To:
Hon Steven Marshall MP
Premier of South Australia
This annual report will be presented to Parliament to meet the statutory reporting requirements of the Public Sector Act 2009 and the Public Finance and Audit Act 1987 and meets the requirements of Premier and Cabinet Circular PC013 Annual Reporting.
This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.
Submitted on behalf of Defence SA by:
Richard Price
Chief Executive
From the Chief Executive
South Australia is at the forefront of the nation’s defence and space industries. Renowned for its innovation, world-class research and development, and a highly skilled workforce, the state’s defence industry has a proud history of delivering some of Australia’s largest and most complex defence projects. South Australia’s defence industry backs our large Australian Defence Force presence and specialist infrastructure.
In the past financial year, we have made considerable progress in building an internationally competitive and export-ready defence industry that is equipped to take full advantage of the new opportunities arising in the global supply chains, including Australia’s next generation warships and submarines. We have successfully led and participated in key tradeshows and business missions, providing South Australia’s defence industry with a platform for international exposure and enabling local companies to strengthen relationships with global partners and suppliers.
Defence’s intelligence surveillance, reconnaissance and electronic warfare and cyber capabilities are also expanding rapidly, providing new career and business opportunities for South Australians.
This year was significant for South Australia’s space industry, with Adelaide being chosen as the home for the Australian Space Agency headquarters, co-located at Lot Fourteen with a national Mission Control Centre and the Space Discovery Centre. Further consolidating our position as the nation’s leader in space, South Australia is taking a leading role as the headquarters of the SmartSat Cooperative Research Centre, an industry research powerhouse that will boost our nation’s space capabilities and connect industry and researchers.
Defence SA aims to leverage our existing strengths and entrepreneurial spirit to make South Australia the undisputed champion of the space industry.
Growing our skilled workforce to meet the demands of our defence and space industries has been our top priority this year. We have made significant headway on this front, leading the development of a comprehensive, whole-of-government strategy that is responsive to industry’s changing needs and launching key programs that will deliver the skilled workforce.
South Australia’s defence and space industries are a vital part of the state’s future economic prosperity. We are committed to growing local industry and creating an environment where businesses can thrive.
Richard Price
Chief Executive
Defence SA
Contents
Our organisational structure as of 30 June 2019
Agency contribution to whole of Government objectives
Agency specific objectives and performance
Employment opportunity programs.
Agency performance management and development systems.
Work health, safety and return to work programs.
Executive employment in the agency.
Financial performance at a glance.
Strategies implemented to control and prevent fraud.
Reporting required under any other act or regulation
Reporting required under the Carers’ Recognition Act 2005
Number of public complaints reported (as required by the Ombudsman)
Appendix: Audited financial statements 2018-19
Overview: about the agency
Our strategic focus
Purpose:
Defence SA is South Australia’s leading government agency for all defence and space related matters. It is the South Australian Government’s single point of contact for all defence and space stakeholders, streamlining their interaction with the state government.
Mission/Values:
Defence SA’s mission is to maximise growth in the South Australian defence and space sectors. Working closely with the Australian Government and industry, Defence SA targets investment and expansion opportunities, drives and supports the delivery of major projects and facilities, and pursues the location of additional defence and space capabilities in the state.
Defence SA plays a key role in supporting the Australian Government’s strategic defence policy by increasing local industry participation and ensuring that a highly skilled workforce is in place to underpin current and future defence projects.
Defence SA is capturing further investment opportunities in the shipbuilding, cyber and systems, defence science and research and space domains.
The South Australian Space Industry Centre (SASIC), which drives space industry innovation, research and entrepreneurial development, is hosted within Defence SA. SASIC collaborates with the Australian Space Agency to play a key role in the national space agenda.
The Defence SA Advisory Board provides high-level strategic advice to promote the growth of the defence industry in South Australia and plays a key role in guiding the state’s defence strategy.
| Our functions, objectives and deliverables | Shipbuilding: to ensure South Australia maintains its position as the nation’s centre for warship and submarine building and sustainment.
