Department of Human Services
Annual Report
2009–10
Working in Partnership
www.humanservices.gov.au
Department of Human Services
Annual Report
2009–10
Working in Partnership
www.humanservices.gov.au
If you have feedback or questions about this report, contact:
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Human Services Portfolio
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ISSN: 1832–8792
© Commonwealth of Australia 2010
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Letter of transmittal
Letter of transmittal //
iii
About this report
This year the annual reports for the Department
of Human Services, Centrelink and Medicare
Australia reflect the move to integration within
the Human Services portfolio.
Although three separate reports are required
under relevant legislation, the aim was to achieve
some common content and design elements to
signify the increasingly close working relationship
between the three organisations.
Given the implementation of service delivery
reform across the Human Services portfolio, this
report can be read as a companion with those
of Centrelink and Medicare Australia.
This report was prepared according to the
Requirements for Annual Reports, issued by the
Department of the Prime Minister and Cabinet
on 23 June 2010. The report focuses on the
department’s accountability and performance
during 2009–10, including reporting on the
Child Support Program and CRS Australia.
The annual report requirements have changed
so that government agencies and departments
now report against the programs they have in
place, rather than report against their outputs.
Therefore, this report is structured according
to its programs with separate overview,
management and accountability, and financial
performance chapters.
Chapter 1: Overview—contains a review by
the Department of Human Services’ Secretary,
Finn Pratt, PSM, which summarises the
significant issues and performance in 2009–10
and describes the outlook for 2010–11. This
chapter also includes a portfolio overview,
background information on service delivery
reform, and details of the department’s
organisational structure and reporting
framework.
Chapter 2: Achievements—Central
department—sets out the department’s
effectiveness and efficiency in meeting key
performance indicator targets, expands on
service delivery reform implementation, and
highlights the department’s involvement in
several important government and other
initiatives delivered during the year.
iv
Chapter 3: Achievements—Child Support
Program—covers the program’s ongoing
activities in collecting and delivering child
support payments, and includes 2009–10
performance data compared to the previous
year(s). This chapter also focuses on delivering
excellent services and how the program
engages with customers and the community.
Chapter 4: Achievements—CRS Australia
—features performance against targets in the
delivery of vocational rehabilitation services
to help job seekers who have a disability,
injury or health condition. This chapter also
includes reporting on staffing issues, customer
satisfaction, and partnerships with government
and non-government sectors.
Chapter 5: Management and
accountability—explains the department’s
measures to remain transparent and
accountable in its expenditure and operating
results, including fraud control and internal and
external scrutiny. It also covers new governance
arrangements, compliance and communication
activities, information and communication
technology (ICT) performance, and how
the department, the Child Support Program
and CRS Australia manage their workplace
environments and human resources.
Chapter 6: Financial reporting—provides
an overview of the department’s financial
performance, and the financial statements for
the department, including the Child Support
Program and CRS Australia, as audited by the
Australian National Audit Office.
Thirteen appendices respond to a number of
mandatory reporting requirements—including
the compliance index—and expand on other
areas of interest.
The back of the report contains a glossary,
shortened forms list, general index, and
department contact details.
Contents
Letter of transmittal
iii
About this report
iv
Chapter 1: Overview
Secretary’s review
2
Portfolio overview
5
Portfolio structure
5
Departmental overview
8
Goals, roles, objectives and strategies
9
Structure and functions
10
Legislation
10
Planning and reporting
11
Chapter 2: Achievements—Central department
Performance highlights—Central department
17
Main results
18
Service delivery reform 24
Service delivery policy and program advice
27
Strategic support 29
Chapter 3: Achievements—Child Support Program
Performance highlights—Child Support Program
37
Main results
39
Improved collection
39
Customer service excellence
45
Effective stakeholder engagement
50
Chapter 4: Achievements—CRS Australia
Performance highlights—CRS Australia
57
Main results
57
Services provided to other agencies and organisations
58
Program key result areas
58
Purchaser–provider arrangements
63
Department of Human Services Annual Report //
v
Chapter 5: Management and accountability
Department of Human Services—Governance
CRS Australia—Governance
66
69
Department of Human Services—Accountability
CRS Australia—Accountability
71
78
Department of Human Services—People
CRS Australia—People
84
90
Department of Human Services—Resources
CRS Australia—Resources
93
95
Chapter 6: Financial reporting
Financial overview
100
Departmental financial performance
100
Statement of financial performance
100
Statement of financial position
101
Administered Items
102
Financial statements
103
Appendices
Appendix A—Occupational health and safety
178
Appendix B—Freedom of information
181
Appendix C—Advertising and market research
184
Appendix D—Ecologically sustainable development and environmental performance
186
Appendix E—Commonwealth Disability Strategy
194
Appendix F—Australian National Audit Office activity
204
Appendix G—Commonwealth fraud control guidelines certification 206
Appendix H—Staffing statistics 207
Appendix I—Employee remuneration overview
215
Appendix J—Consultancy contracts 218
Appendix K—Resource statements 221
Appendix L—Corrections to errors in the 2008–09 annual report
224
Appendix M—Compliance index
225
References
Glossary
232
Shortened forms
233
Index
235
Contacts
248
vi
Tables
Table 1—Performance highlights—Central department
18
Table 2—Performance highlights—Child Support Program
39
Table 3—Child support compliance and enforcement actions 2007–08 to 2009–10
42
Table 4—Results of child support compliance and enforcement activities, 2009–10
42
Table 5—Service delivery indicators 2007–08 to 2009–10
47
Table 6—Child support service connections, 2009–10
50
Table 7—Performance highlights—CRS Australia
57
Table 8—Department of Human Services performance pay for 2008–09, paid in 2009–10
85
Table 9—CRS Australia performance pay for 2008–09, paid in 2009–10
90
Table 10—Expenditure on consultancy services 2007–08 to 2009–10
94
Table 11—Contracts over $100 000 (inclusive of goods and services tax) that did not provide
for the Auditor-General to have access to the contractor’s premises
95
Table 12—Summary of CRS Australia consultancy services contracts 2007–08 to 2009–10
96
Table 13—Departmental income and expenses, 2008–09 and 2009–10
100
Table 14—Departmental assets and liabilities, 2008–09 and 2009–10
102
Table 15—DHS (including the Child Support Program) workers compensation claims
2008–09 and 2009–10
179
Table 16—CRS Australia workers compensation claims 2008–09 and 2009–10
180
Table 17—Department of Human Services—payments for advertising and market research, 2009–10
184
Table 18—CRS Australia—payments for advertising and market research 2009–10
185
Table 19—Department of Human Services—environmental targets
187
Table 20—Department of Human Services—stationary energy use
188
Table 21—Department of Human Services—transport energy use
189
Table 22—Department of Human Services—materials use
189
Table 23—CRS Australia stationary energy use
191
Table 24—CRS Australia transport energy use
191
Table 25—CRS Australia green procurement
192
Table 26—Commonwealth Disability Strategy—Department of Human Services
(excluding CRS Australia)—policy adviser role
194
Table 27—Commonwealth Disability Strategy— Department of Human Services
(excluding CRS Australia)—purchaser role
195
Department of Human Services Annual Report //
vii
Table 28—Commonwealth Disability Strategy—Department of Human Services
(excluding CRS Australia)—provider role
197
Table 29—CRS Australia—purchaser role
198
Table 30—CRS Australia—provider role
201
Table 31—Department of Human Services—staff by classification and location
207
Table 32—Department of Human Services—ongoing and non-ongoing staff by classification 208
Table 33—Department of Human Services—full-time and part-time staff by classification
209
Table 34—Department of Human Services—staff by gender and location
209
Table 35—Department of Human Services—equity and diversity groups
210
Table 36—CRS Australia—ongoing staff employed, by gender and employment status
211
Table 37—CRS Australia—ongoing staff employed, by location and employment status
212
Table 38—CRS Australia—non-ongoing staff employed, by gender and employment status
213
Table 39—CRS Australia—non-ongoing staff employed, by location and employment status
214
Table 40—CRS Australia—equity and diversity groups
214
Table 41—Salary ranges for staff covered by the Department of Human Services Certified
Agreement and Australian Workplace Agreements
215
Table 42—Department of Human Services—contract law contract salary ranges at 30 June 2010
215
Table 43— Department of Human Services —performance pay
216
Table 44—CRS Australia employment arrangements at 30 June 2010
216
Table 45—CRS Australia Certified Agreement salary ranges at 30 June 2010
216
Table 46—CRS Australia Australian Workplace Agreement salary ranges at 30 June 2010
217
Table 47—CRS Australia section 24(1) determination salary ranges at 30 June 2010
217
Table 48—CRS Australia common law contract salary ranges at 30 June 2010
217
Table 49—Department of Human Services (excluding CRS Australia)—consultancy services to the value of $10 000 or more let during 2009–10
219
Table 50—CRS Australia—consultancy services to the value of $10 000 or more let during 2009–10
220
Table 51—Agency resource statement, 2009–10
221
Table 52—Expenses and resources for Outcome 1, 2009–10
223
Table 53—Compliance index
225
viii
// CHAPTER 1: Overview
Figures
Figure 1—Human Services portfolio structure at 30 June 2010
6
Figure 2—The department at a glance
8
Figure 3—Outcome, roles, objectives and strategies of the Department of Human Services
9
Figure 4—Outcome and program structure, 2009–10
11
Figure 5—Organisational structure and senior staffing, at 30 June 2010
12
Figure 6—Parent perceptions of the child support system
32
Figure 7—Increases in total liabilities raised and amount collected using CSP Collect
40
Figure 8—Satisfaction with service provided by CSP overall
46
Figure 9—Satisfaction with service provided by CSP customer service officers
46
Figure 10—CSP service delivery indicators 2007–08 to 2009–10
48
Figure 11—CRS Australia commencements by disability type, 2009–10
58
Figure 12—Human Services Portfolio Governance Committee structure at 30 June 2010
66
Figure 13—Department of Human Services Governance Committee structure at 30 June 2010
68
Figure 14—Departmental income and expenses 2008–09 and 2009–10
101
Figure 15—Departmental assets and liabilities 2008–09 and 2009–10
102
Department of Human Services Annual Report //
ix
Overview
Chapter 1
Secretary’s review
have provided us a once-in-a-lifetime opportunity
to rethink how services are delivered, and to
make a real difference to people’s lives.
We collaborated with central agencies to ensure
sound program management arrangements
were in place and that the program was aligned
with broader government objectives.
To position the portfolio to implement the
reforms, we worked with Centrelink and
Medicare Australia to set up a number of
co-located offices in existing sites and
implemented a single portfolio automated
telephone number and website for portfolio
Budget information. We also engaged with
customers, and the community services sector,
on service co-design and the development of
new customer service offers.
In September 2009, I was delighted to
take up the appointment as Secretary
of the Department of Human Services,
which includes the Child Support
Program and CRS Australia.
My predecessor, Helen Williams AO, provided
outstanding leadership and left the department in
very good shape to meet the challenges ahead.
Excellent customer service is not something
new for the department, and we continue
to focus on providing a seamless service for
Australians—thinking about our customers in
everything we do. In this context, perhaps the
biggest challenge for the department was to
begin implementing the Government’s works
for you service delivery reform agenda.
Service delivery reform
Announcing the reforms in December 2009, the
Minister’s intent was clear. He said: ‘The time
has come to redesign our service delivery to
maximise convenience for Australians who rely
on us for services’.
Encompassing a range of changes designed
to deliver more accessible, high-quality, and
customer-focused services, I believe the reforms
2
// CHAPTER 1: Overview
I was proud when I visited the Belmont (WA)
office earlier this year. Belmont demonstrates
our step forward in service delivery, as it
provides Medicare services and Centrelink
assistance from one convenient location.
Medicare rebates are paid using EFTPOS
terminals to credit them straight into people’s
accounts, while a Centrelink Customer Service
Adviser is on hand to help customers with
Centrelink enquiries, and assist them with
Centrelink’s self-service facilities.
Closer to home, actions to support the reforms
involved the introduction of new portfolio
governance arrangements and organisational
structures, as well as the integration of
portfolio enabling services, such as ICT
infrastructure, finance, legal, corporate support,
communication, property management,
procurement and human resources.
Apart from service delivery reform imperatives,
these initiatives also reflect the Government’s
blueprint for public service administrative reform,
Ahead of the Game: Blueprint for the Reform
of Australian Government Administration. In
particular, the changes in the Human Services
portfolio respond to recommendations in the
blueprint for ‘delivering better services for
citizens’ and to ‘enable citizens to collaborate
with government in policy and service design’.
Leadership
While our people across the portfolio are ensuring
the necessary steps are taken on the ground,
new Human Services portfolio governance
arrangements involving senior executives from the
department, Centrelink and Medicare Australia
were key to managing the reform process.
Weekly meetings of the Secretary and Chief
Executive Officers’ Committee have been crucial
to ensuring a collaborative, strategic and informed
approach to service delivery reform, and I extend
my heart-felt thanks to Centrelink’s CEO—Carolyn
Hogg—and to Medicare Australia’s CEO—Lynelle
Briggs—for their strong support, enthusiasm,
know-how, creativity and good humour.
Highlights
During the year, the department achieved
positive results against most of its key
performance indicators. Highlights included:
• delivering initial elements of service delivery
reform
• integrating enabling services across the
portfolio
• bedding down new governance and planning
arrangements
• implementing a comprehensive 2009–10
Compliance Plan
• rolling out the new BasicsCard to merchants,
and 98.5 per cent of income managed
customers in the Northern Territory.
We also negotiated agreements with all states
and territories to provide a national emergency
call centre ‘surge’ capability.
The department and portfolio agencies
signed and released a portfolio Statement of
Commitment to Reconciliation. The statement
demonstrates our determination to work together
in practical ways to improve health, social and
welfare outcomes for all Indigenous Australians.
Innovation
The Geo-demographic Interactive Simulation
Tool (GIST)—which contributes to evidencebased policy making and supports the portfolio’s
emergency management response—was
upgraded to incorporate new features such
as expanded demographic data sets. Three
hundred users across 23 Australian Government
departments are now using this capability.
In fact, GIST was a finalist in the Excellence
in eGovernment Awards presented at CeBIT
Australia, held in Sydney earlier this year. I send
my congratulations to the GIST team.
The department also led the Commonwealth
Spatial Data Integration pilot program, designed
to integrate and share spatially-enabled
Australian Government administrative data to
support social inclusion initiatives. The pilot
program was undertaken in partnership with
Geoscience Australia and the Australian Bureau
of Statistics, in consultation with the Australian
Government Information Management Office.
While the Minister was satisfied with the
timeliness and quality of briefings, work is under
way to increase the number of ministerial replies
submitted within agreed timeframes.
Child Support Program
Working in partnership
Overall the CSP's performance saw increases to
the amount of child support transferred between
parents and collection rate for registered collect
cases. As well, there was an increase in the
percentage of private collect cases.
An example of a lower profile, but equally
important achievement, was the close work we
did with the Department of Families, Housing,
Community Services and Indigenous Affairs, and
relevant state and territory agencies, on a new
child protection data sharing protocol. The protocol
improves information sharing across the country
about children and families at risk of harm.
Headed up by Deputy Secretary Philippa
Godwin, the Child Support Program (CSP) also
had a busy year.
Customer satisfaction improved and the
number of complaints reduced by over
25 per cent. An innovative program piloted a
redesigned assessment process, which produced
Department of Human Services Annual Report //
3
significantly shorter timeframes for finalising
child support applications.
A major milestone for CSP was the successful
implementation of the Alignment of Care
2009–10 budget measure. CSP worked closely
with Centrelink to deliver this joined-up service.
Mutual customers are now able to contact either
CSP or Centrelink to notify care arrangements
and either agency will make the determination
using the same rules. The care decision is then
forwarded to the other agency and applied to
the customer’s assessment.
In late 2009 an independent review finished its
report on improving the effectiveness and efficiency
of CSP decision-making and quality-assurance
processes. The department set up a work program
to respond to the review’s recommendations.
In the past six months a new service-delivery
model and improvements to front-line customer
services were implemented. The CSP plans to
implement further review recommendations by
June 2011.
CRS Australia
CRS Australia, led by General Manager
Margaret Carmody, continued to make a
difference in our community by providing
disability employment, assessment and injury
management services to enable people to
access and remain in work. Its services also
supported employers to improve workplace
safety and retain their skilled and valuable staff.
In 2010 CRS Australia successfully transitioned
to the new Department of Education,
Employment and Workplace Relations
Employment Services Memorandum of
Understanding. Significant investment in
learning and development ensured
CRS Australia built organisational capability
and changed business practices to meet
purchaser requirements.
CRS Australia also improved its effectiveness
relative to the market with significantly more
job seekers being placed in employment than in
previous years. The concerted effort, flexibility
and effectiveness of staff helped to produce
excellent outcomes for its job seekers.
4
// CHAPTER 1: Overview
Departmental financial
performance
In 2009–10 the department had an operating
surplus of $26.1 million, 3.4 per cent of the
income available to it. The result was more than
the operating surplus of $4.8 million forecast
for the 2009–10 year in the Portfolio Budget
Statements 2010–11, predominantly due to us
not needing to access the $8.0 million available
under the Compensation for Detriment caused
by Defective Administration Scheme and a
CRS Australia surplus of $7.0 million.
The year ahead
The 2010–11 Budget contained over
60 measures that involve the Human Services
portfolio. These measures will allow us to
maintain our business-as-usual activities and,
in some cases, extend our service delivery
responsibilities. Substantial measures include:
• establishing a series of pilot projects on
compliance approaches for social, health
and welfare payments
• implementing Paid Parental Leave
• implementing the initiatives under the
Fifth Community Pharmacy Agreement.
Implementing further elements of service
delivery reform in the year ahead, and beyond,
will continue to test our planning, management
and implementation abilities.
Our people are our greatest strength, and
all have valuable and important ideas and
experience to contribute. It is the portfolio’s
extraordinarily capable and highly-skilled
workforce that is fundamental to achieving
positive outcomes for our customers and the
Australian community.
Finn Pratt, PSM
Secretary
Portfolio overview
The Department of Human Services was
established on 26 October 2004, as part of the
Finance portfolio, to improve the development
and delivery of government social and healthrelated services to the Australian people. The
Department of Human Services and its agencies
were transferred to the newly created Human
Services portfolio on 30 January 2007.
The portfolio brings together service delivery
agencies—Australian Hearing, Centrelink,
Medicare Australia and the Department of
Human Services. The Department of Human
Services includes the Child Support Program
and CRS Australia.
Minister
The Hon Chris Bowen, MP, the Minister
for Human Services, was responsible for
administering the following legislation:
• Australian Hearing Services Act 1991, except
to the extent that it is administered by the
Minister for Health and Ageing
• Child Support (Assessment) Act 1989, insofar
as it relates to the exercise of the powers and
functions conferred on the Registrar under
the Act
• Child Support Legislation Amendment
(Reform of the Child Support Scheme—Initial
Measures) Act 2006, insofar as it relates to
the exercise of the powers and functions
conferred on the Registrar under the Act
• Child Support Legislation Amendment
(Reform of the Child Support Scheme—New
Formula and Other Measures) Act 2006,
insofar as it relates to the exercise of the
powers and functions conferred on the
Registrar under the Act
• Child Support (Registration and Collection)
Act 1988, insofar as it relates to the
appointment of the Registrar and the exercise
of the powers and functions conferred on the
Registrar under the Act
• Commonwealth Services Delivery Agency
Act 1997
• Medicare Australia Act 1973.
Portfolio structure
At 30 June 2010 the Human Services
portfolio consisted of the Department of Human
Services, Centrelink, Medicare Australia and
Australian Hearing.
The Department of Human Services consists
of the central department, the Child Support
Program and CRS Australia.
• The central department directs, coordinates
and brokers improvements to service delivery,
provides policy advice on service delivery
matters to government, and ensures efficient
implementation of government service
delivery.
• The Child Support Program gives separated
parents the financial and emotional support
necessary for their children’s wellbeing.
• CRS Australia helps people with a disability,
injury or health condition to get and keep
a job, by providing individual rehabilitation
programs and helping employers to keep
their workplaces safe.
Centrelink delivers a range of government
payments and services to Australians, including
retirees, families, carers, parents, people with a
disability, Indigenous people, and people from
diverse cultural and linguistic backgrounds.
Centrelink also provides services at times of major
change.
Medicare Australia looks after the health
of Australians through efficient services and
payments, such as Medicare, the Pharmaceutical
Benefits Scheme, the Australian Childhood
Immunisation Register and the Australian Organ
Donor Register.
Australian Hearing is a statutory authority that
provides a full range of hearing services for children
and young people up to the age of 21, eligible
adults and age pensioners, and most war veterans.
Across the Human Services portfolio there
are more than 39 000 employees. Of these,
approximately three-quarters work in front-line
services. Our front-line service staff deal with
customers either in offices, or through phone
and processing centres.
Department of Human Services Annual Report //
5
Figure 1—Human Services portfolio structure at 30 June 2010
Minister for Human Services
The Hon Chris Bowen, MP
Department of Human Services
Secretary
Finn Pratt, PSM
Central Department, Child Support Program and CRS Australia
Centrelink
Chief Executive Officer
Carolyn Hogg, PSM
Medicare Australia
Chief Executive Officer
Lynelle Briggs
Australian Hearing
Managing Director
Steven Grundy
Service delivery reform
On 16 December 2009 the Minister for Human
Services announced the start of the reform
to government service delivery to develop a
modern, flexible, whole-of-government service
delivery system. This will enable the Australian
Government to better meet the needs and
expectations of the Australian people, and
to achieve policy outcomes, while delivering
services more efficiently.
Service delivery reform represents a fundamental
transformation of government services delivered
through the Human Services portfolio. The
portfolio has a combined customer base almost
equal to the entire Australian population and a
workforce which comprises nearly a quarter of
the Australian Public Service.
Service delivery reform is focused on several
areas of service delivery improvement that will:
• provide more convenient services through
the co-location of offices and the integration
of portfolio websites and phone numbers to
bring services together
• deliver more coordinated services through
improved assistance and intensive case
coordination support for those who suffer
from multiple disadvantages
• utilise technological advances to provide
modern services such as online forms and
letters, single online accounts and the
automation of customer transactions to
reduce the time people have to interact
with government
• provide tailored services that are targeted
to the needs of people and their particular
circumstances
• improve mobile and visiting services for
people living in remote areas or who are
socially isolated.
6
// CHAPTER 1: Overview
Service delivery reform aims to deliver
government social and health related services
that are Easy, High Quality and Works for You:
• Easy—meaning it is easier for people to do
business with government at a time and
manner that suits their circumstances
• High Quality—meaning people get better
quality services and more intensive help and
support at times in their lives when they
need it
• Works for You (the Australian people)—
meaning people get service from
government that ensures they receive the
benefits and support they are entitled to in
ways that work for them.
Services will be transitioned from fragmented
and separated program and process-based
approaches to service offers that are coordinated,
tailored and put people first.
Services will be simplified and automated giving
people the option to self-manage their own
interactions with government.
For the 2010 calendar year the government
gave specific commitments to:
• co-locate 20 Centrelink and Medicare
Australia offices by the end of 2010, and
around 40 by 2012
• implement a single phone number and a
single website for the portfolio by the end
of 2010
• integrate enabling support services, including
ICT, ministerial and parliamentary, legal
services, people services, communications,
corporate support, audit and assurance
functions, finance, property management,
procurement and human resources.
As part of the reform the Department of Human
Services, Centrelink and Medicare Australia are
planning to reconstitute as a single department
in 2011.
During 2009–10 work began on implementing
service delivery reform. Progress of this work
is detailed throughout this report and the
Centrelink and Medicare Australia annual reports.
Moving away from this fragmented approach
will progressively enable front-line staff to provide
more managed services and improved case
coordination for those in need of more intensive
support.
This will help to prevent people falling through
the cracks and provide better policy outcomes
for government.
Department of Human Services Annual Report //
7
Departmental overview
The Department of Human Services was created
on 26 October 2004, as part of the Finance
portfolio, to improve the development and
delivery of government social and health-related
services to the Australian people.
As a result of Administrative Arrangements
Orders (AAOs) issued on 30 January 2007, the
department and its agencies were transferred to
a newly created Human Services portfolio.
The Department of Human Services provides
a central policy and coordination role for the
delivery of services across the portfolio as well
as being the delivery agency for child support
and a provider of disability employment and
related services. It works with other departments
and agencies to develop policy on service
delivery—as clarified by the AAOs issued on
25 January 2008—and to ensure the effective,
innovative, and efficient implementation of
government service delivery policy.
To continually improve the quality and cost
effectiveness of service delivery by portfolio
agencies the department makes sure any
issues are considered early in the policy
development process.
As the first step towards service delivery
reform, from 1 March 2010 the portfolio
began integrating enabling services such as ICT
infrastructure, property management, finance,
legal, corporate support, communications,
procurement and human resources across the
department (excluding CRS Australia), Medicare
Australia and Centrelink.
Figure 2—The department at a glance
2009–10
Department of Human Services employees (including CSP)
4584
CRS Australia employees
2053
Department of Human Services employee turnover
10.9 per cent
Job seekers helped by CRS Australia
more than 57 000
DEEWR funded job seekers placed in employment by CRS Australia
more than 11 800
CRS Australia conversion rate from job placement to 13-week employment
70 per cent
Job seeker satisfaction with CRS Australia services
89 per cent
CRS Australia employee satisfaction
78 per cent
CRS Australia employee turnover
10.9 per cent
Number of CSP child support customers
1.3 million
Customer satisfaction with CSP services
74.9 per cent
(target: 70 per cent)
CSP service standard of telephone calls answered within 30 seconds
82.1 per cent
CSP total amount of child support transferred between parents*
$2.98 billion
CSP Collect collection rate
91.9 per cent
* These figures are derived for performance reporting and differ from the disclosures in the financial statements. They include debts that
have been written off, but exclude overpayments and child support liabilities raised but not yet due. There are also minor differences related
to the timing of the separate data extracts. Additionally, international debt for performance reporting purposes differs from the disclosures
in the financial statements as it includes collection by overseas governments for custodial parents residing in Australia.
8
// CHAPTER 1: Overview
Goals, roles, objectives
and strategies
In 2009–10 the department aimed to meet the
specific targets set out in the 2009–10 Portfolio
Budget Statements and the 2009–10 Portfolio
Additional Estimates Statements (see chapters
2–4 of this report).
Figure 3 sets out the department’s outcome and
strategies as described in the 2009–10 Portfolio
Budget Statements. The department also
focused on priorities set out in the Strategic Plan
2009–13 which is available on the department’s
website at www.humanservices.gov.au.
The plan establishes the department’s purpose,
values, approach and includes strategies and
priorities for Child Support Program and
CRS Australia, which also have plans specifically
relevant to their services. Supporting the
plan, an approach was introduced that
integrates planning, risk, financial and people
management.
The announcement of service delivery reform in
December 2009 has seen the department begin
work to replace the current five-year strategic
plan with DHS Strategic Directions 2010–11,
to be introduced in August 2010. The strategic
directions will have a range of portfolio priorities
reflecting ongoing business as usual and service
delivery reform. This planning approach has
been adopted by the department, Centrelink
and Medicare Australia.
Figure 3—Outcome and strategies of the Department of Human Services
Outcome
Strategies
Informed government decisions on,
and access to, social, health and
child support services for Australians
through policy development and
advice, and the coordination and
delivery of services.
Working with other government agencies to develop, innovative
and flexible service delivery policy that enables access to a high
standard of service to customers.
Working with the service delivery agencies to deliver value for
money in service provision, and sound and sustainable financial and
governance arrangements.
Supporting separated parents to transfer payments for the benefit
of their children through the delivery of a coordinated approach to
child support services.
Providing people with a disability or injury with high quality
vocational rehabilitation assessment, injury management and
prevention services.
Providing advice and service delivery that balances individuals’
preference for service delivery with the risks to taxpayer funds
caused by fraud and incorrect payment.
Department of Human Services Annual Report //
9
Structure and functions
Legislation
Figure 5 on page 12 shows the organisational
structure of the department at 30 June 2010.
This annual report includes appendices on
reports required by the following legislation:
• section 74 of the Occupational Health
and Safety Act 1991—see Appendix A—
Occupational health and safety
• section 8 of the Freedom of Information
Act 1982—see Appendix B—Freedom of
information
• section 311A of the Commonwealth
Electoral Act 1918—see Appendix C—
Advertising and market research
• section 516A of the Environment Protection
and Biodiversity Conservation Act 1999—
see Appendix D—Ecologically sustainable
development and environmental performance
The structure and working arrangements of the
department were reorganised from 1 March 2010.
Enabling services across the Human Services
portfolio were integrated to provide services for
the whole of the portfolio as part of the service
delivery reform agenda announced by Minister
Bowen on 16 December 2009.
The enabling services included ICT
infrastructure, legal, corporate support,
communications, property management,
procurement and human resources functions.
Under the new arrangements the integration
of the portfolio’s ICT platform is led by the
Department of Human Services.
Centrelink has lead responsibility for the
integration of corporate functions.
Medicare Australia has lead responsibility for
managing the integration of staff across the
portfolio, and the development of the portfolio’s
staff capability and services.
The Secretary of the department, and the Chief
Executive Officers of Centrelink and Medicare
Australia, retain separate accountability for the
department, Centrelink and Medicare Australia
respectively.
Executive
The names of senior executives are shown on the
organisational structure in Figure 5 on page 12.
Responsibilities
The Secretary is directly responsible to the
Minister for Human Services for the leadership,
management and performance of the
department. This includes determining priorities
and resource allocations.
10
// CHAPTER 1: Overview
This report also includes reporting under
the Disability Discrimination Act 1992—see
Appendix E—Commonwealth Disability Strategy.
Planning and reporting
Outcome and programs
The 2009–10 Portfolio Budget Statements and
the 2009–10 Portfolio Additional Estimates
Statements describe the portfolio department as
having one outcome and two programs.
The programs are Human Services (Program 1.1)
and Child Support (Program 1.2).
The department’s sole outcome is informed
government decisions on, and access to, social,
health and child support services for Australians
through policy development and advice, and the
coordination and delivery of services.
The department is responsible for ensuring that
the Australian Government gets best value for
money in service delivery while emphasising
continuous service improvements and a wholeof-government approach.
Figure 4 shows the department’s outcome and
program structure.
Figure 4—Outcome and programs structure 2009–10
Outcome 1
Informed government decisions on, and access to, social, health and child support services for
Australians through policy development and advice, and the coordination and delivery of services.
Program 1.1: Human Services
Program 1.2: Child Support
Administered Items:
Administered Items:
Other Administered
Departmental Items
Departmental appropriation
Revenue from other sources (s31)
Expenses not requiring appropriation in the
Budget year
Annual administered expenses:
Child Support dishonoured cheques
Special appropriations:
Child Support s77 – unremitted deductions
Child Support s78 – unexplained
remittances
Special account expenses:
Child Support Account
Expenses not requiring appropriation in the
Budget year:
Net write down of asset: receivables
Department of Human Services Annual Report //
11
Figure 5—Organisational structure and senior staffing, at 30 June 2010
Secretary
Finn Pratt
Deputy Secretary
ICT Infrastructure - John Wadeson
ICT Integration and Consolidation
First Assistant Secretary
Deputy Secretary
Delivery Policy and Compliance Jeff Popple
Strategic Support
Patrick Hadley
First Assistant Secretary
Assistant Secretaries
IT Service Delivery and
Security
Tom Penders
Integration
Di White A/g
Assistant Secretaries
Deputy Secretary
Child Support - Philippa Godwin
Operations
First Assistant Secretary
Geoff Mutton
Assistant Secretaries
Specialised Assessment
Jim McMahon
Payment Delivery Reform
Bernadette Levett A/g
Mitch Levy
Operations Support
Mark Garrity
Compliance and Data
Angela Geerdink A/g
Lorna Andrews
Strategy and Planning
TBA
Delivering Policy
Kathryn Johnson A/g
Customer Review and Quality
Improvement
Finance, HR and Support
TBA
Business Intelligence
Peter Robertson A/g
New Customers
Bruce Young
Infrastructure and
Telecommunications
Massoud
Rassoulzadegan A/g
Portfolio Coordination and
Parliamentary
Vanessa Prail A/g
Mainstream Services
Bruce Young
Non-Compliance
Bill Volkers
International
Bill Lodge
Regional Service Centres
Bill Lodge
Income Reconciliation Program
Ends: 31 December 2010
Scott McNaughton
ICT Integration and Corporate
Services
First Assistant Secretary
Yusuf Mansuri
Social Policy Delivery and
Planning
First Assistant Secretary
Linda Holub
Assistant Secretaries
Assistant Secretaries
Business Strategy and Projects
ICT Services
Jo-Anne Mason
Social Policy
Paul Hupalo
ICT Business Services
Jo-Anne Mason
Planning and Governance
Mary O'Hanlon
First Assistant Secretary
Quality Assurance
Dale Naughton
Family Policy
Narina Dahms
Assistant Secretaries
Strategic Initiatives and Risk
Management
TBA
Technology Architecture
Peter Gunning
ICT Planning Business and
Contact Management
TBA
Portfolio Enterprise
Architecture
Portfolio Infrastructure
Integration Program
Chief Counsel
General Counsel
Graeme Charlwood
Business Improvement
Simon Edwards A/g
Business Analysis
Mark Morrison A/g
Christine Pitt
Service Delivery Reform/
Integration
Paul Menzies-McVey
Andrew Lesbriel A/g
Medicare Australia
Maria Stipnieks A/g
First Assistant Secretary
Department of Human
Services
TBA
Assistant Secretaries
John Barnett A/g
Program Policy and
Procedures
Dennis Mahony
Centrelink (Legal Advising
and Commercial Law
Technical Skill Development
Tricia Flanagan
Centrelink (Advocacy)
Margaret Boylan A/g
Quality Analysis and
Stakeholder Engagement
Katrina Baird
Tuan Dao
Infrastructure Services
Peter Qui
Assistant Secretary
ICT Service Desk
Dan Barron A/g
Ombudsman, Privacy & FOI
Security, Infrastructure
Application and Services
Dan Barron A/g
Assistant Secretary
12
TBA
Customer Strategy
and Improvement
Ken Pogson
Assistant Secretaries
ICT Capability
Robyn Bickett
Business Projects
Child Support Program
ICT Integration Services
First Assistant Secretary
Legal Services
David Mole
Peter Cotterill
// CHAPTER 1: Overview
Gabrielle Davidson
Program Management
Jennifer Cooke
Deputy Secretary
Service Delivery Reform
Implementation - Kerri Hartland
Finance and Budgets
Chief Financial Officer
Jennifer Gale
Deputy Secretary
Taskforce on strengthening
government service delivery for
job seekers - Graham Carters
First Assistant Secretary
Alex Dolan
General Manager
CRS Australia - Margaret Carmody
Deputy General Managers
Service Delivery - Carl Princehorn
Corporate - Michael Robinson
Assistant Secretaries
Financial Management
Noel Dobbie
Internal Budget and Reporting
Helen Peel
External Budget
Drago Stanojcic
SDR CoORDINATION
First Assistant Secretary
Melissa McClusky
Assistant Secretaries
Project Reporting
Ruth Fenwick A/g
Financial Coordination
Rebecca Tyler A/g
SDR Strategy and Planning
First Assistant Secretary
David Trabinger
Assistant Secretaries
Business Strategy
John Kilner
Business Planning
Peter Soros A/g
Areas providing portfolio-wide services
Occupant of position from Centrelink
Temporary arrangement
Notes
This organisational chart reflects changes to organisational structures within the Human Services portfolio as part of the government’s
service delivery reform agenda. From 1 March 2010 enabling services across the portfolio were integrated to provide services for the whole
of the portfolio. The enabling services included ICT infrastructure, finance, legal, corporate support, communication, property management,
procurement and human resources functions. Centrelink has lead responsibility for the integration of corporate functions. Medicare Australia
has lead responsibility for managing the integration of staff within the portfolio and the development of the portfolio’s staff capability and
services. The integration of the portfolio’s information and communications technology platform is led by the Department of Human Services.
