Department of Culture and the Arts Annual Report 2012 2013

Department of Culture and the ArtsAnnual Report 2012 - 2013

Government of Western AustraliaDepartment of Culture and the Arts

Image Credits

Front Cover (left to right)Harrison Elliott, Dance and the Child International Taiwan July 2012, STEPS Youth Dance Company. Photo by Lorna Sim.Mowanjum Festival Performance 2012. Photo by Matt Scurfield.Coral Brooch by Christel van der Laan. Photo by Robert Frith.Harlequin League album launch at the Rosemount Hotel. Photo by Karen Lowe.

Contents pageRevealed Marketplace 2013. Photo by Tim Acker.

Page 2Amy French, Kumpaya Girgirba and Miriam Atkins in front of Karlamilyi by Amy French and Lily Long, We don’t need a map: a Martu experience of the Western Desert. Photo by Bo Wong.

Page 4Luke Jerram, ‘Play Me, I’m Yours’, AWESOME Festival 2012. Photo by Jarrad Seng.

Page 6 When The Rain Stops Falling. Julia Moody, Scott Sheridan, Fiona Pepper, Alison van Reeken, Black Swan State Theatre Company. Photo by Gary Marsh.

Page 7Lauren Holmwood in Tracing HUman, Egg Nog Production. Photo by Emma Fishwick.

Page 8Shiver, regional tour, Mandurah. Photo by Ashley de Prazer.

Page 10State Records Office Field book, John Forrest, Avon District 1867, Cons3401 FORJ/03.

Page 11Decibel performing Amber Fresh, Pretty Things. Photo by Brad Serls.

Page 12Kaput by Tom Flanagan, AWESOME Festival 2012. Photo by Jarrad Seng.

Page 31Felt Orphanage, KickstART Market Day, Propel Youth Arts WA. Photo by Jarrad Seng.

Page 35Jo Pollitt and Paea Leach in Quiet Beast, Strut Dance. Photo by Ashley de Prazer.

Page 36Awkward Beauty exhibition ANU 2012 by Helen Britton, Justine McKnight and Michelle Taylor. Photo by Michelle Taylor.

Page 46Kiara Allan jumping through the hoop, Christmas Festival 2012, Southern Edge Arts. Photo by Peter Gerard.

Page 55 Margaret Medcalf. Photo by Marnie Richardson.

Contents

Statement of compliance 1Agency overview 2Profile of the Department 4Acting Director General’s foreword 6Senior Executive 7Operational structure 8Organisational chart 10Performance Management Framework 11Agency performance 12Strategic objective 1 13Strategic objective 2 14Strategic objective 3 23Strategic objective 4 27Organisational support 31Significant issues impacting the agency 35Disclosures and legal compliance 36Opinion of the Auditor General 43Key Performance Indicators 46Financial Statements 55

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Statement of ComplianceMinister responsible for the Department of Culture and the ArtsDear Minister

In accordance with Section 61 of the Financial Management Act 2006 I hereby submit, for your information and presentation to Parliament, the Annual Report of the Department of Culture and the Arts for the financial year ended 30 June 2013. This report has been prepared in accordance with the provisions of the Financial Management Act 2006 and all other legislation including:

• DisabilityServicesAct1993• ElectoralAct1907• EqualOpportunityAct1984• OccupationalSafetyandHealthAct1984• PublicSectorManagementAct1994• StateRecordsAct2000.

At the date of signing, I am not aware of any circumstances that would render the particulars included in the report misleading or inaccurate.

Alan FerrisActing Director General

11 September 2013

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Agency overview

Executive summary — highlights of 2012/2013 ■ Provided more than $24 million in funding to support the delivery of traditional

and emerging art forms across WA including over $17.2 million core recurrent funding to 44 non-government organisations and more than $6.9 million in grants assessed by peer and expert panels to 315 organisations, individuals and projects.

■ Continued a funding partnership with the Major Performing Arts Board of the Australia Council, to support four WA major performing arts companies — Black Swan State Theatre Company, West Australian Ballet Company, West Australian Symphony Orchestra and West Australian Opera.

■ Offered the Theatre Works Grants Program for WA’s small to medium theatre companies, independent theatre companies, independent theatre producers and individual theatre artists for the development and/or presentation of new local theatre works. Twenty-seven applications were received and a panel awarded $340,000 to two full productions and four development applications.

■ Partnered with the Australian Government’s Office for the Arts, Department of Aboriginal Affairs, Metropolitan Redevelopment Authority and Central Institute of Technology, to deliver Revealed: Emerging Aboriginal Artists from WA from 13 April to 4 May 2013. Fifty-eight Aboriginal artists from 21 art centres participated directly in the event, which attracted about 5,500 people.

■ The four-year pilot of the Artist-In-Residence (AIR) Grants Program concluded. Implemented in 2009, more than 7,000 students have participated in 21 funded projects undertaken in WA public schools. The Australia Council for the Arts has renewed the Memorandum of Understanding with DCA and Department of Education for the continuation of the program 2013-2015.

■ The Department of Culture and the Arts (DCA) released its Cultural Infrastucture Directions Policy in 2012. The policy provides direction for cultural infrastructure planning in Western Australia and will assist the State Government in its coordination and decision-making about what is essential to effectively deliver arts and culture in WA.

■ Negotiating a second Memorandum of Understanding (MOU) with the Disability Services Commission on initiatives of strategic value to both the arts and disability sectors. The MOU builds on four years of collaboration and works toward achieving a creative, inclusive and welcoming community, which offers opportunities for people of all abilities to have an active role in everyday arts and cultural activities.

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■ Launched the CircuitWest Pilot Touring Project with an allocation of $180,000. It aims to increase touring performances to regional WA. Daniele Micich’s Shiver produced by Performing Lines was the first tour.

■ Continued the Funding Process Review by implementing the Public Value Measurement Framework model developed in 2012. The framework is a world first approach to measure the extent of public value to both the public and the arts and culture sector. A pilot mobile phone app is planned for release in 2014. The Department has consulted with the WA arts sector, national and international experts, government agencies and academia.

■ Recognised with a “best practice” nomination by the Office of the Auditor General for the completion of the Department’s 2011/2012 annual financial statements. This was the first time the DCA had been acknowledged.

■ In 2012/2013, the State Records Office (SRO) produced a new General Disposal Authority for Government Records (GDA). Once approved by the State Records Commission, the GDA will be used by all State Government agencies for the legal disposal of corporate records created by government agencies.

■ Online Retention and Disposal Application (ORDA) is a secure web-based system for government agency staff and consultants to draft and submit disposal authorities to the SRO. The system was piloted in 2012/2013 for 20 government agencies and will now be implemented across the whole of government.

■ In May, the UNESCO Memory of the World Program acknowledged the inscription of the Convict Records of Western Australia 1838-1910 by the SRO. These records, which detail the forced emigration of over 9,000 convicts to WA, now sit alongside other works of international significance such as the Magna Carta and the diary of Anne Frank.

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Profile of the Department

Who we are and what we doThe Department of Culture and the Arts (DCA) is part of the Culture and the Arts Portfolio which also includes:

■ Art Gallery of Western Australia (a statutory authority)

■ Perth Theatre Trust (a statutory authority)

■ ScreenWest (an incorporated association)

■ State Library of Western Australia (a statutory authority)

■ Western Australian Museum (a statutory authority).

The State Records Office is a division of DCA.

The Department links the Portfolio to the Government’s policy framework and is the main contact point for the Minister for Culture and the Arts and central government agencies. The Department is headed by the Director General who is the employing authority of all Portfolio staff with the exception of the Chief Executive Officers of the statutory authorities. A recent machinery of Government change, to take effect from 1 July 2013, will devolve the Director General’s employing powers to the agency CEOs.

Our visionThe Western Australian community is enriched by unique and transforming culture and arts experiences.

Our valuesImagination: valuing the creative application of knowledge and the courage inherent in seeking innovative solutions.Respect: valuing and acknowledging the diversity and complexities of the communities we serve.Professionalism: taking a skilled, collaborative and knowledge-based approach to all our work.Integrity: acting ethically and responsibly in all our dealings and taking responsibility for our own behavior.

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Our strategyThe report on the agency’s performance reflects the strategic focus outlined in the Department’s 2010-2014 Strategic Plan.The StateRecordsAct2000 establishes the SRO’s specific role within government. A report on the SRO’s activities for the year, aligned to its own strategic objectives, is included in this report.

Portfolio demographicsThe following table summarises the Portfolio’s employee demographics.

Culture and Arts Portfolio headcount at 30 June 2013

Employment Type Women MenPermanent Full-time 199 160

Permanent Part-time 146 29

Fixed Term Full-time 60 42

Fixed Term Part-time 31 9

Casual paid 15 2

Other paid 15 6

Total 466 248

Demographics by Organisation

Department/Portfolio Organisation Women MenDepartment of Culture and the Arts 82 61Art Gallery of Western Australia 53 22Perth Theatre Trust 11 3ScreenWest 18 5State Library of Western Australia 148 59Western Australian Museum 154 98Total 466 248

Acting Director General’s foreword

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Acting Director General’s foreword

Since assuming the role of Acting Director General in May 2013, I have been meeting with staff and key external stakeholders regarding the role and services delivered by the Department of Culture and the Arts (DCA) and how these are perceived.

I am hearing that while the DCA has achieved much, it needs to refocus its role to retain its relevance with the many stakeholders.

At the same time, Machinery of Government change to devolve the Director General’s employing powers to the agency CEOs will take effect from 1 July 2013. A structural examination of the Department is also underway.

This is an exciting time for the Department as it redefines its role in the Culture and Arts portfolio, the culture and arts industry and Government as a whole, for the benefit of the West Australian community.

This report outlines progress against the DCA strategic plan 2010-2014. Key achievements this year include the development and release of Cultural Infrastructure Directions, which has the potential to influence planning in WA at both all levels of government. This year also saw key projects such as the Online Grants Management System, the Funding Process Review (including the Public Value Management Framework) progress. While these projects have their own objectives and outcomes, they share a commitment to improving the way we do business and for the benefit of the culture and arts industry and the community.

Partnerships continue to be important and are key to the way the DCA works within Government to contribute to broader Government outcomes. DCA has partnerships with State Government agencies including Lotterywest, Disability Services Commission, Department of Education; Department of Regional Development; as well as Local Government authorities and Federal Government agencies such as the Australia Council. DCA has been involved in numerous initiatives, such as Arts Edge and with the Disability Services Commission, which have had a significant impact on the opportunities for the creation and accessibility of arts experiences.

These partnerships reflect the value of culture and arts being integrated into all aspects of our community.

DCA provided more than $24 million during 2012/13 to arts organisations, individuals and specific projects to support traditional and emerging art forms.

During the year, the Department farewelled former Director General Allanah Lucas and Deputy Director General Jacqui Allen, both of whom made a valuable contribution to the DCA, the public sector and culture and arts. I thank all DCA staff and the portfolio agency CEOs and boards for their commitment and leadership of their respective organisations.

Finally, my thanks to the Minister for Culture and the Arts, the Hon John Day MLA for his continued support of, and strong belief in culture and arts in Western Australia.

As we head into the new financial year, I am confident that the Department will be able to meet the new challenges before us.

Alan Ferris

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Senior Executive


Alan Ferris is the Acting Director General, Department of Culture and the Arts (DCA). His substantive position is General Manager, Perth Theatre Trust, a position he has held since 2008.

Prior to this he was Chief Financial Officer DCA, a role which also had responsibility for the Art Gallery of WA, Perth Theatre Trust, ScreenWest, State Library of WA, State Records Office and the WA Museum.

Alan has been a Trustee of the Swan Bells Foundation and recently retired as the Mayor of East Fremantle, a position he held for six years. He is a board member of the Palmerston Association and a member of the Leadership WA Finance Committee. As Acting Director General he is a board member of the Art Gallery of WA, Perth Theatre Trust, ScreenWest, State Library of WA and WA Museum. Alan is a CPA with a Bachelor of Commerce.

David AnsellActing Deputy Director General, Development and Strategy Directorate

David Ansell has been Acting Deputy Director General since November 2012. David’s background has been in education as a teacher and principal in Western Australian public schools. His recent positions have included the General Manager of the Smith Family in Western Australia, the Director of Participation and Executive Director for the Office for Early Childhood Development and Learning within the Department of Education. David recently undertook a 12-month secondment to the Department of the Premier and Cabinet. David’s qualifications include a Masters of Public Administration and Masters of Education.

Eric IsailovicExecutive Director, General Operations

Eric Isailovic was appointed Executive Director in April 2008, having worked for more than 25 years in senior corporate and operational management roles in government at both the State and Federal levels. His past sector experience has included the public transport and law enforcement domains. Eric also worked for five years as a successful small business operator in the food manufacture and retail sector.

Cathrin CassarchisState Archivist and Executive Director State Records, State Records Office of WA

Cathrin Cassarchis was appointed to her position in March 2008. Her background in the archive sector includes roles as Head of Public Affairs for The National Archives in the United Kingdom, and as funding consultant to the National Council on Archives (UK). Before her current appointment, Cathrin was Director of the WA Museum Foundation where she was responsible for fundraising, strategy and policy development, and the negotiation, facilitation and achievement of corporate targets and objectives. Cathrin is a member of the Geographic Names Committee.

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Operational structure

The Department of the Arts was established under the Public Service Act 1978 on July 1, 1986 subsequent to the repeal of the Western Australian Arts Council Act 1973. On May 20, 1997 the name was changed to the Ministry of Culture and the Arts under the Public Sector Management Act 1994. On July 1, 2001 the name was re-designated to Department of Culture and the Arts under Section 35 of the Public Sector Management Act 1994 as a result of the Machinery of Government Review.

The Department operates under the provisions of the Public Sector Management Act 1994. In the performance of its functions, the Department complies with all relevant written laws.

The Department links the Culture and the Arts Portfolio to the Government’s framework and also provides subsidy and some administrative support to The Bell Tower, which is managed by the Swan Bells Foundation Inc. The Portfolio organisations and the Swan Bells Foundation Inc are required to produce separate annual reports.

The Minister for Culture and the Arts administers the following Acts relating to the statutory authorities within the Portfolio:

■ Art Gallery Act 1959

■ Library Board of Western Australia Act 1951

■ Museum Act 1969

■ Perth Theatre Trust Act 1979.

The Department is led by the Director General and supported by the functions of the following areas:

Office of the Director General

The Office of the Director General comprises Corporate Affairs, Audit and Review, Ministerial Liaison and Government Relations. These areas provide support to the Director General and take primary responsibility for liaison with the Minister for Culture and the Arts and on cross-government matters. This section is led by the Director General.

Development and Strategy Directorate

The Development and Strategy Directorate works with a range of stakeholders to coordinate arts and cultural policy development, provide funding and support to Arts organisations, implement State and national strategic arts and cultural programs and conduct specialised research. It provides a link between the State Government, the arts and cultural sector, and the community.

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General Operations Directorate

The General Operations Directorate provides strategic human resource management, financial, information technology and infrastructure planning and support services for the Department and Portfolio agencies. This is achieved through economies of scale and skill and is underpinned by standardising business processes and consolidating technology and professional expertise.

State Records Office

The State Records Office (SRO) is responsible for the administration of the State Records Act. It supports the State Records Commission in the development of a regulatory framework for the implementation of this Act, as well as providing consultancy, advice and training to State and local government organisations on compliance. The SRO also provides public access to unrestricted archives in the State archives collection.

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Performance Management Framework

The Portfolio achieves its Government Desired Outcomes through the delivery of seven key services. While the Portfolio contributes to all of the Government’s Outcomes Based Service Delivery goals, its primary contribution is to the Government goal: Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians.

The figure below illustrates the relationship between the Portfolio’s Desired Outcomes and the most relevant Government goal.

Government Goal Desired Outcome Services Service Provider

Greater focus on achieving results in key service areas for the benefit of all Western Australians

Outcome 1:

A creative, sustainable and accessible culture and arts sector

1. Arts Industry Support2. Screen Production3. Venue Management Services

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Outcome 2:

Western Australia’s natural, cultural and documentary collections are preserved, accessible and sustainable

1. Art Gallery Services2. Library and Information

Services3. Museum Services4. Government Recordkeeping

and Archival Services

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The Portfolio’s services are delivered by the Department (including the State Records Office) and the five Portfolio organisations. Responsibilities for the provision of services are as follows.

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Agency performance

Department of Culture and the ArtsThe strategic plan for 2010-2014, CreatingandDeliveringGovernmentPolicyforCultureandtheArtshasfourstrategicobjectives:

1. the effective management of knowledge systems;2. the delivery of public value for arts and culture investments;3. a clearer articulation of the way the Department engages with a wide range of

stakeholders to achieve its goals; and4. a broadening of its approach to infrastructure provision to take advantage of the

opportunities for increased public access offered by new technologies.

The strategic plan supports the outcomes that the Department delivers for the State Government, namely:

■ a creative, sustainable and accessible culture and arts sector; and

■ WA’s natural, cultural and documentary collections are managed, conserved and accessible.

There have been no changes to the key performance indicators.

The SRO has its own strategic plan which reflects its whole-of-government functions under the StateRecordsAct2000.

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Strategic objective 1: The Department is an organisation where the effective management of knowledge is essential to our businessAn audit of the Department’s Knowledge Management initiative was conducted by Quantum Assurance in March 2013. This audit report noted that the Department was one of “…the few government agencies in Western Australia with a defined knowledge management strategy that has progressed beyond the planning stage”.

The audit report assessed the Department’s progress against the Knowledge Management Maturity Model (AS5037-2005KnowledgeManagement–AGuide,2005) and confirmed that it was moving from the ‘Connected’ stage to the ‘Networked’ stage. The objective is to reach the ‘Adaptive’ stage.

Funding Process Review

The Department initiated a funding process review in 2010, focusing on how to respond to changes in the culture and the arts sector and community through its funding activities. Stage one of this review recommended the development of the Online Grants Management System. This system is being developed.

Stage two of the review was the development of a Public Value Measurement Framework to measure the public value created through the Department’s delivery of policy, research, funding, services and support. The theoretical model was delivered in 2012/2013 and implementation of the framework has continued to be developed in consultation with the arts sector. The Department plans to release a pilot system in 2014.

Project Management Framework

The Department has continued to develop its Project Management Framework to ensure it meets business needs. A review of the Framework has led to the adoption of simpler workflows and a greater emphasis on integrating risk management strategies.