Cyber and systems: to position South Australia as a centre of excellence for cyber capability and processing, exploiting and disseminating intelligence. Advocacy and support: in collaboration with the Australian Government, Defence and industry, Defence SA works to ensure the required workforce, skills, and infrastructure are available to capitalise on emerging defence industry opportunities. Defence science and research: to position South Australia as a national leader in developing intellectual property. Space: to position South Australia as the nation’s centre of space industry development and home of the Australian Space Agency headquarters. |
Our organisational structure as of 30 June 2019
Changes to the agency
During 2018-19 there were no changes to the agency’s structure and objectives as a result of internal reviews or machinery of government changes.
Premier
The Hon Steven Marshall MP, the Premier of South Australia is responsible for the defence and space industries portfolios.
Our Executive team
Richard Price
Chief Executive
Richard Price, Chief Executive, is responsible for providing executive and strategic leadership to Defence SA, the South Australian Space Industry Centre and the Defence Innovation Partnership. The Chief Executive is responsible for the attraction, development and growth of sustainable defence industry business initiatives to establish a long-term viable Defence presence and promote defence and space industries in South Australia.
Julie La Rosa
Executive Director, Strategy, Skills and Government Relations
Julie La Rosa, Executive Director, Strategy, Skills and Government Relations, is responsible for leading the strategy, skills and government relations activities of the agency. This includes the ministerial liaison with the Premier’s office, representing the agency at a whole of government level in state and national forums and providing government relations, communications, media and strategy advice to the Chief Executive. The team also provides executive support to the Defence SA Advisory Board.
Rob Barnett
Executive Director, Corporate Services
Rob Barnett, Executive Director, Corporate Services is responsible for leading the corporate services functions of the agency. This includes the delivery of all administration, finance and procurement support, as well as providing commercial cost/benefit analyses where required. His team delivers specialist assistance to contract negotiations in the areas of legal advice, insurance and risk mitigation and is responsible for work health and safety, and environmental coordination.
The agency’s performance
Performance at a glance
- Hosted the Land Forces Exhibition in Adelaide, in September 2018, where we promoted South Australia as the Defence State, showcasing its growing defence presence and local supply chains.
- Led a contingent of defence industry companies and organisations to the international maritime tradeshow Euronaval in Paris, in October 2018.
- Promoted South Australia’s aerospace and space capabilities, and explored potential supply chain opportunities on upcoming aerospace projects at the Avalon Airshow 2019 in Victoria, in March 2019.
- Engaged with submarine design partner, Naval Group and ship designers, BAE Systems and Luerssen respectively, to maximise opportunities for South Australian industry involvement in global naval shipbuilding supply chains.
- Secured the headquarters of the Australian Space Agency based at Lot Fourteen, establishing South Australia as a crucial node in the national space economy, creating job opportunities, new learning pathways and strengthening our economy. The Australian Space Agency will also host the co-funded Mission Control Centre and a Space Discovery Centre.
- Supported the successful bid to establish a SmartSat Cooperative Research Centre in Adelaide, in partnership with the University of South Australia, Nova Systems and key South Australian space organisations.
- Established the Defence and Space Landing Pad at Lot Fourteen, which supports international companies to develop a local business strategy and plan their operations in South Australia.
- Hosted two South Australia Space Forums (December 2018 and May 2019) attracting more than 1000 national and international registered attendees, including over 30 exhibitors, to discuss the latest space industry trends, opportunities and technologies and displayed our growing space ecosystem.
- Launched the pilot Space Industry Work-Experience Program, which provides Years 10 to 12 students the opportunity to undertake short-term placements with local space companies.
- Led the development of the Defence Industry Workforce and Skills Strategy and Action Plan, in collaboration with TAFE SA, Department for Education and Department for Innovation and Skills.
