Performance Information for Outcome 2

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During 2008-09, Finance met the majority of the performance targets that contributed to the outcome of improved and more efficient government operations. The earlier part of this chapter provided detailed information on significant departmental activities and achievements. Assessments against Finance’s 2008-09 Portfolio Budget Statements performance targets for Outcome 2 (below) provide further information on the department’s performance during the reporting period.

Table 4: Performance Information for Outcome 2

Output Group 2.1: Government Business

Output 2.1.1 – Government Business Enterprises Ownership and Divestment
Key Performance Indicators	2008-09 Target	Result
Sale of ASC Pty Ltd.	Progressing the sale of ASC Pty Ltd within the timing and budget set by the Australian Government.	The government announced on 26 February 2009 that the sale of ASC Pty Ltd, formerly the Australian Submarine Corporation, would not proceed at this time.
Provision of advice on operations, financial forecasts and performance of GBEs and other commercial entities.	Briefings on Corporate Plans and progress reports to be provided to the Minister within four weeks of receipt.	Mostly achieved All Corporate Plans and Statements of Corporate Intent were reviewed within four weeks of receipt and timely advice was submitted to the Minister. In some cases, briefings were not provided to the Minister within four weeks of receipt due to the need to consult with entities and joint shareholder departments.
	Key issues briefs to be provided twice a year.	Achieved Half-yearly update briefs were provided to the Minister in a timely manner.
	Quarterly meetings with Australia Post, Medibank Private Ltd and Defence Housing Australia. At least annual meetings with all other GBEs and commercial entities oversighted.	Achieved There was regular interaction with all GBEs and other stakeholders during 2008-09 on a basis sufficient to support timely and well-informed advice to Ministers.

Output 2.1.2 – Insurance and Risk Management
Key Performance Indicators	2008-09 Target	Result
Fund member satisfaction with the quality, relevance and timeliness of advice and services.	Members overall satisfaction score exceeds 80 per cent as measured in the overall rating by fund members in Comcover’s annual satisfaction survey.	Achieved The 2008 satisfaction survey found that of the 178 fund members that completed the survey, 86 per cent were satisfied with the quality, relevance and timeliness of Comcover’s advice and services.
Promote best practice risk management in fund member agencies.	Fund member agencies’ overall agency average benchmarking scores exceed 5.8 as measured by improvement in Comcover’s annual Benchmarking Risk Management Survey.	Achieved The 2008-09 benchmarking survey score was 6.0, indicating that agencies had continued to improve the implementation of their risk management frameworks.
Adequate equity is retained within the range approved by the government to fund all known and estimated	Equity is maintained within the $125 million to $180 million range.	Achieved Comcover’s equity as at 30 June 2009 was approximately $170 million.
Fund member agencies participate in one or more of Comcover's services (such as benchmarking, training, public seminars and forums, and risk management services).	The percentage of fund member agencies participating exceeds 80 per cent.	Achieved 84 per cent of Comcover fund member agencies participated in one or more of Comcover’s services.
Legal costs are reduced as a proportion of total claim costs.	The proportion of legal costs to total claims costs is less than 33 per cent by the end of 2009-10.	On track Comcover is on track to achieve the target of 33 per cent by the end of 2009-10.

Output 2.1.3 – Special Claims and Land Policy
Key Performance Indicators	2008-09 Target	Result
Provide regular advice on land and public works policy.	Provision of high quality, timely and relevant advice to stakeholders, including the Public Works Committee on land and public works policy within the required timeframe.	Achieved Feedback from the Minister on briefings provided by Finance has indicated satisfaction with the frequency, timeliness and relevance of the department’s advice.
Provide policy advice on discretionary compensation mechanisms.	Provision of high quality, timely and relevant advice to stakeholders on the discretionary compensation mechanisms as required.	Achieved Feedback from the Minister on briefings provided by Finance has indicated satisfaction with the frequency, timeliness and relevance of the department’s advice. External review of claims by the Commonwealth Ombudsman did not lead to qualifications. Finance allocated additional resources during the year to match a growth in requests and implemented additional systems to monitor the progress of requests. Finance also implemented a procedural fairness initiative, which provided higher levels of transparency and fairness to claimants.
Issues managed effectively and resolved in as timely a manner as possible.	Complete 50 per cent of act of grace/waiver cases within 21 days. Complete 70 per cent of act of grace/waiver cases within 35 days.	Achieved Finance completed 60 per cent of cases within 21 days and 77 per cent of cases within 35 days.

