Department of the Environment, Water, Heritage and the Arts annual report 2008-09
Volume one
Department of the Environment, Water, Heritage and the Arts, 2009
ISSN 1441-9335
Managing the department (continued)
Finances
Financial Performance
The two comparison tables below explain the main features of the department's financial performance in 2008-09.
| Department of the Environment, Water, Heritage and the Arts | 2007-08 Actuals $'000 |
2008-09 Actuals $'000 |
2008-09 Variance $'000 |
|
|---|---|---|---|---|
| Departmental Outcome 1 | Income | 348,828 | 310,535 | (38,293) |
| Expenses | (341,859) | (314,345) | 27,514 | |
| Surplus/(Deficit) | 6,969 | (3,810) | (10,779) | |
| Departmental Outcome 2 | Income | 111,765 | 120,733 | 8,968 |
| Expenses | (135,996) | (151,254) | (15,258) | |
| Surplus/(Deficit) | (24,231) | (30,521) | (6,290) | |
| Departmental Outcome 3 | Income | 42,691 | 66,667 | 23,976 |
| Expenses | (37,004) | (60,879) | (23,875) | |
| Surplus/(Deficit) | 5,687 | 5,789 | 102 | |
| Departmental Outcome 4 | Income | 47,651 | 56,048 | 8,397 |
| Expenses | (44,391) | (57,056) | (12,665) | |
| Surplus/(Deficit) | 3,260 | (1,008) | (4,268) | |
| Total Departmental | Income | 550,935 | 553,983 | 3,048 |
| Expenses | (559,250) | (583,534) | (24,284) | |
| Surplus/(Deficit) | (8,315) | (29,551) | (21,236) | |
| Department of the Environment, Water, Heritage and the Arts | 2007-08 Actuals $'000 |
2008-09 Actuals $'000 |
2008-09 Variance $'000 |
|
|---|---|---|---|---|
| Administered Outcome 1 | Income | 8,937 | 37,440 | 28,503 |
| Expenses | (789,853) | (1,045,891) | (256,038) | |
| Administered Outcome 2 | Income | - | - | - |
| Expenses | (224) | - | 224 | |
| Administered Outcome 3 | Income | 3,995 | 494,419 | 490,424 |
| Expenses | (235,992) | (269,018) | (33,026) | |
| Administered Outcome 4 | Income | 548 | 11,047 | 10,499 |
| Expenses | (113,660) | (198,563) | (84,903) | |
| Total Administered | Income | 13,480 | 542,906 | 529,426 |
| Expenses | (1,139,729) | (1,513,472) | (373,743) | |
| Key to column headings in the previous tables | |
|---|---|
| 2007-08 Actuals | Actual Income and Expenses for 2007-08 as at 30 June 2008 |
| 2008-09 Actuals | Actual Income and Expenses for 2008-09 as at 30 June 2009 |
| 2008-09 Variance | The difference between the actual results for 2008-09 and 2007-08, i.e. 2008-09 Actuals minus 2007-08 Actuals |
| Funding Class | Income | Expenses |
|---|---|---|
| Departmental Outcome 1 | Income decreased from 2007-08 by $38.293 million due mainly to lapsing programs:
|
Expenses decreased from 2007-08 by $27.514 million mainly as a result of funding decrease in energy and climate change action of $18.862 million and conservation of the land and inland waters of $10.438 million. |
| Departmental Outcome 2 | Income increased from 2007-08 by $8.968 million due mainly to the increase in cost recovered programs of $10.445 million undertaken by the Antarctic Science and Policy, offset by the minor reduction in funding of $1.477 million. | Expenses increased from 2007-08 by $15.258 million mainly in the Antarctic Science program due to additional depreciation and amortisation costs, and continuing costs pressures in logistics and fuel costs. |
| Departmental Outcome 3 | Income increased from 2007-08 by $23.976 million due to the funding commencement of the new 10-year water framework, 'Water for the Future'. | Expenses increased from 2007-08 by $23.875 million due to the increased funding to support the 'Water for the Future' program. |
| Departmental Outcome 4 | Income increased from 2007-08 by $8.397 million reflects the commencement of the National Portrait Gallery and the restructure of Old Parliament House part way through the year. | Expenses increased from 2007-08 by $12.665 million reflects the associated costs involved in Artbank and the commencement of operation of the National Portrait Gallery part way through the year. |
