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Government of South Australia - Department of State Development

    2022-23 Annual Report

    From the Chief Executive

    DIIS Adam Reid small

    Our focus has been on delivering the South Australian Government’s ambitious economic policy agenda and commitments, developing industry capability, supporting and strengthening research capability, and ensuring this translates into business opportunities, jobs and growth.

    Our work aligns with the South Australian Government’s vision, as outlined within its Economic Statement, for a South Australian economy that is smart, sustainable and inclusive.

    Developing strategic industrial policy and reinvigorating manufacturing, along with supporting the creative industries, small business, and research and innovation, were key focus areas during 2022-23.

    The announcement on 13 March 2023 in the United States of the optimal pathway for Australia’s acquisition of conventionally armed, nuclear powered submarines is historic.

    South Australia, as the home of Australia’s submarine construction industry, will be vital to the successful delivery of Australia’s nuclear powered submarine program. And work to deliver a suitably qualified and experienced workforce for the defence industry, including shipbuilding and nuclear powered submarines, commenced in earnest this year.

    As Co-Chair of the South Australian Defence Industry Workforce and Skills Taskforce, which has engaged extensively with industry, education, unions and government, the department looks forward to finalising and delivering actions under the skills and workforce plan for the defence industry.

    The government signed a Memorandum of Understanding with BAE Systems Australia to partner on building South Australia’s defence industry workforce.

    The burgeoning hydrogen industry is another major focus for the South Australian Government. DIIS undertook engagement with industry and community stakeholders to develop a South Australian Hydrogen Workforce Roadmap and engage the local supply chain to ensure our businesses benefit from this large emerging industry.

    As Australia and the rest of the world seeks to decarbonise and achieve net zero targets, businesses around the globe are under increased pressure to reduce their emissions. Increasingly, consumers, employees and financial providers are seeking out businesses and employers that are taking proactive steps to reduce their carbon footprints. This presents both a challenge and an opportunity for South Australian businesses.

    DIIS is collaborating with nine South Australian Government departments to develop a Green Industrial Transition Roadmap, which will provide a plan for South Australia to build sustainable industries in sectors that best leverage our high penetration of renewable energy and natural endowments to build new, low carbon industries and manufacturing opportunities, and transition existing high emitting industries.

    We recognise that science, research, and industry collaboration are fundamental drivers of innovation, and we have continued to support research excellence, collaboration, translation and commercialisation through the Research and Innovation Fund and the National Collaborative Research Infrastructure Strategy.

    DIIS has also been working closely with industry, education, union, and community stakeholders to develop a South Australia Manufacturing Strategy.

    The new strategy will set the direction for industry and government collaboration to grow manufacturing and drive South Australia’s economic transition towards a knowledge-based, resilient, and greener economy.

    Further to this, though initiatives such as the South Australian Industry Capability Network (ICN) program, it is more important than ever that we connect local suppliers to new business opportunities, building capability and capacity in supply chains across major defence projects.

    To ensure businesses have access to the skills they need, particularly in regional South Australia, we’ve continued to deliver skilled, employer-sponsored and business migration programs, with 2022-23 seeing a significant increase in employers utilising the state’s Designated Area Migration Agreements.

    The department has been critical to delivering on the government’s commitment to supporting and enabling South Australian small and family business to succeed.

    We established the Office for Small and Family Business to provide seamless access to support and resources, and we conducted a comprehensive engagement program with the small business community, harnessing these insights to shape a Small Business Strategy for South Australia.

    We launched the Women in Business Program to address the specific barriers that women face in starting, running and growing businesses, and have planned a whole suite of initiatives to increase fundamental business skills, improve digital readiness and cyber awareness, and help small businesses to become more sustainable.

    We have also provided critical support to small businesses impacted by the River Murray flooding, both on the ground in the region, and through a range of grants.

    The department has continued to support South Australia’s creative industries to grow and thrive.

    Through the Music Development Office, we supported South Australian music industry professionals to get back on stages at events and in live music and hospitality venues with See It LIVE e-vouchers, venue upgrade grants, event grants, mental health support, and more.

    We have also supported our state’s world-renowned screen industry, preparing to hold the first annual iteration of the iconic Adelaide Film Festival later this year, and supporting the South Australian Film Corporation to launch a workforce development strategy in response to skills shortages in the industry.

    We are also contributing to developing a framework for a new state-wide innovation model, which will strategically connect the state’s innovation districts, including Lot Fourteen, Tonsley and Adelaide BioMed City, along with other knowledge and manufacturing hubs, and capitalise on our competitive advantages in defence, space, advanced manufacturing and critical technologies industries.

