NSW.IPAA.ORG.AU

CONNECTING PEOPLE AND IDEAS

2013–14ANNUAL REPORT

As the public sector and the broader environment in which we all work changes at rapid speed, it is more important than ever that IPAA NSW evolves to meet the needs of those working within and supporting the public sector.

Following the appointment of our new Chief Executive John Carnegie in July 2013, IPAA NSW began to explore how we could maintain and grow the relevance of the Institute. A focus for the 2013–14 financial year has been how best to build a stronger IPAA NSW. We have been through a period of substantial strategic development and planning and you will begin to see a reinvigorated and changed IPAA NSW emerging in the coming year.

Over the last financial year, we have continued to facilitate a large number of challenging and valuable events that enrich and extend participants’ knowledge and allow valuable networking opportunities. These included Conferences, Master Classes, Seminars, Forums, Executive Development Programs and a variety of professional breakfasts, lunches and dinners.

Highlights for the year included:

• 2013 Spann Oration delivered by the Hon Nick Grenier AC

• 2013 State Conference, streamed live on the web for our regional members, with an address by NSW Premier, the Hon Barry O’Farrell MP

• International Women’s Day Celebration, with speakers Professor Christine Bennett and the Hon Robyn Parker MP

• CEO and Young Professionals Breakfast and the Budget Briefing Breakfast.

Our broad range of public sector specific professional development programs continues to expand the capabilities and skills of staff at all levels of the public sector. Our publications and website continue to enhance the understanding of the public sector by sharing knowledge and experiences.

The success and reputation of IPAA NSW is a direct result of the contributions of the members of the Council and the staff of IPAA NSW and I thank them for their commitment and dedication. I particularly want to thank John Carnegie for his commitment and drive in conceiving and implementing a new direction for IPAA NSW. The Outlook section on page 16 provides details of some of these planned changes.

Peter Achterstraat

President, IPAA NSW

PRESIDENT'S REVIEW

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 3

IPAA NSW COUNCIL

A Council of 12 IPAA NSW members currently guides the NSW Division in achieving its strategic goals. Ten Councillors are elected for two-year terms, five each alternate year. The Chief Executive Officer is an ex-officio member and there is provision to co-opt additional members to Council if necessary. All elected positions on Council are honorary and elected Councillors receive no stipend for their work.

Council meeting attendance 2013–14

15/08/13 08/10/13 18/02/14 12/05/14

Peter Achterstraat x x xRobert Alder

Daina Aspin n/a n/aCarolyn Burlew x xJohn Carnegie

Kylie Cochrane

Madeleine Culbert

Tim Farland x n/a n/aClare Huxley xSusan McHattie n/a n/aJennifer Mason xAlbert Olley n/a n/aMatthew Schroder x n/a n/aNivek Thompson xPheona Twist n/a n/aCode: = attendance x = non-attendance n/a = not applicable

Council Members 2013–14

PRESIDENTPeter Achterstraat AM FIPAA [1] Principal, Evans & Peck

VICE PRESIDENTSCarolyn Burlew FIPAA [2] Consultant

Madeleine Culbert [3] Director, Development Land and Housing Corporation, Department of Family & Community Services

Susan McHattie (from Nov 2013) [4] Manager Digital Services, Communication and Engagement Directorate, Department of Education and Communities

Pheona Twist (to Nov 2013) [5]

COUNCILLORS

Robert Alder [6] Managing Director Paythru Pty Limited

Kylie Cochrane [7] Communications and Stakeholder Engagement Lead, Aurecon Group

Tim Farland FIPAA (to Nov 2013) [8] Consultant

Albert Olley (from Nov 2013) [9] Executive Director Business Services Department of Family & Community Services

Nivek Thompson [10] Project Director, New Democracy Foundation

John Carnegie (ex-officio) [11] Chief Executive Officer, IPAA NSW

YOUNG PROFESSIONAL COUNCILLORSDaina Aspin (from Nov 2013) [12] Senior Policy Officer, Government Secretariat, Department of Premier and Cabinet

Clare Huxley [13] Manager, ePlanning NSW Department of Planning and Infrastructure

Matthew Schroder (to Nov 2013) [14] Senior Policy Officer, Strategic Policy and Co-ordination Health and Justice Branch, Department of Premier and Cabinet

CO-OPTED COUNCILLORJennifer Mason [15] PhD Candidate

[13] [14] [15][12][9] [10] [11]

[4][1] [2] [3] [8][5] [6] [7]

YEAR IN REVIEWReviewing our associations and developing strategies that position IPAA NSW to meet the challenges of the future and attract public sector professionals

A key focus of 2013–14 has been reviewing our business model and the services and benefits we provide our members. The public sector is changing rapidly and NSW has embarked on a range of significant and far-reaching reforms, led by our Public Service Commission and Premier and Cabinet. IPAA also needs to adapt and change to respond to these challenges and to seek out opportunities to support our members within this environment.

