annual report 2014 – 15 - Australian Government Solicitor

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Australian Government Solicitor
annual report 2014 – 15
annual report 2014 – 15
Letter of transmittal
1
AGS consolidation with the
Attorney-General’s Department 2
CEO’s review
3
PART 1 – Delivering our mandate and corporate plan
5
About AGS
6
Support for the Attorney-General
10
Operating as a government business enterprise
18
Outcomes against our corporate plan
22
Our clients 22
Our people
27
Our practice
Our business
25
32
PART 2 – Accountability and management
35
Corporate governance
36
Social responsibility
44
PART 3 – Financial statements
53
PART 4 – Appendixes
85
Forums and publications
86
Compliance index
90
Index
92
AGS Annual report 2014–15
i
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© Commonwealth of Australia, represented by the Australian
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ii
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www.ags.gov.au
28 September 2015
Attorney-General
Parliament House
CANBERRA ACT 2600
Canberra
Sydney
Melbourne
Brisbane
Perth
Adelaide
Hobart
Darwin
Dear Attorney-General
AGS Annual Report 2014–15
I have great pleasure in submitting to you, for presentation to each House of
Parliament, the annual report of the Australian Government Solicitor (AGS) covering
the period 1 July 2014 to 30 June 2015.
The report has been prepared in accordance with section 46 of the Public
Governance, Performance and Accountability Act 2013.
Yours sincerely
Ian Govey AM
The Australian Government Solicitor
1
AGS CONSOLIDATION WITH THE ATTORNEY-GENERAL’S DEPARTMENT, JULY 2015
On 1 July 2015, AGS ceased to be a separate
Commonwealth agency and government
business enterprise, and was consolidated into
the Attorney-General’s Department (AGD).
This resulted from a decision announced
in the Mid-Year Economic Fiscal Outlook
statement in December 2014 as part of the
Government’s Smaller Government Reform
Agenda that was foreshadowed in the report
from the National Commission of Audit in
2014.
Following the announcement, AGS and
AGD established a steering committee (led
by AGS CEO Ian Govey and AGD Deputy
Secretary David Fredericks), a joint project
team (led by AGD’s Carmen Miragaya and
AGS’s Daryl Adam) and several working
groups, to bring about consolidation by 1 July.
Key undertakings to achieve consolidation
included:
— d
etermining AGS’s new governance
arrangements and amending its enabling
legislation, the Judiciary Act 1903
— d
efining the nature and financial basis
of AGS’s operations going forward
— t ransferring AGS staff to AGD (and the
Australian Public Service)
— e
nsuring AGS clients experienced no
disruption or decline in standards of
legal service and client care.
Details of these undertakings are covered
in the body of this report. A summary of
outcomes as at 1 July 2015 follows:
Governance and legislation
AGS is now a group within AGD, headed
by the Australian Government Solicitor,
who reports directly to the Secretary. The
appointment of AGS’s CEO Ian Govey AM
as the Australian Government Solicitor was
announced on 23 June 2015.
AGS retains its name and branding and AGS
lawyers continue to appear in that name as
solicitor on the record.
The consolidation was effected through
legislation – the Judiciary Amendment Bill
2015 – which came into effect on 1 July 2015.
2
Financial basis and commercial operation
AGS continues to be a Commonwealth trading
enterprise operating in the marketplace,
providing the full range of legal services as
a self-funded, competitive, fee-for-service
operation. It has no Budget appropriation.
It continues to operate as a legal services
provider on the Legal Services Multi-Use List
and competes in the market for the great
majority of work.
Pricing arrangements for tied work and
outposted lawyers have changed and will
now be provided on a cost-recovery basis.
Staff arrangements
All AGS staff (employed under the Judiciary
Act) transferred to AGD and, by means of a
determination under section 72 (1) of the
Public Service Act 1999, became employed
by the Commonwealth of Australia in AGD
within the public service. This entailed
assessing the job role classifications of all
staff to APS levels.
The AGS Enterprise Agreement continues to
apply to AGS staff until new arrangements
are in place.
Client matters
The solicitor–client relationship continues
to exist between AGS and its clients. AGD is
exempt from the Freedom of Information Act
1982 for documents relating to AGS’s legal
activities.
A new Confidentiality Protocol ensures
information provided to AGS by clients will
be kept confidential. Persons within AGS
continue to discharge their obligations in
relation to that information under legislation,
including the Judiciary Act, which requires
equitable, contractual and professional duties
of confidence.
Second-stage review
A review of Commonwealth legal services, to
be carried out by AGD’s Secretary, was also
announced in December 2014. The review
will seek to identify potential efficiencies and
deliver the best outcomes for the Government
from the full array of legal services available. — the Royal Commission into Institutional
Responses to Child Sexual Abuse
— the Royal Commission into the Home
Insulation Program
— the sale of Medibank Private
— proposed foreign fighters legislation
— the second Sydney airport
CEO’s review
This is the final annual report from AGS as a
government business enterprise (GBE). As of
1 July 2015, AGS became part of AGD.
As we plan for 2015–16, as a self-funded
commercial operation within AGD, I see
continuing success ahead. We will retain our
focus on providing excellent legal advice and
representation, outstanding client service,
and on being effective and efficient in our
business operations.
The transition to AGD has been smooth
and I look forward to us developing closer
professional relationships with our colleagues.
As a GBE, AGS had one of our best years yet
in 2014–15. Our trading over the 12 months
was excellent. Our clients increased their
use of AGS and we significantly increased
our legal trading profit compared with the
previous year. Our operating margin and
return on capital were also well in excess of
our corporate plan targets.
These results continue a positive trend from
recent years, and mark a good result overall
for AGS as a GBE. Since we became a GBE in
1999, AGS has made total profits (before tax)
of $173 million and made payments to the
Commonwealth of $262 million, covering
dividends, taxation, competitive neutrality
payments and loans.
We continue to be by far the largest single
provider of government legal services, with a
steady market share of around 41%, 3 times
greater than our nearest competitor.
We had a very full year again advising on
major legal matters. Some of them include:
— application of the Public Governance,
Performance and Accountability Act 2013
(PGPA Act)
— immigration matters, including a number
before the High Court or Full Federal Court
— the implications of the High Court’s
decision in Williams No. 2 for government
agencies’ spending
— constitutional support for the proposed
introduction of data retention obligations
on telecommunications service providers
— constitutional recognition of Indigenous
Australians and the proposal for a
referendum.
AGS uses regular client surveys to ensure
we understand client needs and continue
to provide high-quality service. This year’s
survey, conducted in February by an
independent consultant, delivered very
positive results – with a client satisfaction
rating of 96%.
Our outpost practice was again in higher
demand than previous years and provided
valuable contact for our lawyers with client
in-house teams. Our outposts worked on
some of the Government’s most challenging
matters, including major commercial and
litigation matters and legislative proposals.
Our training courses, legal forums,
Government Law Group seminars and
publications continue to be highly valued.
Our programs, which we often offer as ‘valueadd’ services to clients, help maintain high
standards of practice in government law
generally and provide valuable contact and
relationship development between AGS and
client teams.
I want to take this opportunity to thank
everyone involved in the consolidation
process. It is a challenging job to bring
3
2 organisations with different governance
arrangements together and I appreciate the
efforts of everyone who worked so hard to
make it happen. In particular, I thank the
Secretary of AGD, Chris Moraitis PSM, Deputy
Secretary David Fredericks, the Joint Project
Team and the various working groups.
I wish to thank our clients for their
continuing support for AGS throughout
the year, particularly in the lead up to the
consolidation, and our shareholder Ministers
and AGS Advisory Board for their guidance.
I am very grateful to the AGS Board and
the executive team for their unstinting
support and guidance, and all AGS staff for
their patience and ongoing commitment to
delivering excellent work during a time of
change.
While returning to AGD is a big change for
AGS, it is also a change for the Department.
From 1 July, AGD includes a highlycompetitive, commercial business operation,
with staff comprising about a quarter of the
newly-consolidated Department.
I believe this is a great opportunity for us all to
build on the strengths of both organisations,
to combine our talents and experiences and,
together, deliver the best possible services to
government.
Ian Govey AM
4
PART 1
delivering our
mandate and
corporate plan
5
About AGS
AGS is the nation’s foremost provider
of legal services to government.
For the reporting period, AGS was a GBE
with 2 shareholder Ministers – the AttorneyGeneral and the Minister for Finance.
(On 1 July 2015, AGS ceased to be a separate
agency and GBE and was consolidated with
AGD – see p 2. Post the reporting period, AGS
continues to operate as a Commonwealth
trading enterprise from within AGD.)
AGS operates on a commercial basis within
a competitive market. We receive no Budget
funding and consistently return revenues to
government. Since 1999, when AGS became
a GBE, we have made profits (before tax)
of $176 million, and made payments to the
Commonwealth of $262 million, covering
dividends, taxation, competitive neutrality
and loans.
We assist the Attorney-General in the role of
First Law Officer and we advise the Executive
Government and all Commonwealth agencies.
We comment on submissions to Cabinet, and
work closely with the Solicitor-General and
AGD’s Office of Constitutional Law on every
significant constitutional case in the High
Court of Australia.
As a practice, AGS is structured into 3 groups
– the Office of General Counsel (OGC), AGS
Dispute Resolution and AGS Commercial –
which work together on complex matters that
require expertise across several areas of law.
6
Our lawyers advise on the full spectrum
of government activity, including lawmaking, implementation and interpretation,
commercial negotiations, constitutional
matters, risk management, dispute
management, the establishment and
administration of Commonwealth agencies
and machinery-of-government changes.
We undertake the full range of corporate
and commercial legal work, from routine
transactional matters to contracts for
multi-million-dollar procurements.
We act in all types of disputes, from small
claims to the largest and most sensitive
litigation matters. We practise in all
Australian courts and tribunals, including
the High Court, Federal Court, Federal Circuit
Court, Administrative Appeals Tribunal (AAT)
and the Supreme Courts of all Australian
States and Territories.
OUR MANDATE
For the reporting period, AGS’s mandate from
government emphasised 2 objectives.
We were to support the Attorney-General
in the role of First Law Officer of the
Commonwealth by:
— providing quality legal services to the
Australian Government and its agencies
— ensuring that we maintain:
– the ability, through our focus on
government, to meet the general
legal services needs of agencies at
competitive prices
– a ‘whole-of-government’ approach
– the corporate memory of Commonwealth legal practice and
advice given by AGS on the Constitution
and the law applicable to the Australian
Government and its agencies
–the ability to meet the unique legal
services needs of the Australian
Government, including in the
areas of work reserved for
government providers.
We were to operate efficiently as a
government business enterprise and
add shareholder value by:
— operating on a commercial basis
— achieving a commercial rate of return
on equity investment
OUR ETHICS AND VALUES
Our ethics govern our attitudes and actions.
They reflect our distinctive character as a
government business providing legal services
to predominantly public sector clients.
Our ethics are integral to the way AGS
employees work together. Our shared
commitment to AGS operating as an ethical
business strengthens us and what we offer to
our clients.
Our core values are:
— integrity, which requires us to be honest
and impartial in our dealings with others
— professionalism, which demands
excellence in working with our clients
and interacting with the legal system
— collegiality, which necessitates our
working collaboratively as a national team
sharing our knowledge
— commitment to the public good, which
inspires us in what we do.
By acting in accordance with these values,
we earn the respect of, and show respect for,
our clients, our colleagues, our shareholders,
the legal system and the public at large.
Our ethics and values are put into practice
through the AGS Code of Conduct, which sets
out the principles and rules of conduct that
guide our people in the high professional and
ethical standards required of them.
— paying agreed dividends to
the Commonwealth.
OUR VISION
Our vision for the reporting period was:
To be a world-class adviser helping our
clients to advance the national interest.
7
PERFORMANCE SUMMARY 2014–15
Performance against government business enterprise KPIs
KPIs and measures
1. Financial performance
2014–15
Corporate plan
2014–15
Actual
Revenue from legal service trading
($m)
116.8
120.2
Total shareholder return
(%)
10.0%
1.4%*
Dividend yield as % of average
commercial value
(%)
11.7%
32.5%
EBIT
($m)
4.0
8.6
EBITDA
($m)
7.9
12.6
Return on equity (RoE)
(%)
10.1%
0.7%*
Net profit after tax (NPAT)
($m)
3.6
0.2*
Underlying net profit after tax
($m)
3.6
0.2*
2. Business efficiency
Operating margin
(%)
6.8%
10.5%
Return on capital employed
(%)
8.3%
23.9%
Debtors age
(days)
75
85
Interest cover (times cover)
–
–
Current ratio (times cover)
1.5
1.4
Liquidity ratio (times cover)
0.7
0.7
73%
71.9%
75–80%
96%
Staff turnover rates
11%
11%
Staff satisfaction
70–75%
not measured
3. Leverage solvency
Wages expense ratio
(%)
4. Customers and stakeholders
Customer satisfaction
5. Staff
* These figures have been affected by the consolidation of AGS into AGD.
This includes a $6.6 million write-off of the deferred tax asset previously held on the balance sheet.
8
AGS at work
Andras Markus
Joe Edwards
Andrew Buckland
Simon Thornton
Australian Communications and Media Authority
v Today FM
On 4 March 2015 the High Court of Australia handed down its judgment in favour of the Australian
Communications and Media Authority (ACMA) in the matter of Australian Communications and Media
Authority v Today FM (Sydney) Pty Ltd.
The Court’s unanimous decision overturned a previous ruling by the Full Court of the Federal Court of
Australia in favour of the radio station, and confirmed the ACMA’s power to make a finding that Today
FM breached a condition of its licence (which required that it not use the broadcasting service in the
commission of an offence) by recording and then broadcasting, without consent, a prank telephone call
to King Edward VII’s Hospital in London in December 2012.
The High Court’s judgment noted that:
‘It is the Authority’s function to monitor and regulate broadcasting services throughout Australia.
There is no incongruity in empowering the Authority to take administrative enforcement action against
a licensee who uses the broadcasting service in the commission of an offence, whether the offence is
against Commonwealth, State or Territory law.’
The High Court held that the ACMA does have power to make an administrative determination that
a licensee has committed a criminal offence as a preliminary to taking enforcement action under the
Broadcasting Services Act 1992, despite there being no finding by a court exercising criminal jurisdiction
that the offence has been proven. The Court so held because, in making such a determination, the
Authority is not making a determination of a binding and conclusive character nor adjudging and
punishing criminal guilt.
Significance of the decision
As Gageler J pointed out in his concurring reasons, it will always be a question of construing the relevant
statute to determine:
• whether a regulator is authorised to make a finding that a person has committed a criminal offence
• if so, whether that particular authorisation is consistent with the separation of executive and judicial
power established by Ch III of the Constitution.
However, the High Court’s decision makes clear that there is no necessary barrier to a regulator being
authorised to act in this way. As such, the decision is of considerable significance to all of those regulators
– Commonwealth, State and Territory – that oversee legislative regimes that require them, as part of their
regulatory functions, to consider whether breaches of the criminal law may have occurred.
The AGS team that worked on the High Court appeal included Special Counsel Dispute Resolution
Andras Markus and Senior Lawyer Joe Edwards for the ACMA, and Senior Executive Lawyer
Andrew Buckland and Senior Lawyer Simon Thornton for the Attorney-General (intervening).
9
Support for the Attorney-General
Supporting the AttorneyGeneral as First Law Officer of the
Commonwealth is fundamental to
AGS’s operations and to our value as
the Government’s own legal adviser.
We assist the Attorney-General as First Law
Officer by ensuring the Government has
high-quality legal and related services that
advance the national interest. We also play an
essential role in helping government agencies
to comply with the Legal Services Directions
(LSDs), in particular, the obligation to act as a
model litigant in the conduct of litigation.
TIED WORK
AGS undertakes tied (non-contestable) work,
which the Government has determined
should be performed by AGS and other tied
providers pursuant to the Attorney-General’s
LSDs. Tied work covers legal work associated
with the Constitution, Cabinet matters,
national security and public international law.
Constitutional matters
AGS advises the Government on
constitutional issues and conducts its
constitutional litigation. Constitutional
law involves essential aspects of Australia’s
system of government which can have
enduring and whole-of-government
implications extending beyond the interests
of any particular department or portfolio.
These considerations require a high and
specialised level of legal expertise and central
coordination.
We maintain a uniquely qualified team of
lawyers with extensive experience in advising
on constitutional issues and in the conduct of
constitutional litigation.
10
Cabinet matters
Cabinet work includes legal advice which
is to be considered by Cabinet or relied
on in preparing a Cabinet submission
or memorandum, and legal advice on
a legislative proposal to be considered
for adoption by government or on draft
legislation for introduction into Parliament.
We also review Cabinet submissions to
identify potential constitutional and other
legal issues arising from proposals.
National security
AGS works closely with AGD and security and
law enforcement agencies to deliver outcomes
in national security. Our centrally coordinated
national security practice ensures consistency
and quality in our capability across all AGS
offices. National security was a high priority
for the Government during 2014–15. We
acted in major matters involving protection
of national security information, offences
and criminal proceedings related to national
security and review of administrative
decisions relating to security assessments.
International law
AGS advises on international law issues,
working closely with AGD’s Office of
International Law (OIL). During the year, in
consultation with OIL, we advised on matters
that required consideration of international
treaties, arrangements and declarations. A
significant portion of these advices assessed
the possibility of relying on the external
affairs power in the context of constitutional
risk assessments of new policy proposals.
COMMISSIONS, INQUESTS, TRIBUNALS
AGS advised and acted for the Commonwealth
and its agencies in a number of matters
involving the work of bodies of enquiry and
tribunals. Our work included:
— performing the role of solicitor assisting
the Royal Commission into Institutional
— representing the Commonwealth at the
Royal Commission into the Home
Insulation Program in Parliament, which
released its report in August 2014
— representing the Commonwealth in
hearings in Darwin for the Royal
Commission into Institutional Responses
to Child Sexual Abuse related to the Retta
Dixon children’s home
— acting for the Department of Immigration
and Border Protection in a Coronial
Inquest into the death of Hamid Khazaei,
an unauthorised maritime arrival who
died in Brisbane following a medical
evacuation from Manus Regional
Processing Centre, Papua New Guinea
— representing the Commonwealth at the
Coronial Inquest into the deaths in 2012
of 3 Australian soldiers in Afghanistan
— representing a range of Commonwealth
agencies, including the Australian Security
Intelligence Organisation, the Australian
Federal Police (AFP), AGD and the
Department of Defence, regarding the
inquest into the siege at Lindt Café, Sydney
— successfully defending an adverse security
assessment made about an Australian
citizen in MYVC v Director General of
Security and Minister of Foreign Affairs in
the AAT and successfully defended an
appeal from that decision in the Federal
Court
— acting for the Medical Board of Australia
in relation to the registration of Dr Philip
Nitschke
— assisting the Commonwealth in the World
Trade Organization challenge to the plain
packaging legislation, which had the first
substantive meeting with the Panel in
Geneva on 1 June 2015. This included a
session in which third parties made oral
statements.
— representing the Commonwealth at a
hearing in Singapore in the investor State
arbitration initiated by Philip Morris Asia
Limited against the Commonwealth under
the bilateral investment treaty (BIT)
between Australia and Hong Kong. Philip
Morris Asia, which is incorporated in Hong
Kong and, since 2011, has been the parent
of the Australian Philip Morris companies,
is challenging Australia’s Tobacco Plain
Packaging Act under the BIT. The hearing
in Singapore concerned Australia’s
challenge to the arbitral tribunal’s
jurisdiction.
IN COURTS
AGS represented the Government in a
substantial amount of litigation work this
year. This included both constitutional and
general (non-constitutional) litigation.
The Government can become involved in
constitutional litigation in 2 ways. The first
is when the Government is a party in its
own right, where proceedings have been
commenced by or against it. Second, the
Commonwealth Attorney-General has a right
to intervene on behalf of the Government
in cases raising constitutional issues. The
Judiciary Act 1903 requires parties in such
cases to give Attorneys-General notice of the
constitutional issues (under s 78B) to allow a
decision to be made on intervention by each
Attorney-General (under s 78A).
AGS’s role includes considering notices given
under the Judiciary Act and, in consultation
with the Commonwealth Solicitor-General
and interested agencies, advising AGD
on whether the Attorney-General should
intervene.
This year AGS reviewed 215 notices given
under s 78B of cases raising constitutional
law issues. The Attorney-General intervened
under s 78A in 7 cases, all of which were in the
High Court.
AGS also advises the Government on all
submissions on constitutional law issues that
are put to courts on behalf of Commonwealth
agencies. This is to ensure that submissions
are accurate and apply Commonwealth
constitutional policy consistently.
11
Constitutional cases often require lawyers
from both OGC and AGS Dispute Resolution to
work in concert.
Significant constitutional litigation matters
this year follow:
— A
GS acted for the Director-General of
Security and the Minister for Immigration
and Border Protection in a challenge to an
adverse security assessment made by the
Director-General of Security relating to
people-smuggling activities. The security
assessment was upheld and the
proceedings dismissed.
— L ee & Gropler v Commonwealth – the Full
Federal Court dismissed an appeal from
the summary dismissal of a claim that
provisions of the Water Act 2007 were
invalid as contrary to various
constitutional provisions incl ss 51(xxxi),
92, 99, 100. AGS acted for the
Commonwealth.
— A
lbrecht v Commissioner of Taxation – the
Full Federal Court allowed an appeal in
part. AGS acted for the Commissioner of
Taxation.
— A
CMA v Today FM – the High Court
overturned a previous ruling by the Full
Court of the Federal Court of Australia in
favour of the radio station, and confirmed
ACMA’s power to make a finding that
Today FM breached a condition of its
licence by recording and then
broadcasting, without consent, a prank
telephone call to King Edward VII’s
Hospital in London in December 2012. AGS
acted for ACMA and the Commonwealth
Attorney-General, intervening.
— H
oxton Park v Liverpool City Council – the
Supreme Court dismissed the plaintiff’s
claim and upheld the validity of
Commonwealth funding of the Malek
Fahd Islamic School in Sydney. AGS acted
for the fifth defendant, the
Commonwealth.
— r epresented the Minister for Immigration
and Border Protection and the
Commonwealth before the High Court in
CPCF v Minister for Immigration and Border
Protection [2015] HCA 1, successfully
defending proceedings brought against
12
the Minister and the Commonwealth in
relation to their attempt to return 157
potential illegal immigrants from a
suspected illegal entry vessel to India.
