NORTHERN TERRITORY TREASURY

Annual Report
2006 - 07
Overview 3
Performance Reporting 11
Corporate Governance 35
Treasury People 53
Financial Performance 71
Northern Territory Treasury 74
Financial Statements 2006-07
Central Holding Authority 105
Financial Statements 2006-07
Appendixes 127
Glossary 146
List of Tables and Figures 149
Northern Territory Treasury
38 Cavenagh Street
GPO Box 1974
Darwin NT 0801

General Enquiries
Tel (08) 8999 7406

Business hours: 8:00 am to 4:30 pm

N o r t h e rn T e rr i t o r y Tr e a s u r y

Annual Report
2006-07
The Honourable Syd Stirling MLA
Treasurer
GPO Box 3146
DARWIN NT 0801

Dear Treasurer

In accordance with the provisions of section 28 of the Public Sector Employment

and Management Act, I am pleased to provide to you the Annual Report of
Northern Territory Treasury for 2006-07 and to confirm that, in terms of that Act, all
Employment Instructions have been satisfied.

This report describes developments and operational outcomes during the

year in a form intended to be informative to a wide range of readers including
Parliamentarians, other Government agencies, the public and Treasury employees.

Pursuant to the Financial Management Act, I advise that to the best of my

knowledge and belief:

(a) proper records of all transactions affecting Treasury are kept and that
employees under my control observe the provisions of that Act, the Financial
Management Regulations and the Treasurer’s Directions;

(b) procedures within Treasury afford proper internal control, and that these
procedures are recorded in the Accounting and Property Manual, which
has been prepared in accordance with the requirements of the Financial
Management Act;

(c) no indication of fraud, malpractice, major breach of legislation or delegation,

major error in or omission from the accounts and records exists;

(d) in accordance with the requirements of section 15 of the Act, the internal audit
capacity available to Treasury is adequate and the results of internal audits
have been reported to me;

(e) the financial statements included in the Annual Report have been prepared
from proper accounts and records and are in accordance with Treasurer’s
Directions; and

(f) all Employment Instructions issued by the Commissioner for Public

Employment have been satisfied.

Yours sincerely

Jennifer Prince
Under Treasurer
30 September 2007

iii
How to Use this Report
This report is designed to meet
Northern Territory Treasury’s annual
reporting requirements, as specified
for public sector agencies in the
Public Sector Employment and
Management Act and the Financial
Management Act. It reports our
performance to the Treasurer, the
Legislative Assembly, government
agencies and other stakeholders. It
reflects on Treasury’s many and varied
endeavours during 2006-07, and
provides information about Treasury’s
culture, responsibilities and internal
governance arrangements.
iv Annual Report 2006-07
The Ointroduces Northern This year, the report is published in
Territory Treasury, with a profile of an electronic format (rather than in
the organisation and the Under print), with limited use of graphics
Treasurer’s review of the year to and illustrations to minimise download
June 2007. The corporate statement times. It is provided in PDF format with
outlines our objectives and values. options for downloading the entire
A summary of the past year’s report or individual sections.
achievements and the focus for the
Please consider the environment
current year is also provided.
and avoid unnecessary paper usage
Performance Reporting is a detailed before printing this document.
account of Treasury’s performance
If you need more information, please
in 2006-07 measured against
visit our website at www.nt.gov.au/ntt
achievement of the five strategic
objectives. Output performance tables
report on Treasury’s performance in
terms of the measures published in
Budget papers.
Managing the organisation describes
how Treasury functions as an
organisation, its corporate governance
arrangements and staffing. It also
reports on our financial performance
by providing financial statements for
Treasury and the Central Holding
Authority.
The Appendixes provide further details
of Treasury’s responsibilities, functions
and structure. There is also a glossary
of common Treasury terms and a list
of tables and figures.
Contents
Overview 3
Treasury Profile 4
Under Treasurer’s Review 5
Corporate Statement 7
Summary of Results in 2006-07 9
Our Focus in 2007-08 10
Performance Reporting 11
Reporting Preface 12
Objectives
1. Public Policy Advice 13
2. Financial Management 17
3. Intergovernmental Relations 21
4. Revenue Management 23
5. Superannuation 26
Output Performance Tables 28
Managing the Organisation 35
Corporate Governance 35
Treasury People 53
Financial Performance 71
Financial Statements – Treasury’s Dual Role 72
Northern Territory Treasury 74
Financial Statements 2006-07
Central Holding Authority 105
Financial Statements 2006-07
Appendixes 127
1. Directory 128
2. Functions of Treasury 130
3. Treasury’s Organisational Chart 133
4. Corporate Governance Committees 134
5. Membership of Boards and Committees 137
6. Legislation Administered 139
7. Legislative Changes 2006-07 140
8. Competitive Neutrality 142
9. Publications 143
Glossary 146
List of Tables and Figures 149
Overview
Treasury Profile 4
Under Treasurer’s Review 5
Corporate Statement 7
Summary of Results in 2006-07 9
Our Focus in 2007-08 10
Treasury Profile
Northern Territory Treasury was
established at Self Government in
1978. We are a young organisation
with an average age of 37 years and,
in our 29 years of operation, we have
developed a reputation for providing
high quality, expert advice to
Government on fiscal, economic and
commercial issues. It is a reputation
that we are proud of and work hard to
maintain.
Our Role
Treasury’s primary role is to provide
specialist financial, economic and
commercial policy advice and
services to the Northern Territory
Government to assist it in its
responsibility to deliver services
and infrastructure for the benefit of
Territorians.
 Annual Report 2006-07
Organisation Our Services
Treasury reports to the Treasurer The services Treasury provides
through the Under Treasurer. We include advice, analysis and
employ 185 staff, located in Cavenagh administration of matters relating to:
House, Darwin.
• financial management and fiscal
Our business units are grouped into initiatives;
five output groups for budgeting and • economic frameworks and the
reporting purposes. Territory economy;
Treasury is also responsible for two • commercial projects;
statutory offices: Northern Territory • own-source revenue, including
Treasury Corporation and the Utilities taxation;
Commission. Although both produce
• public sector superannuation;
their own annual reports, each forms
• borrowing and investing on behalf
part of Treasury for administrative
of the Territory; and
purposes and so summary information
• grants, subsidies and community
about their performance is included in
service obligations related to our
Treasury’s Annual Report.
responsibilities.
Further details of the functions of
our business units and statutory
authorities can be found in
Appendix 2: Functions of Treasury.
The contribution of business units to
Treasury’s strategic objectives and
output groups is illustrated on page 8.

Treasury is committed to promoting
sustainable fiscal strength, economic
development and improved social
wellbeing for Territorians by providing
the best possible analysis, advice and
services. This was again demonstrated
in 2006‑07, with high quality outputs
produced by all areas of Treasury
and continued enhancement of our
internal systems and processes.
The Annual Report provides a
detailed report on our performance
and achievements in 2006-07, as
well as highlighting the nature of
our organisation and our strategic
priorities.
National Reform Agenda
Treasury contributed significantly to
developing and implementing the
Council of Australian Governments’
National Reform Agenda. Treasury
represents the Territory in working
groups in the three streams of
human capital, competition and
regulatory reform, with other reforms
still being developed. The National
Reform Agenda aims to secure future
prosperity through further economic,
social and environmental gains.
2006 ABS Census and
Demographics
Data from the Census determines
distribution of GST and other revenues
as well as providing essential
information for planning government
services. The Territory has worked
Under Treasurer’s Review
closely with the Australian Bureau of
Statistics (ABS) for the last three years
to achieve an improved Population
Census in August 2006.
The 2006 Census data was
incorporated into the Territory’s
estimated resident population in June
2007, resulting in an increase of 4000
people – an important outcome for the
Territory.
Treasury continues to work closely
with the ABS on several data analysis
projects and is working with the ABS
on improvements for the 2011 Census.
Financial Reporting
The Budget represents one of our
most significant contributions to
the Government’s overall policy
framework. The 2007-08 Budget
was handed down in May 2007,
incorporating an extensive
infrastructure program, home
ownership initiatives, ongoing service
delivery priorities and tax reform, and
was in line with the Government’s
fiscal strategy. It also analysed
the implications of demographic
change for the Territory and provided
a summary of the Indigenous
Expenditure Review.
The 2005-06 Treasurer’s Annual
Financial Report and 2006-07
Mid‑Year Report were published,
meeting the Territory’s reporting
obligations under its own legislation as
well as intergovernmental agreements.
All these financial reports showed
ongoing improvements in the
Territory’s fiscal position and
continued clarity and transparency in
presentation.
Intergovernmental Relations
The high cost of service delivery in
the Territory and the relatively greater
needs of our population mean that
the Territory is more reliant than other
jurisdictions on funding from the
Australian Government. Thus, effective
management of intergovernmental
financial arrangements and,
in particular, the application of
horizontal fiscal equalisation by the
Commonwealth Grants Commission,
remain a high priority for Treasury.
The Commission is undertaking a
major review of relativities, to be
completed by 2010, and Treasury
has been heavily involved in the
review process, making several
submissions during the year on behalf
of the Territory. Treasury continues
to actively participate on matters
such as the simplification of existing
arrangements and the quality of data
used in assessments that underpin
the distribution of GST revenue.
Indigenous Expenditure
Review
The Territory has a large and
geographically dispersed Indigenous
population living in urban, rural and
remote areas. The cost of delivering
infrastructure and services to
Indigenous Territorians, especially
those in remote communities, can
be significant. In September 2006,
Treasury published the Indigenous
Expenditure Review, which presents
and analyses expenditure compared
to funding received by the Territory
for Indigenous-related purposes. The
review is an important piece of work
for the Territory and will be updated
annually.
Overview 
Motor Accidents
Compensation
The Motor Accidents (Compensation)
Act (MACA) defines the statutory
benefits available to people injured,
or the dependants of people killed,
in motor vehicle accidents in the
Territory. Following a review and public
consultation on proposed legislative
amendments, a new MACA benefit
structure was introduced, with effect
from 1 July 2007.
Power and Water
Corporation
In addition to advising on various
commercial projects and issues,
Treasury is responsible for the
financial management frameworks
for government owned corporations.
Following a review of Power and
Water’s financial systems, a new
Statement of Corporate Intent was
negotiated detailing Power and
Water’s operations and capital and
maintenance programs for the next
five years.
Contributing to Whole of
Government Projects
Treasury staff were involved in
a number of strategic whole of
government committees and reviews.
This includes a review to improve the
delivery of corporate services, the
review of legislation for competition
impacts and to reduce the regulatory
burden on business, public sector
wages policy and enterprise
bargaining agreements and, most
recently, the Territory’s Indigenous
Generational Plan ‘Closing the Gap’.
 Annual Report 2006-07
Superannuation
To fulfil Government’s enterprise
bargaining commitments relating to
superannuation, legislation has been
drafted to formalise the death and
invalidity scheme and to implement
member investment choice and
allocated pensions. The Australian
Government’s superannuation reforms
were implemented as they applied to
the Territory’s public sector schemes.
Tax Administration
Reflecting the Territory’s economic
growth in 2006-07, Treasury
administered and receipted over
$500 million in own-source revenue.
To simplify tax administration and
make it more transparent, legislation
was drafted for a new Taxation
Administration Act after consulting
with taxpayers and industry
professionals. To achieve greater
national payroll tax consistency, a
review of other legislative provisions is
also progressing.
Racing, Gaming and
Licensing
Late in 2006, the Government decided
that the policy priorities and regulatory
activities of the racing, gaming
and licensing function were more
aligned with the community safety
responsibilities of the Department
of Justice. This alignment has been
especially important with the growing
focus on liquor-related matters
and, more recently, relating to the
Australian Government’s emergency
response legislation for the Territory.
Well Managed and Flexible
Organisation
More was achieved during the year in
managing the organisation to improve
our capability, responsiveness and
culture.
• Corporate governance
arrangements were improved
with the review of Treasury’s
conflict of interest policy and new
policies developed on flexible work
arrangements, equity and diversity.
• Continued efforts on recruiting staff
to meet our ongoing needs included
a large entry-level program in
2006‑07. This included 20 graduate
trainees, eight cadets sponsored
for their tertiary study and three
apprentices. These programs are
key elements in our long-term
recruitment strategy.
• To extend professional development,
Treasury staff attended a range
of conferences, seminars and
other courses throughout the year.
The Manager’s Toolkit was also
developed to enhance the skills and
expertise of our managers.
Reflecting on the past year, Treasury
has again achieved much as an
organisation and I acknowledge the
effort and expertise of our staff. With
their continued commitment and hard
work, I look to the challenges in the
year ahead, confident that Treasury
will continue to make significant
contributions to the development of
the Territory.
Jennifer Prince
30 September 2007
Corporate Statement
Our Purpose
To promote sustainable fiscal strength
and economic development of the
Northern Territory, and contribute to
improved social and fiscal wellbeing
for Territorians.
Our Strategic Objectives
Treasury strives to provide:
• quality analysis and public policy
advice on economic, fiscal, social
and commercial issues;
• best practice financial management;
• effective intergovernmental financial
relations;
• a fair and efficient Territory tax
system; and
• appropriate superannuation
arrangements for the Territory
public sector.
Through a well-managed and flexible
organisation, we:
• recruit and retain high quality staff
and provide professional training,
development and encouragement;
• maintain our commitment to high
quality output; and
• ensure a safe, supportive workplace
that recognises diversity and
respects every staff member.
Our Values Our Stakeholders
Treasury’s values are underpinned by Treasury services are delivered to:
trust, integrity and professionalism.
• the Treasurer, Cabinet and
• We are committed to providing Government agencies as part of
frank, accurate and timely strategic Treasury’s whole of government and
advice. central agency responsibilities;
• Treasury staff take responsibility for • the Territory community, business
their work and behaviour and act groups and commentators
in a collaborative way with integrity, through Treasury publications and
respect and fairness. commentary;
• We recognise the dedication and • the Legislative Assembly and
expertise of our staff and support the Auditor-General as part
them in balancing professional and of Treasury’s statutory and
personal priorities. administrative responsibilities; and
Governance Principles • Treasury staff by providing a safe,
professionally challenging and
We endeavour to consider each of
supportive organisation.
these principles or criteria when
making decisions and taking action
on a day-to-day basis. The principles Figure 1 on page 8 illustrates how
reflect Treasury’s values. Treasury is organised to meet the
five strategic objectives and how this
• Accountability: Treasury and its
is represented in Budget Papers in
employees take responsibility for
their decisions and actions. terms of budget outputs.
• Transparency: decisions, actions
and advice are open to and can
withstand scrutiny, necessary to
ensure that stakeholders can have
confidence in Treasury’s decision-
making processes.
• Leadership: modelling and fostering
behaviour that supports Treasury
values, inspires and influences
others and shapes organisational
culture.
• Integrity: actively promote honesty
and ethical conduct, by upholding
appropriate standards of behaviour.
• Equity: fairness and equity in
decision making that is also free
from bias
Overview 
Figure 1: Our Purpose and Outputs

Our Purpose
To promote sustainable fiscal strength
and economic development of the
Northern Territory, and contribute to
improved social and fiscal wellbeing
for Territorians.

Strategic Objectives Business Units Budget Outputs

Public Policy Advice • Economic Policy and Frameworks • Economic
Quality analysis and public policy • Economic and Social Analysis • Economic
advice on economic, fiscal, social and • Commercial • Commercial
commercial issues
• Financial Management • Financial Management
• Territory Revenue Office • Territory Revenue
• Superannuation Office • Superannuation

Financial Management • Financial Management • Financial Management

Best practice financial management • Treasury Corporation • Treasury Corporation

Intergovernmental Relations
Effective intergovernmental financial • Public Finance • Economic
relations

Revenue Management
• Territory Revenue Office • Territory Revenue
A fair and efficient Territory tax system

Superannuation
Appropriate public sector • Superannuation Office • Superannuation
superannuation arrangements

Enable Treasury to achieve its

objectives through a well-managed, • Treasury Services Group • All output groups
flexible organisation

 Annual Report 2006-07

Summary of Results in 2006-07

Performance Reporting Page

• Significant contributions to developing the Council of Australian Governments’ National Reform Agenda 13
• Amended the Motor Accidents (Compensation) Act to reform the motor accident compensation scheme 14
• Commercial advice in relation to energy supply and performance of government owned corporations and 14
commercial entities
• Significant involvement in developing the Power and Water Corporation 2007-08 Statement of Corporate Intent 14
• Successful development and presentation of the 2007-08 Budget 17
• Implemented refinancing and new borrowing program, with $338 million borrowed in 2006-07 18
• Published the Indigenous Expenditure Review, an analysis of the proportion of Territory Government revenue 21
and expenditure which is Indigenous-related
• Implemented national tax reform initiatives, including the removal of stamp duty on hiring arrangements 23
• Progressed legislation for a new Taxation Administration Act 24
• Implemented a public sector death and invalidity scheme, and member investment choice and allocated 26
pensions for NTGPASS members
• Implemented changes for Territory public sector superannuation arrangements in order to conform with new 26
national requirements

Managing the Organisation

• Senior Management Group and six corporate governance committees led the organisation 39
• Implemented the 2006-07 internal audit program 43
• Major review undertaken of security and management of Treasury information and changes implemented 47
• Treasury’s energy management targets were well exceeded with further reductions in energy consumption and 50
greenhouse gas emissions
• Manager’s Toolkit developed to assist middle and senior level managers 57
• A record number of graduates, apprentices and cadets in 2006-07 62

Overview 
Our Focus in 2007-08

In 2007-08, in addition to managing its ongoing responsibilities, Treasury will

commence, or continue with, the following key projects and initiatives.

Priorities for Achieving Our Strategic Objectives

• Oversee the implementation of major economic reform measures including
National Reform Agenda and electricity market related initiatives.
• Finalise the review of the Territory Insurance Office Act for relevance of
current functions of the office and its operational environment.
• Continue to enhance economic and demographic modelling capabilities.
• Develop and publish the 2006-07 Treasurer’s Annual Financial Report, the
2007‑08 Mid-Year Report and the 2008-09 Budget.
• Update the Indigenous Expenditure Review to include 2006-07 data and
implement procedures to allow for annual updating of results.
• Undertake discussions with, and prepare submissions to, the Commonwealth
Grants Commission as part of the 2010 Major Review of Relativities, for the
distribution of GST revenue from the Australian Government.
• Implement the new Taxation Administration Act.
• Implement legislation to achieve agreed national payroll tax consistency.
• Implement new legislation for the Northern Territory Death and Invalidity
Scheme and enhanced superannuation products.
• Implement the allocated pensions product early in 2008.

Priorities for Managing the Organisation

• Continued emphasis on professional and management development, and
on entry-level employment programs, from apprenticeships through to the
graduate program.
• A range of corporate governance activities including finalising the 2007-08
Risk Register, implementing the internal audit plan and providing further staff
training to maintain ethical standards.
• Continued upgrading of systems and processes to ensure a high level of
information management security.

10 Annual Report 2006-07

Performance Reporting
Reporting Preface 12
Objectives
1. Public Policy Advice 13
2. Financial Management 17
3. Intergovernmental Relations 21
4. Revenue Management 23
5. Superannuation 26
Output Performance Tables 28
Reporting Preface

Treasury’s performance as an organisation is measured in terms of its five

strategic objectives, in pursuit of promoting sustainable fiscal strength and
economic development of the Northern Territory, and contribute to improved
social and fiscal wellbeing for Territorians.

1. Quality analysis and public policy advice on economic, fiscal, social and
commercial issues.

2. Best practice financial management.

3. Effective intergovernmental financial relations.

4. Management of a fair and efficient Territory tax system.

5. Appropriate public sector superannuation arrangements.

This section reports on Treasury’s performance in delivering outputs to

meet these strategic objectives. Details are provided on key projects and
achievements during the year, with performance recorded for the priorities
identified in last year’s annual report.

Performance against the measures published in Budget Paper No. 3 is reported

in the output performance tables. In almost all cases, measures were met or
exceeded. Where performance did not meet the estimate, an explanation is
provided.

Performance reporting for the Utilities Commission is included in Treasury’s

output performance tables, as performance measures are published in Budget
Paper No. 3 as part of Treasury. Performance against Northern Territory Treasury
Corporation’s business line measures is also included in this section. These two
statutory offices form part of Treasury for administrative purposes, however full
details of achievements in 2006-07 are reported in their own annual reports.

In November 2006, responsibility for racing, gaming and licensing was

transferred from Treasury to the Department of Justice. Performance reporting
on racing, gaming and licensing functions for 2006-07 is included in the
Department of Justice Annual Report.

12 Annual Report 2006-07

Objective 1:
Public Policy Advice

Strategic Objective
Quality analysis and public policy advice on economic, fiscal, social and
commercial issues.

Outputs Delivered
Analysis and policy advice on:
• national and Territory economic, social, demographic policy and statistical
issues including development and oversight of economic reforms and
frameworks;
• management of the Territory’s commercial activities and associated risks;
• whole of government resource allocation including financial management
frameworks, fiscal policy and fiscal strategy;
• Territory revenue and tax-related subsidies framework; and
• Territory Government superannuation arrangements.

Key Projects
National Reform Agenda
Treasury was an active participant
in intergovernmental working groups
established to advance the National
Reform Agenda (NRA) of the Council
of Australian Governments (CoAG).
Treasury represented the Territory
on working groups examining three
streams of NRA reform initiatives
– human capital, competition and
regulatory reform.
The NRA aims to increase the
efficiency of the Australian economy,
reduce the compliance burden
of Government regulation on
business, and increase labour force
participation and productivity by
improving national health, education
and training standards. In April
2007, CoAG approved plans for
implementing agreed NRA reforms,
which have now commenced. Other
reforms are still being developed.
Analysis from 2006
Population Census
Conducting the Australian Population
Census in the Territory is far more
difficult than elsewhere because of
the transient nature of the population
and the high proportion of Indigenous
people, many of whom live in remote
areas.
In 2005-06, Treasury worked closely
with the Australian Bureau of Statistics
(ABS) on a range of strategies to
support the ABS in conducting the
2006 Census in the Territory. The
Territory’s support was considered
essential, given the data collected
through the Census is used by the
Australian Government to determine
the distribution of untied GST revenue
to the states and territories and for tied
spending on programs such as those
for schools, housing and health.
The first results from the 2006
Census were released in June 2007
with further, more detailed releases
expected over the next 12 months.
The Territory’s estimated resident
population was increased by 4000
following incorporation of the Census
data.
Treasury is now working with ABS on
a number of collaborative projects
including analysis of data quality,
housing and mobility. Discussions
have commenced on improvements
for the 2011 Census.
General Public Policy
All Treasury’s functions involve
providing public policy advice. In
addition to the key projects presented
under this objective, public policy advice
is also provided under each of the other
strategic objectives outlined in the
Performance Reporting section.

Performance Reporting 13
Reform of Motor Accidents
(Compensation) Act
The Motor Accidents (Compensation)
Act (MACA) defines the statutory
benefits available to people injured,
or the dependants of people killed,
in motor vehicle accidents in the
Territory. The Treasurer approved a
major review of the structure of MACA
benefits in April 2005. In response to
the findings of the review, legislative
amendments were drafted and the
public consulted in November 2006.
Following consultation, which involved
soliciting input by key stakeholders,
amendments were introduced during
the February 2007 sittings of the
Legislative Assembly. The new MACA
benefit structure commenced on
1 July 2007.
Review of Electricity
Supply Industry Regulatory
Framework
The current electricity regulatory
framework has been in place for
over five years. A review to assess its
effectiveness and to consider options
for reform has been under way since
2006. CoAG requested the Territory
Government examine the merits of
adopting the national regulatory
framework for electricity, as part
of broader national energy market
reforms approved in April 2007.
Treasury is currently coordinating this
work, in consultation with national and
Territory regulatory bodies, Power
and Water Corporation and other
stakeholders.
14 Annual Report 2006-07
Energy Supply
Treasury has been a key specialist
participant in all aspects of the
ongoing and future supply of gas to
the Territory, especially in relation to
development of gas as an energy
source for electricity generation. This
includes assisting in the resolution
of matters relating to the existing
long‑term contracts for supply of
gas from the Amadeus Basin and
participating in negotiations with
current and prospective suppliers of
gas and with pipeline companies.
Commercial Issues
Undertaking commercial analysis
is one of the important tasks that
Treasury performs, particularly on the
delivery of a number of Government
projects in 2006-07. These included
commercial issues for Darwin Port,
assessment of proposals to establish
a tropical resort at Little Mindil
and the new licence agreement to
support the ongoing operation of the
SkyCity Casino in Darwin. Treasury
provided advice on the commercial,
financial and corporate governance
perspectives.
Government Owned
Corporation
The Power and Water Corporation
continued to be the Territory’s only
government owned corporation (GOC)
in 2006-07. As part of managing the
GOC framework, Treasury:
• advised the shareholding Minister
on Power and Water’s financial and
non-financial performance and other
GOC-related matters;
• managed an expert review of Power
and Water’s financial systems; and
• on behalf of the Treasurer,
negotiated with Power and Water on
its 2007-08 Statement of Corporate
Intent (SCI). The SCI sets a new
standard as informative, robust and
transparent. It covers Power and
Water’s operations, and its capital
and maintenance programs for the
next five years in detail, and also
points to expectations for a further
15 years.
Whole of Government Policy
Issues
In its central agency role, Treasury
provides advice and assistance to
other agencies on a range of whole of
government issues including:
• comments on all Cabinet
submissions;
• the financial aspects of public
sector wages policy with particular
emphasis on strategic aspects of
enterprise bargaining agreements;
• information technology, including
strategic directions and contract
evaluations;
• procurement policy and practices;
• regulatory review of competition
and business impacts for all new
and amending legislation, pursuant
to the National Reform Agenda; and
• investment advice, such as for
the Public Trustee and the Agents
Licensing Fidelity Fund.
Appendix 5 details the whole of
government boards and committees
on which Treasury is represented.
 Treasury and NTG/CDU Partnership Agreement
Four years into the Territory Government’s Partnership Agreement with Charles Darwin University (CDU), Treasury has a very productive
engagement with the university. The focus has been predominantly, but by no means exclusively, in the areas of economics and
demography including:
• a three year research study into the mobility of the Territory’s people, in partnership with CDU and the Australian Bureau of Statistics
– attracting a competitive Australian Research Council grant of $0.4 million;
• a range of research projects on the demography of the Territory population through a $0.6 million research grant over three years from
Treasury;
• contracted services of Professor Tony Barnes, a Professorial Research Fellow, to strengthen the economic, social and demographic
analysis capacity of Treasury;
• scholarships and paid work experience to encourage enrolments in economics studies (see the Treasury People section of this report);
• formal adjunct academic status with CDU for four Treasury staff (Dr Sarah Rummery, Ms Jenny Coccetti, Ms Mary Beneforti and
Mr  Phillip Eatwell) to undertake teaching, research and other collaborative activities;
• a $50 000 contribution to an Associate Professorship in Economics at CDU; and
• delivery of Graduate Certificate in Public Governance to recent Treasury graduate trainees, including accrediting major elements of
Treasury’s graduate development program towards the degree.
It is anticipated similar arrangements will continue for the foreseeable future.
In addition, Dr Ram Vemuri was appointed as an independent commissioner to determine annual contribution amounts to be paid by
motorists under the Territory’s Motor Accidents Compensation Scheme.

Output Performance
Priorities for 2006-07 Results in 2006-07

Oversight of significant micro-economic
reform initiatives.
Implementation of reforms for the Motor
Accidents (Compensation) Act.
Review of financial reporting processes
for government owned corporations and
refinement of financial reporting processes
for government owned businesses.
Enhancements to current processes for
analysis of financial aspects of gaming
licence applications.
Continued oversight of the Territory’s
electricity supply industry regulatory
framework.
Achieved – Treasury represented the Territory in relevant intergovernmental
working groups charged with developing reform measures and
implementation plans under the CoAG National Reform Agenda.
Achieved – New motor accident compensation benefits commenced on
1 July 2007.
Achieved – New frameworks for reporting processes for GOCs aligned
with internal GOC reporting requirements.
Achieved – Position papers on specific issues developed and used during
negotiations, including the Darwin casino licence agreement.
Achieved – Review to assess effectiveness of existing regulatory
regime and to assess options for reform completed. Review to assess
effectiveness of adopting national law and rules for the Territory electricity
market under way.

Performance Reporting 15
Output Performance (continued)
Priorities for 2006-07
Monitor and report on key economic
indicators and industries.
Monitor and disseminate reports on key
social issues.
Review of the Territory Insurance Office Act
for relevance of current functions of the office
and its operational environment.
Enhance forecasting and economic and
demographic modelling capacities.
Improve understanding of factors influencing
population mobility and regional population
growth.
Implement an inventory of economic and
social data sources.
Investigate and analyse 2006 Census data
and data quality.
Assist in organising the 2008 biennial
conference of the Australian Population
Association, as a major sponsor.
Results in 2006-07
Achieved – Economic Briefings and the Territory Economic Review
published regularly.
Ongoing – Disseminated analysis of social and economic conditions to
assist policy development.
In progress – Review commenced and scheduled to be completed by
December 2007, with implementation to follow.
In progress – Working with ABS to assess impacts of new Gross State
Product measure to be released in November 2007.
In progress – Continuing to work in collaboration with Charles Darwin
University (CDU) to develop Territory population projection models.
In progress – Surveys and fieldwork completed as part of a research
project with ABS and CDU.
In progress – Specifications set and a database developed, with pilot
testing commenced.
In progress – A number of Census analysis projects are under way, with
early results expected in first half of 2008.
In progress – Planning for the conference, to be held 1-4 July 2008, is well
advanced.

Future Priorities
• Oversight of the implementation of major economic reform measures including
CoAG National Reform Agenda and electricity market related initiatives.
• Finalise the review of the Territory Insurance Office Act for relevance of
current functions of the office and its operational environment.
• Continue to enhance forecasting and economic and demographic modelling
capacities.
• Through the Statistical Liaison Committee, finalise an inventory of economic
and social data sources.
• Continue to improve understanding of factors influencing population mobility
and regional population growth.
• Enhance financial analysis and financial modelling capacities.

16 Annual Report 2006-07

Objective 2:
Financial Management

Strategic Objective
Best practice financial management.

Outputs Delivered
Analysis on whole of government resource allocation and reporting of the
Territory’s financial resources through:

• whole of government budgeting and financial reporting;

• monitoring agency financial and output performance, including analysis of
agency budget proposals;
• reporting and analysis of infrastructure budget requirements and coordination
of the Infrastructure Program for Government; and
• management of financial accountabilities as prescribed in the Financial
Management Act.
Prudent management of the Government’s loans, borrowings and investment
program.1

1. Further details on achievements relating to loans, borrowing and investment programs can
be found in the Northern Territory Treasury Corporation 2006-07 Annual Report.