Agency contribution to whole of Government objectives
South Australia won the bid to host the headquarters of the Australian Space Agency, as the centrepiece of a space innovation precinct at Lot Fourteen. The Agency will attract exciting investment opportunities in a sector that will benefit our entire state, creating jobs now and into the future.
Defence SA established the Defence and Space Landing Pad, which will provide a South Australian base for global companies to develop their South Australian business strategy, plan local operations and drive industry investment.
Defence SA is investing heavily in workforce development and building world-class capability across the education and training system to deliver a pipeline of skilled workers to meet the needs of our defence industry. We are enhancing the defence industry in upskilling and retaining workers and ensuring our students and apprentices are developing the trade, technical and science and technology skills that will be needed in the future.
| Key government objective | Agency’s contribution |
| More jobs | Defence and Space Landing Pad – supports international companies to develop a local business strategy and plan operations in South Australia.
Australian Space Agency – SASIC continues to collaborate with the Australian Space Agency to play a key role in developing and growing the national space agenda. South Australia has a rapidly growing space ecosystem, and our state is at the centre of the nation’s space endeavours. Defence Industry Workforce and Skills Strategy – Defence SA has led the development of a whole-of-government strategy, to ensure South Australia has a workforce to meet the demands of the defence industry. The strategy provides a clear and coordinated approach to defence industry workforce and skills development, from VET study in secondary schools to re-skilling programs for mature aged employees. |
Agency specific objectives and performance
Corporate performance summary
Defence SA is a government agency of the state of South Australia, established pursuant to the Public Sector Act 2009. Defence SA operations are funded predominantly via appropriation. Secondary income sources are derived from event participation fees and sponsorships associated with industry events through which Defence SA promotes the state’s defence and space industries capabilities.
Defence SA’s net cost of providing service for the 2018-19 financial year was $10.317 million, $1.468 million less than the original budget. The reduction in net cost of service is comprised several factors. A reduction in operating expenditure of $9.222 million primarily resulting from:
· Reduction in grant payments of $9.013 million due to delays in achieving program milestones.
· New programs not in original budget and programs carried over from 2017-18 ($0.818 million).
A reduction in operating income of $7.754 million primarily resulting from:
· The source of funding for Defence SA’s grant programs was transferred to appropriation following the finalisation of the Economic Development Fund ($8.667 million).
· New programs not included in original budget $0.535 million.
· Recovery of expenses $0.300 million
Employment opportunity programs
| Program name | Performance |
| Aboriginal Employment Program | The Aboriginal Employment Program was established to provide the opportunity for participants to gain experience in administrative, office and work management. This assists participants to pursue a career in the South Australian public sector. One applicant completed the program in May 2019 and a new applicant commenced in June 2019. |
Agency performance management and development systems
| Performance management and development system | Performance |
| Staff Performance Management and Development System | All non-executive staff participate in an annual performance review process linked to training and development. This involves goal setting, a half-yearly review and an annual review. By 30 June 2019, 100% of non-executive staff had completed an annual review. |
