Page title

1.0 Statement of Compliance

For the year ended 30 June 2018

Hon David Templeman MLA
Minister for Local Government; Heritage; Culture and the Arts

In accordance with section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament, the Annual Report of the Department of Local Government, Sport and Cultural Industries for the reporting period ended 30 June 2018.

The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006.

9 October 2018

Responsible Minister

Hon David Templeman
Dip Tchg, BEd, MLA
Minister for Local Government; Heritage; Culture and the Arts

Contents

• 1.0 Statement of Compliance
• 2.0 Director General’s foreword
  • 2.1 Overview of the department>
  • 2.2 Portfolio structure
  • 2.3 Organisational structure
  • 2.4 Executive leadership
  • 2.5 Administered legislation
  • 2.6 Compliance with other legislation
  • 2.7 Performance management framework
  • 2.8 Resource agreement
• 3.0 Significant issues impacting the agency
  • 3.1 Specific issues impacting the State Records Office
• 4.0 Agency performance
  • 4.1 Service 1 - Regulation and support of local government
  • 4.2 Service 2 - Promotion and support of multiculturalism
  • 4.3 Service 3 - Arts industry support
  • 4.4 Service 4 - Research, policy development, information and support
  • 4.5 Service 5 - Corporate and asset and infrastructure support to culture and arts
  • 4.6 Service 6 - State information management and archival services
  • 4.7 Service 18 - Licensing - evaluation and determination of applications
  • 4.8 Service 19 - Compliance audits and inspections
  • 4.9 Service 20 - Industry leadership and infrastructure development
  • 4.10 Service 21 - Building capacity and participation
  • 4.11 Service 22 - Recreation camps management
• 5.0 Disclosures and legal compliance (included in the downloadable document)
  
  • 5.1 Financial statements (included in the downloadable document)
  • 5.2 Notes to the financial statements (included in the downloadable document)
  • 5.4 Ministerial directives (included in the downloadable document)
  • 5.5 Other financial disclosures (included in the downloadable document)
  • 5.6 Governance disclosures (included in the downloadable document)
  • 5.7 Board and committee remuneration (included in the downloadable document)
  • 5.8 Other legal requirements (included in the downloadable document)
• 6.0 Government policy requirements (included in the downloadable document)
  • 6.1 Substantive equality (included in the downloadable document)
  • 6.2 Occupational safety, health and injury management (included in the downloadable document)
• 7.0 Appendices (included in the downloadable document)
  • 7.1 Affiliated bodies (included in the downloadable document)
  • 7.2 Related bodies (included in the downloadable document)
  • 7.3 Funded organisations (included in the downloadable document)

2.0 Director General’s foreword

The first year of operations for the Department of Local Government, Sport and Cultural Industries has been a year of change, challenges and achievements.  

Following its establishment on 1 July 2017 the department has been implementing internal structural change, including the integration and rationalisation of duplicate functions, such as finance, ICT, human resources, information management and corporate communications.

During September the former Department of Aboriginal Affairs Aboriginal History (WA) team transferred to the department. I was also pleased to establish and appoint a new corporate executive leadership team, which has a mandate to drive the department’s strategic priorities.

During this period of delivering reform, the department also delivered on key outcomes, including the completion of Optus Stadium.

The much-anticipated opening of the stadium and Stadium Park was a major achievement, with the Community Open Day attracting about 55,000 people. The world-class facility, which is managed by VenuesWest, has since hosted capacity crowds for sporting and entertainment events.

The New Museum for Western Australia project entered the delivery phase. The $396 million initiative will be a world class experience for Western Australians and tourists alike and will be ready for opening in 2020.  

The department is progressing the Government’s election commitments as a priority, including the review of the Local Government Act 1995, progressing Stop Puppy Farming legislation and the launch of the Contemporary Music Fund.
The department has also progressed the most significant reforms of Western Australia’s liquor laws in a decade, with amendments to the Liquor Control Act 1988.

Over the past 12 months the department has continued to promote participation, inclusivity and achievement, through True Sport and the Female Multicultural Uniform Guide. It has delivered on important initiatives such as commemorating the centenary of the Moore River Native Settlement and the Mogumber Cemetery.

The long-term Cultural Infrastructure Strategy, which for the first time puts traditional and contemporary Aboriginal culture at the centre of a strategy to identify opportunities for cultural infrastructure, was also launched.

The 2017-18 Department of Local Government, Sport and Cultural Industries’ annual report demonstrates the breadth of projects and programs that have been undertaken by the department in the past year.

Thank you to all staff for their hard work, particularly during the transition to a new department.

I would also like to thank Minister David Templeman, Minister Mick Murray, Minister Paul Papalia, Minister Ben Wyatt and the Directors General of our partner agencies for their support during the Machinery of Government changes.

We will continue to work collaboratively with government, community organisations, peak bodies and other stakeholders towards our vision of an enlivened Western Australia with successful communities and economy.  

Duncan Ord
Director General
Department of Local Government, Sport and Cultural Industries
September 2018

2.1 Overview of the department

Vision

Enlivened and successful communities and economy

Mission

To facilitate lively communities and economy and the offering of outstanding and inclusive sporting and cultural experiences

Values

Vision – Excellence – Integrity – Diversity – Leadership

Objectives

• To partner with local government to deliver good governance to community
• To promote participation and achievement in sport, recreation, culture and arts
• To support and grow the cultural industries
• To promote the benefits of cultural diversity and social inclusion
• To provide opportunities in the hospitality sector by reducing red tape on the liquor and gambling industries
• To celebrate Aboriginal culture and preserve history and traditions

We will achieve this by

• Working collaboratively across other State Government departments
• Creating synergies and finding efficiencies in business functions
• Responding proactively to State Government imperatives such as election commitments and stated strategic priorities
• Contributing to the achievement of Government targets
• Community focussed engagement and partnerships

2.2 Portfolio structure

The Department of Local Government, Sport and Cultural Industries was established on 1 July 2017 under the Public Sector Management Act 1994.

At 30 June 2018, the department was responsible to the following Ministers:

Hon David Templeman Dip Tchg BEd MLA
Minister for Local Government; Heritage; Culture and the Arts

Hon Michael (Mick) Murray MLA
Minister for Seniors and Ageing; Volunteering; Sport and Recreation

Hon Paul Papalia CSC MLA
Minister for Tourism; Racing and Gaming; Small Business; Defence Issues; Citizenship and Multicultural Issues

Hon. Benjamin (Ben) Wyatt MLA LLB, MSc
Treasurer; Minister for Finance; Energy; Aboriginal Affairs

2.3 Organisational structure

The department’s organisational structure at 30 June 2018 was as follows:

• Director General
  • Assistant Director General
    • Portfolio Governance
  • Deputy Director General
    • Local Government Regulation
    • Racing, Gaming and Liquor Regulation
  • Executive Director Culture and the Arts
    • Culture and the Arts Portfolio Policy and funding
  • Executive Director Sport and Recreation
    • Sport and Recreation Policy and funding
  • Executive Director Planning and Service Delivery
    • Local Government, Sport and Recreation, Culture and the Arts
  • Executive Director Infrastructure
    • Local Government, Sport and Recreation, Culture and the Arts
  • Executive Director Office of Multicultural Interests
  • Executive Director, Corporate Services
    • Human Resources
    • Director Digital Strategy
    • Corporate Functions eg. Information Management
  • Chief Finance Officer
  • Director, Aboriginal Culture and History

2.4 Executive leadership

The Department of Local Government, Sport and Cultural Industries has the following divisions: Regulation, Culture and the Arts (WA), Sport and Recreation (WA), Planning and Service Delivery, Aboriginal History (WA), Office of Multicultural Interests (WA), Infrastructure and Corporate Services.