Key Projects Treasurer’s Annual Financial 2006-07 Mid-Year Report

2007-08 Budget
Developing the Northern Territory’s
Budget is one of Treasury’s primary
roles and a major annual activity.
The 2007-08 Budget was tabled in
Parliament in May 2007, following
intensive work and effort by a range
of Treasury staff, in collaboration with
agencies. Various processes were
enhanced, resulting in improved
timeliness and quality of financial
and policy advice to Government,
fostering better working relationships
with agencies. Budget Papers
focused on significant issues for
the Territory, including analysis of
the Territory’s demographic change
and its implications for the future,
and a summary of the Indigenous
Expenditure Review methodology and
results.
Report 2005-06 The Fiscal Integrity and Transparency
The Treasurer’s Annual Financial Act requires the release of a mid‑year
fiscal outlook report each year.
Report 2005-06, which was finalised
The 2006-07 Mid-Year Report was
in September 2006 and tabled in the
tabled in the Legislative Assembly in
Legislative Assembly in October 2006,
November 2006, updating Budget
provides a full set of financial
projections from the May 2006
statements on a sectoral and whole
Budget by incorporating Government
of government basis, along with
decisions and revised Australian
additional explanatory notes covering
Government revenue and Territory
the transition to International Financial
taxation revenue estimates. The
Reporting Standards. The Report
Report also provides revised financial
was issued with an unqualified audit
statements on a sectoral and whole
opinion against the Government
of government basis, discussion on
Finance Statistics (GFS) standard,
updated economic estimates and the
the Territory’s adopted reporting
fiscal strategy outlook for 2006-07 and
format which aligns with the Uniform
three forward years.
Presentation Framework as adopted
by all Australian jurisdictions.

Performance Reporting 17
Harmonisation of Whole of
Government Reporting
A project is under way to assure the
Territory Government’s compliance
with the proposed new Australian
Accounting Standard on whole of
government financial reporting.
The new reporting format aims to
harmonise the GFS model, currently
used by the Territory, with Australian
Accounting Standards. All Australian
jurisdictions have agreed to adopt the
new harmonised reporting standard,
to take effect for the 2008‑09 Budget
and final outcome reports. Changes
are also expected to the Uniform
Presentation Framework to allow for
alignment with the new harmonised
standard.
Financial Management Policy
Development
Treasury is responsible for
administering the Territory’s financial
management framework, including
the Financial Management Act, the
Fiscal Integrity and Transparency Act
and the Treasurer’s Directions. As part
of ongoing review of the framework,
agency budget management
and infrastructure principles
have been identified as key areas
requiring enhancement. In 2006-07,
preliminary work began to expand
Treasurer’s Directions to improve
guidance for agencies on resource
and infrastructure management,
performance and governance
practices.
18 Annual Report 2006-07
Corporate Services Review Borrowing Program
Treasury provided advice and As the Territory Government’s
analysis, as a member of the central financing authority, Treasury
Corporate Services Review Steering Corporation implemented the
Group. The review reported on shared Government’s 2006-07 borrowing
services arrangements operating program. The requirement was
for the Territory Government and lower than in recent years, with
recommended process and system approximately $338 million raised to
changes to generate efficiencies and refinance maturing debt, compared
improve services to agencies. with $593 million raised in 2005-06
and $373 million in 2004-05. The
Whole of Government smaller program reflected a lower
Staffing refinancing requirement in 2006-07.
The Office of the Commissioner for
The entire borrowing requirement was
Public Employment and Treasury
met from domestic financial and retail
continued to provide Government
markets. The bulk of funds was raised
with advice on whole of government
through a number of medium and
staffing statistics, with particular
long dated fixed interest securities,
emphasis on the budgetary
issued to institutional investors via
implications of staffing movements.
private placement and public issues.
Conditions of Service Treasury Corporation’s retail funding
Reserve source continues to provide a
The Conditions of Service notable proportion of overall funding
Reserve (COSR) is managed by requirements, with almost 27 per cent
Treasury Corporation on behalf of the borrowing program met from
of the Central Holding Authority. Territory Bonds and migration-linked
The funds are managed by three investors.
investment managers: AMP Capital
Investors Limited, Colonial First
State Investments Limited and MLC
Implemented Consulting. The COSR
fund has a long-term investment
strategy orientated towards growth
assets, such as property and shares,
and is benchmarked against the
InTech Investor Choice Performance
Growth Survey.
Over the year, the COSR fund earned
an overall return of 16.7 per cent,
1.4 percentage points above the
benchmark. Over a three year period,
the fund has generated an average
annual return of 18.0 per cent,
3.7 percentage points above its
benchmark.
Output Performance
Priorities for 2006-07
Continued focus on major projects including development
and publication of whole of government financial
information including the Budget, Treasurer’s Annual
Financial Report and the Mid-Year Report.
Continue development and amendment of Treasurer’s
Directions and financial management principles.
Assess the effect of proposed new public sector
reporting arrangements on Territory financial reports.
In conjunction with the Department of Planning and
Infrastructure, continue the review of the Works
Programming Procedures to update guidance for
agencies on Infrastructure Program matters.
Ongoing review of Financial Management Act
accountability processes and enhancements to
supporting information management systems and
processes.
Treasury Corporation will continue to develop its
business continuity planning and corporate governance
framework.
Borrowed $338 million to meet Government funding
requirements.
Results in 2006-07
Achieved
• Treasurer’s Annual Financial Report 2005-06 released
October 2006
• 2006-07 Mid-Year Report released November 2006
• Treasurer’s Quarterly Financial Report released
November 2006, February 2007 and May 2007
• 2007-08 Budget Papers released 1 May 2007
Ongoing – Expansion of new Treasurer’s Directions has
begun, with a focus on improving guidance to agencies on
financial management and performance practices.
In progress – Awaiting the release of new harmonisation
standards by the Australian Accounting Standards Board.
In progress – The joint project with the Department of
Planning and Infrastructure will continue in 2007-08 with
updated works programming principles to be included as
part of the Treasurer’s Directions.
In progress – Review has identified priority areas of agency
budget management and infrastructure for continued
policy and systems refinement in 2007-08.
In progress – New vehicle gift and loan processes
implemented. A revised approach to considering and
managing government financial interests is being
introduced, including streamlining the process for
approving contingent liabilities.
In progress – Business continuity plan developed. To be
integrated with Treasury plan.
Achieved – Lower refinancing rates achieved compared to
budget forecast.
Performance Reporting 19
Future Priorities
• Continued focus on monitoring, development and publication of critical whole
of government financial information in the Budget, Treasurer’s Annual Financial
Report and the Mid-Year Report.
• Ongoing development and amendment to Treasurer’s Directions, with
improvement of the agency budget management and infrastructure sections
as priorities for 2007-08.
• Assessment of the new Australian Accounting Standard on harmonisation of
whole of government reporting. This will encompass a staged implementation
of the new reporting format for both budget and outcome reporting.
• Evaluate opportunities for system modules enhancement to the whole of
government Apex budget and reporting system.
• Continue to review Financial Management Act accountability processes and
supporting information management systems.
• Implement the Government’s 2007-08 borrowing program.
• Continue to develop Treasury Corporation’s business continuity planning and
corporate governance framework.

20 Annual Report 2006-07

Objective 3:
Intergovernmental Relations
Strategic Objective
Effective intergovernmental financial relations.
Outputs Delivered
Analysis and policy advice to Government on public finance issues including
management of the Territory’s participation in major intergovernmental financial
arrangements and other public finance matters.
Key Projects
Commonwealth Grants
Commission – 2010 Review
The Commonwealth Grants
Commission (CGC) is undertaking
work on the next major review of
state revenue sharing relativities to
be completed by 2010. The review
will examine all aspects of the CGC’s
approach, including the application
of the principle of horizontal fiscal
equalisation and methods by which
the calculation of relativities can be
simplified.
The Territory, represented by Treasury,
participated in a number of working
groups considering issues related to
assessment structure, simplification
of methodology and reliability of data
and methods as part of the 2010
Review.
Treasury made submissions on the
Disaggregation of Revenue and
Expenses, Socio-Demographic
Composition and Location factors,
and on Assessment Structure and
Approaches, and provided data for
the CGC 2007 Update.
Indigenous Expenditure
Review
Treasury published a detailed
review of the proportions of Territory
Government revenue and expenditure
which are Indigenous-related. The
purpose of the review was to provide
an objective analysis of the surplus
or deficit in the Territory’s Indigenous-
related expenditure when compared
to the funding the Territory receives
as a result of indigeneity. The review,
published in September 2006, was
conducted in consultation with all
Territory Government agencies.
The results and methodology are
summarised in the Territory’s 2007-08
Budget Papers. The review is to be
updated annually from 2007-08.
Council of Australian
Governments Working
Groups
Treasury represented the Territory on
two working groups on Indigenous
Generational Reform and Local
Government. Treasury’s input to
the groups focused on enhancing
Indigenous outcomes and providing
advice on the nature of, and trends
in, revenue and expenditure of local
government.
Specific Purpose Payment
Revenues
Treasury represented the Territory
on the Heads of Treasuries Specific
Purpose Payments Working Group.
This involved the preparation of a
report to the Australian Government
on options for restructuring the
Commonwealth-State Housing
Agreement on behalf of the states.
Advice was also provided to
Government and agencies in relation
to a range of intergovernmental
agreements including Indigenous
housing, Commonwealth-State and
Territory Disability Agreement, Natural
Resource Management programs and
the Australian Health Care Agreement.
Goods and Services Tax
Treasury continued to monitor
changes in the underlying parameters
that determine the Territory’s GST
revenue. GST revenue parameters
include population, national GST cash
collections and CGC relativities.
Treasury also provided advice to
Government on a range of GST-
related legislative proposals through
the year in order to protect the GST
base and therefore the Territory’s main
source of revenue.
Performance Reporting 21
Output Performance
Priorities for 2006-07
Review of Territory Government’s expenditure and
revenue related to the Indigenous population.
Preparation of submissions to the CGC.
Ongoing review of the Territory’s General Purpose
Classifications to assist with CGC assessment of
relativities.
Develop a framework for negotiation of a range of
health specific purpose payments.
Results in 2006-07
Achieved – Published Indigenous Expenditure Review in
September 2006. Summary of results included in 2007-08
Budget Papers.
Ongoing – Submissions in 2006-07 included those related
to the Disaggregation of Revenue and Expenses, Socio-
Demographic Composition and Location factors, and
Assessment Structure and Approaches.
Ongoing – Major review completed for the CGC 2007 Update.
Ongoing – Treasury has worked with the Department of
Health and Community Services to assist in developing the
negotiation framework.

Future Priorities
• Preparation of submissions to, and undertaking workplace discussions with,
the CGC as part of the 2010 Review.
• Updating the Indigenous Expenditure Review to include 2006-07 data and
implementing procedures to allow for annual updating of the results.

22 Annual Report 2006-07

Objective 4:
Revenue Management
Strategic Objective
Management of a fair and efficient Territory tax system.
Outputs Delivered
Management of the Territory’s revenue and tax-related subsidies framework,
encompassing:
• analysis and policy advice;
• administration systems;
• compliance activities; and
• community awareness and advisory services.
Key Projects
Budget Revenue Measures
Revenue measures announced in the
2007-08 Budget were developed and
implemented. These included:
• the continued implementation of the
Territory Government’s response to
National Tax Reform, as detailed in
the Intergovernmental Agreement on
the Reform of Commonwealth-State
Financial Relations, by abolishing
stamp duty on hiring arrangements;
• changes to the Territory’s home
buyer incentive schemes, such as
increasing the stamp duty first home
owner concession from the first
$225 000 of a property’s value (a
concession of up to $8 015) to the
first $350 000 of a property’s value
(a concession of up to $15 312);
• abolition of stamp duty on the
grant of a lease for nil or nominal
consideration and on all types of
guarantees;
• clarification of the stamp duty
valuation provisions; and
• changes to the Territory’s land
holder stamp duty provisions.
Further details on these revenue
measures can be found in Appendix 7:
Legislative Changes 2006-07.
National Payroll Tax
Consistency Project
In March 2007, state and territory
treasurers agreed to a national
overhaul of payroll tax arrangements.
The states and territories will adopt
common provisions and definitions
for the timing of lodgments, motor
vehicle allowances, accommodation
allowances, a range of fringe
benefits, payroll tax imposed on work
performed outside a jurisdiction,
employee share acquisition schemes,
superannuation contributions for
non‑working directors and the
grouping of businesses.
Although provisions and definitions
are to be harmonised, states and
territories will continue to determine
rates and thresholds applicable in
their jurisdictions.
These measures are currently being
developed. It is proposed that the
legislation will be implemented during
2007-08 to commence on 1 July 2008.
Performance Reporting 23
Proposed New Taxation
Administration Arrangements
Further extensive consultation on
a draft proposed new Taxation
Administration Act occurred during
2006-07. The proposed Taxation
Administration Act and legislation
for consequential amendments is
being introduced into the Parliament,
with implementation on track for
1 January 2008.
24 Annual Report 2006-07
Internet-based Payroll Tax
Return System
During 2006-07, an electronic
payroll tax payment and returns
system, known as Territory Revenue
Management electronic Returns
(TRMeR), was fully implemented. The
new system provides:
• online calculation and easy
lodgement of monthly and annual
payroll tax returns;
• the option of online electronic
payment of payroll tax;
• industry standard security and a
secure payment gateway;
• online calculation and lodgement of
payroll tax annual reconciliations;
and
• the ability to view lodgement and
payment history.
It also provides the Territory Revenue
Office with a new payroll tax
administration system. Over half the
employers in the Territory’s payroll tax
base have registered to use TRMeR.
From a survey of these taxpayers,
80 per cent of respondents found
TRMeR easy to use. Enhancements
to the system were designed and
developed during 2006‑07 and these
will be implemented in 2007‑08.
As a result, businesses will benefit
from lower compliance costs and
streamlined administration.
Output Performance
Priorities for 2006-07
Finalise legislation for a new Taxation Administration
Act.
Implement the Territory’s response to the list of
taxes for review, as detailed in the Intergovernmental
Agreement on the Reform of Commonwealth-State
Financial Relations.
Further develop and enhance revenue management
systems and related information technology, including
the implementation of an internet-based payroll tax
return and payment system.
Enhance and implement communication strategies to
increase taxpayer and subsidy recipient knowledge of
the Territory’s tax system and tax-related grants and
subsidies.
Results in 2006-07
In progress – Following further extensive consultation, the
legislation was introduced into the Legislative Assembly in
August 2007. To be implemented during 2007-08.
Achieved – Stamp duty on hiring arrangements was
abolished from 1 July 2007. The final agreed change,
abolishing stamp duty on business property, excluding
land, is scheduled for 2009.
Achieved – Enhancements to TRMeR substantially
developed during the year.
Achieved – Nine new and revised Commissioner’s
Guidelines and Circulars were issued during the year.
This information assists taxation practitioners, taxpayers
and grant and subsidy recipients in their dealings with the
Territory Revenue Office.

Future Priorities
• Implement the new Taxation Administration Act.
• Implement legislation to achieve national payroll tax consistency as part of an
agreement between all jurisdictions to lower compliance costs for businesses.
• Continue to develop and enhance revenue management systems and related
information technology, including a new stamp duty administration system and
an internet-based stamp duty lodgement and payment system.
• Continue to enhance and implement communication strategies to increase
taxpayer and subsidy recipient knowledge of the Territory’s tax system and
tax-related grants and subsidies.

Performance Reporting 25
Objective 5:
Superannuation
Strategic Objective
Appropriate public sector superannuation arrangements.
Outputs Delivered
Superannuation policy for Government and administration of the Government’s
superannuation schemes, including the relationship between national and
Territory legislation, and advice and assistance to investment and review boards.
Key Projects
Northern Territory Death and
Invalidity Scheme
The 2004-2007 Enterprise Bargaining
Agreement (EBA) included a
commitment to provide a death and
invalidity scheme for Northern Territory
Public Sector employees engaged
after 9 August 1999 in choice of
fund superannuation arrangements.
The scheme has been implemented,
with formal commencement from
1 July 2007. Eligible employees who
became totally and permanently
incapacitated or died before
1 July 2007 have been covered under
transitional arrangements.
Australian Government Better
Super Reforms
Legislation to implement the Australian
Government Better Super reforms,
designed to simplify superannuation
and associated taxation, was passed
in February 2007, with the majority
of changes coming into effect from
1 July 2007. The Northern Territory
Superannuation Office implemented
the necessary changes for the
Territory’s public sector schemes.
26 Annual Report 2006-07
Actuarial Reviews Actuary Panel
The rolling program of three-yearly During 2006-07, the arrangements
reviews of the Territory Government’s for engaging actuaries were reviewed
superannuation schemes continued, and a new panel of actuaries was
with reviews of the Police established. The panel will mainly
Supplementary Benefit Scheme and provide superannuation-related
the Commonwealth Super Scheme actuarial advice, but will also be used
(CSS) completed in 2006-07. In the for workers compensation, insurance
CSS review, the actuary recognised and other matters across Government.
that a further 200 members had The panel comprises:
been identified as the Territory’s
• Bendzulla Actuarial Pty Ltd;
responsibility. This increased the
• Cumpston Sarjeant Pty Ltd; and
Territory’s liability by $265 million and
the Budget and forward estimates • PricewaterhouseCoopers Securities
were adjusted accordingly. Also, the Ltd.
Government set aside $150 million in
Member Investment Choice
the Conditions of Service Reserve to
The EBA included the introduction
ameliorate the future budget effects of
of member investment choice for
the liability.
Northern Territory Government and
Public Authorities’ Superannuation
LAMS Investment
Scheme (NTGPASS) members.
Management
It allows NTGPASS members the
Following the successful move to
choice of five investment options,
using an implemented investment
ranging from a conservative
consultant to manage the NTGPASS
(low risk) option to an aggressive
fund, the Legislative Assembly
(high risk) option. Member investment
Members’ Superannuation Trust
choice development and testing
also transitioned to implemented
was completed in 2006-07, with
consultant funds management
implementation from 1 July 2007.
during 2006-07. MLC Implemented
Consulting provides services to
the Trust.
Output Performance
Priorities for 2006-07
Development of processes and legislative amendments
required to implement a death and invalidity scheme
for employees in choice of fund superannuation
arrangements, as well as to implement member
investment choice and an allocated pension.
Conduct information seminars for NTGPASS members on
member investment choice and allocated pensions.
Continue working with the Territory’s counsel to finalise the
NTGPASS court case.
Complete actuarial reviews of the Territory’s future
liabilities for the Northern Territory Police Supplementary
Benefit Scheme and the Commonwealth Superannuation
Scheme.
Results in 2006-07
Achieved – Legislative amendments to formalise the
death and invalidity scheme drafted, with passage of
legislation anticipated in early 2007‑08.
Member investment choice commenced on
1 July 2007. Education program completed in all
regional centres.
Allocated pension product on schedule for early 2008
commencement.
Ongoing – During the year, the Community and
Public Sector Union (CPSU) expanded the scope of
the action. In November 2006, the Territory filed its
defence. In May 2007 the matter was considered by
the Court, which ordered limited discovery in relation
to the CPSU’s claim. The matter has been further
adjourned until November 2007.
Achieved – Actuarial reviews completed and future
liabilities adjusted in the 2007-08 Budget and forward
estimates.

Future Priorities
• Information seminars to educate NTGPASS members about allocated
pensions.
• Implement legislation for the Northern Territory Death and Invalidity Scheme
and new superannuation products.
• Continue working with the Territory’s counsel to finalise legal action by CPSU
on the closure of NTGPASS.
• Complete actuarial reviews of NTGPASS, Northern Territory Supplementary
Superannuation Scheme, Legislative Assembly Members’ Superannuation
Trust, Administrators Pensions Scheme and Supreme Court (Judges’
Pensions) Scheme.
• Continued system and administrative process changes to implement an
allocated pension for NTGPASS members, including member information
seminars.
• Work with the trustees of the Government’s superannuation schemes to
comply with the requirements of the Australian Government’s anti-money
laundering and counter terrorist legislation.

Performance Reporting 27
Output Performance Tables

The following tables report the performance measures achieved by output in

2006‑07 against those published in Budget Paper No. 3.

Table 1: Financial Management Output Performance

Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Facilitate the development and presentation of 2007-08 Budget number 1 1
Financial performance reporting – Treasurer’s Annual Financial Report, number 5 5
Mid‑Year Report, Treasurer’s Quarterly Financial Reports
Capacity to provide policy advice and analysis on:
– budget proposals and estimates $ million 4.10 3.56
– agency expenses and revenues $ million 1.76 1.53
– financial frameworks $ million 1.22 1.06
Quality
Acceptable audit opinion from Auditor-General for Annual Financial Report yes/no yes yes
Stakeholder satisfaction1
– fiscal policy advice survey rating ≥5 5
– key financial reports and publications survey rating ≥5 5
Timeliness
Timeframes met as agreed per cent >85 85
Budget published by date set by Treasurer yes/no yes yes
Treasurer’s Annual Financial Report published in accordance with legislation yes/no yes yes
Mid-Year Report published in accordance with legislation yes/no yes yes
Treasurer’s Quarterly Reports published in accordance with legislation yes/no yes yes
1. Stakeholders are the Treasurer and Government agencies. Satisfaction ratings are: 1: Extremely Dissatisfied, 2: Dissatisfied,
3:  Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.

28 Annual Report 2006-07

Table 2: Economic Output Performance
Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to provide policy advice and analysis on:
– micro-economic and regulatory framework issues $ million 2.24 2.54
– macro-economic, demographic, statistical and social issues $ million 2.66 2.05
– public finance issues $ million 1.27 1.13
Contribution to Australian Taxation Office for GST collection costs $ million 6.23 6.31
Community service obligation payment for uniform tariff subsidy $ million 52.86 52.85
Publish Northern Territory Economy number 1 1
Publish Territory Economic Review number 11 11
Quality
Stakeholder satisfaction1 with advice on:
– micro-economic and regulatory framework issues survey rating ≥5 5
– macro-economic, demographic, statistical and social issues survey rating ≥5 5
– public finance issues survey rating ≥5 5
Stakeholder satisfaction1 with economic publications survey rating ≥5 5
Timeliness
Timeframes met as agreed survey rating ≥5 5
Briefings on ABS economic data provided on day of release per cent 100 100
Economic publications published by agreed date per cent 100 100
1. Stakeholders are the Treasurer, relevant Government agencies and users of Treasury’s economic publications. Satisfaction ratings are:
1: Extremely Dissatisfied, 2: Dissatisfied, 3: Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.

Performance Reporting 29
Table 3: Commercial Output Performance
Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to provide policy advice and services on commercial dealings1 $ million 2.01 2.88
Information sessions on indemnities, guarantees and contingent liabilities number of 120 100
held for Government agencies participants
Quality
Stakeholder satisfaction2 with policy advice and services on commercial survey rating ≥5 5
dealings
Timeliness
Timeframes met as agreed survey rating ≥5 5
1. Alice Springs Convention Centre Performance Incentive Grant not included. 2006‑07 includes one-off costs associated with a review of Power
and Water’s financial systems.
2. Stakeholders include the Treasurer and Government agencies. Satisfaction ratings are: 1: Extremely Dissatisfied, 2: Dissatisfied,
3: Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.

Table 4: Superannuation Output Performance

Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to provide policy advice and services on superannuation $ million 3.71 3.53
Quality
Stakeholder satisfaction1 with policy advice and services on superannuation survey rating ≥5 5.4
Superannuation benefits paid accurately per cent 100 100
Timeliness
Timeframes met as agreed survey rating ≥5 5
Average days to make benefit payments 2
days 30 10
Average administration cost per superannuation scheme member $ 78 82
1. Stakeholders include the Treasurer, superannuation scheme members and associated boards. Satisfaction ratings are:
1: Extremely Dissatisfied, 2: Dissatisfied, 3:  Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.
2. The Australian superannuation industry standard is 30 days.

30 Annual Report 2006-07

Table 5: Territory Revenue Output Performance
Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Territory revenue collected1 $ million 498.6 508.3
Capacity to provide revenue management policy advice $ million 1.03 0.90
Capacity to collect Territory revenue $ million 5.24 5.15
Subsidy payments $ million 13.08 11.88
Subsidy administration $ million 0.33 0.32
Quality
Territory revenue forecast accuracy per cent ±5 2.0
Stakeholder satisfaction
– taxpayers2 per cent 85 86
– Treasurer3 survey rating ≥5 6
Assessment accuracy4 per cent ≥99 99.9
Accuracy of first home owner grant (FHOG) payments processed per cent >98 100
Timeliness
Revenue received within agreed timeframes per cent >95 96.6
Services completed within agreed service standards 5
per cent >95 99.7
1. Includes taxes, gambling revenue and mining royalties. Gambling revenue was previously recorded against the ‘Gambling, Liquor and Other
Regulation’ output, which has since transferred from Treasury to the Department of Justice. However, gambling revenue collection remains a
responsibility of Treasury, and is now reflected in this performance measure.
2. Taxpayer satisfaction is determined via an electronic and telephone survey to payroll taxpayers and professionals who had dealings with the
Territory Revenue Office in 2006-07. A total of 101 responses were received to the survey. The survey questions related directly to assessing
satisfaction with the services provided by the Territory Revenue Office with the following ratings: 1: Extremely Dissatisfied, 2: Dissatisfied,
3: Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied. The result above is based on responses indicating a
score of five or higher. This differs to last year’s ratings which used a scale of one to ten, with the result based on responses indicating a score
of six or higher. The change in methodology brings the Territory Revenue output into line with other Treasury output reporting.
3. Treasurer’s satisfaction is determined via survey with the following ratings: 1: Extremely Dissatisfied, 2: Dissatisfied, 3: Somewhat Dissatisfied,
4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.
4. The target is expressed as a ratio of allowed objections to total assessments.
5. The result for 2006-07 is the weighted average performance of a series of lower level measures, included in the Service Charter (see page 32)
being the proportion of stamp duty assessments assessed within five working days, the proportion of responses to written inquiries that
were provided within 14 days of receipt, the proportion of audits completed within the required timeframe and the proportion of objections
determined within 120 days.

Performance Reporting 31
Table 6: Standards Published in the Territory Revenue Office Service Charter
2006-07 2006-07
Estimate Actual
% %
Stamp duty assessing document turnaround (proportion assessed within five 90 90
working days)
Response to written inquiries within 14 days of receipt1 100 93
Audits completed within the required timeframe 80 80
Objections determined within 120 days 80 100
Proportion of approved FHOG payments made within 24 hours of payment eligibility date 95 100
Proportion of wholesaler fuel subsidy applications and other grant and subsidy 95 90
applications determined within five business days of receipt of all relevant information2
1. TRO has not been able to meet the published standard and room for improvement exists. TRO continues to explore processes that will assist in
delivering a service that meets the high standards set.
2. Staffing shortages and subsequent difficulties in recruiting during the months of May and June 2007 meant that this published standard
dropped below its usual level. However, the standard was met for all other months in 2006-07.

Table 7: Economic Regulation Output Performance

Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to administer regulatory regime $ million 0.49 0.44
Capacity to advise Regulatory Minister $ million 0.12 0.11
Quality
Stakeholder satisfaction1 survey rating ≥5 5
Timeliness
Determinations and approvals issued within statutory timeframes per cent 100 100
1. Stakeholder is the Regulatory Minister. Satisfaction ratings are: 1: Extremely Dissatisfied, 2:  Dissatisfied, 3: Somewhat Dissatisfied,
4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.

32 Annual Report 2006-07

Table 8: Northern Territory Treasury Corporation Business Line Performance
Unit of 2006-07 2006-07
Performance Measures Measure Estimate Actual
Quantity
Capacity to provide borrowing services $ million 2.21 1.99
Weighted average cost of borrowings during the year per cent 6.15 6.13
Quality
Borrowing margin compared to industry peers per cent < 0.20 +0.10
variance
Investment portfolio return above benchmark1 per cent > indices +0.03
Volatility of investment portfolio return against benchmark1 per cent ±0.25 -0.03
Stakeholder satisfaction with borrowing service
2
survey rating ≥5 6
Timeliness
Quotes issued within three days3 per cent 100 100
Funding available within five days per cent 100 100
1. The benchmark is measured against weighted relevant UBS Warburg Indices.
2. Stakeholders are the Treasurer, government owned corporations and agencies. Satisfaction ratings are: 1: Extremely Dissatisfied,
2: Dissatisfied, 3: Somewhat Dissatisfied, 4: Somewhat Satisfied, 5: Satisfied, 6: Extremely Satisfied.
3. A quote is the response to a request for financial information relating to a loan by a government business division or a government
owned corporation.

Performance Reporting 33
Managing the Organisation:
Corporate Governance
Main Results 36
Management Environment 38
Governance Structure 39
Risk Management 42
Monitoring Risk 43
Other Corporate Governance Matters 46
Corporate Planning Process 46
Communication 46
Information Management 47
Corporate Social Responsibility 49
Future Priorities 52
Corporate Governance
What is corporate
governance?
Corporate governance refers to
Treasury’s internal controls, and
decision-making and approval
processes that support the organisation
in achieving its desired objectives.
This could also be expressed as our
‘self‑governing arrangements’.
Corporate governance is the means by
which Treasury directs and controls its
operations to enable the organisation
to achieve its objectives and meet its
responsibilities to its stakeholders.
It also ensures that decision making
and operations are guided by a set
of principles that maintain ethical
standards.
36 Annual Report 2006-07
Main Results
• Treasury’s corporate governance committees continued to meet regularly
and approve various organisational policies and procedures including
monitoring the Territory’s fiscal strategy, reviewing Treasury’s risk register,
approving various policies such as flexible work arrangements, probation
procedure and equity and diversity framework, approving numerous study
assistance applications, considering information technology (IT) services and
business systems across the agency and continued monitoring of Treasury’s
occupational health and safety (OH&S) arrangements.
• Treasury’s conflict of interest policy remained a priority, with the policy being
reviewed during the year.
• 11 audits and 2 reviews were completed during the year on Treasury
processes, procedures and financial reports, with no adverse findings.
• Environmental management efforts resulted in a 38 per cent reduction in
energy consumption and a 46 per cent reduction in paper use.
• Staff support of community groups resulted in over $3000 being raised for
various community organisations.
This chapter describes and reports on Treasury’s corporate governance
arrangements, referring to the principles that guide decision making and the
structures in place to govern our organisation. Our arrangements are presented
in diagrammatic form on page 37.
Findings from audits and reviews conducted in 2006‑07 of Treasury operations
and systems are reported in this section, reflecting the important role of risk
management in corporate governance.
The final part of this chapter contains information on other corporate governance
issues. These matters endeavour to promote transparency in our internal
processes and report on our corporate social responsibility to the environment
and community.
Figure 2: Treasury’s Corporate Governance Arrangements

Strategic Objectives
Values Treasury strives to provide:
Treasury’s values are underpinned by • quality analysis and public policy advice on economic,
trust, integrity and professionalism. fiscal, social and commercial issues;
We are committed to providing frank, • best practice financial management;
accurate and timely strategic advice. • effective intergovernmental financial relations;
Treasury staff take responsibility for • a fair and efficient Territory tax system; and
their work and behaviour and act in a
• appropriate superannuation arrangements for
collaborative way with integrity, respect
the Territory public sector.
and fairness.
Through a well-managed and flexible
We recognise the dedication and expertise
organisation, we:
of our staff and support them in balancing
• recruit and retain high quality staff; and
professional and personal priorities.
S • are committed to high quality output in a
Ob trate safe, supportive workplace.
es jec gic
Under Treasurer Valu tiv
es
Senior Management Group Directors
and subcommittees and staff
Organisational
Responsible for strategic structure
policy and operational
planning, direction, corporate Responsible for
governance arrangements, day-to-day operations,
corporate policies and producing outputs
procedures to achieve outcomes

Corporate Governance Principles

Corporate Governance Principles

We endeavour to consider each of these principles or criteria when making decisions and taking action on a day-to-day basis.
• Accountability: Treasury and its employees take responsibility for their decisions and actions.
• Transparency: decisions, actions and advice are open to and can withstand scrutiny, necessary to ensure that stakeholders
can have confidence in Treasury’s decision-making processes.
• Leadership: modelling and fostering behaviour that supports Treasury values, inspires and influences others and shapes
organisational culture.
• Integrity: actively promote honesty and ethical conduct, by upholding appropriate standards of behaviour.
• Equity: fairness and equity in decision making that is also free from bias.