— C
EPU v Queensland Rail – the High Court
unanimously held that Queensland Rail
was a trading corporation within s 51(xx)
of the Constitution and subject to the Fair
Work Act 2009. AGS acted for the
Commonwealth Attorney-General,
intervening.
— Q
ueensland Nickel v Commonwealth – the
High Court unanimously held that the
Clean Energy Act 2011 and the Clean
Energy Regulations 2011 validly applied to
the plaintiff’s production of nickel and did
not give rise to preference contrary to s 99
of the Constitution. AGS acted for the
Commonwealth as defendant.
— D
uncan v NSW; NuCoal v NSW; Cascade Coal
v NSW – the High Court unanimously
rejected a challenge to the validity of NSW
legislation which cancelled certain mining
exploration licences following a series of
reports by the NSW Independent
Commission Against Corruption (ICAC)
into the granting of the licences. The Court
held that the legislation did not involve an
exercise of judicial power. AGS acted for
the Commonwealth Attorney-General,
intervening.
— M
cCloy v NSW – High Court, heard on
10–11 June 2015. Concerns the validity of
NSW laws providing for a cap on political
donations and prohibiting donations by
property developers (relates to the implied
freedom of political communication). AGS
acts for the Commonwealth AttorneyGeneral, intervening.
In other non-constitutional litigation, AGS:
— r epresented the Minister for Immigration
and Border Protection in High Court
proceedings Plaintiff S4/2014 v Minister
for Immigration and Border Protection
concerning the validity of visas granted
by the Minister exercising a personal
non-compellable power
— a
cted for the Minister for Immigration and
Border Protection in High Court
proceedings Plaintiff S297/2013 v Minister
AGS at work
John Scala
Garth Cooke
Paul Lang
Clare Derix
Kate Brophy
Stuart Hilton
Brett Gulley
Medibank Private Initial Public Offer
The Medibank Private Initial Public Offer (IPO) was the second largest in Australian financial history and
the third largest in the world in 2014, raising approximately $5.8 billion.
Scoping study and sale process
AGS acted as the legal process and probity adviser for a Scoping Study examining possible options for
the privatisation of Medibank Private, and following the Government’s decision to then proceed with
an Initial Public Offer (IPO) for Medibank Private, we were re-engaged by the Department of Finance to
undertake the same role on the sale process.
Over a 12-month period the AGS team provided legal process and probity advice for the conduct of the
IPO process which culminated in the successful listing of Medibank Private on the ASX in December 2014.
In addition to putting in place a comprehensive and overarching probity framework for the IPO and
conducting numerous probity briefings, AGS lawyers advised on Finance adviser procurements; helped
design and implement restrictions on participation in the IPO by Commonwealth officers, ministers
and their staff, advisers and Medibank personnel; reviewed proposed selling syndicate arrangements
including rules of engagement for the retail selling syndicate; advised on conflict, confidentiality and
compliance issues, reviewed and advised on proposed ‘Chinese wall’ arrangements in use by selling
syndicate members; and advised on the conduct of the institutional book-build and allocation process
and final pricing and share allocations. Our lawyers also took part in all Sale Steering Committee
meetings and Chaired the Process Review Committee for the IPO.
Our legal team on work relating to the privatisation of Medibank was led by Chief Counsel Commercial
John Scala and Garth Cooke as deputy team leader. Other key members of the team were Deputy General
Counsel Commercial Paul Lang, Senior Executive Lawyer Clare Derix, Senior Lawyers Kate Brophy and
Stuart Hilton, Lawyer Brett Gulley, Senior Legal Assistant Tanya Ferrari and Legal Assistant Michelle Eames.
‘Equity market deal of the year’
AGS won the ‘Equity market deal of the year’ category in the Australasian Law Awards 2015, presented
on Thursday 21 May. The award, which covers a number of firms including AGS, is for their work on the
Medibank Private IPO. AGS acted as the Commonwealth’s probity advisers on the transaction.
In commenting on the nomination, John Scala said:
‘This recognition from our peers is appreciated by the whole AGS team and reflects the hard work and
dedication of the whole team.’
Garth Cooke accepted the award on behalf of AGS and said:
‘For AGS to be recognised for our role on the equity deal of the year is immensely satisfying for all of us
who worked so hard on the project through all of 2014. It also shines a light on the significance of the
work done by AGS Commercial and the skills and dedication of our lawyers and support staff.’
13
for Immigration and Border Protection
concerning the validity of a decision made
personally by the Minister to refuse to
grant the plaintiff a permanent protection
visa relying on the national interest
criterion
— s uccessfully defended the Australian
Competition and Consumer Commission
(ACCC) in a Federal Court challenge
brought by Moses and Paul Obeid to the
validity of compulsory notices issued by
the ACCC. The notices were issued as part
of an investigation into potential
contraventions of the Competition and
Consumer Act, following the NSW ICAC’s
investigation into allegations of corrupt
activities relating to the grant of certain
coal exploration licences.
— acted for Comcover in a claim by
Julian Moti QC for compensation relating
to his unlawful deportation from the
Solomon Islands
— represented the Minister for Immigration
and Border Protection in a cohort of
matters, including Full Federal Court
appeals, arising from the disclosure of
personal information of people in
immigration detention on a particular
date on the Department of Immigration
and Border Protection’s website
— represented the Minister for the
Environment at a Full Federal Court appeal
by the Tarkine National Coalition of a
decision by the Tasmanian Government’s
assessment of a project to develop a direct
shipping of ore hematite mined in
Tasmania
— acted for the Minister for the Environment
in the Alliance to Save Hinchinbrook v
Minister for the Environment seeking
judicial review of decisions relating to
proposed dredging and dredge spoil reuse
at the Port of Abbot Point in North
Queensland, which was resolved by
consent
— represented the Minister for the
Environment in Mackay Conservation
Group v Minister for the Environment,
seeking judicial review of a decision to
approve the construction by Adani Mining
14
Ltd of a coal mine in the Bowen Basin,
North Queensland, also resolved by
consent
— represented the CEO of the Australian
Sports Anti-Doping Agency (ASADA)
before the Federal Court (and on appeal to
the full Federal Court) in a challenge to the
lawfulness of ASADA’s investigation into
the Essendon Football Club. Both the trial
judge and the Full Court dismissed the
claims brought by Essendon and its coach.
The Full Court held that ASADA’s
investigation, in cooperation with the AFL,
was authorised by the ASADA Act, the
ASADA Regulations and the NAD Scheme.
— acted for the Commonwealth intervening
in civil penalty proceedings to put a
whole-of-government position to the Full
Federal Court in FWBII v CFMEU. The Full
Court found against the Commonwealth’s
position that the High Court’s decision in
Barbaro v the Queen did not preclude
parties from making submissions to the
Court as to appropriate penalty amounts,
including joint submissions, in civil
penalty matters. Special leave has been
granted.
— succeeded in setting aside broad discovery
orders in CSP v Commonwealth, a claim for
damages, and saved the Commonwealth
from many years’ work that would have
otherwise been required to locate and
discover documents
— succeeded in obtaining public interest
immunity and non-publication orders
for the Commissioner of the AFP in
proceedings relating to the retrial of David
Eastman for the murder of Assistant
Commissioner Winchester
— acted for the Attorney-General in an
application seeking orders to protect
national security information in a
criminal proceeding in the ACT Supreme
Court against a former Commonwealth
official who pleaded guilty to fraud
offences
— acted for the Australian Crime
Commission (ACC) in a hearing for
contempt where the respondent sought to
rely on post-traumatic stress disorder to
avoid liability for giving false or
misleading evidence at an examination
before the ACC.
LEGISLATION, POLICY AND PROGRAM
DELIVERY
AGS advised the Government on a range of
policy, program and legislative development
matters. They included:
— the level of constitutional risk attached to
Commonwealth agencies’ spending
programs and new policy proposals in
light of the High Court’s decision in
Williams No. 2
— the proposed foreign fighters legislation
— constitutional recognition of Indigenous
Australians and the Government’s
proposal to hold a referendum on that
issue
— application of the PGPA Act
— the abolition of Norfolk Island self-
government
— constitutional support for the proposed
introduction of data retention obligations
on telecommunications service providers
and the privacy impacts of such
obligations
— national energy market reform agenda
— Bureau of Meteorology procurements for
the ‘super computer’ and a new data
centre
— ICT procurements for CrimTrac and the
Australian Electoral Commission
— the wind up of the Albury–Wodonga
Corporation
— establishment of the Global Infrastructure
Hub – a G20 initiative
— the Prohibition on Incitement of Hatred
Bill 2015
— the international exchange of information
relating to the tax affairs of multinational
entities
— amendments to the Australian Crime
Commission Act 2002.
LEGAL SERVICES DIRECTIONS
Our success in assisting our clients to comply
with the LSDs is measured by the number
of breach findings in matters where we act.
During the year, there was no finding of an
LSD breach involving AGS.
— the constitutional validity of proposed
amendments to allow the use in proceedsof-crime proceedings of material obtained
in ACC examinations
— the sale of Medibank Private
— the new western Sydney airport
— the Department of Foreign Affairs and
Trade’s new travel document issuance
system and International Communications
Network
— G20 preparations
— major Defence/Defence Materiel
Organisation projects, including Land400,
Land53, Land2110, SEA1000, the sale of
Australian-developed counter-IED units to
Afghanistan and the development of a
military sales process to support sales of
Australian-developed defence items to
the US
— concessional loans to farming businesses
— Reserve Bank construction projects
15
AGS at work
Tom Howe PSM QC
Craig Rawson
Melissa Gangemi Christopher McDermott
Kim Bennett
Dejan Lukic
Justin Davidson
Cherie Canning
Laura Deschamps-Ferrari
ASADA – matters involving Essendon Football Club
During 2014–15, AGS supported the Australian Sports Anti-Doping Authority (ASADA) in cases
brought against them by Australian Football League (AFL) club Essendon and coach James
Hird. An extraordinary amount of media coverage was devoted to these matters, including the
televised broadcast of parts of proceedings.
In August 2014, the highly publicised case brought by Essendon and Mr James Hird against
ASADA was heard by Justice John Middleton in the Federal Court. Supported by a large AGS
team led by Senior Executive Lawyer Craig Rawson, AGS’s Chief Counsel Dispute Resolution
Tom Howe PSM QC acted as lead counsel for ASADA. During preparation for the trial AGS
managed an expedited discovery process which saw AGS process approximately 9,000
documents in 33 days.
On Friday 19 September 2014, Justice Middleton delivered his finding in favour of our client – that
ASADA’s investigation into Essendon Football Club’s 2012 supplements program was lawful.
Essendon Football Club and Mr Hird were ordered to pay ASADA’s costs.
The appeal
Mr Hird subsequently appealed to the Full Federal Court. Essendon chose not to appeal. AGS also
acted on behalf of ASADA in this matter.
Appeal proceedings were expedited to minimise uncertainty around ASADA’s joint investigation
with the AFL, to curtail the potential for unfair damage to Mr Hird’s reputation, and to take into
account the welfare of Essendon players facing allegations of doping.
The primary basis of the appeal was that Justice Middleton had erred in finding that the CEO of
ASADA had acted lawfully in conducting a joint investigation with the AFL. Mr Hird contended
that ASADA had unlawfully acquired information in reliance on the AFL’s contractual powers with
the players. Mr Hird sought (amongst other relief) a permanent injunction restraining the CEO
of ASADA from using any information obtained in its investigation through cooperation with the
AFL, and an order staying the operation of show-cause notices issued to the players of possible
non-presence anti-doping rule violations.
16
On 30 January 2015, the Full Court (Kenny, Besanko and White JJ) handed down judgment,
dismissing the appeal. Mr Hird was ordered to pay ASADA’s costs.
AGS also acted on behalf of ASADA’s CEO in proceedings before the AFL Tribunal, and continues to
act in subsequent proceedings before the AFL Appeals Board.
AGS team members
AGS lawyers involved in the various proceedings (in addition to Tom Howe PSM QC and
Craig Rawson) included Special Counsel Dispute Resolution Kim Bennett, Senior Executive
Lawyer Justin Davidson, and Senior Lawyers Cherie Canning, Melissa Gangemi,
Christopher McDermott, Dejan Lukic and Laura Deschamps-Ferrari. Outstanding support was
provided to the lawyers by Senior Legal Assistant Catherine Mayne, Legal Assistant Joey Nazzari
and Copy Centre Clerk Chris Kallis.
17
Operating as a
government business enterprise
AGS was a GBE until 1 July 2015,
operating as a fully competitive and
commercial legal services provider,
tasked to achieve a commercial rate
of return and pay agreed dividends
to shareholder Ministers on behalf of
the Commonwealth. In the 16 years
AGS was a GBE, we made profits
(before tax) of $173 million, and made
payments to the Commonwealth
of $262 million, covering dividends,
taxation, competitive neutrality and
loans.
KEY RESULTS
In 2014–15 AGS achieved:
— trading revenue of $120.2 million,
$3.4 million above the corporate plan
target
— profit including interest of $10 million
– almost double the corporate plan target
— savings in corporate areas, coming in
under budget by $1.7 million
— good or better performance trends against
all corporate plan performance measures.
MARKET TRENDS
For the past 16 years AGS has functioned
successfully as a self-funded, commercial
operation within a highly-contestable market.
Our competitors include top-tier private law
firms and the private bar. Despite increased
competition, our share of the market for
external legal services has remained steady
for a number of years – but recently increased
to more than 41%.
18
In 2014–15, we continued to hold a strong
position in the market. Our client survey
showed 96% of clients were satisfied
with our performance, and revenues and
trading profits exceeded our annual target.
Competition was intense and we anticipate
this will continue after we consolidate with
AGD and during the course of the Secretary’s
review of government legal services.
The private sector responds aggressively to
changes in the government legal services
market, and we expect considerable
challenges in maintaining our current work
and revenue levels. Threats to our revenues
are threats to our ability to provide the best
support to our clients and the Government
generally. It is important that we remain
competitive, client-focused, efficient and
effective in winning business.
Our key strategies are to:
— respond strongly to bids and other
business-winning opportunities with
effective pricing strategies
— actively market AGS legal services, along
with other aspects of our business,
including professional development
courses for in-house legal teams and
publications
— continue to emphasise within AGS the
need to deliver outstanding client service
and build client loyalty
— continue to convey the ‘business-as-usual’
message in meetings and other
communications with clients.
MEASURING OUR PERFORMANCE
FINANCIAL OUTCOMES
AGS had 5 performance measures (financial
and non-financial) for the reporting period.
We achieved good or better performance
results in all measures.
The financial result for 2014–15 was very
positive, given difficult trading conditions and
uncertainties about AGS’s future in the first
half of the year.
Scorecard of AGS performance
— Our trading revenue $120.2 million was
$3.4 million above the plan target.
Performance measure
2014–15
1. Financial performance
l
2. Business efficiency
l
3. Leverage / solvency
l
4. Customers and stakeholders
l
5. Staff
l
Code
l good or better performance or trends
l satisfactory performance or trends (including
revenue within 3% of corporate plan target)
l unsatisfactory performance or trends
— Our profit including interest was
$10 million – almost double the corporate
plan target.
— We exceeded our corporate plan trading
profit target by $4.6 million.
— We made savings in corporate areas,
coming in under budget by $1.7 million.
— We achieved a return on equity of
0.7% for the fiscal year following the
$6.6 million write-off of the deferred tax
asset (21.6% return before write-off). This
is well ahead of the corporate plan target
of 12.3%.
— We paid/declared dividends during the
year of $10.2 million (including a
$9.5 million special dividend).
Scorecard of AGS financial performance
Performance measure
2014–15
Revenue from legal service trading
$120.2m
Total shareholder return
1.4%
Dividends paid/declared
$10.2m
Legal service earnings before
interest and tax (EBIT)
$8.6m
Profit from legal service trading
before interest, tax, depreciation and
amortisation (EBITDA)
$12.6m
Debtor and WIP days
85
19
AGS at work
Tom Howe PSM QC
Tim Begbie
Andrew Dillon
Andrew Berger
Damien O’Donovan
Peter Melican
Peter Macliver
Andras Markus
Justin Davidson
In-house counsel work
AGS’s in-house counsel practice provides a highly-valued service representing clients before
commissions, enquiries, courts and tribunals.
AGS Dispute Resolution’s advocacy practice is led by Chief Counsel Dispute Resolution Tom Howe
PSM QC and comprises specialist counsel and lawyers appearing as solicitor advocates.
Clients choose in-house advocates because:
• they are specialists in areas of law and practice relevant to Commonwealth clients
• they are familiar with the needs of Commonwealth clients, including special requirements
such as model litigant obligations
• some are both advocate and solicitor, bringing their close involvement in matter preparation
to the hearing and their familiarity with related proceedings for that client
• AGS advocates and solicitors work together closely to obtain the best outcome for clients.
Examples of work by AGS in-house counsel in 2014–15 include:
National security
Senior Executive Lawyers Tim Begbie and Andrew Berger, and Senior Lawyer Peter Melican
appeared for the Australian Security Intelligence Organisation and the Department of
Foreign Affairs and Trade before the Administrative Appeals Tribunal (AAT) and Federal Court
in challenges to adverse security assessments and decisions to refuse or cancel passports
on security grounds. These cases involved security assessments relating to acts of politically
motivated violence and people smuggling. Andrew Berger also appeared for the Australian
Federal Police (AFP) on several occasions to obtain control orders against a number of individuals,
to substantially assist in preventing terrorism acts in Australia.
Administrative law
AGS advocates appeared in matters nationally before the AAT and Federal Court to defend
challenges to administrative decisions in a variety of contexts (FOI and Archives Act matters
before the AAT and in appeals before the Federal Court). This work was undertaken by a broad
group of lawyers including Tom Howe PSM QC, Senior Executive Lawyers Andrew Berger,
20
Justin Hyland
Andrew Schatz
Tim Begbie and Andrew Dillon, Senior General Counsel Dispute Resolution Damien O’Donovan,
Senior General Counsel Dispute Resolution Peter Macliver, Special Counsel Dispute Resolution
Andras Markus, Senior Executive Lawyers Justin Davidson and Justin Hyland, and Senior Lawyer
Andrew Schatz. They appeared in important cases raising complex questions of statutory and
regulatory interpretation.
Advocacy at Royal Commissions and international fora
Tom Howe PSM QC and Damien O’Donovan appeared as counsel for the Commonwealth in the
Royal Commission into the Commonwealth’s Home Insulation Program.
Damien O’Donovan appeared for the Commonwealth in World Trade Organization proceedings
brought by the Dominican Republic, Honduras, Indonesia and Cuba against Australia, alleging
that Australia’s tobacco plain packaging legislation involves a breach of a number of Australia’s
international treaty obligations.
High profile matters
Tom Howe PSM QC appeared as senior counsel in high-profile expedited trial and appeal
proceedings before a single judge and Full Federal Court (respectively) concerning challenges
to the Australian Sports Anti-Doping Authority’s conduct of a joint investigation with the
Australian Football League into the alleged use of banned substances. This matter is discussed in
a dedicated case study on pages 16 and 17.
In DPP (Cth) v Galloway (a pseudonym) & Ors [2014] VSCA 272 Peter Melican of AGS, with senior
counsel from the Victorian Bar, advised and appeared for the AFP on a novel issue involving legal
professional privilege in a sensitive criminal prosecution. The outcome was a favourable decision
in the Victorian Court of Appeal, which preserved the AFP’s ability to claim legal professional
privilege in such proceedings.
Available for instruction by legal firms for Commonwealth clients irrespective of
AGS’s involvement in a matter as solicitor
AGS counsel are available for briefing by private firms undertaking Commonwealth work. By way
of example, since 2012 Tom Howe PSM QC has represented the Department of Health and Ageing
(instructed by Corrs Chambers Westgarth) to act for the Commonwealth in several matters
principally concerned with the ability of the Commonwealth to recover certain moneys paid by it
under schemes for pharmaceutical benefits, pursuant to the ‘usual undertakings as to damages’
offered by originator companies when interlocutory injunctions are obtained to restrain generic
products from entering the market. Tom Howe, Andrew Berger and Andrew Dillon were also
regularly briefed by private law firms acting for Comcare and statutory licensees under the Safety,
Rehabilitation & Compensation Act 1988.
21
Outcomes against our corporate plan
AGS CORPORATE PLAN 2014–15
AGS aims to be:
—integral and critical to the role of the
Attorney-General as First Law Officer
—the first-choice legal service provider
to government
—an expert, reliable and flexible legal
adviser meeting client needs.
Our clients
STRATEGIC FOCUS FOR 2014–15
—demonstrating in everything we do
that we understand their needs and
challenges
— being cost-conscious and highly
competitive
This year, we delivered our corporate aims
through strategic activities in 4 key areas,
outlined in our corporate plan:
— being innovative in our service delivery.
— Our clients
In 2014–15 AGS:
— Our practice
—achieved a 96% satisfaction rating in our
annual client survey – (see page 26 for a
case study on our client survey and client
service programs)
— Our people
— Our business.
KEY OUTCOMES
— kept clients informed and maintained
confidence in our business following the
announcement of consolidation with AGD
— continued to improve cost-control
measures for clients
— added value to our legal services through
publications, training programs, events,
forums and in-house support.
UNDERSTANDING CLIENT NEEDS AND
CHALLENGES
Consolidation
Following the announcement in December
that AGS and AGD would consolidate from
1 July 2015, we turned our focus to actively
communicating with clients to reassure
them that the decision would not affect AGS’s
provision of government legal services.
22
We provided regular information and updates
about the process and its implications, and
established avenues for clients to voice
concerns and receive answers. Immediately
following the announcement, AGS CEO
Ian Govey wrote to heads of agencies
informing them of the change and Client
Service Managers spoke directly to their
client contacts, to assure them that AGS
was operating on a business-as-usual basis.
This was reinforced with clients face-to-face
through a series of back-to-work functions in
each State in February and through various
CEO meetings, lunches and other events. We
also released new communications materials
promoting our services and professional
development programs, and increased the
number and distribution of our publications.
We gave clients an opportunity to raise issues
about consolidation as part of our annual
Client Survey in March (see page 26). The key
concerns raised were about possible reduction
in AGS’s independence from government and/
or AGS’s ability to provide independent legal
advice, potential reduction in service levels
from AGS, and potential loss of key AGS
people and/or expertise and capability. We
took all opportunities to address these
concerns by further increasing our
communications and client contact. In
addition to our back-to-work events, and in
conjunction with AGD, we held events for
General Counsel and other client
representatives in various States in May. Both
Ian Govey and AGD Deputy Secretary David
Fredericks spoke at these to reinforce the
message that clients would experience very
little, if any, change following consolidation.