Below are the executive leadership roles at 30 June 2018.

• Director General, Duncan Ord
• Deputy Director General, Michael Connolly
• Assistant Director General, Margaret Butcher
• Executive Director Corporate Services, Glen Kar
• Executive Director Planning and Service Delivery, Nick Sloan
• Executive Director Sport and Recreation (WA), Nick Sloan
• Executive Director Culture and the Arts (WA), Colin Walker
• Director Aboriginal Culture and History (WA), Anna Wyatt
• Executive Director Office of Multicultural Interests (WA), Kim Ellwood (acting)
• Executive Director Infrastructure, Position vacant

2.5 Administered legislation

The following legislation was administered by the department at 30 June 2018:  

• Art Gallery Act 1959
• Caravan Parks and Camping Grounds Act 1995
• Cat Act 2011
• City of Perth Act 2016
• Combat Sports Act 1987
• Control of Vehicles (Off-road Areas) Act 1978
• Dog Act 1976
• Dog Amendment Act 2013
• Gaming and Betting (Contracts and Securities) Act 1985
• Library Board of Western Australia Act 1951
• Liquor Control Act 1988
• Local Government (Miscellaneous Provisions) Act 1960
• Local Government Act 1995
• Major Events (Aerial Advertising) Act 2009
• Museum Act 1969
• Perth Theatre Trust Act 1979
• Racing and Wagering Western Australia Act 2003
• Racing and Wagering Western Australia Tax Act 2003
• Racing Bets Levy Act 2009
• Racing Penalties (Appeals) Act 1990
• Racing Restriction Act 2003
• South Fremantle Oil Installations Pipe Line Act 1948
• Sports Drug Testing Act 2001
• State Records Act 2000
• Sunset Reserve Transformation Act 2014
• The Western Australian Turf Club Act 1892
• Western Australian Greyhound Racing Association Act 1981
• Western Australian Trotting Association Act 1946
• Western Australian Turf Club (Property) Act 1944
• Western Australian Sports Centre Trust Act 1986

2.6 Compliance with other legislation

The Department of Local Government, Sport and Cultural Industries complied with all relevant legislation that governed its functions.

2.7 Performance management framework

Broad State Government goals were supported at agency level by specific outcomes actioned through 11 department services. The department’s performance is outlined in Section 4: Agency Performance and Section 5.3: Detailed Key Performance Indicators information.

Government Goal: Results-Based Service Delivery: Greater focus on achieving results in key service delivery areas for the benefit of all Western Australians.

Note: The numbering of Services in the table above reflects their numbering in the Portfolio’s Budget Papers.

Changes to the outcome-based management framework

As this is the first reporting year for the department the outcome-based management framework reflects the amalgam of the former agencies’ outcome-based management frameworks. This format will be continued for the 2018-19 reporting year as outlined in the 2018-19 Budget Papers, during which time the department is developing its new outcome-based management framework to be effective for the 2019-20 reporting period.

Shared responsibilities with other agencies

The department did not share any responsibilities with other agencies in 2017-18.

2.8 Resource agreement

The following performance information (financial and non financial) is the subject of a Resource Agreement signed by the Minister for Local Government; Culture and the Arts, Minister for Sport and Recreation, Minister for Racing and Gaming; Citizenship and Multicultural Interests, the Accountable Authority and the Treasurer under Part 3, Division 5 of the Financial Management Act 2006.

The relationship of Ministers to services is shown below.

3.0 Significant issues impacting the agency

City of Perth Panel of Inquiry

A Panel of Inquiry into the City of Perth was announced on 2 March 2018 by the Minister for Local Government under the Local Government Act 1995. Mr Tony Power was appointed on 24 April 2018 to conduct the Inquiry and will investigate and report on the operations and affairs of the City of Perth to determine:

• whether there has been a failure to provide for the good government of persons in the City of Perth’s district
• the prospect of such good government being provided in the future, including by reference to whether the council and administration has the ability to, and is likely to do so
• any steps which may need to be taken to ensure that such good government does happen in the future.
  The Inquiry has the powers of a Royal Commission and will discharge its role independently and objectively.

Integrated planning and reporting

Integrated planning and reporting is a framework for Western Australian local governments to establish local priorities, linking this information to operational functions.  Under the Local Government Act 1995, all local government authorities are required to produce a ‘plan for the future’.  The department periodically reviews the plans published by local governments and uses the findings to inform its development and capability efforts, driving further improvements in local government planning.  In 2017-18 the department reviewed 52 plans representing about 38 per cent of all local governments.

Authorised inquiries

Authorised inquiries investigate the operations and affairs of local governments and have identified systemic weaknesses in the sector, in the areas of:

• tendering and procurement
• financial management
• failure to disclose financial interest or proximity interest
• misuse of corporate credit cards
• sponsorships and gifts
• complaints management.

Further, the procurement and financial processes that local governments use may leave them vulnerable to fraud, corruption and other misconduct. Through authorised inquiries the department provides recommendations to local governments that may include training in specific areas and changes or updates in policies or procedures. This may also include referrals to relevant agencies such as the Corruption and Crime Commission and the Public Sector Commission.

Authorised inquiries are initiated under the Local Government Act 1995. They are one of several activities undertaken by the department aimed at ensuring that local governments are acting in the best interests of their communities. They also ensure that communities have confidence in their elected members to provide good governance and services.
During 2017-18 the department undertook the following authorised inquiries:

• Town of Cambridge.
• Shire of Carnarvon.
• City of Joondalup.
• City of Mandurah.
• City of Melville.
• Shire of Ngaanyatjarraku.
• Shire of Perenjori.
• City of Perth.
• Shire of Wiluna.

Except for the City of Perth Authorised Inquiry, which ceased due to the appointment of a Panel of Inquiry on 24 April 2018, the remaining eight authorised inquiries were still current at 30 June 2018.

Public open spaces

Sustained population growth, outer corridor greenfield development and urban densification during the last decade has increased the pressure on public open space in Western Australia. The department is working with other Western Australian State Government agencies to ensure public open space is identified early in the planning process to meet current and future demand for sport and recreation facilities.

Recreational trails

Recreational trails in Western Australia have the capacity to build regional jobs, generate tourism, contribute to community development and positively influence wellbeing. The department has completed a ‘trails planning strategy’ and is working with local government and other agencies on implementation. 