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Strategic objective 2: Department activities are aligned within a public value frameworkThe Department continues to operate with the policy framework, CreatingValue:AnArtsandCultureSectorPolicyFramework2010-2014. The policy guides DCA’s vision by providing principles, outcomes and strategies to deliver value to the community.

Launched in March 2010, the policy framework outlines the Department’s principles, outcomes and strategies to deliver value to the community.

Public Value Measurement Framework

During the year, the Department received the Public Value Measurement Framework (PVMF) model commissioned from Perth-based Pracsys and John Knell, of the Intelligence Agency (UK). The measurement system provides a representation of the public value delivered through investment in the arts and culture sector.

The consultants were further engaged to develop and test implementation of the framework model in early 2013. The Department has been testing the standardised aspects of the artistic quality and reach with six of its key funded organisations and members of the public through various data collection methodologies. There has been collaboration with Arts Council England and the Australia Council. A pilot public value system is planned for release in 2014.

Development of the PVMF has identified key strategic alignments required for the preparation of the Creating Value policy framework in 2014/2015.

Peer and expert panels

During 2012/2013, funding of $6,891,008 was provided to 315 organisations, individuals and projects.

Distribution was as follows:

■ Creative Development Fellowships - $120,000 across two recipients

■ Dance - $169,690 across seven recipients

■ Multi arts - $129,411 across three recipients

■ Music - $118,435 across six recipients

■ Theatre - $455,329 across 18 recipients

■ Visual arts - $288,272 across 16 recipients

■ Visual Arts and Crafts Mid-Career Fellowships - $100,000 across four recipients

■ Writing - $254,102 across 12 recipients

■ Young People and the Arts, including Quick Response, Youth Fellowships and Scholarships - $346,132 across 33 recipients

■ Indigenous Arts Panel - $263,805 across 20 recipients

■ Contemporary Music, including Quick Response - $363,457 across 45 recipients

■ Designer Fashion, including Fashion Flight - $258,481 across 29 recipients

■ Artflight - $182,161 across 77 recipients

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■ Community Collections funding - $123,184 to six recipients

■ Other organisation funding - $1,030,931 to six recipients

■ Theatre Works Grants Program - $349,773 to six recipients

■ Partnership Initiatives- $2,249,970 to 25 recipients

■ Philanthropy Initiative- $87,875 to two recipients.

Recurrent funded organisations and activities

The LotteriesCommissionAct1990 provides that five per cent of net subscriptions go to the Arts Lotteries Account.

During the 2012/2013 year $17,261,717 was provided to 44 organisations for the operational and artistic costs of delivering an agreed level of service. This figure included an annual budget adjustment of 2.5 per cent. Of this funding $6,857,876 (39.7 per cent) was provided to the major performing arts companies:

Major Performing Arts Company Funding GrantedWest Australian Opera $1,818,791West Australian Symphony Orchestra $2,041,960Black Swan State Theatre Company $1,358,641West Australian Ballet $1,638,483Total $6,857,875

■ The WA Opera was funded $100,000 for the production and presentation of Otello in collaboration with Cape Town Opera, NBR New Zealand Opera and other Australian State opera companies, while a $150,000 capital grant was provided to fit out the Opera’s premises at His Majesty's Theatre.

■ DCA funded the development of a theatric/operatic co-production between the WA Opera and Barking Gecko Theatre Company of The Rabbits by Shaun Tan and John Marsden. The collaboration included OzOpera, the touring arm of Opera Australia, and the Perth International Arts Festival.

■ The WA Symphony Orchestra received $99,849 under the Orchestra Review Funding designed to improve artistic standards and maintain orchestra sizes. An additional $165,000 was allocated to offset rehearsal costs at the Perth Concert Hall and $40,000 was provided to the City of Perth to support Symphony in the City.

■ The Department provided $220,000 to the Black Swan State Theatre Company (BSSTC), matching the Australia Council’s funding, to increase its season by two productions. BSSTC was awarded $25,507 for regional touring in 2013 to tour Shrine to Albany. In addition, the Department provided $42,000 to the ACT Minister and Cabinet Directorate to fund a presentation of Shrine in the Centenary of Canberra's 2013 national theatre season.

■ The WA Ballet received $262,000 for its 2013 regional touring programs and orchestral support of $339,424 for the hire of the West Australian Philharmonic to perform the Nutcracker as part of the 2012 season. The Ballet continued to receive $1.2 million funding to support its repertoire led strategy which has attracted an extra $320,000 per annum over the next four years from the Australia Council.

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Funding highlights by artform

Contemporary music

Core funding of $334,225 was provided to the WA Music Industry Association Inc. for peak body services to the sector while DCA’s Contemporary Music Grants Program continued to assist musicians and music businesses to access commercial markets for their products, to develop skills and infrastructure, and build new audiences for WA music.

This year the program supported 45 projects to a total of $363,457. Highlights included:

■ CICADA International received $20,000 to assist in the development of the inaugural professional music development camp for Indigenous contemporary musicians and managers in Broome.

■ Pond received $10,000 to travel to Austin, Texas to perform at South by Southwest, followed by a tour of the US and Canada.

■ San Cisco received $10,000 to showcase at the CMJ Music Marathon in New York.

Multi-year contracts for Perth Jazz Society and Jazz WA ended in December 2012 and both organisations were invited to consider applying for annual program or project funding.

Designer fashion

The Department continued to support the WA designer fashion sector through the Designer Fashion Grants Program, which distributed $258,481 to 29 projects in 2012/2013. The Department also provided $250,000 to the annual Perth Fashion Festival to support events to promote local fashion designers.

Highlights included:

■ Funding for four WA designers to showcase and market their spring/summer collections during the L’Oreal Melbourne Fashion Festival in March 2013.

■ Support for WA designers to undertake international market and product development in the United Kingdom (London), France (Paris), USA (New York), China, Hong Kong, Singapore, Indonesia and India.

Performing Arts

Core funding was provided to six performing arts companies:

Ausdance WA $176,742Performing Arts Centre Society (The Blue Room) $239,460Perth Theatre Company $478,012Stages $78,443STRUT Dance $130,073Tura New Music $246,464Total $1,349,194

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The Department provided $743,454 funding to 31 performing arts (including music, theatre and dance) organisations and individuals through the Arts Development Grants Program.

In addition, the Department supported 18 individuals to attend the Australian Theatre Forum in May 2013 and 11 individuals to attend the National Dance Forum in March 2013.


■ The reallocation of funding to support WA theatre works with a total of $340,000 being made available. The Theatre Works Grants Program opened in March 2013 and 27 applications were received. Two applications in the development and production category were funded including Danielle Micich for a work titled, Overexposed, and The Duckhouse Inc for a new work titled, FallingThroughClouds, to be created by an ensemble of creatives from The Duckhouse and Weeping Spoon Productions. In the development category four applicants received support; Barking Gecko Theatre Company, Perth Theatre Company, Renegade Productions and The Skeletal System.

■ The Department renegotiated a further three-year partnership agreement with the Australia Council for the Arts, Theatre and Dance Boards to support Performing Lines WA through the Managing and Producing Services initiative. Funding for this initiative is $120,000 from the Department and $50,000 from the Australia Council for the Arts per annum. Current artists include James Berlyn, Sally Richardson, Sue Peacock, Danielle Micich and Sensorium Theatre.

■ In addition to core funding, Ausdance WA received $90,000 for the Regional Dance Manager position, professional development of regional practitioners and further development of the 'Move-me’ brand, website and marketing campaign 2013 – 2015.

■ In addition to core funding, STRUT received $60,000 for a program offering a minimum of four dance 'seed' residencies in 2013. The company also received $15,000 for a business modeling consultancy to assist the company reposition as a contemporary choreographic centre.

■ Wolfe Bowart (Spoon Tree Productions) was awarded a $60,000 Creative Development Fellowship for a collaboration with a team of theatre professionals to create a large scale ensemble theatre work for presentation at local and international festivals.

■ In addition to receiving $35,000 for its annual program of activities in 2013, PlayWriting Australia received $40,000 to host the Australian National Play Festival in Perth in February 2013. Playwrights, directors and actors from across Australia participated in the four-day festival that included readings, forums and the presentation of the best new plays in the country.

■ Australian Dance Theatre received $25,000 for an education and outreach program for its WA tour of G by Garry Stewart. G was presented by Perth Theatre Trust and Australian Dance Theatre at the State Theatre Centre of WA.

■ The Australian Script Centre received $10,000 and Theatre Kimberley Inc. received $49,000 for its annual program of activities.

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Visual Arts and Craft

Core funding was provided to four visual arts organisations to the value of $1,342,686.

Art On The Move $446,598Artsource $413,178FORM $281,904International Art Space Kellerberrin $201,006Total $ 1,342,686

Through the Arts Development Grants Program, 16 additional organisations and individuals received funding totalling $288,272 for various activities including annual programs, development of new work and presentation opportunities.


■ Kate McMillan was awarded a Creative Development Fellowship of $60,000 for a major inter-linking film installation for the Museum of Old and New Art (MONA) in Tasmania and production of a full monograph of 20 years of the artist’s work.

■ The DCA provided Visual Arts and Craft Mid-Career Fellowship grants of $25,000 to Tom Muller, Brendan Van Hek, Ian Strang and Pilar Mata Dupont.

■ The DCA provided $15,000 to the Australia Council for the Arts to support Gemma Weston, as an emerging curator to attend and participate in the Venice Biennale. Tim Carter was supported as the WA venue attendant team leader.

■ The DCA provided $40,000 for international residencies to WA artists through Asialink.

Writing

In 2012/2013 the Department provided $684,216 in funding for writing. This included core funding of $430,114 to three WA writing organisations:

Fremantle Arts Centre Press $298,758Australian Writers' Guild $15,443Writing WA $115,913Total $430,114

In addition, the Arts Development Grants Program provided $254,102 to 12 organisations and individuals to support publishing, development of new work and sector development opportunities.

Westerly Centre (The University of Western Australia) received $36,500, the Fellowship of Australian Writers WA received $31,085 and the Katharine Susannah Prichard Foundation Inc received $30,790 for an annual program of activities.

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Indigenous Arts

The Department provided core funding to four Indigenous organisations to the value of $711,245:

Magabala Books $240,872 Yirra Yaakin Theatre Company $312,240 Goolarri Media Enterprise $79,128Kimberley Aboriginal Law and Culture Centre $79,005 Total $711,245

Throughout the year, the Indigenous Arts Grants Program provided $263,805 to 20 organisations and individuals.

The program supported 20 applications for arts and cultural activities including art form skills development, cultural maintenance and interstate and international touring to organisations, small groups and individuals. Half of this investment was made in either regional or remote areas and 50 per cent of applications lodged were approved.

The Australian Performing Arts Market (APAM)In 2012, APAM had the highest number of Indigenous performances showcased since its inception including three from WA; these being: Dalisa Pigram’s new solo work GudirrGudirr produced by Marrugeku, David Milroy’s WaltzingtheWilarra produced by Yirra Yaakin Theatre Company and BinjarebPinjarra by the Pinjarra Project.

Indigenous Arts and Culture Action Plan 2012-14 Following the 2012 launch of theIndigenousArtsandCultureActionPlan, the Department continued in 2012/2013 to partner with government and non-government agencies to support the development of Indigenous arts and culture.

Indigenous Contemporary Music DCA provided $30,000 to fund an Indigenous contemporary music development program for remote media organisations at the 14th National Remote Indigenous Media Festival in October 2012.

Indigenous Writing Sector Development The Department supported six WA Indigenous writers’ participation in the inaugural program for the First Nations Australia Writers Network to the amount of $12,000. Support for this new national organisation will assist in the strategic development of the national Indigenous writing sector.

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Young People and the Arts

The Department provided funding to encourage young people to participate in and explore a broad range of arts and cultural activities. Core funding was provided to 13 performing arts companies with a youth focus, including:

Buzz Dance Theatre $301,761STEPS Youth Dance Company $111,861Awesome Arts Australia $201,885Propel Youth Arts $128,434Southern Edge Arts $75,877WA Youth Orchestra $183,851Musica Viva $30,641WA Youth Jazz Orchestra $54,197Barking Gecko Theatre Company $433,889Spare Parts Puppet Theatre $404,963WA Youth Theatre Company $81,542Children's Book Council $32,518The Literature Centre $42,899Total $2,084,318

DCA’s Young People and the Arts Grants Program supports arts activities by, with and for young people aged 26 years and under. During the year DCA provided funding totalling $346,132 in support of 33 activities, through the development, distribution and marketing, fellowship and international scholarship categories and supported 14 applications through its Quick Response Program (totalling $36,294).

The $30,000 annual Young People and the Arts International Scholarship was awarded to Rebecca Erin Smith to undertake a two-year Masters of Music degree majoring in Music Composition at the Manhattan School of Music, New York. Young People and the Arts Fellowships, worth $15,000 each, were awarded to Sofie Burgoyne to undertake study, research and creative development in dance in Israel, New York, Frankfurt, Vienna; and Kynan Tan to complete skills development and research programs in multi-platform digital work in Victoria and Japan.

Disability and the Arts

Core funding was provided to DADAA as the State’s peak organisation in the area of disability and the arts.

DADAA $119,730

The Department continued to assist artists with disability to develop new artwork; participate in exhibitions; and undertake professional development opportunities at conferences. Funding provided to DADAA ($40,000) enabled 20 regional artists and arts workers to attend the 4th International Arts and Health Conference in Fremantle in November 2012. The Department profiled many of the artists and groups in its HealthyArts publication, which was launched at the conference.

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Eleven contemporary artists with disability worked with mentors to create a new body of art work for an exhibition at the Lawrence Wilson Art Gallery at The University of Western Australia. The artists used a diverse range of mediums including painting, sculpture, printmaking, film and the digital media and worked with DADAA’s emerging curator, Sarah Sandler. DCA funded an emerging curator ($10,326) to travel to New York for professional development at the Museum of Modern Art.

The Department provided $12,000 towards the 2013 annual program of activities by Art Partners. Art Partners delivers a mentorship program that matches people with disability with mentors and together they participate in mainstream art classes and activities in Bunbury.

The Department’s disability and arts strategies continued to be delivered in collaboration with the Disability Services Commission to ensure that funding is complementary and far reaching.

Regional and Community Arts

The Department provided core funding to three regional and community membership and service organisations to the total value of $825,735.

Community Arts Network WA Inc $172,697 Country Arts (WA) Inc $474,580 Kulcha Multicultural Arts of WA Inc $178,458 Total $825,735

The Department provided $150,000 to Artrage for selected artists from the Fringe World Festival to perform in Albany, Esperance and Geraldton.

The Department supported Joel McGuiness, Manager, Bunbury Regional Entertainment Centre ($4,652) to attend the 2013 Australian Performing Arts Centre Association study tour to the USA.

Contemporary interdisciplinary and multi arts

The Department further implemented its plan to support new forms of creative work by funding interdisciplinary arts programs. Core funding was provided to:

Artrage $330,981Fremantle Arts Centre $679,635PICA $680,003Total $1,690,619

Projects included:

■ The Department entered the third year of a three-year agreement with PVI Collective ($65,000 per annum) to run CIA Studios, Newcastle Street, West Perth, providing artists with the opportunity to share skills, engage in critical peer support and experiment with new artistic practice.

■ PVI Collective received $60,000 for its annual program of activities.

■ The Department provided the Perth International Arts Festival with $60,000 to employ a digital producer to develop a strand of work to survey existing collections and use new technologies to create digital applications and web-based services.

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Devolved FundingThe Department also contracts a number of non-government organisations to manage the allocation and distribution of funding on its behalf. The objectives are to ensure the optimal use of funding to deliver the best arts development outcomes through the most applicable organisational structure.

Community Arts Network WACommunity Arts Network manages the Catalyst Community Arts Fund which supports projects that express local culture and identity and promote the values of community empowerment, social inclusion, respect for diversity and self-determination. A total of $266,821 was allocated to this program.

The Creative Networks Fund is designed to support local regional government authorities to develop their capacity to use art and culture to improve the lives of their citizens. The grants provide skills development, mentoring and networking with intensive training. A total of $90,962 was allocated to this program.

CANWA Devolved Funds – Catalyst $266,821CANWA Devolved Funds – Creative $90,962Total $357,783

Country Arts WACountry Arts WA provides annual funding to regional arts councils and organisations to coordinate diverse arts and cultural activities. In addition, it delivers the Shows on the Go program that subsidises professional performing arts to regional and remote WA as well as SandTracks, a remote Indigenous contemporary music touring initiative.

Country Arts devolved Category "A" Arts $195,305Country Arts devolved Arts Councils $130,000 Country Arts devolved Performing Arts Touring $440,000 Country Arts Contemporary Music Touring $25,000 Total $790,305

Literature Touring Program WritingWA received $17,000 funding for its regional program. WritingWA’s programs enable increased engagement with WA writers and provide support to emerging writers in regional WA.

In 2012, 8,799 people attended and or participated in literary events and 52 WA authors/illustrators engaged in the delivery of these programs.

An additional $10,400 was devolved to the Children’s Book Council, which celebrates Australian children’s literature and its creators, and seeks to engage the community with literature for young Australians.

Collections sectorCommunity CollectionsThe Department provided core funding of $82,782 to Museums Australia (WA) and $44,705 to the Royal Western Australian Historical Society.

DCA’s Community Collections funding program Connect provided $123,184 to support artist residencies, professional development and innovative public programs to better engage diverse communities with collections.

Goldfields CollectionsCare HubThe Department continued to partner with the City of Kalgoorlie-Boulder to support the Goldfields CollectionsCare Hub and DCA provided $20,000 to the Hub for 2012/13.

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Strategic objective 3: The Department’s role in delivering culture and arts policy will be strengthened by clear relationships with all stakeholdersThe Department exists within a complex system of relationships that impact on its role as government’s agency for arts and culture policy development. The Department does not provide direct services and depends on a large number of non-government organisations and individual artists, to deliver arts and culture. By clarifying and strengthening relationships with stakeholders, the Department will be maintaining its leadership in State arts and culture policy and funding.

Strengthening networks and knowledge-sharing activities

CircuitWestThe Department supports CircuitWest (the Association of Regional Performing Arts Centres) through a partnership and funded the second WA Regional Technicians Symposium, hosted by the Bunbury Regional Entertainment Centre, in February 2013. The symposium offered professional development workshops and networking opportunities for regional venue technicians.

