ARBV Annual Report 2021-2022

We are pleased to present the Annual Report of the Architects Registration Board of Victoria (ARBV) for the 2021-22 financial year.

At the ARBV, the last financial year was a period of consolidation and establishing new strategic direction. The Board and ARBV staff embarked on a new biennial cycle of activities in response to the Statement of Expectations issued by the former Minister for Planning, the Hon Richard Wynne MP, in July 2021.

The ARBV has continued to develop and enhance processes that allow staff and the organisation to deliver its services with timeliness, apply risk-based strategies, commit to decisions with integrity, independence and transparency, and continue to provide services in the public interest. The Board has been working closely with management to strengthen the ARBV's effectiveness as the regulator of the largest cohort of registered architects in Australia. Underpinning every aspect of the ARBV’s work is a strong commitment to engage, cooperate and communicate with other regulators, its duty holders, industry stakeholders and the public.

This annual report outlines progress made, and steps taken to meet those overarching strategic goals. Here, we take the opportunity to underline only the most significant initiatives that have commenced or were completed in the last twelve months.

The Board worked closely with management in developing the ARBV Service Charter, which sets out the standard of service that Victorians can expect from the ARBV. The Charter explains the long-standing role, values, and functions of the ARBV and provides direction for anyone willing to engage directly with our organisation, including making a complaint or giving feedback on the services we provide.

The Automatic Mutual Recognition (AMR) scheme for architects commenced in Victoria on 1 January 2022, allowing individuals to use their home state occupational registration to work in participating Australian states and territories, without the need to apply for registration or pay fees in the second state. The ARBV worked closely with other regulators and both State and Commonwealth Government agencies to develop systems and processes for sharing information, including a new public-facing AMR register on our website.

In March 2022, the Board and senior management gathered for the annual ARBV Planning Day. The day's activities directed the ARBV to commence work on a new four-year Strategic Plan. A draft of the new strategy was completed in June 2022 and is planned for release in late 2022. The draft strategy sets a provisional framework of direction under a new vision and mission, and a detailed plan of objectives that will guide the ARBV until 2026.

Work on the new strategy gave staff and the Board a chance to reflect on the culture of a public entity with one hundred years of history. The long-standing culture of the ARBV rests on understanding the architectural profession and its current standards of professional conduct, transparency and procedural fairness, and governance practice tailored to the functions set out in the legislative framework of the Victorian Architects Act 1991 (the Act) and the Architects Regulations 2015.

The Board continued to meet its calendar appointments remotely due to the ongoing global pandemic, and for many Board and staff members, the Planning Day was the first opportunity to meet in person. ARBV Board and workshop meetings take place monthly and are complemented by additional appointments for committee meetings, training, and theme-based working group sessions. Since July 2021, the Board has welcomed five new members who have quickly adjusted to the organisation's culture and pace and made valuable contributions.

The new arrivals allowed the Board to engage in the launch of a new program of induction for Board members, which spanned over several months with collective seminar-based training and one-on-one discussions with the Chairperson. The induction program, combined with the individual expertise, skill and knowledge brought by each individual Board member, has strengthened an already existing solid leadership and culture of governance at the ARBV.

A point of strength of the current Board derives significantly from the availability of a balanced matrix of skills and professional expertise, which includes consumer representatives, professionals of the building industry and several registered architects with complementary skills coming from government, academia, large and small practice.

The Board has continued monitoring and providing accreditation for Schools of Architecture in Victorian universities. Working in collaboration with the Architects Accreditation Council of Australia and aligning with the decisions of other Australian Registration Boards, the ARBV has also taken important and nationally consistent decisions that will improve the prerequisite activities of professional practice required to sit the Architectural Practice Exam.

Assessing and responding to complaints for alleged unprofessional conduct and its associated decision-making for referrals for inquiry to the Architects Tribunal is essential to the Board's activities. As is protecting Victoria’s consumers from unregistered persons representing themselves as architects in breach of the Act’s prohibited conduct provisions. Such breaches may be prosecuted in the Magistrates Court of Victoria by the ARBV and in 2021-22 ARBV has been working to strengthen its oversight of and enforcement in relation to prohibited conduct.

Since the revision of the ARBV's Regulatory Strategy in 2021, the ARBV has worked on improvements to its investigation processes and reporting to the Board. These revised processes allow Board members to follow a more co-ordinated approach for managing conflicts of interest, gain a thorough understanding of the circumstances of each case from a legal perspective and gather insight on trends and patterns of non-compliance that may warrant proactive regulatory activities.

The Board is committed to proactive regulatory activities and educational initiatives that complement the regulatory functions prescribed by legislation. In the last year, the ARBV continued to support universities with a small but symbolically important monetary award for students of architecture who excel in the study of professional practice and committed, in collaboration with the New South Wales Architects Registration Board, to a pilot research initiative on systemic risks for the architectural profession in Australia that will be published in late 2022.

Despite global disruptions and uncertain economic prospects, Victoria remains an attractive destination for studying architecture and registering as an architect. The ARBV has continued to operate as a financially independent public entity without weighing on the State Government budget, supported by the examination fees paid by APE candidates and registration fees paid by architects and approved companies and partnerships that provide Architectural services in Victoria.

In the 2021-22 financial year, the growth of registrations and strict expenditure control allowed the ARBV to maintain a small operating and cash surplus whilst also meeting capital expenses for enhancing the new digital Customer Relationship Management system, the procurement of a new office fit out, and relocation to the new premises.

In order to continue implementing our busy cycle of activities and regulatory improvements, while maintaining an independent and sound financial position, the Board has taken steps to discuss and review the viability of the current fee structure over the long term.

On several occasions, the Board and ARBV have worked closely with the Department of Environment, Land, Water and Planning (DELWP), progressing initiatives for sectoral reforms and discussing plans for strengthening the ARBV and its regulatory remit for the future, and we have continued to engage with the same purpose with leaders of membership organisation of the architectural profession, the Association of Consulting Architects, the Australian Institute of Architects and the ArchiTeam Cooperative.