We also developed a Confidentiality Protocol
with AGD to ensure the existing client
confidentiality obligations of AGS continue.
In addition, the Judiciary Amendment Act 2015
ensures AGD is exempt from the Freedom of
Information Act for documents relating to
AGS’s legal activities.
BEING COST-CONSCIOUS AND HIGHLY
COMPETITIVE
Continuously improving cost-estimating
skills is an important task for AGS practice
groups, supported by regular learning and
development activities. This year we provided
core skills training in estimating for support
staff, and an AGS Seminar Series session ‘Stop,
think, act, manage’ – with tips for successful
financial management for lawyers.
Throughout the year we offered clients
alternative pricing arrangements for major
projects, involving a mix of daily rates,
outposts, inposts and ‘standard’ hourly rates.
We also continued to identify efficiencies in
high-volume, fixed-fee portfolios.
Consolidation will bring some benefits in
pricing for clients, following the decision
that work that is ‘tied’ under the LSDs, as well
as the provision of outposted AGS lawyers,
will be delivered on a cost-recovery rather
than a commercial basis from 1 July. Details
of arrangements under this decision were
formalised and communicated to clients.
INNOVATIVE SERVICE DELIVERY
AGS provides innovative services through
our publications, training programs,
events, forums and in-house support. Our
programs (often offered as ‘value-add’
services) help maintain high standards of
practice in government law generally and
provide valuable contact and relationship
development between AGS and client teams.
This year had a focus on guiding clients
through changing legislation and agency
functions. In the second half of the year,
following the announcement of consolidation
with AGD, we increased the number of
publications and events, to support our
messaging of business-as-usual and to
keep our profile high. New communication
products were developed to promote our
services and reinforce our brand. As part of
increased efforts to reinforce the ‘business-asusual’ message to clients, we also produced
a new AGS promotional pack. These were
distributed at all AGS events and training
courses.
23
Publications
We produce a range of publications to assist
clients, other Australian Government lawyers,
researchers, academics, students and the
public. They include:
— Express law – a subscription email service
that provides quick legal updates
— Commercial notes – a newsletter to keep
readers informed on significant
developments in commercial law
— Legal briefing – a newsletter on significant
legal developments
— Litigation notes – a newsletter on current
and developing litigation in key cases in
Australia
— Last week in Parliament – an email
publication summarising key events in the
Commonwealth Parliament in the
previous week and includes links to the
most significant documents
— fact sheets on key areas of law applying to
Australian Government agencies.
For a full list of publications, courses and
forums, see the appendix on page 86.
Training and forums
Our professional development opportunities
foster skills and knowledge in the APS of the
legal issues affecting policy, programs and
government law generally. They also provide
valuable contact between AGS and clients’
in-house legal teams.
Our 2014–15 courses and forums were well
attended – particularly those concerning the
PGPA Act, the Public Interest Disclosure Act
2013 (PID Act) and employment law issues.
Throughout the year we held 75 general
training courses, open to all government
employees, and approximately 70 clientspecific courses to meet particular needs of
individual agencies.
Highlights of our forums and Government
Law Group sessions are included in a case
study on page 29 and a full list is at the
appendix on page 86.
24
Outposts
AGS also continued to gain valuable contact
with client in-house teams and provide
quality, innovative service through our
outpost practice. Client demand for this
service increased again this year – in the
first quarter, we outposted 59 lawyers with
22 clients, and by the end of 2014–15 there
were 77 lawyers outposted with 29 clients
(an increase of approximately 7 lawyers for
the same time the previous year).
A significant number of AGS outposts have
been the equivalent of Head of Legal or
General Counsel, reflecting AGS’s importance
as an in-house adviser. Our outposted lawyers
have worked on some of the Government’s
most challenging matters, including major
legislative development, commercial and
litigation matters.
Corporate Commonwealth Entities
Legal Network
The CAC Act Legal Network was formed in
2011 to foster interaction between General
Counsel and senior lawyers in bodies
established under the Commonwealth
Authorities and Companies Act 1997. It was
renamed the Corporate Commonwealth
Entities Legal Network (CCELN) following
the enactment of the PGPA Act. The network
currently has 120 members from 55
Corporate Commonwealth Entities (CCEs) and
Commonwealth Companies located around
Australia.
This year, AGS held CCELN forums in Canberra,
Sydney and Melbourne. The first, in Canberra
in July 2014, attracted more than 40 General
Counsel and Senior Lawyers from over 30
CCEs. The main topics were the PGPA Act,
the PID Act, IT contracting and legal issues
arising in revenue-raising activities by CCEs.
In December 2014, AGS and CSIRO hosted a
joint CCELN Forum in Melbourne at CSIRO.
Presentations included a PGPA Act update
from the Department of Finance, a session by
AGS on freedom of information and privacy
changes affecting the network entities and
the role of General Counsel and in-house
lawyers at CSIRO. More than 30 General
Counsel and senior lawyers attended from
18 CCEs. In March 2015 our forum in Sydney,
co-hosted by AGS and the ABC at the ABC’s
headquarters, attracted 50 network members.
Speakers from AGS, the Commonwealth DPP
and the ABC gave presentations on the APS
Code of Conduct, bribery, corruption and fraud,
confidentiality, legal pitfalls in social media
and the role of General Counsel at the ABC
and the Australia Council respectively.
The network continues to provide an effective
platform for raising awareness about legal
and legal practice management issues
relevant to CCEs and to the Commonwealth
as a whole, to foster the sharing of legal
experience, expertise and information
between entities, and to develop connections
and valuable working relationships between
General Counsel and senior lawyers across the
Commonwealth.
Our practice
We will be outstanding in our practice of
law by:
— knowing government business insideout and better than our competitors
— continuously improving our supervision
of legal matters.
— continuously developing our legal
expertise.
KEY OUTCOMES
In 2014–15 AGS:
— increased its sharing of information,
leading to better understanding of clients
and their business
— focused on training, leading to
development of legal and management
expertise.
AGS’s practice groups undertake various
activities throughout the year to continuously
improve lawyers’ understanding of
government business and the law, by sharing
knowledge and skills, enhancing supervision
and developing legal expertise.
Regular contact between lawyers of different
levels and from different practice groups
contributes to our consistency and quality of
legal work and client understanding.
This year, practice groups focused on
developing networks and systems for sharing
information and providing internal training.
Forums, Government Law Group sessions,
a weekly seminar series and lunchtime
seminars were again popular as ways to share
learnings and discuss issues. A list of forums
and GLGs for the year is at the appendix on
page 86.
Training
Our internal training program ensures staff
from all offices have access to a range of
courses, including fundamental training in
areas such as core legal skills and practice
skills.
Core legal skills training covers topics such
as conflict of interest, decision-making
and review of decisions, dispute resolution
and monetary claims, federal jurisdiction,
government agreements, legal professional
privilege, the LSDs, policy development and
the legislative process, privacy and freedom of
information, public sector employment and
statutory interpretation. The AGS library also
offers regular training in research skills.
Senior lawyers and senior executive lawyers
can also continue their learning through
a non-core legal skills program, including
masterclasses, that focuses on specialist
or advanced aspects of law. Topics for the
program are developed in response to needs
identified within practice groups.
In addition, we provide training for lawyers
to improve their practice skills. Courses
cover advice-writing, plain language,
problem resolution, coaching, mentoring,
giving feedback, presentation skills, client
management and winning and growing
business.
As part of our role of ensuring AGS develops
quality government lawyers for the future,
we also continued to provide peer support
and mentoring to graduates. Each year our
graduates undertake a rotation schedule of
placements across AGS, as well as a client
placement to a government agency and
pro bono work.
25
AGS at work
Serving our clients
Providing excellent client service is fundamental to AGS’s operations. Our Client
Care Principles are part of the AGS culture. Each year our corporate plan has
included activities to enhance staff understanding of client service and improve
practical skills to better support our clients. This year we focused on being costconscious, accessible, reliable and easy to work with.
Operating in a contestable, highly competitive market for the past 15 years has made AGS
very client-focused and contributed significantly to our market share and leading position in
the external government legal service market. This will continue as we become a self-funded
commercial operation within AGD.
The benefits of our client-focused approach were reflected in a 96% client satisfaction rating
achieved in this year’s client survey.
We undertake client surveys each year to help us better understand client needs. They give us a
regular opportunity to review overall satisfaction levels, ask how our clients rate us in comparison
to other service providers, and find out which aspects of our service they are happy with, and in
which areas we need to improve.
The survey was run in February, using an online questionnaire. More than 1,370 people from
94 agencies were invited to participate.
The consultants delivered their report in April, with very positive overall findings. Client
satisfaction levels were very high, with 96% of respondents indicating they were satisfied with
AGS’s performance and 71% giving AGS a rating of 8 or more out of 10. Our performance on 12 of
the 13 attributes canvassed improved. The only one which did not improve was ‘provides accurate
estimates’, which remained static.
Notably, 43% of respondents considered AGS’s overall performance to be excellent. This compared
favourably with our 2013 survey, in which 29% rated us at such a high level. The consultants
advised that this was an outstanding result.
In addition, 70% of clients said we understand their business better than our competitors do,
with 64% saying we have better quality relationships (largely due to our excellent Client Service
Managers). The survey also showed 55% of clients felt our legal expertise was better than our
competitors and 41% said we were more cost-conscious than our competitors.
Although the Client Survey was highly positive, it raised some issues that need to be addressed
as part of our focus on continuously improving client service. Practice groups and Client Services
subsequently carried out detailed analysis of the survey to identify areas for improvement. These
are to be considered in the annual business planning process.
The surveys help inform our activities for the coming year. This year we initiated a client listening
program, which began with a national training course on managing difficult client conversations.
CMA Learning provided the training and their principal consultant addressed the AGS Leaders
Conference in October to discuss the topic more broadly with senior staff.
An internal blog by Chief Operating Officer Louise Vardanega gave the program an ongoing
profile throughout the year. Other activities included publication of client feedback on the
intranet and encouraging staff – including through performance agreements – to have regular
contact with clients, to gather feedback and better understand their requirements.
26
The practice groups are major contributors
to the National Practice Orientation program
for new starters to AGS. This provides an
opportunity for employees meet key AGS
professional leaders and executives and
establish networks with other colleagues.
Supervision of legal matters
Activities towards enhancing supervision
within the practice groups included
development of training in matter
supervision, consistency of expectations and
management of underperformance. A senior
practitioner’s group provided assistance
to supervisors to increase professionalism
and knowledge transfer, and mentoring
arrangements were formalised.
Our people
We will be a great place for our people to
work by:
— heightening the sense of collegiality and
networking for which AGS is highly
regarded
— improving the career prospects and job
satisfaction of our legal support
employees.
KEY OUTCOMES
— implemented an AGS-wide mentoring
program for junior lawyers
— fostered our culture of leadership across
the Senior Executive Lawyer cohort
— implemented the remaining
recommendations of the 2013 Legal
Support Review.
A shift in objectives was necessary in the
second quarter as a result of the decision
to consolidate AGS with AGD from 1 July
2015. Despite this, much was progressed
and completed in relation to our original
objectives.
The scope and range of achievements and
outcomes for the year included:
— supporting employees during the
consolidation process by providing a range
of change assistance initiatives such as
tailored professional development
programs, information sessions and other
relevant support tools
— managing the job evaluation and role
description process to transition AGS
employment arrangements to the APS
— updating HR policies, procedures and
Employment Handbook to reflect APS
practices, policies and legislation
— continuing to improve and grow our
leadership development programs
— implementing recommendations from
the reviews of the Lawyer Development
Program (LDP) to provide a comprehensive
and relevant program for our early career
lawyers
— completing the roll-out of the Legal
Support Program that provided a
framework for orientation, reporting
arrangements, career progression (role
descriptions and specialist responsibilities
and training and development for our
legal support).
CONSOLIDATION
Classification of legal and support roles
Consolidation presented a number of
challenges in regard to employment
arrangements. A significant amount of
work was undertaken to determine APS
classifications for all AGS roles prior to 1 July
2015 when AGS employees would transfer
to AGD and be employed under the Public
Service Act.
Consultation with employees was a key
element of the job classification process and
included:
— briefing staff across AGS, undertaking a
job evaluation survey and consultation
through the Employee Council
— aligning jobs with common skills,
knowledge and behaviours to identify job
families
27
— developing, reviewing and settling
approximately 110 role descriptions based
on job families
— AGD engaging Bull and Bear Special
Assignments (BBSA) to:
– evaluate AGS’s roles against the APS Work Level Standards
In addition to workshops and information
sessions, we:
– validate survey information through interviews with staff and managers
– present recommendations on APS classifications for all AGS employees to the AGD Secretary
— developed and implemented 2
introductory eLearning modules to
support the AGS Orientation Program –
‘Introduction to AGS’ and ‘Client care’
–
advising staff of their classifications including review provisions should staff disagree with their recommended classification.
The job classification process was completed
within very tight deadlines. Role descriptions
were completed in April, BBSA presented
recommendations in May and staff were
advised shortly afterwards. Requests for
review were considered by the AGD Secretary
and staff advised of the outcome in June.
Supporting staff with change
Providing support to our staff, and ensuring
they had access to information through
multiple channels, guided many of our
programs and activities in the lead up to the
consolidation. The range of support provided
to staff in all AGS offices included:
— delivering ‘Managing change and building
resilience’ workshops designed to provide
employees with techniques to build and
sustain personal and team resilience in
times of change
— welcoming AGS staff to AGD and the APS
in ‘on-boarding’ information sessions
delivered by Rachael Jackson, Assistant
Secretary, People Strategy Branch, AGD
and Alison Halpin, Acting National
Manager, HR Services, AGS
— releasing a series of factsheets which
emphasised the key messages delivered in
the on-boarding information sessions and
provided additional information on
employment policies, including health and
safety
28
— highlighting key APS policy issues, such as
APS Values and Code of Conduct,
recruitment and SES provisions, through a
presentation by the APSC to AGS senior
managers.
— undertook a major review of AGS
employment policies and delegations to
ensure consistency with the Public Service
Act and subordinate legislation
— worked collaboratively with AGD People
Strategy Branch and the HR Working
Group to produce a new edition of the AGS
Employment Handbook for 1 July 2015.
Enterprise agreement
AGS began negotiations for the renewal of its
enterprise agreement (EA 2012) in September
2014, but these were suspended early in 2015
due to the consolidation announcement.
The Judiciary Amendment Act 2015 provided
that EA 2012 would continue to apply postconsolidation until a new AGD enterprise
agreement is made that covers either all
AGS employees or all non-SES employees.
AGS guidelines and policies relating to
employment conditions, administrative
process and other employment-related
matters that had effect for the purposes of the
EA 2012 on 30 June 2015 would also continue
to apply while EA 2012 was in operation.
PROFESSIONAL DEVELOPMENT
Leadership development
AGS’s leadership group met in Canberra in
early November for the annual AGS Leaders
Conference. The topic of ‘Keeping in step
with our clients’ was addressed in group
discussions and supported by keynote
speakers’ presentations that focused on
identifying major changes facing government
agencies now and in the future. Conference
participants also participated in training on
‘managing difficult client conversations’.
AGS at work
Building legal knowledge in the APS
AGS is widely recognised as the leading provider of training for government lawyers. We offer
a comprehensive range of training courses, forums and other events to help clients and the
Commonwealth public service generally stay abreast of legal issues.
Our general training events are open to all government employees, while our agency-specific training
focuses on the particular operational concerns of individual clients, in locations best suited to their needs.
Some of the topics our courses cover include administrative law, statutory interpretation, the
Commonwealth financial framework, constitutional issues in program design, Code of Conduct
investigations, decision-making, delegations and authorisations, legal advice-writing, government
contracting, freedom of information and privacy.
A feature of our training courses is the use of small-group interactive teaching, where clients are able
to ask a lot of questions and do interactive exercises to enhance their learning outcomes. The course
presenters are AGS lawyers with a great depth of knowledge of the government environment.
This year we increased our training output and added new courses to our offerings. We delivered
courses, forums and Government Law Groups in 60 different subject areas in Canberra and our regional
offices. We trained or presented to almost 3,500 participants from various government agencies at
approximately 160 sessions.
All the courses and forums were well attended – particularly those concerning the PGPA Act, the Public
Interest Disclosure Act 2013 (PID Act) and employment law issues.
Highlights of our forums and Government Law Group sessions included:
• the 10th annual Property and Infrastructure Forum in August 2014, attended by 50 clients
• the Employment Law Forum in Canberra in October, which attracted a record attendance of 182 HR
and legal officers from 75 agencies
• the migration client forum in Canberra in October, which had its highest ever attendance of 92 people
• the Administrative Law Forum in Canberra in November, attended by 158 AGS clients from 27 agencies.
Justice Debbie Mortimer of the Federal Court opened the forum and Judge Jeffrey Sutton of the US
Court of Appeal gave the keynote address.
• an FOI practitioner forum in Melbourne in November had 32 attendees, and one in Canberra in
December had 103 attendees
• our first Information Technology Forum was held in February, with the topic ‘Cloud, contracts and
consequences’. Places sold out, with 36 client agencies represented among the 98 attendees.
• Tom Howe PSM QC and Craig Rawson presented a Government Law Group seminar in Canberra in
May about the long-running ASADA investigation of the Essendon supplements program – more than
150 clients attended
• AGS Commercial and the Department of Finance presented a Government Law Group seminar on
Commonwealth indemnities to around 180 clients in Canberra in May.
All our training and forums meet the requirements for Continuing Professional Development (CPD) or
Continuing Legal Education (CLE) points. For a full list of forums and Government Law Group sessions, see
the appendix on page 86.
29
Continuing to provide leadership
development activities and programs to
AGS remains the foundation of our people
development strategy. This year we:
— delivered ‘Introduction to people
supervision’ for Senior Lawyers and
corporate group supervisors (including
a pilot at the annual Legal Support
Managers Conference)
— continued our Leadership Series lunches
for senior managers. A highlight of the
series was the Australian Public Service
Commissioner, the Hon John Lloyd PSM,
presentation on ‘Perspectives on the
current priorities and challenges in
the APS’.
— scoped and developed professional
supervision and client engagement
programs
— provided training for LDP lawyers and
their supervisors in performance
appraisals including a series of workshops
‘Getting the most out of performance
reviews’.
Lawyer development program
The program was refreshed this year and
now provides a comprehensive learning
framework underpinned by the AGS
performance management process which
aims to develop lawyers in the Lawyer
classification with the capabilities required of
a Senior Lawyer.
Legal support program
The roll-out of the Legal Support Program
was completed in July 2014. Legal Support
Managers conducted briefing sessions
for legal support staff and outlined the
improvements that were introduced,
including new roles and responsibilities
within existing legal support structure,
national legal support orientation program
and training and development.
30
Graduate and clerk programs
Applications for AGS’s graduate program
continue to increase each year. Over 700
applications were received for the 2016
graduate program. This year short-listed
applicants undertook a deductive reasoning
test from which 40 applicants were invited for
interview. First-round offers were accepted for
17 graduate positions (including 2 Indigenous
positions) for the 2016 graduate program.
The winter clerk program received extremely
positive feedback from AGS supervisors
and clerks. This year, 12 clerks, including
an Indigenous student, participated in the
program.
AGS Alumni
Our alumni program, established in 2012 to
keep AGS in touch with former employees,
continued successfully with events in
Adelaide, Brisbane, Canberra, Hobart,
Melbourne and Sydney. Issues of the Alumni
newsletter were distributed to members in
November 2014 and April 2015.
The alumni program provides an opportunity
to enhance contact and friendships with
former colleagues, develop useful business
networks, foster career development and
mentoring, and promote AGS’s profile within
the legal profession. At the end of the year the
program had 926 members.
WORKFORCE PROFILE
Full-time equivalent changes
1 July 2014
Lawyers and
Graduates
Senior
Lawyers
Senior
Executive
Lawyers
Legal
Support and
Paralegals
Corporate
Support
140.2
589.6
78.2
130.3
112.7
138.6
133.2
593.0
30 June 2015
106.2
111.1
112.3
119.8
AGS
Notes: FTEs refer to ongoing term and casual employees but not contractors.
Excludes winter clerks.
Employee turnover
% Female and male at 30 June 2015
Level
2013–14
Lawyer/Graduate
14%
2014–15
14%
Senior Lawyer
8%
2%
Senior Executive Lawyer
3%
2%
Legal Support and Paralegal
11%
10%
Corporate Support
5%
8%
AGS
8%
7%
Female
Male
Senior Lawyer
66%
34%
Senior Executive Lawyer
48%
52%
Legal Support and
Paralegals
94%
6%
Corporate Support
64%
36%
AGS
70%
30%
Lawyer/Graduate
70%
30%
Note:Turnover refers to resignations and retirements
for ongoing employees.
Note: Includes ongoing, term and casual employees.
Lawyer stability
% Part-time and full-time at 30 June 2015
Ongoing lawyers
>3 years at AGS
% at
% at
30 June 2014 30 June 2015
80%
77%
Personal leave
Average days taken
per employee
2013–14
10.8
2014–15
10.5
Note: Includes ongoing and term employees but not
casual employees.
Part-time
Full-time
Senior Lawyer
29%
71%
Senior Executive
Lawyer
26%
74%
Legal Support and
Paralegals
17%
83%
Lawyer/Graduate
4%
96%
Corporate Support
21%
79%
AGS
21%
79%
Note: Includes ongoing and term employees.
31
Savings
Key outcomes for the financial year included:
Our business
— 5% reduction of corporate employees. This
builds on the 8.7% reduction in 2013–14
— 17% increase in Senior Lawyers with a
corresponding 26% decrease in Lawyers.
These figures reflect our career and
succession planning which supports our
approach of promoting junior lawyers. Our
Lawyer numbers will increase in 2016
with the commencement of 17 graduates.
— 7% turnover which is 1% lower than the
previous year.
In addition, Financial Services continued to
centralise and automate business processes
and were able to achieve significant staff
savings.
We will be first rate in our business
practices by:
— being current and efficient in our
technology
— being resourceful and managing costs.
KEY OUTCOMES
In 2014–15 AGS:
— delivered or progressed new technology
projects aimed at increasing productivity
— implemented measures to meet
Commonwealth security requirements
and improve communications.
Employee survey
BUSINESS SYSTEMS IMPROVEMENTS
Work health and safety
Supporting the business practices of a
commercial legal operation requires up-todate specialised information technology
systems and technical support. This year
we undertook several projects focused on
providing better tools and minimising
interruptions to services to support and
improve the productivity of our legal staff.