Developing partnerships to broaden culture and arts experiences

Capital works projects undertaken in the culture and arts portfolio are planned and delivered in partnership with other State Government agencies. This is primarily the Department of Finance’s Building Management and Works (BMW) team and the Department of Treasury’s Strategic Projects (SP) team.

The key projects partnership projects undertaken in 2012/13 were the New Museum for WA business case and project definition plan (through SP) and the portfolio maintenance program, delivered through BMW and their contracted service arranger.

BMW also assisted the Department with the engagement of consultants for the New Venue for Music feasibility study. This project was a partnership between the DCA, the City of Perth and the WA Symphony Orchestra.

Funding for culture and arts portfolio capital projects and maintenance is allocated to the Department, with the Director General being the senior responsible officer for these projects. The governance of these projects is established by the Department through agreement with stakeholders.

The business case for the New Museum for WA was endorsed by Government and a commitment to fund the project was made in the 2012/13 State Budget. This commitment has enabled the project to move to the Project Definition Planning phase in 2012/13, which provided detailed information on the project scope, cost, procurement options and construction program. The project team also commenced planning for the upgrade of the Collections and Research Centre in Welshpool.

Partnership with the Department of Regional Development and Lands (DRDL)The Department’s seven-year partnership with the DRDL continued to deliver performances by the major performing arts companies in regional communities. The funding partnership provides a subsidy to the WA Ballet, WA Opera, WA Symphony Orchestra and Black Swan State Theatre Company (BSSTC) to ensure people in WA’s nine regional areas were able to view performances. Funding of $262,000 was awarded for a tour of RomeoandJuliet and community workshops by the WA Ballet and $25,507 was awarded to BSSTC for a tour of Shrine.

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Partnership with Disability Services CommissionThe Department signed a second Memorandum of Understanding (MOU) with the Disability Services Commission to deliver strategic arts and disability initiatives for the next three years. The new MOU builds on four years of collaboration and is aimed at achieving a creative, inclusive and welcoming WA.

Partnership initiatives included supporting individual artists and groups to present papers at the 4th International Arts and Health Conference in Fremantle in November 2012 and attend pre-conference arts development workshops.

Young people and the Arts The Department continued to support the interests of young people in the arts. A submission was made on the draft AustralianCurriculum:TheArts(K-10), in consultation with the Department of Education. The Department contracted independent consultants to conduct a ‘map and gap’ analysis to identify entrepreneurial, development and financial support opportunities for young artists and arts workers wanting to expand the business side of their practice. This report will inform future actions to develop young artists’ and arts workers’ knowledge in this area.

A partnership with Country Arts WA enabled eight young people to visit Perth in July for professional development and consultation with Department staff about the skills development needs of young regional artists.

Indigenous arts The Department continued to provide support for domestic repatriation of Indigenous cultural remains and secret sacred objects through an agreement with the Australian Government. The Department also continued working with the Office for the Arts to facilitate the development of art centres across WA.

Arts in education ArtsEdge is a strategic arts in education partnership between the DCA and the Department of Education.

Highlights in 2012/2013 included:

■ The completion of the final year of the four-year Australian Government pilot, the Artist-In-Residence (AIR) Initiative in October, with six successful projects funded.

■ The second AIR case study resource, SomethingintheAIR, was published in October 2012. It showcased the projects and arts education outcomes of seven projects funded in the 2011 funding year.

■ The DCA, in partnership with the Department of Education and the Australia Council, hosted the fourth National Network of AIR officers meeting in October 2012.

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Public Art The State Government’s Percent for Art Scheme encourages allocation of up to one per cent of the estimated total construction cost of each State capital works project, valued at $2 million and over, to a commissioned WA artwork.

The partnership is between the DCA, and the Department of Finance’s Building Management and Works. A feature of this year’s scheme was the number of developments engaging regional artists. Another highlight was the completion of the majority of the 10 art commissions for the Fiona Stanley Hospital, making it one of the largest undertakings of the scheme.

The 2012/13 financial year saw the completion of 18 public art projects and 56 new projects commissioned with a total art budget of $5,261,404.

Offshore and international activities The Department continued to operate under the terms of the 2006-2010 Service Delivery Arrangement (SDA) with the Australian Government’s Department of Regional Development, Local Government, Arts and Sport while a new SDA was being finalised. The SDA aims to provide the communities of Christmas Island and Cocos (Keeling) Islands with services commensurate to those delivered to similarly remote WA communities. The SDA budget for the reporting period was $140,000 and covered activities by the Department, Country Arts WA, Community Arts Network WA, Art On The Move and the Western Australian Museum.

The 2012 year marked the 25th anniversary of sister-state relations between WA and Zhejiang Province in China. The Department provided advice to the Department of State Development on the cultural elements of the celebrations.

In line with the State Government’s desire to strengthen relations with Singapore, the Department continued to facilitate WA-Singapore cultural exchange. The Department supported a three-year children’s literature partnership between WritingWA and the National Book Development Council of Singapore ($40,000). Discussion on collaborations in contemporary music and contemporary dance were progressed during the year.

In addition, DCA provided funding of $6,750 to assist three WA writers per year from 2013 to 2015 to attend the Ubud Writers and Readers Festival in Bali.

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Partnerships across Government The Department maintains a range of partnerships across the State and the Australian Government to deliver services that effectively and efficiently coordinate government resources. It also provides comment on the policy and strategy initiatives of other Government departments that may impact on the culture and arts sector. In 2012/2013 the Department had formal Memoranda of Understanding with each of the following State and Australian Government departments and agencies:

■ Australia Council for the Arts

■ Department of Regional Development and Lands

■ Disability Services Commission

■ Department of Treasury

■ Department of Finance (Building Management and Works)

■ Department of Education

■ Department of Indigenous Affairs

■ Department of Regional Australia, Local Government, Arts and Sport, and Office for the Arts

■ Office of Crime Prevention

■ Department of Foreign Affairs and Trade

■ Central Institute of Technology

■ Metropolitan Redevelopment Authority.

In addition to Memoranda of Understanding, the Department worked with the following State Government agencies:

■ Public Sector Commission

■ Department of Commerce

■ Department of Treasury

■ Equal Opportunity Commission

■ Department of State Development

■ Insurance Commission of Western Australia.

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Strategic objective 4: The Department will establish culture and the arts infrastructure policy with a focus on the potential of new technologiesCultural infrastructure is an essential component to the effective delivery of culture and arts experiences to the WA community. Through its policy development role, the Department aims to make cultural infrastructure a key component in culture and arts planning throughout the community. New technology will be vital to achieving the desired reach of services to the WA community, and thereby delivering WA stories and experiences to the world.

Cultural Infrastructure Directions 2012-2014 The release of CulturalInfrastructureDirections in September 2012 signalled a commitment by the Department to greater involvement in the planning of cultural infrastructure across WA. This document highlights the need for communities to understand their needs, strengths and histories, and to be actively involved in the planning of social infrastructure, including cultural infrastructure.

CulturalInfrastructureDirections provides guidelines to stakeholders on the issues or considerations that need to be addressed. The focus is on understanding and agreeing on service needs and then assessing the available infrastructure solutions, which include people, buildings and technology.

Capital works funding The State Government committed $5 million to the Broome Shire Council for the reconfiguration and refurbishment of the Broome Civic Centre. The refurbished venue was opened in October 2012.

The State Records OfficeThe State Records Office (SRO) is responsible for ensuring that the history of decision-making by State Governments, and the delivery of government policy and services to the community, is documented, preserved and made available to current and future generations. The State’s archives document the history of WA from Colonial settlement to the present day and are of value to a wide range of users including academics, historians, government/corporate stakeholders, and individual citizens; all of whom require access to reliable sources of information.

The SRO has a whole-of-government role to advise and assist with the legal creation, management and disposal of government information. This role is established under the StateRecordsAct 2000. The SRO has its own strategic plan, with outcomes measured against its performance in the following areas:

■ regulatory functions;

■ intellectual and physical control of State archives;

■ preservation of the State archives collection; and

■ access and outreach.

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The following information details the SRO’s achievements in fulfilling these roles throughout 2012/2013.

Regulatory Role

Recordkeeping StandardsUnder section 61 of the StateRecordsAct2000 (the Act) the State Records Commission (the Commission) is required to establish principles and standards governing recordkeeping by all State and local government agencies.

The Act requires all government organisations to:

■ have an approved recordkeeping plan;

■ review the plan at least every five years; and

■ submit a report on the review to the Commission.

In 2012/13, the SRO evaluated and processed the recordkeeping plans of 75 government organisations and the records retention and disposal schedules of another 26 government organisations. SRO subsequently made recommendations to the Commission.

General Disposal Authority for Government Records In 2012/13, the SRO produced a draft General Disposal Authority for Government Records (GDA). This GDA provides broad coverage of common sets of corporate records across government. As part of a wider consultative practice, a draft of the GDA was published on the SRO website in June 2013 to allow government agencies an opportunity to provide comment. Once formally approved, the GDA will allow agencies to concentrate on identifying and sentencing their functional records when preparing specific disposal authorities.

TrainingWhile the SRO does not currently have the capacity to offer a formal training program, training was provided to a number of agencies on request.

Online Retention and Disposal ApplicationIn 2012, the SRO implemented the Online Retention and Disposal Application (ORDA) for government agency use. ORDA is a web-based system that enables government agency staff, and consultants to draft and submit disposal authorities to the SRO in a secure online system.

The system integrates all processes associated with the SRO’s management of disposal authorities (e.g. registration, tracking, reviewing, reporting) and replaces the previous requirement to submit disposal authorities to the SRO in hardcopy.

During 2012/2013, 20 government agencies began using ORDA as they prepared new disposal authorities. In future all disposal authorities will be prepared through ORDA.

State Records Commission supportOne of the chief functions of the SRO is to provide administrative and operational support to the State Records Commission, which is established under Part 8 of the Act. The Commission consists of four members: the Auditor General, the State Ombudsman, the Freedom of Information Commissioner, and a recordkeeping professional appointed by the Governor.

During the year, the SRO supported three meetings of the Commission — August 2012, December 2012 and May 2013. The August meeting was hosted by the Pilbara Education Regional Office at Karratha.

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The SRO also supports the work of the State Records Advisory Committee. This body examines and endorses all records retention and disposal authorities compiled by government agencies, prior to their referral to the Commission for final approval. The Committee met twice this year and considered eight disposal authorities, all of which were later approved by the Commission.

On behalf of the Commission, the SRO investigated several alleged recordkeeping breaches of the Act. The outcomes of these investigations will be reported in the Commission’s annual report.

The SRO organised the judging and presentation of two annual awards that are given under the aegis of the Commission:

■ The State Records Commission Award for Excellence in Compliance Reporting acknowledges reporting by government agencies on compliance with their recordkeeping plans (as per Commission Standard 2, Principle 6). The award was presented to the Economic Regulation Authority on 1 March 2013 at the 28th Annual WS Lonnie Awards for public sector annual reporting.

■ The Margaret Medcalf Award is presented each year in recognition of a published work that shows excellence in referencing and research using the State archives collection. Joint winners were presented with the Award on 19 June 2013.

▪ Ruth Morgan, Runningout?AnenvironmentalhistoryofclimateandwaterinthesouthwestofWesternAustralia,1829to2006 – PhD Thesis for The University of Western Australia.

▪ Ann Hunter, Adifferentkindof‘subject’:coloniallawinAboriginal–Europeanrelationsin19thcenturyWesternAustralia1829-61 – Book published by Australian Scholarly Publishing.

The Commission is required to report to the State Parliament before 1 November each year on matters concerning the operation of the Act. Since 2002, the SRO has compiled this report on the Commission’s behalf. The Commission’s Annual Report for 2011/2012 was tabled in State Parliament on 6 November 2012.

Intellectual control of State Archives

Development of new Archives Management System Throughout 2012/2013 the SRO developed a new collection management system based on AtoM, AccesstoMemory: a web based open source software for archival description. The SRO intends to replace its current collection management system with this new system.

Once implemented, the AtoM system will have the capacity to manage the SRO’s physical and born digital collection and provide clients with improved capacity to search the State archives catalogue, enhanced access to digitised archives in the archives collection, and preliminary capability to accept and manage digital archives currently held by government agencies.

Preservation of the State Archives collection (Disclosures and legal compliance)

Preservation programThe SRO shares archives storage space in the Perth Cultural Centre with the State Library of WA. Under current arrangements, the State Library’s Preservation Branch provides the SRO with general conservation advice.

This year the SRO digitised over a quarter of the 400 cassette tapes of interviews recorded during the Aboriginal Land Inquiry of 1983-84. The tapes contain interviews with Indigenous people that were conducted by Commissioner Paul Seaman throughout WA.

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Field books digitisation project In April 2011 the SRO and the Friends of the Battye Library commenced a project to digitise early WA Crown Surveyors field books.

The initial project resulted in about 110 field books being digitised. In August 2012 the Friends agreed to fund the project’s extension. The second phase started in April 2013 and by 30 June a further 85 field books had been digitised. Close to 200 early Crown Surveyors field books (that predate 1900) can now be viewed online via the SRO’s online catalogue, AEON.

Access and outreach Reference and access servicesThe SRO maintains a public search room in the Perth Cultural Centre where researchers may view State archives in hard copy and microfilm formats. A limited professional reference service is also provided to clients via email; particularly those clients living outside of metropolitan Perth.

The Blaxell ReportIn September 2012 the Premier tabled the report of the St Andrew’s Hostel Special Inquiry in Parliament. The State Records Office provided access to Government records during this inquiry.

Filming in the SROSince 2007, the SRO has been involved in the research and filming of the television series WhodoYouThinkYouAre? and Who’sBeenSleepinginMyHouse? In 2012/2013 an episode of WhoDoYouThinkYouAre? included filming at SRO.

SRO joins ‘Memory of the World’In 2007 the convict records of WA, along with those of other Australian states, were listed on the UNESCO Memory of the World International Register as TheConvictRecordsofWesternAustralia.

In May 2013 the State Archivist was presented with a certificate acknowledging the inscription of WA’s convict records by the Australian Memory of the World Committee.

Public programsThe SRO promotes the State archives collection through public programs. This year’s events comprised:

■ Since 2002 the SRO has commemorated the annual release of the State Cabinet papers from a 30-year access embargo. This year the SRO produced A Guide to the 1982 State Cabinet Papers. The guide was published online for the Western Australia day long weekend in June 2013.

■ The eighth annual Geoffrey Bolton Lecture was hosted by SRO at the Government House Ballroom on 12 November 2012. The guest speaker was the Hon Fred Chaney AO, who discussed, ‘Goldanddross-whatisthevalueoftheofficialrecord?’

■ Four public lunchtime seminars were conducted during the year. These promote research into WA’s history and are delivered by researchers or SRO staff on topics encompassing access to, or use of, records of significant interest held in the State archives collection.

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Organisational support

Infrastructure Planning and SupportNew Museum Project

The State Government endorsed the Business Case for the New Museum Project in December 2012. The anticipated total capital cost of the project is $428.3 million and the estimated completion date is early 2020. A capital provision of $17.46 million has been allocated from within the total project budget towards capital works at the Welshpool Collection and Research Centre (CRC).

The New Museum Project Team is currently preparing the Project Definition Plan (PDP). This review focuses on the approved option from the Business Case phase to confirm its scope, cost and timeframe and develop more detailed briefing and master planning documentation for the Project. In December 2013, the Steering Committee will be asked to approve the completed PDP before the project enters delivery phase.

Revision of the Time Program for the project in light of the move to a Managing Contractor scenario was undertaken. This has resulted in some material changes to dates for appointment of design and construction team, commencement of early works and main construction. However the end date of the Project has not shifted from early 2020.

New Venue for Music – Feasibility Study

The New Venue for Music Feasibility Study was finalised and submitted in April 2013 and distributed to Steering Committee Members.

The Feasibility Study provides preliminary costings for five options. These options progress from a ‘do minimal’ option to one that meets all of the WASO’s needs at the Perth Concert Hall (PCH) site. In addition, a non-PCH option that met all of the WASO’s needs was assessed.

With the State’s lease of the PCH expiring in 2014, DCA and the Perth Theatre Trust have commenced discussions with the City of Perth and relevant stakeholders to explore options for how it will be managed in the future. Once a preferred option is agreed to, the need for a business case for a New Venue for Music will be considered.

Asset Maintenance Program

The 2012/2013 State Budget increased the allocation of funding to the Asset Maintenance Program (AMP) from $3 million per annum to $5 million per annum for four financial years commencing 2012/13. This increase in funding was based on a business case submission to the Department of Treasury by DCA that included a prioritised list of maintenance works as identified by the Culture and the Arts Portfolio organisations.

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The business case detailed the submission of over 300 maintenance requests from Culture and the Arts Portfolio organisations and requests were ranked according to priority, one being the highest priority and seven the lowest.

These requests have been assessed and prioritised by DCA and the Department of Building Management and Works and scheduled for delivery over the four year term of the program.

Some of the more significant projects funded in 2012/13 were:

■ Art Gallery of WA - lift upgrade;

■ State Library of WA - library roof replacement;

■ State Library of WA - air-conditioner chiller unit replacement;

■ Western Australian Museum - Kalgoorlie Museum lift upgrade;

■ Western Australian Museum - Shipwrecks Gallery lift upgrade; and

■ Perth Theatre Trust - Perth Concert Hall air-conditioner chiller unit replacement.

Property Management

The DCA property portfolio consists of eight buildings, including some of cultural and heritage significance:

■ Arts House – situated in Perth Cultural Centre.

■ King Street Arts Centre.

■ Old Customs House – heritage listed property in Fremantle.

■ PICA building – situated in the Perth Cultural Centre.

■ Short Street Theatre – situated in Fremantle and home to Spare Parts Puppet Theatre.

■ The Bell Tower.

Through the refurbishment and maintenance of these buildings DCA ensures that the functional requirements for delivery of arts services are being met and that this collection of heritage and iconic buildings are safeguarded for the benefit of future generations.

Through its Property Management team, DCA is also an active supporter of Open House Perth, an annual free event showcasing Perth’s finest examples of architecture and encouraging better understanding of contemporary, historic and sustainable design within the city.

A key attraction in the Open House 2012 itinerary was allowing public access to DCA’s premises at Gordon Stephenson House, 140 William Street, Perth.