The ARBV continues to provide an essential role in national leadership as a member of the Architects Accreditation Council of Australia. In this role, the ARBV fulfils, through the Chairperson and CEO/Registrar, representation from Victoria in the coordination and governance of a national framework that sets criteria for course accreditation, national examination, international agreements for overseas qualifications and setting competency standards that inform the registration and conduct of the profession of architecture in Australia.

In conclusion, we wish to express our gratitude to the staff of the ARBV who continued to work with daily commitment in supporting the implementation of many changes within the organisation. We wish to also thank the members of the Board, Bruce Allen, Sophie Cleland, Mark Curry, Richard Drew, Stefan Preuss, Danielle Roche and Deputy Chairperson Richard Salter, for their ongoing support and strategic advice and their steadfast commitment to promoting higher standards of professional conduct among architects in the public interest.

Lastly, thank you to our duty holders, the Victorian architects, for their ongoing support to the ARBV through registration and the valuable services they continue to provide to their clients and the Victorian community.

Dr Giorgio Marfella (Chairperson) and Dr Glenice Fox (CEO/Registrar)

The responsible Minister for the period from 1 July 2021 to 27 June 2022 was the Hon Richard Wynne MP, Minister for Planning. The responsible Minister for the period from 27 June 2022 to 30 June 2022 was the Hon Lizzie Blandthorn MP, Minister for Planning.

Establishment and Role

Established in 1923 the ARBV is a self-funded Victorian public sector entity.

The Architects Act 1991 (the Act) establishes the framework for the regulation of architects in Victoria and has as its purposes:

• to provide for the registration of architects
• to provide for the approval of partnerships and companies providing architectural services
• to regulate the professional conduct of architects
• to provide a procedure for handling complaints against architects
• to regulate the use of the terms “architect”, “architectural services”, “architectural design services” and “architectural design”
• to establish the Architects Registration Board of Victoria.

Functions

The ARBV’s statutory functions include:

• assessing and determining applications for registration from individuals and applications for approval from partnerships and companies
• suspending and cancelling registrations or approvals and revoking suspensions where required
• regulating the professional conduct of architects, approved partnerships and approved companies
• preparing guidelines on professional conduct and practice for architects, approved partnerships and approved companies
• publishing information relating to the operation of the ARBV and the Act
• together with the Architects Accreditation Council of Australia (AACA), administering the Architectural Practice Examination, the most common pathway to registration
• accrediting architectural programs of study within Victoria, in accordance with the established Architecture Program Accreditation Procedure in Australia and New Zealand administered by the AACA and in doing so, determining qualifications required for registration under the Act
• investigating and bringing proceedings for offences against the Act
• carrying out any other powers and functions which are given to it by the Act or which are necessary to implement the Act.

Nature and Range of Functional Areas at the ARBV

Registration

Registration is responsible for registration-related activities, including assessing and determining applications for registration. It also includes applications for applicants seeking registration for the first time, architects seeking to change their class of registration, architects seeking registration with the ARBV via mutual recognition, and architects seeking to renew their registration. The function also oversees suspensions and cancellations of registration and revocations of suspension. The function is also responsible for maintaining the Register of Architects, supporting the AACA in its administration of the Architectural Practice Examination (APE) and other pre-registration pathways, and assisting the administration of accreditation. It also provides secretariat support to the National Registrars Forum.

Complaints and Investigation

The ARBV receives complaints and notifications and where appropriate investigates matters relating to professional conduct or prohibited conduct matters. Based on cumulative information, this function identifies systemic or emerging issues based on its data analysis and information sharing. The Complaints and Investigation team maintains collaborative relationships with other regulators and stakeholders. The ARBV seeks to identify and act upon possible non-compliance as early as possible and provide guidance to architects and consumers through its proactive regulatory strategies.

Legal

The legal section provides legal, regulatory and policy advice and may represent the ARBV in proceedings. The function coordinates administrative support for the Architects Tribunal in relation to disciplinary proceedings. It also manages freedom of information (FOI) and privacy matters, including the assessment of FOI requests in accordance with the Freedom of Information Act 1982 and guidelines issued by the FOI Commissioner. The function also supports implementation of Victorian Government policy and assists other divisions to bring into operation the various regulatory requirements.

Governance

The governance function ensures the necessary mechanisms, frameworks, processes, policies and procedures are in place to meet the organisational, statutory and whole of government compliance and accountability requirements and facilitates the effective and efficient operation of the Board and its committees.

Finance and Corporate Services

Finance: Finance ensures accurate, transparent and timely management of financial information including management of revenue from applications, registration and examination fees together with strong financial management of budgeted expenditure.

Risk Management, Auditing and Compliance: This function is responsible for establishing effective systems and controls for financial management and performance and sustainability of the ARBV, including internal control, risk management, auditing and meeting government compliance requirements.

Business Services: This function encompasses building and facilities management, sustainable procurement, information services, and office administration.

Human Resources: The human resources function includes payroll services, compliance with key governance obligations, industrial and employee relations, workforce planning, capability development, organisational culture and occupational health and safety and employee wellbeing.

Communications and Engagement: This function is responsible for public relations, issues management, stakeholder relations, corporate communications (publications and external messaging) and digital presence.

Our Regulatory Strategy (Strategy) is intended to help architects, approved partnerships and companies regulated by the ARBV develop a strong and effective compliance culture.

The Strategy embeds a risk-based approach to regulation. This means our regulatory activities and resources are focused in areas where the risk of non-compliance – that is, the probability and impact of non-compliance – is greatest.

The higher the risk associated with non-compliance, the more serious, resource intensive and timely our regulatory response.

The risk-based approach guides our regulatory activities and assists us in determining an appropriate regulatory response.

This approach ensures the objectives underlying the regulatory framework are met, while avoiding undue burden on regulated entities.

Regulatory objectives

In overseeing the regulatory framework, the ARBV aims to:

• promote and maintain high standards of professional conduct and practice
• restrict who can represent themselves as architects
• ensure only suitably qualified entities are registered and approved
• ensure compliance with insurance requirements
• maintain professional accountability of architects
• support architects to fulfil their duties and to engender confidence in and respect for the profession
• encourage and support voluntary compliance.

