IPAA NSW Annual Report 2014-15

2014–15 ANNUAL

REPORT CONNECTING PEOPLE AND IDEAS

PRESIDENT'S REVIEW. This last financial year has been a rapid period of change; for IPAA NSW, the public sector and the broader environment in which we work. At IPAA NSW our focus has been on building a stronger organisation that leverages the key value that members often describe as their reason for joining the Association: networking and connecting with peers and leaders in the public sector.

Our new website allows people to connect and enhance their knowledge by delivering public sector focused content from around Australia and the world, anywhere, anytime.

The revision of our membership categories has for the first time offered an entry step for those beginning to build a career in the public sector so that they can begin to appreciate the valuable support IPAA NSW can offer. Our revised Constitution has allowed us to increase the level of senior executive participation meaning that Council can respond quickly to challenges and opportunities as they arise. These revisions also strengthen the Committee structure that reports to Council and provide opportunities for all members to participate in and contribute to the growth and development of IPAA NSW. IPAA NSW continues to play a key role in improving the skills and capabilities of public servants through a broad range of public sector specific professional development programs.

These have included a large number of challenging and valuable events that enrich participants’ knowledge and allow valuable networking opportunities including Conferences, Master Classes, Seminars, Forums, and a variety of professional breakfasts, lunches and dinners.

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IPAA NSW ANNUAL REPORT 2014–15

Highlights for the year included: • 2014 Spann Oration delivered by Lord Gus O’Donnell • 2014 State Conference, streamed live on the web for our regional members, with an address by NSW Premier, the Hon. Mike Baird MP • CEO and Young Professionals Breakfast and the Budget Briefing Breakfast.

We also continue to offer a broad range of public sector specific professional development programs to expand the capabilities of staff at all levels of the public sector. In 2016, we will begin introducing new offerings to our suite of professional development programs to complement our current services. You can read more about these new services in the Outlook section on page 14.

The success and reputation of IPAA NSW is a direct result of the contributions of the members of the Council and the staff of IPAA NSW. I would like to thank them for their continued commitment and dedication.

Andrew Cappie-Wood President, IPAA NSW

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IPAA NSW COUNCIL A Council of 12 IPAA NSW members currently guides the NSW Division in achieving its strategic goals. Ten Councillors are elected for two-year terms, five each alternate year. The Chief Executive Officer is an ex-officio member and there is provision to co-opt additional members to Council if necessary.

All elected positions on Council are honorary and elected Councillors receive no stipend for their work.

COUNCIL MEMBERS 2014–15 PRESIDENT 1

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eter Achterstraat AM FIPAA P Principal, Evans & Peck (until November 2014) ndrew Cappie-Wood FIPAA, A Secretary, NSW Department of Justice (from November 2014)

VICE PRESIDENTS 3

arolyn Burlew FIPAA C Consultant

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adeleine Culbert M Director, Development, Land and Housing Corporation, Department of Family & Community Services

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usan McHattie S Director, Operations, OPOD, NSW Department of Justice

COUNCILLORS 6

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YOUNG PROFESSIONAL COUNCILLORS

obert Alder R Managing Director Paythru Pty Limited (until November 2014) ylie Cochrane K Communications and Stakeholder Engagement Lead, Aurecon Group (until May 2015) lbert Olley A Executive Director Business Services, Department of Family & Community Services

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aina Aspin D Principal Project Officer, Program & Service Design, Department of Family & Community Services

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lare Huxley C Manager, ePlanning NSW, Department of Planning and Infrastructure (until November 2014)

CO-OPTED COUNCILLOR 13

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ivek Thompson N Project Director, New Democracy Foundation (until November 2014)

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J ohn Carnegie (ex-officio) Chief Executive Officer, IPAA NSW

Jennifer Mason PhD Candidate

IPAA NSW ANNUAL REPORT 2014–15

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YEAR IN REVIEW. Reviewing and developing strategies to position IPAA NSW to meet the future challenges of a disruptive and rapidly changing environment.

During 2014–15 IPAA NSW embarked on a major reform agenda. The development of our digital strategy provided the platform for significant changes designed to not merely respond to existing challenges but also to position and leverage IPAA into the future. The first stage of this strategy included a major review of our website which resulted in a complete rebuild of the site utilising responsive technology to make it fresh, contemporary and mobile friendly. This strategy aimed at developing IPAA as an aggregator of relevant knowledge and information.

The new website includes a discrete members section as well as the knowledge repository, Ignite. Ignite incorporates a vast array of national and international content including the academic journal, the Australian Journal of Public Administration.

Ignite provides a dual find and digest navigation process via the NSW Public Service Commission’s Capability Framework and specific themes of interest to make it easy to find and retrieve articles, videos, tools, documents, audio interviews and presentations. A full-time staff resource is dedicated to curating the site and constantly sourcing content so that it remains fresh and current with high-quality contributions from a wide range of sources.

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Ignite is supported by the CEO’s newsletter, a fortnightly digest which highlights the CEO’s pick of recent articles and includes thought leadership pieces as well as a description of the latest content.