The appointment of a new CEO in July 2013 provided IPAA with the opportunity to take a fresh look at its current operations and the strategies needed to move forward. This included discussion, debate and enquiry at Executive level. During the second half of the year, Council examined and approved IPAA NSW’s Digital Strategy. This strategy included a revision of membership categories. It was also an opportunity for Council to set about building a greater understanding of the needs of our current and potential members.

A key focus for the future will be developing a stronger thought leadership agenda, combined with strengthening our networking and collaboration capabilities.

During the past year we created, managed and delivered a number of professional development and networking opportunities including:

• Annual State Conference

• key corporate events such as International Women’s Day, Spann Oration, Picnic in the Park and the Young Professionals Breakfast

• Senior Executive Master Classes

• a suite of scheduled workshops and Customised Agency Professional development Programs

• a three-week International Development Program for a delegation of 18 executives from Vietnam as part of an AusAID project

• IPAA NSW Awards for Individual Excellence

• hosting international delegations.

Developing strategies so that IPAA NSW will be the association that public sector professionals want to engage with

The traditional core public sector departments and agencies are changing as public sector reforms are implemented and service-delivery options reviewed. The blurring of lines between the traditional public sector and the organisations emerging as their service-delivery arm creates an interesting and challenging opportunity for IPAA members and friends.

Our Membership and Sector Engagement Committee conducted a range of focus groups with our current membership segments and potential members to explore and better understand the opportunities these changes present. The outcomes of these meetings highlighted the important role IPAA can play in building understanding and collaboration. They also highlighted our role in professional capability development for the evolving range of people who work within or for the public sector.

The development of stronger corporate partnerships was also initiated through the development of Foundation Partners with Cluster Secretaries during this reporting year. This partnership model is currently being rolled out and negotiations will extend into 2014–15. A revised sponsorship model was explored with our current sponsors. Much work has gone into investigating their concerns and developing a strategy that will provide clear value for both parties. This is being discussed and developed in partnership with our existing sponsors and is planned for introduction in 2014–15.

This change in approach has strengthened our ability to build stronger relationships with organisations that share our values and our vision for working in a collaborative manner, to build our collective social capital and share and nurture new knowledge and innovation across our community. This will allow IPAA to build bridges and networks that provide access to a range of experts, speakers, research, knowledge, commentary and information exchange.

Stronger ties have also been established with smaller agencies and leadership groups including Federal and State agencies. Specific Agency Partnership agreements were established to facilitate these relationships and were introduced this year, with more planned for 2014–15.

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 5

Developing initiatives and strategies so that IPAA NSW will be the association that public sector professional want to join

A major review of our website was undertaken during 2013–14 as part of our Digital Strategy. It focused on making the content mobile friendly and developing a content management system that allowed simple ‘snackable-sized’ information to be easily accessed and read on a range of mobile devices. This review also involved developing Ignite, a news and publications site for our members.

Ignite incorporates a range of rich online content including the academic journal, AJPA, the new daily news service - The Mandarin, international content and a growing range of other content providers. Ignite provides a dual ‘find and digest’ navigation process via the Capability Framework and specific themes to make it easy to find and retrieve articles, videos, tools, documents, audio interviews and presentations.

This new website was launched at the 2014 State Conference together with an exciting new membership category, Affiliate Member. Affiliate membership provides simple low-level entry into IPAA to explore and better understand the value of being a Professional Member without the initial cost. Affiliate membership is designed to provide easy access to regional, international and NGO members. The launch of this new membership also involved extending the value of Professional Membership to include stronger discounts to our events, access to our premium content on Ignite and a year’s subscription to The Mandarin, our new online daily news service focused exclusively on public sector issues, news and commentary.

Our workshops, events and conferences are also being revitalised. We are exploring digital engagement and participation by attendees to link these with our Digital Strategy. As an example, our State Conference this year included a section of speed talks designed around four separate topics. These 8–10 minute thought-provoking and stimulating presentations were designed to challenge the audience and are the start of the changing way in which IPAA will develop and present our programs and events.

Ensuring sound corporate governance

IPAA NSW has achieved a very positive above-budget financial performance for 2013–14 within a very difficult environment, in which time and financial pressures within the public service continued to limit the availability of staff to attend functions, programs and courses. The reduction in the numbers for courses which run for more than two days are an obvious sign of the workload and pressures staff and management are under, compounded by the pressure of business as usual within a restructuring environment.

During the review of IPAA NSW this financial year, the low level of Senior Executive engagement with and participation on Council was also noted. IPAA NSW will respond to this challenge in the next financial year by building stronger ties with Senior Executives, as well as leading academics and private sector leaders. A stronger effort will also be made to develop and strengthen our committee structures through improved participation strategies and greater utilisation of the experience and capability of our Fellows and senior members.

IPAA NSW is at a crossroad, and so has developed an exciting and challenging forward plan to respond to the highly disruptive environment it works within. Our working environment is under pressure from the impact of online learning, a reforming and changing public sector and the growing desire for stronger collaboration across multiple sectors, as well as the utilisation of emerging technology to facilitate this.