The ARBV conducts proactive and reactive regulatory activity.

Proactive regulatory activity

Proactive regulatory activity is undertaken on the ARBV’s own initiative to encourage compliance and detect and/or deter non-compliance.

The ARBV’s proactive strategic plan assists with early identification of emerging compliance issues and challenges that regulated entities may face in complying with the regulatory framework.

Proactive activities include:

• providing educational materials to assist practitioners understand and meet their obligations
• engaging with practitioners at industry meetings, stakeholder events and in one-on-one discussions to discuss compliance issues and encourage voluntary compliance
• monitoring of a compliance issue, regulated entity or group of regulated entities based on information received externally or generated internally
• carrying out surveys and questionnaires to help the ARBV better understand industry-wide issues and conditions
• engaging with practitioners and other stakeholders to help practitioners avoid inadvertently breaching protected terms or prohibited conduct provisions
• investigating matters identified through analysis of data and through liaison with relevant stakeholders to determine whether or not non-compliance has occurred.

Reactive regulatory activity

The ARBV undertakes reactive regulatory activity to respond to instances of actual or possible non-compliance. It can result from:

• complaints made to the ARBV by another regulator, client or user of architectural services, or other member of the public
• detection of non-compliance through other activities undertaken by the ARBV, including proactive regulatory activity.

The ARBV’s risk-based approach is used to determine the appropriate response to instances of non-compliance.

The ARBV’s reactive regulatory activity may include:

• education and engagement
• informal advice or warning
• formal warning
• referral to the Architects Tribunal where it has concerns about an architect’s fitness to practise and/or professional conduct
• other regulatory action to mitigate risk, such as suspending or cancelling registration or approval
• institution of prosecution proceedings.

Registration

Registration is an important regulatory function that controls entry to the profession and provides assurance to consumers that architects possess a high standard of education and experience, adhere to prescribed standards of professional practice and hold Professional Indemnity Insurance.

Qualifications for registration

Individuals seeking registration as an architect in Victoria must have been engaged for not less than two years in practical architectural work and attained a standard of professional practice satisfactory to the ARBV. The Act makes provision for the main pre-registration pathway being the Architectural Practice Examination (APE) for this purpose, as it allows candidates to be tested on their practical knowledge. The APE has been adopted by all Australian state and territory architect registration boards, providing national consistency in pre-registration examinations.

The APE is the most common pathway to registration and is held twice in each calendar year. The other pathways to registration are administered by the AACA and include the Experienced Practitioner Assessment (EPA) – for both overseas experienced and locally experienced individuals and overseas mutual recognition (APEC and US architects).

The fit and proper person (FPP) requirements for registration (first introduced in July 2020) requires registrants to answer questions related to their fitness to practice. FPP is determined during the registration assessment and can help to provide initial insights into the risk profiling of a regulated entity. This initial understanding of risk profiles provides useful information to inform education and monitoring of newly regulated entities.

ARBV has also introduced an enduring declaration at renewal for registrants to provide details of changes in their registration related to the FPP requirements contained in section 10A of the Act.

While continuing to deliver registration business as usual services, the emphasis in 2021-22, consistent with the overall organisational strategy, has been to deliver enhancements to the registration function. This has included:

• Working to ensure that registration pathways remain nationally consistent.
• Reviewing and developing policies and procedures as part of the implementation of the regulatory strategy and to ensure they meet legislative requirements.
• Collaborating with the AACA and other architect registration boards to implement improvements to relevant registration and examination procedures and processes.
• Overseeing the accreditation processes administered by the AACA.
• Managing the Continuing Professional Development (CPD) process, including the implementation of the mandatory CPD declaration.
• Managing compliance with PII requirements.
• Reviewing and improving record management for registrant records.
• Laying the foundations for an audit mechanism to detect unapproved companies, for implementation in the coming year.
• Improving communications regarding the registration renewal process and the overall regulatory framework.
• Contributing content for the ARBV Update provided quarterly to registrants.

Compliance with Professional Indemnity Insurance requirements

Section 8B and 8C of the Act require practising architects to be covered by professional indemnity insurance that complies with requirements set out in the Architects Insurance Ministerial Order of February 2020. The Board audits compliance with this requirement and suspends the registration of architects who fail to comply. The CRM now enables more efficient auditing of compliance with insurance obligations.

In 2021-22, the Registration team implemented a targeted strategy to audit compliance with professional indemnity insurance requirements and ensure architects meet statutory requirements. Over 3,000 incidences of non-compliance were detected with most incidences relating to a failure to provide a copy of the PII certificate of currency to the ARBV. Further compliance work is planned in the coming year.

Registration renewal

The ARBV has continued to improve communications about the renewal process to promote compliance by registrants with the 1 July date for payment of prescribed annual fees. The introduction of the CRM system has improved the overall renewal process and allowed registrants to be more actively engaged with their compliance obligations for renewal and more widely their registration obligations for PII.

Where the prescribed fee is not paid by the due date (which may be extended in agreed circumstances, e.g. through the Financial Hardship Policy) ARBV may initiate steps to suspend the registration of the regulated entity. If a regulated entity fails to pay their registration renewal, ARBV may suspend their registration.

Numbers of suspensions relating to non-payment of annual fees since 2018-19 are as follows:

Notes:

1. Registrants required to pay annual fees: architects (practising), approved companies and approved partnerships.

Registration and Architectural Practice Examination Statistics

Notes:

1. Partnerships were previously combined with companies for reporting purposes.
2. Changing of Registration Class was first reported on in 2018-19.

Notes:

1. Due to changes in recent years in how we record Non-Practising registrants on the Register of Architects the total in 2020-21 appears greater. This primarily relates to the treatment of Non-Practising registrants holding inactive status.

Notes:

1. Partnerships were previously combined with companies for reporting purposes.

Notes:

1. Due to coronavirus (COVID-19) only one APE session was completed in the financial year 2019-20 leading to the postponement of 223 candidate examinations.

