Department of Housing

2008-09 Annual Report

 preface References to the Department of
The Department of Housing and Works has Housing or “Department” in the
been redesignated as the Department of report to follow means:
Housing under section 35(1) Public Sector 1. the Works and Building Services
Management Act 1994, effective from 1 of the former Department of
February 2009. Housing and Works, from 1 July
This annual report deals with the “works” 2008 to 31 January 2009; or
functions (that is, the areas of public works 2. the Building Management
construction, property management, and Works business unit of
maintenance and building industry Department of Treasury and
development) for the financial year ending Finance, from 1 February 2009
30 June 2009. to 30 June 2009.
Due to the Government’s Works Reform
Program, responsibility for the “works”
functions of the Department of Housing
and Works were transferred to the
Department of Treasury and Finance (DTF),
effective from the 1 February 2009.
For comparability purposes full year Key
Performance Indicator (KPI) - (target
and actual results) and prior year results
have been reported. The operations
commentary is also provided for the full
year in alignment with the KPI reporting.
All financial activity within the Department
of Housing, for the financial year ending
30 June 2009, consists of 7 months for the
“Works” functions transferred to DTF for the
period ending 31 January 2009. All assets
and liabilities reported as Department of
Housing and Works have been transferred
to the new business unit within DTF.

Note: The housing-related functions of the Department are detailed in separate annual reports put out by the
Housing Authority and the Country Housing Authority.

2 Department of Housing 2008-09 Annual Report

 Contents Statement of Compliance

Overview................................................................ 4 FOR THE YEAR ENDED 30 JUNE 2009

Executive Summary..........................................................4 To the Hon Troy Buswell MLA Minister for
Operational Structure........................................5 Housing and Works.
Departmental Structure.................................................6 In accordance with Section 63 of the Financial
Responsible Minister........................................................7 Management Act 2006, I hereby submit for your
Legislation Administered...............................................7 information and presentation to Parliament,
Performance Management Framework...........8 the Report of the Department of Housing for
the financial year ending 30 June 2009.
Government Goals............................................................8
The Report has been prepared in accordance
Agency Performance........................................... 9 with the provisions of the Financial
Audited Performance Indicators .............................9 Management Act 2006.
Report on Operations...................................................12

Significant Issues and Trends .......................... 15

Disclosures and Legal Compliance.........................16 Grahame Searle

Auditor General’s Opinion.........................................16 Director General
Certification Statement: Performance
Indicators...........................................................18
Financial Statements (including
certification)......................................................19 Government Policy Requirements..................57
Ministerial Directives .......................................52 Corruption Prevention.................................................57
Audit...................................................................52 Substantive Equality......................................................57
Audit Committee.............................................................52 Occupational Safety, Health and Injury
Internal Audit Function................................................52 Management . ..................................................................58
Authorisation Framework..........................................52
Other Financial Disclosures.............................53
Pricing Policies...................................................................53
Major Capital Projects .................................................53
Employment and Industrial Relations................54
Staffing Levels ..............................................................54
Recruitment and Staff Development ................54
Industrial Relations . ..................................................55
Governance Disclosures...................................55
Disclosure of Pecuniary Interest.............................55
Other Legal Requirements...............................55
Advertising..........................................................................55
Disability Access and Inclusion Plan
Outcomes ...........................................................................55
Compliance with Public Sector Standards
and Ethical Codes ..........................................................56
Recordkeeping Plans....................................................56

Department of Housing 2008-09 Annual Report 3

Overview
Executive Summary
The Western Australian State Government announced a significant reform for the Department of Housing
and Works in late 2008. The two portfolios, Housing and Works, were separated into two distinct service
delivery areas, effective as of 1 February 2009.
Works was transferred to the Department of Treasury and Finance as Building Management and Works, while
the housing-related functions remained as the Housing Authority.
This is major step for the portfolio, and one that is expected to deliver positive results in years to come.
In the 2008-09 year, the Department delivered, managed and maintained non-residential buildings across
Western Australia on behalf of the Minister for Housing and Works. This is a major contribution to the creation
of sustainable communities and strong metropolitan and regional development opportunities for the benefit
of all Western Australians.
These activities were undertaken against a backdrop of major fluctuations in industry activity and
construction costs, and a highly dynamic commercial property market. These factors provided many
challenges for the Department, especially in the area of budget control, and will continue to do so.
The program turnover of building works was $647million, compared to $562million in 2007-08.
The Department managed a maintenance and minor works program worth $236million, compared to
$206million in 2007-08.
The Department administered 440 leases for government tenancies in 186 privately-owned buildings. Leased
office space grew to a total of 369,821 square metres, an increase by approximately 5,000 square metres
compared to last year.
The Industry Training Program reached its target of more than 150 apprentices in place across Western
Australia at one time.
The Department continued to work closely with its key client agencies to improve its services to the
satisfaction of those clients, and was compliant with the relevant Public Sector Standards and Ethical Codes.