    The opportunity to create a new university – Adelaide University – a combined University of Adelaide and University of South Australia is nationally and internationally significant. The new university would have a mission focused on access and equity, while undertaking research of scale and focus, aligned to the economic priorities of the state.

    Looking forward, the department will continue to work with our stakeholders within the higher education sector to not only support the creation of the new Adelaide University, but to drive a high performing, strong higher education sector in South Australia.

    The department will work with the higher education sector to deliver the desired outcomes for the state of excellence in research, translation and commercialisation, engagement with industry and business, equity and access for all students, a strong, stable and secure sector and improved integration with vocational education and training.

    It has been an incredibly productive and busy year for the department and we remain committed to continuing to drive the state’s economic transformation towards a knowledge-based, resilient and greener economy for the future.

    Overview: about the agency

    Our Purpose

    The Department for Industry, Innovation and Science supports sustainable economic growth by assisting South Australian industries and businesses to succeed in a local and global environment.

    Our Vision

    A smart, sustainable and inclusive South Australian economy underpinned by excellence in research and innovation, higher education, industrial capability and a skilled workforce.

    Our Values

    Our values are based on the Public Sector Values, and we will uphold these values in our decisions, actions and interactions:

    Genuine – we do what we say

    Respect – we are inclusive and listen

    Empowered – we are open and courageous

    Aligned – we act and deliver as one

    Trusted – we back each other

    Our functions, objectives and deliverables

    The Department for Industry, Innovation and Science will help deliver sustainable economic growth and a productive, resilient economy underpinned by science, technology and enterprise.

    The department develops integrated policy advice and delivers targeted programs, projects and services that enable industries and businesses to succeed in the global environment.

    The department’s objectives to support economic growth are:

    • Grow creative, innovative and productive industries and businesses
    • Improve the state’s industrial capability and capacity
    • Develop a high performing research and innovation system
    • Support industry to get the skilled workforce it needs
    • A high performing, collaborative, agile and innovative organisational culture

    Success across these strategic objectives will help achieve the following long-term outcomes:

    • Globally recognised research and translation connected to industry
    • Business growth and sustainability
    • Increased development and retention of a skilled workforce in South Australia
    • Increased productivity across business and industry

    During 2022-23, there were changes to the agency’s structure and objectives as a result of internal reviews. An organisational change process was conducted between September – November 2022 to review and realign existing functions following the creation of the Department for Industry, Innovation and Science on 1 July 2022. No functions were transferred in or out of the department and the new structure became effective 1 November 2022.

    Hon Susan Close MP

    Susan Close is the Deputy Premier of South Australia and the Minister for Climate, Environment and Water; Minister for Industry, Innovation and Science; and Minister for Defence and Space Industries. Susan has been the Member for Port Adelaide since 2012.

    Before entering parliament, Susan was an executive in the Department of Environment and Natural Resources and played a key role in the establishment of the Adelaide Dolphin Sanctuary as a community advocate.

    She previously worked at the University of Adelaide managing student services and holds a PhD from Flinders University. Susan is a fierce advocate for women in the workplace, passionate about ensuring accessible and quality education for all, deeply concerned about protecting nature, and driven to deliver the best economic outcomes for South Australia so everyone can benefit from a prosperous future for our state.

    Hon Andrea Michaels MP

    Andrea Michaels is the South Australian Minister for Small and Family Business, Consumer and Business Affairs, and Arts. She is also the Member for Enfield, representing the community in Adelaide’s inner north and north-eastern suburbs.

    Prior to becoming a Minister, Andrea was running her own small business – a legal practice specialising in commercial law and supporting small and family businesses. She has also been Treasurer of the Law Society of SA, a company director, and a partner at industry leading law firms, as well as a chartered tax advisor and accredited family business advisor.

    Andrea is passionate about promoting diversity, supporting more women to launch and grow businesses, and building safe, fair and friendly communities. She is focused on ensuring the government is easy to do business with, that small businesses are supported to succeed, and that the whole community has access to a thriving cultural and creative sector.

    Adam Reid, Chief Executive

    Adam is the Chief Executive of the Department for Industry, Innovation and Science, which is responsible for supporting sustainable economic growth through research and innovation, technology development, industry and business growth, manufacturing capability, and skilled and business migration.

    Adam brings more than 20 years of experience in the South Australian public sector in industry, science and innovation policy, and program delivery. Prior to becoming the Chief Executive, Adam was the Executive Director of the Innovation and Science division within the Department for Innovation and Skills, responsible for developing and supporting the state’s innovation system to drive economic growth.

