ComSuper Annual Report to Parliament 2014-15 · > Annual Report of the Superannuation Fund Management Board, from 1922–23 to 1928–29 > Annual Report of the Superannuation Board,

ComSuper Annual Report 2014–15

2014-15

2014-15

2 ComSuper Annual Report 2014–15

© Commonwealth of Australia 2015

ISSN 1031 8585

ISBN 978-1-92146-64-7

All material presented in this publication is provided under a Creative Commons Attribution 3.0 Australia licence.

For the avoidance of doubt, this means this licence only applies to the material as set out in this document.

The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3.0 AU licence (creativecommons.org/licences/by/3.0/au).

This Annual Report has previously been published as:

> Annual Report of the Superannuation Fund Management Board, from 1922–23 to 1928–29

> Annual Report of the Superannuation Board, from 1929–30 to 1975–76

> Annual Reports of the Superannuation Fund Investment Trust and the Commissioner for Superannuation, from 1976–77 to 1988–89 (also Interim Reports from 1976–77 to 1992–93)

> Commissioner for Superannuation Annual Report, from 1993–94 to 2010–11

See also the annual reports of the Commonwealth Superannuation Corporation.

All of the above reports are tabled before Parliament.

ComSuper ABN: 77 310 752 950

Superannuation Product Identification Number (SPIN): CMSX100AU

Important note: All contribution, benefit, membership and exit statistics are derived solely from records available at the time they were compiled.

Where statistics for earlier financial years are quoted, these may vary from those previously published due to the application of retrospective adjustments. For similar reasons statistical information in this report may also vary from that presented by other agencies.

3ComSuper Annual Report 2014–15

Letter of transmittal

Senator the Hon Mathias Cormann Minister for Finance Parliament House CANBERRA ACT 2600

Dear Minister

I provide you with the ComSuper Annual Report for 2014–15, prepared in accordance with:

> the Requirements for Annual Reports, approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit as required under subsection 63(2) of the Public Service Act 1999

> subsection 24(1) of the ComSuper Act 2011

> section 46 of the Public Governance, Performance and Accountability Act 2013.

During 2014–15, no directions were made by Commonwealth Superannuation Corporation (CSC) to the CEO of ComSuper pursuant to paragraph 8(3)(a) of the ComSuper Act 2011.

Regarding the Fraud Rule, I am aware that in 2014–15 ComSuper:

> had a fraud control plan in place

> undertook the preventative and detection measures detailed in this report

> had procedures and processes in place for recording and reporting suspected fraudulent activities.

This information was confirmed to CSC on 30 June 2015 upon the merger of ComSuper into CSC.

Yours sincerely

Patricia Cross Chairman Commonwealth Superannuation Corporation

29 September 2015


Reader’s guideThe ComSuper 2014-15 Annual Report has been prepared in line with the Requirements for Annual Reports, as approved by the Joint Committee of Public Accounts and Audit.

This report also satisfies the annual reporting requirements set out in the Public Governance, Performance and Accountability Act 2013 and subsection 24(1) of the ComSuper Act 2011.

This report is divided into the sections outlined below.

OverviewAs a result of the merger of ComSuper into the Commonwealth Superannuation Corporation (CSC) on 1 July 2015 this section provides a review by the Chief Executive Officer of CSC of ComSuper’s achievements and challenges of 2014–15. This section also outlines ComSuper’s purpose and governance arrangements, outcome and program structure, and key stakeholder relationships at 30 June 2015.

Report on performanceThis section summarises ComSuper’s performance against the 2014–15 Portfolio Budget Statements and is presented in the following sections:

> Schemes administration - describes administration practices, service delivery and complaints data

> Corporate governance - describes governance arrangements and operations

> Resource management - describes management of human resources, information and communications technology and finances.

Financial statementsThis section contains ComSuper’s audited financial statements for the year ending 30 June 2015.

AppendicesThe report includes 10 appendices which contain information required by legislation and other reporting requirements.

Reference materialTo enhance the usability of this report, a glossary of terms and acronyms, compliance index for referencing mandatory reporting requirements, and an index is included in this report.

Online availabilityThis report is available online at: www.csc.gov.au

Enquiries about this reportContact Officer: Secretary, Commonwealth Superannuation Corporation

Postal Address: GPO Box 2252, Canberra ACT 2601

Email: [email protected]

Telephone: (02) 6272 9000

ContentsLetter of transmittal 3

Reader’s guide 4

1. Overview

Chief Executive Officer’s review 10

Roles and functions 11

Organisational structure 13

Outcome and program structure 14

2. Report on performance

Performance summary 16

2A.Schemes administration

Overview 20

Services to members 21

Services to employers 28

Services to CSC 28

Services to policy agencies 29

Cross-agency collaboration 29

Legislative changes 30

Administration system changes and projects 31

Complaints, reviews and appeals 32

2B.Corporate governance

Overview 38

Business planning 42

ComSuper Executive Committee and supporting committees 43

2C.Resource management

ComSuper’s workforce 46

Learning and development 50

Health and safety 50

Financial management 53

Managing information and communication technology 54


3. Financial statements 57

4. Appendices

Appendix A: Main schemes administered 116

Appendix B: Additional scheme information 118

Appendix C: Other schemes administered 118

Appendix D: Freedom of information and privacy 121

Appendix E: Consultancies 122

Appendix F: Advertising and market research 123

Appendix G: Ecologically sustainable development 124

Appendix H: Agency Resource Statement 126

Appendix I: Grant programs 127

Appendix J: Corrections to the 2013–14 Annual Report 127

5. Reference material

Glossary and acronyms 130

List of requirements 132

Index 136


Charts and tablesChart 1: ComSuper organisational structure at 30 June 2015 13

Chart 2: ComSuper’s internal committee structure as at 30 June 2015 43

Chart 3: ComSuper’s work health and safety governance structure at 30 June 2015 51

Table 1: ComSuper’s key stakeholder relationships 12

Table 2: Performance against Program 1.1 deliverables 16

Table 3: Performance against Program 1.1 Key Performance Indicators 17

Table 4: Annual performance against service level agreements 20

Table 5: Number of initial invalidity classifications – military schemes 24

Table 6: Number of death and early release benefit applications processed 25

Table 7: Annual summary of member enquiries 27

Table 8: Complaints, Parliamentary representations/ Ministerials and Commonwealth Ombudsman enquiries 33

Table 9: Complaints by type 33

Table 10: Summary of reconsideration activity 34

Table 11: Summary of SCT complaints 35

Table 12: Summary of legal claims 2014–15 36

Table 13: Workforce profile for 2013–14 and 2014–15 47

Table 14: Salary ranges contained in the Agreement at 30 June 2015 49

Table A1: Main schemes summary 116

Table A2: Scheme membership and transactions 117

Table A3: 1922 pensions 118

Table A4: PNG pensions 119

Table A5: DFRB pensions 120

Table A6: Expenditure on new consultancy services 122

Table A7: Market research, direct mail and media advertising for 2014–15 123

Table A8: Environmental performance indicators 125

Table A9: Agency Resource Statement 2014–15 126

Overview1


Overview

Chief Executive Officer’s reviewI am writing this overview of the 2014–15 financial year with the scheme administration and related functions of ComSuper having become part of the Commonwealth Superannuation Corporation on 1 July 2015.

In 2014–15, the focus of activity was meeting very heavy demands from members, and preparing for the integration of functions into CSC on 1 July 2015.

Demand for some services, including benefits estimates and invalidity claims, was at record levels during 2014–15. The major increase in workloads across the business was managed effectively, while still maintaining service standards.

There was considerable preparation during the year for the merger of defined benefit scheme administration functions into CSC on 1 July 2015. Staff were actively engaged in that process.

Progress was made with projects including the completion of major improvements to the ComSAS system used to administer APS schemes, and progression for the implementation of the SuperStream Standard for Contributions. An important upgrade to the Capital system, used to process military accounts and all defined benefit scheme pensions, also progressed in 2014–15.

It has been a notable accomplishment to meet unprecedented customer demands, achieve service standards and prepare for change. My sincere thanks to the staff for making that possible.

Peter Carrigy-Ryan

CEO Commonwealth Superannuation Corporation

August 2015


Roles and functionsComSuper was an agency established by section 4 of the ComSuper Act 2011 and a statutory agency for the purposes of the Public Service Act 1999. For the period of this report ComSuper was a listed entity for the purposes of the Public Governance, Performance and Accountability Act 2013 (PGPA Act 2013) in accordance with section 5A of the ComSuper Act 2011.

Under section 6 and subsection 8(1) of the ComSuper Act 2011, ComSuper provided superannuation administration services to CSC which is responsible for the following schemes:

> Commonwealth Superannuation Scheme (CSS)

> Public Sector Superannuation Scheme (PSS)

> Public Sector Superannuation accumulation plan (PSSap)

> Military Superannuation and Benefits Scheme (MilitarySuper)

> Defence Force Retirement and Death Benefits scheme (DFRDB)

> Defence Forces Retirement Benefits scheme (DFRB)

> Defence Force (Superannuation) (Productivity Benefit) (DFSPB) scheme

> 1922 scheme

> Papua New Guinea (PNG) scheme.

These are among the largest and most complex occupational superannuation schemes in Australia. Management of the schemes’ investment funds is the responsibility of CSC which also reports annually to Parliament.

The main services ComSuper provided include:

> collection of member contributions and maintenance of member accounts

> payment of lump sum and fortnightly pension benefits

> call centre/help desk functions

> accounting services and related functions

> dispute resolution.

ComSuper’s administrative costs were funded through the ComSuper special account created under subsection 21(1) of the ComSuper Act 2011.

ComSuper’s revenue came from fees paid quarterly by employers whose current or former employees are members of the superannuation schemes administered by ComSuper. Where appropriate, ComSuper received Federal Budget appropriations for projects or legislative changes.

From 1 July 2015 ComSuper merged into CSC which is a corporate Commonwealth entity for the purposes of the PGPA Act 2013.

The main driver behind the merger of ComSuper into CSC was greater streamlining of functions and more efficient governance arrangements through having a single agency responsible for the main Australian Government superannuation schemes.

Our purpose and visionAs outlined in the ComSuper Strategic Plan 2013–15, ComSuper’s purpose was to ‘provide superannuation administration services to scheme members on behalf of CSC’.

ComSuper’s vision was to be viewed as providing ‘trusted expertise delivering excellence in superannuation services’.


Overview

ComSuper’s key stakeholder relationshipsThe table below shows the key relationships between ComSuper and its stakeholders.

Table 1: ComSuper’s key stakeholder relationships

Stakeholder Description

Commonwealth Superannuation Corporation (CSC)

CSC is trustee of four regulated APS and military schemes – CSS, PSS, PSSap and MilitarySuper.

CSC is trustee of five unregulateda APS and military schemes – DFRDB, DFRB, DFSPB, 1922 and PNG schemes.

Until it merged into CSC on 1 July 2015 ComSuper provided superannuation administration services to CSC for these schemes (except PSSapb).

CSC is responsible for the general administration of the Governance of Australian Government Superannuation Schemes Act 2011 and other acts administered by CSC. CSC is directly regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).

Minister for Finance

Minister for Defence

Minister for Defence Science and Personnel

Department of Finance

Department of Defence

The Ministers and Departments have policy oversight of the superannuation arrangements applying to members of the superannuation schemes administered by ComSuper.

a Exempt public sector schemes are those not regulated under the Superannuation Industry (Supervision) Act 1993. b In December 2014, CSC assumed overall responsibility for the administration of the PSSap scheme and all reporting for that scheme can be found in the CSC Annual Report 2014-15


Chief Executive OfficerDr Jill Charker

Acting Branch Head Corporate Strategy and

CoordinationTracy Savage

Chief Information OfficerMark Sawade

Branch Head People and Governance

Richard Bridge

Acting Branch Head Member and Employer Access and SupportJon Hale

Branch Head Member Benefits and

Account ManagementJames Peterswald

Acting Chief Financial OfficerVidoshi Jana

Organisational structureChart 1 shows the organisational structure of ComSuper’s senior level staff at 30 June 2015.

The composition of senior management committees and their roles is described in Section 2B under ComSuper Executive Committee and supporting committees.

Chart 1: ComSuper organisational structure at 30 June 2015


Overview

Outcome and program structureComSuper’s operations fell within the Finance portfolio and for the purposes of the 2014–15 Portfolio Budget Statements (PBS) had a single outcome and program objective which is:

To provide access to Australian Government superannuation benefits and information, through developing members’ understanding of the schemes, processing contributions, supporting investment processes, paying benefits and managing member details, for current and former Australian Public Servants and members of the Australian Defence Force, on behalf of the Commonwealth Superannuation Corporation.

The expectations of stakeholders were defined and measured through:

> ComSuper’s performance against the Finance Minister’s expectations

> regular performance reporting against service level agreements with CSC and the Department of Defence

> member client satisfaction surveys developed in conjunction with CSC

> reports to the Department of Finance.

No changes were made to ComSuper’s outcome and program structure from PBS/Portfolio Additional Estimates Statements or other portfolio statements.

Report on performance

2



Performance summary ComSuper had a productive and successful year in 2014–15 and performed its functions to a high standard against program deliverables and key performance indicators.

For the purposes of the 2014–15 Portfolio Budget Statements (PBS) ComSuper’s operations had a single outcome and program objective which is:

To provide access to Australian Government superannuation benefits and information, through developing members’ understanding of the schemes, processing contributions, supporting investment processes, paying benefits and managing member details, for current and former Australian Public Servants and members of the Australian Defence Force, on behalf of the Commonwealth Superannuation Corporation.

Performance tables below are consistent with information in the 2014–15 PBS. No changes were made to ComSuper’s performance targets from the PBS/Portfolio Additional Estimates Statements.

Program 1.1: Superannuation administration services

Table 2: Performance against Program 1.1 deliverables

Deliverables 2014–15 Budget/Target 2014–15 Actual

Maintain record and financial transactions for the schemes’ membership (Total number of contributor, preserved and pensioner members)

726,500a 586,938

Accurate and timely payment of benefits to scheme members (Benefit applications processed)

35,700b 27,141

Accurate and timely fortnightly pension payments (Number of pensioners)

216,100 220,999

Timely responses to inquiries by scheme members (Number of telephone, email and written inquiries through call centre)

344,700 368,536

Provide annual member statements to contributor and preserved members (Number of annual statements issued)

510,400c 363,018

ComSuper will seek to comply with all scheme and regulatory requirements (Number of main schemes administered by ComSuper)

4 4

a Budget/target figure includes 138,300 PSSap scheme members. ComSuper ceased to have responsibility for PSSap scheme administration from 4 December 2014.

b Budget/target figure includes 12,400 PSSap benefit payments. ComSuper ceased to have responsibility for PSSap scheme administration from 4 December 2014.

c Budget/target figure includes 140,800 PSSap annual statements.



Table 3: Performance against Program 1.1 Key Performance Indicators

Key Performance Indicators 2014–15 Budget/Target

2014–15 Actual

Historical performance

Achievement of service standards (Proportion of standards achieved)

80% 89% ComSuper met this KPI for the past three years

Periodic member client satisfaction survey (Quality Service Index)

80% or higher N/Aa ComSuper met this KPI for the past three years

Timeliness of member statements (Issued by the statutory deadline of 31 December)

100% 100% KPI met in 2014–15 and 2013–14 but not met in 2012–13

Timeliness of new benefits processed (Routine benefit payments within five working days) b


Timeliness of fortnightly pension payroll (Pension payments in bank accounts on time)


Compliance issues appropriately reported and actively managed (Issues reported and managed)

100% 100% ComSuper met this KPI over the past three years

a A client satisfaction survey was not conducted in 2014–15b The calculation method for the KPI, “Timeliness of new benefits processed”, refers to the processing of routine

benefits, rather than the payment of all benefits. This reflects the fact that some benefits involve highly complex processes that are unable to be completed and paid within 5 working days. Routine benefits are processed within 5 working days of receipt of all necessary documentation.

Schemes administration



Overview ComSuper delivered superannuation schemes administration services on behalf of Commonwealth Superannuation Corporation (CSC) for the following schemes:

> Commonwealth Superannuation Scheme (CSS)

> Public Sector Superannuation Scheme (PSS)

> Military Superannuation and Benefits Scheme (MilitarySuper)

> Defence Force Retirement and Death Benefits (DFRDB) scheme

> Defence Forces Retirement Benefits (DFRB) scheme

> Defence Force (Superannuation) Productivity Benefit) (DFSPB) scheme

> 1922 scheme

> Papua New Guinea (PNG) scheme.

In December 2014, CSC assumed overall responsibility for the administration of the PSSap scheme. All reporting for that scheme can be found in the CSC Annual Report 2014–15.

In 2014–15, ComSuper maintained 586,938 member and pensioner accounts and paid $6,819 million in pensions and $1,477 million in lump sum payments across all schemes.

Service level agreements ComSuper worked to Service Level Agreements (SLAs) in place with CSC for the APS schemes, and with the Department of Defence (Defence) and CSC for the military schemes.

These SLAs defined the levels of service to be delivered to scheme members. ComSuper prepared and provided reports to CSC on a regular basis showing performance against service standards.

As outlined in Table 4, ComSuper performed consistently in 2014–15 meeting 95% of the service standards for the APS schemes, and 86% for military schemes, on an annualised basis.

CSS/PSSIn 2014–15, the SLA for CSS and PSS included 132 service standards spanning the broad spectrum of service delivery.

For CSS and PSS, the service standards agreed with CSC included:

> 95% of all routine benefit applications to be paid within five business days of receipt of a valid application

> 95% of all routine benefit estimates to be provided to members within four business days of receipt of a valid request

> 70% of telephone calls answered within 60 seconds

> Less than 5% telephone call abandonment rate.

Table 4: Annual performance against service level agreements

CSS/PSS/ 1922/PNG

MilitarySuper/DFRDB/DFRB

All schemes total

Percentage of annual service standards met in 2014–15

95% 86% 86%



Military schemesFor the military schemes, there were 206 service standards agreed between CSC, ComSuper and Defence. These included:

> 90% of all routine benefit applications to be paid within five business days of receipt of a valid application

> 75% of telephone calls answered within 60 seconds

> Less than 5% telephone call abandonment rate.

Client Satisfaction Survey ComSuper regularly commissioned independent researchers to survey clients’ satisfaction with its services. The most recent survey was conducted during 2013–14, please refer to the ComSuper Annual Report 2013–14 for more details.

Services to membersAccount maintenance At 30 June 2015, ComSuper was responsible for:

> maintaining the records of member and employer contributions paid to each of the schemes

> collecting contributions on behalf of members from employers and members

> confirming data quality by validation testing

> reconciling contributions paid against the data provided by employers.

In order to fulfil these responsibilities ComSuper operated two bespoke administration platforms:

> Commonwealth Superannuation Administration System (ComSAS), developed in-house for the CSS and PSS schemes

> Capital for the DFRDB and Military Super schemes, and the Commonwealth Government’s pension payment system.

In addition, ComSuper utilised the ePASS system, a secure online portal for employers to lodge member contribution data, and for military members and pensioners to make account enquiries.

Further details about these systems can be found in Section 2C, Resource Management.

Member data was provided by 201 APS agencies for the APS schemes and by Defence for the military schemes.

ComSuper assigned earnings to member balances, accepted transfers from other superannuation funds and ensured that member details, such as salary history and part time hours, were correct. Using this information, each member was provided with an annual member statement and pensioners with bi-annual pension payment summaries.



Benefit paymentsIn 2014–15, ComSuper maintained high levels of service to members by processing benefit applications efficiently. Focus remained on improving the member experience at key life milestones, for example on retirement or the death of a spouse.

Timeframes quoted below relate to the processing of benefit applications. The banking process may take an additional two to three days for payments to be made available in a members’ bank account.

CSS/PSSComSuper received its highest ever volumes of CSS and PSS benefit applications in 2014–15 yet was able to effectively halve the time required to process these applications. This achievement was the result of process and system enhancements made during the year. These included improvements to the performance of ComSAS. For more information on this and other administration system improvements please refer to Section 2C, Managing information technology and communication.

In 2014–15, there were 4,099 CSS and 14,020 PSS standard benefit applications processed. ComSuper completed 98% of automatic and manual benefit applications within the respective five and 15 day service standards.

In the five month period from July 2014 until November 2014, the number of benefits processed by ComSuper was nearly double the normal level compared to the same period in 2013–14.

Military schemesThe military benefits team introduced changes and process improvements during 2014–15, including enhancements to the protocol between the Australian Taxation Office (ATO), Department of Veterans Affairs (DVA) and ComSuper on arrears payments when a member is medically discharged from the Australian Defence Force (ADF).

As a result there was a significant reduction in member complaints for both ComSuper and DVA.

In 2014–15, there were 8,101 MilitarySuper benefit applications processed, of which 337 required manual calculation. There were 611 DFRDB benefit applications processed in 2014–15 with 97 requiring manual calculation. The benefit applications that required manual calculation included members who had re-entered the ADF and those affected by family law splits.

Overall this was a slight decrease of approximately 3.1% in the number of benefits processed compared to 2013–14.

The introduction of the interim Class B military invalidity pensions resulted in the upgrading of 101 Class B pensions to a Class A pension during the 2014–15 year. These additional calculations are not included in the annual processing figures as they are a manual variation of the initial pension.



Pension paymentsIn 2014–15, the number of pensioners receiving fortnightly pension payments from ComSuper increased by 5,276. At 30 June 2015, ComSuper managed 220,999 pensioners compared to 215,723 in 2013–14.

ComSuper met 100% of the service standards for pension administration in 2014–15 which resulted in all pension payments and variations being made by the next available pension payday. $6,819 million was paid in pensions across all of schemes.

A total of 39,934 variations to pension or pensioner accounts were processed which included updates to personal details such as bank accounts and addresses and alterations to taxation arrangements.

Invalidity assessmentsComSuper assessed applications from APS and military scheme members to determine whether they met the legislative criteria for invalidity classification. In 2013-14, the business model used to process these claims was refined in response to growing demand. As a result there were significant efficiency gains in 2014-15 which have been passed on to members. Of particular note is the improvement to decision making time for military invalidity cases which has reduced from 95 days after separation to 45 days.

CSS/PSSComSuper assessed invalidity related applications from contributing CSS and PSS members to determine whether they met the legislative criteria for total and permanent incapacity or partial invalidity. It also assessed invalidity related applications from deferred CSS members and preserved PSS members for the early release of their benefits on medical grounds.

Assessment of CSS and PSS members included consideration of medical evidence provided by the member and their employer, an independent medical assessment, and a recommendation from an external independent panel.

In 2014–15:

> 28 CSS and 250 PSS members were issued with an Invalidity Retirement Certificate

> one CSS and 55 PSS new partial invalidity applications were approved and eight CSS and 24 PSS existing partial invalidity recipients were reviewed.