Department of Human Services Annual Report //
13
Achievements—Central department
Informed government decisions on, and access to, social, health and child
support services for Australians through policy development and advice,
and the coordination and delivery of services.
Chapter 2
Getting the GIST
Griffiths,
L-R : Peter Robertson, Michael Roden, Robert awa
Chris Evans, Chris McNab. Members of the rd winning team
Developed for the Department
of Human Services to support
service delivery supply and demand
modeling, the Geo-demographic
Interactive Simulation Tool (GIST) is a
user-friendly, web-based geospatial
analytics tool designed to enhance
the way government approaches
evidence-based policy making.
Holding a wealth of information that agencies
can tap into quickly and easily for demographic
information, GIST has quickly grown to become
a cross-government tool.
Today, GIST is deployed to over 300 users
across 23 Australian Government departments
and agencies through a secure web-based
environment. The Australian Bureau of
Statistics, Centrelink and Medicare Australia
are among the Australian Government
departments providing data from which
a detailed picture of Australia can be built.
Signaling its growing popularity among
government users, GIST was a finalist in the
16
// CHAPTER 2: Achievements—Central department
excellence in eGovernment Awards presented
at CeBIT Australia, held in Sydney during
May 2010.
GIST has an intuitive set of interactive functions
that allow users to query, map, profile and
chart information at the click of a mouse.
The information is presented in a way that
shows the impact of government spending
and policy decisions on communities and their
needs. The type of data it provides includes:
• social and economic indicators
• education attainment
• areas of disadvantage
• government program expenditure
• agency office locations
• Indigenous communities and statistics
• spatial data on the Murray-Darling Basin
area and surface water managements areas
• community facilities, such as schools,
hospitals or nursing homes.
Through GIST, government can better plan
delivery of services and programs for areas
of high need, while monitoring environment
and economic impacts.
The central department delivers Outcome 1
(2009–10 Human Services Portfolio Budget
Statements) by:
• provision of advice on the development of
service delivery policy and programs, the
coordination and development of specific
initiatives on behalf of government and the
governance of service delivery performance
involving portfolio agencies and programs
within the Department, including CSP and
CRS Australia
• delivery of child support assessment,
registration, collection and disbursement
services and support to separated parents,
through CSP
• delivery of expert assessment, injury
management and employment services to
assist people who have a disability or injury to
get and keep a job, through CRS Australia. All
services and funding are demand driven.
Table 1 on page 18 summarises the department’s
performance against key performance indicators
and targets set out in the 2009–10 Human
Services Portfolio Budget Statements. The
following sections detail the department’s
performance in delivering Outcome 1 in
2009–10.
Performance highlights—Central Department
Providing a central policy and coordination role for the delivery of services across the Human
Services portfolio, the department coordinates and brokers improvements to policy on service
delivery and service delivery reform to improve the delivery of innovative and cost effective
social, health, child support and rehabilitation services to the Australian public.
In delivering on these objectives, the department places a strong emphasis on promoting
innovation and continuous improvement, and to working across service delivery agencies and
the government as a whole.
Performance highlights for 2009–10 include:
• supporting the Australian Government’s service delivery reform agenda by introducing
new portfolio governance arrangements and organisational structures, and integrating
portfolio enabling services, including ICT infrastructure, finance, legal, corporate support,
communications, property management, procurement and human resources
• working closely with the Human Services portfolio agencies on service delivery reforms, which
included setting up co-located offices, engaging with customers and the community on
service co-design, and developing customer service offers
• receiving a Gold Award for the BasicsCard project at the Institute of Public Administration
Australia’s Prime Minister’s Award for Excellence in Public Sector Management 2009; an
improved card with more options was rolled out to merchants and 98.5 per cent of incomemanaged customers in the Northern Territory between March and June 2010
• leading the Commonwealth Spatial Data Integration pilot program, designed to develop a
coordinated approach to integrating and sharing of spatially-enabled Australian Government
administrative data to support social inclusion initiatives.
Department of Human Services Annual Report //
17
Main results
Table 1—Performance highlights—Central department
Targets
Performance 2008–09
Performance 2009–10
Briefs are submitted within agreed timeframes and meet a standard of satisfactory or above.
95 per cent of briefs
are submitted within
agreed timeframes
and meet satisfactory
standards or above.
Of the briefs on which the Minister
provided a feedback rating, 98.5 per cent
received a rating of effective or better.
Feedback received from the Minister’s office
has indicated that the Minister was satisfied
with the timeliness and quality of briefing
provided during 2009–10.
Ministerial replies to correspondence are submitted within agreed timeframes.
95 per cent of
ministerial replies
to correspondence
submitted within
agreed timeframes.
18
85 per cent of departmental ministerial
replies prepared by the department were
submitted within the agreed timeframes.
The department is committed to further
improvements in this area.
// CHAPTER 2: Achievements—Central department
76 per cent of ministerial replies prepared
by the department were submitted within
the agreed timeframes.
An increase in complex child support
matters as a percentage of correspondence
processed by the department has
contributed to this result. Efficiencies being
realised since the integration of portfolio
parliamentary teams in March 2010 are
expected to deliver ongoing improvement
against this target.
Targets
Performance 2008–09
Performance 2009–10
Key initiatives, such as: 1. service delivery reform initiatives, 2. fraud and compliance initiatives, 3. income
management card, 4. Commonwealth Spatial Data Integration initiative, are delivered within agreed timeframes
and budgets.
All
1. Service delivery reform initiatives
1. Service delivery reform initiatives
As part of the service delivery reform
agenda the department continued work
on developing options and business cases
for government, taking into account the
economic conditions and resulting fiscal
constraints. Coordinated customer access
and channel management approaches also
continued to be formulated. This included
agreed principles for co-location of
shopfronts and a process for considering
new policy initiatives in a multi-channel
portfolio-wide environment. The
department also worked with portfolio
agencies to implement practical reform
activities, one example of which was a
co-located Centrelink and Medicare office
in Narooma that allows customers to
access the services of both agencies in one
location.
The Minister for Human Services announced
service delivery reform in December 2009.
This included progressing the deliverable of
co-location (20 sites by December 2010),
virtual integration of enabling services
across the portfolio (from 1 March 2010)
and implementation of a single phone and
web initiative (piloted in May 2010). The
service delivery reform implementation
team was established in January 2010, and
incorporates the SDR Coordination Division
and the Strategy and Planning Division.
The implementation team has focused
on the design of the reform program and
its associated costs for consideration by
government in late 2010. The SDR Program
Office was established and a supporting
Program Management Framework was
developed. The framework includes the
governance structure, roles and instruments
that support decision making and reporting
arrangements to ensure accountability and
transparency for the service delivery reform
program.
To ensure the timely implementation of
enabling services activities associated
with service delivery reform, a
coordinated portfolio approach to
enabling services was established
through the development of the Portfolio
Integration Steering Committee. The
committee oversees coordinated
investment decisions and frameworks
for ICT, property and other corporate
functions.
The SDR Board was established to support
service delivery reform. The Board is a
strategic advisory body for service delivery
reform. It is responsible for setting the
direction and driving service delivery reform
across the portfolio, ensuring that key goals
and agreed outcomes are achieved and are
in line with government objectives.
The SDR Board supports the Secretary and
Chief Executive Officers' Committee which
meets weekly to discuss portfolio-wide
issues, including the progress and strategic
direction of the SDR program. Direction
and decisions for all service delivery reform
activities are provided by this committee.
The department established a Memorandum
of Understanding with the Office of the
Privacy Commissioner to ensure that privacy
considerations are appropriately managed
and consistently applied across the reform.
Department of Human Services Annual Report //
19
Targets
All
Performance 2008–09
2. Fraud and compliance initiatives
2. Fraud and compliance initiatives
The new strategic approach to supporting
compliance and combating fraud
was advanced by the development
and implementation of the 2009–10
Compliance Plan. The plan provides an
assessment of current risks associated
with fraud and non-compliance, activities
to address those risks and performance
indicators to measure the effectiveness
of those responses. The plan identifies
mitigation strategies and opportunities
to reprioritise fraud and non‑compliance
activities towards those that deliver the
greatest return on investment. It was
considered in the 2009–10 Budget and
informed the development of six measures
announced in the Budget to further
support the new strategic approach.
2009–10 was the first year in which a
more strategic and integrated approach
to supporting compliance and combating
fraud was in operation.
The development of the 2009–10
Compliance Plan was achieved against
agreed timeframes and initial measures
identified in the plan were progressed
for the 2009–10 Federal Budget.
Governance structures to oversee and
facilitate implementation were also
established within agreed timeframes.
20
Performance 2009–10
// CHAPTER 2: Achievements—Central department
The strategic approach was further
progressed in the 2010–11 Compliance
Plan. The plan provides a high-level
framework along five strategic themes:
i. managing risk
ii. focus on prevention
iii. early intervention
iv. intelligence-led approach
v. managing debt.
The performance report for 2008–09
accompanied the 2010–11 plan and applied
to the period before the strategic approach
to compliance. Future performance reports
will measure the long-term effectiveness
of the strategic approach to fraud and
non-compliance using newly-developed
performance indicators.
The development of the 2010–11
Compliance Plan was achieved against
agreed timeframes and initial measures
identified in the plan were progressed for
the 2010–11 Federal Budget. Governance
structures to oversee and facilitate
implementation, such as the Strategic Fraud
and Non-compliance Steering Committee,
managed and facilitated continuing
development of the strategic approach to
fraud and non-compliance.
Targets
All
Performance 2008–09
Performance 2009–10
3. Income Management Card
3. Income Management Card
The Minister was satisfied with both the
BasicsCard implementation in 2008 and
progress with the procurement of the
replacement card solution, as evidenced by
his speech at the 14th Cards and Payments
Conference and various media releases.
The Minister’s March 2009 promise to
industry of a competitive tender for a
replacement Income Management Card (or
‘BasicsCard’) was fulfilled in November 2009
with the contract signing of the new card
provider. The Minister announced to the
media that the new card would continue to
support ongoing Income Management policy.
The BasicsCard was rolled out between
September and December 2008 and the
replacement card request for tender was
published in May 2009 according to the
respective approved project schedules.
The replacement BasicsCard was rolled out to
merchants and income-managed customers
on schedule from January to June 2010.
Improvements include the printing of the
customer name on the card and enhanced
balance inquiry options such as the
1800–freecall balance checking number.
At 30 June 2010, 98.5 per cent of customers
had been provided with the new card.
All
4. Commonwealth Spatial Data
Integration (CSDI) initiative
4. Commonwealth Spatial Data
Integration (CSDI) initiative
There was no key performance indicator in
the 2008–09 Portfolio Budget Statements.
During 2009–10 the 2nd Pass Business Case
for CSDI was developed, in partnership
with GA, and ABS, in consultation with key
Australian Government departments and
agencies.
The goal of the CSDI pilot program was
to develop and implement a coordinated
approach to the integration and
sharing of spatially enabled Australian
Government administrative data to
support social inclusion initiatives.
The CSDI pilot program commenced
in March 2009 and was established in
partnership with Geoscience Australia
(GA) the Australian Bureau of Statistics
(ABS), and in consultation with Australian
Government Information Management
Office.
During 2008–09, the pilot program office
was established and the framework
for each of the constituent projects,
including GIST, was created.
The department also established a CSDI
cross-portfolio working group which helped
develop whole-of-government data sharing
processes including appropriate standards,
technology and governance.
The CSDI pilot program finished in June
2010 having successfully developed all
critical project deliverables, including the
deployment of GIST across 23 government
agencies. Funding for a full CSDI program
was not sought for 2010–11, as offsets
could not be identified from participating
agencies.
Department of Human Services Annual Report //
21
Targets
Performance 2008–09
Performance 2009–10
Key performance indicators1: Service delivery performance against agreed standards and targets is reported
to the Minister in agreed timeframes.
Quarterly reports
provided to Minister
within 6 weeks of
end of quarter.2
The Minister’s Statement of Expectations
and Centrelink’s Statement of Intent
and Annual Report on achievements
were in place in 2008–09. The Minister’s
Statement of Expectations and Medicare
Australia’s Statement of Intent and
Annual Report on Achievements were in
place for 2008–09.
Australian Hearing identifies service
delivery targets in its Corporate
Plan 2008–11 in accordance with
the Commonwealth Authorities
and Companies Act 1997 reporting
requirements. The Memorandum of
Understanding 2008–11 with the Office
of Hearing Services, Department of Health
and Ageing, prescribes its service delivery
targets for Indigenous clients under the
Community Service Obligation program.
Until 1 April 2009, Health Services
Australia’s performance was monitored
against its Corporate Plan 2008–11 and
Statement of Corporate Intent 2008–11
in line with reporting requirements for
Government Business Enterprises under
the Commonwealth Authorities and
Companies Act 1997.
Annual Reports on Achievements were in
place for Centrelink, Medicare Australia and
Australian Hearing for 2009–10.
In January 2010 the Minister outlined
his expectations for Centrelink and
Medicare by letters to their CEOs. The
letters highlight key agency priorities and
emphasise the importance of working
closely across the portfolio.
Australian Hearing identified service delivery
targets in its Corporate Plan 2010–2013,
in accordance with the Commonwealth
Authorities and Companies Act 1997
reporting requirements. The Memorandum
of Understanding 2008–11 with the Office
of Hearing Services, Department of Health
and Ageing, prescribes its service delivery
targets for clients under the Community
Service Obligation. Australian Hearing
reports quarterly to the Secretary on
performance against both the corporate
plan targets and the Community Service
Obligations service delivery targets.
The Secretary met with the Minister
on matters including service delivery
performance, approximately monthly during
2009–10.
1 KPI for 2008–09: Service delivery expectations for 2008–09 are set for the portfolio agencies and business units of the department.
2 KPI targets for 2008–09: Agencies and business units have service delivery expectations set.
22
// CHAPTER 2: Achievements—Central department
Targets
Performance 2008–09
Performance 2009–10
Key performance indicators1: Governance arrangements are appropriately implemented and managed for
the Portfolio agencies and business units.
Regular performance
management
meetings and
reports provided to
the Secretary and
Minister.2
Centrelink governance meetings were
held monthly in 2008–09.
Medicare Australia governance meetings
were held monthly in 2008–09 and
were reconstructed to enable improved
consideration of the most recent data
and information.
Australian Hearing governance
meetings were held quarterly to review
performance. The quarterly shareholder
reports are being reviewed for greater
clarity of the progress of business
imperatives.
Until April 2009 when Health Services
Australia left the portfolio, governance
meetings were held quarterly.
Centrelink governance meetings were held
monthly until November 2009, and Medicare
Australia governance meetings were held
in July, September and November 2009.
These meetings were replaced by alternative
governance arrangements, including the
Secretary and Chief Executive Officers'
Committee meeting.
The first Secretary and Chief Executive
Officers' Committee meeting was held
in October 2009. They were then held
approximately weekly for the remainder of
2009–10.
CRS Australia governance meetings were
held in July, August and September 2009
and were then discontinued. The General
Manager of CRS Australia is a member
of the Department of Human Services
Management Board.
Australian Hearing governance meetings
were held in August and December 2009
and March and June 2010, to review
performance against targets within both
its corporate plan and Community Service
Obligations service delivery targets.
The Secretary met with the Minister on
matters including performance reporting,
approximately monthly during 2009–10.
1 KPI for 2008–09: Governance arrangements are in place and service delivery performance is monitored against expectations.
2 KPI targets for 2008–09: Performance is monitored through monthly governance meetings (quarterly in the case of HSA group
and Australian Hearing).
Department of Human Services Annual Report //
23
Service delivery reform
In December 2009 the Minister for Human
Services announced the start of reform to
Australian Government service delivery that is
easy, high quality and works for all Australians.
The Minister’s announcement committed the
portfolio to three deliverables:
1.Twenty co-located Centrelink and Medicare
Australia offices by the end of 2010, and
approximately 40 by 2012
2.a single portofolio phone number and
website by the end of 2010
3.the integration of enabling services,
including ICT infrastructure, finance, legal,
corporate support, communications,
property management, procurement and
human resources.
In the short-to-medium term CRS Australia
will continue to deliver its current functions,
including corporate, human resources and ICT
support services; however, changes will be made
to align policy and practice where possible.
There has been significant progress on
implementing these three key deliverables, together
with other key elements of service delivery reform.
Service delivery reform in 2010
Co-location
The co-location of Medicare and Centrelink offices
gives Australians better access to the social, health
and welfare services delivered by the portfolio in
the convenience of one location. Feedback based
on the initial co-located sites shows high levels
of collaboration between staff to provide more
joined up services, and customers have responded
positively to the convenience of a one-stop-shop to
undertake transactions across multiple agencies.
Medicare Australia is already co-located with
Centrelink in 15 sites across Australia and,
during 2009–10, four more co-located sites
opened in Narooma, Belmont and Warrawong
NSW and Belmont WA.
24
// CHAPTER 2: Achievements—Central department
Medicare Australia is leading the development
and implementation of the co-location process.
More information on the co-location of offices is
provided in the Medicare Australia Annual Report.
Single portfolio telephone number
and website
Providing a single telephone number and website
will give the Australian people the means to
access portfolio information and details about
their transactions in their own time.
To ensure that a single portfolio telephone
number and website provides enhanced
service delivery, pilots were undertaken to
test the concept. The pilots were launched to
support the 2010–11 Budget announcements
by providing customers with easy access to
portfolio budget information. Both pilots
were evaluated from June 2010, including
extensive testing with customers to enable
implementation from November 2010.
The single portfolio telephone number
(13 24 68) will provide a first point of contact
for new customers via an automated telephone
service to access information about services
across the Human Services portfolio.
The single portfolio website will promote
high-quality information about Human Services
portfolio services. Work on the single website is
closely aligned with the Australian Government
Online Service Point and the development of
the australia.gov.au portal managed by the
Department of Finance and Deregulation.
Integration of enabling services
In December 2009 the Minister foreshadowed
that the Department of Human Services
(including the Child Support Program and
CRS Australia), Centrelink and Medicare
Australia would become a single department
of state. This organisational restructure
represents a major transformational change
to the portfolio as staff numbers represent
approximately one quarter of the Australian
Public Service.
From 1 March 2010 enabling functions of the
portfolio (excluding Australian Hearing and
CRS Australia)—legal services, people
services, audit and assurance, information
and communication technology,
infrastructure, property, corporate services and
communications—were brought together.
Legislative change is required to effect the
creation of the single department of state.
Other achievements
Local Connections to Work
In four of the co-located Centrelink offices, a
new approach to service delivery called Local
Connections to Work (LCTW) was introduced.
This initiative, developed by the Taskforce on
Strengthening Government Service Delivery for
Job Seekers, helps disadvantaged job seekers
and their families access existing high-quality
services under one roof.
LCTW is based on the New Zealand Community
Link model. The initiative brings together Australian,
state and local government services, employment
services providers and other community welfare
organisations. Services provided include counselling,
housing, mental health, youth, training and
financial assistance. Community partners are colocated on a rostered basis at the four Centrelink
Customer Service Centres. This means that
disadvantaged job seekers can ‘tell their story once’,
and receive the range of services they need (a wrap
around service).
From 24 May 2010—in Frankston (Victoria),
Campsie (New South Wales), Ipswich
(Queensland) and Elizabeth (South Australia)—
LCTW has assisted job seekers overcome
disadvantage and barriers to social inclusion and
economic participation. LCTW will be evaluated
to guide the longer-term development of service
delivery reform customer service offers.
Memorandum of Understanding with the
Privacy Commissioner
A Memorandum of Understanding was
entered into with the Office of the Privacy
Commissioner, ensuring that key considerations
regarding privacy would be built into the
structure of service delivery reform from the
start.
A Customer Privacy Framework has also been
developed to ensure that privacy considerations
are consistent across the reform. The framework
will ensure that service delivery reform is
implemented in a way that fosters trust and
respect and maintains or enhances people’s
choice and control in relation to their personal
information. Privacy standards have also been
developed in consultation with the Office of the
Privacy Commissioner to inform the framework.
The privacy standards complement existing
obligations under the Privacy Act 1988 and other
applicable privacy and secrecy requirements.
Privacy Impact Assessments
Privacy Impact Assessments were initiated
during the early design phase of service delivery
reform to help ensure privacy considerations
and protections were considered at the outset.
Privacy Impact Assessments have been
undertaken for all customer services. These
assessments incorporate an analysis of the effect
on an individual’s privacy and the identification
of privacy issues and strategies for addressing
privacy risks. The assessments found that in
general there are low privacy risks associated with
service delivery reform as the reform is based on
informed customer consent in relation to the use
and disclosure of personal information.
Co-design, stakeholder and community
engagement
Service delivery reform is focused on putting
people at the centre of service delivery, which
requires extensive engagement to ensure that
community needs are identified and met.
The portfolio has implemented a co-design
approach that builds on traditional stakeholder
engagement to engage with the people who
actually use government service delivery and
actively seek their views on how services could
be better delivered.
Department of Human Services Annual Report //
25
Co-design is more than asking for feedback or
undertaking consultation or satisfaction surveys.
It means engaging with individuals and groups
from the beginning to the end of a process.
Our co-design approach will ensure:
• genuine partnerships are built with the
community
• the community has a real and ongoing voice
at the table
• change delivers a balance of what the
Australian Government, the Human Services
portfolio and the community want to achieve
• the end user is involved in the planning,
development and implementation of solutions
• outputs are user-friendly and meet the end
user’s needs
• change and new products integrate smoothly
with existing systems.
The portfolio held 20 community workshops
across Australia to inform the development of
future services. Workshops were segmented
by customer groups including families, seniors,
Indigenous Australians and people accessing
mobile servicing.
Findings from these workshops have
consistently highlighted the importance
of linking up services, and providing well
coordinated services across customer areas
of need. Workshops, focus group discussions
and electronic media will be used throughout
2010–11 to explore service delivery experiences,
reform opportunities and service delivery design.
As part of service delivery reform within the
portfolio, Medicare Australia is leading the
development and implementation of the codesign process. More information on co-design is
provided in the Medicare Australia Annual Report.
Gateway Review Process
Service delivery reform is subject to the Gateway
Review Process, facilitated by the Department
of Finance and Deregulation. A Gate 0 (Business
Need) review was undertaken in April 2010,
and received a ‘green’ rating for the overall
26
// CHAPTER 2: Achievements—Central department
delivery confidence for the reform. The green
rating indicates the program is on target for the
effective and timely delivery of outcomes and,
while there may be some findings requiring
management attention, these appear readily
resolvable at this stage.
Engagement with the Community and
Public Sector Union (CPSU)
We are working closely with the CPSU given
they represent a large number of portfolio
staff. A Department of Human Services Deputy
CEO/CPSU Working Party on Service Delivery
Reform was established earlier this year and
it will oversee the development of a portfolio
enterprise agreement across the portfolio in the
coming year.
Staff integration
By 1 March 2010 integration of staff across the
enabling services of the portfolio into one DHS
ICT infrastructure organisation was completed.
Under the new structure some staff co-locations
took place.
Inter-agency connectivity
The first major milestone in providing crossorganisation connectivity was the development
of a network portal for portfolio staff co-located
in Centrelink and Medicare Australia sites. The
portal allows staff to log in, view their email and
work on documents through a virtual portfolio
desktop. This made for an easy transition to
new work sites by maintaining access to data
and services on their previous network.
All staff phone directory
From April 2010 all staff across Medicare
Australia, the Department of Human Services
(excluding CRS Australia) and Centrelink had
access to a consolidated portfolio phone
directory with the name, agency, location and
contact details of staff across the three agencies.
This was an important step towards providing
access to information across the portfolio.
Planning for service delivery
reform in 2010–11 and beyond
Planning and coordination
Over 2009–10 the portfolio developed high
level plans for key elements of the reform
program. To ensure successful design and
implementation, the department developed
a strategy outlining the service delivery
vision for 2015 and pathways to achieve
it. It also established an umbrella program
management and implementation framework,
to provide program management and financial
coordination.
The department worked closely with central
agencies to ensure sound program management
arrangements are in place and the program is
aligned with broader government objectives.
The integration of the portfolio, co-location
of offices and the development of a single
portfolio telephone number and website will
continue throughout 2010–11 together with
the next layer of planning for the further
deliverables, timeline and associated costs.
Governance structures were established
to ensure that appropriate engagement is
undertaken across government, and that critical
government programs and services continue
to be delivered. The governance structure and
committees are outlined in more detail on pages
66–71.
Other forums, such as the Strategic Partnerships
Interdepartmental Committee and the Health
and Human Services Chief Executive Officers’
Forum, regularly consider issues related to service
delivery reform as part of the broader discussion.
These forums are outlined in more detail on page
70.
Service delivery policy
and program advice
In 2009–10 the department advised the Minister
on the development of service delivery policy
and programs, coordinated and developed
specific initiatives on behalf of the Australian
Government relating to service delivery reform,
fraud and non-compliance, and managed the
governance of service delivery and business
agreements involving the portfolio.
Contributions to key
government reviews
The department provided service delivery advice
to a range of key government reviews and
projects such as the Review of Australia’s Future
Taxation System and The Reform of Australian
Government Administration.
The department worked with The Treasury
to coordinate input to the tax system review,
including the examination of service delivery
implications for the transfer system. The review
included several areas of interest for the portfolio
in relation to the interaction and administration
of the personal tax and transfer systems.
In September 2009 the Prime Minister
announced a review of Australian Government
administration which was undertaken by an
advisory group chaired by the Secretary of the
Department of the Prime Minister and Cabinet,
Mr Terry Moran AO. The report Ahead of the
Game: Blueprint for Reform of Australian
Government Administration was released
by the government on 29 March 2010. On
8 May 2010 the government agreed to the
package of reforms outlined in the report.
The department helped to develop the blueprint
which includes aspects of portfolio responsibility,
service delivery and areas for performance
improvement and reform. The blueprint outlines
an ambitious agenda to equip the Australian
Public Service and the nation for the challenges
of the future. A number of reform areas strongly
complement the work being undertaken around
Department of Human Services Annual Report //
27
service delivery reform. These include delivering
better services for citizens, creating more open
government, enhancing policy capability, ensuring
agency agility, capability and effectiveness, and
improving agency efficiency. The department
will contribute to initiatives that advance the
government’s administration reform strategy.
Child protection data
sharing protocol
The department worked closely with the
Department of Families, Housing, Community
Services and Indigenous Affairs (FaHCSIA),
and relevant state and territory departments,
to develop and implement an informationsharing protocol between child protection
agencies. The protocol, which aims to improve
sharing of information about children and
families at risk of harm, began on 1 January
2009, and implementation by relevant Human
Services agencies was completed in 2009–10.
This represents a commitment by the Australian
Government to provide information to help state
and territory agencies in their child protection role.
Access and equity
Indigenous Australians
The Australian Government’s commitment to
‘Closing the Gap’ aims to reduce Indigenous
disadvantage with respect to life expectancy,
child mortality, access to early childhood
education, educational achievement and
employment outcomes.
In 2009–10 agencies developed and implemented
a wide range of initiatives to improve Indigenous
Australians' ease of access to information and
services provided by agencies in urban, regional,
and remote communities. Agencies remain active
in strengthening and supporting the Council of
Australian Governments National Partnership
Agreements. In particular, they support the
initiatives of the Remote Service Delivery National
Partnership where service delivery has extensive
geographical reach, including permanent shop
28
// CHAPTER 2: Achievements—Central department
fronts and regular outreach visiting services, as
well as various forms of third party provided
agents and kiosk-like self-service points.
Social inclusion
The Australian Government’s social inclusion
agenda aims to make sure every Australian has
the capability, opportunity and resources to
participate in the economy and their community
while taking responsibility for shaping their own
lives. Released at the inaugural Social Inclusion
Conference on 28 January 2010, the national
statement on social inclusion A Stronger,
Fairer Australia sets out the government’s
plan for achieving this vision. The department
and portfolio agencies provided input to the
statement and are represented on the Social
Inclusion Consultative Forum.
The Taskforce on Strengthening Government
Service Delivery for Job Seekers reported initially
to the Australian Social Inclusion Board on
the design of the place-based initiative Local
Connections to Work and then again on the
early implementation experience with the wrap
around servicing model. The Australian Social
Inclusion Board supported the model and the
progress to date.
National compact
The social inclusion agenda recognises the critical
role the not-for-profit sector plays in delivering
services, advising and developing social policy,
and advocating on behalf of marginalised
groups. A strong relationship between the
government and the sector will be crucial to the
success of the agenda and related reforms.
The National Compact: working together, a highlevel, aspirational and principle-based document
that articulates a mutually respectful relationship
between the government and the not-for
profit sector to deliver improved policy and
services, was launched by the Prime Minister on
17 March 2010. The department and portfolio
agencies provided input to the development of
the compact and are represented on the National
Compact Across Government Working Group.
As a Compact Champion, the Secretary has
committed the department to improving the
way government and not-for-profit organisations
work together to better coordinate the delivery
of services for those most in need of support.
An early example of this has been the local
community consultation forums undertaken by
the Taskforce on Strengthening Government
Service Delivery for Job Seekers. These forums
were designed to encourage community input
to and support for the Local Connections to
Work model. The Parliamentary Secretary for
Social Inclusion and the Voluntary Sector, Senator
the Hon Ursula Stephens, attended some of
these forums to promote the national compact
principles.
Homelessness
function of the FAO service delivery model,
governance and operational issues, financial
arrangements, and marketing and branding.
As a result of the review, the transfer of FAO
governance and website responsibilities from
FaHCSIA to DHS took place on 1 June 2010.
Paid parental leave
In 2009–10 the department worked with
portfolio agencies and other Australian
Government departments providing advice on
service delivery policy and effective program
delivery for the Paid Parental Leave scheme.
Claimants will be able to lodge claims from
October 2010 and payments will begin on 1
January 2011. The Human Services portfolio
through the FAO will have a key role in supporting
the administration of the scheme.
In December 2009 the Australian Government
released the report Along the Road Home,
outlining key achievements aimed at reducing
the level of homelessness over the first year of
the White Paper on Homelessness.
Income management
The department and Centrelink are represented
on the Homelessness Delivery Review Board
which is responsible for advancing whole-ofgovernment efforts to reduce homelessness in
line with the reforms set out in the White Paper.
The department provides strategic support to
Centrelink to help it implement White Paper
measures, giving Centrelink a larger role in
providing support and services to people who
are homeless or at risk of becoming homeless.
Strategic support
Family Assistance Office
Reforms Project
The emerging service delivery reform agenda
provided an opportunity to reconsider the
Family Assistance Office (FAO) governance
arrangements and to pursue greater efficiencies
and effectiveness in administration to improve
service delivery to FAO customers in 2009–10.
The department and FaHCSIA collaborated
on the project to assess the ongoing role and
In 2009–10 the department and portfolio
agencies worked with FaHCSIA on service
delivery policy issues to support the transition
and implementation of new arrangements in
2010–11.
Health business and delivery policy
In 2009–10 the Health Business and Delivery
Policy Branch contributed to policy advice on
Cabinet and policy development processes
for health-related matters in relation to, for
example eHealth, especially the role of Medicare
Australia as service operator for the Healthcare
Identifier Service, and the potential implications
for the portfolio from the health reform agenda.