    Previously, Adam held executive positions within the Department of State Development and Department of Trade and Economic Development, where he led industry development policy and strategy implementation, small business and investment management.

    In his previous roles, Adam led the development of South Australia’s manufacturing strategy, the purchase and planning of the Tonsley Innovation District, investments in strategic research infrastructure and capabilities, and the transition of the state’s automotive supply chain.

    Adam holds a Bachelor of Commerce from the University of Adelaide.

    Phuong Chau, Executive Director, Portfolio Delivery

    Phuong is the Executive Director, Portfolio Delivery responsible for leading the strategic enabler teams which support and enable the delivery of the department’s strategic and operational objectives. This includes responsibility for corporate & business services, people, policy, communications and engagement, governance and migration. The group is focussed on driving and supporting the department to drive an enterprise approach which delivers customer service with our people and clients.

    As of 1 July 2023, Phuong Chau has transferred to a new role in the Department for Treasury and Finance.

    Andy Dunbar

    Andrew Dunbar, Executive Director, Research and Innovation

    Andrew is the Executive Director, Research and Innovation, responsible for developing and supporting the state’s innovation system in partnership with other parts of government, research organisations, industry and business. This includes responsibility for the Office of the South Australian Chief Entrepreneur and the Office of the South Australian Chief Scientist. The group is focused on supporting sustainable economic growth by:

    • increasing South Australia’s global standing in science and research
    • encouraging commercialisation of research through industry, research and government collaboration
    • supporting entrepreneurs, startups and small business, and attracting early stage and venture capital, and
    • working across government, with industry and the community to support the skills, workforce, and international relations benefits brought about by a strong higher and international education sector.

    Callan Markwick, Executive Director, Industry and Workforce Capability

    Callan is the Executive Director, Industry and Workforce Capability, responsible for developing and supporting our creative industries and supporting sustainable economic growth through industry development, technology adoption and workforce strategies. With more than 20 years' experience in leadership roles in both public and private sector, Callan has developed in-depth knowledge and expertise in modern manufacturing, local and national training and education systems, workforce planning, and public sector policy and delivery.

    Prior to being Executive Director, Callan held senior roles delivering systemic reform, key partnerships with industry, and complex projects and strategies of state and national importance. Callan holds a Graduate Certificate of Leadership from Deakin University along with tertiary qualifications in project management, human resources, training and career development.

    South Australian Film Corporation Act 1972

    Flinders University Act 1966

    Torrens University Australia Act 2013

    University of Adelaide Act 1971

    University of South Australia Act 1990

    Adelaide Film Festival

    JamFactory

    South Australian Film Corporation

    StudyAdelaide

    The agency’s performance

    The department supports sustainable economic growth by developing creative, innovative and productive industries and businesses that leverage South Australia’s strengths.

    During 2022-23, the department delivered support and assistance to small businesses in communities impacted by the River Murray flood event.

    Highlights from 2022-23:

    • Delivered the state’s largest ever General Skilled Migration program, including substantial increase to offshore skilled migration, helping business and industry access a skilled workforce to meet skill gaps in the local market.
    • South Australia’s employers heavily utilised the state’s Designated Area Migration Agreements (DAMAs), with positions endorsed in 2022-23 more than doubling total endorsements during the previous three years in which the DAMAs have been in place.
    • Continued to invest in research talent, research infrastructure, industry-research collaboration and high-growth, high impact potential early-stage businesses, including by:
      • supporting five new Cooperative Research Centres (CRCs) bids, which are being considered under Round 24 of the Commonwealth CRC Program
      • committing $25.4 million over five years to continue support and upgrades to South Australia’s National Collaborative Research Infrastructure Strategy (NCRIS) facilities
      • establishing two Industry Doctoral Training Centres, one in biomanufacturing and one in the industrial application of quantum technologies
      • supporting high-growth and high impact potential early-stage businesses through the Startup Hub at Lot Fourteen and through direct funding initiatives, including the Research and Innovation Fund (Seed-Start) and the South Australian Venture Capital Fund.
    • Continued to support increased awareness and resilience of South Australian industry to cyber threats through the Australian Cyber Collaboration Centre.
    • Facilitated the government’s commitment to evaluating the feasibility of creating a new university for the future, Adelaide University, through a Statement of Cooperation co-signed with the Australian Government, the University of South Australia and the University of Adelaide.
    • Launched the Enabling Educator Excellence Scholarship Program through the three public universities to support targeted cohorts commencing a teaching degree to strengthen and diversify the teaching profession in South Australia
    • Launched the Office for Small and Family Business, a clear entry point for small business information and support.
    • Conducted a state-wide small business engagement to inform the development of a Small Business Strategy 2023-2030, and developed programs to respond to the immediate needs identified by small businesses in South Australia.
    • Launched the Women in Business Foundations Program and the Women in Business Advisory Program, which deliver capability and skills development for women in the early stages of their business journey, as well as focusing on preparing women owners and entrepreneurs of established businesses for growth.
    • Supported small businesses impacted by the River Murray flood event through delivering grants, on-the-ground support and financial counselling services.
    • Connected South Australian suppliers to key projects in defence, energy (including hydrogen), mining, infrastructure and construction sectors.
    • Launched the Manufacturing Growth Accelerator with Flinders University at the Tonsley Innovation District Factory of the Future site, building the capabilities and skills of manufacturers in advanced manufacturing technologies.
    • Delivered programs to local manufacturers to build capabilities and become more competitive through the adoption of manufacturing technologies, and to take advantage of new opportunities in areas such as the green economy in Australia and overseas.
    • Established in partnership with the Commonwealth Government, the South Australian Defence Industry Workforce and Skills Taskforce.
    • Commenced the development of workforce strategies and roadmaps to support key industries and regions to grow and develop their workforces.
    • Implemented workforce development initiatives, including Workforce Innovation Projects and the Regional Workforce Connector and Collaboration Program.
    • Facilitated industry development activities across creative businesses, including the music, fashion and screen sectors.
    • Delivered the Adelaide CreaTech City Challenge in partnership with the City of Adelaide and Adelaide Economic Development Agency and supported the 2023 Electric Dreams Conference.
    • Supported the South Australian music industry to recover from the impacts of the COVID-19 pandemic through Music Development Office programs, and successfully implemented and delivered the suite of grant programs under the See It LIVE election commitment package to support the state’s live music industry.
    • Supported a new production partnership between the South Australian Film Corporation and ABC to create a pipeline of screen production in South Australia.
    • Annualised the Adelaide Film Festival and, through the 2023-24 State Budget, achieved additional funding to increase the Adelaide Film Festival Investment Fund.
    • Supported screen development organisation The Mercury to transition to a new business model.
    • Initiated development of the Green Industrial Transition Roadmap and a new South Australian Manufacturing Strategy to support South Australia’s green reindustrialisation and manufacturing capability uplift.

    Agency objectives

    Indicators

    Performance

    Support industry to get the skilled workforce it needs – delivery of skilled and business migration programs to help business and industry access skilled workforce.

    Deliver South Australia’s skilled, employer sponsored and business migration programs to attract the skills and investment to help business and industry access a skilled workforce to meet skill gaps in the local market.

    8,800 state nominations approved for the General Skilled Migration program.

    Employer sponsored positions supported by South Australia as the Regional Certifying Body total 70.

    Under the Designated Area Migration Agreements (DAMAs), 56 new labour agreements and 23 variations to existing labour agreements were supported.

    906 positions endorsed under the DAMAs.

    91 DAMA skills assessments approved.

    426 Overseas Qualification Recognition certificates issued.

    70 state nominations approved for South Australia’s Business, Innovation and Investment Program, of which 31 were for Entrepreneur visas.

    Develop a high performing research and innovation system – encouraging and supporting technology adoption and the translation and commercialisation of research through industry, research and government collaboration and investment

    – investing in global excellence in South Australian science and research.

    Number of science and research projects supported, and amount invested.

    The department continued to make strategic investments to strengthen South Australia’s science, research and innovation system. Since 2016, the department has committed $77.5 million to 70 projects and initiatives, which have leveraged $786 million from the Australian Government and industry.

    Develop a high performing research and innovation system – encouraging and supporting technology adoption.

    Number of industry events held at the Australian Cyber Collaboration Centre.

    The department supported the increased awareness and resilience of cyber threats to South Australian industry through the Australian Cyber Collaboration Centre, which has hosted 253 industry events and 131 training programs since launching in 2020.

    Develop a high performing research and innovation system – delivering programs and services to entrepreneurs and startups that build capability and attract private sector capital and customers.

    Number of startup and early-stage companies supported, and amount of private investment in innovative early-stage companies.

    Unlocked $48 million of private co-investment in early-stage companies through targeted investments from the Research and Innovation Fund and the South Australian Venture Capital Fund. Supported 548 startups and early-stage businesses through the Office of the SA Chief Entrepreneur.