Managing the Organisation: Corporate Governance 37

Management
Environment
This section discusses the
management environment Treasury
has developed to ensure it operates in
the public interest. Our management
environment refers to the principles
and values that guide our operations
and our people and the committees
responsible for decision making.
The broad principles by which
Treasury operates are reflective of
Treasury’s values. These principles
and values influence our operations
and decision making and shape our
corporate and personal behaviours.
Maintenance of our management
environment is achieved through staff
training and awareness as explained
in the corporate ethics section below.
In this management environment
section, you will be introduced to the
individuals who comprise Treasury’s
Senior Management Group (SMG).
This group is responsible for making
decisions about Treasury’s operations
and internal processes. Details are
provided on areas of responsibility,
experience and qualifications,
with achievements of the six SMG
subcommittees reported.
38 Annual Report 2006-07
As shown in figure 2, which depicts
Treasury’s governance structure, SMG
is responsible for decision making
and policy setting, while managers
and staff through the organisational
structure are responsible for the
day-to-day operations of Treasury
to produce outputs. Treasury’s
values govern all our structures
and decisions, describing the
personal behaviours we expect
staff to demonstrate at all times.
Treasury’s values direct our corporate
governance principles, which
describe how we expect management
to go about making decisions
Corporate Values
Treasury’s values place expectations
on how staff should behave, perform
their duties and interact in the
workplace. These values, outlined
in the Corporate Statement are
incorporated into Treasury’s core
competencies matrix and Performance
Development Framework, both of
which are used to conduct regular
staff performance reviews. Our values
also articulate what stakeholders can
expect from the organisation and its
staff.
Corporate Ethics
Treasury’s values are underpinned
by the Northern Territory Public
Sector (NTPS) Principles and Code
of Conduct, which guide staff on a
range of moral and ethical issues they
may face during their employment
in the NTPS. Agreement to abide by
the Code of Conduct is a condition
of employment and applies to all
employees.
The binding nature of the Code
of Conduct is explained to all
new staff at induction programs
and through Treasury’s Induction
Manual. Treasury’s Performance
Development Framework also clearly
articulates Treasury’s expectation
that all staff demonstrate behaviours
which support Treasury values.
Specific Treasury policies have been
developed to guide employees in
ethical issues such as engaging in
outside employment, harassment in
the workplace, addressing grievances
and recognising and managing
conflicts of interest.
A key strategy in maintaining
ethical standards is training staff
in anti-discrimination, harassment,
Indigenous and cross-cultural
awareness. Treasury provides
these courses on an ongoing basis,
throughout the year, including
refresher training. During 2006-07
anti-discrimination and cross-cultural
awareness courses were held for staff.
Treasury’s conflict of interest policy
was reviewed during 2006-07 with
a focus on streamlining internal
processes for managing conflicts of
interest, and raising staff awareness
of their personal responsibilities
in relation to conflicts of interest.
In 2007-08, planned activity in this
area includes information sessions
for staff and managers and trialling
revised conflict of interest declaration
processes.
Governance Structure
The Under Treasurer, Jennifer Prince,
sets Treasury’s direction in response
to Territory Government priorities
and statutory responsibilities. She is
supported by the Senior Management
Group (SMG), Treasury Directors and
several SMG subcommittees.
SMG comprises the Under
Treasurer, Deputy Under Treasurer,
Assistant Under Treasurers and
Executive Director Revenue, and is
representative of all output groups.
SMG focuses on strategic policy
direction for the organisation,
managing Treasury’s performance and
improving management and business
practices. The main role of SMG is
corporate governance and developing
Treasury’s corporate capabilities, such
as people, systems and environment.
SMG also determines operational
policy and strategies to address
strategic priorities, manage risks and
improve organisational effectiveness.
SMG usually meets fortnightly,
though this can vary at Budget time.
For administrative efficiency, SMG
also sits, in effect, as the risk and
audit, human resource management
and information management
subcommittees, previously separate
to SMG.
Treasury’s directors are responsible
for managing the day-to-day
operations of business units and are
accountable to their respective SMG
members (see Organisation Chart at
Appendix 3).
Under Treasurer
Jennifer Prince has been Under
Treasurer since 2002, following five
years as Deputy Under Treasurer.
As well as being the chief executive
of Treasury, Jennifer is chair of the
Treasury Corporation Board and is
a member of the Charles Darwin
University Council and Legislative
Assembly Members’ Superannuation
Trust. She also has responsibilities
in a range of high level interagency
committees including the Executive
Remuneration Review Panel and the
Capital Works Review Subcommittee.
Jennifer joined the Territory public
service in 1979, originally in the
Department of Health, before
transferring to Treasury in 1985.
Jennifer’s experience relates to
health policy issues and hospital
management, and intergovernmental
financial and budget policy matters.
The Under Treasurer reports to the
Treasurer.
Managing the Organisation: Corporate Governance
Senior Executives
Peter Caldwell is the Deputy
Under Treasurer (Commercial and
Economic). Peter has high level
responsibilities for commercial and
economic policy issues, and is directly
involved in energy policy issues for the
Territory.
Peter has been Deputy Under
Treasurer since 2003, after rejoining
Treasury in 1992 as Principal Adviser.
He has more than 40 years experience
in a range of Territory and Australian
government departments in economic,
resources, trade and capital policy
areas at senior management levels.
Peter holds a Bachelor of Arts (with
Honours in Economics) from the
University of New England and was
honoured with a Public Service Medal
in 2006 for outstanding public service
and contribution to the strategic
development of the Northern Territory
economy.
Jodie Kirkman is Assistant Under
Treasurer (Budgets and Finance),
responsible for the Territory’s budget
management and financial reporting
at the whole of government level.
Jodie was appointed in May 2007,
after holding Director positions
from 1999 and joining Treasury as
a graduate in 1992. Her previous
experience has primarily been in
budgeting and financial management
roles within the Northern Territory
Government. She has a Bachelor of
Business (Accounting) from Northern
Territory University and is a Certified
Practising Accountant.
39
Tony Stubbin is Assistant Under Catherine Wauchope is Assistant Corporate Governance
Treasurer (Economic) responsible Under Treasurer (Corporate and Committees
for economic, social and Superannuation). Catherine is Six standing committees support the
intergovernmental financial issues. He responsible for corporate and Senior Management Group (SMG)
also represents Treasury on a range executive services, ministerial liaison, in carrying out its responsibilities
of intergovernmental and whole of corporate communications and in providing leadership on key
government committees. publications, as well as high level issues affecting the organisation.
management of the Northern Territory These committees operate in the
Tony has been Assistant Under
Superannuation Office. areas of risk and audit, human
Treasurer since 2003, after joining
Treasury in 1992. He has more than Catherine held positions at the resource management policy,
20 years experience in a range director level, from 1998, in the professional development, fiscal
of Territory, ACT and Australian financial management and public strategy, information management
government departments in economic finance areas before appointment and occupational health and safety.
policy and statistics. as Director Executive Support and Membership of each committee is
Coordination in June 1999. The role reported in Appendix 4, with the
Tony has a Bachelor of Arts
has since expanded significantly risk and audit, human resource
(Economics) from the University of
to Assistant Under Treasurer level. management policy and information
Wollongong.
Catherine joined Treasury in 1993 management committees comprising
Craig Vukman is Executive Director with a Bachelor of Economics from all SMG members and relevant
Revenue, Commissioner of Taxes Flinders University, following earlier corporate services managers.
and Mineral Royalty Secretary. public sector roles. She also has a SMG considers reports and briefings
Craig’s responsibilities include the Master of Public Policy. on each of the areas below and
administration of the Territory’s tax
provides direction and approval of
and royalty regimes and developing
corporate policy or organisational
associated policy.
projects.
Craig was appointed Senior
Each committee’s role, performance in
Director Revenue in March 2002
2006-07 and priorities in 2007-08 are
and Commissioner of Taxes from
outlined in Table 9.
1 October 2004 after joining
Treasury in July 1998 as Director
Revenue Development and Assistant
Commissioner. He previously worked
in the Western Australian Department
of Treasury and Finance in various
positions within the Office of State
Revenue and other areas. Craig has
a Bachelor of Business (Accounting)
from Edith Cowan University and is
a Certified Practising Accountant.

Treasury’s Senior Management Group: (L-R) Tony Stubbin, Craig Vukman, Jennifer Prince,
Peter Caldwell, Catherine Wauchope (inset: Jodie Kirkman).

40 Annual Report 2006-07

Table 9: Corporate Governance Committees
Committee Role
Fiscal Strategy Development of strategic
policy advice on the Territory’s
fiscal, budgetary and
economic position and monitor
performance against the
Government’s fiscal objectives.
Risk and Audit Oversee internal audit
program, risk management
and compliance with
legislation.
Human Resource Provide strategic direction
Management in the development and
implementation of human
resource management
planning and policy in
Treasury.
Professional Responsible for Treasury’s
Development study assistance policy
including consideration of
all applications for study
assistance and professional
development.
Information Provide advice on the
Management development, management
and use of Treasury’s
information resources and
technology.
Occupational Oversee and set direction for Committee met three times.
Health and Safety occupational health and safety Achievements are reported in training as required.
activities. the Treasury People section.
2006-07 Performance 2007-08 Priorities
Developed and monitored Increase the focus on accrual
the Territory’s fiscal strategy, targets for whole of government
which guided development of outcomes.
the 2006-07 Mid-Year Report
and the 2007-08 Budget. The
outcome was reported in the
2005-06 Treasurer’s Annual
Financial Report.
Treasury’s Risk Register and Update Treasury’s Risk Register.
internal audit plan updated Determined and implement
for 2006-07. internal audit plan for 2007‑08.
Refined conflict of interest Finalise conflict of interest policy
policy and procedures. and procedures.
Business Continuity Plan – finalise
and test; develop sub-plans.
Approved various human Monitor effectiveness of policies,
resource policies and identify priority areas and
procedures, including flexible consider policy implications for
work practices, probation Treasury.
policy, and Manager’s Toolkit.
More details on achievements
are reported in the Treasury
People section.
The committee met twice and Continue emphasis on
approved 34 study assistance professional development
applications in 2006-07. including sponsored study,
tailored training and professional
More details on the
association activities.
professional development
of staff are covered in the
Treasury People section.
Commenced review of IT Make structural changes to
and business application achieve efficiencies and prepare
services in Treasury. for full information audits.
Reviewed and implemented
changes to Treasury’s
information management
security arrangements.
Continue regular meetings and
Managing the Organisation: Corporate Governance 41
Risk Management
Risk Management
Framework
Considering potential risks and how
to address them is an integral part of
all Treasury’s activities and decision
making.
The Australian and New Zealand
Standard on Risk Management
AS/NZS 4360:2004 has been used
as the framework for Treasury’s
risk management process and can
be applied at all levels and for all
activities in the organisation. The
emphasis is on proactively thinking
about and managing risks in all work
areas, rather than reacting to risks as
they emerge.
Risk Environment
Treasury operates in an environment
where the main risks at an
organisational level are:
• external – failure to comply with
processes, rules, regulations or
laws, the effect of which could
impact negatively on Treasury’s
reputation or on that of the Treasurer
and the Government; and
• internal – the risk of not being able
to recruit and retain appropriately
qualified staff, or continue to
maintain capability, the effect of
which could impede Treasury’s
ability to pursue its strategic
objectives.
There are also shorter term risks at the
more operational or project-specific
level.
Specific strategies are being
developed to address these and other
risks.
42 Annual Report 2006-07
Managing and Mitigating Risk
Treasury manages its risk through
understanding its functions and
potential areas of exposure,
implementing appropriate strategies to
address these areas, and monitoring
the progress and effectiveness of
those strategies.
The Risk and Audit Committee is
responsible for overseeing internal
review and quality assurance relating
to financial management, risk
management and fraud control, and
considering how these can potentially
impact on Treasury. The committee
oversees the examination of priority
risk areas and recommends review
and remedial actions to the Under
Treasurer.
The process of identifying
organisational risks involves reviewing
individual business unit operations
and considering what elements of
their functions generate risks. These
risks are categorised according to the
consequence or effect on business if
the risk was to eventuate (for example,
extreme, high, medium, low) and the
likelihood of the risk occurring (for
example, almost certain, moderate,
rare).
Business unit directors and their SMG
members review the functions of their
areas every year, identify the elements
of risk and discuss strategies and
methods for limiting those risks.
Treasury’s Risk Register and internal
audit program is developed as a result
of these discussions.
The Auditor‑General also has a formal
audit program that covers, in detail, all
Treasury’s significant financial systems
and accountabilities in the areas of
the Territory Budget, Territory revenue,
Treasury Corporation’s borrowings
and investments and the Territory’s
superannuation funds. Treasury’s
Risk Register, internal audit plan and
the Auditor‑General’s formal audit
program are considered by the Risk
and Audit Committee, to formulate
Treasury’s annual audit program for
the coming year.
Monitoring Risk
During the year, several audits and reviews were undertaken as part of
Treasury’s internal audit program. They are categorised as internal and external,
where internal refers to reviews or audits instigated by Treasury, and external
refers to audits programmed by the Auditor-General. Table 10 summarises all
reviews and audits undertaken in 2006-07.

Table 10: Audits and Reviews

Area Audit/Review Audit Outcome/Review Recommendations

External
Northern Audit – final 2005-06 financial Unqualified audit opinion issued. No significant
Territory Treasury statements matters were identified.
Corporation Audit – interim 2006-07 financial Interim audit conducted to assist with end of year
statements audit and to address control and compliance
requirements. An unqualified audit opinion was
issued and no significant matters were identified.
Financial Audit – whole of government budget The audit confirmed that the system and internal
Management and reporting system (Apex) controls in place could be relied upon to provide
Group reasonable assurance that the system would
produce reliable reports with respect to the 2006‑07
Treasurer’s Annual Financial Statements.
Audit – Treasurer’s Annual Financial The audits found that the financial statements were
Statements – final 2005‑06 presented fairly in accordance with the Financial
Management Act and the Fiscal Integrity and
Transparency Act. However, the Auditor‑General
issued a qualified audit opinion in relation to non-
compliance with Australian Accounting Standards
(AAS). This qualification has no reflection on the
accuracy of the numbers, rather, it informs the reader
that the external reporting standards used by the
Northern Territory do not conform to AAS, but do
conform to the Territory’s adopted standard, the
Government Finance Statistics.

Assessment of the new AAS on harmonisation of

Audit – Treasurer’s Annual Financial
Statements – interim 2006‑07
whole of government reporting is identified as a
future priority for the Financial Management Group.
This will encompass a staged implementation of
the new reporting format for budget and outcome
reporting.
No major issues arose from the interim audit.

Managing the Organisation: Corporate Governance 43

Table 10: Audits and Reviews (continued)
Area Audit/Review
External (continued)
Territory Revenue Audit – taxes, royalties and tax-related
Office subsidy schemes
Superannuation Audit – end of financial year reports
Office – Northern Territory Government and
Public Authorities’ Superannuation
Scheme (NTGPASS), Legislative
Assembly Members’ Superannuation
(LAMS) Trust and the Police
Supplementary Benefit Scheme (PSBS)
Review – Superannuation Office
operating standards
Treasury Services Audit – Territory’s 2005-06 Natural
Disaster Relief and Recovery
Arrangements claim for assistance
from the Australian Government
Whole of Treasury Audit – Agency Compliance Audit 2007
44 Annual Report 2006-07
Audit Outcome/Review Recommendations
The audit found that reasonable assurance can be
given that all revenue due to the Northern Territory
from taxes and royalties is being received into the
Public Account and, if this is not the case, that
appropriate recovery action is pursued; and tax-
related subsidy schemes are being paid correctly.
Unqualified audit opinions were issued for the
financial statements of each scheme.
No issues arose from audits which assessed
whether the NTGPASS, LAMS Trust and PSBS
schemes were administered in compliance with the
Superannuation Industry Supervision Act.
The audit found an overstatement of expenditure
made by one agency. The amount was repaid
to the Australian Government, and Treasury has
implemented revised procedures and agency
reporting requirements to ensure verification of future
claims is easier and more accurate.
The audit found internal audits, scheduled or in the
annual plan, were not being performed in a timely
manner. It was recommended that the internal audit
program be reviewed and adhered to.
Table 10: Audits and Reviews (continued)
Area Audit/Review Audit Outcome/Review Recommendations

Internal
Whole of Treasury Review – Treasury risk register Treasury’s risk register is reviewed at least
six‑monthly by SMG. Action for 2007-08 includes
researching and considering methods of reporting
risks at project or operational level, in addition to
the strategic focus on risk reporting that presently
occurs.
Territory Revenue Review – internal review of taxpayer One document prepared for taxpayers was found
Office objections process to contain outdated information. The matter was
subsequently resolved.

Policies and procedures were found to be

Northern Audit − six-monthly financial report;
Territory Treasury annual audit of the Corporation’s
Corporation controls; half-yearly compliance report;
six-monthly audit of Central Holding
Authority investments
appropriate, meeting legislative requirements and
specified service standards. Response times for
objections met published service standards.
Treasury Corporation, as the Territory’s central
financing authority, manages the Territory’s borrowing
program. As part of its corporate governance and
risk management framework, it engages private
audit firms to conduct regular audits. The auditors
identified no matters of significance in their reports
to the Under Treasurer and the Corporation’s
Advisory Board.

Managing the Organisation: Corporate Governance 45

Other Corporate
Governance Matters
This section covers other corporate
governance matters on which
Treasury reports as part of its
commitment to accountability and
transparency principles. In this
section, information is provided
on Treasury’s planning framework,
communication policies and
processes used to achieve effective
internal and external communication,
information management and
Information Act reporting. Information
is also provided on environmental
management and community
sponsorship as part of reporting on
corporate social responsibility.
Corporate Planning Process
Every year the Under Treasurer
and Senior Management Group
(SMG) outline Treasury’s Corporate
Statement which sets Treasury’s
strategic objectives or goals. These
goals guide the direction of Treasury’s
core business areas in the delivery of
government outcomes.
As part of the process, business
unit plans are developed annually
according to strategic priorities
identified for the coming year, and are
aligned with the Corporate Statement.
The business unit plans are designed
to pursue the strategic goals set out
in the Corporate Statement and may
need to be adapted throughout the
year in response to emerging issues
and risks.
Business unit plans are used to
determine internal budget allocations
and to direct individual work plans,
developed between employees
and their managers as part of
the Performance Development
Framework. Linking business plans
to individual employee work plans
ensures all Treasury employees
know how their work contributes to
Treasury’s business objectives and
strategic goals.
Figure 3 outlines Treasury’s key
corporate planning documents and
shows the connection between
corporate planning and individual
workplace plans.
Communication
Corporate communication is an
integral part of an effective corporate
governance framework, ensuring that
organisational messages, priorities
and performance are communicated
to stakeholders both internal and
external to the organisation. Treasury
has a number of communication
processes, outlined below.
Internal
Treasury is a small organisation, where
all staff are located in one building.
This enables communications to be
more direct, with the key methods
for sharing corporate information
being Treasury’s intranet site ‘InSite’,
CEO emails to staff on important
organisational issues, presentations
to staff on major Treasury projects,
or through SMG members briefing
directors after SMG meetings or in
response to specific issues or events.

Figure 3: Treasury’s Planning Process

Identified by SMG at the

Strategic Priorities − next 12 months
start of the financial year.

Business Plans − next 12 months Completed by business

Business units identify key goals and units at the start of the
outcomes to achieve organisational priorities. financial year.

Individual Workplace Plans − next 6 months

Identifies for individuals their work and how it Completed by managers
will contribute to the business unit and the and staff on a six-monthly
organisation as a whole. Each staff member basis as part of the
identifies the key work tasks and projects they Performance
will complete to assist the business unit in Development Framework.
achieving desired outcomes.

46 Annual Report 2006-07

InSite is the primary method of
keeping staff continually updated
on the latest developments in
Treasury. The site is maintained by
the Information Management and
Systems Unit and informs staff of
key corporate events, presentations,
positions vacant, new or updated
policies or procedures and any other
general announcements affecting
staff.
During 2006-07, Treasury began
trialling Microsoft SharePoint to
explore new ways to collaborate on
issues and disseminate information
electronically within the agency. While
not without its challenges, the trial was
successful and Treasury will move to
a production installation of SharePoint
and develop greater use of the
product in 2007-08.
External
Treasury has extranet and internet
sites that are used to keep external
stakeholders informed of various
changes relating to financial
management, taxation or economic
issues. In addition Treasury prepares
various guidelines, circulars and
publications to keep external
stakeholders informed of legislative,
policy or procedural changes.
Treasury’s methods of communicating
externally include:
Internet site – publicly accessible,
providing information on all Treasury
functions, publications and contacts.
Extranet site – accessible by Territory
public sector agencies, provides
information on legislation and
processes of government where
Treasury has primary responsibility.
Treasury Circulars – provide whole
of government advice to Territory
public sector agencies on financial
management processes, such as
budget development and end of year
financial reporting.
Commissioner’s Guidelines – provide
information to taxpayers on Territory
tax legislation and processes.
External stakeholders are able
to subscribe to publicly released
publications, reports and documents
through Treasury’s Publication
Management System. The system
emails subscribers as soon as new
content of interest becomes available
and provides direct access via the
internet.
Information Management
Treasury continues to develop best
practice information management
solutions to ensure the integrity of
its business information is protected
through appropriate internal systems
and controls. Treasury’s ultimate
goal is compliance with the Code
of Practice for Information Security
Management (AS/NZS17799:2006).
This is a medium-term strategic
project with efforts to date including
the development of a Treasury
specific information security policy
which covers issues such as physical
and environmental security, business
continuity management and access
control. There will be significant work
during 2007-08 to finalise the high
level components of this project,
including the development of an
Information Technology (IT) Strategic
Plan, and to implement these within
the agency.
Managing the Organisation: Corporate Governance
Changes in 2006-07 included
moving Treasury to a Microsoft
(MS) Exchange-based email and
scheduling solution, allowing greater
integration with the MS Office Suite
and online collaboration through
MS SharePoint. From a records and
information management perspective,
considerable work has been done
to align records security with the
requirements of the Information Act
through caveats and access controls.
Records and Archives Management
The Information Act established
records management standards
for the Territory Government and
requires public sector organisations
to implement the necessary practices
and procedures for managing their
records. This is managed by the
Northern Territory Archives Service.
Treasury complies with the preliminary
requirements established by Archives
and has reported data to demonstrate
its compliance in 2006-07.
Achievements in 2006-07 include:
• progressing a review of all existing
records management categories
and development of disposal
schedules for all Treasury-specific
records; and
• Archives approved a retention and
disposal schedule for the Northern
Territory Superannuation Office
in October 2006, with schedules
for four superannuation boards
approved in February 2007.
47
A review of Tower Records and
Information Management (TRIM)
security commenced during 2006-07
to improve Treasury’s compliance
with the Records Security and Access
records management standard. As a
result, security caveats were updated
to reflect the exemptions provided
under the Information Act. This
simplifies the process of classifying
information for Treasury staff and
protects information requiring
restricted access (such as the
personal and business information of
Territorians). These will be expanded
further to create a definitive set of
caveat descriptions to meet Treasury’s
business and records management
needs.
Contact
Treasury’s Information Officer contact
details are:
Information Officer
Northern Territory Treasury
GPO Box 1974
DARWIN NT 0801
Telephone: +61 8 8999 6700
Facsimile: +61 8 8999 7150
Email: nt.treasury@nt.gov.au
website http://www.nt.gov.au/ntt/info_
act/index.shtml
48 Annual Report 2006-07
Applications Under the Information Act
During 2006-07, Treasury processed eight requests to access personal
information and one request to change personal information. No requests were
received to access Government information.
Seven of the requests received related to the business of Racing, Gaming and
Licensing, a division of Treasury until November 2006, when it transferred to the
Department of Justice.
The status of requests is detailed in Table 11.
Table 11: Information Act Requests in 2006-07
Applications Carried Over from 2005-06 0
Applications to Access Personal Information 9
– Applications to Access Personal Information for Racing, Gaming 7
and Licensing
Applications to Access Government Information 0
Requests Withdrawn 0
Responses Completed Within 30 Day Period 9
Responses Completed, Exceeding 30 Day Period 0
Applications on Hand as at 30 June 2007 0
Website Links
The Treasury website http://www.nt.gov.au/ntt/info_act/index.shtml assists
members of the public who are considering applying to access information held
by Treasury.
This site presents Treasury’s policies and procedures, and the forms required
to lodge a request to access Government or personal information. Also on the
website are links to:
• the Information Act and Regulations;
• a public register of Government information held by Treasury, which describes
the kinds of Government information usually held. The register will help an
applicant decide if Treasury is likely to have the information they seek and
specifies if it is available outside the formal process of lodging a request
under the Information Act;
• Northern Territory Treasury’s Annual Reports and other published information;
• Northern Territory Treasury’s Organisational Chart; and
• Information Commissioner’s website.
Corporate Social
Responsibility
Environmental Reporting
This section reports on Treasury’s
energy usage in relation to the
Northern Territory Government Energy
Smart Buildings Policy; as well as
providing details on water and paper
usage during 2006-07.
The Energy Smart Buildings Policy
aims to achieve and maintain best
practice energy management in
Government occupied buildings.
The outcome of the policy is to
reduce greenhouse gas emissions
and save operating expenditure.
Through efficiency targets, each
agency’s performance is monitored
and reported upon annually, as
part of efforts to achieve a targeted
10 per cent reduction in energy use
per square metre of floor area by
2011. Annual energy targets are
identified in Table 12.
Table 12: Annual Energy Targets
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Target1 (%) 1 1.5
1. Per cent reduction from 2004-05.
Treasury Accommodation
The information on Treasury’s
achievements in relation to electricity,
water and paper use during 2006-07
is disaggregated by the two buildings
that Treasury occupied for the
majority of 2006-07, being Cavenagh
House and Enterprise House. The
presentation of this information varies
from last year’s annual report, in
which achievements were reported
as a combined Treasury total. The
separation of data by location
provides for greater comparison of
performance over the years.
It should be noted that from 2007‑08,
Treasury will only report on Cavenagh
House, as all Treasury staff are now
located in the same building, following
the transfer of the Superannuation
Office from Enterprise House to
Cavenagh House in May 2007,
and the transfer of the Racing,
Gaming and Licensing (RGL) group
to the Department of Justice in
November 2006.
3 5.5 8 10
Managing the Organisation: Corporate Governance 49
2006-07 Achievements
Treasury’s achievements in 2006-07
include:
• 38 per cent reduction in electricity
use per square metre of office
space;
• reduced greenhouse gas emissions;
• reduction in water use; and
• 46 per cent lower paper use.
Figure 4 shows that Cavenagh
House electricity use per square
metre reduced by 18 per cent from
303 megajoules in 2005-06, to
249 megajoules in 2006-07, while
electricity use per square metre
in Enterprise House reduced by
6 per cent from 973 megajoules
in 2005-06 to 910 megajoules in
2006‑07.
Energy saving activities undertaken
in 2006‑07 included upgrading
computers, installing business hours
timers as part of lighting initiatives and
promoting good energy management
practices to staff, such as turning off
lights and computers at the end of the
day. The airconditioning plant was also
upgraded by the building owner.
Figure 4: Electricity Use per Square Metre of Office Space
MJ
1000
800
600
400
200
0
2004-05 2005-06
Cavenagh House
50 Annual Report 2006-07
Since monitoring of electricity use
commenced in 2004-05, Treasury
has reported a 23 per cent reduction
for Cavenagh House and 7 per cent
reduction for Enterprise House. As
part of whole of government annual
reporting on electricity use, Treasury’s
38 per cent reduction in energy use
per square metre of floor area will be
reported in the annual Building Energy
and Greenhouse Report prepared
by the Department of Planning and
Infrastructure.
Tables 13 and 14 provide further
details of electricity and water use
for Cavenagh House and Enterprise
House. Information for each location
is presented separately as the
calculations for electricity usage differ,
with Cavenagh House’s electricity
usage figures including light, power
and after hours airconditioning usage,
while Enterprise House includes
light, power and business hours
airconditioning.
2006-07
Enterprise House
The inclusion of business hours
airconditioning in Enterprise
House’s figures accounts for the
higher electricity used per square
metre of office space in 2006‑07
(910 megajoules for Enterprise House
compared to 249 megajoules for
Cavenagh House).
During the year, greenhouse gas
emissions reduced by 8 per cent in
Cavenagh House and 67 per cent
in Enterprise House. The large
decrease in Enterprise House
reflects a shorter reporting period,
with the figure of 174 greenhouse
gas tonnes, reflecting emissions
between July and November 2006.
From November 2006, Enterprise
House became the responsibility of
the Department of Justice, and is
now included in its environmental
reporting.
Table 13: Cavenagh House Electricity and Water Use
Description Unit 2006-07 2005-06 2004-05
Key
kL= kilolitre
FTE Full-time equivalent staff1   161 174 187
Electricity Light and power GJ 921 1 076 1 160
GJ = gigajoule

Variation from previous year % -14 -7 MJ = megajoule

  Use per FTE GJ 5.7 6.2 6.2 GHG = greenhouse gas emissions

  Variation from previous year % -7 0 1 MJ = 1000 kilojoules

  Use per square metre of MJ 249 303 327 1000 MJ = 1 GJ
office space
  Variation from previous year % -18 -7
  Total associated greenhouse GHG 217 235 239
gas emissions tonnes
Variation from previous year % -8 -2
Water Total use kL 4 674 5 482 5 948
  Variation from previous year % -15 -8
  Use per FTE kL 29 32 32
  Variation from previous year % -8 -1
1. FTE figure excludes Superannuation and RGL staff as they are included in the Enterprise House figure.
Some figures may not add up due to rounding.

Table 14: Enterprise House Electricity and Water Use

Description Unit 2006-07 2005-06 2004-05
FTE Full-time equivalent staff % 241 72.92 77.22
Electricity Light, power and GJ 7483 2 399 2 424
airconditioning
Variation from previous year % -69 -1
  Use per FTE GJ 31 33 31
  Variation from previous year % -5 5
  Use per square metre of MJ 910 973 983
office space
  Variation from previous year % -6 -1
  Total associated greenhouse GHG 174 3
525 499
gas emissions tonnes
  Variation from previous year % -67 5
Water Total use kL 5593 1 493 1 538
  Variation from previous year % -63 -3
  Use per FTE kL 23 20 20
  Variation from previous year % 14 3
1. FTE figure represents Superannuation Office staff only.
2. FTE figures for 2004-05 and 2005-06 represent RGL and Superannuation staff.
3. Figure for period July 2006 to October 2006 only. From November 2006, the Department of Justice assumed responsibility for the building.
Some figures may not add due to rounding.