Aboriginal History Research Service

The department’s Aboriginal History Research Service (AHRS) has experienced a growing demand from Western Australia’s Aboriginal community for family history information. In 2017-18, AHRS processed a total number of 1031 requests, 24 per cent greater than the number of requests received in the previous year.  It also responded to 299 family history applications, 64 per cent greater than the number of applications received in 2016-17.

Multicultural Interests

With almost a third of its population born overseas, Western Australia faces a range of social and economic opportunities and challenges:

• There is an ongoing need for strategies that encourage shared values and develop a sense of belonging across different cultural, linguistic and faith-based communities.
• Support is required for programs that improve access to resources and services, and greater participation in social, civic and political life particularly in the youth and ageing culturally and linguistically diverse (CaLD) population.

Programs are increasingly needed that support economic participation through employment and entrepreneurship, and effort is required to leverage the cultural assets of CaLD and migrant communities to strengthen the position of Western Australia internationally.

3.1 Specific issues impacting the State Records Office

Storage

There has been a lack of appropriate storage space and infrastructure at the State Records Office since July 2001. As a result, there are now 58 linear kilometres of hard copy State archives which are currently awaiting transfer to the State Archives Collection.

Government agencies have been directed to keep these historically significant archives in their own custody until the State Records Office can accept further transfers. In addition, there is currently no capability to ensure digital information and records of permanent value are transferred to the State Records Office for ongoing preservation.

Without a centralised digital archive, digital information and assets are at risk of loss over time. The databases and electronic document management systems that are in place in government agencies are not designed to ensure permanent preservation of digital information.

Recordkeeping training

The State Records Act 2000 requires that the State Records Office assist in the provision of training to State and local government agencies in matters related to information management and record keeping. Resourcing requires the State Records Office to prioritise training requests accordingly.

4.0 Agency performance

The department’s 2017-18 funding was allocated to 11 services. The key financial indicators are presented below with a summary of the results for the department’s effectiveness and efficiency indicators. The remainder of this chapter summarises the key strategies and achievements across these 11 services.

Outcomes, services and key performance information

The Outcomes, Services and Key Performance Information reflect the amalgamation of the Departments of Culture and the Arts; Racing, Gaming and Liquor; and Sport and Recreation due to Machinery of Government changes on 1 July 2017, as well as local government and multicultural interests’ functions transferred from the Department of Local Government and Communities, and the Aboriginal History Research Unit and cultural functions from the Department of Aboriginal Affairs. Comparative information has been included from the former departments’ audited data.

Report on Operations

Actual Results versus Budget Targets

# Target excludes expenditure associated with State Records Office and Building Maintenance related to the Statutory Authorities.

1. As specified in the Budget Statements
2. The Department is newly created this financial year as part of the Machinery of Government changes. Explanation of the above variances are explained as follows:
   1. The variation is mainly due to the amalgamation of land and buildings within the Perth Cultural Centre and the transfer of Sunset Hospital Precinct asset from the Department of Finance.
   2. The variation is mainly due to underspending on Royalties for Regions programs, capital programs and delays in the New Museum Project.
   3. The variation mainly relates to the inclusion of State Records Office, which was not included in the original target and the expenditure associated with the Voluntary Targeted Separation Scheme.

    

4.1 Service 1 - Regulation and support of local government

The department supports local governments to fulfil their statutory obligations and to improve capability in the sector.
The department provides training, advice and support across the local government sector and uses a risk-based approach to identify those needing targeted intervention and assistance.

The department supports the sector in the provision of good governance and compliance by monitoring, promoting and enforcing compliance with the Local Government Act 1995. Through the provision of regulatory functions primarily related to the administration of the Local Government Act 1995 including approvals, compliance monitoring and other statutory support, the department assists local governments with best practice in the sector.

Key strategies

• Engage with the community and local government sector to identify opportunities for legislative and policy reforms, which empower local governments to better deliver services for Western Australian communities.
• Develop legislation to address State Government and sector priorities.
• Increase local government transparency through presentation of information regarding local government financial management and performance, for example the MyCouncil.wa.gov.au website.
• Support local governments to fulfil their statutory obligations and to improve capability in the sector.

Key achievements

• The department signed the State Local Government Agreement, enabling a new era of cooperation and partnership between State and local government.
• Oversaw the passage and implementation of the Local Government (Auditing) Act 2017 as priority legislation, making the Auditor General responsible for the auditing of local governments’ financial statements and providing for performance audits.
• Made amendments to the Local Government (Financial Management) Regulations 1996 and Local Government (Audit) Regulations 1996 that align local government audit requirements with contemporary best practices for public sector audit.
• Completed the first phase consultation on the review of the Local Government Act 1995, a key election commitment.  This was an extensive consultation, with 30 workshops held throughout WA.  The department received 243 submissions, which were analysed and considered in the preparation of policy recommendations to the State Government.  The resulting policy reforms address elected member conduct and behaviour, training, gifts, chief executive officer recruitment and performance management and increased community access to information.
• Released a consultation paper, Stop Puppy Farming, an election commitment to stop the practice.  The department held five community workshops and five workshops for Dogs West and rescue organisations across the State.  About 3000 submissions were received to the consultation paper.
• Developed the Local Government (Suspension and Dismissal) Bill 2018, which passed through the Legislative Assembly.  The Bill provides for the issuing of remedial action orders and the suspension of individual elected members where their behaviour is interfering with the ability of the local government, other elected members or staff to carry out their functions.

4.2 Service 2 - Promotion and support of multiculturalism

Through the development and implementation of policies, programs and services, the department aims to achieve the full potential of multiculturalism.

Western Australia is one of the most culturally, linguistically and religiously diverse states in Australia, with 32 per cent of the population born overseas. The State is home to people from 190 countries, speaking 240 languages and dialects, including Indigenous languages, and following 100 religious faiths.

The Office of Multicultural Interests works to achieve the full potential of multiculturalism in WA. This requires strategies that include the whole community, including business and industry groups, government and non-government agencies, culturally diverse communities and the wider community.

Key strategies

• Provide funding opportunities to support and strengthen Western Australia’s culturally and linguistically diverse communities.
• Strengthen the capacity of culturally diverse communities to maintain their cultures and address their diverse needs.
• Support the development of culturally inclusive policies, programs and services.
  Facilitate the full participation of culturally and linguistically diverse communities in social, economic, cultural and civic activities.
• Develop intercultural understanding and promote the benefits of Western Australia’s cultural and linguistic diversity. 