Notes:

1. Suspensions were not previously reported prior to 2018-19.

Complaints and Investigations

The ARBV Complaints and Investigation function exercises the regulatory powers of the Architects Act 1991 (the Act) to maintain the standards and integrity of the profession of architecture, to protect consumer interests and to promote the importance of registration. The Act enable the ARBV to investigate matters on its own initiative or on the complaint of any person.

In 2021-22, the ARBV continued to enhance its data analysis capability by integrating historical complaints and Tribunal inquiry outcomes and introducing a complaints issue categorisation in its CRM. As a result, the ARBV has been able to refine its risk profiles and understanding of systemic or emerging issues. Information generated from the ARBV’s enhanced data analysis has facilitated:

• Design of evidence-based and targeted proactive regulatory activities
• A more efficient investigation and risk assessment function
• Participation in regulatory and industry forums to share insights and learnings
• Increased ability to support information sharing with other building regulators

The ARBV has also updated its complaints handling policy and procedure to include, amongst other things, key performance indicators and timeframes for complaints handling and a distinction between assessment and investigation phases.

These enhancements allow for improved handling and prioritisation of complaints to maximise timeliness and efficiency of complaint handling and communication of outcomes to relevant stakeholders.

Other highlights:

During 2021-22, the ARBV initiated the process of employing its information gathering power under section 17B of the Act in a prohibited conduct investigation.

The ARBV continues to work closely with other building regulators and stakeholders to discuss and address risks in the building and construction industry.

The ARBV conducted proactive regulatory activities by way of:

• Conducting seminars to potential registrants about the advantages of registration
• Engagement with local councils regarding architect compliance with planning requirements
• Drafting of information sheets for consumers and architects
• Engaging with the Victorian Building Authority and the Domestic Building Dispute Resolution Victoria
• Preparing webinars for practitioners on key competency issues, such as managing project costs and client expectations, maintaining client relations and the common pitfalls of client architect agreements

Professional Conduct of Architects

Architects must demonstrate professional standards and conduct that are competent and professional. This includes but is not limited to fulfilling the obligations detailed in the ‘Victorian Architects Code of Professional Conduct’ (contained within the Architects Regulations 2015).

The Code sets out requirements architects must comply with relating to:

• standards of conduct
• skills and knowledge
• approval of documents
• contracts and agreements with clients
• administering a building contract for a client
• professional fees and costs
• provision of information to clients
• retaining documents and record keeping
• maintaining confidentiality of client information
• disclosing conflicts of interest, referrals, and endorsements
• engendering confidence in and respect for the profession
• maintaining standards and integrity of the profession.

Following an investigation, the ARBV may determine that an Architects Tribunal inquiry should be held into an architect’s professional conduct and/or fitness to practise. If the Tribunal finds allegations against an architect proven, it may make determinations against the architect that include cautions, reprimands, mandatory further education, registration conditions, and suspension or cancellation of registration. The ARBV is required to enforce any determinations made by the Tribunal.

The Act provides that:

• a person whose interests are affected by an ARBV determination not to refer an architect’s conduct or fitness to practise for inquiry may apply to the Victorian Civil and Administrative Tribunal for a review of that determination
• an architect may apply to the Victorian Civil and Administrative Tribunal for a review of an Architects Tribunal determination concerning them.

In 2021-22, the ARBV’s complaint data indicates that the highest incidence of complaints about professional conduct related to the following complaint issues:

• deficient client architect agreement
• failure to provide services with due skill, care and diligence
• incompetent design or specifications
• inappropriate billing practice

The ARBV has used this complaints data to inform the revision of its proactive strategic plan 2022-23 and delivery of proactive regulatory activities in the coming year.

Prohibited Conduct

To be an architect, a person must be registered with the ARBV. The education and experience required for registration, coupled with the professional conduct obligations and continuing professional development and professional indemnity insurance requirements, contribute towards maintaining the integrity of the profession and providing consumer protection.

If a person or body is not registered with the ARBV, they are not an architect in Victoria. If a person or body represents themselves or allows themselves to be represented as an architect, they are in breach of the Act’s prohibited conduct provisions.

Breaches of the Act’s prohibited conduct provisions may be prosecuted in the Magistrates Court of Victoria by the ARBV.

In 2021-22, the ARBV has implemented a targeted strategy in relation to regulating the use of controlled terms and ensuring that representations made about being an architect are true and correct. On 30 June 2022, several prohibited conduct investigations were underway and the ARBV anticipates that prosecution proceedings may be instituted by the ARBV in the coming year.

Complaints and Investigation Activity Statistics

Notes:

1. Where no values are shown this indicates the category was not previously reported.

2. As part of the ARBV’s refreshed complaints handling policy, general inquiries by way of telephone calls or emails relating to alleged breach of professional conduct are now not counted under “Investigations initiated” unless a complaint is submitted through the ARBV Complaints portal. Some matters are also assessed and do not progress to the Investigation phase. Where appropriate, some matters are referred to an appropriate regulatory or dispute resolution body.

Prohibited Conduct

The Act prohibits representations as an architect by people or bodies who are not architects and enables the ARBV to investigate potential offences and to initiate proceedings in the Magistrates Court of Victoria.

As a consumer protection mechanism, the Act’s prohibited conduct provisions ensure the public can have confidence in an architect’s:

• qualifications, skills, and experience
• professional regulatory requirements
• professional indemnity insurance cover.

During the 2021-22 reporting period 44 potential breaches were investigated.

Notes:

1. Prosecutions initiated were first reported on in 2018-19.
2. Where no values are shown this indicates the category was not previously reported.
3. In 2021-22, the ARBV introduced an assessment phase prior to a matter being investigated as part of its refreshed complaints handling policy. As a result, values for “Investigations initiated” will be lower for 2021-22 compared to previous years.
4. As part of the ARBV’s new complaints handling policy, general inquiries by way of telephone calls or emails relating to alleged prohibited conduct are now not counted under “Investigations initiated" unless a complaint is submitted through the ARBV Complaints portal. Some matters are also assessed and do not progress to the Investigation phase. Where appropriate, some matters are referred to an appropriate regulatory or dispute resolution body.