4 Department of Housing 2008-09 Annual Report

Operational Structure
The Department of Housing and Works has been redesignated as Department of Housing under section
35(1) Public Sector Management Act 1994, effective from 1 February 2009. The following works functions were
transferred to the Department of Treasury and Finance as of this date:

Works and Acts as the Government’s lead agent in the planning, design and construction
Building of government buildings. Assists other government agencies with their asset
Construction planning needs.

Commercial Provides office accommodation that supports agencies’ outcomes and service
Property delivery. Manages the Government’s office accommodation portfolio to
achieve government objectives.

Office of Strategic Facilitates effective planning, development and delivery of key strategic
Projects infrastructure projects in Western Australia.

Maintenance and Provides building maintenance and minor works for government buildings.
Minor Works

Fremantle Prison Manages the conservation of this heritage icon and the tourism activities.

Building Industry Provides policy advice to the Minister, the Director General and the
Development Department on building and construction industry matters.

This annual report is concerned with these works-related functions only.

The housing-related functions of the Housing Authority and the Country Housing Authority are detailed in
the individual annual reports for these statutory authorities.

Department of Housing 2008-09 Annual Report 5

Departmental Structure

DIRECTOR
GENERAL
OFFICE OF THE DIRECTOR GENERAL Grahame Searle
Strategy and Policy
Acting Executive Director
Tania Loosley-Smith
• Communications and Marketing

HOUSING WORKS AND BUSINESS CORPORATE HOUSING

SERVICES BUILDING SERVICES DEVELOPMENT STIMULUS
SERVICES* SERVICES
Deputy Director Deputy Director General General Social Housing
General Housing General Works Manager Manager Coordinator
Steve Parry Steve Hackett Rochelle Bradley Graeme Gammie Shane Hamilton
• Community • Works and • People Services • Business • Housing
Housing Building Improvement Construction
Construction • Financial
• Public Housing from
Services • Strategy and government
• Commercial Innovation
• Home Property • Securities and funding
Ownership Conveyancing • Legislation and packages
• Maintenance Legal Services
• Land and and Minor • Management
Housing Works Review and • Review
Development Audit Implementation
• Housing
• Aboriginal Construction • Information • Special Projects
Housing and Management
Infrastructure • Aboriginal
Communities • Information
• Government Construction Services
Regional Services
Officers’ • Contracts and
Housing • Procurement Services
(GROH) Strategy and
Policy
• Housing
Services
Delivery
• Housing
Construction

*Transferred to DTF effective from 1 February 2009. As of 1 February 2009, Building Management and Works became
operational under DTF comprising of the Office of Strategic Projects and the Works and Building Services portfolio of the
Department of Housing and Works.

6 Department of Housing 2008-09 Annual Report

Responsible Minister
The Department of Housing is responsible to the Hon Troy Buswell MLA, Treasurer; Minister for Commerce;
Science and Innovation; Housing and Works.

Legislation Administered
Up to 10 February 2009, the Department of Housing and Works assisted the Minister for Housing and Works
in the administration of the following Acts or provisions of Acts:
• Architects Act 2004
• Construction Contracts Act 2004
• Country Housing Act 1998
• Dividing Fences Act 1961
• Local Government (Miscellaneous Provisions) Act 1960 (Parts VIII and XV)
• Public Works Act 1902

From 10 February 2009, Executive Council transferred these Acts to be administered by the Treasurer assisted
by the Department of Treasury and Finance.

Department of Housing 2008-09 Annual Report 7

Performance
Management
Framework
Government Goals

The Department primarily contributes to the Goals

following Government goal:
• Goal 1: State Building – Major Projects –
building infrastructure that will create jobs and
underpin Western Australia’s long-term economic State Building - Major Projects
development.
Building strategic infrastructure that
The Department enhances the quality of life and
will create jobs and underpin Western
well-being of all people throughout Western
Australia’s long term economic
Australia by helping to create sustainable
development
communities and strong metropolitan and regional
development opportunities for the benefit of all
Western Australians.
The Department contributed to Goal 1, by delivering, Desired Housing Outcome for
managing and maintaining non-residential buildings Government buildings and
across Western Australia on behalf of the Minister for accommodation delivered, managed
Housing and Works. and maintained at agreed standards