The department worked with Medicare
Australia to implement Budget measures,
including the opening of three Medicare offices
in Belmont (Western Australia), Belmont and
Warrawong (New South Wales), all of which
opened on time.
Department of Human Services Annual Report //
29
In relation to Australian Hearing, the branch
provided advice to government on Community
Service Obligations, reviewed quarterly reports,
and helped the agency with its interactions
with other government portfolios, especially
the Office of Hearing Services within the
Department of Health and Ageing.
Strategic fraud and non-compliance
The Compliance and Data Branch continues to
work closely with portfolio agencies and across
government to drive a more integrated response
to current and emerging non-compliance risks
across the social, health, welfare and child
support payment systems.
The branch worked with policy departments
and portfolio and central agencies to produce
a 2009–10 Compliance Plan which focuses on
developing an integrated, strategic approach
to compliance activities, including targeting
areas of highest risk.
The plan provided material for initiatives
announced in the 2009–10 Budget. These
initiatives, which included improvements
to data matching, debt recovery, earlier
detection of inappropriate claiming and
identification of customers at highest risk of
non-compliance, are estimated to provide
savings of $203 million over four years.
Continuing on from the 2009–10 Budget, the
branch coordinated the development of further
strategies to reduce fraud and non-compliance
so that only those who need and are entitled to
income support payments receive them.
Initiatives begun included:
• better targeting of Newstart Allowance
reviews to address compliance risks
• detecting undeclared transfer of foreign
funds project
• full integration of the Child Support Program
into the Annual Compliance Plan.
The branch also developed a Strategic
Intelligence Training Program for intelligence
officers within the Human Services portfolio.
30
// CHAPTER 2: Achievements—Central department
This will give participants practical knowledge
of strategic intelligence incorporating research
methods, program management, data
collection and analysis. They will then have
an appreciation and understanding of how
strategic intelligence supports decision making
and be able to influence, through evidencebased analysis, fraud and compliance priorities
within their agencies as well as the broader
portfolio strategic priorities.
The branch also coordinated the Australian
Government’s contribution to the Six
Countries forum that brings together social
security and employment departments and
agencies from Australia, the United Kingdom,
Canada, Ireland, New Zealand and the United
States to share information on strategies and
policies in a number of key areas.
Business intelligence
The department sources statistical and
demographic information from the Australian
Bureau of Statistics (ABS), Human Services
portfolio and other government agencies to
measure, explore and support the department’s
business activities and decisions.
The functions undertaken by the Business
Intelligence Branch include developing reports,
applications, technologies and methodologies
that support access to and analysis of
information needed for strategic decision
making and monitoring of service delivery
reform, programs and customer impacts.
Commonwealth Spatial Data Integration
pilot program
The department led the Commonwealth
Spatial Data Integration (CSDI) pilot program.
Its goal is to develop and implement a
coordinated approach to the integration
and sharing of spatially-enabled Australian
Government administrative data to support
social inclusion initiatives.
The pilot program was established in
partnership with Geoscience Australia (GA)
and the Australian Bureau of Statistics (ABS),
and in consultation with Australian Government
Information Management Office.
During 2009–10 the 2nd Pass Business Case for
CSDI was developed, in partnership with GA,
ABS, and in consultation with key Australian
Government departments and agencies.
The department also established a CSDI crossportfolio working group which helped develop
whole-of-government data sharing processes
including appropriate standards, technology
and governance.
Geo-demographic Interactive
Simulation Tool
Geo-demographic Interactive Simulation
Tool (GIST), the department’s geospatial
demographic analytical capability, was upgraded
to support development of service delivery
policy and reform, cross portfolio social inclusion
planning and the broader social reform agenda.
It now has many new features and datasets to
enhance its analytical capability and potential.
The system was initially developed to support
service delivery monitoring and planning.
Datasets now available include:
• administrative data from Centrelink and
Medicare Australia
• statistics from the ABS Census 2006
• Labour Force and Socio-Economic Indexes for
Areas data
• infrastructure Economic Stimulus Plan grants
data and Priority Employment Areas grants
• expenditure data.
In 2010–11 GIST will continue to expand its
current evidence base to support the department’s
strategic priorities for service delivery reform and
to improve opportunities and decisions involving
individuals, families and communities.
GIST has been deployed to 23 Australian
Government departments and agencies and
has nearly 300 users.
GIST was a finalist in the excellence in
eGovernment Awards presented at the CeBIT
Australia, held in Sydney during May 2010.
Disaster and recovery program
The department undertook key work to aid
Centrelink prepare its response to Cyclone Ului
by identifying at-risk locations. Centrelink’s
role in the Australian Government’s Disaster
and Recovery Program is pivotal to the portfolio
and vital for a prompt response in delivering
services to those affected by disasters. The
Business Intelligence Branch contributes in
disaster recovery by providing intelligence for
disaster areas.
Payment delivery reform
In September 2009 the Minister for Human
Services released an Industry Discussion Paper
Better Dealings with Government: Innovation
in Payments and Information Services to
explore ways of using industry capabilities to
deliver relevant government payments and
related information services. New payment
and information service capabilities are crucial
to implementing service delivery reform
and support broader reform activity across
government, including outcomes from the
Henry Review of Australia’s Future Tax System.
The discussion paper represented the first
stage of a closer engagement with industry to
identify innovative solutions for payment and
information services and government–industry
collaborative opportunities.
Portfolio coordination and
parliamentary
The Portfolio Coordination and Parliamentary
Branch provides parliamentary, ministerial and
government related advice and services to the
Minister, departmental executive, department
and portfolio agencies. The ministerial and
parliamentary functions from within Centrelink
and Medicare Australia integrated into the
branch on 29 March 2010. The branch now
provides related services to the whole portfolio
and work is continuing to realise synergies
across the functional teams.
Department of Human Services Annual Report //
31
Integrated communication functions
During the year the department produced
12 national and 230 state and regional
CSP media releases on new service options,
compliance initiatives, self-help tools and advice
on how to handle specific child support issues.
To support service delivery reform the
communication functions across the
Human Services portfolio, (excluding
CRS Australia) were integrated from
1 March 2010.
These media activities generated extensive media
coverage from national, metropolitan, regional,
suburban and trade publications. Independent
media analysis in June 2009–May 2010 classified
over 95 per cent of all media reports that
mentioned the Child Support Agency or child
support as positive or neutral.
A high priority is placed on effective
communication with customers, potential
customers and the Australian community.
Effective communication provides Australians
with the information they need to make
informed choices about Human Services
payments and services, and to understand their
rights and obligations when they receive these.
Independent research into the effectiveness
of the communication campaign on the Child
Support Scheme by the Open Mind Research
Group continued in 2009–10.
Communicating with customers
and the community
The research, first conducted in 2008–09
established a benchmark of awareness
of and attitudes to the Child Support
Agency and the Child Support Scheme and,
subsequently, measured awareness and
attitudes against the benchmark.
Communication and education
In 2009–10 the department continued
to communicate with, and to educate,
customers and the community to increase
their understanding of child support and its
connection to the broader family law system.
The most recent research results, from
May 2010, show a continued overall positive
increase in separated parents’ awareness of and
attitudes to the Child Support Agency and Child
Support Scheme (Figure 6).
Figure 6—Parent perceptions of the child support system
8
6.9
7
6.7
6.1
6
RATING OUT OF TEN
5.1
6.4
5.4
5.5
5
4.9
4
6.5
6.3
5.2
6.2
5.7
4.6
3
2
1
0
May-07
Aug-07
Feb-08
Aug-08
PAYING PARENTS
32
// CHAPTER 2: Achievements—Central department
Aug-08
RECEIVING PARENTS
Mar-09
May-10
The research showed that 74 per cent
of receiving parents and 60 per cent of
paying parents agree that the department
is communicating better with its customers
and the community.
Evaluating media coverage
The media is an effective way of informing
the broader community about Australian
Government support, services and payments,
and media monitoring allows evaluation of
issues and messages communicated to the
community, as well as the likely impact and
ongoing effects on its delivery of services.
Following integration of the communications
function across the portfolio, the department
implemented a centralised portfolio-wide media
monitoring process to achieve a more efficient
and cost-effective distribution service. In each
portfolio agency fewer than 350 employees
have access to full press clips, which reduces the
downstream copyright licence fees the external
media monitoring provider collects on behalf of
Copyright Agency Limited.
Information products
During 2009–10 the department updated its
core publication The Parent’s Guide to Child
Support in line with changes to the Child
Support Scheme. The guide is a key child
support reference for separated parents. It
contains comprehensive information about
the Child Support Scheme, Family Tax Benefit
and support available for separated and
separating parents.
Four editions of the regular Child Support
Matters newsletter were delivered by mail to
parents and stakeholders. The newsletter is
also available on the Child Support website—
www.csa.gov.au—and keeps CSP customers
up-to-date with the Child Support Scheme,
CSP and Human Services portfolio.
Twelve editions of eNews for Parents were
distributed monthly to online subscribers. This
email newsletter provides up-to-date news and
information about CSP and child support.
The department also released two new support
products for separated and separating parents
and children affected by separation or divorce.
A third product, a CD-ROM and complementary
story and activity book is currently being
finalised. These included:
• My family is separating—What now? an
online tool containing a number of different
pathways through the family law system, to
help parents more easily navigate the system.
• It’s not about the money. It’s about the
kids, an information DVD and online
video aimed at Indigenous separated and
separating parents and non-parent carers.
This product promotes shared parental
responsibility for the wellbeing of children,
provides information about the role of the
CSP and connections to Family Assistance
and Centrelink and explains parents’ rights
and responsibilities under the Child Support
Scheme.
• An interactive CD-ROM complementary
story and activity booklet for children aged
under 12, to complement the successful
teen booklet, Family separation—a guide for
teens, launched in 2007.
Department of Human Services Annual Report //
33
Achievements—Child Support
Program
Delivery of child support assessment, registration, collection and
disbursement services.
Chapter 3
Financial literacy for parents
I’m helping my kids now with their mongsey plan.
management and they each have a savin
In 2008 approximately 53 per cent
of Australians weren’t good at
managing their money.
Since the Australian Bureau of Statistics
published the financial literacy survey results,
the Child Support Program (CSP) has partnered
with two organisations in an attempt to bring
that figure down for separated families.
Budgeting for the household income is more
complicated for separated families. Often
one partner managed the finances for the
household; once separated, both need the skill.
As part of the support services it extends
to separated families—legal, emotional,
parenting, family violence—CSP is now
working with organisations such as the
Brotherhood of St Laurence, to enable child
support customers to participate in a program
called SaverPlus. The program helps lowincome families to build financial literacy skills
and develop long-term saving habits.
36
CSP is also working closely with AFCCRA—the
Australian Financial Counselling and Credit
Reform Association. CSP provides an overview
of the child support scheme to AFCCRA
counsellors, as well as a hotline that financial
counsellors can call if they have a client who is
also a child support customer requiring advice.
The hotline staff can access case files—with
the customer’s permission—which gives the
financial counsellor a complete picture of the
client’s situation.
The partnerships that CSP has with the
Brotherhood of St Laurence and AFCCRA are
really paying off for separated parents. One
client said: ‘I was a bit sceptical when referred
to a financial counsellor, but it really has
helped. I’m helping my kids now with their
money management and they each have a
savings plan.’
// CHAPTER 3: Achievements—Child Support Program
The Child Support Scheme is designed to ensure that both parents contribute to the cost of their
children, according to their capacity. The Child Support Program (CSP) contributes to the achievement of
Outcome 1 (2009–10 Human Services Portfolio Budget Statements) through the delivery of child support
assessment, registration, collection and disbursement services. The following sections detail the CSP’s
performance for 2009–10.
Performance highlights—Child support program
Collections
CSP improved the overall collection performance during 2009–10; both the collection rate of
liabilities and the percentage of private collect customers have increased. CSP also implemented
initiatives to enhance the focus on early intervention and targeted collection approaches where
customers have outstanding child support.
Complaints
CSP successfully implemented strategies to reduce the number of escalated complaints. In
2009–10, 9553 complaints were received compared to 12 874 in 2008–09, a reduction
of 25.80 per cent. There was also a reduction of just under 50 per cent in the number of
complaints relating to staff behaviour during 2009–10.
Telephony response
In 2009–10 CSP achieved its telephony service standard of 80 per cent of calls answered within
30 seconds.
Early intervention
Early intervention teams continue to successfully contact paying parents and negotiate suitable
payment arrangements to minimise the growth of child support debt.
Change of assessment
CSP has begun a trial of the redesigned change of assessment process, which emphasises earlier
and more frequent customer contact and significantly shorter timeframes for finalising applications.
Results to date show 67 per cent of applications finalised within 35 days and 88 per cent within
50 days, a significant reduction from 90 days under the existing process.
Customer and stakeholder satisfaction with the redesigned process has been positive and key
stakeholders were actively engaged in the redesign process. A full evaluation of the trial will be
completed before a decision on the design of a future process is made.
Department of Human Services Annual Report //
37
Financial counselling
CSP has partnered with the Australian Financial Counselling and Credit Reform Association to
create a ‘single point of contact’ telephone hotline. The hotline is for financial counsellors who need
information about issues on child support when working with mutual customers. Since the hotline’s
inception in December 2009 it has received 173 calls, enabling customer service officers to work with
financial counsellors and customers to make payment arrangements and resolve case specific issues.
Saver Plus
The Saver Plus program is a partnership between the ANZ Bank and Brotherhood of
St Laurence designed as a matched savings program to help low-income families develop
long-term saving habits and reach an education-focused savings goal. The program helps to
build financial literacy.
In May and June 2010 over 46 000 customers were advised of the program’s availability.
Early indications show a good response from CSP customers.
Child protection
As a result of the COAG-endorsed National Framework for Protecting Australia’s Children
2009–2020, states' child protection agencies can now request certain information from CSP if
there are concerns about a child’s safety.
Information products
CSP released two new support products for customers affected by separation or divorce.
My family is separating—What now? is an online tool containing pathways through the family
law system. It’s not about the money. It’s about the kids, is an information DVD and online
video aimed at Indigenous separated and separating parents and non-parent carers.
New technologies and initiatives to better support services to customers
New telephony systems have been piloted to deliver greater flexibility for customers and reduce
customer queue wait time.
Automated mail handling solutions are being introduced to streamline management of
customer correspondence and responses to customer enquiries.
38
// CHAPTER 3: Achievements—Child Support Program
Main results
Table 2—Performance highlights—Child Support Program
Key performance indicators
Targets
Performance
2008–09
Performance
2009–10
Greater than 70%
72.7%
74.9%
Estimate: $585
$564
$585
Estimate: 16 cents
16.2 cents
16.2 cents
Estimate
$2.8 billion
$2.84 billion
$2.98 billion
Child support CSP Collect collection rate
Estimate: 91.5%
91.5%
91.9%
Percentage of Private Collect cases to total
active cases (CSP and Private Collect cases)
Estimate 52.0%
52.0%
53.8%
Quality
Increased customer satisfaction with
CSP’s service
Cost
Cost per case
Cost per dollar transferred
Effectiveness—adequacy
Total amount of child support transferred
between parents
Effectiveness—independence
These figures in this section are derived for performance reporting and differ from the disclosures in the financial statements. They include
debts that have been written off, but exclude overpayments and child support liabilities raised but not yet due. There are also minor
differences related to the timing of the separate data extracts. Additionally, international debt for performance reporting purposes differs
from the disclosures in the financial statements as it includes collection by overseas governments for custodial parents residing in Australia.
Price is no longer recorded as CSP is now fully integrated into the department.
Analysis/trends
Child support transfers
Overall CSP’s performance for 2009–10 saw
increases in the amount of child support
transferred between parents and collection rate
for registered collect cases, and an increase in the
percentage of Private Collect cases. Customer
satisfaction improved across the year reflecting
improvements in CSP key services areas.
Separated parents who register with the CSP
can elect to transfer child support privately
(Private Collect), or ask CSP to transfer the
payments (CSP Collect). Improved collection
In 2009–10 the department improved child
support collection through:
• child support transfers
• compliance and enforcement
• income reconciliation.
In 2009–10 CSP worked with separated parents
to transfer $2.98 billion to financially support
more than 1.19 million children. This compared
to $2.84 billion transferred in 2008–09.
Over the life of the Child Support Scheme
since 1988—taking into account both CSP
Collect and Private Collect—$32.2 billion (or
96.5 per cent of all liabilities raised) has been
credited. In 2009–10, 98.2 per cent of all
domestic liabilities were credited. This included
both CSP Collect and Private Collect liabilities.
Department of Human Services Annual Report //
39
There are now 839 925 total cases, an increase of
10 907, or 1.3 per cent compared to 2008–09.
The number of ended with arrears cases is 62 508
or 7.4 per cent of CSP’s total caseload.
registered for CSP Collect. Figure 7 shows the
increases in total liabilities raised and amount
collected by CSP.
Active paying parents without a
child support debt
Private collection
CSP encourages and supports parents to
independently manage their child support
responsibilities through private collection
(Private Collect) arrangements. Research
shows this method gives the most flexibility
to parents who are able to cooperate on
parental decisions.
The number and proportion of active paying
parents without a child support debt is steadily
increasing compared to the previous financial
year. Over 72.7 per cent of all paying parents
had no debt at end June 2010 compared to
71.9 per cent at end June 2009.
Debt collection
The number of parents using Private Collect
arrangements increased to 53.76 per cent during
2009–10. In 2008–09 it was 53.2 per cent of
cases; in 2007–08 it was 52.1 per cent.
At 30 June 2010 outstanding domestic and
international child support payments totalled
$1169.84 million. Domestic debt totalled
$868.93 million and international debt totalled
$300.91 million.
CSP collection
This compares with the 30 June 2009 total
debt of $1088.74 million, $825.32 million
in domestic debt, and $263.42 million in
international debt.
Parents can ask the CSP to collect their child
support (CSP Collect). A total of 353 005 or
46.2 per cent of active child support cases have
Figure 7—Increases in total liabilities raised and amount collected using CSP Collect
120
110
Millions
100
90
80
70
40
// CHAPTER 3: Achievements—Child Support Program
TOTAL PAYMENTS
-10
-10
Ma
r-10
Apr
-10
Ma
y-10
Jun
-10
Feb
-09
Jan
Dec
-09
-09
Nov
-09
Oct
Sep
-09
09
TOTAL LIABILITY
Aug
-09
Jul-
Jun
Apr
-09
Ma
y-09
Feb
-09
Ma
r-09
-08
-09
Jan
-08
Dec
Nov
08
-08
Oct
08
Sep
-
Jul-
Aug
-
08
60
Reasons for the increase include:
• greater focus on the accuracy of assessments
arising from increased targeting of cases with
non-taxable incomes
• an increase in the number of tax returns
lodged by CSP customers resulting in
increased child support liabilities for previous
child support periods
• continuing increase in international cases
and level of debt owing where one parent
lives overseas.
The CSP is implementing a collection strategy
to address the rise in debt. It includes dedicated
early intervention teams, targeted case selection
and ensuring that existing collection-related
business processes are as effective as possible.
CSP is continuing to adopt strategies to
address the growth in international debt. CSP’s
international obligations involve the receipt of
overseas liabilities and debt which are often
significant amounts.
In 2009–10 CSP provided online access to
international child support information, issued
new procedural instructions and revised its
business processes.
Memorandums of understanding
The CSP and the Australian Taxation Office
(ATO) have signed a Memorandum of
Understanding (MoU) in relation to the joint
Lodgement Enforcement Program effective
from 1 July 2010. The program’s objective is
more accurate assessments and debt collection
opportunities for child support customers.
CSP and the ATO will collaborate to enforce
the lodgment of outstanding income tax
returns.
The MoU will:
• define roles, responsibilities and expectations
of the customer (the CSP) and the service
provider (the ATO)
• define the indicators that measure
performance by both parties
• ensure there is a mechanism for quick and
effective resolution of risks, competing
priorities and conflicts
• ensure that cooperation between CSP and
the ATO continues.
Data matching
CSP and the Australian Securities Investment
Commission (ASIC) reached the final stages
of negotiation concerning the MASCOT Data
Access Agreement. The MASCOT system
contains an ASIC stand-alone database which
replicates a number of its information registers,
as well as some additional information.
Australian Government agencies will now have
direct access to certain ASIC registers rather
than via mainframe databases.
CSP anticipates that access to the MASCOT
system will considerably enhance its collection
and enforcement powers.
Compliance and enforcement
In 2009–10 the department continued to
expand and improve its compliance programs
to build greater integrity into the CSP and to
increase public confidence, with an increased
focus on early intervention and debt collection.
In July 2006 the Budget measure, Child Support
Reforms—Improving Compliance began. Its aim
was to collect $339.3 million between July 2006
and June 2010.
From 1 July 2009 the compliance and
enforcement activities associated with this
measure were incorporated into the businessas-usual activities of the CSP. At 30 June 2010
the activities associated with the program were
ahead of the collection target with more than
637 000 customers subject to enforcement
activities and $356.4 million in outstanding
payments collected.
In 2009–10 to minimise debt, CSP established
dedicated proactive intervention teams. Their
job is to work with customers who either miss
their first payment after registration or who,
Department of Human Services Annual Report //
41
Results of compliance and enforcement activity
are set out in Table 3.
while previously compliant, miss a payment.
This early intervention is to help potentially
non-compliant customers get on or stay on
track with their payments and obligations and
thereby prevent growth in debt.
The results and detailed descriptions of child
support compliance and enforcement actions
conducted in 2009–10 are set out in Table 4.
The interception of income tax refunds for debt
collection purposes also resulted in an additional
$103.8 million in outstanding child support
liabilities being collected in 2009–10.
Table 3—Child support compliance and enforcement actions 2007–08 to 2009–10
Child support collected/
corrected ($m)
Number of actions
2007–08
2008–09
2009–10
2007–08
2008–09
2009–10
125 095
126 281
75 398
19.7
30.5
16.3
Tax Refund Intercept Payment
87 819
114 942
100 953
76.0
114.9
103.8
Intensive debt collection
26 385
19 787
23 155
28.4
49.4
47.6
Capacity to pay assessments2
5886
4135
2330
12.5
18.7
19.9
Departure prohibition orders
924
427
183
5.7
5.0
3.4
Litigation
631
559
372
15.3
12.2
9.8
Tax lodgment enforcement1
1 Collected figure only.
2 Before 1 July 2009 capacity to pay assessments were referred to as serious avoiders–income minimisers.
Table 4—Results of child support compliance and enforcement activities, 2009–10
Activity
Description
Results
Enforcement of tax
return lodgment
The Lodgement Enforcement project
involves the department referring
customers to the ATO for investigation
of non-lodgment of tax returns and/or
attempts to avoid obligations by underdeclaring true incomes. From 1 July 2009
the project was integrated into the CSP’s
business as usual activities.
The department referred 75 398
customers to the ATO, resulting in
78 693 tax returns being lodged. This
compares with the referral of 126 281
non-lodgers in 2008–09, which resulted
in 153 044 returns being lodged.
42
// CHAPTER 3: Achievements—Child Support Program
The decrease in returns lodged in
2009–10 resulted from an expected
decrease in opportunities available
following the success of the program
over the previous three years.
Activity
Description
Results
Interception of tax
refunds
An automatic tax refund intercept
payment (TRIP) intercepts a customer’s
tax refund to pay the balance of a child
support debt if other collection avenues
have been unsuccessful.
TRIP activity collected $103.8 million
(compared to $114.9 million in
2008–09).
Intensive debt
collection
The Intensive Debt Collection project
involved intensively managing customers
who have outstanding payments that
have proven difficult to collect. From
1 July 2009 the project was integrated
into CSP’s business-as-usual activities.
Intensive debt collection activity
collected $47.6 million (compared to
$49.4 million in 2008–09).
Investigation
of income
minimisation
The Income Minimiser project investigated
complex financial arrangements possibly
designed to avoid paying the right amount
of child support. From 1 July 2009 the
project was integrated into CSP’s business as
usual capacity to pay assessment activities.
Capacity to pay assessments identified
$10.9 million in increased child
support assessments and collected
$19.9 million (compared to
$18.7 million in 2008–09).
Prohibition of
departure from
Australia
The Departure Prohibition Orders project
targeted customers with substantial
debts who had not made satisfactory
arrangements to clear their debt. These
customers are prevented from leaving
Australia until they make satisfactory
arrangements to pay their debt. From
1 July 2009 the project was integrated
into CSP’s business-as-usual activities.
Departure prohibition orders collected
$3.4 million (compared to $5 million
in 2008–09).
Litigation
The department targets parents who
repeatedly avoid paying their child support
after the department has attempted other
enforcement options. Where an asset or
income stream is identified as belonging
to the parent, the department will take the
parent to court to obtain an order for the
payment of outstanding child support debt.
From 1 July 2009 the project was integrated
into CSP’s business-as-usual activities.
The Litigation project reduced
debt by $9.8 million (compared to
$12.2 million in 2008–09).
Optical surveillance
During 2009–10 the department integrated
the use of optical surveillance into its
enforcement program. Its judicious use in
appropriate cases enables the department
to address serious and complex cases of
avoidance or income minimisation.
The department considered the use
of optical surveillance in 253 cases
and conducted optical surveillance of
28 customers.
Department of Human Services Annual Report //
43
Activity
Description
Results
Early intervention
In August 2009 the department
implemented an early intervention
approach focusing on customers who
have recently defaulted on their payment
or on their payment arrangement. The
aim of this approach is to assist customers
who have missed a payment to get
back on track. Through this approach,
the department seeks to minimise the
growth of child support debt associated
with these customers while reinforcing
compliant behaviour.
Since August 2009 the early
intervention approach has:
• made contact with over 43 000
paying parents to discuss their child
support debt
• negotiated over 29 000 payment
arrangements
• set up employer deductions for
future child support payments for
over 6400 customers
• made arrangements for over 6700
customers to have additional
amounts deducted from their
employer to address their debt
• secured commitments from
customers to pay $14.70 million in
child support debt
• credited over $2.08 million in
payments paid directly by the
paying parent to the receiving
parent.
Specialised
Investigation Unit
During 2009–10 the department
continued to develop an enhanced fraud
investigation capability by focusing the
work of the Specialised Investigation Unit
on detecting and investigating allegations
of fraud on other criminal activities
associated with the Child Support Scheme.
Income reconciliation
A small proportion of customers with child
support assessments provide an estimate of
their income for the current year, rather than
using their actual taxable income from the
previous year. Customers are able to estimate
their income for child support purposes when
there has been a significant variation to their
financial circumstances.
At the end of the child support period CSP
undertakes a reconciliation to ensure that the
estimated income is aligned with the actual
income earned. If additional child support
is incurred because of that reconciliation, a
suitable payment arrangement is negotiated
with the paying parent.
44
The department completed 113
investigations of fraud allegations
and referred seven cases to the
Commonwealth Director of Public
Prosecutions.
The process of reconciliation is complex,
because child support periods go across
15 month periods, not financial years.
Reconciliation of estimated income with actual
income therefore involves manually investigating
information from a number of sources such as
tax returns and group certificates.
The slowness of the process has resulted in
a backlog of outstanding reconciliations. As
part of the 2009–10 Budget the government
provided CSP with additional resources to
complete the outstanding reconciliations
over the next two years. In 2009–10 CSP
reconciled 190 163 estimates, and remains
on track to complete all outstanding estimate
reconciliations by 30 June 2011.
// CHAPTER 3: Achievements—Child Support Program
Customer service
excellence
During 2009–10 the CSP met the diverse
needs of its 1.3 million child support customers
through over 3000 service delivery staff situated
in 14 metropolitan and regional offices, and in
27 regional service centres.
Following the introduction of the new
Child Support Scheme on 1 July 2008—
which saw an unprecedented level of contact
with all child support customers during
2008–09—the CSP has seen an improvement
in customer satisfaction and complaint levels
in 2009–10.
The move to deliver services from national
business lines, simplification of child
support business processes, consistent
strong performance in timeliness of
answering telephone calls and a focus
on the improvement of the quality of
administrative decision making have
contributed to this improvement.
Communication channels
The CSP offers customers a range of service
options including face-to-face, telephone
and online services. The telephone service
is the most popular customer channel and
during 2009–10 CSP received 3.0 million
calls and made 3.2 million outbound calls.
In 2009–10 CSP met its service standard
answering 82.1 per cent of telephone calls within
30 seconds (up significantly from 73 per cent
in 2008–09). The implementation of a national
approach for telephone call management
was a key factor in improvements in customer
satisfaction levels.
Child support website
The CSP website was the largest inbound
channel to the program for customers, averaging
279 712 visits per month in 2009–10, compared
to an average of just over 248 915 calls per
month to the program’s general inquiry phone
number. The average visits per month to the
website for 2008–09 was 257 230.
CSAonline
CSP provides a convenient online service
option—www.csaonline.gov.au—to
customers. Approximately 105 000 customers
and 3400 employers conducted close to
200 000 transactions in 2009–10. On average
1400 customers per month have enrolled for
online services in 2009–10.
Customers can access their information
at a time convenient to them, view and
print most correspondence, send general,
technical and complaint enquiries via secure
method and attach files to their enquiries. CSP
can also initiate contact with customers and
customers can receive responses to their
enquiries electronically. This efficient mode of
customer contact can improve customers’ ability
to meet their child support obligations through
more regular disbursement of payments for
children.
Employers and financial institutions can also
deal with CSP online—500 employers signed
up in 2009–10. CSP can now also exchange
information electronically with financial
institutions and large employers. The average
response times for information requests within
14 days have increased from 50 per cent to
80 per cent, reducing the burden of compliance
on these organisations.
Customer satisfaction
Customer satisfaction is measured through
the CSP’s telephone point-of-service customer
survey Customers Having a Say (CHAS).
CHAS is designed to measure customer
satisfaction against CSP’s customer service
principles which then contribute to an overall
satisfaction rating for CSP and an overall
satisfaction rating for service provided by the
customer service officer.
Department of Human Services Annual Report //
45
The level of customers who were neither
satisfied nor dissatisfied ended the year
at 6.3 per cent.
During 2009–10 CSP customer
satisfaction results tracked consistently
above the target of 70 per cent every month
peaking at the end of June at 74.9 per cent.
Customer dissatisfaction with the overall
service provided by CSP decreased in the
second half of the year and at June 2010
was 18.8 per cent.
Customer service officers performed consistently
well throughout the financial year. Customer
satisfaction with the service provided by
customer service officers was rated at
84 per cent at June 2010—see Figure 9.
Figure 8—Satisfaction with service provided by CSP overall
Percentage of customers catisfied
100
90
80
70
60
50
40
30
20
10
0
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Apr-10
May-10
Jun-10
2009–10
Figure 9—Satisfaction with service provided by customer service officers
Percentage of customers satisfied
100
90
80
70
60
50
40
30
20
10
0
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
2009–10
46
// CHAPTER 3: Achievements—Child Support Program
Feb-10
Mar-10
Complaints
In 2009–10 the number of escalated complaints
received was significantly less than 2008–09
levels. The key strategies employed to achieve
this reduction were:
• earlier involvement of front-line supervisors in
the management of complaints
• the expansion of access to call recordings
for team leaders from February 2010 for
managing complaints when they are first
raised with CSP—this led to earlier and more
accurate complaint resolution and resulted in
fewer escalations to CSP’s complaint service
• effective complaints management training
provided to staff in April–May 2010.
There has also been an ongoing process
of communication with staff via a number
of channels, to increase understanding of
the impact of complaints and to reinforce
the need for complaints to be effectively
managed and resolved. A particular focus has
been on reducing complaints relating to staff
behaviour and this has seen a reduction in these
complaints of just fewer than 50 per cent over
the course of 2009–10.
Objections
CSP has a requirement to finalise all objections
received within 60 days for domestic customers
and 120 days for international customers. For
2009–10 CSP achieved 93.8 per cent in 60 days
for domestic customers and 99.5 per cent
in 120 days for international customers.
This was an improvement on 2008–09 when
CSP achieved 82.1 per cent in 60 days for
domestic customers and 97.8 per cent in 120
days for international customers.
The total number of objections finalised for
2009–10 was 17 688 compared to 19 287 in
2008–09 and 16 671 in 2007–08. Objections
to change of assessment decisions also reduced
from 5311 in 2008–09 to 4601 in 2009–10.
Social Security Appeals Tribunal
Since January 2007 CSP customers have been
able to seek independent review of child
support decisions in the Social Security Appeals
Tribunal (SSAT). Before this, court was the
primary review option available for customers
who disagreed with an objection decision. In
2009–10 there were 2592 appeals compared to
2895 in 2008–09.
Table 5—Service delivery indicators 2007–08 to
2009–10
2007–08
2008–09
2009–10
Change of
assessment
applications
finalised
21 344
22 496
23 313
Objections
finalised
16 671
19 287
17 688
Complaints
10 347
12 874
9553
SSAT
applications
2174
2895
2592
Key contributors to this performance were
improved national workload management
practices across objections teams along with
an increased focus on quality and training
for staff.
Department of Human Services Annual Report //
47
Figure 10—CSP service delivery indicators 2007–08 to 2009–10
25 000
20 000
15 000
10 000
5000
2007–08
2008–09
2009–10
0
Change of assessment
applications
Objections finalised
Customer service improvements
Simplifying change of assessment
for customers
CSP has redesigned the change of assessment
administrative process to improve customer
satisfaction through a more efficient and
effective service offer.