Managing the Organisation: Corporate Governance 51

Figure 5 shows that over the last three years there have been changes in water Figure 5: Water Use per FTE
Kilolitre
usage, with Cavenagh House reducing its use of water by 8 per cent per FTE
40
staff member, while Enterprise House increased its usage by 14 per cent per
FTE from the previous year. 30

Table 15 provides data on paper usage in Treasury. There was a reduction in

20
the paper used between 2005-06 and 2006‑07 of 46 per cent. During this time
Treasury staff have been encouraged to make more use of online rather than 10

printed documents and are more aware of the need to conserve paper and as
0
a consequence are printing double-sided. This will continue in 2007‑08 with 2004-05 2005-06 2006-07
Cavenagh House Enterprise House
greater use of Microsoft SharePoint for online collaboration within Treasury.

Table 15: Paper Usage

 Unit 2006-07 2005-06 Variation
A4 paper Reams1 4 452 8 286 -3 834
FTE 185 247 -62
Use of A4 paper per FTE Reams 24.06 33.56 -9.5
Waste for recycling Bins 212 104 108
1. Ream = 500 sheets

Fundraising for Community Organisations

The Treasury Social Club supports and coordinates a number of charitable
and social events each year. The events are an important opportunity for staff
to gather socially and to contribute toward national charity appeals and local
community fundraising events. In 2006-07, the social club raised over $3000 for
various charities including:
• Cancer Council NT
• SIDS and Kids NT
• Leukaemia Foundation

Future Priorities
• Staff training in maintaining ethical standards through anti-discrimination,
harassment, Indigenous and cross-cultural awareness training sessions.
• Finalise implementation of the conflict of interest policy.
• Update Treasury’s Risk Register and implement the internal audit plan for
2007-08.
• Continue with the project to achieve compliance with the Code of Practice for
Information Security Management.
• Continue staff awareness programs to promote efficient and wise use of
resources such as paper, electricity and water.

52 Annual Report 2006-07

Managing the Organisation:
Treasury People
Main Results 54
Staffing 54
Strategic Human Resource Issues 57
Training and Development 59
Employment Programs 62
Equal Employment Opportunity (EEO) 64
Industrial Relations 65
Occupational Health and Safety 65
Workers Compensation 65
Employee Wellness 66
Reporting Against Employment Instructions 67
Future Priorities 70
Treasury People

Main Results
• As at 30 June 2007, 185 staff were employed on a full-time equivalent basis in
Treasury and Treasury Corporation.
• 61 per cent of Treasury’s workforce were women, 3 per cent were Indigenous
and 4 per cent were employed on a part-time basis.
• 31 people or 17 per cent of Treasury staff were engaged in Treasury
employment entry programs, including 20 graduates.
• Strategic human resource focus remained on developing managerial
capabilities and leadership, facilitating professional development for middle
and senior managers, and expanding and promoting entry-level programs and
career opportunities.
• $0.28 million was spent on training and development in 2006-07, with
expenditure per employee increasing 22 per cent to $1535.
• A second group of staff was sponsored to undertake the Graduate Certificate
in Public Governance through Charles Darwin University.
• Under Treasury’s OH&S program, 15 staff were trained in risk assessment,
9 as fire wardens and 8 in first aid.
• 34 per cent of staff took up the offer of free influenza vaccinations.
• All Employment Instructions were satisfied.

Staffing
• As at 30 June 2007, Treasury (including Northern Territory Treasury
Corporation) employed 185 staff on a full-time equivalent (FTE) basis. All
Treasury staff are located in Darwin, with the exception of two staff operating
on home-based work arrangements.
• Table 16 shows a decrease of 57 staff between 30 June 2006 and 2007. This
reflects the 57 FTE staff who transferred to the Department of Justice with the
racing, gaming and licensing (RGL) function and related corporate-type staff
from Treasury Services.
• Over the 26 pays for 2006-07, Treasury averaged 214 FTEs. In that time, there
were 41 separations (excluding casual employees), a staff turnover rate for
the year of 19.2 per cent. Although this figure appears high, it is well below
the Northern Territory Public Sector (NTPS) turnover rate of 26 per cent for the
same period.

54 Annual Report 2006-07

Table 16: FTE Staff by Gender and Classification as at 30 June
Females Males Total
Designation 2007 2006 Diff 2007 2006 Diff 2007 2006 Diff
Trainee 1 7 -6 2 1 1 3 8 -5
Graduate 10 4 6 10 3 7 20 7 13
AO1 0 0 0 1 0 1 1 0 1
AO2 3 4 -1 1 3 -2 4 7 -3
AO3 12 18 -6 0 2 -2 12 20 -8
AO4 21 30 -9 6 7 -1 27 37 -10
AO5 19 27 -8 6 13 -7 25 40 -15
AO6 19 17 2 14 22 -8 33 39 -6
AO7 11 15 -4 4 11 -7 15 26 -11
AO8 6 8 -2 16 17 -1 22 25 -3
EO1 3 3 0 2 4 -2 5 7 -2
ECO1 3 5 -2 4 9 -5 7 14 -7
ECO2 3 4 -1 3 1 2 6 5 1
ECO3 2 1 1 2 2 0 4 3 1
ECO4 0 0 0 1 1 0 1 1 0
ECO6 1 1 0 0 0 0 1 1 0
Total 113 145 -32 72 97 -25 185 242 -57
Note: Figures may not add due to rounding to the nearest full-time equivalent. These figures
do not include staff on leave without pay or staff who were employed, but unpaid (such as
casuals), as at 30 June.
Source: Personnel Integrated Payroll System (PIPS)

Managing the Organisation: Treasury People 55

Figure 6 compares gender for each Of the 185 staff employed by Treasury As illustrated in Figure 8, Treasury
individual classification level. Females as at 30 June 2007, 61 per cent of the has a relatively young staff profile,
occupy the majority of AO3 to AO5 workforce (113 staff) were women. with an average age of 37 years.
positions, which include administrative The high proportion of females in Treasury’s young age is mostly
and secretarial roles as well as recent Treasury is slightly lower than the attributed to its graduate, cadetship
graduates. The gender balance is NTPS proportion of 61.9 per cent and apprenticeship programs which,
fairly even in the middle and senior of the workforce. The high female as at 30 June 2007, represented
management levels from AO6 and representation in the administrative 17 per cent of Treasury total staff.
above. stream (see Figure 6), especially AO3 Although the majority of these are
to AO5 levels, reflects the trend across full-time graduate trainees (over 20
As shown in Figure 7, over the
the NTPS. years of age), those in the 16- to
ten years spanning 1997 to 2007,
20-year-old age group are employed
Treasury’s gender balance has As at 30 June 2007, the proportion
under Treasury’s various entry-level
remained steady at around the ratio of of executive women in Treasury was
employment programs such as the
6 females to every 4 males. 49 per cent, well above the NTPS
National Indigenous Cadetship Project
2007 figure of 36 per cent.
(NICP), Work Integrated Learning
Scheme in Economics and vacation
employment (work placements
during university breaks), and
apprentices employed under the New
Apprenticeship Program (NAP).
Figure 6: Treasury Staff by Classification and Gender Figure 7: Overall 10 Year Gender Comparison
as at 30 June 2007
160
25 Male
Male 140 Female
Female
20 120
Number of Staff
Number of Staff

100
15
80

10 60

40
5
20

0 0
1997 1999 2001 2003 2005 2007
4C

6C
IT

EO C
3C
5
2
3
AP

1C
EO 1
4

8
1

7
AO
AO

AO

EO
AO

AO

AO

AO
AO

2
FO

EO

EO

EO
N

Figure 8: Treasury Staff Age Profile as at 30 June 2007 Figure 9: Staff with Over 10 Years of Service in Treasury
as at 30 June 2007
25 10
Male Male
9 Female
Female
20 8
Number of Staff
Number of Staff

7
15 6
5
10 4
3
5 2
1
0 0
16-20 21-25 26-30 31-35 36-40 41-4546-50 51-55 56-60 61-65 66-70 10-15 15-20 20-25 25-30 30-35 35-40 40-45
Years of Age Years of Service

56 Annual Report 2006-07

Figure 9 shows that, of Treasury’s 185
FTE staff, 14 per cent or 26 staff had
completed more than 10 years service
with the agency as at 30 June 2007,
with 10 staff achieving impressive
milestones of between 20 and 44
years of service. Treasury recognises
the significant roles these staff
have played in the agency, and their
contribution to the Northern Territory
Government.
Strategic Human
Resource Issues
During 2006-07, Treasury continued
its efforts to be an employer of
choice, through a well managed and
flexible organisation that promotes
the improvement of staff capability,
and which values the dedication and
expertise of its staff by supporting
them in balancing professional and
personal priorities.
Developing Managerial
Capabilities and Leadership
For 2006-07, the focus on enhancing
management skills and expertise
in the area of people management
remained a key strategic priority.
Activities in 2006‑07 included:
• AO6 to AO8 staff invited to nominate
for the Public Sector Management
Program;
• managers being provided with
executive coaching, training
courses, and advice and support
from Human Resource staff,
in recruitment and selection
processes, and case management
matters such as underperformance
and grievance issues; and
• development of a Manager’s
Toolkit to provide managers with
practical assistance in carrying out
management duties.
The Manager’s Toolkit
The Manager’s Toolkit provides a
Treasury-specific reference manual
for managers that consolidates many
sources of information into one
comprehensive document and provides
links to more detailed information where
required.
The Toolkit explains the responsibilities
of managers as they relate to Treasury
policies and procedures and serves as a
useful reference guide.
Covering key aspects of how
organisations operate (such as managing
risk, finances, information, equipment,
facilities and staff), the Toolkit assists
managers with management and
supervisory responsibilities.

In 2006-07, Treasury focused on the

following strategic human resource
issues:

• developing managerial capabilities

and leadership;
• promoting and facilitating learning
and growth for middle and senior
managers through Treasury’s
mobility program; and
• increasing and promoting career
opportunities at entry level.

Managing the Organisation: Treasury People 57

Mobility
In 2006-07, Treasury continued to
support leadership development
and mobility through the role of the
Senior Ministerial Liaison Officer, with
three staff completing placements in
2006‑07.
The position offers Treasury staff
from AO7 to ECO1 level a three- to
six-month placement in the Executive
area where they contribute to Treasury
comments on all Cabinet submissions,
contribute to the preparation of
Ministerial briefings and are involved
in organisational projects such as
development of the Territory Budget
papers, Estimates Committee
briefings, Treasury’s annual report and
executive conference.
Promoting Entry Level
Programs and Career
Opportunities
In 2006-07 Treasury participated in a
number of public events to promote
the various career options available in
Treasury and the public sector:
• the Territory show circuit;
• Darwin and Alice Springs Careers
Expos; and
• Graduate Recruitment Fair at
Charles Darwin University.
58 Annual Report 2006-07
In 2006-07 Treasury also sponsored
three awards for Casuarina Senior
College’s Year 12 Graduation Awards
Ceremony, donating $600 in prizes
for excellence in mathematics,
accounting and economics.
In 2005-06 Treasury developed a
half-day forum/mock budget for senior
Darwin High School students. Based
on the success of the first group in
June 2006, Treasury continued the
forum in 2006-07 in Darwin and Alice
Springs with about 130 students
taking part during the year. The forum
promotes entry‑level programs in
Treasury and government.
Students from Kormilda College participating in the 2007 Treasury Forum.
Treasury Forum and Mock
Budget
The Treasury forum is aimed at
high school students of economics,
accounting, politics and legal studies.
It provides them with an opportunity
to experience the dilemmas and
conundrums of decision making in
government, where there are limited
resources and the impact on the
community is a key consideration.
Students take on the role of Budget
Cabinet, working together to decide what
priorities and projects they would fund
with their limited budget.
The session concludes with the students
‘handing down’ their budget in a speech
to the group.
The forum also informs students about
employment programs offered by
Treasury and wider career options in the
public sector.
Training and
Development
The greater part of Treasury staff
comprise employees who either
have tertiary qualifications or are
studying towards them. As a means
of attracting and retaining staff, and
in order to develop and promote staff,
Treasury has developed systems
to support and encourage further
professional development and
continuing education.
Table 17: Training and Development Expenditure
Total employees
Total training and development expenditure
Total personnel expenditure
Training and development costs as a percentage of
personnel expenditure
Training expenditure per employee
Professional Development
and Training
In 2006-07, $0.28 million was
spent on professional development
and training, through attendance
at conferences, seminars and
workshops, and assistance with formal
study (see Table 17).
Although overall expenditure in
2006-07 was 2.4 per cent less than
in the previous year, training and
development costs as a percentage
of personnel expenditure increased
by 0.38 percentage points, as did
training expenditure per employee,
which increased by 22 per cent to
$1535.
2006-07 2005-06
185 242
$284 021 $291 003
$15.19M $19.54M
1.87% 1.49%
$1 535 $1 202
Managing the Organisation: Treasury People
Key areas of professional training and
development were:
• professional conferences and
seminars which focused on current
issues in areas related to Treasury’s
core business, namely accounting,
commerce, economics, taxation,
superannuation and public policy.
This included seminars and one-day
workshops with keynote speakers
such as Barry Dunphy, of Clayton
Utz Brisbane, who presented
Advanced Government Decision-
Making. Other courses included
the Taxation Institute GST seminar,
BIS Shrapnel Business Forecasting
Conference and short courses
such as FBT 2007, CPA: Strategic
Thinking and People Profiling,
PS146 Superannuation Training, and
Public Policy Program;
• tailored public sector academic
courses such as the Public Sector
Management Program and the
Graduate Certificate in Public
Governance;
• equity and diversity awareness
training, such as Indigenous cultural
awareness, and anti-discrimination
courses for new employees as well
as refresher sessions tailored for
managers; and
• personal and skills development
short courses, including project
management, business writing
and writing Ministerial briefings,
information technology systems and
computer training, and seminars
with a health and lifestyle focus.
59
Public Sector Management
Program
Treasury participation in the Public
Sector Management Program (PSMP)
continued in 2006-07 with three staff
commencing the September 2006
program. Another two staff were
sponsored for the fast track program
commencing in August 2007, and a
third will begin in November 2007.
In 2007 another Treasury employee
was able to graduate from the PSMP,
following completion of her work‑based
project. The project dealt with graduate
retention issues in Treasury and
recommended strategies to assist in
improving graduates’ length of stay
and enhancing the value of the current
graduate program.
60 Annual Report 2006-07
Graduate Certificate in Public
Governance
The Graduate Certificate in Public
Governance has been a means of
enhancing Treasury’s already well
respected graduate Finance Officer
in Training (FOIT) program. In 2005,
Charles Darwin University (CDU)
recognised prior learning from the
training and workshop component of
the FOIT program and on-the-job work
placements completed by graduates.
That learning was credited as
20 ‘unspecified’ credit points towards
a Graduate Certificate/Diploma or
Masters in Public Governance, with
ex‑FOITs only needing to undertake
two further units: Policy Systems,
Design and Analysis; and Financial
and Economic Management, to
complete the Graduate Certificate.
In 2006-07, 10 staff were sponsored
to undertake the Graduate Certificate.
This follows the first group of
20 ex‑FOITs that Treasury sponsored
in 2005-06, when the program was first
awarded recognition. All obtained a
grade of distinction.
Participants who successfully complete
the program will be eligible to graduate
with a Graduate Certificate in Public
Governance by mid 2008.
Study Assistance
Formal study is strongly supported,
with assistance for staff undertaking
further study in areas relevant to
Treasury’s core business. Study
assistance consists of up to 2.5 hours
paid study leave per week for staff
to either attend lectures, tutorials and
exams within working hours, or to
study online or by distance learning.
In addition, financial assistance is
provided as reimbursement of course
costs upon successful completion of
units (capped at $1500 per unit).
During 2006-07, 36 staff (including
two NICP cadets) were approved
to study, compared with 40 staff in
2005-06. Table 18 and Figure 10
show a decrease in the number of
staff receiving assistance and total
expenditure. However, at an individual
level, there has been an increase in
spending per employee in 2006-07
compared to the previous year.
Table 18: Study Fees Reimbursed
Number of employees receiving assistance
Number of employees who applied for
reimbursement by 30 June
Total expenditure
Average reimbursement per employee
1. Includes Racing, Gaming and Licensing staff who applied for study assistance prior to their
transfer to the Department of Justice.
2. Of the 36 employees, only 20 submitted and received study reimbursements as at
30 June 2007, totalling $40 656. This is primarily due to some institutions issuing students’
results later, such that not all applications for reimbursement were received or processed before
the end of the financial year. These reimbursements will be reflected in the 2007-08 Annual
Report.
Treasury’s study assistance policy
enabled staff to undertake studies
towards the following qualifications:
• Diploma of Business (Human
Resources);
• Bachelor Degrees (Business,
Information Technology);
• Certified Practising Accountant
(CPA);
• Chartered Accountants Program;
• Masters (Professional Accounting,
Business Administration and
Taxation); and
• Graduate Diploma (Legal Practice).
Two staff members also undertook
a Tertiary Enabling Program to
develop the skills and knowledge to
successfully complete tertiary studies
and allow them to meet the minimum
entry requirements for most CDU
vocational education and training
diplomas and bachelor degrees.
In 2006-07, $6295 was provided
2006-07 2005-06 in professional membership
reimbursements to 23 staff (2005‑06:
361,2 40
22) who are required to keep current
20 31 professional memberships with
registered industry bodies as part
$40 656 $62 415 of their work. This is an increase
from $5294 in 2005-06. The increase
$2 033 $2 013
is mainly due to one employee
seeking reimbursement for multiple
memberships from the last two
financial years.
The lower spending for Training
and Other Course Fees identified
in Figure 10 is largely due to a
number of courses being delivered
Professional Membership agency‑wide during 2004-05. These
Assistance courses included cross-cultural and
Treasury assisted staff by reimbursing Indigenous awareness training as well
50 per cent of their membership fees as anti-discrimination and harassment
for the following organisations: refresher courses, and formed part of
• CPA Australia; a rolling schedule of training offered
every 18 months. Consequently, these
• Institute of Chartered Accountants;
courses were not delivered again
• Australian Institute of Company
until 2007, by which time staffing
Directors;
numbers had decreased significantly
• Australian Institute of Management; since 2005 so the total cost was lower.
• Taxation Institute of Australia; At an individual level, spending per
employee increased from $1317 in
• Australian Human Resources
2005 to $1535 in 2007.
Institute; and
• Institute of Public Administration
Australia.
Figure 10: Professional Development Expenditure
as at 30 June
$000
400
350
300
250
200
150
100
50
0
Professional Study Assistance Training and Total
Membership (includes HECS) Other Course Fees
2005 2006 2007
Managing the Organisation: Treasury People 61

Employment Programs
As at 30 June 2007, 31 entry-level staff
were employed by Treasury under the
following programs:
• New Apprentice Program (NAP)
– 3 staff employed full-time while
completing Certificate III;
• National Indigenous Cadetship
Project (NICP) – 1 student employed
while studying business full time at
undergraduate level at Charles Darwin
University (CDU);
• Work Integrated Learning Scholarship
(WILS) in Economics – 7 students
employed while studying economics
full time at undergraduate level at
CDU; and
• Finance Officer in Training (FOIT)
– 20 staff with a tertiary qualification
employed full time in Treasury’s
graduate training scheme.
Employment Programs
As described earlier in this section,
Treasury has a range of employment
programs that provide opportunities
for participants to experience, first
hand, work in Treasury and to learn
about career options in the Territory
public sector. These programs,
particularly the cadetships and
vacation employment programs are
key elements in Treasury’s long-term
strategy to recruit local people, rather
than needing to rely on interstate
recruits. A summary of achievements
during the year is outlined above.
62 Annual Report 2006-07
Apprentices
All agencies are strongly encouraged
to participate in the Northern Territory
Government’s New Apprenticeship
Program (NAP) as host employers
of apprentices, who are recruited
and centrally managed through
the Department of Corporate and
Information Services (DCIS).
Apprentices are engaged for
12 months and combine study
towards a Certificate III, either
through Group Training NT or CDU,
with full‑time work. As part of on-the-
job training during their 12-month
contract, apprentices complete two
six-month work placements in different
areas of Treasury in order to provide
them with the opportunity to develop a
broad range of skills and knowledge
that is not only relevant to their
discipline but to the agency and the
public sector.
During 2006-07:
• Treasury employed one business
administration apprentice and two
information technology apprentices;
and
• of the eight apprentices employed
in 2006, three successfully
completed their apprenticeships
in February 2007. Two transferred
to the Department of Justice with
Racing, Gaming and Licensing,
and the third has been permanently
placed in the Superannuation Office.
National Indigenous
Cadetship Project
The National Indigenous Cadetship
Project provides financial assistance
and work experience to Indigenous
students studying towards a degree,
for the duration of their tertiary study.
Treasury has participated in the
program for several years, along with
other Northern Territory Government
agencies.
During 2006-07:
• of the three students, two were
studying business degrees at
CDU – one cadet majoring in
management and the other in
economics; while the third studied
International Business at Flinders
University in Adelaide. The two
latter cadets subsequently withdrew
from the program, in August 2006
and February 2007 respectively, to
pursue studies in other fields. The
former is on track to complete his
degree in 2007; and
• all three completed paid work
experience placements during
university breaks.
Samantha Brittain, business administration
apprentice
Cadetships and Scholarships
for CDU Students
In March 2007, the Work Integrated
Learning Scholarship (WILS) in
Economics commenced, replacing
the Student Economist Scheme
(SES) previously offered by Treasury.
The structure of the program
remained unchanged with students
completing economics studies at
CDU receiving scholarship payments
and undertaking paid vacation work
in Treasury while completing their
degree. It is anticipated that in 2008,
Treasury will also extend scholarships
to students of accounting at CDU.
During 2006‑07:
• eight students were engaged as
cadets under the SES program in
2006, six of whom received financial
assistance as well as paid work
experience, and two who undertook
work placements only;
• Treasury employed seven WILS
students in 2007, three of whom
were previously SES cadets; and
• all cadets completed work
experience placements in various
Treasury business units during
university breaks.
2007 FOITs: back row (L-R): Solomon Gaturu, Sashi Kiran, Adam Harwood, Claire Zhu, Erin Stone, Craig Turner, James McLoughlin, HuiWen Wu,
Kama McCarthy, Annie Richmond, Luke Belperio, Wendy Ho; front row (L-R): Anthony Parletta, Christopher Beagley, Kimberlee McKay, Kelly
Combe (since withdrawn from program), Tenille Cahill, Ippei Okazaki, Sarah Jones, Joseph Kuhn
Graduate Program Work Experience
The Finance Officer in Training In addition to cadets and scholarship
(FOIT) program employs local and holders sponsored by Treasury, work
interstate graduates from a variety experience placements during holiday
of disciplines, including accounting, breaks were also provided to other
economics and business law. The university students during 2006-07:
FOIT program is an important ongoing
• five Northern Territory Government
component of Treasury’s recruitment
scholarship holders / vacation
strategy and succession planning,
employees; and
and aims to fast track high quality
• five James Cook University
graduates to middle and senior
economics students from
management capability.
Queensland.
During 2006-07:
Students were employed for up to
• six of the eight graduates from the two months at the AO1/AO2 level in
2006 FOIT program were appointed various Treasury areas.
to permanent positions;
• 20 graduates commenced the 2007
FOIT program (pictured below). This
is by far the largest intake since the
commencement of the program in
1998; and
• the second Graduate Certificate
in Public Governance program
was delivered to graduates from
the 2006 FOIT program and from
previous years, and to other
non‑FOITs.
Managing the Organisation: Treasury People 63
Equal Employment Indigenous Employment and – through an entry-level program,
Career Development one staff member will shortly
Opportunity (EEO) Treasury continues to implement complete his undergraduate
Treasury has a diverse workforce degree;
its Indigenous Employment and
consisting of many highly skilled and
Career Development (IECD) strategy. – one staff member commenced
qualified staff.
Treasury’s 2004-06 strategy is the Public Sector Management
Data from the Personnel Integrated currently undergoing evaluation and Program in September 2006; and
Payroll System (PIPS) indicates a revised strategy will be prepared in
– a placement was negotiated with
that 82 per cent of Treasury staff 2007-08.
the South Australian Department
had recorded their EEO details as
The following are achievements of the of Treasury and Finance for an
at 30 June 2007. A Census Week
strategy during 2006-07. employee, as a policy officer,
was held in July 2007 to encourage
• Indigenous staff are represented on while on leave without pay from
staff to update their contact and
Treasury’s Indigenous Employment the NTPS.
next of kin details in PIPS and their
EEO details. This forms part of a and Career Development Committee Table 20 shows that as at
Government strategy to ensure that and the Occupational Health and 30 June 2007, seven staff members
equal opportunity data is accurately Safety Committee. Input to policy had self-identified as Aboriginal
recorded to assist in workforce and decision making is also made or Torres Strait Islander (although
planning, and also assists the through Treasury’s Indigenous only six did so through PIPS). This
Government in monitoring Indigenous Discussion Group. represents a decrease of seven from
staff numbers. • Indigenous staff have been the 14 reported at 30 June 2006. This
encouraged and supported in occurred because four Indigenous
Table 19 provides details of EEO data
further professional development: staff transferred to other agencies
entered voluntarily by staff in PIPS.
– one employee received and others ceased their employment
assistance to undertake a Tertiary program or contract during 2006‑07.
Enabling Program, the successful
completion of which would allow
her to meet the minimum entry Table 20: Indigenous Employment as
requirements for most diploma at 30 June
and bachelor courses at CDU; Classification 2007 2006
Trainees 1 4
Table 19: Equal Employment Opportunity Data as at 30 June
AO1
Aboriginal and Non-English Non-English
Torres Strait AO2 1 3
Speaking Speaking Person with
Islander Background1 Background2 Disability AO3 1
EEO Status 2007 2006 2007 2006 2007 2006 2007 2006 AO4 3 3
Male 2 3 2 5 0 0 2 1 AO5 1
Female 4 4 5 6 4 3 1 4 AO6 2 2
% total staff 3 3 4 5 2 1 2 2 Total 7 14
1. Identified as being of first generation non-English speaking background, where the first
language is not English and neither parent’s first language is English.
2. Identified as second generation non-English speaking, where the first language spoken is
not English, but the person was in Australia or came to Australia before the age of five, or at
least one parent’s first language is English.

64 Annual Report 2006-07

Industrial Relations
All administrative staff in Treasury
are covered by the NTPS 2004‑2007
Certified Agreement, which expired in
August 2007 and will be renegotiated
in 2007‑08. No industrial disputes
were reported during the year, with
Treasury’s efforts in 2006-07 focusing
on improving human resources
practices, management development,
and professional development
programs.
Recognising the need for employees
to balance their work and family
commitments, a Flexible Work
Arrangements Policy was developed
in 2006-07. The policy provides a
framework for employees and their
managers to negotiate arrangements
that suit both the individual and the
needs of the workplace, providing
clarity and equity for those involved.
Occupational Health
and Safety
Treasury’s Occupational Health
and Safety (OH&S) Committee,
established to examine OH&S issues
that may affect Treasury employees,
comprises staff ranging from AO3 to
senior management levels. It regularly
reports to the Senior Management
Group.
The committee focuses on safe
workplaces and systems of work;
developing, implementing and
monitoring OH&S measures;
advocating acceptable and
responsible practices by employees
and others; and promoting the health
and safety ethos.
Achievements during 2006-07:
• training of 15 staff members in risk
assessment, enabling these staff to
conduct workstation assessments
and provide advice to staff as
required;
• OH&S training for 8 managers and
supervisors;
• selection and training of 8 first aid
officers and 9 fire wardens; and
• training of 4 staff in hazard
identification, assessment and
control.
Workers Compensation
Two new workers compensation
claims were lodged during 2006-07,
bringing total claims to four. During
the reporting period, one claim was
resolved and two transferred to the
Department of Justice with Racing,
Gaming and Licensing.
Table 21: Workers Compensation Claims
Total expenditure
Claims as at 1 July
New claims
Claims resolved
Claims transferred with Racing, Gaming and
Licensing
Claims as at 30 June
Number of staff receiving ongoing workers
compensation payments
Managing the Organisation: Treasury People
The value of claims in 2006-07 was
90 per cent lower than in 2005-06, and
totalled $18 380. The higher expense
in 2005-06 was due to a lump sum
payment to one employee.
The types of injuries for workers
compensation claims either lodged or
ongoing in 2006-07 were:
• falls on the same level – caused by
wet or oily internal traffic areas;
• neck injury as a result of a car
collision; and
• mental stress – aggravation of
depression and anxiety.
Table 21 compares 2006‑07 with
2005-06 workers compensation data.
2006-07 2005-06
$18 380 $189 300
2 2
2 1
1 1
2 -
1 2
0 0
65
Employee Wellness Table 22: Employee Assistance Program
2006-07 2005-06
Employee Assistance
Total expenditure for financial year $21 039 $38 077
Program
Treasury’s Employee Assistance Total number of people assisted by EAP providers 46 48
Program (EAP) provides an important – Treasury employees 32 37
service to the agency’s employees – Immediate family members 7 8
and forms part of our OH&S – Manager assistance, advice, coaching 7 3
commitments. From time to time, staff
Total number of sessions 105 194
may be affected by personal, family
or work-related issues and the EAP
Flu Vaccinations Corporate Challenges
is one way that Treasury supports
Free flu vaccinations for all Treasury Staff are encouraged to become
staff. The EAP offers up to five free
staff were provided again in 2006-07, involved in Corporate Challenges,
confidential counselling sessions for
the fourth year the program has been which provide unique opportunities
employees and their family members,
offered. 34 per cent of staff received for work colleagues to match their
with either of Treasury’s EAP
the vaccination, up from 30 per cent in sporting skills against others in a fun
providers.
2005-06. and social atmosphere while enjoying
EAP also provides coaching for the benefits of being active.
supervisors and managers in dealing The value of the program in terms
of reducing sickness is difficult to In 2006-07 Treasury sponsored
with difficult and sensitive staff
monitor, as staff are not required several corporate teams in running
issues in the workplace, by providing
to provide reasons for sick leave and walking, soccer, netball and lawn
guidance and strategies, as well as
absences, which precludes bowls. The All Revved Up run/walk
mediation and dispute resolution
matching absences to vaccination team took the top honours in the 2007
services.
status. Also, the vaccination does Run/Walk Corporate Challenge.
In 2006-07 a total of 105 EAP sessions not provide immunity against
were taken up by Treasury staff and all possible strains of influenza.
immediate family members, at a cost Nonetheless Treasury will continue
of $21 039. Although the utilisation to offer this program to staff.
rate remained steady with 46 people
assisted by the EAP providers, fewer
sessions were accessed overall. In
2006-07 only seven staff utilised the
full five sessions available, compared
to 18 in 2005‑06, with a number of
employees accessing additional
sessions in order to enable them to
deal with their work-related issues or
personal concerns.

Details are summarised in Table 22.

Treasury’s All Revved Up run/walk team (L-R): Kristina Skipper, Jayne Balding, Nathan Schultz,
Mathew Pickering, Felicity Wannan and James England

66 Annual Report 2006-07

Reporting Against Employment Instructions
Under the Public Sector Employment and Management Act (PSEMA), 13 Employment Instructions provide direction to
agencies on human resource management matters. Each instruction specifies required reporting in agency annual reports.
Treasury’s performance against each instruction is reported below.

Table 23: Employment Instructions, Annual Reporting Requirements and Agency Action
Employment Instruction and Annual
Reporting Requirements Agency Action
Number 1 – Recruitment Treasury’s recruitment policy was revised in 2006, with standard
Agency to develop procedures on templates developed for each stage of the selection process for use
recruitment and selection for internal use. by managers and selection panels.

