Management of financial resources

Asset management

The department’s asset management strategy focuses on efficient asset utilisation and allows the department to identify underperforming assets. The department operates within a controlled environment at Parliament House and the risk of loss for the majority of assets is minimal.

A stocktake of plant and portable and attractive assets was completed during 2014–15. The department completed a desktop review of the office machines and furniture and fittings asset classes. Impairment testing was undertaken during the stocktake. No material impairment adjustments were required.

The furniture replacement project continued during 2014–15. Cash reserves and departmental capital budget funding were used to replace furniture items in departmental offices and the offices of certain parliamentarians. Ninety-six per cent of offices had been refurbished as at 30 June 2015 at a cost of $2.995 million. Phase one of the project is under budget and is scheduled for completion in late 2015. Through an existing panel arrangement, the department replaced meeting and visitor chairs in departmental offices. Quotes were sought to replace meeting chairs in executive offices.

During 2014–15, phase two of the Table Offices Production System went live. This system at a cost of $2.258 million replaces the ageing document production system and will enable more efficient creation and publication of chamber documents. Other projects included the commencement of the redevelopment of the department’s intranet and completion of the development of a new online booking system (the Venue Management System) for school groups and committee rooms in Parliament House at a cost of $0.284 million.

Purchasing

In addition to the asset purchases mentioned above, contracts were entered into for the purchase of asset valuation services and the purchase of licence renewals and support for departmental business systems. The department accessed existing panel arrangements for the procurement of training and leadership development programs and the provision of task chairs for departmental staff.

The department continued to access whole-of-government contracts for the provision of travel and related services. The purchase of stationery and office supplies was made through the whole-of-government contract with Staples. The department accessed an established panel arrangement for the provision of specialist risk and fraud control management and policy development.

The department initiated an open tender procurement during the reporting period for the provision of internal audit services.

Consultants

The department engages consultants where we lack specialist expertise or when independent research, review or assessment is required. Consultants are typically engaged to investigate or diagnose a defined issue or problem; carry out defined reviews or evaluations; or provide independent advice, information or creative solutions to assist in the department’s decision-making.

Before engaging consultants, the department takes into account the skills and resources required for the task, the skills available internally, and the cost-effectiveness of engaging external expertise. The decision to engage a consultant is made in accordance with the Public Governance, Performance and Accountability Act 2013 and related instruments, including the Commonwealth Procurement Rules and relevant internal policies.

During 2014–15, the department entered into five new consultancy contracts involving total actual expenditure of $0.138 million. In addition, four ongoing consultancy contracts were active in 2014–15, involving total actual expenditure of $0.123 million.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website (www.tenders.gov.au).

Auditor-General access and exempt contracts

The department’s contracting activities have been disclosed through the government’s AusTender system, as required. There were no instances during 2014–15 where contracts were let that did not provide for the Auditor-General to have access to the contractor’s premises, or where the chief executive exempted a contract from being published on AusTender.

Procurement initiatives to support small business

The department supports small business participation in the Commonwealth Government procurement market. Participation statistics for small and medium enterprises and small enterprises are available on the Department of Finance’s website at www.finance.gov.au/ procurement/statistics-on-commonwealth-purchasing-contracts.

Consistent with paragraph 5.4 of the Commonwealth Procurement Rules, the department’s procurement practices to support small businesses include:

Advertising and market research

Section 311A of the Commonwealth Electoral Act 1918 requires the department to detail amounts paid to advertising agencies, market research organisations, polling organisations, direct mail organisations and media advertising organisations during the financial year.

The department’s total advertising expenditure for 2014–15 was $5,015, a decrease from the previous year’s total ($28,155). This decrease is attributed to a reduction in the number of advertisements for publicising the work of the House and committees, including publicising inquiries undertaken by committees. In addition, new charging arrangements were scheduled to commence for chamber-related gazettals, but this is yet to occur.

The expenditure was as follows:

Grants

Information on grants awarded by the department during 2014–15 is available at www.aph.gov.au/About_Parliament/Parliamentary_Departments/Department_of_the_ House_of_Representatives/Grants.

Ecologically sustainable development and environmental reporting

The Department of Parliamentary Services (DPS) is responsible for managing the Parliament House building and precincts. DPS reports in accordance with section 516A of the Environment Protection and Biodiversity Conservation Act 1999 in its annual report, which is available from the Parliament of Australia website.