Military schemesComSuper assessed invalidity related applications from military scheme members who were medically discharged from the ADF to determine whether they met the legislative criteria for invalidity classification. It also assessed invalidity related applications from preserved MilitarySuper members for the early release of their benefit on medical grounds.

Assessment of military members included consideration of:

> information about the member’s capacity to undertake civilian employment, based on their skills and employment history

> an independent medical assessment

> other information provided by Defence.

In 2014–15, ComSuper continued to experience significant growth in military invalidity claims with a 12.5% increase compared to 2013–14.

At 30 June 2015, ComSuper had received 1,094 claims for invalidity compared to a total of 965 in 2013–14.

Military members retired on invalidity grounds received an A, B or C invalidity classification. Members classified as Class A (significant incapacity) or Class B (moderate incapacity) were entitled to an invalidity pension at the relevant rates. Table 5 provides further information.

Waiver of debts owing to the CommonwealthUnder subsection 63(1)(a) of the Public Governance and Accountability Act (F inance Minister to Accountable Authorities of Non-Corporate Commonwealth Entities) Delegation 2014, the Finance Minister delegated powers to the accountable authority of ComSuper to waiver an amount owing to the Commonwealth in relation to the military schemes.

In 2014–15, the accountable authority of ComSuper did not waive any debts owing to the Commonwealth in relation to the military schemes.

Table 5: Number of initial invalidity classifications – military schemes

MilitarySuper DFRDB Subtotal

13–14 14–15 13–14 14–15 13–14 14–15

Classified Class A or B entitled to invalidity pension

711 821 22 38 733 859

Classified Class C 229 219 3 16 232 235

Total 940 1,040 25 54 965 1,094



Death and early release assessmentsComSuper assessed death benefit applications from family members and representatives of deceased scheme members. This included an assessment to determine the eligibility of spouses and children for lump sum payments and reversionary pensions.

ComSuper also assessed applications from preserved and contributing members of CSS, PSS and MilitarySuper for the early release of benefits on severe financial hardship grounds.

The total number of death benefit applications in 2014–15 was consistent at 342 applications compared to 3431 in 2013–14. There was a slight decrease in early release applications on grounds of severe financial hardship, or specified grounds, to 723 compared with 7332 in 2013–14. Please refer to Table 6 for further details.

1 2013-14 figures differ from those reported in the ComSuper Annual Report 2013-14 due to the omission of PSSap data. 2 Ibid

Casework servicesDespite a 33% year on year increase in cases overall, the majority of service standards in the areas of invalidity, spouse and hardship claims were met in 2014–15.

This achievement stemmed from efficiencies being made through process improvement, training and cross-skilling. ComSuper also formalised a quality framework aimed at delivering a consistent, high quality approach to all decision making within the casework area.

Particular focus was given to collaboration with Defence and DVA to improve the transition process for separating personnel. Defence, DVA and ComSuper continued to discuss better and more efficient ways to share information, in particular electronically. It is hoped that further improvements to be made in future will continue to reduce the time taken to determine invalidity decisions.

Documents and information on the PSS and CSS websites were updated to provide guidance to employers about when to initiate contact with their scheme for possible partial invalidity pension payments, pre-assessment payments or invalidity retirement. This was discussed at the Small Agencies Forum during 2014–15 and directly with larger employer agencies such as Department of Human Services (DHS), Australian Customs and Border Protection Services, Australian Taxation Office (ATO) and the Australian Bureau of Statistics (ABS).

Table 6: Number of death and early release benefit applications processed

CSS/PSS MilitarySuper DFRDB Total

13–14 14–15 13–14 14–15 13–14 14–15 13–14 14–15

Death benefit applications 253 224 85 117 5 1 343 342

Early release applications on grounds of severe financial hardship or specified grounds

532 483 201 240 N/A N/Aa 733 723

a DFRDB has no provision for early release.



Member statementsStatements help members to understand and manage their superannuation benefits by providing specific information about their account and fund performance, such as:

> investment option performance

> resignation, age retirement, invalidity and death benefit estimations

> a breakdown of benefit components including ancillary accumulations such as ATO co-contributions

> surcharge debt amounts (if applicable).

Members are provided with a statement guide to help them to understand their statement and the benefit options that are available.

A total of 363,018 statement packs were sent to members across all schemes, 205,067 for the PSS and CSS schemes and 157,951 for MilitarySuper and DFRDB.

Members continued to be encouraged to receive their statements online and a total of 26,735 statements were provided online (14,285 CSS/PSS and 12,450 MilitarySuper/DFRDB members) on an opt in basis.

CSS/PSSA total of 205,067 CSS and PSS member statements were issued as routine or automatic statements. These were available to view online by mid August 2014, with hard copies delivered by early September. Non-routine member statements that require manual calculation, including family law related statements, were delivered in early December 2014.

Military schemes A total of 157,951 MilitarySuper and DFRDB annual member statements were issued in 2014–15 and were available to view online from mid August 2014. Hard copies were delivered progressively from late August. Non-routine statements that required manual calculations were delivered by early October 2014.

Pension indexation and payment summaries Indexation was applied to all pensions by ComSuper in July 2014 and January 2015. All pensions, with the exception of DFRDB and DFRDB reversionary (widow) pensioners over the age of 55, are indexed according to movements in the Consumer Price Index (CPI) which is announced on a quarterly basis by the ABS. DFRDB pensioners over the age of 55 are indexed in the same way as age and service pensions.

The indexed component of all pensions increased by 0.4% in July 2014, and 0.9% in January 2015.

Family lawAt 30 June 2015, there were 8,309 contributing and preserved APS and military member and associate member accounts affected by family law splits.

Overall the number of contributing and preserved members affected by family law splits continued to rise. ComSuper responded to 5,743 family law enquiries in 2014–15 and processed a total of 1,826 applications for superannuation information for the purposes of a possible family law split.



Member servicesCustomer Information CentreThe ComSuper CIC provided vital services to all scheme members and their representatives including:

> information about the member’s superannuation account or pension

> benefit estimates to members and their representatives (such as financial advisors)

> details about a member’s benefit options (age, invalidity options).

Table 7 provides a break down of member enquiry types received throughout 2014–15.

During the year the CIC focused on the configuration of key business practices to ensure changes in staffing attrition rates and APS recruitment were appropriately managed.

The CIC also continued to provide dedicated assistance to employers affected by agency restructures and other machinery-of-government changes. In addition, the CIC actively participated in various organisational projects providing technical knowledge in service delivery.

Online servicesComSuper’s corporate website, www.comsuper.gov.au, provided information about ComSuper and its business and was maintained by ComSuper in accordance with Australian Government standards. The website also provided links to the trustee’s website (www.csc.gov.au), the scheme websites and the Employer Administration Centre (EAC) website.

As a result of the merger of ComSuper into CSC, www.comsuper.gov.au is scheduled for decommissioning in September 2015.

The Member Services Online (MSO) websites allowed all scheme members to:

> view the personal details on their account

> change their contact details (such as address, phone, email)

> download annual member statements

> view and download superannuation contribution transactions

> estimate future benefits

> switch investment options (where scheme rules permit).

The Pensioner Services Online (PSO) websites allowed all scheme pensioners to:

> view the personal details on their account

> change their contact details

> change bank details

> download annual payment summaries

The Employer Services Online (ESO) website allowed Australian Government agencies to submit superannuation contribution files for APS and military employees for processing.

Table 7: Summary of member enquiries

CSS/1922/ PNG

PSS MilitarySuper DFRDB/DFRB Total

Calls answered 53,092 103,155 60,475 21,505 238,227

Emails processed 14,720 24,077 13,268 6,908 58,973

Other written correspondence

2,613 3,349 1,648 741 8,351

Subtotals 70,425 130,581 75,391 29,154 305,551



Services to employers ComSuper provided support to nearly 200 employer agencies and liaised with at least 60 employer agencies on a weekly basis. Support included responding to a broad range of employer queries, including technical questions relating to scheme rules and eligibility, reconciliation of records and data submissions.

In 2014–15, ComSuper responded to 15,500 emails and 3,612 phone queries from employers and continued to work closely with employers to improve the quality of data received each pay cycle.

Employer educationIn 2014–15, ComSuper delivered 10 employer information sessions to a total of 200 people from 16 agencies within Canberra. These were customised sessions about CSS and PSS scheme rules. Overall there was an increase in training requests surrounding the invalidity process for the schemes. There was also still an emphasis on redundancies and the support ComSuper could offer to employers in regards to estimates and coordinating redundancy processes.

Requests from employers for interstate scheme training continued to decline due to the APS recruitment freeze and budget restrictions.

Services to CSCAccountingIn 2014–15, the accounting services provided to CSC by ComSuper included:

> the quarterly billing of employers for APS schemes administration costs (includes trustee component)

> investment information for cash and default investment options of APS schemes

> information to assist CSC prepare:

— their monthly and annual financial statements for all schemes

— quarterly and annual APRA returns for all schemes

— quarterly and annual tax return for all schemes

> input into unit pricing for the MilitarySuper scheme investment options.

ComSuper receives final unit prices from CSC which are entered into ComSuper’s administration systems for processing contributions, benefits and switches. CSC is responsible for publishing MilitarySuper unit prices.

Reporting Throughout the year, ComSuper provided CSC with regular performance reporting for all schemes. These reports contain up-to-date performance reporting against service standards as outlined in the respective service level agreements, along with explanations for any standards that have not been achieved. The reports also contain a variety of demographic and financial information as agreed between ComSuper and CSC.



Services to policy agenciesComSuper’s portfolio department, the Department of Finance (Finance) is responsible for overseeing the legislation and rules for the APS schemes. Defence is responsible for overseeing the legislation and rules for the military schemes. ComSuper worked closely with both of these departments to provide information and input into policy development and legislative changes.

ComSuper also provided input to other policy agencies where relevant, such as the Department of Veterans’ Affairs (DVA) and the Department of the Treasury. For example, during 2014–15, ComSuper contributed to the development of: the Peer to Peer network - a policy driven by DVA; Rehabilitation through Employment - a policy driven by Defence; and provided significant feedback regarding the draft legislation for ADF Cover (which, subject to passage of legislation by Parliament, will provide death and invalidity cover consistent with that provided to members of MilitarySuper).

Cross-agency collaborationComSuper was conscious of the Government’s commitment to increase efficiency and reduce red tape in the Australian Public Service and, as a requirement of section 17 of the PGPA Act 2013, engaged in cross-agency collaboration regularly during 2014–15.

Cross-agency collaboration increased consistency, cohesion and understanding between ComSuper and its stakeholders. It also facilitated joint planning for future cross-agency initiatives and improved coordination of services. For example, over the past year ComSuper worked to provide Defence and its personnel with a greater understanding of the processes involved for transitioning personnel. Some of the areas engaged with included Army Personnel Coordination Detachment, Defence Community Organisation, and Joint Health Command.

ComSuper also assisted Defence with the DefenceOne Project which, once completed, will result in significant changes to ComSuper’s systems. For more details please refer to Managing information and communication technology contained in Section 2C: Resource Management.

Interdepartmental Working GroupIn 2014–15, ComSuper continued to participate in the Interdepartmental Working Group for Streamlining Administration of Transitioning and Former ADF Members (IWG). This group comprises representatives from a range of Australian Government departments involved in providing services and information to serving and ex-service members. The aim of the IWG is to improve cooperation between the departments and create a smarter, whole of government approach to helping members deal with multiple agencies.

ComSuper provided input into a number of protocols that allow for the improvement of services offered to members. This included specific protocols relating to important processes that cross over agencies.

Defence DVA Information Working GroupThe Defence DVA Information Working Group was established between Defence and DVA to facilitate closer working relationships, engagement and collaboration on information management, access and exchange between the agencies.

Due to the linkages between agencies in supporting ADF members, it was agreed that ComSuper had representatives, as observers only, including IT and operations representatives. Meetings were held quarterly over the year and ComSuper contributed to these.

Advice to DVAIn 2014–15, ComSuper gave a number of presentations to DVA about the invalidity classification process helping DVA to deliver its On Base Advisory Services program, which provides a whole-of-life framework for the care of wounded, injured or ill ADF members. ComSuper also provided information to DVA about requirements and restrictions when determining a serving member’s eligibility for an invalidity pension.



Legislative changesA number of amendments to the legislation relevant to the schemes administered by ComSuper were made in 2014–15. A summary of these changes is provided below. For further information about the specific amendments please refer to ComLaw, the Australian Government website run by the Attorney-General’s Department which provides online copies of Commonwealth legislation and related documents.

Public Governance, Performance and Accountability (Consequential and Transitional Provisions) Act 2014(Relevant changes commenced on 1 July 2014)

The Public Governance, Performance and Accountability (Consequential and Transitional Provisions) Act amends approximately 250 Acts across the Commonwealth to support the implementation of the Public Governance, Performance and Accountability Act 2013 (PGPA Act 2013) and its related rules and instruments. The PGPA Act replaces the F inancial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997 as the primary financial legislation of the Commonwealth from 1 July 2014.

Statute Law Revision Act (No. 1) 2015(Relevant changes commenced on 25 March 2015)

This legislation made consequential changes to many separate Commonwealth Acts including some of the superannuation schemes administered by ComSuper The main purposes of this Act are to correct technical errors that have occurred in Acts as a result of drafting and clerical mistakes, to modernise language and remove gender specific language, to improve the Veterans’ Entitlements Act 1986 by better signposting definitions and making technical corrections and repeal spent and obsolete provisions and Acts, which will result in the repeal of approximately 30 pages of spent and obsolete provisions.

Defence Force (Superannuation) (Productivity Benefit) Amendment (Interest Factor and Other Measures) Determination 2015(Determination commenced on 12 May 2015)

The Principal Determination, the (Defence Force (Superannuation) (Productivity Benefit) Determination 1988) credits notional interest on the 3% productivity benefit and superannuation guarantee top-up in accordance with factors set out in the schedule to the Principal Determination. Previously, the superannuation guarantee top-up and factors had to be changed yearly through amendments. This amendment to the Principal Determination automates the calculation of the superannuation guarantee top-up and factors by reference to the charge percentage in the Superannuation Guarantee (Administration) Act 1992 and to the 10 yearly bond rate published by the Reserve Bank of Australia, respectively. This change will allow the Principal Determination to have perennial application, removing the need for future determinations to be made.

Amending deeds There were no amending deeds in 2014–15.

Other legislation and regulationsThe Freedom of Information Amendment (New Arrangements) Bill 2014 made minor changes to privacy and freedom of information provisions. The Spent and Redundant Instruments Repeal Regulation 2014 (No. 2) repealed old PSS amending deeds, old CSS and PSS monthly interest determinations.

The Acts and Instruments (Framework Reform) Act 2015 made changes to the Legislative Instruments regime.

Amending Acts 1970 to 1979 Repeal Act 2015 repealed several old Acts which amended the DFRB, DFRDB, and 1922 and CSS Acts.

The Governance of Australian Government Superannuation Schemes Legislation Amendment Act 2015 enabled the merger of ComSuper into CSC.



Financial framework From 1 July 2014 ComSuper’s internal financial framework, policies and procedures were consistent with the requirements of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Administration system changes and projectsIn 2014–15, ComSuper was involved in numerous activities and projects to further develop the systems and technology underpinning schemes administration. ComSuper also continued to progress with implementation of the Australian Government’s Stronger Super reforms. Details of these are provided below.

Further information about administration system changes and projects within ComSuper can also be found in Section 2C Managing information and communication technology of this report.

ComSAS Data Quality ImprovementThe ComSAS administration system is used to manage the APS defined benefit schemes. The ComSAS Data Quality Improvement project has delivered a range of data quality and business processing improvements that has:

> provided tools within ComSAS to reduce the level of repetitive manual intervention and address data quality issues

> automated a significant amount of family law benefit calculations

> streamlined the data entry and the check listing of benefit applications (these functions now reside within ComSAS where they were previously managed using external applications).

The project was closed in May 2015 although the correction of individual memberships with incorrect data continues.

Capital Transformation ProjectCapital is the administration platform for all military schemes and all Australian Government superannuation pensions. When the Capital Transformation Project is completed, CSC (formerly ComSuper as administrator) will progress from using the internally supported Capital 6 to the upgraded and technologically more advanced Capital 10 version of the product under direct vendor support.

The upgrade will facilitate the automation and integration of a number of existing satellite systems and manual processes, allowing more members to access online services.

Significant effort and resources continued to be invested by ComSuper on this project in 2014–15 and substantial progress was made. Implementation is planned for late 2015 and suitable windows (which minimise the impact to members) have been identified.

SuperStream Standard for Contributions ProjectIn 2014–15, the SuperStream Standard for Contributions Project (SSCP) continued to work towards the successful implementation of the SuperStream Standard for Contributions (the Standard), which forms part of a broader group of Australian Government initiatives known as Stronger Super.

Once implemented the Standard will make all superannuation payments electronic and will introduce a standard way to pay contributions in Australia.



Key achievements of the SSCP in 2014–15 included:

> conducting a series of face–to-face workshops for employers and payroll providers to raise awareness of their obligations under the Standard and the data requirements for the defined benefit schemes administered by ComSuper

> preparing and publishing a series of employer assistance documentation to the EAC, including the data specifications that will allow payroll providers to develop the capability for employers to submit SuperStream transactions

> preparing technical specifications for system developers and software providers to update systems including ePASS and ComSAS

> developing the technical systems designed to support the requirements of the Standard.

The SSCP is expected to progress to employer implementation of the Standard in line with compliance and project objectives during 2015–16.

Complaints, reviews and appealsSuperannuation law in Australia requires trustees to provide avenues for members to lodge complaints and enquiries.

In 2014–15, ComSuper complied with the key legislative requirements for complaints handling. It adopted processes consistent with the Association of Superannuation Funds of Australia (ASFA) Best Practice Guide. ComSuper also demonstrated a strong commitment to the guiding principles of Standards Australia AS ISO 10002-2006 (Customer Satisfaction – guidelines for complaints handling in organisations).

In October 2014, the complaints and ministerial function aligned responsibilities with the CIC. This change provided both teams with the opportunity to collaboratively influence quality outcomes in service delivery.

There was a 15% fall in the number of complaints responded to in 2014–15. This decrease is largely due to a more proactive approach being taken to avoid customer grievances escalating to a formal complaint.

As shown in Table 8, there was an 8% decrease in the total number of complaints, parliamentary representations/Ministerials and Commonwealth Ombudsman enquiries compared with the previous year. There was 1.5% reduction in complaints in relation to the CSS and PSS.



Table 8: Complaints, Parliamentary representations/Ministerials and Commonwealth Ombudsman enquiries

CSS PSS MilitarySuper DFRDB/DFRB Total

13–14 14–15 13–14 14–15 13–14 14–15 13–14 14–15 13–14 14–15

Complaints 39 35 96 98 65 29 21 25 221 187

Parliamentary representations/ Ministerials

2 2 0 5 9 14 5 9 16 30

Ombudsman enquiries

2 2 0 0 0 1 0 1 2 4

Total 43 39 96 103 74 44 26 35 239 221

All complaints were assessed as either related to superannuation policy and legislative issues (ComSuper is not responsible for determining superannuation policy), service delivery or external causes outside the control of ComSuper. Table 9 shows the breakdown of this assessment.

Table 9: Complaints* by type

CSS/PSS MilitarySuper DFRDB/DFRB Total

13–14 14–15 13–14 14–15 13–14 14–15 13–14 14–15

Policy related 61 53 29 18 19 14 109 85

Service delivery 78 76 45 26 7 21 130 123

External causes N/A 13 N/A N/A N/A N/A N/A 13

Total 139 142 74 44 26 35 239 221

* Includes complaints, Parliamentary representations/Ministerials and Commonwealth Ombudsman enquiries.



Reconsideration of decisions Members and other affected persons may request a reconsideration of decisions made by CSC or their delegates or authorised persons. Finalised reconsideration cases are either:

> Affirmed – the decision of the delegate is agreed to

> Set aside – the decision of the delegate is set aside and substituted with a different decision

> Withdrawn – the member requests that their application be discontinued

> Dismissed – the case is dismissed due to a lack of new evidence, or an extension of time is not granted.

Table 10 provides a breakdown of reconsideration cases. It illustrates the trend of more reconsideration requests being received year on year, with 296 requests received in 2014–15 compared to 273 in 2013–14.

CSS/PSS In 2014–15, the most common reconsideration cases in the CSS and PSS related to spouse, children or estate entitlements following the death of members and pensioners. Almost all other cases involved applications surrounding invalidity.

Military schemesThe most common reconsideration cases for the military schemes related to invalidity classification on discharge from the ADF. Other common requests related to early access to superannuation on hardship and total and permanent incapacity grounds as well as spouse, children or estate entitlements following the death of members and pensioners. Military reconsiderations saw an increase of 62% in the average number of cases on hand per month in 2014–15, compared to 2013–14. There were 187 cases on hand at 30 June 2015, compared to 162 on hand at 30 June 2014.

Despite the significant increase in workload, 216 military matters were finalised in the 2014–15 financial year (an average of 18 per month), compared with 155 in the 2013–14 financial year (average of 12.9 per month).

Table 10: Summary of reconsideration activity

CSS/PSS Military schemes Total

13–14 14–15 13–14 14–15 13–14 14–15

Received 46 55 227 241 273 296

Finalised 37 38 155 216 192 254

Affirmed 9 16 57 55 66 71

Set Aside 3 7 51 110 54 117

Lapsed/withdrawn/dismissed

25 15 47 51 72 66

On hand at 30 June 22 39 162 187 184 226



External appeals A member dissatisfied with the outcome of an internal review, such as a complaint or a reconsideration of a decision, may appeal to the Administrative Appeals Tribunal (AAT) or the Superannuation Complaints Tribunal (SCT) depending on their scheme membership. With respect to the Superannuation Act 1922, one class of CSS cases and the DFRDB/DFRB schemes, appeals may only be made to the AAT. In certain circumstances, an appeal may be taken from the SCT or AAT to the Federal Court of Australia and be continued to the High Court of Australia. The most common matters taken to external appeal bodies relate to entitlements of members to scheme benefits.

ComSuper represented CSC in external appeals and provided legal resources to conduct cases. In some cases, ComSuper sought advice from or instructed external legal service providers, as required by the Legal Services Directions 2005.

Administrative Appeals Tribunal No applications for review of decisions under the 1922 Act or the Papua New Guinea (Staffing Assistance) Act 1973 (PNG Act) were lodged with the AAT during 2014–15.

Under the DFRDB Act and the Defence Forces Retirement Benefits Act 1948 (DFRB Act) the AAT is the avenue of external review of decisions. Three matters were on hand at 1 July 2014 with one application for review lodged with the AAT during 2014–15.

Four AAT matters were resolved in 2014–15. In three cases the AAT set aside the original decision. The other matter was withdrawn. There were no ongoing AAT cases at 30 June 2015.