The staff of IPAA NSW are excited and looking forward to the challenges the next year will bring. Their own abilities and the strength of their complementary skills will prepare them well for this future.

IPAA NSW Staff from left to right: Front Row: Helen McGowan, Kerri Cook, Emily Parkins, Lauren Myers Middle Row: Darren Baker, Siobhan Donaldson, Craig Boaden, Jo Rose Back Row: John Carnegie, Peta Maree Allen, David Gunter (Megan Scardilli absent)

KRA 1OUTCOMES> IPAA NSW is known across the public sector as the Professional Association for Public

Servants

> Public sector professionals attend IPAA NSW Events and Courses on a regular basis

> IPAA NSW is seen as the pathway to career development and promotion

> The IPAA NSW Awards program continues to gather momentum and recognition

> Development of IPAA NSW International is continuing

Raising Our Profile

During 2013-14 we embarked on our Digital journey to increase the relevance and awareness of IPAA NSW as the Professional Association for the sector. We have opened new channels of communication with our members, enhanced our web site and strengthened our relationships with key stakeholders, sought out new relationships and built stronger partnerships. We are focussed on developing a stronger ‘thought leadership’ component to our program and building the relationships necessary to support and input into our agenda development.

We have facilitated Forums, master classes aimed at Executive levels. We have responded to requests for sponsorship and developed partnerships where we thought it appropriate. Our State Conference continues to be a premier event in Sydney and both the State Premier and the Secretary of the Department of Premier and Cabinet agreed to speak at this event. The Commissioner of the Public Service Commission and Secretaries of various NSW Departments have also agreed to speak at a range of events including our Budget Briefing Breakfast and State Conference. Our CEO and YP Breakfast has been extremely successful along with a range of workshops and forums we have held during the year in review.

This year we launched our ‘Stewards on the Couch’ series of personal interviews of high profile public sector leaders. The interviews provide members of the association and interested parties with the opportunity to better understand the person behind role; each has such a fascinating and interesting story to tell. The highly respected journalist and radio host, Monica Attard has brought her talents to these occasions and has been able to encourage, prompt and navigate the interview in a subtle and thought provoking manner that has completely captivated the audience.

Next year will be a critical step in this journey as we launch stage two of our Digital Strategy, build our corporate support and broaden our reach across the emerging public sector and expand our online services into regional areas.

Professional Development Program

Scheduled Workshops

Over 800 people attended our scheduled programs in 2013–14. We conducted 60 programs over 116 days: 57 programs were run at above break-even point; 26 programs attracted over 85% capacity; 4 courses were added to the program due to popular demand; 25 programs were cancelled due to low numbers (15 in the July–December period and 10 in the January–June period).

CEO & YP Breakfast - Office of Finance and Services Table

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 7

Well-attended and popular programs during the year were:

• PCTP Level 1 (4 times)

• PCTP Level 2 (twice)

• PCTP Diploma of Government (Procurement and Contracting) (3 times)

• Policy Development (twice)

• Financial Management for the NSW Public Sector

• Strategic Awareness in the Public Sector

• Economics for Non-Economists

• Cost-Benefit Analysis

• Management: The Power to Influence

• Presentation and Facilitation Skills

• Executive Finance: Mastering Your Financial Environment

• Project Management: The Basics

• Applied Project Management

• Writing in the Public Sector: Briefs and Reports (3 times)

• Policy Development: The Basics

• Writing in the Public Sector: Ministerial Correspondence (twice)

Customised Agency Programs

In 2013–14, 272 workshops were delivered over 289 days through Customised Agency Programs (CAPs): 216 in the Sydney metropolitan area, 54 in regional NSW and 2 in Queensland. This involved delivery to the Commonwealth Government (1 agency), Local Government (1 agency), State Government (52 agencies) and NGOs/Statutory Authorities (8 agencies).

Other highlights of the Customised Agency Program included delivery of a Diploma of Government (Project Management), the Springboard: Women’s Development Program, a Leadership Development Program and a Leadership Fundamentals Program.

Events

IPAA NSW held over 40 events in the last 12 months aimed at providing a range of professional development opportunities for public sector professionals. Highlights were:

• State Conference – Towards 2021: Delivering the Change, 18 July 2013

• Drive Your Career Conference for Women, 4 September 2013

• 12th CEO & Young Professionals Breakfast, Lessons and Insights from the Elite Sporting World, 2 May 2014

• Annual Budget Briefing Breakfast, 19 June 2014.

Pathway to Career Development and Promotion

The 2014–15 Services Guide now includes a succinct summary of each course as well as QR codes for all courses and pages. This means that information about events and professional development programs can be accessed on smart devices at any time, anywhere. This year, the Services Guide was sent to over 1,250 people including members of IPAA, CEOs, and Learning and Development professionals.