Output Group 2.2: Property and Construction

Output 2.2.1 – Property Management
Key Performance Indicators	2008-09 Target	Result
Meet tenant needs to an acceptable level.	80 per cent of tenants rate services from good to excellent as measured through survey.	Partially achieved Finance conducted two surveys during 2008-09. In the December 2008 survey 62 per cent of respondents rated the services good or excellent, in the June 2009 survey 87 per cent of respondents rated the services good or excellent, providing an annual average score of 74.5 per cent. The increase in satisfaction levels was a result of improved communication and regular meetings between the landlord and tenants.
Properties within the portfolio to be assessed for heritage values and, where required, have in place Heritage Management Plans in accordance with the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).	100 per cent of property portfolio by June 2009.	Partially achieved Finance has completed or started assessments and Heritage Management Plans for 100 per cent of high and medium risk properties. The department has scheduled assessments of lower risk properties for 2009-10.
Commercial buildings within the portfolio have measured Australian Building Greenhouse Ratings (ABGRs) as well as energy and water audits in place.	100 per cent of property portfolio by June 2009.	Achieved In May 2008, the ABGR rating tool was rebranded to the National Australian Built Environment Rating System (NABERS). A NABERS rating assessor rated the commercial buildings within the portfolio for energy and water to provide an indicative benchmark for the portfolio. An auditor also completed energy and water audits to identify cost effective measures to improve the energy and water performance of the commercial buildings. Finance is implementing these measures on a progressive basis throughout the department’s commercial portfolio.
Return a management expense ratio in alignment with market benchmarks.	No greater than 0.8 per cent of the portfolio value.	Achieved The management expense ratio for 2008-09 was 0.78 per cent.
Rate of return after competitive neutrality payments for asset revaluations and for opening fair market value (excluding asset revaluations).	At least 8.0 per cent including asset revaluations and 6.0 per cent for opening fair market value.	Not achieved The rate of return on opening fair value for 2008-09 was 4.79 per cent, which was lower than forecast due to higher than budgeted costs and taxes. The total rate of return was 2.85 per cent, which was lower than forecast as a result of the reduction in the property portfolio’s value due to the global financial crisis.

Output 2.2.2 – Major Projects
Key Performance Indicators	2008-09 Target	Result
For projects directed by the government, the output will manage the project from first pass to the second pass budget approval process for Commonwealth major non-Defence capital works within 12 months of receipt of project.	90 per cent of projects achieve second pass approval within 12 months of receipt of project.	The government did not direct any project within the Finance portfolio to be prepared for second stage consideration in the 2008-09 financial year.
Completion of projects within budget and agreed timeframe to meet client needs as agreed by the Australian Government.	Christmas Island Immigration Detention Centre to reach completion of Defects Liability and issue Final Certificate in November 2008.	Not achieved As at 30 June 2009 one defect item remained outstanding and a Final Certificate has been held over until this has been rectified. Subject to access to the site, Finance expects to reach completion in October 2009.
	National Portrait Gallery to reach practical completion in September 2008.	Achieved The building reached practical completion in September 2008 and was opened to the public on 3 December 2008.
	ASIO Central Office Project to have the building design completed by June 2009.	Not achieved As at 30 June 2009, the base building design was 50 per cent complete and the remainder of the design (excluding fit-out) was scheduled to be completed in July 2010. The change to the forecast design completion date is a result of a refinement of the design program during the project-planning phase and a delay to the project in August 2008 while awaiting a government decision on additional funding.
	Public Works Committee (PWC) approval of ANZAC Park West fit-out and remaining base building works by December 2008.	Not achieved The PWC hearing was deferred pending the identification of a tenant. The PWC hearing took place on 4 August 2009. Subject to PWC’s recommendation and parliamentary approval, the works are scheduled for practical completion in December 2010.
	The Royal Australian Mint to reach practical completion in October 2009.	Partially achieved Practical completion of the Royal Australian Mint Project Process Building stage occurred on 20 March 2009. Final practical completion is scheduled for December 2009 when the separate Administration Building stage is completed.

Output Group 2.3: Procurement Management

Output 2.3.1 – Procurement Framework
Key Performance Indicators	2008-09 Target	Result
Effective management of the Australian Government procurement policy framework.	Provision of timely and relevant advice to the government on procurement policy matters as required.	Achieved Finance maintained the framework, consulted with stakeholders and provided advice to Ministers in a timely manner.
Timely advice to agencies on the operation of the procurement policy framework.	Satisfaction rating of ‘Good’ or better from 75 per cent of agencies attending procurement seminars.	Achieved Finance provided timely advice in response to agencies’ queries about procurement policy. Finance received a satisfaction rating of ‘Good’ or better from 86 per cent of agencies that provided feedback on procurement seminars conducted by Finance.
High satisfaction of clients of the master media agency contractor(s) in relation to the central advertising system.	High satisfaction ratings in surveys from 75 per cent of clients of the master media agency contractor(s) in relation to the central advertising system.	Achieved 75 per cent of clients were either ‘satisfied’ or ‘very satisfied’ with the non-campaign master media agency’s performance for the period when averaged across 23 performance indicators. 75 per cent of clients were either ‘satisfied’ or ‘very satisfied’ with the campaign master media agency’s performance for the period when averaged across 28 performance indicators.
AusTender, the Australian Government’s whole-of-government procurement notification and reporting systems and electronic tendering system, meets business needs.	AusTender availability is 99 per cent during business hours (ACT local time).	Achieved The AusTender system was available for 99.8 per cent of business hours (ACT local time) during 2008-09.

Output 2.3.2 – Coordinated Procurement Contracting
Key Performance Indicators	2008-09 Target	Result
Effective and efficient coordinated contracts coordination outcomes.	Initial scoping studies concluded by September 2008 and new arrangements implemented within timeframes set by the government.	Mostly achieved Scoping studies for the licensing of Microsoft products, travel services and telecommunications, as well as major office machines, desktop computers and accounting services were completed during the financial year. Coordinated procurement arrangements were established within the timeframes set by the government, with a Volume Sourcing Agreement established with Microsoft on 19 January 2009 and coordinated procurement arrangements for travel services announced on 11 March 2009.

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