In 2009–10 CSP began a trial of the redesigned
process which features earlier and more
frequent customer contact with significantly
shorter timeframes for finalising change of
assessment applications and issuing written
decisions. Early results look promising, with
approximately 67 per cent of applications being
finalised within 35 days and 88 per cent within
50 days. Subject to a favourable evaluation of
the trial and detailed costings, CSP hopes to
introduce the new process during 2010–11.
CSP is also revising the customer application and
response forms based on customer, stakeholder
and staff feedback which has shown that forms
need to be shorter and simpler. CSP has tested
the revised forms with customers and expects to
introduce them later in 2010.
48
Complaints
SSAT applications
CSP is also developing quality assurance
measures for the change of assessment process
including internal peer review of decisions,
sample checking/quality assurance of decisions,
revising and establishing improved standards
for written decisions and investing in improved
training and training materials.
Helping new child support
customers in new ways
In March 2010 CSP began a trial of a
new registration process for newly separated
parents and new staff support tools to guide this
process. The process aims to provide customers
with a relevant, individually-tailored upfront
service with information, available services
and appropriate referrals which results in a
sustainable child support payment arrangement.
The trial used a parent referral guide which
provides a consistent approach for all staff in
guiding the customers through what is often
their first contact with CSP and a very difficult
time. The guide prompts staff to provide
broader service options including internet-based
applications and use of online publications and
self-help tools by new customers.
// CHAPTER 3: Achievements—Child Support Program
Over half (54 per cent) of customers using the
new registration process have taken up the
online support and tools. This form of service
delivery allows customers the time and flexibility
to inform themselves, explore their options and
complete an application for child support at
their convenience.
More than 78 per cent of customers chose
private collection at registration, with
18 per cent choosing to pay child support
via employer deductions. An evaluation of
the trial is planned for early 2010–11.
Child protection
Improved information sharing is a key
action under the National Framework for
Protecting Australia’s Children 2009–2020,
which was endorsed by the Council of
Australian Governments in April 2009. The
Information Sharing Protocol between the
Commonwealth and Child Protection Agencies
is an initiative of the framework. CSP appendix
to the protocol was agreed at the Community
and Disability Services Ministers’ Advisory
Council meeting held on 2–3 March 2010.
Child protection agencies can request
information from CSP if the agency has
concerns about the safety of a child of a
separated parent, for example, when trying to
locate a parent because of fears for the safety
of children in that parent’s care.
The Child Support Agency is the third agency
to be included in the protocol, following the
lead of Centrelink and Medicare Australia
last year.
Quality assurance framework
In 2009–10 and in response to the
Delivering Quality Outcomes Review, CSP began
work on a new quality assurance framework
to further enhance the quality of service
provided to customers. The framework will
focus on providing support to front-line
staff through proactive quality assurance on
decision making and reactive support through
the development of a clear issues escalation
and resolution process. Work began in 2009–10
for implementation in 2010–11.
A new function within CSP was established—
Quality Analysis—to implement the framework
and to work with CSP business areas and
staff to gather and analyse data and feedback
to identify potential systemic issues or
opportunities for improvement. These areas
will then implement a prioritised work plan to
address identified systemic issues and viable
business improvement opportunities.
The protocol has led to improvements in
the way CSP shares information with child
protection agencies. CSP has developed a
system where requests can be submitted by
agencies through a secure online messaging
system (CSAonline), and are responded to via
the same channel. The new process ensures
requests for information are processed and
responded to quickly to meet the requirements
of agencies.
Department of Human Services Annual Report //
49
Table 6—Child support service connections, 2009–10
Service
Purpose
Achievements
Parent Support
Telephone Service
To provide a professional
and confidential telephone
counselling service for
customers who are at risk of
harm to themselves or others
or in emotional distress.
CSP referred 570 customers to the service (up
from 408 in 2008–09). CSP has worked closely
with the provider (Parentline ACT) to build their
capacity in the areas of family violence and self
harm. Increased staff confidence in the service
has resulted in more child support customers
being referred to the service and thereby
connecting to further services to meet their
broader family support needs.
Family Relationship
Advice Line (FRAL)
To assess and refer parents to
the support they need to help
them to deal with separation.
. 2745 parents to FRAL in 2009–10.
CSP referred
CSP is currently implementing strategies to
increase the referral rate to FRAL via staff and
customer education.
Centrelink referrals
To deliver government
payments and services to
Australians.
CSP referred 123 173 parents to Centrelink
in 2009–10 (up from 112 331 in 2008–09) to
connect them to information on Family Tax
Benefits and in some cases to seek exemptions
from collecting child support where family
violence was an issue.
Other local
government/
non-government
and community
organisation referrals
To build relationships with key
local stakeholders to provide
information and services to
separated and separating
families.
Connecting Locally plans were developed
and implemented to build relationships with
community stakeholders across the country.
Financial counselling
services
To work with financial
counsellors through their
peak body Australian Financial
Counselling and Credit
Reform Association (AFCCRA)
to better connect parents
with financial counselling and
literacy services.
CSP has worked with AFCCRA to create
single points of contact in each state to better
connect parents with financial counselling and
literacy support. CSP has created a hotline
for financial counsellors to call when they are
working with a child support customer. Since
its inception in December 2009, 173 calls have
been dealt with through the hotline.
Effective stakeholder
engagement
Stakeholder engagement
CSP takes a collaborative approach to working
with key stakeholders in supporting separated
families. CSP engages with stakeholders
such as advocacy groups, legal organisations,
employers, academics, government, community
and private industry through a number of
50
forums to ensure that issues are identified early
and stakeholder input is considered for product
and service design.
Key stakeholder engagement initiatives during
2009–10 included a number of consultation
forums for the co-design of new child support
services and products. Stakeholders provided
input into projects such as the change of
assessment and new customers, process reviews
and the development of a support tool for
young children.
// CHAPTER 3: Achievements—Child Support Program
The national and state stakeholder engagement
groups continued to meet quarterly with
representatives from advocacy groups, the legal
sector, community services, academia and other
government agencies. They discussed child
support related matters such as compliance,
administrative decision making, social inclusion
and debt reduction strategies.
Members were provided with information
about changes to CSP and child support
policy to cascade to their constituents. Key
recommendations from meetings were submitted
to the Minister for Human Services and the
Minister for Families, Housing, Community
Services and Indigenous Affairs for consideration.
These stakeholder groups also provided input
into the Delivering Quality Outcomes Review.
Stakeholder engagement training was delivered
to staff across the country to help them
prepare and implement effective stakeholder
engagement activities that benefit all parties
involved. External stakeholders were invited
to present to training sessions to provide their
perspective on what CSP could do to better
engage with their organisations.
CSP also kept key stakeholders updated with
child support related matters through monthly
email bulletins and mailouts.
CSP monitors levels of stakeholder satisfaction
through an annual survey. The 2009–10 survey
indicated that 68.5 per cent of respondents
believed that CSP was doing a ‘good to very
good’ job at engaging stakeholders (down from
81 per cent in 2008–09), and 78.2 per cent
believed that their engagement with CSP
assisted their organisation to support separated
and separating families (slightly down from
81 per cent in 2008–09).
Key areas for improvement highlighted in the
survey results concerned acting on feedback
and addressing issues raised by stakeholders
(remaining fairly steady at 49.1 per cent) and
providing information that is easy to understand
(down from 73 per cent in 2008–09 to
52.7 per cent in 2009–10).
CSP stakeholder engagement efforts will
continue to be reviewed and improved
to ensure that engagement activities are
beneficial to key stakeholders and child support
customers. CSP will also be proactively taking
a co-design approach when designing new
services and products so that stakeholders’
expertise can contribute to better service
delivery to separated families.
Community partnerships
CSP maintains a number of partnerships with
community and private organisations to tackle
shared priorities and take collective action that
will have a positive effect on mutual customers.
In 2009–10 CSP worked closely with existing
partner’s, beyondblue: the national depression
initiative and BoysTown (Kids Helpline) and
established a new partnership with the
Brotherhood of St Laurence. These partnerships
assist CSP to let customers know about
support services and products that improve
service delivery—to provide better outcomes
for separating and separated families and
contribute to increased compliance.
Key partnership outcomes in 2009–10 include:
• joint media opportunities promoting key
support services and products
• expert input by partners to new CSP
products, for example It’s not about the
money—It’s about the kids: developed by
CSP with valued input from BoysTown
• CSP input into product development
by partners, for example Women and
Separation: a national depression initiative
by beyondblue
• information for customers about support
services and products via CSP newsletters
or direct mail, for example promotion of
the Saver Plus financial literacy program
administered by the Brotherhood of
St Laurence.
Department of Human Services Annual Report //
51
Communicating with customers
and community
The department’s child support public education
and communication activities help ensure
that customers understand their child support
responsibilities and the services and support
available to assist them. The department also
strives to ensure that customers are aware of
enforcement programs and the consequences
of non-compliance to encourage them to meet
their responsibilities in full and on time and to
boost confidence in the scheme.
Communication and education
To support service delivery reforms, the
communication functions across the Human
Services portfolio were integrated on
1 March 2010.
A high priority is placed on effective
communication with customers, potential
customers, providers, and the Australian
community. Effective communication provides
Australians with the information they need to
make informed choices about Human Services
payments and services, and to understand their
rights and obligations when they receive these.
In 2009–10, CSP continued to provide
customers and the community with information
about its payments and services through a
range of accessible channels, including media,
print, advertising and, increasingly, online.
See page 32 for further information about CSP
communication and education activities.
Excellence in service delivery
capability
Delivering Quality Outcomes Review
In September 2009 the Secretary of the
Department of Human Services commissioned
an independent review of CSP. The purpose
was to look at the effectiveness and efficiency
of decision making and quality assurance
52
processes, and to obtain assurance that they
were appropriate and represented better
practice in the Australian Government context.
Conducted by David Richmond, AO between
7 September and 30 November 2009 the review:
• reviewed over 5000 documents and reports
pertaining to the structure, operations and
performance of CSP
• sent surveys to over 50 stakeholder groups, of
which 26 were subsequently interviewed
• met with over 430 CSP front-line staff
• received 133 written submissions from
customers, non-government organisations,
stakeholder groups and staff.
The report made 40 priority recommendations
and 75 supporting recommendations about:
• organisational strategy, structure and
governance
• customer service improvements
• collection and debt management strategies
• technology and business support tools
• international services
• stakeholder and government relations
• policy feedback and research.
All 115 recommendations were accepted by
CSP and the department, and a work program
was established to implement them.
As a result of the review's recommendations,
since January 2010 CSP has­­:
• implemented a new organisational structure
and governance arrangements
• implemented a new service delivery model,
including national business lines delivering
more consistent, streamlined services to
customers
• designed and implemented a new customer
summary screen within CSP’s mainframe
customer database to make it easier for staff
to help customers
• activated a customer research mailbox to
capture customer feedback on child support
policy.
// CHAPTER 3: Achievements—Child Support Program
CSP has also begun to implement improvements
for front-line customer service staff. These
include:
• the introduction of team-based customer
service rostering
• the introduction of a new streamlined inquiry
window in the customer database
• the alignment of the customer database
and workflows with the new organisational
structure
• the resolution of a backlog of customer
record errors.
In addition CSP has commenced work on key
infrastructure elements including:
• the redevelopment of its staff training and
development strategy
• a review of its compliance strategy to
incorporate a back to basics approach
• the development of a clearly articulated
quality framework
• a review and realignment of the
organisation’s business, channel and ICT
strategies with core business requirements
and the service delivery reform agenda.
Detailed implementation plans have
been finalised to implement all remaining
recommendations, with the majority expected
to be implemented by June 2011.
Specific deliverables have been aligned with
the broader service delivery reform agenda,
and will result in significant improvements to
the quality and consistency of CSP services to
customers.
Department of Human Services Annual Report //
53
Achievements—CRS Australia
Delivery of vocational rehabilitation services to eligible people
who have a disability, injury or health condition.
Chapter 4
CRS Australia and
Woolworths team up
Debbie Huxley, Store Manager, itory
Woolworths, Katherine, Northern Terr
‘I’m very lucky because I’ve got
five great new staff. You see their
faces and it’s obvious how happy
they are.’
Debbie Huxley, Woolworths' Katherine store
manager, can’t say enough about the training
program that gave her five highly motivated
staff, with the potential for more.
Woolworths Katherine is located 350
kilometres inland from Darwin and currently
employs 165 people.
The store is always looking for committed
employees, and asked CRS Australia to help
them find the right staff. CRS Australia had a
number of Indigenous job seekers looking to
work in the retail industry, but they needed
some training to reach their goal.
Together, Woolworths Katherine, CRS Australia
and local training company Starfish Services,
developed and implemented a tailored retail
56
// CHAPTER 4: Achievements—CRS Australia
training program adapted to Indigenous job
seekers, some with disabilities.
The program included job seekers undertaking
culturally appropriate pre-employment
training, a Woolworths’ Certificate II in Retail
Operations, followed by two weeks of on-thejob training.
The program was a great success.
Woolworths Katherine employed five of the
graduates (three Indigenous and two nonIndigenous people) who have a range of
medical conditions.
‘They’re excited to be here so we’ve already
won that battle,’ said Debbie.
Woolworths Training Specialist, James Childs,
says: ‘It’s been a very beneficial program. We
have five new employees who are bringing
a sense of pride to the business. I know that
Debbie and the management team are looking
forward to the next program’.
Through CRS Australia, the department delivers under Outcome 1 (2009–10 Human Services
Portfolio Budget Statements) by delivering expert assessment, injury management and employment
services to assist people who have a disability or injury to get and keep a job. All services and
funding provided by CRS Australia are demand driven. The following sections detail CRS Australia’s
performance in delivering under Outcome 1 in 2009–10.
Performance highlights—CRS Australia
• Assisted over 57 000 job seekers in 2009–10, slightly less than 2008–09.
• More than 11 800 Department of Education, Employment and Workplace Relations (DEEWR) funded
job seekers were assisted into work, up from 10 500 in 2008–09.
• CRS Australia maintained over 35 per cent of its service delivery offices in rural and remote
Australia.
• 17 offices were relocated to improve access and services for job seekers and provide
operational efficiencies.
• Revenues from injury prevention and return to work programs continued to grow.
• CRS Australia was accredited as an approved provider of workplace rehabilitation services
under the Heads of Workers Compensation nationally consistent framework for workplace
rehabilitation providers. • CRS Australia implemented a successful SAP version upgrade to ECC6.
• The employee opinion survey conducted in 2010 indicated that employee engagement has
improved significantly from 2008 with key improvements achieved in almost all areas.
Main results
Table 7—Performance highlights—CRS Australia
Key performance indicators
Targets
Performance
Certification against Disability Service Standards
CRS Australia remains certified
Fully certified
At or above the market average for job seekers that
remain in employment for 13 weeks
70%
70%
Analysis/trends
In the Australian Government’s disability
employment program, all funded service
providers must be certified as compliant with the
Commonwealth Disability Services Standards (DSS).
CRS Australia successfully completed its annual
DSS surveillance audit in November 2009.
No non-conformities were found. For a list of
the 12 standards covered in this audit see Other
audits, page 78.
CRS Australia achieved a conversion rate
from job placement to 13-week employment
outcome of 70 per cent, slightly above market
average. This demonstrates its commitment to
quality vocational rehabilitation, appropriate job
placement and effective post-placement support
for job seekers and their employers.
Department of Human Services Annual Report //
57
Services provided to
other agencies and
organisations
CRS Australia provided an important range of
expert services to all Australian, state, territory
and local government jurisdictions and other
private organisations. Major services included:
• Vocational Rehabilitation Service (VRS) and
Disability Employment Service (DES) for
DEEWR
• Job Capacity Assessments (JCA) and Job
Capacity Account Services (JCAc) for DEEWR
• wage assessments at Australian Disability
Enterprises for the Department of Families,
Housing, Community Services and Indigenous
Affairs (FaHCSIA)
• rehabilitation services for serving members of
the Australian Defence Force
• rehabilitation services for personnel and
veterans covered by Department of Veterans’
Affairs schemes
• workplace rehabilitation services for employees
under state, territory and Commonwealth
workers compensation jurisdictions
• injury prevention and occupational health and
safety interventions and training for a range
of public and private sector organisations.
Maximise workforce participation
In 2009–10 DEEWR was the principal
purchaser of CRS Australia’s services.
CRS Australia received approximately
80 per cent of its revenue through a
memorandum of understanding (MoU) with
DEEWR, for the provision of VRS and DES. On
1 March 2010 CRS Australia transitioned to the
new DEEWR DES program. Achievements under
these programs are reported in the DEEWR
annual report.
Through government-funded VRS and DES
programs, CRS Australia assisted over
57 000 job seekers in 2009–10, including more
than 26 000 new job seekers and almost
31 000 who were on programs at the start
of the financial year. This compares to nearly
59 000 in 2008–09. Job seeker numbers can
vary depending on referral volume and market
demand, thus the difference in the numbers
assisted from year to year.
Figure 11—CRS Australia commencements by
disability type, 2009–10
0.3%
1.2%
2.0%
Program key result areas
CRS Australia’s Strategic Plan Forward to 2012
was released to staff and key stakeholders
in December 2009. The plan identifies the
opportunities, challenges, risks and key result
areas for CRS Australia. It is supported by annual
business plans across national, state and territory
functions and ensures CRS Australia delivers on
its four key result areas, as outlined below in this
chapter.
The Strategic Plan Forward to 2012 can
be accessed through the publications
section of the CRS Australia website at
www.crsaustralia.gov.au.
29.5%
65.3%
1.2% ACQUIRED BRAIN INJURY
0.8% INTELLECTUAL/ LEARNING
29.5% MENTAL ILLNESS
0.9% NEUROLOGICAL
65.3% PHYSICAL
2% SENSORY
0.3% OTHER
58
// CHAPTER 4: Achievements—CRS Australia
0.8%
0.9%
To maximise employment outcomes, programs
were intensive and individualised, focusing on
the abilities and vocational goals of job seekers,
while considering the local labour market.
CRS Australia programs improve social inclusion
by increasing a person's independence and
capability to participate in work and their
community.
All job seekers assisted in 2009–10 had
a disability, injury or health condition.
An estimated 29 per cent of job seekers
had a mental health condition as the
primary barrier to entering the workforce.
In 2009–10 more than 11 800 job seekers were
successfully placed in employment, an increase
of 1300 additional job seekers placed in work
compared to 2008–09.
CRS Australia intensified its focus on learning
and development to build staff skills and
increase its ability to work with job seekers
to achieve sustainable job outcomes. It also
continued to enhance employer relationships
and partnerships. National arrangements were
established for training and/or employment
placement with employers and training
providers, including RossJuliaRoss, Telstra
and the Australian Retailers Association.
These relationships helped strengthen the
link between job match and local labour
market needs.
During 2009–10 CRS Australia provided JCA
and JCAc services for DEEWR. The JCA is an
assessment of the job seeker’s work capacity
and direct referral to the most appropriate
intervention that will assist them towards work.
CRS Australia’s internal quality assurance system
ensured the quality of the assessments provided
met DEEWR requirements and identified areas
for continuous improvement. In 2009–10 over
42 200 JCA assessments were completed,
compared with over 40 300 in 2008–09.
The JCAc provides funding for short-term
interventions to help eligible job seekers
become ready to look for work. CRS Australia
offered individual or group services in a cross
section of approved categories for JCAc
services, including:
• pain management
• work conditioning
• other physical support programs
• social case work and support
• counselling programs
• other social support programs
• cognitive behaviour therapy
• behaviour management and modification
• other psychosocial support programs.
Over 2000 JCAc interventions were completed
in 2009–10. CRS Australia actively promoted its
JCAc services, refining and developing them to
suit local requirements.
CRS Australia also maximised workforce
participation outcomes for employers, job
seekers and the community by providing
services to other Australian Government and
state and territory agencies, occupational health
and safety authorities, insurance companies and
private businesses.
Build leadership, capability and
safe workplaces
An employee opinion survey conducted in
2010 by CRS Australia achieved a 69 per cent
response rate. Despite tough external factors,
survey results made excellent progress since
2008 with almost all categories improving by
a moderate to significant degree. Employee
engagement has improved significantly from
2008 with key improvements achieved in
almost all areas including organisational
change, leadership, communication, goals
and objectives, job satisfaction and employee
development. Managers worked with local
teams to discuss results and strategies for
actioning and improving identified areas.
During 2009–10 CRS Australia continued to
strengthen leadership capability, and succession
and workforce planning. Leadership and
succession capability was strengthened with
the formalisation of regional leadership teams.
The change in structure has given regional
Department of Human Services Annual Report //
59
managers more flexibility to engage and build
local relationships within their communities,
maximising outcomes for job seekers.
Significant investment in learning and
development ensured CRS Australia built
organisational capability and assisted
CRS Australia to successfully transition to the
new DES program, meet purchaser needs, and
continue to implement the necessary changes
to business practices.
Two vocational rehabilitation professionals
were sponsored to participate in a one-year
correspondence post graduate course through
Boston University, in Massachusetts, United
States to enhance their skills and knowledge
in psychiatric vocational rehabilitation. After
completing the course the participants will
engage in knowledge sharing across the
organisation through formal mentoring,
training and developing best practice guidelines.
CRS Australia adjusted its service delivery
footprint in 2009–10 in response to changing
demand in communities, furthering its aim
of enabling people to access vocational
rehabilitation and other services close to
where they live.
A total of 17 offices were relocated within
the communities they serve to improve access
and service quality for job seekers and the
working environment for staff, including the
consolidation of some offices into new larger
sites in Brisbane’s western and eastern suburbs.
CRS Australia received positive local newspaper
media coverage of most office openings,
promoting the new improved facilities for job
seekers and the opportunities for employers
to access a pool of job ready applicants.
To ensure management best practice in
providing safe workplaces, CRS Australia used
early intervention injury prevention measures
such as referrals for short-term counselling,
physiotherapy and independent medical
assessments to help staff remain at or return
to work. CRS Australia practices were found
to be consistent with Comcare’s guide for
60
// CHAPTER 4: Achievements—CRS Australia
employers, Prevention and management
of customer aggression.
As part of CRS Australia’s risk management
and corporate governance arrangements, an
in-depth review of compliance with legislative
frameworks was begun. The review is scheduled
to be completed in 2010–11.
CRS Australia promotes and celebrates team and
individual excellence. Eighteen staff and five teams
received national awards, including the Minister
for Human Services Awards for Exemplary Service
to Customers and Stakeholders, the Australia Day
Medallion for Achievement and the CRS Australia
General Manager Awards. These awards recognise
outstanding performance that is clearly above and
beyond what is normally expected of a team or
individual.
For more information on CRS Australia’s
performance against building leadership,
capability and safe workplaces see page 90 and
Appendix A—Occupational Health and Safety,
pages 178–180.
Deliver effective, competitive and
innovative services
Significant activity was undertaken in
2009–10 to continue to improve and refine
the effectiveness in achieving employment
outcomes for job seekers. Of particular
note were activities surrounding employer
engagement, improving business processes,
quality assurance, and evaluation and feedback.
During 2009–10 CRS Australia began a project
to further streamline business processes and
improve efficiencies for direct service delivery.
This resulted in the removal, or streamlining,
of some work practices and greater consistency
in processes used in offices across the country.
National support teams focused on identifying
the characteristics of high performing teams
and developing methods for sharing this
experience across the organisation. Targeted
support was provided to teams to refine
business and service delivery processes to
improve outcomes for job seekers.
The CRS Australia intranet continued to
have the principles of simplicity and usability
applied when updating and developing new
information, and successfully reducing forms
in both size and quantity.
Quality
CRS Australia’s quality framework QUEST
for quality continues to evolve to ensure
compliance with the Disability Services
Standards and key DEEWR requirements
through team self assessment and external
audit. Team self assessment tools have been
updated to ensure they reflect the new DEEWR
contract requirements.
The QUEST for JCA quality program was
rolled out in July 2009. It is an internal quality
assurance process that ensures JCA assessments
meet DEEWR requirements. It identifies areas
in need of improvement or staff development.
QUEST for JCA mirrors the DEEWR external
quality audit system.
CRS Australia also began implementing
a quality framework for workplace
rehabilitation services provided to the workers
compensation market. This framework ensures
CRS Australia is well placed to comply with
the new Heads of Workers Compensation
Authority’s Approval Framework for
Workplace Rehabilitation Providers which
came into effect on 1 July 2010.
Customer satisfaction
CRS Australia routinely requests informal
and formal feedback from job seekers and
employers for all its services. In 2009–10,
89 per cent of job seekers were satisfied that
their program met their needs.
Compliment and complaint feedback is used
to evaluate and improve services and inform
business planning. All staff are responsible for
integrating job seeker and stakeholder feedback
into improving service delivery practice or
business processes.
Findings from external research and surveys into
satisfaction levels of key stakeholders conducted
in 2008–09 were used to inform business
planning and design to ensure that CRS Australia
continued to improve the services it offers.
A post-implementation review of key internal
communications vehicles (Manager News,
GM e-bulletin, SD e-bulletin, executive video
messages) was undertaken and results indicate
that the vehicles generally are delivering relevant
and meaningful messages. These results were
reflected in positive feedback from staff about
leadership and communication via the employee
opinion survey.
Competitive services
CRS Australia continued to perform well relative
to the market and overall job placement rates
for job seekers continued to improve as a result
of innovative improvement strategies designed
to increase effectiveness.
Focus placed on appropriate rehabilitation
processes, correct job matching, ongoing post
placement support and employer engagement
has enabled CRS Australia to perform slightly
ahead of the market average in achieving
13-week to 26-week employment outcome
conversion rates.
In addition to DEEWR revenue, CRS Australia
continued to build revenues from occupational
rehabilitation, specialist assessments, injury
prevention and related services that are
complementary to its core capabilities. These
other revenue categories gradually increased
as a percentage of total revenue, from
19.4 per cent in 2007–08 to 19.7 per cent in
2008–09 and 21.4 per cent in 2009–10.
CRS Australia has attracted new business from
Australian Government agencies, including
FaHCSIA, Centrelink, Medicare Australia, the
Department of Defence, the Department of the
Environment, Water, Heritage and the Arts and
The Treasury. CRS Australia has further increased
WorkCover revenues, particularly in NSW and SA.
Department of Human Services Annual Report //
61
CRS Australia’s key account management
function actively reviews performance against
key indicators, seeks feedback from purchasers
and takes action to improve service delivery
standards. The requirements of each contract
were clearly articulated to staff and appropriate
training was provided.
CRS Australia has established a centralised wage
verification service to enable service delivery
staff to verify the wages and conditions of all
job placements. This service has enabled a high
compliance with Disability Services Standard 9
and has achieved significant time savings for
service delivery staff.
In 2009–10 CRS Australia was re-accredited for
three years in its home jurisdiction of Comcare,
as an approved provider of rehabilitation
services under the Heads of Workers
Compensation nationally consistent framework
for workplace rehabilitation providers.
Step Two Designs, an independent company
specialising in intranets and content
management, announced CRS Australia as the
Overall Platinum Award winner at the 2009
Intranet Innovation Awards held in Sydney in
November 2009. CRS Australia won the award
for its intranet workflow inbox, CRSNet white
pages and the manager dashboard.
A comprehensive communications and
marketing strategy, to inform job capacity
assessor referrals and direct registration sources
on CRS Australia’s services and promote job
capacity account and specialist assessment
services, was developed.
Innovation
In May 2010 CRS Australia joined other
Human Services portfolio agencies and
local community stakeholders in the initial
roll out of the Local Connections to Work
initiatives in Frankston (Victoria), Campsie
(New South Wales), Ipswich (Queensland)
and Elizabeth (South Australia). Under this
initiative CRS Australia will work with a range
of government and community organisations
to provide improved links between services for
disadvantaged job seekers.
A centralised National Referral Management
Team (NRMT) for job capacity account services
was established and rolled out to WA, Victoria,
Tasmania, NSW and the ACT. The team provides
a single contact point for the management of all
referrals for job capacity account and specialist
assessment services and audits all relevant
reports for stakeholder quality control.
This service will be extended to Qld and
NT later in 2010.
62
// CHAPTER 4: Achievements—CRS Australia
CRS Australia continued to explore new
technologies and systems to better enable
services. Major ICT projects for 2009–10
included:
• SAP version upgrade from ECC5 to ECC6
• an employer database to improve relationship
management and job seeker employment
outcomes
• SAP workflow changes for new financial
delegations
• staff skills and competency database
• an organisation-wide telephony message-onhold system to provide consistent national
messages that educate and inform callers
about CRS Australia’s services and activities
• a major review of telephony inventory and
call usage
• refresh and replacement of Konica
multi-function devices where required
• an activity snapshot application to record staff
activity for business analysis purposes
• automated online flex sheet reconciliation
with SAP HR leave data
• a new online application to record and enable
easy compilation and review of performance
achievement system ratings
• development of an online recruitment
management system which should be fully
implemented by 2010–11.
Influence the disability employment
and social inclusion agenda
as well as improving the services and benefits
to its stakeholders.
CRS Australia continued to strengthen and
develop strategic networks to better influence
broader policy to improve outcomes for people
with a disability. CRS Australia participated
in and made presentations at the following
forums:
• National Employment Services Association Ltd
(NESA) National Managers Conference
in August 2009
• National Comcare Conference in September
2009
• Indo Australasian Psychiatry Association
Conference in December 2009
• Working Communities International Congress
in March 2010
• Australian Rehabilitation Providers Association
National Conference in May 2010
• NESA Practitioners Conference in June 2010.
Collaboration with the Brotherhood of
St Laurence and the University of Melbourne on
the Employment, Retention and Advancement
project continued. A review of qualitative data
provided by the researchers is underway to
identify opportunities for further research and
analysis in areas such as understanding the
needs of mature age workers and youth,
as well as the value of post-placement support
to job seekers once they start employment.
During 2009–10 CRS Australia promoted
outstanding and effective practice through
its nomination of eight employers for the
2009 Diversity@Work Awards. Employer Scan
Conversion Services won in the category of
Employment and Inclusion of People with
Disability for their efforts in training and
employing people with a disability. This
prestigious national awards program seeks to
build social and workplace inclusion.
In addition CRS Australia Employer Award
functions were held to recognise the efforts
of local employers in training and employing
people with a disability, injury or health
condition. Employers were also recognised
for their commitment to workplace health
and safety. Thirty-six awards were presented
at ceremonies throughout the year and local
newspaper coverage highlighted the efforts of
many of the awarded employers.
CRS Australia recognises and participates in
collaborative research and programs across
health, employment and training sectors.
This research expands on its professional body
of knowledge and the capabilities of its teams
CRS Australia staff contributed to a scientific
paper based on a one year mental health
collaborative, The Transition Mental Health
and Family Collaborative. The paper won the
Weary Dunlop Award 2009 presented at the
Military Medicine Association Annual Scientific
Conference. As part of the collaborative, staff
gained skills that enhanced service provision for
members of the Australian Defence Force.
Purchaser–provider
arrangements
In 2009–10 CRS Australia had significant
and effective purchaser–provider arrangements
in place with the following Australian
Government department and agencies:
• Department of Education, Employment and
Workplace Relations
• Department of Families, Housing, Community
Services and Indigenous Affairs
• Department of Defence
• Department of Veterans’ Affairs
• Department of Immigration and Citizenship
• Centrelink.
Each purchaser requires CRS Australia to
measure and report on performance to satisfy
certain indicators. Performance against each
contract was actively managed to ensure
delivery of purchased services and CRS Australia
has been proactive in responding to purchaser
requirements, as evidenced by the renewal of
key contracts with a range of purchasers.
Department of Human Services Annual Report //
63
Management and accountability
Chapter 5
Department of Human
Services—Governance
Throughout 2009–10 the department worked
to achieve continuous improvement in the areas
of planning and governance. This reflects the
changes to the department and the broader
portfolio after the service delivery reform
announcement by the Minister for Human
Services in December 2009. It also reflects the
objective to integrate better practice approaches
to support the delivery of quality outcomes,
manage risks, and use resources responsibly and
with accountability.
In November 2009 a new governance
committee framework was introduced, resulting
from a review of the flexibility and transparency
of decision making in the department. The
resulting governance committee framework
consists of a Management Board supported by
five corporate and two operational committees.
In February–March 2010 new portfolio
governance arrangements were also established
to steer the development and implementation
of service delivery reform, including the
integration of enabling services across the
portfolio. The aim of the new structure was to
streamline portfolio governance while meeting
the legislative obligations of agency heads and
their agencies.
Figure 12 shows the Human Services portfolio
governance committee structure at
30 June 2010.
Figure 12—Human Services portfolio governance committee structure at 30 June 2010
Secretary and Chief Executive Officers’ Committee
Service Delivery
Reform Board
Portfolio
Customer
Committee
Portfolio
Finance
Committee
ICT Infrastructure
Integration
Program Steering
Committee
Portfolio
Investment
Sub-committee
Secretary, DHS, CEO, Centrelink, CEO, Medicare Australia
Provides assurance to the Secretary and CEOs’ Committee on the
direction and execution of service delivery reform across the portfolio
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// CHAPTER 5: Management and accountability
ICT Governance
Committee
ICT Investment
Sub-committee
Portfolio People
and Leadership
Committee
Human Services portfolio
governance committees
In October 2009 the Secretary and Chief
Executive Officers’ Committee was introduced,
replacing the agency heads’ meeting. In line
with the service delivery reform agenda, five
other portfolio committees were formed in
March 2010 and met regularly. The portfolio
committees are:
• ICT Infrastructure Integration Program
Steering Committee
• ICT Governance Committee
• Portfolio Finance Committee
• Portfolio Customer Committee
• Portfolio People and Leadership Committee.