The following diagram illustrates our key outcome

and performance indicators for the community of
Western Australia.
Measures of Measures of
Efficiency Effectiveness
• Cost per million The extent to which
dollars of value the Department
of capital
works projects of Housing has
delivered delivered, managed
and maintained
• Cost per million government
dollars of
gross rentals buildings and
of buildings accommodation to
and office agreed standards
accommodation
managed
• Cost per million
dollars of
value of minor
works and
maintenance
services
delivered

8 Department of Housing 2008-09 Annual Report

Agency Performance
Audited Performance Indicators
The performance indicators in this report help evaluate the Department of Housing’s performance in
achieving its outcomes. The key effectiveness indicators provide information on the extent to which the
outcome has been achieved through agreed outputs.
The efficiency indicators relate services to the resources required to produce them. The outcome and
performance indicators were established in the 2003-04 financial year.
The outcome and associated services were transferred to the Department of Treasury and Finance with effect
from 1 February 2009. Prior to this date responsibility rested with the Department of Housing and Works. For
comparability purposes the full year KPI (target and actual results) and prior year results have been reported.

Outcome: Government buildings and accommodation delivered, managed and maintained at agreed
standards.
The Department contributed to this outcome by delivering, managing and maintaining non-residential
buildings across Western Australia on behalf of the Minister for Works. This, in turn, helped create sustainable
communities and strong metropolitan and regional development opportunities for the benefit of all Western
Australians.
The Department provided a wide range of services to facilitate the State Government’s capital works and
maintenance programs. These services included:
• a coordinated and specialist approach to the planning and management of the State Government’s non-
residential capital works and office accommodation requirements;
• responsibility for managing the Governments’ exposure to building and construction risks and dealing
with commercial interests in the architecture and building industries where appropriate;
• maintained the appropriate contracting and building standards to help deliver the State Government’s
non-residential capital works program;
• established and managed appropriate office and building standards for the State Government’s
accommodation needs; and
• the Department participated in partnerships with private sector service providers. Capital works and non-
residential projects were designed by private sector architects and constructed by commercial builders
under contract to the Department, which also managed the projects.
Determining Customer Satisfaction
The customer satisfaction surveys were based on the use of a seven-point Likert scale. Respondents were
asked to rate the Department’s services ranging from ‘very satisfied’ to ‘very dissatisfied’. All ‘not applicable’ or
‘don’t know’ responses were excluded from the satisfaction rating.
A satisfied respondent is defined as a person providing a response in the range of ‘very satisfied’ to ‘slightly
satisfied’ inclusive. The number of responses to a question falling in this range, divided by the total number of
valid responses to the question, is taken as a percentage and reported as the client satisfaction rating.
The following key performance indicator measures the effectiveness of the Department in achieving the
above outcome.

Department of Housing 2008-09 Annual Report 9

Effectiveness Indicator
The extent to which the Department of Housing has delivered, managed and maintained
government buildings and accommodation to agreed standards.
The Department worked closely with its key client agencies to improve its services to the satisfaction of
clients.
The Department has undertaken independent research among executive and senior level officers at
agencies. The research monitors the changes in attitudes and perceptions of these officers towards the
Department. The agreed standards are benchmarks defined as per the requirements of the Department of
Treasury and Finance and other agencies. The surveys have been conducted by an independent research
agency and are a measure of client satisfaction.
There were 73 responses to the question from a total of 89 surveyed, resulting in an 82 per cent response rate
for this indicator. The survey achieved the required sampling accuracy at the 95 per cent confidence level.

2006-07 Actual 2007-08 Actual 2008-09 Target 2008-09 Actual

75% 67% 75% 62%

Some survey respondents identified potential for improved performance in a number of areas including
project management and timeliness.
These and other service delivery issues identified by Government and agencies will be addressed through the
Works Reform program that commenced in June 2009.

Efficiency Indicators
Project delivery and management and maintenance of government buildings and office
accommodation.
The Department provided management services involving construction of public buildings, infrastructure
assets, the Government’s office accommodation portfolio, projects and the ongoing management of
government properties. Also included are policy development and advice to government with regard to its
building construction activities.
The Department measures its efficiency in delivering these services to its clients at the lowest cost through
the following indicators.
Project Delivery
Cost per million dollars of value of capital works projects delivered.
The cost for project delivery includes the total costs allocated to this service, including overheads. The total
cost is taken as a proportion of the value, in millions of dollars, of works delivered by the Department.
The efficiency measure is a key factor in evaluating the cost of the service provided to client (government)
agencies in relation to the value of works projects managed.