| Administered Outcome 1 | Income increased by $28.503 million from 2007-08 due mainly to a grant repayment of $15 million from Point Nepean Community Trust and the gain accounted for due to the recognition for the first time the Halon of National Halon Bank of $13 million. | Expenses increased by $256.038 million from 2007-08 due mainly to the grants and rebates paid under the Solar Homes and Communities, and Home Owner Insulation programs; and the one off loss resulting from transfer of the Point Nepean assets to the Victorian Government. |
| Administered Outcome 2 | Not applicable | Not applicable |
| Administered Outcome 3 | Income increased by $490.424 million from 2007-08 due mainly to the gain accounted for in the de-recognition of the Murray Darling Basin Commission investments. | Expenses increased by $33.026 million from 2007-08 due mainly to the commencement of the funding expenditures in the 'Water for the future program'. |
| Administered Outcome 4 | Income increased by $10.499 million from 2007-08 due mainly to the gain in the de-recognition of the investments in Film Australian Ltd ($4.9 million), Australian Film Commission ($4.2 million), and Film Finance Corporation ($0.6 million). | Expenses increased by $84.903 million from 2007-08 due mainly to the increased funding expenses in Cultural Development Programme, Indigenous Arts and Culture and broadcasting, and Connect Australia. |
| Measurement | 2007-08 $ million | 2008-09 $ million |
|---|---|---|
| Assets | 584.481 | 651.442 |
| Liabilities | 304.004 | 354.251 |
| Total equity | 280.477 | 297.191 |
Assets
The written down value of assets administered directly by the department in 2008-09 increased from the previous year by $66.961million. The primary movements were as a result of bringing the National Portrait Gallery's building into assets of $84million, and the decrease in financial assets of $17million due mainly to the operating deficit for the year of $29.5million.
Liabilities
Liabilities administered directly by the department in 2008-09 amounted to $354.251million. This was an increase from the previous year of $50.247million. The increase was due to an increase in employee provisions and make good provisions for the Australian Antarctic buildings.
Total equity
The department ended the year with total equity of $297.191million, an increase of $16.714million from the equity of $280.477million in 2007-08.
Asset management
The department's assets are located throughout Australia. The largest material component of assets is attached to the Australian Antarctic Division. Assets continue to age perpetually putting pressure on funding for their upkeep andreplacement.
Procurement activities
Purchasing and procurement
The department's procurement activities in 2008-09 were conducted in accordance with the Commonwealth Procurement Guidelines (CPGs). Under the CPGs the core principle underpinning procurement is value for money.
Department's Procurement Framework
The department has adopted a devolved procurement framework which places responsibility for procurement with the appropriate financial delegate. To support these delegates the department has established Chief Executive Instructions for procurement and provides awareness training; maintains relevant documentation; provides central advice on risk management, probity, specification writing and maintains standard tender and contract templates.
A central procurement cell in the Financial Management Branch provides assistance to line areas conducting procurement and ensures compliance with relevant instructions, policies and procedures.
Department's performance against core purchasing policies
In 2008-09 the department complied with the mandatory procurement procedures as outlined in the CPGs.
The department advertises tender opportunities through the AusTender website. Our Annual Procurement Plan for 2008-09 was published on AusTender in June 2008 and updated throughout the year. Our Annual Procurement Plan for 2009-10 was published on AusTender in June 2009.
Reporting
The department met the requirement to report on the AusTender website all contracts entered into in 2008-09 with a value of $10,000 or more.
The department met the requirement to report on the Senate Order on Government Agency contracts for the financial year and the calendar year. All contracts over $100,000 are listed at www.environment.gov.au/about/contracts.