Federal Court Appeals from the AATUnder section 44 of the Administrative Appeals Tribunal Act 1975, a party to a proceeding before the AAT may appeal to the Federal Court of Australia on a question of law arising from any decision of the AAT in that proceeding. Since 16 May 2005, section 45(1) of that Act requires the President of the AAT’s agreement before a question of law may be referred to the Federal Court.

In 2014–15, there was one Federal Court appeal by an ineligible applicant for a spouse benefit. The application was withdrawn before hearing.

Appeals from the SCTA determination of the SCT may be appealed to the Federal Court of Australia under section 46 of the Superannuation (Resolution of Complaints) Act 1993. Appeals are limited to questions of law arising from any decision of the SCT in that proceeding.

There was one APS scheme appeal to the Federal Court from an SCT determination in 2014–15. This matter is outstanding. There were no military scheme appeals to the Federal Court.

High CourtAny party to a proceeding before the Federal Court may appeal to the High Court of Australia under section 33 of the Federal Court of Australia Act 1976. There were no appeals to the High Court in 2014–15.

Superannuation Complaints TribunalThe SCT is the avenue for external review of decisions for the APS schemes and MilitarySuper.

Table 11: Summary of SCT complaints

CSS/PSS Military schemes Total

13–14 14–15 13–14 14–15 13–14 14–15

Carried over 51 38 8 11 62 49

Received 25 14 12 8 37 22

Finalised 38 23 9 10 47 33

On hand at 30 June 38 29 11 9 49 38



Legal claimsMembers who have suffered a financial loss or other detriment in relation to their superannuation benefits, as a result of a mistake by ComSuper, may be entitled to compensation. Claims for compensation were considered by ComSuper, on behalf of CSC, in accordance with the Legal Services Directions 2005 issued by the Attorney-General under section 55ZF of the Judiciary Act 1903. Details of legal claims for 2014-15 can be found in Table 12.

Claims under the CDDA Scheme Compensation may also be paid under The Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme).

The CDDA Scheme allows government agencies to compensate persons who have experienced detriment as a result of an agency’s defective actions or inaction where no legal liability exists.

Payments made under the CDDA Scheme are discretionary. This means there is no automatic entitlement to a payment.

During 2014–15, two claims under the CDDA scheme were lodged and not accepted. No CDDA claims were outstanding at 30 June 2015.

Act of grace paymentsAct of grace payments are payments that fall outside statutory entitlements. Since 1 July 2014, act of grace payments fall under the Public Governance, Performance and Accountability Act 2013. The Finance Minister may authorise one-off or periodic act of grace payments.

In 2014–15, no act of grace requests were approved. Five were on hand at the start of the financial year and one was declined. Four act of grace requests were on hand at 30 June 2015.

Table 12: Summary of legal claims 2014–15

APS Schemes Military schemes

CSS PSS Total DFRDB/DFRB

Military Super

Total Overall

Carried over 5 7 12 3 4 7 19

Received 10 15 25 2 1 3 28

Considered 8 13 21 4 4 6 29

Accepted 5 11 16 3 4 7 23

On hand at 30 June 15

7 9 16 1 1 1 18

Total amount of compensation ($)

6,510 55,313 61,823 13,426 37,219 50,645 112,468

Corporate governance

2B



Overview ComSuper operated within a corporate governance framework based on the following components:

> audit and assurance

> risk management

> quality assurance

> records management

> values and ethical standards

> anti-money laundering / counter terrorism financing and fraud control

> security and privacy

> compliance

> business continuity management

> business planning.

In 2014–15, ComSuper maintained and strengthened its corporate governance arrangements to ensure stakeholder expectations and regulatory requirements were met and results were achieved in key areas.

Detailed preparations for the merger of ComSuper into CSC on 1 July 2015 were also made.

Audit and assurance ComSuper maintained audit and assurance arrangements that were appropriate to its position as an Australian Government agency.

The centre of the audit and assurance program was ComSuper’s Audit and Risk Committee which was accountable to the Chief Executive Officer, and supported by the Branch Head, People and Governance.

The Audit and Risk Committee maintained an integrated assurance strategy, in which different types of assurance information was used in a coordinated way to address risk. Assurance information was drawn from external audits, internal audits, output monitoring, and reports from senior managers and consultants. Published audit reports on other organisations were also used as sources of assurance information, and those report findings and recommendations reviewed for applicability to ComSuper.

ComSuper’s external auditor was the Australian National Audit Office (ANAO) and the 2014–15 service provider was Deloitte Touche Tohmatsu.

The external audit scope addressed ComSuper as an Australian Government agency. ComSuper’s financial reporting was subject to annual external audit, and the operations of ComSuper were potentially subject to performance or other audits by the ANAO. The auditors of Commonwealth Superannuation Corporation (CSC) also undertook audits of aspects of scheme administration within ComSuper.

ComSuper had its own internal audit function, directed by the ComSuper Audit and Risk Committee. The primary internal audit provider was Oakton, although other auditors were engaged for specific projects. The internal auditor acted as Service Auditor for formal controls reporting to CSC, the Department of Finance (Finance) and the Department of Defence (Defence). For this purpose ComSuper issued an annual controls report according to applicable standards issued by the Auditing and Assurance Standards Board, specifically in accordance with Guidance Statement 007 (GS 007).

The GS 007 Controls Report covered the critical control activities around superannuation administration. These included meeting legal, accounting, and regulatory requirements.



Reports by the Auditor-General, a Parliamentary committee or the Commonwealth OmbudsmanComSuper pursued continuous improvement by reviewing relevant ANAO audit reports and Better Practice Guides and implementing recommendations where appropriate. ANAO reports, and ComSuper’s responses to them, were monitored by the ComSuper Audit and Risk Committee.

ANAO audit reports and Better Practice Guides that were reviewed in 2014–15 included:

> Fraud Control Arrangements (Report No. 3)

> Business Continuity Management (Report No. 6)

> Administration of Contact Centres (Report No. 7)

> Implementation of Audit Recommendations (Report No. 8)

> Audits of Financial Statements of Australian Government Entities for the Period Ended 30 June 2014 (Report No. 16)

> Promoting Compliance with Superannuation Guarantee Obligations (Report No. 39)

> Limited Tender Procurement (Report No. 48)

> Better Practice Guide, Public Sector Audit Committees: Independent assurance and advice for Accountable Authorities

Risk managementComSuper’s risk management framework was consistent with AS/NZS ISO 3100:2009 Risk Management–Principles and Guidelines.

ComSuper’s Executive Committee monitored and reviewed the strategic risks faced by the organisation on a routine basis. The branch business plans and supporting processes that were undertaken and implemented on a regular basis also captured and addressed operational risks and their management.

Quality assurance In 2014-15, there were nine specific reviews performed across all schemes administered by ComSuper as part of the annual output-monitoring program. Scheduled review topics were identified from risk assessments on key business operation. The review topics included the APS-wide redundancy process from the provision of benefit estimates to members through to payment of redundancy benefits.

The reviews provided an assurance of the standard of specified activities in these operational areas, against specific attributes: correctness, lawfulness, recordkeeping and quality.

Quality assurance review outcomes and recommendations continued to be reported to the ComSuper Audit and Risk Committee and underpinned ongoing enhancements in processes and identification of areas for improvement in 2014–15.

Records managementComSuper maintained appropriate recordkeeping practices and managed Commonwealth records via an Electronic Document and Records Management System (EDRMS) using TRIM software.

In 2014–15, the systematic recall and audit of paper records continued and more than 20,000 items were processed over the year.

In addition, ComSuper maintained efforts to digitisalise high value records thus enabling quicker responses to member enquiries. A close working relationship with National Australian Archives (NAA) was also fostered in order to digitally capture scheme related communication items (mail, facsimile, email and phone calls).



Values and ethical standardsComSuper upheld the APS Values and Employment Principles and the APS Code of Conduct. As important parts of the organisational culture, information about these topics was readily available to staff from the APSC website and intranet, and was included in the induction program for new staff.

As identified in the ComSuper Strategic Plan 2013–15, ComSuper was committed to the organisational values of providing:

> quality service delivery to scheme members

> a collaborative and mutually supportive environment

> expertise

> resourcefulness.

ComSuper maintained high standards of ethics and good governance in its business operations and practices, and understood that the decisions it made could have a significant impact on scheme members, CSC, the government, colleagues and ourselves.

An Ethical Decision Making Guideline, a link to St James Ethics Centre and information on the Ethics Advisory Service provided by the APSC was maintained on the ComSuper intranet. These resources were designed to assist staff in dealing with ethical dilemmas and discretionary decision making.

In 2014-15, ComSuper continued to be part of the APS-wide Ethics Contact Officer Network (ECONET) to share best practice approaches and ensure the consistency of the application and awareness of ethics throughout the public service.

ComSuper conducted mandatory Annual Awareness Training for all staff on the APS Code of Conduct and Probity and Ethics.

Anti-Money Laundering and Counter Terrorism FinancingComSuper has operational obligations under the Anti-Money Laundering and Counter Terrorism F inancing Act 2006 (AML/CTF Act), with the reporting entity being CSC. ComSuper met all its AML/CTF Act obligations during the year and the AML/CTF related Annual Awareness Training during 2014–15 was maintained to ensure that staff were alert to the current processes.

Fraud control ComSuper’s fraud control arrangements either met or exceeded its legislative obligations as required (refer section 10, Public Governance, Performance and Accountability Rule 2014 (the Fraud Rule)).

In 2014–15, fraud control provisions at ComSuper included:

> preventive measures such as: the maintenance of a comprehensive fraud control policy and procedural framework (including quarterly review of controls against the fraud control plan); a fraud awareness training program for new employees and annual training for ongoing staff; and a range of business and system controls such as post transaction reviews, separation of duties across payments, and financial reconciliations

> detection activities based on a vigorous compliance and internal audit program including fraud risk assessments, annual assessments as part of the GS 007 Controls Framework and the ANAO assurance audit

> mechanisms to enable reporting of suspected fraud included a dedicated fraud hotline, email address, fraud incident reporting form and a Public Interest Disclosure regime

> investigations conducted by a dedicated fraud control unit to assess and investigate all allegations of suspected fraud both internally and externally. Fraud control officers had the required qualifications and held security clearances appropriate for their duties. Investigation outcomes resulted in a range of debt recovery and administrative action.

> reporting fraud control activities. Investigation outcomes and recommendations were overseen by the Director of Security, Privacy and Fraud Section and the Branch Head, People and Governance. All matters arising were reported quarterly to the Audit and Risk Committee and annually to the Australian Institute of Criminology.



Security ComSuper maintained ongoing compliance with Protective Security Policy Framework (PSPF), the Privacy Act 1988, and APRA Prudential Standards.

ComSuper actively promoted a positive security and privacy culture through encouraging staff interaction, diverse awareness programs and strong leadership.

During 2014–15, ComSuper undertook an assessment of its protective security controls against the 33 mandatory requirements of the PSPF and was fully compliant at 30 June 2015.

ComSuper also maintained a robust personnel security program that covered those staff authorised to handle internal official information such as scheme member and related details. The personnel security measures included timely background checking and security clearances.

Privacy In 2014–15, ComSuper managed its obligations under the Privacy Act 1988 and the 13 Australian Privacy Principles (APPs). It maintained a clear and up-to-date Privacy Policy in accordance with Australian Privacy Principle 1 which relates to ‘open and transparent management of personal information’.

This policy was available via the ComSuper website to download at no cost.

ComplianceFor ComSuper, superannuation compliance meant adherence to:

> a relevant law or licence condition (including financial services law, superannuation and prudential law and CSC’s Australian Financial Services (AFS) and Registrable Superannuation Entities (RSE) licence conditions)

> an applicable regulatory policy statement, standard or guidance

> a contract, service standard or mandate

> a trustee Board delegation, authorisation, instruction or policy issued formally by the Board of CSC

> guidelines, rules or requirements imposed by a House or a Committee of the Parliament of Australia

> the governing rules/deeds of the schemes

In 2014–15, ComSuper maintained its compliance framework and ensured that legislative and scheme obligations were met. The key elements of the framework continued to be:

> maintaining compliance registers

> working to resolve compliance issues

> undertaking compliance reviews and projects

> providing quarterly compliance reports to CSC.



Business continuity management ComSuper had a Business Continuity Management (BCM) framework that supported the capacity of the Incident Management Team (IMT) to make flexible and informed decisions. ComSuper had plans in place that covered four key areas:

1. premises

2. systems

3. staff

4. third party dependencies.

The active engagement of the IMT in the provision of governance oversight through quarterly meetings represented a top down approach in driving ComSuper’s BCM program. The IMT had a two tier membership structure that included all senior executives in the primary role and senior managers in back up positions and was drawn from all core business areas and enabling services.

ComSuper’s Information and Communications Technology (ICT) capability offered a number of dynamic BCM options depending on the event being faced. This capability included an ICT back-up site, detailed ICT disaster recovery and business recovery plans and alternative accommodation which would allow staff to carry on critical business activities. In addition, ComSuper had plans and procedures that provided guidance and support to the IMT and staff covering a number of differing disruption scenarios.

The style and subject of the BCM exercise program varied each year in order to ensure continuous improvement. The aim of the program was to keep pace with threats on the horizon, incorporate the outcomes of previous exercises and pick up on lessons learnt from actual incidents that ComSuper had faced.

Business planning ComSuper maintained a well-developed business-planning framework in 2014–15 in which the high-level objectives from the ComSuper Strategic Plan 2013–15 cascaded into branch and team plans, and then individual performance agreements.

This business planning structure provided a clear line of sight for all staff as to how they contributed to fulfilling the Strategic Plan.

One of the main priorities for the 2014–15 business planning process was preparing for the merger of ComSuper into CSC on 1 July 2015.



ComSuper Executive Committee and supporting committeesThe Executive Committee (EC) was the main governance body in ComSuper. It established direction, strategies and financial objectives, and monitored their implementation.

At 30 June 2015, the EC comprised:

> Chief Executive Officer (Chair)

> A/g Chief Financial Officer

> Chief Information Officer

> Branch Head, People and Governance Branch

> A/g Branch Head, Corporate Strategy and Coordination Branch

> Branch Head, Member Benefits and Accounts Management Branch

> A/g Branch Head, Member and Employer Access and Support Branch.

The EC and other internal committees assisted the Chief Executive Officer (CEO) to fulfil her management responsibilities. Further detail of ComSuper’s committee structure, roles and responsibilities are set out in Chart 2 and below.

Chart 2: ComSuper’s internal committee structure at 30 June 2015

Chief Executive Officer

Executive Committee

Audit and Risk Committee

Health and Safety Committee

Workplace Relations CommitteeIncident Management Team

Security and Privacy Committee



Purpose of ComSuper’s committeesExecutive Committee (EC)Chair – CEO

> To establish ComSuper’s direction, strategies and financial objectives and monitor their implementation

> To prioritise, approve and manage discretionary funding

> Provide strategic direction on ComSuper’s people, performance and culture

> To advocate for the development of ComSuper’s staff as the major capability

> To oversee ComSuper’s project activity

> To provide approval and decisions that affect project progress and delivery throughout the project life cycle

Audit and Risk CommitteeChair – External Member, Will Laurie

> To provide independent assurance and assistance to the CEO on ComSuper’s risk, control and compliance framework and external accountability responsibilities

Health and Safety CommitteeChair – Director/Manager, People Strategies and WellbeingTo facilitate:

> consultation and co-operation between ComSuper and employees (workers) on work, health and safety (WHS) matters

> continuous improvement in the management of WHS by ComSuper.

Incident Management TeamChair – Branch Head, People and Governance

> To ensure governance for business continuity arrangements prior to an incident

> To take charge of the whole organisation and direct all incident management and business recovery activities in the event of an incident.

Security and Privacy CommitteeChair – Branch Head, People and Governance

> To assist the EC to provide strategic direction in line with the Australian Government’s Protective Security Policy Framework (PSPF) and the Privacy Act and Guidelines.

Workplace Relations CommitteeChair – Branch Head, People and Governance

> To monitor the application of the ComSuper Enterprise Agreement 2011–14

> To provide information and consult with employees on workplace issues

> To escalate issues to the appropriate committee.

Resource management


Resource management

This section outlines ComSuper’s performance in regards to the management and development of ComSuper’s staff, financial affairs and information and communication technology.

ComSuper’s workforceIn 2014–15, ComSuper continued efforts to be an employer of choice by maintaining an engaged, productive, and safe workplace. Preparations were also made for the merger with CSC on 1 July 2015 by keeping ComSuper staff informed about merger developments and providing opportunities for them to get to know and understand their future organisation.

As a public service agency, ComSuper promoted and supported the APS Values and APS Code of Conduct, in addition to encouraging strong leadership and positive workforce behaviours.

In 2014–15, a range of initiatives and strategies were in place to support these and included:

> providing mandatory Annual Awareness Training to ensure all staff were aware of their responsibilities as employees of the APS

> providing development opportunities to staff through the Learning Management System

> supporting a happy, safe and healthy workplace through various targeted health initiatives

> implementing prevention, early intervention and injury management strategies in the context of the Work Health and Safety Act 2011.

At 30 June 2015, ComSuper employed 399 staff under the Public Service Act 1999. All staff were based in Canberra. Table 13 shows staff headcount by classification, gender, full-time/part-time and ongoing/non-ongoing for the last two financial years.

ComSuper had two ongoing employees at 30 June who self identify as Indigenous.

During the year there were 64 staff commencements, which consisted of 63 non-ongoing and 1 ongoing staff member. There were 159 separations, of which 36 were non-ongoing or casual and 123 were ongoing staff. The majority of staff separations were transfers to other government agencies (78), resignations (42), voluntary redundancies (28), non-ongoing contracts completed/ceased (8), invalidity (2), and retirement (1). The turnover of ongoing staff was 31.7%.

ComSuper’s senior executives were provided with regular workforce reports to inform decision making. These were presented at both organisational and branch levels and contained comprehensive information including staff demographics, leave, turnover, and other associated analytics.


Resource management

Table 13: Workforce profile for 2013–14 and 2014–15

By Classification At 30 June 2014 At 30 June 2015

Female Male Total Female Male Total

APS1 1 0 1 1 0 1

APS2 4 0 4 3 0 3

APS3 22 19 41 25 15 40

APS4 66 29 95 56 33 89

APS5 67 34 101 61 22 83

APS6 52 47 99 39 45 84

TOTAL APS 212 129 341 185 115 300

EL1 49 51 100 28 46 74

EL2 19 18 37 11 10 21

TOTAL EL 68 69 137 39 56 95

SES1 1 2 3 0 3 3

SES2 0 0 0 0 0 0

CEO 1 0 1 1 0 1

TOTAL SES 2 2 4 1 3 4

Note: SES figures include substantive staff only

TOTAL 282 200 482 225 174 399

By employment type


Full-time 230 195 425 186 169 355

Part-time 52 5 57 39 5 44

By employment status

Full-time Part-time Total Full-time Part-time Total

Ongoing 368 54 422 272 38 310

Non-ongoing 57 3 60 83 6 89


Resource management

Table 13: Workforce profile for 2013–14 and 2014–15 continued

By age group and gender

At 30 June 2014 At 30 June 2015


Under 20 0 1 1 3 0 3

20 – 24 29 19 48 25 18 43

25 – 29 48 45 93 37 39 76

30 – 34 35 21 56 28 13 41

35 – 39 38 29 67 26 29 55

40 – 44 39 21 60 24 21 45

45 – 49 21 27 48 19 22 41

50 – 54 31 23 54 23 19 42

55 – 59 24 7 31 24 8 32

60+ 17 7 24 16 5 21

TOTAL 282 200 482 225 174 399

Workplace diversityComSuper was committed to maintaining a culture which valued and utilised the contribution of the diverse backgrounds and experiences of its employees and ensured equal opportunity in recruitment, selection, training, skills utilisation and learning and development.

This commitment was captured in the ComSuper Workplace Diversity Plan which, in conjunction with other HR policies, was aimed at harnessing the diversity of employees to improve organisational capability and productivity.

Enterprise AgreementAt 30 June 2015, all employees in ComSuper were covered by the ComSuper Enterprise Agreement 2015–18 (the Agreement).

A range of non-salary benefits (see Table 14 for information about salary ranges) are provided to staff in the Agreement, including:

> flexible working hours between 7am and 8pm

> access to purchased leave

> school holiday care allowance for the July school holiday

> health initiatives

> professional association memberships

> a performance management framework to assist staff achieve their career and development aspirations.

At 30 June 2015, the terms and conditions of employment for Senior Executive Service (SES) employees were determined under section 24(1) of the Public Service Act 1999. The determinations aligned performance expectations, individual goals and objectives in line with ComSuper’s Strategic Plan. Employees at lower levels are not covered by section 24(1) determinations.

SES staff were entitled to non-salary benefits including a fully maintained motor vehicle or cash-in-lieu allowance, car parking spaces and airline memberships.

The Chief Executive Officer’s remuneration and conditions were set by the Remuneration Tribunal.


Resource management

Table 14: Salary ranges contained in the Agreement at 30 June 2015

Level Range ($)

APS1 43,777 - 48,386

APS2 49,546 - 54,948

APS3 56,716 - 61,212

APS4 62,898 - 68,289

APS5 70,852 - 75,133

APS6 76,118 - 87,260

EL1 97,866 - 111,761

EL2 114,569 - 138,915

Individual Flexibility ArrangementsThe Agreement contained a flexibility clause enabling the CEO (or suitable delegate) to make an individual flexibility arrangement (IFA) with an employee regarding matters of remuneration, and other terms and conditions of employment, in order to meet the genuine needs of both ComSuper and the employee.

At 30 June 2015 there were 55 IFAs in place. These were made to enable the payment of special remuneration conditions for employees with specialised roles and skills.

Performance payThere were no performance bonuses paid to staff during 2014–15.

Productivity gainsPay rises under the Agreement were front loaded with a 2.6% pay-rise on commencement of the Agreement on 26 June 2015, in line with the Australian Government Public Sector Bargaining Policy. The funding for this salary increase was derived from:

> reducing layers of managements, particularly at the EL levels

> reviewing performance management policies, and implementing longer qualification periods for salary progression

> refining business processes around overtime

> removal of a number of allowances such as the authorised representatives payment and health reimbursements

> removal of restrictive work practices (for more details please refer to the Agreement).


Resource management

Learning and developmentComSuper continues to embed the APSC Integrated Leadership System as the base framework for our learning and developing strategy. We are also utilising learning programs that have been developed in line with the APS Leadership and Core Skills Strategy. This is to ensure that our staff have the appropriate workplace skills essential to the effective management of public service administration.

In 2013–14, we continued our focus on establishing our Learning Management System and eLearning packages and support tools. We now offer 32 courses online to staff as required. These include new courses on Privacy Law Reform, Microsoft applications such as Excel, Visio and Project and also the Oracle Web Logic Service.