AGS consulted extensively with staff as part of
AGS’s consolidation with AGD. As a result, AGS
decided not to conduct a staff survey in 2015.
AGS continues to have low levels of health
and safety hazards and incidents. Nine
workplace incidents were reported during the
year, most of them minor in nature with no
time lost. Two incidents resulted in workers’
compensation claims and no incidents
required notification to Comcare.
During 2014–15, we continued with training
and information on mental health in the
workplace, in addition to ergonomic training
and sharing information across the national
practice.
A key focus during the year was
emergency procedures. In addition to
standard and refresher training, national
videoconferences were held with first
aiders, emergency wardens and Health and
Safety Representatives. Offices reviewed
their emergency evacuation planning and
practices.
Document management system
Last year AGS contracted with Trinogy
Systems to implement the WorkSite
product to replace the existing document
management system. WorkSite is designed for
legal practices and is used by 78% of the top
200 law firms. Following contract execution
in September, the project team set up the
development environment and consulted
with users on detailed requirements.
As part of the preparations, we replaced all
of our storage equipment, upgraded our
email server environment and upgraded the
equipment in our test environment. The new
test environment allowed for more robust
testing for general desktop updates.
The move to WorkSite involved the migration
of approximately 12 million documents.
32
Stage 1 of the system went live in April 2015
as per the original schedule agreed last year,
and was delivered on budget. Since that time,
AGS staff have added more than 1 million
new items to WorkSite. During 2015–16, we
will implement Stage 2 which will include
improvements to records management,
mobility and scanning.
Practice management system
In 2014, AGS began a project to implement a
new practice management system, known as
Elite, which would automate many processes
through electronic workflow and approval
and enable more flexible reporting for our
clients. Work progressed throughout the year
to set up the system in preparation for go-live.
By the end of 2014–15, the project was on
schedule for rollout in the first half of 2015–
16. It is anticipated that Elite will reduce the
administrative burden arising from providing
legal services and client requirements,
thereby better equipping AGS to meet client
requests for pricing and other information,
and reducing our overheads.
Other projects
Other information technology and
communications projects this year included:
— delivering measures required under
Commonwealth security policy to address
the most common threats to IT security in
government agencies. We estimate that
various levels of our security
infrastructure successfully resisted over
25 million attacks and incidents (other
than SPAM) in the space of 3 months.
— installing video conferencing in our
offices, with positive feedback from staff.
33
AGS at work
Guy Aitken
Jenny Burnett
Kathryn Graham
Greg Prutej
Helen Chisholm
Leah Edwards
Donna Allen
Kim Pham
Lisa Redman
One-Stop Shop to improve approval process
During the year, AGS advised the Department of the Environment on the One-Stop Shop for
environmental approvals.
This initiative is an important government priority in the Environment portfolio. It is expected
to result in regulatory savings to business of around $426 million a year, by reducing costs
associated with delays to project approvals and administration.
The One-Stop Shop will accredit State and Territory planning systems under the Environment
Protection and Biodiversity Conservation Act 1999 (EPBC Act) to create a single environmental
assessment and approval process for nationally protected matters. The Commonwealth
government already has bilateral agreements for environmental assessment in place with States
and Territories. The One-Stop Shop will involve bilateral agreements for environment approvals,
meaning that there is a single approval decision (by the State or Territory) rather than the
additional layer of Commonwealth approval.
Significant aspects of AGS’s work included:
• assisting with development of the EPBC Amendment (Bilateral Agreement Implementation)
Bill 2014, which would amend the EPBC Act to support the implementation of the One Stop
Shop through bilateral agreements
• advising on aspects of the draft bilateral agreements, and the accreditation of State and
Territory planning systems under the EPBC Act
• advising on the Department’s draft Conditions Policy to improve the efficiency of existing
bilateral agreements for environmental assessment.
This work was performed by Chief General Counsel Guy Aitken, Deputy General Counsel
Jenny Burnett, Senior General Counsel Greg Prutej, Leah Edwards and Kathryn Graham,
Counsel Helen Chisholm, Donna Allen, Kim Pham and Lisa Redman.
Work on the One-Stop Shop is continuing.
34
PART 2
accountability
and management
35
Corporate governance
As a government business, AGS differed
significantly from private sector law
firms in that it operated within a unique
legislative and accountability framework.
Through this framework, AGS was
accountable for its performance to its
shareholder Ministers – the Attorney-General
and the Minister for Finance – and, through
them, to the Parliament and the Australian
community.
LEGISLATIVE FRAMEWORK
During 2014–15, AGS’s legislative framework
had 3 main elements:
— The Judiciary Act 1903 (as in force on
1 July 2014), which, under s 55J,
established AGS as a statutory authority.
36
– S
ection 55K set out AGS’s functions.
These included providing legal and
related services to the Commonwealth
to persons and bodies for any purpose
for which the Commonwealth has the
power to make laws to, and, on request,
the States, Territories and Norfolk Island
and State, Territory and Norfolk Island
persons and bodies.
– Section 55N set out the persons and bodies to whom AGS could provide services in the exercise of its functions.
–
The Judiciary Act also specified the rights, duties and obligations of AGS lawyers, provided for the appointment and terms and conditions of AGS’s CEO, set out AGS’s powers and provided a mechanism for setting AGS’s corporate governance requirements.
— The PGPA Act which establishes a
framework for the governance,
performance and accountability of
Commonwealth entities, as well as the use
and management of public resources by
the Commonwealth and Commonwealth
entities.
–
AGS was a corporate Commonwealth entity for the purposes of the PGPA Act. It was also prescribed as a government business enterprise by the Public Governance, Performance and Accountability Rule 2014.
— AGS’s corporate governance arrangements
which were issued by AGS’s shareholder
Ministers pursuant to s 55ZE of the
Judiciary Act. The arrangements set out
AGS’s mandate and objectives,
complemented and expanded AGS’s
reporting and accountability obligations,
provided for financial and other
governance matters, and established the
AGS Advisory Board.
CEO
Section 55S of the Judiciary Act established
the position of Chief Executive Officer (CEO)
of AGS and provided that the CEO was
the accountable authority of AGS for the
purposes of the PGPA Act with the function of
managing AGS.
The CEO was appointed by shareholder
Ministers under s 55T of the Judiciary Act and
was responsible to them for ensuring that, in
delivering legal services:
—AGS is managed in the best interests of
the Commonwealth.
—AGS’s business activities are conducted
to minimise any risk of divergence of
interests between AGS and the
Commonwealth
—AGS and its employees maintain the
highest standards of integrity,
accountability and responsibility.
For 2014–15, the CEO was Ian Govey AM.
Mr Govey was appointed CEO in March 2010.
Prior to his appointment, he was Deputy
Secretary, Civil Justice and Legal Services
in the Attorney-General’s Department. He
also worked in other senior positions in the
Department, as well as at the Australian
Embassy in Washington DC and in the
Treasury.
EXTERNAL CORPORATE GOVERNANCE
Responsible Ministers
For the reporting period, the AttorneyGeneral was Senator the Hon George Brandis
QC. Shareholder responsibility for AGS was
exercised jointly by the Attorney-General
and the Minister for Finance, Senator the Hon
Mathias Cormann.
Ministerial directions
Section 55ZE of the Judiciary Act provided
for the Attorney-General and the Finance
Minister (acting jointly) to inform the CEO
of the corporate governance arrangements
that were to apply to AGS. In November
2003, shareholder Ministers issued corporate
governance arrangements for AGS that
continued to apply to AGS during 2014–15.
During 2014–15, no government policy
orders were made under s 22 of the PGPA Act
specifying government policies that were to
apply to AGS.
Significant events
Besides the Government’s decision to
consolidate AGS with AGD, no significant
events in the context of s 19(1) of the PGPA
Act occurred during 2014–15. This section
required the CEO, as the accountable authority
of AGS, to notify the Attorney-General as
soon as practicable after the CEO made a
significant decision in relation to AGS; to give
the Attorney-General reasonable notice if the
CEO became aware of any significant issue
that may affect AGS; to notify the AttorneyGeneral as soon as practicable after the CEO
became aware of any significant issue that
had affected AGS.
Judicial decisions and reviews by
outside bodies
During 2014–15, no judicial decisions or
decisions of administrative tribunals had, or
may have had, a significant impact on AGS’s
operations; nor were there any reports on the
operations of AGS by the Auditor-General
(other than the report on the financial
statements) or by a parliamentary committee.
Accountability
Under the provisions of the PGPA Act and
the AGS corporate governance arrangements
issued by its shareholder Ministers, AGS was
required each year to prepare a corporate plan
covering an outlook period of 4 years. The plan
set out broad areas of strategic focus, each
critical to AGS’s continuing business success
and building its future. Under each area of
strategic focus, the plan identified a number
of specific actions to be undertaken during the
first year of the planning period.
Over the course of 2014–15, AGS provided
its shareholder Ministers with confidential
quarterly progress reports, including financial
statements, against the objectives, strategies
and actions detailed in the 2014–18 corporate
plan.
AGS was also required to prepare an annual
statement of corporate intent, which was a
high-level summary of AGS’s annual corporate
plan. The statement was agreed between
shareholder Ministers and AGS and was
tabled in Parliament. AGS’s annual financial
statements were audited by the AuditorGeneral for the Commonwealth.
Although AGS did not receive any Budget or
other appropriations, AGS could be requested
to attend the estimates hearings of the
Senate Standing Committee on Legal and
Constitutional Affairs for matters associated
with AGS’s operations.
37
AGS ADVISORY BOARD
All members of the Advisory Board sat on
AGS’s Audit Committee, chaired by Richard
Alcock until 14 August 2014 and then
Kathleen Bailey-Lord for the remainder of
2014–15.
The role of the AGS Advisory Board was to
advise the CEO on the strategic development
of AGS as a business and on its business
performance to ensure that:
AGS’s Audit Committee was established in
accordance with s 45 of the PGPA Act and
AGS’s corporate governance arrangements.
The role of the committee was to assist
the CEO to discharge responsibilities in
relation to AGS’s management and business
control framework, audit and financial risk
management.
— the Commonwealth’s investment in AGS
was safeguarded and enhanced
— AGS’s strategic direction was conducive to
its long-term success as a governmentowned provider of quality legal services to
the Australian Government
— AGS met its responsibilities and
obligations to shareholder Ministers and
effectively communicated with them on
its operations and performance.
The non-executive members of the AGS
Advisory Board during 2014–15 were:
• Richard Ryan AO (Chair): company
director; chair of Editure Ltd and several
other boards; former Chancellor Charles
Darwin University.
(Appointed to Board 15 November 2003.
Appointed Chair 1 September 2013)
• Richard Alcock: Managing Director,
Investment Banking Group, Merrill Lynch
International (Australia) Ltd.
(Appointment: 15 August 2011 to
14 August 2014)
• Dymphna (Deej) Eszenyi: practising
barrister working predominantly in civil
and industrial law.
(Appointment: 15 August 2011 to
14 August 2014)
• Sophie Valkan: Former lawyer and
experienced CEO and director, corporate
advisor and advisory board member at
various companies.
(Appointed 1 September 2013)
• Kathleen Bailey-Lord: Consultant/
Non-executive Director
(Appointed 1 September 2013).
38
Audit Committee
AGS did not have a board of directors but it
had an Advisory Board comprising the CEO
and 3 to 5 external (non-executive) members
who were appointed by the CEO on the
nomination of AGS’s shareholder Ministers.
The CEO and Chief Financial Officer had a
standing invitation to attend each meeting
and representatives of the Australian National
Audit Office were invited as observers.
AGS Advisory Board members’ attendance
at meetings of the Advisory Board and Audit
Committee in 2014–15 is shown in the
following table.
Meetings attended by AGS Advisory Board
AGS Advisory
Board
4 meetings
held
4
Audit
Committee
3 meetings
held
Richard Alcock
0
0
Deej Eszenyi
0
0
Sophie Valkan
4
3
Kathleen Bailey-Lord
4
3
Ian Govey AM (CEO)*
4
3
Richard Ryan AO
3
* The CEO was not a member of the Audit Committee
but had a standing invitation to attend committee
meetings.
Non-executive Advisory Board members
were contracted, on a fee-for-service basis, to
provide advice to AGS’s CEO. Members’ fees
were based on comparable fees recommended
by the Remuneration Tribunal. Members were
informed of their responsibilities through
letters of engagement setting out the terms
and conditions of their appointment to the
Board.
Our external corporate governance
structure 2014–15
Parliament
AGS annual report
AGS statement of
corporate intent
Advised the CEO on the
strategic development
of AGS as a business
and on its business
performance
Assisted the CEO
to discharge his
responsibilities for
AGS’s management
and business control
framework, audit
and financial risk
management
Shareholder Ministers
Attorney-General,
Minister for Finance
AGS Advisory Board
Senate Estimates hearings
AGS corporate plan
Confidential quarterly
reports
CEO
Legislative framework:
– Judiciary Act
–Public Governance,
Performance and
Accountability Act
Audit Committee
INTERNAL GOVERNANCE COMMITTEES
During 2014–15, the following internal
governance committees advised the CEO on
the effective management of AGS:
— Executive Management Committee (EMC)
advised the CEO on AGS’s business
development and operations, and ensured
AGS operated effectively and efficiently as
a nationally integrated business.
— Employee Council provided a forum for
employee representatives to advise the
CEO on AGS employment issues.
RISK MANAGEMENT
Each year, under the CEO’s leadership, EMC
developed an AGS risk management plan
that identified and assessed high-level
business risks across AGS. The plan comprised
a summary and a series of individual risk
management plans for each identified risk
which were prepared by senior managers
who were members of EMC.
A summary of the plan was included in the
AGS corporate plan submitted to shareholder
Ministers.
–AGS corporate governance
arrangements
The Audit Committee annually reviewed
AGS’s risk management plan, particularly
risks associated with financial management.
INDEMNITIES AND INSURANCE PREMIUMS
FOR OFFICERS
AGS provided an indemnity to the CEO under
the terms and conditions of his appointment,
indemnifying him against any liability
incurred by him in good faith in connection
with his duties but excluding any liability or
legal costs in respect of which AGS was not
permitted to indemnify the CEO pursuant
to s 27M of the repealed Commonwealth
Authorities and Companies Act 1997.
AGS also provided an indemnity to each
non-executive member of the AGS Advisory
Board under the terms and conditions of their
appointments, indemnifying them against
liability to third parties incurred in good
faith in connection with their duties and
for reasonable legal costs in defending civil
proceedings concerning such liability or in
defending criminal proceedings in which they
are acquitted.
39
Organisation chart 30 June 2015
In addition, AGS acquired professional
indemnity insurance and other appropriate
insurances, including a Directors and Officers
Liability and Company Reimbursement policy.
FREEDOM OF INFORMATION
In accordance with competitive neutrality
principles, AGS was exempt from the
operation of the Freedom of Information Act
1982. Consequently, AGS was not subject to
the Information Publication Scheme at Part II
of the Act.
ADVERTISING AND MARKET RESEARCH
AGS was not a statutory agency under the
Public Service Act 1999 and was therefore
not subject to s 311A of the Commonwealth
Electoral Act 1918, which requires the annual
reports of state, parliamentary departments
and statutory agencies to include particulars
about their advertising and market research
activities.
CEO Ian Govey AM
Chief Operating Officer Louise Vardanega PSM
Office of General Counsel
National Group Leader
Leo Hardiman
National Group Managers
Darryl Everett, Simon Blake
Professional Leaders
Chief General Counsel Guy Aitken
AGS Dispute Resolution
Matthew Blunn
Jenny Anderson, Nerida Nelson, Jody Marshall
Chief Counsel Dispute Resolution Tom Howe PSM QC
Chief Solicitor Dispute Resolution Simon Daley PSM
AGS Commercial
Adrian Snooks
Martin Bruckard, Kenneth Eagle
Chief Counsel Commercial John Scala
General Counsel Commercial Linda Richardson PSM
Outpost Services
National Manager
Simon Blake
Library Services
National Manager
Yvonne Suter
Training Services
National Manager
Denise Saunders
Pro Bono Services
National Manager
Geetha Nair
Corporate Adviser
Paul Sykes
Regional Office Directors
Sydney Megan Pitt, Melbourne Martin Bruckard,
Brisbane Jane Lye, Adelaide Rodger Prince,
Perth Peter Macliver, Darwin Mieke Dixon,
Hobart David Wilson
Financial Services
Chief Financial Officer Stuart Rankin
Client Services
Director Liz Lajos
HR Services
Director Doug Cross
IT Services
National Manager Graham Fry
Corporate Secretary
Daryl Adam
40
AGS at work
Kenneth Eagle
Brett Gulley
Josephine Ziino
David Ireland
Jane Muir Cottman
Tony Beal
Teresa Miraglia
Helen Moran
Standard procurement and grants documentation
During 2014–15, AGS worked with a range of agencies developing standard contract
documentation for procurements and grants.
Senior Executive Lawyer Kenneth Eagle, Lawyer Brett Gulley and Law Graduate David Ireland
worked with Department of Finance in developing the Commonwealth Contracting Suite (CCS)
– including the development of a deed of standing offer/panel module and associated guidance
material. Deputy General Counsel Tony Beal and Senior Executive Lawyer Teresa Miraglia also
provided advice on other possible developments for the CCS.
Senior Executive Lawyer Josephine Ziino and Senior Lawyer Jane Muir Cottman worked with the
Department of Finance on further developments of the Commonwealth National Lease suite. The
suite includes a guidance notes version, transaction version and market version.
AGS worked with Finance in developing the Commonwealth Lease Divestment Handbook, which
includes new template documents with guidance notes for surrenders of lease, assignment
of lease and subleases. Following this work, Senior Executive Lawyer Helen Moran assisted the
Department of Finance with an update to the Memoranda of Understanding for ‘assignment’ and
‘sub-lease’ transactions for use between Commonwealth entities.
We also worked with a range of clients in developing template procurement and property
documentation, including the Reserve Bank, Department of Health, Australian Sports
Commission, Australian War Memorial, Food Standards Australia New Zealand and Department
of Parliamentary Services.
41
AGS at work
Danielle Chifley
Marlowe Thompson
Sacha Moran
Leo Hardiman
Piccolo Willoughby
Jenny Francis
David Lewis
Andrew Chapman
Energy market reform
AGS advised the Department of Industry and Science on key energy market reform initiatives
of the COAG Energy Council and the interpretation and operation of the 3 cooperative schemes
in the energy sector – the National Electricity Law (NEL), the National Gas Law (NGL) and the
National Energy Retail Law (NERL) (the national energy laws).
Significant aspects of this work included:
• advising on the establishment of Energy Consumers Australia Ltd (ECA), a national energy
consumer advocacy body. ECA was established on 30 January 2015 as company limited by
guarantee. It will perform a range of energy consumer advocacy functions nationally and
administer grant funding, including for projects that will build knowledge and capacity in the
national energy market.
• advising on a range of issues relevant to the application of the national energy laws by States
and Territories, including the development and implementation legislation to apply the NERL
in Queensland and the NEL in the Northern Territory and Western Australia; and reviewing
the national energy laws, including all State and Territory instruments, and advising on
methodologies for introducing and managing difference
• instructing on amendments to the national energy laws and Commonwealth legislation to
implement various policy initiatives of the COAG Energy Council, including amendments to
the NEL, NGL and Competition and Consumer Regulations 2010.
AGS also advised the Northern Territory and the Commonwealth governments on the phased
application of the National Electricity Rules in the Northern Territory.
AGS’s work in supporting national energy market reform continues.
42
Paul Lang
Guy Aitken
Kenneth Eagle
Steffen Etherton
Clare Derix
Stuart Hilton
Lillian Riches
Sophie Maltabarow
The ECA establishment team included:
• Office of General Counsel: Counsel Danielle Chifley, Senior General Counsel Sacha Moran,
National Group Leader OGC Leo Hardiman, Senior General Counsel Jenny Francis and
David Lewis, Counsel Marlowe Thompson, Piccolo Willoughby and Andrew Chapman.
• AGS Commercial: Deputy General Counsel Commercial Paul Lang, National Group Manager
Commercial Kenneth Eagle, Senior Executive Lawyer Clare Derix, Senior Lawyers Stuart Hilton
and Lillian Riches.
Other advice and legislative development work for the Department of Industry and Science
was performed by Counsel Danielle Chifley, Senior General Counsel Sacha Moran, Chief General
Counsel Guy Aitken, Senior General Counsel David Lewis, Counsel Marlowe Thompson,
Steffen Etherton and Sophie Maltabarow.
Work for the Northern Territory was performed by Counsel Steffen Etherton.
43
Social responsibility
COMMUNITY SERVICE OBLIGATIONS
AGS is not subject to, and does not receive
funding for, any formal community service
obligations. However, as a legal service
provider and government entity, AGS has
general obligations to the community and
to its employees to act as a good corporate
citizen. Key activities we undertake include
pro bono legal work, environmental initiatives
and reconciliation initiatives.
PRO BONO LEGAL WORK
AGS can only undertake pro bono work
that involves acting for a person or body for
whom AGS can act in accordance with the
Judiciary Act 1903. AGS does not undertake
pro bono work in any matter against a
Commonwealth agency or where there is an
unacceptable potential for conflict of interest
for government clients. We have an extensive
pro bono program, which covers a diverse
range of clients all across Australia and also
internationally.
AGS’s pro bono work increased significantly
this year, with an increase in the number of
placements undertaken by our lawyers in
public interest clearing houses, law referral
schemes and community legal organisations
and greater involvement in project and
international work. In total we provided 7,628
hours of work, valued at $2,711,673. AGS’s
dedication to pro bono was recognised at the
2014 ACLA in-house lawyer awards where
we won the Excellence in Corporate Social
Responsibility Award. We were also a finalist
in the Lawyers Weekly pro bono awards and a
recipient of a pro bono award from the Arts
Law Centre of Australia.
44
Placements
During the course of this financial year,
AGS expanded the reach of our placement
program to cover new pro bono clients
all across Australia, for example the
Tenants Union (ACT) and maintaining our
placements with existing clients including
Justice Connect, the Public Interest Advocacy
Centre (NSW), the Consumer Advocacy Legal
Centre (CALC), Women’s Legal Centre (ACT)
Inc, the Darwin Community Legal Service
(with whom we established a dedicated
Credit and Debt Legal Service), the Arts Law
Centre of Australia, the Consumer Law Centre
(ACT), JusticeNet SA, the Employment Law
Centre of WA, Street Law (ACT), the Western
Australia Law Access Scheme, the Tasmanian
Pro Bono Clearing House, the Victorian
Disability Discrimination Legal Services,
Canberra Consumer Law Ltd (ACT) and the
Consumer Credit Legal Services (WA).