2006-07 Actual 2007-08 Actual 2008-09 Target 2008-09 Actual

$22,727 $19,828 $23,620 $20,853

The figures reflect the efficient delivery of Government’s capital works projects where the associated service
costs have been controlled against a capital works program that has consistently increased over recent years.
The 2008-09 actual figure versus the target figure particularly reflects an underspend on the budget for
associated staffing costs due to difficulties with attracting and retaining staff.

10 Department of Housing 2008-09 Annual Report

Property Management
Cost per million dollars of gross rentals of buildings and office accommodation managed.
The cost for property management includes the total costs allocated to this service, including all overheads.
The total cost is taken as a proportion of the gross rental payments, in millions of dollars, of buildings and
accommodation managed.
Within the cost for property management, the Department also provides management services for precincts
(places where ownership is unclear or transitional), properties or contiguous sites where several agencies may
have an interest or presence.

2006-07 Actual 2007-08 Actual 2008-09 Target 2008-09 Actual

$272,141 $100,899 $141,814 $107,038

The number of leases administered increased by 20 per cent in 2008-09 and the office accommodation
market achieved record low vacancy rates with resulting high rental costs. However, the overall cost of
delivering the program remained less than the target total.
Maintenance
Cost per million dollars of value of minor works and maintenance services delivered.
The cost for maintenance includes the total costs allocated to this service, including all overheads. The total
cost is taken as a proportion of the value, in millions of dollars, of minor works and maintenance delivered by
the Department.
Included in the total costs are those associated with a call centre; contract development and management
for minor works; breakdown repairs; and maintenance.

2006-07 Actual 2007-08 Actual 2008-09 Target 2008-09 Actual

$85,785 $84,810 $91,379 $84,165

The value of the maintenance program delivered was greater than anticipated, while the cost of delivering
the service was less than the target total. In effect, the Department delivered a larger than expected program
without an increase in costs.

Department of Housing 2008-09 Annual Report 11

Report on Operations
Creation of Building Management and Works
In December 2008, Cabinet endorsed the start of a Works Reform Program, transferring the “works” function
of the Department of Housing and Works (DHW) to the Department of Treasury and Finance (DTF). As of 1
February 2009, the “Building Management and Works” (BMW) business became operational under the DTF
comprising of the Office of Strategic Projects (OSP) and the DHW Works and Building Services division.
On 28 April 2009, Cabinet approved a new lead role for BMW in the non-residential building program,
supported the growth in its project management capability and capacity, and approved a new model for
funding the DTF’s BMW business in implementing its new role.
The Works Reform Program is focussed on achieving significant changes in the approach to capital works
planning and delivery, and an improved availability of quality project management resources within
government. This will promote significant improvements in the effectiveness of project delivery across the
whole of the capital works non-residential building (government buildings) program.
It is expected that the Works Reform Program will achieve significant savings for Government as well as a
wide range of other benefits to Government and key stakeholders.
Building the Education Revolution
The ‘Building the Education Revolution’ (BER) initiative forms part of the Federal Government’s economic
stimulus package. The delivery of the BER program - including procurement, project management and
construction - is being managed by the Department of Treasury and Finance’s Building Management and
Works business unit.
The BER program will see over $1billion invested in maintenance and new capital works for nearly 800
Western Australian Government schools within the next two years.
New Government Buildings
The Department delivers the Government’s non-residential building program across Western Australia.
This includes leading the state’s strategic asset management planning as well as engaging consultants and
contractors to deliver the capital works program.
In 2008-09 the program turnover of building works was $647million, compared to $562million in 2007-08.
Significant projects have been delivered for a number of agencies, including the Department of Health and
Department of Education and Training.
Significant Health Projects
• Hedland Regional Resource Centre: Replacement Stage 2 ($132.2million);
• Rockingham Kwinana Hospital – Redevelopment ($106.6million);
• QEII Medical Centre: PathWest Laboratories ($67.5million);
• SCGH: Cancer Centre Stage 2 ($58.5million);
• Broome Regional Resource Centre Redevelopment ($38.5million); and
• Denmark Hospital ($20.3million).