Other learning and development activities undertaken during the year included:

> the support of staff undertaking external tertiary and other relevant studies to enhance their skills and abilities through ComSuper’s Studybank program. This included two staff studying for an Executive Masters of Public Administration through the Australia and New Zealand School of Government

> compulsory Annual Awareness Training to all staff in the areas of financial compliance, security, freedom of information, privacy, business continuity, APS Code of Conduct and Values, and Work Health and Safety. This training is facilitated via eLearning modules which enable greater flexibility for staff in scheduling this training into their daily workloads participation in the Super Grad program managed by the Australian Institute of Superannuation Trustees, and the Australian Government ICT Graduate Program managed by AGIMO and the APSC

> continued development of staff at all levels through courses such as: business writing; effective communication; analytical and strategic thinking; effective decision making; leadership and customer relations. A number of staff also participated in technical and specialist skills training in the areas of administration law, and understanding and interpreting government legislation.

Health and safetyDuring 2014–15 ComSuper was committed to providing and maintaining a safe and healthy workplace to support employee well-being. Work continued in 2014–15 to ensure compliance with the Work Health and Safety Act 2011 (WHS Act) and the Safety Rehabilitation and Compensation Act 1988 (SRC Act).

> Activities undertaken by ComSuper to meet obligations under the WHS legislation included:

> improving the governing WHS policies which clearly identify ComSuper’s commitment to the safety of ComSuper staff, contractors and visitors under the WHS legislation

> completion and management of the Work Health and Safety Management System

> the operation of a Mental Health Advisory Committee to oversee implementation of ComSuper’s Mental Health Strategy

> workplace safety hazard identification and risk reviews to identify physical hazards, personal security and psychosocial hazards

> workplace inspections in accordance with WHS legislative requirements

> completion and management of the rehabilitation case management system

> delivery of the Beyond Blue National Workplace, Mental Health Awareness program to the Executive and managers of ComSuper

> delivery of Employee Assistance Program lunchtime seminars to all staff and programs on building resilience to managers and team leaders.

ComSuper’s WHS related policies provided a flexible framework for the day-to-day management of WHS matters with a focus on continuous improvement and strong governance.


Resource management

ComSuper’s Comcare premium increased slightly from the prescribed 2.26% (2013–14) to 2.56% (2014–15). Factors affecting this increase included:

> trends in the number and cost of ComSuper claims for injuries suffered in the previous four years

> trends in the number and cost of claims for all agencies combined and the total amount that Comcare collected from all agencies combined.

A strong focus continued on making improvements to ComSuper’s rehabilitation practices by:

> promoting and supporting early intervention to assist an employee with an injury or illness

> implementing reasonable workplace adjustments to allow employees to perform inherent requirements of their position without causing aggravation to their injury or illness

> providing more proactive case management to managers and staff to support ComSuper’s commitment to ensuring the safety and wellbeing of all staff

> managing a rehabilitation case management system

> maintaining positive and proactive relationships with external stakeholders such as Comcare.

Health initiativesIn 2014–15, ComSuper’s health initiatives focused on raising awareness, prevention and early intervention with the aim of reducing unplanned leave, improving productivity and enhancing work-life balance. Extensive mental health awareness and programs were also made available to all staff.

The range of initiatives aimed at encouraging staff to pursue healthy and active lifestyles included:

> workplace annual health assessments

> free influenza vaccinations for all staff

> subsidised contributions for undertaking health improvement programs, such as quitting smoking and gym/fitness club membership

> ergonomic workstation assessments, advice and assistance

> injury prevention software and ergonomic aids

> Employee Assistance Program (EAP) services for staff and their immediate families

> eye-sight testing and subsidies for glasses for screen-based work.

ComSuper continued to raise the profile of health and safety issues through Super Scoop, the staff eNewsletter, and encouraged staff contributions through a dedicated WHS email address.

Chart 3: ComSuper’s work health and safety governance structure at 30 June 2015

Executive Committee

Health and Safety Committee

People Strategies and Wellbeing Team

Workplace Relations Committee

Work Health and Safety representatives First aid officers Harassment

contact officers


Resource management

ComSuper’s Health and Safety Committee (HSC) comprised senior executive sponsorship and involvement, as well as four management and four employee representatives. The HSC facilitated communication and cooperation between management and employees, and examined avenues to promote WHS in the workplace. Quarterly meetings provided a forum for open discussion of initiatives to further enhance strategies for injury prevention, early intervention and reducing unplanned leave.

As part of their role, Health and Safety Representatives (HSRs) were involved in conducting regular workplace inspections to identify physical and psychosocial risks and hazards, conducting workstation assessments and generally promote the health and safety of employees in the workplace.

The HSC, the Workplace Relations Committee and the network of HSRs provided a vehicle for consultation on WHS issues affecting employees and staff were encouraged to provide feedback through the HSRs and the WHS email address.

Carer recognitionComSuper’s implementation strategy to support the Carer Recognition Act 2010 included:

> ongoing employee awareness through ComSuper’s Annual Awareness Training for all staff

> maintenance of an intranet page containing information to assist employees to understand that, for the purpose of the Act, carers are people who have responsibility for those with a disability, mental illness, medical condition or are frail and aged. The page also provides links to external websites for further assistance

> policy and guidelines developed for managers of employees with caring responsibilities.

Notifiable events, investigations and noticesIn 2014–15, there were no dangerous incidents under section 38 of the WHS Act.

Disability reporting Since 1994, Commonwealth department and agencies have reported on their performance as a policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007–08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010–11, departments and agencies have no longer been required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010–2020, which sets out a ten year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high level two-yearly report will track progress against each of the six outcome areas of the Strategy and present a picture of how people with disability are faring. The first of these reports became available in late 2014 and can be found at www.dss.gov.au


Resource management

Financial managementOperating result ComSuper recorded an operating surplus of $7.967 million in 2014–15 compared to $9.379 million in 2013–14. This result is $0.333 million below the budgeted surplus of $8.300 million. Total own-source income decreased from $89.071 million in 2013–14 to $82.312 million in 2014–15.

Revenue During 2014–15, ComSuper received $77.645 million in administration fees levied on employers on behalf of current and former employees as members of the relevant super schemes.

Administration fees are calculated on a ‘cost per member’ basis with the fee structure differentiating between contributors, pensioners and preserved benefit members. Agencies are charged for both current and former employees on a quarterly basis.

Expenses Total expenditure for 2014–15 was $74.345 million, which is a $6.491 million decrease from the prior year.

The novation of the PSSap scheme administration contract from the former ComSuper to CSC on 4 December 2014 resulted in the recognition of a reduction in employer levy revenue and associated supplier expenses of $4.1 million.

Liabilities Total liabilities at 30 June 2015 were $20.425 million, a decrease of $14.632 million from 30 June 2014.

Assets ComSuper’s asset position for 2014–15 was $52.175 million, a decrease of $13.374 million from 2013–14.

ProcurementComSuper’s Contracts and Property Services (CaPS) team provided centralised procurement and contract management expertise. In 2014–15, CaPS provided training and information sessions to staff on procurement and contract management.

Procurement Initiatives to support small businessComSuper supported small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website: www.finance.gov.au/procurement/statistics-on-commonwealth-purchasing-contracts/

The data supplied on the Department of Finance’s website presents aggregated information that has been extracted from AusTender. It reflects contractual information reported during the relevant financial year in accordance with agencies’ procurement publishing obligations, and does not represent actual expenditure.

ComSuper recognised the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website: www.treasury.gov.au/

To ensure that Small and Medium Enterprises (SMEs) can engage in fair trade, ComSuper supported the following initiatives and practices, in accordance with paragraph 5.4 of the Commonwealth Procurement Rules.

a. The Commonwealth Contracting Suite for low-risk procurements valued under $200,000;

b. Australian Industry Participation Plans in whole-of-government procurement where applicable;

c. The Small Business Engagement Principles (outlined in the Government’s Industry Innovation and Competitiveness Agenda), such as communicating in clear, simple language and presenting information in an accessible format; and

d. electronic systems or other processes used to facilitate on-time payment performance, including the use of payment cards.


Resource management

Management of administered appropriationsComSuper delivered a range of superannuation programs on a third-party basis on behalf of the Departments of Finance, Defence, and Foreign Affairs and Trade. These programs include the payment of pensions, benefits and the collection of superannuation contributions.

ComSuper was granted drawing rights to access special appropriations to meet benefit payments on an ongoing basis and maintained a special account to facilitate clearance of benefit payments. These transactions were approved under section 78 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). A summary of these transactions is provided in Appendix A.

Vendor engagementComSuper’s vendor engagement framework aimed to ensure the effective, efficient and ethical commitment of public monies when goods and services were procured. The Commonwealth Procurement Guidelines, Regulations and the PGPA Act provided the continuing authority for the framework. The contracting and procurement framework had three stages:

1. development of the contracting and procurement framework, policies and procedures

2. effective management of procurement and tendering activities; and

3. the ongoing effective management of existing and new contracts.

Managing information and communication technologyComSuper managed a diverse range of information and communication technology (ICT) supporting the provision of superannuation administration services.

From an ICT perspective, 2014–15 required a number of large scale projects to be resourced including: Capital Transformation, SuperStream Standard for Contributions, and the Department of Defence’s DefenceOne payroll consolidation, while also preparing for the merger of ComSuper into CSC.

In addition, ComSuper implemented some major legislative and regulatory changes, as well as many performance and efficiency related enhancements to its systems used. These included: upgrades and updates to its administration platforms; ongoing improvements to its infrastructure and processes; deployment of new technologies; and regular and ongoing maintenance of its systems to ensure reliability and performance from its ICT investment.

ICT SecurityComSuper was obliged to adhere to the Australian Government’s Protective Security Policy Framework (PSPF). That meant implementing and maintaining compliance with the security controls prescribed by the Australian Signals Directorate’s (ASD) Information Security Manual 2015 (ISM).

In 2014–15, ComSuper proactively managed ICT security risks by continuing to broaden and deepen its ‘big data’ and internal monitoring solutions. Compliance was maintained with 94% of the 731 controls currently applicable in the ISM, helping to protect ComSuper against challenges posed by malicious external parties.


Resource management

Administration system changesComSuper was involved in numerous activities and projects to further develop the systems and technology underpinning scheme administration. See Section 2A, Administration system changes and projects for more information or below for further details of the ICT support provided.

Commonwealth Superannuation Administration System (ComSAS) ComSAS is the bespoke administration platform for the CSS and PSS schemes, developed and maintained by ComSuper.

In 2014–15, the software platform for ComSAS was further upgraded resulting in significant improvements to the system’s performance. A number of enhancements were delivered that supported both legislated and regulatory change, business reengineering and improvement to administration efficiency, including the ComSAS Data Quality Improvement (CDQI) project. This project provided better alignment of the system with business processes, treating risks and increasing efficiency by reducing the manual work necessary to generate benefit estimates, payments and statements.

CapitalCapital is the platform for the bespoke administration system for the DFRDB and Military Super schemes, and is the pension payment system for former Government employees and Australian Defence Force members.

The Capital Transformation Project continued to be a major focus throughout 2014–15 with significant ongoing effort and resources being invested by ComSuper. Completion of the project will deliver a technologically more advanced version of Capital and will place the product under direct vendor support.

In addition, a number of major enhancements and service improvements to the legacy Capital 6 system supporting both legislated and regulatory change were successfully delivered in 2014–15.

Business productivity changesComSuper supported a number of bespoke productivity applications which were separate from the main administration systems. These systems are used for functions including specialised calculators, document management applications, as well as work flow, staff and contact management tools.

Many functions were upgraded or enhanced to business requirements and successfully deployed during the year.

Financial statements

3







Peter Carrigy-Ryan Andy YoungChief Executive Officer General Manager, Finance & Risk29 September 2015 29 September 2015

STATEMENT BY THE CHAIRMAN, CHIEF EXECUTIVE OFFICER, AND GENERAL MANAGER, FINANCE & RISK OF COMMONWEALTH SUPERANNUATION CORPORATION

In our opinion, the attached financial statements for the year ended 30 June 2015 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that ComSuper will be able to pay its debts as and when they fall due.

Patricia CrossChairman29 September 2015



2015 2014Notes $'000 $'000

NET CONTRIBUTION BY SERVICESExpensesEmployee benefits 3A 41,750 45,894 Suppliers 3B 21,864 24,920 Depreciation and amortisation 3C 4,213 4,085 Write-down and impairment of assets 3D 1,271 32 Losses from asset sales 3E - 1 Trustee fee 3F 5,247 5,904 Total expenses 74,345 80,836

Own-Source IncomeOwn-source revenueSale of goods and rendering of services 4A 82,209 88,971 Total own-source revenue 82,209 88,971

GainsOther gains 4B 103 100 Total gains 103 100 Total own-source income 82,312 89,071

Net contribution by services 7,967 8,235

Revenue from Government 4C - 1,144 Surplus on continuing operations 7,967 9,379

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation reserve 7C - 1,686 Total other comprehensive income - 1,686

Total comprehensive income 7,967 11,065

The above statement should be read in conjunction with the accompanying notes.

for the year ended 30 June 2015Statement of Comprehensive Income



2015 2014Notes $'000 $'000

ASSETSFinancial AssetsCash and cash equivalents 6A 23,075 37,176 Trade and other receivables 6B 382 1,248 Total financial assets 23,457 38,424

Non-Financial AssetsLeasehold improvements 7A,C 3,448 4,388 Property, plant and equipment 7B,C 2,672 3,335 Intangibles 7D,E 21,169 17,926 Other non-financial assets 7F 1,429 1,476 Total non-financial assets 28,718 27,125 Total assets 52,175 65,549

LIABILITIESPayablesSuppliers 8A (2,165) (4,522)Dividends 8B - (8,300)Other payables 8C (7,979) (10,965)Total payables (10,144) (23,787)

ProvisionsEmployee provisions 9A (9,476) (11,270)Other provisions 9B (805) -Total provisions (10,281) (11,270)Total liabilities (20,425) (35,057)Net assets 31,750 30,492

EQUITYContributed equity 12,033 12,033 Asset revaluation reserve 2,215 2,215 Retained surplus 17,502 16,244 Total equity 31,750 30,492


Statement of Financial Positionas at 30 June 2015


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2015 2014Notes $'000 $'000

OPERATING ACTIVITIES Cash receivedAppropriations - 1,144 Sale of goods and rendering of services 81,308 91,836 Net GST received 2,558 2,891 Total cash received 83,866 95,871

Cash usedEmployees (45,101) (45,131) Suppliers (30,746) (33,443) Total cash used (75,847) (78,574)Net cash from operating activities 10 8,019 17,297

INVESTING ACTIVITIES Cash usedPurchase of property, plant and equipment (610) (1,893) Purchase of intangibles (6,501) (7,088) Total cash used (7,111) (8,981)Net cash used by investing activities (7,111) (8,981)

FINANCING ACTIVITIESCash receivedContributed equity - 1,350 Total cash received - 1,350

Cash usedDividend paid (15,009) (8,900) Total cash used (15,009) (8,900)Net cash used by financing activities (15,009) (7,550)

Net (decrease) increase in cash held (14,101) 766 Cash and cash equivalents at the beginning of the reporting period 37,176 36,410 Cash and cash equivalents at the end of the reporting period 6A 23,075 37,176


Cash Flow Statement for the year ended 30 June 2015



2015 2014BY TYPE $'000 $'000Commitments receivableService level agreement1 70,979 84,408 Net GST recoverable on commitments2 2,448 6,596 Total commitments receivable 73,427 91,004

Commitments payableOther commitmentsOperating leases3 (19,601) (24,029)Other4 (6,089) (48,512)Total other commitments (25,690) (72,541)Net commitments by type 47,737 18,463

BY MATURITYCommitments receivableOther commitments receivableOne year or less 71,625 85,847 From one to five years 1,091 4,178 Over five years 711 979 Total other commitments receivable 73,427 91,004

Commitments payableOperating lease commitmentsOne year or less (2,325) (2,468)From one to five years (10,165) (10,794)Over five years (7,111) (10,767)Total operating lease commitments (19,601) (24,029)

Other commitmentsOne year or less (5,344) (13,355)From one to five years (745) (35,157)Over five years - -Total other commitments (6,089) (48,512)Net commitments by maturity 47,737 18,463 Note:

1 Fee agreement for providing services for members of military and Australian Public Service schemes.2 Commitments are GST inclusive where relevant.

Schedule of Commitments

This schedule should be read in conjunction with the accompanying notes.

as at 30 June 2015

3 Operating leases included are effectively non-cancellable and are primarily for office accommodation. The current accommodation lease was signed in January 2013 for ten years. The lease payments are subject to an annual increase of 3.6%.4 Other commitments are for project commitments and operational activities. 2013-14 included a commitment for the outsourcing of administration of the PSSap Scheme. This contract was novated to the Commonwealth Superannuation Corporation on 4 December 2014.



Table of Contents - Notes

Note 1. Summary of Significant Accounting PoliciesNote 2. Events After the Reporting PeriodNote 3. ExpensesNote 4: Own-Source IncomeNote 5. Fair Value MeasurementsNote 6. Financial AssetsNote 7. Non-Financial AssetsNote 8. PayablesNote 9. ProvisionsNote 10. Cash Flow ReconciliationNote 11. Contingent Assets and LiabilitiesNote 12: Senior Management Personnel RemunerationNote 13. Financial InstrumentsNote 14. Financial Assets ReconciliationNote 15. AppropriationsNote 16. Special AccountsNote 17. Reporting of OutcomesNote 18. Budgetary Reports and Explanations of Major Variances



Note 1: Summary of Significant Accounting Policies

1.1 Objectives of ComSuper

ComSuper was an Australian Government controlled entity and a non-corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013 . It was a not-for-profit entity. ComSuper administered the Australian Government sponsored superannuation schemes which apply to current and former Australian Public Servants and Australian Defence Force members. In undertaking that role, ComSuper met performance standards agreed with relevant stakeholders and complied with the superannuation regulatory framework, scheme legislation, and trust deeds as well as Government policy in regard to the operations of business units.

Merger of ComSuper and CSCFollowing the passage of the Governance of Australian Government Superannuation Schemes Legislation Amendment Bill 2015 on 15 June 2015, ComSuper was merged into the Commonwealth Superannuation Corporation (CSC) on 1 July 2015. As a result of the merger, the Statutory Agency of ComSuper was abolished, and as at 1 July 2015, the assets and liabilities ceased to be assets and liabilities of ComSuper, and became assets and liabilities of CSC without any conveyance, transfer or assignment. CSC was the successor in law in relation to the assets and liabilities.

ComSuper was structured to meet the following outcome:Outcome 1: To provide access to Australian Government superannuation benefits and information, through developing members’ understanding of the schemes, processing contributions, supporting investment processes, paying benefits and managing member details for current and former Australian Public Servants and members of the Defence Force on behalf of the Commonwealth Superannuation Corporation (CSC).

ComSuper activities that contributed toward this outcome were classified as either Departmental or Administered. Departmental activities involved the use of assets, liabilities, revenues and expenses controlled or incurred by ComSuper in its own right. Administered activities involved the management or oversight by ComSuper, on behalf of the Government, of items controlled or incurred by the Government. These Departmental activities were identified under Program 1.1 Superannuation Administration Services.

ComSuper did not receive any Departmental appropriations in the 2014-15 financial year (2013-14: $1.144 million).

Establishment of ADF SuperThe Government also announced in the 2014 Federal Budget that the Military Superannuation Benefits Scheme (MSBS) will be closed to new members from 1 July 2016 and a new accumulation plan, to be known as ADF Super, will be established for new recruits to the Australian Defence Force from 1 July 2016. The administrative arrangements for the new scheme have yet to be determined and ComSuper had been working with CSC and the Department of Defence to facilitate the implementation of this scheme.

Asset class Fair value measured at:Land Market selling priceBuildings exc. Leasehold improvements Market selling priceLeasehold improvements Depreciated replacement costPlant & equipment Market Selling PriceHeritage and cultural assets Market Selling Price



Note 1: Summary of Significant Accounting Policies (continued)

1.2 Basis of Preparation of the Financial Statements

As stated in Note 1.1, ComSuper was abolished as at 1 July 2015, and the assets and liabilities of the Statutory Agency became assets and liabilities of the Commonwealth Superannuation Corporation (CSC) without any conveyance, transfer or assignment. As the assets and liabilities are recorded at fair value, the Directors of the Commonwealth Superannuation Corporation are of the view that the assets and liabilities will be realised in the normal course of business at their 30 June 2015 carrying values.

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:a) The Financial Reporting Rule 2014 (FRR) for reporting periods ending on or after 1 July 2014; andb) Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FRR, assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments or the Contingent Assets and Liabilities Note.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant Accounting Judgements and Estimates

In the application of Accounting Standards, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates.




1.3 Significant Accounting Judgements and Estimates (continued)

In the process of applying the accounting policies listed in this note, ComSuper has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

- The fair value of leasehold improvements has been assessed by an Independent Valuer. - ComSuper has made judgements in relation to the carrying value of internally developed software. The carrying amount is based on the recoverability as assessed by management given the most recent information available, including an impairment assessment by an independent consultant at 31 May - The Australian Government shorthand method has been used to estimate the present value of long service leave liabilities.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

No accounting assumptions or estimates have been identified that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard RequirementsNo accounting standard has been adopted earlier than the application date as stated in the standard. The following Accounting Standard was issued prior to the sign-off date, was applicable to the current reporting period and had an effect on the financial statements:AASB 1055 Budgetary Reporting - this added a new disclosure being 'Budgetary Reports and Explanation of Major variances (refer to note 18).All other new standards, amendments to standards and interpretations that were issued prior to the sign-off date, and applicable to the current reporting period, did not have a material effect, and are not expected to have a future material effect on ComSuper's financial statements.

Future Australian Accounting Standard RequirementsAll other new, revised or amending standards and/or interpretations that were issued prior to the sign-off date and are applicable to future reporting periods are not expected to have a future material effect on the financial statements.




1.5 Revenue

Rendering of ServicesRevenue from the rendering of other services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; andb) the probable economic benefits associated with the transaction will flow to ComSuper.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.Under the terms of a Memorandum of Understanding between the Department of Finance (Finance) and ComSuper, the superannuation administration service fees were reviewed annually and a recommendation was made to the Minister for Finance for approval for the following civilian superannuation schemes: - the Commonwealth Superannuation Scheme (CSS); - the Public Sector Superannuation Scheme (PSS); and - the Public Sector Superannuation accumulation plan (PSSap).

A separate fee schedule has been negotiated with the Department of Defence and CSC for the Military Superannuation Benefits Scheme (MSBS), Defence Forces Retirement Benefits Scheme (DFRB) and Defence Force Retirement and Death Benefits scheme (DFRDB).

When received these fees were held in the ComSuper Special Account. A Special Account is an appropriation mechanism that notionally sets aside an amount within the Consolidated Revenue Fund (CRF) to be expended for specific purposes. The amount of the appropriation is limited to the balance of the Special Account.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any allowance for impairment. Collectability of debts is reviewed as at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Revenue from GovernmentAmounts appropriated for programs for the year (adjusted for any formal additions and reductions) were recognised as revenue when ComSuper gained control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.