To guide work on service delivery reform across
the portfolio, the Service Delivery Reform (SDR)
Board was formed. The board is made up of the
Secretary, the CEOs of Centrelink and Medicare
Australia, and all of the Deputy Secretaries and
Deputy CEOs from the Department of Human
Services, Medicare Australia and Centrelink.
The work of the SDR Board and each of the five
portfolio committees sitting under the Secretary
and CEOs' Committee is outlined below.
The portfolio governance committees provide
assurance to the Secretary of the Department of
Human Services and the CEOs of Centrelink and
Medicare Australia in the following areas:
ICT Infrastructure Integration Program
Steering Committee—oversees the progress
of the DHS ICT infrastructure integration so that
it meets its stated outcomes and returns value
to government.
ICT Governance Committee—provides
assurance that government expectations relating
to service delivery reform are delivered through
the building of an integrated, innovative and
responsive ICT capability. The ICT Investment
Sub-committee sits under the ICT Governance
Committee and is responsible for the review
and assessment of ICT investment proposals.
Portfolio Finance Committee—provides
assurance that the management of financial
resources is aligned with and supports the
portfolio’s strategic directions and government
priorities. The Portfolio Investment Subcommittee sits under the Portfolio Finance
Committee and provides advice to and supports
the SDR Board in relation to funding and
financial management of SDR activities.
Portfolio Customer Committee—provides
assurance that all aspects of customer service
in the portfolio support the implementation
and progression of the portfolio’s strategic
directions.
Portfolio People and Leadership
Committee—provides assurance on all crossportfolio people matters including service
delivery reform and integration within the
Human Services portfolio and shared services.
It also provides advice to the portfolio agencies
on agency-specific people matters.
SDR Board—responsible for driving and setting
the direction for service delivery reform. The
board also ensures that key goals and agreed
outcomes are achieved and are in line with
government objectives. Various committees sit
under the board and assist with SDR planning,
performance management, communication
and coordination.
Department of Human Services Annual Report //
67
Department of Human Services
governance committees
To meet legislative obligations and provide
specific assurance to the Secretary concerning
the delivery of quality outcomes, a further seven
committees operate within the department:
• Audit Committee
• Risk, Security and Business Continuity
Committee
• Finance Committee
• Child Support Program Business Operations
Committee
• CRS Australia Executive Committee
• Department of Human Services National
Consultative Committee
• National Health and Safety Committee.
Audit Committee—established in line with the
Financial Management and Accountability Act
1997, the Audit Committee provides assurance
to the Secretary on the appropriateness of
the department’s accountability and control
framework, particularly those aspects
concerning the proper use of Commonwealth
resources and the management of risks. Chaired
by the Deputy Secretary, Delivery Policy and
Compliance and directly accountable to the
Secretary, the Audit Committee usually meets
quarterly. The committee has established a
Financial Statements Sub-committee.
Figure 13—Department of Human Services governance committee structure at 30 June 2010
Secretary, Department
of Human Services
Department of Human Services
Management Board
DHS Audit
Committee1
DHS National
Consultative
Committee
Risk, Security
and Business
Continuity
Committee
Finance
Committee
National Health and
Safety Committee1
Senior Leadership Group
Senior Executive Service Forum
Main reporting line is to the Secretary
Reports to both the Management Board and
to the People and Leadership Committee
1
68
This committee exists due to legislated requirement
// CHAPTER 5: Management and accountability
CSP Business
Operations
Committee
CRS Australia
Executive
Committee
Risk, Security and Business Continuity
Committee—provides assurance to the
Secretary that the department has robust risk
management, security and a business continuity
framework aligned with the department’s
strategic directions and government priorities.
The committee is responsible for making
decisions and/or recommendations to the
Management Board on matters of risk, security
and business continuity for the department.
The committee meets monthly and is chaired by
the Chief Financial Officer.
Finance Committee—provides assurance
to the Secretary that the management
of the financial resources is aligned with
the department’s strategic direction and
government priorities. The committee is
responsible for making decisions and/or
recommendations to the Management Board
on financial management issues and policy for
the department. The Finance Committee meets
monthly. It is chaired by the Deputy Secretary,
Service Delivery Reform Implementation.
Child Support Program Business Operations
Committee—provides assurance to the Secretary
that the Child Support Program’s performance is
aligned with the department’s strategic direction
and government priorities. It provides advice on
child support matters, has the ability to make
applicable decisions and links to other portfolio
and departmental committees as appropriate,
including escalating matters to the Management
Board. The committee meets monthly and is
chaired by the Deputy Secretary, Child Support.
CRS Australia Executive Committee—chaired
by the General Manager, CRS Australia, and
attended by the two deputy general managers,
it holds fortnightly meetings. It develops,
implements and manages CRS Australia’s
strategic direction, monitors and reviews
corporate and operational performance to
direct resources and processes appropriately,
ensures appropriate financial management,
accountability and legislative compliance and
identifies and manages risks.
Department of Human Services National
Consultative Committee—provides genuine
consultation between Department of Human
Services and Child Support management and
staff representatives. This forum was established
in accordance with clause 291–293 of the
Department of Human Services—Child Support
Agency Collective Agreement 2008–2011. The
committee is not a decision-making body, but
rather a mechanism to enable employees to
influence decisions. The committee meets at
least three times per year and is chaired by
CRS Australia General Manager, People Services
or a delegate.
National Health and Safety Committee—
advises the Secretary on occupational health
and safety issues. The committee is established
under section 34 of the Occupational Health
and Safety Act 1991. The committee is chaired
by the People Support Branch Manager and
meets every three months.
The department's governance framework also
includes a Senior Leadership Group (SLG) and an
All Senior Executive Service Forum (All SES Forum).
These meetings commenced in 2009. The SLG is a
forum for SES Band 2s to be informed of current
departmental issues and priorities and meets
bi-monthly. Every quarter the SLG expands to
become the All SES Forum. Meetings of the SLG
follow on from Management Board meetings.
CRS Australia—
governance
The General Manager of CRS Australia reports
to the Secretary, attends weekly department
Management Board meetings, and provides a
monthly detailed report to the Management
Board on CRS Australia’s key performance
indicators and operational performance.
Because of its competitive business focus,
CRS Australia has additional internal governance
arrangements (see page 70) to ensure it
meets business commitments, complies with
legislative requirements and actively manages
risks throughout its Australia-wide network.
Processes recognise the degree of devolution
Department of Human Services Annual Report //
69
of decision making necessary to get job seekers
into work and to react promptly to local
conditions and community needs.
CRS Australia has three committees to
assist the CRS Australia executive in these
arrangements, including the Strategic
Business Group, Risk Management
Committee and National Occupational Health
and Safety Committee.
Strategic Business Group—chaired by the
General Manager and attended by the two
deputy general managers, national managers
and division managers, meets approximately
every six weeks. The group considers and
provides advice and recommendations to
the executive on strategic and operational
matters, makes decisions on national issues
when requested by the executive, and monitors
performance and provides input to national
projects, communities of practice (Networks of
Excellence) and other team initiatives.
Risk Management Committee—chaired by
the Deputy General Manager Corporate and
attended by a divisional manager, the Manager
Fraud and Compliance, an independent external
member and observers including the National
Manager Finance and the department’s Chief
Internal Auditor, meets at least quarterly each
calendar year. The membership of this committee
is reviewed annually. The committee sets the
direction of, monitors and reviews the risk
management, fraud, audit and protective security
control environments, reviews the risk registers
quarterly, provides input to the departmentwide audit plan, oversees business continuity
management plans and activities, develops and
monitors risk management, fraud, audit and
protective security policies and programs of
work and provides advice and guidance on risk
management issues as required. In 2009–10
CRS Australia reported on relevant matters
of risk, fraud and audit to the Department of
Human Services’ Audit Committee.
National Health and Safety Committee—
chaired by a divisional manager and attended
by the National OH&S Adviser, a management
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// CHAPTER 5: Management and accountability
representative, the National Injury Prevention
Coordinator and an elected health and safety
representative for each division, meets every six
to eight weeks by teleconference with an annual
face-to-face meeting. The committee monitors
and provides input to OH&S strategies to address
issues affecting CRS Australia employees,
facilitates a consultative and participatory
approach to health and safety at work, reviews
safety and health reports and progress on
prevention initiatives, provides input into safety
and health policy development, and considers
OH&S-related matters raised by employees.
External governance
Interdepartmental committees
Several external governance forums create the
opportunity to reinforce the interdependence
between policy formulation, design and
implementation and to more effectively deliver
outcomes for the government.
The Strategic Partnerships Interdepartmental
Committee (IDC) provides strategic oversight
of the Centrelink service delivery system. This
includes strategic management of system
performance as well as capability development
that is in line with the government’s service
delivery reform agenda. It also focuses on
ensuring current service delivery approaches
are effectively implemented and not
compromised by the implementation of service
deliver reform initiatives. The IDC consists of
the Secretaries of the Department of Human
Services (Chair); the Department of Education,
Employment and Workplace Relations; the
Department of Families, Housing, Community
Services and Indigenous Affairs; and the Chief
Executive Officer of Centrelink.
A Health and Human Services Chief Executive
Officers’ Forum established by the Secretaries
of the Department of Human Services and the
Department of Health and Ageing facilitates the
successful implementation of service delivery
reform and health reform agendas.
Service delivery reform
A Service Delivery Reform (SDR)
Interdepartmental Committee (IDC) chaired
by the Department of Human Services first
met in January 2010. Its role is to ensure
alignment between SDR and the outcomes
of the government’s broader reform agenda.
Membership of the committee is drawn from
central agencies, key policy departments, service
delivery organisations and the Office of the
Privacy Commissioner.
The Department of Human Services is also
represented on the Secretaries’ Committee on
Service Delivery which is chaired by the Secretary
of the Department of Finance and Deregulation.
Department of Human
Services—Accountability
External scrutiny
External audits
In 2009–10 the Australian National Audit
Office (ANAO) issued several audit reports that
involved the department—see Appendix F—
Australian National Audit Office activity on
page 204.
The department responds to all ANAO
recommendations and the Audit Committee
monitors progress. ANAO representatives are
invited to attend all audit committee meetings
as observers.
In many cases ANAO recommendations
directly involve the responsibilities of policy
departments. The department works with
policy departments to help them effectively
respond to the recommendations.
The Joint Committee of Public Accounts and Audit
Committee is required by the Public Accounts
and Audit Committee Act 1951 to examine all
Auditor-General reports tabled in the Australian
Parliament. The joint committee’s review
procedures are built around a series of public
hearings, at which evidence is provided by agencies
that have been the subject of recent significant
audit findings. The Department of Human Services
did not attend any hearings in 2009–10.
Commonwealth Ombudsman reports
As with external audit reports, the department
monitored and responded to Commonwealth
Ombudsman reports in relation to agencies
within the Department of Human Services. The
following reports were made in 2009–10:
• Australian Federal Police and the Child
Support Agency, Department of Human
Services: Caught between two agencies: the
case of Mrs X—Report no. 14/2009
• Putting things right: compensating for
defective administration—Administration
of decision-making under the scheme for
compensation for detriment caused by
defective administration—Report no. 11/2009
Social Security Appeals Tribunal
CSP reviews customers’ objections to child
support assessments and to decisions about
the collection of child support. The decisions
it makes about these objections are known as
objection decisions.
From 1 January 2007 the Social Security
Appeals Tribunal (SSAT) became responsible
for independently reviewing CSP objection
decisions and decisions to refuse an extension
of time in which to lodge an objection. The
SSAT provides a review mechanism that is
inexpensive, informal and quick, and improves
the consistency and transparency of child
support decisions.
The SSAT received 2665 applications for review
of CSP decisions in 2009–10, and finalised 2777
decisions in relation to appeals. Forty-one per
cent of these decisions affirmed CSP's objection
decision, and 59 per cent set aside or varied the
CSP’s decision.
In comparison, the number of appeals made
to the SSAT constituted 15 per cent of the
total number of objection decisions finalised in
2008–09 (17 388).
Department of Human Services Annual Report //
71
Freedom of information,
information release and privacy
Freedom of information reforms
The Australian Information Commissioner
Act 2010 and the Freedom of Information
Amendment (Reform) Act 2010 passed through
the Parliament on 13 May 2010 and received
Royal Assent on 31 May 2010. Their objective is
a pro-disclosure culture that promotes openness
and accountability as well as public debate on
policy issues.
CSP will push information into the public
arena, in contrast to the previous Freedom
of information (FOI) regime which relied on
customers and journalists to extract that
information from Australian Government
agencies through FOI requests.
The former Act and most provisions of the
latter will begin on 1 November 2010. The
Information Publication Scheme (IPS) will begin
from 1 May 2011.
Some of the changes include:
• the Office of the Australian Information
Commissioner has been created by the
Australian Information Commissioner Act
2010: Professor John McMillan AO will be the
first Information Commissioner.
–– All agencies will be accountable to the
Information Commissioner regarding the
FOI Act and the new IPS.
–– The Information Commissioner will have
the power to investigate an agency’s
compliance with the IPS.
• no application fees (including for internal
review) will apply to access requests
• no charges will apply to applicants seeking
access to their own personal information
under the FOI Act
• for all other applications, the first hour of
decision-making time will be free—except
for journalists and not-for-profit community
groups where the first five hours will be free
• the ability for FOI applications to be
submitted online
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// CHAPTER 5: Management and accountability
• a database for non-personal FOI decisions will
be available online
• an FOI IPS plan to be available on 1 May
2011.
Under the IPS, agencies, must publish a range
of information on the internet or advertise
how the information can be obtained. The
information includes operational information
held by an agency to assist in exercising powers
and functions when making decisions or
recommendations affecting customers, as well
as any other information that an agency may
wish to publish.
CSP is identifying all operational information
within the program and will publish this online
within the timeframes set out in the new FOI
legislation.
CSP project teams will ensure all requirements
will be met within the timeframes.
Request statistics
The department handles requests for access to
documents in accordance with the Freedom
of Information Act 1982 received by the
Department of Human Services, CRS Australia
and Child Support Program.
In 2009–10, 500 FOI requests were received.
Taking into account cases pending from
previous years, 424 requests were finalised.
The outcomes of the cases processed were:
• applicants withdrew 68 requests before
decisions on access were made
• full access was granted in 129 cases
• part access was allowed in 197 cases
• access was refused in 26 cases
• four cases were transferred to other agencies.
Reviews of freedom of information
In 2009–10, 23 FOI requests were received
for an internal review of access decisions. Of
the reviews completed at the end of the year,
14 requests resulted in access or part access and
five resulted in affirming the original decision.
There were three new applications to the
Administrative Appeals Tribunal for review of
Department of Human Services FOI decisions.
For Department of Human Services statements
in accordance with section 8 of the Freedom of
Information Act 1982 see Appendix B: Freedom
of Information on page 181.
Privacy of personal information
CSP places great emphasis on protecting the
privacy of customers and staff. It employs an
extensive range of measures that ensure a
high standard of privacy and that community
standards in relation to privacy continue to
be met.
Privacy training
CSP privacy obligations are reinforced through
training, participation in various privacy forums
and expert advice to internal and external
stakeholders.
All ongoing and non-ongoing employees
complete relevant and up-to-date training.
Access to personal information
Protecting the privacy and confidentiality of
personal information is of critical importance.
The CSP employs high standards and an
extensive range of activities to support the
relevant legislation and best privacy practice.
Activities include:
• induction training for new staff and follow-up
training on identified privacy issues relevant
to staff in different business areas
• privacy impact assessments (PIA) of new CSP
initiatives involving the collection, use or
disclosure of personal information
• proactive audits of access to personal
information to identify any unauthorised
access by staff
• high quality and timely advice to all business
areas to encourage the identification and
resolution of any privacy issues as they arise
• investigating customer complaints and staff
reports of possible breaches to address any
ongoing risks
• specific processes for releasing personal
information to another agency or person.
Secrecy provisions
Privacy impact assessments
CSP maintains an uncompromising commitment
to best privacy practice so new projects and
program improvements are developed within a
robust privacy framework. The privacy impact
assessment process continues to be used
to mitigate privacy risks and impacts, ensure
compliance with legal obligations and build best
privacy practice into projects.
In 2009–10 privacy impact assessments
(PIAs) on a range of significant projects were
completed. Comprehensive privacy analysis
continues as part of the process for all
identified projects where personal information
may be affected.
Secrecy provisions contained in Commonwealth
legislation, specifically the Child Support
(Assessment) Act 1989 and the Child Support
(Registration and Collection) Act 1988, make it
an offence for CSP staff to disclose information
about a person obtained under those Acts,
unless in the performance of their duties, or
unless one of the disclosure enabling sections
contained in the secrecy provisions applies.
All requests for personal child support information
are considered case by case according to the
secrecy provisions and in many cases require
approval by an officer exercising a delegation
made by the Deputy Secretary. Information may
be disclosed in response to requests, for example,
from law enforcement agencies, or in response
to requests when a delegate establishes that the
disclosure of personal information is necessary in
the public interest.
Department of Human Services Annual Report //
73
Personal information related to administration
of CSP is protected by the Privacy Act 1988 and
requests for personal information are considered
under the information privacy principles.
Internal scrutiny
Requests for other types of information
or documents are, depending on the
circumstances, processed under either the
Privacy Act or the FOI Act.
The assessment, treatment and monitoring of risks
are an integral part of the department’s planning
and decision-making process. Effective risk
management ensures the department maximises
opportunities and minimises the effect of
uncertainty on its objectives.
Ecologically sustainable
development and environmental
performance
Following the December 2009 announcement
of major reform to Australian Government
service delivery, integration of enabling service
areas of the Human Services portfolio began.
Environmental management teams from the
department, Centrelink and Medicare Australia
joined together to ensure the portfolio agencies
continue to conduct their business in an
environmentally responsible manner.
Section 516A of the Environment Protection and
Biodiversity Conservation Act 1999 (EPBC Act)
requires Commonwealth organisations to report
annually on their environmental performance
and contribution to the principles of ecologically
sustainable development.
All agencies of the Human Services portfolio are
committed to:
• complying with all relevant environmental
legislation and regulations
• conducting their operations in a manner
that minimises environmental impacts and
prevents pollution
• setting environmental objectives and targets
to enable continuous improvement.
For further information see Appendix D—
Ecologically sustainable development and
environmental performance on page 186.
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// CHAPTER 5: Management and accountability
Risk management
In 2009–10 the department continued to
foster a culture where risk management is a
key consideration in day-to-day operations and
decision making. Establishing the Risk, Security
and Business Continuity Committee, providing
assurance to the Secretary that the department
has a robust risk management, security and
business continuity framework is an example of
the commitment to effective risk management
principles.
Following the release of the new
international standard for risk management,
AS/NZS ISO 31000:2009 Risk Management—
Principles and guidelines, the department
revised its Risk Management Framework to
ensure it was consistent with best practice and
the international standard. The framework is
the foundation for effective risk management
within the department. It outlines the key
elements for identifying and managing risks
and consists of authority, accountability, support
tools, outputs and reporting.
In March 2010 the department participated
in the annual Comcover Risk Management
Benchmarking Survey and was awarded
a 5.1 per cent discount (out of a possible
10 per cent) on the 2010–11 insurance
premium. This score is indicative of the maturity
of risk management within the department.
During 2009–10 the Risk, Security and Business
Continuity Committee endorsed a new business
continuity framework and policy which was
approved by the Management Board. This
framework articulates the authority for the
business continuity strategy and accountability
statements, as well as providing reference to
the support, tools and resources available to
ensure that business continuity management is
effective. It links the policy, strategic priorities
and overarching risk assessment to the
outputs, that is the business continuity plans
(BCPs) and articulates the linkage between
emergency, incident and business continuity
management processes. All departmental sites
have emergency management plans, BCPs were
reviewed to ensure currency, and an assessment
of the criticality of key functions was performed.
In 2009–10 a Portfolio Business Continuity
Community of Practice was established and
met regularly to discuss better practices. By the
adoption of business continuity management
best practices, the department endeavours
to ensure that business-critical payments and
services are not compromised by a major
disruptive event.
In line with service delivery reform planning,
the management of the department’s risk and
business continuity functions will be merged
with that of Centrelink and Medicare Australia
during 2010–11.
Fraud control
To comply with the Commonwealth Fraud
and Control Guidelines 2002, in 2009–10 the
Secretary of the Department of Human Services
certified that the department complies with
the guidelines, conducts risk assessments and
prepares fraud control plans. For a copy of the
Secretary’s signed certificate confirming the
department’s compliance with the Guidelines,
see Appendix G—Commonwealth Fraud Control
Guidelines Certification on page 206.
The department’s Fraud Prevention Team
activities include educating staff in fraud
awareness, fraud control planning and
investigating allegations of serious misconduct
and/or fraud by departmental staff.
All staff must attend face-to-face training
in fraud and ethics awareness every two
years. Staff can access policies and guidelines
on the intranet. The department regularly
communicates the importance of adhering
to these guidelines through its internal
communication channels. It has begun an
education strategy for managers and team
leaders so they are familiar with the role and
capacity of the Fraud Prevention Team.
The department views breaches of the guidelines
seriously and investigates all allegations of fraud
and serious misconduct by staff.
Security
The protective security functions within the
Human Services portfolio were consolidated on
1 March 2010. The new team comprising all
existing department, Centrelink and Medicare
Australia physical and personnel security
employees is managed by the Human Services
Agency Security Adviser (ASA), a new role that
rationalises the roles previously performed
by the department, Centrelink and Medicare
Australia ASAs. The team reports to the Branch
Manager, People Support Branch.
The new Human Services Workplace Security
Team is managed from National Support
Office and has nine outposted security advisers
deployed across the Human Services network.
It has a portfolio-wide responsibility for the
following strategic and operational security
elements:
• the physical security of all portfolio employees
and customers
• the physical security of all buildings and office
space
• the physical security of portfolio assets and
hardcopy information
• personnel security for all current and
prospective portfolio employees and
contractors. Associated with those responsibilities, are the
following tasks:
• physical security incident management
• physical security reviews
• policy advice and development
• employee awareness and training
• personnel security.
Department of Human Services Annual Report //
75
Corporate records management
A new Corporate Records Management branch
in Centrelink is now responsible for ensuring
the Department of Human Services, Centrelink
and Medicare Australia all comply with recordkeeping requirements and responsibilities as
Australian Government agencies. This includes
ongoing monitoring of practices and ICT
systems while preparing for e-records and
records-keeping in the context of connected
service delivery across government agencies.
Emergency management
In 2009–10 the department played a significant
role in implementing key elements of the
government’s natural disaster reform agenda,
particularly in the areas of call centre overflow,
professional service availability and identity
management.
National Emergency Call Centre Surge
Capability Project
The portfolio successfully negotiated and
implemented formal agreements with all states
and territories for the provision of an emergency
call centre 'surge’ capability, where calls would
overflow to the Australian Government in the
event that state or territory capacity had been,
or was likely to be, overwhelmed. Frameworks
to regularly test activation protocols, telephony
routing and information technology connectivity
have also been developed.
Joint Service Delivery Project
The portfolio has been working through COAG
to agree a set of principles to guide cooperation
between the Australian Government and the
states and territories in joint service delivery
following disasters or emergencies.
As part of this work the portfolio has provided
states and territories with a catalogue of skills
and services within the Human Services portfolio
that the jurisdictions may request when their
own resources are overwhelmed by a particular
disaster or emergency.
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// CHAPTER 5: Management and accountability
The portfolio is continuing to work with
jurisdictions to further streamline and improve
existing arrangements to ensure timeliness and
transparency in joint service delivery in response
to major disasters.
Identity Management in a
Disaster Project
In consultation with all jurisdictions, significant
progress was made in relation to the
development of a single form that could be used
by any state, territory or Australian Government
agency to coordinate the re-establishment of
key proof of identity documentation for persons
affected by a disaster.
The department recognises that jurisdictions
have unique needs that may prevent the
adoption of a nationally generic form,
but remains optimistic that identified
improvements will be embedded before any
future disaster response.
Internal audit
The department (including CRS Australia) has
an active and effective audit function which
carries out internal audits to identify risks and
opportunities for improvement. The audit
program is developed through consultation
with business areas within the department and
addresses corporate strategic risks to correctly
target audit and assurance activities.
The audits provide independent assurance
on management performance in maintaining
the department’s strategic priorities,
achieving operational objectives in line with
organisational and legislative requirements, and
ensuring that high standards of probity and
accountability are met.
The department also:
• works closely with the ANAO and provides
advice to the Joint Committee of Public
Accounts and Audit
• undertakes periodic external benchmarking
to ensure that it continues to conform to best
practices
• ensures employees undertake professional
development activities
Regulatory compliance
quarterly reports
• fosters external relationships with private and
public sector audit organisations
The Audit Committee provided assurance that
risks were identified, reviewed and addressed
throughout the year.
• maintains external networks within the
Human Services portfolio and other audit
areas within public sector departments and
agencies and the broader audit community.
Action on audit recommendations is monitored
and reported to the department’s executive,
the Audit Committee and the ANAO.
During the year internal audits and reviews
covered:
• training and decision making
• business continuity management
• preparedness for Gershon1
• formula compliance
• data governance
• asset management
• recruitment
• EDS management of service delivery
• payroll
• CSP enforcement
• income reconciliations
• SAP controls
• records management
• call/service review
• regulatory compliance and business processes
• CRS Australia—suitable employment
outcomes under DEEWR requirements
• management of injury management accounts
within CRS Australia
• property fitouts
• complaints handling.
Management of ethical standards
The department requires all employees to
behave in accordance with the APS Values and
Code of Conduct, and to maintain a high level
of integrity, honesty and professionalism in their
work and in their engagement with the broader
community.
In 2009–10 all new staff were trained in the
APS Values and Code of Conduct as part of the
general induction process.
Service charters
The department delivers services to the public in
accordance with:
• the Job Capacity Asessment Client Service
Charter—Directly Connecting You to the
Right Services
• the Child Support Agency’s Customer
Service Commitment.
Each document outlines what customers can
expect, how the department aims to deliver
quality customer service and to help staff
to fulfil customer expectations, and how
customers can assist. The charters, which also
provide contact details for obtaining further
information or making complaints, can be
accessed through the department’s website
www.humanservices.com.au.
Information on 2009–10 performance and
broader trends in customer satisfaction with
the delivery of services through the Job Capacity
assessment and Child Support programs is
provided in Chapter 2: Achievements—Central
department.
1 Review of the Australian Government’s use of information
and communication technology, Sir Peter Gershon CBEFREng,
August 2008.
Department of Human Services Annual Report //
77
Grants programs
No grant programs were administered in 2009–10
by the department. Further information on grants
administration is available from the Grants Policy
Team, Department of Finance and Deregulation
—email: [email protected].
CRS Australia—
accountability
External scrutiny
ANAO audits
The ANAO audits for 2009–10 are detailed in
Appendix F—Australian National Audit Office
activity on page 204.
Other external audits
CRS Australia participated in the annual
surveillance audit of compliance with the
Disability Services Standards that is conducted
by external auditors on behalf of the
Department of Families, Housing, Community
Services and Indigenous Affairs. This audit
examined the following standards: Standard 1: Service access
Standard 2: Individual needs
Standard 3: Decision making and choice
Standard 4: Privacy, dignity and confidentiality
Standard 5: Participation and integration
Standard 6: Valued status
Standard 7: Complaints and disputes
Standard 8: Service management
Standard 9: Employment conditions
Standard 10: Service recipient training
and support
Standard 11: Staff recruitment employment
and training
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// CHAPTER 5: Management and accountability
Standard 12: Protection of human rights and
freedom from abuse.
No non-conformities were identified.
DEEWR conducted compliance audits at
approximately 50 CRS Australia offices
during the year as part of its management
of the Vocational Rehabilitation Services
Program Memorandum of Understanding
and, from 1 March 2010, the Disability
Employment Services Program Memorandum of
Understanding.
CRS Australia monitored feedback from these
audits to ensure that any areas for improvement
were identified and strategies to improve
performance were implemented.
Appeals against decisions
For services provided under the Disability
Services Act 1986, a person affected by a
decision of CRS Australia, or by CRS Australia’s
failure to make a decision, can appeal first
to the Secretary of DEEWR, or the Secretary’s
delegate, then to the Administrative Appeals
Tribunal if the matter is not resolved to their
satisfaction.
DEEWR holds delegations for decisions made
under the Act, except for section 21A (ending
rehabilitation programs) and sections 26(2), (4)
and (5) (review of decisions) under Part III of the
Act, which CRS Australia also holds.
In 2009–10:
• one appeal was lodged by a job seeker with
the AAT, and subsequently withdrawn
• the Commonwealth Ombudsman’s Office
received 18 enquiries about CRS Australia
during 2009–10. Sixteen matters were closed
during this period and no matters were
investigated
• no new complaints against CRS Australia
were lodged with the Australian Human
Rights Commission. One matter, which was
terminated in August 2008, continues to be
defended at the Federal Court level.
Judicial or administrative decisions
No judicial or administrative tribunal
decisions had an impact on the operations
of CRS Australia in 2009–10.
Freedom of information
CRS Australia has protocols and procedures in
place for managing requests for information
under the Freedom of Information Act 1982.
Information sheets outlining the FOI application
process are available on CRS Australia’s
website—www.crsaustralia.gov.au—
for potential applicants.
Following the Australian Information
Commissioner Act 2010 and the Freedom of
Information Amendment (Reform) Act 2010
passed through Parliament on 13 May 2010,
an internal communication plan has been
developed to ensure all staff are informed of
the FOI reforms and CRS Australia is well placed
to meet the requirements within the allocated
timeframes.
For CRS Australia’s FOI procedures and FOI
coordinator details see Appendix B—Freedom of
Information on page 181.
Privacy of personal information
CRS Australia considers protecting the privacy
and confidentiality of personal information to
be of critical importance. It has an extensive
range of activities which support the relevant
legislation and best privacy practice. These
activities include:
• providing high quality and timely privacy
advice to network staff to encourage the
identification and resolution of privacy issues
• reinforcing privacy obligations to staff
through training and participation in various
privacy forums
• investigating complaints and reports of
possible privacy breaches to ensure action
is taken to address any ongoing risks
• specific processes for releasing personal
information to third parties.
The management of CRS Australia customer
personal information is protected by section 28
of the Disability Services Act 1986 and the
Privacy Act 1988.
Secrecy provisions contained in the Disability
Services Act 1986 make it an offence for
CRS Australia staff to disclose information
about a person obtained under the Act, unless
that disclosure is in the performance of their
duties, or in the administration of the Social
Security Act 1991, in the public interest, or to a
prescribed authority.
All requests for personal information are
considered case by case according to the secrecy
provisions and in many cases require approval or
certification by an officer of DEEWR exercising
a delegation under the Act. Information may
be disclosed in response to requests when
a delegate establishes that the disclosure of
personal information is necessary in the public
interest.
Ecologically sustainable
development and environmental
performance
CRS Australia is committed to the protection of
the environment and recognises its responsibility
to the Australian Government and the wider
community to minimise the impact of its
operations on the environment.
The Environmental Management System is
available to staff on the intranet and provides
guidelines to help consider environmental
objectives. A series of environmental strategies
promote environmental awareness within
CRS Australia, including environmental intranet
pages, news items and the Green Team.
CRS Australia reports on its environmental
performance in Appendix D—Ecologically
Sustainable Development and Environmental
Performance on pages 190–193.
Department of Human Services Annual Report //
79
Internal scrutiny
Risk management
In 2009–10 the CRS Australia Risk Management
Committee met three times and provided
assurance to the general manager on risk, audit,
fraud, security, business continuity, ICT and
service delivery issues.
CRS Australia’s Risk Management Plan
considered risk assessments across all areas of
the business including service delivery, business
planning, management of major projects,
fraud, security, OH&S, business continuity and
staff management.
A strategic and operational risk assessment was
conducted to determine the overall risk profile for
CRS Australia; appropriate mitigation strategies
and remediation actions were implemented.
The annual test of the Business Continuity Plan
was successfully undertaken in December 2009
and provided important information to ensure
that planning, processes and response actions
were sound and appropriate.
As part of CRS Australia’s commitment to
continuous improvement, it again participated
in the annual Comcover Risk Management
Benchmarking Survey, to ensure that processes
and practices reflect relevant legislation and
standards.
In 2009–10 CRS Australia received a rating of
seven out of 10 (equating to a 7 per cent saving
on the premiums), which placed it in the top 30
out of 130 participating Australian Government
organisations covered by Comcover, and in
the top four from 21 organisations in its peer
groups. Areas for improvement will be identified
and assessed in the coming year.
Fraud control
As part of its responsibility to protect the
public interest, CRS Australia maintained a
fraud control program that complies with the
Financial Management and Accountability
80
// CHAPTER 5: Management and accountability
Act 1997 (FMA Act) and the Commonwealth
Fraud Control Guidelines. As part of the fraud
control program:
• fraud risk assessments and fraud control plans
were prepared and reviewed regularly
• appropriate fraud prevention, detection,
correction, investigation and reporting
procedures and processes were undertaken
by qualified staff
• fraud activity was overseen as part of the
organisation’s Risk Management Committee
terms of reference
• data on fraud was collected and reported
regularly
• all strategies and processes were actively
reviewed and, where appropriate, updated in
accordance with CRS Australia’s continuous
improvement strategies.
Twenty-nine matters of potential fraud or
unethical behaviour were investigated during
the year: three external and 26 internal.
All were investigated and reported to the
appropriate delegate with recommendations
on possible sanctions, and prevention strategies
were considered and implemented where
appropriate. When required, the fraud control
plan and risk register were also updated.
In accordance with the Commonwealth Fraud
Control Guidelines, CRS Australia collected
fraud data and reported as required to the
Australian Institute of Criminology.