12 Department of Housing 2008-09 Annual Report

Schools Projects
• There were 181 active capital works projects under way, with a total expenditure of $245.1million at 30
June 2009;
• Five new high schools opened at the start of the 2009 school year;
• Four new primary schools opened at the start of the 2009 school year;
• Dalyellup College ($26.5million);
• Gilmore College ($50.0million); and
• Atwell College – Stage 1 ($37.5million), Stage 2 about to begin.
Other Significant Projects
• New Athletics Stadium – AK Reserve ($32.2million);
• Kimberley District Police Complex - New Police Complex in Broome ($11.0million);
• Perth Zoo - Elephant Exhibit Stage 2 ($4.6million);
• Construction of the Leonora Police Station ($3.5million); and
• Fire and Emergency Services Authority Volunteer Fire Station in Carnarvon ($1.8million).
Maintenance and Minor Works of Government Buildings
The Department arranges building improvements and maintenance for government agencies across the
State, including schools, police stations and government offices.
In 2008-09 the Department managed works worth $236million using more than 1,800 suppliers. In addition
to building maintenance, the Department was involved in a number of strategic initiatives, including:
Digital Education Revolution (DER)
In partnership with the Department of Education and Training, BMW is involved in the Digital Education
Revolution (DER) program. Through the DER program the ratio of computers to year 9 to 12 students will
improve from one computer for every five students to one computer for every two students by 2011. This
will further improve to a computer for every year 9 to 12 student by 2013.
The contribution involves managing the delivery of $20million of Information Communication and
Technology (ICT) installations and about $10million of associated electrical upgrades.
The ICT installations will be provided to schools through a managed contract arrangement that ensures
a consistent standard of product with extended warranty for the installations, reduces the repeat
procurement effort required for installations and provide value for money.
The BMW will also undertake power audits at school to ensure appropriate operational capacity exists to
meet the new ICT infrastructure requirements.
National Solar Schools Program (NSSP)
In another partnered project with the Department of Education and Training, BMW will project manage
the installation of $6million of sustainable initiatives to about 120 schools for each year of the National
Solar Schools Program (NSSP).
The NSSP will enable public schools to install energy efficiency initiatives such as solar panels, water tanks,
window treatments and lighting that will develop knowledge, skills and values that promote action and
behaviour in support of a sustainable future.
BMW have set up a framework to reduce the administrative effort required by individual schools to gain
funding for the project and improve the delivery of the program. This is a significant step forward in terms
of how similar initiatives have been administered in the past.

Department of Housing 2008-09 Annual Report 13

 Regional Programs Division
The Regional Programs Division within BMW has been established to provide greater focus on regional
programs. The division integrates the building management and works with the goods and services
Regional Buying Centres from the DTF’s Government Procurement business unit.
The aim is to run more capital programs from within the regions rather than from Perth. More decisions on
capital spending will be made locally. An expanded regional presence will also inject further funding into
local communities.
This change will see goods and services and works procurement become more streamlined. A renewed
emphasis on regional programs will also see better outcomes for government asset management in the
regions.
Government Office Accommodation
The Department is committed to more effective planning and delivery of government office
accommodation and responsibilities include:
• procurement and administration of leased office space;
• delivery of office fit out services to government agencies;
• management of government-owned multi-tenanted office accommodation;
• strategic planning for the government’s office accommodation portfolio; and
• overseeing the government’s office accommodation polices.
In 2008-09 the Department administered 440 leases for government tenancies in 186 privately-owned
buildings. Leased office space grew by approximately 5,000 square metres over the period to a total of
369,821 square metres.
The Department also managed about 90,000 square metres of government-owned office space in 20
multi tenanted buildings controlled by the Minister for Housing and Works.
A range of capital works has been undertaken to the government owned office portfolio with particular
emphasis on sustainability initiatives. This has resulted in substantial energy savings across the portfolio,
particularly within the major Central Business District buildings.

14 Department of Housing 2008-09 Annual Report

Significant Issues and Trends
Transfer of the Works function to the Department of Treasury and Finance
In December 2008, Cabinet endorsed the start of a Works Reform Program, transferring the “works” function
of the Department of Housing and Works (DHW) to the Department of Treasury and Finance (DTF). As of 1
February 2009, the “Building Management and Works” (BMW) business became operational under the DTF
comprising of the Office of Strategic Projects (OSP) and the DHW Works and Building Services division.
Works Reform Program
On 28 April 2009, Cabinet approved a new lead role for BMW in the non-residential building program,
supported the growth in its project management capability and capacity, and approved a new model for
funding the DTF’s BMW business in implementing its new role.
The Works Reform Program is focussed on achieving significant changes in the approach to capital works
planning and delivery, and an improved availability of quality project management resources within
government. This will promote significant improvements in the effectiveness of project delivery across the
whole of the capital works non-residential building (government buildings) program.
It is expected that the Works Reform Program will achieve significant savings for Government as well as a
wide range of other benefits to Government and key stakeholders.
Building the Education Revolution
The ‘Building the Education Revolution’ (BER) initiative forms part of the Federal Government’s economic
stimulus package. The delivery of the BER program - including procurement, project management and
construction - is being managed by the Department of Treasury and Finance’s Building Management and
Works business unit.