These placements have provided an added
‘hands-on’ resource to these organisations
which operate with a limited number of
lawyers and resource constraints. The
pro bono assistance provided by AGS through
these placements has in turn facilitated
increased access to justice for some of the
most disadvantaged and marginalised
members of the community, as added cases
are able to be managed, and advice and
educational resources are made available to
the community.
An example of the impact of our assistance
is the work our lawyers on placement
with the Women’s Legal Centre in the ACT
undertook to develop and draft kits to guide
self-represented litigants in matters involving
care and protection orders. These kits, which
are couched in clear, easy-to-understand
language, are designed to assist those in the
community who do not have the capacity to
pay for legal assistance but need to navigate
the relevant court processes and to ‘demystify’
those processes – but provide sufficient
details on matters, such as how to complete
the relevant forms and the nature of the
evidence required to support the necessary
applications.
Another example is the impact of our work
with the Tasmanian Pro Bono Clearing House
Scheme, administered by the Tasmanian Law
Society, which confirmed that the placement
made a significant difference to the Law
Society’s ability to run the Pro Bono Scheme
efficiently and effectively.
Project work
AGS continued to provide advice to not-forprofit and charitable organisations to ensure
that their resources can be better focused on
delivering their charitable and community
objectives. This year, we increased the number
of organisations we assist and the range of
services provided. This included UN Women,
to whom we provided advice on a number
of commercial arrangements; review and
updating of a handbook published by the
Environmental Defender’s Office (ACT) and a
significant advice to Justice Connect relating
to the regulation of retirement villages.
We also assisted with the Self Representation
Program of Justice Connect on a pro bono
basis, to provide assistance to draft fact sheets
on bankruptcy, court practice and procedures,
and Fair Work matters. These fact sheets are
designed to explain in clear terms some of the
key principles to better equip self-represented
litigants to understand their rights and
obligations and how the relevant court
process works.
One of our lawyers travelled to Central
Australia with lawyers from the Arts Law
Centre to assist in a project under which Arts
Law drafts wills for Indigenous visual artists
in remote and regional areas of Australia and
provides much-needed support to those in
need.
AGS has been able to leverage the expertise
we have built in our national teams in
managing matters for our fee-paying
government clients and apply these skills to
innovative projects that will benefit those
in the community who are disadvantaged
and have limited means. Partnering with
community legal centres in drafting kits and
fact sheets has been an innovative measure
promoting a greater understanding of how
the law is meant to operate and ensuring that
those who need justice have a mechanism for
obtaining it.
Our National Manager, Pro Bono Services,
is a panel member of the LawHelp pro
bono referral scheme which AGS helped
establish with the Office of the Registrar of
Indigenous Corporations (ORIC). LawHelp
assesses applications for pro bono assistance
by not-for-profit corporations registered
under the Corporations (Aboriginal and Torres
Strait Islander) Act 2006. AGS continued to
be involved in matters referred through
the LawHelp scheme, providing pro bono
legal assistance mainly relating to various
commercial transactions.
International work
AGS’s pro bono program also extends
internationally and includes well-established
training courses for lawyers of the Papua New
Guinea Department of Justice and Attorney
General. In the last year, we continued our
biannual training program which covered
areas such as advice-writing and presentation
skills. AGS also continued to provide pro bono
legal support to the PNG Family and Sexual
Violence Case Management Centre based in
Lae on a range of issues.
ENVIRONMENTAL PERFORMANCE
Under s 516A of the Environment Protection
and Biodiversity Conservation Act 1999, AGS is
required to report on ecologically sustainable
development and environmental matters.
As a specialist legal practice we provide
services to client agencies to assist
them with their operations, including
ecologically sustainable development and
environmental work.
45
The major impact of AGS’s business operations
on the environment relates to resource usage
in leased office accommodation.
Environmental policy
We acknowledge our responsibility to
Government and the wider community to
limit the negative impact of our operations on
the environment. Our internal environmental
policy details a range of initiatives that can be
adopted by AGS corporately and by individual
employees.
These include energy management, waste
and recycling, water conservation and
environmentally considered purchasing.
To help us implement these initiatives, we
have a national network of environment
contacts and greening groups, made up of
employees who volunteer their time to assist
with environmental initiatives.
RECONCILIATION AT AGS
AGS’s Reconciliation Action Plan focused on
a range of issues this year. We continue to
recognise the traditional custodians of this
land through acknowledging country at
significant external events, inviting elders to
conduct welcomes to country, screening films
in some of our offices on Aboriginal and Torres
Strait Islander issues and holding events in
our offices to celebrate National Reconciliation
Week and NAIDOC Week.
Five of our lawyers attended the Bridge
Walk in Canberra on National Sorry Day
and we held a number of events during
Reconciliation Week and NAIDOC Week in
AGS offices around the country. We held 2
presentations in Canberra that other offices
joined by videoconference on Constitutional
Recognition of Indigenous People. Some of our
clients were invited to these presentations.
The presentations were given by Tim
Goodwin, a Melbourne barrister and a
member of the Yuin people of the South
Coast of New South Wales. A number of our
staff attended courses in Indigenous art and
46
Indigenous cooking that were hosted by
AGD at lunchtimes over a 6-week period. Our
Melbourne office hosted a guided Aboriginal
heritage walk for AGS staff and clients in the
Melbourne Botanical Gardens.
AGS has a proven track record of providing
pro bono legal services to Aboriginal and
Torres Strait Islander organisations. AGS is
a panel member of the LawHelp pro bono
referral scheme which we helped establish
with ORIC.
An Aboriginal staff member attended the
Indigenous Law Conference during the year.
In addition we provided a scholarship to an
Aboriginal law student at the University
of New South Wales and employment on a
casual basis in our Sydney Office.
We display Aboriginal and Torres Strait
Islander artwork in our buildings. This year
we purchased a new artwork by Emma
Daniels through her agent, Tangentyere
Artists. We subscribe to Aboriginal and Torres
Strait Islander newspapers and are increasing
our Indigenous titles in our Library.
We offer free training places to Aboriginal and
Torres Strait Islander law students and clients
from our extensive training offerings.
47
AGS at work
Significant matters in AGS State and
Territory offices
A snapshot of the work being done by AGS offices
around the country reveals a large and varied
range of significant matters.
We include here a sample of matters largely
worked on by AGS offices in the State and
Territory capitals in 2014–15.
SEA 1000 Future Submarines Project
Lawyers from our Melbourne, Canberra and
Adelaide offices are working together to provide
probity advice to the Department of Defence’s
Capability Acquisition and Sustainment Group
on the SEA 1000 Future Submarine Program and
specifically the Competitive Evaluation Process to
select an international partner to develop a future
submarine that meets Australia’s naval capability
requirements.
AGS acted as the Commonwealth’s probity
advisers on the Medibank Private IPO. Our
team was led from our Melbourne office, with
significant contributions also made by our Sydney
and Canberra offices. See page 13.
Australian Sports Anti-doping Authority
(ASADA) v Essendon
AGS’s work for ASADA in relation to Essendon
Football Club is covered in detail on page 16.
AGS lawyers who worked on these matters were
drawn from our Melbourne and Canberra offices.
Informed Sources
Lawyers from our Adelaide, Melbourne and
Canberra offices provided probity advice to
Department of Defence’s Capability Acquisition
and Sustainment Group on aspects of the
$8 billion Air Warfare Destroyer Project.
AGS lawyers in Canberra, Melbourne and Adelaide
are acting for the Australian Competition and
Consumer Commission (ACCC) in the Informed
Sources matter – a case dealing with an
information-sharing service that major petrol
retailers subscribe to. The ACCC alleges that the
use of the service has the effect or likely effect
of substantially lessening competition in the
Melbourne petrol market.
Western Sydney Airport
DHA documents and guidelines
Air Warfare Destroyer
A team of AGS lawyers drawn from our
Melbourne, Sydney, Adelaide and Canberra offices,
and across our Commercial, Dispute Resolution
and Office of General Counsel practices, advised
on a range of issues associated with the
Western Sydney Airport project being run by
the Department of Infrastructure and Regional
Development, including site, planning, tenancy
and environmental considerations, regulatory,
procurement and process issues, as well as
broader strategic issues for the project.
48
Medibank Private Initial Public Offer (IPO)
Our Darwin and Perth offices worked together
on a suite of documents and guidelines to be
used by Defence Housing Australia’s national
development team for development land
acquisitions. Our Adelaide, Melbourne, Hobart,
Brisbane, Canberra and Sydney offices provided
jurisdiction-specific input.
Muirhead Project
A team of AGS Commercial lawyers from Darwin,
Perth and Adelaide dealt with more than 550
new acquisition, sale and leaseback, leasing
and disposal matters, and managed the issue of
contracts and settlements for 200 lots of land
sold for Defence Housing Australia as part of the
Muirhead Project in the Northern Territory.
Rockingham and Seaward Village
redevelopments
Shen Neng 1
Our Darwin and Perth offices advised Defence
Housing Australia on issues associated with the
redevelopment of residential caravan parks in
Rockingham, Western Australia.
AGS advised on a civil claim in the Federal
Court for damages arising from the largest ship
ever to ground on the Great Barrier Reef – Shen
Neng 1. Our team on this matter was drawn
from our Brisbane office.
Tobacco plain packaging
Live cattle exports
ACMA v Today FM
False imprisonment claim
Work on tobacco plain packaging continued
in the international arena during 2014–15. AGS
staff from our Sydney, Melbourne, Canberra and
Brisbane offices worked on hearings relating
to international challenges to plain packaging
measures.
Lawyers from our Sydney office worked on the
successful High Court appeal in the matter of
Australian Communications and Media Authority
v Today FM (Sydney) Pty Ltd (Today FM), covered in
detail on page 9.
Royal Commission into Institutional
An AGS team on long-term outpost as the
Solicitor Assisting the Royal Commission into
Institutional Responses to Child Sexual Abuse
included lawyers from our Sydney, Canberra and
Adelaide offices.
Lindt Café Siege Coronial Inquest
AGS acted for a range of Commonwealth agencies
– including Australian Security Intelligence
Organisation, the Australian Federal Police,
Department of Defence and Attorney-General’s
Department – in the coronial inquest into the
deaths arising from the Lindt Café siege. Our
national team consisted of lawyers from our
Sydney and Canberra offices.
AGS acted for the Commonwealth and former
Minister Ludwig in representative proceedings
arising from the suspension of live cattle exports
in June 2011. The AGS team on this matter
included lawyers from Canberra, Brisbane, Perth,
Melbourne and Adelaide.
Our Perth office advised on a matter for the
Department of Immigration and Border
Protection, in which the Commonwealth was
successful in its argument that the applicant
should only be awarded nominal damages for his
false imprisonment. That decision was appealed
by the applicant and the Full Court of the Federal
Court dismissed the appeal and upheld the
Commonwealth’s appeal in relation to an award
of exemplary damages. Note – special leave to
appeal has been granted in relation to this matter.
Nauru and Papua New Guinea regional
processing centres
AGS lawyers in Melbourne, Sydney and Canberra
acted in matters relating to a challenge to
the validity of the regional processing centres
in Nauru and Papua New Guinea, as well as
managing claims for damages for persons
transferred to those centres in a variety of State
and federal courts.
49
AGS at work
Di Horton
Tiff Brown
Justine Knowles
Clare Derix
Danielle Gatehouse
Matthew Walsh
AGS Australia Day Awards 2015
Each year, our Australia Day Awards recognise the outstanding achievements and significant
contributions to AGS by staff across Australia. Recipients of this year’s awards follow.
Di Horton, IT Contracts Manager, IT Services – in recognition of her outstanding client service and
commitment to AGS.
Tiff Brown, Corporate Communications Production Manager, Client Services – in recognition of
her outstanding client service within AGS and to our clients.
Justine Knowles, Senior Executive Lawyer, AGS Dispute Resolution – in recognition of her strategic
advice to the Defence Department and the Australian Electoral Commission.
Clare Derix, Senior Executive Lawyer, AGS Commercial – in recognition of her outstanding
contribution to the Drought Concessional Loans Scheme and Farm Finance Concessional Loans
with Department of Agriculture.
Danielle Gatehouse, Senior Lawyer, AGS Dispute Resolution – in recognition of her
professionalism, particularly in coordinating the ACCC unconscionable conduct proceedings
against Coles Supermarkets from 2012 until mid-2014.
Matthew Walsh, National Client Service Manager, Australian Taxation Office – in recognition of
his outstanding commitment and service to the ATO.
Kathryn Gordon, Senior Lawyer, AGS Dispute Resolution – in recognition of her outstanding
work, particularly in coordinating the ACCC unconscionable conduct proceedings against Coles
Supermarkets in 2014.
Fiona Dempsey, Senior Lawyer, AGS Dispute Resolution – in recognition of her excellent client
service, and her supervision and mentoring of AGS lawyers.
Tony Giugni, Senior Executive Lawyer, AGS Dispute Resolution – in recognition of his outstanding
work as Solicitor Assisting the Royal Commission into Institutional Responses to Child Sexual
Abuse.
Dr Genevieve Ebbeck, Senior General Counsel, Office of General Counsel – in recognition of her
ongoing outstanding contribution to AGS’s immigration advising practice and support to the
leadership of OGC.
50
Kathryn Gordon
Fiona Dempsey
Tony Giugni
Dr Genevieve Ebbeck
Teams
Legal Technology Solutions team – Quynh Huynh, Tony Ferguson, Ana Sumanovic, Noel Finden and
Ulrich Adami – in recognition of outstanding work and commitment to supporting legal teams.
National IT Service Desk team – Nikki Peever, Antony Spence, Richard Forrest, Moses Choy,
Dean Reid, Susan Nguyen and Ryan Andersen – in recognition of outstanding work and
commitment to supporting legal teams.
Home Insulation Program team – Tom Howe PSM QC, Damien O’Donovan, Louise Rafferty,
Laura Armstrong, Rebecca Daumont, Sam Thorpe, Alison Thompson, Kristy Alexander,
Antony Spence and Quynh Huynh – in recognition of their outstanding commitment to service
delivery and teamwork in support of government.
Essendon and Hird v ASADA Federal Court team – Craig Rawson, Cherie Canning, Melissa Gangemi,
Chris McDermott, Cathy Mayne, Tom Howe PSM QC, Kim Bennett and Justin Davidson – in
recognition of the exceptional work in running this significant and high-profile matter in an
extraordinarily collegiate way, under enormous time pressures, and delivering an excellent result
for our client.
OGC’s support staff – Carol Benda, Marilyn Leverink, Kristina Nocevska, Jess West, Vicki Cronan,
Lydia Dadswell, Noemi Di Giannicola, Erin Kelly, Trang Nguyen, Rosanna Pangallo,
Elizabeth Permalloo and Ana Silva – in recognition of their outstanding teamwork and
professionalism in providing OGC lawyers with exemplary legal support.
Williams No. 2 team – Guy Aitken, Leo Hardiman, Jenny Burnett, Mark Molloy, Damian Page,
Hilary Manson, Bridget Gilmour-Walsh, Tara McNeilly, Robyn Briese, Olivia Abbott, Sam Arnold,
Andrew Chapman, Helen Chisholm, Steffen Etherton, Michael O’Rourke and Emilie Sutton – in
recognition of their outstanding work in completing 2 tranches of constitutional risk assessments
of departmental programs for 15 departments in very tight timeframes in the wake of the High
Court’s decision in Williams v Commonwealth No.2.
G20 team – Tony Beal, Denise Bond, Kate Brophy, Garth Cooke, Helen Curtis, Katy Grimes,
Cathy He, Stuart Hilton, Andrew Miles, Joanna Piva, Phil Sedgley-Perryman, Adrian Snooks,
Aleksandra Spasenoska, Lillian Riches, Vlasia Pappas, Michelle Eames, Michelle Rothall,
Elena Arduca, Chris Behrens, Melita Parker, Leo Hardiman, Olivia Abbott, Liam Boyle, Adam Cason,
Steffen Etherton and Sarah Spottiswood – in recognition for the outstanding support provided to
government during the G20 meeting in Brisbane.
Privatisation of Medibank team – John Scala, Garth Cooke, Paul Lang, Stuart Hilton, Brett Gulley,
Michelle Eames, Tanya Ferrari, Clare Derix and Kate Brophy – in recognition for the outstanding
legal work provided to government in the privatisation of Medibank.
51
52
PART 3
financial
statements
53
54
55
AUSTRALIAN GOVERNMENT SOLICITOR
STATEMENT BY ACCOUNTABLE AUTHORITY, CHIEF EXECUTIVE OFFICER AND
CHIEF FINANCIAL OFFICER
In our opinion, the attached financial statements for the year ended 30 June 2015 comply
with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013
(PGPA Act), and are based on properly maintained financial records as per subsection 41(2)
of the PGPA Act.
These are the final financial statements of Australian Government Solicitor as a separate
reporting entity as it was abolished on 1 July 2015. The functions are continuing in the
Attorney-General’s Department.
The Attorney-General’s Department will be able to meet the debts of the ceased entity as
and when they fall due.
Chris Moraitis PSM Stuart Rankin
Attorney-General’s Department
Chief Financial Officer
Accountable Authority Secretary, 24 August 2015
24 August 2015
Ian Govey AM
The Australian Government Solicitor
(formerly Chief Executive Officer, Australian Government Solicitor)
24 August 2015
56
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2015
Notes
Year ended
30 June 2015
$'000
Year ended
30 June 2014
$'000
INCOME
Revenue
Sale of goods and rendering of services
4A
117,291
109,206
Interest
4B
1,395
1,437
Other revenues
4C
Total revenue
2,903
2,074
121,589
112,717
296
–
121,885
112,717
Gains
Reversals of previous asset write-downs
and impairments
4D
Total income
EXPENSES
Employee benefits
5A
85,950
83,913
Suppliers
5B
21,197
19,834
Depreciation and amortisation
5C
3,423
2,739
Losses from asset sales
5D
55
91
Write-down and impairment of assets
5E
781
29
Other expenses
6
Total expenses
Profit before income tax
Income tax expense
7
Profit after income tax
473
448
111,879
107,054
10,006
5,663
9,771
1,748
235
3,915
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to profit or loss
Changes in asset revaluation reserves
275
–
Total comprehensive income attributable to the Australian
Government
510
3,915
The above schedule should be read in conjunction with the accompanying notes.
57
STATEMENT OF FINANCIAL POSITION
as at 30 June 2015
Notes
30 June 2015
$'000
Cash and cash equivalents
9A
31,573
10,948
Investments under s59 of the PGPA Act
9B
–
19,807
Receivables
10
32,905
29,437
Other current assets
11
1,877
2,332
66,355
62,524
30 June 2014
$'000
ASSETS
Current assets
Total current assets
Non-current assets
Infrastructure, plant and equipment
12A, C
16,889
18,523
Intangibles
12B, C
3,238
1,717
–
6,489
Total non-current assets
20,127
26,729
Total assets
86,482
89,253
18,585
13,554
Deferred tax asset
7
LIABILITIES
Current liabilities
Payables
13
Lease incentives
14
1,142
1,142
Provisions
15
26,794
23,995
46,521
38,691
Total current liabilities
Non-current liabilities
Lease incentives
14
7,520
8,662
Provisions
15
6,036
5,842
Total non-current liabilities
13,556
14,504
Total liabilities
60,077
53,195
Net assets
26,405
36,058
22,918
22,918
902
638
2,585
12,502
26,405
36,058
EQUITY
Contributed equity
Reserves
Retained earnings
Total equity
58
STATEMENT OF CHANGES IN EQUITY
Retained
earnings
Asset revaluation
reserve
2015
$'000
2014
$'000
12,502
11,009
638
–
–
235
Total comprehensive income
2015
$'000
Contributed
equity
Total
equity
2015
$'000
2014
$'000
2015
$'000
2014
$'000
4,788
22,918
22,918
36,058
38,715
275
–
–
–
275
–
3,915
–
–
–
–
235
3,915
235
3,915
275
–
–
–
510
3,915
(10,163)
(6,572)
–
–
–
– (10,163)
(6,572)
(10,163)
(6,572)
–
–
–
– (10,163)
(6,572)
11
4,150
(11)
(4,150)
–
–
–
–
2,585
12,502
902
638
22,918
22,918
26,405
36,058
2014
$'000
Opening balance
Balance carried forward from
previous years
Comprehensive income
Other comprehensive income
Revaluation adjustment
Transactions with owners
Distributions to owners
Returns on capital
Dividends
Total transactions with owners
Transfer between equity
components
Closing balance as at 30 June
59
STATEMENT OF CASH FLOWS
Notes
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
OPERATING ACTIVITIES
Cash received
Legal fees and reimbursements by clients
162,736
152,300
Interest
1,642
1,777
Other cash received
2,903
2,074
167,281
156,151
Employees
(83,935)
(84,877)
Suppliers
(54,973)
(54,618)
(1,496)
(2,494)
(10,133)
(9,001)
Total cash received
Cash used
Income taxes paid
Net GST paid
Other
(474)
(450)
(151,011)
(151,440)
16,270
4,711
Purchase of plant and equipment
(3,603)
(10,716)
Total cash used
(3,603)
(10,716)
Net cash used by investing activities
(3,603)
(10,716)
Lease incentives received
–
1,911
Total cash received
–
1,911
Total cash used
Net cash from operating activities
16
INVESTING ACTIVITIES
Cash used
FINANCING ACTIVITIES
Cash received
Cash used
Dividends paid
(11,849)
(4,723)
Total cash used
(11,849)
(4,723)
Net cash used by financing activities
(11,849)
(2,812)
818
(8,817)
30,755
39,572
31,573
30,755
Net decrease in cash held
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period1
9
Total cash and cash equivalents includes investments under section 59 of the Public Governance,
Performance and Accountability Act 2013.
1
60
SCHEDULE OF COMMITMENTS
as at 30 June 2015
30 June 2015
BY TYPE
$'000
30 June 2014
$'000
Commitments receivable
Sublease rental income
2,829
3,872
Net GST recoverable on commitments
7,791
9,823
10,620
13,695
Total commitments receivable
Other commitments
Operating leases1
Total other commitments
Net commitments by type
93,149
103,459
93,149
103,459
82,529
89,764
975
1,695
1,854
2,177
BY MATURITY
Commitments receivable
Operating lease income
Within 1 year
Between 1 to 5 years
More than 5 years
–
–
Total operating lease income
2,829
3,872
Within 1 year
1,023
1,054
3,377
4,452
More than 5 years
3,391
4,317
Total other commitments receivable
7,791
9,823
10,620
13,695
Within 1 year
11,231
12,010
43,842
44,206
More than 5 years
38,076
47,243
Total operating lease commitments
93,149
103,459
93,149
103,459
82,529
89,764
Other commitments receivable
Total commitments receivable
Commitments payable
Operating lease commitments
Total commitments payable
Net commitments by maturity
1
Operating leases included are effectively non-cancellable and comprise:
Commitments are GST inclusive where relevant.
