Key efficiency indicators

1. Timeliness of initial response to Ministerial requests and Parliamentary Questions

Target: 90 per cent of responses provided on time

It is essential that the FPC remains committed to providing accurate and timely information to our Minister and Parliament to enable informed decisions to be made, and the effective functioning of our Government. It is also important that the FPC operates with accountability and transparency as appropriate.

Each Ministerial request and Parliamentary Question has a deadline placed on it, which is agreed with the Minister’s Office. The FPC will meet the key efficiency indicator target if at least 90 per cent of Ministerial requests and Parliamentary Questions are responded to within the agreed timeframes. During 2018-2019 the FPC achieved a 100 per cent on-time result.

*Results have been rounded to the nearest one per cent. During 2018-2019 one Ministerial was overdue by one day.

2. Timeliness of response to stakeholder concerns or complaints

Target: Response to 90 per cent of stakeholder concerns or complaints within 28 days (excluding the initial confirmation response)

As part of the FPC’s commitment to stakeholder engagement, it is important that the FPC is responsive to stakeholder concerns or complaints. Providing a timely response is an important part of effective complaints handling. As such the FPC has set a target that 90% of responses will be within 28 days of the initial receipt of the complaint. That means that within 28 days, an outcome would be reached, or the FPC has made substantial progress towards an outcome and provided a response. It is only counted as meeting the target deadline if a response (usually in writing) has been given prior to 28 days from the initial receipt of the complaint or concern.

It is important to note that some complaints or concerns may take longer than 28 days to reach a final outcome, and not all complaints or concerns will necessarily be resolvable. However, the FPC will maintain communication with the complainant or stakeholder raising a concern until such time as an outcome is reached. The FPC aspires to work constructively and proactively with all stakeholders and to address any concerns or complaints raised within a reasonable timeframe. This in turn will assist with helping to promote public trust in the FPC’s complaint handling process.

 

3. All high-value sawlog resource processed locally

Target: 100 per cent of sawlog is processed locally – excluding any trials or research undertaken

In order to support Western Australia’s forest industry, the FPC seeks to ensure all sawlog is processed within Western Australia. As such, all native forest contracts of sale include clauses requiring domestic processing.
The FPC may allow timber to be processed outside of Western Australia if there is a perceived benefit to the Western Australian industry. For example, the FPC may allow trial timber processing elsewhere with the view to enhancing Western Australia’s timber processing capacity.
 

 

4. Green sandalwood roots as a percentage of green sandalwood harvested

Target: Total green volume includes a minimum of 25 per cent roots

Recovery of sandalwood root material, which contains a high oil content increases the value of the overall product and reduces the number of trees harvested. Therefore, it is important for the sustainability of the industry to maximise root recovery. Improvements in harvesting have enabled better root recovery in recent times. The target of 20 percent in 2016-2017 was raised to 25 percent for 2017-2018 and 2018-2019 financial years to capture improvement aspirations.

Note that the previous green root percentage reported in 2017-2018 annual report for the 2017-2018 financial year has been amended from 34% to 25%, as it was incorrectly reported in the 2017-2018 annual report.

 

5. Log delivery consistent with contractual obligations

Target: 98 per cent of log deliveries satisfy contractual obligations

Native forest and plantation

For the purpose of this key efficiency indicator, the FPC is reporting against actual volumes sold versus budgeted sales volume as a means of demonstrating that log deliveries are satisfying contractual obligations.
The FPC’s target for log deliveries is to deliver and therefore sell at least 98 per cent of the total budgeted sales volume.

The FPC’s sales targets are calculated based on a number of factors  including amount of resource available under the FMP, and market conditions. Sales targets are reflected in volumes allocated under the FPC’s sales contracts, and these contracts necessarily include provisions allowing for adjustments due to year on year factors effecting demand.Contractual obligations are met by enabling operations to be tailored to meet market requirements. Following the setting of targets, customers have flexibility to order a minimum of 80 per cent of their contracted volumes. Where customers have exceeded acceptable levels of debt, the FPC ceases deliveries. Note the target is not adjusted to account for the minimum customer order requirements or suspensions in delivery both of which have impacted the results.

Sandalwood

A small quantity of sandalwood resource is committed under a domestic sales contract. However, for the purpose of this key efficiency indicator and for consistency with native forest and plantation sectors, the FPC is measuring performance against meeting sales targets. Sales targets are set based on a number of factors including resource available and market environment across the domestic and export sectors. The below graph
shows the volume of sandalwood product sold as a percentage of the budget sales target.

 

6. Cost per dollar of revenue generated

Target: The cost per dollar of revenue generated to decrease over time

Due to a change in classification of biological assets to an intangible right of use asset, per note 9.11 of the financial statements, the 2017-2018 results for native forest and sandalwood have been retrospectively amended following the change in accounting policy.

Native forest

The unit cost per dollar generated in 2018-2019 increased due to the effect of a change to the accounting treatment of the native forest as a depreciating right of use asset which resulted in additional amortisation expense of $2.2 million. This had a non-cash impact on the overall cost per dollar revenue generated of an additional six cents per dollar of revenue in 2018-2019. If no accounting change had occurred the cost per dollar would have remained at $0.99 per dollar for native forest.

Previously the cost per dollar result reported for 2017-2018 was $0.99. This has been updated to $0.73 per dollar (a decrease of 26 cents), following the change in accounting policy for native forest, to include the reversal of impairment on the native forest right of use asset ($11.9 million). 

Plantations

The unit cost per dollar generated in 2018-2019 increased by four cents, despite higher sales, as a result of a product mix that includes a greater quantity of lower margin products and the additional costs associated with a fire in the Lewana plantation ($2.6 million).

Sandalwood

Using the previous methodology costs per dollar have increased from $0.65 in 2017-2018 to $0.72 for 2018-2019 due to an increase in production costs. The reported unit cost per dollar generated in 2018-2019 was $0.80 under the revised accounting policy, the difference from $0.72 being due to the change in accounting treatment.
 
The sandalwood cost per dollar revenue generated for 2017-2018 was previously reported as $0.65 in the FPC’s 2017-2018 annual report. Following the change in accounting policy (see note 9.11) the result has retrospectively been adjusted to $0.79 due to the inclusion of additional contributional licence revenue ($13.4 million) offset by an equivalent additional amortisation expense ($13.4 million).