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Financial Services

The Strategic Financial Management Branch provides strategic and financial services support to DCA and the four statutory authorities and one incorporated association within the Culture and the Arts Portfolio. Financial Services support is also provided to The Bell Tower.

During the 2012/13 financial year a number of compliance and reporting requirements were met on behalf of the Portfolio. This included meeting Whole of Government reporting deadlines, coordination and reporting for the State Budget mid-year review process and development of the Portfolio’s budget for inclusion in the State Budget papers.

The branch successfully completed seven annual financial statements on behalf of each of the Portfolio’s organisations and The Bell Tower. The significant work undertaken culminated in five Best Practice nominations by the Office of the Auditor General (OAG). The nominations are in recognition of meeting each of the OAG’s criteria for timeliness, quality and clear audit opinion.

Human Resources

Human Resources continued to provide services across the Portfolio including the development and implementation of human resource policy, planning and development initiatives, industrial relations support and staff development.

A Strategic Workforce Plan was prepared in line with the DCA’s future workforce needs. The 2012/2013 financial year initiatives have been completed. A HR Strategic Plan is being developed to provide further understanding on how the Strategic Workforce Plan initiatives add value to the WA community through the ongoing development of its workforce.

Online Accountability and Ethical Decision Making training started in the second half of 2012/2013. Ninety-nine per cent of staff, including regional staff, successfully completing the training.

A formal review of the DCA’s OSH management system was undertaken in 2012 to ensure relevance and compliance to codes of practice and guidelines. An audit of DCA and the Portfolio agencies was completed using the WorkSafe Plan as the benchmark, with an implementation plan developed for 2013-2015 to focus on recommendations in the areas of management commitment, planning, consultation, hazard management and training.

Manager education and inductions

The HR unit developed a Management Education Program (MEP) for agency staff. This has included the development of an ongoing Manager Induction Process.

HR contracted Australian Institute of Management WA to conduct training for all managers in the portfolio over 2012/2013. In the long term, the MEP will provide ongoing development opportunities for staff.

Equity and diversityDCA strives to ensure its workforce is representative of the broader WA community and seeks to ensure it maintains the capacity to deliver arts and cultural experiences reflecting the State’s diversity. This is evidenced by the high representation of women in management (48 per cent) and people from culturally and linguistically diverse backgrounds (14 per cent). This compares with the broader public sector figures of 39 per cent and 11 per cent respectively (as of 31 March 2013).

The Department continues to drive initiatives which increases the value of diversity in the workforce to ensure ongoing delivery of community based services. The Culture and Arts Portfolio Equal Employment Opportunity objectives have been incorporated into the Strategic Workforce Plan 2012 – 2017.

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Risk management and business continuity

A risk management framework (supporting compliance with Treasurer’s Instruction TI 825) continued to be integrated in organisational planning and management throughout the year with oversight from the Department’s Risk Management Committee. Strategic risks were reviewed and continued to be monitored through the strategic planning cycle. Operational risks continued to be revised through the online RiskBase software program.

The Department’s Business Continuity Management Plan has continued to be updated to reflect staff changes and current business activities. The plan is scheduled to be tested in conjunction with the Information Services Information and Communication Technology Disaster Recovery Plan.

Audit and Review

The Audit and Review function is a key component of the corporate governance framework by which the Department maintains effective systems of accountability and control. It assists the DCA in accomplishing its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of the organisation’s risk management, control and governance processes through implementation of the Annual Audit Plan.

Execution of the plan in 2012/2013 resulted in the completion of seven audits and seven audit follow-ups. Significant recommendations were made in areas including strategic asset funding governance, controls over grants monies and workers compensation and injury management processes. These and other recommendations will, when implemented, assist in the efficiency and effectiveness of business activities.

Information Services

Information Services (IS) worked on a variety of major projects throughout 2012/2013. Highlights included:

■ Rolling out a voice over internet protocol (VOIP) telecommunications system that has allowed IS to leverage existing ICT infrastructure to integrate communications within the Portfolio. The successful completion of this project has reduced dependency on external telecommunications providers and delivered voice mail and mobility to Portfolio staff. The scalability of a VOIP system along with inherent cost effectiveness has provided for future telecommunications infrastructure for the Portfolio.

■ The roll-out of Windows 7 and Office 2010 to the Portfolio with a standard operating environment was a major undertaking, with more than 600 personal computers requiring either replacement or upgrade.

■ Work started this year on a new Disaster Recovery Plan which will result in core business systems and related data being hosted in a world-class data centre that will guarantee business continuity to the Portfolio. The plan and new disaster recovery site will enable the recovery of core business systems within 24 hours. It is due for completion in December 2013.

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Significant issues impacting the agency

Department of Culture and the Arts ■ The Government has committed $428.3 million for a new State Museum for WA.

Planning for the new museum is currently in the project definition phase.

■ The culture and art portfolio manages over 40 buildings, including 33 heritage listed buildings. These buildings are essential to the delivery of services to the community. The portfolio maintenance program focuses on ensuring the safety and security of the State’s collections held in these buildings, and the safety of staff and visitors. The key challenge is to maintain fitness for purpose of these buildings so that contemporary services can be delivered.

■ In consultation with the arts sector and the community, the Department is developing a framework to measure and better understanding the public value created through State Government investment in arts and culture.

■ A Machinery of Government (MOG) change, to take effect from 1 July 2013, will devolve the Director General’s employing powers to the agency CEOs. A structural examination of the DCA will be undertaken and this may result in further MOG changes.

State Records Office As stated in previous annual reports, the State Records Office remains unable to accept the transfer of hard copy and digital archives from State and local government agencies, due to lack of storage capacity. This situation has prevailed since July 2001, requiring government agencies to maintain control of their archives, thus impeding public access to the State’s archives and potentially putting the physical integrity of records at risk.

The amount of archival records held by Government agencies is increasing by 1.5 linear km each year. This figure currently stands at 50 linear kms with no new space to accommodate the increasing volume. In 2012-13 SRO undertook work to identify and initiate discussions with prospective commercial partners to explore other opportunities.

Compliance Monitoring with, and Breaches of, the State Records Act 2000In supporting the implementation of the StateRecordsAct2000, and the Commission’s statutory functions (under section 60), a formal compliance monitoring regime is essential. Non-compliant government systems result in inefficient business activities which lead to costly investigations of suspected breaches.

The introduction of a compliance monitoring regime would support the effective management of government information to the best advantage of agencies’ business operations; and reduce the potential for lost government information and subsequent embarrassment to Government.

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Disclosures and legal compliance

Ministerial directivesNil

Pricing policiesNo pricing policies apply to the Department as it is not a commercial agency.

Governance disclosuresInterests of senior officers - Nil

Major capital projectsNew Venue for Music feasibility studyThe Department partnered with the City of Perth and the West Australian Symphony Orchestra (WASO), with support from the Department of Finance, to prepare a feasibility study into accommodation alternatives for the WASO. This study explored the available options and also assessed the need for upgrades to the Perth Concert Hall.

New Museum projectThe business case for the New Museum for Western Australia was endorsed by government and a commitment to fund the project was made in the 2012/2013 State Budget. This commitment has enabled the project to move to the Project Definition Planning phase, which will provide detailed information on the project scope, cost, procurement options and construction program. The project team also commenced planning for the upgrade of the Collections and Research Centre in Welshpool.

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Other legal requirementsIn compliance with Section175ZEoftheElectoralAct1907, the Department of Culture and the Arts is required to report in expenditure incurred during the financial year in relation to advertising agencies, market research organisations, polling organisations, direct mail organisations and media advertising organisations. Details are as follows:

Expenditure with Advertising Agencies $0Expenditure with Market Research Agencies

Patterson Research Group $29,816Expenditure with Polling Agencies $0Expenditure with Direct Mail Agencies $0Expenditure with Media Advertising Agencies

Adcorp Australia $34,298Project Serv Aust $1,057The Hub Marketing Communications $4,926Mitchell Communication $1,377Advertising for Revealed $12,704Arts Radio Limited RTR FM 92.1 $5,089

Total expenditure $89,267

Disability Access and Inclusion Plan outcomes The Department is committed to ensuring that people with disability, their families, friends and carers have the same opportunities, rights and responsibilities enjoyed as others to access cultural services, information and facilities. Progress towards meeting the desired outcomes of DCA’s Disability Access and Inclusion Plan (DAIP) is outlined below.

The Department has developed a new DAIP 2013-2017. The new plan will guide the Department in how it welcomes people with disability, their carers, friends and families to its buildings, services and employment.

Outcome 1: People with disabilities have the same opportunities as other people to access the services of, and any events organised by, the Department.

DCA developed a cooperative partnership with the Mental Health Commission, resulting in funding to three arts organisations, Community Arts Network, Country Arts WA and DADAA. The funding has allowed these organisations to deliver socially inclusive projects for people with disabilities in metropolitan and regional Western Australia.

The Department supported DADAA through funding for a 12 month emerging curator initiative for 15 artists in the Here & Now 13 project. The project will culminate in an exhibition showcasing the best WA contemporary art created by people with disability.

The publication, HealthyArts was launched by the Department. HealthyArts explores social and community wellbeing within WA communities and highlights the role the arts can play in helping to build inclusive and cohesive groups, addressing specific health or social concerns, including disability. The book includes three case studies of DCA-funded arts and disability projects.

A review of DCA’s grants funding processes has been completed. One of the aims of the review is to simplify the application process. Findings from a Disability and the Arts Inclusion initiative pilot grants program for artists with disability have been considered during this review.

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Outcome 2: People with disabilities have the same opportunities as other people to access the buildings and other facilities of the Department.

In line with recent amendments to the National Construction Code, updating of access auditing of all Department buildings has commenced. Access is the highest priority for maintenance work along with works that ensure the safety of the public, people and collections.

Outcome 3: People with disabilities receive information from the Department in a format that will enable them to access the information as readily as other people are able to access it.

Publications, including the grants handbooks and grant application forms, follow the typeface, branding and layout guidelines contained in the Department’s style guide. This complies with the Disability Services Commission guidelines for making information accessible.

A variety of alternative and accessible formats are available on request. A by-line stating their availability is included in a prominent position in publications.

The Department website is formatted to meet all requirements detailed by W3C Web Content Accessibility Guidelines. All documents available for download are tagged for accessibility and, where possible, are provided in an alternative plain text file format. All videos have transcripts attached.

Outcome 4: People with disabilities receive the same level and quality of service from the staff of the Department as other people receive from the staff of the Department.

A presentation on disability access and inclusion, including customer service for people with disabilities, is included in the Culture and Arts Portfolio Induction Program for staff. Eighty-one staff attended induction training during the year.

Outcome 5: People with disabilities have the same opportunities as other people to make complaints to the Department.

The Department’s complaints process is easily accessible online. Feedback and complaints mechanisms are in place and are being reviewed to ensure they are being appropriately implemented.

Outcome 6: People with disabilities have the same opportunities as other people to participate in any public consultation by the Department.

To support people with disability, their families and carers to attend external consultations and public gatherings, the Department provides event information in clear, concise language and in accessible formats. It also holds events in accessible venues and provides consultation information in alternative formats, on request.

Outcome 7: People with disabilities have the same opportunities as other people to seek employment with the Department.

Information and policy aimed at encouraging and facilitating the recruitment of people with disability has been incorporated within the Department’s Recruitment, Selection and Appointment Manual. All staff have access to the manual through the Departmental intranet.

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Compliance with Public Sector Standards and Ethical CodesThe Department has worked with the Culture and Arts Portfolio agencies to ensure that legislative and public sector compliance is achieved across the Portfolio. The Culture and Arts Portfolio places significant value on developing compliance initiatives which foster a culture of accountable and ethical decision making.

HR consistently reviews and updates workforce policies, procedures and guidelines to ensure they are aligned with contemporary legislative and compliance frameworks.

HR leads a range of activities across the portfolio which ensures all staff maintain a culture of excellence through compliance.

These activities provide education to staff on the Public Sector Standards and Public Sector Code of Ethics and include induction for new staff, compulsory code of conduct review by all staff upon commencement, and support on how to access relevant documentation on the DCA intranet.

HR provides ongoing support and education for employees to support them in acting with integrity and in the public’s interest.

DCA provided online Accountable and Ethical Decision Making training across the portfolio.

HR refined the CEO Reporting mechanisms to provide portfolio agencies the ability to better track their performance against key measure of organisational performance.

Feedback from portfolio agencies is that the reports provide meaningful workforce statistics that assist them with strategic planning and decision-making.

Industrial and employee relationsAs a result of DCA’s commitment to educating in the Public Sector Standards and the Public Sector Code of Ethics the department continues to record low instances of compliance breach claims. In the 2012/2013 financial year, there were no reported breaches of the Public Sector Standards within DCA.

No potential breaches of the Code of Ethics or the Department’s Code of Conduct (derived from the Public Sector Code of Ethics) were received during the same period.

HR continues to provide ongoing support and advice to managers and staff in industrial relation matters.

This information is for the Department of Culture and Arts and the State Records Office only. The Portfolio agencies (Art Gallery of WA, ScreenWest, Perth Theatre Trust, WA Museum and State Library of WA) provide their own information in their respective annual reports.

Employee informationThe following tables summarise the Portfolio’s employee demographics.Culture and Arts Portfolio headcount at 30 June 2013.

Employment Type 2011 - 2012 2012 - 2013Women Men Women Men

Permanent Full-time 199 159 199 160Permanent Part-time 175 35 146 29Fixed Term Full-time 68 40 60 42Fixed Term Part-time 46 12 31 9Casual paid 6 0 15 2Other paid 8 1 15 6Total 502 247 466 248

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Demographics by Organisation

Department/Portfolio Organisation 2011 - 2012 2012 - 2013Women Men Women Men

Department of Culture and the Arts 85 49 82 61Art Gallery of Western Australia 58 22 53 22Perth Theatre Trust 34 12 11 3ScreenWest 17 4 18 5State Library of Western Australia 166 64 148 59Western Australian Museum 142 96 154 98Total 502 247 466 248

*There is a decrease in PTT’s headcount between the 2011/12 and 2012/13 financial year. This difference can be largely attributed to the decommissioning of BOCS Ticketing and the outsourcing of this service.

Recordkeeping plans – Department of Culture and the Arts

Department of Culture and the Arts Recordkeeping Plan As required under the State Records Act 2000, the Department’s Recordkeeping Plan was last reviewed and registered with the State Records Office in 2010. The Department continues to implement strategies to ensure that employees are aware of their compliance responsibilities established in the Act.

The efficiency and effectiveness of the organisation’s recordkeeping system is evaluated not less than once every five years or when there is significant change to the organisation’s functions.

The last major review of recordkeeping systems coincided with the Department’s move to Gordon Stephenson House in 2011. Recordkeeping staff continually monitor, review and update recordkeeping practices to maintain and increase the efficiency and effectiveness of the Department’s recordkeeping system as more staff use the Department’s electronic records and document management system, TRIM.

Recordkeeping training program Regular recordkeeping training is provided to staff to raise awareness of recordkeeping requirements and to provide instruction in recordkeeping systems and recordkeeping responsibilities. Training is also provided on a one-on-one basis with staff as required. Recordkeeping staff also attended TRIM administration training.

The recordkeeping training program is reviewed regularly and staff usage of TRIM is monitored to identify gaps in usage. Training material is regularly revised to address updates in the system and to incorporate frequently asked questions. All Department staff have access to the TRIM electronic recordkeeping system and have been provided with training. TRIM usage is becoming increasingly embedded into the Department’s operations.

The Department’s induction program addresses employee roles and responsibilities in regard to their compliance with the organisation’s Recordkeeping Plan.

The State Records Office provides induction training for all new staff on their recordkeeping responsibilities under the State Records Act 2000. A brochure detailing staff recordkeeping responsibilities is provided for all staff attending these sessions.

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Recordkeeping plans - State Records OfficeThe following information is provided as evidence of compliance with legislative requirements (i.e. the StateRecordsAct2000 and the State Records Commission’s Standards).

The State Records Office of WA’s Recordkeeping Plan was approved by the State Records Commission in November 2007. In accordance with section 28 of the StateRecordsAct2000 the Plan and accompanying Retention and Disposal Schedule were reviewed and a report of the review was submitted to the Commission.

During 2012-13 the State Records Office also reviewed internal recordkeeping systems and processes for effectiveness and relevant areas previously identified for improvement were addressed. Specific areas included:

■ TRIM EDRMS rollout to all SRO staff who create and capture records;

■ updated Website management and recordkeeping policies and procedures;

■ staff training in electronic records management;

■ development of quick reference guides to provide staff with easy access recordkeeping resources; and

■ ongoing disposal programs to remove records that are authorised for destruction, thus freeing up valuable office space.

All new staff received comprehensive induction to their new position via the Department’s portfolio induction program and also within the SRO. Existing staff are given internal training that is relevant to their duties within the office. Both induction programs encompass the recordkeeping responsibilities of each employee, in accordance with legislative requirements and the SRO’s Recordkeeping Plan.

Government policy requirements

Substantive EqualityIn the 2011/2012 financial year, the Department established the Substantive Equality Reference Group which continues to provide advice to the portfolio on substantive equality and targeting community based arts and culture needs. In the 2012/2013 financial year, the new policy and communication plan for substantive equality progressed satisfactorily, helping guide the portfolio towards a clear regulatory framework to support community based projects. Needs and impact assessments are continuing to help identify key areas to increase access to DCA services, improve links in the wider community and increase staff awareness of substantive equality and how it contributes to the services delivery and business activity of DCA and its portfolio agencies.

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Occupational Health, Safety and Injury ManagementDCA is committed to providing and maintaining a safe and healthy work environment for all employees, contractors and visitors. This is demonstrated through the development of policies, procedures and work practices to address hazards, to ensure that all employees are safe from injuries and risks to health while they are at work.

The Department and Portfolio agencies facilitate OSH consultation through systems including agency specific OSH committees, the election of safety representatives, a hazard and incident reporting process, routine workplace hazard inspections and a process for the resolution of OSH issues. Staff are made aware of these processes at staff induction, through specific OSH training and by having access to OSH information on the intranet.

The policy and procedures of DCA and Portfolio agencies are compliant with the OccupationalSafetyandHealthAct1984 and the WorkersCompensationandInjuryManagementAct1981. These procedures outline the Department’s commitment to assist employees to return to work after a work-related injury or disease.