The department met the requirement to report to the Department of Finance and Deregulation on projects requiring Regulation 10 authorisation.
Consultancy services1
The department conducts procurement for consultancy services in accordance with the established procurement framework and in accordance with the CPGs. The selection and engagement of consultants is determined by the principle of value for money.
Expenditure on consultancies during 2008-09
During 2008-09, 264 new consultancy contracts were entered into involving total actual expenditure of $11.65million. In addition, 112 ongoing consultancy contracts were active during the 2008-09 year, involving total actual expenditure of $9.91million.
The list of consultancy contracts let in 2008-09 to the value of $10,000 or more is available as a PDF file.
The list of consultancy contracts let in 2008-09 to the value of $10,000 or more is at www.environment.gov.au/about/publications/annual-report/08-09.
If you cannot access this list, please contact the department to organise a suitable alternative format.
Information on expenditure on contracts and consultancies is also available on the AusTender website, www.tenders.gov.au .
Exempt contracts
During 2008-09 there were no standing offers or contracts in excess of $10,000 (inclusive of GST) exempted by the chief executive from being published on AusTender under the Freedom of Information Act 1982.
Access by the Auditor-General
The department's standard funding agreements allow for access by the Auditor-General. The long form services agreement allows for such access. The short form services agreement does not include a provision allowing for Auditor-General access. There are a number of other program specific funding agreements some of which don't specifically mention Auditor-General access.
Advertising and market research
This section is presented in accordance with the requirements of section 311A of the Commonwealth Electoral Act.
| Market research | ||
|---|---|---|
| Agency | Purpose | Expenditure $ (GST inclusive) |
| GfK Blue Moon Research | Energy Efficient Homes Package | $102,025 |
| Wallis Consulting Group | Research into communicating about household energy efficiency and regulations | $108,745 |
| Winton Sustainable Research Strategies | Research into communication materials for energy efficient lighting and televisions | $30,140 |
| Total | $240,910 | |
| Advertising | ||
| Agency | Purpose | Expenditure |
| Boiler Room | Consumer air conditioner information campaign | *Total DEWHA contribution to campaign $581,839.20 |
| Total | $581,839.20 | |
| Direct mail | ||
| Agency | Purpose | Expenditure |
| Canberra Mailing and Envelopes | National Solar Schools Program | $6,298 |
| National Mailing and Marketing | Energy efficient homes package | $2,926 |
| Total | $9,224 | |
Note: *A consumer information look for the tick campaign, conducted jointly with the Australian Refrigeration Council, to alert consumers to leaking air conditioners. The campaign ran from November 2008-January 2009, with a total campaign spend of $949,977.94 (including GST), ofwhich the department contributed $581,839.20.
Grant Programs
List of Discretionary Grants Programs for the period 1 July 2008 to 31December 2008
Australian Antarctic ScienceGrantsProgram
Australian Antarctic Science Program Grants support high-quality research projects which make a significant contribution to Australia's Antarctic research program.
Greenhouse Gas AbatementProgram
GGAP aims to reduce Australia's greenhouse gas emissions by supporting activities that will result in substantial emissions reductions or substantial sink enhancement, particularly in the first Kyoto Protocol commitment period (2008-2012). The program also aims to improve environmental practices in the motor trades sector, including the management of used oil, recycling of consumables, reducing emissions to air, solid and liquid waste management, waterconservation and storage of hazardous/dangerous substances.
Low Emissions Technology and Abatement
The Low Emission Technology and Abatement (LETA) measure will reduce greenhouse gas emissions over the longer term by supporting the identification and implementation of cost effective abatement opportunities and the uptake of small-scale low emission technologies inbusiness, industry and local communities.
Solar Cities
The Solar Cities program provides funding todemonstrate the costs and benefits of solarpower, smart electricity technologies, energy efficiency and pricing mechanisms inurban settings.