| Chief Executive Performance Agreement | The Chief Executive and Premier undertook a review of the goals and objectives component of the annual performance agreement on 29 July 2019. |
Work health, safety and return to work programs
| Program name | Performance |
| Mental Health First Aid | Defence SA has two Mental Health First Aid Officers who have completed accredited training. This complements the existing Employee Assistance Program. Senior management have also received training on mental health first aid. |
| Organisational wellbeing | All staff attended a Healthy Minds workshop designed to challenge ingrained perceptions and develop positive habits. Some staff undertook a 30-day challenge associated with this program on a voluntary basis. |
| Workplace injury claims |
2018-19 |
2017-18 |
% Change |
| Total new workplace injury claims |
1 |
2 |
-50% |
| Fatalities |
0 |
0 |
0% |
| Seriously injured workers* |
0 |
0 |
0% |
| Significant injuries (where lost time exceeds a working week, expressed as frequency rate per 1000 FTE) |
0 |
0 |
0% |
*number of claimants assessed during the reporting period as having a whole person impairment of 30% or more under the Return to Work Act 2014 (Part 2 Division 5)
| Work health and safety regulations |
2018-19 |
2017-18 |
% Change |
| Number of notifiable incidents ( Work Health and Safety Act 2012, Part 3) |
0 |
0 |
0% |
| Number of provisional improvement, improvement and prohibition notices ( Work Health and Safety Act 2012 Sections 90, 191 and 195 ) |
0 |
0 |
0% |
| Return to work costs** |
2018-19 |
2017-18 |
% Change |
| Total gross workers compensation expenditure ($) |
$780 |
$11,418 |
-93% |
| Income support payments – gross ($) |
0 |
$3,635 |
-100% |
**before third party recovery
Data for previous years is available at: https://data.sa.gov.au/data/dataset/whands-defencesa
Executive employment in the agency
| Executive classification | Number of executives |
| EXEC0A |
1 |
| SAES1 |
7 |
Data for previous years is available at: https://data.sa.gov.au/data/dataset/executive-employment-defencesa
The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.
Financial performance
Financial performance at a glance
The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2018-19 are attached to this report.
| Statement of Comprehensive Income | 2018-19 Budget
$000s |
2018-19 Actual
$000s |
Variation
$000s |
2017-18 Actual
$000s |
| Expenses |
$21,406 |
$12,184 |
$9,222 |
$17,438 |
| Revenues |
$9,621 |
$1,867 |
$(7,754) |
$4,496 |
| Net cost of providing services |
$11,785 |
10,317 |
$1,468 |
$12,942 |
| Net Revenue from SA Government |
$10,516 |
$8,536 |
$(1,980) |
$(140,543) |
| Net result |
$(1,269) |
$(1,781) |
$(512) |
$(153,485) |
| Total Comprehensive Result |
$(1,269) |
$(1,781) |
$(512) |
$(153,485) |
| Statement of Financial Position | 2018-19 Budget
$000s |
2018-19 Actual
$000s |
Variation
$000s |
2017-18 Actual
$000s |
| Current assets |
$8,789 |
$9,620 |
$831 |
$11,120 |
| Non-current assets |
$184 |
$6 |
$(178) |
$9 |
| Total assets |
$8,973 |
$9,626 |
$653 |
$11,129 |
| Current liabilities |
$2,932 |
$2,088 |
$844 |
$1,794 |
| Non-current liabilities |
$405 |
$225 |
$180 |
$241 |
| Total liabilities |
$3,337 |
$2,313 |
$1,024 |
$2,035 |
| Net assets |
$5,636 |
$7,313 |
$1,677 |
$9,094 |
| Equity |
$5,636 |
$7,313 |
$1,677 |
$9,094 |
Consultants disclosure
The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.
Consultancies with a contract value below $10,000 each
| Consultancies | Purpose | $ Actual payment |
| N/A | N/A | N/A |
Consultancies with a contract value above $10,000 each
| Consultancies | Purpose | $ Actual payment |
| DuMonde Group | South Australia Space Campaign |
$107,500 |
| Shoal Engineering | Structural Engineering Capability Report |
$29,545 |
|
Total |
$137,045 |
Data for previous years is available at: https://data.sa.gov.au/data/dataset/consultants-defencesa
See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.
Contractors disclosure
The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.