Tribunal

Professional conduct and/or fitness to practise inquiries are conducted by the Architects Tribunal which is independent of the Board. A Tribunal is constituted as required, from a panel of suitably qualified people appointed by the Minister and approved by the Governor in Council.

An Architects Tribunal is constituted as follows:

• one panel member who is a practising architect
• one panel member who is not an architect
• one panel member who is a representative of consumer interests.

At least one member of a Tribunal is to be a person with legal experience and knowledge.

If the Architects Tribunal finds allegations against an architect proven, it makes determinations regarding penalties and costs.

The ARBV is required to enforce the determinations made by the Tribunal.

Number of new cases referred to the Tribunal for inquiry in 2021-22 – 1

Number of inquiries finalised in 2021-22 – 5

Regulatory Outcomes

The proactive and reactive regulatory activity undertaken by the ARBV outlined in this section support the ARBV’s regulatory objectives to:

• promote and maintain high standards of professional conduct and practice
• restrict who can represent themselves as architects
• ensure only suitably qualified entities are registered and approved
• ensure compliance with insurance requirements
• maintain professional accountability of architects
• support architects to fulfil their duties and to engender confidence in and respect for the profession
• encourage and support voluntary compliance.

In this regard, a focus by the ARBV on proactive regulatory activities and increasing awareness and understanding of relevant compliance obligations by regulated entities through education and assistance supports voluntary compliance and helps promote high standards of professional conduct and practice are achieved in architect interactions with clients and other stakeholders. The support provided by the ARBV to architects (e.g., access to educative and guidance material) to help them comply thereby instils confidence in the profession among relevant stakeholders, including the public.

The ARBV’s reactive regulatory activities such as providing a procedure for handling complaints against architects ensures that architects are being held accountable for their professional conduct and practice thereby protecting consumers and upholding the high standards of integrity in the professional practice of architecture. Similarly, restricting who can represent themselves to be an architect and the use of particular expressions helps to protect consumers by allowing them to source competent and qualified architects over unregistered persons, who may lack the qualifications or competencies to deliver safe and compliant building work. Consumers are also able to engage architects with the knowledge that registration requires them to be covered by professional indemnity insurance.

Sponsorships, Grants and Awards

Consideration of grants and sponsorships by ARBV must be linked to the objective of the advancement of architectural education as set out Section 59(1) of the Architects Act 1991 and cognisant of ARBV's principal role as a regulator.

From time to time the ARBV supports programs or activities that advance continuing education and learning for practising architects, as a collective group, and which aim to address one or more of the following:

• encourage continuous improvement in professional competency, conduct and integrity
• drive awareness of risk associated with the provision of architectural services and/or promote risk mitigation
• deliver improved compliance with the regulatory regime for architects leading to strengthened consumer experience and confidence in the Victorian architectural regulatory framework.

Consideration of grants and sponsorships by ARBV also consider whether proposals:

• raise awareness of and increase positive regard and understanding for ARBV’s role as a regulator
• build stronger relationships with and encourage participation by stakeholders.

In 2021-22, the ARBV operated in an environment of strict expenditure control to maintain a small operating and cash surplus. No sponsorships or grants were approved by the Board in the reporting period.

Architectural Student Professional Practice Awards

The Architectural Student Professional Practice Awards are in recognition of the importance of education linked to the professional practice of architecture. Recognising ARBV’s important consumer protection role, awards are provided each year to the top 4^th or 5^th year student in a professional practice subject demonstrating the highest level of performance in this field and are available at the five Victorian schools of architecture. Recipients receive a grant of $1,000 as a contribution towards the student’s further studies or professional development. Four students received awards in the reporting period.

Statement of Expectations

The revised Statement of Expectations (SOE) framework, issues by the Minister for Planning in July 2021 for the period to June 2023, included the following performance improvements and targeted outcomes n which an update on progress is provided.

2021-22 financial rear review

Operating result

In 2021-2022, the ARBV recorded a net surplus of $38,409 which was a $29,442 decrease on the 2020-2021 net surplus of $67,851.

Revenue increased by $135,065 on the back of annual registration fee income increasing by $139,975 as a result of having a higher number of architects, companies and partnerships on the register.

Expenditure increased by $163,406 which was driven by an increase to depreciation and amortisation of $172,273 due to:

1. Completion of the customer relationship management system.
2. Fit out of the new leased premises, and
3. Changed accounting treatment under AASB 16 – Leases, which requires depreciation of leased premises.

Other material movements in expenditure, due to changing priorities during the year, included:

• Employee expenses increased by $93,525, which reflects a redundancy payment following an organisational restructure in 2021-2022 and higher employee vacancies in 2020-2021.
• Professional services expenditure decreased $106,471 due to less consultants being engaged and completion of the project management activities to implement the customer relationship management system.
• Occupancy costs reduced $97,699 due to the changed accounting treatment for rent payments under AASB 16 - Leases and staff working from home for most of the year.

Smaller expenditure increases were seen in legal, information technology and administrative expenses and the inclusion of an interest expense of $20,307 due to the changed requirements from AASB 16 -Leases.

Financial position

Net assets increased by $38,409 to $1,387,060 as a result of the net surplus for the year.

Total assets increased by $31,632 and total liabilities decreased by $6,777 relative to 2020-2021.

Property, plant and equipment increased $171,488 for the completion of the new office fit out, whilst the Right-of-use asset reduced by $201,831 reflecting receipt of the landlord’s lease incentive and depreciation of the leased office for six months of the reporting period.

The lease liability for the Right-of-use asset reduced by $124,235 through the monthly rent payments, while the balance of rent is reflected as a finance (interest) expense. Registration and examination fees paid in advance increased by $82,222 which reflects delays to annual renewal process in June 2021 due to the implementation of the customer relationship management system. This reduced the number of transactions processed in advance for the 2020-2021 renewal period.

Cash has increased by $74,291 relative to 30^th June 2021. Cash decreased by $239,812 in 2020-2021.

ARBV 5-year financial summary

Significant changes or factors affecting performance

There were no significant changes or factors affecting ARBV’s performance during the reporting period. Remote working by staff continued throughout the year without any impact on performance.

Subsequent events

At 30 June 2022 there were no subsequent events.

