Performance

Agency performance

Supporting a safe, fair and responsible future for the Western Australian community, industry and resources sector.

Resource Agreements

The 2017–18 Resource Agreement between the department’s Director General, Minister and Treasurer, was drafted in accordance with section 41 of the Financial Management Act 2006. It articulates the services to be delivered by the department, its financial and non-financial performance targets and the government’s desired outcomes in the delivery of those services.

A summary of the department’s financial performance and key performance indicators is provided below. Further detailed information regarding the department’s non-financial performance for the financial year is provided in the Disclosures and legal compliance section of this report. A summary of the department’s performance against whole of government and cross-agency initiatives, as contained in the 2017–18 Resource Agreement.

Financial performance – actual results against budget targets

The department’s performance against the financial targets set for the 2017–18 financial year is outlined in the below table. Further detail is provided in the Financial Statements in section five.

Table 6: Summary of department’s financial targets

Financial Targets 2018 Target ($000) 2018 Actual ($000) Variation ($000)
Total cost of services (expense limit)
(sourced from Statement of Comprehensive Income)
298,755 280,302 (18,453)(1)
Net cost of services
(sourced from Statement of Comprehensive Income)
129,961 112,832 (17,129)(2)
Total equity
(sourced from Statement of Financial Position)
397,944 422,972 25,028(3)
Net increase / (decrease) in cash held
(sourced from Statement of Cash Flows)
7,705 56,243 48,538(4)
Approved salary expense level 161,146 152,001 (9,145)(5)

(1) The total cost of services was lower than the target as additional savings measures and expenditure reductions were initiated by the department to alleviate the impact of regulatory revenue shortfalls for the financial year.
(2) Net cost of services was lower than the target due to note 1 and reduced collections of revenue. The department’s revenue is volatile and reflects the downturn in the resources and building industries.
(3) The increase in equity is a result of the Treasurer's Advances received for the Mine Safety and Petroleum Safety special purpose accounts.
(4) The variance is a result of note 3 and the transfer in of restricted cash as a result of Machinery of Government requirements.
(5) The reduction in salary expense limit is a result of note 1.

Summary of key performance indicators

During 2017–18, the department reported on 10 effectiveness and 19 efficiency indicators. Each indicator reflects the department’s performance as either regulator, service provider or policy maker. Figure 7 shows to what extent performance targets were met, exceeded or not met for each approach. The majority of targets were met or exceeded in 2017–18, demonstrating our strong performance as a regulator, service provider and policy maker.

Of the nine key performance indicators that did not meet targets, two related to not achieving the goal of zero fatalities/serious injuries in gas/electricity. The remaining seven reflected higher unit costs due mostly to reduced activity levels with largely fixed resources.

Summary of performance outcomes for 2017–18

Figure 7: Summary of performance outcomes for 2017–18