Renewable Remote Power Generation Program
The Renewable Remote Power Generation Program aims to increase the uptake of renewable energy technology in remote areas of Australia. The program assists in providing an effective electricity supply to remote users; assist in the development of the Australian renewable energy industry; help meet the energy infrastructure needs ofindigenous communities; and lead to long-term greenhouse gas reductions.
Education for Sustainable Development Grants Program
The Education for Sustainability Grants Program supports strategic community education activities that are national in focus orthat have the potential to act as a catalyst for national change in support of more sustainable practices.
LEAD Group
Funding provided to support the Global Lead Advisory Support Service (GLASS) is targeted at achieving one of the Commonwealth Government's environmental priorities. This priority is to reduce environmental exposure to lead and maintain a comprehensive public resource on lead.
Commemorating Historic Eventsand Famous People
Provides funding to projects for the maintenance of graves of former Australian Prime Ministers and Governors-General buried in Australia and projects commemorating people, events and places of national historicalsignificance.
Historic Shipwreck Program
To assist Commonwealth, state and territory government agencies and the Australasian Institute for Maritime Archaeology protect and preserve historic shipwrecks and associated relics and educate the public regarding this cultural resource.
Indigenous Heritage Program
The Indigenous Heritage Program supports projects that identify, conserve and promote the Indigenous heritage values of places important to Aboriginal and Torres Strait Islander people. Projects relating to Indigenous places which are on, or may be suitable for inclusion on, the National Heritage List will be favourably considered.
National Heritage InvestmentInitiative
The National Heritage Investment Initiative is a four year (2005-06 to 2008-09) grants program that provides assistance to restore and conserve Australia's most important historic heritage places. Under the program, priority is given to places included in the National Heritage List.
National Trusts PartnershipProgram
The National Trusts Partnership Program provides assistance to the state and territory National Trusts and the Australian Council of National Trusts to increase public awareness, understanding and appreciation of Australia's cultural heritage, and to enhance and promote the conservation of Australia's heritage.
Australian Government's Community Water Grants Program
A community focused component of the Australian Government Water Fund, Community Water Grants support communities organisations, local governments, schools, businesses and Natural Resource Management, regional bodies for on-ground water savings and water quality improvements.
Caring for our Country - Natural Heritage Trust
The Natural Heritage Trust (Natural Heritage Act 1997) is the majority funding source for the Caring for our Country initiative. The initiative aims to achieve an environment that is healthy, better protected, well managed, resilient, and provides essential ecosystem services in a changing climate.
Caring for our Country - Working on Country
Working on Country is a component of the Caring for our Country initiative and provides funding to contract Indigenous rangers to provide environmental services to the Australian Government for land, sea and cultural management. The objectives of Working on Country are to support Indigenous aspirations in caring for country, protect and manage Australia's environmental and heritage values, and provide nationally accredited training and career pathways for Indigenous people in land and sea management, in partnership with industry and others.
Caring for our Country - Environmental Stewardship
The aim of this initiative is to improve the quality and extent of high quality public environmental assets on private land or impacted by activities on private land. Environmental Stewardship will engage land managers in long term contracts of up to fifteen years to manage targeted assets using market-based measures as appropriate. This initiative complements the use of other existing policy approaches such as regulation, grants programs, setting aside land in national parks and reserves and voluntary conservation on private land through covenants and other mechanisms.
A sustainable Future for Tasmania - Mole Creek
This initiative is being delivered through the Mole Creek Karst Forest Program (MCKFP)-part of the Forest Conservation Fund (FCF) established under the Tasmanian Community Forest Agreement. The aim of the FCF is to protect up to 45 600 hectares of old growth and under-reserved forests on private land in Tasmania through market based mechanisms. The MCKFP wascreated through a special allocation of $3.6m announced by the then Prime Minister to protect up to 2400 hectares of forest on private land to protect karst values in the Mole Creek area.
A sustainable Future for Tasmania - Forest Tourism
The $3 million Tasmanian Forest Tourism Initiative aims to assist the development of environmentally sensitive tourism infrastructure in Tasmania by enhancing visitor access andexperiences of Tasmania's unique forests.