Governance

ARBV Board

The ARBV Board is responsible for performing statutory decision-making functions and powers conferred by the Architects Act 1991 (the Act) and the Architects Regulations 2015. The ARBV Board also provides leadership, strategic guidance and policy direction in addition to overseeing implementation of policies and initiatives.

In accordance with section 47 of the Act, the Board comprises up to ten members appointed on a representative basis with the Chairperson and Deputy Chairperson elected by the members.

The Board is assisted by committees and working groups. It is also responsible for constituting the independent Architects Tribunal to conduct inquiries concerning architects and their fitness to practise or professional conduct. The Act prohibits a person being concurrently a member of the ARBV Board and the Architects Tribunal.

The Board membership of the ARBV at 30 June 2022 was as follows:

• Dr Giorgio Marfella, PhD, M.Arch, RAIA (Chairperson)
  Representative of architects nominated by Councils of approved schools of architecture.
• Richard Salter, B.Eng. (Hons), B.Sc. (Deputy Chairperson)
  Representative of Professional Building Industry Organisations nominated by the Housing Industry Association (Vic).
• Bruce Allen, B.Arch, M.Arch, M.B.A.

Elected representative of architects

• Sophie Cleland, B.Arch (Hons)

Architect nominated from panel submitted by the Australian Institute of Architects (AIA)

• Mark Curry, B.AppSc, BSW

Consumer representative nominated by the Minister for Consumer Affairs (Victoria)

• Richard Drew, B.Eng (Hons), M.DesS, GradCertEng

Representative of the Institution of Engineers, Institute of Surveyors, Institute of Quantity

Surveyors and Royal Australian Planning Institute

• Stefan Preuss, Dipl. Ing Arch, MSc.Arch, GAICD

Practising senior government architect nominated by the Office of Victorian Government Architect

• Danielle Roche, B.Eng (Hons), MWRMgt

Consumer representative nominated by the Minister for Consumer Affairs (Victoria)

Directors whose term expired or who resigned during 2021-22 were:

• Jenny Gretgrix, B.Eng (Hons)
  Representative of professional building industry organisations nominated by the Housing Industry Association (Victoria).

Term of appointment: 6 October 2020 to 8 February 2022.

Board Committees

The ARBV Board is supported by two committees:

Audit and Risk Committee

The purpose of the Audit and Risk Committee is to assist the Board to fulfil its statutory oversight responsibilities relating to the Financial Management Act 1994 (FMA) and associated Standing Directions 2018 issued by the Assistant Treasurer under Section 8 of the FMA. Members of the Audit and Risk Committee are appointed by the Board in accordance with the Committee’s Charter.

Meetings are held at least four times a year, and at other times on request of a committee member or the internal or external auditor. The Committee’s key responsibilities are to:

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Public sector values and employment principles

The manual’s employment policies and practices are consistent with the principles, e.g. merit and equity with regards to selection processes to ensure that applicants are assessed and evaluated fairly and equitably based on key selection criteria and other accountabilities without discrimination.

Occupational Health & Safety

The goal of the ARBV’s Occupational Health and Safety (OH&S) Policy is to ensure all staff (and others) accessing the ARBV’s premises remain safe and healthy with a continued commitment to OH&S compliance, active risks and hazards assessment and control.

A revised OH&S Policy was approved by the Board in February 2022. A major focus of the year was establishing CovidSafe practices and ensuring compliance with State Government directives as they evolved over the course of the pandemic. A COVIDSafe Plan and a range of related guidelines and practices were implemented to support a safe return to the office.

The ARBV’s target for 2021-2022 was for zero OH&S incidents leading to claims which was achieved. No incidents, hazards or near misses or lost time were reported during the 2021-2022 year.

The ARBV’s Workcover premium rate at the completion of 2021-2022 is 0.6115%. This is below the applicable State Government Administration industry classification rate of 0.6360%. ARBV’s performance rating of 0.961508 is 3.84% better than the industry average.

Workforce Data

The Architects Registration Board of Victoria employed 14 staff (10.1 full time equivalent), compared to 10 staff (9.4 full time equivalent) on 30 June 2021.

Employees have been correctly classified in workforce data collections.

All employees, except executive officers, are covered by the ARBV Enterprise Agreement.

Notes:

• All figures reflect employment levels during the last full pay period in June of each year.
• Excluded from workforce data; employees on leave without pay or absent on secondment, graduates, external contractors/consultants and temporary staff employed by employment agencies.
• Ongoing employees includes people engaged on an open-ended contract of employment and executives engaged on a standard executive contract who were active in the last full pay period of June.
• “FTE” stands for Full time equivalent.
• The ARBV uses Victorian Public Sector (VPS) Salaries and Classification and Value Range Descriptors.

Local Jobs First Act 2003

The Local Jobs First Act 2003 introduced in August 2018 brings together the Victorian Industry Participation Policy (VIPP) and

Major Project Skills Guarantee (MPSG) policy which were previously administered separately.

Departments and public sector bodies are required to apply the Local Job first policy in all projects valued at $3 million or more in Metropolitan Melbourne or for state-wide projects, or $1 million or more for projects in regional Victoria.

There were no procurements initiated by the ARBV in 2021-2022 falling within the provisions of the Local Jobs First Policy.

Social procurement

The ARBV is a very small agency and whilst it remains conscious of its obligations under the State Government's Social Procurement Framework, it is difficult for the entity to generate meaningful social value given:

1. the limited annual expenditure budget for goods and services
2. the nature of goods and services acquired over the course of the year.

Management continues to explore opportunities for social procurement, however there was no expenditure of this nature in 2021-2022.

Government advertising expenditure

There were no advertising campaigns in 2021-2022 with a media spend of $100,000 or greater.

Consultancy Expenditure

Details of consultancies (valued at $10,000 or greater)

In 2021-22, there were no consultancy engagements for which services were provided during the reporting period that were individually valued at $10,000 or greater (excluding GST).

Details of consultancies under $10,000

In 2021-2022 there were three consultancies during the year, where the total fees payable to the individual consultancy was less than $10,000. The total expenditure incurred during 2021-22 in relation to these consultancies was $6,350 (excl. GST).