CEO required to report annually on the
number of employees in each designation
and variations since last report.
Recruitment action undertaken during 2006-07 included advertising
73 vacancies, 75 staff commencing and 62 staff leaving Treasury.
Two promotion appeals were lodged in 2006-07, with the Promotions
Appeal Board finding them to be unsubstantiated.

Staffing data is reported at the beginning of this section.

Number 2 – Probation
CEO shall develop a probationary process
for their agency and convey details of the
probationary process to employees within
their first week of reporting for duty.
Treasury’s probation policy and procedures were finalised in 2006-07,
reflecting the improved processes that have been developed over the
past year. It accommodates the necessary review processes for the
relatively high number of staff on entry-level employment programs,
who are (necessarily) engaged on temporary contracts.

The policy outlines a process that ensures that both supervisors

and employees understand the elements of probation, and their
respective responsibilities when an employee is on probation. It also
provides supporting documentation to complement the process,
including revised three and six monthly probation reports, monthly
reporting for graduates and other full-time trainees, and a Probation
Commencement Form for supervisors to complete and provide to the
probationer within one week of the probationer’s commencement with
Treasury.

New employees have also been advised of the probation process

by DCIS Recruitment when undergoing E-Induction. New employees
are then provided with a further explanation of the probation process
by Treasury human resources (HR) staff at their internal induction
training.
Number 3 – Natural Justice The principles of natural justice are followed in all dealings with
The rules of natural justice to be observed in employees and are reflected in Treasury’s Corporate Governance
all dealings with employees. principles, and all internal policies and procedures.

Managing the Organisation: Treasury People 67

Table 23: Employment Instructions, Annual Reporting Requirements and Agency Action (continued)
Employment Instruction and Annual
Reporting Requirements
Number 4 – Performance Management
CEO is to report annually on management
training and staff development programs.
CEO shall develop and implement
performance management systems for their
agency.
Number 5 – Medical Incapacity
No agency action or reporting requirements
Number 6 – Medical Inability
CEO to provide OCPE with information
on the extent to which this Employment
Instruction has been used by the agency.
CEO may establish procedures regarding
inability within their agency.
Number 7 – Discipline
CEO to provide OCPE with information
on the extent to which this Employment
Instruction has been used by the agency.
CEO may establish procedures regarding
discipline within their agency.
68 Annual Report 2006-07
Agency Action
Treasury provides this information through an annual report
coordinated by OCPE, details of which are published in the State of
the Service Report.
Treasury’s Performance Development Framework (PDF) remains
a fundamental element in developing our staff. It comprises a
performance management system based on assessment against
well established competencies, six-monthly feedback reviews,
upward feedback from employees to managers and identification of
development opportunities.
To support this framework, Treasury’s HR Unit continues to monitor
individual staff training needs and training that has been undertaken
through its training database, and will soon be providing regular
reports to managers. The PDF framework also guides staff and
mangers in the event that performance recovery is required. HR staff
also support managers in dealing with under-performance issues and
assisting managers and staff in performance recovery efforts.
Management training and staff development activities in 2006‑07 are
reported earlier in this section.
Treasury rarely has a need relating to medical incapacity, however
where advice is required, managers liaise directly with senior
executives, Treasury’s HR Unit or the Office of the Commissioner for
Public Employment (OCPE) seeking specific advice as required.
Treasury provides this information through an annual report
coordinated by OCPE, details of which are published in the State of
the Service Report.
Treasury rarely has a need relating to medical inability, however where
advice is required, managers liaise directly with senior executives,
Treasury HR or OCPE seeking specific advice as required.
Treasury provides this information through an annual report
coordinated by OCPE, details of which are published in the State of
the Service Report.
During 2006-07, disciplinary action was not taken against any
employee.
Table 23: Employment Instructions, Annual Reporting Requirements and Agency Action (continued)
Employment Instruction and Annual
Reporting Requirements
Number 8 – Grievances
CEO shall establish written grievance setting
procedures for the agency that should be
available to employees and outline steps for
dealing with grievances.
Number 9 – Now incorporated in Employment
Instruction 1
Number 10 – Employee Records
Agencies are required to maintain
appropriate employee records and
implement procedures for maintaining and
accessing these records.
Number 11 – Equal Employment Opportunity
CEO to devise and implement programs to
ensure equal employment opportunities and
outcomes are achieved.
CEO to report annually on programs and
initiatives agency has developed. Report
should also include reports detailing
specific action in relation to Aboriginal
Employment and Career Development,
and also measures to enable employees to
balance work and family responsibilities.
Number 12 – Occupational Health and Safety
CEO to develop programs to ensure
employees are consulted in the development
and implementation of occupational health
and safety programs.
CEO to report annually on occupation health
and safety programs. Records must be kept
on risk assessment, maintenance control
and information, instruction and training
provided to employees.
Number 13 – Code of Conduct
CEO may issue guidelines regarding
acceptance of gifts and benefits to
employees. CEO may issue agency specific
Code of Conduct.
Agency Action
Treasury’s Grievance Policy has been in place since 2004 and is
available to all staff on the internal intranet site. Treasury HR provides
advice and support to managers in dealing with grievances.
There were no grievances lodged in 2006-07.
DCIS is responsible for storing all agency personnel files. Treasury
follows DCIS policy in regard to accessing these files. Any requests to
access employee records are made through the Manager HR.
In 2006-07 Treasury’s workplace Equity and Diversity Framework
was finalised. In support of Treasury’s Indigenous Employment and
Career Development Strategy, the framework incorporates agency
requirements under the PSEMA and the Anti-Discrimination Act, in
addition to whole of government strategies, such as Willing and Able,
to promote and encourage our diverse workforce.
These documents are provided to staff through the internal intranet
site.
Details of Treasury’s programs and initiatives are reported earlier in
this section.
Treasury’s OH&S Committee comprises staff from AO3 to
management level from all areas of Treasury. The committee deals
with OH&S issues, including safe workplaces and systems and
developing, implementing and monitoring OH&S measures.
The Committee has developed a site on the internal intranet, which
identifies the OH&S Committee, policies, training opportunities
and related information and links, for example, to the DCIS OH&S
newsletter.
Details of Treasury’s programs and initiatives are provided earlier in
this section of the annual report.
New staff are provided with the Code of Conduct as part of their
commencement package. New staff are also advised of their
obligations at regular Treasury induction training.
Other staff are reminded of their obligations at regular intervals and
with each major exercise or project.
Managing the Organisation: Treasury People 69
Table 23: Employment Instructions, Annual Reporting Requirements and Agency Action (continued)
Employment Instruction and Annual
Reporting Requirements Agency Action
Number 14 – Part-Time Employment Treasury’s Flexible Work Arrangements Policy is available on the
CEO to advise unions on a six-monthly basis internal intranet site.
of number of part-time employees by salary
As at 30 June 2007, ten employees were working part-time, and two
stream.
were working in home-based arrangements.

Future Priorities
• Development of Treasury’s Performance Management System that will provide
managers with the necessary skills and practical assistance to address
underperformance, and will encompass the following elements:
– Performance Development;
– Professional and Career Development; and
– Performance Recovery.

• Further development of the leadership development and mobility program

within Treasury to enhance professional development opportunities,
management capabilities and generally broaden skills and expertise.
• Completion of Treasury’s 2007-09 Indigenous Employment and Career
Development Strategy in accordance with whole of government strategy.
• Work Integrated Learning Scholarship to be expanded to include accounting in 2008.
• Continued emphasis on professional and technical development, including
sponsored study, tailored training and participation in professional body
activities.

70 Annual Report 2006-07

 Managing the Organisation:
Financial Performance
Northern Territory Treasury
Overview 74
Certification of the Financial Statements 80
Financial Statements 81
Notes to the Financial Statements 85
1. Objectives and Funding 85
2. Statement of Significant Accounting Policies 85
3. Operating Statement by Output Group 93
4. Goods and Services Received 95
Free of Charge
5. Gain on Disposal of Assets 95
6. Purchases of Goods and Services 95
7. Cash and Deposits 96
8. Receivables 96
9. Property, Plant and Equipment 96
10. Payables 97
11. Borrowings and Advances 97
12. Provisions 98
13. Equity 98
14. Notes to the Cash Flow Statement 99
15. Financial Instruments 99
16. Commitments 101
17. Contingent Liabilities and Contingent Assets 102
18. Events Subsequent to Balance Date 102
19. Accountable Officer’s Trust Account 102
20. Write-offs, Postponements and Waivers 103
21. Schedule of Territory Items 104
Financial Statements – Treasury’s Dual Role
Reporting Preface 72
Central Holding Authority
Overview 105
Certification of the Financial Statements 108
Financial Statements 109
Notes to the Financial Statements 113
1. Objectives and Funding 113
2. Statement of Significant Accounting Policies 113
3. Goods and Services Received 118
Free of Charge
4. Cash and Deposits 118
5. Receivables 118
6. Payables 118
7. Borrowings and Advances 118
8. Provisions 119
9. Superannuation Liability 119
10. Equity 121
11. Notes to the Cash Flow Statement 122
12. Financial Instruments 122
13. Contingent Liabilities and Contingent Assets 125
14. Events Subsequent to Balance Date 125
15. Write-offs, Postponements and Waivers 125
Financial Statements – Treasury’s Dual Role

Reporting Preface
Treasury is a central agency, whose primary function is providing advice to
Government. Treasury’s policy role differs from many other agencies, whose
activities predominantly involve the delivery of services directly to the public.
Like all government agencies, Treasury’s activities are mainly funded by output
and capital appropriations, as determined in the annual Budget.

However, Treasury has an important dual role in that it is responsible for its own
budget and accounts, but it also manages the Central Holding Authority (CHA)
for the Government. The CHA is the Territory’s own entity that holds the revenue,
expenses, assets and liabilities of the Territory and has a similar function to that
of a parent company. Revenue is collected by agencies on behalf of the CHA.
Funds are transferred from the CHA to agencies, according to appropriation
amounts, for spending.

Because of its central agency role, Treasury undertakes certain responsibilities

on behalf of government, incurring Territory Government expenses through
Treasury’s Operating Statement. These expenses include the Territory’s GST
administration costs and payment of some community service obligations
on behalf of the Government. Treasury also collects significant levels of
Government revenue on behalf of the CHA for use across government. It is
important, in reviewing Treasury’s financial statements, to understand the
impacts these whole of government expenses and revenues have on Treasury’s
accounts, and how this effect differs from most other agencies.

Necessarily, Treasury’s agency accounts and the CHA are closely interrelated
and reflect whole of government responsibilities beyond Treasury’s internal
arrangements and operations. Figure 11 endeavours to illustrate the relationship
and compare it to the CHA’s relationship with other agencies.

It is worth noting that the Northern Territory Treasury Corporation, as the

Government’s central financing authority, also has a unique financial relationship
with the CHA. However, although it is part of Treasury for organisational
purposes, Treasury Corporation is a government business division and reports
separately under its own legislation.

As a result of Treasury’s dual financial role, this section presents the 2006-07
financial statements for both Treasury and the CHA. A brief overview is provided
with each set of accounts and their accompanying notes to assist the reader in
understanding the performance of each entity and their unique relationship.

72 Annual Report 2006-07

Figure 11: Relationship Between the Central Holding Authority, Treasury and Other Agencies

Central Holding Authority

On behalf of the Territory,
records:
− assets not assigned to
agencies, eg. investments
− liabilities not assigned to
agencies, eg. borrowings,
unfunded superannuation,
Treasury long service leave
Receives:
Other Agencies
Receives revenue, collected for
Receive:
the Territory through agencies:
− unti ,
e d G ST revenue
revenue -source
from Austra
lian Gover nment so me Ter ritor y own
−
− ow
n-sour es
ce revenue stamp duty, fin
, eg. taxes CHA eg. vehicle

− agency-own revenue,
− tied grants from
eg. interest on loans
Australian Government
to TIO
− agency own-source
revenue, eg. fees for
transfers outp service, charges
u t an d
c ap i t a
l appr
o p r i at i o
n to agenc
ie s
Spends on:
− operations on behalf
of government (74%) On behalf of the Territory:
eg. CSOs, GST − pays interest owed Spend on:
administration − pays out long service − own operations, eg.
payment, fuel subsidy, leave and superannuation salaries, operational
home owner grants benefits costs
and subsidies − some CSOs
− own operations (26%) − grant programs
eg. salaries,
operational costs

Northern Territory Treasury Financial Statements 73

Northern Territory Treasury Financial
Statements 2006-07 – Overview

Treasury’s financial performance in 2006-07 and comparatives for 2005-06 are

reported in four financial statements: the Operating Statement, Balance Sheet,
Statement of Changes in Equity and Statement of Cash Flows. These statements
have been prepared in accordance with the whole of government financial
management framework and the requirements of accounting standards.

Main Results
• Treasury reported an operating surplus of $3.4 million in 2006-07, an
improvement on the Budget estimate of $1.1 million. This was a result of lower
than expected employee expenses and lower requirements for grants and
subsidies.
• Equity of $20.3 million at 30 June 2007 was $5.7 million less than the previous
year, mainly the result of large cash balances transferring to the CHA following
the repayment of the Motor Accidents Compensation Scheme (MACA) loan by
the Territory Insurance Office (TIO).
• Cash at 30 June 2007 was $1.3 million, $11.3 million less than 30 June 2006,
reflecting the equity transfer to the CHA.
• During 2006-07, the Racing, Gaming and Licensing function transferred
from Treasury to the Department of Justice, involving 57 full‑time equivalent
staff and $16.7 million in budget. The financial transfer is backcast in these
statements with effect from 1 July 2006.

Operating Statement – Summary

Table 24: Operating Statement

Operating Statement 2006-07 2005-06 Variation

$000 $000 $000 %
Operating income 101 278 128 221 -26 943 -21.0
Operating expenses 97 880 128 100 -30 220 -23.6
Net operating surplus 3 398 121 3 277 2 708.3

Treasury reported a net operating surplus of $3.4 million for 2006-07, compared

to $0.12 million the previous financial year. This large variation in operating
income and expenses was due to the transfer of Racing, Gaming and Licensing
(RGL) to the Department of Justice, lower than expected employee costs due to
difficulty recruiting to all vacant positions, lower grant and subsidy payments, and
finalisation of the High Court case brought against the Territory by NT Power in
2005-06.

74 Annual Report 2006-07

Operating Income
Table 25: Operating Income
Operating Income 2006-07 2005-06 Variation
$000 $000 $000 %
Taxation revenue 1 708 -1 708 -100.0
Output revenue 97 278 122 933 -25 655 -20.9
Goods and services received free 2 172 2 509 - 337 -13.4
of charge
Other income 1 828 1 071 757 70.7
Total 101 278 128 221 -26 943 -21.0

Treasury’s principal source of revenue (96 per cent or $97 million) is

appropriation transferred from the Central Holding Authority (output revenue).
The remaining $4 million is sourced from (notional) revenue to meet the (notional)
cost of services received free of charge from the Department of Corporate and
Information Services (DCIS) and interest earned on loans to TIO (other income).

The $26.9 million decrease in operating income since 2005-06 relates to lower
output revenue requirements following the RGL transfer from Treasury and higher
output revenue in 2005-06 due to legal costs, including settlement of $12 million
related to the NT Power matter.

Operating Expenses
Table 26: Operating Expenses
Operating Expenses 2006-07 2005-06 Variation
$000 $000 $000 %
Employee expenses 15 212 19 545 - 4 333 - 22.2
Administrative expenses
Purchases of goods and services 7 865 21 153 -13 288 - 62.8
Figure 12: Treasury’s Operating
DCIS services free of charge 2 172 2 509 - 337 - 13.4 Expenses
GST administration 6 314 6 063 251 4.1 Expenses on behalf
of Government
Other expenses 249 287 - 38 - 13.2 $72.1M

Grants and subsidies 66 068 78 543 -12 475 -15.9

Total 97 880 128 100 -30 220 -23.6 74%
Expenses incurred by Treasury during the year were largely whole of
government items paid from Treasury’s budget. Figure 12 shows that only 26%
26 per cent or $26 million of the 2006-07 operating expenses related to
Treasury’s own agency operations, while 74 per cent or $72 million were Territory Treasury-own
Government expenses met by Treasury in its central agency role. As explained expenses
$25.8M
earlier in this section, while expenses on behalf of the Government are recorded
in Treasury’s financial reports, Treasury has no discretion on how these
resources will be spent and cannot divert these resources to its own operations.

Northern Territory Treasury Financial Statements 75

Treasury’s own expenses relate to employee and administrative costs (mostly
for information technology and communications). The expenses on behalf of
the Government arise from grants and subsidies such as community service
obligation payments to maintain uniform tariffs for households and small
businesses ($52.8 million) and payments to the Australian Government for the
Territory’s share of GST administration costs ($6.3 million). Further commentary
is provided below for each category of expense and reasons for variations
during 2006-07.

Employee Expenses
This $4.3 million decrease in employee expenses in 2006-07 reflects vacant
positions not filled as a result of difficulties recruiting professional staff and the
transfer of RGL staff to the Department of Justice.

Administrative Expenses
Administrative expenses were lower in 2006-07 largely due to one-off legal costs
in 2005-06, reported as a 63 per cent variation or $13.3 million reduction in
expenses for this financial year.

Grants and Subsidies

Overall, Treasury paid $66 million in grants and subsidies in 2006‑07, a
decrease of $12.5 million from 2005-06. Almost $53 million of the 2006-07
grants and subsidies related to community service obligation payments to
subsidise uniform tariffs for electricity, water and sewerage for households, small
businesses and Tranche 4 electricity customers.

Also, RGL grants accounted for approximately $9.2 million in 2005-06. First

home owner grants were also lower in 2006-07.

Because of the magnitude of the grants and subsidies element of Treasury

expenditures, it is useful to understand its components in more detail. This
information is presented in Table 27.

76 Annual Report 2006-07

Table 27: Grants and Subsidies
Grants and Subsidies 2006-07 2005-06 Variation
$000 $000 $000 %
Community service obligations 52 805 54 937 -2 132 -3.9
First home owner grant 8 820 10 150 -1 330 -13.1
Fuel subsidy 3 060 3 138 -78 -2.5
Alice Springs Convention 1 115 869 246 28.3
Centre subsidy
Charles Darwin University 268 213 55 25.8
demographic research
grants
RGL grants and subsidies1 0 9 236 -9 236 -100.0
Total 66 068 78 543 -12 475 -15.9
1. The RGL transfer to the Department of Justice is treated with effect from 1 July 2006 for
financial purposes.

Balance Sheet – Summary

Table 28: Balance Sheet
Balance Sheet 2006-07 2005-06 Variation
$000 $000 $000 %
Assets 23 373 32 864 -9 491 -28.9
Liabilities 3 028 4 843 -1 815 -37.5
Equity 20 345 28 021 -7 676 -27.4

Table 28 shows that during 2006-07, assets and liabilities reduced. As the
reduction of assets was larger than the reduction in liabilities this resulted in a
lower level of equity.

Treasury’s assets comprise mostly cash, deposits, advances and investments,

with a small amount of property, plant and equipment which reflect Treasury’s
policy advice rather than a service delivery role.

Excess cash balances were transferred to the CHA following TIO’s repayment
of the Motor Accidents Compensation Scheme (MACA) loan. The excess cash
balances were not needed by Treasury to carry out its normal operations and
were therefore transferred to the CHA as an equity withdrawal.

Lower liabilities were mainly due to fewer outstanding creditors at the end of
2006-07, the repayment to the Australian Government of the Natural Disaster
Relief and Recovery Arrangements loan, and a lower provision for employee
entitlements at the end of the year, with the transfer of RGL staff to the
Department of Justice.

Northern Territory Treasury Financial Statements 77

Statement of Cash Flows – Summary
Table 29: Statement of Cash Flows
Cash Flows 2006-07 2005-06 Variation
$000 $000 $000 %
Cash at beginning of the 12 564 3 936 8 628 219.2
reporting period
Receipts 100 963 127 972 - 27 009 -21.1
Payments 99 201 127 597 -28 396 -22.3
Return on assets -1 368 10 322 -11 690 -113.3
Equity withdrawals 11 660 2 069 9 591 463.6
Cash at end of reporting 1 298 12 564 -11 266 -89.7
period

Figures in Table 29 reflect the expenses and revenues shown in the Operating
Statement summary including necessary accrual adjustments (Table 24). The
reduction in cash at the end of the year, compared to 2005-06, is mainly due to
the equity withdrawal of the MACA loan repayment made to Treasury in 2005-06
and cash payment of accrual items from the 2005-06 financial year.

Collection of Territory Income

Table 30: Total Income Collected by Treasury in 2006-07
Total Income Collected by Treasury 2006-07 % of Total
$000 %
Treasury – Agency Income – reported in Operating 101 278 4
Statement
Territory Income – reported in Note 21 2 534 575 96
Total Income Collected 2 635 853 100

During 2006-07, Treasury collected a total of $2.64 billion in income, however

only 4 per cent of that income ($101 million) flowed back to Treasury for its
own purposes. This 4 per cent or $101 million is the income figure reported in
Treasury’s financial reports, with the remaining 96 per cent (or $2.53 billion)
being Territory income, collected on behalf of, and recorded in, the Central
Holding Authority. Accordingly, Territory income does not form part of income
controlled by Treasury and is therefore not reported in Treasury’s financial
reports. Rather, it is summarised by way of disclosure in Note 21 to the financial
statements.

Table 30 shows the total income collected by Treasury, categorised by agency

income and Territory income, collected and administered on behalf of the
Central Holding Authority.

78 Annual Report 2006-07

Summary
In 2006-07, Treasury came in under budget, reporting a higher than expected
surplus as a result of lower than anticipated employee expenses and lower than
expected grant and subsidy payments. It is important to note that 74 per cent
of Treasury’s expenses are managed on behalf of the Government in Treasury’s
central agency role. Treasury’s surplus was generated from lower costs in both
its central agency and own-agency operations.

The RGL transfer, treated as occurring from the beginning of 2006-07, resulted
in reduced income and expenses for Treasury, with commensurate movement of
the Gambling, Liquor and Other Regulation output group to the Department of
Justice’s budget.

Northern Territory Treasury Financial Statements 79

Certification of the Financial Statements

We certify that the attached financial statements for the Northern Territory
Treasury have been prepared from proper accounts and records in accordance
with the prescribed format, the Financial Management Act and Treasurer’s
Directions.

We further state that the information set out in the Operating Statement, Balance
Sheet, Statement of Changes in Equity, Cash Flow Statement, and notes to and
forming part of the financial statements, presents fairly the financial performance
and cash flows for the year ended 30 June 2007 and the financial position on
that date.

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

Jennifer Prince Catherine Wauchope

Under Treasurer Assistant Under Treasurer

(Corporate and Superannuation)
30 September 2007 30 September 2007

80 Annual Report 2006-07

Operating Statement
For the year ended 30 June 2007

Note 2007 2006

$000 $000
INCOME
Taxation revenue 1 708
Grants and subsidies revenue
Current 30 45
Output revenue 97 278 122 933
Sales of goods and services 316
Interest revenue 1 368 738
Goods and services received free of 4 2 172 2 509
charge
Gain on disposal of assets 5 1
Other income 114 287
TOTAL INCOME 3 101 278 128 221

EXPENSES
Employee expenses 15 212 19 545
Administrative expenses
Purchases of goods and services 6 7 865 21 153
Repairs and maintenance 11 12
Depreciation and amortisation 9 157 209
Other administrative expenses 1
8 486 8 580
Grants and subsidies expenses
Current 13 263 23 256
Capital 350
Community service obligations 52 805 54 937
Interest expenses 81 58
TOTAL EXPENSES 3 97 880 128 100
NET SURPLUS 13 3 398 121
1. Includes DCIS service charges.

The Operating Statement is to be read in conjunction with the notes to the

financial statements.

Northern Territory Treasury Financial Statements 81

Balance Sheet
As at 30 June 2007

Note 2007 2006

$000 $000
ASSETS
Current assets
Cash and deposits 7 1 298 12 564
Receivables 8 440 342
Advances and investments 4 816 3 450
Prepayments 727 355
Other assets -7
Total current assets 7 274 16 711

Non-current assets
Advances and investments 15 423 15 423
Property, plant and equipment 9 676 730
Total non-current assets 16 099 16 153
TOTAL ASSETS 23 373 32 864

LIABILITIES
Current liabilities
Deposits held 151
Payables 10 790 1 391
Borrowings and advances 11 83 411
Provisions 12 1 557 2 076
Total current liabilities 2 430 4 029

Non-current liabilities
Provisions 12 598 814
Total non-current liabilities 598 814
TOTAL LIABILITIES 3 028 4 843
NET ASSETS 20 345 28 021

EQUITY 13
Capital 6 019 17 093
Accumulated funds 14 326 10 928
TOTAL EQUITY 20 345 28 021

The Balance Sheet is to be read in conjunction with the notes to the financial
statements.

82 Annual Report 2006-07

Statement of Changes in Equity
For the year ended 30 June 2007

Note 2007 2006

$000 $000
BALANCE OF EQUITY AT 1 JULY 28 021 29 159

Capital 13
Balance at 1 July 17 094 18 352
Equity injections 1 103 838
Equity withdrawals -12 178 -2 097
Balance at 30 June 6 019 17 093

Accumulated Funds 13
Balance at 1 July 10 928 10 807
Surplus (+)/deficit(-) for the period 3 398 121
Balance at 30 June 14 326 10 928

BALANCE OF EQUITY AT 30 JUNE 20 345 28 021

This Statement of Changes in Equity is to be read in conjunction with the notes

to the financial statements.

Northern Territory Treasury Financial Statements 83

Cash Flow Statement
For the year ended 30 June 2007

Note 2007 2006

$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating receipts
Taxes received 1 708
Grants and subsidies received
Current 30 45
Output revenue received 97 278 122 933
Receipts from sales of goods and services
Other agency receipts 2 287 2 548
Interest received 1 368 738
Total operating receipts 100 963 127 972
Operating payments
Payments to employees 15 964 19 644
Payments for goods and services 17 088 29 352
Grants and subsidies paid
Current 13 263 23 256
Capital 350
Community service obligations 52 805 54 937
Interest paid 81 58
TOTAL OPERATING PAYMENTS 99 201 127 597
NET CASH FROM OPERATING ACTIVITIES 14 1 762 375
CASH FLOWS FROM INVESTING ACTIVITIES
Investing receipts
Repayment of advances 11 108
Total investing receipts 11 108
Investing payments
Purchases of assets 9 54
Advances and investing payments 1 368 732
Total investing payments 1 368 786
NET CASH FROM INVESTING ACTIVITIES -1 368 10 322
CASH FLOWS FROM FINANCING ACTIVITIES
Financing receipts
Proceeds of borrowings 903
Deposits received - 150 - 358
Equity injections 13
Capital appropriation 329 390
Other equity injections 664 325
Total financing receipts 843 1 260
Financing payments
Repayment of borrowings 329 1 232
Equity withdrawals 13 12 174 2 097
Total financing payments 12 503 3 329
NET CASH FROM FINANCING ACTIVITIES -11 660 -2 069
Net increase(+)/decrease(-) in cash held -11 266 8 628
Cash at beginning of financial year 12 564 3 936
CASH AT END OF FINANCIAL YEAR 7 1 298 12 564

The Cash Flow Statement is to be read in conjunction with the notes to the financial statements.

84 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

1. Objectives and Funding

Treasury’s purpose is to promote sustainable fiscal strength and economic
development of the Northern Territory, and contribute to improved social
and fiscal wellbeing for Territorians.

Treasury is predominantly funded by, and is dependent on, the receipt

of Parliamentary appropriations. The financial statements encompass
all funds through which the agency controls resources to carry on its
functions and deliver outputs. For reporting purposes, outputs delivered by
the agency are summarised into several Output Groups. Note 3 provides
summary financial information in the form of an Operating Statement by
Output Group.

2. Statement of Significant Accounting Policies

(a) Basis of Accounting
The financial statements have been prepared in accordance with the
requirements of the Financial Management Act and related Treasurer’s
Directions. The Financial Management Act requires Treasury to prepare
financial statements for the year ended 30 June based on the form
determined by the Treasurer. The form of agency financial statements is to
include:

(i) a Certification of the Financial Statements;

(ii) an Operating Statement;

(iii) a Balance Sheet;

(iv) a Statement of Changes in Equity;

(v) a Cash Flow Statement; and

(vi) applicable explanatory notes to the financial statements.

The form of agency financial statements is consistent with the accrual

budget format and the requirements of Australian Accounting Standards,
including AASB 101, AASB 107 and AAS 29. The format also requires
additional disclosures specific to Territory Government entities.

The financial statements have been prepared using the accrual basis
of accounting, which recognises the effect of financial transactions and
events when they occur, rather than when cash is paid out or received.
As part of the preparation of the financial statements, all intra agency
transactions and balances have been eliminated.

Except where stated, the financial statements have also been prepared in
accordance with the historical cost convention.

Northern Territory Treasury Financial Statements 85

Notes to the Financial Statements
For the year ended 30 June 2007

(b) Agency and Territory Items

The financial statements of Treasury include income, expenses, assets,
liabilities and equity over which Treasury has control (agency items).
Certain items, although managed by the agency, are controlled and
recorded by the Territory rather than the agency (Territory items). Territory
items are recognised and recorded in the Central Holding Authority as
discussed below.

Central Holding Authority

The Central Holding Authority is the ‘parent body’ that represents the
Government’s ownership interest in Government controlled entities.

The Central Holding Authority also records all Territory items, such as
income, expenses, assets and liabilities controlled by the Government and
managed by agencies on behalf of the Government. The main Territory
item is Territory income, which includes taxation and royalty revenue,
Australian Government general purpose funding (such as GST revenue),
fines, and statutory fees and charges.

The Central Holding Authority also holds certain Territory assets not
assigned to agencies, as well as certain Territory liabilities that are not
practical or effective to assign to individual agencies, such as unfunded
superannuation and long service leave.

The Central Holding Authority recognises and records all Territory items
and, as such, these items are not included in the agency’s financial
statements. However, as the agency is accountable for certain Territory
items managed on behalf of Government, these items have been
separately disclosed in Note 21 – Schedule of Territory Items.

(c) Comparatives
Where necessary, comparative information for the 2005-06 financial year
has been reclassified to provide consistency with current year disclosures.
Please note that 2005-06 financial year comparatives include the
Gambling, Liquor and Other Regulation output group, which is no longer a
Treasury function following its transfer to the Department of Justice.

(d) Presentation and Rounding of Amounts

Amounts in the financial statements and notes to the financial statements
are presented in Australian dollars and have been rounded to the nearest
thousand dollars, with amounts of $500 or less being rounded down to
zero.

(e) Changes in Accounting Policies

There have been no changes to accounting policies adopted in 2006-07 as
a result of management decisions.

86 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

(f) Goods and Services Tax

Income, expenses and assets are recognised net of the amount of Goods
and Services Tax (GST), except where the amount of GST incurred on a
purchase of goods and services 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 the expense.

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 part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis.
The GST components of cash flows arising from investing and financing
activities which are recoverable from, or payable to, the ATO are classified as
operating cash flows. Commitments and contingencies are disclosed net
of the amount of GST recoverable or payable unless otherwise specified.