Key achievements

• Invested $4.3 million to support Western Australia’s culturally and linguistically diverse communities of which $1.76 million was provided in grants and subsides.
• Redeveloped the Community Languages Program to include the In-School Insertion Program. $720,000 over three years was allocated to the Italo-Australian Welfare and Cultural Centre to run an Italian insertion program for the financial years 2017-18 to 2019-20. The Italian insertion program provides teaching of the Italian language and culture in primary schools across Western Australia.
• Reviewed the Community Grants Program to enable better direction of funding to culturally and linguistically diverse community groups and service organisations.  
• Through the Interpreter Scholarship program, provided 25 scholarships for practising interpreters to upgrade their professional skills by studying three core units of the PSP50916 Diploma in Interpreting (LOTE-English) at North Metropolitan TAFE.
• Search Diversity WA was launched. The user-friendly online search facility provides information on the demographic, cultural and socioeconomic characteristics of people living across Western Australia. Details on state electoral divisions, local government areas and selected birthplace, ancestry, language and religious groups are downloadable.
• Registered users of the Diverse WA online cultural competency program increased by 20 per cent to 17,521.  
  In collaboration with the arts community, commissioned a bespoke art work from a Western Australian culturally and linguistically diverse artist for Harmony Week 2018. The art work enabled the development of a brand reflecting
• Western Australia’s multicultural community, which was adopted throughout Western Australia by schools, community groups and businesses.
• To promote Harmony Week 2018, 44 street banners were displayed along Kings Park Road in Perth. Each banner was sponsored by an organisation and featured their logo to highlight their commitment to multiculturalism in WA. Twenty organisations from sectors including mining, education and not-for profit, participated in the project.  
• Three hundred high school students participated in the second annual Harmony Week debate, which explored the question ‘Is cultural diversity a threat to the Australian way of life?’ The debate panellists consisted of representatives from Western Australian universities and youth organisations and was supported by SBS Australia.

4.3 Service 3 - Arts industry support

The department supports the delivery of arts and culture activities across Western Australia through funding programs and partnerships.

In 2017-18 the department distributed $28 million in funding to bring a vibrant mix of arts and culture to Western Australian audiences. This included $18.8 million to non-government organisations, $3 million awarded to individuals, groups and organisations through project grants and $6.7 million in Royalties for Regions funding distributed through the Creative Regions grants programs.

Key strategies

• Deliver the State Government’s arts and culture priorities.
• Promote a diverse, vibrant and sustainable cultural sector.  
• Develop arts and culture activities in the regions, including through the $24 million Royalties for Regions-funded Creative Regions program.

Key achievements

• Announced the $3 million Contemporary Music Fund, which will enable musicians and those working in the industry to build links in the local music industry, as well as nationally and internationally. The fund complements the department’s commitment to liquor reform that encourages venues which add to WA’s vitality. This provides more opportunities for live music, creating jobs for WA musicians, agents, technicians and promoters.
• Committed funding of $300,000 to introduce an annual festival to attract film makers using virtual reality technologies, with the aim of creating jobs in the creative industries and through tourism, hospitality, and events. The virtual reality festival will capitalise on the rapid global growth of the virtual reality filmmaking industry, providing a platform for innovation, creative development and industry discussion. It will showcase the work of Western Australia’s pioneering virtual reality filmmakers while providing audiences the opportunity to experience the film technology first hand.  
• Delivered funding of $344,145 to nine projects via the State Government’s Local Projects, Local Jobs program. The program is aimed at supporting a range of grass roots initiatives that will assist many local governments and not-for-profit service providers to deliver upgrades to community facilities and extend local programs.
• Supported 12 projects across two regions through the Connecting to Country grants program, delivered in partnership with the former Department of Aboriginal Affairs. The program supports intergenerational cultural transfer through trips to country for Aboriginal communities in the Halls Creek, Tjurabalan and Kalgoorlie/Goldfields regions.
• Delivered the ‘Revealed: New and Emerging WA Aboriginal Artists’ event, with support from Commonwealth, State and local governments.  The event comprised a professional development program, public symposium, exhibition and marketplace. It featured artwork from 72 new and emerging Aboriginal artists, achieved sales of $481,674 and attracted 13,000 visitors.
• Partnered with the Tourism Council Western Australia to host a tourism forum, to determine opportunities and challenges for growth in cultural tourism. The forum led to the department forming a three-year partnership agreement with Tourism Council Western Australia.
• Delivered the inaugural State Arts and Culture Partnership Honours to acknowledge the role philanthropic and sponsorship partnerships play in the sector. The department received 30 nominations from leading Western Australian arts and cultural organisations across 11 categories.  
• Partnered with the Department of Jobs, Tourism, Science and Innovation to fund the exhibition ‘Tale of Two Regions – Beautiful Western Australia’, delivered with host venue China Art Museum. The exhibition, supported by the Shanghai Municipal Administration of Culture, Radio, Film and TV, was broadcast live through local television and internet channels to an estimated 10 million families. The China Art Museum attracted about 10,000 visitors daily, with this number doubling during holiday periods. The exhibition featured three prominent and internationally recognised Western Australian photographers.
• Invested $2 million in production of homegrown feature film ‘Breath’, based on Western Australian author Tim Winton’s novel of the same name. ‘Breath’, filmed entirely on location in the Great Southern region, supported an estimated 150 jobs over the project’s life, generating $5.6 million short-term benefit for the local economy.

4.4 Service 4 - Research, policy development, information and support

The department contributes to the development of the State by delivering strong evidence-based culture and the arts policy, research and planning to achieve State Government outcomes.

4.4.1 Aboriginal history and research

The department’s Aboriginal History (WA) (AHWA) unit provides the most authoritative Aboriginal family history service in Western Australia. It gives Aboriginal people access to historical family records and specialist research to trace their genealogical information. The extensive family history collection is used to progress significant projects that build knowledge and understanding of Aboriginal history and promote reconciliation.

AHWA responds to requests from native title representative bodies, and government agencies seeking native title information. Redacted copies of information are provided to academics and researchers in response to research applications. The department works closely with many external organisations to verify ancestral information ensuring accuracy of the work and is also frequently approached to provide expert knowledge to assist in the development of significant projects.

Key strategies

• Work in partnership with Aboriginal people, communities and other stakeholders to connect and educate the Western Australian community on Aboriginal history, establish family links and promote reconciliation.
• Manage access to restricted historical and personal record collections.
• Conduct family history research for the Aboriginal community.
• Provide expert research and advice to the public, government and non-government organisations related to Western Australia’s Aboriginal history.
• Use Aboriginal history collections to undertake significant historical projects.
• Build reconciliation in schools and the broader community through the Partnerships Acceptance Learning and Sharing (PALS) program.
• Coordination of the annual Reconciliation Week Street Banner Project throughout the State. The project provides organisations with the opportunity to publicly demonstrate their commitment to reconciliation by sponsoring banners during Reconciliation Week, which are displayed in prominent locations in Western Australia.