Nature of lease
General description of leasing arrangement
Leases for office accommodation
Lease payments are subject to annual or bi-annual
review, either to market or be fixed increases as set out
in the individual leases.
Agreements for the provision of motor vehicles
for senior executives
No contingent rentals exist. There are no renewal or
purchase options available to AGS.
Agreements for the provision of office
equipment
Office equipment includes photocopiers and office
machines and are leased over periods of 1 to 5 years at
fixed payments.
61
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
Description
1
Summary of significant accounting policies
2
Segment reporting
3
Events occurring after Balance Sheet date
4Income
5Expenses
6
Other expenses
7
Income tax
8
Dividends provided for and paid
9
Cash, cash equivalents and investments
10Receivables
11 Other current assets
12 Non-current assets
13Payables
14 Lease incentives
15Provisions
16 Cash flow reconciliation
17 Client and third party funds
18 Contingent liabilities and assets
19 Key management personnel remuneration
20 Remuneration of auditors
21 Financial instruments
22 Fair value measurements
> 1.
S
ummary of significant accounting
policies
1.1 Objective of Australian Government Solicitor
For the financial year, Australian Government Solicitor
(AGS) was a for-profit Australian Government controlled
entity and a leading provider of legal and related services
to Australian Government departments and agencies.
Operating on a fully commercial and competitive basis,
AGS has an office in every capital city.
AGS was a corporate Commonwealth entity, within
the Attorney-General’s portfolio, established under the
Judiciary Act 1903. AGS was subject to the reporting and
accountability requirements of the Public Governance,
Performance and Accountability Act 2013 (PGPA Act).
AGS was also a government business enterprise as
prescribed by regulations made under the PGPA Act.
AGS had 2 shareholder ministers, the Attorney-General
and the Minister for Finance.
From 1 July 2015, AGS will cease to be a government
business enterprise and will be consolidated into the
Attorney-General’s Department. Following consolidation,
AGS will not operate as a government business enterprise.
AGS acts primarily for Australian Government
departments and agencies, and for entities in which the
Australian Government has an interest. AGS also acts for
State and Territory government organisations at their
executive government’s request.
1.2 Basis of preparation of the financial statements
The financial statements are general purpose financial
statements and are required by section 42 of the PGPA
Act. The financial statements are prepared on the
assumption that the assets and liabilities will be realised
in the normal course of business.
The financial statements have been prepared in
accordance with:
• Finance Reporting Rule (FRR) for reporting periods
ending on or after 1 July 2014
• Australian Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board
(AASB) that apply for the reporting period.
The financial statements have been prepared on an
accrual basis and are in accordance with historical cost
convention, except for certain assets and liabilities at fair
value. Except where stated, no allowance is made for the
effect of changing prices on the results or the financial
position.
The financial statements are presented in Australian
dollars and values are rounded to the nearest thousand
dollars unless otherwise specified.
Unless an alternative treatment is specifically required by
an accounting standard or the FRR, assets and liabilities
are recognised in the statement of financial position
when and only when it is probable that future economic
benefits will flow to AGS or a future sacrifice of economic
benefits will be required and the amounts of the assets
62
or liabilities can be reliably measured. However, assets
and liabilities arising under executory contracts are not
recognised unless required by an accounting standard.
Liabilities and assets that are unrecognised are reported
in the schedule of commitments and the schedule of
contingencies note.
Unless alternative treatment is specifically required
by an accounting standard, income and expenses are
recognised in the Statement of Comprehensive Income
when and only when the flow, consumption or loss
of economic benefits has occurred and can be reliably
measured.
At the Mid-Year Economic Fiscal Outlook, the
Government decided that AGS should be consolidated
within the Attorney-General’s Department (AGD). The
Judiciary Amendment Act 2015 was passed on 16 June
2015 that enabled this consolidation to take effect
on 1 July 2015. Following consolidation, AGS no longer
operates as a government business enterprise and as a
result the entity is no longer a going concern following
the wind-up and transfer of all its assets, liabilities and
records to AGD.
This set of financial statements has been prepared
on the basis that the essential functions of AGS will
continue within AGD from 1 July 2015.
During the current year, AGS restated the comparative
balance of Net Commitments from $83,122,000 to
$89,764,000.
1.3 Significant accounting judgments and estimates
In the process of applying the accounting policies listed
in this note, AGS has made the following judgments
that have the most significant impact on the amounts
recorded in the financial statements:
The fair value of leasehold improvements has been
taken to be the market value of similar properties as
determined by an independent valuer.
The liability for long service leave has been determined
by reference to the shorthand method prescribed in the
FRR as at 30 June 2015. The estimate of the present value
of the liability takes into account attrition rates and pay
increases through promotion and inflation.
Infrastructure, plant and equipment are carried at
fair value less subsequent accumulated depreciation
and accumulated impairment losses. Valuations are
conducted with sufficient frequency to ensure that
the carrying amounts of assets do not materially differ
with the assets’ fair values as at the reporting date. The
regularity of independent valuations depends upon the
volatility of movements in market values for the relevant
assets.
No accounting assumptions or estimates have been
identified that have a significant risk of causing a
material adjustment to carrying amounts of assets and
liabilities within the next reporting period.
1.4 New Accounting Standards
Adoption of new Australian Accounting Standard
requirements
No accounting standard has been adopted earlier than
the application date as stated in the standard.
No new or revised standards, amending standards or
interpretations that were issued prior to signing of
the statement by the Chief Executive Officer and Chief
Finance Officer which are applicable to the current
reporting period have a financial impact, or are expected
to have a future financial impact on AGS.
Future Australian Accounting Standard requirements
No new or revised standards, amending standards or
interpretations that were issued prior to signing of
the statement by the Chief Executive Officer and Chief
Finance Officer which are applicable to the future
reporting periods are expected to have a future financial
impact on AGS.
1.5 Revenue
Revenue from the provision of legal services is recognised
when time is recorded on matters, as the amounts of
revenue can be reliably measured and it is probable that
economic benefits will flow to AGS.
Interest revenue is recognised using the effective interest
method as set out in AASB 139 Financial instruments:
Recognition and measurement.
Other revenue is recognised when received or due
and receivable. Recoveries of disbursements and the
associated expense have been recognised in the financial
statements. AGS incurs expenses on behalf of clients
associated with the provision of legal services. These
expenses total $31,961,000 ($25,594,000 for the year
ended 30 June 2014) and are billed to the clients on a
cost-recovery basis. They are disclosed in Notes 4A and 5B
and the flow of funds is shown in the Statement of Cash
Flows.
Revenue from disposal of non-current assets is recognised
when control of the asset has passed to the buyer.
Receivables for goods and services, which have 30-day
terms, are recognised at the nominal amounts due less
any impairment allowance account. Collectability of debts
is reviewed at balance date. Allowances are made when
collectability of the debt is no longer probable.
1.6 Gains
Sales of assets
Gains from disposal of assets are recognised when control
of the asset has passed to the buyer.
Valuations
Any revaluation increment is credited to equity under
the heading of asset revaluation reserve except to the
extent that it reverses a previous revaluation decrement
of the same asset that was previously recognised through
operating result (refer Note 1.17).
63
1.7 Transactions with the Australian Government
as owner
At 30 June 2015, AGS has provided a liability for a final
dividend for the current year. The amount and timing of
the final dividend payment was agreed by shareholder
Ministers (refer Note 8).
1.8 Employee benefits
Benefits
Liabilities for short-term employee benefits (as defined
by AASB 119 Employee benefits) and termination benefits
due within 12 months of the end of reporting period are
measured at their nominal amounts.
The nominal amount is calculated with regard to the
rates expected to be paid on settlement of the liability.
Other long-term employee benefits are measured as
net total of the present value of the defined benefit
obligation at the end of the reporting period minus
the fair value at the end of the reporting period of plan
assets (if any) out of which the obligations are to be
settled directly.
Leave
The liability for employee entitlements includes
provision for recreation leave and long service leave. No
provision has been made for sick leave as all sick leave is
non-vesting and the average sick leave taken in future
years by employees of AGS is estimated to be less than
the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of
employees’ remuneration at the estimated salary rates
that will apply at the time the leave is taken, including
AGS’s employer superannuation contribution rates to
the extent that the leave is likely to be taken during
service rather than paid out on termination.
The liability for long service leave has been determined
by reference to the shorthand method prescribed in the
FRR as at 30 June 2015. The estimate of the present value
of the liability takes into account attrition rates and pay
increases through promotion and inflation.
Separation and redundancy
Provision is made for separation and redundancy
payments. AGS recognises a provision for termination
when it has developed a detailed formal plan for the
terminations and has informed those employees
affected that it will carry out the terminations.
Provision for separation and redundancy payable of
$690,000 was made at 30 June 2015 ($458,000 in 2014).
64
nomination by the employee, a scheme nominated by
AGS.
The CSS and PSS are defined benefit schemes for the
Australian Government. Other super schemes are defined
contribution schemes.
The liability for defined benefits is recognised in the
financial statements of the Australian Government and
is settled by the Australian Government in due course.
This liability is reported by the Department of Finance’s
administered schedule and notes.
AGS makes employer contributions to the employee
superannuation schemes of:
• the Australian Government, at rates determined by an
actuary to be sufficient to meet the current cost to the
Government. AGS accounts for the contributions as if
they were contributions to defined contribution plans.
• non-Australian Government funds, as determined by
the current AGS certified agreement.
The liability for superannuation recognised as at
30 June represents outstanding contributions for the final
fortnight of the year.
1.9 Leases
A distinction is made between finance leases and
operating leases. Finance leases effectively transfer from
the lessor to the lessee substantially all the risks and
rewards incidental to ownership of leased non-current
assets. An operating lease is a lease that is not a finance
lease. In operating leases, the lessor effectively retains
substantially all such risks and benefits.
Where an asset is acquired by means of a finance lease,
the asset is capitalised at either the fair value of the lease
property or, if lower, the present value of minimum lease
payments at the inception of the contract and a liability
recognised at the same time and for the same amount.
The discount rate used is the interest rate implicit in the
lease. Leased assets are amortised over the period of the
lease. Lease payments are allocated between the principal
component and the interest expense.
Operating lease payments are expensed on a straight line
basis which is representative of the pattern of benefits
derived from the leased assets.
Lease incentives taking the form of ‘free’ leasehold
improvements and rent holidays are recognised as
liabilities. These liabilities are reduced by allocating lease
payments between rental expense and reduction of the
liability.
In addition a current provision for separation and
redundancy of $458,000 was made at 30 June 2015
(non-current provision of $401,000 in 2014).
1.10 Borrowing costs
Superannuation
Employees of AGS are members of the Commonwealth
Superannuation Scheme (CSS), the Public Sector
Superannuation Scheme (PSS), or to a scheme
determined by the employee, or in default of
1.11 Fair value measurement
All borrowing costs are expensed as incurred. During the
year AGS had no loans.
AGS deems transfers between levels of the fair value
hierarchy to have occurred at the end of the reporting
period.
1.12 Cash
Cash is recognised at its nominal amounts.
Cash and cash equivalents includes:
• cash on hand
• demand deposits in bank accounts with an original
maturity of 3 months or less that are readily
convertible to known amounts of cash and subject to
insignificant risk of changes in value.
Cash and cash equivalents include investments under
section 59 of the PGPA Act.
1.13 Financial assets
AGS classifies its financial assets in the following
categories:
• held-to-maturity investments
• receivables.
The classification depends on the nature and purpose
of the financial assets and is determined at the time of
initial recognition.
Financial assets are recognised and derecognised upon
trade date.
Effective interest method
The effective interest method is a method of calculating
the amortised cost of a financial asset and of allocating
interest income over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the
financial asset, or, where appropriate, a shorter period.
Income is recognised on an effective interest rate basis
except for financial assets that are recognised at fair
value through profit or loss.
Held-to-maturity investments
Non-derivative financial assets with fixed or
determinable payments and fixed maturity dates
that AGS has the positive intent and ability to hold to
maturity are classified as held-to-maturity investments.
Held-to-maturity investments are recorded at
amortised cost using the effective interest method less
impairment, with revenue recognised on an effective
yield basis.
Receivables
Trade receivables and other receivables that have fixed
or determinable payments that are not quoted in an
active market are classified as ‘loans and receivables’.
Receivables are measured at amortised cost using the
effective interest method less impairment. Interest is
recognised by applying the effective interest rate.
Impairment of financial assets
Financial assets are assessed for impairment at the end
of each reporting period.
Financial assets held at amortised cost – If there is
objective evidence that an impairment loss has been
incurred for loans and receivables or held to maturity
investments held at amortised cost, the amount of the
loss is measured as the difference between the asset’s
carrying amount and the present value of estimated
future cash flows discounted at the asset’s original
effective interest rate. The carrying amount is reduced by
way of an allowance account. The loss is recognised in the
Statement of Comprehensive Income.
1.14 Financial liabilities
Financial liabilities are classified as other financial
liabilities.
Financial liabilities are recognised and derecognised upon
trade date.
Other financial liabilities
Other financial liabilities are initially measured at
fair value, net of transaction costs. These liabilities
are subsequently measured at amortised cost using
the effective interest method, with interest expense
recognised on an effective yield basis.
Other financial liabilities are subsequently measured at
amortised cost using the effective interest method, with
interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash payments through the expected life of the
financial liability, or, where appropriate, a shorter period.
Supplier and other payables are recognised at amortised
cost. Liabilities are recognised to the extent that the
goods or services have been received (and irrespective of
having been invoiced).
1.15 Contingent liabilities and contingent assets
Contingent Liabilities and Contingent Assets are not
recognised in the Balance Sheet but are reported in
the relevant schedules and notes. They may arise from
uncertainty as to the existence of a liability or asset or
represent an asset or liability in respect of which the
amount cannot be reliably measured. Contingent assets
are disclosed when settlement is probable but not
virtually certain and contingent liabilities are disclosed
when settlement is greater than remote.
1.16 Acquisition of assets
Assets are recorded at cost on acquisition except as stated
below. The cost of acquisition includes the fair value of
assets transferred in exchange and liabilities undertaken.
Financial assets are initially measured at their fair value
plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration,
are initially recognised as assets and income at their fair
value at the date of acquisition.
65
1.17 Infrastructure, plant and equipment
Asset recognition threshold
Purchases of infrastructure, plant and equipment are
recognised initially at cost in the Statement of Financial
Position, where the equipment has a useful economic
life greater than 12 months and the type of asset
collectively represents a significant investment of AGS
funds. Other purchases are expensed in the year of
acquisition.
The initial cost of an asset includes an estimate
of the cost of dismantling and removing the item
and restoring the site on which it is located. This is
particularly relevant to ‘make-good’ provisions in
property leases taken up by AGS where there exists
an obligation to restore the property to its original
condition. These costs are included in the value of AGS
leasehold improvements with a corresponding provision
for the ‘make-good’ recognised.
Revaluations
Following initial recognition at cost, infrastructure,
plant and equipment is carried at fair value. Valuations
are conducted with sufficient frequency to ensure that
the carrying amounts of assets do not materially differ
with the assets’ fair values as at the reporting date. The
regularity of independent valuations depends upon the
volatility of movements in market values for the relevant
assets.
Any revaluation increment is credited to equity under
the heading of asset revaluation reserve except to the
extent that it reverses a previous revaluation decrement
of the same asset that was previously recognised
through operating result. Revaluation decrements for
each asset are recognised directly through operating
result except to the extent that they reverse a previous
revaluation increment for that asset.
Any accumulated depreciation as at the revaluation
date for Library and Infrastructure, plant and equipment
assets are eliminated against the gross carrying amount
and the asset restated to the revalued amount.
Any accumulated depreciation as at the revaluation date
for Leasehold assets is restated proportionately with
the change in the gross carrying amount of the asset so
that the carrying amount of the asset after revaluation
equals its revalued amount.
Depreciation
Depreciable infrastructure, plant and equipment assets
are written-off to their estimated residual values over
their estimated useful lives to AGS using, in all cases,
the straight-line method of depreciation. Leasehold
improvements are depreciated on a straight-line basis
over the lesser of the estimated useful life of the
improvements or the unexpired period of the lease.
Depreciation rates (useful lives), residual values and
methods are reviewed at each reporting date and
necessary adjustments are recognised in the current, or
current and future reporting periods, as appropriate.
Depreciation rates applying to each class of depreciable
asset are based on the following useful lives:
2014–15
2013–14
Library
7–10 years
7–10 years
Leasehold improvements
lease term
lease term
– computer equipment
3–7 years
3–7 years
– other plant and equipment
5–10 years
5–15 years
Other infrastructure, plant and
equipment
The aggregate amount of depreciation allocated for each
class of asset during the reporting period is disclosed in
Note 5C.
Impairment
All assets were assessed for impairment at 30 June
2015. Where indications of impairment exist, the asset’s
recoverable amount is estimated and an impairment
adjustment made if the asset’s recoverable amount is less
than its carrying amount.
The recoverable amount of an asset is the higher of its fair
value less costs to sell and its value-in-use. Value-in-use
is the present value of the future cash flows expected to
be derived from the asset. Where the future economic
benefit of an asset is not primarily dependent on the
asset’s ability to generate future cash flows, and the asset
would be replaced if AGS were deprived of the asset, its
value-in-use is taken to be its depreciated replacement
cost.
No indicators of impairment were found for assets at fair
value.
Derecognition
An item of property, plant and equipment is derecognised
upon disposal or when no further future economic
benefits are expected from its use or disposal.
1.18 Intangibles
AGS intangibles comprise internally developed software
for internal use and purchased software. These assets are
carried at cost.
Software is amortised on a straight-line basis over its
anticipated useful life. The useful life of AGS’s software is
3–7 years (2013–14: 3–7 years).
All software assets were assessed for indications
of impairment as at 30 June 2015. No indicators of
impairment were found.
1.19 Taxation / competitive neutrality
AGS is exempt from all State and Territory taxation. It is
liable for Income Tax, Fringe Benefits Tax and for Goods
and Services Tax (GST).
Revenues, expenses and assets are recognised net of GST
except:
• where the amount of GST incurred is not recoverable
from the Australian Taxation Office
• for receivables and payables.
66
Competitive neutrality
So that AGS does not have a competitive advantage
over private sector legal practices, these financial
statements include charges representing the full
value of these items shown under the categories to
which they relate. Amounts identified as competitive
neutrality expenses are paid to Consolidated
Revenue each year and are recorded in the Financial
Statements as a liability to the extent that they are
unpaid at 30 June 2015.
1.20 Insurance
AGS is aware of the potential for losses arising
from its normal operations as a legal practice and
has taken out insurance arrangements designed
to ensure that the risk of adverse effect on the
profits, assets and cash flow is minimised. Workers’
compensation is insured through Comcare Australia.
1.21 Income tax
Current tax assets and liabilities for the current
and prior periods are measured at the amount
expected to be recovered from or paid to the
taxation authorities, based on the current period’s
taxable income. The tax rates and tax laws used to
compute the amount are those that are enacted or
substantively enacted by the reporting date.
Deferred income tax is provided on all temporary
differences at the reporting date between the tax
bases of assets and liabilities and their carrying
amounts for financial reporting purposes.
Deferred income tax assets are recognised for all
deductible temporary differences to the extent that
it is probable that taxable profit will be available
against which the deductible temporary differences
can be utilised.
The carrying amount of deferred income tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred income tax asset to be utilised.
Deferred income tax assets are measured at the tax
rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on
tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are
offset only if a legally enforceable right exists to setoff current tax assets against current tax liabilities
and the deferred tax assets and liabilities relate to the
same taxable entity and the same taxation authority.
The Deferred Tax asset of $6,583,000 at 30 June 2015
has been written-off to income tax expense as AGS
will cease to be a taxpayer from 1 July 2015. As a result
this amount is not recoverable.
> 2. Segment reporting
The principal activity of AGS is the provision of legal
and related services. AGS operates in every Australian
capital city. Each office provides a similar range
of services and serves principally Commonwealth
Government clients. The majority of such services
are provided under nationally negotiated contractual
arrangements.
AGS regards the appropriate unit for segment
reporting to be all legal and related services delivered
by AGS from its Australian offices.
> 3. Events after the reporting period
On 15 December 2014, the Government announced
that it would consolidate AGS within AGD. The
consolidation will take effect from 1 July 2015. This
transaction has not been accounted for in this
financial statement for the year ended 30 June 2015.
In respect of functions assumed, the net book values
of assets and liabilities transferred from AGS to AGD
for no consideration and recognised as at 1 July 2015
are as follows:
AGS assets and liabilities transferred to AGD
at 1 July 2015
$'000
Assets
Financial assets
66,355
Non-financial assets
20,127
Total assets
86,482
Liabilities
Financial liabilities
18,585
Non-financial liabilities
41,492
Total liabilities
60,077
Net assets assumed
26,405
As AGS is an ‘exempting entity’ under the Income
Tax Assessment Act 1997, the Commonwealth, as its
owner, is not entitled to franking credits and AGS is
not required to maintain a franking account.