DCA engages in formal, documented programs for employees requiring modified duties or information on workers compensation and injury management is provided to staff at induction and via the intranet upon returning to work after an injury.

A formal review of the DCA’s OSH management system was undertaken in 2012 to ensure relevance and compliance to codes of practice and guidelines. An audit of DCA and the Portfolio agencies was completed using the WorkSafe Plan as the benchmark, with an implementation plan developed for 2013-2015 to focus on recommendations in the areas of management commitment, planning, consultation, hazard management and training.

OSH performance indicator table

Measure Actual Results Results against Target2011-2012 2012-2013 Target Comment on Result

Number of Fatalities 0 0 0 No changeLost time injury and/or disease incidence rate

0 0.76 0 or 10% reduction

Lost time injury and/or disease severity rate

0 100 0 or 10% reduction

High severity rate is due to only one lost time injury for the period, which

was of a severe nature.

Percentage of injured workers returned work:

0 100% Greater than or equal to 80%

(i) Within 13 weeks

(ii) Within 26 weeks 0 100% Greater than or equal to 80%

Percentage of managers trained in occupational safety, health and injury management responsibilities

85% 77.5% Greater than or equal to 80%

Training planned for 2013/14

includes OSH responsibilities

for managers and supervisors

Note: These are Department of Culture and Arts and State Records Office figures only.

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Opinion of the Auditor General

Auditor General

Page 1 of 3

7th Floor Albert Facey House 469 Wellington Street Perth MAIL TO: Perth BC PO Box 8489 Perth WA 6849 TEL: 08 6557 7500 FAX: 08 6557 7600

INDEPENDENT AUDITOR’S REPORT

To the Parliament of Western Australia

DEPARTMENT OF CULTURE AND THE ARTS

Report on the Financial StatementsI have audited the accounts and financial statements of the Department of Culture and the Arts.

The financial statements comprise the Statement of Financial Position as at 30 June 2013, the Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows, Schedule of Income and Expenses by Service, Schedule of Assets and Liabilities by Service, and Summary of Consolidated Account Appropriations and Income Estimates for the year then ended, and Notes comprising a summary of significant accounting policies and other explanatory information.

DirectorGeneral’sResponsibility fortheFinancialStatementsThe Director General is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the Treasurer’s Instructions, and for such internal control as the Director Generaldetermines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’sResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements based on my audit. The audit was conducted in accordance with Australian Auditing Standards. Those Standards require compliance with relevant ethical requirements relating to audit engagements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Department’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Director General, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

OpinionIn my opinion, the financial statements are based on proper accounts and present fairly, in all material respects, the financial position of the Department of Culture and the Arts at 30 June 2013 and its financial performance and cash flows for the year then ended. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions.

44Page 2 of 3

Report on ControlsI have audited the controls exercised by the Department of Culture and the Arts during the year ended 30 June 2013.

Controls exercised by the Department of Culture and the Arts are those policies and procedures established by the Director General to ensure that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions.

DirectorGeneral’sResponsibilityforControlsThe Director General is responsible for maintaining an adequate system of internal control to ensure that the receipt, expenditure and investment of money, the acquisition and disposal of public and other property, and the incurring of liabilities are in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions, and other relevant written law.

Auditor’sResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on the controls exercised by the Department of Culture and the Arts based on my audit conducted in accordance with Australian Auditing and Assurance Standards.

An audit involves performing procedures to obtain audit evidence about the adequacy of controls to ensure that the Department complies with the legislative provisions. The procedures selected depend on the auditor’s judgement and include an evaluation of the design and implementation of relevant controls.


OpinionIn my opinion, the controls exercised by the Department of Culture and the Arts are sufficiently adequate to provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions during the year ended 30 June 2013.

Report on the Key Performance IndicatorsI have audited the key performance indicators of the Department of Culture and the Arts for the year ended 30 June 2013.

The key performance indicators are the key effectiveness indicators and the key efficiency indicators that provide information on outcome achievement and service provision.

DirectorGeneral’sResponsibilityfortheKeyPerformanceIndicatorsThe Director General is responsible for the preparation and fair presentation of the key performance indicators in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions and for such controls as the Director General determines necessary to ensure that the key performance indicators fairly represent indicated performance.

Auditor’sResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on the key performance indicators based on my audit conducted in accordance with Australian Auditing and Assurance Standards.

45Page 3 of 3

An audit involves performing procedures to obtain audit evidence about the key performance indicators. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the key performance indicators. In making these risk assessments the auditor considers internal control relevant to the Director General’s preparation and fair presentation of the key performance indicators in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the relevance and appropriateness of the key performance indicators for measuring the extent of outcome achievement and service provision.


OpinionIn my opinion, the key performance indicators of the Department of Culture and the Arts are relevant and appropriate to assist users to assess the Department’s performance and fairly represent indicated performance for the year ended 30 June 2013.

IndependenceIn conducting this audit, I have complied with the independence requirements of the Auditor General Act 2006 and Australian Auditing and Assurance Standards, and other relevant ethical requirements.

Matters Relating to the Electronic Publication of the Audited Financial Statements and Key Performance IndicatorsThis auditor’s report relates to the financial statements and key performance indicators of the Department of Culture and the Arts for the year ended 30 June 2013 included on the Department’s website. The Department’s management is responsible for the integrity of the Department’s website. This audit does not provide assurance on the integrity of the Department’s website. The auditor’s report refers only to the financial statements and key performance indicators described above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements or key performance indicators. If users of the financial statements and key performance indicators are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited financial statements and key performance indicators to confirm the information contained in this website version of the financial statements and key performance indicators.

COLIN MURPHYAUDITOR GENERALFOR WESTERN AUSTRALIAPerth, Western Australia11 September 2013

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Key Performance Indicators

Certification of Key Performance IndicatorsCulture and the Arts Portfolio

For the Year Ended 30 June 2013

I hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the performance of the culture and the arts portfolio, and fairly represent the performance of the portfolio for the financial year ended 30 June 2013. At the date of signing I am not aware of any circumstances that would render the particulars included in the performance indicators misleading or inaccurate.

Alan Ferris

Accountable Authority9 September 2013

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Key Performance Indicators (KPI)Introduction

The Department’s KPIs have been developed in accordance with Treasurer’sInstruction904 to evaluate the portfolio’s performance in achieving the Government’s Desired Outcomes and provide an overview of the critical and material aspects of service provision. The KPIs measure performance at the whole of portfolio level. The KPIs for each of the portfolio organisations support and contribute to the KPIs identified for the portfolio. The result is a consolidated picture of what the culture and arts portfolio is delivering and the impact it is having on the community of Western Australia.

Portfolio Services

Services provided by the culture and arts portfolio are listed in the 2012/2013 Budget Papers under Culture and the Arts. Funding for these services is provided by Parliament through a direct appropriation from Treasury to the Department and each statutory authority, with the exception of capital works funding which is allocated to the Department. The services listed are:

1. Arts Industry Support;2. Screen Production Industry Support;3. Venue Management Services;4. Art Gallery Services;5. Library and Information Services;6. Museum Services; and7. Government Record Keeping and Archival Services.

Notwithstanding the clustering of services under Culture and the Arts in the Budget Papers, the Department is directly responsible for producing services (1) and (7). The balance are the responsibility of ScreenWest Inc. (2), Perth Theatre Trust (3), Art Gallery of Western Australia (4), State Library of Western Australia (5), and the Western Australian Museum (6).

The services reflect the total business of the portfolio. In accordance with their enabling legislation, each portfolio organisation separately prepares an annual report and reports on their performance with respect to the specific services they deliver.

Government Goals

The Department of Culture and the Arts contributes to the achievement of the Government Goal:

“Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians”.

Government Desired Outcomes

The Government’s Desired Outcomes for the portfolio are:

▪ A creative, sustainable and accessible culture and arts sector; and

▪ Western Australia’s natural, cultural and documentary collections are preserved, accessible and sustainable.

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Achievement of the portfolio’s Government Desired Outcomes will facilitate the achievement of a creative community that participates in and values culture and the arts as essential to the quality of life and wellbeing of all people throughout Western Australia. The KPIs describe the level of success of the services provided by the culture and arts portfolio in fulfilling the Outcomes.

Market Research

To measure the ‘Sustainability’ and ‘Accessibility’ Key Effectiveness Indicators, the Department commissioned Patterson Research Group to conduct a telephone survey. A total of 400 interviews were completed from 6-9 May 2013 with 300 interviews completed with respondents in the Perth metropolitan area and the remaining 100 completed with respondents from regional Western Australia. Respondents interviewed were aged 18 years or over and were randomly selected within each household. A sample of 400 across Western Australia gives a theoretical survey error of ±4.9 per cent at the 95 per cent level of confidence.

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Government Desired Outcome 1A creative, sustainable and accessible culture and arts sector.

Key Effectiveness Indicators

Creativity 2012/13 Target 2012/13 Actual 2011/12 Actual 2010/11 ActualProportion of funding applicants satisfied with the key elements of the “creative”1 funding programs.

80% 64% 64% 67%

Explanatory Notes – Creativity

More than $33 million was allocated to arts, film and screen organisations and projects in order for the sector to deliver outcomes that contribute to creativity. Peer panels assess funding applications to ensure the proposed projects demonstrate significant and achievable ‘creative’ outcomes for the people of Western Australia. Comprehensive processes are in place to monitor and acquit the State’s investment in ‘creative’ outcomes delivered via the funding programs.

Sustainability 2012/13 Target 2012/13 Actual 2011/12 Actual 2010/11 ActualPerceived value of culture and the arts (including the Screen Industry) to the Western Australian community.

79% 75% 81% 77%

Proportion of triennially funded organisations within the culture and arts sector regarded as financially healthy.

24% 25% 24% 12%

1 Creativity “depends on the cultural values, preferences, and realities of residents and other stakeholders in a given community” (Arts, culture, creativity and communities: a framework for measurement: The Urban Institute 2002).

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Explanatory Notes – SustainabilityThe first sustainability KPI provides an assessment of the extent to which the community values the culture and arts sector, a key element in the sustainability of the sector. This indicator was measured by the Flashpoll Omnibus community survey instrument administered by Patterson Research Group. Nearly three quarters of the people interviewed, which equates to an index score of 74 out of 100, rate the arts as having a high value to the community.

The second sustainability KPI, which is also utilised by the Australia Council for the Arts, provides an indication of the financial health and sustainability of the triennially funded culture and arts organisations. The assessment is based upon the percentage of triennially funded organisations that meet all of the following indicators:

▪ Reserves greater than 20 per cent of turnover;

▪ Working Capital greater than 2.0 (asset/liability ratio); and

▪ Cash reserves of greater than 10 weeks worth of expenditure.

The proportion of triennially funded organisations within the culture and arts sector regarded as financially healthy in 2012/13 is 25%. Each year a record is kept of the financial health of 24 organisations which are funded by the Department on a triennial contract basis. This year six organisations met the criteria for financial health, up from three last year.

Accessibility 2012/13 Target 2012/13 Actual 2011/12 Actual 2010/11 ActualProportion of Western Australians that perceive culture and arts sector (including the Screen Industry) events to be accessible.

64% 61% 60% 61%

Explanatory Notes – AccessibilityThe accessibility KPI provides an assessment of the extent to which the West Australian community perceive culture and arts sector events and/or productions to be accessible. This indicator was measured by the Flashpoll Omnibus community survey instrument administered by Patterson Research Group. The overall index score for the combined culture and arts sector and the screen industry was 64%.

The Flashpoll Omnibus Survey indicated that 38% find arts and cultural activities ‘easy’ for the West Australian public to attend or participate in and 21% do not. The proportion of respondents who perceive access to be ‘easy’ increased from 33% last year while the proportion who perceived access to be ‘not easy’ dropped from 25%. The accessibility of arts and culture in Western Australia is slightly more positive than in the previous year.

Respondents from regional Western Australia were little more likely to rate arts and cultural activities as ‘not easy’ to attend or to participate in (23%) compared to people in the Perth metropolitan area (20%). This is in contrast to the previous year where the divide was less (26% regional compared to 25% metropolitan).

The proportion of respondents who indicated that it is ‘not easy’ to view Western Australian produced film and TV events or productions has slightly increased from 33% in 2012 to 37% in the current survey. Twenty-eight per cent consider access to be easy, a drop from 29% in the previous year.

In 2013 the index score for how accessible Western Australian TV events and film productions is calculated to be 58%, which has remained constant for the past four years.

51

Key Efficiency Indicators

Key Efficiency Indicators 2012/13 Target

2012/13 Actual

2011/12 Actual

2010/11 Actual

Service 1 Arts Industry SupportAverage cost per grant application processed

$1,013 $1,325 $1,102 $856

Service 2 Screen Production Industry SupportAverage cost per grant application processed

$3,051 $3,441 $2,854 $2,579

Service 3 Venue Management ServicesAverage cost per performance

$33,762 $27,800 $27,779 $35,300

Explanatory Notes – Key Efficiency Indicator

The Outcome 1 Key Efficiency Indicators relate the level of resource input to the services provided. Measurement of these indicators excludes the funding allocation that is provided to Arts Industry Support and Screen Production Industries.

52

Government Desired Outcome 2Western Australia’s natural, cultural and documentary collections are preserved, accessible and sustainable.

Key Effectiveness Indicators

Preservation 2012/13 Target 2012/13 Actual 2011/12 Actual 2010/11 ActualExtent to which Western Australia’s natural, cultural and documentary collections, that require preservation, are preserved.

83% 80% 82% 82%

Explanatory Notes – Preservation

The preservation KPI provides an assessment of the extent to which the State’s art, museum, heritage and archives collections are preserved. Preservation of the entire collection is not required, therefore this measure only relates to that part of the collection that is determined by the portfolio organisations as requiring preservation. The indicator measures the extent to which the portfolio’s collection preservation outcomes have been met.

Accessibility 2012/13 Target 2012/13 Actual 2011/12 Actual 2010/11 ActualThe number of accesses to Western Australia’s natural, cultural and documentary collections per capita2.

Accesses Per Capita

1.958

Accesses Per Capita

2.253

Accesses Per Capita

1.975

Accesses Per Capita

2.063

Percentage of clients satisfied with the services associated with accessing Western Australia’s natural, cultural and documentary collections.

91% 96% 94% 93%

Number of Accesses: 4,635,064 5,570,689 4,714,335 4,779,778

2 Population (Per Capita) based on ABS Data table 3101.0 (WA): 2010/11 = 2,317,100; 2011/12 = 2,387,200; 2011/12 = 2,306,200; and 2012/13 target (Budget Papers) = 2,451,400

53

Explanatory Notes – Accessibility Per Capita

The accessibility KPIs provide the number of accesses and the number of accesses per capita to the State’s art, museum, heritage and archives collections and the level of satisfaction associated with the various aspects of service delivery associated with accessing the State’s collections. The number of accesses is based on Museum, Art Gallery, State Library and State Records Office visitor attendance figures, and accesses via Internet User Sessions, etc. Accesses for the State Library include the number of material exchanges between the State Library and Local Government public libraries.

Access targets for the Art Gallery, State Library and Museum were both exceeded, and the target for the State Records Office was met. The significant increase in total Museum online accesses is attributed to a higher than expected number of visits to the Museum’s website, driven by the introduction of an online ticketing service for paid exhibitions and programs.

While targets were met by the State Records Office, it is replacing its Business Operating System and is unable to extract remote online access statistics until the new system is operational, so an estimate of online traffic is based on previous year’s usage was included.

Sustainability3 2012/13 Target 2012/13 Actual 2011/12 Actual 2010/11 ActualValue of collection renewal, content development, expansion and/or maintaining the physical integrity of the collection as a proportion of collection value.

7% 7% 6% 6%

Explanatory Notes – Sustainability

The sustainability KPI provides an assessment of the portfolio’s capacity to annually renew a portion of the collection, develop content, expand and/or maintain the physical integrity of the State’s art, museum and heritage collections. Collection renewal, content development, expansion and/or maintaining the physical integrity are essential to the sustainability of the collections.

3 The SRO collection has not been valued and therefore is not included in this KPI.

54

Key Efficiency Indicators

Key Efficiency Indicator 2012/13 Target

2012/13 Actual

2011/12 Actual

2010/11 Actual

Service 4 Art Gallery ServicesAverage cost of Art Gallery services per Art Gallery access.

$31 $23 $36 $29

Service 5 Library and Information ServicesAverage cost of State Library services per State Library access/client interaction.

$14 $16 $16 $13

Average cost of State Library services per new public library collection item.

$77 $60 $80 $84

Service 6 Museum Services

Average cost of Museum services per Museum access.

$35 $40 $41 $24

Service 7 Government Recordkeeping and Archival ServicesAverage cost of State Records Office (SRO) services per access to the State archives collection.

$11 $15 $16 $12

Average cost of SRO services per regulatory service.

$362 $629 $417 $459

Explanatory Notes – Key Efficiency Indicator

The Outcome 2 Key Efficiency Indicators relate the level of resource input to the services provided.

State Library’s average cost of delivering new public library collection items is lower than the target, with the number of new public library items supplied being substantially higher than expected. The decrease in the indicator also reflects significant efficiencies realised through reforms to procurement and processing practices.

The average cost of accesses provided by the SRO is in line with the budget estimate.

The number of regulatory services recorded by the State Records Office dropped significantly due to a change in work practices. During 2012-13 the SRO undertook a series of sector disposal authorities which cover multiple agencies in related areas. Rather than addressing each individual agency the SRO worked more efficiently to develop sector disposal authorities, thereby reducing the number of individual services recorded.

55

Financial Statements

Certification of Financial StatementsDepartment of Culture and the Arts

For the year ended 30 June 2013

The accompanying financial statements of the Department of Culture and the Arts have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ended 30 June 2013 and the financial position as at 30 June 2013.

At the date of signing we are not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.


