The Treasury
Annual Report
2000-01

October 2001

© Commonwealth of Australia 2001
ISBN 0 642 74071 2
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THE TREASURY	OFFICE OF THE SECRETARY
CANBERRA   ACT   2600	

25 September 2001

The Hon Peter Costello, MP
Treasurer
Parliament House
CANBERRA   ACT   2600

Dear Treasurer
I have pleasure in presenting to you the Annual Report of the Treasury for the year ended 30 June 2001.  The Report has been prepared under section 63 of the Public Service Act 1999.  Subsection 63 (1) of the Act requires that a Secretary of a Department is to provide a copy of the report to their Agency Minister for presentation to the Parliament.
As provided in subsection 63 (2) of the Act, the Report has been prepared in accordance with guidelines approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit.  These guidelines provide that a copy of the Annual Report is to be laid before each House of the Parliament on or before 31 October.

Yours sincerely

Ken Henry
Secretary to the Treasury

Contents
Letter of transmission	iii
Index of compliance	vii
Introduction and guide to the report	viii
Enquiries	ix
Part 1	Overview	1
Secretary’s review	3
Corporate statement	6
Part 2	Report on performance	15
Outcome 1:  Sound macroeconomic environment	18
Output 1.1.1:  Domestic economic policy advice and forecasting	22
Output 1.1.2:  International economic policy advice and assessment	26
Outcome 2:  Effective government spending and taxation arrangements	37
Output 2.1.1:  Budget policy advice and coordination	40
Output 2.1.2:  Commonwealth‑State financial policy advice	42
Output 2.1.3:  Industry policy advice	47
Output 2.1.4:  Taxation and income support policy advice	49
Output 2.1.5:  Actuarial services	59
Outcome 3:  Well functioning markets	60
Output 3.1.1:  Foreign investment policy advice and administration	63
Output 3.1.2:  Financial system and markets policy advice	66
Output 3.1.3:  Business and consumer policy advice	73
Output 3.1.4: Circulating coin and like products	81
Corporate services	82
Part 3	The centenary of Treasury  highlights of 100 years of public service	87
Part 4	Management and accountability	111
Corporate governance	113
External representation	115
External scrutiny	119
Management of human resources	125
Purchasing and assets management	136
Competitive tendering and contracting	136
Consultancies	137
Workplace relations	142
Workplace diversity	143
Part 5	Financial Statements	147
Part 6	Other statistical information	229
Occupational health and safety	231
Freedom of information	232
Advertising and market research	244
Ecologically sustainable development and environmental performance	245
Discretionary grants	247
Acronyms	249
Index	251
List of tables
Table 1:	Treasury financial and staffing resources summary	8
Table 2:	Financial and staffing resources summary for Outcome 1	21
Table 3:	Financial and staffing resources summary for Outcome 2	39
Table 4:	Financial and staffing resources summary for Outcome 3	62
Table 5:	Operative and paid inoperative staff by classification 
and gender	131
Table 6:	Staff located at overseas posts	131
Table 7:	Salary scales  SES	132
Table 8:	Certified Agreement salary scales  Non-SES	133
Table 9:	SES commencements	135
Table 10:	SES cessations	135
Table 11:	Consultancies over $10,000 in 2000‑01 by output group	137
Table 12:	List of consultancies over $10,000 in 2000‑01 by output group	138
Table 13:	Operative and paid inoperative staff by EEO target group	145
Table 14:	EEO in appointments to boards (or equivalent) of statutory
and non‑statutory bodies	146
Table 15:	Freedom of Information statistics 2000-01	240
Table 16:	2000-01 Treasury expenditure for advertising	244

List of charts
Chart 1:	Treasury portfolio outcome structure	11
Chart 2:	Portfolio output structure	12
Chart 3:	Treasury output structure	13
Chart 4:	Treasury top management structure	14
Chart 5:	Outputs contributing to Outcome 1	20
Chart 6:	Outputs contributing to Outcome 2	38
Chart 7:	Outputs contributing to Outcome 3	61
Chart 8:	Number of new entrant graduates  by gender	144
Chart 9:	Number of SES staff members  by gender	144
Chart 10:	Treasury staff levels  by gender	144

Index of compliance
Requirement	Page	
Letter of transmittal	iii	
Aids to access		
Table of contents	v	
Index of compliance	vii	
Introduction and guide to the report	viii	
Acronyms and Glossary	249	
Alphabetical index	251	
Contact details	ix	
Secretary’s review	3	
Part 1:	Departmental overview	1	
Part 2:	Treasury’s report on performance	15	
Part 4:	Management and accountability	111	
Corporate governance	113	
External scrutiny	119	
Management of human resources	125	
    Statistics on staffing	130	
    Performance pay	132	
Purchasing	136	
Assets management	136	
Consultants and competitive tendering and contracting	137	
Commonwealth disability strategy	143	
Part 5:	Financial statements	147	
Part 6:	Other information	229	
Occupational health and safety 	231	
Freedom of information	232	
Advertising and market research	244	
Ecologically sustainable development and environmental performance	245	
Discretionary grants	247	

Introduction and guide to the report
The 2000-01 Treasury Annual Report outlines performance against outcomes, outputs and performance information contained in the 2000‑01 Portfolio Budget Statements (PBS).
The financial accounts presented in this Report include the Royal Australian Mint. However, the performance reporting does not extend to the activities of that organisation which, although a Division of Treasury, is not budget-funded. Information in Part 4: Management and Accountability and Part 6: Other Statistical Information (for example, staff numbers or expenditure on advertising) does not include information relating to the Mint unless expressly stated. The Mint publishes its own annual report.
Part 1 of this report includes an overview of major outcomes during 2000‑01, and outlines changes in the organisation and senior management structure of the Department and other significant management initiatives undertaken over the course of the year. Charts included in Part 1 depict the Treasury portfolio and departmental outcome and output structures, and the Treasury top management structure.
Part 2 of the report provides an analysis of performance against Treasury’s policy outcomes. A review of Corporate Services Division performance is also provided in Part 2.
This year Treasury celebrates 100 years of public service. Part 3 provides economic and administrative highlights of Treasury’s progress and performance between 1901 and 2001. The highlights have been drawn from the Centenary of Treasury booklet published in April 2001.
Part 4 reports on management and accountability issues as required under the Annual Report Guidelines.
Part 5 presents the audited financial status of the Department as required under the Annual Report Guidelines.
Part 6 of the report includes other statistical information required under the Annual Report Guidelines.
The report concludes with a list of abbreviations and acronyms and an index to the report and its appendices.
Other sources of information
Treasury releases information on its activities through many publications, press releases, speeches and reports including the Annual Report. Copies of all Treasury publications are available on our website at www.treasury.gov.au.

Enquiries
The contact officer to whom enquiries regarding this report may be directed is:
The General Manager
Corporate Services Division
The Treasury
Telephone:	(02) 6263 3911
Fax: 	(02) 6263 2948
A copy of this document can be located on the Treasury website at:  http://www.treasury.gov.au/annualreport