During the year we also enrolled members into The Mandarin, a new online daily news service which focuses exclusively on public sector issues, news and commentary. The Mandarin complements our new website and forms part of our digital approach.

DEVELOPING STRATEGIES SO THAT IPAA NSW WILL BE THE ASSOCIATION THAT PUBLIC SECTOR PROFESSIONALS WANT TO ENGAGE WITH

In the past year, IPAA NSW embarked on the second stage of the digital strategy. This involved research and analysis around the rapidly changing professional training and development marketplace. The development of enhanced technology for what is often called eLearning has disrupted this market and provided a range of innovative opportunities to develop new services and expand our reach.

The primary focus for this research has been around the potential to develop a Digital Learning Academy for members. This would incorporate the current program of offline courses and also provide the opportunity to explore fresh new content including webinars, speed talks, training courses, access to university qualifications and hybrid programs.

A key focus for the future will be developing a stronger thought leadership agenda, combined with strengthening our networking and collaboration capabilities. IPAA NSW will also focus on exploring the value of social learning networks.

The enhancement to our event management and membership software, the creation of the Digital Learning Academy and the development of membership analytics and data management will enable IPAA NSW to improve our value proposition for members. It will also be the first time we are able to provide real value for potential members in regional areas and support our ambitious membership acquisition strategies.

IPAA NSW ANNUAL REPORT 2014–15

During the past year we created, managed and delivered a number of professional development and networking opportunities including: • Annual State Conference • key corporate events such as International Women’s Day, Spann Oration, Picnic in the Park and the Young Professionals Breakfast • Senior Executive Master Classes • a suite of scheduled workshops and Customised Agency Professional Development Programs • hosting international delegations.

These events and our other activities are crucial in supporting IPAA NSW to develop strategies to position us as the association that public sector professionals want to engage with, join and contribute to. This important work is crucial in helping to shape the focus of IPAA’s future in an environment where traditional public sector departments and agencies have been disrupted as a result of public sector reform.

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DEVELOPING INITIATIVES AND STRATEGIES SO THAT IPAA NSW WILL BE THE ASSOCIATION THAT PUBLIC SECTOR PROFESSIONALS WANT TO JOIN During the past 12 months, IPAA NSW has continued to expand and develop a range of events and workshops that are relevant to the public sector in this dynamic state of reform. The development of Corporate Partnerships has been undertaken with the clear intent of strengthening the relationships with senior executives across the NSW public sector. These partnerships will also allow us to develop a Program Advisory Committee to provide stronger insight into thought leadership topics and IPAA NSW’s program of events. It is anticipated that Partnership Agreements will be developed, negotiated and implemented during the next financial year.

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ENSURING SOUND CORPORATE GOVERNANCE IPAA NSW achieved a very positive above-budget financial performance for 2014–15 in a very difficult environment, in which time and financial pressures within the public service continued to limit the availability of staff to attend events and courses.

IPAA NSW had anticipated a negative result as it set about rebuilding the Association for the future.

However, due to the hard work and dedication of the IPAA team and some innovative marketing, we not only exceeded budget but also produced a positive result for the year – an outstanding outcome given the difficult circumstances and the pressure on agency funds.

During the year the Constitution for the Association was redrafted and approved at the AGM to allow greater flexibility in co-opting suitable skilled senior executives onto Council. This will greatly support the development of a stronger, skilled and capable Council as we respond to the disruptive environment we operate within.

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Lord Gus O’Donnell presenting the 2014 Spann Oration

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Guests enjoying Picnic in the Park in the Royal Botanical Gardens

At the AGM our long-serving Peter Achterstraat stepped down after concluding his time as Auditor General and taking up a new role within the private sector. Peter has been a major stalwart of IPAA and stepping in at a time when IPAA NSW was in a difficult situation. Without his leadership, support and contribution IPAA NSW may not have survived and, as such, IPAA owes Peter a large debt of gratitude. We are very pleased that Peter continues to be a strong supporter of IPAA. We are also extremely grateful to Andrew Cappie-Wood, a previous President of IPAA, who generously offered his support to IPAA NSW and was elected as its new President unopposed. Andrew recently returned to the NSW public sector as Secretary of the NSW Department of Justice. We were very fortunate to have been able to attract a person of such standing as Andrew to this position. We are grateful, too, to the new Secretary of the NSW Department of Premier and Cabinet, Blair Comely, who kindly agreed to become Patron to IPAA NSW, and we thank him for his support and leadership.

IPAA NSW ANNUAL REPORT 2014–15

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DEVELOPING INITIATIVES AND STRATEGIES SO THAT IPAA NSW WILL BE THE ASSOCIATION THAT PUBLIC SECTOR PROFESSIONALS WANT TO ASSOCIATE WITH

OUTCOMES > IPAA NSW is known across the public sector as the Professional Association for Public Servants > Public sector professionals attend IPAA NSW events and courses on a regular basis > IPAA NSW is seen as the pathway to career development and promotion > IPAA NSW International is continuing to develop

RAISING OUR PROFILE In a time of significant change, a key element in positioning IPAA NSW is creating a stronger value proposition to attract and expand our membership base. The development of our digital assets is a key element of this strategy and an important element in addressing the limitations created by bricks and mortar events in the Sydney CBD. IPAA NSW recognises that online delivery works to resolve geographical limitations and offers the opportunity to redefine our member experience. Whilst hybrid solutions are currently preferred, IPAA NSW is working to develop multichannel delivery platforms to provide both online and offline services and enhance the social learning aspects of our activities.