1.6 Gains

Resources Received Free of ChargeResources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements.

Sale of AssetsGains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner

Equity InjectionsAmounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity.

As part of the Superannuation Administration Reform (SAR) program measures, ComSuper paid a dividend of $6.709 million to the Official Public Account in 2014-15 (2013-14: $8.300 million).

Restructuring of Administrative ArrangementsNet assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Other Distributions to OwnersThe FRR requires that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.

1.8 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits ) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.




1.8 Employee Benefits (continued)

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will applied at the time the leave is taken, including the employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been calculated using the Australian Government short hand method. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and RedundancyProvision is made for separation and redundancy benefit payments. ComSuper recognises a provision for termination when it has developed a detailed formal plan for the termination and has informed those employees affected that it will carry out the termination.

SuperannuationStaff are members of the CSS, PSS or PSSap, or such other schemes as choice allows.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance as an Administered item.

ComSuper made employer contributions to the defined benefit employee superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of the employees. ComSuper accounted for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.




1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense. Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

Onerous RentWhere surplus space associated with non-cancellable operating leases exists and it is unlikely that there will be a future opportunity to enter into a sub-leasing arrangement for that space, the net present value of future rental costs associated with that space over the remaining period of the lease is expensed in the period and recognised as a liability. The liability is reduced by allocating lease payments between interest expense and the reduction of the liability over the period in which the lease has surplus lease space (refer to Note 9B).

1.10 Borrowing Costs

All borrowing costs are expensed as incurred.

1.11 Fair Value Measurement

The entity deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period.

1.12 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:a) cash on hand;b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value;c) cash held by outsiders; andd) cash in Special Accounts.




1.13 Financial Assets

ComSuper classified its financial assets as loans and receivables.

Financial assets are recognised and derecognised upon trade date.

Loans and Other ReceivablesLoans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘Loans and other receivables’. Loans and other receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Effective Interest MethodThe effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Impairment of Financial AssetsFinancial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

1.14 Financial Liabilities

Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Other Financial LiabilitiesOther financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).




1.15 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.16 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor agency’s accounts immediately prior to the restructuring.

1.17 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in property leases taken up by ComSuper where there exists an obligation to restore the property to its original condition. The ComSuper office accommodation lease does not include a requirement to 'makegood' at the end of the lease term.

RevaluationsFair values for each class of asset are determined as shown below:

Asset Class Fair value measured at

Leasehold improvements Depreciated replacement cost Property, plant and equipment Depreciated replacement cost




1.17 Property, Plant and Equipment (continued)

Following initial recognition at cost, property plant and equipment is carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to ComSuper using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:Asset Class 2015 2014Leasehold improvements Lease term Lease term Property, plant and equipment 3 to 10 years 3 to 10 years

ImpairmentAll assets were assessed for impairment at 30 June 2015. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

DerecognitionAn item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.




1.18 Intangibles

Intangibles comprise internally developed software and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of software are 3 to 10 years (2013-14: 3 to 10 years).

Purchased or internally developed intangibles are recognised initially at cost in the Statement of Financial Position, except for purchased intangibles costing less than $50,000 or internally developed assets costing less than $100,000. These items are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

All software assets were assessed for indications of impairment as at 30 June 2015.

1.19 Taxation / Competitive Neutrality

ComSuper was exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses, assets and liabilities are recognised net of GST except:a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; andb) for receivables and payables.

1.20 Reporting of Administered Activities

The FRR requires disclosure where one entity has drawn against a Special Appropriation which is the responsibility of another entity.

Administered assets, liabilities, revenues and expenses are those items which are controlled by the Government and were managed or over sighted by the entity on its behalf including: - Superannuation benefit payments - Superannuation contributions.

In addition to ComSuper, the entities responsible for managing the appropriations, Department of Finance (Finance), Department of Defence (Defence) and Department of Foreign Affairs and Trade (DFAT) will make separate disclosures of the contributions and unfunded benefits paid under the 1922, CSS, PSS, PNG, DFRB, DFRDB and MSBS schemes.




1.20 Reporting of Administered Activities (continued)

1922, CSS and PSS SchemesFinance has responsibility to account for the Commonwealth’s activities in relation to the 1922, CSS and PSS.

Finance has responsibility for managing the legislation and has delegated third party drawing rights for the appropriations under the following Acts: - Superannuation Act 1922 ; - Superannuation Act 1976 ; - Superannuation Act 1990 ; - Same Sex Relationships (Equal Treatment in Commonwealth Laws - Superannuation) Act 2008 ; - Governance of Australian Government Superannuation Schemes Act 2011 - s35(3)(a); and - Governance of Australian Government Superannuation Schemes Act 2011 - s35(4)In addition, ComSuper was delegated third party drawing rights by Finance for the funding of legal and incidental costs of superannuation claims, and Act of Grace payments. These were appropriated under Appropriation Act (No. 1) 2014-2015 and Appropriation Act (No. 2) 2014-2015 .

The funded components of the CSS and PSS Schemes are reported in their respective financial statements.

DFRB, DFRDB and MSBS SchemesDefence has responsibility for managing the legislation and has delegated third party drawing rights for the appropriations under the following Acts: - Defence Forces Retirement Benefits Act 1948 ; - Defence Force Retirement and Death Benefits Act 1973 ; and - Military Superannuation Benefits Act 1991 .

The funded components of MSBS are reported in the MSBS financial statements. The DFRB and DFRDB are unfunded Schemes.

PNG SchemeDFAT delegated third party drawing rights to ComSuper in respect of Papua New Guinea Superannuation Schemes which are appropriated in Appropriation Act (No. 1) 2014-2015 . ComSuper managed the payment of Pensions under the scheme on behalf of DFAT.

Administered Cash Transfers to and from the Official Public AccountRevenue collected by ComSuper for use by the Government rather than the Agency was Administered Revenue. Collections are transferred to the Official Public Account (OPA) maintained by Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriations on behalf of Government.



Note 2: Events After the Reporting Period

As stated in Note 1.1, ComSuper was abolished as at 1 July 2015, and the assets and liabilities of the Statutory Agency became assets and liabilities of the Commonwealth Superannuation Corporation (CSC) without any conveyance, transfer or assignment. As the assets and liabilities are recorded at fair value, the Directors of the Commonwealth Superannuation Corporation are of the view that the assets and liabilities will be realised in the normal course of business at their 30 June 2015 carrying values.



Note 3: Expenses

2015 2014$'000 $'000

Note 3A: Employee BenefitsWages and salaries (29,578) (33,116)Superannuation:

Defined contribution plans (3,110) (3,193)Defined benefit plans (3,356) (3,541)

Leave and other entitlements (4,124) (4,838)Separation and redundancies (1,582) (1,206)Total employee benefits (41,750) (45,894)

Note 3B: SuppliersGoods and services supplied or renderedConsultants (629) (831)Contractors 1 (7,058) (11,122)Information technology and communications (3,732) (3,751)Member administration and services (1,247) (645)Printing/stationery (780) (896)Property (other than rent) (1,002) (899)Training and development (983) (991)Other goods and services (1,884) (2,133)Total goods and services supplied or rendered (17,315) (21,268)

Goods and services supplied/rendered in connection withProvision of goods – external parties (743) (875)Rendering of services – related entities (1,085) (1,501)Rendering of services – external parties (15,487) (18,892)Total goods and services (17,315) (21,268)

Other supplier expensesOperating lease rentals – external parties:

Minimum lease payments (3,563) (2,728)Workers compensation expenses (986) (924)Total other supplier expenses (4,549) (3,652)Total supplier expenses (21,864) (24,920)

Note 3C: Depreciation and AmortisationDepreciation:

Property, plant and equipment (1,270) (1,226)Leasehold improvements (940) (675)

Total depreciation (2,210) (1,901)

Amortisation:Intangibles (2,003) (2,184)

Total amortisation (2,003) (2,184)Total depreciation and amortisation (4,213) (4,085)

1 Includes outsourcing costs for the administration of PSSap up until 4 December 2014. Subsequent to this date the outsourcing arrangement was novated to the CSC.



Note 3: Expenses (continued)2015 2014

$'000 $'000Note 3D: Write-Down and Impairment of Assets

Impairment of receivables (49) (32)Impairment of intangible assets (1,219) -Write-down of property, plant and equipment assets (3) -

Total write-down and impairment of assets (1,271) (32)

Note 3E: Losses from Asset salesProperty, plant and equipment

Proceeds from sale - -Carrying value of assets disposal - (1)Selling expense - -

Total losses from asset disposal - (1)

Note 3F: Trustee FeeCommonwealth Superannuation Corporation (CSC) trustee fee (5,247) (5,904)Total trustee fee (5,247) (5,904)



Note 4: Own-Source Income

2015 2014$'000 $'000

Own-Source Revenue

Note 4A: Sale of Goods and Rendering of ServicesRendering of services - related entities 72,389 77,398 Rendering of services - external parties 5,256 4,995 Other fees and reimbursements - related entities 4,544 6,530 Other fees and reimbursements - external parties 20 48 Total sale of goods and rendering of services 82,209 88,971

Gains

Note 4B: Other Gains

Resources received free of charge: Remuneration of Auditors 103 100 Total other gains 103 100

Note 4C: Revenue from GovernmentAppropriations:

Departmental appropriation - 1,144 Total revenue from Government - 1,144


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Note 6: Financial Assets

2015 2014$'000 $'000

Note 6A: Cash and Cash EquivalentsCash in Special Account 23,010 36,672 Cash on deposit 65 504 Total cash and cash equivalents 23,075 37,176

Note 6B: Trade and Other ReceivablesGood and Services:

Goods and services - related entities 15 97 Goods and services - external parties 56 81

Total receivables for goods and services 71 178

Other receivables:GST receivable from the Australian Taxation Office 250 310 Reimbursements 102 760

Total other receivables 352 1,070 Total trade and other receivables (gross) 423 1,248

Less: impairment allowanceTrade and other receivables (41) -

Total impairment allowance (41) -Total trade and other receivables (net) 382 1,248

Trade and other receivables (net) expected to be recoveredNo more than 12 months 379 1,102 More than 12 months 3 146

Total trade and other receivables (net) 382 1,248

Trade and other receivables (gross) are aged as follows:Not overdue 369 1,102 Overdue by:

0 to 30 days 2 7 31 to 60 days 1 - 61 to 90 days - 1 More than 90 days 51 138

Total trade and other receivables (gross) 423 1,248

Impairment allowance aged as follows:Not overdue - -Overdue by:

0 to 30 days - - 31 to 60 days - - 61 to 90 days - - More than 90 days (41) -

Total impairment allowance (41) -

Reconciliation of Impairment AllowanceMovements in relation to 2015Receivables - Goods and services - -Opening balance as at 1 July - -Amounts written off - -Amounts recovered and reversed - -Increase recognised in net contribution by services (41) -Total as at 30 June (41) -

Credit terms are net 30 days (2014: 30 days)



Note 7: Non-Financial Assets

2015 2014$'000 $'000

Note 7A: Leasehold improvementsLeasehold improvements:

Fair value 4,771 4,771 Accumulated depreciation (1,323) (383)

Total leasehold improvements 3,448 4,388

Note 7B: Property, Plant and EquipmentProperty, plant and equipment:

Fair value 4,362 3,846 Accumulated depreciation (1,690) (511)

Total property, plant and equipment 2,672 3,335

Revaluations of non-financial assets

No property, plant or equipment is expected to be sold or disposed of within the next 12 months.

At 30 June 2015, an independent valuer conducted a fair value assessment of the carrying values of all Leasehold Improvements and Property, Plant and Equipment assets. The assessment found that the current carrying amounts for ComSuper’s various asset classes as reported are suitably representative of Fair Value.

No indicators of impairment were found for property, plant and equipment (2013-14: Nil).

All revaluations are conducted in accordance with the revaluation policy stated at Notes 1.17 and 5.



Not

e 7:

Non

-Fin

anci

al A

sset

s (co

ntin

ued)

Lea

seho

ld Im

prov

emen

tsPr

oper

ty, P

lant

and

E

quip

men

tT

otal

$’00

0$’

000

$’00

0A

s at 1

Jul

y 20

14G

ross

boo

k va

lue

4,77

1 3,

846

8,61

7 A

ccum

ulat

ed d

epre

ciat

ion

and

impa

irmen

t(3

83)

(511

)(8

94)

Net

boo

k va

lue

1 Ju

ly 2

014

4,38

8 3,

335

7,72

3 A

dditi

ons:

By

purc

hase

-61

0 61

0 D

epre

ciat

ion

expe

nse

(940

)(1

,270

)(2

,210

)D

ispo

sals

:W

rite

off o

f Pro

perty

, pla

nt a

nd e

quip

men

t -

(3)

(3)

Net

boo

k va

lue

30 J

une

2015

3,44

8 2,

672

6,12

0

Net

boo

k va

lue

as o

f 30

June

201

5 re

pres

ente

d by

:G

ross

boo

k va

lue

4,77

1 4,

362

9,13

3 A

ccum

ulat

ed d

epre

ciat

ion

and

impa

irmen

t(1

,323

)(1

,690

)(3

,013

)N

et b

ook

valu

e 30

Jun

e 20

153,

448

2,67

2 6,

120

Not

e 7C

: R

econ

cilia

tion

of th

e O

peni

ng a

nd C

losi

ng B

alan

ces o

f Pro

pert

y, P

lant

and

Equ

ipm

ent 2

015



ote

7: N

on-F

inan

cial

Ass

ets (

cont

inue

d)

Leas

ehol

d Im

prov

emen

tsPr

oper

ty, P

lant

and

Eq

uipm

ent

Tota

l$’

000

$’00

0$’

000

As a

t 1 Ju

ly 2

013

Gro

ss b

ook

valu

e4,

413

4,61

3 9,

026

Acc

umul

ated

dep

reci

atio

n an

d im

pairm

ent

(1,1

50)

(1,8

30)

(2,9

80)

Net

boo

k va

lue

1 Ju

ly 2

013

3,26

3 2,

783

6,04

6 A

dditi

ons:

Rev

alua

tions

reco

gnis

ed in

oth

er c

ompr

ehen

sive

inco

me

1,78

5 (9

9)1,

686

By

purc

hase

15

1,87

8 1,

893

Dep

reci

atio

n ex

pens

e(6

75)

(1,2

26)

(1,9

01)

Dis

posa

ls:

Prop

erty

, pla

nt a

nd e

quip

men

t -

(1)

(1)

Net

boo

k va

lue

30 Ju

ne 2

014

4,38

8 3,

335

7,72

3

Net

boo

k va

lue

as o

f 30

June

201

4 re

pres

ente

d by

:G

ross

boo

k va

lue

4,77

1 3,

846

8,61

7 A

ccum

ulat

ed d

epre

ciat

ion

and

impa

irmen

t(3

83)

(511

)(8

94)

Net

boo

k va

lue

30 Ju

ne 2

014

4,38

8 3,

335

7,72

3

Not

e 7C

(Con

t'd):

Rec

onci

liatio

n of

the

Ope

ning

and

Clo

sing

Bal

ance

s of P

rope

rty, P

lant

and

Equ

ipm

ent 2

014



Note 7: Non-Financial Assets (continued)

2015 2014$'000 $'000

Note 7D: IntangiblesComputer software:

Internally developed – in progress 16,270 12,699 Internally developed – in use 26,971 24,387 Purchased 16,989 16,925 Accumulated amortisation (37,340) (35,550)Accumulated impairment losses (1,721) (535)

Total computer software 21,169 17,926 Total intangibles 21,169 17,926

A $1.2 million impairment loss was recognised for internally developed software in progress (2013-14: Nil).

No intangibles are expected to be sold or disposed of within the next 12 months.



ote

7: N

on-F

inan

cial

Ass

ets

(con

tinu

ed)

Com

pute

r so

ftw

are

inte

rnal

ly d

evel

oped

Com

pute

r s

oftw

are

purc

hase

dT

otal

$’00

0$’

000

$’00

0A

s at

1 J

uly

2014

Gro

ss b

ook

valu

e37

,086

16

,925

54

,011

A

ccum

ulat

ed a

mor

tisat

ion

and

impa

irm

ent

(20,

781)

(15,

304)

(36,

085)

Net

boo

k va

lue

1 Ju

ly 2

014

16,3

05

1,62

1 17

,926

A

dditi

ons:

Purc

hase

or

inte

rnal

ly d

evel

oped

6,29

8 16

7 6,

465

Impa

irm

ents

reco

gnis

ed in

net

con

trib

utio

n by

ser

vice

s(1

,188

)(3

1)(1

,219

)A

mor

tisat

ion

(1,2

53)

(750

)(2

,003

)N

et b

ook

valu

e 30

Jun

e 20

1520

,162

1,

007

21,1

69

Net

boo

k va

lue

as o

f 30

June

201

5 re

pres

ente

d by

:G

ross

boo

k va

lue

43,2

41

16,9

89

60,2

30

Acc

umul

ated

am

ortis

atio

n an

d im

pair

men

t(2

3,07

9)(1

5,98

2)(3

9,06

1)N

et b

ook

valu

e 30

Jun

e 20

1520

,162

1,

007

21,1

69

Not

e 7E

: R

econ

cilia

tion

of t

he O

peni

ng a

nd C

losi

ng B

alan

ces

of I

ntan

gibl

es 2

015



Not

e 7:

Non

-Fin

anci

al A

sset

s (c

ontin

ued)

Com

pute

r sof

twar

e in

tern

ally

dev

elop

edC

ompu

ter

softw

are

purc

hase

dTo

tal

$’00

0$’

000

$’00

0A

s at

1 J

uly

2013

Gro

ss b

ook

valu

e30

,721

15

,923

46

,644

A

ccum

ulat

ed a

mor

tisat

ion

and

impa

irmen

t(1

9,31

7)(1

4,58

4)(3

3,90

1)N

et b

ook

valu

e 1

July

201

311

,404

1,

339

12,7

43

Add

ition

s:B

y pu

rcha

se o

r int

erna

lly d

evel

oped

6,36

5 1,

002

7,36

7 A

mor

tisat

ion

(1,4

64)

(720

)(2

,184

)N

et b

ook

valu

e 30

Jun

e 20

1416

,305

1,

621

17,9

26

Net

boo

k va

lue

as o

f 30

June

201

4 re

pres

ente

d by

:G

ross

boo

k va

lue

37,

086

16,

925

54,

011

Acc

umul

ated

am

ortis

atio

n an

d im

pairm

ent

( 20,

781)

( 15,

304)

( 36,

085)

Net

boo

k va

lue

30 J

une

2014

16,3

05

1,62

1 17

,926

Not

e 7E

(Con

t'd):

Rec

onci

liatio

n of

the

Ope

ning

and

Clo

sing

Bal

ance

s of

Inta

ngib

les

2014



2015 2014$'000 $'000

Note 7F: Other Non-Financial AssetsPrepayments 1,429 1,476

Total other non-financial assets 1,429 1,476

Total other non-financial assets - are expected to be recovered in:No more than 12 months 1,218 973 More than 12 months 211 503

Total other non-financial assets 1,429 1,476

No indicators of impairment were found for other non-financial assets (2013-14: Nil).

Note 7: Non-Financial Assets (continued)



Note 8: Payables

2015 2014$'000 $'000

Note 8A: SuppliersTrade creditors and accruals (2,165) (4,522)Total supplier payables (2,165) (4,522)

Supplier payables expected to be settled within 12 months:Related entities (1,215) (281)External parties (950) (4,241)

Total (2,165) (4,522)

Supplier payables expected to be settled in greater than 12 months:Related entities - -External parties - -

Total - -Total supplier payables (2,165) (4,522)

Settlement was usually made within 30 days (2014: 30 days).

Note 8B: DividendsPayable to the Australian Government - (8,300)Total capital return - (8,300)

Note 8C: Other PayablesWages and salaries (1,298) (2,836)Superannuation (190) (200)Unearned revenue (5,678) (7,370)Lease Liabilities (795) (532)Other (18) (27)Total other payables (7,979) (10,965)

Total other payables are expected to be settled in:No more than 12 months (7,184) (10,433)More than 12 months (795) (532)

Total other payables (7,979) (10,965)



Note 9: Provisions

2015 2014$'000 $'000

Note 9A: Employee ProvisionsLeave (9,476) (11,270)Total employee provisions (9,476) (11,270)

Employee provisions are expected to be settled in:No more than 12 months (1,963) (2,572)More than 12 months (7,513) (8,698)

Total employee provisions (9,476) (11,270)

Note 9B: Other ProvisionsProvision for onerous rent (805) -Total other provisions (805) -

Other provisions are expected to be settled in:No more than 12 months (105) -More than 12 months (700) -

Total other provisions (805) -

Provision for onerous rent

Total other provisions

$’000 $’000Carrying amount 1 July 2014 - -

Additional provisions made (805) (805)Amounts used - -Amounts reversed - -Unwinding of discount or change in discount rate - -Derecognition of provision - -

Closing balance as at 30 June 2015 (805) (805)

During the year a provision for onerous rent was raised of $805,000, reflecting surplus office space identified (2014: Nil).



Note 10: Cash Flow Reconciliation

2015 2014$'000 $'000

Reconciliation of cash and cash equivalents as per the Statement of Financial Position to Cash Flow Statement

Cash and cash equivalents as per:Cash Flow Statement 23,075 37,176 Statement of Financial Position 23,075 37,176 Difference - -

Reconciliation of net contribution by services to net cash from operating activitiesNet contribution from services 7,967 8,235 Revenue from Government - 1,144

Adjustments for non-cash itemsDepreciation / amortisation 4,213 4,085 Net write down and impairment of of non-financial assets 1,221 -Loss on disposal of assets - 1

Movements in assets and liabilitiesAssetsDecrease / (increase) in trade and other receivables 866 (644)Decrease / (increase) in other non-financial assets 47 (277)Liabilities(Decrease) / increase in supplier payables (2,320) 457 (Decrease) / increase in other payables (2,986) 4,370 (Decrease) / increase in employee provisions (1,794) (74)Increase in other provisions 805 -Net cash from operating activities 8,019 17,297



Note 11: Contingent Assets and Liabilities

Quantifiable Contingencies

Unquantifiable Contingencies

Significant Remote ContingenciesComSuper had no significant remote contingencies as at 30 June 2015 (2014: Nil).

ComSuper had no quantifiable contingencies as at 30 June 2015 (2014: Nil).

ComSuper had no unquantifiable contingencies as at 30 June 2015 (2014: Nil).