Our Professional Development Pathway now includes online courses, which offer participants a flexible, accessible and affordable way to build their capabilities. Through alignment with the NSW Public Sector Capability Framework in 2012, the 2013–14 Professional Development Pathway is supported by the Public Sector Commission. The alignment has resulted in a greater focus on key areas such as Personal Attributes, Relationships, Results, Business Enablers, People Management and Occupation Specific, together with behavioural indicators and skills levels, and is designed to help people make appropriate choices for their Professional Development Pathway.

IPAA NSW Awards Program

The IPAA NSW Awards Program, designed to celebrate success in the public sector, continued to grow in 2014. PwC sponsored the Gala Awards Ceremony, held in May, where the award winners were announced and longstanding members and Fellows of the Institute were presented with their awards and certificates of recognition. Feedback from sponsors shows that they value their involvement in the Awards and the partnership with IPAA NSW.

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

KRA 2OUTCOMES> Public sector professionals look to IPAA NSW for professional development and networking

opportunities

> IPAA NSW connects and engages those already associated with the Institute

> Participants continue to engage with the Institute beyond their initial introduction through a course or event

> Individuals continue to engage with IPAA NSW by participating in more advanced programs

> Individuals and agencies actively look to IPAA NSW for professional development and networking opportunities

> Senior executives engage with IPAA NSW

> Public sector professionals engage with the Institute through key Corporate Events

Professional Development and Networking Opportunities for Public Sector Professionals

IPAA NSW collaborated with the NSW Public Service Commission to ensure that its professional development program reflects the NSW Public Sector Capability Framework and that prospective course participants are aware of this.

IPAA NSW managed four Executive Connections forums for the NSW Public Service Commission, catering for over 100 senior executive public servants.

The Executive Master Class series, designed to engage those at SES level, focuses on aspects of the Schott report such as building capabilities, which were highlighted as needing attention. Senior executives were encouraged to attend the full series. Notable international presenters included former special advisor to US President Barack Obama Edward DeSeve, who spoke on Tackling Budget Crises, and Dr David Halpern of the UK Behavioural Insights Team, who addressed participants on Big Data.

IPAA NSW collaborated with the Department of Premier and Cabinet to host two events on the topic of Behavioural Insights, providing networking and professional development opportunities. Each event had wait lists and attracted over 200 attendees.

At the annual Women’s Executive Luncheon, held on 28 May, over 90 senior executive women celebrated women in leadership and explored what needs to happen to ensure that more women continue to strive for executive careers in the public sector.

Attendance at events continues to be healthy, with some events selling out even into the new financial year.

A new series of events, Stewards of the Public Sector: On the Couch, was launched this year, for which Monica Attard was secured to interview the key stewards of the NSW Public Sector. Graeme Head of the NSW Public Service Commission was the first interviewee, followed by Secretary of the NSW Department of Family and Community Services Michael Coutts-Trotter for the second event. Feedback has been extremely positive. The next speakers will be Dr Michele Bruniges AM and Philip Gaetjens. The format of these events is a 45-minute interview, followed by questions and networking at the conclusion of the event.

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 9

Key Corporate Events

Key Corporate events included:

• Fellows Dinner, 7 November 2013

• Spann Oration, delivered by the Hon Nick Greiner AC, 13 November 2013

• Picnic in the Park, 14 February 2014

• International Women’s Day Celebration, with speakers Professor Christine Bennett and the Hon Robyn Parker MP, 6 March 2014

• Gala Awards Ceremony, 29 May 2014

• Women’s Executive Luncheon, with speakers Deputy Commissioner of the NSW Police Force Catherine Burn APM and Jeannine Biviano, Deputy Secretary, Finance Strategy & Operations for the NSW Department of Trade and Investment, 26 May 2014.

Individuals’ and Agencies’ Engagement

A yearly Marketing Plan was developed and implemented to ensure that IPAA NSW was promoted sector wide. Senior executives have been generous in promoting key corporate events like the State Conferences within their agencies to help drive engagement. The addition of Agency partners has helped with promotion of events.

Senior Executive Engagement

IPAA NSW held a number of events targeted at senior executives, which were well attended.

IPAA managed four Executive Connections forums for the NSW Public Services Commission and two for the NSW Department of Premier and Cabinet, which were each attended by over 100 senior executives.

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

International Women’s Day - Madeleine Culbert Vice President IPAA NSW, Professor Christine Bennett AO, School of Medicine, University of Notre Dame Australia, and Percy Allan AM

Picnic in the Park

Gala Award Dinner - Peter Achterstraat President IPAA NSW, Virginia Briggs from Minter Ellison, and Young Leader Award Winner Alia Karaman, Bankstown City Council

KRA 3OUTCOMES> New members extend their membership beyond the first year

> IPAA NSW is seen as the ‘must join’ Association for senior executives in the NSW public sector

> Current members promote the Institute

> The National voice of IPAA is heard and taken to be authoritative

> Members are engaged through forums

> The quality of service provided to members is outstanding

> Members are proactive with the Institute

> Contributions to the development of the public sector increase

> Partner organisations add value to IPAA membership

> National Fellows are given high profile

> SIGs and Networks have a clear plan for each year

Membership Initiatives

IPAA NSW has built on its member initiatives to continue to support the professional development of members. New Members’ Welcome events were held regularly throughout the year to introduce recently joined members to the broader IPAA family. Events associated with the Special Interest Groups (SIGs) continued to gain a strong audience. Each of the SIGs held events to address specific areas of interest and allow networking with colleagues.