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The Hon. Mike Baird MP, IPAA NSW 2014 State Conference

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CEO & Young Professionals Breakfast: L to R: John Carnegie, Michael CouttsTrotter, Kate Borrer, Aaron Alacantara, Iona Krefel, Tim Orton and Andrew Cappie-Wood

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Budget Briefing Breakfast (L to R): Mark Patterson, Tom Burton, Mary Foley and Philip Gaetjens

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During 2014–15 we have spent considerable time researching, exploring and thinking about this issue and we have shaped the next stage of our digital strategy to allow us to ‘sandbox’ options, source appropriate partners and clarify the range of services that our members will value and utilise.

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IPAA NSW ANNUAL REPORT 2014–15

The development of a range of Partnership Agreements will also play a major part in raising our profile.

These partnerships include Corporate Partnerships with State Government agencies, Strategic Alliances with other agencies, Learning Partnerships with the university sector and Knowledge Partnerships with major private sector organisations including consulting firms.

PROFESSIONAL DEVELOPMENT PROGRAM Scheduled Workshops Our scheduled workshops were attended by 885 people in 2014–15.

We conducted 58 programs over 115 training days: 57 programs were run at above break-even point; 31 programs attracted over 85% capacity; 9 programs were added due to popular demand; 16 programs were cancelled due to low numbers (6 in the July–December period and 10 in the January–June period).

Customised Agency Programs In 2014–15, 281 workshops were delivered over 305 days through Customised Agency Programs (CAPs): 203 in the Sydney metropolitan area and 78 in regional NSW. This involved delivery to the Commonwealth Government (3 agencies), Local Government (3 Councils), State Government (51 agencies) and NGOs/ Statutory Authorities (7 agencies).

Other highlights of the Customised Agency Programs included delivery of a Leadership Development Program and a Leadership Fundamentals Program.

Well-attended and popular programs during the year were:

Pathway to Career Development and Promotion

• Policy Development: The Basics

The 2015–16 Services Guide now includes a succinct summary of each course. This year the Service Guide was sent to over 1,250 people including members of IPAA, CEOs and Learning and Development professionals within agencies and organisations.

• Policy Development: Advanced • Diploma of Government (Policy Development) • Project Management: The Basics • Applied Project Management • Writing Briefs and Reports • Writing Ministerial Correspondence • Writing in the Modern Public Sector • Taking Good Minutes • Program Evaluation • PCTP Level 1 Understanding Public Sector Procurement • PCTP Level 2 Effective Procurement Capabilities.

Our Professional Development Pathway includes online courses which offer participants a flexible, accessible and affordable way to build the skills, knowledge and capabilities necessary to succeed in the public sector today.

The program has been developed to align with the NSW Public Sector Capability Framework and provides opportunities for individuals to manage their career and for organisations to support and enable their workforce planning initiatives.

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IPAA has developed their programs and the professional pathway options in collaboration with agencies, senior executives and PTD specialists. This alignment has resulted in a greater focus on key result areas and a stronger collaborative approach to enable us to continually adapt, complement and enhance our programs to meet organisational needs.

The expansion of our online offering will enable a greater reach across regional and remote areas as well as expanding the freedom, flexibility and channel options for our members.

The continuing development of professional pathways across and within the sector will remain a key driver for IPAA and a strong focus for our improvements in the coming years.

Events IPAA NSW held over 30 events in the last 12 months aimed at providing a range of professional development opportunities for public sector professionals. Highlights were: • State Conference – Transforming our future: the changing face of the Public Sector, 17 July 2014 • Drive Your Career Conference for Women, 6 August 2014 • 10th National Investigations Symposium, 5–7 November 2014 • 13th CEO & Young Professionals Breakfast, How to manage your career for success, 1 May 2015 • The Annual Budget Briefing Breakfast, 26 June 2015.

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IPAA NSW ANNUAL REPORT 2014–15

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KRA 2.

DEVELOPING INITIATIVES AND STRATEGIES SO THAT IPAA NSW WILL BE THE ASSOCIATION THAT PUBLIC SECTOR PROFESSIONALS WANT TO ENGAGE WITH

OUTCOMES > Public sector professionals look to IPAA NSW for professional development and networking opportunities > IPAA NSW connects and engages those already associated with the Institute > Participants continue to engage with the Institute beyond their initial introduction through a course or event > Individuals continue to engage with IPAA NSW by participating in more advanced programs > Individuals and agencies actively look to IPAA NSW for professional development and networking opportunities > Senior executives engage with IPAA NSW > Public sector professionals engage with the Institute through key corporate events

PROFESSIONAL DEVELOPMENT AND NETWORKING OPPORTUNITIES FOR PUBLIC SECTOR PROFESSIONALS Attendance at events continues to be healthy, with some events selling out.