(g) Income Recognition

Income encompasses both revenue and gains.

Income is recognised at the fair value of the consideration received,

exclusive of the amount of goods and services tax (GST). Exchanges
of goods or services of the same nature and value without any cash
consideration being exchanged are not recognised as income.

Output Revenue
Output revenue represents Government funding for agency operations and
is calculated as the net cost of agency outputs after taking into account
funding from agency income. The net cost of agency outputs for Output
Appropriation purposes does not include any allowance for major non‑cash
costs such as depreciation.

Revenue in respect of this funding is recognised in the period in which the

agency gains control of the funds.

Grants and Other Contributions

Grants, donations, gifts and other non-reciprocal contributions are
recognised as revenue when the agency obtains control over the assets
comprising the contributions. Control is normally obtained upon receipt.

Contributions are recognised at their fair value. Contributions of services

are only recognised when a fair value can be reliably determined and the
services would be purchased if not donated.

Sale of Goods
Revenue from the sale of goods is recognised (net of returns, discounts
and allowances) when control of the goods passes to the customer and
specified conditions associated with the sale have been satisfied.

Northern Territory Treasury Financial Statements 87

Notes to the Financial Statements
For the year ended 30 June 2007

Rendering of Services
Revenue from rendering services is recognised on a stage of completion
basis.

Interest Revenue
Interest revenue is recognised as it accrues, taking into account the
effective yield on the financial asset.

Disposal of Assets
A gain or loss on disposal of assets is included as a gain or loss on
the date control of the asset passes to the buyer, usually when an
unconditional contract of sale is signed. The gain or loss on disposal is
calculated as the difference between the carrying amount of the asset
at the time of disposal and the net proceeds on disposal. Refer also to
Note 5.

Contributions of Assets
Contributions of assets and contributions to assist in the acquisition of
assets, being non-reciprocal transfers, are recognised, unless otherwise
determined by Government, as gains when the agency obtains control
of the asset or contribution. Contributions are recognised at the fair value
received or receivable.

(h) Repairs and Maintenance Expenses

Funding is received for repairs and maintenance works associated with
agency assets as part of output revenue. Costs associated with repairs
and maintenance works on agency assets are expensed as incurred.

(i) Interest Expenses

Interest expenses include interest and finance lease charges. Interest
expenses are expensed in the period in which they are incurred.

(j) Cash and Deposits

For the purposes of the Balance Sheet and the Cash Flow Statement,
cash includes cash on hand, cash at bank and cash equivalents. Cash
equivalents are highly liquid short-term investments that are readily
convertible to cash. Cash at bank includes monies held in the Accountable
Officer’s Trust Account that are ultimately payable to the beneficial owner
– refer also to Note 19.

(k) Receivables
Receivables include accounts receivable and other receivables and are
recognised at fair value less any allowance for uncollectible amounts. The
collectibility of receivables is reviewed regularly, and part of this process
is to assess, at reporting date, whether an allowance for doubtful debts is
required.

Accounts receivable are generally settled within 30 days.

88 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

(l) Property, Plant and Equipment

Acquisitions
All items of property, plant and equipment with a cost, or other value, equal
to or greater than $5000 are recognised in the year of acquisition and
depreciated as outlined below. Items of property, plant and equipment
below the $5000 threshold are expensed in the year of acquisition.

The construction cost of property, plant and equipment includes the cost
of materials and direct labour, and an appropriate proportion of fixed and
variable overheads.

Complex Assets
Major items of plant and equipment comprising a number of components
that have different useful lives, are accounted for as separate assets. The
components may be replaced during the useful life of the complex asset.

Subsequent Additional Costs

Costs incurred on property, plant and equipment subsequent to initial
acquisition are capitalised when it is probable that future economic
benefits in excess of the originally assessed performance of the asset will
flow to the agency in future years. Where these costs represent separate
components of a complex asset, they are accounted for as separate
assets and are separately depreciated over their expected useful lives.

Construction (Work in Progress)

As part of the Financial Management Framework, the Department
of Planning and Infrastructure is responsible for managing general
government capital works projects on a whole of government basis.
Therefore appropriation for most capital works is provided directly to the
Department of Planning and Infrastructure and the cost of construction
work in progress is recognised as an asset of that Department. Once
completed, capital works assets are transferred to the agency.

Depreciation and Amortisation

Items of property, plant and equipment, including buildings but excluding
land, have limited useful lives and are depreciated or amortised using the
straight line method over their estimated useful lives.

Amortisation applies in relation to intangible non-current assets with limited

useful lives and is calculated and accounted for in a similar manner to
depreciation.

Northern Territory Treasury Financial Statements 89

Notes to the Financial Statements
For the year ended 30 June 2007

The estimated useful lives for each class of asset are in accordance with
the Treasurer’s Directions and are determined as follows:

2007 2006
Plant and Equipment 3-10 Years 4-10 Years

Assets are depreciated or amortised from the date of acquisition or from

the time an asset is completed and held ready for use.

Impairment of Assets
An asset is said to be impaired when the asset’s carrying amount exceeds
its recoverable amount.

Non-current physical and intangible agency assets are assessed for

indicators of impairment on an annual basis. If an indicator of impairment
exists, the agency determines the asset’s recoverable amount. The asset’s
recoverable amount is determined as the higher of the asset’s depreciated
replacement cost and fair value less costs to sell. Any amount by which the
asset’s carrying amount exceeds the recoverable amount is recorded as
an impairment loss.

Impairment losses are recognised in the Operating Statement unless

the asset is carried at a revalued amount. Where the asset is measured
at a revalued amount, the impairment loss is offset against the Asset
Revaluation Reserve for that class of asset to the extent that an available
balance exists in the Asset Revaluation Reserve.

In certain situations, an impairment loss may subsequently be reversed.

Where an impairment loss is subsequently reversed, the carrying amount
of the asset is increased to the revised estimate of its recoverable amount.
A reversal of an impairment loss is recognised in the Operating Statement
as income, unless the asset is carried at a revalued amount, in which case
the impairment reversal results in an increase in the Asset Revaluation
Reserve.

(m) Operating Leases

Operating lease payments made at regular intervals throughout the term
are expensed when the payments are due, except where an alternative
basis is more representative of the pattern of benefits to be derived
from the leased property. Lease incentives under an operating lease
of a building or office space are recognised as an integral part of the
consideration for the use of the leased asset. The lease incentive is
recognised as a deduction of the lease expense over the term of the lease.

(n) Payables
Liabilities for accounts payable and other amounts payable are carried
at cost which is the fair value of the consideration to be paid in the future
for goods and services received, whether or not billed to the agency.
Accounts payable are normally settled within 30 days.

90 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

(o) Employee Benefits

Provision is made for employee benefits accumulated as a result of
employees rendering services up to the reporting date. These benefits
include wages and salaries and recreation leave. Liabilities arising in
respect of wages and salaries and recreation leave and other employee
benefit liabilities that fall due within twelve months of reporting date are
classified as current liabilities and are measured at amounts expected to
be paid. Non-current employee benefit liabilities that fall due after twelve
months of the reporting date are measured at present value, calculated
using the Government long-term bond rate.

No provision is made for sick leave, which is non-vesting, as the anticipated

pattern of future sick leave to be taken is less than the entitlement accruing
in each reporting period.

Employee benefit expenses are recognised on a net basis in respect of the

following categories:

• wages and salaries, non-monetary benefits, recreation leave, sick leave

and other leave entitlements; and
• other types of employee benefits.
As part of the Financial Management Framework, the Central Holding
Authority assumes the long service leave liabilities of Government
agencies, including Treasury and, as such, no long service leave liability is
recognised in agency financial statements.

(p) Superannuation
Employees’ superannuation entitlements are provided through the:

• Northern Territory Government and Public Authorities Superannuation

Scheme (NTGPASS);
• Commonwealth Superannuation Scheme (CSS); or
• non-government employee nominated schemes for those employees
commencing on or after 10 August 1999.
The agency makes superannuation contributions on behalf of its
employees to the Central Holding Authority or non-government employee
nominated schemes. Superannuation liabilities related to government
superannuation schemes are held by the Central Holding Authority and, as
such, are not recognised in agency financial statements.

Northern Territory Treasury Financial Statements 91

Notes to the Financial Statements
For the year ended 30 June 2007

(q) Contributions by and Distributions to Government

The agency may receive contributions from Government where the
Government is acting as owner of the agency. Conversely, the agency
may make distributions to Government. In accordance with the Financial
Management Act and Treasurer’s Directions, certain types of contributions
and distributions, including those relating to administrative restructures,
have been designated as contributions by, and distributions to,
Government. These designated contributions and distributions are treated
by the agency as adjustments to equity.

The Statement of Changes in Equity and Note 13 provide additional

information in relation to contributions by, and distributions to, Government.

(r) Commitments
Disclosures in relation to capital and other commitments, including
lease commitments, are shown at Note 16 and are consistent with the
requirements contained in AASB 101, AASB 117 and AAS 29.

Commitments are those contracted as at 30 June where the amount of the

future commitment can be reliably measured.

92 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

3. O
perating Statement by Output Group
Financial Territory
Management Economic Commercial2 Revenue
2007 2006 2007 2006 2007 2006 2007 2006
$000 $000 $000 $000 $000 $000 $000 $000
INCOME
Taxation revenue
Grants and subsidies revenue
Current 9 13 6 8 3 7 10
Output revenue 5 849 6 869 64 999 76 627 3 907 5 108 18 592 18 654
Sales of goods and services
Interest revenue 1 368 738
Goods and services received free 630 716 456 448 217 41 543 583
of  charge
Gain on disposal of assets 1
Other income 33 9 94 41 253 211 29 7
TOTAL INCOME 6 521 7 608 65 555 77 124 5 748 6 098 19 171 19 254

EXPENSES
Employee expenses 4 112 4 869 3 237 3 024 1 180 2 972 4 275 4 134
Administrative expenses
Purchases of goods and services 1 340 1 484 1 770 15 109 1 472 1 584 1 969 1 344
Repairs and maintenance 2 2 2 2 1 2 3 2
Depreciation and amortisation 57 72 28 32 13 5 33 43
Other administrative expenses 1
633 725 6 764 6 500 217 41 545 584
Grants and subsidies expenses
Current 269 213 1 115 870 11 879 13 288
Capital
Community service obligations 52 805 54 965
Interest expenses 4 6 3 3 1 71 43
TOTAL EXPENSES 6 148 7 158 64 878 79 848 3 999 5 474 18 775 19 438

NET SURPLUS(+)/DEFICIT(-) 373 450 677 -2 724 1 749 624 396 - 184
1. Includes DCIS service charges.
2. Superannuation has previously been included in the Commercial Services output group,
however from 2006-07, reports separately.

Northern Territory Treasury Financial Statements 93

Notes to the Financial Statements
For the year ended 30 June 2007

3. Operating Statement by Output Group (continued)

Gambling,
Economic Liquor and Other
Superannuation2 Regulation Regulation Total
2007 2006 2007 2006 2007 2006 2007 2006
$000 $000 $000 $000 $000 $000 $000 $000
INCOME
Taxation revenue 1 708 1 708
Grants and subsidies revenue
Current 4 9 1 1 4 30 45
Output revenue 3 401 616 530 534 14 525 97 278 122 933
Sales of goods and services
Interest revenue 1 368 738
Goods and services received free of
charge 282 449 44 43 229 2 172 2 509
Gain on disposal of assets 1 1
Other income 18 6 3 1 12 430 287
TOTAL INCOME 3 705 1 081 578 579 16 478 101 278 128 221

EXPENSES
Employee expenses 2 064 344 265 4 271 15 212 19 535
Administrative expenses
Purchases of goods and services 1 155 159 245 1 377 7 865 21 143
Repairs and maintenance 3 4 11 12
Depreciation and amortisation 23 36 3 3 17 157 208
Other administrative expenses1 284 450 43 43 230 8 486 8 573
Grants and subsidies expenses
Current 8 885 13 263 23 256
Capital 350 350
Community service obligations 52 805 54 965
Interest expenses 2 4 2 81 58
TOTAL EXPENSES 3 531 490 549 556 15 136 97 880 128 100

NET SURPLUS(+)/DEFICIT(-) 174 591 29 23 1 342 3 398 121

1. Includes DCIS service charges.
2. Superannuation has previously been included in the Commercial output group, however from 2006-07, reports separately.
Note: Gambling, Liquor and Other Regulation transferred to the Department of Justice, backcast for 2006-07.
This Operating Statement by Output Group is to be read in conjunction with the notes to the financial statements.

94 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

4. Goods and Services Received Free of Charge

Recognised in the financial statements
Corporate and information services 2 172 2 509
Not recognised in the financial statements
Internal audits and reviews 71
Total 2 172 2 580

5. Gain on Disposal of Assets

Net proceeds from the disposal of non-current assets 1
Gain on the disposal of non-current assets 1

6. Purchases of Goods and Services

The net surplus has been arrived at after charging the following expenses:
Goods and services expenses:
Consultants1 2 273 1 736
Advertising 2
47 68
Marketing and promotion3 86 65
Document production 360 335
Legal expenses 4
953 13 268
Recruitment 5
81 115
Training and study 284 294
Official duty fares 269 425
Travelling allowance 39 57
1. Includes marketing, promotion and information technology consultants.
2. Does not include recruitment advertising or marketing and promotion advertising.
3. Includes advertising for marketing and promotion but excludes marketing and promotion consultant expenses, which are incorporated in
the consultants category.
4. Includes legal fees, claim and settlement costs.
5. Includes recruitment-related advertising costs.

Northern Territory Treasury Financial Statements 95

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

7. Cash and Deposits

Cash on hand 2 4
Cash at bank 1 296 12 560
Total cash and deposits 1 298 12 564

8. Receivables
Current
Accounts receivable 130 77
GST receivables 285 546
Other receivables 25 - 281
Total receivables 440 342

9. Property, Plant and Equipment

Plant and equipment
At cost 1 177 1 130
Less: Accumulated depreciation - 535 - 459
642 671
Computer Hardware
At cost 248 277
Less: Accumulated depreciation - 214 - 218
34 59

Total property, plant and equipment 676 730

96 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

9. Property, Plant and Equipment (continued)

Reconciliations
A reconciliation of the carrying amount of property, plant and equipment
at the beginning and end of 2006-07 is set out below:
Plant and equipment
Carrying amount as at 1 July 671 698
Disposals 38
Depreciation and amortisation - 132 - 182
Additions from asset transfers 103 117
Carrying amount as at 30 June 642 671

Computer hardware
Carrying amount as at 1 July 59 70
Disposals 16
Depreciation and amortisation - 25 - 27
Carrying amount as at 30 June 34 59

10. Payables
Accounts payable 295 572
Accrued expenses 495 819
Total payables 790 1 391

11. Borrowings and Advances

Current
Loans and advances 83 411
Total borrowings and advances 83 411

Northern Territory Treasury Financial Statements 97

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

12. Provisions
Current
Employee benefits
Recreation leave 1 140 1 520
Leave loading 158 227
Other current provisions
Other provisions 259 329
1 557 2 076
Non-current
Employee benefits
Recreation leave 598 814
598 814
Total provisions 2 155 2 890

13. Equity
Equity represents the residual interest in the net assets of the Treasury. The
Government’s ownership interest in Treasury is held in the Central Holding
Authority as described in Note 2(b).

Capital
Balance as at 1 July 17 094 18 352
Equity injections
Capital appropriation 994 390
Equity transfers in 109 123
Equity withdrawals
Capital withdrawal -12 174 -2 096
Equity transfers out -4 -1
Net effect of administrative restructure 325
Balance as at 30 June 6 019 17 093

Accumulated funds
Balance as at 1 July 10 928 10 807
Surplus for the period 3 398 121
Balance as at 30 June 14 326 10 928

98 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

14. Notes to the Cash Flow Statement

Reconciliation of net surplus to net cash from operating activities
Net surplus 3 398 121
Non-cash items:
Depreciation and amortisation 157 209
Asset write-downs 7
Asset donations/gifts -1
Repairs and maintenance – minor new works – non cash 3
Changes in assets and liabilities:
Decrease(+)/increase(-) in receivables 196 - 470
Decrease(+)/increase(-) in prepayments - 371 234
Decrease(+)/increase(-) in other assets - 287 294
Decrease(-)/increase(+) in payables - 600 156
Decrease(-) in provision for employee benefits - 676 - 121
Decrease(-) in other provisions - 58 - 54
Net cash from operating activities 1 762 375

15. Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of
one entity and a financial liability or equity instrument of another entity.
Financial instruments held by Treasury include cash and deposits,
receivables, payables and finance leases. Treasury has limited exposure to
financial risks as discussed below.

(a) Credit Risk

Treasury has limited credit risk exposure (risk of default). In respect of any
dealings with organisations external to Government, Treasury has adopted
a policy of only dealing with creditworthy organisations and obtaining
sufficient collateral or other security where appropriate, as a means of
mitigating the risk of financial loss from defaults.

The carrying amount of financial assets recorded in the financial

statements, net of any allowances for losses, represents Treasury’s
maximum exposure to credit risk without taking account of the value of any
collateral or other security obtained.

Northern Territory Treasury Financial Statements 99

Notes to the Financial Statements
For the year ended 30 June 2007

(b) Net Fair Value

The carrying amount of financial assets and financial liabilities recorded
in the financial statements approximates their respective net fair values.
Where differences exist, these are not material.

(c) Interest Rate Risk

Treasury has limited exposure to interest rate risk as agency financial
assets and financial liabilities, with the exception of investments and
borrowings, are non-interest bearing. Treasury’s exposure to interest
rate risk and the average interest rate for classes of financial assets and
financial liabilities are set out in the following tables. The average interest
rate is based on the outstanding balance at the start of the year.

Fixed Interest Maturity

Weighted
Average Non-
Interest Variable Under 1 1 to 5 Over 5 Interest
Rate Interest year years years Bearing Total
% $000 $000 $000 $000 $000 $000
2007 Financial assets
Cash and deposits 1 298 1 298
Receivables 440 440
Advances and investments 7.215 20 240 20 240
Total financial assets 20 240 1 738 21 978
Financial liabilities
Payables 790 790
Borrowings and advances 2.9 83 83
Total financial liabilities 83 790 873

Net financial assets 20 157 948 21 105

100 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

(c) Interest Rate Risk (continued)

Fixed Interest Maturity
Weighted
Average Non-
Interest Variable Under 1 1 to 5 Over 5 Interest
Rate Interest year years years Bearing Total
% $000 $000 $000 $000 $000 $000
2006 Financial assets
Cash and deposits 12 564 12 564
Receivables 342 342
Advances and investments 6.6 18 873 18 873
Total financial assets 18 873 12 906 31 779
Financial liabilities
Deposits held 151 151
Payables 1 391 1 391
Borrowings and advances 2.6 411 411
Total financial liabilities 411 1 542 1 953

Net financial assets 18 462 11 364 29 826

16. Commitments
Operating Lease Commitments 2007 2006
Treasury leases property under non-cancellable operating leases expiring $000 $000
from 1 to 5 years. Leases generally provide Treasury with a right of
renewal at which time all lease terms are renegotiated, and relate to
items of plant and equipment. Future operating lease commitments not
recognised as liabilities are payable as follows:
Within one year 30 42
Later than one year and not later than five years 36 29
Total lease liability 66 71

Northern Territory Treasury Financial Statements 101

Notes to the Financial Statements
For the year ended 30 June 2007

17. Contingent Liabilities and Contingent Assets

(a) Contingent Liabilities
Workers Compensation Insurance
The Government has indemnified private sector insurers, which provided
workers compensation insurance in the Territory. The indemnity covers
insurers for losses which arise as a result of acts of terrorism. The resultant
contingent liability is unquantifiable.

Finance
The Territory financial management framework is underpinned by
centralised banking arrangements. The sole provider of banking related
services has been granted indemnities under the whole of government
banking contract. The contingent liability resulting from the indemnities is
unquantifiable.

b) Contingent Assets
The Northern Territory Treasury had no contingent assets as at
30 June 2007 or 30 June 2006.

18. Events Subsequent to Balance Date

No events have arisen between the end of financial year and the date
of this report that require adjustment to, or disclosure in, these financial
statements.

19. Accountable Officer’s Trust Account

In accordance with section 7 of the Financial Management Act, an
Accountable Officer’s Trust Account has been established for the receipt
of money to be held in trust. A summary of activity is shown below.

Opening Closing
Balance Balance
Nature of Trust Money 1 July 2006 Receipts Payments 30 June 2007
$000 $000 $000 $000
NT TAB 73 73
Unclaimed money 78 78
Total 151 151

102 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

20. Write-offs, Postponements and Waivers

Agency Agency Territory Items Territory Items
No. of No. of No. of No. of
2007 Trans. 2006 Trans. 2007 Trans. 2006 Trans.
$000 $000 $000 $000
Write-offs, postponements and waivers under
the Financial Management Act
Amounts written off, postponed and waived by
delegates
Irrecoverable amounts payable to the Territory 5 16 6 7
or an agency written off
Total written off, postponed and waived by 5 16 6 7
delegates

Amounts written off, postponed and waived by

the Treasurer
Irrecoverable amounts payable to the Territory 213 10 131 6
or an agency written off
Postponement or waiver of right to receive or 2 816 6 1 356 3
recover money or property
Total written off, postponed and waived by the 3 029 16 1 487 9
Treasurer

Total write-offs, postponements and waivers 3 034 32 1 493 16

authorised

Northern Territory Treasury Financial Statements 103

Notes to the Financial Statements
For the year ended 30 June 2007

21. Schedule of Territory Items

The following Territory items are managed by the Northern Territory
Treasury on behalf of the Government and are recorded in the Central
Holding Authority (CHA) (refer Note 2(b)).

2007 2006
$000 $000
TERRITORY INCOME AND EXPENSES
Income
Taxation revenue 432 140 439 416
Grants and subsidies revenue
GST revenue 2 015 336 1 850 175
Current 6 790 21 871
Sales of goods and services
Fees from regulatory services 2 659 1 967
Royalties and rents 76 203 51 386
Other income -7 1 361
Total income 2 533 121 2 366 176

Expenses
CHA income transferred 2 533 121 2 366 176
Total expenses 2 533 121 2 366 176

Revenue less expenses

TERRITORY ASSETS AND LIABILITIES

Assets
Accounts receivable 1 458 679
Taxes receivable 50 370 44 050
Other receivables 352
Total assets 51 828 45 081

Liabilities
CHA income payable 51 828 44 729
Unearned CHA income 352
Total liabilities 51 828 45 081

Net assets

104 Annual Report 2006-07

Central Holding Authority Financial Statements
2006-07 – Overview

This section of the report provides an analysis of the financial performance of

the Central Holding Authority (CHA).

The CHA is a key element of the Territory’s financial management framework

and is similar in role to the parent entity in a group of companies. It records on
behalf of the Territory:

• assets which are not assigned to agencies, such as the Territory’s investment
portfolio. The CHA does not hold physical assets such as land and buildings;
• liabilities where it is not practical or effective to assign them to individual
agencies. The CHA has two major liabilities – Territory borrowings and
unfunded employee liabilities. Territory borrowings comprise the stock of
general government debt that has accumulated since Self Government and
has been used to fund the construction of major infrastructure in the Territory
over this period. Unfunded employee liabilities are those which have accrued
but are not yet due to be paid, such as superannuation and long service leave;
• revenue collected by the CHA is regarded as Territory revenue, the main types
being taxation, untied grants (predominantly GST revenue) and fines; and
• expenses where the main expense is the payment of appropriation to
agencies. Other significant expenses are interest on Territory borrowings,
interest on cash balances of government business divisions and the
government owned corporation, and the centrally-managed employee costs of
superannuation and long service leave.
The significant movements in these items are analysed below and incorporated
in the Operating Statement, Balance Sheet, Statement of Changes in Equity and
Cash Flow Statement of the accompanying financial statements.

Main Results
• The CHA reported an operating surplus of $29 million in 2006-07, compared
with $218 million in 2005-06. The reduction was a result of increased
superannuation expenses following actuarial review, partially offset by
increased revenue, predominantly GST.
• The Conditions of Service Reserve (COSR) investments ($422 million) earned
an overall return of 16.7 per cent during 2006-07, 1.4 percentage points above
the benchmark.
• Equity increased by $29 million to $1055 million in 2006-07, compared with
$1026 million in 2005-06.
• The CHA made additional contributions of $150 million towards the Territory’s
superannuation liability, invested within the COSR.

Central Holding Authority Financial Statements 105

Operating Statement
The CHA reported a net operating surplus of $29 million compared with a
surplus of $218 million in 2006. The decline in operating surplus in 2007 resulted
Figure 13: Components of CHA
largely from an increase in superannuation expenses following actuarial review
Operating Revenue
and appropriation to agencies reflecting increased service provision across
% Revenue
government. This was partially offset by increases in revenue, predominantly 80

related to GST received from the Australian Government. 70

60

Operating Revenue 50

The CHA has revenue in excess of $2.7 billion of which the majority is Australian 40

Government grants, predominantly GST and, to a lesser extent, Territory own- 30

source revenue. 20

10
Total operating revenue increased by $180 million or 7 per cent compared with 0
GST Tax Royalties, Employer Other
the previous year (see Table 31). Figure 13 indicates that the proportion of etc super
revenue by category has remained constant. 2006-07 2005-06

Table 31: Significant Components of the $180 million Revenue Increase

2006-07 2005-06 Variation Reason for Variation
$M $M $M
GST revenue 2 015 1 850 165 Increased GST revenue collected by the Australian
Government combined with higher growth in
Territory population
Payroll tax 187 181 6 Growth in employment across the Territory
Stamp duty on 113 137 - 24 2005-06 included a number of one-off transactions
conveyances totalling $50 million; 2006-07 shows continued
activity in business conveyancing albeit from a lower
base
Dividends and income tax 49 58 -9 Reduced amounts received from government trading
equivalents entities, mainly Power and Water Corporation
Mining royalties 76 51 25 Increased commodity prices and strong production

Operating Expenses Figure 14: Components of CHA

The CHA had operating expenses of $2.7 billion in 2006-07, however the bulk of Operating Expenses
these were not for its own operations. In excess of 78 per cent was provided as % Expenses
90
appropriation to agencies to enable them to deliver government services across
80
the Territory. A large proportion of the remainder relates to superannuation 70
expenses and interest on borrowings. 60
50
Total operating expenses increased by $369 million or 16 per cent compared to 40

the previous year, largely the result of an increase in superannuation expense 30

20
following actuarial reassessment and appropriation to agencies (see Table 32).
10
Figure 14 indicates that the relative proportion of expenses by category, other 0
Output Interest Super Long Other
than superannuation expense, has not changed significantly. -10 service leave
2006-07 2005-06

106 Annual Report 2006-07

Table 32: Significant Components of the $369 million Expenses Increase
2006-07 2005-06 Variation Reason for variation
$M $M $M
Output appropriation 2 128 2 073 55 Increase to enable agencies to provide services across
the Territory
Superannuation expense 425 111 314 Increase following actuarial review

Balance Sheet
As at 30 June 2007 net assets, being total assets less total liabilities, increased
by $29 million to $1055 million, compared with $1026 million in 2005-06.

Figures 15 and 16 compare the relative components of both assets and liabilities
with the previous year.

The most significant movement in assets relates to the increase in Advances

and Investments of $212 million resulting from increased monies available for
investment.

In relation to liabilities, the most significant upward movement was an increase

of $314 million in the level of superannuation liability following actuarial
reassessment, largely related to the Commonwealth Superannuation Scheme.

Figure 15: Components of CHA % Assets

100
Operating Assets
80

60

40

20

0
Cash, Receivables Advances, Investments
etc etc in agencies
2006-07 2005-06

Figure 16: Components of CHA

Operating Liabilities % Liabilities
80

60

40

20

0
Deposits Borrowings Provisions Super
held and advances liability
2006-07 2005-06

Central Holding Authority Financial Statements 107

Certification of the Financial Statements

We certify that the attached financial statements for the Central Holding Authority
have been prepared from proper accounts and records in accordance with the
prescribed format, the Financial Management Act and Treasurer’s Directions.

We further state that the information set out in the Operating Statement, Balance
Sheet, Statement of Changes in Equity, Cash Flow Statement, and notes to and
forming part of the financial statements, presents fairly the financial performance
and cash flows for the year ended 30 June 2007 and the financial position on
that date.

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

Jennifer Prince David Braines-Mead

Under Treasurer Senior Director Financial
Management
30 September 2007 30 September 2007

108 Annual Report 2006-07

Operating Statement
For the year ended 30 June 2007

Note 2007 2006

$000 $000
INCOME
Taxation revenue 452 694 457 561
Grants and subsidies revenue
GST revenue 2 015 336 1 850 175
Current 6 790 21 871
Capital 8 436
Sales of goods and services
Fees from regulatory services 13 638 11 810
Interest revenue 32 490 18 786
Goods and services received free of 3 15 16
charge
Unrealised gain on securities marked to 37 989 38 995
market
Royalties rents and dividends 103 439 89 469
Employer superannuation contribution 45 807 46 289
Other Income 7 272 8 862
TOTAL INCOME 2 723 907 2 543 834

EXPENSES
Long service leave expense 25 267 28 523
Superannuation expense 9 424 970 111 496
Workers compensation expense - 2 950 - 5 100
Administrative expenses 1 419 478
Borrowing expenses
Interest expense 118 674 117 379
Output expense 2 127 603 2 073 400
TOTAL EXPENSES 2 694 983 2 326 176
NET SURPLUS 10 28 924 217 658

The Operating Statement is to be read in conjunction with the notes to the financial statements.

Central Holding Authority Financial Statements 109

Balance Sheet
As at 30 June 2007

Note 2007 2006

$000 $000
ASSETS
Current assets
Cash and deposits 4 61 387 37 755
Receivables 5 65 349 71 360
Advances and investments 775 916 513 983
Prepayments 259 243
Total current assets 902 912 623 340
Non-current assets
Advances and investments 40 000 90 000
Investments in agencies 4 342 803 4 186 339
Total non-current assets 4 382 803 4 276 339
TOTAL ASSETS 5 285 715 4 899 679

LIABILITIES
Current liabilities
Deposits held 327 656 289 446
Payables 6 7 384 5 522
Borrowings and advances 7 861 799
Provisions 8 135 516 130 258
Superannuation liability 9 126 614 108 899
Total current liabilities 598 031 534 924
Non-current liabilities
Borrowings and advances 7 1 598 294 1 599 067
Provisions 8 73 610 75 310
Superannuation liability 9 1 960 773 1 664 297
Total non-current liabilities 3 632 677 3 338 674
TOTAL LIABILITIES 4 230 709 3 873 598
NET ASSETS 1 055 005 1 026 081

EQUITY
Capital 590 252
Reserves
Accumulated funds 1 055 005 435 829
TOTAL EQUITY 10 1 055 005 1 026 081

The Balance Sheet is to be read in conjunction with the notes to the financial statements.

110 Annual Report 2006-07

Statement of Changes in Equity
For the year ended 30 June 2007

Note 2007 2006

$000 $000
BALANCE OF EQUITY AT 1 JULY 1 026 081 808 423

Capital
Balance at 1 July 590 252 590 252
Movement in year1 - 590 252
Balance at 30 June 10 590 252

Accumulated Funds
Balance at 1 July 435 829 218 171
Movement in year 1
590 252
Surplus for the period 28 924 217 658
Balance at 30 June 10 1 055 005 435 829

BALANCE OF EQUITY AT 30 JUNE 1 055 005 1 026 081

1. A change in classification in preparation for adoption of Accounting Standard AASB 1049.

This Statement of Changes in Equity is to be read in conjunction with the notes

to the financial statements.

