Chapter 3performance management report

Organisation performance summary

The work of the APVMA is directed towards achieving the outcome of protecting the health and safety of people, animals, the environment and agricultural and livestock industries through regulation of pesticides and veterinary medicines.

As of the 2009-10 Budget, all General Government Sector (GGS) entities were to report on a program basis to capture revisions made to GGS outcome statements under the Operation Sunlight Outcome Statements Review, as described in the Portfolio Budget Statements 2009–10 for the Agriculture, Fisheries and Forestry Portfolio.

In response to this change, the APVMA has developed a performance framework linking its legislative objectives to a revised outcome–program structure. It has replaced the previous outcome–outputs structure with one outcome that is achieved through a single program (Figure 3). This framework involves a detailed planning and reporting process that incorporates the portfolio budget statements, the annual report, corporate plan, annual operational plan and individual performance agreements.

In 2009-10, the APVMA’s outcome was supported by four objectives (see Figure 3):

  • promote confidence through consistent, predictable, and transparent decision-making
  • enhance awareness of how our regulatory activities protect people, the environment and trade
  • engage with other government agencies to enhance regulatory efficiency
  • enhance the capability of our people and systems.

The APVMA measures performance against these four objectives through the employment of six key strategies to deliver an efficient and effective system of regulation of pesticides and veterinary medicines. These are:

  • using robust, risk-based methods to scientifically evaluate pesticides and veterinary medicines used in Australia
  • keeping all stakeholders informed of regulatory matters and considering their views
  • reviewing registered chemicals to ensure they meet contemporary standards
  • seeking and using stakeholder feedback to inform regulatory activities
  • requiring and monitoring compliance with legislative requirements to maintain confidence in the regulatory framework
  • identifying and managing emerging regulatory issues.

Tables on pages 14 and 15 report against the targets and key performance indicators, and strategies to deliver these objectives, as specified in the APVMA’s Operational Plan 2009-2010. These performance indicators are in line with the APVMA’s component in the Portfolio Budget Statements 2009-10 for the Agriculture, Fisheries and Forestry Portfolio. Detailed performance information against each strategy is provided throughout this chapter.

In addition, there are two support strategies in the Operational Plan 2009-2010:

  • conduct business efficiently and effectively
  • value our people.

Tables on page 16 report against the targets for the two support strategies.

Figure 3: Strategic framework

Figure 3: Strategic framework

Key result areas

The APVMA has met most of its projected targets for 2009-10 in relation to its single outcome. The following tables summarise performance against the four key operational objectives.

Strategy 1 Using robust risk based methods to scientifically evaluate pesticides and veterinary medicines used in Australia

Performance against targets

  • Maintained timeframe performance—approved 85 per cent of products, 11 per cent of actives and
    85 per cent of permit applications within timeframe
  • Revised Volume 1 Registration process and Volume 7 Environmental data requirements of MORAG
  • Maintained and improved regulatory science quality particularly in the area of spray drift risk assessment and nanotechnology
  • Maintained and enhanced joint review and workshare projects with nine global joint reviews currently in process and planning for six new joint reviews
Strategy 2 Keep all our stakeholders informed of regulatory matters and consider their views

Performance against targets

  • Held 17 meetings with stakeholder consultative committees

  • Enhanced stakeholder awareness of APVMA regulatory matters through improved media engagement
  • Embraced Australian Government requirements for web publishing and launched new website
  • Analysed the APVMA’s approach to stakeholder engagement and conduced a review of feedback mechanisms
  • Ensured staff are aware of who the APVMA stakeholders are, what they need to know and how best to meet those needs
  • Conducted a review of intranet to inform further work to strengthen internal communication
Strategy 3 Review registered chemicals to ensure they meet contemporary standards

Performance against targets

  • Made regulatory decisions on three chemicals (chlorpyrifos, nicarbazin and triazines) and took regulatory action on 16 other existing chemicals
  • Took part in 16 conferences/seminars/field days and presented information to industry stakeholders
  • Held regular conferences calls with international regulatory agencies about risk assessments and regulation of existing chemicals
Strategy 4 Seek and use stakeholder feedback to inform regulatory activities

Performance against targets

  • No adverse experiences reported required significant regulatory action, however the APVMA imposed risk mitigation strategies to 2.5 per cent of the assessed adverse experience reports (AER) reported
  • Finalised 86 per cent of AERP reports within three months
  • Improved internal database to increase efficiency including (1) the development of a semi-automated process to mine the AER database in order to assist reporting; and (2) introduction of simplified and improved reporting forms for AERs (allowing electronic or hardcopy submission of AERs)
Strategy 5 Require and monitor compliance with legislative requirements to maintain confidence in the regulatory framework

Performance against targets

  • Five accounts of significant regulatory action derived from APVMA activities
  • Produced five new compliance fact sheets and revised current ones
  • Heightened the openness of compliance operations by increasing the number of media releases, articles and notices
  • Developed proposal for reform of compliance tool kit
  • Continued monitoring, testing and audit programs
  • Limited critical Good Manufacturing Practice (GMP) non-conformance, with only three critical non-conformances reported out of 81 audits reviewed and closed)
  • Increased the proportion of registrants able to supply evidence of GMP compliance for overseas manufacturers within compliance at first audit to 78 per cent
  • Dealt with more than 40 per cent of non-compliance reports in first instance
  • Maintained ISO accreditation