Tony Loiacono CPAChief Financial Officer

9 September 2013 9 September 2013

Financial Statements

56

Statement of Comprehensive IncomeFor the year ended 30 June 2013

Note 2013 2012$000 $000

COST OF SERVICES

ExpensesEmployee benefits expense 6 49,283 50,077Supplies and services 7 9,071 10,604Depreciation and amortisation expense 8 1,173 1,092Accommodation expenses 9 2,712 2,449Grants and subsidies 10 27,240 36,145Loss on disposal of non-current assets 15 0 5Other expenses 11 1,361 655Total cost of services 90,840 101,027

Income

RevenueUser fees and charges 12 294 381Commonwealth grants and contributions 13 360 493Other revenue 14 1,035 1,339Total revenue 1,689 2,213

Total income other than income from State Government 1,689 2,213

NET COST OF SERVICES 89,151 98,814

Income from State Government Service appropriation 16 87,493 93,685Assets transferred 2 (40)Royalties for Regions Fund 175 24Services received free of charge 470 370Total income from State Government 88,140 94,039

(DEFICIT) FOR THE PERIOD (1,011) (4,775)

OTHER COMPREHENSIVE INCOMEItems not reclassified subsequently to profit or lossChanges in asset revaluation surplus 27 72 (450)Total other comprehensive income (expense) 72 (450)TOTAL COMPREHENSIVE INCOME (EXPENSE) FOR THE (939) (5,225)PERIODThe Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

57

Statement of Financial PositionAs at 30 June 2013

Note 2013 2012$000 $000

ASSETSCurrent AssetsCash and cash equivalents 28 15,907 27,093Restricted cash and cash equivalents 17, 28 515 294Receivables 18 6,041 5,731Other current assets 20 212 238Total Current Assets 22,675 33,356

Non-Current AssetsRestricted cash and cash equivalents 17,28 1,575 1,285Receivables 18 132 168Amounts receivable for services 19 4,614 3,670Property, plant and equipment 21 53,797 54,229Intangible assets 22 490 469Total Non-Current Assets 60,608 59,821

TOTAL ASSETS 83,283 93,177

LIABILITIESCurrent LiabilitiesPayables 24 21,878 32,603Provisions 25 8,271 10,505Other current liabilities 26 333 504Total Current Liabilities 30,482 43,612

Non-Current LiabilitiesProvisions 25 4,496 2,359Total Non-Current Liabilities 4,496 2,359

TOTAL LIABILITIES 34,978 45,971

NET ASSETS 48,305 47,206

EQUITY 27Contributed equity 11,530 9,491Reserves 41,952 41,880Accumulated surplus (deficit) (5,177) (4,165)

48,305 47,206TOTAL EQUITYRefer to the 'Schedule of Assets and Liabilities by Service'. The Statement of Financial Position should be read in conjunction with the accompanying notes.

58

Statement of Changes in EquityFor the year ended 30 June 2013

Note Contributed equity

Reserves Accumulated surplus (deficit)

Total Equity

$000 $000 $000 $000

Balance at 1 July 2011 27 875 42,330 610 43,815Total comprehensive income for the period

0 (450) (4,775) (5,225)

Transactions with owners in their capacity as owners:

Capital appropriations 15,500 0 0 15,500Other contributions by owners 0 0 0 0Distributions to owners (6,884) 0 0 (6,884)

Total 8,616 (450) (4,775) 3,391

Balance at 30 June 2012 9,491 41,880 (4,165) 47,206

Balance at 1 July 2012 9,491 41,880 (4,165) 47,206Total comprehensive income for the period

0 72 (1,012) (940)

Transactions with owners in their capacity as owners:

Capital appropriations 2,039 0 0 2,039Other contributions by owners 0 0 0 0Distributions to owners 0 0 0 0

Total 2,039 72 (1,012) 1,099

Balance at 30 June 2013 11,530 41,952 (5,177) 48,305

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

59

Statement of Cash FlowsFor the year ended 30 June 2013

Note 2013 2012$000 $000

CASH FLOWS FROM STATE GOVERNMENTService appropriation 86,549 92,403Capital contributions 2,039 8,616Holding account drawdowns 0 200Regional Royalties Fund 175 24Net cash provided by State Government 88,763 101,243

Utilised as follows:CASH FLOWS FROM OPERATING ACTIVITIESPaymentsEmployee benefits (51,721) (50,404)Supplies and services (14,274) (4,899)Accommodation (2,712) (2,449)Grants and subsidies (31,833) (35,768)GST payments on purchases (3,889) (5,192)GST payments to taxation authority (279) (187)Other payments (1,166) (441)

ReceiptsUser charges and fees 71 144Commonwealth grants and contributions 252 493GST receipts on sales 4,669 190GST receipts from taxation authority 279 4,670Other receipts 1,854 22Net cash (used in) operating activities 28 (98,749) (93,821)

CASH FLOWS FROM INVESTING ACTIVITIESPaymentsPurchase of non-current physical assets (689) (331)Net cash (used in) investing activities (689) (331)

Net increase/(decrease) in cash and cash equivalents (10,675) 7,091Cash and cash equivalents at the beginning of period 28,672 21,581CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 28 17,997 28,672

The Statement of Cash Flows should be read in conjunction with the accompanying notes

60

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Summary of Consolidated Account Appropriations and Income EstimatesFor the year ended 30 June 2013

2013 2013 2013 2012Estimate Actual Variance Actual Actual Variance

$'000 $'000 $'000 $'000 $'000 $'000DELIVERY OF SERVICESItem 76 Net amount appropriated to deliver services 76,354 71,561 (4,793) 71,561 78,906 (7,345)Amount Authorised by Other Statutes:- Lotteries Commission Act 1990 14,274 15,000 726 15,000 14,000 1,000- Salaries and Allowances Act 1975 802 932 130 932 779 153

Total appropriations provided to deliver services 91,430 87,493 (3,937) 87,493 93,685 (6,192)

CAPITALItem 146 Capital appropriations 2,700 2,039 (661) 2,039 15,500 (13,461)

2,700 2,039 (661) 2,039 15,500 (13,461)

GRAND TOTAL 94,130 89,532 (4,598) 89,532 109,185 (19,653)

Details of Expenses by ServiceArts Industry Support 31,820 32,236 416 32,236 36,985 (4,749)Recordkeeping and Archival Services 2,136 2,967 831 2,967 2,776 191Services provided to external agencies 57,474 55,637 (1,837) 55,637 61,266 (5,629)Total Cost of Services 91,430 90,840 (590) 90,840 101,027 (10,187)Less total income 0 (1,689) (1,689) (1,689) (2,213) 524Net Cost of Services 91,430 89,151 (2,279) 89,151 98,812 (9,663)Adjustments 0 (1,658) (1,658) (1,658) (5,127) 3,469Total appropriations provided to deliver services 91,430 87,493 (3,937) 87,493 93,685 (6,194)

Capital ExpenditurePurchase of non-current physical assets 2,700 2,039 (661) 2,039 15,500 (13,461)Capital Contribution (appropriation) 2,700 2,039 (661) 2,039 15,500 (13,461)

Other external agencies comprise the Art Gallery of WA, The Library Board of WA, Western Australian Museum and Perth Theatre Trust whose funding is provided through direct appropriation and services received free of charge from the Department of Culture and the Arts.Note 33 ‘Explanatory statement’ provides details of any significant variations between estimates and actual results for 2013 and between the actual results for 2013 and 2012.

63

Notes to the Financial Statements

For the year ended 30 June 2013

Note 1. Australian Accounting Standards

General

The Department’s financial statements for the year ended 30 June 2013 have been prepared in accordance with Australian Accounting Standards. The term ‘Australian Accounting Standards’ includes Standards and Interpretations issued by the Australian Accounting Standard Board (AASB).

The Department has adopted any applicable, new and revised Australian Accounting Standards from their operative dates.

Early adoption of standards

The Department cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements. There has been no early adoption of Australian Accounting Standards that have been issued or amended (but not operative) by the Department for the annual reporting period ended 30 June 2013.

Note 2. Summary of significant accounting policies

(a) General statement

The Department is a not-for-profit reporting entity that prepares general purpose financial statements in accordance with Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB as applied by the Treasurer’s instructions. Several of these are modified by the Treasurer’s instructions to vary application, disclosure, format and wording.

The Financial Management Act and the Treasurer’s instructions impose legislative provisions that govern the preparation of financial statements and take precedence over Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB.

Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements.

(b) Basis of preparation

The financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for land, buildings and infrastructure which have been measured at fair value.

The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated.

The financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars ($’000).

Note 3 ‘Judgements made by management in applying accounting policies’ discloses

64

judgements that have been made in the process of applying the Department’s accounting policies resulting in the most significant effect on amounts recognised in the financial statements.

Note 4 ‘Key sources of estimation uncertainty’ discloses key assumptions made concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(c) Reporting entity

The reporting entity comprises the Department of Culture and the Arts. The Department has no related bodies.

MissionThe Department’s mission is to provide leadership, support and services to ensure that Western Australians have easy and affordable access to a diverse range of innovative ideas, knowledge and cultural experiences.

The Department is predominantly funded by Parliamentary appropriations. The Department is supplemented by fees received for the provision of services that are charged out on a full cost recovery basis. The fees charged are determined by prevailing market forces. The financial statements encompass all funds through which the Department controls resources to carry on its functions.

ServicesThe Department provides the following services:

Service 1: Arts Industry SupportTo provide an integrated and unifying means of delivering policy and programs that will assist in the development of creative people, communities, economies and environments for the public of Western Australia.

Service 2: Recordkeeping and Archival Services

Service 3: Services to external agencies Ensures that corporate services are delivered to agencies within the Culture and Arts portfolio.

(d) Contributed equity

AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions. Capital appropriations have been designated as contributions by owners by TI 955 Contributions by Owners made to Wholly Owned Public Sector Entities and have been credited directly to Contributed equity.

The transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal. Refer also to note 27 ‘Equity’.

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(e) Income

Revenue recognitionRevenue is recognised and measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows:

Sale of goodsRevenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership transfer to the purchaser and can be measured reliably.

Provision of servicesRevenue is recognised by reference to the stage of completion of the transaction.

InterestRevenue is recognised as the interest accrues.

Service AppropriationsService Appropriations are recognised as revenues at fair value in the period in which the Department gains control of the appropriated funds. The Department gains control of appropriated funds at the time those funds are deposited to the bank account or credited to the ‘Amounts receivable for services’ (holding account) held at Treasury.

The Department receives funding from the Lotteries Commission under the provisions of Section 22 of the Lotteries Commission Act (1990). This provides for receipts based on five per cent of the net lotteries and games subscriptions received by the Lotteries Commission. Accordingly all funds have been received as at 30 June. This amount is recognised as Service Appropriations in the Statement of Comprehensive Income.

Net Appropriation DeterminationThe Treasurer may make a determination providing for prescribed receipts to be retained for services under the control of the Department. In accordance with the determination specified in the 2012-2013 Budget Statements, the Department retained $1.69 million in 2013 ($2.21 million in 2012) from the following:

▪ proceeds from fees and charges;

▪ Commonwealth specific purpose grants and contributions; and

▪ other departmental revenue.

Grants, donations, gifts and other non-reciprocal contributionsRevenue is recognised at fair value when the Department obtains control over the assets comprising the contributions, usually when cash is received.

Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

Royalties for Regions funds are recognised as revenue at fair value in the period in which the Department obtains control over the funds. The Department obtains control of the funds at the time the funds are deposited into the Department’s bank account.

GainsRealised and unrealised gains are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and some revaluations of non-current assets.

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(f) Property, plant and equipment

Capitalisation/expensing of assetsItems of property, plant and equipment costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income [other than where they form part of a group of similar items which are significant in total].

Initial recognition and measurementProperty, plant and equipment are initially recognised at cost.

For items of property, plant and equipment acquired at no cost or for nominal cost, the cost is the fair value at the date of acquisition.

Subsequent measurementSubsequent to initial recognition as an asset, the revaluation model is used the for the measurement of land and buildings and historical cost for all other property, plant and equipment. Land and buildings are carried at fair value less accumulated depreciation (buildings only) and accumulated impairment losses. All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.

Where market based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by reference to recent market transactions. When buildings are revalued by reference to recent market transactions, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount.

In the absence of market-based evidence, fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Where the fair value of buildings is determined on the depreciated replacement cost basis, the gross carrying amount and the accumulated depreciation are restated proportionately.

Land and buildings are independently valued annually by the Western Australian Land Information Authority (Valuation Services) and recognised annually to ensure that the carrying amount does not differ materially from the asset’s fair value at the end of the reporting period.

Refer also to note 21 ‘Property, plant and equipment’ for further information on revaluations.

DerecognitionUpon disposal or derecognition of an item or property, plant and equipment, any revaluation surplus relating to that asset is retained in the asset revaluation surplus.

Asset revaluation surplusThe asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in ‘note 21. Property, plant and equipment’.

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Depreciation All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits.

Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are:

Buildings 40 yearsLeasehold improvements 40 yearsPlant and equipment 5 to 10 yearsComputer hardware and software (a) 4 yearsFurniture and fittings 10 yearsCollections 0 to 100 years(a) Software that is integral to the operation of related hardware.

Works of art controlled by the Department are classified as property, plant and equipment. These are anticipated to have indefinite useful lives. Their service potential has not, in any material sense, been consumed during the reporting period and so no depreciation has been recognised.

Land is not depreciated.

(g) Intangible assets

Capitalisation/expensing of assetsAcquisitions of intangible assets costing $5,000 or more and internally generated intangible assets costing $50,000 or more are capitalised. The cost of utilising the assets is expensed (amortised) over their useful life. Costs incurred below these thresholds are immediately expensed directly to the Statement of Comprehensive Income.

Intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses.

Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life which is reviewed annually) on the straight line basis. All intangible assets controlled by the Department have a finite useful life and zero residual value.

Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life which is reviewed annually) on the straight line basis. All intangible assets controlled by the Department have a finite useful life and zero residual value.

The expected useful lives for each class of intangible asset are:

Software(a) 3 to 5 years(a) Software that is not integral to the operation of any related hardware

LicencesLicences have a finite useful life and are carried at cost less accumulated amortisation and accumulated impairment losses.

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Computer SoftwareSoftware that is an integral part of the related hardware is recognised as property, plant and equipment. Software that is not an integral part of the related hardware is recognised as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition.

Website costsWebsite costs are charged as expenses when they are incurred unless they relate to the acquisition or development of an asset when they may be capitalised and amortised. Generally, costs in relation to feasibility studies during the planning phase of a website, and ongoing costs of maintenance during the operating phase are expensed. Costs incurred in building or enhancing a website, to the extent that they represent probable future economic benefits that can be reliably measured, are capitalised.

(h) Impairment of assets

Property, plant and equipment and intangible assets are tested for any indication of impairment at the end of each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. Where an asset measured at cost is written down to recoverable amount, an impairment loss is recognised in profit or loss. Where a previously revalued asset is written down to recoverable amount, the loss is recognised as a revaluation decrement in other comprehensive income. As the Department is a not-for-profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of the asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs.

Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period irrespective of whether there is any indication of impairment.

The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value of future cash flows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at the end of each reporting period.

Refer to note 23 ‘Impairment of assets’ for the outcome of impairment reviews and testing.

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(i) Non-current assets (or disposal groups) classified as held for sale

Non-current assets (or disposal groups) held for sale are recognised at the lower of carrying amount and fair value less costs to sell, and are disclosed separately from other assets in the Statement of Financial Position. Assets classified as held for sale are not depreciated or amortised.

All Crown land holdings are vested in the Department by the Government. The Department of Regional Development and Lands (DRDL) is the only agency with the power to sell Crown land. The Department transfers the Crown land and any attached buildings to DRDL when the land becomes available for sale.

(j) Leases

Operating leases are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased properties.

(k) Financial instruments

In addition to cash, the Department has two categories of financial instrument:

▪ Loans and receivables; and

▪ Financial liabilities measured at amortised cost.

Financial instruments have been disaggregated into the following classes:

▪ Financial Assets ▪ Cash and cash equivalents ▪ Restricted cash and cash equivalents ▪ Receivables ▪ Amounts Receivable for Services

▪ Financial Liabilities ▪ Payables

Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or the face value. Subsequent measurement is at amortised cost using the effective interest method.

The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material.

(l) Cash and cash equivalents

For the purpose of the Statement of Cash Flows, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash on hand and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value.

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(m) Accrued salaries

Accrued salaries [refer to note 24 ‘Payables’] represent the amount due to staff but unpaid at the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. The Department considers the carrying amount of accrued salaries to be equivalent to its fair value.

The accrued salaries suspense account [refer to Note 17 ‘Restricted cash and cash equivalents’] consists of amounts paid annually into a suspense account over a period of 10 financial years to largely meet the additional cash outflow in each eleventh year when 27 pay days occur instead of the normal 26. No interest is received on this account.

(n) Amounts receivable for services (holding account)

The Department receives funding on an accrual basis. The appropriations are paid partly in cash and partly as an asset (holding account receivable). The accrued amount receivable is accessible on the emergence of the cash funding requirement to cover leave entitlements and asset replacement.

Refer to note 16 ‘Income from State Government’ and note 19 ’Amounts receivable for services’.

(o) Receivables

Receivables are recognised and carried at original invoice amount less an allowance for uncollectible amounts (i.e. impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written-off against the allowance account. The allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the Department will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30 days.

Refer also to note 2(k) ‘Financial Instruments’ and note 18 ‘Receivables’.

(p) Payables

Payables are recognised at the amounts payable when the Department becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as settlement is generally within 30 days.

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(q) Provisions

Provisions are liabilities of uncertain timing and amount and are recognised where there is a present legal or constructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period.

Refer to note 25 ‘Provisions’.

Provisions - Employee BenefitsAll annual leave and long service leave provisions are in respect of employees’ services up to the end of the reporting period.

Annual leaveThe liability for annual leave that is expected to be settled within 12 months after the end of the reporting period is recognised and measured at the undiscounted amounts expected to be paid when the liability is settled.

Annual leave that is not expected to be settled within 12 months after the reporting period is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

The provision for annual leave is classified as a current liability as the Department does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.

Long Service LeaveThe liability for long service leave that is expected to be settled within 12 months after the end of the reporting period is recognised and measured at the undiscounted amounts expected to be paid when the liability is settled.

Long service leave that is not expected to be settled within 12 months after the end of the reporting period is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

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Unconditional long service leave provisions are classified as current liabilities as the Department does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. Pre-conditional and conditional long service leave provisions are classified as non-current liabilities because the Department has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

An actuarial assessment of long service leave undertaken by PriceWaterHouseCoopers Actuaries at 30 June 2012 determined that the liability measured using the short-hand measurement technique above was not materially different from the liability determined using the present value of expected future payments. This calculation is consistent with the Department’s experience of employee retention and leave taken.