The successful series of events, Stewards of the Public Sector: On the Couch, continued, with Dr Michele Bruniges AM, Philip Gaetjens, Blair Comley PSM and Carolyn McNally each being interviewed by Monica Attard. Dr Kerry Schott AO is planned for the second half of 2015.

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The 10th biannual National Investigations Symposium was held in November 2014. The event, which is run jointly by IPAA NSW, the NSW Ombudsman and the Independent Commission Against Corruption (ICAC), was a great success with over 350 registrations, the largest number of attendees in the event’s history.

The 2015 International Women’s Day was well attended with the venue reaching capacity and a waitlist created. Nazha Saad and Jo Grisard were the keynote speakers.

Over 650 people attended the annual CEO & Young Professionals Breakfast this year, with a panel addressing the theme, How to manage your career for success.

IPAA NSW ANNUAL REPORT 2014–15

A further two senior executive women lunches are planned for the second half of 2015: the annual Women’s Executive Luncheon with guest speakers Jodi McKay MP and MaryAnn O’Loughlin AM FIPAA and a special Women’s Leadership Luncheon with Deborra-Lee Furness.

KEY CORPORATE EVENTS Key corporate events included: • Spann Oration, delivered by Lord Gus O’Donnell, 11 November 2014 • Picnic in the Park, 13 February 2015 • International Women’s Day Celebration, with speakers Nazha Saad and Jo Grisard, 5 March 2015

INDIVIDUALS’ AND AGENCIES’ ENGAGEMENT A yearly Marketing Plan was developed and implemented to ensure that IPAA NSW was promoted sector wide. Senior executives of our agency partners have been generous in promoting key corporate events to help drive engagement.

• 2015 CEO & Young Professionals Breakfast, 1 May 2015

IPAA NSW held a number of events targeted at senior executives, which were well attended. They included the On the Couch series, the Women’s Executive Luncheon, the Helen Nelson Masterclass, the National Investigations Symposium, the CEO and Young Professionals Breakfast and the annual Budget Briefing Breakfast.

During the On the Couch events, Dr Michele Bruniges AM, Philip Gaetjens, Blair Comley PSM and Carolyn McNally were interviewed by Monica Attard.

• Annual Budget Briefing Breakfast, 26 June 2015, with Philip Gaetjens and a panel including Graeme Head and Dr Mary Foley facilitated by Tom Burton • Mary Ann O’Loughlin AM FIPAA and Jodi McKay MP have been secured to speak at the 2015 Women’s Executive Luncheon, scheduled for the second half of 2015

SENIOR EXECUTIVE ENGAGEMENT

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• A special Women’s Leadership Luncheon is planned for the second half of 2015 with international guest speaker Deborra-Lee Furness.

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Percy Allen and Andrew Cappie-Wood at Picnic in the Park at the Royal Botanic Gardens

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International Women’s Day (L to R): Madeleine Culbert, Nazha Saad, Jo Grizzard and Virginia Briggs

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Stewards On the Couch (L to R): Peter Achterstraat, Michele Bruniges, Monica Attard and Adrian Renouf

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IPAA NSW ANNUAL REPORT 2014–15

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KRA 3.

DEVELOPING INITIATIVES AND STRATEGIES SO THAT IPAA NSW WILL BE THE ASSOCIATION THAT PUBLIC SECTOR PROFESSIONALS WANT TO JOIN

OUTCOMES > New members extend their membership beyond the first year > IPAA NSW is seen as the ‘must join’ Association for senior executives in the NSW public sector > Current members promote the Institute > The National voice of IPAA is heard and taken to be authoritative > Members are engaged through forums > The quality of service provided to members is outstanding > Members are proactive with the Institute > Contributions to the development of the public sector increase > Partner organisations add value to IPAA membership > National Fellows are given high profile > SIGs and Networks have a clear plan for each year

SENIOR EXECUTIVE INITIATIVES In partnership with Nous Group, we held the Helen Nelson Masterclass on 12 August 2014, which was attended by senior executives.

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CONTRIBUTIONS TO PUBLIC SECTOR DEVELOPMENT The core goal of all IPAA NSW programs is to make a positive contribution to the continuing development of the public sector in NSW. Professional development workshops were held throughout the year on a range of topics relating to the NSW Public Sector Capability Framework. Stimulating events were also held through most of the year and a range of IPAA publications, including

IPAA NSW ANNUAL REPORT 2014–15

the Australian Journal of Public Administration, Public Administration Today and Ignite, were regularly distributed to members. Major events were held in conjunction with other agencies, including the NSW Public Service Commission and the NSW Department of Premier and Cabinet.

The Premier of NSW, the Hon. Mike Baird MP, delivered a keynote address at the State Conference.