    Continued funding support for the Startup Hub at Lot Fourteen, managed by Stone and Chalk. Collectively, residents of the Startup Hub have raised $134 million in venture capital and other sources of funding, and have created 758 jobs.

    Develop a high performing research and innovation system – delivering programs and services for entrepreneurs and startups that build capability and attract private sector capital and customers.

    Number of entrepreneurship and innovation ecosystem initiatives supported.

    The department supported 333 programs, events and activities that broadly benefit the startup community, including EvokeAg and the annual SouthStart conference.

    Grow creative, innovative and productive industries and businesses – delivering programs and services for small and family businesses.

    Number of businesses provided with solutions to support their growth and competitiveness.

    9,590 businesses provided with information or solutions, including support for small businesses in response to the River Murray flood event.

    Grow creative, innovative and productive industries and businesses – delivering programs and services for small and family businesses.

    Number of businesses supported to build capability.

    1,106 businesses supported to build skills and capability through the Office for Small and Family Business.

    Grow creative, innovative and productive industries and businesses – delivering targeted capability development programs to address capability and knowledge gaps, build stronger foundations, and accelerate growth.

    Number of women supported to build capability.

    633 participants supported to build skills and capability through Women in Business Foundations Program (594) and the Women in Business Advisory Program (39).

    Grow creative, innovative and productive industries and businesses – building local supply chains for major projects.

    Amount of contract wins facilitated through Industry Capability Network SA (ICNSA).

    32 local businesses supported by ICNSA to win contracts for major projects to the value of $209.6 million.

    Grow creative, innovative and productive industries and businesses – delivering programs for artists, and creative businesses and organisations, to support innovation and capability building.

    Number of creative projects supported.

    2,936 projects supported through the core programs of the Music Development Office and See It LIVE support package, designed to support and build the South Australian music ecosystem.

    Grow creative, innovative and productive industries and businesses – delivering programs for artists, and creative businesses and organisations, to support innovation and capability building.

    Number of creative industries events, programs and seminars.

    17 creative industries events, programs and seminars presented at the St Paul’s Creative Centre relating to environmental sustainability, skills and workforce, and business development across creative industries.

    Support industry to get the skilled workforce it needs – delivering workforce development initiatives designed and implemented with industry and regions.

    Key performance indicators negotiated and included in workforce development funding agreements with key organisations, with outcomes reported annually.

    Seven Workforce Innovation Projects designed by industry and focused on increasing workforce capability and business productivity completed with:

    - nearly 300 participants

    - currently around 70 jobs created, with more expected as the projects wind up and participants transition from training to employment.

    Three Regional Workforce Connector and Collaboration programs with the RDA Murraylands and Riverland, RDA Limestone Coast and RDA Eyre Peninsula, which will be delivered across 2023 and 2024 to undertake place-based initiatives to deliver workforce outcomes for each region.

    Improve the state’s industrial capability and capacity – delivering industry programs that build on our state’s competitive strengths, increase value adding activity, and support the knowledge-based jobs of the future.

    Key performance indicators negotiated in manufacturing-focused funding agreements, with outcomes reported annually.

    The department is actively managing funding agreements with key South Australian manufacturing initiatives and businesses, including the Manufacturing Growth Accelerator at Tonsley, with Flinders University to build the capabilities and skills of manufacturers in advanced manufacturing technologies.

    Employment opportunity programs

    Program name

    Performance

    DIIS Graduate Program

    The department’s Graduate Program is a structured development program that includes a rotational placement across business units over a 24-month employment period. The department continues to employ two graduates, who commenced with the department in February 2022.

    Traineeships

    The department continues to host one trainee employed by a group training organisation as part of the now concluded Skilling SA Program, which supported training and skills development to address skill shortages across the private and public sectors.

    Agency performance management and development systems

    Performance management and development system

    Performance

    Performance management and development is a two-way process between managers and employees to discuss performance planning and development needs. It is expected that employees have formal conversations about their performance twice per year.

    As at 31 December 2022, 40% of employees had recorded that a performance development conversation had taken place in the past six months.

    As at 30 June 2023, 76% of employees had recorded that a performance development conversation had taken place in the past six months.

    Work health, safety and return to work programs

    Program name

    Performance

    Flu vaccination program

    A flu vaccination program was offered to all employees as a combination of onsite clinics and pharmacy vouchers. 47 onsite vaccinations were administered, and 35 employees registered for a voucher.