Senior Executive Initiatives

IPAA NSW held a series of Senior Executive Master Classes, aimed at SES level, at which keynote speakers Edward DeSeve, former special advisor to Barack Obama, and Dr David Halpern, Chief Executive, UK Behavioural Insights Team, presented. In partnership with Nous Group, we also held the Helen Nelson Master Class on 6 August, which was attended by senior executives.

The 6th Annual Women’s Executive Luncheon was held on 26 May, with over 90 executive women attending the event. The guest speakers were Deputy Commissioner of the NSW Police Force Catherine Burn APM and Jeannine Biviano, Deputy Secretary, Finance Strategy & Operations for the NSW Department of Trade and Investment.

State Conference

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 11

Contributions to Public Sector Development

The core goal of all IPAA NSW programs is to make a positive contribution to the continuing development of the public sector in NSW. Professional development workshops were held throughout the year on a range of topics relating to the NSW Public Sector Capability Framework. Stimulating events were also held through most of the year and a range of IPAA publications, including the Australian Journal of Public Administration, Public Administration Today and IPAA INK, were regularly distributed to members. Major events were held in conjunction with other agencies, including the NSW Public Service Commission and the NSW Department of Premier and Cabinet. For the second time since gaining office, the Premier of NSW, the Hon Barry O’Farrell MP, delivered a keynote address at the State Conference.

Partner Organisations

In 2013–14, IPAA NSW continued its existing partnerships with key private sector organisations including PwC, Ernst & Young, Minter Ellison, Commonwealth Bank of Australia, Nous Group and DLA Piper. It consolidated relationships with Government partners: the Department of Premier and Cabinet, the Public Service Commission, NSW Treasury, the Department of Finance and Services, the Motor Accidents Authority and NSW Parliament. Each of these partnerships has led to the development of relevant programs.

National Fellows

In 2013, IPAA NSW nominated three members for the award of National Fellow and all nominations were successful. Fellows Peter Duncan AM and Jane Spring were presented with their awards at the IPAA National Conference in Canberra in November. Michael Coutts-Trotter will be presented with his award soon. An additional Fellows’ Dinner was held in November 2013, with a very positive reception from Fellows and guests. Further dinners were held in conjunction with other major events. Fellows are regularly acknowledged at IPAA NSW events and their contributions publicised in Public Administration Today and other publications.

SIGs and Networks

In 2013–14, the Sustainability SIG, which was reconstituted the previous year, struggled, with two promising events having to be postponed until a later date. However, in conjunction with staff, the People Performance and Culture SIG, Shared Services SIG, Social Media SIG and the Young Professionals Network all managed a successful program of member events on a wide variety of topics during the year.

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

Monica Attard interviewing Graeme Head

Gala Award Dinner - Peter Achterstraat President IPAA NSW, Graeme Head and Shannon Cook, Transport NSW

KRA 4OUTCOMES> IPAA NSW continues to provide sound leadership and management of resources

> IPAA NSW improves our internal processes to increase productivity and provide more effective services to members and the sector

> IPAA NSW embeds quality assurance and risk management processes in all decision making

> IPAA NSW investigates new income sources to ensure a secure revenue base

> IPAA NSW broadens the skills and diversity of our staff to match our strategic needs

Sound Leadership and Management of Resources

The 2014 audit by PwC was very extensive and flowed extremely well. The auditors were pleased with the functioning of our systems and reporting standards.

Improvement of Internal Productivity

IPAA NSW continues to use e-commerce facilities to drive business through the website, with all confirmation and debt-recovery emails being automated.

With the continuing integration of the management of the Public Sector Management Program on behalf of the NSW Public Service Commission and the running of the IPAA National Office, IPAA NSW is maximising resource allocations, resulting in high levels of efficiency.

Quality Assurance and Risk Management

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

New Markets

Sponsors secured to date for 2013–14 include PwC, Minter Ellison, the Commonwealth Bank of Australia, Ernst & Young, DLA Piper, ARTD Consultants, CSA, KJA, Nugan Estate and SGE Credit Union. Sponsorship is generally ‘in kind’ and is used to offset expenses. The Song Company has joined IPAA NSW as its Artistic Partner.

Broadened Skills of Staff to Match Our Strategic Needs

IPAA NSW staff members are committed, vibrant and highly professional. Productivity improvements through the use of technology and changes to business processes would not have been possible without the staff’s wholehearted participation in organisational development programs (both formal and on-the-job training). This has enabled the Institute to meet its strategic needs and change its business model, resulting in an improved bottom line.