Central Holding Authority Financial Statements 111

Cash Flow Statement
For the year ended 30 June 2007

Note 2007 2006

$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating receipts
Taxes received 447 956 462 953
Grants and subsidies received
GST received 2 015 336 1 850 175
Current 6 790 21 871
Capital 8 436
Royalties rent and dividends 117 008 97 717
Agency superannuation contributions 45 807 46 289
Other agency receipts 20 794 20 602
Interest received 32 914 18 779
Total operating receipts 2 695 042 2 518 386
Operating payments
Long service leave 18 776 18 101
Superannuation benefits 110 779 99 809
Payments for goods and services 2 520 510
Interest paid 118 387 117 268
Output payments 2 127 603 2 073 400
Total operating payments 2 378 064 2 309 088
Net cash from(+)/used(-) in operating 11 316 978 209 298
activities

CASH FLOWS FROM INVESTING ACTIVITIES

Investing receipts
Equity sales or withdrawals 25 032 20 386
Total investing receipts 25 032 20 386
Investing payments
Advances and investing payments 174 419 147 676
Capital appropriation 176 525 189 399
Equity acquisitions 4 971 19 916
Total investing payments 355 915 356 991
Net cash from(+)/used(-) in investing activities - 330 883 - 336 605

CASH FLOWS FROM FINANCING ACTIVITIES

Financing receipts
Proceeds of borrowings 228 249
Deposits received 38 211 147 120
Total financing receipts 38 439 147 369
Financing payments
Repayment of borrowings - 901 - 1 011
Total financing payments - 901 - 1 011
Net cash from(+)/used(-) in financing activities 37 538 146 358
Net increase(+)/decrease(-) in cash held 23 632 19 051
Cash at beginning of financial year 37 755 18 704
CASH AT END OF FINANCIAL YEAR 4 61 387 37 755
The Cash Flow Statement is to be read in conjunction with the notes to the
financial statements.

112 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

1. Objectives and Funding

The Central Holding Authority (CHA) is the ‘parent body’ that represents
the Government’s ownership interest in Government controlled entities.

The CHA also records all Territory items. Territory items are revenues,
expenses, assets and liabilities controlled by the Government and
managed by agencies on behalf of the Government. The main Territory
item is Territory revenue, which includes taxation and royalty revenue,
Australian Government general purpose funding (such as GST revenue),
fines and statutory fees and charges.

The CHA also holds certain Territory assets not assigned to agencies as
well as certain Territory liabilities that are not practical or effective to assign
to individual agencies.

Territory items
The CHA recognises all Territory items, therefore the Territory items
managed by agencies on behalf of the Government are not recorded
in their own financial statements. However, as agencies are accountable
for the Territory items they manage on behalf of Government, these
items have been separately disclosed in the notes of agency financial
statements.

2. Statement of Significant Accounting Policies

(a) Basis of Accounting
The financial statements have been prepared in accordance with the
requirements of the Financial Management Act and related Treasurer’s
Directions. The Financial Management Act requires the CHA to prepare
financial statements for the year ended 30 June 2007 based on the form
determined by the Treasurer. The form of agency financial statements is to
include:

i) a Certification of the Financial Statements;

ii) an Operating Statement;
iii) a Balance Sheet;
iv) a Statement of Changes in Equity;
v) a Cash Flow Statement; and
vi) applicable explanatory notes to the financial statements.
The form of agency financial statements is consistent with the accrual
budget format and the requirements of Australian Accounting Standards,
including AASB 101, AASB 107 and AAS 29. The format also requires
additional disclosures specific to Territory Government entities.

The financial statements have been prepared using the accrual basis
of accounting, which recognises the effect of financial transactions and
events when they occur, rather than when cash is paid out or received.

Central Holding Authority Financial Statements 113

Notes to the Financial Statements
For the year ended 30 June 2007

Except where stated, the financial statements have also been prepared in
accordance with the historical cost convention.

(b) Comparatives
Where necessary, comparative information for the 2005-06 financial year
has been reclassified to provide consistency with current year disclosures.

(c) Presentation and Rounding of Amounts

Amounts in the financial statements and notes to the financial statements
are presented in Australian dollars and have been rounded to the nearest
thousand dollars, with amounts of $500 or less being rounded down to
zero.

(d) Changes in Accounting Policies

There have been no changes to accounting policies adopted in 2006-07 as
a result of management decisions.

(e) Goods and Services Tax

Income, expenses and assets are recognised net of the amount of goods
and services tax (GST), except where the amount of GST incurred on a
purchase of goods and services 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 the expense.

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 part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis.
The GST components of cash flows arising from investing and financing
activities which are recoverable from, or payable to, the ATO are classified
as operating cash flows. Commitments and contingencies are disclosed
net of the amount of GST recoverable or payable unless otherwise
specified.

(f) Income Recognition

Income encompasses both revenue and gains.

Income is recognised at the fair value of the consideration received,

exclusive of the amount of GST. Exchanges of goods or services of the
same nature and value without any cash consideration being exchanged
are not recognised as income.

114 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

Grants and Other Contributions

Grants, donations, gifts and other non-reciprocal contributions are
recognised as revenue when the agency obtains control over the assets
comprising the contributions. Control is normally obtained upon receipt.

Contributions are recognised at their fair value. Contributions of services

are only recognised when a fair value can be reliably determined and the
services would be purchased if not donated.

Taxation
Territory taxation is recognised when the underlying transaction or
event, which gives rise to the right to collect revenue, occurs and can be
measured reliably.

Government-assessed revenues, including payroll tax and stamp duty,

are recognised when a taxpayer’s self-assessment is received. Additional
revenues are recognised for assessments subsequently issued following
review of returns lodged by taxpayers.

In respect of taxation balances from government trading entities under

the National Tax Equivalent Regime, only the current taxation receivable is
recognised in these statements.

Revenue from regulatory fees and fines is recognised at the time the fine or
regulatory fee is issued.

Sale of Goods
Revenue from the sale of goods is recognised (net of returns, discounts
and allowances) when control of the goods passes to the customer and
specified conditions associated with the sale have been satisfied.

Rendering of Services
Revenue from rendering services is recognised on a stage of completion
basis with respect to the contract.

Interest Revenue
Interest revenue is recognised as it accrues, taking into account the
effective yield on the financial asset.

Dividends
Dividends revenue is recognised when control of the right to receive the
dividend receivable from government trading entities is obtained by CHA.

(g) Interest Expenses

Interest expenses include interest charges on borrowings and interest paid
to government business divisions on cash holdings and are expensed in
the period in which they are incurred.

Central Holding Authority Financial Statements 115

Notes to the Financial Statements
For the year ended 30 June 2007

(h) Cash and Deposits

For the purposes of the Balance Sheet and the Cash Flow Statement, cash
includes cash on hand, cash at bank and cash equivalents controlled by
the CHA. Cash equivalents are highly liquid short-term investments that are
readily convertible to cash.

Bank overdrafts are carried at the principal amount.

(i) Receivables
Receivables include accounts receivable and other receivables and are
recognised at fair value less any allowance for uncollectible amounts. The
collectibility of receivables is reviewed regularly, and part of this process
is to assess, at reporting date, whether an allowance for doubtful debts is
required.

Accounts receivable are generally settled within 30 days and other

receivables within 30 days.

(j) Advances and Investments

Advances include investment in financial assets for policy purposes and
are recorded at cost.

Investments include investments in financial assets for liquidity

management purposes. Securities and investments are recorded at net
market value, after deducting estimated costs of realisation at reporting
date.

(k) Investments in Agencies

This represents the contributed capital balances of the Territory’s
investment in all its controlled entities.

(l) Deposits Held

These represent amounts held on behalf of agencies, which are
subsequently invested on their behalf.

(m) Payables
Liabilities for accounts payable and other amounts payable are carried at
cost which is the fair value of the consideration to be paid in the future for
goods and services received, whether or not billed to the CHA.

Accounts payable are normally settled within 30 days.

116 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

(n) Provisions
Employee Benefits
As part of the introduction of Working for Outcomes, the CHA assumed
the long service leave liabilities of Government agencies with the actual
liability being transferred from agency ledgers during 2002-03.

Liabilities arising in respect of long service leave due within twelve months
of the reporting date are measured at their nominal amounts based
on remuneration rates which are expected to be paid when the liability
is settled. All other liabilities are measured at the present value of the
estimated future cash outflow to be made in respect of services provided
by employees up to the reporting date.

Workers Compensation and Other Provisions

Workers compensation and other provisions are measured at the present
value of management’s best estimate of the expenditure required to settle
the present obligation at the balance sheet date.

(o) Superannuation Liability

Employees’ superannuation entitlements are provided through the:
• Northern Territory Government and Public Authorities’ Superannuation
Scheme (NTGPASS);
• Commonwealth Superannuation Scheme (CSS); or
• non-government employee nominated schemes for those employees
commencing on or after 10 August 1999.

Liability for government superannuation is met directly by the CHA.

Agencies make superannuation contributions on behalf of their employees
to the CHA or the non-government employee nominated schemes.

(p) Borrowings and Advances

Borrowings represent funds raised for liquidity management purposes
through the Northern Territory Treasury Corporation.

Advances reflect loans received for policy purposes.

Central Holding Authority Financial Statements 117

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

3. Goods and Services Received Free of Charge

Corporate and information services 15 16
Total 15 16

4. Cash and Deposits

Cash and short-term deposits 61 387 37 755
Total cash and deposits 61 387 37 755

5. Receivables
Taxes receivable 40 046 35 502
Royalties, rents and dividends receivable 21 867 32 983
Interest receivables 1 325 1 312
Other receivables 2 111 1 564
Total receivables 65 349 71 360

6. Payables
Current
Accounts payable 168 1 046
Other payables 7 216 4 476
7 384 5 522

7. Borrowings and Advances

Current
Loans and advances 861 799
861 799
Non-current
Loans and advances 1 598 294 1 599 067
1 598 294 1 599 067
Total borrowings and advances 1 599 156 1 599 867

118 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

8. Provisions
Current
Long service leave 120 923 116 222
Workers compensation 14 593 14 036
135 516 130 258
Non-current
Long service leave 32 453 30 646
Workers compensation 41 157 44 664
73 610 75 310
Total provisions 209 126 205 568
Reconciliations of provisions – workers compensation and other
Balance as at 1 July 58 700 63 800
Additional provisions recognised 11 643 8 936
Reductions arising from payments - 14 593 - 14 036
Balance as at 30 June 55 750 58 700

9. Superannuation Liability
Employees’ superannuation entitlements are provided through the:

• NTGPASS;
• CSS; or
• non-government employee nominated schemes for those employees
commencing on or after 10 August 1999.
Liability for government superannuation is met directly by the CHA.
Agencies make superannuation contributions on behalf of their employees
to the CHA or the non-government employee nominated schemes.

These benefits are largely unfunded and the liabilities for future payments
are provided for at reporting date. The liabilities under these schemes have
been calculated annually by various actuaries using the projected unit cost
method.

The expected future payments are discounted to present value using

market yields at the reporting date on national government bonds with
terms to maturity that match, as closely as possible, the estimated future
cash outflows.

Central Holding Authority Financial Statements 119

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
% %

9. Superannuation Liability (continued)

Key assumptions
Key assumptions as at balance date and for following year expense:
Discount rate (gross of tax) 6.25 5.90
Salary rate 4.50 3.50
Expected return on plan assets 6.00 6.00
Inflation (pensions) 2.50 2.50
Imputed cost of interest 5.90 5.20

2007 2006
$000 $000
Balance sheet amounts
The amounts recognised in the balance sheet are determined as follows:
Total defined benefit obligations 2 144 450 1 821 792
Scheme assets 57 063 48 596
Deficit(+)/surplus(-) 2 087 387 1 773 196
Current net liability 126 614 108 899
Non-current net liability 1 960 773 1 664 297
Net liability 2 087 387 1 773 196
Movement in net liability
Net liability in balance sheet at end of prior year 1 773 196 1 761 509
Expense recognised in operating statement 424 970 111 496
Benefits paid - 110 779 - 99 400
Other - 409
Net liability in balance sheet at end of year 2 087 387 1 773 196
Plan assets
The major categories of plan assets are as follows:
Investment trust 56 880 47 705
Other 183 891
Total 57 063 48 596

120 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

9. Superannuation Liability (continued)

Funded status
Defined benefit obligations:
Funded 57 063 48 596
Unfunded 2 087 387 1 773 196
Total 2 144 450 1 821 792
Income statement
The amounts recognised in the income statement are as follows:
Interest cost 104 800 96 103
Net actuarial losses(+)/gains(-) recognised in year 236 920 - 55 600
Past service cost 83 250 70 993
Total included in superannuation expense 424 970 111 496

10. Equity
Capital
Balance as at 1 July 590 252 590 252
Equity transfer out to accumulated funds1 - 590 252
Balance as at 30 June 590 252
Accumulated funds
Balance as at 1 July 435 829 218 171
Equity transfer in from capital1 590 252
Surplus for the period 28 924 217 658
Balance as at 30 June 1 055 005 435 829

1. A change in classification in preparation for adoption of Accounting Standard AASB 1049.

Central Holding Authority Financial Statements 121

Notes to the Financial Statements
For the year ended 30 June 2007

2007 2006
$000 $000

11. Notes to the Cash Flow Statement

Reconciliation of cash
The total of agency cash and deposits of $61.4 million (2006: $37.8 million)
recorded in the Balance Sheet is consistent with that recorded as ‘cash’ in the
Cash Flow Statement.
Reconciliation of net surplus(+)/deficit(-) to net cash from operating activities
Net surplus(+) 28 924 217 658
Changes in assets and liabilities:
Unrealised gain(-)/loss (+)on securities marked to market - 37 989 - 38 995
Amortisation on investments 475 370
Gain on extinguishment - 38 - 53
Decrease(+)/increase(-) in receivables 6 011 11 253
Decrease(+)/increase(-) in prepayments - 16 - 243
Decrease(-)/increase(+) in payables 1 863 878
Decrease(-)/increase(+) in provision for employee benefits 320 699 23 529
Decrease(-)/increase(+) in other provisions - 2 950 - 5 100
Net cash from operating activities 316 978 209 298

12. Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of
one entity and a financial liability or equity instrument of another entity.
Financial instruments held by the CHA include cash and deposits,
receivables, payables and finance leases. The CHA has limited exposure
to financial risks as discussed below.

(a) Credit Risk

The CHA has limited credit risk exposure (risk of default). In respect of
any dealings with organisations external to Government, the agency has
adopted a policy of only dealing with creditworthy organisations and
obtaining sufficient collateral or other security where appropriate, as a
means of mitigating the risk of financial loss from defaults.

The carrying amount of financial assets recorded in the financial

statements, net of any allowances for losses, represents the CHA’s
maximum exposure to credit risk without taking account of the value of any
collateral or other security obtained.

122 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

(b) Net Fair Value

The carrying amount of financial assets and financial liabilities recorded
in the financial statements approximates their respective net fair values.
Where differences exist, these are not material.

(c) Interest Rate Risk

The CHA’s exposure to interest rate risk and the average interest rate
for classes of financial assets and financial liabilities are set out in the
following tables.

The average interest rate is based on the outstanding balance at the start
of the year.

Fixed Interest Maturity

Weighted
Average Non-
Interest Variable Under 1 Over 1 to Over 2 to Over 3 to Over 4 to Over 5 Interest
Rate Interest Year 2 Years 3 Years 4 Years 5 Years Years Bearing Total
% $000 $000 $000 $000 $000 $000 $000 $000 $000
2007 Financial assets
Cash and deposits 6.25 61 387 61 387
Receivables 65 349 65 349
Advances and investments
Unit trust investments 421 908 421 908
Discount securities 6.39 324 099 324 099
Floating rate notes 6.56 5 000 5 000 5 000 15 000
Fixed interest 4.03 24 958 9 983 19 967 54 908
securities
Total financial assets 61 387 354 057 14 983 19 967 5 000 487 257 942 651

Financial liabilities
Deposits held 327 656 327 656
Payables 7 384 7 384
Borrowings and 6.61 390 000 100 000 295 000 305 000 82 900 426 256 1 599 156
advances

Total financial liabilities 390 000 100 000 295 000 305 000 82 900 426 256 335 041 1 934 197

Net financial assets(+)/ 61 387 -35 942 -85 017 -275 033 -305 000 -77 900 -426 256 152 217 -991 544
liabilities(-)

Central Holding Authority Financial Statements 123

Notes to the Financial Statements
For the year ended 30 June 2007

12. Financial Instruments (continued)

Fixed Interest Maturity
Weighted
Average Non-
Interest Variable Under 1 Over 1 to Over 2 to Over 3 to Over 4 to Over 5 Interest
Rate Interest Year 2 Years 3 Years 4 Years 5 Years Years Bearing Total
% $000 $000 $000 $000 $000 $000 $000 $000 $000
2006 Financial assets
Cash and deposits 5.75 37 755 37 755
Receivables 71 360 71 360
Advances and investments
Unit trust investments 233 483 233 483
Discount 5.92 280 500 280 500
securities
Floating rate notes 6.14 5 000 5 000 10 000
Fixed interest 5.80 35 000 25 000 20 000 80 000
securities
Total financial assets 37 755 280 500 35 000 5 000 30 000 20 000 304 843 713 098

Financial liabilities
Deposits held 289 446 289 446
Payables 5 522 5 522
Borrowings and 9.00 258 771 390 000 100 000 295 000 128 900 427 195 1 599 866
advances

Total financial liabilities 258 771 390 000 100 000 295 000 128 900 427 195 294 968 1 894 834

Net financial assets(+)/ 37 755 21 729 -355 000 -95 000 -265 000 -108 900 -427 195 9 875 -1 181 736
liabilities(-)

124 Annual Report 2006-07

Notes to the Financial Statements
For the year ended 30 June 2007

13. Contingent Liabilities and Contingent Assets

The CHA had no contingent liabilities or contingent assets as at 30 June
2007 or 30 June 2006.

14. Events Subsequent to Balance Date

No events have arisen between the end of the financial year and the date
of this report that require adjustment to, or disclosure, in these financial
statements.

15. Write-offs, Postponements and Waivers

The CHA had no write-offs, postponements or waivers in 2006-07 or
2005‑06.

Central Holding Authority Financial Statements 125

Appendixes, Glossary and Lists
Appendixes
1. Directory 128
2. Functions of Treasury 130
3. Treasury’s Organisational Chart 133
4. Corporate Governance Committees 134
5. Membership of Boards and Committees 137
6. Legislation Administered 139
7. Legislative Changes 2006-07 140
8. Competitive Neutrality 142
9. Publications 143
Glossary 146
List of Tables and Figures 149
Appendix 1:
Directory

Northern Territory Treasury Director Financial Reporting Director Social Analysis

38 Cavenagh Street Lisa Strohfeldt Jenny Coccetti
GPO Box 1974 6th Floor, Cavenagh House 5th Floor, Cavenagh House
Darwin NT 0801 Tel (08) 8999 6754 Tel (08) 8999 6255
(unless otherwise stated, please use Fax (08) 8999 5095 Fax (08) 8999 6446
this postal address) Director Budget Development Director Economic Policy
General Enquiries Sibylle Brautigam, Amanda Balchin Rodney McComiskie
Tel (08) 8999 7406 6th Floor, Cavenagh House 5th Floor, Cavenagh House
Tel (08) 8999 5586 Tel (08) 8999 6428
Business hours: 8:00 am to 4:30 pm
Fax (08) 8999 5095 Fax (08) 8999 6446
Executive Director Economic Frameworks
Economic
Under Treasurer Craig Graham
Assistant Under Treasurer (Economic)
Jennifer Prince 5th Floor, Cavenagh House
Tony Stubbin
7th Floor, Cavenagh House Tel (08) 8999 7238
7th Floor, Cavenagh House
Tel (08) 8999 6033 Fax (08) 8999 6446
Tel (08) 8999 6447
Fax (08) 8999 7150
Fax (08) 8999 7150
Deputy Under Treasurer
Senior Director Commercial
(Commercial and Economic)
Anne Tan
Peter Caldwell
5th Floor, Cavenagh House
7th Floor, Cavenagh House
Tel (08) 8999 6812
Tel (08) 8999 7087
Fax (08) 8999 6446
Fax (08) 8999 7150
Senior Director Public Finance
Manager Secretariat
Bruce Michael
Felicity Wannan
5th Floor, Cavenagh House
7th Floor, Cavenagh House
Tel (08) 8999 6398
Tel (08) 8999 6700
Fax (08) 8999 6446
Fax (08) 8999 7150
Senior Director Economic and
Financial Management Social Analysis
Assistant Under Treasurer Tony Barnes
(Budgets and Finance) 7th Floor, Cavenagh House
Jodie Kirkman Tel (08) 8999 6514
7th Floor, Cavenagh House Fax (08) 8999 7150
Tel (08) 8999 7433
Director Economic Analysis
Fax (08) 8999 7150
Sarah Rummery
Senior Director Financial Management 5th Floor, Cavenagh House
David Braines-Mead, Bronwyn Riedel Tel (08) 8999 6546
6th Floor, Cavenagh House Fax (08) 8999 6446
Tel (08) 8999 6110, (08) 8999 6611
Fax (08) 8999 5095

128 Annual Report 2006-07

Territory Revenue Office Northern Territory Statutory Offices
GPO Box 154 Superannuation Office Northern Territory Treasury
Darwin NT 0801 GPO Box 4675 Corporation
Darwin NT 0801 Senior Director Funds Management
General Enquiries
John Montague
Tel (08) 8999 7949 or 1300 305 353 General Enquiries
3rd Floor, Cavenagh House
Fax (08) 8999 6395 Tel (08) 8901 4200 or 1800 631 630
GPO Box 2035
Executive Director Revenue Fax (08) 8901 4222
Darwin NT 0801
Commissioner of Taxes Commissioner of Superannuation Tel (08) 8999 7975
Craig Vukman Kathleen Clayden Fax (08) 8999 7449
9th Floor, Cavenagh House 1st Floor, Cavenagh House
Utilities Commission
Tel (08) 8999 7935 Tel (08) 8901 4272
Commissioner
Fax (08) 8999 6395 Fax (08) 8901 4277
Alan Tregilgas
Director Revenue Collection 9th Floor, Cavenagh House
Treasury Services Group
Deputy Commissioner of Taxes GPO Box 915
Assistant Under Treasurer
Murray Hancock Darwin NT 0801
(Corporate and Superannuation)
9th Floor, Cavenagh House Tel (08) 8999 5480
Catherine Wauchope
Tel (08) 8999 6326 Fax (08) 8999 6262
7th Floor, Cavenagh House
Fax (08) 8999 6395
Tel (08) 8999 6691
Director Revenue Development Fax (08) 8999 7150
Assistant Commissioner of Taxes
Director Corporate Support
Ivan Basei
Sarah Temple
9th Floor, Cavenagh House
4th Floor, Cavenagh House
Tel (08) 8999 6388
Tel (08) 8999 5059
Fax (08) 8999 6395
Fax (08) 8999 6150

Manager Communications and

Information Services
Richard Smith
7th Floor, Cavenagh House
Tel (08) 8999 7911
Fax (08) 8999 7150

Appendixes 129
Appendix 2:
Functions of Treasury

The services Treasury provides
include advice, analysis and
administration of matters relating to:
• financial management and fiscal
initiatives;
• economic frameworks and the
Territory economy;
• commercial projects;
• own-source revenue including
taxation;
• public sector superannuation;
• borrowing and investing on behalf
of the Territory; and
• grants, subsidies and community
service obligations related to its
responsibilities.
Financial Management
Group
The Financial Management Group
is responsible for advice on and
management of the Territory’s
finances and related arrangements.
It comprises a number of areas of
expertise including:
• budget development;
• financial reporting;
• policy analysis and development;
• budgeting and reporting system
(Apex); and
• whole of government financial
information requirements.
It also manages the Central
Holding Authority, is responsible for
administering the Territory’s financial
management framework and policies,
developing and maintaining the
whole of government budgeting and
reporting system, meets the Territory’s
external reporting requirements and
plays a major role in developing
and monitoring the Territory’s Fiscal
Strategy.
It also manages the Government’s
commercial accountabilities and risks
under the Financial Management Act.

Following are details of the functions In fulfilling its responsibility for

and responsibilities of the groups
and business units in Treasury. This is
supplemented by the Organisational
Chart at Appendix 3 which shows
Treasury’s management reporting
structure.
the development and management
of the Territory Budget, the group
provides advice to the Treasurer,
the Government and agencies on
budget proposals, assists agencies
and monitors agency performance
in delivering outputs. It is also
responsible for coordination, analysis
and monitoring of the Territory’s
Infrastructure Program.

The group manages the preparation

and analysis of both agency and whole
of government financial statements in
the development of the Budget and its
monitoring throughout the year.

130 Annual Report 2006-07

Economic Group
The Economic Group provides
analysis and advice on economic
and commercial issues. It comprises
four business units: Commercial,
Economic Policy and Frameworks,
Economic and Social Analysis, and
Public Finance.
Commercial
Commercial provides commercial
advice to Government. It administers
the government owned corporations
framework on behalf of the
shareholding Minister and provides
financial and commercial advice,
particularly on major government
projects and initiatives and public
private partnership policy issues.
Economic Policy and
Frameworks
Economic Policy and Frameworks
aims to ensure that the Territory’s
economic resources are applied
in a manner which promotes the
Territory’s economic performance.
The unit provides advice on economic
policy and reform issues including the
National Reform Agenda (legislative
review, infrastructure regulation,
transport and energy reform and
competitive neutrality), government
owned businesses, water reform,
climate change, insurance and
broader Government policy initiatives.
Economic and Social
Analysis
Economic and Social Analysis
provides a quantitative view of the
Territory economy and relevant
social issues, as a basis for policy
development by Government. The
business unit monitors and analyses
trends in macro-economic conditions,
provides regular briefings for the
Treasurer and senior officials and
regularly publishes information and
analysis on the Territory economy. It
also analyses and provides advice
on social statistics of significance in
the Territory. It has responsibility for
demographic analysis and research
and oversees statistical coordination
across Northern Territory Government
agencies.
Public Finance
Public Finance has its primary
focus on intergovernmental financial
arrangements, incorporating a wide
spectrum of policy issues. Major
activities include representation on
national working groups on goods
and services tax administration and
specific purpose payments policy,
analysis of whole of government
financial issues, provision of strategic
advice on intergovernmental financial
relations, and management of
submissions and data returns to the
Commonwealth Grants Commission.
Territory Revenue Office
Territory Revenue Office provides
advice on the Territory’s taxes and
charges regime, and administers
Northern Territory taxes, tax-related
grants and subsidies and mineral
royalties in a fair and equitable
manner. It comprises two business
units: Revenue Collection and
Revenue Development.
Revenue Collection
Revenue Collection ensures the
effective collection of Territory revenue
in accordance with the relevant tax
and royalty legislation and develops
community understanding of revenue
obligations. The area advises on and
administers tax and royalty legislation,
including identifying tax and royalty
payers and minimising losses to
revenue from avoidance practices. It
also administers a number of subsidy
schemes and grants, including the
first home owner grant.
Revenue Development
Revenue Development ensures the
continuing relevance and efficacy of
the Territory’s revenue regime. The
area provides advice to Government
on revenue policy and budgetary
issues, undertakes revenue modelling
and forecasting analysis, monitors
revenue collections, reviews decisions
made under tax and royalty legislation
and manages the Territory Revenue
Office’s information systems.
Appendixes 131
Northern Territory
Superannuation Office
Northern Territory Superannuation
Office is responsible for
superannuation policy and legislation
that meets statutory requirements of
Territory and national superannuation
legislation, member services, support
services for the Trustee and Review
Boards of various schemes, and the
Northern Territory Government.
Treasury Services
Group
Treasury Services Group provides
executive and corporate services to
enable Treasury to fulfil its role as the
key central agency for the provision
of fiscal, economic and commercial
advice.
Senior Executive
The Under Treasurer, Deputy and
Assistant Under Treasurers and
Executive Director have whole
of agency responsibilities and
accountabilities, providing strategic
direction and leadership for Treasury.
They are also involved in high level
whole of government projects and
policy development.
Executive Support
Executive Support provides support
services to the Under Treasurer, senior
executives and the Treasurer’s office.
The area provides central coordination
and liaison services for Treasury
between the Treasurer’s office, other
Ministers’ offices, the Cabinet Office,
Legislative Assembly and other
Government agencies on issues
relating to Treasury responsibilities.
132 Annual Report 2006-07
Corporate Support
Corporate Support provides services
to Treasury business units to enable
staff to concentrate on core business
in their functional area. Services
include human resource management,
recruitment, staff development,
finance and accounting, office
accommodation, asset control and
vehicles. The area also manages the
Finance Officer in Training (FOIT)
graduate employment program
and other entry-level employment
programs for Treasury.
Information Management
and Systems
Information Management and Systems
also provides services to Treasury
business units including internal and
external communication activities;
website management; publishing
Budget Papers and other key Treasury
publications, reports and documents;
information and communications
technology; building and internal
access control; and records
management.
The Information Officer is part of
Treasury Services and coordinates
activities relating to Treasury’s
Information Act responsibilities.
Statutory Offices
The following statutory offices also fall
within the administrative responsibility
of Treasury, which provides support
for these entities to conduct their
business operations.
Northern Territory Treasury
Corporation
Northern Territory Treasury
Corporation is the Territory
Government’s central financing
authority and borrows, lends and
invests on behalf of the Territory.
The Corporation provides loans to
Government, its agencies, government
owned corporations and, in certain
circumstances, local governing
authorities. It manages an average of
$500 million in investments including
investing the surplus cash balances in
Government accounts.
Utilities Commission
The Utilities Commission is the
independent regulator established
to oversee those industries declared
to be regulated industries, currently
the electricity and water supply and
sewerage services industries.
The Commission was established as
a separate administrative unit within
Treasury, has specific statutory powers
and undertakes its considerations
independently of Treasury.
The Commission is responsible
for promoting and safeguarding
competition and fair and efficient
market conduct or, in the absence
of a competitive market, simulating
competitive market conduct and
preventing the misuse of monopoly
power.
Appendix 3:
Treasury’s Organisational Chart
at September 2007

Territory Revenue
Executive Director
Office
Revenue
Murray Hancock
Craig Vukman
Ivan Basei

Commercial
Anne Tan
Economic Policy and
Under Treasurer Frameworks
Jennifer Prince Rodney McComiskie
Assistant
Craig Graham
Under Treasurer
(Economic) Economic and
Tony Stubbin Social Analysis
Tony Barnes
Sarah Rummery
Deputy Under Treasurer
Jenny Coccetti
(Commercial and Economic)
Peter Caldwell Public Finance
Bruce Michael

Treasury Corporation
John Montague

Financial Management
Assistant David Braines-Mead
Under Treasurer Bronwyn Riedel
(Budgets and Finance) Lisa Strohfeldt
Jodie Kirkman Sibylle Brautigam
Amanda Balchin

Superannuation Office
Kathleen Clayden

Assistant Under
Treasurer (Corporate
and Superannuation) Corporate Support
Catherine Wauchope Sarah Temple
Information Management
and Systems
Richard Smith
Executive Support
and Secretariat
Senior Management Group Felicity Wannan

Appendixes 133
Appendix 4:
Corporate Governance Committees

Fiscal Strategy Committee

Responsible for development of strategic policy advice on the Territory’s fiscal,
budgetary and economic position, and monitoring performance against the
Government’s fiscal objectives. Although the committee’s focus concerns issues
unrelated to internal management, it is responsible for the management of
strategic issues that draw on expertise from several areas across Treasury and
which necessarily require a comprehensive (rather than narrow) approach. In
this sense, it is an important element in Treasury’s governance arrangements
and is regarded as one of Treasury’s corporate governance committees.