67
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
Legal fees and disbursements recovered or recoverable on
behalf of clients
149,252
134,800
Disbursements recovered or recoverable on behalf of clients
(refer Note 1.5)
(31,961)
(25,594)
Total operating revenues
117,291
109,206
112,911
105,170
4,380
4,036
117,291
109,206
1,174
1,212
221
225
1,395
1,437
1,401
912
> 4. Income
Note 4A – Sale of goods and rendering of services
Rendering of services in connection with
Related entities
External entities
Total rendering of services
Note 4B – Interest
Deposits in AGS accounts
Deposits in client and third party accounts (refer Note 17)
Total interest
Note 4C – Other revenues
Reimbursements and miscellaneous receipts
Rental income
1,502
1,162
Total other revenues
2,903
2,074
Library
53
–
80
–
Note 4D – Reversals of previous asset write-downs and impairments
Asset revaluation increments from revaluation
Plant and equipment written-up on revaluation
Asset revaluation increments from revaluation
163
–
296
–
63,704
63,290
5,499
5,543
> 5. Expenses
Note 5A – Employee benefits
Wages and salaries
Superannuation
Defined contribution plans
Defined benefit plans
Leave and other entitlements
3,903
6,261
Separation and redundancy
1,298
1,472
Competitive neutrality – state payroll tax equivalence expense
3,245
3,444
85,950
83,913
Total employee benefits
68
4,258
7,946
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
43,432
36,310
(31,961)
(25,594)
5. Expenses (cont.)
Note 5B – Suppliers
Supply of goods and services and disbursements paid or
payable on behalf of clients
Disbursements paid or payable on behalf of clients (refer
Note 1.5)
Property lease rentals – minimum lease payments
8,946
8,109
Surplus lease expense
230
379
Workers’ compensation premiums
433
513
Competitive neutrality – regulatory neutrality expense
Total suppliers
117
117
21,197
19,834
Rendering of services in connection with
Related entities
External entities
Total rendering of services
611
483
20,586
19,351
21,197
19,834
Note 5C – Depreciation and amortisation
Depreciation:
Library
32
32
1,540
1,462
1,432
930
3,004
2,424
419
315
419
315
3,423
2,739
55
91
55
91
(28)
29
Total depreciation
Amortisation:
Intangibles
Computer software
Total amortisation
Total depreciation and amortisation
Note 5D – Losses from asset sales
Net book value of assets disposed
Total losses from asset sales
Note 5E – Write-down and impairment of assets
Impairment loss expense – receivables
Revaluation decrement – Library
Revaluation decrement – Leasehold improvements
56
–
162
–
Revaluation decrement – Infrastructure, plant and equipment
591
–
Total write-down and impairment of assets
781
29
69
> 6. other expenses
Insurance
Competitive neutrality – State insurance duty equivalence
expense
Total other expenses
> 7. Income tax
Prima facie income tax payable on accounting profit at 30%
Tax effect of expenses that are not deductible for tax purposes
(Over) / Underprovision for income tax for prior year
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
424
399
49
49
473
448
3,001
1,699
187
49
–
–
Write-off deferred tax asset not recoverable (refer Note 1.21)
6,583
–
Income tax expense
9,771
1,748
Income tax expense comprises:
(Receivable) / Provision for taxation
1,328
(459)
Provisional tax payments made
2,040
1,867
(86)
–
(Over) / Underprovision for income tax for prior year
Movement in deferred tax asset for current year
(94)
340
Write-off deferred tax asset not recoverable (refer Note 1.21)
6,583
–
Income tax expense
9,771
1,748
–
6,489
Final dividend 2012–13
–
1,723
Special dividend 2012–13
–
2,500
Interim dividend 2013–14
–
500
Deferred tax asset
> 8. Dividends provided for and paid
–
1,849
Interim dividend 2014–15
500
–
Special dividend 2014–15
9,500
–
163
–
10,163
6,572
Cash on hand or on deposit
31,573
10,948
Total cash and cash equivalents
31,573
10,948
Total dividends provided for and paid
> 9. Cash, cash equivalents and investments
Note 9A – Cash and cash equivalents
70
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
–
19,807
Total investments under s59 of the PGPA Act
–
19,807
Total cash, cash equivalents and investments
31,573
30,755
25,070
24,101
9. Cash, cash equivalents and investments (cont.)
Note 9B – Investments under s59 of the PGPA Act
Investments comprise:
erm deposits with an original maturity of greater than
T
3 months and less than 1 year
> 10. Receivables
Goods and services
Less: impairment allowance account
Other debtors
Interest
(458)
(488)
24,612
23,613
8,293
5,577
–
247
8,293
5,824
32,905
29,437
26,346
25,651
– less than 30 days
3,795
2,878
– 30 to 60 days
2,626
683
– 60 to 90 days
396
345
Total receivables (net)
All receivables are expected to be recovered in no more than 12 months.
Receivables (gross) are aged as follows:
Not overdue
Overdue by:
– more than 90 days
200
368
7,017
4,274
33,363
29,925
(458)
(341)
– less than 30 days
–
(13)
– 30 to 60 days
–
(23)
– 60 to 90 days
–
(10)
Total receivables (gross)
The impairment allowance account is aged as follows:
Not overdue
Overdue by:
– more than 90 days
Total impairment allowance account
–
(101)
(458)
(488)
71
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
(488)
(461)
488
461
10. Receivables (cont.)
Reconciliation of the impairment allowance account:
Goods and services
Opening balance
Amounts recovered and reversed
Increase recognised in operating profit
Closing balance
(458)
(488)
(458)
(488)
743
694
> 11. Other current assets
Prepaid property rentals
Prepaid insurance premiums
–
350
Other prepayments
1,134
1,288
Total other current assets
1,877
2,332
296
319
–
(32)
296
287
All other current assets are expected to be realised in the next 12 months.
> 12. Non-current assets
Note 12A – Infrastructure, plant and equipment
Library
Fair value
Accumulated depreciation
Total library
Fair value
20,254
19,749
(7,972)
(6,028)
Total leasehold Improvements
12,282
13,721
4,311
5,438
Other infrastructure, plant and equipment
Fair value
Total other infrastructure, plant and equipment
Total infrastructure, plant and equipment
–
(923)
4,311
4,515
16,889
18,523
All revaluations are conducted in accordance with the revaluation policy stated at Note 1. In 2014–15, an
independent valuer conducted the revaluations.
Valuations of Leasehold improvements and infrastructure, plant and equipment, with the exception of the
financed lease incentives, were carried out at 30 June 2015 by an independent valuer.
No indicators of impairment were found for infrastructure, plant and equipment.
72
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
12. Non-current assets (cont.)
Note 12A – Infrastructure, plant and equipment (cont.)
Opening asset revaluation reserve
638
4,788
Library increment
47
–
Library decrement
(3)
–
Leasehold improvements increment
44
–
164
–
–
–
164
–
Leasehold improvements decrement
Other infrastructure, plant and equipment increment
91
–
Other infrastructure, plant and equipment decrement
(24)
–
67
–
Transfer reserve on disposed assets to retained earnings
(11)
(4,150)
Closing asset revaluation reserve
902
638
5,064
4,033
Note 12B – Intangibles
Computer software
Purchased
Internally generated – in progress
Accumulated amortisation
Total intangibles
1,815
901
(3,641)
(3,217)
3,238
1,717
No indicators of impairment were found for intangible assets.
No intangibles are expected to be sold or disposed of within the next 12 months.
73
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
12. Non-current assets (cont.)
Note 12C – Reconciliation of the opening and closing balances of infrastructure, plant, equipment and intangibles
Reconciliation of the opening and closing balances of infrastructure, plant and equipment and intangibles (2014–15)
Item
y
rar
Lib 000
$'
re,
ctu ent
ra- d
u
r
are
–
t m
inf an
er lant
ras quip
les softw
ld ents
f
h
b
o
n
i
t
p
e
o
g r
ri
seh vem
al re, t
an te
tal
he nd
To 000
Tot ructu men
Lea pro
Int mpu
Ot ant a
'
l
t
o
0
p
0
i
$
s
c
im 00
p 00
0
u
eq 000
$'0
$'
$'0
$'
As at 1 July 2014
Gross book value
319
19,749
5,438
25,506
Accumulated depreciation/amortisation
(32)
(6,028)
(923)
(6,983)
Total as at 1 July 2014
287
4,934
30,440
(3,217)(10,200)
13,721
4,515
18,523
1,717
20,240
Additions by purchase
– 19
1,644
1,663
1,940
3,603
Additions from lease incentive
– –
– – Revaluations through equity
44
164
Revaluations through profit and loss
(3)
(82) (428)
Impairments through profit and loss
– Depreciation/amortisation expense
(32)
Disposals
– 67
– –
(1,540) (1,432)
– (55)
275
(513)
– (3,004)
(55)
– –
– 275
–(513)
– –
(419)(3,423)
– (55)
Total as at 30 June 2015 represented by:
Gross book value
Total as at 30 June 2015
296
– 296
20,254
(7,972)
12,282
4,311
– 4,311
24,861
6,879
31,740
(7,972)
(3,641)
(11,613)
16,889
3,238
20,127
Reconciliation of the opening and closing balances of infrastructure, plant and equipment and intangibles (2013–14)
As at 1 July 2013
Gross book value
Total as at 1 July 2013
319
– 1,413
– 20,961
3,628
24,589
(14,730)
(3,034)
(17,764)
4,499
1,413
6,231
594
6,825
Additions by purchase
– 3,349
4,013
7,362
1,443
8,805
Restatement of make-good
– –
–
–
–
–
Revaluations through equity
– –
–
–
–
–
Revaluations through profit and loss
– –
–
–
–
Impairments through profit and loss
– – 139
139
Depreciation/amortisation expense
Disposals
319
19,229
(14,730)
– –
139
(32)(1,462)(930)(2,424)(315)
(2,739)
– (105)
(120)
(225)
(5)
(230)
Total as at 30 June 2014 represented by:
74
Gross book value
319
19,749
5,438
25,506
(32)
(6,028)
(923)
(6,983)
Total as at 30 June 2014
287
13,721
4,515
18,523
4,934
30,440
(3,217)(10,200)
1,717
20,240
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
12,078
8,032
2,591
1,875
Superannuation
372
295
Separations and redundancies
690
458
Due to Consolidated Revenue Fund
386
320
2,305
725
163
1,849
18,585
13,554
> 13. payables
Trade creditors
Salaries and wages
Net payable to ATO
Dividend payable
Total payables
All payables are current
Trade creditors: Settlement is usually made net 30 days or in accordance with supplier terms of payment.
> 14. Lease incentives
Lease incentives
8,662
9,804
1,142
1,142
Lease incentives are categorised as follows:
Current
Non-current
Total lease incentives
7,520
8,662
8,662
9,804
Lease incentives includes those used to finance leasehold improvements.
> 15. Provisions
Employee provisions
Current
Recreation leave
Long service leave
Performance pay due
Other employee on-costs
Total current employee provisions
5,990
5,894
14,799
13,652
3,743
3,025
458
–
1,259
1,133
26,249
23,704
4,173
3,813
–
401
Non-current
Long service leave
Other employee on-costs
Total non-current employee entitlements
Total employee entitlements
209
213
4,382
4,427
30,631
28,131
75
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
15. Provisions (cont.)
Employee provisions are expected to be settled in:
No more than 12 months
11,110
10,254
More than 12 months
19,521
17,877
30,631
28,131
Total employee entitlements
The classification of current employee provisions includes amounts for which there is not an unconditional
right to defer settlement by one year, hence in the case of employee provisions the above classification does
not represent the amount expected to be settled within 1 year of the reporting date.
Lease provisions
Current:
Provision for future lease escalation
281
198
Surplus lease space
264
93
545
291
1,309
1,129
Total current lease provisions
Non-current:
Provision for future lease escalation
Surplus lease space
345
286
Total non-current lease provisions
1,654
1,415
Total lease provisions
2,199
1,706
Surplus lease
space
$'000
Total
$'000
Provision for
future lease
escalation
$'000
Carrying amount at 1 July 2014
Additional provisions made
Amounts used
Unwinding of discount or change in discount rate
Closing balance 2015
1,327
379
1,706
462
294
756
(199)
(75)
(274)
–
11
11
1,590
609
2,199
AGS currently has 5 agreements for the leasing of premises which have fixed increases.
AGS has averaged the lease payments during the fixed-lease terms and accrued a liability which will reverse
over the same period.
AGS currently has 2 premises with space identified as surplus to requirements.
Surplus lease provisions raised require estimates of the likelihood and extent of future potential rentals of
the identified surplus space.
AGS currently has nil agreements for the leasing of premises which have provisions requiring AGS to restore
the premises to their original condition at the conclusion of the lease.
AGS has made a provision to reflect the present value of this obligation.
Total current provisions
Total non-current provisions
Total provisions
76
26,794
23,995
6,036
5,842
32,830
29,837
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
> 16. Cash flow reconciliation
Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement
Cash at year-end per cash flow statement
31,573
30,755
Balance sheet items comprising cash and cash equivalents
Cash at bank and on hand
erm deposits with an original maturity of greater than
T
3 months and less than 1 year
Total cash and cash equivalents
31,573
10,948
–
19,807
31,573
30,755
235
3,915
3,423
2,739
809
–
Adjustments for non-cash items
Depreciation and amortisation
Write-down of infrastructure, plant and equipment
Reversals of previous asset write-downs and impairments
Loss on disposal of assets
(296)
–
55
91
(3,468)
1,463
Movements in assets and liabilities:
Assets
Decrease / (increase) in receivables
Decrease / (increase) in Deferred Tax Asset
6,489
340
455
(413)
Increase / (decrease) in suppliers
3,902
(702)
Increase / (decrease) in tax provision
1,786
(1,087)
Increase / (decrease) in payables
1,514
(318)
Increase / (decrease) in employee provisions
Decrease / (increase) in prepayments
Liabilities
2,015
(966)
Increase / (decrease) in lease incentives
–
(903)
Increase / (decrease) in lease provisions
(649)
552
16,270
4,711
Net cash from operating activities
77
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
> 17. Client and third party funds
AGS receives money in trust for clients usually pending settlement of clients’ transactions. These moneys
are not available for legal practice operating purposes and are not recognised in the financial statements.
Typically client funds are held for short periods of time for transactional purposes. Exceptionally funds may
be held for a longer period where a settlement is delayed or title to funds is disputed. By arrangement with
our client, interest may be payable to the client or the client’s nominee or on the instructions of a court. AGS
does not pay interest to its clients except where an arrangement has been made to do so.
Australian Government Solicitor client and third party funds accounts
Balance at beginning of the period
Add receipts
Less payments
Balance at end of the period
25,269
6,771
241,056
252,162
266,325
258,933
231,422
233,664
34,903
25,269
> 18. Contingent liabilities and assets
AGS is aware of the potential for losses arising from its normal operations as a legal practice and has taken
out insurance arrangements designed to ensure that the risk of adverse effect on the profits, assets and cash
flow is immaterial to the continuing operations of AGS (Nil at 30 June 2014). At 30 June 2015, AGS considers
the scale of unquantifiable or remote contingent losses or gains to be immaterial.
> 19. senior management personnel remuneration
2015
$
2014
$
Short-term employee benefits
Salary
Performance bonuses
Motor vehicle and other allowances
Total short-term employee benefits
3,968,938
4,025,121
287,417
403,287
89,360
101,516
4,345,715
4,529,924
655,581
636,488
655,581
636,488
301,177
305,767
97,116
98,596
398,293
404,363
Post-employment benefits
Superannuation
Total post-employment benefits
Other long-term benefits
Recreation leave
Long-service leave
Total other long-term benefits
Termination benefits
Total
–
274,872
5,399,589
5,845,647
Note: The total number of senior management personnel that are included in the above table are 20 individuals
(2014: 20 individuals)
78
>
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
135
135
20. Remuneration of auditors
Amounts received or due and receivable by the auditors (1) for:
Audit of the financial statements
The AGS auditor is the Australian National Audit Office who has contracted KPMG to assist with the
engagement.
No other services were provided by the Auditor-General during the reporting period.
>
21. Financial Instruments
Note 21A – Categories of financial instruments
Year ended
30 June 2015
Year ended
30 June 2014
Notes
$'000
$'000
Cash and cash equivalents and investments
9
31,573
30,755
Receivables – goods and services
10
24,612
23,613
Receivables – interest
10
–
247
Receivables – other debtors
10
Financial assets
Loans and receivables
8,293
5,577
Total loans and receivables
64,478
60,192
Total financial assets
64,478
60,192
Financial liabilities measured at amortised cost
Trade creditors
13
12,078
8,032
Dividend payable
13
163
1,849
Total financial liabilities measured at amortised cost
12,241
9,881
Total financial liabilities
12,241
9,881
1,395
1,437
Note 21B – Net gains or losses on financial assets
Loans and receivables
Interest revenue
4B
Net gains on loans and receivables
1,395
1,437
Net gains on financial assets
1,395
1,437
79
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
Trade creditors
–
–
Dividend payable
–
–
–
–
12,078
8,032
Notes
21. Financial instruments (cont.)
Note 21C – Net gains or losses on financial liabilities
Financial liabilities measured at amortised cost
Net losses from financial liabilities
Note 21D – Fair value of financial instruments
Trade creditors
13
Dividend payable
13
Total
163
1,849
12,241
9,881
Financial assets: The fair value is the same as the carrying amounts in the balance sheet.
Note 21E – Credit risk
AGS is exposed to minimal credit risk as the majority of receivables are due from Commonwealth agencies.
The maximum exposure to credit risk is the risk that arises from potential default of a debtor or noncollectability of debt amounts. This amount is equal to the total amount of Receivables totalling $32,802,000
($29,437,000 in 2014). AGS has assessed the risk of the non-collectability of debt amounts and has allocated
$458,000 ($488,000 in 2014) to an impairment allowance account.
AGS has policies and procedures in place for the recovery of debt.
AGS holds no collateral to mitigate against credit risk.
AGS has no significant exposures to any concentrations of credit risk.
Credit quality of financial instruments not past due or individually determined as impaired:
Notes
Not past
due nor
impaired
2015
$'000
Not past
due nor
impaired
2014
$'000
C
ash and cash equivalents and
investments
9
31,573
30,755
–
–
10
18,053
19,486
7,017
3,786
Past
due or
impaired
2014
$'000
Receivables – interest
10
–
247
–
–
Receivables – other debtors
10
8,293
5,577
–
–
57,919
56,065
7,017
3,786
Total
80
Past
due or
impaired
2015
$'000
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
Note 21E – Credit risk (cont.)
Ageing of financial assets that are past due but not impaired for 2015
0 to 30
31 to 60
days
days
$'000
$'000
Notes
10
Total
10
90+
days
$'000
Total
$'000
3,795
2,626
396
200
7,017
3,795
2,626
396
200
7,017
90+
days
$'000
Total
$'000
Ageing of financial assets that are past due but not impaired for 2014
0 to 30
31 to 60
days
days
$'000
$'000
Notes
61 to 90
days
$'000
61 to 90
days
$'000
2,524
660
335
267
3,786
Total
2,524
660
335
267
3,786
Note 21F – Liquidity risk
AGS financial liabilities are payables and other interest-bearing liabilities. The exposure to liquidity risk is based
on the notion that AGS will encounter difficulty in meeting its obligations associated with financial liabilities.
AGS manages liquidity risk throughout the year by monitoring cash and deposit balances and the timing of
the due date for major liabilities.
Cash is invested at higher rates of interest to the extent possible to meet working cash requirements and the
larger dividend and taxation obligations as they fall due.
The following table illustrates the maturities for non-derivative financial liabilities 2015
Notes
Trade creditors
13
Dividend payable
13
Total
Within
1 to 5
>5
1 year
years
years
Total
$'000$'000 $'000 $'000
12,078
– – 12,078
163
– – 163
12,241
– – 12,241
The following table illustrates the maturities for non-derivative financial liabilities 2014
Within
1 to 5
>5
1 year
years
years
Total
Notes $'000$'000$'000 $'000
Trade creditors
13
8,032
– – 8,032
Dividend payable
13
1,849
– – 1,849
– 9,881
Total
9,881
– AGS has no derivative financial liabilities in both the current and prior year.
81
Year ended
30 June 2015
Year ended
30 June 2014
$’000
$'000
Note 21G – Market risk AGS holds basic financial instruments that do not expose AGS to market risks. AGS is not exposed to significant ‘Currency
risk’ or ‘Other price risk’.
Interest rate risk
AGS Term Deposits are undertaken in consideration of the interest rate risk associated with changing market interest rates.
The only interest-bearing items on the statement of financial position were interest-bearing liabilities in relation to lease
incentives. The amortisation schedule for lease incentives is fixed over the term of the lease and there is no associated
interest expense.
> 22. Fair Value Measurements
The following tables provide an analysis of assets and liabilities that are measured at fair value.
The different levels of the fair value heirarchy are defined below.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
Note 22A – Fair value measurements, valuation techniques and inputs used
Level 2 and 3 fair value measurements – valuation technique and the inputs used for assets and liabilities in 2015.1
Fair value measurements
at the end of the reporting
period
Non-financial assets
3
Leasehold
Improvements
2015
2014
$'000
$'000
Category
(Level 1, 2
or 34)
12,282
13,721
Level 3
For levels 2 and 3 fair value measurements
Valuation
technique(s)2
Depreciated
Replacement
Cost (DRC)
Inputs used
Library
Other infrastructure,
plant and equipment
2,984
4,515
Level 2
Market
Approach
Adjusted market
transactions
296
287
Level 2
Market
Approach
Adjusted market
transactions
1,327
–
Level 3
Depreciated
Replacement
Cost (DRC)
Replacement Cost
New
Consumed
economic benefit/
Obsolescence of
asset
Total Non-financial
assets
1.
82
16,889
6.7% –
10.4%
(6.7%) per
annum
A significant increase (decrease) in
this consumed economic benefit/
obsolescence of the asset would
result in a significantly lower
(higher) fair value measurement.
(15.0%) –
10.0%
A significantly higher (lower)
market transaction may result in
a significantly higher (lower) fair
value measurement.
6.7% –
50.0%
(17.1%) per
annum
A significant increase (decrease) in
this consumed economic benefit/
obsolescence of the asset would
result in a significantly lower
(higher) fair value measurement.
18,523
AGS did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2015.
Sensitivity of the fair value
measurements in unobservable
inputs
Replacement Cost
New (price per
square metre)
Consumed
economic benefit/
Obsolescence of
asset
plant and equipment
Range
(weighted
average)
Year ended
30 June 2015
Year ended
30 June 2014
$'000
$'000
Note 22A – Fair value measurements, valuation techniques and inputs used (cont.)
2. There have been changes to the valuation techniques for assets in the infrastructure, plant and equipment class. In instances
where sufficient observable inputs, such as market transactions of similar assets, were (not) identified in this financial year, the
valuation technique has changed from a DRC (Market) approach to a Market (DRC) approach.
3. Fair value measurements AGS assets are held for operational purposes and not held for the purposes of deriving a profit. The
current use of all NFAs is considered their highest and best use.
4. Recurring and non-recurring Level 3 fair value measurements – valuation processes AGS tests the procedures of the valuation
models as an asset materiality review at least once every 12 months (with a formal revaluation undertaken every 3 years). If a
particular asset class experiences significant and volatile changes in fair value (ie where indicators suggest that the value of the
asset class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting
period, regardless of the timing of the last specific valuation. AGS engaged Australian Valuation Services (AVS) to undertake a full
revaluation and confirm that the models developed comply wth AASB 13.