Key achievements

• Provided comprehensive responses to 299 family history requests, 26 native title requests, 30 general research applications and 42 legal requests.  Dealt with 618 general enquiries from internal and external stakeholders.
• Continued development of an online database to store and organise digitised records and enable the Aboriginal community to access, search and request their personal and family histories online. The database will help preserve irreplaceable historical images, photos and documents for future generations. It will also assist the department to respond to the steadily increasing numbers of family history and other research applications.
• Continued to grow participation in the successful PALS program, with 58 per cent of all public, private and independent schools in Western Australia now participating in a PALS reconciliation project, through the PALS grants program. In 2017-18 669 PALS projects were developed in 620 schools across the State. Projects include
• Aboriginal Elders providing on-country learning experiences relevant to local Aboriginal history and connection to country, and Aboriginal students involved in writing projects to describe their experiences growing up in the Kimberley.
• Coordinated 335 Reconciliation Week Street Banners sponsored by 115 organisations across 17 local government areas.
• Significantly progressed the publication ‘No Less Worthy’, the first to acknowledge the significant contribution of Western Australian Aboriginal people who volunteered to enlist in World War One. It recognises those who served and identifies those who attempted to enlist but were rejected due to policies of the time. To date, only 60-70 Aboriginal volunteers are formally acknowledged on official national registers. Through significant genealogical and archival research, the department has identified 137 volunteers.
• Partnered with Yokai (Healing Our Spirit) and Yorgum Aboriginal Corporation to host a 10th anniversary commemoration event for the National Apology to Aboriginal People, assisted by the Metropolitan Redevelopment Authority.
• In collaboration with the Department of Planning, Lands and Heritage, and consultation with community representatives, held an event to commemorate the centenary of Moore River Native Settlement (MRNS). The department undertook significant research to update the cemetery burial register and provided advice for the correction and updating of information on the memorial wall.
• Collaborated with the ABC and Janet Holmes à Court Collections on the Djook to Jija (Sister to Sister) project, which showcased Aboriginal women artists from Western Australia.   
  Provided specialist research to SBS television for the ‘Who Do You Think You Are’ series, featuring actor Ernie Dingo.

4.4.2 Culture and arts policy research and planning

The department undertakes the development and implementation of research and industry projects to strengthen the policy basis of its programs and services.

Working with a range of stakeholders and partners, the department provides information and opportunities to foster knowledge growth, connections and access to industry intelligence. This may include statistics on cultural funding, employment, attendance and participation, and WA’s values and attitudes towards culture and the arts.

Key strategies

• Provide leadership through strong evidence-based policy, planning and legislative reform.
• Ensure effective management of the State Government’s investment in culture and the arts.
• Undertake comprehensive research and data activities that inform and underpin policy and program decisions.
• Promote and harness a rich data culture throughout the portfolio and sector.
• Complete a comprehensive review of the writing sector and deliver recommendations to support sector sustainability.

Key achievements

• Undertook stakeholder consultation process on Western Australia’s first draft cultural infrastructure strategy. The strategy was developed based on existing cultural infrastructure strategies, State planning frameworks, policies and blueprints, strategic cultural regions and cities relevant to Western Australia, emerging global trends and cultural planning best practice.  
• Partnered with other jurisdictions to support Australian Research Council projects, including Griffith University’s ‘Making Music Work: Sustainable Portfolio Careers for Australian Musicians’ and Queensland University of Technology’s ‘Australian cultural and creative activity: A population hotspot analysis’ project.
• Assisted Screenwest transition from an incorporated association within State Government to become an independent not-for-profit organisation. The transition enables Screenwest to be more responsive and flexible to industry changes and opportunities.
• Completed an extensive review of the Western Australian writing sector, with the release of the ‘Writing Sector Review Final Recommendations’. The review provides targeted, readily implementable and cost-effective recommendations providing a foundation for future policy initiatives.
• Supported the Premier’s Creative Industries Consortium to focus on leveraging Western Australia’s creative talents to increase jobs and economic diversification for the State.
• Released the draft WA Public Libraries Strategy for feedback from community members, users and non-users of public libraries, local governments, public librarians and community groups. The draft strategy was developed following extensive research and consultation with key partners including the State Library of Western Australia, Public Libraries Western Australia, Western Australian Local Government Association and local government authorities.

4.5 Service 5 - Corporate and asset and infrastructure support to the culture and arts portfolio and government

The department manages cultural infrastructure on behalf of the Government of Western Australia and the provision of centralised services to the Culture and Arts Portfolio and other agencies.

The department manages maintenance of 65 buildings that support the delivery of cultural services. These buildings are in Perth, Fremantle, Geraldton, Kalgoorlie and Albany and the majority are heritage listed. The buildings are used for various purposes including the exhibition and safe storage of the State’s collections of cultural material, performing arts, conservation and research.

The department undertakes planning and policy for cultural infrastructure and participates on major cultural infrastructure projects including the New Museum for Western Australia, transformation of the Perth Cultural Centre, and the Art Gallery of Western Australia rooftop development. The department also manages some of the services’ contracts, such as utilities, making savings through larger volume centrally managed contracts and investment in new technology. Reducing the cost of operations is an important contribution to the financial viability of the sector.

Key strategies

• Establish efficient and effective business systems and processes.
• Provide the online grants management system to culture and arts organisations that wish to apply for grants. An upgrade of the system in the reporting period means it is now more stable for all users and easier to read and navigate.  
• Deliver an agreed approach to the management of State-owned built cultural infrastructure in regional Western Australia, including about 40 separate cultural infrastructure buildings, many of which are heritage listed.

Key achievements

• The New Museum for Western Australia project entered the delivery phase. Construction work now is well advanced on the first two levels of the building and completed for the two major lift cores on the western side of the site. Structural steel truss installation commenced in June 2018. Exhibition designers Freeman Ryan Design and Thylacine Design and Project Management completed schematic designs for the new galleries in late 2017.  
• Commenced redevelopment of the Art Gallery of Western Australia rooftop space, with the design concept being selected. $7.5 million was allocated to the redevelopment and $2.5 million for new acquisitions through the Tomorrow Fund.
• Completed work on the Central Energy Plant in the Perth Cultural Centre. The investment will save about $1 million a year in electricity costs and reduce carbon emissions by up to 40 per cent for the Perth Cultural Centre buildings from 2020, when the New Museum is commissioned.
• Completed the implementation of the Tessitura Ticketing and Customer Relationship Management platform used by the Perth Theatre Trust.  

4.6 Service 6 - State information management and archival services

State information management and archival services which consists of a regulatory/advisory component for all government organisations, as well as management of and access to the State Archives Collection.

The State Records Office is the Western Australian public records authority with responsibility for managing the State Archives Collection and for regulating and providing guidance on government information management. The State Records Act 2000 prescribes the role of the State Records Office, the State Archivist and Executive Director State Records (Director of State Records), and the State Records Commission.

Key strategies

• Assist all State and local government agencies in Western Australia to meet their information management obligations under the State Records Act 2000. This includes:
  • reviewing and advising on all government agency record keeping plans prior to their approval by the State Records Commission
  • identifying agency records and data to be retained permanently as State archives, those to be archived with restricted access, and those to be legally destroyed within an approved time frame.
• Support the statutory role of the State Records Commission.
• Protect and preserve the State Archives Collection, the State’s largest documentary heritage collection.
• Ensure the State Archives Collection remains permanently accessible to all.  

