This section includes additional material disclosures required by accounting standards or otherwise for the understanding of this financial report.

8.1 Restructuring of administrative arrangements

With effect from 1 July 2021, as part of a machinery of government restructure, the Commission (Transferee) assumed responsibility for the Public Sector Reform, from the Department of Premier and Cabinet (Transferor).

The net assets assumed by the Commission for the Public Sector Reform due to the administrative restructure is recognised in the balance sheet at the carrying amount of those assets in the transferor’s balance sheet immediately before the transfer.

The net asset transfers were treated as a contribution of capital by the State.

2022 Transfer in
Receivables(i) 3,004,156
Total Assets 3,004,156
Employee benefits (332,376)
Total Liabilities (332,376)
Net assets 2,671,780


(i)  This includes cash transferred, which is recognised as part of the amount recoverable from the government by the Commission.

8.2 Responsible persons

In accordance with the Ministerial Directions issued by the Assistant Treasurer under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.


The persons who held the positions of Minister and Accountable Officer in the Commission during the financial year were as follows:

Position Name Term
Responsible Minister The Hon Danny Pearson, MP, Minister for Government Services 01 July 2021 to 30 June 2022
Accountable Officer Adam Fennessy PSM, Commissioner 01 July 2021 to 30 June 2022


Remuneration received or receivable by the Accountable Officer, in connection with the management of the Commission during the reporting period was in the range of $570,000 – $579,999 ($490,000 – $499,999 in 2020-21).

Amounts relating to the Minister are reported in the financial statements of the Department of Parliamentary Services.

8.3 Remuneration of executives

The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the table below. Total annualised employee equivalents provide a measure of full time equivalent executive officers over the reporting period.

Remuneration comprises employee expenses in all forms of consideration paid, payable or provided by the entity or on behalf of the entity, in exchange for services rendered, and is disclosed in the following categories:

  • short-term employee expenses include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services;
  • post-employment benefits include employer contributions for members of both defined benefit and defined contribution superannuation plans;
  • other long-term benefits include long service leave, other long-service benefit or deferred compensation; and
  • termination benefits include termination of employment payments, such as severance packages.

Remuneration of executive officers

Short-term employee benefits 1,537,570 1,270,943
Post-employment benefits 203,064 140,483
Other long-term benefits 113,262 (6,421)
Total remuneration 1,853,896 1,405,005
Total number of executives 9 6
Total annualised employee equivalents  (i) 6.7 4.8


(i)  Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over the 52 weeks for the reporting period.

8.4 Related parties

The Commission is a wholly owned and controlled entity of the State of Victoria. Related parties of the Commission include:

  • all key management personnel and their close family members
  • all cabinet ministers and their close family members
  • all departments and public sector entities that are controlled and consolidated into the whole of State consolidated financial statements.

Significant transactions with government-related entities

The Commission received grants from the Department of Premier and Cabinet of $30 million (2021: $12 million).

Key management personnel (KMP) of the Commission during the financial year include the Portfolio Minister, the Commissioner and the members of the Senior Executive Team as detailed below.

Key management personnel Role
Adam Fennessy PSM Commissioner (1 July 2021 to 30 June 2022)
Julia Griffith PSM Deputy Commissioner (1 July 2021 to 31 January 2022)
Ella McPherson Deputy Commissioner (15 November 2021 to 30 June 2022)
Natasha Thompson Executive Director (1 July 2021 to 27 May 2022)
Daen Dorazio Executive Director (1 July 2021 to 15 March 2022)
Verity Harris Executive Director (1 July 2021 to 27 May 2022)
Christian Hofmann Director (1 July 2021 to 30 June 2022)
Samantha Hannah Rankin Executive Director (1 July 2021 to 30 June 2022)
Sarah Gruner Executive Director (30 May 2022 to 30 June 2022)

The compensation detailed below excludes the salary and benefit the Portfolio Minister receives. The Minister’s remuneration and allowance are set by the Parliamentary Salaries and Superannuation Act 1968 and are reported in the financial report of the Department of Parliamentary Services.

Short-term employee benefits 2,087,332 1,737,573
Post-employment benefits 223,951 162,177
Other long-term benefits 115,783 (3,320)
Total remuneration 2,427,066 1,896,430

Transactions with KMPs and other related parties

Given the breadth and depth of State government activities, related parties transact with the Victorian public sector in a manner consistent with other members of the public. Further employment of processes within the Victorian public sector occur on terms and conditions consistent with the Public Administration Act 2004 and Codes of Conduct and Standards issued by the Victorian Public Sector Commission. Procurement processes occur on terms and conditions consistent with the Victorian Government Procurement Board requirements.

Outside of normal citizen type transactions with the Commission, there were no related party transactions that involved KMPs and their close family members. No provision has been required, nor any expense recognised, for impairment of receivables from related parties.

8.5 Remuneration of auditor

No other direct services to the Commission were provided by the Victorian Auditor-General’s Office.

Audit fees paid or payable to the Victorian Auditor-General’s Office
Audit of the annual financial statements 18,400 17,500

8.6 Australian Accounting Standards issued that are not yet effective which are applicable to the Commission

Other accounting policies – contributions by owners

In relation to machinery of government changes and consistent with the requirements of AASB 1004 Contributions, contributions by owners, contributed capital and its repayments are treated as equity transactions and do not form part of the department’s income and expenses.

Additions to net assets that have been designated as contributions by owners are recognised as contributed capital. Other transfers that are contributions to, or distributions by, owners are designated as contributions by owners.

Transfers of net assets or liabilities arising from administrative restructurings are treated as distributions to, or contributions by, owners.

Australian Accounting Standards issued but not yet effective

Certain new and revised accounting standards have been issued but are not effective for the 2021-22 reporting period. These accounting standards have not been applied to the department’s financial statements. The State is reviewing its existing policies and assessing the potential implications of these accounting standards which includes:

Standard/Interpretation Summary Applicable for annual reporting periods beginning on Impact on public sector entity financial statements
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-Current This Standard amends AASB 101 to clarify requirements for the presentation of liabilities in the statement of financial position as current or non-current. A liability is classified as non-current if an entity has the right at the end of the reporting period to defer settlement of the liability for at least 12 months after the reporting period. The meaning of settlement of a liability is also clarified.
AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current – Deferral of Effective Date was issued in August 2020 and defers the effective date to annual reporting periods beginning on or after 1 January 2023 instead of 1 January 2022, with earlier application permitted.
1 January 2023 The amended standard is not expected to have a significant impact on the public sector.

Several other amending standards and AASB interpretations have been issued that apply to future reporting periods but are considered to have limited impact on the Department’s reporting.

  • AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and Other Amendments.
  • AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definitions of Accounting Estimates.
  • AASB 2021-6 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies: Tier 2 and Other Australian Accounting Standards.
  • AASB 2021-7 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128 and Editorial Corrections.

8.7 Subsequent events

No significant events have occurred since 30 June 2022 that will have a material impact on the information disclosed in the financial statements.