Financial statements ComSuper

Note 12: Senior Management Personnel Remuneration

2015 2014$ $

Short-term employee benefits:Salary 1,279,581 1,530,095 Performance bonuses - 9,854 Other 183,506 138,771

Total short-term employee benefits 1,463,087 1,678,720

Post-employment benefits:Superannuation 235,373 299,114

Total post-employment benefits 235,373 299,114

Other long-term employee benefits:Annual leave 113,852 134,631 Long-service leave 41,306 48,845

Total other long-term employee benefits 155,158 183,476

Termination benefitsVoluntary redundancy payments 96,613 -Total termination benefits 96,613 -

Total senior management personnel remuneration expenses 1 1,950,231 2,161,310

Notes:

The total number of senior management personnel that are included in the above table is 9 (2014: 9).

1 The comparatives for 2013-14 have been increased by $177,887 in total, to include all Senior Management Personnel Remuneration relating to long term acting arrangements.



2015 2014$'000 $'000

Note 13A: Categories of Financial InstrumentsFinancial AssetsLoans and receivables:

Cash and cash equivalents 23,075 37,176 Trade receivables for goods and services 30 178 Reimbursements 102 760

Carrying amount of financial assets 23,207 38,114

Financial LiabilitiesAt amortised cost:

Trade creditors and accruals (2,165) (4,522)Other (18) (27)

Total (2,183) (4,549)Carrying amount of financial liabilities (2,183) (4,549)

Note 13B: Net Income and Expense from Financial Assets

Note 13C: Net Income and Expense from Financial Liabilities

Note 13D: Fair Value of Financial InstrumentsThe carrying amount for all financial assets and liabilities is equal to their fair value in the years ending 30 June 2014 and 30 June 2015.

Note 13: Financial Instruments

There was no interest income from financial assets not held at fair value through profit or loss in the year ending 30 June 2015 (2013-2014: Nil).

There was no interest expense from financial liabilities not held at fair value through profit or loss in the year ending 30 June 2015 (2013-2014: Nil).



Not

e 13

E: C

redi

t Risk

Com

Supe

r hel

d no

col

late

ral t

o m

itiga

te a

gain

st c

redi

t ris

k.

Cre

dit q

ualit

y of

fina

ncia

l ins

trum

ents

not

pas

t due

or

indi

vidu

ally

det

erm

ined

as i

mpa

ired

Not

pas

t due

nor

im

pair

edN

ot p

ast d

ue n

or

impa

ired

Past

due

or

impa

ired

Past

due

or

impa

ired

2015

2014

2015

2014

$'00

0$'

000

$'00

0$'

000

Cas

h an

d ca

sh e

quiv

alen

ts 2

3,07

5 3

7,17

6 -

-R

ecei

vabl

es fo

r goo

ds a

nd se

rvic

es

17

32

54

146

Rei

mbu

rsem

ents

1

02 7

60 -

-T

otal

23,1

94

37,9

68

54

146

Age

ing

of fi

nanc

ial a

sset

s tha

t wer

e pa

st d

ue b

ut n

ot im

pair

ed fo

r 20

150

to 3

0 31

to 6

0 61

to 9

090

+da

ysda

ysda

ysda

ysTo

tal

$'00

0$'

000

$'00

0$'

000

$'00

0Lo

ans a

nd re

ceiv

able

s:R

ecei

vabl

es fo

r goo

ds a

nd se

rvic

es

2 1

- 1

0 1

3To

tal

2 1

-10

13

Age

ing

of fi

nanc

ial a

sset

s tha

t wer

e pa

st d

ue b

ut n

ot im

paire

d fo

r 201

40

to 3

0 31

to 6

0 61

to 9

090

+da

ysda

ysda

ysda

ysTo

tal

$'00

0$'

000

$'00

0$'

000

$'00

0R

ecei

vabl

es fo

r goo

ds a

nd se

rvic

es

7 -

1 1

38 1

46To

tal

7 -

1 13

8 14

6

Com

Supe

r was

exp

osed

to m

inim

al c

redi

t ris

k as

loan

s and

rece

ivab

les w

ere

cash

and

trad

e re

ceiv

able

s. Th

e m

axim

um e

xpos

ure

to c

redi

t ris

k w

as th

e ris

k th

at a

rises

from

po

tent

ial d

efau

lt of

a d

ebto

r. Th

is a

mou

nt w

as e

qual

to th

e ba

lanc

e of

trad

e re

ceiv

able

s and

reim

burs

emen

ts (

2014

-201

5: $

173,

000

and

2013

-201

4: $

938,

000)

.

The

entit

y ha

s ass

esse

d th

e ris

k of

the

defa

ult o

n pa

ymen

t and

had

allo

cate

d $4

1,00

0 in

201

4-15

(201

3-14

Nil)

to a

n im

pairm

ent a

llow

ance

acc

ount

. Com

Supe

r also

m

anag

ed c

redi

t ris

k by

follo

win

g up

the

maj

ority

of d

ebto

rs w

hich

are

Com

mon

wea

lth a

genc

ies b

efor

e th

e du

e da

te to

ens

ure

paym

ent.

In a

dditi

on,

polic

ies a

nd p

roce

dure

s w

ere

in p

lace

that

gui

ded

empl

oyee

deb

t rec

over

y te

chni

ques

.

Not

e 13

: Fin

anci

al In

stru

men

ts (c

ontin

ued)



Not

e 13

F: L

iqui

dity

Ris

k

Mat

uriti

es fo

r no

n-de

riva

tive

finan

cial

liab

ilitie

s 201

5O

nw

ithin

1 to

22

to 5

> 5

dem

and

1 ye

arye

ars

year

sye

ars

Tot

al$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0Tr

ade

cred

itors

and

acc

rual

s -

(2,1

65)

- -

-(2

,165

)O

ther

-(1

8) -

- -

(18)

Tot

al -

(2,1

83)

- -

-(2

,183

)

Mat

uriti

es fo

r non

-der

ivat

ive

finan

cial

liab

ilitie

s 201

4O

nw

ithin

1 to

22

to 5

> 5

dem

and

1 ye

arye

ars

year

sye

ars

Tota

l$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0Tr

ade

cred

itors

and

acc

rual

s -

(4,5

22)

- -

-(4

,522

)O

ther

-(2

7) -

- -

(27)

Tot

al -

(4,5

49)

- -

-(4

,549

)

Not

e 13

G:

Mar

ket R

isk

Com

Supe

r hel

d ba

sic

finan

cial

inst

rum

ents

that

did

not

exp

ose

the

agen

cy to

cer

tain

mar

ket r

isks

, suc

h as

'cur

renc

y ris

k', '

inte

rest

rate

risk

' or '

othe

r pric

e ris

k'.

Com

Supe

r's fi

nanc

ial l

iabi

litie

s wer

e su

pplie

rs a

nd o

ther

pay

able

s. Th

e ex

posu

re to

liqu

idity

risk

was

bas

ed o

n th

e no

tion

that

Com

Supe

r will

enc

ount

er d

iffic

ulty

in

mee

ting

its o

blig

atio

ns a

ssoc

iate

d w

ith fi

nanc

ial l

iabi

litie

s. Th

is w

as h

ighl

y un

likel

y du

e to

app

ropr

iatio

n fu

ndin

g fo

r spe

cific

pro

ject

s and

inte

rnal

pol

icie

s and

pro

cedu

res

put i

n pl

ace

to e

nsur

e th

ere

are

appr

opria

te re

sour

ces t

o m

eet i

ts fi

nanc

ial o

blig

atio

ns.

Dur

ing

2014

-15

the

maj

ority

of C

omSu

per's

act

iviti

es w

ere

fund

ed th

roug

h di

rect

cha

rges

for s

chem

e ad

min

istra

tion

serv

ices

and

oth

er se

rvic

es p

rovi

ded

on b

ehal

f of C

SC.

Com

Supe

r man

aged

its b

udge

ted

fund

s to

ensu

re it

had

ade

quat

e fu

nds t

o m

eet p

aym

ents

as t

hey

fall

due.

In a

dditi

on, C

omSu

per h

ad p

roce

dure

s in

plac

e to

ens

ure

timel

y pa

ymen

ts w

ere

mad

e w

hen

due

and

had

no p

ast e

xper

ienc

e of

def

ault.

Not

e 13

: Fin

anci

al In

stru

men

ts (c

ontin

ued)



2015 2014$'000 $'000

Financial assets Notes

Total financial assets as per Statement of Financial Position 23,457 38,424 Less: non-financial instrument components:

GST receivable from the Australian Taxation Office 6B (250) (310)Total non-financial instrument components (250) (310)Total financial assets as per financial instruments note 23,207 38,114

Note 14: Financial Assets Reconciliation



Ann

ual

App

ropr

iatio

nA

FMSe

ctio

n 74

Sect

ion

75Se

ctio

n 32

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0D

EPA

RT

MEN

TAL

Ord

inar

y an

nual

serv

ices

- -

- -

- -

- -

-O

ther

serv

ices

Equi

ty -

- -

- -

- -

- -

Tota

l dep

artm

enta

l -

- -

- -

- -

- -

Ann

ual

App

ropr

iatio

nA

FMSe

ctio

n 74

Sect

ion

75Se

ctio

n 32

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0D

EPA

RTM

ENTA

LO

rdin

ary

annu

al se

rvic

es1,

144

- -

- -

1,14

4 1,

144

- -

Oth

er se

rvic

esEq

uity

1,35

0 -

- -

-1,

350

1,35

0 -

-To

tal d

epar

tmen

tal

2,49

4 -

- -

-2,

494

2,49

4 -

-

PGPA

Act

Tota

l app

ropr

iatio

nSe

ctio

n 51

D

eter

min

atio

ns

Sect

ion

51

Det

erm

inat

ions

Not

e 15

: App

ropr

iatio

ns

Not

e 15

A: A

nnua

l App

ropr

iatio

ns ('

Rec

over

able

GST

exc

lusi

ve')

App

ropr

iatio

n ap

plie

d in

201

5 (c

urre

nt a

nd p

rior

ye

ars)

Var

ianc

e

Ann

ual A

ppro

pria

tions

for

2015

Appr

opri

atio

n Ac

t

Var

ianc

e

Appr

opri

atio

n Ac

tPG

PA A

ct

Tota

l app

ropr

iatio

n

Ann

ual A

ppro

pria

tions

for 2

014

App

ropr

iatio

n ap

plie

d in

201

4 (c

urre

nt a

nd p

rior

year

s)



Not

e 15

B: S

peci

al A

ppro

pria

tions

('R

ecov

erab

le G

ST e

xclu

sive

')

2015

2014

Typ

ePu

rpos

e$'

000

$'000

Supe

rann

uatio

n Ac

t 192

2, A

dmin

iste

red

Unl

imite

d A

mou

nt(9

9,74

4)(1

08,6

54)

Supe

rann

uatio

n Ac

t 197

6, A

dmin

iste

red

Unl

imite

d A

mou

nt(4

,334

,517

)(4

,117

,787

)

Supe

rann

uatio

n Ac

t 199

0, A

dmin

iste

red

Unl

imite

d A

mou

nt(1

,734

,464

)(1

,342

,378

)

Sam

e Se

x Re

latio

nshi

ps (E

qual

Tre

atm

ent i

n C

omm

onw

ealth

La

ws -

Sup

eran

nuat

ion)

Act

200

8, A

dmin

iste

red

Unl

imite

d A

mou

nt(5

8)(5

7)

Gov

erna

nce

of A

ustr

alia

n G

over

nmen

t Sup

eran

nuat

ion

Sche

mes

Act

201

1 -

s35(

3)(a

) in

the

case

of t

he 1

922

Sche

me,

D

FRB

, DFR

DB

, DFS

PB o

r PN

G

Unl

imite

d A

mou

nt(1

3) -

Gov

erna

nce

of A

ustr

alia

n G

over

nmen

t Sup

eran

nuat

ion

Sche

mes

Act

201

1 -

s35(

4) to

reim

burs

e th

e su

pera

nnua

tion

fund

s adm

inis

tere

d by

CSC

Unl

imite

d A

mou

nt(9

9)(5

83)

Def

ence

For

ces R

etir

emen

t Ben

efits

Act

194

8, A

dmin

iste

red

Unl

imite

d A

mou

nt(5

0,20

2)(5

3,36

2)

Def

ence

For

ce R

etir

emen

t & D

eath

Ben

efits

Act

197

3,

Adm

inis

tere

dU

nlim

ited

Am

ount

(1,4

95,1

93)

(1,4

51,2

64)

Mili

tary

Sup

eran

nuat

ion

and

Bene

fits A

ct 1

991

, Adm

inis

tere

dU

nlim

ited

Am

ount

(523

,103

)(4

38,8

34)

Publ

ic G

over

nanc

e, P

erfo

rman

ce a

nd A

ccou

ntab

ility

Act

201

3 Se

ctio

n 77

(for

mer

ly F

inan

cial

Man

agem

ent a

nd

Acco

unta

bilit

y Ac

t 199

7 S

ectio

n 28

)

Ref

und

(343

)(1

6)

Publ

ic G

over

nanc

e, P

erfo

rman

ce a

nd A

ccou

ntab

ility

Act

201

3 Se

ctio

n 74

(for

mer

ly F

inan

cial

Man

agem

ent a

nd

Acco

unta

bilit

y Ac

t 199

7 S

ectio

n 30

)

Rep

aym

ent

-(2

33)

Tot

al(8

,237

,736

)(7

,513

,168

)

An

Act

to m

ake

prov

isio

n fo

r and

in re

latio

n to

an

occu

patio

nal s

uper

annu

atio

n sc

hem

e fo

r, an

d th

e pa

ymen

t of o

ther

ben

efits

to, m

embe

rs o

f the

Def

ence

For

ce,

and

for r

elat

ed p

urpo

ses.

Not

e 15

: App

ropr

iatio

ns (c

ontin

ued)

Aut

hori

ty

App

ropr

iatio

n ap

plie

d

An

Act

to p

rovi

de su

pera

nnua

tion

bene

fits f

or p

erso

ns e

mpl

oyed

by

the

Com

mon

wea

lth a

nd b

y ce

rtain

Com

mon

wea

lth A

utho

ritie

s and

to m

ake

prov

isio

n fo

r the

fam

ilies

of t

hose

per

sons

.A

n A

ct to

mak

e pr

ovis

ion

for a

nd in

rela

tion

to a

n oc

cupa

tiona

l sup

eran

nuat

ion

sche

me,

kno

wn

as th

e C

omm

onw

ealth

Sup

eran

nuat

ion

Sche

me,

for p

erso

ns

empl

oyed

by

the

Com

mon

wea

lth a

nd fo

r cer

tain

oth

er p

erso

ns.

An

Act

to m

ake

prov

isio

n fo

r and

in re

latio

n to

an

occu

patio

nal s

uper

annu

atio

n sc

hem

e fo

r per

sons

em

ploy

ed b

y th

e C

omm

onw

ealth

, and

for c

erta

in o

ther

per

sons

.

An

Act

to a

ddre

ss d

iscr

imin

atio

n ag

ains

t sam

e‑se

x co

uple

s and

thei

r chi

ldre

n in

C

omm

onw

ealth

law

s, an

d fo

r oth

er p

urpo

ses.

An

Act

to m

ake

prov

isio

n fo

r any

mon

ey b

ecom

ing

paya

ble

by C

SC in

resp

ect o

f an

actio

n, li

abili

ty, c

laim

or d

eman

d th

at re

late

s to

the

1922

Sch

eme,

DFR

B, D

FRD

B,

DFS

PB o

r PN

GA

n A

ct to

mak

e pr

ovis

ion

for a

ny m

oney

bec

omin

g pa

yabl

e by

Com

mon

wea

lth

Supe

rann

uatio

n C

orpo

ratio

n(C

SC) i

n re

spec

t of a

n ac

tion,

liab

ility

, cla

im o

r dem

and

that

rela

tes t

o an

y ot

her c

ases

not

cov

ered

in s3

5(3)

(a) o

f Gov

erna

nce

of A

ustra

lian

Gov

ernm

ent S

uper

annu

atio

n Sc

hem

es A

ct 2

011

An

Act

to p

rovi

de R

etire

men

t Ben

efits

for M

embe

rs o

f the

Def

ence

For

ce o

f the

C

omm

onw

ealth

, and

for o

ther

pur

pose

s.

An

Act

to m

ake

prov

isio

n fo

r and

in re

latio

n to

a S

chem

e fo

r Ret

irem

ent a

nd D

eath

B

enef

its fo

r Mem

bers

of t

he D

efen

ce F

orce

.

Rep

aym

ents

requ

ired

or p

erm

itted

by

law

(whe

re n

o ot

her a

ppro

pria

tion

for

repa

ymen

t exi

sts)

.

Rep

aym

ents

to th

e C

omm

onw

ealth

.


Financial statementsTa

ble

C: D

iscl

osur

e by

Age

nt in

Rel

atio

n to

Ann

ual a

nd S

peci

al A

ppro

pria

tions

('R

ecov

erab

le G

ST e

xclu

sive'

)

DFA

T

2015

$'00

0To

tal r

ecei

pts

-To

tal p

aym

ents

(7,7

72)

DFA

T

2014

$'000

Tota

l rec

eipt

s -

Tota

l pay

men

ts(8

,458

)

Dep

artm

ent o

f Fin

ance

Dep

artm

ent o

f Def

ence

Not

e 15

: App

ropr

iatio

ns (c

ontin

ued)

$'00

0$'

000

3,86

5,43

9 1,

369,

877

(6,1

70,1

45)

(2,0

68,4

98)

Dep

artm

ent o

f Fin

ance

Dep

artm

ent o

f Def

ence

$'000

$'000

4,58

5,64

0 1,

303,

030

(5,5

70,7

45)

(1,9

43,4

60)



Note 15: Appropriations (continued)

6. Governance of Australian Government Superannuation Schemes Act 2011;

Note 15D: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law.

ComSuper operated from the ComSuper Special Account established under Public Governance, Performance and Accountability Act 2013 Section 80 in providing superannuation administration for Australian Government sponsored superannuation schemes. ComSuper, as an Agent, had drawing rights for the following Special Appropriations (refer note 15B):

Department of Finance and Deregulation (Finance)1. Superannuation Act 1922;2. Superannuation Act 1976;3. Superannuation Act 1990;4. Superannuation Act 2005;5. Same-Sex Relationships (Equal Treatment in Commonwealth Laws - Superannuation) Act 2008;

7. Annual Appropriation Act 1 for Compensation & Legal payments and Act of Grace payments; and8. Annual Appropriation Act 2 for Act of Grace payments.

Department of Defence (Defence)1. Defence Forces Retirement Benefits Act 1948;2. Defence Force Retirement and Death Benefits Act 1973; and3. Military Superannuation and Benefits Act 1991.

Department of Foreign Affairs and Trade (DFAT)1. Appropriation Act 1 ( payments are made in accordance with the Papua New Guinea (Staffing Assistance) Act 1973)

Prior to the introduction of legislative changes included in the Financial Framework Legislation Amendment Act (No.2) 2012 (FFLA Act No.2 (2012)) and Financial Framework Legislation Amendment Act (No.1) 2013 (FFLA Act No.1 (2013)) ComSuper was at risk of non-compliance in circumstances where payments do not accord with conditions included in the relevant legislation. The amendments to the ComSuper Act 2011 removed the risk of a constitutional breach occurring in the case of an inadvertent overpayment to a member either as a result of death or a payment made beyond legislative pre-conditions. Both FFLA Act No.2 (2012) and FFLA Act No.1 (2013) require that ComSuper and the agency responsible for the special appropriation disclose, refer tables below, the number of recoverable overpayments made during the financial year.




No.Value $'000 No.

Value $'000

DFAT – Annual Administered Appropriation Papua New Guinea (Staffing Assistance) Act 1973 12 49 9 16

Defence - Special Appropriations

Defence Forces Retirement Benefits Act 1948; andDefence Force Retirement and Death Benefits Act 1973 503 1,210 521 1,004 Military Superannuation and Benefits Act 1973 17 60 14 32

Finance - Special Appropriations

Superannuation Act 1922; andSuperannuation Act 1976 2,353 4,602 2,440 3,927

Superannuation Act 1990 92 191 90 128

Superannuation Act 2005 N/A N/A N/A N/A

No.Value $'000 No.

Value $'000

DFAT – Annual Administered Appropriation Papua New Guinea (Staffing Assistance) Act 1973 Nil Nil Nil Nil

Defence - Special Appropriations

Defence Forces Retirement Benefits Act 1948; andDefence Force Retirement and Death Benefits Act 1973 240 90 643 Military Superannuation and Benefits Act 1973 56 126 78 263

Finance - Special Appropriations

Superannuation Act 1922; andSuperannuation Act 1976 167 34 306

Superannuation Act 1990 32 464 40 1,061

Superannuation Act 2005 N/A N/A N/A N/A

The following tables set out, as required by the FFLA Act No.2 and FFLA Act No.1, the number and amount of all payments made beyond legislative pre-conditions for the period 1 July 2014 to 30 June 2015:

Legislation / Authority to pay1 2015 2014Recoverable death payments2

Recoverable payments3

112

42




2 Recoverable death payments

1 LegislationAmounts paid under each legislation are disclosed in Note 15B Special Appropriations and Note 16 Special Account.

Legislative changes made in the FFLA Act No.2 and FFLA Act No.1 provides a mechanism, called a ‘recoverable death payment’ that provides authority for the inadvertent overpayments of some benefits, and for their recovery in line with the duty to pursue recovery of a debt under rule 11 of the Public Governance, Performance and Accountability Rule 2014 .

3 Recoverable paymentsLegislative changes made in the FFLA Act No.2 and FFLA Act No.1 provides a mechanism, called a ‘recoverable payment’, to address administrative issues common to ComSuper, that provides authority for the inadvertent overpayments of some benefits, and for their recovery in line with the duty to pursue recovery of a debt under rule 11 of the Public Governance, Performance and Accountability Rule 2014.



ote

16: S

peci

al A

ccou

nts

Not

e 16

: Spe

cial

Acc

ount

s (R

ecov

erab

le G

ST e

xclu

sive

)

2015

2014

2015

2014

$'00

0$'

000

$'00

0$'

000

Bal

ance

bro

ught

forw

ard

from

pre

viou

s per

iod

37,1

76

36,4

10

6,37

0 6,

736

Adj

uste

d B

alan

ce b

roug

ht fo

rwar

d fr

om p

revi

ous p

erio

d37

,176

36

,410

6,

370

6,73

6 In

crea

ses:

App

ropr

iatio

n cr

edite

d to

spec

ial a

ccou

nt -

2,49

4 -

-O

ther

rece

ipts

83,8

32

94,6

71

2,40

1,69

0 1,

714,

673

Tot

al in

crea

ses

83,8

32

97,1

65

2,40

1,69

0 1,

714,

673

Ava

ilabl

e fo

r pa

ymen

ts12

1,00

8 13

3,57

5 2,

408,

060

1,72

1,40

9 D

ecre

ases

:D

epar

tmen

tal

Paym

ents

mad

e to

supp

liers

(37,

823)

(42,

368)

--

Paym

ents

mad

e to

em

ploy

ees

(45,

101)

(45,

131)

Div

iden

d pa

id to

Dep

artm

ent o

f Fin

ance

(15,

009)

(8,9

00)

--

Tot

al d

epar

tmen

tal d

ecre

ase

(97,

933)

(96,

399)

- -

Spec

ial P

ublic

Mon

eyPa

ymen

ts m

ade

to o

ther

s -

-(2

,401

,558

)(1

,715

,039

)T

otal

spec

ial p

ublic

mon

ey d

ecre

ase

- -

(2,4

01,5

58)

(1,7

15,0

39)

Tot

al d

ecre

ases

(97,

933)

(96,

399)

(2,4

01,5

58)

(1,7

15,0

39)

Tot

al b

alan

ce c

arri

ed to

the

next

per

iod

23,0

75

37,1

76

6,50

2 6,

370

1 App

ropr

iatio

n: P

ublic

Gov

erna

nce,

Per

form

ance

and

Acc

ount

abili

ty A

ct 2

013

sect

ion

80.