Department of Housing 2008-09 Annual Report 15

Disclosures and Legal Compliance
Auditor General’s Opinion

16 Department of Housing 2008-09 Annual Report

Department of Housing 2008-09 Annual Report 17
Certification Statement: Performance Indicators
Certification of Performance Indicators
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 Department of Housing, and fairly represent the performance
of the Department of Housing for the financial year ended 30 June 2009.

GRAHAME SEARLE
DIRECTOR GENERAL
ACCOUNTABLE AUTHORITY

31 July 2009

18 Department of Housing 2008-09 Annual Report

Financial Statements (including certification)

Department of Housing 2008-09 Annual Report 19

20 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 21
22 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 23
24 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 25
26 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 27
28 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 29
30 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 31
32 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 33
34 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 35
36 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 37
38 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 39
40 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 41
42 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 43
44 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 45
46 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 47
48 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 49
50 Department of Housing 2008-09 Annual Report
Department of Housing 2008-09 Annual Report 51
Ministerial Directives
No ministerial directives were received during 2008-09.

Audit
Audit Committee
The audit committee was reconstituted in September 2008 and is now a four-member advisory committee
comprised of members of the corporate executive. The committee was established to assist the Accountable
Authority (the Director General) discharge his responsibilities under Section 53 of the Financial Management
Act 2006.
The terms of reference of the audit committee are included in a formal charter, approved by the Accountable
Authority.
The committee met twice during the year.

Internal Audit Function

In accordance with the requirements of the Financial Management Act 2006, the Management Review and
Audit Branch (which incorporates internal audit services) operates as an independent appraisal unit within
the Department.
The branch, as well as having a mandate to provide internal audit services, also has an extended role and
scope to undertake management review processes as permitted under the Act, which has broadened the
focus of internal audit to include strategic and operational risks as well as business improvement.
Comprehensive audit plans are developed annually that address key business risk areas and help achieve
departmental strategies by providing advice on business activities and corporate frameworks.
The branch has a charter that defines its independence, role, responsibilities, scope of activities and authority.

Authorisation Framework
The Department has a formal framework that specifies positions approved by the Minister for Housing
and Works to authorise work applying to contracts awarded under the Public Works Act 1902. This includes
construction, maintenance, fit-out and associated consultancy contracts.
These authorisations are subject to budget and program approval (and other requirements).
Public works projects managed by the Department, carried out in the name of the Minister for Housing and
Works, are subject to normal public sector authorisations processes and the Financial Management Act 2006.

52 Department of Housing 2008-09 Annual Report

Other Financial Disclosures
Pricing Policies
The Department uses a cost recovery approach for some of its works functions. These include:
• Construction of new government buildings - the Department provides services to government
agencies to support the planning and delivery of their non-residential building programs. Charges for
project management services for individual projects are a percentage of the cost of the project. The
percentages are on a sliding scale inversely proportional to the value of the project and adjusted for
locality and project complexity. The total charges represent around two per cent of the annual works
• Maintenance and minor works - the Department charges for managing the planning and delivery of
maintenance and minor works on behalf of agencies. The charges are determined in order to achieve full
cost recovery, and are either fixed or a percentage depending on the service provided;
• Accommodation - the Department charges government agencies rent, based on market rates, for the
use of multi-tenanted government buildings owned by the Minister for Works; and
• Fremantle Prison - offers a range of tours to the public. Tour prices are reviewed annually, with price
increases maintained around the Consumer Price Index.

Major Capital Projects

Works in Progress

Project Expected Estimated Estimated

Completion Cost to Total Cost
Date Complete
Perth Arena 2011 $338m $483m

The Perth Arena was a significant Department of Housing and Works capital project. On 1February 2009, the
“works” functions of the Department of Housing and Works were transferred to the BMW business unit of DTF.

Department of Housing 2008-09 Annual Report 53

Employment and Industrial Relations
Staffing Levels
As of 1 February 2009 staff were transferred to the Department of Treasury and Finance’s Building
Management and Works business unit. The full time equivalent (FTE) staffing numbers for BMW as at 30 June
2009 are detailed in the table below:

2007-08 2008-09

Permanent Full-time 223.50 264

Permanent Part-time 10.89 32.97
Contract Full-time and Part -time 35.93 41.5
Seconded In 6 6
Seconded Out 1 3
Total FTE 277.32 347.47

Recruitment and Staff Development

Graduates and Architectural Interns

• The Department works with the Royal Australian Institute of Architects and the Australian Council of Built
Environment Design Professions to manage the placement of architectural interns. Graduates spend
approximately six months gaining exposure to government processes and client requirements and;
• Three non-architectural graduates are now completing their training for those new to the procurement
profession. A placement in works provides these graduates with a solid grounding in how the
government manages delivery of its capital works program.