Significant Level 3 inputs utilised by AGS are derived and evaluated as follows:
Infrastructure, plant and equipment – Adjusted Market Transactions
The significant unobservable inputs used in the fair value measurement Library assets relate to the market demand and valuers
judgment to determine the fair value measurement of these assets. A significant increase (decrease) in this input would result in a
significantly higher (lower) fair value measurement.
Leasehold improvements, infrastructure, plant and equipment – Consumed economic benefit / Obsolescence of the asset
Assets that do no transact with enough frequency or transparency to develop objective opinions of value for observable market
evidence have been measured utilising the cost (DRC) approach. Under the DRC approach the estimated cost to replace the asset is
calculated and then adjusted to take into account its consumed economic benefit / asset obsolescence (accumulated depreciation).
Consumed economic benefit / asset obsolescence has been determined based on professional judgment regarding physical, economic
and external obsolescence factors relevant to the asset under consideration.
The weighted average is determined by assessing the fair value measurement as a proportion of the total fair value for the class
against the total useful life of each asset.
Note 22B – Level 1 and Level 2 transfers for recurring fair value measurements
Recurring fair value measurements transferred between Level 1 and Level 2 for assets and liabilities
There have been no transfers of NFAs between Level 1 and 2 of the hierarchy during the year.
AGS’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.
Note 22C – Reconciliation for recurring Level 3 fair value measurements
Recurring Level 3 fair value measurements – reconciliation for assets
Leasehold
improvements
2015
$'000
As at 1 July
plant and equipment
2014
$'000
2015
$'000
2014
$'000
Total
2015
$'000
2014
$'000
13,721
–
4,802
–
18,523
–
(1,458)
13,721
(1,784)
4,515
(3,242)
18,236
Purchases
19
–
1,644
–
1,663
–
Disposals
–
–
(55)
–
–
–
Accumulated Depreciation /
Valuation Adjustment
Transfer into Level 3
Total as at 30 June
–
–
–
–
–
–
12,282
13,721
4,607
4,515
16,944
18,236
83
84
PART 4
appendixes
85
Forums and publications
FORUMS
Property and Infrastructure Forum, Canberra, 13 August 2014
Employment Law Forum, Canberra, 15 October 2014
Administrative Law Forum, Canberra, 6 November 2014
Information Technology Forum, Canberra, 26 February 2015
Competition and Consumer Law Forum, Canberra, 12 March 2015
FOI and Privacy Forum, Melbourne, 26 March 2015
FOI and Privacy Forum, Canberra, 1 May 2015
Civil Penalties Forum, Canberra, 25 June 2015
GOVERNMENT LAW GROUP MEETINGS
Is that really work?, Canberra, 17 September 2014
A rekindled romance? The High Court and procedural fairness, Sydney, 21 October 2014
Employees who won’t work and supervisors who won’t manage, Canberra, 19 March 2015
At what cost? Compensating privacy breaches, Sydney, 26 March 2015
What football can teach us, Canberra, 30 April 2015
Managing risk under the PGPA Act, Canberra, 19 May 2015
86
PUBLICATIONS
Express law
No. 235High Court rules on apprehended bias (26 June 2015)
No. 234Privacy determination – need to scrutinise law enforcement requests before disclosing
personal information (27 May 2015)
No. 233New APS Award means change for SES employees (26 May 2015)
No. 232Metadata is ‘personal information’ under the Privacy Act 1988 (Cth) (25 May 2015)
No. 231Parliament passes the Tribunals Amalgamation Bill 2015 (21 May 2015)
No. 230High Court rules on ‘Royal prank phone call’ case (10 March 2015)
No. 229Energy Consumers Australia Ltd, a national energy consumer advocacy body, established
on 30 January 2015 (6 March 2015)
No. 228Fair Work Commission provides guidance on interpreting enterprise agreements (8
December 2014)
No. 227Emissions Reduction Fund ready to commence (5 December 2014)
No. 226Court allows appeal against decision upholding public interest immunity (PII) over
complaint and investigation records (6 November 2014)
No. 225Recent decision indicates likely compensation range for breach of privacy (23 September
2014)
No. 224Serious invasions of privacy in the digital era: ALRC tables final report (12 September 2014)
No. 223Implied terms of mutual trust and confidence and good faith in employment contracts:
what do they mean for Commonwealth agencies? (11 September 2014)
No. 222Online Copyright Infringement Discussion Paper: extended deadline for submissions
(1 September 2014)
No. 221Toyota Motor Corporation Australia Ltd v Marmara (8 August 2014)
No. 220First decision on termination of employment for ‘loss of an essential qualification’ –
Defence defends requirement to maintain a security clearance (28 July 2014)
Legal briefing
No. 106Dealing effectively with unsatisfactory performance in the Australian Public Service
(15 April 2015) This issue supersedes Legal briefing No. 92
No. 105Indemnities in Commonwealth contracting (12 May 2015)
This is an updated version of Legal briefing No. 93
No. 104Misconduct in the Australian Public Service (15 October 2014)
Litigation notes
No. 25 Application of Barbaro: resolving civil penalty proceedings by agreement (19 June 2015)
No. 24 Further challenge to the Commonwealth’s power to contract and spend money on school
chaplains; ACT same-sex marriage law inconsistent with the Commonwealth Marriage
Act; Criminal property forfeiture scheme valid – no acquisition of property on unjust
terms; High Court holds valid the scheme to designate regional processing countries;
Validity of immigration detention revisited; High Court declares New South Wales
election funding laws invalid (6 November 2014)
87
Fact sheets
No. 26 Conflicts of interest for tenders, funding programs and other government initiatives
(updated February 2015)
No. 25 Confidentiality considerations for tenders, funding programs and other government
initiatives (updated February 2015)
No. 22 Hidden costs in leasing (updated February 2015)
No. 14 Avoiding common legal pitfalls in contract management (updated November 2014)
No. 13 Tips for new corporate Commonwealth entities (updated November 2014)
No. 11 Corporate Commonwealth entities – authorisations and delegations
(updated December 2014)
No. 10 Legal issues to consider for new programs (updated November 2014)
No. 9
Probity and process issues for property and infrastructure projects (updated February
2015)
No. 7
Commonwealth Procurement Rules (updated December 2014)
No. 5
Negotiating indemnities in leases (updated November 2014)
No. 2
Probity and legal process advice (updated February 2015)
Last week in Parliament – new subscription email in 2014
Issue 27 22–25 June 2015
Issue 26 15–18 June 2015
Issue 25 1–4 June 2015
Issue 24 25–28 May 2015
Issue 23 12–14 May 2015
Issue 22 23–26 March 2015
Issue 19 23–26 February 2015
Issue 18 9–12 February 2015
Issue 17 1–5 December 2014
Issue 16 24–27 November 2014
Issue 15 14–20 November 2014
Issue 14 27–31 October 2014
Issue 13 20–23 October 2014
Issue 12 30 September–2 October 2014
Issue 11 22–25 September 2014
Issue 10 1–4 September 2014
Issue 9 26–28 August 2014
Issue 8 14–18 July 2014
Issue 7 7–10 July 2014
88
FOI Chatspace – new subscription email in 2015
No. 3 Notice of decision – you don’t always have to disclose the existence of documents,
Louise Futol, 26 June 2015
No. 2 Creating documents and s 17, Charine Bennett, 10 April 2015
No. 1 Practical reasons and unreasonably large requests, Justin Davidson, 20 March 2015
Books
AGS 30: Recollections, reflections, a souvenir booklet commemorating 30 years of AGS,
launched at AGS Canberra on 27 August 2014
Australia’s Constitution (pocket edition), revised and reprinted (co-published with the
Parliamentary Education Office), August 2014
AGS by those who know* (* our clients) published in our new promotional pack, February 2015
VODCASTS
Richard Harding, ‘Managing disclosures under the PID Act’, 24 November 2014
WEBSITE
Volume 4 of selected Legal Opinions 1946–50 was published on www.legalopinions.ags.gov.au
released on 25 June 2015
89
Compliance index
The index below shows compliance with information requirements contained in the PGPA Act
and the Commonwealth Authorities (Annual Reporting) Orders 2011.
Section 7AB of the Public Governance, Performance and Accountability (Consequential and
Transitional Provisions) Rule 2014 provides that the Commonwealth Authorities (Annual
Reporting) Orders 2011, despite being repealed, continue to apply with respect to the information
requirements for the AGS 2014–15 annual report.
90
Commonwealth Authorities (Annual Reporting) Orders 2011
(unless otherwise denoted)
Annual report page
Audited financial statements
Section 43(4) of
the PGPA Act
53–83
Committees
Clause 14
38–39
Community service obligations
Clause 20
44–46
Dividends
Clause 20
19
Enabling legislation
Clause 10
36
Environmental performance and
environmentally sustainable development
Clause 12
45–46
Ethics framework
Clause 14
7
Financial conditions
Clause 20
18–19
Freedom of information
Clause 12
40
Functions and powers
Clause 10
6, 36–37
Government policy orders made by the Finance
Minister under s 22 of the PGPA Act
Clause 12
37
Indemnities and insurance premiums for officers
Clause 19
39–40
Information about subsidiaries
Clause 18
Not applicable – AGS
did not have any
subsidiaries
Judicial decisions and decisions of administrative
tribunals
Clause 17
37
Key activities and changes
Clause 16
3, 18–19
Letter of transmittal (approval of annual report
of operations)
Clause 6
1
Location of major activities and facilities
Clause 14
ii
Ministerial directions
Clause 12
37
Commonwealth Authorities (Annual Reporting)
Orders 2011 (unless otherwise denoted)
Annual report page
Objectives
Clause 10
7
Operational and financial results
Clause 16
18–19
Organisational structure
Clause 14
40
Related entity transactions
Clause 15
Not applicable – the
accountable authority
for AGS was a sole
person
Reports made by the Auditor-General,
Parliamentary committee, Commonwealth
Ombudsman or Office of the Australian
Information Commissioner
Clause 17
37
Responsible Minister
Clause 11
37
Risk management
Clause 14
39
Significant events under s 19(1)(c), (d) or (e) of the
PGPA Act
Clause 16
37
Statement on governance practices
Clause 14
36–39
Workplace health and safety
Clause 12
32
91
Index
A
B
Aboriginal and Torres Strait Islander people see
Indigenous Australians
books, 89
about AGS, 6
broadcasting matters, 9, 12
Abbot Point coal terminal, 14
accountability and management, 36–47
Adani Mining, 14
address, ii
Administrative Appeals Tribunal matters, 20
administrative law, 19, 20–21
advertising and market research, 40
Advisory Board, AGS, 38
indemnity, 39
Afghanistan, Defence Force deaths in, 11
Air Warfare Destroyer Project, 48
Albury–Wodonga Corporation, 15
alumni, AGS, 30
appropriations, 6, 37
APS Values and Code of Conduct, 28
APS Work Level Standards, 28
areas of expertise, 6
asylum seekers, offshore processing of, 11, 14, 49
Attorney-General
as First Law Officer, 7, 10
interventions and notices, s 78A and s 78B, 11
as shareholder Minister, 6, 18, 36, 37
Attorney-General’s Department (AGD), 6, 10
consolidation with, 2, 18, 22–23, 27–28
Audit Committee, 38
audits, 37
Australia Day Awards, AGS, 50–51
blogs, 26
Brandis, the Hon George QC, 37
Bureau of Meteorology, 15
business efficiency, 8
business operations, 6–33
business strategies and outcomes, 18, 32–33
business system improvements, 32–33
C
Cabinet matters, 10
career development see professional development
cases see litigation; significant matters 2014–15
change management, 28
Chief Executive Officer, AGS, 2, 23, 36–37
indemnity, 39
review 2014–15, 3–4
Chief General Counsel, AGS, 40
child sexual abuse royal commission, 11, 49
cigarette plain packaging, 11, 21, 49
civil penalty proceedings, 14
clean energy legislation, 12
client care
Confidentiality Protocol, 23
consolidation with AGD, 2, 22–25, 26
outcomes against corporate plan, 22–25
principles, 26
satisfaction rate, 8
services, 22–25
survey, 23, 26
Australian Communications and Media Authority,
12
client confidentiality obligations, 23
Australian Competition and Consumer Commission,
14
client strategies and outcomes, 22–25
Australian Crime Commission, 14–15
Code of Conduct, AGS, 7
Australian Electoral Commission, 15
client networks, 24–25
coal exploration licences, 14
Australian Federal Police, 11, 14, 20, 21
ComCare, 21
notifications to, 32
Australian Government Solicitor, 2 see also Govey,
Mr Ian
Comcover, 14
Australian Public Service, transition to, 2
Australian Security Intelligence Organisation, 11,
19, 20
Australian Sports Anti-Doping Agency, 16–17, 21
awards and recognition, 13, 44
Commercial, AGS, 6
Commercial notes publication, 24
commercial operation, 2, 6
Commissioner of Taxation, 12
Commonwealth Contracting Suite, 41
Commonwealth Lease Divestment Handbook, 41
Commonwealth National Lease suite, 41
92
Commonwealth trading enterprise function, 2
constitutional litigation, 10, 11–12
employees
Enterprise Agreement, 2, 28
job classifications, 2, 27–28
new, 27, 28
profile, 31
role descriptions, 27–28
satisfaction, 8
survey, 32
training, 23, 25, 28–30, 32
transfer to AGD, 2
turnover, 8, 32
see also support staff
construction projects, advice on, 15
employment arrangements, changes to, 27
contact details, ii
Employment Handbook, 27, 28
contract documentation, advice on, 41
employment policies review, 28
Cormann, the Hon Mathias, 37
energy market reforms, 15, 42
coronial inquests, 11
enquiries, 11
Corporate Commonwealth Entities Legal Network,
24–25
Enterprise Agreement, AGS, 2, 28
corporate governance, 36–43
environmental policy and initiatives, 46
corporate objectives and strategies, 22–34
Essendon Football Club, 16–17
Corporate Plan 2014–15, 22, 37
ethics and values, 7
corporate savings, 18, 32
events, 22, 23, 29
CrimTrac, 15
Express law bulletin, 24, 87
D
external affairs power, advice on, 10
data retention obligations, 15
external governance, 37
Defence Housing Australia, 48
F
communication activities and products, 23–24, 86
community service obligations, 44
competitive neutrality payments, 18
competitors, 3, 18
Confidentiality Protocol, 23
consolidation with Attorney-General’s Department,
2, 18
client consultation on, 22–23
staff consultation on, 27–28
Defence Materiel Organisation, 15
environmental performance, 45–46
fact sheets, 24, 28, 88
Department of Defence, 11, 15
false imprisonment, 49
Department of Finance, 41
farming business loans, 15
Department of Foreign Affairs and Trade, 15, 20
Federal Court matters, 12, 14, 16–17, 20
Department of Health and Ageing, 21
financial management and outcomes, 3, 8, 18–19
Department of Immigration and Border Protection,
11, 14
financial overview, 3, 8, 33
Department of Industry and Science, 42
First Law Officer, support for, 6, 7, 10–15
Department of the Environment, 34
Director-General of Security, 12
Dispute Resolution, AGS, 6, 12, 20–21
dividends paid, 7, 8, 18, 19
document management system, 32–33
E
financial statements, 53–83
FOI Chatspace bulletin, 89
foreign fighters legislation, 3, 15
forums, 3, 22, 23, 24, 29
forums and training, 23–24, 29, 86
freedom of information, 40
exemption from requirements, 23
Eastman, David, retrial of, 14
full-time employees, 31
eLearning modules, staff, 28
functions, 36
electronic newsletters, 24, 87–89
Future Submarine Program, 48
Elite practice management system, 33
G
email address, ii
G20 Leaders’ Summit, 15
emergency procedures, 32
gender of employees, 31
employee strategies and outcomes, 27–32
Global Infrastructure Hub, 15
goverance structure, 39
93
governance committees, 39
Last Week in Parliament publication, 24, 88
Government Law Group seminars, 3, 25, 29, 86
Leaders Conference, AGS, 28
government legal services review, 2, 18, 27
leadership development, 27, 28–30
Govey, Mr Ian, 36–37
as Australian Government Solicitor, 2
see also Chief Executive Officer
leases and sub-leases, advice on, 41, 48
graduate program, 25, 30, 32
H
High Court matters, 9, 11–15 see also litigation;
significant matters 2014–15
Hird, Mr James, 16–17
Home Insulation Program royal commission, 11, 21
HR Working Group, 28
human resources planning, 27, 28
Lawyer Development Program, 27, 30
Legal briefing publication, 24, 87
legal costs control, 23, 26
Legal Opinions 1946–50, 89
legal professional privilege matters, 21
Legal Services Directions, 10, 15
Legal Services Multi-Use List, 2
legal services review, government, 2, 18, 27
Legal Support Program, 27, 30
Legal Support Review 2013, 27
legislative framework, 36
I
legislative proposals, advice on, 10, 15
illegal immigrants, 12
library, AGS, 25
immigration detention and processing, 11, 14, 49
Lindt cafe siege, 11, 49
immigration matters, 3, 11, 12, 14
litigation, 11–15
in-house counsel practice, 20–21
Litigation notes newsletter, 87
indemnities and insurance premiums, 39–40
live cattle exports, 49
Independent Commission Against Corruption NSW,
12, 14
M
Indigenous Australians, 45, 46
Indigenous constitutional recognition, 15
Indigenous employees, 46
information technology, 32–33
insurance premiums, 39
internal governance, 38–40
internal supervision, 27, 30
International Communications Network, 15
international law, 10
international pro bono work, 45
international treaties, 10, 11
interventions under s 78A, 11, 14
J
job classifications, 2, 27–28
judicial decisions and reviews by outside bodies, 37
Judiciary Act 1903, 11, 36
governance changes under, 2
ministerial directions under, 37
s 78A interventions and s 78B notifications, 11
K
Khazei, Hamid, 11
94
L
government business enterprise function, 2, 3, 7,
18–21
Malek Fahd Islamic School, 12
management see accountability and management
mandate, 7
Manus Regional Processing Centre, 11
market position, 18
market share, 3
market trends, 18
Martin Place siege, 11, 49
Medibank Private sale, 15, 48
Medical Board of Australia, 11
meeting attendance, management committee, 38
membership of management committees, 38
mentoring program, 25, 27
mining, 12, 14
Minister for Finance (shareholder Minister), 6, 37
Minister for Immigration and Border Protection, 12,
14
Minister for the Environment, 14
ministerial directions, 37
Ministers see shareholder Ministers
model litigant obligation, 10
Muirhead Project, 48
N
private firms, briefs from, 21
NAIDOC Week activities, 46
pro bono work, 25, 44–45, 46
national energy laws, 42
proceeds of crime, 15
National Practice Orientation program, 27
procurement and grants, advice on, 15, 41
national security, 10, 12, 14, 20
professional development, 25, 28–30
networks, client, 24–25
professional indemnity, 39
new employees, 27, 28
professional standards, 7
new Sydney airport, 3, 15, 48
profits, 8, 18, 19
newsletters, 24, 86
programs, advice on, 15
Nitschke, Dr Philip, 11
progress reports to Ministers, 37
non-contestable (tied) work, 7, 10, 11–12
Prohibition on Incitement of Hatred Bill 2015, 15
Norfolk Island self-government, 15
property and leasing, 41, 48
notifiable incidents, 32
notifications under s 78B, 11
Public Governance, Performance and Accountability
Act 2013, 15, 36
number of employees, 31
public interest immunity, 14
O
publications, 23–24, 87–89
Obeid, Moses and Paul, 14
purchasing see procurement and grants, advice on
Office of General Counsel, AGS, 6, 12
Q
Office of International Law, AGD, 6, 10
quarterly progress reports, 37
offices, ii
Queensland Rail, 12
offshore processing of asylum seekers, 11, 14, 49
R
One-Stop Shop for environmental approvals, 34
Reconciliation Action Plan, 46
organisational chart, 40
records management system, 32–33
orientation for new staff, 27, 28
recruitment, 32
outcomes against corporate plan, 22–34
remuneration of committee members, 38
outlook for 2015–16, 3–4
Reserve Bank of Australia, 15
outposted lawyers, 2, 20–21, 23, 24
responsible Ministers see shareholder Ministers
P
return on equity, 19
part-time employees, 31
revenue, 8, 19
payments to shareholders, 7, 8, 18, 19
review of 2014–15, 3–4
people-smuggling, 12
risk management, 39
People Strategy Branch, 28
role descriptions, 27–28
performance measures, 18, 19
Royal Commission into Institutional Responses to
Child Sexual Abuse, 11, 49
performance overview, 6, 8, 18
permanent protection visas, 14
personal leave, 31
petrol retailer information service, 48
pharmaceutical benefits scheme recoveries, 21
Philip Morris Asia Limited, 11
policy advice, 15
political donations, 12
practice areas, 6
practice groups, 6, 27
practice leaders, 40
practice management system, 33
practice strategies and outcomes, 25–27
pricing arrangements, 23
Royal Commission into the Home Insulation
Program, 11, 21
S
scholarships, 46
scorecard, AGS, 19
section 78A and 78B notifications and interventions,
11
security assessments, 10, 11, 12, 20
seminars, 3, 23, 25
senior leaders, 40
senior management committees, 38–39
shareholder Ministers, 6, 18, 36, 37
shareholder return, 7, 8, 18, 19
Shen Neng 1, 49
95
significant events, 37
significant matters 2014–15, 48–49
Smaller Government Reform Agenda, 2
social responsibility, 44–46
Solicitor-General, 6
sports anti-doping, 16–17, 21
staff see employees; support staff
statement of corporate intent, 37
strategies, 18
structure, 6
supervision arrangements, 27, 30
support staff, 22, 27, 30
T
Tarkine National Coalition, 14
taxation matters, 12, 15
telephone numbers, ii
terrorism prevention, 20
tied work, 7, 10, 11–12, 23
tobacco plain packaging, 11, 21, 49
Today FM, 9
training courses, client see forums and training
training, employee see employees; professional
development
travel documents system, advice on, 15
treaties, international, 10, 11
tribunals, 11
U
unlawful deportation, 14
V
values, 7
visa matters, 12, 14
vision, 7
vodcasts, 89
W
Water Act 2007, decision on, 12
website, ii
information and resources on, 86–89
Williams decision, 3, 15
winter clerk program, 30
work health and safety, 32
workers’ compensation claims, 32
workforce profile, 31
workshops, 30
workshops, staff, 30
WorkSite document management system, 32–33
World Trade Organization, 11
96
www.ags.gov.au

annual report 2014 – 15 - Australian Government Solicitor

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