Key performance indicators

Strategy 6 Identify and manage emerging regulatory issues

Performance against targets

  • Progressed COAG reform agenda
  • Implemented all ANAO recommendations
  • Developed issue management strategies for priority issues
  • Developed issue identification and management capacity of our people
  • Improved staff awareness of ‘whole of government’ agenda and processes through regulatory staff briefings
Strategy 7 (Support Strategy) Conduct our business efficiently and effectively

Performance against targets

  • No significant adverse audit findings
  • Information systems maintain ‘up time’ of greater than 99 per cent
  • Recorded no significant security incidents
  • Maintained expenditure within 10 per cent of budget
  • Accommodated all planned staff in building
  • Maintained internal auditor training and competency
Strategy 8 (Support Strategy) Value our people

Performance against targets

  • Compliance with new performance management framework and people policies
  • 86 per cent overall staff satisfaction
  • Meet recruitment timeframes with streamlined processes
  • Increased internal promotion of staff
  • Less than 20 per cent separation of staff
  • Reduced work related incident absences
  • Accurate and timely remuneration service
  • Identified training completed and implemented
  • Staff and organisation’s values aligned

Financial performance summary

The APVMA’s financial management framework continues to provide sound support. The outcome of the 2009-10 audit resulted in an unqualified audit opinion expressed by the Auditor General. An overview the APVMA’s financial performance for 2009–10 is in Table 1. Full details of the audited Financial Statements and accompanying notes begin on page 109.

Table 1: Summary of 2009–10 financial performance
Outcome 1:
Protection of the health and safety of people, animals, the environment, and agricultural and livestock industries through regulation of pesticides and veterinary medicines		 2009-10
Budget		 2009-10
Actual		 2009-10
Variation		 2008-09
Actual

$’000

$’000

$’000

$’000

Program 1.1: Australian Pesticides and Veterinary Medicines Authority

Departmental expenses

Ordinary annual services (Appropriation Bill No. 1)

646

646

-

638

Revenues from independent sources (Section 31)

137

797

660

350

Special appropriations

25,553

23,336

(2,217)

23,839

Special accounts

-

1,284

1,284

1,037

Total for Program 1.1

26,336

26,063

(273)

25,864

Outcome 1 Totals by appropriation type

Departmental expenses

Ordinary annual services (Appropriation Bill No. 1)

646

646

-

638

Revenues from independent sources (Section 31)

137

797

660

350

Special appropriations

25,553

23,336

(2,217)

23,839

Special accounts

-

1,284

1,284

1,037

Total expenses for Outcome 1

26,336

26,063

(273)

25,864

2009-10

2009-10

2008-09

Average Staffing Level (number)

160

155

159

* Full year budget, including any subsequent adjustment made to the 2009–10 Budget.

Operational income

The APVMA’s total income for 2009–10 was $24.78 million, a decrease of $0.05 million (0.19 per cent) from 2008–09 (see Table 2). This decrease is largely due to a reduction in levy income, although this is offset by an increase in government appropriations and other income.

Table 2: APVMA income 2009–10
Income $’000 % of income

Receipts from industry

Product application fees

2,606

10.52

Levies

16,561

66.83

Annual fees (renewal fees)

3,460

13.96

Other receipts from industry

709

2.86

Parliamentary appropriation

1,028

4.15

Other revenue

415

1.68

Total income

24,779

100.00

Operational expenditure

Total operating expenses for 2009–10 were $26.063 million (see Table 3), an increase of $0.20 million (0.76 per cent) from 2008–09. The net operating deficit of $1.28 million for 2009–10 resulted in equity decreasing to $3.73 million.

Table 3: APVMA expenditure 2009–10
Expenditure 2009–10
Actual		 % of
expenditure		 2009–10
Budget

$’000

$’000

Employee expenses

16,343

62.71

16,372

Supplier expenses

9,096

34.90

9,343

Depreciation and amortisation

561

2.15

561

Other expenses

63

0.24

60

Total expenditure

26,063

100.00

26,336

The APVMA’s financial reserve

Because the APVMA’s revenue can vary significantly from year-to-year, due to fluctuations in agvet chemical sales, the APVMA aims to hold a financial reserve. This reserve forms part of the APVMA’s equity and allows revenue fluctuations to be managed. Without this financial reserve, the APVMA would risk periods where its liabilities exceed its assets (negative equity).

The financial reserve target is currently set at three months of operating expenses (approximately $6.0 million). At 30 June 2010, the APVMA’s equity was $3.7 million, approximately $2.8 million below its target reserve. The Minister for Agriculture, Forestry and Fisheries has granted the APVMA a 10 per cent fee increase in 2010-11 (the first fee increase since July 2005) with a view to considering further changes to the APVMA’s cost recovery arrangements within the next 12 months.

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