Esta

blis

hing

Inst

rum

ent:

Sec

tion

21 C

omSu

per A

ct 2

011

2 App

ropr

iatio

n: P

ublic

Gov

erna

nce,

Per

form

ance

and

Acc

ount

abili

ty A

ct 2

013

sect

ion

78.

Esta

blis

hing

Inst

rum

ent:

Fin

anci

al M

anag

emen

t and

Acc

ount

ibili

ty D

eter

min

atio

n 20

11/0

5

Com

Supe

r Sp

ecia

l Acc

ount

(Dep

artm

enta

l)1Se

rvic

es fo

r O

ther

Ent

ities

and

Tru

st M

oney

s -

Com

Supe

r Sp

ecia

l Acc

ount

(Adm

inis

tere

d)2

Purp

ose:

For

the

rece

ipt a

nd e

xpen

ditu

re o

f mon

ies i

n co

nnec

tion

with

the

prov

isio

n of

adm

inis

tratio

n, a

ccou

ntin

g an

d ot

her s

uppo

rt se

rvic

es to

or o

n be

half

of th

e C

omm

onw

ealth

Su

pera

nnua

tion

Cor

pora

tion

(CSC

) (in

clud

ing

the

trans

fers

of t

he C

SC sh

are

of re

venu

e an

d di

vide

nd p

aym

ents

to G

over

nmen

t).

Purp

ose:

For

the

rece

ipt a

nd e

xpen

ditu

re o

f mon

ies i

n co

nnec

tion

with

pay

men

ts m

ade

on b

ehal

f of C

SS, P

SS, a

nd M

SBS,

and

for t

he re

ceip

t and

exp

endi

ture

of m

onie

s tem

pora

rily

held

on

trus

t or o

ther

wis

e fo

r the

ben

efit

of a

per

son

othe

r tha

n th

e C

omm

onw

ealth

. Th

e Tr

ust m

onie

s rep

rese

nt re

turn

ed b

enef

its w

hich

hav

e no

t yet

bee

n su

bseq

uent

ly re

paid

to th

e m

embe

r.



Note 17A: Net Contribution of outcome delivery

2015 2014$’000 $’000

DepartmentalExpenses (74,345) (80,836)Own-source income 82,312 89,071

Net contribution of outcome delivery 7,967 8,235

2015 2014$’000 $’000

ExpensesEmployees (41,750) (45,894)Suppliers (21,864) (24,920)Depreciation and amortisation (4,213) (4,085)Write-down and impairment of assets (1,271) (32)Losses from assets disposal - (1)Other expenses (5,247) (5,904)

Total (74,345) (80,836)Income

Sale of goods and rendering of services 82,209 88,971 Revenue from Government - 1,144 Other gains 103 100

Total 82,312 90,215 Assets

Cash and cash equivalents 23,075 37,176 Trade and other receivables 382 1,248 Leasehold improvements 3,448 4,388 Property, plant and equipment 2,672 3,335 Intangibles 21,169 17,926 Other non-financial assets 1,429 1,476

Total 52,175 65,549 Liabilities

Suppliers (2,165) (4,522)Dividends - (8,300)Other payables (7,979) (10,965)Employee provisions (9,476) (11,270)Other provisions (805) -

Total (20,425) (35,057)

ComSuper has one outcome and one program as described in Note 1.1.

Note 17: Reporting of Outcomes

Outcome 1

Outcome 1

Note 17B: Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome



Note 18A: Departmental Budgetary Reports

Actual ExplanatoryOriginal 1 Variance 2 Notes

2015 2015 2015$'000 $'000 $'000

NET COST OF SERVICESExpensesEmployee benefits 41,750 40,874 876 aSuppliers 21,864 27,518 (5,654) bDepreciation and amortisation 4,213 5,639 (1,426) cWrite-down and impairment of assets 1,271 - 1,271 dTrustee fee 5,247 6,653 (1,406) bTotal expenses 74,345 80,684 (6,339)

Own-source incomeOwn-source revenueSale of goods and rendering of services 82,209 88,879 (6,670) b & eTotal own-source revenue 82,209 88,879 (6,670)

GainsOther gains 103 105 (2)Total gains 103 105 (2)Total own-source income 82,312 88,984 (6,672)

Net gain from services 7,967 8,300 (333)

Revenue from Government - - -Surplus on continuing operations 7,967 8,300 (333)

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation reserve - - -

Total other comprehensive income after income tax 7,967 8,300 (333)

Total comprehensive income 7,967 8,300 (333)

The following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for the entity. The Budget is not audited.

Note 18: Budgetary Reports and Explanations of Major Variances

Statement of Comprehensive Income

Budget estimate

for the year ended 30 June 2015

1. The entity's original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the entity's 2014-15 PBS).2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.



Note 18: Budgetary Reports and Explanations of Major Variances (continued)

Note 18A: Departmental Budgetary Reports (continued)Statement of Financial Positionas at 30 June 2015


2015 2015 2015$'000 $'000 $'000

ASSETSFinancial AssetsCash and cash equivalents 23,075 24,194 (1,119)Trade and other receivables 382 - 382 Total financial assets 23,457 24,194 (737)

Non-Financial AssetsLeasehold improvements 3,448 1,597 1,851 Property, plant and equipment 2,672 4,054 (1,382)Intangibles 21,169 17,386 3,783 fOther non-financial assets 1,429 1,198 231 Total non-financial assets 28,718 24,235 4,483 Total assets 52,175 48,429 3,746

LIABILITIESPayablesSuppliers payables (2,165) (4,094) 1,929 bOther payables (7,979) (2,983) (4,996) a & gTotal payables (10,144) (7,077) (3,067)

ProvisionsEmployee provisions (9,476) (13,626) 4,150 a

Other provisions (805) - (805)Total provisions (10,281) (13,626) 3,345 Total liabilities (20,425) (20,703) 278 Net assets 31,750 27,726 4,024

EQUITYContributed equity 12,033 12,033 -Asset revaluation reserve 2,215 528 1,687 hRetained surplus 17,502 15,165 2,337 i & jTotal equity 31,750 27,726 4,024

1. The entity's original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the entity's 2014-15 PBS).2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

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Note 18A: Departmental Budgetary Reports (continued)


2015 2015 2015$'000 $'000 $'000

OPERATING ACTIVITIES Cash receivedReceipts from Government - 84,229 (84,229) kSale of goods and rendering of services 81,308 86,808 (5,500) bNet GST received 2,558 - 2,558 bTotal cash received 83,866 171,037 (87,171)

Cash usedEmployees (45,101) (40,874) (4,227) aSuppliers (30,746) (33,803) 3,057 bReceipts transferred to the Official Public Account - (82,364) 82,364 kTotal cash used (75,847) (157,041) 81,194Net cash from operating activities 8,019 13,996 (5,977)

INVESTING ACTIVITIES Cash usedPurchase of property, plant and equipment (610) - (610) Purchase of intangibles (6,501) (5,696) (805) fTotal cash used (7,111) (5,696) (1,415)Net cash used by investing activities (7,111) (5,696) (1,415)

FINANCING ACTIVITIESCash receivedContributed equity - - - Total cash received - - -

Cash usedDividend paid (15,009) (8,300) (6,709) lTotal cash used (15,009) (8,300) (6,709)Net cash used by financing activities (15,009) (8,300) (6,709)

Net increase (decrease) in cash held (14,101) - (14,101) Cash and cash equivalents at the beginning of the reporting period 37,176 36,410 766 Cash and cash equivalents at the end of the reporting period 23,075 36,410 (13,335)


2 Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

Cash Flow Statement for the period ended 30 June 2015

Budget estimate

1 The entity's original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the entity's 2014-15 PBS).



Note 18B: Departmental Major Budget Variances for 2015

Explanation of major variancesa. Employee benefit expenses are $0.9 million higher than

budget, primarily due to voluntary redundancy payments, partially offset by a reduction in full time equivalent employees in the final months leading up to the merger. This has also resulted in lower employee liabilities and higher other payables and cash used - employees.

b. Supplier expenses are $5.7 million lower than budget, mainly due to the novation of the PSSap scheme administration services contract to CSC on 4 December 2014. This has also resulted in a corresponding reduction in rendering of services revenue. This has also resulted in lower trustee fee expenses, supplier payables, cash used - suppliers, cash received - sales of goods and rendering of services and net GST receivable.

c. Depreciation and amortisation expenses are $1.4 million lower than budget, primarily due to the timing of capital projects and lower spend in information technology replenishments leading up to the merger.

d. Write-down and impairment of assets expenses are $1.3 million higher than budget due to asset write downs, particularly for intangibles, that were not expected at the time the budget was prepared.

e. Taking into account variance explanation b. above, sale of goods and services revenue was a further $1.9 million lower than budget due to a reduction in the recognition of one off revenues for projects completed or near completion. This has also resulted in lower cash received - sale of goods and services revenue.

f. Intangibles are $3.8 million higher than budget, largely due to the development work on Superannuation Administration Reform Program, Capital and Legislative Change projects. This has also resulted in higher cash used - purchase of intangibles.

g. Other payables is higher than budget, largely due to the receipt of unearned revenue of $2.5 million associated with an memorandum of understanding with the Department of Finance regarding the delivery of an administration platform for the Parliamentary Contributory Superannuation Scheme (PCSS) and Judges and Governor-General pension arrangements, which was signed after the PBS was developed.


Affected line items (and statements)

Payables - Other payables (Statement of Financial Position)

Expenses - Employee benefits (Statement of Comprehensive Income) Payables - Other payables and Provisions - Employee provisions (Statement of Financial Position)Cash Used - Employees (Cash Flow Statement)

Expenses - Suppliers, Expenses - Trustee fee and Own-Source Revenue - Sale of goods and rendering of services revenue (Statement of Comprehensive Income)Payables - Supplier payables (Statement of Financial Position)Cash Used - Suppliers, Cash Used - Net GST paid, Cash Received - Net GST receivable, Cash Received - Sale of goods and rendering of services (Cash Flow Statement)Expenses - Depreciation and amortisation (Statement of Comprehensive Income)

Expenses - Write-down and Impairment of Assets (Statement of Comprehensive Income)

Own-source revenue (Statement of Comprehensive Income) Cash Received - Sale of goods and rendering of revenue (Cash Flow Statement)

Non-Financial Assets - Intangibles (Statement of Financial Position)Cash Used - Purchase of Intangibles (Cash Flow Statement)



Note 18B: Departmental Major Budget Variances for 2015 (continued)

Explanation of major variances

h. Reserves are higher than budget, largely due to a revaluation of non-financial assets of $1.7 million that occurred in the 2013-14 financial year, which was not known at the time the budget was developed.

i. Retained surplus is higher than budget, primarily due to later timing of the Capital 10 and Legislative Change projects.

j. Dividends provided for or paid is $1.6m lower than budget as the actual amount represents the dividend to be paid net of agreed funding for voluntary redundancy payments.

k. Transfers to and from the Official Public Account (OPA) are included in Budget Estimates but are netted for actuals reporting purposes.

l. Dividend paid is higher than budget as the budget assumes the dividends are paid in the year to which they relate, however the invoice for the 2013-14 dividend payment was not received until the 2014-15 financial year. The actual 2014-15 dividend was paid in the 2014-15 financial year but was lower than budget as the dividend payment was netted against agreed funding for voluntary redundancy payments.

Affected line items (and statements)

Equity - Reserves (Statement of Financial Position and Statement of Changes in Equity)

Equity - Retained Surplus (Statement of Financial Position and Statement of Changes in Equity)

Cash Received - Receipts from Government and Cash Used - Receipts transferred to the Official Public Account (Cash Flow Statement).Cash Used - Dividend paid (Cash Flow Statement)


Equity - Retained Surplus (Statement of Financial Position and Statement of Changes in Equity)

Appendices


Appendices

Appendix A: Main schemes administeredTable A1: Main schemes summary

Scheme Description Coverage

Commonwealth Superannuation Scheme (CSS)

> Partly funded hybrid scheme

> Established 1 July 1976

> Closed to new members on 1 July 1990

> From 1 July 2008, a members contribution rate is 0% or 5% of their salary

> Membership was compulsory for most APS employees permanently appointed before 1 July 1990

> Full-time temporary and contract employees and full-time statutory office-holders could also join before that date

Public Sector Superannuation Scheme (PSS)

> Partly funded defined benefit scheme

> Established 1 July 1990

> Closed to new members on 1 July 2005

> From 1 July 2008, a members contribution rate is 0% or any amount between 2% to 10% of their salary

> The notional employer contribution rate varies according to the member contribution rate

> Membership was compulsory for all permanent full-time or permanent part-time employees appointed from 1 July 1990, and optional for temporary and casual employees

> The productivity benefit has been accruing on behalf of all members since establishment

Defence Force Retirement and Death Benefits Scheme (DFRDB)

> Fully unfunded defined benefit scheme

> Established 1 October 1972

> Closed to new members on 1 October 1991

> Member contribution rate is 5.5% of the highest incremental salary for rank plus allowances

> Membership was compulsory for members of the ADF who enlisted before 1 October 1991

> The productivity benefit has been accruing on behalf of all ADF members since 1 January 1988

> Members may make additional contributions to an MSBS Ancillary account including salary sacrifice contributions, additional personal contributions and rollovers in from external superannuation funds

Military Superannuation and Benefits Scheme (MilitarySuper)

> Partly funded hybrid scheme

> Established 1 October 1991

> The member contribution rate is between 5% and 10% of salary > Compulsory for all new entrants to the ADF on and from 1

October 1991 > The productivity benefit has been accruing on behalf of all ADF

members since establishment > Members may make additional contributions to an MSBS

Ancillary account including salary sacrifice contributions, additional personal contributions and rollovers in from external superannuation funds


Appendices

Section 2A also contains information and statistical data about the schemes ComSuper administer.

Table A2: Scheme membership and transactions

Membership numbers at 30 June 2015 Annual transactions $m

CSS (including 1922 and PNG)

Contributors 8,396 Contributions 99

Deferred 6,200 Benefits paid

Pensioners 112,972 Lump sum 529

Total 127,568 Pensions 3,909

PSS


Preserved 103,167 Benefits paid



DFRDB (including DFRB)


Preserved – Benefits paid



MilitarySuper


Preserved 100,042 Benefits paid


Total 169,643 Pensions 374

Summary

Contributors 156,530 Contributions 3,715

Preserved/Deferred 209,409 Benefits paid

Pensioners 220,999 Lump sum 1,477

Grand Total 586,938 Pensions 6,819


Appendices

Appendix B: Additional scheme informationDetailed information about the administration of the CSS, PSS, DFRDB and MilitarySuper schemes, including investment information, can be found in the Commonwealth Superannuation Corporation (CSC) Annual Report available at www.csc.gov.au.

Further information about the schemes is available from the individual scheme websites:

> www.css.gov.au

> www.pss.gov.au

> www.dfrdb.gov.au

> www.militarysuper.gov.au.

Appendix C: Other schemes administeredThe 1922 schemeLegislationFrom 1 July 2011, as a result of changes made by the Governance of Australian Government Superannuation Schemes Act 2011, CSC assumed responsibility for the general administration and operation of the Superannuation Act 1922 (1922 Act). Contributors under this Act were compulsorily transferred to the CSS on 1 July 1976.

However, the 1922 Act still provides for the payment of pensions that were in force at 1 July 1976, deferred benefit entitlements and any reversionary pensions that become payable.

BeneficiariesThe 1922 scheme is a closed scheme and there are no contributing members.

Pensions paid under the 1922 Act are administered by ComSuper. Details of ComSuper’s services to pensioners, that is, members, can be found in Section 2A: Schemes administration. Table A3 shows the number and type of pension’s payable under the 1922 scheme.

The total annual payments for 1922 pensions amounted to $99.74 million in 2014–15, compared with $108.65 million in 2013–14.

Table A3: 1922 pensionsAt 30 June 14 Commenced 14–15 Ceased 14–15 At 30 June 15

Retirement/Redundancy 73 2 12 63

Invalidity 721 0 65 656

Reversionary 2,822 23 349 2,496

Total 3,616 25 426 3,215


Appendices

Reconsideration of decisionsFrom 1 July 2011, people who were dissatisfied with decisions made under the 1922 Act could have those decisions reconsidered by CSC.

No requests for reconsideration under the 1922 Act were received or processed during 2014–15.

External reviewThe Administrative Appeals Tribunal (AAT) is the forum for the external review of decisions made under the 1922 Act. No applications for review of decisions under the 1922 Act were lodged with the AAT during 2014–15.

Ombudsman enquiries and representations by members of parliamentNo Ombudsman enquiries or representations from members of Parliament were received in relation to this scheme.

The PNG schemeLegislationFrom 1 July 2011, as a result of changes made by the Governance of Australian Government Superannuation Schemes Act 2011, CSC assumed responsibility for the payment of pensions under the Superannuation Ordinance 1917 of the Territory of Papua and the Superannuation Ordinance 1928 of the Territory of New Guinea. The funds that were established under these ordinances have not existed for many years and

the full cost of these pensions is met from the Consolidated Revenue Fund.

The Superannuation (Papua New Guinea) Ordinance 1951 provided retirement benefits for employees of the administration of the Territory of Papua and New Guinea through the establishment of the Papua and New Guinea Superannuation Fund. The Superannuation Board, which was constituted under the 1951 Ordinance, was also empowered to administer the funds established under the Superannuation Ordinance 1917 of the Territory of Papua and the Superannuation Ordinance 1928 of the Territory of New Guinea.

The Papua New Guinea (Staffing Assistance) (Superannuation) Regulations 1973 made under section 65 of the Act came into operation on 1 December 1973.

These regulations provided retirement benefits of the same nature and at the same levels as the 1951 Ordinance and provided for continuity with respect to the payment of benefits approved in accordance with the 1917 and 1928 Ordinances. The regulations also contain detailed provisions for this scheme.

BeneficiariesThe PNG scheme is a closed scheme and there are no contributing members. Table A4 shows the number and type of pensions payable under the scheme.

The total annual payments for PNG pensions amounted to $7.61 million in 2014–15, compared to $8.34 million in 2013–14.

Table A4: PNG pensions

At 30 June 14 Commenced 14–15 Ceased 14–15 At 30 June 15


Invalidity 9 0 2 7

Reversionary 134 2 13 123

Total 175 2 20 157


Appendices

Reconsideration of decisionsFrom 1 July 2011, people who were dissatisfied with decisions made under the PNG Act or the Papua New Guinea (Staffing Assistance) (Superannuation) Regulations 1973 could have those decisions reconsidered by CSC.

No requests for reconsideration were received or processed during 2014–15.

External reviewThe AAT is the forum for the external review of decisions made under the PNG Act. No matters were referred to the AAT for review in 2014–15.

Ombudsman enquiries and representations by members of parliamentNo Ombudsman enquiries or representations from members of Parliament were received in relation to these schemes.

The Defence Forces Retirement Benefits schemeLegislationThe Defence Forces Retirement Benefits scheme (DFRB), established in 1948 by the Defence Forces Retirement Benefits Act 1948 (DFRB Act), was closed to new contributors from 30 September 1972. It continues to provide for the benefit entitlements of those members who ceased to be contributors before 1 October 1972 and for reversionary benefits to their eligible spouses and children. Members who were contributors to DFRB on 30 September 1972 were compulsorily transferred to DFRDB on 1 October 1972.

From 1 July 2011, as a result of changes made by the Governance of Australian Government Superannuation Schemes Act 2011, CSC assumed responsibility for the general administration and operation of DFRB.

BeneficiariesDFRB is a closed scheme and there are no contributing members.

Pensions paid under the DFRB Act are administered by ComSuper. The following table shows the number and type of pensions payable under the scheme.

The total annual payments for PNG pensions amounted to $50.20 million in 2014–15, compared to $53.36 million in 2013–14.

Table A5: DFRB pensions

At 30 June 14 Commenced 14–15 Ceased 14–15 At 30 June 15


Invalidity 598 1 31 568

Reversionary 1,924 46 145 1,825

Total 3,129 47 249 2,927


Appendices

Reconsideration of decisionsFrom 1 July 2011, people who were dissatisfied with decisions made under the DFRB Act could have those decisions reconsidered by the Defence Force Case Assessment Panel on behalf of CSC.

There were two requests for reconsideration under the DFRB Act received during 2014–15. At 30 June 2015, two cases had been finalised.

External reviewThe AAT is the forum for the external review of decisions made by CSC for DFRB members. For statistics on external reviews, please see the external appeals part of Schemes administration.

Ombudsman enquiries and representations by members of parliamentNo Ombudsman enquiries or representations from members of Parliament were received in relation to this scheme.

Appendix D: Freedom of information and privacyComSuper was subject to the Freedom of Information Act 1982 (FOI Act) and was required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report. ComSuper displayed an agency plan on the website (www.comsuper.gov.au) showing what information was required to be published in accordance with the IPS.

Privacy governance and operationsThe Privacy Act 1988 (Privacy Act) contains Australian Privacy Principles (APPs) that Commonwealth agencies and relevant contracted service providers must observe. ComSuper, in accordance with the APPs, was authorised to collect, store, use and disclose personal information of scheme members, beneficiaries and their associates. As an employer, ComSuper similarly collected and used the personal information of employees and some contracted personnel. This personal information, maintained in hard copy and electronic file records, included medical histories, financial details, family relations and contact details. We record and store aggregate member details on various secure databases.

A Privacy Contact Officer (PCO) was allocated to focus on APS and military scheme membership matters.

A separate PCO was responsible for ComSuper’s corporate privacy matters. ComSuper’s Chief Governance Officer and the Executive Committee oversaw privacy operations via the Security and Privacy Committee. ComSuper’s staff and service providers worked closely together to ensure that all privacy-related information collected, especially that entrusted to ComSuper by scheme members, was respected, appropriately handled and protected from compromise.