Security
CRS Australia complies with the Australian
Government’s Protective Security Manual and
the Information Security Manual as a basis for
its protective security framework.
To ensure compliance with information, physical
and personnel security requirements, detailed
risk assessments, security reviews of offices, and
assessments of other threats and weaknesses
through incident reports were conducted in
2009–10.
Reviews of metropolitan and rural service
delivery sites formed part of protective security
activities in 2009–10. Additional controls and
remediation strategies were recommended to
ensure compliance with minimum mandatory
requirements. However, no material control
weaknesses were identified.
A security risk assessment, as part of the
Protective Security Plan, was reviewed and
updated to ensure that identified risks were
addressed.
Internal audit
The Department of Human Services manages
the internal audit process for CRS Australia.
Input is provided into the broader Department
Internal Audit Plan based on risk assessments,
priorities and business imperatives.
CRS Australia uses internal audit and quality
assurance processes to improve overall
effectiveness and to provide assurance of
consistency and accuracy in decision making,
particularly as it is applied to decisions under
the FMA Act.
CRS Australia coordinated a range of internal
audits and participated in a number of crossagency audits, including audits of financial
statements.
Aside from the internal audit process,
CRS Australia undertook a range of additional
governance activities to provide further
assurance of compliance. These included:
• managers' self-audit package
• due diligence questionnaire
• internal financial and process reviews
• analysis of various financial and other reports
• start of a rolling process of assessing
CRS Australia’s compliance with relevant
legislation to ensure consistency with internal
policy and procedures.
Management of ethical standards
CRS Australia requires all employees to follow
the APS Values and Code of Conduct both in
their delivery of services and in their interactions
with each other.
Staff received communication and training
on the APS Values and Code of Conduct
at induction, through line managers at the
local level and through regular articles and
screensavers published on the intranet. The
APS bookmarks relating to the Ethics Advisory
Service and the APS Code of Conduct were
distributed to staff.
Results of the 2010 CRS Australia Employee
Opinion Survey demonstrated CRS Australia’s
commitment in this area with 70 per cent of staff
considering senior management decisions to be
consistent with the APS Values and CRS Australia
service commitments. This is an increase of
16 percentage points since the 2008 survey.
In 2009–10 there was a focus on email
communication and ensuring consistency
with the Code of Conduct. Regular intranet
news items were released and all managers
attended presentations by the National
Manager Human Resources.
Policies and procedures relating to breaches
of the code are available to all staff on the
CRS Australia intranet.
During 2009–10, 13 staff were found to have
breached the APS Code of Conduct. Three cases
were not concluded because one staff member’s
employment contract expired and two resigned.
Sanctions were applied in six cases—two staff
members’ employment was terminated, one
was reduced in salary and reprimanded, two
were deducted salary by fine and reprimanded,
and one was reprimanded. Seven cases had no
sanction applied. In six of these management
action was undertaken. In one case the
employee resigned before the sanction decision
was finalised.
Department of Human Services Annual Report //
81
Of the four investigations reported in the
2008–09 annual report as not finalised, two
staff members resigned before the investigation
was completed, one was found not to have
breached the APS Code of Conduct and in
the fourth case a sanction of termination of
employment was issued.
Resolution of complaints
During 2009–10 CRS Australia staff complied
with the standards set out in the DEEWR
Disability Employment Services Programs—
your service guarantee and the Employment
Services Code of Practice in the delivery of
disability employment services. The code of
practice outlines the commitment that disability
employment service providers make to providing
high-quality services to job seekers on behalf of
the Australian Government.
CRS Australia is committed to a positive and
structured approach to managing complaints
and appeals. Its complaints management
process follows a three-tier resolution model.
Complaints are typically made initially at the
regional level, and escalated to divisional and
national levels as required. CRS Australia uses
the Commonwealth Ombudsman’s Better
Practice Guide to Complaint Handling (2009)
as a basis for complaint management.
CRS Australia applied both its service charter
and the codes of practice required by purchasers
of its services.
CRS Australia modified its complaints reporting
mechanisms, enabling it to capture a wider
range of services and allowing more local
staff to handle tier one complaints. There
were no internal reviews of decisions made by
CRS Australia to end a rehabilitation program.
CRS Australia uses complaint information to
evaluate and improve programs and services
and feedback is also used to inform decision
making about future service delivery.
Grants programs
Service charter
The majority of CRS Australia services were
covered by the DEEWR Vocational Rehabilitation
Service (VRS) Guarantee and the DEEWR
Disability Employment Services Programs—your
service guarantee from 1 March 2010.
The CRS Australia Service Charter recognises the
DEEWR requirements and clarifies expectations
on service standards.
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// CHAPTER 5: Management and accountability
CRS Australia’s service charter remained relevant
to the broader range of commercial services
delivered by CRS Australia and was available
online on the CRS Australia website at
www.crsaustralia.gov.au.
CRS Australia did not manage any grants
programs during 2009–10.
An exciting time for staff
mented on, is that
One of the many positives that staff havetheycomhave
new colleagues.
although they have not left their teams,
‘Service delivery reform—it’s an
exciting time for us all,’ says Jim
Rice from the DHS People Capability
Division.
Jim is involved in bringing together the three
people services areas from the department,
Centrelink and Medicare Australia.
The complexity of the task is enormous­—
merging three policies that until now have
been administered by sections in the three
agencies—areas such as OH&S, recruitment
and human services.
People are still for the most part in virtual
teams with members spread over three or
four locations, but they are now working under
one structure.
Eventually everyone will be co-located in
the Tuggeranong area depending on other
co-locations that are also happening in areas
such as ICT, procurement, legal and finance.
‘The accommodation picture is much bigger
than just thinking about the people. The
ultimate goal is the entire service delivery arm
being viewed as one organisation.
‘One of the many positives that staff have
commented on’, says Jim, ‘is that although
they may not have left their teams, they have
new colleagues.
'We’ve seen enormous cooperation between
staff in the three agencies. It’s been difficult,
but there’s been a lot of good will. It’s nice to
be part of that.’
Department of Human Services Annual Report //
83
Department of Human
Services—People
Integration of human resources
functions
The People Services functions of the
Department of Human Services (excluding
CRS Australia), Medicare Australia and
Centrelink came together on 1 March 2010.
There are now two people divisions for
the portfolio—People Services and People
Capability. Both divisions report to the Deputy
CEO, People and Operations, who in turn
reports directly to the CEO of Medicare
Australia, as the leader of the portfolio’s People
Services.
The combined people divisions are responsible
for a broad range of portfolio issues, including:
• diversity and strategic recruitment
• people development
• leadership
• employee relations
• performance improvement and awards
• change management
• ethics and values
• payroll
• workforce planning
• workplace health and safety.
Staff profile
At 30 June 2010 the department employed
4584 people, of which 4507 (98.32 per cent)
were ongoing and 77 (1.68 per cent) were
non-ongoing.
For satatistics on staff by classification,
employment status, gender and location see
Appendix H—Staffing Statistics on page 207.
For salary ranges under the various employment
agreements see Appendix I—Employee
Remuneration Overview on page 215.
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// CHAPTER 5: Management and accountability
Collective agreement
The Department of Human Services—Child
Support Agency Collective Agreement 2008–11
started on 8 July 2008.
The agreement provided the following salary
increases for 2009–10:
• 3.5 per cent effective from 9 July 2009
• an additional 0.5 per cent, subject to the
achievement of the following corporate
objectives:
–– an increase in either the cumulative
collection rate or the percentage of parents
who meet more than 75 per cent of their
child support liabilities
–– a reduction in customer dissatisfaction with
CSP service
–– a reduction in the department’s average
annual unplanned leave.
The agreement also provides the following:
• annual salary progression of 3.5 per cent
linked to performance that meets or exceeds
expectations
• for employees at the top of their salary range,
a $500 performance bonus for employees
who performed above agreed requirements
• a health and wellbeing reimbursement of
$200 for eligible health related expenditure.
The agreement includes a flexibility clause to
enable the approval of additional employment
conditions in exceptional circumstances.
Performance management
The department is committed to being a high
performing organisation by linking individual
performance agreements to business goals and
strategic directions. Effective management of
the individual performance of employees is a key
contributor to the organisation’s success.
considered the circumstances relating to the
introduction of the new Child Support Scheme
as ‘exceptional’, and in line with the provisions
of the agreement, awarded a partial increase of
0.08 per cent in place of the 0.17 per cent that
would have been awarded if this objective had
been achieved.
All employees participate in a performance
management program, the main objectives of
which are:
• developing a high performing culture
• ensuring employees are aware of the
standards of performance expected of them
• providing employees with an understanding
of what they are expected to achieve during
the performance year
Accordingly, an additional partial pay increase
of 0.25 per cent was approved.
• ensuring employees uphold the Australian
Public Service values in the course of their
duties
Senior executive remuneration
The remuneration arrangements for all SES
employees are governed under individual
common law contracts.
• recognising achievement
• identifying and addressing capability
development needs.
Performance pay
In accordance with the CSP Senior Executive
Service (SES) and Executive Level Performance
Management Schemes, CSP SES and executive
level employees covered by an Australian
Work Place Agreement (AWA) may have been
eligible for a performance bonus for superior or
outstanding performance of between five and
15 per cent of base salary.
Table 8 shows the performance bonuses paid in
2009–10 for performance during 2008–09.
Senior executive remuneration is determined
by the Secretary and reflects the work
value, individual capability, contribution and
performance of an executive. Relevant market
factors and the organisational performance of
the department are also taken into account.
Remuneration is reviewed annually at the end
of the performance cycle.
For salary ranges for executive employees, see
Appendix I—Employee Remuneration on page
215.
Individual agreements
With the implementation of arrangements for
AWA employees to be moved to the collective
agreement, 61 employees terminated their
AWAs by agreement in 2009–10, and 40
employees remained on AWAs at 30 June 2010. Productivity
In 2008–09 only the cumulative collection rate
target was met. In relation to the reduction in
customer dissatisfaction target, the Secretary
Table 8—Department of Human Services performance pay for 2008–09, paid in 2009–10
Level
Staff eligible
Staff paid
Amount paid ($)
Average ($)
APS
36
16
33 261.29
2079
Executive level
208
130
449 235.89
3456
SES
55
42
497 989.40
11 857
Total
299
188
980 486.58
5215
Note: If an employee had been performing higher duties for the entire 2008–09 performance cycle they have been reported against their
higher duties classification.
Department of Human Services Annual Report //
85
Workforce planning
The department is developing a new human
capital planning strategy to articulate the future
direction of its workforce. This will help to ensure
portfolio-wide alignment of the workforce with
business direction and outcomes.
Recruitment
Following the recruitment review in June 2009
the department transferred the recruitment
function from Brisbane to Canberra and
re-examined its recruitment services to keep
improving service delivery. An online recruitment capability was developed
during the year to provide for the electronic
lodgment of applications and more streamlined
selection processes. This capability will be rolled
out early in 2010–11.
As part of portfolio integration, the
department’s recruitment team also began
providing cross-portfolio recruitment services
in cooperation with recruitment teams in
both Centrelink and Medicare Australia.
Further development and implementation
of best practice portfolio-wide recruitment
arrangements will be undertaken as part
of the broader portfolio integration activities.
Staff numbers increased during the year by
1.35 per cent, and the department used a
number of strategies to retain high quality
employees. These included undertaking
management and leadership training, providing
internal mobility opportunities, implementing
wellbeing programs, and acknowledging
staff performance through performance
management and rewards and recognition.
Workplace diversity
In 2009–10 the department continued to
develop an inclusive and supportive workplace
through strategies that recognise the diversity
of its workforce.
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// CHAPTER 5: Management and accountability
By 2011 a draft Workplace Diversity Plan should
form part of the Human Services Portfolio
Workplace Diversity Plan.
All rehabilitation case managers and
human resource officers received training
by beyondblue in mental health awareness.
Participants were guided through the
fundamentals of mental health issues in the
workplace, including:
• an examination of prevention strategies
at an organisational level
• how to develop appropriate policies and
procedures
• how to advise managers on addressing
mental health issues with their staff.
Indigenous employment and
retention strategy
In July 2009 the department—including CSP
and CRS Australia as part of the Human
Services portfolio—launched the Statement of
Commitment to Reconciliation. The statement
was signed by the departmental Secretary and
portfolio agency heads of Centrelink, Medicare
Australia and Australian Hearing. The statement
demonstrates the portfolio’s commitment to
working together in a practical way to improve
health, social and welfare outcomes for all
Indigenous Australians.
The number of Indigenous employees in the
department has remained steady over the past
12 months. The proportion is 1.6 per cent.
The department is committed to increasing
the employment and retention of Indigenous
employees as a key component of its
Reconciliation Action Plan. It has committed
to increasing representation to 2.3 per cent
by 2012. In 2009 six Indigenous trainees were
recruited as part of the Australian Public Service
Commission (APSC) Pathways Program; the
retention rate is 100 per cent.
In 2010 the department plans to recruit two
Indigenous trainees on the DEEWR Indigenous
Australian Government Development Program
in addition to recruiting more Indigenous
trainees, graduates and cadets through the
2011 APSC Indigenous Pathways Program.
The department continues to support
Indigenous employees’ involvement in both
internal and external networks and participation
in the APSC's Indigenous Career Trek and
targeted Indigenous leadership programs.
In 2009–10 the department undertook
awareness raising campaigns to raise the
profile of workplace diversity and further the
ongoing development of a culture that supports
diversity. Campaigns included staff profiles, and
celebration of Reconciliation Week, NAIDOC
Week, Harmony Day and Families Week.
Workplace change management
Consultation with the Community and Public
Sector Union (CPSU) has progressed to a new
level of collaboration with the implementation
of the Human Services Access Protocols and
Facilities Arrangements for the CPSU and the
establishment of a framework for consulting
with the CPSU on the implementation of
service delivery reform.
Learning and development
One hundred and twenty employees across
CSP completed a Diploma of Government
(Management) program in 2009. The program
was designed and delivered by the Australian
Public Service Commission for CSP APS6–EL1
employees to improve management capability
across the organisation. The program included
involvement from SES officers and the
participants completed action learning projects.
The department has committed to delivering
accredited management training to 100 staff
in 2010–11.
In 2009–10, 44 departmental SES participated
in a 360 degree feedback and demographic
survey process. Individual feedback sessions
were held for participating SES officers,
leading to the development of individual
development plans.
During 2010 the department commissioned
the development of a number of e-learning
modules for all staff on records management,
fraud awareness, environmental management,
business continuity and cultural awareness.
The programs will be made available to all staff
during 2010.
Human Services Leadership Forum
On 18 June 2010 the inaugural Human Services
Leadership Forum was held in Canberra. The
forum brought together 45 EL1s and EL2s from
across the portfolio to build relationships, share
ideas, discuss key issues, identify priorities and
engage in two-way dialogue with the executive.
The event explored issues around future
directions, organisational change, ICT,
workloads, staff identity and communication.
Overall, participant feedback was positive,
with 84 per cent of staff rating the event
seven out of 10 or higher.
OH&S—Promoting a safe and
supportive workplace
The department continued to reduce the social
and financial cost of occupational injury and
illness by implementing health and safety
management arrangements and developing
a supporting OH&S policy framework.
The health and safety management
arrangements contain:
• the Secretary’s statement of commitment
towards OH&S management
• staff roles and responsibilities
• consultative arrangements and dispute
resolution procedures.
The policy framework supports good OH&S
performance by outlining the department’s full
OH&S management system, including processes
associated with planning, implementing,
evaluating and reviewing performance
improvement strategies.
Department of Human Services Annual Report //
87
A national OH&S plan—endorsed by the health
and safety subcommittee and executive—
identified strategies to further improve
performance. The plan was progressively
implemented during the year.
Strategies focused on reducing incidences of
workplace injury through better risk assessment,
hazard identification and management and staff
awareness, and improving rehabilitation and
return-to-work processes to support ill or injured
staff and speed their return to work.
Despite these efforts there was a slight increase
in the number of compensation claims lodged
and a slight increase in the compensation
premium rate. See also Appendix A—
Occupational Health and Safety on page 178.
Workplace health
The department has maintained a number of
strategies to ensure staff health and wellbeing.
Eligible staff were able to claim a $200
reimbursement from the department for activities
that promote and support their psychological
and physical good health and wellbeing.
Free on-site seasonal flu vaccinations were
also offered to staff at major sites, with staff
at regional service centres supported to join
Centrelink’s vaccination program or attend
their local medical provider. The activity was
well received by employees, with 1529 staff
vaccinated on site.
The department also negotiated corporate rate
deals for staff with a number of fitness centre
operators across Australia at all major sites and
some regional offices.
The department supported the community
through a number of charities such as Lifeline,
the Smith Family (Christmas Giving Tree),
the Starlight Foundation and beyondblue.
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// CHAPTER 5: Management and accountability
Communication activities
Communicating with staff
To support service delivery reform, the
communication functions across the
Human Services portfolio were integrated
on 1 March 2010.
Effective staff communication ensured a range
of organisational and business priorities, issues,
and changes were communicated to staff in a
timely and consistent way.
Departmental Secretary, Finn Pratt, shared and
received information through monthly videoon-demand messages and monthly dialogue
sessions, regular emails including joint emails
from himself and the CEOs of Centrelink and
Medicare Australia, and through an ‘Ask Finn’
mailbox. A bi-monthly newsletter, Human
Connection, was produced for all departmental
staff as well.
CRS Australia—a rewarding work environment
Anita Young, Rehabilitation Consultant
Anita Young knew CRS Australia
was a leading provider of vocational
rehabilitation, helping people with a
disability, injury or health condition
to get and keep a job.
So in January 2003, after finishing her degree
in Occupational Therapy, she started working
for CRS Australia as a rehabilitation consultant
in the Maroochydore, Queensland office.
Helping her clients to discover their skills,
acknowledge their experience, and explore
possible career options, Anita helps them
to manage their disability and maximise
employment opportunities.
‘I focus on getting a really good job match
pretty quickly, because when I get that right
the rest generally follows,’ says Anita.
The best part about working with CRS Australia
is seeing people reach their employment
goal: ‘I get a lot of satisfaction from helping
my clients find employment, especially when
they’ve been out of work for a long time, or
have experienced multiple barriers to getting
a job—it’s so rewarding to see them get there
in the end’.
Anita also delivers injury management and
prevention services for employers to help them
provide staff with healthy and safe workplaces.
She helps injured workers get back to work
by developing tailored return to work plans
with employers.
For Anita, it's a rewarding career: ‘It’s great
working at CRS Australia. My work is varied;
I get to help people through challenging times,
and see the results at the end of it’.
Department of Human Services Annual Report //
89
CRS Australia—People
A priority for CRS Australia over 2009–10 was
ensuring the right staff had the right skills, in
the right place, at the right time. To maximise
outcomes for job seekers, and to deliver effective
and competitive services, work focused on
learning and development for more experienced
rehabilitation consultants, implementing the senior
rehabilitation consultant as a permanent role and
formalising regional leadership teams.
Staff profile
At 30 June 2010 CRS Australia employed
2053 people (including staff on long-term leave).
The number of staff employed by
CRS Australia decreased during the year, with 79
fewer employees at 30 June 2010 than at 30 June
2009. The workforce consisted of 1682 (82 per
cent) ongoing and 1209 (59 per cent) full-time
staff. See Appendix H—Staffing Statistics on
page 207.
Collective agreement
The CRS Australia Collective Agreement
2008–11 commenced on 15 January 2009.
Features of the collective agreement included:
• 4.25 per cent salary increase on
5 December 2009
• one-off productivity payment equal to
one per cent of base salary in June 2010
on achieving minimum revenue to salary
ratio of 1.75:1
• annual salary progression and reward
payment of up to six per cent linked to
performance that exceeds expectations and
funded through productivity efficiencies
• use of flexibility clauses and individual section
24(1) determinations to supplement wages
and conditions by agreement.
As at 30 June 2010, 2044 staff were employed
under the CRS Australia Collective Agreement
2008–11. Forty-four employees had some
terms and conditions of the agreement
enhanced by individual determinations under
section 24(1) of the Public Service Act 1999 or
individual determination under the agreement’s
flexibility clause.
Individual agreements
Since January 2008, in accordance with
Australian Government policy, CRS Australia
has been progressively offering staff the
opportunity to move off Australian Workplace
Agreements (AWAs). At 30 June 2009 nine
staff were employed on AWAs. In 2009–10
four employees terminated their AWAs by
agreement, one resigned, and four remain on
AWAs at 30 June 2010.
Productivity
The collective agreement provided for a
one-off payment in 2010 equal to one per cent
of base salary, conditional on a minimum revenue
to salary ratio of 1.75:1 productivity measure
being achieved (at the national level) at the end
of May 2010. This ratio measured the efficiency
of staff resources and their effectiveness in
generating revenues. CRS Australia met this
Table 9—CRS Australia performance pay for 2008–09, paid in 2009–10
Level
APS levels 1–6
Executive level/SES
1
Total
Staff eligible
Staff paid
Amount paid ($)
Average ($)
1555
323
903 153
2796
133
48
251 377
5237
1688
371
1 154 530
3112
APS = Australian Public Service
1
Senior Executive Services (SES) have been combined with executive level to ensure that payents to individuals cannot be identified.
90
// CHAPTER 5: Management and accountability
productivity measure, achieving a ratio of
1.76:1 and the one-off one per cent payment
was made to employees.
Senior executive remuneration
Senior executive remuneration is determined by
the Secretary and reflects work value, individual
capability, contribution and performance.
Relevant market factors and the organisational
performance of CRS Australia are also taken
into account. Remuneration is reviewed at the
end of the annual performance cycle.
Conditions of employment for all senior executives
are contained in common law contracts. These
arrangements typically provide for salary,
superannuation, access to a motor vehicle
or equivalent cash out and other applicable
allowances and benefits. Contracts will be replaced
by section 24(1) determinations from 1 July 2010.
Performance management and pay
The Performance Achievement System aligned
each employee’s behaviour, development
and results with the organisational and team
objectives critical to the achievement of
CRS Australia’s goals.
The collective agreement introduced a fourpoint rating scale to replace a previous threepoint rating scale, and only staff who achieved
the top rating of ‘above expectations’ were
eligible for performance pay.
The new four-point scale better identifies staff
who need additional training and support to be
fully effective.
See Table 9 on page 90 for performance
bonuses paid in 2009–10 for performance
during 2008–09.
Attracting and retaining staff
The external employment market and improved
salary and conditions that flowed from the
CRS Australia Collective Agreement 2008–11
has seen the reduction in staff turnover
continue from 11.66 per cent in 2008–09 to
10.96 per cent in 2009–10.
The collective agreement acknowledges the
need for flexibility for the aging workforce.
Options being offered to retain this group
include flexible working arrangements,
purchased leave and adjusting the OH&S
environment to suit their needs.
As part of the work to finalise regional
leadership teams, senior rehabilitation
consultants were implemented as a permanent
pay point. An extensive selection process was
undertaken nationally to ensure consistency
in the appointment of suitably qualified and
experienced staff. As some took on a team
leadership role as well as a professional
leadership role, an extensive training program
to support them in their new role was
undertaken during the year.
Revised recruitment advertising guidelines
resulted in savings in advertising costs. Online
recruitment sites are a preferred source for
many applicants and are significantly cheaper
than press advertisements.
CRS Australia has an active alumnus and
publishes a bi-annual newsletter to maintain
contact with ex-staff. This enables alumni to keep
abreast of changes and future job vacancies.
CRS Australia conducted an employee opinion
survey in February 2010. Results indicated
improvements in all but one category compared
to the 2008 results. In 2009–10, 95 per cent of
respondents felt their job made a worthwhile
contribution (an increase of two percentage
points), with an increasing majority indicating
satisfaction with their job (an increase of eight
percentage points over the previous survey).
Communications with staff
Results of the 2008 employee survey identified
communication as needing improvement.
In 2009–10 the executive implemented
strategies to improve communication, including
regular senior management visits to units,
vertical slice meetings with staff across the
organisation, a General Manager Bulletin
and SBG Managers News following Strategic
Department of Human Services Annual Report //
91
Business Group meetings. This focus by the
executive has seen an improvement in this
category of eight percentage points.
Workplace giving
Ninety per cent of staff fully support the values
for which CRS Australia stands. Its service
commitment includes taking pride in making a
difference in job seekers’ lives and communities.
To help achieve this, CRS Australia facilitates
a workplace giving scheme, through which
staff can donate to 12 selected charities.
These charities were selected by staff through
a nomination process. In 2009–10 staff
contributed over $32 500.
OH&S: Promoting a safe and
supportive workplace
OH&S principles are included in the
CRS Australia Strategic Plan 2009–2012 and are
a standard requirement in business plans.
CRS Australia successfully implemented Health
and Safety Management Arrangements (HSMA)
as required by amendments to the Occupational
Health and Safety Act 1991 (OH&S Act).
The HSMA, which were developed in
consultation with staff, provide a comprehensive
safety management system. A review began in
May 2010 with feedback being sought from
staff. Recommendations will be available in
late 2010.
During 2009–10 CRS Australia maintained 23
designated work groups and ensured all health
and safety representatives received the required
training.
The National Health and Safety Committee met
approximately every six weeks. The committee
reports against identified actions, including a
research project on body stressing, improving
communication channels for health and safety
representatives and reviewing the roll out of
major projects from an OH&S perspective.
92
// CHAPTER 5: Management and accountability
There were no formal Comcare investigations
in 2009–10.
Training for managers was conducted in relation
to the Safety, Rehabilitation and Compensation
Act 1988 (SRC Act) and the OH&S Act.
Strategies to address better practice early
intervention and rehabilitation for CRS Australia
employees were shared.
A review of the Comcare guide for employers
on Prevention and management of customer
aggression was undertaken and CRS Australia’s
approach was found to be consistent with the
guidelines. Further information and support
tools were provided to managers and staff.
Early intervention strategies such as referrals
for short-term counselling, physiotherapy
and independent medical assessments were
provided to help staff remain at or return to
work. Ergonomic equipment, furniture and
software were provided where required.
For detailed information on CRS Australia’s
OH&S arrangements and performance, see
Appendix A—Occupational Health and Safety
on page 178.
Learning and development
Learning and development programs continued
to be aligned with required capability. During
2009–10 activities focused on supporting
service delivery staff transition to the new
Disability Employment Services program.
This included training for staff and updating
core induction courses around case
management, job seeking and postplacement support for job seekers.
There was particular focus on developing
senior rehabilitation consultants’ business and
leadership skills to align with the formalisation
of regional leadership teams.
A Learning Pathway and Commencement
Plan was developed to support managers.
Ongoing communication around the online
leadership resource Harvard Manage Mentor,
helped to ensure steady take-up rates of online
leadership training.
To support regions in developing strong
employer relationships, training was released for
the employer relationship database and three
levels of training were developed for employer
sales and relationship management.
The release of a self-paced resilience course,
available to all staff, was well timed given the
amount of change in 2009–10.
Because CRS Australia is a geographically
dispersed organisation it used distance-based
learning solutions and flexible scheduling
options to ensure a good uptake of regional
and divisional requests for training.
In total 3454 days of internal learning and
development activities were provided to staff.
$2.134 million was spent on external training
and conference attendance.
Workplace diversity
The Workplace Diversity Plan and CRS Australia’s
commitment to fostering a diverse workforce was
promoted on the intranet. A range of initiatives
were also encouraged including promoting:
• National Reconciliation Week and
CRS Australia’s Reconciliation Action Plan
• NAIDOC Week and involvement in NAIDOC
activities
• relevant elearning resources such as
'Inclusion=Innovation'
• development activities aimed at increasing
mental health awareness
• assistance with vacation care options.
Flexible working conditions continued to
enable staff to balance work with family and
personal lives. This was validated by a strong
positive result in the employee opinion survey;
84 per cent of respondents agreed that work
schedules allow sufficient flexibility to meet
personal/family needs. Forty-one per cent of
staff are part-time employees.
CRS Australia continued to implement the
Indigenous Employment Strategy 2006–2009
and the number of Indigenous employees
continued to increase modestly. Four cadets
were engaged at the beginning of 2010 making
a total of six at end June 2010.
A new Reconciliation Action Plan (RAP) was
developed in consultation with Aboriginal
and Torres Strait Islander, as well as nonAboriginal and Torres Strait Islander staff and
Reconciliation Australia. Among other aims, the
plan committed to the continuation of the RAP
working group, consisting of Aboriginal and
Torres Strait Islander, as well as non-Aboriginal
and Torres Strait Islander peoples, to advise
on developing and implementing strategies
to increase the recruitment and retention of
Indigenous Australians. The new plan commits
CRS Australia to the implementation of a range
of measurable activities aimed at closing the
gap in disadvantage between Indigenous and
non-Indigenous Australians.
Department of Human
Services—Resources
Procurement
Purchasing activity and contract
management
The department’s procurement activities
are carried out in accordance with the
Commonwealth Procurement Guidelines.
The department’s Chief Executive’s
Instructions and related policy and procedural
publications support the guidelines and are
regularly reviewed for consistency with the
Commonwealth procurement framework.
Since January 2006 the department has joined
with portfolio agencies in procurement activity.
This has taken the form of either a joint
approach to the market (clustering) or through
contractual arrangements containing provisions
allowing access by other portfolio agencies
(often referred to as piggybacking). Clustering
and piggybacking have led to reduced tendering
Department of Human Services Annual Report //
93
costs and savings through economies of scale.
Similarly, The department has established
clustering and piggybacking arrangements
with other Australian Public Service agencies
wherever it has been practical to do so.
During 2009–10 the department continued
to provide specialist procurement advice,
assistance, training and resources to staff to
ensure procurement activities were carried
out in accordance with the procurement
guidelines.
The department has also contributed to a
number of whole-of-government coordinated
procurement initiatives led by the Department
of Finance and Deregulation.
Consultants
The department complies with the information
published in the Department of Finance and
Deregulation’s Financial Management Guidance
No 15: Guidance on Procurement Publishing
Obligations (July 2007) in distinguishing
between consultancy and non-consultancy
contracts for annual reporting purposes.
During 2009–10, 17 new consultancy contracts
were entered into, involving total actual
expenditure of $2 127 127. In addition, one
ongoing consultancy contract was active during
2009–10, involving total actual expenditure of
$113 234 (inclusive of goods and services tax).
Appendix J—Consultancy contracts on page
218 shows all new consultancy contracts let by
the department during 2009–10 with a value
of $10 000 or more.
Table 10 shows total expenditure on consultancy
contracts for the current and previous two
financial years. These are combined figures for
consultancy contracts by the then-termed core
department and the CSP (2007–08) and the
department, including the CSP (2008–09 and
2009–10).
94
// CHAPTER 5: Management and accountability
Table 10—Expenditure on consultancy services
2007–08 to 2009–10
Financial year
Total consultancy
services expenditure ($)
2007–08
6 288 621
2008–09
1 293 101
2009–10
2 240 361
Annual reports contain information about actual
expenditure on contracts and consultancies.
Information on the value of contracts and
consultancies is available on the AusTender
website at www.tenders.gov.au.
Australian National Audit Office
access clauses
The department let seven contracts during
2009–10 that were over $100 000 (inclusive
of goods and services tax) that did not provide
the Auditor-General with appropriate access to
a contractor’s premises. Table 11 on page 95
provides details of these.
Exempt contracts
During the year the department had no
contracts or standing offers that were exempted
from publication on AusTender.
Property management
The department—excluding CRS Australia—
maintains a leased portfolio of 19 sites
occupying 71 648m2. The property portfolio
comprises three sites in the ACT, with the
remainder located across other Australian
capital cities and regional areas.
Following an open market tender process, a
new property services contract began in July
2009 with Centrelink’s incumbent provider,
Jones Lang LaSalle (JLL). This new contract also
includes the Department of Human Services/CSP
and Medicare Australia with Centrelink as the
lead agency.
In 2009–10 office lease and associated costs for
the department were $41.1 million.
Management of the property portfolio focused
on providing accommodation to meet the needs
of a changing service delivery environment.
The property and environment branches
of Centrelink, Medicare Australia and the
department have been integrated into two
branches to provide support to the property
elements of the portfolio’s service delivery
reform program.
In an ongoing program to improve service
delivery, customer and staff amenity, and
enhance the image and presentation of the
DHS service delivery network, six DHS sites
were partially refurbished or relocated to new
premises. In total, $10.9 million was spent on
capital improvements to department sites.
See page 97 for details on CRS Australia
property management.
CRS Australia—
Resources
One of the main challenges for CRS Australia
managers is managing over 2000 staff located
in over 180 primarily small service delivery
offices across the nation, with a further 140
visiting sites. Demand for services in local
areas fluctuates, depending on economic and
demographic conditions.
Financial management
CRS Australia adopts a careful balance of
fixed and variable resourcing strategies which
means that service delivery units can respond to
peaks and troughs in demand while ensuring
the overall financial outcome for CRS Australia
is positive.
In 2009–10 CRS Australia made a surplus of
$2.230 million before accounting adjustments
not directly related to operational performance.
Table 11—Contracts over $100 000 (inclusive of GST) that did not provide for the
Auditor-General to have access to the contractor’s premises
Name of contractor
Purpose
Value ($)
400 George Street (Qld)
Pty Ltd
Property lease for Brisbane
Premises
128 885 411
Property leases do not
contain access clause
Knight Frank Pty Ltd
Property lease for Adelaide
Premises
3 103 651
Property leases do not
contain access clauses
ISIS Projects Pty Ltd
Construction works for
accommodation
1 857 333
Construction contract.
Access to building site only
ISIS Projects
(Queensland) Pty Ltd
Fitout and construction
6 050 000
Construction contract.