    Wellbeing initiatives

    Several training and information sessions were provided, including Mental Health Awareness, Mental Health First Aid, Dealing With Difficult and Emotional Clients (for the Office of Small and Family Business), and Fostering Psychological Safety in the Workplace (for the South Australian Film Corporation).

    The department’s Employee Assistance Program provider (Corporate Health Group) was engaged in September 2022 to provide onsite 1:1 support for all employees during DIIS’ organisational change process.

    Corporate Health Group was again engaged in December 2022 by providing check-ins and offering support to all employees mobilised for flood recovery related activities. Employees attending the Riverland were offered the Japanese Encephalitis (JEV) vaccine, with a total of seven vaccinated.

    The department encouraged employees to participate in an internal 10,000 Steps Walking Tournament in June 2023. A total of 41 staff participated in the tournament.

    The department engaged an occupational therapist to perform workstation ergonomic assessments for employees following an accommodation project in which many employees were required to physically relocate to other workstations within DIIS. A total of 17 staff were assessed.

    Workplace injury claims

    Current year
    2022-23

    Past year

    2021-22

    % Change
    (+ / -)

    Total new workplace injury claims

    1

    0

    +100%

    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)

    3.23

    0

    +100%


    *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

    Current year
    2022-23

    Past year

    2021-22

    % 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**

    Current year
    2022-23

    Past year

    2021-22

    % Change
    (+ / -)

    Total gross workers compensation expenditure ($)

    $33,663.53

    $108,358

    -68.9%

    Income support payments – gross ($)

    $2,959.10

    $0

    +100%

    **before third party recovery


    Data for previous years is available at: Data.SA

    Executive employment in the agency

    Executive classification

    Number of executives

    SAES1

    12

    SAES2

    3

    EXEC (Chief Executive)

    1


    Data for previous years is available at: Data.SA

    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 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 2022-2023 are attached to this report.

    Statement of Comprehensive Income

    2022-23

    Original Budget

    $000s

    2022-23 Actual

    $000s

    Variation

    $000s

    2021-22 Actual

    $000s

    Total Income

    413 323

    78 370

    (334 953)

    535 888

    Total Expenses

    450 698

    88 217

    362 481

    475 010

    Net Result

    (37 375)

    (9 847)

    27 528

    60 878

    Total Comprehensive Result

    (37 375)

    (9 847)

    27 528

    60 878

    The department reported a $9.847 million net loss in the 2022-23 financial year. This result is $27.528 million favourable compared to original budget, mainly relating to the transfer of budgets to the Department for Education following the transfer of training and skills functions effective from 1 July 2022. Further detail is provided at note 1.5 of the full audited financial statements.

    Statement of Financial Position

    2022-23

    Original Budget

    $000s

    2022-23 Actual

    $000s

    Variation

    $000s

    2021-22 Actual

    $000s

    Current assets

    74 398

    30 215

    (44 183)

    133 940

    Non-current assets

    19 441

    9 571

    (9 870)

    29 458

    Total assets

    93 839

    39 786

    (54 053)

    163 398

    Current liabilities

    19 827

    9 300

    10 527

    26 351

    Non-current liabilities

    13 107

    12 065

    1 042

    16 095

    Total liabilities

    32 934

    21 365

    11 569

    42 446

    Net assets

    60 905

    18 421

    (42 484)

    120 952

    Equity

    60 905

    18 421

    (42 484)

    120 952

    The department’s net assets at 30 June 2023 were $18.421 million, $42.484 million lower than original budget, mainly due to the transfer of net assets to the Department for Education following the transfer of training and skills functions effective from 1 July 2022 that was not included in original budget, partially offset by an improvement in net result compared to original budget.

    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

    All consultancies below $10,000 each - combined

    Various

    $ 8 375

    Consultancies with a contract value above $10,000 each

    Consultancies

    Purpose

    $ Actual payment

    Ernst & Young

    Independent advisor to facilitate a review of ICT Services and ICT Operating Model to better align with departmental needs and objectives.

    $50 000

    Karuah Enterprise Services

    Expert advice to guide the development of South Australia’s Manufacturing Strategy and Action Plan.

    $48 000

    PriceWaterhouseCoopers Consulting (Australia) Pty Ltd

    Develop a consolidated summary from nine participating government agencies on the Green Industrial Transition Roadmap.

    $49 750

    The Superpower Institute Limited

    Develop the Green Industry Transition Roadmap to deliver a comprehensive vision for South Australian industry.