Apprentices and Traineeships

The purpose of the Industry Training Program (ITP) is to:
• attract and retain building and construction employees to the industry;
• provide quality training and management of apprentices through to trade completion in State
Government construction and maintenance projects; and
• provide opportunities to those who may not normally be able to access an apprenticeship.
The ITP reached its target of more than 150 apprentices in place at the one time.

Training in identification of Asbestos Containing Materials (ACM) in buildings

Between May and October training was conducted in all country offices in course “BCGBC4023A Plan and
undertake a site inspection and assessment of asbestos products and materials”.
All regional staff at that time involved in managing building related projects attended the course and
received accreditation.

54 Department of Housing 2008-09 Annual Report

Industrial Relations
Departmental staff are employed under the Public Service General Agreement 2008, with the exception of some
staff employed at the Fremantle Prison, who are employed under the Government Services (Miscellaneous)
General Agreement 2007.

Governance Disclosures
Disclosure of Pecuniary Interest
At the date of reporting, other than normal contracts of employment of service, no Senior Officers, or firms
of which Senior Officers are members, or entities in which Senior Officers have substantial interests had any
interests in existing or proposed contracts with the Department.

Other Legal Requirements

Advertising
In accordance with the disclosures required by section 175ZE of the Electoral Act 1907, the Authority has
incurred the following expenditure in advertising, market research, polling, direct mail and media advertising:
1. Total expenditure for 2008-09 was $411,635*.
2. Expenditure was incurred in the following areas:

Area Total Agency/Organisation Expenditure

Expenditure
Advertising agencies $635 Think Creative $635
Market research organisations Nil
Polling organisations Nil

Direct mail organisations Nil

Media advertising organisations $411,000 Adcorp Marketing Communications $118,100
Media Decisions $292,900
*includes Fremantle Prison

Disability Access and Inclusion Plan Outcomes

The Disability Access Inclusion Plan (DAIP) will deliver the WA Council of Australian Governments Care
Coordination Program, a partnership with the Department of Health. It aims to deliver public housing to
people with mental illness alongside clinical care and psychosocial support. The provision of clinical care
and psychosocial support will be managed by the Department of Health to support people maintain their
tenancy.
The Department is committed to ensuring that its functions, facilities and services are accessible and inclusive
for all members of the community, regardless of ability, disability, ethnicity, gender, age or other perceived
difference.

Department of Housing 2008-09 Annual Report 55

The Department reviewed the DAIP, and made a number of changes that will assist in its implementation.
They include:
• the Department and Mental Health will form a partnership under the WA Commonwealth of Australian
Government (COAG) Care Coordination Housing Initiative to deliver increased public housing for people
with mental illness with clinical and psychosocial support;
• barriers to access are identified via feedback from employees and then prioritised and reviewed on an
ongoing basis to ensure compliance with Building Codes, Australian Standards;
• all Departmental information includes ‘available in alternative format on request’ notation and to
accommodate low income earners ‘texting’ has been introduced as an economical way to contact the
Department’s Disability Services Coordinator for information on services; and
• staff, contractors and agents will undergo compulsory training in access and inclusion as they provide a
direct service to the public. Disability and Mental Health Awareness courses have now been combined to
deliver a better understanding for staff on the challenges faced by people with disabilities.

Compliance with Public Sector Standards and Ethical Codes

Compliance with Public Sector Standards
Following last year’s internal audit of the Department’s compliance with the public sector Recruitment,
Selection and Appointment Standard and the Redeployment Standard, new processes were introduced
and subject to an external audit. This includes a Candidate Management System that provides for quality
assurance at all levels of the recruitment process.
In 2008-09, there were no successful breach claims involving the Recruitment, Selection and Appointment
Standard.
Compliance with Codes of Ethics and Codes of Conduct
Code of Conduct workshops were conducted across the State for all staff. The Department has developed
an on-line code of conduct package that will address the mandatory requirement for training with regard to
Ethical and Accountable decision making.
In line with the Premier’s Circular 2008/01, a review of the Department’s Code of Conduct is near completion.
When finalised, this policy will be available to staff on the intranet and will be included in both the
Department’s online induction and on-line Code of Conduct packages.
Office of Public Sector Standards Commission Survey
The Department participated in this annual survey and results showed that in most areas the Department’s
performance compares favourably with whole of Government outcomes. However, the Department
has committed to developing strategies aimed at improving its overall composite equity index including
achieving a higher representation of women at senior levels and a better matching of our workforce to the
client base.