Declarations of private interests

All ARBV Board members have completed a declaration of private interests.

Declaration of Major Contracts

The ARBV did not enter into any major contracts valued at $10 million or above during 2021-2022.

ICT expenditure

Freedom of Information Act 1982

The Freedom of Information Act 1982 (the Act) allows the public a right of access to documents held by the ARBV. The purpose of the Act is to extend as far as possible the right of the community to access information held by government departments, local councils, Ministers, and other bodies subject to the Act.

An applicant has a right to apply for access to documents held by the ARBV. This comprises documents both created by the ARBV or supplied to the ARBV by an external organisation or individual. Information about the type of material produced by the ARBV is available on the ARBV’s website under its Part II Information Statement.

The Act allows the ARBV to refuse access, either fully or partially, to certain documents or information.

Examples of documents that may not be accessed include but not limited to cabinet documents; some internal working documents; law enforcement documents; documents covered by legal professional privilege, such as legal advice; personal information about other people; and information provided to the ARBV in-confidence.

From 1 September 2017, the Act has been amended to reduce the Freedom of Information (FOI) processing time for requests received from 45 to 30 days. However, when external consultation is required under subsections 29, 29A, 31, 31A. 33, 34 or 35, the processing time automatically reverts to 45 days. Processing time may also be extended by periods of 30 days, in consultation with the applicant. With the applicant’s agreement this may occur any number of times. However, obtaining an applicant’s agreement for an extension cannot occur after the expiry of the time frame for deciding a request.

If an applicant is not satisfied by a decision made by the ARBV, under section 49A of the Act, they have the right to seek a review by the Office of the Victorian Information Commissioner (OVIC) within 28 days of receiving a decision letter.

Making a request

FOI requests can be lodged writing to the ARBV via email or post. An application fee of $30.60 applies. Access charges may also be payable if the document pool is large, and the search for material, time consuming.

Access to documents can also be obtained through a written request to the ARBV as detailed in section 17 of the Act.

When making an FOI request, applicants should ensure requests are in writing, and clearly identify what types of material/documents are being sought.

Requests for documents in the possession of the ARBV should be addressed to:

Registrar
ARBV
Level 10, 533 Little Lonsdale Street
Melbourne 3000
or registrar@arbv.vic.gov.au

FOI statistics/timeliness

During 2021-22, the ARBV received two FOI applications, both applications were transferred to another authority under s.18(2).

Further information

Further information regarding the operation and scope of FOI can be obtained from the Act; regulations made under the Act; and ovic.vic.gov.au. The ARBV’s Part II statement can be found on our website.

Building Act 1993

The ARBV does not own or control any government buildings and consequently is exempt from notifying its compliance with the building and maintenance provisions of the Building Act 1993.

Competitive Neutrality Policy

Competitive neutrality requires government businesses to ensure where services compete, or potentially compete with the private sector, any advantage arising solely from their government ownership be removed if it is not in the public interest. Government businesses are required to cost and price these services as if they were privately owned. Competitive neutrality policy supports fair competition between public and private businesses and provides government businesses with a tool to enhance decisions on resource allocation. This policy does not override other policy objectives of government and focuses on efficiency in the provision of service.

The ARBV continues to comply with the requirements on competitive neutrality reporting as required under the Competition Principles Agreement and Competition and Infrastructure Reform Agreement.

Public Interest Disclosures Act 2012

The Public Interest Disclosures Act 2012 encourages and assists people in making disclosures of improper conduct by public officers and public bodies. The Act provides protection to people who make disclosures in accordance with the Act and establishes a system for the matters disclosed to be investigated and rectifying action to be taken.

The ARBV does not tolerate improper conduct by employees, nor the taking of reprisals against those who come forward to disclose such conduct. It is committed to ensuring transparency and accountability in its administrative and management practices and supports the making of disclosures that reveal corrupt conduct, conduct involving a substantial mismanagement of public resources, or conduct involving a substantial risk to public health and safety or the environment.

The ARBV will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosure. It will also afford natural justice to the person who is the subject of the disclosure to the extent it is legally possible.

Reporting procedures

You can make a public interest disclosure about the ARBV or its board members, officers or employees by contacting IBAC (details below).

The ARBV is not able to receive public interest disclosures.

The ARBV has established procedures for the protection of persons from detrimental action in reprisal for making a public interest disclosure about the ARBV, its board members, officers or employees. You can access the ARBV’s procedures on its website at: www.arbv.vic.gov.au

Alternatively, disclosures may also be made directly to the Independent Broad-based Anti-Corruption Commission

Level 1, North Tower, 459 Collins Street
Melbourne, VIC 3000
Mail: IBAC, GPO Box 24234, Melbourne Victoria 3001
Phone: 1300 735 135
Internet: www.ibac.vic.gov.au
Email: See the website above for the secure email disclosure process, which also provides for anonymous disclosures.

Disability Act 2006

The Disability Act 2006 reaffirms and strengthens the rights of people with a disability and recognises this requires support across the government sector and within the community.

Absolutely everyone is the Victorian Government’s framework for enabling people with disability to participate and contribute to the social, economic and civic life of their community. Over time the government will consider ways to align disability action plans to the state plan.

The ARBV has a Disability Action Plan in place approved by the Board. Consistent with the plan the ARBV’s Human Resources policies e.g. Workplace Health and Safety and Equal Opportunity recognise and seek to address the rights and needs of people with disabilities.

This is exampled by an organisational disability employment strategy where the ARBV will make reasonable adjustments for a person with a disability to ensure an inclusive and disability equitable workplace. Those adjustments include where:

• a person with a disability who applies for a job, is offered employment, or is an employee, and requires the adjustments in order to participate in the recruitment process or perform the genuine and reasonable requirements of the job
• it is necessary to ensure employees with a disability can work safely and productively
• flexibility in the working arrangements is required for example where employee is the carer of a child under 18 with a disability.

Compliance with establishing Act

The ARBV is established under the Architects Act 1991. Pursuant to section 46 of the Architects Act 1991, the ARBV is required to exercise its powers and perform its duties under the Act.