PARTNER ORGANISATIONS In 2014–15, IPAA NSW continued its existing partnerships with key private sector organisations including PwC, EY, Minter Ellison, Commonwealth Bank of Australia, Nous Group and DLA Piper. It consolidated relationships with Government partners: the Department of Premier and Cabinet, the Public Service Commission, NSW Treasury, the Department of Finance and Services, and NSW Parliament. IPAA NSW also maintained relationships with sponsors who provide in-kind

support which assists us in offsetting expenses. Sponsors included ARTD Consultants, KJA, Nugan Estate and the Song Company.

National Fellows In 2014, IPAA NSW nominated two members for the award of National Fellow and both nominations were successful. IPAA NSW members Leanne Wallace and Mike Allen AM were the successful recipients.

Fellows are regularly acknowledged at IPAA NSW events and their contributions publicised in various publications.

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Spann Oration, PwC

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The Hon. Mike Baird MP and Peter Achterstraat at the IPAA NSW State Conference

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Spann Oration (L to R): Graeme Head, Lord Gus O’Donnell, John Carnegie and Andrew Cappie-Wood

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IPAA NSW ANNUAL REPORT 2014–15

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KRA 4.

ENSURING SOUND CORPORATE GOVERNANCE

OUTCOMES > IPAA NSW continues to provide sound leadership and management of resources > IPAA NSW improves our internal processes to increase productivity and provide more effective services to members and the sector > IPAA NSW embeds quality assurance and risk management processes in all decision making > IPAA NSW investigates new income sources to ensure a secure revenue base > IPAA NSW broadens the skills and diversity of our staff to match our strategic needs

SOUND LEADERSHIP AND MANAGEMENT OF RESOURCES The 2015 audit by PwC was very extensive and no significant issues were detected and a satisfactory result was achieved. The auditors were pleased with the functioning of our systems and reporting standards.

IMPROVEMENT OF INTERNAL PRODUCTIVITY

QUALITY ASSURANCE AND RISK MANAGEMENT

IPAA NSW continues to use e-commerce facilities to drive business through the website, with all confirmation and debt-recovery emails being automated. We will be examining the enhancements that our back-end software, EventsPro, will provide when it is upgraded to Event Air in the next financial year. This will include expanded membership modules and the opportunity this provides for integration with our stage two digital strategies.

IPAA NSW held regular Audit and Risk Management meetings throughout the financial year. The Risk Register is updated regularly and risk management systems are in place.

We have had a significant level of turnover of long-standing staff and this phase of renewal has allowed IPAA NSW to tap into part-time staff and to adjust and change the staff structure.

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IPAA NSW ANNUAL REPORT 2014–15

NEW MARKETS A request to manage and provide accredited procurement training in Queensland (similar to the current arrangement in NSW) was received following discussion between Queensland and NSW Procurement. This was negotiated with the Queensland Procurement Transformation unit and an MOU was signed in April 2015. Delivery of these programs will commence in the next financial year.

BROADENED SKILLS OF STAFF TO MATCH OUR STRATEGIC NEEDS The IPAA NSW staff members are a small dedicated team of highperforming professionals who are committed and agile. The NSW Division is the largest in terms of revenue and membership compared to other Divisions and currently represents approximately 45% of the National membership.

The IPAA NSW office has on average 12 staff with some working part time. It is an extremely modest office yet it is able to achieve delivery of a significant program of work while at the same time investing in reforming the Association by developing new channels and delivery platforms.

This is possible due to the dedication, innovation and skills of the staff. The strength of our staff has enabled the Institute to not only meet its operational needs but also to develop a deeper understanding of its business model and to start the process of a strategic redesign of its core functions. Without

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the staff’s wholehearted participation in organisational development programs (both formal and on-the-job training) and innovative strategic development, the reinvention of IPAA NSW would not be possible.

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CEO & Young Professionals Breakfast, Kate Boorer

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Stewards On the Couch (L to R): Adrian Renouf, John Carnegie, Philip Gaetjens amd Monica Attard

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IPAA NSW staff photo at the IPAA 2015 National Conference

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Stewards On the Couch: Blair Comley

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IPAA NSW ANNUAL REPORT 2014–15

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THE OUTLOOK. “ Imagination is everything. It is the preview of life’s coming attractions.”

Albert Einstein

The level of disruption we experience today brings with it uncertainty, rapid change, excitement, anxiety and opportunity. IPAA NSW, like most other organisations, is trying to interpret the major trends and better understand the technological change that is rapidly evolving within our society. It is also trying to assess the impact this change will have on the public sector including how we deliver value to our citizens and how we will communicate, collaborate and evolve as a public service.

All those working in the public sector need to use more of their imagination and creativity to shape our response and create this future.

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IPAA NSW ANNUAL REPORT 2014–15

As we grapple with these changes two issues that seem to be growing in certainty is the speed at which we will have to respond as well as the growing belief that the problems we are trying to resolve are constantly changing. In the past, the public sector has often relied upon building certainty and stability and ensuring reliability and uniformity of service delivery. This has involved a reliance on precedence and continuity of services in providing a stable capable public sector. The changes we are responding to now and the future problems we will need to resolve can clash with these assumptions. We have a growing sense that the past is becoming less of a predictor for the future.