A sustainable Future for Tasmania - Private Lands
The Private Lands initiative is a component of an overarching program, the Forest Conservation Fund (FCF). The FCF is a voluntary program to increase the private land component of the Comprehensive, Adequate, and Representative (CAR) Reserve system to protect up to 45 600 hectares of old growth and under-reserved forests on private land in Tasmania through market based mechanisms.
Commonwealth Environment Research Facilities
A national program to support world class public good research on the significant environmental challenges that Australia faces, drawing on multiple disciplines, collaboration on existing research strengths.
Commonwealth Environment Research Facilities-TheAustralianMarine MammalCentre Grants program
The Australian Marine Mammal Centre is the only national research centre dedicated to the understanding and conservation of whales, dolphins, seals and dugongs. It supports applied research and provides scientific input for marine mammal conservation policy. The AMMC manages a national marine research fund from which commissioned prioritised research is conducted.
Grants to Voluntary Environment and Heritage Organisations (GVEHO)
The GVEHO program provides administrative funds to help community based environmental and heritage organisations to involve the community in the conservation and protection of Australia's natural environment and cultural heritage.
National Taxonomy Research GrantProgram
This program supports the documentation ofAustralia's biological diversity and facilitates training to increase the national taxonomic effort.
National Reserve System Program(CFOC)
The National Reserve System element of the Caring for our Country initiative meets the requirement under the National Strategy for theConservation of Australia's Biological Diversity to establish a comprehensively adequate and representative system of terrestrial protected areas.
Indigenous Protected Areas (CFOC)
The Indigenous Protected Areas element of the Caring for our Country initiative supports Indigenous landowners to establish Indigenous Protected Areas on their lands as part of Australia's National Reserve System. The co-management component of the Indigenous Protected Area element supports Indigenous interests to develop co-management arrangements on existing protected areas.
Indigenous Culture SupportProgram
The Indigenous Culture Support (ICS) program supports the maintenance and continued development of Indigenous cultures in communities. The emphasis of the program is on participation by members of Indigenous communities in cultural activities and transmission of knowledge and skills across age groups to build sustainable communities. ICS also supports new forms of cultural expression and cultural exchange and projects to increase public awareness of Indigenous culture.
Maintenance of Indigenous Languages and Records Program
The Maintenance of Indigenous Languages and Records program aims to address the steady erosion and loss of Australia's estimated original 250 Indigenous languages by providing funding support for the maintenance and revival of these languages, particularly through community-based projects.
Indigenous Broadcasting Program
The Indigenous Broadcasting Program (IBP) supports Indigenous community radio broadcasting through direct funding for individual broadcasters, and indirect support of activities such as regional and peak bodies, radio content production and media training for the sector. The program also supports Indigenous Community Television and Imparja Television, Australia's only Indigenous-owned commercial television service. The program's main objective is to help provide broadcasting services that promote Indigenous culture and language and inform Indigenous Australians on accessing a range of health, legal, education and housing services.
National Arts and Crafts IndustrySupport
The National Arts and Crafts Industry Support(NACIS) program provides direct funding support to Indigenous art centres andarts support and advocacy organisations. The program's overall objectives are to assist art centres to become stronger and to build a more sustainable Indigenous visual arts industry.
Cultural Development Program
The department administers a range of programs which support cultural excellence, provide access to cultural activities and promote Australia's moveable heritage. Funding for many of these programs is collectively grouped under the Cultural Development Program for budgeting purposesand includes:
Playing Australia
National touring program for the performing arts, designed to assist the touring of professionally produced productions across state and territory boundaries, particularly to regional and remote areas, where this is currently not commercially viable and there isademonstrated audience demand.
Source: Regional Arts section
Regional Arts Fund
A devolved program, delivered by the peak regional arts organisation in each state, and by arts departments in the territories, which supports sustainable cultural development in regional and remote communities though encouraging the formation of productive partnerships to support home-grown arts activities and the creation of networks, to reduce isolation, exchange ideas and publiciseopportunities.