Key achievements

• Assessed 44 new/amended State and local government record keeping plans - a further seven plans required no amendment. Due to Machinery of Government changes eight new organisations were required to submit record keeping plans within six months of their creation date.  All eight organisations complied, and these record keeping plans were assessed by the State Records Office.
• Assessed 20 new or amended disposal authorities for submission to, and approval by, the State Records Commission.
• Provided access to the State Archives Collection to 2460 clients at the Alexander Library Building search room in Northbridge. Received 81 requests for access through the State Records Office fee-based digitisation-on-request service for public and government clients.
• Engaged with new State Government agencies established by Machinery of Government changes from 1 July 2017, regarding their record keeping processes. The significant reform, reducing 41 departments to 25, resulted in a need to preserve and protect the provenance and ownership of defunct agencies’ recorded information. It also required the need to establish adequate and appropriate platforms and frameworks for the new agencies’ management of recorded information. The State Records Office engaged with several newly formed State Government agencies to:
  
  • guide agency personnel on the preservation and protection of the provenance and ownership of their information assets
  • outline challenges and risks in managing and preserving records while organisations were being abolished or amalgamated
  • advise on a range of cost effective record keeping measures.
• Developed the draft Born Digital Strategy to modernise records management practices across government and transition to digital recordkeeping. The high-level strategy outlines objectives for the improved management of digital information and data, and to significantly reduce creation of paper-based records, addressing cost, storage and management issues.
• Provided advice on matters relating to recordkeeping and the custody of its records to the Royal Commission into Institutional Responses to Child Sexual Abuse, as part of the Council of Australasian Archives and Records Authorities’ Royal Commission Working Group. Since the release of the Royal Commission’s final report on 15 December 2017, the working group’s focus has been on the implementation of the 23 recommendations relating to the records, recordkeeping and information sharing of institutions that care for or provide services to children. As part of the implementation of the recommendations, on 5 April 2018, the State Archivist and Executive Director State Records issued a disposal freeze for government records relating to children. The freeze applies to all State and local government organisations, as well as outsourced agents creating or maintaining relevant records for these organisations.
• Engaged a trained conservator to undertake a preservation needs assessment of the State Archives Collection to independently assess its condition. Four condition levels were identified: good; fair; poor (being unstable and showing signs of deterioration with action advisable); and unacceptable (archives extremely vulnerable and too fragile to issue for use by researchers).  While the number of items in an unacceptable condition was small, a significant proportion were categorised as being in a poor condition, where there is a risk of information loss.  
• Commissioned improvements to the State Records Office online retention and disposal application web-based system, to enable agencies to develop, submit, and revise their record keeping plans online. This will reduce costs, improve response times and allow advanced analytics and reporting of record keeping trends and practices across the State.

4.7 Service 18 - Licensing - evaluation and determination of applications

The department receives, processes and determines applications in accordance with the legislation.

The department provides a licensing service for the liquor and gambling industries.  Applications are considered and determined on their merits in accordance with the relevant legislative requirements.

Applications for the liquor industry are evaluated and determined by the Director of Liquor Licensing or appointed delegate and applications for the gambling industry are evaluated and determined by the Gaming and Wagering Commission. The department receives a service fee from the Gaming and Wagering Commission for assessing applications for the gambling industry.

On behalf of the Gaming and Wagering Commission the department enables community and sporting clubs to fundraise through community gaming activities. During 2017-18, the department approved community gaming activities that raised $80.5 million, with $32.9 million being returned to beneficiary organisations.

Key strategies

• Review practices and policies across the suite of liquor licensing applications.
• Consider applications to enable community and sporting clubs to raise funds through the conduct of various community gaming activities, on behalf of the Gaming and Wagering Commission.

Key achievements

• Considered more than 17,000 applications for the liquor and gambling industries.
• Progressed the most significant amendments to Western Australia’s liquor laws in a decade. The reforms to the Liquor Control Act 1988 are intended to support local businesses, create more jobs and enable a vibrant hospitality scene to thrive in Western Australia. The Liquor Control Amendment Bill 2018 passed Parliament on 28 June 2018. The proposed legislative amendments include:
  
  • high-risk licences being prescribed, eliminating the need for a public interest assessment for other licence applications.  Only applicants for prescribed kinds of licences will be required to satisfy the licensing authority that the grant of a licence is in the public interest.  These will include hotel, tavern, liquor store and nightclub licences.  This will reduce the impost on low-risk licence applications, such as restaurants and clubs. It will save applicants considerable time when submitting an application, as well as facilitating applications being processed in a timelier manner.
  • the maximum period for an ongoing hours extended trading permits to be increased from five to 10 years, reducing the frequency of licensees needing to reapply for extended trading permits.
  • minimising the adverse impact of packaged liquor outlets on the community by giving the Director of Liquor Licensing the ability to refuse an application if satisfied that sufficient outlets already exist within a locality.  In addition, applications for large packaged liquor outlets will not be considered where an existing large packaged liquor outlet already exists within a prescribed distance.
  • addressing the concerns of established venues and accommodating consumer expectations by streamlining licensing arrangements for existing, established, local licensees to cater at temporary and pop-up bars at short-term events. The new policy on pop-up bars includes a requirement for large-scale events to be advertised on the department’s website and be subject to objections.
  • giving equal weight to representations of the CEO of Tourism WA as that given to the Commissioner of Police and the Chief Health Officer
  • establishing a separate licence category for small bars making it easier for restaurants with a limit of 120 patrons to serve liquor without a meal
  • increasing the length of time that extended trading permits can be issued from five years to 10 years
  • new provisions to introduce ‘carriage limits’ that make it an offence for a person to carry liquor above prescribed quantities in prescribed areas of the State
  • adding a new category to the public interest assessment to allow a venue’s tourism, community and cultural benefits to be considered during the application process.
• Introduced initiatives with the aim of reducing regulatory burden and streamlining processes including:
  
  • where appropriate, removing the requirement for certain application types to be advertised; that is, restaurants, wholesalers and producers
  • amending application forms so that applicants only need to declare compliance with legislative requirements rather than providing documents for example, leases and profit sharing arrangements
  • clarifying that spirit producers can serve spirit samples with a mixer drink
  • reviewing the policy of prohibiting energy drinks being mixed with liquor in late night venues
    submitting an abridged public interest assessment when renewing extended trading permits for the same
  • days and hours previously approved
  • extending the validity period of police reports from one to five years.

4.8 Service 19 - Compliance audits and inspections

The department performs audits and inspections to verify that the provision of gambling and liquor is conducted in a responsible and lawful manner.

Under the legislative framework provided in the Liquor Control Act 1988, the department undertakes regular audits and inspections to regulate the sale, supply and consumption of liquor, and to minimise harm and ill-health to the public.  Additionally, inspections are undertaken to ensure that licensed premises are being operated and maintained to a standard that meets consumer expectations.

On behalf of the Gaming and Wagering Commission, the department undertakes audits and inspections to regulate the lawful conduct of gambling activities that are permitted under the Betting Control Act 1954, the Casino Control Act 1984, the Gaming and Wagering Commission Act 1987, and the Racing and Wagering Western Australia Act 2003.