DisclosureThe Privacy Act permits disclosure of personal information to third parties in certain circumstances. In 2014–15, we made permitted disclosures of biannual CPI-adjusted pension entitlements for all scheme members to the DVA and Centrelink. These disclosures were part of ComSuper’s standard operating processes.


Appendices

BreachesThere were 62 privacy incidents recorded during 2014–15. Of these incidents, 36 involved APS schemes, 26 involved military schemes and no incident involved IT access.

The majority of privacy incidents related to misdirected correspondence or insufficient points of identification being obtained before information or advice was released to a person.

However, in most of these incidents ComSuper ascertained that the information was not accessed by a third party. Action to remedy the incidents was taken in all instances either through additional staff training and procedural changes and/or, where applicable, notifying the scheme member or relevant party concerned. No significant breaches were received for this period and therefore none were reported to the Office of the Australian Information Commissioner.

Procedures and trainingInformation collection practices were constantly reviewed at ComSuper by involving internal security and records management specialists in developing storage and access arrangements to ensure compliance with the Privacy Act. Internal forms, forms for use by scheme members and beneficiaries, as well as policies and procedures used to collect information, were also reviewed to ensure that they complied with the Privacy Act.

Appendix E: ConsultanciesDuring 2014–15, ComSuper’s policies for procuring consultancy services were in accordance with the core principles set out in the Commonwealth Procurement Rules which are:

> value for money

> accountability and transparency

> efficient, effective, economical and ethical use of resources

> encouraging competition.

ComSuper’s procurement also complied with the Department of Finance and Deregulation’s Financial Management Guidance no 15: Guidance on Procurement Publishing Obligations (July 2007).

During 2014–15, five consultancy contracts were entered into involving total actual expenditure of $96,456 including GST. One new legal consultancy contract was entered into involving a total expenditure of $17,105 including GST

Annual reports contain information about actual expenditure on contracts for consultancies.

Information on the value of contracts and consultancies is available on the AusTender website www.tenders.gov.au.

Table A6: Expenditure on new consultancy services

Financial year Total actual expenditure ($)

2012–13 400,000

2013–14 860,000

2014–15 113,561

Auditor-General access and exempt contractsDuring 2014–15, all contracts over $100,000 (inclusive of GST) allowed for the Auditor-General to have access to the contractor’s premises.

No contracts over $10,000 (inclusive of GST) were exempt from being published on AusTender for freedom of information purposes.


Appendices

Appendix F: Advertising and market researchDuring 2014–15, ComSuper did not conduct any advertising campaigns. Table A7 outlines the amounts paid to market research, direct mail and media advertising organisations.

Table A7: Market research, direct mail and media advertising for 2014–15

Service provided Total ($)

Market research

Colmar Brunton Client satisfaction survey 2013–14 60,083

Total 60,083

Direct mail organisations

CanPrint Communications Pty Ltd Storage and distribution services for scheme publications

460,850

Union Offset Printers Printing and mailing services

1,012

Lane Bros Pty Ltd Printing and mailing services

15,758

Salmat Printing and mailing services

0

Total 477,620


Appendices

Appendix G: Ecologically sustainable developmentAdministrationThe following information is provided in accordance with section 516A of the Environmental Protection and Biodiversity Conservation Act 1999 (the EPBC Act). It details how ComSuper contributed to ecologically sustainable development (ESD).

Although ComSuper’s outcome and governing legislation did not directly impact ESD, ComSuper had an Environmental Management System (EMS) to monitor and manage the impacts of its activities on the environment. This assisted in reducing ComSuper’s environmental footprint. The EMS was reviewed each year and was an evolving process.

Environmental impact and performanceComSuper was committed to reducing its impact on the environment and as such it was included as a key results area in the strategic plan.

The main impact on the environment results from energy consumption for the accommodation

ComSuper leased at Cameron Offices in Belconnen, ACT. This included electricity for lighting, temperature control and power for office equipment.

In 2014–15, measures were taken to minimise ComSuper’s impact and improve environmental sustainability.

Energy efficiencyIn 2014–15, the energy usage for lighting and power in ComSuper’s office was reduced by 68,393 kilowatt hours and greenhouse gas emissions reduced by 72 tonnes. Initiatives to improve energy efficiency included:

> staff shutting down desktops and monitors overnight

> using energy saving modes where available

> setting time zones for air-conditioning and lighting

> continuing with the whole of government electricity supplier ERM.

> continuing to have the data centre off site.

ComSuper’s car fleet consisted of two vehicles in 2014–15. ComSuper encouraged the use of ethanol-blend biofuel (E10) to minimise environmental impact.

WasteComSuper made a conscious effort to reduce its waste and to reinforce environmentally-friendly practices by encouraging the use of recyclable material and educating staff through signage at recycling stations on each floor. Recycling stations proved effective in 2014–15, with 68.72 tonnes being recycled (50.26% of total waste collected). ComSuper recycled paper, cardboard, toner cartridges, glass, plastic and organic materials. A reduction of staff numbers in 2014–15 contributed to a marginal percentage increase in waste to landfill as departing staff tended to increase waste production when vacating the ComSuper premises.

In order to reduce paper and ink usage, printers were set to black and white and double- sided printing as the default. Staff were encouraged to only print where necessary, taking advantage of email and online records management systems. The introduction of Swipe-to-Print printers has reduced the use of A4 and A3 paper.

To reduce the amount of printed member communications, ComSuper promoted online versions of annual member statements, forms, facts sheets and other member information.

WaterDual flush toilets and water saving showerheads were installed throughout ComSuper’s offices to reduce water usage. We also provide filtered tap water to discourage the use of bottled water.

In 2014–15, ComSuper reduced its water consumption by 1,247 kL from the previous year.


Appendices

Table A8: Environmental performance indicators

Performance measure Indicator(s) 2013–14 2014–15

Energy efficiency

Total consumption of energy –this includes all energy consumed when undertaking the functions of the agency, such as energy consumed for office buildings

Amount of electricity purchased/consumed (kWh)

1,113,305 1,044,913

Total consumption of green energy – this includes the purchase of energy from sustainable sources

Amount of green energy purchased/ consumed (kWh) during the reporting period

111,330 104,491

Greenhouse gas emissions Amount of greenhouse gases produced (tonnes)

721 649

Relative energy uses – this includes the green energy use relative to non- renewable energy use and energy use per employee

Amount of green energy purchased/consumed divided by the amount of electricity/gas/other fuels purchased/consumed (percent)

10 10

Amount of total energy purchased/consumed (kWh) per employee

2,124 2,618

Waste

Total waste production – this includes all waste (i.e. unwanted by-products) produced when undertaking the functions of the agency

Amount of waste produced (tonnes)

134.36 136.72

Un-recyclable waste production – this includes all wastes that are not re-used or recycled

Amount of waste going to landfills (tonnes)

65.5 68.0

Recyclable waste production (excluding office paper)

Amount of waste going to recycling facilities (tonnes)

10.2 10.5

Paper waste production Amount of waste paper going to recycling facilities (tonnes)

65.5 58.66

Amount of paper sourced from recyclable sources (tonnes)

11.94 8.17

Percentage of paper sourced from recyclable sources (percent)

100 100

Relative waste production Amount of the total waste (tonnes) per employee

0.29 0.26

Water

Total consumption of water – this includes all water consumed when undertaking the functions of agency

Amount of water purchased/consumed (kl)

6,328 5,081


Appendices

Appendix H: Agency Resource StatementTable A9: Agency Resource Statement 2014–15

Actual available Appropriation for

2014–15 ($’000)

Payments made 2014–15 ($’000)

Balance remaining 2014–15 ($’000)

(a) (b) (a) – (b)

Special Accounts

Opening balance 37,176 – –

Non-appropriation receipts to Special Accounts

83,832 – –

Payments made – 97,933 –

Total 121,008 97,933 23,075

Expenses for Outcome 1Outcome 1: Provide access to Australian Government superannuation benefits and information, through developing members’ understanding of the schemes, processing contributions, supporting investment processes, paying benefits and managing member details, for current and former Australian Public Servants and members of the Australian Defence Force, on behalf of the Commonwealth Superannuation Corporation.

Budget* 2014–15 ($’000)

Actual Expenses 2014–15 ($’000)

Variation 2014–15 ($’000)

(a) (b) (a) – (b)

Program 1.1: Superannuation Administration Services

Departmental expenses

Special Accounts 80,579 74,345 6,234

Expenses not requiring appropriation in the Budget year

105 103 2

Total for Program 1.1 80,684 74,448 6,236

Total expenses for Outcome 1 80,684 74,448 6,236

Average Staffing Level (number) 410 415

* Full year budget, including any subsequent adjustment made to the 2014–15 Budget.


Appendices

Appendix I: Grant programsComSuper does not administer any grant programs.

Appendix J: Corrections to the 2013–14 Annual ReportSection 2cOperating result (page68)

ComSuper’s operating surplus for 2013-14 was $9.379 million not $11.065 million as reported.

Reference material


Reference material

Glossary and acronymsTerm Definition

1922 Act Superannuation Act 1922

1976 Act Superannuation Act 1976

AAT Administrative Appeals Tribunal

ADF Australian Defence Force

AML/CTF Anti-money laundering and counter-terrorism financing

ANAO Australian National Audit Office

APRA Australian Prudential Regulation Authority

APS schemes CSS, PSS, PSSap, 1922 and PNG schemes

ASFA Association of Superannuation Funds of Australia

ATO Australian Taxation Office

Capital Administration system used to manage the military schemes and pension accounts for all schemes

CDDA Scheme for Compensation for Detriment caused by Defective Administration

CEO Chief Executive Officer

CIC Customer Information Centre

ComSAS Administration system used to manage the APS defined benefit schemes

CPI Consumer Price Index

CSC Commonwealth Superannuation Corporation

CSS Commonwealth Superannuation Scheme

Defence Department of Defence

DFRB Defence Forces Retirement Benefits scheme

DFRDB Defence Force Retirement and Death Benefits scheme

DFRDB Act Defence Force Retirement and Death Benefits Act 1973

DFSPB Defence Force Superannuation Productivity Benefit scheme

DVA Department of Veterans’ Affairs

ePASS A secure online interface for employers to lodge members contributions and data, and for members and pensioners to make account enquiries

ESO Employer Services Online

FOI Act Freedom of Information Act 1982


Reference material

Term Definition

FOI Freedom of Information

GS 007 Guidance Statement GS 007 Audit Implications of the Use of Service Organisations for Investment Management Services

ICT Information and Communication Technology

IWG Interdepartmental Working Group for Streamlining Administration of Transitioning and Former ADF Members

KPI Key Performance Indicator

Members Members and pensioners of the CSS, PSS, MilitarySuper, DFRDB, DFRB, 1922 and PNG schemes

Military schemes MilitarySuper, DFRDB and DFRB

MilitarySuper Military Superannuation and Benefits Scheme

MSO Member Services Online

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PGPA Public Governance, Performance and Accountability Act 2013

PSO Pensioner Services Online

PNG scheme Papua New Guinea scheme

PSS Public Sector Superannuation Scheme

PSSap Public Sector Superannuation accumulation plan

SCT Superannuation Complaints Tribunal

SES Senior Executive Service

SLA Service level agreement

TPI Totally and permanently incapacitated

WHS Work Health and Safety


Reference material

List of requirementsUnder subsection 63(2) of the Public Service Act 1999, annual reports must be prepared according to guidelines approved on behalf of the parliament by the Joint Committee of Public Accounts and Audit.

The committee approved the Requirements for annual reports for departments, executive agencies and other non-corporate Commonwealth entities bodies in June 2015. These requirements apply to annual reports for the financial year ending on 30 June 2015. The requirements stipulate a core set of mandatory information that must be included in annual reports to ensure that accountability requirements are met and to provide consistency for readers.

The following table shows where the information specified by the requirements can be found in this report.

Description Requirement Page

Letter of transmittal Mandatory 3

Table of contents Mandatory 5

Index Mandatory 136

Glossary Mandatory 130

Contact officer(s) Mandatory 4

Internet home page address and Internet address for report Mandatory 4

Review by the CEO

Review by the CEO Mandatory 10

Summary of significant issues and developments Suggested 10

Overview of department’s performance and financial results Suggested N/A

Outlook for following year Suggested N/A

Agency overview

Role and functions Mandatory 11

Organisational structure Mandatory 13

Outcome and program structure Mandatory 14

Where outcome and program structures differ from PBS/PAES or other portfolio statements

Mandatory 14


Review of performance during the year in relation to programs and contribution to outcomes

Mandatory 16–17

Actual performance in relation to deliverables and KPIs set out in PBS/PAES

Mandatory 16–17


Reference material


Where performance targets differ from the PBS/PAES details of both former and new targets, and reasons for the change

Mandatory 16

Narrative discussion and analysis of performance Mandatory 20–36

Trend information Mandatory 17, 31–36, 50

Significant changes in nature of principal functions/services Suggested 10

Performance of purchaser/provider arrangements If applicable, suggested

N/A

Factors, events or trends influencing agency performance Suggested 10, 16–17, 30–31

Contribution of risk management in achieving objectives Suggested 39

Performance against service charter customer service standards, complaints data and the agency’s response to complaints

If applicable, mandatory

17, 20, 32–36

Discussion and analysis of the department’s financial performance Mandatory 53–54

Discussion of any significant changes in financial results from the prior year, from budget or anticipated to have a significant impact on future operations

Mandatory 53

Agency resource statement and summary resource tables by outcomes Mandatory 126

Management and accountability/Corporate Governance

Agency heads are required to certify that their agency complies with the ‘Commonwealth Fraud Control Guidelines’

Mandatory 3

Statement of the main corporate governance practices in place Mandatory 38–44

Names of the senior executive and their responsibilities Suggested 13

Senior management committees and their roles Suggested 43–44

Corporate and operational planning and associated performance reporting and review

Suggested 42

Internal audit arrangements including approach adopted to identifying areas of significant financial or operational risk and arrangements to manage those risks

Suggested 39

Policy and practices on the establishment and maintenance of appropriate ethical standards

Suggested 40

How the nature and amount of remuneration for SES officers is determined

Suggested 48–49


Reference material


External Scrutiny

Significant developments in external scrutiny Mandatory 39

Judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner

Mandatory 35–36

Reports by the Auditor-General, a Parliamentary Committee or the Commonwealth Ombudsman or an agency capability review

Mandatory 39

Management of Human Resources

Assessment of effectiveness in managing and developing human resources to achieve agency objectives

Mandatory 46–49

Workforce planning, staff turnover and retention Suggested 46

Impact and features of enterprise or collective agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and Australian Workplace Agreements (AWAs)

Suggested 48–49

Training and development undertaken and its impact Suggested 50

Work health and safety performance Suggested 50-51

Productivity gains Suggested 49

Statistics on staffing Mandatory 47–48

Statistics on employees who identify as Indigenous Mandatory 46

Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs

Mandatory 48–49

Performance pay Mandatory 49

Assets management

Assessment of effectiveness of assets management If applicable, mandatory

53

Purchasing

Assessment of purchasing against core policies and principles Mandatory 53

Consultants

The annual report must include a summary statement detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST).

Mandatory 122


Reference material


Australian National Audit Office Access Clauses

Absence of provisions in contracts allowing access by the Auditor-General

Mandatory 122

Exempt contracts

Contracts exempt from the AusTender Mandatory 122

Small business

Procurement initiatives to support small business Mandatory 53


Financial Statements Mandatory 58–114

Other mandatory information

Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011)

Mandatory 50–51

Advertising and Market Research (Section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory 123

Ecologically sustainable development and environmental performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory 124–125

Compliance with the agency’s obligations under the Carer Recognition Act 2010

Mandatory 52

Grant programs Mandatory 127

Disability reporting – explicit and transparent reference to agency-level information available through other reporting mechanisms

Mandatory 52

Information Publication Scheme statement Mandatory 121

Correction of material errors in previous annual report Mandatory 127

Agency Resource Statement and Resources for Outcomes Mandatory 126

List of requirements Mandatory 132–135


Reference material

Index

Aaccounting services 11, 28

Account maintenance 21

Act of grace payments 36

Administrative Appeals Tribunal (AAT) 35, 119

Administrative Appeals Tribunal Act 1975 35

advertising and market research 123

Annual Awareness Training 50

Anti-Money Laundering and Counter Terrorism Financing Act 2006 40

appeals 32–37

ATO. See Australian Taxation Office (ATO)

Attorney-General 30, 36

Attorney-General’s Department 30

audit and assurance 38

Audit and Risk Committee 38, 39, 40, 43, 44

AusTender 122, 135

Australian Defence Force 126

Australian Government Information Management Office (AGIMO) 50

Australian Information Commissioner 122, 134

Australian Institute of Criminology 40

Australian Privacy Principles (APPs) 41, 121

Australian Taxation Office (ATO) 22, 25

Bbenefit payments 16, 17

Beyond Blue 50

Bridge, Richard 13

business continuity 50

business planning 42

CCanPrint 123

Capital 10, 21, 31, 54, 55, 130

Carer Recognition Act 2010 52

Carrigy-Ryan 10

casework 25

Centrelink 121

Charker, Dr Jill 13

Chief Executive Officer 4–5, 10–13, 38, 43, 48, 130

Chief Financial Officer 13, 43

Chief Information Officer 13, 43

CIC. See Customer Information Centre (CIC)

client satisfaction survey 21

co-contributions 26

Colmar Brunton 123

Comcare 51

Commissioner for Superannuation 2

committees 43–45

Commonwealth Disability Strategy. See National Disability Strategy 2010–2020

Commonwealth Procurement Rules 122

Commonwealth Superannuation Corporation (CSC) 3, 4, 12, 20, 38, 118

Commonwealth Superannuation Scheme (CSS) 27–29, 33–36, 116–118

Compensation for Detriment caused by Defective Administration (CDDA Scheme) 36

complaints 22, 32, 33, 35, 133

ComSuper Act 2011 3, 4, 11

ComSuper Executive Committee 43–45

Consolidated Revenue Fund 119

consultancy services 122, 134

Consumer Price Index (CPI) 26

contributions 11, 14, 16, 21, 26, 28, 31, 51, 116, 126, 130

contributors 117–118


Reference material

corporate governance 38, 133

Customer Information Centre 27, 130

DDefence. See Department of Defence

Defence Force Case Assessment Panel 121

Defence Force Retirement and Death Benefits scheme (DFRDB) 24–26, 27, 33, 116–117

Defence Forces Retirement Benefits Act 1948 (DFRB Act) 35, 120

Defence Forces Retirement Benefits scheme (DFRB) 27

Defence Management System Improvement/JP2080. See DefenceOne

DefenceOne 29

deferred 23, 118

Deloitte 38

Department of Defence 12

Department of Finance 12

Department of Veterans’ Affairs (DVA) 29

disaster recovery 42

dispute resolution 11

Eearly release of benefits 25

Electronic Document and Records Management System 39

Employee Assistance Program (EAP) 51

employees 11, 27, 40, 44, 46, 48, 49, 51, 52, 55, 116, 119, 121, 134

Employer Services Online (ESO) 27

Enterprise Agreement 48–49

Environment Protection and Biodiversity Conservation Act 1999 135

ePASS 21, 32, 130,

Ethics Contact Officer Network 40

Expenses 53, 126

external reviews 121

FFederal Budget 11

Federal Court of Australia 35

Finance. See Department of Finance

Finance Minister 12

financial framework 30

financial management 53–55

fraud control 40

freedom of information 50, 121

Gglossary 4

Governance of Australian Government Superannuation Schemes Act 2011 12, 118, 119, 120

Governance of Australian Government Superannuation Schemes Legislation Amendment Act 30

Hhardship. See early release of benefits

Health and Safety Committee 43

Health and Safety Representatives 52

IIncident Management Team (IMT) 42

individual flexibility arrangement (IFA) 49

Interdepartmental Working Group 29, 131

invalidity assessments 23

JJana, Vidoshi 13

Judiciary Act 1903 36

Kkey performance indicators 16


Reference material

LLane Bros Pty Ltd 123

Laurie 44

learning and development 50–51. See also Annual Awareness Training

Learning Management System 50

legislative change 5

Letter of transmittal 132

lump sum payments 20, 25

Mmarket research. See advertising and market research

members 10–16, 20–35, 39, 40, 55, 116–126, 130

member satisfaction survey. See client satisfaction survey

Member Services Online (MSO) 27

Mental Health Advisory Committee 50

merger 3, 4, 10, 11, 27, 30, 38, 42, 46, 54

military schemes. See also Defence Force Retirement and Death Benefits scheme (DFRDB); See also Military Superannuation and Benefits Scheme (MilitarySuper)

MilitarySuper. See Military Superannuation and Benefits Scheme (MilitarySuper)

Military Superannuation and Benefits Scheme (MilitarySuper) 27, 33

Minister for Defence 12

Minister for Defence Science and Personnel 12

Minister for Finance. See Finance Minister

NNational Disability Strategy 2010–2020 52

OOakton 38

On Base Advisory Service 29

online services 27–28

Other schemes administered 6, 118

outcome and program structure 4, 14

PPapua New Guinea (PNG) scheme 27, 117, 119–120

Papua New Guinea (Staffing Assistance) Act 1973 (PNG Act) 35,

payment summaries 21, 26, 27

pensioners 16, 117–118

Pensioner Services Online (PSO) 27

Pension indexation 26

pension payments 23

pensions 23–24, 117–120

performance pay 49

Peterswald, James 13

Portfolio Budget Statements (PBS) 14, 16

preserved 16, 23, 24, 25, 26

privacy 41, 50, 121–122

Privacy Act 1988 41, 121

procurement. See Commonwealth Procurement Guidelines

project management 5

Projects 5

Public Sector Superannuation accumulation plan (PSSap) 11

Public Sector Superannuation Scheme (PSS) 35, 116–118

Public Service Act 1999 3, 11, 46, 48, 132

Qquality assurance 39


Reference material

Rreconsideration 33–34

records management 39

recycling 124, 125

remuneration 48, 49, 133

Ssalary ranges 49

Salmat 123

Savage, Tracy 13

Sawade 13

Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme) 36

seminars 50

senior management committees. See ComSuper Executive Committee

service level agreements 20–21

service standards 17

staff training. See Annual Awareness Training; See learning and development

Superannuation Act 1922 (1922 Act) 118–119

Superannuation Act 1976 130

Superannuation Complaints Tribunal (SCT) 35

Superannuation Guarantee 30, 39

Superannuation Industry (Supervision) Act 1993 12

Superannuation (Resolution of Complaints) Act 1993 35

SuperStream Standard for Contributions 10, 31, 54

Ttaxation 23

training 50–52

UUnion Offset Printers 123

Vvehicles 124

Wwebsite. See online services

Work Health and Safety 50–53

Work Health and Safety Act 2011 46, 50, 135

Numerals1922 Act 35, 118, 119, 130. See Superannuation Act 1922 (1922 Act)

1922 scheme 27, 117–119