Download Annual Report 2011-2012 - Governor-General of the ...

Management and accountabilityManagement of assets and financial processesAsset managementIn 2011–12, the Office received funding for theseventh year of the Master Plan for the ongoingmaintenance of the two vice-regal properties. TheGovernment’s commitment to this ten year worksprogram enables the Office to address deficienciesin building, plant and equipment assets that havedeteriorated or reached the end of their life cycles,are inappropriate or inadequate for their purpose, donot comply with Australian Standards, have adverseenvironmental impacts, or create WHS concerns.The implementation of the Master Plan helps toensure the heritage properties are appropriatelydeveloped and maintained for the benefit of allAustralians now and into the future. Furtherinformation is provided under Propertymanagement in the Report on Performance.In 2011–12, the Office undertook plannedcyclical stock takes, in accordance with its assetmanagement policy.In 2011–12, a total of $366,577 was spent onitems of infrastructure, plant and equipment, andcomputer software that had an individual valuegreater than the Office’s asset threshold of $3,000.This comprised $342,268 for replacement of otherinfrastructure, plant and equipment and $24,309 forcomputer software.PurchasingThe Commonwealth Procurement Guidelines (CPGs)and the Office’s Chief Executive Instructions (CEIs)provide the framework within which decisionsabout the procurement of goods and servicesare made. The Office’s procurement policies andpractices focus on:• value for money• encouraging competition• the efficient, effective, economical and ethical useof government resources• accountability and transparency.The Office’s CEIs reflect the principles set outin the CPGs and the need for compliance withCommonwealth policy by all staff when choosingprocurement methods, sourcing potential suppliersor entering into contracts.The CPGs provide for the tendering of ‘covered’procurements with a value greater than $80,000,and of construction services valued at more than$9 million. The Office’s CEIs allow for the adoptionof the most appropriate procurement method belowthese thresholds or where the procurement is notclassified by the CPGs as a ‘covered’ procurement.Purchasing activities during the year were conductedin accordance with the CPGs and the Office’sCEIs. A range of positions within the Office havedelegated responsibility for the exercise of powersunder the FMA Act. Branch heads continue to beresponsible for the expenditure of funds and themanagement of assets under their control.The Office has ongoing contracts to provide avariety of contractor services, including internalaudit, banking, payroll, office cleaning, and propertymaintenance and minor works.The Office’s annual procurement plan for 2011–12was published on AusTender on 30 June 2011.ConsultantsThe Office engages consultants on an ad hoc basisto provide professional and specialist servicesfor building works and architectural services,administrative projects, information technologysupport and systems development, and to facilitateorganisational change and management reformswhere the Office does not have the required skillsor there is a need for independent research.Prior to engaging consultants, the Office takesinto account the skills and resources requiredfor the task, the skills available internally, and thecost-effectiveness of engaging external expertise.The decision to engage a consultant is madein accordance with the FMA Act and relatedregulations including the CPGs and relevantinternal policies.During 2011–12, the Office entered into tennew consultancy contracts, involving total actualexpenditure of $90,236 (including GST). In addition,four ongoing consultancy contracts were activeduring the 2011–12 year, involving total actualexpenditure of $121,253. Information on thevalue of contracts and consultancies is availableon the AusTender website www.tenders.gov.au.Information on trends in consultancies is set out inAppendix G, Table G1.Annual Report 2011–201255