to be credited to an Operating
long-term trade debt and accounts Assembly to make payments, now or Account or to an Accountable Officer’s
payable, interest payable and at some future time, for the purposes Trust Account.
prepayments received. stated, up to the limit of the amount in
the particular Act. Commonwealth Grants
Accounts receivable Commission
Refers to the value of short and Appropriation Act Body that advises on per capita
long-term trade credit and accounts Includes a Supply Act and an annual
relativities for distributing, among
receivable, interest receivable and Appropriation Act or an additional
the states and territories, a pool
prepayments made. Appropriation Act which authorises an
of revenue from the Australian
amount to be allocated to a purpose.
Government.
Accrual
In accounting, a recording method in Australian Accounting Community service
which revenues, expenses, lending Standards obligations
and borrowing are recognised as they Statements of accounting standards
A community service obligation (CSO)
are earned or incurred, regardless which can be applied in the
arises when the Government requires
of when a cash payment is made or preparation and presentation of
a government business division or
received. financial statements.
government owned corporation to
carry out activities which it would
Administrative stream Australian Bureau of
not choose to do on a commercial
One of the Northern Territory Public Statistics
basis or would only do so at higher
Sector employee classification Australia’s official national statistical
commercial prices. CSO payments
streams is administrative. Occupations agency. It provides statistics on
allow the Government to achieve
in this stream include assistant economic and social matters, covering
identifiable community or social
directors, managers, analysts and government, business and population.
objectives that would not be achieved
officers.
Capital appropriation if left to commercial considerations.
Advances Represents an increase in the
Amounts paid or received for policy Government’s investment in an agency
purposes rather than for liquidity for asset purchases and capital works
management purposes. projects and is provided to agencies
by the Central Holding Authority for
capital items.

146 Annual Report 2006-07


Competencies Employee assistance Indemnity
Competencies are the skills, attributes program A written undertaking to compensate,
and behaviours, specified for each Employer-provided counselling protect or insure another person or
employment level, that an employee service aimed at assisting employees entity against future financial loss,
needs in order to complete work to a and their immediate family members damage or liability.
high standard. experiencing work-related or personal
problems. Government agencies are
International Financial
Contingent liability required to provide EAP services as Reporting Standards
A potential financial obligation arising The term used to describe the
identified in clause 21 of the Northern
out of a condition, situation, guarantee move to standardise global
Territory Public Sector 2004-07
or indemnity, the ultimate effect of international accounting standards.
Certified Agreement.
which will be confirmed only on the Australian equivalents of these new
occurrence or non-occurrence of one Executive stream standards have been adopted for
or more uncertain future events. In comparison to the administrative reporting periods on or after since
stream, the executive stream 1 January 2005.
Corporate governance comprises Northern Territory Public
Corporate governance provides a
Sector employees at the level of OCPE
structured framework through which Office of the Commissioner for Public
Director and above.
Treasury is directed and controlled Employment, the statutory employer
and guides how decisions are Expense of all Northern Territory public sector
made, risks are managed and the A cost or outflow of resources from an staff, who is responsible for promoting
organisation’s future is planned. These organisation. the development and observance
decisions in turn guide the necessary of the highest possible standards
planning, budgeting and management Full-time equivalent of human resource management
of performance, and support Used in reference to staffing practices in agencies.
Treasury’s Senior Management Group numbers where one FTE reflects one
in its leadership of Treasury. employee working full-time hours of Operating account
36.75 hours per week. Employees A government business division
Council of Australian working part‑time or casual hours are operating account or an agency
Governments represented as a fraction of this. For operating account established
The peak intergovernmental forum example, part‑time hours of 29.70 under section 6(1) of the Financial
comprising the Prime Minister, hours a week equates to 0.8 FTE. Management Act.
Premiers, Chief Ministers and
President of the Australian Local Goods and services tax
Government Association. revenue
Revenue payments from the Australian
Government return the goods and
services tax (GST) revenue, collected
by the Australian Taxation Office, to
the states and territories.