Recordkeeping Plans
The Authority complies with the State Records Act 2000 and is committed to the principles and standards
provided by the State Records Commission.
Recordkeeping Training Program
The recordkeeping program comprises training products focused on staff. All new staff members are enrolled
for the training within a month of commencing. Existing staff are enrolled in all new modules as they are
implemented.

56 Department of Housing 2008-09 Annual Report

The Records and Information Management Accredited Training Plan was approved and utilises courses on
offer in tertiary institutions and accredited Australian National Training Authority trainers. This plan is directed
specifically to staff members in a record and information management practitioner role. The use of the Plan
commenced in April 2009.
The outcomes of the Department of Housing Recordkeeping and Information Management training suite for
this period are:

Course Title % % %
Enrolled Started Completed
Recordkeeping Awareness Training 47 9 38
Recordkeeping Awareness Refresher Training 34 8 26
TRIM System Training 42 13 29
Business Classification 49 10 38
FOI and Information Requests 33 7 26

Future plans include:

• Induction to Recordkeeping and Information Management in the Department of Housing
• Security Classification of Information
• Managing Vital Records
• Record and Information Management Practitioner (Process) Training

Government Policy Requirements

Corruption Prevention
A Fraud and Corruption Policy Reporting Framework was developed in August 2008 for the notification of
fraudulent activity.
Detection and prevention of fraud, corruption and misconduct are addressed under specific business
units’ risk management activities, with appropriate reporting procedures established. The Department has
appropriate risk management policies that incorporate strategies to minimise the risk of fraud, misconduct
and corruption.
These policies and guidelines, in conjunction with audits of contractors, internal audit business reviews and
stringent controls over financial payments have helped the Department develop a culture of awareness
relating to potential fraud, corruption and misconduct.
A Misconduct Project Office was established in September 2008 to undertake a review of the Department’s
management of integrity and misconduct matters using the Corruption and Crime Commission framework
Misconduct Resistance: An Integrated Governance Approach to Protecting Agency Integrity. To increase the
awareness of integrity and ethical matters, the Department is developing an on-line training program to be
released to all staff during 2009.

Substantive Equality
The Department is continuing to review its practices in line with the Government’s Policy Framework for
Substantive Equality and is committed to achieving substantive equality in the services provided to its diverse
client base. During 2008-09, the implementation of substantive equality continued primarily throughout the
housing arm of the Department.

Department of Housing 2008-09 Annual Report 57

The Department is also continuing to implement the recommendations from the Equal Opportunity
Commission’s Finding A Place report of 2004, which correspond with the principles of the substantive equality
policy. New policies and initiatives also undergo an assessment in line with this process to determine their
impact on people from diverse ethnic backgrounds.
In 2008-09, a number of practices were developed or reviewed, with a focus on ensuring equitable access
and understanding of the Department’s services. Achievements in this area have included:
• Communication - the quality of written communication is being revisited to ensure the tone, level of
information and accessibility is easier for people with limited English literacy; and
• Staff Knowledge - a Multicultural Awareness Training Course, raising skills in cross-cultural
communication and the understanding of issues faced by clients from culturally diverse backgrounds has
become a mainstream training program for frontline staff.

Occupational Safety, Health and Injury Management

The Department has a clear commitment to the health and welfare of its employees and this is reflected in
organisational policy and practice. Initiatives include:
• an external review of the Department’s Occupational Safety and Health systems was conducted within
the last three years (2006);
• an internal review has led to the development and implementation of a regional Occupational Safety and
Health model to more effectively identify and manage potential workplace hazards;
• extension of the voluntary health and lifestyle program;
• State-wide recruitment and training of elected Occupational Safety and Health representatives and
managers;
• development of a comprehensive training program for front line staff;
• continued funding and support for the Employee Assistance Program; and
• the development of safety in the field and protective equipment policies.
The Department continued its focus on injury management in its approach to claims management, and
continued to support officers returning to work from extended absences due to ill health.
The Workers’ Compensation Policy outlines the Department’s practices and procedures, with reference to the
Workers’ Compensation and Injury Management Act 1981. It is available on the intranet.

Indicator 2008-09 Target 2008-09

Number of fatalities 0 0
Lost time injury incidence rate* 0.28 0.58
Lost Time Injury Severity Rate 0 0
Percentage of injured workers returned to work within - -
28 weeks
Percentage of managers trained in occupational >25% >50%
safety, health and injury management responsibilities

*Number of lost time injuries and diseases per one hundred workers employed

58 Department of Housing 2008-09 Annual Report