Membership
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman (Chair)
Assistant Under Treasurer (Economic), Tony Stubbin
Executive Director Revenue, Craig Vukman
Senior Director Financial Management, David Braines-Mead

Risk and Audit Committee

Responsible for:
• monitoring business risk assessments and adequacy of internal controls
established to manage identified risks and review the adequacy of policies,
practices and procedures that impact on those controls;
• overseeing the audit and risk management function within Treasury, including
the development of internal audit and risk management programs, terms
of reference, monitoring audit and risk management outcomes and the
implementation of recommendations;
• reviewing the effectiveness of structures and practices that support the key
elements of Treasury’s corporate governance framework; and
• reviewing the outcomes and monitoring responses to recommendations of
external auditors.
Membership
Under Treasurer, Jennifer Prince
Deputy Under Treasurer (Commercial and Economic), Peter Caldwell (Chair)
Assistant Under Treasurer (Economic), Tony Stubbin
Executive Director Revenue, Craig Vukman
Assistant Under Treasurer (Corporate and Superannuation), Catherine Wauchope
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman
Director Corporate Support, Sarah Temple

134 Annual Report 2006-07

Human Resource Management Committee
Responsible for guiding the development and implementation of human
resource management policy and planning in Treasury.

Membership
Under Treasurer, Jennifer Prince (Chair)
Deputy Under Treasurer (Commercial and Economic), Peter Caldwell
Assistant Under Treasurer (Economic), Tony Stubbin
Executive Director Revenue, Craig Vukman
Assistant Under Treasurer (Corporate and Superannuation), Catherine Wauchope
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman
Director Corporate Support, Sarah Temple

Professional Development Committee

Responsible for considering and setting policy relating to professional
development of staff.

Membership
Assistant Under Treasurer (Corporate and Superannuation),
Catherine Wauchope (Chair)
Assistant Under Treasurer (Economic), Tony Stubbin
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman

Information Management Committee

Responsible for guiding development, management and use of Treasury’s
information resources and technology.

Membership
Under Treasurer, Jennifer Prince (Chair)
Deputy Under Treasurer (Commercial and Economic), Peter Caldwell
Assistant Under Treasurer (Economic), Tony Stubbin
Executive Director Revenue, Craig Vukman
Assistant Under Treasurer (Corporate and Superannuation), Catherine Wauchope
Assistant Under Treasurer (Budgets and Finance), Jodie Kirkman
Manager Communications and Information Services, Richard Smith

Appendixes 135
Occupational Health and Safety Committee
Responsible for:
• facilitating the provision of safe workplaces and systems of work through the
cooperative efforts of Treasury and its employees;
• developing, implementing and monitoring measures designed to ensure the
health and safety of employees at work; and
• advocating acceptable and responsible practices by employees and others
and promoting the health and safety ethos for the workplace.
Membership
Manager Office Services, Peter Jones (Chair)
Director Corporate Support, Sarah Temple
Manager Communications and Information Services, Richard Smith
Sharon Laughton (Superannuation)
Christine Millowick (Revenue)
Douglas Burns (Financial Management)
Leigh Jenner (Treasury Services)

136 Annual Report 2006-07

Appendix 5:
Membership of Boards and Committees
Northern Territory
Public Sector
Agents Licensing Fidelity Guarantee
Fund Investment Board
Asset Management Systems Review
Steering Committee
AustralAsia Railway Corporation
Charles Darwin University Council
Charles Darwin University Audit and
Risk Committee
Chief Executives Taskforce on
Indigenous Affairs
Chief Finance Officers Forum
Communications and Marketing
Directors’ Forum
Competition Impact Analysis
Committee
Coordination Committee
Coordination Committee – Capital
Works Review Subcommittee
Corporate Services Review Steering
Group
Corrective Services Working Group
Darnor Pty Ltd
Darwin Waterfront Corporation
Enterprise Architecture Reference
Group
Executive Remuneration Review Panel
Gasgo Pty Ltd
Government Office Accommodation
Committee
Indigenous Economic Development
Inter-Departmental Committee
Inter-Departmental Committee Procurement Review Board (Darwin)
on Corporate Taxation and
Superannuation Advice
Public Housing Management in
Remote Areas and Town Camps
Legal Practitioners Funds Working Group
Management Committee
Public Sector Consultative Council
Legislative Assembly Members’
Public Trustee Investment Board
Superannuation Trust
Regional Development Inter-
Major Projects Group
Departmental Committee
Major Projects Taskforces:
Secretariat Network Group
• AustralAsia Trade Route
Statistical Priorities Advisory
• Darwin Waterfront Redevelopment Committee
• Defence Support Industries
Strategic Workforce Steering
• Onshore Gas Developments Committee
Measuring Indigenous Economic
Superannuation Investment Board
Development Steering Committee
Territory Motor Sports Board Limited
Northern Territory Government
Census Steering Committee Territory Taxation Administration
Liaison Committee
Northern Territory Government
Information Management Committee
Northern Territory Government
Information Management Committee –
Records Management Subcommittee
Northern Territory Police Legacy
Board
Northern Territory Police
Supplementary Benefit Scheme Trust
Northern Territory Population
Intelligence Working Group
Northern Territory Statistical Liaison
Committee
Northern Territory Treasury
Corporation Advisory Board
NT Build Board
NT Gas Distribution Pty Ltd
NT Gas Pty Ltd
Appendixes 137
National
Australian Bureau of Statistics 2006
Census Coordination Committee
Australian Bureau of Statistics 2006
Census Indigenous Enumeration
Committee
Australian Bureau of Statistics
Advisory Group on Aboriginal and
Torres Strait Islander Statistics
Australian Statistics Advisory Council
Council of Australian Governments
Indigenous Generational Reform
Working Group
Council of Australian Governments
Local Government Working Group
Goods and Services Tax
Administration Subcommittee
Goods and Services Tax Policy
Advisory Group
Heads of Treasuries
Heads of Treasuries Accounting and
Reporting Advisory Committee
Heads of Treasuries Budget and
Financial Framework Advisory
Committee
Heads of Treasuries Specific Purpose
Payments Working Group
Heads of Treasuries Tax Equivalents
Regime Working Party
Natural Disaster Relief and Recovery
Arrangements Stakeholder Group
National Reform Agenda Competition
and Regulation Working Group
National Reform Agenda Human
Capital Working Group
138 Annual Report 2006-07
Public Private Partnerships Working
Party
State Tax Commissioners Business
Practices Subcommittee
State Tax Commissioners Compliance
Committee
State Tax Commissioners Group
State Tax Commissioners Information
and Communication Technology
Committee
State Tax Commissioners National
First Home Owner Grant Committee
State Tax Commissioners Tax Law
Committee
State Tax Commissioners Training and
Customer Education Committee
Steering Committee for Review of
Government Service Provision
Treasury Corporate Services
Directors’ Forum
Uniform Presentation Framework
Committee
Utility Regulators Forum
Appendix 6:
Legislation Administered
Advance Bank Integration Act
Appropriation Act
Bank of South Australia (Merger with
Advance Bank) Act
Competition Policy Reform (Northern
Territory) Act
Debits Tax Act
Electricity Networks (Third Party
Access) Act
Electricity Reform Act (economic
regulation)
Energy Resource Consumption Levy
Act
Energy Resource Consumption Levy
(Waiver of Levy) Act
Financial Agreement Between the
Commonwealth, States and Territories
(Approval) Act
Financial Institutions Duty Act
Financial Management Act
Financial Relations Agreement
(Consequential Provisions) Act
First Home Owner Grant Act
Fiscal Integrity and Transparency Act
Fuel Subsidies Act
Gaming Control Act (tax and levy Soccer Football Pools Act (duty
provisions) provisions)
Gaming Machine Act (tax, levy and Stamp Duty Act
fee provisions)
Superannuation Act
Government Owned Corporations Act
Superannuation Guarantee
McArthur River Project Agreement (Safety Net) Act
Ratification Act (royalty provisions)
Taxation (Administration) Act
Merlin Project Agreement Ratification
Territory Insurance Office Act
Act (royalty provisions)
Totalisator Licensing and
Mineral Royalty Act
Regulation Act (tax provisions)
Mining (Gove Peninsula Nabalco
Utilities Commission Act
Agreement) Act (royalty provisions)
Water Supply and Sewerage
Motor Accidents (Compensation) Act
Services Act (economic regulation)
Motor Vehicles Act (Part V)
New Tax System Price Exploitation
Code (Northern Territory) Act
Northern Territory Treasury
Corporation Act
Pay-roll Tax Act
Petroleum Act (royalty provisions)
Racing and Betting Act (tax
provisions)
Revenue Units Act
Appendixes 139
Appendix 7:
Legislative Changes 2006-07
Own-Source Revenue
Stamp Duty Act and Taxation
(Administration) Act
Amendments commencing from
1 May 2007:
• increased the first home owner
stamp duty concession from the
stamp duty payable on the first
$225 000 of a home’s value (a
concession of up to $8 015) to the
first $350 000 (a concession of up
to $15 312); and
• prevented the use of the stamp duty
corporate reconstruction exemption
to frustrate the recovery of any
stamp duty, tax or royalty payable to
the Territory.
Amendments commencing from
1 July 2007:
• abolished stamp duty on hiring
arrangements;
• abolished stamp duty on the
grant of a lease for nil or nominal
consideration;
• exempted all types of guarantees
from stamp duty;
• clarified that anything that is
physically fixed to land is regarded
as ‘land’ for the purposes of the
stamp duty ‘land holder’ provisions;
• clarified that the stamp duty
valuation provisions imposed stamp
duty on the full value and best use
of land, which includes having
regard to information that enhances
the value of land;
140 Annual Report 2006-07
• clarified that the stamp duty
treatment of mining information in
relation to mines that are not subject
to the Mining Act is the same
as information relating to mines
governed by the Mining Act; and
• clarified that a person who has
previously owned a home interstate
under a long-term lease cannot
qualify for the stamp duty first home
owner concession on a subsequent
home purchase.
First Home Owner Grant Act
Amendments commencing from
1 July 2007:
• clarified that consideration needs
to actually have been paid for the
purchase of a home before an
applicant can receive the first home
owner grant; and
• clarified that any overpayment of
a first home owner grant can be
recovered.
Motor Accidents
Compensation
Motor Accidents (Compensation) Act
The Motor Accidents (Compensation)
Act (MACA) prescribes compensation
benefits for persons injured, or
the dependants of persons killed,
in motor vehicle accidents in the
Territory. The MACA scheme is
funded by contributions paid by
motorists at the time of registering
or re‑registering a motor vehicle.
Following a comprehensive review of
motor accident compensation benefits
in 2006, involving an extensive
public consultation process, MACA
amendments commencing from
1 July 2007:
• abolished common law damages
for non residents, with benefits
prescribed under MACA applying
for all accidents in the Territory
regardless of residency of the
claimant or location of accident;
• limited MACA benefits to accidents
occurring within Australia (with
provision for lump sum payment of
benefits, in certain circumstances,
where a claimant relocates
overseas);
• increased the cap on benefits for
personal attendant care for the
severely and permanently injured
from 28 to 32 hours per week and to
reduce the permanent impairment
threshold for eligibility for benefits
from 85 per cent to 60 per cent;
• introduced new benefits for Superannuation
seriously and permanently injured,
Northern Territory Police Supplementary
including respite care (equal to two
Benefit Scheme Trust Deed
weeks attendant care benefits per
The Northern Territory Police
year) and domestic services (such
Supplementary Benefit Scheme
as home repairs, maintenance and
Trust Deed was amended on
cleaning);
15 March 2007 to clarify that the
• introduced a new $4000 emergency application of interest to member
travel payment to assist family accounts can be positive or negative.
members to visit a seriously injured
relative;
• excluded the owner or driver from
non-medical benefits if the motor
vehicle was unregistered at the
time of accident for more than three
months;
• linked the existing exclusion from
non-medical benefits for accidents
involving alcohol or drugs to relevant
laws regulating road traffic and
provided for reduced death benefits
for accidents involving alcohol and
drugs;
• excluded non-medical benefits
where a person engages in conduct
that creates a substantial risk of
injury and the person recklessly
ignores that risk; and
• reduced non-medical benefits by
25 per cent for persons not wearing
a seat belt or helmet at the time of
accident (where required to do so).

Appendixes 141
Appendix 8:
Competitive Neutrality

Treasury is responsible for managing Treasury manages the competitive

competitive neutrality policy neutrality complaints process and is
development and monitoring for responsible for monitoring government
Northern Territory Government trading business divisions’ pricing policy and
enterprises. Competitive neutrality community service obligations.
aims to ensure that significant
In August 2006, Treasury received
government businesses do not enjoy
a formal complaint that related to
net competitive advantages over
whether the Darwin Aquaculture
competitors simply by virtue of their
Centre had an unfair competitive
public ownership. Implementation of
advantage in supplying barramundi
competitive neutrality principles since
larvae for a particular transaction.
1995 has improved the transparency
The complaint was investigated
and accountability of government
and dismissed on the basis that the
businesses and ensured that public
complainant could not substantiate
resources are used efficiently. A key
a material loss associated with the
objective of competitive neutrality
transaction.
is to encourage fair and effective
competition in the supply of goods
and services across the economy.

Competitive neutrality principles are

implemented through provisions of the
Financial Management Act and the
Government Owned Corporations Act.
Government businesses are required
to operate with a commercial focus,
to meet the same costs as privately
owned firms (for example, taxes
and charges), and to set prices that
enable them to earn sufficient revenue
to cover costs, including the cost of
capital.

142 Annual Report 2006-07

Appendix 9:
Publications
Northern Territory
Budget Papers
The 2007-08 Budget was handed
down on 1 May 2007.
2007-08 Budget
Budget Paper No. 1 Budget Speech
The Treasurer’s speech to the
Legislative Assembly describes the
Government’s Budget strategy and
key features of the 2007-08 Budget,
together with the Bill presented to
Parliament outlining appropriations for
2007-08.
Budget Paper No. 2 Fiscal and
Economic Outlook
Meets the requirements of the
Fiscal Integrity and Transparency
Act. Includes a discussion of the
Government’s fiscal strategy, the fiscal
and economic outlook for 2007-08
and the forward estimates period, an
overview of expenditure and revenue
initiatives in the Budget, and current
issues in public finance from the
Territory’s perspective. The financial
data provided meets the Territory’s
obligations under the Uniform
Presentation Framework (UPF) as
agreed between governments.
Budget Paper No. 3 The Budget
Provides detailed information on the
budgets of agencies and government
business divisions in the Northern
Territory budget sector, and focuses
on the services and outputs delivered
across Government. A summary of
revenue information is also provided.
Budget Paper No. 4 The Infrastructure
Program
Presents a summary of the
Government’s Infrastructure Program
for all budget sector agencies, as well
as detailed descriptions of 2007-08
capital projects for each agency.
Expected committal dates for major
projects in 2007-08 are also provided.
Related Papers
Budget Overview
Key features of the 2007-08 Budget
are outlined.
Northern Territory Economy
A detailed assessment of the
Territory economy, including recent
performance and growth prospects,
employment, population, trade,
and Australian and international
conditions. Includes chapters on the
performance and outlook for major
Territory industries.
Economy Overview
Presents a concise summary of each
chapter within the Northern Territory
Economy book.
Regional Highlights
A regional overview of the
Government’s initiatives, programs
and expenditures in the 2007-08
Budget.
Business Highlights
A summary of the Government’s
initiatives, policies and programs
designed to facilitate and assist the
Territory business sector.
Treasurer’s Financial
Reports
2005-06 Treasurer’s Annual Financial
Report
The Treasurer’s Annual Financial
Report (TAFR) provides information
about the financial performance and
position of the Northern Territory
Government. TAFR reports under
the accrual framework and provides
information on a sectoral basis
(General Government, Public Non
Financial Corporations, Non Financial
Public Sector, Public Financial
Corporations and Total Public Sector)
in accordance with the Fiscal Integrity
and Transparency Act and the UPF
Agreement. It also includes notes
to the accounts for the Total Public
Sector and provides an explanation
of key variations on an agency by
agency basis in an unaudited section.
2006-07 Mid-Year Report
The Fiscal Integrity and Transparency
Act requires the Territory to publish
a report before the end of February
each year which revises the current
year’s Budget projections and forward
estimates. This interim report on
the Territory’s Budget position also
satisfies the Territory’s UPF reporting
obligations. The report provides
updated information to enable an
assessment of the Government’s
fiscal performance against the current
fiscal strategy.
Appendixes 143
Treasurer’s Quarterly Financial
Reports
These reports provide statements
which summarise the quarterly and
year to date financial transactions,
from a whole of government
perspective on a UPF basis.
Reports were published for
the quarters to 30 September
2006, 31 December 2006 and
31 March 2007. The June quarter
results are incorporated into the
Treasurer’s Annual Financial Report.
2005-06 Annual
Reports
Legislative Assembly Members’
Superannuation Trust
Northern Territory Government and
Public Authorities’ Superannuation
Scheme
Northern Territory Licensing
Commission
Northern Territory Police
Supplementary Benefit Scheme
Northern Territory Treasury
Northern Territory Treasury
Corporation
Racing, Gaming and Licensing
Utilities Commission
144 Annual Report 2006-07
Other Publications
Indigenous Expenditure Review
The Territory has a large and
geographically dispersed Indigenous
population living in urban, rural and
remote areas. The cost of delivering
infrastructure and services to
Indigenous Territorians, especially
those in remote communities, can
be significant. The Indigenous
Expenditure Review, commissioned by
the Northern Territory Government’s
Chief Executives Task Force on
Indigenous Affairs, reviews and
analyses expenditure to this group
and compares it to funding received
by the Territory for Indigenous-related
purposes.
Territory Economic Review
This publication monitors the
latest economic data and provides
analysis of major Territory industries,
consumption and investment, trade,
external economic conditions,
business sentiment, price and wage
inflation and other topical issues as
they develop. The review also presents
a range of relevant time series data
and state by state comparisons of
major economic indicators. There are
about ten editions each year.
Northern Territory Economic Briefs
Northern Territory Economic Briefs
provide up to date analysis of the
Territory economy and its performance
in relation to the Australian economy.
These briefs cover a broad range
of economic and social indicators,
drawing on various sources of data
including the Australian Bureau of
Statistics and Access Economics.
Grocery Price Survey
The survey monitors grocery prices
by measuring the cost of purchasing
an average basket of goods at each
major supermarket across the Territory
and in comparable centres in north
Queensland. The survey is conducted
on a six-monthly basis and results are
published on the Treasury website.
Employers’ Guide to Payroll Tax in the
Northern Territory
An aid to employers who may have
a liability for payroll tax, the guide
comprehensively explains the basic
provisions of the Pay-roll Tax Act and
gives examples of how to calculate
payroll tax.
Stamp Duty Lodgement Guide
The guide sets out taxpayer
lodgement and information
requirements for assessing certain
duties imposed under the Stamp Duty
Act. It is updated as necessary.
TRMeR Manual
The TRMeR Instruction Manual was
designed to provide information on
how to access and use the Territory
Revenue Management electronic
Returns (TRMeR) system for payroll
tax returns. Although primarily
designed to assist employers in the
lodgement of their monthly and annual
adjustment returns, TRMeR can also
be used for a range of other functions,
such as payment of liability by direct
debit utilising the Northern Territory
Government online banking facility,
updating contact details, calculating
the general exemption deduction,
viewing lodgement and payment
history and communicating with the
Territory Revenue Office.
First Home Owner Concession Guide
and Application Form
The first home owner concession
provides Territorians buying their
first home or land to build their first
home, with a concession on the stamp
duty payable. The guide provides
information on the concession
and also informs applicants of the
eligibility criteria. An application form
is attached.
Principal Place of Residence Rebate
Guide and Application Form
The principal place of residence
rebate provides a stamp duty
concession to Territorians buying a
home or purchasing land to build
a new home, where it is not their
first home in Australia. The guide
provides information on the rebate
and also informs applicants of the
eligibility criteria. An application form
is attached.
Northern Territory Government and
Public Authorities’ Superannuation
Scheme 2005-06 Report to Members
The report provides information to
members of the Northern Territory
Government and Public Authorities’
Superannuation Scheme (NTGPASS)
on the management, investment
performance and financial position
of the scheme in 2005-06, and on
current superannuation issues.
Similar reports are prepared for
members of the Legislative Assembly
Members’ Superannuation Trust
and the Northern Territory Police
Supplementary Benefit Scheme.
Member Investment Choice Booklet Websites
The booklet provides NTGPASS
Northern Territory Treasury
members with information about the
www.nt.gov.au/ntt
different options available to them
for investing their superannuation Northern Territory Budget
contribution balances. It details the www.budget.nt.gov.au
investment asset classes of cash,
Northern Territory Superannuation
fixed interest, property and shares
Office
and the associated levels of risk.
www.nt.gov.au/ntt/super
Territory Talking
Northern Territory Treasury
This publication is aimed specifically
Corporation
at holders and prospective holders of
www.territorybonds.nt.gov.au
Territory Bonds. Articles are prepared
both in house and by interested Territory Revenue Office
external parties, such as the registry www.revenue.nt.gov.au
managers. Utilities Commission
www.utilicom.nt.gov.au
Territory Bonds Prospectus
Aimed at prospective holders of The papers and publications listed
Territory Bonds, this publication above are available online at
provides background on Territory www.nt.gov.au/ntt
Bonds, and outlines the terms and
The Budget Papers can also be
conditions. An application form is
obtained from
attached.
www.budget.nt.gov.au
or purchased from:
Northern Territory Government
Printing Office
Retail Sales
Railway Street
Parap NT 0820
or
GPO Box 1447
Darwin NT 0801
Telephone: (08) 8999 4031
Facsimile: (08) 8999 4001
Appendixes 145
Glossary
Accountable Officer’s Trust
Account
Established under section 7(1) of the
Financial Management Act to enable
agencies to hold money in trust for
another person or entity. Transactions
in these accounts are excluded from
the Public Account.
Accounts payable
Refers to the value of short and
long-term trade debt and accounts
payable, interest payable and
prepayments received.
Accounts receivable
Refers to the value of short and
long-term trade credit and accounts
receivable, interest receivable and
prepayments made.
Accrual
In accounting, a recording method in
which revenues, expenses, lending
and borrowing are recognised as they
are earned or incurred, regardless
of when a cash payment is made or
received.
Administrative stream
One of the Northern Territory Public
Sector employee classification
streams is administrative. Occupations
in this stream include assistant
directors, managers, analysts and
officers.
Advances
Amounts paid or received for policy
purposes rather than for liquidity
management purposes.
146 Annual Report 2006-07
Agency
A unit of government administration,
office or statutory corporation,
nominated in an Administrative
Arrangements Order for the purposes
of the Financial Management Act
and includes a part or division of an
agency.
Appropriation
An authority given by the Legislative
Assembly to make payments, now or
at some future time, for the purposes
stated, up to the limit of the amount in
the particular Act.
Appropriation Act
Includes a Supply Act and an annual
Appropriation Act or an additional
Appropriation Act which authorises an
amount to be allocated to a purpose.
Australian Accounting
Standards
Statements of accounting standards
which can be applied in the
preparation and presentation of
financial statements.
Australian Bureau of
Statistics
Australia’s official national statistical
agency. It provides statistics on
economic and social matters, covering
government, business and population.
Capital appropriation
Represents an increase in the
Government’s investment in an agency
for asset purchases and capital works
projects and is provided to agencies
by the Central Holding Authority for
capital items.
Central Holding Authority
Created by section 5 of the Financial
Management Act, the Central Holding
Authority is a representation of the
revenue, expenses, assets and
liabilities of the Territory. Credited to
this account is all money received
by or on behalf of the Territory or
an agency, except that required or
permitted by or under that or any other
Act to be credited to an Operating
Account or to an Accountable Officer’s
Trust Account.
Commonwealth Grants
Commission
Body that advises on per capita
relativities for distributing, among
the states and territories, a pool
of revenue from the Australian
Government.
Community service
obligations
A community service obligation (CSO)
arises when the Government requires
a government business division or
government owned corporation to
carry out activities which it would
not choose to do on a commercial
basis or would only do so at higher
commercial prices. CSO payments
allow the Government to achieve
identifiable community or social
objectives that would not be achieved
if left to commercial considerations.
Competencies
Competencies are the skills, attributes
and behaviours, specified for each
employment level, that an employee
needs in order to complete work to a
high standard.
Contingent liability
A potential financial obligation arising
out of a condition, situation, guarantee
or indemnity, the ultimate effect of
which will be confirmed only on the
occurrence or non-occurrence of one
or more uncertain future events.
Corporate governance
Corporate governance provides a
structured framework through which
Treasury is directed and controlled
and guides how decisions are
made, risks are managed and the
organisation’s future is planned. These
decisions in turn guide the necessary
planning, budgeting and management
of performance, and support
Treasury’s Senior Management Group
in its leadership of Treasury.
Council of Australian
Governments
The peak intergovernmental forum
comprising the Prime Minister,
Premiers, Chief Ministers and
President of the Australian Local
Government Association.
Employee assistance
program
Employer-provided counselling
service aimed at assisting employees
and their immediate family members
experiencing work-related or personal
problems. Government agencies are
required to provide EAP services as
identified in clause 21 of the Northern
Territory Public Sector 2004-07
Certified Agreement.
Executive stream
In comparison to the administrative
stream, the executive stream
comprises Northern Territory Public
Sector employees at the level of
Director and above.
Expense
A cost or outflow of resources from an
organisation.
Full-time equivalent
Used in reference to staffing
numbers where one FTE reflects one
employee working full-time hours of
36.75 hours per week. Employees
working part‑time or casual hours are
represented as a fraction of this. For
example, part‑time hours of 29.70
hours a week equates to 0.8 FTE.
Goods and services tax
revenue
Revenue payments from the Australian
Government return the goods and
services tax (GST) revenue, collected
by the Australian Taxation Office, to
the states and territories.
Indemnity
A written undertaking to compensate,
protect or insure another person or
entity against future financial loss,
damage or liability.
International Financial
Reporting Standards
The term used to describe the
move to standardise global
international accounting standards.
Australian equivalents of these new
standards have been adopted for
reporting periods on or after since
1 January 2005.
OCPE
Office of the Commissioner for Public
Employment, the statutory employer
of all Northern Territory public sector
staff, who is responsible for promoting
the development and observance
of the highest possible standards
of human resource management
practices in agencies.
Operating account
A government business division
operating account or an agency
operating account established
under section 6(1) of the Financial
Management Act.
Glossary 147
Outcomes
Outcomes are expressions of
the intended results, impacts or
consequences on the Territory
community of outputs provided by
agencies.
Outcomes should clearly represent the
objectives the Government is seeking
to achieve and reflect Government’s
policy direction. Outputs need to align
with outcomes, as outputs are the
means through which outcomes are
achieved.
Outputs
Outputs are the services provided or
the goods produced by an agency for
users external to the agency.
Output appropriation
The amount the government agrees
to fund agencies to purchase their
outputs net of any revenue earned
by the agency. This is based on the
purchaser/provider model where
government (purchaser) purchases
outputs from agencies (providers) on
behalf of the community.
Output groups
Output groups are combinations of
like outputs, and are funded through
the Budget.
148 Annual Report 2006-07
Performance Development Revenue
Framework An inflow of resources into an
Treasury’s performance management organisation related to its operations.
system, where staff performance is
reviewed and discussed between
Risk assessment
Determining the nature and level of
manager and staff member on a
business risk to the organisation and
six-monthly basis against established
business units.
competencies, and targets are set for
the coming six months.
Risk management
The steps taken to manage risks,
Provisions
including identifying (both actual and
Amounts set aside by entities from
potential), assessing, eliminating or
current revenue or income for future
controlling risks.
payments.
Uniform Presentation
Framework (UPF)
A uniform reporting framework agreed
by the Australian Loan Council in
2000, which is a revision of the
agreement reached at the 1991
Premiers’ Conference. It specifies
that the Australian, state and territory
governments will present a minimum
set of budget and financial outcome
information on the Government
Finance Statistics basis according to
an agreed format and specified Loan
Council reporting arrangements.
List of Tables and Figures

Tables
Table 1: Financial Management Output Performance 28
Table 2: Economic Output Performance 29
Table 3: Commercial Output Performance 30
Table 4: Superannuation Output Performance 30
Table 5: Territory Revenue Output Performance 31
Table 6: Standards Published in the Territory Revenue Office 32
Service Charter
Table 7: Economic Regulation Output Performance 32
Table 8: Northern Territory Treasury Corporation Business Line Performance 33
Table 9: Corporate Governance Committees 41
Table 10: Audits and Reviews 43
Table 11: Information Act Requests in 2006-07 48
Table 12: Annual Energy Targets 49
Table 13: Cavenagh House Electricity and Water Use 51
Table 14: Enterprise House Electricity and Water Use 51
Table 15: Paper Usage 52
Table 16: FTE Staff by Gender and Classification 55
Table 17: Training and Development Expenditure 59
Table 18: Study Fees Reimbursed 61
Table 19: Equal Employment Opportunity Data 64
Table 20: Indigenous Employment as at 30 June 64
Table 21: Workers Compensation Claims 65
Table 22: Employee Assistance Program 66
Table 23: Employment Instructions, Annual Reporting Requirements 67
and Agency Action
Table 24: Operating Statement 74
Table 25: Operating Income 75
Table 26: Operating Expenses 75
Table 27: Grants and Subsidies 77
Table 28: Balance Sheet 77
Table 29: Statement of Cash Flows 78
Table 30: Total Income Collected by Treasury in 2006-07 79
Table 31: Significant Components of the $180 million Revenue Increase 106
Table 32: Significant Components of the $369 million Expenses Increase 107

List of Tables and Figures 149

Figures
Figure 1: Our Purpose and Outputs 8
Figure 2: Treasury’s Corporate Governance Arrangements 37
Figure 3: Treasury’s Planning Process 46
Figure 4: Electricity Use per Square Metre of Office Space 50
Figure 5: Water Use per FTE 52
Figure 6: Treasury Staff by Classification and Gender as at 30 June 2007 56
Figure 7: Overall 10 Year Gender Comparison 56
Figure 8: Treasury Staff Age Profile as at 30 June 2007 56
Figure 9: Staff with Over 10 Years of Service in Treasury 56
Figure 10: Professional Development Expenditure 61
Figure 11: Relationship Between the Central Holding Authority, Treasury 73
and Other Agencies
Figure 12: Treasury’s Operating Expenses 75
Figure 13: Components of CHA Operating Revenue 106
Figure 14: Components of CHA Operating Expenses 106
Figure 15: Components of CHA Operating Assets 107
Figure 16: Components of CHA Operating Liabilities 107

150 Annual Report 2006-07