Access to building site only
Primewest Pty Ltd
Property lease for Perth
premises (short-term lease)
2 611 185
Property leases do not
contain access clauses
Primewest Pty Ltd
Property lease for Perth
premises (long-term lease)
27 389 255
Property leases do not
contain access clauses
SMI Group Pty Ltd
Fitout and construction
670 802
Reason why clause not
included
Construction contract.
Access to building site only
Department of Human Services Annual Report //
95
Table 12—Summary of CRS Australia consultancy services contracts 2007–08 to 2009–10
2007–08
2008–09
2009–10
13
9
6
$257 054
$127 499
$185 720
13
9
1
Total actual expenditure on ongoing contracts
$602 733
$341 301
$79 625
Number of contracts exempt from AusTender
Nil
Nil
Nil
Number of new contracts let
Total actual expenditure on new contracts
Number of active ongoing contracts
Note: Expenditure totals include good and services tax and have been rounded to the nearest dollar.
Procurement
Purchasing activity and contract
management
Purchasing decisions comply with the
Commonwealth Procurement Guidelines and
CRS Australia purchasing policies and principles.
Most purchases relating to job seeker programs
cost less than $1000. These must be outlined in
the specific job seeker’s Employment Pathway
or Program Plan as necessary to achieve a
successful return to work.
CRS Australia employs external service providers
(contractors) primarily to provide allied health
and other vocational rehabilitation and training
interventions on a needs basis across Australia.
These providers are critical to meeting surges
in demand and to support the specific needs
of individual job seekers.
Consultants and services contractors
CRS Australia complies with the information
published in the Department of Finance and
Deregulation’s Financial Management Guidance
No 15: Guidance on Procurement Publishing
Obligations (July 2007) in distinguishing
between consultancy and non-consultancy
contracts for annual reporting purposes.
96
// CHAPTER 5: Management and accountability
In 2009–10 CRS Australia engaged consultants
to provide a range of specialist skills that were
not available in-house or where an external
independent and impartial view was required.
Six new consultancy contracts were entered
into, involving total actual expenditure
of $185 720. In addition, one ongoing
consultancy contract was active at the
beginning of the financial year, involving
total actual expenditure of $79 625.
Total actual expenditure for 2009–10
was $265 345.
Table 12 shows expenditure on consultancy
service contracts for 2009–10 and the
preceding two years.
See Appendix J—Consultancy contracts on page
218 for all new consultancy contracts let by
CRS Australia during 2009–10 with a value of
$10 000 or more.
Annual reports contain information about actual
expenditure on contracts for consultancies.
Information on the value of contracts and
consultancies is available on the AusTender
website at www.tenders.gov.au.
Australian National Audit Office
access clauses
CRS Australia has included ANAO access clauses
in all of its contracts, along with provisions in
relation to small businesses and sole traders.
Exempt contracts
CRS Australia did not have any contracts
that were exempted from listing on the
AusTender website.
Property management
CRS Australia’s national service delivery network
consists of more than 180 service delivery
offices of which 35 per cent are located in
rural and remote Australia. Business support
operations are located within the national office
in Canberra and divisional offices in Sydney,
Melbourne, Brisbane, Perth and Adelaide.
Service delivery offices are located conveniently
for clients, close to Centrelink offices, transport
systems and other community facilities.
In 2009–10, 17 offices were relocated within
the communities they serve and 66 leases on
existing tenancies were renewed.
Knowledge management
The Networks of Excellence (NoE) are a knowledge
management initiative that drives innovation and
improved performance across all aspects of service
delivery to job seekers and business management
processes. During 2009–10 there were five NoEs
working on a range of key projects that aligned
with CRS Australia’s Strategic and National
Business Plan.
To improve knowledge sharing throughout
the organisation, CRS Australia began the
roll out of Office Communicator software
nationally in early 2010. This ICT application
supports greater sharing of knowledge across
the organisation through instant messaging
and document sharing. Video conferencing is
a feature being explored.
In 2009–10 CRS Australia knowledge
management strategies also included:
• the quality assurance and improvement
program, which integrated the elements
of best-practice quality models, including
maintaining quality service delivery practices
and contributing to the continuous
improvement cycle
• the CRS Australia intranet, which gave
access to policy, practices and procedures.
As part of ongoing continuous improvement,
the intranet was revised and streamlined to
reflect current and pertinent information
• an organisational library to support case
management, organisational research,
and NoEs
• an active program of research, evaluation
and innovation
• learning and development strategies and
coaching strategies
• implementation of the Records Authority
issued by the National Archives of Australia
and Business Classification Scheme for record
keeping, allowing for accurate and descriptive
file titling for newly created files.
Asset management
Decisions in relation to asset management
were driven by operational requirements and
considerations such as life-cycle costs, benefits
and risks.
CRS Australia’s assets largely comprise leasehold
improvements, office equipment and computer
software. These assets are locally managed
and replaced or upgraded based on business
requirements. The centrally controlled asset
register is updated as assets are purchased,
disposed of or retired. An annual centrally
managed stock-take checks that all asset
disposals and retirements have been recorded.
This year all assets were revalued
by professional valuers.
Department of Human Services Annual Report //
97
Financial reporting
Chapter 6
Financial overview
Expenses
This section provides a summary of the
department’s financial performance in 2009–10.
Results are shown in the audited financial
statements and this summary should be read in
conjunction with those statements.
The department’s expenses in 2009–10 totalled
$741.2 million compared to $688.0 million in
2008–09.
Departmental financial
performance
In 2009–10 the department had an operating
surplus of $26.1 million, 3.4 per cent of the
income available to it. The result was more than
the operating surplus of $4.8 million forecast
for 2009–10 in the Portfolio Budget Statements
2010–11, predominantly due to an $8.0 million
underspend in the Compensation for Detriment
caused by Defective Administration Scheme
(CDDA), CRS Australia surplus of $7.0 million,
and to delayed activities.
The department incurred:
• employee expenses of $482.1 million
• supplier expenses of $222.6 million
• depreciation and other expenses of
$36.4 million
• income tax equivalent expenses of
$0.1 million for CRS Australia.
Table 13 shows that in 2009–10, departmental
expenses increased by 7.7 per cent compared to
the previous year. Figure 14 on page 101 shows
a comparison of departmental expenses over
the past three years.
Table 13—Departmental income and expenses,
2008–09 and 2009–10
Statement of financial
performance
Income
In 2009–10 the department received total
income of $767.3 million ($697.9 million in
2008–09). Of the $767.3 million, $209.8 million
was received as other income predominantly by
CRS Australia.
Table 13 shows that in 2009–10 departmental
income increased by 9.9 per cent compared
to the previous year, predominantly due to
increased child support activity. Figure 14 on
page 101 shows a comparison of income over
the past three years.
100 // CHAPTER 6: Financial reporting
2008–09
($m)
2009–10
($m)
Change
(%)
Income
697.9
767.3
9.9
Expenses
688.0
741.2
7.7
Figure 14—Departmental income and expenses, 2007–08 to 2009–10
2009–10
2008–09
2007–08
0
100
200
300
$ millions
400
EXPENSES
500
600
700
Statement of financial position
Assets
Equity
At 30 June 2010, the department’s assets
totalled $362.7 million ($329.6 million at 30
June 2009).
The department’s total equity at 30 June 2010
was $182.0 million, representing an increase of
$23.3 million over the 30 June 2009 figure of
$158.7 million. This was predominantly due to
the surplus result for the financial year.
800
INCOME
Table 14 on page 102 shows that assets
increased by 10.0 per cent in 2009–10
compared to the previous year and Figure 15
on page 102 shows the trend in assets over the
past three years. The increase was associated
with leasehold improvements and increased
appropriation receivable due to delayed
activities.
Department of Human Services Annual Report //
101
Liabilities
Administered items
The department had total liabilities of
$180.7 million at 30 June 2010 ($170.9 million
at 30 June 2009). Table 14 shows that liabilities
increased by 5.7 per cent in 2009–10 compared
to the previous year. This was due in part to
higher operating lease liabilities and an increase
in staff leave provisions. Figure 15 shows the
trend in liabilities over the past three years.
The department transfers child support
payments between separated parents for
the support of their children and receives
appropriations for expenses incurred in
delivering the Income Management Card
program.
Table 14—Departmental assets and liabilities,
2008–09 and 2009–10
2008–09
($m)
2009–10
($m)
Change
(%)
Assets
329.6
362.7
10.0
Liabilities
170.9
180.7
5.7
The department also receives dividends and
competitive neutrality payments on behalf of
the Australian Government from Australian
Hearing. On 1 July 2009, Health Services
Australia paid a final dividend of $27.0 million
relating to its transfer to Medibank Private. All
administered receipts are transferred directly to
the Official Public Account.
The Job Capacity Assessments program was
transferred to the Department of Education,
Employment and Workplace Relations on
1 July 2009.
Figure 15—Departmental assets and liabilities, 2007–08 to 2009–10
2009–10
2008–09
2007–08
0
50
100
$ millions
102 // CHAPTER 6: Financial reporting
150
200
LIABILITIES
250
ASSETS
300
350
400
Financial statements
Department of Human Services Annual Report //
103
104 // CHAPTER 6: Financial statements
Department of Human Services Annual Report //
105
DEPARTMENT OF HUMAN SERVICES
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2010
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Write-down and impairment of assets
Finance costs
Losses from asset sales
Other
Total Expenses
LESS
OWN-SOURCE INCOME
Own-source revenue
Rendering of services
Rental income
Other revenue
Total own-source revenue
Gains
Reversals of previous asset write-downs and impairments
Other
Total gains
Total own-source income
Notes
2010
$’000
2009
$’000
4A
4B
4C
4D
4E
4F
4G
482,080
222,634
30,701
2,926
345
116
2,293
741,095
426,954
225,207
27,937
140
304
1,121
5,766
687,429
5A
5B
5C
201,383
1,530
2,156
205,069
190,160
1,604
509
192,273
5D
5E
357
4,353
4,710
209,779
1,434
1,434
193,707
531,316
493,722
Net cost of services
Revenue from Government
Surplus before income tax
5F
557,508
26,192
504,237
10,515
Income tax expense
Surplus after income tax
6
90
26,102
550
9,965
26,102
9,965
3,578
3,578
1,164
1,164
29,680
11,129
Surplus attributable to the Australian Government
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation reserves
Total other comprehensive income before income tax
Total comprehensive income attributable to the
Australian Government
The above statement should be read in conjunction with the accompanying notes.
106 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
BALANCE SHEET
as at 30 June 2010
ASSETS
Financial Assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total financial assets
Non-Financial Assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
Total non-financial assets
Total Assets
LIABILITIES
Payables
Suppliers
Tax liabilities
Other payables
Lease incentives
Total payables
Interest Bearing Liabilities
Leases
Total interest bearing liabilities
Provisions
Employee provisions
Other provisions
Total provisions
Total Liabilities
Net Assets
EQUITY
Contributed equity
Reserves
Retained surplus
Total Equity
2010
$’000
2009
$’000
7A
7B
7C
9,551
250,949
1,066
261,566
7,190
230,846
1,347
239,383
8A
8B
8D
8E
52,354
11,748
28,807
8,181
101,090
362,656
42,324
9,395
33,672
4,786
90,177
329,560
9A
9B
9C
9D
40,139
376
11,810
12,337
64,662
37,440
1,939
9,886
10,396
59,661
10
3,538
3,538
4,331
4,331
105,588
6,915
112,503
180,703
181,953
98,557
8,339
106,896
170,888
158,672
90,426
5,832
85,695
181,953
96,825
3,746
58,101
158,672
Notes
11A
11B
The above statement should be read in conjunction with the accompanying notes.
Department of Human Services Annual Report //
107
108 // CHAPTER 6: Financial statements
1
2
(1,492)
5,832
5,832
-
-
3,578
3,578
3,746
3,746
3,746
3,746
-
-
1,164
1,164
2,582
2,582
Asset Revaluation
Reserves
2010
2009
$’000
$’000
90,426
90,426
(600)
(6,399)
(5,799)
-
-
96,825
96,825
96,825
96,825
7,164
(51)
6,286
(827)
-
-
90,539
90,539
Contributed
Equity/Capital
2010
2009
$’000
$’000
181,953
181,953
(600)
(6,399)
(5,799)
3,578
26,102
29,680
158,672
158,672
2010
$’000
158,672
158,672
7,164
(51)
6,286
(827)
9,965
11,129
1,164
141,364
(107)
141,257
2009
$’000
Total Equity
The balance carried forward for 2009 Retained Earnings incorporates $4.765m adjustment made to the 2008-09 comparative balances as set out in Note 1.19: Comparative Year Disclosures.
The Department reclassified $1.492m from the asset revaluation reserve to account for previous revaluation decrements.
58,101
58,101
-
-
1,492
85,695
85,695
-
-
9,965
9,965
48,243
(107)
48,136
2009
$’000
-
-
26,102
26,102
58,101
58,101
2010
$’000
Retained Earnings
The above statement should be read in conjunction with the accompanying notes.
2
1
Transfers between equity components
Closing balance as at 30 June
Closing balance attributable to the Australian Government
Transactions with owners
Distributions to owners
Reduction of appropriation
Contributions by owners
Appropriation (equity injection)
Restructuring
Sub-total transactions with owners
Surplus for the period
Total comprehensive income
1
Comprehensive income
Other comprehensive income
Balance carried forward from previous period
Adjustment for errors
Adjustment for changes in accounting policies
Adjusted opening balance
Opening balance
DEPARTMENT OF HUMAN SERVICES
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2010
DEPARTMENT OF HUMAN SERVICES
CASH FLOW STATEMENT
for the year ended 30 June 2010
Notes
OPERATING ACTIVITIES
Cash received
Goods and services
Appropriations
2010
$’000
2009
$’000
238,054
524,588
206,216
483,209
Transfers from Official Public Account1
Net GST received
Other cash received
Total cash received
233,104
6,882
4,650
1,007,278
2,250
3,841
695,516
Cash used
Employees
Suppliers
Competitive neutrality payments
Transfers to the Official Public Account1
Total cash used
466,224
263,485
1,939
235,209
966,857
415,779
243,890
359
14,400
674,428
40,421
21,088
21
21
58
58
25,336
9,595
34,931
14,958
15,974
30,932
(34,910)
(30,874)
-
7,164
7,164
3,150
3,150
2,360
2,360
(3,150)
4,804
2,361
7,190
9,551
(4,982)
12,172
7,190
Net cash flows from operating activities
13
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment
Total cash received
Cash used
Purchase of property, plant and equipment
Purchase of intangibles
Total cash used
Net cash flows used by investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Cash used
Payment of finance lease liabilities
Total cash used
Net cash flows used by financing activities
Net increase in cash held
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
7A
1
Relevant agency receipts are now deposited in the Official Public Account and redrawn as required. These items are disclosed in the
financial statements in accordance with Finance Circular: 2008/07 and the Finance Minister's Orders: 101.53P.
The above statement should be read in conjunction with the accompanying notes.
Department of Human Services Annual Report //
109
DEPARTMENT OF HUMAN SERVICES
SCHEDULE OF COMMITMENTS
as at 30 June 2010
2010
$’000
2009
$’000
2,972
29,657
32,629
5,461
36,041
41,502
1,689
1,689
1,379
1,379
Other commitments
Operating leases²
Other commitments
Total other commitments
223,047
98,029
321,076
323,870
70,634
394,504
Net commitments by type
290,136
354,381
2,883
89
2,972
1,136
2,385
3,521
10,985
12,136
6,536
29,657
11,535
16,002
10,444
37,981
1,210
479
1,689
844
535
1,379
BY TYPE
Commitments receivable
Operating lease receivable
GST recoverable on commitments
Total commitments receivable
Commitments payable
Capital commitments
Property, plant and equipment¹
Total capital commitments
BY MATURITY
Commitments receivable
Operating lease income
One year or less
From one to five years
Total operating lease income
Other commitments receivable
One year or less
From one to five years
Over five years
Total other commitments receivable
Commitments payable
Capital commitments
One year or less
From one to five years
Total capital commitments
110 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
SCHEDULE OF COMMITMENTS (continued)
as at 30 June 2010
2010
$’000
2009
$’000
Operating lease commitments
One year or less
From one to five years
Over five years
Total operating lease commitments
44,917
109,097
69,033
223,047
60,706
151,189
111,975
323,870
Other Commitments
One year or less
From one to five years
Over five years
Total other commitments
Net commitments by maturity
71,363
23,804
2,862
98,029
290,136
43,626
24,100
2,908
70,634
354,381
NB: Commitments are GST inclusive where relevant.
1
2
Property, plant and equipment commitments are primarily contracts for purchases of furniture and fittings for leased premises.
Operating leases included are effectively non-cancellable and comprise:
Nature of lease
Leases for office
accommodation
General description of leasing arrangement
The Department has a range of long and short term leases with fixed dates for
expiry. Lease payments are subject to the terms and conditions of the lease.
Lease payments are subject to various clauses, some of which include fixed
annual increases, adjustments for market rent reviews or Consumer Price Index
(CPI).
Agreements for the
provision of motor
vehicles
No contingent rentals exist. There are no renewal or purchase options available
to the Department for motor vehicle leases.
The above schedule should be read in conjunction with the accompanying notes.
.
Department of Human Services Annual Report //
111
112 // CHAPTER 6: Financial statements
Other purchases of $4.565m represents leasehold fitout funded by lease incentives.
2,614
2,614
21,180
Additions recognised in 2008-09 - to be funded in future years
Make-good
Total additions to be funded in future years
Total asset additions
By purchase - appropriation equity
By purchase - appropriation ordinary annual services
By finance lease
Internally developed
Total additions funded in the current year
949
949
9,362
Leasehold
improvements
$'000
6,215
2,198
8,413
The following non-financial non-current assets were added in 2008-09 (refer to Notes 8C and 8F):
1
Additions recognised in 2009-10 - to be funded in future years
Make-good
Total additions to be funded in future years
Total asset additions
By purchase - appropriation ordinary annual services
By purchase - other1
By finance lease
Internally developed
Total additions funded in the current year
Leasehold
improvements
$'000
14,001
4,565
18,566
The following non-financial non-current assets were added in 2009-10 (refer to Notes 8C and 8F):
DEPARTMENT OF HUMAN SERVICES
SCHEDULE OF ASSET ADDITIONS
for the year ended 30 June 2010
8,398
Other property,
plant &
equipment
$'000
2,151
6,247
8,398
4,993
Other property,
plant &
equipment
$'000
4,750
243
4,993
15,974
Intangibles
$'000
3,989
11,985
15,974
11,430
Intangibles
$'000
2,329
9,101
11,430
949
949
33,734
Total
$'000
6,215
8,338
6,247
11,985
32,785
2,614
2,614
37,603
Total
$'000
21,080
4,565
243
9,101
34,989
DEPARTMENT OF HUMAN SERVICES
SCHEDULE OF ADMINISTERED ITEMS
Income administered on behalf of Government
for the year ended 30 June 2010
Revenue
Fees and fines
Child support revenue
Competitive neutrality revenue
Dividends
Other sources of revenue
Total revenues administered on behalf of Government
Notes
18
18
18
18
18
Total income administered on behalf of Government
2010
$’000
2009
$’000
47,802
1,187,847
8,867
5,608
2,140
1,252,264
59,859
1,131,932
9,528
35,118
5,570
1,242,007
1,252,264
1,242,007
69,191
3,207
1,157,508
1,229,906
85,836
154
19
1,093,588
160,201
1,339,798
Expenses administered on behalf of Government
for the year ended 30 June 2010
Write-down and impairment of assets
Income management card payments
Payments to Australian Hearing
Child support payments
Job capacity assessment payments
Total expenses administered on behalf of Government
19
19
19
19
19
This schedule should be read in conjunction with the accompanying notes.
Department of Human Services Annual Report //
113
DEPARTMENT OF HUMAN SERVICES
SCHEDULE OF ADMINISTERED ITEMS
Assets administered on behalf of Government
as at 30 June 2010
Financial assets
Cash and cash equivalents
Receivables
Investments
Total financial assets
Notes
20
20
20
Total assets administered on behalf of Government
2010
$’000
2009
$’000
248
632,245
30,741
663,234
48
604,924
27,002
631,974
663,234
631,974
Liabilities administered on behalf of Government
as at 30 June 2010
Payables
Suppliers
Payments received in advance
Total payables
21
21
27,381
15,025
42,406
28,661
27,735
56,396
Provisions
Child support provision
Total provisions
21
612,479
612,479
549,945
549,945
654,885
606,341
Total liabilities administered on behalf of Government
This schedule should be read in conjunction with the accompanying notes.
114 // CHAPTER 6: Financial statements
.
DEPARTMENT OF HUMAN SERVICES
SCHEDULE OF ADMINISTERED ITEMS
Notes
Administered Cash Flows
for the year ended 30 June 2010
2010
$’000
2009
$’000
OPERATING ACTIVITIES
Cash received
Fees and fines
Child support receipts
Net GST received
Departure prohibition order receipts
Dividends
Competitive neutrality receipts
Other
Total cash received
8,522
1,086,137
3,197
32,796
11,245
5,570
1,147,467
10,283
1,064,465
14,459
48
12,488
5,795
1,107,538
Cash used
Payments to Australian Hearing
Income management card payments
Departure prohibition order returns
Child support payments
Job capacity assessment payments
Total cash used
2,774
48
1,098,744
1,101,566
19
154
1,060,382
178,405
1,238,960
Net cash flows from or (used by) operating activities
45,901
(131,422)
Net increase (decrease) in cash held
45,901
(131,422)
48
3
1,030,504
71,035
275
1,101,814
987,952
234,819
16,189
1,238,960
(1,018,175)
(1,619)
(127,721)
(1,147,515)
(1,028,617)
(3,941)
(74,935)
(1,107,493)
248
48
Cash and cash equivalents at the beginning of the reporting period
Cash from Official Public Account for:
Special accounts
Appropriations
Other
Total cash from the Official Public Account
Cash to Official Public Account for:
Special accounts
Appropriations
Other
Total cash to the Official Public Account
Cash and cash equivalents at the end of the reporting period
20
This schedule should be read in conjunction with the accompanying notes.
Department of Human Services Annual Report //
115
DEPARTMENT OF HUMAN SERVICES
SCHEDULE OF COMMITMENTS
Administered commitments
as at 30 June 2010
2010
$’000
2009
$’000
BY TYPE
Commitments receivable
GST recoverable on commitments
Total commitments receivable
1,024
1,024
277
277
Commitments payable
Other commitments
Other commitments¹
Total other commitments
11,261
11,261
3,047
3,047
Net commitments by type
10,237
2,770
248
776
1,024
277
277
Commitments payable
Other commitments
One year or less
From one to five years
Total other commitments
2,724
8,537
11,261
3,047
3,047
Net commitments by maturity
10,237
2,770
BY MATURITY
Commitments receivable
Other commitments receivable
One year or less
From one to five years
Total other commitments receivable
NB: Commitments are GST inclusive where relevant.
1
Other commitments relate to contractual agreements where the contractor has yet to provide the service required under the
agreement.
The above schedule should be read in conjunction with the accompanying notes.
116 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
SCHEDULE OF CONTINGENCIES
Administered Contingencies
as at 30 June 2010
2010
$’000
Administered contingent liabilities
Claims for damages or costs
Total administered contingent liabilities
51
51
2009
$’000
230
230
Details of each class of contingent liability in the above table are disclosed
in Note 23: Administered Contingent Liabilities.
The above schedule should be read in conjunction with the accompanying notes.
Department of Human Services Annual Report //
117
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
INDEX TO THE NOTES OF THE FINANCIAL STATEMENTS
Note
Description
Note 1
Note 2
Note 3
Note 4
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
Note 12
Note 13
Note 14
Note 15
Note 16
Note 17
Note 18
Note 19
Note 20
Note 21
Note 22
Note 23
Note 24
Note 25
Note 26
Note 27
Note 28
Note 29
Summary of significant accounting policies
Events after the reporting period
Service delivery reform
Expenses
Income
Income tax expense
Financial assets
Non-financial assets
Payables
Interest bearing liabilities
Provisions
Restructuring
Cash flow reconciliation
Contingent liabilities and assets
Senior executive remuneration
Remuneration of auditors
Financial instruments
Income administered on behalf of Government
Expenses administered on behalf of Government
Assets administered on behalf of Government
Liabilities administered on behalf of Government
Administered reconciliation table
Administered contingent liabilities
Administered investments
Administered financial instruments
Appropriations
Special accounts
Compensation and debt relief
Reporting of outcomes
118 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.1
Objectives of the Department of Human Services
The Department of Human Services (the Department) was created on 26 October 2004 to
improve the development, delivery and co-ordination of Government social and health related
services. The Department is responsible for ensuring that the Government is able to achieve
best value for money in service delivery while emphasising continuous service improvement
and a whole-of-government approach.
The Department includes the Child Support program and CRS Australia. The role of the
central Department is to direct, co-ordinate and broker improvements to service delivery. The
Child Support program ensures that children of separated parents receive financial support
from both parents. CRS Australia assists people with an injury or a disability to get a job or
return to work by providing individualised vocational rehabilitation, and helping employers to
keep their workplaces safe.
The Department contributes to one outcome: Informed government decisions on, and access
to, social, health and child support services for Australians through policy development and
advice, and the coordination and delivery of services.
The Department’s activities contributing to this outcome are classified as either departmental
or administered. Departmental activities involve the use of assets, liabilities, revenue and
expenses controlled or incurred by the Department in its own right. Administered activities
involve the management and oversight by the Department, on behalf of the Government, of
items controlled or incurred by the Government.
The continued existence of the Department in its present form, and with its present outcome
programs, is dependent on Government policy and on continuing appropriations by Parliament
for the Department’s administration and programs.
1.2
Basis of Preparation of the Financial Statements
The financial statements are required by section 49 of the Financial Management and
Accountability Act 1997 (FMA Act) and are general purpose financial statements.
The financial statements have been prepared in accordance with:
• Finance Minister’s Orders (FMOs), for reporting periods ending on or after
1 July 2009; and
• Australian Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (AASB) that apply for the reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the
historical cost convention, except for certain assets and liabilities at fair value. Except where
stated, no allowance is made for the effect of changing prices on the results or the financial
position.
The financial statements are presented in Australian dollars and values are rounded to the
nearest thousand dollars unless disclosure of the full amount is specifically required.
Unless alternative treatment is specifically required by an accounting standard or the FMOs,
assets and liabilities are recognised in the balance sheet when and only when it is probable that
future economic benefits will flow to or from the Department and the amounts of the assets or
liabilities can be reliably measured. However, assets and liabilities arising under Agreements
Department of Human Services Annual Report //
119
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Equally Proportionately Unperformed are not recognised unless required by an accounting
standard. Liabilities and assets that are unrecognised are reported in the schedule of
commitments and the schedule of contingencies (other than unquantifiable or remote
contingencies, which are reported at Note 14).
Unless alternative treatment is specifically required by an accounting standard, revenues and
expenses are recognised in the statement of comprehensive income when and only when the
flow, consumption or loss of economic benefits has occurred and can be reliably measured.
Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule
of Administered Items and related notes are accounted for on the same basis and using the
same policies as for departmental items, except where otherwise stated at Note 1.20.
1.3
Significant Accounting Judgements and Estimates
In the process of applying the accounting policies listed in this note, the Department has made
the following judgements that have the most significant impact on the amounts recorded in the
financial statements:
• the fair value of land and buildings has been taken to be the market value of similar
properties as determined by an independent valuer. In some instances, the
Department’s buildings are purpose built and may in fact realise more or less in the
market;
• the provision for doubtful debts methodology for the administered child support
receivable and related receivables is based on the segmentation of the child support
receivables balance by risk profile. The majority of debt relates to maintenance debt
for which the Commonwealth does not have any financial exposure as the debt is
owed by the paying parent to the receiving parent and the Child Support program acts
as the intermediary in the transfer of the payments; and
• the administered provision for child support amount is based on the net receivable for
maintenance receipts from non-custodial parents. Amounts collected but not yet paid
are disclosed as payables. The Child Support program acts as the intermediary in the
transfer of these payments which are collected from the non-custodial parent and then
on-paid to the receiving parent.
No accounting assumptions or estimates have been identified that have a significant risk of
causing a material adjustment to carrying amounts of assets and liabilities within the next
accounting period.
1.4
New Australian Accounting Standards
Adoption of new Australian Accounting Standard requirements
No accounting standard has been adopted earlier than the effective date in the current period.
The following new standard was issued prior to signing of the Statement by the Secretary and
Chief Financial Officer and was applicable to the current reporting period:
•
AASB 101 (Reissued) is effective for reporting periods beginning on or after
1 January 2009 and includes requirements to present a statement of comprehensive
income.
Other new and revised standards and interpretations that were applicable to the current
reporting period did not have a financial impact, and are not expected to have a financial
impact on the entity.
120 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Future Australian Accounting Standard requirements
The following new standards, amendments to standards or interpretations have been issued by
the Australian Accounting Standards Board but are effective for future reporting periods.
•
AASB 9 Financial Instruments (AASB 2009-11) will be effective to reporting periods
beginning on or after 1 July 2013 and most significantly will impact impairment
methodology.
Other new and revised standards and interpretations that are applicable to future reporting
periods, and are not expected to have a financial impact on the entity.
1.5
Revenue
Revenues from Government
The Department receives departmental appropriations. Amounts appropriated for
Departmental outputs appropriation for the year (adjusted for any formal additions and
reductions) are recognised as revenue when the Department gains control of the appropriation.
Revenue received by CRS Australia from the Department of Family, Housing, Community
Services and Indigenous Affairs and the Department of Education, Employment and
Workplace Relations for disability services is recognised in full in the year to which the
underlying appropriation relates. These receipts have been classified as non reciprocal in
nature under AASB 1004 Contributions and are therefore payments received in advance are
not treated as unearned income.
Relevant Agency Receipts
Reconciliation of relevant agency receipts as per FMA Regulations 15 and 16 are completed at
the end of each year and receipts identified as non-relevant agency receipts are returned to the
government and recorded as other expense.
Other Revenue
Revenue from the sale of goods is recognised when:
• the risks and rewards of ownership have been transferred to the buyer;
• the seller retains no managerial involvement nor effective control over the goods;
• the revenue and transaction costs incurred can be reliably measured; and
• it is probable that the economic benefits associated with the transaction will flow to
the entity.
Revenue from rendering of services is recognised by reference to the stage of completion of
contracts at the reporting date. The revenue is recognised when:
• the amount of revenue, stage of completion and transaction costs incurred can be
reliably measured; and
• the probable economic benefits associated with the transaction will flow to the entity.
The stage of completion of contracts at the reporting date is determined by reference to the
proportion that costs incurred to date bear to the estimated total costs of the transaction.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal
amounts due less any impairment allowance for bad and doubtful debts. Collectability of debts
is reviewed at the end of the reporting period. Allowances are made when collectability of the
debt is no longer probable.
Department of Human Services Annual Report //
121
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Dividends are recognised when the right to receive payment is established.
Interest revenue is recognised using the effective interest method as set out in AASB 139
Financial Instruments: Recognition and Measurement.
1.6
Gains
Resources Received Free of Charge
Resources received free of charge are recognised as gains when and only when a fair value can
be reliably determined and the services would have been purchased if they had not been
donated. Use of those resources is recognised as an expense.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as
gains at their fair value when the asset qualifies for recognition, unless received from another
Government agency or authority as a consequence of a restructuring of administrative
arrangements (refer to Note 1.7).
Resources received free of charge are recorded as either revenue or gains depending on their
nature (i.e. whether they have been generated in the course of the ordinary activities of the
Department).
Sale of Assets
Gains from disposal of non-current assets are recognised when control of the asset has passed
to the buyer.
1.7
Transactions with the Government as Owner
Equity Injections
Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal
reductions) are recognised directly in contributed equity in that year.
Restructuring of Administrative Arrangements
Net assets received from or relinquished to another Australian Government agency or authority
under a restructuring of administrative arrangements are adjusted at their book value directly
against contributed equity.
Other Distributions to Owners
The FMOs require that distributions to owners be debited to contributed equity unless in the
nature of a dividend.
1.8
Employee Benefits
Liabilities for services rendered by employees are recognised at the reporting date to the extent
that they have not been settled.
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and
termination benefits due within twelve months of end of reporting period are measured at their
nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of
the liability.
122 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Other long-term employee benefits are measured as net total of the present value of the defined
benefit obligation at the end of the reporting period minus the fair value at the end of the
reporting period of plan assets (if any) out of which the obligations are likely to be settled.
Leave
The liability for employee benefits includes provision for annual leave and long service leave.
No provision has been made for sick leave as all sick leave is non-vesting and the average sick
leave taken in future years by employees of the Department is estimated to be less than the
annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated
salary rates that will apply at the time the leave is taken, including the Department’s employer
superannuation contribution rates, to the extent that the leave is likely to be taken during
service rather than paid out on termination.
The liability for long service leave has been determined by reference to the work of an actuary
for the Department as at 31 March 2010. The estimate of the present value of the liability
takes into account attrition rates and pay increases through promotion and inflation.
Superannuation
Staff of the Department are members of the Commonwealth Superannuation Scheme (CSS),
the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap). The
CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a
defined contribution scheme.
The liability for defined benefits is recognised in the financial statements of the Australian
Government and is settled by the Australian Government in due course.
The Department makes employer contributions to the employee superannuation scheme at
rates determined by an actuary to be sufficient to meet the cost to the Government of the
superannuation entitlements of the Department’s employees. The Department accounts for the
contributions as if they were contributions to defined contribution plans.