SuperannuationThe Government Employees Superannuation Board (GESB) and other fund providers administer public sector superannuation arrangements in Western Australia in accordance with legislative requirements. Eligibility criteria for membership in particular schemes for public sector employees varies according to commencement and implementation dates.

Eligible employees contribute to the Pension Scheme, a defined benefit pension scheme closed to new members since 1987, or the Gold State Superannuation Scheme (GSS), a defined benefit lump sum scheme closed to new members since 1995.

Employees commencing employment prior to 16 April 2007 who were not members of either the Pension Scheme or the GSS became non-contributory members of the West State Superannuation Scheme (WSS). Employees commencing employment on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). From 30 March 2012, existing members of the WSS or GESBS and new employees became able to choose their preferred superannuation fund provider. The Department makes contributions to GESB or other fund provider on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. Contributions to these accumulated schemes extinguish the Department’s liability for superannuation charges in respect of employees who are not members of the Pension Scheme or GSS.

The GSS is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, it is a defined contribution plan for agency purposes because the concurrent contributions (defined contributions) made by the Department to GESB extinguishes the agency’s obligations to the related superannuation liability.

The Department has no liabilities under the Pension Scheme or the GSS. The liabilities for the unfunded Pension Scheme and the unfunded GSS transfer benefits attributed to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS obligations are funded by concurrent contributions made by the Department to the GESB.

The GESB makes all benefit payments in respect of the Pension Scheme and GSS, and is recouped from the Treasurer for the employer’s share

Refer to note 2(r) ‘Superannuation Expense’.

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Provisions - other

Employment On-CostsEmployment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are included as part of ‘Other expenses’ and are not included as part of the Department’s ‘Employee benefits expense’. The related liability is included in ‘Employment on-costs provision’.

(r) Superannuation expense

The superannuation expense in the Statement of Comprehensive Income comprises of employer contributions paid to the GSS (concurrent contributions), the WSS, and the GESBS. The employer contribution paid to the GESB in respect of the GSS is paid back into the Consolidated Account by the GESB.

(s) Assets and services received free of charge or for nominal cost

Assets or services received free of charge or for nominal cost are recognised as income at the fair value of the assets and/or the fair value of those services that can be reliably measured and the Authority would otherwise pay for. A corresponding expense is recognised for services received. Receipts of assets are recognised in the Statement of Financial Position.

Assets or services received from other State Government agencies are separately disclosed under Income from State Government in the Statement of Comprehensive Income.

(t) Comparative figures

Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year.

Note 3. Judgements made by management in applying accounting policies

The preparation of financial statements requires management to make judgements about the application of accounting policies that have a significant effect on the amounts recognised in the financial statements. The Department evaluates these judgements regularly.

Operating lease commitmentThe Department has entered into a commercial lease for office accommodation and it has determined that the lessor retains substantially all the risks and rewards incidental to ownership. Accordingly, the lease has been classified as an operating lease.

Note 4. Key Sources of estimation uncertainty

Key estimates and assumptions concerning the future are based on historical experience and various other factors that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Long Service LeaveSeveral estimations and assumptions used in calculating the Department’s long service leave provision include expected future salary rates, discount rates, employee retention rates and expected future payments. Changes in these estimations and assumptions may impact on the carrying amount of the long service leave provision.

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Note 5. Disclosure of changes in accounting policy and estimates

Initial application of an Australian Accounting StandardThe Department has applied the following Australian Accounting Standards effective for annual reporting periods beginning on or after 1 July 2012 that impacted on the Department:

AASB 2011-9 AmendmentstoAustralianAccountingStandards-PresentationofitemsofOtherComprehensiveIncome[AASB1,5,7,101,112,120,121,132,133,134,1039,1049]

This Standard requires to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). There is no financial impact.

Voluntary changes in accounting policyThe Department did not make any voluntary changes to its Accounting Policy in 2012/13.

Future impact of Australian Accounting Standards not yet operativeThe Department cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements. Consequently, the Department has not applied early any of the following Australian Accounting Standards that have been issued and that may impact the Department. Where applicable, the Department plans to apply these Australian Accounting Standards from their application date:

Operative for reporting

periods beginning on/

after

AASB 9 FinancialInstruments

This Standard supersedes AASB 139 FinancialInstruments:RecognitionandMeasurement, introducing a number of changes to accounting treatments.

AASB 2012-6 AmendmentstoAustralianAccountingStandards-MandatoryEffectiveDateofAASB9 and TransitionDisclosures amended the mandatory application date of this Standard to 1 January 2015. The department has not yet determined the application or the potential impact of the Standard.

1 Jan 2015

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AASB 10 Consolidated Financial Statements

This Standard supersedes requirements under AASB 127 ConsolidatedandSeparateFinancialStatements and Int 112 Consolidation–SpecialPurposeEntities, introducing a number of changes to accounting treatments.

AASB 2012-10 AmendmentstoAustraliaAccountingStandards-TransitionGuidanceandOtherAmendments amends the mandatory application date of this Standard to 1 January 2014 for not-for-profit entities. The Department has not yet determined the application or the potential impact of the standard.

1 Jan 2014

AASB 11 JointArrangements

This Standard supersedes AASB 131 Interests in JointVentures, introducing a number of changes to accounting treatments.

AASB 2012-10 amends the mandatory application date of this Standard to 1 January 2014 for not-for-profit entities. The Department has not yet determined the application or the potential impact of the Standard.

1 Jan 2014

AASB 12 DisclosureofInterestsinOtherEntities

This Standard supersedes disclosure requirements under AASB 127 ConsolidatedandSeparateFinancialStatements and AASB 131 InterestsinJointVentures.

AASB 2012-10 amends the mandatory application date of this Standard to 1 January 2014 for not-for-profit entities. The Department has not yet determined the application or the potential impact of the standard.

1 Jan 2014

AASB 13 FairValueMeasurement

This Standard defines fair value, sets out a framework for measuring fair value and requires disclosures about fair value measurements. The Department has liaised with the Western Australia Land Information Authority (Valuation Services) to ensure that sufficient information will be provided to meet the disclosure requirements of this Standard. There is no financial impact.

1 Jan 2013

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AASB 119 EmployeeBenefits

This Standard supersedes AASB 119 (October 2010), making changes to the recognition presentation and disclosure requirements.

The Department does not have any defined benefit plans, and therefore the financial impact will be limited to the effect of discounting annual leave and long service leave liabilities that were previously measured at the undiscounted amounts.

1 Jan 2013

AASB 127 SeparateFinancialStatements

This Standard supersedes requirements under AASB 127 Consolidated and Separate Financial Statements, introducing a number of changes to accounting treatments.


1 Jan 2014

AASB 128 InvestmentsinAssociatesandJointVentures

This Standard supersedes AASB 128 InvestmentsinAssociates, introducing a number of changes to accounting treatments.


1 Jan 2014

AASB 1053 ApplicationofTiersofAustralianAccountingStandards

This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements. There is no financial impact.

1 Jul 2013

AASB 2010-2 AmendmentstoAustralianAccountingStandardsarisingfromReducedDisclosureRequirements[AASB1,2,3,5,7,8,101,102,107,108,110,111,112,116,117,119,121,123,124,127,128,131,133,134,136,137,138,140,141,1050&1052andInt2,4,5,15,17,127,129&1052]

This Standard makes amendments to Australian Accounting Standards and Interpretations to introduce reduced disclosure requirements for certain types of entities. There is no financial impact.

1 Jul 2013

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AASB 2010-7 AmendmentstoAustralianAccountingStandardsarisingfromAASB9(December2010)[AASB1,3,4,5,7,101,102,108,112,118,120,121,127,128,131,132,136,137,139,1023&1038andInt2,5,10,12,19&127]

This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 9 in December 2010.

AASB 2012-6 amended the mandatory application date of this Standard to 1 January 2015. The Department has not yet determined the application or the potential impact of the Standard.

1 Jan 2015

AASB 2011-2 AmendmentstoAustralianAccountingStandardsarisingfromtheTrans-TasmanConvergenceProject–ReducedDisclosureRequirements[AASB101&1054]

This Standard removes disclosure requirements from other Standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards for reduced disclosure reporting. There is no financial impact.

1 Jul 2013

AASB 2011-6 AmendmentstoAustralianAccountingStandards–ExtendingRelieffromConsolidation,theEquityMethodandProportionateConsolidation–ReducedDisclosureRequirements[AASB127,128&131]

This Standard extends the relief from consolidation, the equity method and proportionate consolidation by removing the requirement for the consolidated financial statements prepared by the ultimate or any intermediate parent entity to be IFRS compliant, provided that the parent entity, investor or venturer and the ultimate or intermediate parent entity comply with Australian Accounting Standards or Australian Accounting Standards – Reduced Disclosure Requirements. There is no financial impact.

1 Jul 2013

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AASB 2011-7 AmendmentstoAustralianAccountingStandardsarisingfromtheConsolidationandJointArrangementsStandards[AASB1,2,3,5,7,101,107,112,118,121,124,132,133,136,138,139,1023&1038andInt5,9,16&17]

This Standard gives effect to consequential changes arising from the issuance of AASB 10, AASB 11, AASB 127 SeparateFinancialStatements and AASB 128 InvestmentsinAssociatesandJointVentures. For not-for-profit entities it applies to annual reporting periods beginning on or after 1 January 2014. The Department has not yet determined the application or the potential impact of the Standard.

1 Jan 2013

AASB 2011-8 AmendmentstoAustralianAccountingStandardsarisingfromAASB13[AASB1,2,3,4,5,7,101,102,108,110,116,117,118,119,120,121,128,131,132,133,134,136,138,139,140,141,1004,1023&1038andInt2,4,12,13,14,17,19,131&132]

This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations as the result of issuing AASB 13 in September 2011. There is no financial impact.

1 Jan 2013

AASB 2011-10 AmendmentstoAustralianAccountingStandardsarisingfromAASB119(September2011)[AASB1,8,101,124,134,1049&2011-8andInt14]

This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 119 in September 2011. There is limited financial impact.

1 Jan 2013

AASB 2011-11 AmendmentstoAASB119(September2011)arisingfromReducedDisclosureRequirements

This Standard gives effect to Australian Accounting Standards – Reduced Disclosure Requirements for AASB 119 (September 2011). There is no financial impact.

1 Jul 2013

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AASB 2012-1 AmendmentstoAustralianAccountingStandards-FairValueMeasurement-ReducedDisclosureRequirements[AASB3,7,13,140&141]

This Standard establishes and amends reduced disclosure requirements for additional and amended disclosures arising from AASB 13 and the consequential amendments implemented through AASB 2011-8. There is no financial impact.

1 Jul 2013

AASB 2012-2 AmendmentstotheAustralianAccountingStandards-Disclosures-OffsettingFinancialAssetsandLiabilities[AASB7&132]

This Standard amends the required disclosures in AASB 7 to include information that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position. There is no financial impact.

1 Jan 2013

AASB 2012-3 AmendmentstoAustralianAccountingStandards-OffsettingFinancialAssetsandFinancialLiabilities[AASB132]

This Standard adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria, including clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement. There is no financial impact.

1 Jan 2014

AASB 2012-5 AmendmentstoAustralianAccountingStandardsarisingfromAnnualImprovements2009-11Cycle[AASB1,101,116,132&134andInt2]

This Standard makes amendments to the Australian Accounting Standards and Interpretations as a consequence of the annual improvement process. There is no financial Impact.

1 Jan 2013

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AASB 2012-6 AmendmentstoAustralianAccountingStandards-MandatoryEffectiveDateofAASB9andTransitionDisclosures[AASB9,2009-11,2010-7,2011-7&2011-8]

This Standard amends the mandatory effective date of AASB 9 FinancialInstruments to 1 January 2015. Further amendments are also made to consequential amendments arising from AASB 9 that will now apply from 1 January 2015 and to consequential amendments arising out of the Standards that will apply from 1 January 2013. There is no financial impact.

1 Jan 2013

AASB 2012-7 AmendmentstoAustralianAccountingStandardsarisingfromReducedDisclosureRequirements[AASB7,12,101&127]

This Standard adds to or amends the Australian Accounting Standards to provide further information regarding the differential reporting framework and the two tiers of reporting requirements for preparing general financial statement. There is no financial impact.

1 Jul 2013

AASB 2012-10 AmendmentstoAustralianAccountingStandards-TransitionGuidanceandOtherAmendments[AASB1,5,7,8,10,11,12,13,101,102,108,112,118,119,127,128,132,133,134,137,1023,1038,1039,1049,&2011-7andInt12]

This Standard makes amendments to AASB 10 and related Standards to revise the transition guidance relevant to the initial application of those Standards, and to clarify the circumstances in which adjustments to an entity’s previous accounting for its involvement with other entities are required and the timing of such adjustments.

This Standard was issued in December 2012. The Department has not yet determined the application or the potential impact of the Standard.

1 Jan 2013

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AASB 2012-11 AmendmentstoAustralianAccountingStandards-ReducedDisclosureRequirementsandOtherAmendments[AASB1,2,8,10,107,128,133,134&2011-4]

This Standard makes various editorial corrections to Australian Accounting Standards - Reduced Disclosure Requirements (Tier 2). These corrections ensure that the Standards reflect decisions of the AASB regarding the Tier 2 requirements.

This Standard also extends the relief from consolidation and the equity method (in the new Consolidation and Joint Arrangements Standards) to entities complying with Australian Accounting Standards - Reduced Disclosure Requirements. There is no financial impact.

1 Jul 2013

Note 6. Employee benefits expense

2013 2012$’000 $’000

Wages and salaries (a) 38,087 41,800Superannuation - defined contribution plans (b) 4,682 4,582Long service leave (c) 1,784 530Annual leave (c) 4,247 2,858Other related expenses 483 307

49,283 50,077

(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component.

(b) Defined contribution plans include West State, Gold State and GESB Super Scheme (contributions paid).

(c) Includes a superannuation contribution component.

Employment on-costs such as workers’ compensation insurance are included at note 11 ‘Other expenses’. The employment on-costs liability is included at note 25 ‘Provisions’.

82

Note 7. Supplies and services

2013 2012$’000 $’000

Catering 31 37Communications 157 188Consumables 145 156Contracts 45 263Equipment 174 210Freight 55 56Insurance & licences 103 202Leases 476 334Legal 23 13Management fees 296 206Professional fees 6,113 7,950Repairs & maintenance 220 144Temporary Personnel 403 306Travel 210 266Other 620 273

9,071 10,604

Note 8. Depreciation and amortisation expense

2013 2012$’000 $’000

DepreciationBuildings 828 858Leasehold improvements 6 7Furniture, fittings, plant, equipment, computer hardware and software

94 99

Artworks & Collection 7 7Total depreciation 935 971

AmortisationIntangible Assets 238 121Total amortisation 238 121

Total depreciation and amortisation 1,173 1,092

83

Note 9. Accommodation expenses

2013 2012$’000 $’000

Cleaning 124 98Electricity, gas and water 113 169Facilities management and accommodation 405 466Lease Rentals 1,327 1,015Repairs and maintenance 743 701

2,712 2,449

Note 10. Grants and subsidies

2013 2012$’000 $’000

RecurrentMajor Performing Arts Companies 9,557 9,765Arts Refurbishment Projects 1,492 3,765Major Arts Agency 11,857 18,324ScreenWest 3,250 2,002Swan Bell Foundation Trust 440 400Other 644 1,889

27,240 36,145

Note 11. Other expenses2013 2012$’000 $’000

Employment on-costs (a) (see note 6 ‘Employee benefits expense’)

88 581

Other (b) 273 74Refund of Revenue from Prior Years(c) 1,000 0

1,361 655

(a) Includes workers’ compensation insurance and other employment on-costs. The on-costs liability associated with the recognition of annual and long service leave liability is included at note 24 ‘Provisions’. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not included in employment on-costs.

(b) Includes bad debts written off and audit fee. Refer also to note 36. Remuneration of auditor.(c) Section 21(3) transfer of cash in relation to Cultural Events Package.

Note 12. User charges and fees

2013 2012$’000 $’000

User charges 294 381294 381

84

Note 13. Commonwealth grants and contributions

2013 2012$’000 $’000

Recurrent 360 493360 493

Included in the recurrent grants for 2012-13 is a grant from the Australia Council for the Artist in Residence Initiative, a grant from the Office for the Arts for the Indigenous visual arts professional development and Commonwealth funding as per Service Delivery Agreement for the provision of services to the Indian Ocean Territories (Christmas and Cocos [Keeling] Islands).

Note 14. Other revenue

2013 2012$’000 $’000

Recoup of prior year expenses 4 33Recoups of salaries and worker's compensation costs

50 116

Sponsorship 0 9Rental 183 119Other (a) 798 1,062

1,035 1,339

(a) ‘Other’ comprise mainly of recoups of rent and associated cost in relation to accommodation at 140 William Street Perth, and $250,000 received for Major Touring Project.

Note 15. Net gain (loss) on disposal of non-current assets.

Cost of disposal of non-current assetsPlant, equipment 0 (5)Net gain/(loss) 0 (5)

85

Note 16. Income from State Government

2013 2012$’000 $’000

Appropriation received during the year:Service appropriations (a) 87,493 93,685

87,493 93,685

Assets transferred from/(to) other State government agencies during the period: (b)

• Artworks 2 (40)Total assets transferred 2 (40)

Royalties for Regions Fund 175 24175 24

Services received free of charge from other State government agencies during the period (c)

Determined on the basis of the following estimates provided by agencies:• State Solicitor’s Office - legal services 12 12• Department of Finance - Integrated

Procurement Services115 109

• Department of Finance - Accommodation 39 44• Department of Finance - Fit-out 304 205

470 370

88,140 94,039

(a) Service appropriations fund the net cost of services delivered. Appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the budgeted depreciation expense for the year and any agreed increase in leave liabilities during the year.

(b) Discretionary transfers of assets (including grants) and liabilities between State Government agencies are reported under income from State Government. Transfers of assets and liabilities in relation to a restructure of administrative arrangements are recognised as distribution to owners by the transferor and contribution by owners by the transferee under AASB 1004 in respect of net assets transferred. Other non-discretionary non-reciprocal transfers of assets and liabilities designated as contributions by owners under TI 955 are also recognised directly to equity.

