❓ A parliamentary question regarding a $60 million reduction in expenditure at the Department of Primary Industries and Regional Development (DPIRD) in 2017-18, focusing on project underspends, salaries, and vacancy delays. The Minister's response provides explanations for the underspends and delays, attributing them to project management variations, integration processes, and sound business management.
AnsweredQoN 1667Legislative Council
Asked
9 October 2018
Member
Portfolio
Regional Development; Agriculture and Food; Minister Assisting the Minister for State Development, Jobs and Trade
QuestionView source ↗
I refer to page 11 of the 2017-18 Annual Report on State Finances , and specifically the $60 million reduction in expenditure relating to the Department of Primary Industries and Regional Development (DPIRD), and I ask: (a) please advise what proportion of the $60 million in reduced expenditure can be applied to each of the three sub-bullet points being project underspends, salaries and depreciation; (b) with respect to project underspends, please detail the project name and description, amount and reason for underspend; (c) for each project identified in (b), please advise if the total funding amount has changed or if funding for the project has been re-profiled to reflect milestones; (d) with respect to salaries please advise the positions affected and therefore contributed to the $60 million in reduced expenditure; (e) what are the reasons for delays in filling vacancies as highlighted in the 2017-18 Annual Report on State Finances ; and (f) have the operations of the agency been impacted by the vacancies identified in (d) and, if so, to what extent?
AnswerView source ↗
Answered
8 November 2018
Responded by
Minister for Regional Development; Agriculture and Food; Minister Assisting the Minister for State Development, Jobs and Trade
Response time
11 days
(a)
(b) DPIRD delivered a large number of projects outcomes in 2017/18. In line with usual project management practice, there are expected variations to projects, resulting in some underspends, which have result in approval for carryover and re-profiling of the remainder of funds into 2018/19 ( see attached table). The key reasons for these project variations include (but are not limited to): reallocation of staff resources to deliver emergency responses including citrus canker; seasonal conditions; outcomes of research trials; industry engagement and consultation requirements; review and change of project scope and/or deliverables, delays in commencement and construction, reprioritisation to higher priority projects; delay in meeting project milestones; recruitment, procurement, contractual management and finance systems processes. A very limited number of projects had their funds re-purposed to higher priority projects.
(c) Consistent with past practice, consideration of project underspends will form part of the Mid-Year Review (MYR) process which is not yet complete.
(d) The reduced salary expenditure of $6.8 million (approximately 3% of salaries) is consistent with the normal variances in public sector vacancy rates, and reflects sound business management principles. It is not possible to detail every vacancy that contributed to the savings, as it would be comprised of many positions for various periods during the year.
(e) In the course of the 2017-18 financial year, the Department has progressed the integration of the activities of the agencies operating prior to the Machinery of Government changes announced in 2017. During the integration, all priority vacancies have been managed with minimal disruption, although the organisational design process has resulted in some delays in filling some positions.
(f) The Department has maintained key services in the locations and for the periods where vacancies existed.
(b) DPIRD delivered a large number of projects outcomes in 2017/18. In line with usual project management practice, there are expected variations to projects, resulting in some underspends, which have result in approval for carryover and re-profiling of the remainder of funds into 2018/19 ( see attached table). The key reasons for these project variations include (but are not limited to): reallocation of staff resources to deliver emergency responses including citrus canker; seasonal conditions; outcomes of research trials; industry engagement and consultation requirements; review and change of project scope and/or deliverables, delays in commencement and construction, reprioritisation to higher priority projects; delay in meeting project milestones; recruitment, procurement, contractual management and finance systems processes. A very limited number of projects had their funds re-purposed to higher priority projects.
(c) Consistent with past practice, consideration of project underspends will form part of the Mid-Year Review (MYR) process which is not yet complete.
(d) The reduced salary expenditure of $6.8 million (approximately 3% of salaries) is consistent with the normal variances in public sector vacancy rates, and reflects sound business management principles. It is not possible to detail every vacancy that contributed to the savings, as it would be comprised of many positions for various periods during the year.
(e) In the course of the 2017-18 financial year, the Department has progressed the integration of the activities of the agencies operating prior to the Machinery of Government changes announced in 2017. During the integration, all priority vacancies have been managed with minimal disruption, although the organisational design process has resulted in some delays in filling some positions.
(f) The Department has maintained key services in the locations and for the periods where vacancies existed.
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