Festivals Australia
The Festivals Australia program provides funds to add new innovative one-off cultural activities to existing ongoing regional and community festivals.
Contemporary Music TouringProgram
The Contemporary Music Touring Program supports touring opportunities for emerging Australian musicians and increases audience access to live performances of contemporary music across the country.
Visions of Australia Program
The Visions of Australia Program is the Australian Government's national touring exhibitions funding program, assisting not-for-profit incorporated organisations and public collecting institutions to develop and tour exhibitions of Australian cultural material throughout Australia, particularly to regional and remote areas.
Contemporary Touring Initiative
The Contemporary Touring Initiative (CTI) is part of the Australian Government's Visual Arts and Craft Strategy. The CTI aims to attract new and existing audiences to contemporary Australian visual arts and craft. The CTI provides assistance to collecting institutions and other incorporated not-for-profit Australian organisations with demonstrated experience in developing and touring exhibitions of visual arts and craft material, to tour exhibitions of contemporary Australian visual arts and crafts.
Distributed National Collection
The Distributed National Collection program supports our national collections held in regional and community galleries, museums, libraries and archives. Support is delivered through the Australian National Maritime Museum's Maritime Museums of Australia Support scheme, the National Library of Australia's Community Heritage Grants program and the Museums Australia Conference.
List of Grants Programs for the period 1January2009 to 30June2009
Action on Energy Efficiency
Advanced Electricity Storage
Alternative Fuels Conversion Program
Australian Biological Resources Study Participatory Program
Blackburn Lakes Land Purchase
Books Alive
Cape York Welfare Relief
Caring for our Country
Climate Change Strategy Programs
Community Water Grants
Connect Australia
Cultural Development Program
Film Finance Corporation Australia
Great Artesian Basin Sustainability
Green Precincts
Greenhouse Gas Abatement Program
Home Owner Insulation
Hot Water Rebate Program
Indigenous Art Culture and Language
Indigenous Broadcasting Program
Indigenous Heritage Program
Kokoda Track assistance Papua New Guinea
Launceston Air Quality
Living Murray Initiative
Local Greenhouse Action Program
Low Emissions
Low Emissions Technology Demo Fund
Maintaining Australia's Biodiversity Hotspots
Marine and Tropical Science Research Facility
Modernising Irrigation
Murray Darling Basin Commission
Murray Environmental Flows
National Cultural Heritage Account
National Heritage Investment Initiative
National Indigenous Television
National Solar Schools Plan
National Trusts Partner
National Water Security Plan for Cities andTowns
Natural Heritage Trust - Bushcare
Natural Heritage Trust - Coastcare
Natural Heritage Trust - Landcare
Natural Heritage Trust - Rivercare
Commonwealth Environment Research Facilities
National Environment Protection Council Service Corporation
Northern Territory Flexible Funding Program
Ozone Protection and Synthetic Greenhouse Gas Account
Photovoltaic Rebate Program/Solar Homes
Point Nepean Community Trust
Prime Minister's Life
Reef and Aquatic
Renewable Energy Equity Fund
Renewable Remote Power Generation Program
Representative Areas Program - Structural Adjustment Package
Restoring the Balance
Scout Hall Water Program
Solar Cities
Solar Homes and Communities
Stewardship Initiative
Strengthening Tasmania Programs
Taking Early Action
Tasmanian Forests
Tasmanian Water Infrastructure
Urban Water
Water Cycle Management Planning
Water Efficiency Western Australia
Water Resources Assessment and Research
Water Smart Australia
Working on Country
Further information on grants awarded by the Department of the Environment, Water, Heritage and the Arts since 1 January 2009 isavailable at: www.environment.gov.au/about/grants/index.html
Footnote:
1 The definition of 'consultant' used by the department is the definition in the Requirements for Annual Reports published on the website of the Department of the Prime Minister and Cabinet at www.dpmc.gov.au/guidelines/index.cfm .