ENSURING SOUND CORPORATE GOVERNANCE

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 13

HIGHLIGHTS FROM THE YEAR

State Conference Speaker - Ross Gittins, Economist

Gala Award Dinner - Peter Achterstraat with Jane Spring FIPAA

Audience at the 2014 Budget Briefing Breakfast

International Women’s Day performance by The Song Company

On the Couch - Michael Coutts-Trotter

THE OUTLOOKThe digital connected world we live in today brings with it so much hope, concern, excitement and anxiety.

In life there are some things that never change and sometimes the things that change may not be what we want. However, sometimes change is what we need and importantly how we choose to respond will define our future. — John Carnegie

One of the greatest challenges facing IPAA NSW will be around leveraging the key value that members often describe as their reason for joining the Association: networking and connecting with peers and leaders in the public sector. Our connected society has changed both how we communicate and the frequency and times we do this. Our previous clearly separated worlds of work and private life are becoming increasingly intertwined.

The capacity and reach of mobile devices and the changing expectations of availability have shifted what we would previously describe as our social time and our business life. It is a common belief that we will access and also respond to requests for information, exchange ideas and communicate outside of normal office hours and over weekends.

We are increasingly expected to manage our own career and this has also influenced the notion of when do we stop working. It also puts in to question the difference between work and personal development as well as collaboration and building professional relationships. Recent research shows that more and more people are utilising smart phones on the way home from work and tablets at home after dinner, to respond to emails, start conversations with peers, research topics and complete work-related tasks. Added to this is the need to find creative answers to old and new problems. In this highly connected world there is an expectation that by collaborating and sharing our information, ideas and knowledge we can create new knowledge and find creative solutions.

Creativity is just connecting things. When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something. It seemed obvious to them after a while. That’s because they were able to connect experiences they’ve had and synthesize new things. — Steve Jobs

The word ‘innovation’ is one of the most frequently mentioned words in today’s business vocabulary. The frequent use of this word is driven by the pressure to adapt to the changes around us. In the public sector, the challenge is magnified by the need to collaborate, innovate and manage risk simultaneously. The growing mantra of ‘creating the future you want’ and the emerging need to ‘co-create’ this future is a challenge awaiting all of us as we grapple with the growing expectations of our leaders and community.

IPAA NSW will trial and develop a networking and collaboration hub next year to complement our current services and to explore how to support the emerging needs of our members and enable positive connections within our community. Collaboration hubs are built upon trusted parties with no personal interest other than the development of their community. IPAA NSW is well placed to provide that ‘trusted environment’ across all clusters and agencies.

State Conference - The Hon Barry O’Farrell MP, Premier NSW

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 15

IPAA NSW intends to shape and influence how we communicate, share knowledge, collaborate and grow new knowledge across our community. This hub will be used in a variety of ways. It will allow us to move into the exciting developments of online learning, particularly to address the strong need we’ve identified for organisations to get a better return from the investment in sending people to courses and programs. We believe managers are looking to invest in outcomes and behaviour changes, not inputs, and it has not been successful to merely send people to courses and expect they will come back changed. The strategies and platforms we are developing with leaders in this field are focused around early engagement and participation linked to the formal program. This is supported by online, back-on-the-job peer support, organisational involvement, expert guidance and mentoring to ensure capability development occurs and is embedded in the new behaviours.

We will also use the hub to support the exciting changes we are making to the way in which we present, conduct and deliver our events, workshops and conferences. There is a growing expectation that conference and event organisers will provide the opportunity for enhanced participation without the stress of standing up with a microphone to ask questions or make comments. The way in which we engage, participate and share information is changing. We are exploring a range of ideas that we will trial and develop during 2014–15 via the hub. We believe that learning is created in the social interaction by debate, construction of ideas, exchange of feedback and alignment to our experiences. This creates the distillation of new insights, beliefs and understanding and initiates and sparks learning.

International Women’s Day

Young professionals at On the Couch

Picnic in the Park - Clare Vernon, CEO JewishCare, Nazha Saad FIPAA, CEO, St George Housing and Albert Olley Chief Executive, NSW BusinessLink

CEO & YP Breakfast - Andrew Cappie-Wood, Secretary, Department of Justice

Institute of Public Administration Australia NSW Div Inc

Income statement For the year ended 30 June 2014

Note 2014 2013

$ $

Revenue 2 3,493,503 4,076,675

ExpenditureTraining/event costs (1,921,528) (2,261,130)Salaries and related costs (including casual employees) (884,811) (1,108,549)Other/membership costs (51,146) (60,630)Administration costs (342,820) (390,218)Consultancy costs (182,760) (57,579)Divisional levy (36,396) (22,680)Rental equipment (9,737) (38,165)Postage and telephone (8,977) (28,035)Travel costs (13,003) (10,333)Insurance (7,073) (7,117)Prizes and awards (8,538) (14,233)IPAA International expenses – (976)

Total expenditure (3,466,789) (3,999,645)

Surplus for the year 26,714 77,030

Total comprehensive surplus/(deficit) transferred to accumulated funds income for the year

26,714 77,030

The statement of comprehensive income is to be read in conjunction with the notes to the financial statements set out on pages 18 and 19.