Contractors with a contract value below $10,000
| Contractors | Purpose | $ Actual payment |
| All contractors below $10,000 each – combined | Various |
$24,200 |
Contractors with a contract value above $10,000 each
| Contractors | Purpose | $ Actual payment |
| Australian Industry Group | Administration – Premier’s Defence Industry Scholarship Program |
$40,000 |
| DuMonde Group | Promotional video, Australian Space Agency |
$30,000 |
| Innovation Performance Australia | Advisory Board |
$18,000 |
| Australian Naval Infrastructure | Techport transition |
$99,748 |
| Bardavcol | Techport transition |
$30,600 |
| City of Port Adelaide Enfield | Techport transition |
$25,000 |
| MOTO Projects | Techport transition |
$22,903 |
| Alexander Symonds | Techport transition |
$10,300 |
|
Total |
$276,551 |
Data for previous years is available at: https://data.sa.gov.au/data/dataset/contractors-defencesa
The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts .
The website also provides details of across government contracts .
Risk management
Fraud detected in the agency
| Category/nature of fraud | Number of instances |
| N/A |
0 |
Strategies implemented to control and prevent fraud
All staff completed the SA Public Sector Code of Ethics refresher training during May 2019. Fraud awareness training was conducted in May 2019.
Data for previous years is available at: https://data.sa.gov.au/data/dataset/fraud-detection-defencesa
Whistle-blowers disclosure
Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Whistleblowers Protection Act 1993:
0
Data for previous years is available at: https://data.sa.gov.au/data/dataset/whistle-blower-defencesa
Reporting required under any other act or regulation
Reporting required under the Carers’ Recognition Act 2005
The Carers’ Recognition Act 2005 is deemed applicable for the following: Department of Human Services, Department for Education, Department for Health and Wellbeing, Department of State Development, Department of Planning, Transport and Infrastructure, South Australia Police and TAFE SA.
Section 7: Compliance or non-compliance with section 6 of the Carers Recognition Act 2005 and (b) if a person or body provides relevant services under a contract with the organisation (other than a contract of employment), that person’s or body’s compliance or non-compliance with section 6.
Defence SA is not required to report under the Carers Recognition Act 2005
Public complaints
Number of public complaints reported (as required by the Ombudsman)
| Complaint categories | Sub-categories | Example | Number of Complaints
2018-19 |
| Professional behaviour | Staff attitude | Failure to demonstrate values such as empathy, respect, fairness, courtesy, extra mile; cultural competency |
0 |
| Professional behaviour | Staff competency | Failure to action service request; poorly informed decisions; incorrect or incomplete service provided |
0 |
| Professional behaviour | Staff knowledge | Lack of service specific knowledge; incomplete or out-of-date knowledge |
0 |
| Communication | Communication quality | Inadequate, delayed or absent communication with customer |
0 |
| Communication | Confidentiality | Customer’s confidentiality or privacy not respected; information shared incorrectly |
0 |
| Service delivery | Systems/technology | System offline; inaccessible to customer; incorrect result/information provided; poor system design |
0 |
| Service delivery | Access to services | Service difficult to find; location poor; facilities/ environment poor standard; not accessible to customers with disabilities |
0 |
| Service delivery | Process | Processing error; incorrect process used; delay in processing application; process not customer responsive |
0 |
| Policy | Policy application | Incorrect policy interpretation; incorrect policy applied; conflicting policy advice given |
0 |
| Policy | Policy content | Policy content difficult to understand; policy unreasonable or disadvantages customer |
0 |
| Service quality | Information | Incorrect, incomplete, out dated or inadequate information; not fit for purpose |
0 |
| Service quality | Access to information | Information difficult to understand, hard to find or difficult to use; not plain English |
0 |
| Service quality | Timeliness | Lack of staff punctuality; excessive waiting times (outside of service standard); timelines not met |
0 |
| Service quality | Safety | Maintenance; personal or family safety; duty of care not shown; poor security service/ premises; poor cleanliness |
0 |
| Service quality | Service responsiveness | Service design doesn’t meet customer needs; poor service fit with customer expectations |
0 |
| No case to answer | No case to answer | Third party; customer misunderstanding; redirected to another agency; insufficient information to investigate |
0 |
| Total |
0 |
Appendix: Audited financial statements 2018-19
Download the Audited financial statements 2018-19 [2.1Mb]
