Annual Report 2011 - Legal Services Commissioner

Victorian Industry
Participation Policy
In October 2003, the Victorian
Parliament passed the Victorian
Industry Participation Policy Act
2003, which requires public bodies
and departments to report on the
implementation of the Victorian Industry
Participation Policy (VIPP). Departments
and public bodies are required to apply
VIPP in all tenders over $3 million in
metropolitan Melbourne, and $1 million
in regional Victoria. For the reporting
period, the LSC did not commence any
contracts to which the VIPP applies.
Consultancies
Details of consultancies
over $100,000
The LSC did not engage any
consultancies where the cost of the
engagement was $100,000 or above
during the reporting year.
Details of consultancies
under $100,000
In 2010-11, the LSC appointed 3
consultancies valued at less than
$100,000 each. The total value of
these consultancies was $113,792.
Total approved project fees and
expenditure for 2010-11 excludes GST.
Five year financial summary
The following table provides a summary of the LSC’s financial activity for the past five years.
Full details of the LSC’s financial activity can be found on page 39 of this report.
Figure 19: Five year summary of financial operations
2006-07 2007-08 2008-09 2009-10 2010-11
Revenue from Funding $5,350,000 $6,576,200 $6,330,360 $7,000,805 $7,553,259
Other Revenue $1,218,923 $2,905,153 $3,015,436 $3,207,293 $3,723,322
Total income from transactions $6,568,923 $9,481,353 $9,345,796 $10,208,098 $11,276,581
Total Expenditure $6,955,922 $8,417,543 $9,300,774 $10,230,644 $10,862,369
Net Result $-386,999 $1,063,810 $45,022 $(22,546) $414,212
Net Cash Flow from operating activities $25,975 $1,350,813 ($295,312) $895,307 $398,887
Total Assets $1,372,924 $2,524,595 $3,050,691 $2,985,114 $3,200,971
Total Liabilities $1,474,746 $1,562,607 $2,043,680 $2,000,650 $1,802,295
Explanation of results
During 2010-11, the LSC’s financial
result from ordinary activity was
affected by the following:
• The net result of $414,212 for 2010-11
when compared to the 2009-10 result
of ($22,546) represents a favourable
variance of $436,700. This is a
pleasing outcome that was achieved
by a combination of further funding
and other additional income. The
total income increase for the year
was $1.068 million, an increase of
10.4% This generation of income
was able to fund the expenditure
increase of $632,000 (6.1%). Each is
explained in further detail below.
Increased contributions
from the LSB
• The LSC received $7.553 million
in funding from the LSB, an
additional $553,000 from 2009-10.
The increase reflects an additional
budget increase which was based
on a submission by the LSC to
increase its staff in areas such as
RRT, consultancy and occupancy
costs in relation to additional floor
space. It is pleasing to note that the
increases are providing positive
efficiency and financial benefits. For
example the increase in costs and
fines (2010-11: $179,000 compared to
2009-10: $90,000) reflects process
and staff improvements.
Increased expenditure
• The LSC incurred total expenditure
of $10.862 million in 2010-11
compared to $10.231 million in
2009-10, an increase of $652,000,
or 6.1% After taking into
consideration the reimbursement
of staff costs from the LSB the
net expenditure was $7.379 million
compared to $7.140 million, an
increase of $219,000 or 3.0%.
• While gross salary expenditure
for 2010-11 was $7.658 million
compared to $7.152 million (an
increase of $506,000), it is important
to consider the funding recharge
by the LSB for staff costs. With
this taken into account the net
salary costs were $4.160 million
compared to prior year of $4.067
million, an increase of $93,000 or
2.2%. The increase reflects general
increases in salaries as well as
additional staff associated with the
RRT. Salaries costs were within
budget. The process and efficiency
improvements as a result of the
increase has been significant.
• Depreciation costs for the year
were $281,000 in comparison to
$229,000, an increase of $52,000
or 23%. The LSC is now amortising
costs associated with the new CHAD
computer system as well as the
recent renovations of the LSC offices.
34 Legal Services COMMISSIONER Annual Report 2011