At IPAA NSW we believe that the mega trends of connectivity, the growth of online communities, the power of social learning and the speed we now need to source information and knowledge all shape the nature of the services that our Association provides to members and the broader sector.

Whilst this can create anxiety and concern, it also stimulates excitement and interest as well as the thrill of developing new and innovative solutions to these problems.

“ You have to be burning with an idea, or a problem, or a wrong that you want to right. If you’re not passionate enough from the start, you’ll never stick it out.”

Steve Jobs

This year we will be moving into stage two of our digital strategy, a key initiative of which is exploring and developing our Digital Learning Platform. We will continue our research and analysis from last year into the changing nature of learning and commence building a platform that can combine the growth of online learning with existing face-to-face training and learning programs. Our evaluation of social learning strategies and their integration with traditional training and development strategies will allow us to develop a platform that creates value for our members and expands the services we provide.

“ It’s not where you take things from it’s where you take them to.”

Jean-Luc Godard

IPAA NSW believes that the growth of our digital services is one of the key planks in building our future platform.

We also believe that interpersonal connectivity and personalisation will be a vital element in the development of these new services. To support this project we are partnering with appropriate private and public sector organisations and developing new services around predictive analytics, career management, coaching, and educational and personal data management.

As we look forward we believe that the traditional core public sector departments and agencies will change as the public sector reforms, service-delivery options are reviewed and new service providers are sourced from outside the traditional public sector. The future role of Associations such as IPAA will evolve as the responsibilities to support new marketplace providers creates unique challenges.

Many of the new service providers will face rapidly increasing workloads, an expanded workforce with varied levels of skill and capability and the need to quickly build core competencies so that the quality of delivery is maintained and expectations met. Many of the capability building opportunities will need to address the issue of subsidiarity and a strong regional presence. As such, the deployment of digital support services will be a key strategy to respond to these issues.

These external changes combined with the development of IPAA digital assets will enable us to explore the design of a scalable, focused and accessible platform that supports the development and evolution of the public sector.

We believe that leadership in this disrupted environment is crucial and to respond IPAA NSW will be building stronger relationships with senior public sector executives and enhancing the structure and membership of its Committees and Council. The Council will also be expanded to include a range of co-opted, targeted senior executives to provide the strategic leadership needed and to ensure that IPAA NSW is kept informed and knowledgeable and has the commitment to drive its reforms.

One of the major challenges in responding to this level of disruption is uncertainty. Uncertainty, at its worst, can delay action, inhibit innovation and encourage the status quo. Courage, supported by persistence and resilience, is often cited as the trait we need to foster to survive in this changing world. Increasingly, the tension between evidence-based decisions and innovation creates the potential to increase uncertainty.

In some cases, collecting and waiting for all of the data to support a decision may delay important actions just as making critical decisions based on guesses and perceptions can create unnecessary failure. This will be one of the important issues our leaders will have to grapple with as they develop the evolving strategic direction for IPAA and respond to the tension created by the fear of failure and the speed of change we experience today.

“ We have to continually be jumping off cliffs and developing our wings on the way down.”

Kurt Vonnegut

IPAA NSW ANNUAL REPORT 2014–15

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INSTITUTE OF PUBLIC ADMINISTRATION AUSTRALIA NSW DIV INC

FINANCIAL STATEMENTS. FOR THE YEAR ENDED 30 JUNE 2015

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IPAA NSW ANNUAL REPORT 2014–15

STATEMENT OF COMPREHENSIVE INCOME Note Revenue

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2015 $

2014 $

3,897,104

3,493,503

(2,278,476)

(1,921,528)

(899,268)

(884,811)

Expenditure Training/event costs Salaries and related costs (including casual employees) Other/membership costs

(55,679)

(51,146)

Administration costs

(348,983)

(342,820)

Consultancy costs

(177,451)

(182,760)

Divisional Levy

(41,410)

(36,396)

Rental equipment

(8,608)

(9,737)

Postage and telephone

(14,354)

(8,977)

Travel costs

(11,088)

(13,003)

Insurance

(5,592)

(7,073)

Prizes and awards

(3,285)

(8,538)

Total expenditure

(3,844,194)

(3,466,789)

Surplus for the year

52,910

26,714

Total comprehensive surplus/(deficit) transferred to accumulated funds

52,910

26,714

The statement of comprehensive income is to be read in conjunction with the notes to the financial statements set out on pages 19 to 20.

STATEMENT OF CHANGES IN EQUITY Accumulated Surplus $ Balance at 30 June 2013

807,602

Surplus for the year

26,714

Balance at 30 June 2014

834,316

Balance at 30 June 2014

834,316

Surplus for the year

52,910

Balance at 30 June 2015

887,226

The statement of changes in equity is to be read in conjunction with the notes to the financial statements set out on pages 19 to 20.