Statement of changes in equity For the year ended 30 June 2014

Accumulated Surplus

$Balance at 30 June 2012 730,572Surplus for the year 77,030Balance at 30 June 2013 807,602

Balance at 30 June 2013 807,602Surplus for the year 26,714Balance at 30 June 2014 834,316

The statement of changes in equity is to be read in conjunction with the notes to the financial statements set out on pages 18 and 19.

2014 STATEMENTS

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 17

Balance sheet As at 30 June 2014

Note 2014 2013

Assets $ $

Cash and cash equivalents 5 1,127,720 1,148,496 Term deposit 31,439 – Trade and other receivables 6 363,040 208,507Total current assets 1,522,199 1,357,003 Property, plant & equipment 11,545 22,583 Intangible assets 4,035 11,631Total non-current assets 15,580 34,214

Total assets 1,537,779 1,391,217

Liabilities Trade & other payables 7 388,823 369,039 Deferred income 6 217,893 102,130 Employee benefits 52,106 57,012Total current liabilities 658,822 528,181 Employee benefits 44,641 55,434Total non-current liabilities 44,641 55,434

Total liabilities 703,463 583,615

Net assets 834,316 807,602

Equity Accumulated surplus 834,316 807,602

Total equity 834,316 807,602

The balance sheet is to be read in conjunction with the notes to the financial statements set out on pages 18 and 19.

Statement of cash flow For the year ended 30 June 2014

2014 2013$ $

Opening cash balance 1,148,496 1,135,933

Operating activities Surplus/deficit 26,714 77,030 Items not affecting cash:

Depreciation 18,434 41,290 Movement in accounts payable 19,784 52,074 Movement in deferred income 115,763 (140,284) Movement in accounts receivable (154,533) (3,494) Movement in annual and long

service leave(15,699) (14,053)

Cash provided by operating activities

10,463 12,563

Investing activities Sale of PPE 200 – Investments/term deposits made (31,439) –

Cash provided by investing activities

(31,239) –

Financing activities

Cash provided by financing activities

– –

Net change in cash and cash equivalents

(20,776) 12,563

Cash and cash equivalents at beginning of period

1,148,496 1,135,933

Cash and cash equivalents at end of period

1,127,720 1,148,496

The balance sheet is to be read in conjunction with the notes to the financial statements set out on pages 18 and 19.

FINANCIAL STATEMENTS AND ACCOMPANYING STATEMENTS

1 Significant accounting policies

Institute of Public Administration Australia NSW is a foundation domiciled in Australia. The financial report was authorised for issue by the Councillors on 16 September 2014.

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

(a) Statement of complianceIn the opinion of the Councillors, the entity is not a reporting entity. The financial report of the entity has been drawn up as a special purpose financial report for distribution to the members and for the purpose of fulfilling the requirements of the Associations Incorporations Act 2009 (NSW).The special purpose financial report has been prepared in accordance with the requirements of the Associations Incorporations Act 2009 (NSW) and the recognition and measurement aspects of all applicable Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and other authoritative pronouncements of the AASB that have a material effect. The financial report contains all those disclosures considered necessary by the Councillors to meet the needs of the members.The entity has not applied any Australian Accounting Standards issued but not effective as at 30 June 2014 and there is not expected to be any material impact once the standards are adopted.

(b) Basis of preparationThe financial report is presented in Australian dollars. The financial report is prepared on the historical costs basis. Non-current assets are stated at the lower of carrying amount and fair value less costs to sell, less impairment losses. The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.The accounting policies set out below have been applied consistently to all periods presented in the entity’s financial report.

(c) Revenue recognitionRevenues are recognised at fair value of the consideration received net of the amount of goods and services tax (GST). Membership incomeCommercial income is recognised when it is probable that economic benefits will be received and that specific events are certain to occur.Membership subscription incomeIncome is recognised on the date that membership commences. Grant incomeGovernment and corporate grants are recognised as revenue when specific project goals are met and the grant is earned. Donations in kindThe company receives various pro-bono services and donations in kind. Revenue has not been brought to account in the financial statements for services that management is unable to reasonably estimate the value of. Revenue has been brought to account in the financial statements for contributed assets as management is able to reasonably estimate the fair value of these assets. Income from donations and appeals is recognised on a receipts basis.

(d) Property, plant and equipmentOwned assets Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation and impairment losses. Depreciation is charged to the income statement on a straight-line basis over the estimated useful life of 2 to 5 years.

(e) Intangible assetsIntangible assets that are acquired by the entity are stated at cost less accumulated amortisation and impairment losses. Subsequent expenditureSubsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred. Amortisation Amortisation is charged to expenses within the statement of comprehensive income on a straight-line basis over the estimated useful life of intangible assets. The estimated useful life is:• Computer software 3 years

(f) Goods and services taxIncome, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.Receivables and payables are stated with the amount of GST included.The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet.