(c) Assets or services received free of charge or for nominal cost are recognised as revenue at fair value of the assets and/or services that can be reliably measured and which would have been purchased if they were not donated. Contributions of assets or services in the nature of contributions by owners are recognised direct to equity.

86

Note 17. Restricted cash and cash equivalents

2013 2012$’000 $’000

CurrentCommonwealth funds - service delivery arrangement (a) 515 294

515 294Non-currentAccrued salaries suspense account (b) 1,575 1,285

1,575 1,285(a) The Department of Culture and the Arts and the Commonwealth Government have a Service Delivery

Arrangement for the provision of services to the Indian Ocean Territories. The Commonwealth Government recoups the Department the costs associated with these services (refer to note 41 ‘Service Delivery Arrangement) In addition, there is also a Service Delivery Agreement with Commonwealth Government for the provision of services to the Arts In Residence.

(b) Funds held in the suspense account used only for the purpose of meeting the 27th pay in a financial year that occurs every 11 years.

Note 18. Receivables

2013 2012$’000 $’000

CurrentReceivables 5,778 4,673GST receivable 263 1,058Total current 6,041 5,731

Non currentLoans and advances:• Other debtors 132 168Total non current 132 168Total receivables 6,173 5,899

Reconciliation of changes in the allowance for impairment of receivables:Balance at start of period 0 12Amounts written off during the period 0 (12)Balance at end of period 0 0

The Department does not hold any collateral as security of other credit enhancements relating to receivables.

87

Note 19. Amounts receivable for services

2013 2012$’000 $’000

Non-current 4,614 3,6704,614 3,670

Represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability.

Note 20. Other assets

2013 2012$’000 $’000

CurrentPrepayments 174 68Accrued Income 38 170Total current 212 238

88

Note 21. Property, plant and equipment2013 2012$’000 $’000

LandAt fair value (a) 21,220 20,830

21,220 20,830BuildingsAt fair value (a) 30,325 31,472Works in progress 342 0

30,667 31,472

Leasehold improvementsAt cost 259 259Accumulated depreciation (64) (58)Accumulated impairment losses 0 0

195 201

Plant and equipmentAt cost 753 683Accumulated depreciation (567) (482)Accumulated impairment losses 0 0

186 201

Furniture and fittingsAt cost 67 50Accumulated depreciation (24) (18)Accumulated impairment losses 0 0

43 32

CollectionsAt fair value 1,477 1,477Accumulated Depreciation (164) (157)Accumulated impairment losses 0 0

1,313 1,320

Works of artAt fair value 173 173At cost 0 0Accumulated impairment losses 0 0

173 173

53,797 54,229(a) Land and buildings were revalued as at 1 July 2012 by the Western Australian Land Information Authority

(Valuation Services). The valuations were performed during the year ended 30 June 2013 and recognised at 30 June 2013. In undertaking the revaluation, fair value was determined by reference to market values for land: $21,220,000 (2012:$20,830,000) and buildings:$30,325,000 (2012: $31,472,000). For the remaining balance, fair value of land and buildings was determined on the basis of depreciated replacement cost. See note 2(f) ‘Property, plant and equipment’.

89

Reconciliations of the carrying amounts of property, plant, equipment at the beginning and end of the reporting period are set out in the table below.

Note 22. Intangible assets

2013 2012$’000 $’000

Computer softwareAt cost 1,011 796Accumulated amortisation (521) (327)Accumulated impairment losses 0 0

490 469ReconciliationCarrying amount at start of year 469 112Additions/(Disposals) 259 452Transfers 0 26Amortisation expense (238) (121)Carrying amount at end of year 490 469

Land Buildings Leasehold improvements

Plant, equipment, computer

hardware & software

Furniture and Fittings

Works of Art and

Collections

Total

2013 $000 $000 $000 $000 $000 $000 $000

Carrying amount at start of period 20,830 31,472 201 201 32 1,493 54,229Additions 70 17 87Work in progress 342 342Disposals 0Revaluations 390 (318) 72Transfers (a) 2 2Depreciation and amortisation (829) (6) (87) (6) (7) (935)Carrying amount at end of year 21,220 30,667 195 186 43 1,486 53,797



hardware & software


Works of Art and

Collections

Total

2012 $000 $000 $000 $000 $000 $000 $000

Carrying amount at start of period 20,280 33,547 211 222 41 1,540 55,841Additions 80 104 184Disposals (3) - (3) (40) (46)Revaluations 550 (1,000) (450)Transfers (a) (297) (32) (329)Depreciation and amortisation (858) (7) (93) (6) (7) (971)Carrying amount at end of year 20,830 31,472 201 201 32 1,493 54,229

90

Note 23. Impairment of assetsThere were no indications of impairment to property, plant and equipment, or intangible assets at 30 June 2013.

The Department held no goodwill or intangible assets with an indefinite useful life during the reporting period. At the end of the reporting period there were no intangible assets not yet available for use.

All surplus assets at 30 June 2013 have either been classified as assets held for sale or written-off.

Note 24. Payables

2013 2012$’000 $’000

CurrentTrade payables 1,089 6,722Grants payable 19,410 24,003Accrued Expenses 768 652Accrued Salaries 484 1,115Accrued Superannuation 63 111Others 64 0Total Current 21,878 32,603

Grants payable is recognised where contracts have been entered into with Departmental clients prior to June 30, but not paid.

Note 25. Provisions2013 2012$’000 $’000

CurrentEmployee benefits provisionAnnual leave (a) 3,468 3,488Long service leave (b) 3,521 5,447

6,989 8,935

Other provisionsEmployment on-costs (c) 1,282 1,570

8,271 10,505

Non-currentEmployee benefits provisionLong service leave (b) 4,102 2,138

Other provisionsEmployment on-costs (c) 394 221

4,496 2,359(a) Annual leave liabilities have been classified as current as there is no unconditional right to defer

settlement for at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:



hardware & software


Works of Art and

Collections

Total

2013 $000 $000 $000 $000 $000 $000 $000

Carrying amount at start of period 20,830 31,472 201 201 32 1,493 54,229Additions 70 17 87Work in progress 342 342Disposals 0Revaluations 390 (318) 72Transfers (a) 2 2Depreciation and amortisation (829) (6) (87) (6) (7) (935)Carrying amount at end of year 21,220 30,667 195 186 43 1,486 53,797



hardware & software


Works of Art and

Collections

Total

2012 $000 $000 $000 $000 $000 $000 $000

Carrying amount at start of period 20,280 33,547 211 222 41 1,540 55,841Additions 80 104 184Disposals (3) - (3) (40) (46)Revaluations 550 (1,000) (450)Transfers (a) (297) (32) (329)Depreciation and amortisation (858) (7) (93) (6) (7) (971)Carrying amount at end of year 20,830 31,472 201 201 32 1,493 54,229

91

2013 2012$’000 $’000

Within 12 months of the end of the reporting period 2,629 2,432More than 12 months after the reporting period 839 1,056

3,468 3,488(b) Long service leave liabilities have been classified as current where there is no unconditional right to

defer settlement for at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

2013 2012$’000 $’000

Within 12 months of the end of the reporting period 1,784 1,976More than 12 months after the reporting period 5,839 5,610

7,623 7,586(c) The settlement of annual and long service leave liabilities gives rise to the payment of employment

on-costs including workers’ compensation insurance. The provision is the present value of expected future payments. The associated expense, apart from the unwinding of the discount (finance cost), is disclosed in note 11 ‘Other expenses’.

Movement in Other Provisions

2013 2012$’000 $’000

Movements in each class of provisions during the financial year, other than employee benefits, are set out below:

Carrying amount at start of period 1,791 1,174Additional provisions recognised 0 617Payments/other sacrifices of economic benefits (115) 0Carrying amount at end of period 1,676 1,791

Note 26. Other liabilities

2013 2012$’000 $’000

CurrentGrant Received in advance 250 500Unclaimed monies 1 1Other 82 3Total Current 333 504

92

Note 27. Equity

The Government holds the equity interest in the Department on behalf of the community. Equity represents the residual interest in the net assets of the Department. The asset revaluation surplus represents that portion of equity resulting from the revaluation of non-current assets.

Contributed equity

2013 2012$’000 $’000

Balance at start of period 9,491 875

Contributions by ownersCapital appropriation 2,039 15,500Total contributions by owners 2,039 15,500

Distributions to ownersTransfer of assets to other agencies (80)Other transfer ( Art Gallery WA) (6,671)Transfer to Perth Theatre Trust (133)Total distributions to owners 0 (6,884)

Balance at end of period 11,530 9,491

Reserves

2013 2012$’000 $’000

Asset revaluation surplusBalance at start of period 41,880 42,330Net revaluation increments/(decrements):• Land 390 550• Buildings (318) (1,000)Net revaluation for the period 72 (450)

Balance at end of period 41,952 41,880

Accumulated surplus/ (deficit)

Balance at start of period (4,165) 610Result for the period (1,012) (4,775)Balance at end of period (5,177) (4,165)

Total Equity at end of period 48,305 47,206

93

Note 28. Notes to the Statement of Cash Flows

Reconciliation of cash

Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

2013 2012Cash and cash equivalents 15,907 27,093Restricted cash and cash equivalents (refer to note 17 Restricted cash and cash equivalents)

2,090 1,579

17,997 28,672

Reconciliation of net cost of services to net cash flows provided/(used in) operating activities

2013 2012$’000 $’000

Net cost of services (89,151) (98,814)

Non-cash items:Depreciation and amortisation expense (note 8) 1,173 1,092Services received free of charge (note 16) 470 370Net loss on sale of property, plant and equipment (note 15)

0 5

(Increase)/decrease in assets:Current receivables (1,105) (1,586)Other current assets 26 (207)Non current receivables 36 32

Increase/(decrease) in liabilities:Current payables (10,710) 5,012Current provisions (2,234) 1,631Non-current provisions 2,137 (1,338)Other Current Liabilities (171) 501Net GST receipts/(payments) (a) 780 (519)Net cash (used in) operating activities (98,749) (93,821)

(a) This is the net GST paid/received, i.e. cash transactions

94

Note 29. Services provided free of charge

2013 2012$’000 $’000

During the period the following services were provided to other agencies free of charge for functions of other Agencies:• Art Gallery of WA 5,424 5,855• Library and Information Services of WA 13,889 15,068• Perth Theatre Trust 2,783 2,765• ScreenWest 2,117 1,173• Western Australian Museum 16,918 18,250

41,131 43,111

Note 30. Commitments

Non cancellable operating lease commitments

2013 2012$’000 $’000

Commitments for minimum lease payments are payable as follows:Within 1 year 2,721 1,916Later than 1 year and not later than 5 years 14,438 10,045Later than 5 years 23,369 16,167

40,528 28,128

The Department has entered into a property lease which is a non-cancellable lease with a five year term, with rent payable monthly in advance. Contingent rent provisions within the lease agreement require that the minimum lease payments shall be increased by the lower of CPI or 4% per annum. During 2012-13, the Department entered into lease in relation to Wellington Street, resulting in an increase in lease commitments.

Capital expenditure commitments

2013 2012$’000 $’000

Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in Within 1 year 9,726 200Later than 1 year and not later than 5 years 360,160 250,400Later than 5 years 63,400 179,400

433,286 430,000

The capital expenditure commitments include amounts of $428.3 million for the building of a New State Museum:

95

Other expenditure commitments

2013 2012$’000 $’000

Grant and other commitments contracted for at the end of the reporting period but not recognised as liabilities, are payable as follows.Within 1 year 993 313Later than 1 year and not later than 5 years 17,364 23,954

18,357 24,267

Note 31. Contingent liabilities

Apart from to the liabilities included in the financial statements, the Department is not aware of any contingent liability existing as at 30th June 2013.

Note 32. Events occurring after the end of the reporting period.

The Department is not aware of any event occurring after balance sheet date that would materially affect the financial statements.

Note 33. Explanatory statement

Significant variations between estimates and actual results for income and expense as presented in the financial statement titled ‘Summary of Consolidated Account Appropriations and Income Estimates’ are shown below. Significant variations are considered to be those greater than 10% or $5 million.

Total appropriations provided to deliver services

Significant variances between estimate and actual results for 2013 There was no significant variance in the total appropriations provided to deliver services.

Significant variances between actuals for 2013 and 2012Significant decrease in the total appropriations due to increase appropriation provided in 2011-12 in respect of Francis Street demolition and to deliver services.

Service Expenditure

Significant variances between estimate and actual results for 2013

2013 2013 VarianceEstimate Actual

$’000 $’000 $’000

Recordkeeping and Archival Services 2,136 2,967 831 (a)

Services provided to external agencies 57,474 55,637 (1,837) (b)

(a) The increase is mainly a result of increase in supplies and services expenditure.(b) The decrease is due to reduced expenditure related to the New Museum Planning costs and projects

within the global maintenance program.

96

Significant variances between actual results for 2013 and 2012

2013 2012 Variance$’000 $’000 $’000

Services provided to external agencies 55,637 61,266 (5,629) (a)

(a) Significant decrease in the total appropriations due to increase appropriation provided in 2011-12 in respect of Francis Street demolition and Ignite Funding to deliver services, which did not recur in 2012-13.

2013 2012 Variance$’000 $’000 $’000

Total Income 1,689 2,213 (524) (a)

(a) The decrease is due to a reduction in Other Revenue as no unused grant refunds received during 2012-13.

Capital contribution

Significant variances between estimate and actual results for 2013

2013 2013 VarianceEstimate Actual

$’000 $’000 $’000

Capital Contribution 2,700 2,039 (661)

The decrease in capital contribution was due to deferred funding for the New State Museum.

Significant variances between actual results for 2013 and 2012

2013 2012 Variance$’000 $’000 $’000

Capital Contribution 2,039 15,500 13,461

The decrease in capital contribution was mainly due to additional funding received during 2011-12 for the completion of the State Theatre Centre, which did not recur in 2012-13.

97

Note 34. Financial instruments(a) Financial risk management objectives and policies

Financial Instruments held by the Department are cash and cash equivalents, restricted cash and cash equivalents, loans and receivables, and payables. The Department has limited exposure to financial risks. The Department’s overall risk management program focuses on managing the risks identified below.

Credit riskCredit risk arises when there is the possibility of the Department’s receivables defaulting on their contractual obligations resulting in financial loss to the Department.

The maximum exposure to credit risk at the end of the reporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any allowances for impairment, as shown in the table at Note 34(c) ‘Financial Instruments Disclosures’ and Note 18 ‘Receivables’.

Credit risk associated with the Department’s financial assets is minimal because the main receivable is the amounts receivable for services (holding account). For receivables other than government, the Department trades only with recognised, creditworthy third parties. The Department has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the Department’s exposure to bad debts is minimal. At the end of the reporting period there were no significant concentrations of credit risk.

Liquidity riskLiquidity risk arises when the Department is unable to meet its financial obligations as they fall due.

The Department is exposed to liquidity risk through its trading in the normal course of business.

The Department has appropriate procedures to manage cash flows including drawdowns of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Market RiskMarket risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the Department’s income or the value of its holdings of financial instruments.

The Department does not trade in foreign currency and is not materially exposed to other price risks. The Department is not exposed to market risk for changes in interest rates as all cash, restricted cash and cash equivalents are non-interest bearing and the department has no borrowings.

98

(b) Categories of financial instruments

The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are:

2013 2012$’000 $’000

Financial AssetsCash and cash equivalents 15,907 27,093Restricted Cash and cash equivalents 2,090 1,579Loans and receivables(a) 10,524 8,511

Financial LiabilitiesFinancial Liabilities measured at amortised cost

21,878 32,603

(a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable).

99

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101

Note 35. Remuneration of senior officers-OutstandingThe number of senior officers, whose total fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year fall within the following bands are:

2013 201280,001 - 90,000 1 0 100,001 - 110,000 1 0 150,001 - 160,000 1 1 170,001 - 180,000 0 1 180,001 - 190,000 1 1 250,001 - 260,000 1 0 270,001 - 280,000 0 1

$000 $000Base remuneration and superannuation 670 666Annual leave and long service leave accruals 28 28Other benefits 85 103Total remuneration of senior officers 783 797

The total remuneration includes the superannuation expense incurred by the Department in respect of senior officers.

Note 36. Remuneration of auditorRemuneration payable to the Auditor General in respect of the audit for the current financial year is as follows:

Auditing the accounts, financial statements and 123 62key performance indicators

Remuneration of auditor comprises $61,400 relating to the 2012 audit and an accrual of $61,400 relating to the 2013 audit. The expense is included in note 11 ‘Other Expenses’

Note 37. Related bodiesThe Department has no related bodies.

Note 38. Affiliated bodies

The Department provides grants to non-government affiliated bodies for administrative support. In accordance with Treasurer’s Instruction 951, the details of financial assistance provided to the non-government affiliated bodies are shown in the table below. A full list showing details of all grants provided to non-government bodies has been included in the grants lists attached to and forming part of the annual report.

2013 2012$’000 $’000

Affiliated BodyArt on the Move 460 462Propelarts 390WA Playwrights Consortium 77 76WA Youth Theatre Company 79Writing WA 173

1,100 617

102

Note 39. Special purpose accounts

Special Purpose Account - section 16(1)(b) of FMA

Arts Lotteries Trust Account$’000 $’000

Balance at start of the period 0 0Receipts 15,000 13,000Payments (15,000) (13,000)Balance at end of the period 0 0

Note 40. Supplementary financial information

(a) Write-offsDuring the financial year $25,072 (2012: $12,100) in bad debts was written off under the authority of:

$’000 $’000The accountable authority 25 12

25 12

(b) Loss through theft, defaults and other causesThere were no losses through theft, defaults and other causes.

(c) Gifts of public propertyThere were no gifts of public property provided by the Department.

Note 41. Service Delivery Arrangement - Commonwealth Grant-Outstanding

The Department of Culture and the Arts and the Commonwealth Government have entered into a Service Delivery Arrangement for the provision of services to the Indian Ocean Territories (Christmas and Cocos [Keeling] Islands). In addition, there is also a Service Delivery Agreement with Commonwealth Government for the provision of services to the Arts In Residence. The Commonwealth Government reimburses the Department any costs incurred in association with these services, as detailed below:

Balance at the start of the year 294 313Receipts 251 138Payments (30) (157)Balance at the end of the year 515 294

Documents

Department of Culture and the Arts Annual Report 2012 2013