Key strategies

• Assess applications in relation to the proposed standard of licensed premises.
• Inspect licensed premises both in terms of standards and operations.
• Educate existing and new licensees in terms of the requirements of the Liquor Control Act 1988.
• Make inspections focusing on the responsible service of alcohol.
• Assist in the resolution of noise complaints relating to licensed premises.
• Investigate complaints.

Key achievements

• Conducted 10,700 inspections, audits, investigations and assessments for the liquor and gambling industries.

4.9 Service 20 - Industry leadership and infrastructure development

The department provides strategic leadership for the sport and recreation industry and support for infrastructure development through funding and advice to sport and recreation groups State-wide, including State and local governments.

Strategic and operational policies are key contributors to the achievement of outcomes for the sport and active recreation sector. Development of policy is underpinned by a broad awareness of current and new issues which then inform the department’s programs and services.

Built and natural spaces form the settings in which sport and active recreation occurs.  Availability and accessibility of these settings contribute to participation and achievement.

Key strategies

• Influence policy settings to deliver effective outcomes for the sport and active recreation sector.
• Facilitate opportunities for economic and tourism benefits through sport and active recreation.
• Provide people in Western Australia with a variety of sport and active recreation settings.
• Facilitate access to a variety of suitable sport and active recreation settings in Western Australia.
• Enable Western Australians to have a variety of facilities capable of hosting state, national and international level competition.

Key achievements

• Launched the ‘True Sport’ campaign to support local sporting clubs and associations to adopt values associated with fairness, respect and inclusion, and to share the benefits of sport and recreation with the whole community.
• Held the first Trails Town forum in regional Western Australia to bring together key decision makers and influencers from government, the not for profit sector and business to discuss, explore and further develop trail town tourism in Western Australia.
• Advocated for strong engagement and recognition of state-based delivery in the National Sports Plan.
• Opened the Optus Stadium with a free community open day attended an estimated 55,000 people.
• Allocated $12 million from the Community Sport and Recreation Facilities Fund to boost community sport in metropolitan and regional areas.
• Commenced development of the Western Australian Motorsport Strategy to guide planning, future investment decisions and identify appropriate governance and management structures.

4.10 Service 21 - Building capacity and participation

The department provides support for organisations and personnel delivering sport and recreation State-wide from participation to the elite level through advice and funding support.

Participation in sport and active recreation contributes to mental and physical well-being and the development of strong networks and support structures within the community.  The department works together with the sporting sector to not only support talented athletes and teams to achieve in local, national and international level competitions, but support and recognise achievement at all levels.

By building on the existing capabilities of individuals and organisations, the department enables them to operate at their best and provide quality opportunities for participation in sport and active recreation.

Key strategies

• Enable sport and active recreation to make a significant and enduring contribution to the lifestyles of Western Australians.
• Facilitate access to a variety of suitable sport and active recreation settings in Western Australia.
• Establish pathways to enable achievement at all levels of competition.
• Increase the capacity and capability of individuals and organisations to provide sport and active recreation opportunities.
• Protect the integrity of the sport and active recreation industry.

Key achievements

• Provided $900,000 to sporting clubs and community organisations across Western Australia to provide pathways to participation in sport, active recreation and promote community inclusion.
• Implemented a new KidSport policy in consultation with local governments, communities and clubs. Changes include club eligibility and the introduction of a 90-day voucher expiry.
• Provided $730,000 to nine regional sports academies and networks to deliver the Regional Talent Development Network. The network provides services to help talented athletes to progress. Committed $42,000 to a regional state-wide life skills program for talented athletes.
  Provided $216,000 to 468 regional athletes through the Regional Athlete Travel Subsidy Scheme to assist with the cost of traveling to events and competitions.
• Undertook an extensive review into club development services provided by the department to determine an appropriate service delivery model. The consultation process involved 760 clubs, 92 local governments and 47 state sporting associations. The ‘Every Club’ initiative was developed in response to industry feedback.
• Delivered the following learning and development opportunities to the sport and recreation industry:
  
  • Three sport business workshops for state sporting associations with about 100 participants.
  • Fourteen club business workshops in metropolitan and nine regional areas.
  • Three industry governance courses for 75 board members and chairs from about 25 state sporting associations and peak bodies.
  • Four club development webinar series in the Pilbara.
  • Eight industry courses, including coaching and officiating, team management, and managing people.

Nine state sporting associations supported through the Young Sports Leaders program to develop youth coaches and officials through leadership and development programs.

• • Designed and delivered a coach and official leadership program for 20 development coaches and officials from state sporting associations.

4.11 Service 22 - Recreation camps management

The department provides experiential outdoor activities to the Western Australian community through the management of recreation camps.

The department’s sport and recreation camps are a successful community service operation delivering quality, affordable, accessible camp experiences in Western Australia. There are four metropolitan locations: Bickley (Orange Grove), Ern Halliday (Hillarys), Point Walter (Bicton), Woodman Point (Coogee) and one regional location at Camp Quaranup (Albany).

The camps offer ‘bed nights’ (overnight stays) and ‘participations’ (physical activity) providing a foundation for engagement with the outdoors. Since the initial capital improvements in 2007, the recreation camps have generated $40 million in revenue, that has been reinvested to improve the experiences offered at the camps. This has provided a social dividend of two million physical activity hours for the WA community, while also supporting flexible employment options in the outdoor recreation sector through employment of causal instructors and support staff.

Key strategies

• Facilitate access to a variety of suitable sport and active recreation settings.
• Provide opportunities to engage in outdoor activities and recreation camp programs.

Key achievements

• Delivered 84,219 accommodation bed nights and 141,970 activity participations through the five recreation camps.
• Delivered nearly 213,000 physical activity hours through the recreation camps programs.
• Held two successful community open days at Camp Quaranup and Bickley Outdoor Recreation Camp, fostering partnerships with local community service providers and delivering access and insight to the camp facilities.
• The Ern Halliday camp pump track completed its first full year of operation, delivering 2537 participations against a first year target of 1500.  
• Completed restoration of the Camp Quaranup isolation hospital roof.  
• Rolled out a social media interface for all recreation camp sites.
• Engaged three students and one mature-age sport and recreation trainee to work for camp operations.

5.0 Disclosures and legal compliance

5.1 Financial statements

INDEPENDENT AUDITORS REPORT

To the Parliament of Western Australia

DEPARTMENT OF LOCAL GOVERNMENT, SPORT AND CULTURAL INDUSTRIES

Report on the Financial Statements

Opinion

I have audited the financial statements of the Department of Local Government, Sport and Cultural Industries which comprise the Statement of Financial Position as at 30 June 2018, the Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows, Schedule of Income and Expenses by Service, Schedule of Assets and Liabilities by Service and Summary of Consolidated Account Appropriations and Income Estimates for the year then ended, and Notes comprising a summary of significant accounting policies and other explanatory information,including Administered transactions and balances.