Glossary 147
Outcomes Performance Development Revenue
Outcomes are expressions of Framework An inflow of resources into an
the intended results, impacts or Treasury’s performance management organisation related to its operations.
consequences on the Territory system, where staff performance is
community of outputs provided by reviewed and discussed between
Risk assessment
agencies. Determining the nature and level of
manager and staff member on a
business risk to the organisation and
Outcomes should clearly represent the six-monthly basis against established
business units.
objectives the Government is seeking competencies, and targets are set for
the coming six months.
to achieve and reflect Government’s Risk management
policy direction. Outputs need to align The steps taken to manage risks,
Provisions
with outcomes, as outputs are the including identifying (both actual and
Amounts set aside by entities from
means through which outcomes are potential), assessing, eliminating or
current revenue or income for future
achieved. controlling risks.
payments.
Outputs Uniform Presentation
Outputs are the services provided or
Framework (UPF)
the goods produced by an agency for
A uniform reporting framework agreed
users external to the agency.
by the Australian Loan Council in
Output appropriation 2000, which is a revision of the
The amount the government agrees agreement reached at the 1991
to fund agencies to purchase their Premiers’ Conference. It specifies
outputs net of any revenue earned that the Australian, state and territory
by the agency. This is based on the governments will present a minimum
purchaser/provider model where set of budget and financial outcome
government (purchaser) purchases information on the Government
outputs from agencies (providers) on Finance Statistics basis according to
behalf of the community. an agreed format and specified Loan
Council reporting arrangements.
Output groups
Output groups are combinations of
like outputs, and are funded through
the Budget.

148 Annual Report 2006-07


List of Tables and Figures

Tables
Table 1: Financial Management Output Performance 28
Table 2: Economic Output Performance 29
Table 3: Commercial Output Performance 30
Table 4: Superannuation Output Performance 30
Table 5: Territory Revenue Output Performance 31
Table 6: Standards Published in the Territory Revenue Office 32
Service Charter
Table 7: Economic Regulation Output Performance 32
Table 8: Northern Territory Treasury Corporation Business Line Performance 33
Table 9: Corporate Governance Committees 41
Table 10: Audits and Reviews 43
Table 11: Information Act Requests in 2006-07 48
Table 12: Annual Energy Targets 49
Table 13: Cavenagh House Electricity and Water Use 51
Table 14: Enterprise House Electricity and Water Use 51
Table 15: Paper Usage 52
Table 16: FTE Staff by Gender and Classification 55
Table 17: Training and Development Expenditure 59
Table 18: Study Fees Reimbursed 61
Table 19: Equal Employment Opportunity Data 64
Table 20: Indigenous Employment as at 30 June 64
Table 21: Workers Compensation Claims 65
Table 22: Employee Assistance Program 66
Table 23: Employment Instructions, Annual Reporting Requirements 67
and Agency Action
Table 24: Operating Statement 74
Table 25: Operating Income 75
Table 26: Operating Expenses 75
Table 27: Grants and Subsidies 77
Table 28: Balance Sheet 77
Table 29: Statement of Cash Flows 78
Table 30: Total Income Collected by Treasury in 2006-07 79
Table 31: Significant Components of the $180 million Revenue Increase 106
Table 32: Significant Components of the $369 million Expenses Increase 107

List of Tables and Figures 149


Figures
Figure 1: Our Purpose and Outputs 8
Figure 2: Treasury’s Corporate Governance Arrangements 37
Figure 3: Treasury’s Planning Process 46
Figure 4: Electricity Use per Square Metre of Office Space 50
Figure 5: Water Use per FTE 52
Figure 6: Treasury Staff by Classification and Gender as at 30 June 2007 56
Figure 7: Overall 10 Year Gender Comparison 56
Figure 8: Treasury Staff Age Profile as at 30 June 2007 56
Figure 9: Staff with Over 10 Years of Service in Treasury 56
Figure 10: Professional Development Expenditure 61
Figure 11: Relationship Between the Central Holding Authority, Treasury 73
and Other Agencies
Figure 12: Treasury’s Operating Expenses 75
Figure 13: Components of CHA Operating Revenue 106
Figure 14: Components of CHA Operating Expenses 106
Figure 15: Components of CHA Operating Assets 107
Figure 16: Components of CHA Operating Liabilities 107

150 Annual Report 2006-07