(g) Employee entitlementsLong-term service benefitsThe entity’s net obligation in respect of long-term service benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates, and is discounted using the rates attached to the Commonwealth Government bonds at the balance sheet date which have maturity dates approximating to the terms of the company’s obligations.Wages, salaries and annual leaveLiabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date represent present obligations resulting from employees’ services provided to reporting date, are calculated at undiscounted amounts based on remuneration wage and salary rates that the entity expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax.

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

(i) Trade and other payablesTrade and other payables are stated at their amortised cost.

(j) Cash and cash equivalentsCash and cash equivalents comprise cash at bank and call deposits.

NOTES

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 19

(k) ImpairmentThe carrying amounts of the entity’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in expenses within the statement of comprehensive income, unless an asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess recognised through profit or loss.The recoverable amount of assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

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

(m) Finance incomeFinance income is comprised of interest receivable on funds invested. Interest income is recognised in the income statement as it accrues, using the effective interest method.

2 Revenue

2014 $

2013 $

Training/events Income 3,027,312 3,700,161

Member subscriptions 141,465 137,463

Sundry income 27,464 100,653

IPAA National Secretariat fee 126,600 93,700

Consultancy and Delegation income 94,209 10,153

Agency Partnership income 50,000 –

Finance income 26,453 34,545

Total revenue 3,493,503 4,076,675

3 Income tax expenseThe entity is a registered not-for-profit organisation and is exempt from income tax in accordance with section 23(e) of the Income Tax Assessment Act 1997. It is also exempt from fringe benefits, capital gains taxes and state payroll tax. It is a GST registered entity.

4 Auditor’s remunerationThe auditor of the entity received $9,700 remuneration during the period.

5 Cash and cash equivalents2014

$2013

$Bank balances 301,050 168,992

Call deposits 826,670 979,504

1,127,720 1,148,496

6 Trade and other receivables2014

$2013

$Trade receivables 245,341 201,649

Provision for impairment (15,000) (15,000)

Prepayments 132,699 21,858

363,040 208,507

Deferred Income 217,893 102,130

The movement in both the prepayments and deferred income correlates to the upcoming biennial symposium.

7 Trade and other payables2014

$2013

$Trade creditors 124,722 166,332

Other creditors and accruals 264,101 202,707

388,823 369,039

8 Council membersCouncil members during the financial year ended 30 June 2014 include:

Mr Peter Achterstraat Ms Carolyn BurlewMs Kylie Cochrane Ms Madeleine Culbert Mr Tim Farland (to November 2013)

Ms Susan McHattie (from November 2013) Ms Jennifer Mason (co-opted)

Mr Matthew Schroder (to November 2013)

Ms Pheona Twist (to November 2013)

Ms Clare HuxleyMr Robert AlderMs Nivek ThompsonMr John Carnegie (ex-officio)

Mr Albert Olley (from November 2013)

Ms Daina Aspin (from November 2013)

9 Members guarantee The Institute of Public Administration Australia New South Wales Division Inc. was incorporated in New South Wales on 31 March 1988, under the Associations Incorporation Act 1984 (NSW) (the Act). If the Institute is wound up, the articles of association state that each member is required to contribute a maximum of the amount, if any, unpaid by the member in respect of membership of the Institute of Public Administration Australia New South Wales, towards the meeting of any outstanding obligations of the Entity. At 30 June 2014, the number of members was 905 (2013: 902).Surplus propertyThe assets and income of the Entity shall be applied solely in furtherance of its above mentioned objects and no portion shall be distributed directly or indirectly to the members of the Entity except as bona fide compensation for services rendered or expenses incurred on behalf of the Entity.In the event of the winding up or the cancellation of the incorporation of the Entity, the Entity shall pass a special resolution nominating an association as the association in which it is to vest its surplus property pursuant to section 53(2) of the Act. This nominated association must have similar objects and rules prohibiting the distribution of its assets and income to its member.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 21

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Independent auditor’s report to the members of Institute of Public Administration Australia NSW Division Inc.

Report on the financial report We have audited the accompanying financial report, being a special purpose financial report, of Institute of Public Administration Australia NSW Division Inc. (the Institute), which comprises the balance sheet as at 30 June 2014, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the councillors’ declaration.

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

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Institute’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Institute’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the councillors of the Institute, as well as evaluating the overall presentation of the financial report.

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

Auditor’s opinion In our opinion, the financial report gives a true and fair view of the financial position of the Institute as at 30 June 2014 and its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements.

IPAA NSW ANNUAL REPORT 2013-14 • PAGE 23

NSW.IPAA.ORG.AU

Level 6, Bligh House 4-6 Bligh Street, Sydney NSW 2000

GPO Box 904, Sydney NSW 2001

t 02 9228 5225 f 02 9241 1920 e info@nsw.ipaa.org.au