In my opinion, the financial statements are based on proper accounts and present fairly, in all material respects, the operating results and cash flows of the Department of Local Government, Sport and Cultural Industries for the year ended 30 June 2018 and the financial position at the end of that period. They are in accordance with Australian Accounting Standards, the Financial Management Act 2006 and the Treasurer’s Instructions.

Basis for Opinion

I conducted my audit in accordance with the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Department in accordance with the Auditor General Act 2006 and the relevant ethical requirements of the Accounting Professional and Ethical Standards Boards APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial statements. I have also fulfilled my other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Responsibility of the Director General for the Financial Statements

The Director General is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards, the Financial Management Act 2006 and the Treasurer’s Instructions, and for such internal control as the Director General determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Director General is responsible for assessing the agency’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Western Australian Government has made policy or funding decisions affecting the continued existence of the Department.

Auditor’s Responsibility for the Audit of the Financial Statements

As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements. The objectives of my audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with Australian Auditing Standards, I exercise professional judgment and maintain professional scepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  
• Obtain an understanding of internal control relevant to the audit 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 agency’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Director General.
• Conclude on the appropriateness of the Director General’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the agency’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Director General regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report on Controls

Opinion

I have undertaken a reasonable assurance engagement on the design and implementation of controls exercised by the Department of Local Government, Sport and Cultural Industries. The controls exercised by the Department are those policies and procedures established by the Director General to ensure that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions (the overall control objectives).

My opinion has been formed on the basis of the matters outlined in this report.

In my opinion, in all material respects, the controls exercised by the Department of Local Government, Sport and Cultural Industries are sufficiently adequate to provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property and the incurring of liabilities have been in accordance with legislative provisions during the year ended 30 June 2018.

The Director General’s Responsibilities

The Director General is responsible for designing, implementing and maintaining controls to ensure that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities are in accordance with the Financial Management Act 2006, the Treasurer’s Instructions and other relevant written law.

Auditor General’s Responsibilities

As required by the Auditor General Act 2006, my responsibility as an assurance practitioner is to express an opinion on the suitability of the design of the controls to achieve the overall control objectives and the implementation of the controls as designed. I conducted my engagement in accordance with Standard on Assurance Engagements ASAE 3150 Assurance Engagements on Controls issued by the Australian Auditing and Assurance Standards Board. That standard requires that I comply with relevant ethical requirements and plan and perform my procedures to obtain reasonable assurance about whether, in all material respects, the controls are suitably designed to achieve the overall control objectives and the controls, necessary to achieve the overall control objectives, were implemented as designed.

An assurance engagement to report on the design and implementation of controls involves performing procedures to obtain evidence about the suitability of the design of controls to achieve the overall control objectives and the implementation of those controls. The procedures selected depend on my judgement, including the assessment of the risks that controls are not suitably designed or implemented as designed. My procedures included testing the implementation of those controls that I consider necessary to achieve the overall control objectives.

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

Limitations of Controls

Because of the inherent limitations of any internal control structure it is possible that, even if the controls are suitably designed and implemented as designed, once the controls are in operation, the overall control objectives may not be achieved so that fraud, error, or noncompliance with laws and regulations may occur and not be detected, Any projection of the outcome of the evaluation of the suitability of the design of controls to future periods is subject to the risk that the controls may become unsuitable because of changes in conditions.

Report on the Key Performance Indicators

Qualified Opinion

I have undertaken a reasonable assurance engagement on the key performance indicators for the Department of Local Government, Sport and Cultural Industries for the year ended 30 June 2018. The key performance indicators are the key effectiveness indicators and the key efficiency indicators that provide performance information about achieving outcomes and delivering services.

In my opinion, in all material aspects, except for the possible effect of the matter described in the Basis for Qualified Opinion section of my report, the key performance indicators of the Department of Local Government, Sport and Cultural Industries are relevant and appropriate to assist users to assess the Department’s performance and fairly represent indicated performance for the year ended 30 June 2018.

Basis for Qualified Opinion

The Department has not been able to reliably measure a key efficiency indicator, Cost Per Access Service and has elected not to report it. As a consequence, the Department has not complied with the requirement to report results for all key performance indicators approved by the Under Treasurer.

The Director General’s Responsibility for the Key Performance Indicators

The Director General is responsible for the preparation and fair presentation of the key performance indicators in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions and for such internal control as the Director General determines necessary to enable the preparation of key performance indicators that are free from material misstatement, whether due to fraud or error.

In preparing the key performance indicators, the Director General is responsible for identifying key performance indicators that are relevant and appropriate having regard to their purpose in accordance with Treasurers Instruction 904 Key Performance Indicators.

Auditor General’s Responsibility

As required by the Auditor General Act 2006, my responsibility as an assurance practitioner is to express an opinion on the key performance indicators. The objectives of my engagement are to obtain reasonable assurance about whether the key performance indicators are relevant and appropriate to assist users to assess the agency’s performance and whether the key performance indicators are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. I conducted my engagement in accordance with Standard on Assurance Engagements ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information issued by the Australian Auditing and Assurance Standards Board That standard requires that I comply with relevant ethical requirements relating to assurance engagements.

An assurance engagement involves performing procedures to obtain evidence about the amounts and disclosures in the key performance indicators. It also involves evaluating the relevance and appropriateness of the key performance indicators against the criteria and guidance in Treasurer’s Instruction 904 for measuring the extent of outcome achievement and the efficiency of service delivery. The procedures selected depend on my judgement, including the assessment of the risks of material misstatement of the key performance indicators. In making these risk assessments I obtain an understanding of internal control relevant to the engagement in order to design procedures that are appropriate in the circumstances.

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

My Independence and Quality Control Relating to the Reports on Controls and Key Performance Indicators

I have complied with the independence requirements of the Auditor General Act 2006 and the relevant ethical requirements relating to assurance engagements. In accordance with ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements, the Office of the Auditor General maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Matters Relating to the Electronic Publication of the Audited Financial Statements and Key Performance Indicators

This auditor’s report relates to the financial statements and key performance indicators of the Department of Local Government, Sport and Cultural Industries for the year ended 30 June 2018 included on the Department’s website. The Department’s management is responsible for the integrity of the Department’s website. This audit does not provide assurance on the integrity of the Department’s website, The auditor’s report refers only to the financial statements and key performance indicators described above. It does not provide an opinion on any other information which may have been hyper/inked to/from these financial statements or key performance indicators. If users of the financial statements and key performance indicators are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited financial statements and key performance indicators to confirm the information contained in this website version of the financial statements and key performance indicators.

CAROLINE SPENCER
AUDITOR GENERAL
FOR WESTERN AUSTRALIA
Perth, Western Australia
2 October 2018

Certification of Financial Statements

For the year ended 30 June 2018

The accompanying financial statements of the Department of Local Government, Sport and Cultural Industries have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the reporting period ended 30 June 2018 and the financial position as at 30 June 2018.

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

Shanaeya Sherdiwala
Chief Finance Officer
2 October 2018

Duncan Ord OAM
Director General
2 October 2018