The ARBV is accountable to the Minister for Planning, who is accountable to Parliament and the community for the performance of the ARBV. The responsible Minister for the period from 1 July 2021 to 27 June 2022 was the Hon Richard Wynne MP, Minister for Planning. The Hon Lizzie Blandthorn MP commenced as Minister for Planning on 27 June 2022. The Minister for Planning also establishes key governance and performance priorities for the ARBV by issuing a Statement of Expectations. In overseeing the performance of the ARBV, the Minister for Planning is supported by the Department of Environment, Land, Water and Planning.

Additionally, the ARBV is required to advise the Minister on the carrying out of its functions under the Act and on any other matter referred to it by the Minister and is subject to any specific written directions given by the Minister.

The ARBV is required under the Public Administration Act 2004 to:

• Inform the Responsible Minister and the portfolio Secretary (Department Environment, Land, Water and Planning) of known major risks (significant or emerging) to the effective operation of the ARBV and of the risk management systems that it has in place to address those risks.
• Provide the Responsible Minister, unless prohibited from doing so by or under any law, with any information relating to the ARBV or its operations as he or she requests.

Office-based Environmental impacts

• The ARBV is committed to reducing its environmental footprint and promoting awareness and participation amongst its employees. The use of recycled paper together with the emphasis on electronic document management and a “paperlite” approach is reducing paper and storage. Wastepaper is binned for recycling and used printer cartridges are disposed of via Planet Ark.
• The ARBV liaises with a not-for-profit service provider who help job seekers to find work with inclusive employers who recognise and value diversity.
• The ARBV will continue to invest in green deposits which are deposits issued by the provider to invest in environmentally beneficial projects and initiatives.

Additional information available on request

In compliance with the requirements of the Standing Directions 2018 of the Minister for Finance, details in respect of the items listed below, where applicable to the ARBV, have been retained and are available on request, subject to the provisions of the Freedom of Information Act 1982:

(a) details of publications produced by the ARBV about itself, and how these can be obtained

(b) details of major promotional, public relations and marketing activities undertaken by the ARBV to develop community awareness of the entity and its services

(c) details of changes in prices, fees, charges, rates and levies charged

(d) a statement on industrial relations within ARBV

(e) details of all consultancies and contractors, including consultants/contractors engaged, services provided, and expenditure committed for each engagement.

The information is available on request from:

Registrar, ARBV
Level 10, 533 Little Lonsdale Street
Melbourne 3000
or registrar@arbv.vic.gov.au

Statement of availability of other information available on request

Details in respect of the following items have been included in the ARBV’s annual report, on the pages indicated below:

(a) a list of the ARBV’s major committees, the purposes of each committee, and the extent to which the purposes have been achieved (on page 34)

(b assessments and measures undertaken to improve the occupational health and safety of employees (on page 40)

Information that is not applicable to the ARBV

The following information is not relevant to the ARBV for the reasons set out below:

(a) declaration of shares held by senior officers (no shares have ever been issued in the ARBV)

(b) details of overseas visits undertaken (no ARBV members or senior executives took overseas work-related trips)

(c) details of any major external reviews carried out on the ARBV (no major external reviews undertaken)

(d) details of major research and development activities undertaken by the ARBV (no major research and development activities undertaken).

DataVIC Access Policy

The ARBV discloses information online and via printed publications. It also provides information services in person and/or by phone, annual report and website.

The Annual Report of the ARBV is prepared in accordance with all relevant Victorian legislations and pronouncements. This index has been prepared to facilitate identification of ARBV's compliance with statutory disclosure requirements.

2021-22 Financial Year Review

Operating result

In 2021-2022, the ARBV recorded a net surplus of $38,409 which was a $29,442 decrease on the 2020-2021 net surplus of $67,851.

Revenue increased by $135,065 on the back of annual registration fee income increasing by $139,975 as a result of having a higher number of architects, companies and partnerships on the register.

Expenditure increased by $163,406 which was driven by an increase to depreciation and amortisation of $172,273 due to:

1. Completion of the customer relationship management system.
2. Fit out of the new leased premises, and
3. Changed accounting treatment under AASB 16 – Leases, which requires depreciation of leased premises.

Other material movements in expenditure, due to changing priorities during the year, included:

• Employee expenses increased by $93,525, which reflects a redundancy payment following an organisational restructure in 2021-2022 and higher employee vacancies in 2020-2021.
• Professional services expenditure decreased $106,471 due to less consultants being engaged and completion of the project management activities to implement the customer relationship management system.
• Occupancy costs reduced $97,699 due to the changed accounting treatment for rent payments under AASB 16 - Leases and staff working from home for most of the year.

Smaller expenditure increases were seen in legal, information technology and administrative expenses and the inclusion of an interest expense of $20,307 due to the changed requirements from AASB 16 -Leases.

Financial position

Net assets increased by $38,409 to $1,387,060 as a result of the net surplus for the year.

Total assets increased by $31,632 and total liabilities decreased by $6,777 relative to 2020-2021.

Property, plant and equipment increased $171,488 for the completion of the new office fit out, whilst the Right-of-use asset reduced by $201,831 reflecting receipt of the landlord’s lease incentive and depreciation of the leased office for six months of the reporting period.

The lease liability for the Right-of-use asset reduced by $124,235 through the monthly rent payments, while the balance of rent is reflected as a finance (interest) expense. Registration and examination fees paid in advance increased by $82,222 which reflects delays to annual renewal process in June 2021 due to the implementation of the customer relationship management system. This reduced the number of transactions processed in advance for the 2020-2021 renewal period.

Cash has increased by $74,291 relative to 30^th June 2021. Cash decreased by $239,812 in 2020-2021.

ARBV 5-year financial summary

Significant changes or factors affecting performance

There were no significant changes or factors affecting ARBV’s performance during the reporting period. Remote working by staff continued throughout the year without any impact on performance.

Subsequent events

At 30 June 2022 there were no subsequent events.

Financial management compliance attestation statement

ARBV Financial Management Attestation

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Financial statement

ARBV Financial Report

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