Overarching analysis of performance against Finance’s purposes

As a central agency of the Australian Government, Finance plays a key role in assisting the government to shape and deliver its priorities to ensure public expenditure programs are sustainable and reflect best value to government and the Australian community.

Finance’s progress against its purposes in 2016–17 was achieved in the context of a challenging and uncertain operating environment. Our role in assisting the government to make informed decisions on its fiscal and policy objectives occurs amid a variety of factors, many of which are outside Finance’s control and can impact Finance’s performance in achieving its purposes. In 2016–17 key emerging environmental pressures influencing Finance’s prioritisation decisions and performance included:

• the establishment of the interim Independent Parliamentary Expenses Authority in January 2017 which was of particular relevance to Finance’s progress toward the services purpose
• announcements impacting Finance in the 2017–18 Federal Budget regarding key infrastructure initiatives of the government (including Melbourne to Brisbane inland rail, naval shipbuilding and Western Sydney Airport) and measures arising from implementation of the Public Service Modernisation Fund investments which was of particular relevance to Finance’s progress toward the governance and transformation purposes
• the 2016 federal election, including managing the impacts of a double dissolution and extended caretaker period, which was of particular relevance to Finance’s progress toward the services purpose.

During 2016–17 Finance implemented several machinery-of-government changes. These included the creation of the Independent Parliamentary Expenses Authority and subsequent movement of staff from Finance to the new entity, and the movement of a number of ICT functions and staff to the Digital Transformation Agency. Joining Finance during the year was the Service Delivery Office.

There was no material change in Finance’s organisational capacity specific to any individual purpose in 2016–17. However, in 2016–17 Finance’s organisational capacity was enhanced by the department’s continuing transition into a more transformative organisation—one able to use its resources wisely and effectively to quickly adapt to a constantly changing environment. To support this approach Finance further embedded transformation activities into its ongoing business and maintained an internal focus on cultural and behavioural change.

To help Finance achieve its purposes it has an agile operating model which focuses on prioritisation, staff mobility, capability building and workforce planning. Finance has a team of approximately 220 project staff who are able to move flexibly to work on different priority projects as they emerge. In 2016–17 Finance used this team to meet 50 per cent of the human resources required for new and emerging priorities.