Introduction
This section includes additional material disclosures required by accounting standards or otherwise for the understanding of this financial report.
8.1 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.
Names
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 2022 to 30 June 2023 |
| Accountable Officer | Adam Fennessy PSM, Commissioner | 01 July 2022 to 16 September 2022 |
| Accountable Officer | Ella McPherson, Acting Commissioner | 17 September 2022 to 25 October 2022 |
| Accountable Officer | Greg Wilson, Acting Commissioner | 26 October 2022 to 02 April 2023 |
| Accountable Officer | Brigid Monagle, Commissioner | 03 April 2023 to 30 June 2023 |
End of table.
Remuneration
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 $460,000 – $469,999 ($570,000 – $579,999 in 2021-22).
Amounts relating to the Minister are reported in the financial statements of the Department of Parliamentary Services.
8.2 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
| Remuneration of executive officers | 2023 $ |
2022 $ |
| Short-term employee benefits | 2,065,377 | 1,537,570 |
| Post-employment benefits | 199,623 | 203,064 |
| Other long-term benefits | 23,236 | 113,262 |
| Total remuneration | 2,288,236 | 1,853,896 |
| Total number of executives(i) | 10 | 9 |
| Total annualised employee equivalents (ii) | 8.5 | 6.7 |
End of table.
Notes:
(i) The total number of executive officers includes persons who meet the definition of key management personnel of the entity under AASB 124 Related Party Disclosures and are also reported within the related parties note disclosure (Note 8.3).
(ii) Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over the 52 weeks for the reporting period
8.3 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; and
- 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 $28.9 million (2022: $32.0 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 |
| Brigid Monagle | Commissioner (3 April 2023 to 30 June 2023) |
| Adam Fennessy PSM | Commissioner (1 July 2022 to 16 September 2022) |
| Greg Wilson | Acting Commissioner (26 October 2022 to 2 April 2023) |
| Ella McPherson | Deputy Commissioner (1 July 2022 to 30 June 2023) |
| Sam Hannah-Rankin | Executive Director (1 July 2022 to 30 June 2023) |
| Sarah Gruner | Executive Director (1 July 2022 to 30 June 2023) |
| Annie Tinney | Director (20 July 2022 to 30 June 2023) |
| Christian Hofmann | Director (1 July 2022 to 30 June 2023) |
| Claire Mumme | Director (25 July 2022 to 30 June 2023) |
| Ko-Chen Wu | Director (18 July 2022 to 30 June 2023) |
| Meghan Lew | Director (1 July 2022 to 30 June 2023) |
End of table.
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.
| Compensation of KMP | 2023 $ |
2022 $ |
| Short-term employee benefits | 2,332,846 | 2,087,332 |
| Post-employment benefits | 199,622 | 223,951 |
| Other long-term benefits | 25,078 | 115,783 |
| Termination benefits | 28,967 | – |
| Total remuneration | 2,586,513 | 2,427,066 |
End of table.
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.
8.4 Remuneration of auditor
| 2023 $ |
2022 $ |
|
| Audit fees paid or payable to the Victorian Auditor-General’s Office | ||
| Audit of the annual financial statements | 25,000 | 18,400 |
End of table.
No other direct services to the Commission were provided by the Victorian Auditor-General’s Office.
8.5 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 2022-23 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 2022-10 Amendments to Australian Accounting Standards – Fair Value Measurement of Non-Financial Assets of Not-for-Profit Public Sector Entities |
AASB 2022-10 amends AASB 13 Fair Value Measurement by adding authoritative implementation for fair value measurements of non-financial assets of not-for-profit public sector entities not held primarily for their ability to generate net cash inflows. The standard specifies that an entity needs to consider whether an asset’s highest and best use differs from its current use only when it is held for sale or held for distributions to owners and clarifies that an asset’s use is financially feasible if market participants are willing to invest and guidance to apply the cost approach to fair value |
1 January 2024 | The impact is yet to be assessed |
End of table.
Several other amending standards and AASB interpretations have been issued that apply to future reporting periods but are considered to have limited impact on department’s reporting.
- AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-Current and AASB 2022-6 Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants
8.6 Subsequent events
No significant events have occurred since 30 June 2023 that will have a material impact on the information disclosed in the financial statements.