    $120 000

    Total

    $276 125

    Data for previous years is available at: Data.SA

    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

    $81 681

    Contractors with a contract value above $10,000 each

    Contractors

    Purpose

    $ Actual payment

    4th Harmonic Pty Ltd

    Support for the joint Commonwealth and South Australian Government co-design of a potential Naval Shipbuilding Skills and Training Academy.

    $135 244

    Accru Harris Orchard

    Coaching and advisory services.

    $13 600

    Adrienne Curtis

    Business administration services for the Kangaroo Island Business Hub.

    $20 160

    Advanced Focus

    Support for the development of grant agreement governance.

    $14 000

    BDO Services Pty Ltd

    Advisory services for the flood support program.

    $10 640

    BDO Services Pty Ltd

    Risk and audit management and strategy services.

    $28 621

    Complexity Solutions Pty Ltd

    Engagement support to progress the work of the SA Defence Industry Workforce and Skills Taskforce.

    $68 251

    Datacom Systems (AU) Pty Ltd

    Planning support for domain and workload migration.

    $19 991

    DBusiness Pty Ltd

    Event management services for the 2022 South Australian Science Excellence Awards.

    $11 460

    Deloitte Financial Advisory Pty Ltd

    Cost benefit analysis update for the Startup Hub at Lot Fourteen.

    $14 650

    Deloitte Touche Tohmatsu

    Analysis of the economic contribution of international education and training to the South Australian economy.

    $41 028

    Duck & Partners Pty Ltd trading as Duck Pond Solutions

    Strategic advisory services for the Enterprise Customer Relationship Management project.

    $20 000

    Ernst & Young

    Support for the development of the South Australian Hydrogen Workforce Roadmap.

    $50 000

    Frame Creative Pty Ltd

    Website development services for the department's corporate website.

    $49 890

    Hannan Duck & Partners Pty Ltd

    Review and support services for the South Australian Cyber Security Framework Attestation.

    $10 000

    Intellectual Capital Services Ltd

    Gap analysis for the Green Industrial Transition Report.

    $25 000

    Intellectual Capital Services Ltd

    Deliver information sessions and workshops to South Australian manufacturing businesses and stakeholders regarding the opportunities and challenges of the green economy.

    $160 000

    ISC Consulting Group Pty Ltd

    Deliver the Future Industries Exchange for Entrepreneurship (FIXE) Leadership Development Program.

    $25 000

    Jones Lang LaSalle Advisory Services Pty Ltd

    Supply and demand analysis for purpose-built student accommodation.

    $20 000

    JP Media Group Pty Ltd

    Content creation and marketing template documents for the Office for Small and Family Business.

    $25 000

    KPMG

    Post implementation review of governance recommendations.

    $24 274

    KPMG

    Develop tools, guidelines and templates to assist with the development and evaluation of small business programs.

    $45 027

    KPMG

    Support the development and delivery of the Enterprise Plan.

    $76 963

    Lumoptix LLC

    Report for the opportunities for global photonics companies in South Australia.

    $26 000

    McMillen International Pty Ltd

    Provision of services, as Chief Scientist, on matters of science, technology, and innovation.

    $180 000

    Mercer Consulting (Australia) Pty Ltd

    Support the evaluation and update of Executive position descriptions.

    $31 500

    Michels Warren Pty Ltd

    Videography services for the small business program launch.

    $10 730

    Naked Bookings Pty Ltd

    Development and delivery of an online See it LIVE! E-Voucher System.

    $109 480

    Nexon Asia Pacific Pty Ltd

    Domain migration for the Petroleum Exploration and Production System.

    $36 689

    Nilsen (SA) Pty Ltd

    Electrical maintenance services for the TechHub.

    $13 541

    Optible Ventures Pty Ltd

    Provision of a grant screening platform to assist with the assessment of grant applications.

    $107 550

    Our Community Pty Ltd

    Provision of a grant management system.

    $41 174

    Pitstop Marketing Pty Ltd

    Develop an e-communications strategy for small business.

    $12 150

    PriceWaterhouseCoopers Consulting (Australia) Pty Ltd

    Develop a targeted workforce analysis to address workforce challenges in priority regions.

    $59 907

    Proficiency Group Pty Ltd trading as Information Proficiency & Sigma Data Solutions

    Information proficiency services for the dataset separation project.

    $14 800

    RASU Film & Stills Pty Ltd

    Photography and videography services for the South Australian Science Excellence Awards.

    $45 000

    Rural Business Support Services

    Financial counselling for small businesses impacted by the River Murray flood event.