IPAA NSW ANNUAL REPORT 2014–15

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BALANCE SHEET Note

2015 $

2014 $

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1,188,090

1,127,720

32,448

31,439

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370,352

363,040

1,590,890

1,522,199

4,633

11,545

112

4,035

ASSETS Cash and cash equivalents Term Deposit Trade and other receivables Total current assets Property, plant & equipment Intangible assets Total non-current assets Total assets

4,745

15,580

1,595,635

1,537,779

LIABILITIES Trade and other payables

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354,214

388,823

Deferred income

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294,289

217,893

37,856

52,106

686,359

658,822

Employee benefits Total current liabilities Employee benefits

22,050

44,641

Total non-current liabilities

22,050

44,641

Total liabilities

708,409

703,463

Net assets

887,226

834,316

Accumulated surplus

887,226

834,316

Total equity

887,226

834,316

EQUITY

The balance sheet is to be read in conjunction with the notes to the financial statements set out on pages 19 to 20.

STATEMENT OF CASH FLOW 2015 $

2014 $

1,127,720

1,148,496

52,910

26,714

Depreciation

10,834

18,434

Movement in accounts payable

(34,608)

19,784

Movement in deferred income

76,396

115,763

Movement in accounts receivable

(7,312)

(154,533)

Movement in annual and long service leave

(36,841)

(15,699)

Cash provided by operating activities

61,379

10,463

-

200

Opening Cash Balance OPERATING ACTIVITIES Surplus/deficit Items not affecting cash:

INVESTING ACTIVITIES Sale of PPE Investments/term deposits made

(1,009)

(31,439)

Cash provided by investing activities

(1,009)

(31,239)

FINANCING ACTIVITIES Cash provided by financing activities Net change in cash and cash equivalents

-

-

60,370

(20,776)

Cash and cash equivalents at beginning of period

1,127,720

1,148,496

Cash and cash equivalents at end of period

1,188,090

1,127,720

The statement of cash flow is to be read in conjunction with the notes to the financial statements set out on pages 19 to 20.

18

IPAA NSW ANNUAL REPORT 2014–15

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

1. Significant accounting policies

Donations in kind

Institute of Public Administration Australia NSW is a foundation domiciled in Australia. The financial report was authorised for issue by the Councillors on 15 September 2015.

The company receives various pro-bono services and donations in kind.

Revenue has not been brought to account in the financial statements for services that management is unable to reasonably estimate the value of. Revenue has been brought to account in the financial statements for contributed assets as management is able to reasonably estimate the fair value of these assets. Income from donations and appeals is recognised on a receipts basis.

The significant policies which have been adopted in the preparation of this financial report are:

a. Statement of compliance In the opinion of the Councillors, the entity is not a reporting entity. The financial report of the entity has been drawn up as a special purpose financial report for distribution to the members and for the purpose of fulfilling the requirements of the Associations Incorporations Act 2009 (NSW).

The special purpose financial report has been prepared in accordance with the requirements of the Associations Incorporations Act 2009 (NSW) and the recognition and measurement aspects of all applicable Australian Accounting Standards (“AASBs”) adopted by the Australian Accounting Standards Board (“AASB”) and other authoritative pronouncements of the AASB that have a material effect.

The financial report contains all those disclosures considered necessary by the Councillors to meet the needs of the members.

The entity has not applied any Australian Accounting Standards issued but not effective as at 30 June 2015 and there is not expected to be any material impact once the standards are adopted.

b. Basis of preparation The financial report is presented in Australian dollars.

The financial report is prepared on the historical costs basis. Noncurrent assets are stated at the lower of carrying amount and fair value less costs to sell, less impairment losses.

d. Property, plant and equipment Owned assets Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation and impairment losses.

Depreciation is charged to the income statement on a straight-line basis over the estimated useful life of 2 to 5 years.

e. Intangible assets Intangible assets that are acquired by the entity are stated at cost less accumulated amortisation and impairment losses.

Subsequent expenditure Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred.

Amortisation Amortisation is charged to expenses within the statement of comprehensive income on a straight-line basis over the estimated useful life of intangible assets. The estimated useful life is: • Computer software 3 years

f.

Goods and services tax

The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Income, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

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

g. Employee entitlements

The accounting policies set out below have been applied consistently to all periods presented in the entity’s financial report.

c. Revenue recognition Revenues are recognised at fair value of the consideration received net of the amount of goods and services tax (GST).

Membership income Commercial income is recognised when it is probable that economic benefits will be received and that specific events are certain to occur.

Membership subscription income Income is recognised on the date that membership commences.

Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet.

Long-term service benefits The entity’s net obligation in respect of long-term service benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates, and is discounted using the rates attached to the Commonwealth Government bonds at the balance sheet date which have maturity dates approximating to the terms of the company’s obligations.

Wages, salaries and annual leave Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date represent present obligations resulting from employees’ services provided to reporting date, are calculated at undiscounted amounts based on remuneration wage and salary rates that the entity expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax.

Grant income Government and corporate grants are recognised as revenue when specific project goals are met and the grant is earned.

IPAA NSW ANNUAL REPORT 2014–15

19

5. Cash and cash equivalents

h. Trade and other receivables Trade and other receivables are stated at their amortised cost less impairment losses.

i.

Trade and other payables

Bank balances

Trade and other payables are stated at their amortised cost.

j.

Call deposits

Cash and cash equivalents

Cash and cash equivalents

2015 $

2014 $

204,061

301,050

984,029

826,670

1,188,090

1,127,720

Cash and cash equivalents comprise cash at bank and call deposits.

6. Trade and other receivables

k. Impairment The carrying amounts of the entity’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.

Impairment losses are recognised in expenses within the statement of comprehensive income, unless an asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess recognised through profit or loss.

The recoverable amount of assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

l.

Expenses

2015 $

2014 $

Trade receivables

239,804

Provision for impairment

(15,000)

245,341 (15,000)

Prepayments

145,548

132,699

370,352

363,040

294,289

217,893

2015 $

2014 $

Trade creditors

116,947

124,722

Other creditors and accruals

237,267

264,101

354,214

388,823

Deferred Income

7. Trade and other payables

Operating lease payments Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern of the benefit. Lease incentives received are recognised in the income statement as an integral part of the total lease expense and spread over the lease term.

8. Council members Council members during the financial year ended 30 June 2015 include: Mr Peter Achterstraat (to November 2014) Mr Andrew Cappie-Wood (from November 2014)

m. Finance income

Ms Carolyn Burlew

Finance income is comprised of interest receivable on funds invested.

Interest income is recognised in the income statement as it accrues, using the effective interest method.

Ms Kylie Cochrane (to May 2015)

2. Revenue

Ms Jennifer Mason (co-opted)

Ms Madeleine Culbert Ms Susan McHattie Ms Clare Huxley (to November 2014)

2015 $

2014 $

Training / Events Income

3,590,724

3,027,312

Member Subscriptions

127,375

141,465

Mr Albert Olley

Sundry Income

12,742

27,464

Ms Daina Aspin

IPAA National Secretariat fee

116,600

126,600

Consultancy and Delegation income

7,057

94,209

Agency Partnership income

13,000

50,000

Finance Income Total revenue

29,606

26,453

3,897,104

3,493,503

3. Income tax expense The entity is a registered not-for-profit organisation and is exempt from income tax in accordance with section 23(e) of the Income Tax Assessment Act. It is also exempt from fringe benefits, capital gains taxes and state payroll tax. It is a GST registered entity.

4. Auditor’s remuneration The auditor of the entity received $10,295 remuneration during the period.

20

IPAA NSW ANNUAL REPORT 2014–15

Mr Robert Alder (to November 2014) Ms Nivek Thompson (to November 2014) Mr John Carnegie (ex-officio)

9. Members guarantee The Institute of Public Administration Australia New South Wales Division Inc. was incorporated in New South Wales on 31 March 1988, under the Associations Incorporation Act 1984 (NSW)(“the Act”). If the Institute is wound up, the Constitution states that each member is required to contribute a maximum of the amount, if any, unpaid by the member in respect of membership of the Institute of Public Administration Australia New South Wales, towards the meeting of any outstanding obligations of the Entity. At 30 June 2015, the number of members was 872 (2014: 905).

Surplus property The assets and income of the Entity shall be applied solely in furtherance of its above mentioned objects and no portion shall be distributed directly or indirectly to the members of the Entity except as bona fide compensation for services rendered or expenses incurred on behalf of the Entity.

In the event of the winding up or the cancellation of the incorporation of the Entity, the Entity shall pass a special resolution nominating an association as the association in which it is to vest its surplus property pursuant to section 53(2) of the Act. This nominated association must have similar objects and rules prohibiting the distribution of its assets and income to its members.

IPAA NSW ANNUAL REPORT 2014–15

21

Independent auditor’s report to the members of Institute of Public Administration Australia NSW Div Inc Report on the financial report We have audited the accompanying financial report, being a special purpose financial report, of Institute of Public Administration Australia NSW Div Inc (the Institute), which comprises the balance sheet as at 30 June 2015, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the Councillors’ declaration.

Councillors of the Institute responsibility for the financial report The councillors of the Institute are responsible for the preparation of the financial report and have determined that the basis of preparation described in Note 1 to the financial statements, which forms part of the financial report, is appropriate to meet the needs of the members.

The councillors of the Institute responsibility also includes such internal control as the councillors of the Institute determine is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the councillors of the Institute, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Auditor’s opinion In our opinion, the financial report gives a true and fair view of the financial position of the Institute as at 30 June 2015 and its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements.

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation.

Basis of accounting and restriction on distribution and use Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The Financial Report has been prepared by the Councillors for the members of the entity. The Financial Report has been prepared to assist the Institute of Public Administration Australia NSW Div Inc. to meet the requirements of the Associations Incorporation Act 2009. As a result, the financial report may not be suitable for another purpose. Our report is intended solely for the members of Institute of Public Administration Australia NSW Div Inc.

PricewaterhouseCoopers

Peter Buchholz Partner

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation.

Sydney 15 September 2015

Level 6, Bligh House 4–6 Bligh Street, Sydney NSW 2000 GPO Box 904, Sydney NSW 2001 t 02 9228 5225 f 02 9241 1920 e info@nsw.ipaa.org.au