    $266 303

    Society Marketing Communications

    Case study production including photography, videography and copy writing for the Women in Business program.

    $39 282

    The Sideways Theory

    Brand positioning and creative development services for small business.

    $14 350

    University of Canberra

    Trident and qualification analysis of National and South Australian data relating to Creative Industries within the 2021 Census.

    $10 000

    YDR Pty Ltd

    Loss adjustment services to assist with the assessment of Small Business Flood Recovery grant applications.

    $61 979

    Various

    Temporary labour hire.

    $422 727

    Total

    $2 493 642


    Data for previous years is available at: Data.SA

    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 and audit at a glance

    The department’s Risk and Audit Committee (RAC) in its advisory capacity assists the Chief Executive to fulfil their responsibilities in matters relating to integrity of the financial statements, compliance with relevant legal and regulatory requirements, performance of the internal audit function and efficient and effective management of all aspects of risk. The RAC is chaired by an external member and met six times in 2022-23.

    The department’s risk profile has evolved, resulting in the identification of 10 strategic risks, which have been assigned to experienced Senior Managers and Directors for monitoring and reporting, with oversight provided by the leadership team and the RAC. Risk management strategies have continued to be deployed across the department through the revised enterprise risk management framework.

    Several internal audit projects, compliance and framework reviews and assurance activities are regularly performed to test, support and enhance the effectiveness of internal controls.

    Fraud detected in the agency

    Category/nature of fraud

    Number of instances

    Suspected fraudulent claims under grants programs administered by the Department

    2

    NB: Fraud reported includes actual and reasonably suspected incidents of fraud.

    Strategies implemented to control and prevent fraud

    The department is strongly committed to the identification, management and response to the risk of fraud through promoting a positive risk culture, maintaining a robust internal controls environment and employee awareness.

    Employees are screened prior to an offer of employment being made and provided with resources relating to the Public Sector Code of Ethics and a mandatory Code of Ethics awareness training program. Expectations are regularly communicated to staff through reminders of their responsibilities regarding the Code of Ethics, gifts and benefits, conflicts of interest, and secondary employment.

    The department maintains a robust corporate governance framework, grants management framework, internal audit plan and enterprise risk management framework, which collectively contribute to the organisational governance and control environments for managing risks, including fraud risks. The department also maintains fraud control policies and procedures, which outline the mandatory process to report all cases of actual or suspected fraudulent activity, and the fraud control plan documents the activities performed across the agency to enable the prevention, detection and reduction of fraud, corruption, misconduct and maladministration.

    The department also maintains an effective internal control environment supported by risk-based Financial Management Compliance Program activities to provide assurance that the agency’s financial report is not materially misstated due to fraud.

    On 1 May 2023, the Independent Commissioner Against Corruption (ICAC) announced that the department was selected for an evaluation of practices, policies and procedures related to the administration of grants programs. The department is assisting ICAC in its evaluation and looks forward to the ICAC’s findings in due course, and any recommendations to further improve internal controls, reporting and management systems.

    Data for previous years is available at: Data.SA

    Public interest disclosure

    Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:

    0

    Data for previous years is available at: Data.SA

    Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.

    NIL

    Reporting required under the Carers’ Recognition Act 2005

    The Department for Industry, Innovation and Science is an applicable organisation for the purposes of the Carers’ Recognition Act 2005.

    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 noncompliance with section 6.

    The Department provides online training to staff regarding disability and inclusion, which includes the Carer’s Recognition Act 2005, as well as flexible working and special leave options to assist employees in meeting caring responsibilities.

    Number of public complaints reported

    Complaint categories

    Sub-categories

    Example

    Number of Complaints

    2022-23

    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

    1

    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

    1

    Additional metrics

    Total

    Number of positive feedback comments

    0

    Number of negative feedback comments

    1

    Total number of feedback comments

    69

    % complaints resolved within policy timeframes

    100% [1 complaint]


    Data for previous years is available at: Data.SA

    Service improvements

    The department is committed to ensuring information and services are easy to access, and welcomes feedback from our customers and the general public.

    Of the 69 feedback comments received during 2022-2023, one was a complaint, and the remainder were operational enquiries or suggestions referred to the relevant business unit for action.

    These feedback and complaints assist the department to continually improve the overall customer experience and service.

    Compliance statement

    The Department for Industry, Innovation and Science is compliant with Premier and Cabinet Circular 039 – complaint management in the South Australian public sector.

    Y

    The Department for Industry, Innovation and Science has communicated the content of PC 039 and the agency’s related complaints policies and procedures to employees.

    Y