Where employees have received significant pay increases, the contributions made by the
Department during the year may not cover the full superannuation liability. The Department
has made provision for additional lump sum contributions for the difference between the total
estimated contributions required and those already incurred.
The liability for superannuation recognised as at 30 June 2010 represents outstanding
contributions for the final fortnight of the year.
1.9
Leases
A distinction is made between finance and operating leases. Finance leases effectively transfer
from the lessor to the lessee substantially all the risks and benefits incidental to ownership of
leased non-current assets. An operating lease is a lease that is not a finance lease. In operating
leases, the lessor effectively retains substantially all such risks and benefits.
Where a non-current asset is acquired by means of finance lease, the asset is capitalised at
either the fair value of the lease property or, if lower, the present value of minimum lease
payments at the inception of the contract and a liability is recognised at the same time and for
the same amount.
Department of Human Services Annual Report //
123
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over
the period of the lease. Lease payments are allocated between the principal component and the
interest expense.
Operating lease payments are expensed on a straight line basis which is representative of the
pattern of benefits derived from the leased assets.
Lease incentives provided to the Department to enter into property leases are recognised as
liabilities. Subsequent lease payments are allocated between a reduction of the liability and
property rental expense to effect a spreading of the rental expense in accordance with the
pattern of benefits derived from the rental properties.
The Department makes an immediate allowance for property make-good where required under
lease agreements.
1.10
Borrowing Costs
All borrowing costs are expensed as incurred.
1.11
Cash
Cash includes cash on hand and any deposits held at call with a bank or financial institution.
Cash is recognised at its nominal amount.
1.12
Financial Assets
The Department only has financial assets measured at fair value through profit and loss.
Financial assets are recognised and derecognised upon trade date.
Effective Interest Method
The effective interest method is a method of calculating the amortised cost of a financial asset
and of allocating interest income over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial
asset, or, where appropriate, a shorter period.
Income is recognised on an effective interest rate basis except for financial assets that are
recognised at fair value through profit and loss.
Financial Assets at Fair Value Through Profit or Loss
Financial assets are classified as financial assets at fair value through profit and loss where the
financial assets:
• have been acquired principally for the purpose of selling in the near future;
• are a part of an identified portfolio of financial instruments that the Department
manages together and has a recent actual pattern of short-term profit-taking; or
• are derivatives that are not designated and effective as a hedging instrument.
Assets in this category are classified as current assets.
Financial assets at fair value through profit and loss are stated at fair value, with a resultant
gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss
incorporates any interest earned on the financial asset.
124 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Impairment of Financial Assets
Financial assets are assessed for impairment at the end of each reporting period:
•
•
Financial Assets held at Amortised Cost - If there is objective evidence that an
impairment loss has been incurred for loans and receivables or held to maturity
investments held at amortised cost, the amount of the loss is measured as the
difference between the asset’s carrying amount and the present value of estimated
future cash flows discounted at the asset’s original effective interest rate. The
carrying amount is reduced by way of an allowance account. The loss is recognised
in the statement of comprehensive income.
Financial Assets held at Cost - If there is objective evidence that an impairment loss
has been incurred the amount of the impairment loss is the difference between the
carrying amount of the asset and the present value of the estimated future cash flows
discounted at the current market rate for similar assets.
1.13
Contingent Liabilities and Contingent Assets
Contingent liabilities and contingent assets are not recognised in the balance sheet but are
reported in the relevant schedules and notes. They may arise from uncertainty as to the
existence of a liability or asset, or represent an existing liability or asset in respect of which the
amount cannot be reliably measured. Contingent assets are disclosed when settlement is
probable but not virtually certain, and contingent liabilities are disclosed when settlement is
greater than remote.
1.14
Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition
includes the fair value of assets transferred in exchange and liabilities undertaken. Financial
assets are initially measured at their fair value plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and
revenues at their fair value at the date of acquisition, unless acquired as a consequence of
restructuring of administrative arrangements. In the latter case, assets are initially recognised
as contributions by owners at the amounts at which they were recognised in the transferor
Agency’s accounts immediately prior to the restructuring.
Department of Human Services Annual Report //
125
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
1.15
Property, Plant and Equipment
Asset recognition threshold
Purchases of property, plant and equipment are recognised initially at cost in the Balance
Sheet, except for purchases costing less than $2,000, which are expensed in the year of
acquisition (other than where they are information technology assets).
The initial cost of an asset includes an estimate of the cost of dismantling and removing the
item and restoring the site on which it is located. This is particularly relevant to ‘make-good’
provisions in property leases taken up by the Department where there exists an obligation to
restore the property to its original condition. These costs are included in the value of the
Department’s leasehold improvements with a corresponding provision for the ‘make-good’
taken up.
Leasehold Improvements have a recognition threshold of $10,000, the purchased software
threshold is $25,000 and the Internally Developed Software (IDS) threshold is $200,000. Only
costs directly associated with the design, construction, testing and implementation of the
software are capitalised.
Revaluations
Fair values for each class of asset are determined as shown below:
Asset class
Land
Buildings excluding leasehold
improvements
Leasehold improvements
Plant & equipment
Fair value measured at:
Market selling price
Market selling price
Depreciated replacement cost
Market selling price
Following initial recognition at cost, property plant and equipment are carried at fair value less
subsequent accumulated depreciation and accumulated impairment losses. Valuations are
conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ
materially from the assets’ fair values as at the reporting date. The regularity of independent
valuations depends upon the volatility of movements in market values for the relevant assets.
Revaluation adjustments are made on a class basis. Any revaluation increment is credited to
equity under the heading of asset revaluation reserves except to the extent that it reverses a
previous revaluation decrement of the same asset class that was previously recognised through
surplus and deficit. Revaluation decrements for a class of assets are recognised directly
through surplus and deficit except to the extent that they reverse a previous revaluation
increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross
carrying amount of the asset and the asset restated to the revalued amount.
126 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Depreciation and amortisation
Land, being an asset with an unlimited useful life, is not depreciated.
Depreciable property, plant and equipment assets are written-off to their estimated residual
values over their useful lives to the Department using, in all cases, the straight line method of
depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser
of the estimated useful life of the improvements or the unexpired period of the lease.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting
date and necessary adjustments are recognised in the current, or current and future reporting
periods, as appropriate.
Depreciation rates applying to each class of depreciable asset are based on the following useful
lives:
Departmental Assets
2010
2009
Buildings
25 years
25 years
Leasehold improvements
Shorter of unexpired lease
term or useful life
Shorter of unexpired lease
term or useful life
Plant and equipment
3 to 10 years
3 to 10 years
Impairment
All assets were assessed for impairment during the period. Where indications of impairment
exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the
asset’s recoverable amount is less than its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value
in use. Value in use is the present value of the future cash flows expected to be derived from
the asset. Where the future economic benefits of an asset is not primarily dependent on the
asset’s ability to generate future cash flows, and the asset would be replaced if the Department
were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further
future economic benefits are expected from its use or disposal.
1.16
Intangibles
The Department’s intangible assets comprise purchased software and internally developed
software for internal use, and externally purchased copyright costs associated with various
agency publications. These assets are carried at cost less accumulated amortisation and
accumulated impairment losses.
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of
the Department’s software is 3 to 6 years.
The Department’s intangible asset CUBA, which is internally developed software utilised to
manage the Child Support program’s customer records, has an extended useful life which
currently is 10 years. The useful life of CUBA is assessed on a regular basis and is updated
when necessary.
Department of Human Services Annual Report //
127
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
All software assets were assessed for indications of impairment as at 30 June 2010.
1.17
Taxation/Competitive Neutrality
The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and
the Goods and Services Tax (GST).
Revenues, expenses, assets and liabilities are recognised net of GST except:
• where the amount of GST incurred is not recoverable from the Australian Taxation Office;
and
• for receivables and payables.
Competitive Neutrality
CRS Australia, a Division of the Department, provides services on a for-profit basis. Under
competitive neutrality arrangements, the Department is required to make Australian income
tax, state payroll and land tax equivalent payments to the Government, in addition to payments
for FBT and GST.
1.18
Foreign Currency
Transactions denominated in a foreign currency are converted at the exchange rate at the date
of the transaction. Foreign currency receivables and payables are translated at the exchange
rates current as at balance date. Associated foreign currency gains and losses are not material.
1.19
Comparative Year Disclosures
The Department sought and received advice on Regulations 15 and 16 of the FMA Act from
the Department of Finance and Deregulation and consequently in the current year the
Department took appropriate action to return $5.570m in receipts retained from 2008-09.
These funds have been returned to the Government through and reflected in the administered
accounts. In order to recognise the prior year impact, adjustments for the returned funds have
been made to the 2008-09 departmental and administered comparative balances within the
2009-10 financial statements.
CRS Australia provides disability services on behalf of the Department of Education,
Employment and Workplace Relations (DEEWR). These services are provided under the terms
of a Memorandum of Understanding (MOU) between the Department and DEEWR. From
1 April 2010 a new MOU came into effect. A review of the new MOU identified that the
Department was accounting for revenue from DEEWR under AASB 118 Revenue. The
Accounting Standards require that this revenue be recognised in accordance with AASB 1004
Contributions. Adjustments were made to account for the revenue under AASB 1004
Contributions with retrospective impact, resulting in the 2008-09 comparative balances within
the 2009-10 financial statements being adjusted.
128 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
The following departmental and administered tables reflect the impact of the adjustments to the
2008-09 comparative balances within the 2009-10 financial statements:
Departmental
Impact of
Corrections
$’000
Corrected
Actuals
2009
$’000
5,570
5,766
2,458
190,160
236,416
(5,570)
230,846
17,109
(7,223)
9,886
43,478
4,765
48,243
13,077
(3,112)
Actuals
2009
$’000
STATEMENT OF COMPREHENSIVE INCOME
Expenses
Other expenses
196
Own-sourced Income
Revenue
Rendering of services
187,702
BALANCE SHEET
Assets
Financial assets
Trade and other receivables
Liabilities
Other payables
STATEMENT OF CHANGES IN EQUITY
Retained earnings
Opening balance 1 July 2008
Comprehensive income
Surplus for the period
Closing balance as at 30 June 2009
56,448
1,653
9,965
58,101
Department of Human Services Annual Report //
129
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Administered
INCOME ADMINISTERED ON BEHALF
OF GOVERNMENT
Revenue
Other sources of revenue
Actuals
2009
$’000
Impact of
Corrections
$’000
Corrected
Actuals
2009
$’000
-
5,570
5,570
-
5,570
5,570
1,236,437
5,570
1,242,007
20,063
5,570
25,633
ASSETS ADMINISTERED ON BEHALF
OF GOVERNMENT
Other receivables
Other
ADMINISTERED RECONCILIATION
TABLE
Plus: Administered income
Closing administered assets less administered
liabilities as at 30 June
1.20
Reporting of Administered Activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the
Schedule of Administered Items and related notes.
Except where otherwise stated below, administered items are accounted for on the same basis
and using the same policies as for departmental items, including the application of Australian
Accounting Standards.
Administered Cashflows
Revenue collected by the Department for use by the Government rather than the Department is
administered revenue. Collections are transferred to the Official Public Account (OPA)
maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from
the OPA to make payments under parliamentary appropriations on behalf of Government.
These transfers to and from the OPA are adjustments to the administered cash held by the
Department on behalf of the Government and reported as such in the statement of cash flows in
the schedule of administered items and in the administered reconciliation table in Note 22.
Thus the schedule of administered items largely reflects the Government’s transactions,
through the Department, with parties outside the Government.
Administered Revenue
All administered revenues are revenues relating to the course of ordinary activities performed
by the Department on behalf of the Australian Government.
The Department receives administered revenues from Australian Hearing. Dividend revenue
and competitive neutrality revenue is received from Australian Hearing. Administered revenue
is recognised when the entitlement passes to the Department. All administered receipts are
transferred directly to the OPA.
130 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Fees and penalties collected by the Department are recognised as revenue when the activity by
the payer takes place that gives rise to the Government’s right to the fee or penalty. It is
recognised at its nominal amount due less any allowance for bad or doubtful debts.
Collectability of debts is reviewed at the end of the reporting period. Allowance is made when
collection of the debt is judged to be less rather than more likely.
Administered Child Support Penalties Revenue and Receivables
Revenue from penalties raised under the Child Support (Registration and Collection) Act 1988
is recognised when the event that gives rise to the penalty is identified by the Department. It is
recognised at its nominal amount. The receivable for penalties is recognised at its nominal
amounts less any allowance for bad or doubtful debts.
Administered Child Support Revenue and Receivables
Revenue from the assessment and collection of child support are recognised at their nominal
amounts. The revenues are recognised at the point when the Child Support Registrar makes an
assessment under the Child Support (Registration and Collection) Act 1988 and the assessment
results in an increase in child support maintenance debt.
Child Support Liability and Expenses
Liabilities for child support are recognised at the reporting date to the extent that they have not
been settled. Liabilities for amounts collected, but not yet remitted to the custodial parent are
measured at their nominal amounts.
The liability for child support includes provision for child support obligations that have been
assessed but not yet received. The liability is calculated on the basis of the present value of the
estimated future cash flows to be made to custodial parents at the reporting date. Estimated
future cash flows are calculated with reference to the past experience of the recoverability of
gross child support receivables from non-custodial parents.
The estimate does not include future cash outflows that may result from child support reassessments, relating prior to the reporting date, that are requested by non-custodial or
custodial parents after the reporting date.
Child support expense are recognised and measured in line with the child support liabilities.
Administered Investments
Administered investments in subsidiaries, joint ventures and associates are not consolidated
because their consolidation is only relevant at the whole-of-government level.
Administered investments other than those held for sale are classified as available-for-sale and
are measured at their fair value as at 30 June 2010. Fair value has been taken to be the
Australian Government’s proportional interest in the net assets of the entities as at end of the
reporting period.
Administered investments were assessed for impairment as at 30 June 2010. No indicators of
impairment were noted.
Department of Human Services Annual Report //
131
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Administered Special Account
The Child Support program special account is utilised for the receipt of maintenance payments
and the making of regular and timely payments to custodial parents.
The nature of the
special account requires that child support monies received into the account are paid from the
account to the relevant recipient. As such net child support receivables reported on the
schedule of administered items are offset by equivalent child support payables.
The Child Support program reviews the collectability of child support debts on a continual
basis and provides for those debts not considered collectable based on historical collection
data.
132 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 2: EVENTS AFTER THE REPORTING PERIOD
There were no events requiring disclosure occurring after 30 June 2010.
Department of Human Services Annual Report //
133
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 3: SERVICE DELIVERY REFORM
In December 2009, the Minister for Human Services announced major reforms to Australian
Government service delivery, including the integration of Medicare Australia, Centrelink and
the Department of Human Services into one Department of State.
The impact of these reforms is considered in the preparation of the financial statements and
disclosed as required.
Until legislative changes are made to amend governance arrangements, the Secretary of the
Department of Human Services will continue to exercise his responsibilities under the
Financial Management and Accountability Act 1997 , including the preparation and
presentation for audit of a set of financial statements and maintaining an Audit Committee.
134 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 4: EXPENSES
2010
$’000
2009
$’000
Note 4A: Employee benefits
Wages and salaries
Superannuation:
Defined contribution plans
Defined benefit plans
Leave and other entitlements
Separation and redundancies
Other employee expenses
Total employee benefits
340,657
305,995
24,556
46,085
64,806
416
5,560
482,080
24,883
33,426
58,034
475
4,141
426,954
Note 4B: Suppliers
Goods and services
Consultants and contractors
Telephony
Information technology services
Postage
Publishing and printing
Client costs
Lodgement enforcement
Travel and transport
Legal services and compensation
Other occupancy costs
Other goods and services
Total goods and services
34,532
15,098
39,669
6,490
5,983
13,755
6,875
10,702
5,414
9,291
18,296
166,105
25,577
15,018
47,259
8,776
8,976
10,213
6,875
10,341
5,167
10,336
28,749
177,287
Goods and services are made up of:
Provision of goods - external parties
Rendering of services - related entities
Rendering of services - external parties
Total goods and services
6,118
27,415
132,572
166,105
7,527
31,844
137,916
177,287
4,009
2,962
44,604
2,416
286
5,214
56,529
222,634
37,938
2,311
1,393
3,316
47,920
225,207
Other supplier expenses
Operating lease rentals - related entities:
Sublease
Operating lease rentals - external parties:
Minimum lease payments
Contingent rentals
State tax equivalent
Workers compensation premiums
Total other supplier expenses
Total supplier expenses
Department of Human Services Annual Report //
135
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 4: EXPENSES
2010
$’000
2009
$’000
2,511
10,601
3,319
16,431
2,780
13,013
2,161
17,954
14,270
14,270
30,701
9,983
9,983
27,937
(20)
921
2,025
2,926
22
118
140
Note 4E: Finance costs
Finance leases
Unwinding of discount
Total finance costs
219
126
345
304
304
Note 4F: Losses from assets sales
Land and buildings
Carrying value of assets sold
Property, plant and equipment
Proceeds from sale
Carrying value of assets sold
Total losses from assets sales
-
1,116
(84)
200
116
(58)
63
1,121
2
150
2,141
2,293
5
191
5,570
5,766
Note 4C: Depreciation and amortisation
Depreciation:
Property, plant and equipment
Buildings
Assets held under finance leases
Total depreciation
Amortisation:
Intangibles:
Computer software
Other
Total amortisation
Total depreciation and amortisation
Note 4D: Write-down and impairment of assets
Asset write-downs and impairments from
Impairment on financial instruments
Impairment of property, plant and equipment
Impairment on intangible assets
Total write-down and impairment of assets
Note 4G: Other expenses
Act of grace payments
Settlement of litigation
Other expense
Total other expenses
136 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 5: INCOME
2010
$’000
2009
$’000
174,542
26,841
201,383
176,942
13,218
190,160
Note 5B: Rental income
Operating lease:
Other
Total rental income
1,530
1,530
1,604
1,604
Note 5C: Other revenue
Other
Total other revenue
2,156
2,156
509
509
357
357
-
413
3,940
4,353
788
646
1,434
557,508
557,508
504,237
504,237
Own-source revenue
Note 5A: Rendering of services
Rendering of services - related entities
Rendering of services - external parties
Total rendering of services
Gains
Note 5D: Reversals of previous asset write-downs and impairments
Asset revaluation increment
Total reversals of previous asset write-downs and impairments
Note 5E: Other gains
Resources received free of charge
Other
Total other gains
Revenue from Government
Note 5F: Revenue from Government
Appropriations:
Departmental outputs
Total revenue from Government
Department of Human Services Annual Report //
137
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 6: INCOME TAX EXPENSE
Competitive neutrality - Commonwealth tax equivalent expense
Total income tax expense
2010
$’000
90
90
2009
$’000
550
550
CRS Australia, a division of the Department, provides services on a 'for profit' basis and is subject
to the Australian Government's Competitive Neutrality Policy. The above amounts have been
calculated as being payable to the Australian Government in the form of company tax under the
Income Tax Assessment Acts had they applied. These amounts have been paid, or are payable, by
the Department to the Official Public Account.
138 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 7: FINANCIAL ASSETS
2010
$’000
2009
$’000
Note 7A: Cash and cash equivalents
Cash on hand or on deposit
Total cash and cash equivalents
9,551
9,551
7,190
7,190
Note 7B: Trade and other receivables
Goods and services:
Goods and services - related entities
Goods and services - external parties
Total receivables for goods and services
1,373
5,016
6,389
2,860
7,350
10,210
Appropriations receivable:
For existing outputs
Equity
Total appropriations receivable
236,224
6,340
242,564
209,982
6,340
216,322
Other receivables:
GST receivable from the Australian Taxation Office
Total other receivables
Total trade and other receivables (gross)
2,330
2,330
251,283
4,727
4,727
231,259
Less impairment allowance account:
Goods and services
Total impairment allowance account
Total trade and other receivables (net)
(334)
(334)
250,949
(413)
(413)
230,846
Receivables are expected to be recovered in:
No more than 12 months
More than 12 months
Total trade and other receivables (net)
250,560
389
250,949
230,787
59
230,846
249,465
229,558
588
179
208
843
251,283
526
499
115
561
231,259
Receivables are aged as follows:
Not overdue
Overdue by:
0 to 30 days
31 to 60 days
61 to 90 days
More than 90 days
Total receivables (gross)
Department of Human Services Annual Report //
139
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 7: FINANCIAL ASSETS
2010
$’000
2009
$’000
The impairment allowance is aged as follows:
Overdue by:
More than 90 days
Total impairment allowance
(334)
(334)
(413)
(413)
Reconciliation of the impairment allowance account:
Opening balance
Amounts written off
Amounts recovered and reversed
Increase/decrease recognised in net surplus
Closing balance
(413)
15
44
20
(334)
(447)
16
194
(176)
(413)
Note 7C: Other financial assets
Accrued revenue
Total other financial assets
1,066
1,066
1,347
1,347
Total other financial assets - are expected to be recovered in:
No more than 12 months
Total other financial assets
1,066
1,066
1,347
1,347
All receivables are current assets.
140 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 8: NON-FINANCIAL ASSETS
2010
$’000
2009
$’000
Note 8A: Land and buildings
Land at fair value
Buildings on freehold land:
fair value
accumulated depreciation
Total buildings on freehold land
Leasehold improvements:
fair value
accumulated depreciation
accumulated impairment losses
under construction
Total leasehold improvements
Total land and buildings
1,590
1,500
1,175
(21)
1,154
1,220
(49)
1,171
52,144
(5,838)
(782)
4,086
49,610
52,354
52,560
(15,057)
(118)
2,268
39,653
42,324
All valuations are independent and are conducted in accordance with the revaluation policy stated at
Note 1. In 2009-10, an independent valuer Aon Risk Services Pty Ltd conducted the revaluations.
A revaluation increment of $0.090m for land (2009: $1.164m) and $0.032m for buildings (2009: nil) was
credited to the asset revaluation reserve by asset class and has been included in the equity section of the
balance sheet. A revaluation increment of $0.357m for leasehold improvements (2009: nil) was credited to
other gains to offset a decrement recorded in expenses in previous years.
Note 8B: Property, plant and equipment
Property, plant and equipment:
gross carrying value (at fair value)
accumulated depreciation
Total property, plant and equipment
13,848
(2,100)
11,748
22,456
(13,061)
9,395
A revaluation increment for plant and equipment of $3.456m (2009: nil) was credited to the asset
revaluation reserve and included in the equity section of the balance sheet.
Property, plant and equipment under finance leases were subject to revaluation. The carrying amount was
included in the valuation figures above.
Department of Human Services Annual Report //
141
142 // CHAPTER 6: Financial statements
Net book value as of 30 June 2010 represented by:
Gross book value
Accumulated depreciation/amortisation
Accumulated impairment losses
As at 1 July 2009
Gross book value
Accumulated depreciation/amortisation and impairment
Accumulated impairment losses
Net book value 1 July 2009
Additions:
By purchase
By finance lease
Revaluations and impairments through other comprehensive
income
Revaluations recognised in the operating result
Impairments recognised in the operating result
Depreciation/amortisation expense
Other movements
Disposals:
Other disposals
Net book value 30 June 2010
32
(49)
1,154
90
1,590
1,175
(21)
1,154
-
-
1,590
1,590
1,220
(49)
1,171
$’000
1,500
1,500
Buildings
Land
$’000
56,230
(5,838)
(782)
49,610
49,610
357
(904)
(10,552)
(124)
21,180
-
54,828
(15,057)
(118)
39,653
$’000
Leasehold
Improvements
$’000
58,995
(5,859)
(782)
52,354
52,354
122
357
(904)
(10,601)
(124)
21,180
-
57,548
(15,106)
(118)
42,324
Total Land
& Buildings
Note 8C: Reconcilation of the opening and closing balances of property, plant and equipment (2009-10)
NOTE 8: NON-FINANCIAL ASSETS
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
13,848
(2,100)
11,748
(200)
11,748
3,456
(17)
(5,830)
(49)
4,750
243
22,456
(13,061)
9,395
$’000
Other
PP & E
Total
72,843
(7,959)
(782)
64,102
(200)
64,102
3,578
357
(921)
(16,431)
(174)
25,930
243
80,004
(28,167)
(118)
51,719
$’000
Department of Human Services Annual Report //
143
Net book value as of 30 June 2009 represented by:
Gross book value
Accumulated depreciation/amortisation and impairment
Accumulated impairment losses
As at 1 July 2008
Gross book value
Accumulated depreciation/amortisation and impairment
Net book value 1 July 2008
Additions:
By purchase
By finance lease
Revaluations and impairments through other comprehensive
income
Revaluation recognised in the operating result
Depreciation/amortisation expense
Other movements
Disposals:
Other disposals
Net book value 30 June 2009
229
(49)
1,171
942
1,500
1,220
(49)
1,171
-
-
1,500
1,500
1,274
(283)
991
$’000
558
558
Buildings
Land
$’000
54,828
(15,057)
(118)
39,653
(1,116)
39,653
(7)
(118)
(12,964)
(131)
9,362
-
47,868
(3,241)
44,627
Leasehold
Improvements
$’000
57,548
(15,106)
(118)
42,324
(1,116)
42,324
1,164
(118)
(13,013)
(131)
9,362
-
49,700
(3,524)
46,176
Total Land
& Buildings
$’000
Note 8C: Reconcilation of the opening and closing balances of property, plant and equipment (2008-09)
NOTE 8: NON-FINANCIAL ASSETS
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
22,456
(13,061)
9,395
(63)
9,394
(4,941)
(75)
2,151
6,247
9,913
(3,838)
6,075
Other
PP & E
$’000
Total
80,004
(28,167)
(118)
51,719
(1,179)
51,718
1,164
(118)
(17,954)
(206)
11,513
6,247
59,613
(7,362)
52,251
$’000
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 8: NON-FINANCIAL ASSETS
2010
$’000
2009
$’000
17,726
5,254
43,670
66,650
(37,843)
28,807
15,713
6,932
37,748
60,393
(26,721)
33,672
105
105
(105)
28,807
105
105
(105)
33,672
Note 8E: Other non-financial assets
Prepayments
Other
Total other non-financial assets
8,113
68
8,181
4,656
130
4,786
Total other non-financial assets - are expected to be recovered in:
No more than 12 months
More than 12 months
Total other non-financial assets
8,092
89
8,181
4,763
23
4,786
Note 8D: Intangibles
Computer software:
Purchased
Internally developed - in progress
Internally developed - in use
Total Computer Software (gross)
Accumulated amortisation
Total Computer Software (net)
Other intangibles:
Purchased
Total Other Intangibles (gross)
Accumulated amortisation
Total Other Intangibles (net)
Total Intangibles
No indicators of impairment were found for intangible assets.
No indicators of impairment were found for other non-financial assets.
144 // CHAPTER 6: Financial statements
Department of Human Services Annual Report //
145
Net book value as of 30 June 2010 represented by:
Gross book value
Accumulated depreciation/amortisation and impairment
As at 1 July 2009
Gross book value
Adjustment to opening balance
Accumulated depreciation/amortisation and impairment
Net book value 1 July 2009
Additions:
By purchase
Internally developed
Impairments recognised in the operating result
Amortisation
Net book value 30 June 2010
Note 8F: Reconciliation of the opening and closing balances of intangibles (2009-10)
NOTE 8: NON-FINANCIAL ASSETS
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
17,726
(12,672)
5,054
2,329
(4,323)
5,054
9,101
(2,025)
(9,947)
23,753
48,924
(25,171)
23,753
15,818
(105)
(8,665)
7,048
$’000
$’000
44,575
105
(18,056)
26,624
Computer
software
purchased
Computer
software
internally
developed
$’000
105
(105)
-
-
105
(105)
-
Other intangibles
66,755
(37,948)
28,807
2,329
9,101
(2,025)
(14,270)
28,807
60,498
(26,826)
33,672
$’000
Total
146 // CHAPTER 6: Financial statements
Net book value as of 30 June 2009 represented by:
Gross book value
Accumulated depreciation/amortisation and impairment
As at 1 July 2008
Gross book value
Accumulated amortisation and impairment
Net book value 1 July 2008
Additions:
By purchase
Internally developed
Amortisation
Net book value 30 June 2009
Note 8F: Reconciliation of the opening and closing balances of intangibles (2008-09)
NOTE 8: NON-FINANCIAL ASSETS
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
15,818
(8,665)
7,153
3,989
(3,237)
7,153
11,985
(6,746)
26,519
44,575
(18,056)
26,519
11,917
(5,516)
6,401
$’000
$’000
61,656
(40,376)
21,280
Computer
software
purchased
Computer
software
internally
developed
$’000
105
(105)
-
-
105
(105)
-
Other intangibles
60,498
(26,826)
33,672
3,989
11,985
(9,983)
33,672
73,678
(45,997)
27,681
$’000
Total
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 9: PAYABLES
2010
$’000
2009
$’000
36,758
3,381
40,139
35,816
1,624
37,440
Supplier payables expected to be settled within 12 months:
Related entities
External entities
Total
2,792
33,373
36,165
1,634
34,703
36,337
Supplier payables expected to be settled in greater than 12
months:
External entities
Total
Total supplier payables
3,974
3,974
40,139
1,103
1,103
37,440
Note 9B: Tax liabilities (competitive neutrality)
Tax equivalent liabilities
Total tax liabilities (competitive neutrality)
376
376
1,939
1,939
Total tax liabilities (competitive neutrality) are expected to be
settled in:
No more than 12 months
Total tax liabilities (competitive neutrality)
376
376
1,939
1,939
Note 9A: Suppliers
Trade creditors and accruals
Operating lease rentals
Total supplier payables
Settlement is usually made within 30 days.
All tax liabilities are current liabilities.
Department of Human Services Annual Report //
147
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 9: PAYABLES
Note 9C: Other Payables
Salaries and wages
Superannuation
GST payable to ATO
Total other payables
2010
$’000
2009
$’000
9,203
1,371
1,236
11,810
8,089
1,020
777
9,886
11,810
11,810
9,886
9,886
Note 9D: Lease Incentives
Lease incentives
Total lease incentives
12,337
12,337
10,396
10,396
Lease incentives are expected to be settled in:
No more than 12 months
More than 12 months
Total lease incentives
2,425
9,912
12,337
2,338
8,058
10,396
Total other payables are expected to be settled in:
No more than 12 months
Total other payables
All other payables are current liabilities.
Maturity of the non-current portion of lease incentives is as stated in the schedule of commitments operating leases.
148 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 10: INTEREST BEARING LIABILITIES
Note 10: Leases
Finance leases
Total finance leases
2010
$’000
2009
$’000
3,538
3,538
4,331
4,331
Payable:
Within one year
Minimum lease payments
Deduct: future finance charges
2,981
(103)
3,870
(121)
In one to five years
Minimum lease payments
Deduct: future finance charges
Finance leases recognised on the balance sheet
676
(16)
3,538
587
(5)
4,331
Finances leases exist in relation to information technology assets managed by Hewlett Packard.
The leases are non-cancellable and for fixed terms of 3 to 4 years. The interest rate implicit in the
leases averaged 4.64% (2009: 4.64%). The lease assets secure the lease liabilities. The
Department guarantees the residual values of all assets leased. There are no contingent rentals.
Department of Human Services Annual Report //
149
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 11: PROVISIONS
Note 11A: Employee provisions
Leave
Other
Total employee provisions
2010
$’000
2009
$’000
103,873
1,715
105,588
96,033
2,524
98,557
Employee provisions are expected to be settled in:
No more than 12 months
More than 12 months
Total employee provisions
49,521
56,067
105,588
62,685
35,872
98,557
Note 11B: Other provisions
Property make-good provision
Surplus lease space
Total other provisions
5,845
1,070
6,915
7,749
590
8,339
Other provisions are expected to be settled in:
No more than 12 months
More than 12 months
Total other provisions
2,433
4,482
6,915
2,481
5,858
8,339
Other
Provisions
$'000
590
1,070
(590)
1,070
Total
Carrying amount 1 July 2009
Additional provisions made
Amounts used
Amounts reversed
Unwinding of discount or change in discount rate
Closing balance 30 June 2010
Make-good
Provision
$'000
7,749
2,713
(431)
(4,272)
86
5,845
$'000
8,339
3,783
(431)
(4,862)
86
6,915
The Department has a number of agreements for the leasing of premises which have provisions requiring
them to restore the premises to their original condition at the conclusion of the lease. The Department has
made a provision to reflect the present value of this obligation.
150 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 12: RESTRUCTURING
2010
$’000
2009
$’000
Note 12A: Departmental restructuring
The Australian Government made a decision to transfer the function of the Job Capacity Assessment program
from the Department to the Department of Education, Employment and Workplace Relations (DEEWR).
The net book value of assets and liabilities transferred to DEEWR for no consideration and recognised as at
1 July 2009 was:
Assets transferred
Appropriation receivable
Total assets transferred
844
844
-
Liabilities transferred
Employee entitlements
Total liabilities transferred
Net assets relinquished
244
244
600
-
There were no income or expenses incurred by the Department as a result of this transfer.
Note 12B: Administered restructuring
The Australian Government made a decision to transfer the function of the Job Capacity Assessment program
from the Department to DEEWR at 1 July 2009.
There were no income or expenses incurred by the Department as a result of this transfer.
The book value of liabilities transferred by the Department for no consideration was:
Liabilities relinquished
Suppliers
Other creditors
Total liabilities relinquished
2,320
2,320
-
As a result of a Cabinet decision on 8 December 2008, Health Services Australia was acquired by Medibank
Private Limited on 1 April 2009.
Assets relinquished
Shares in Commonwealth companies/entities
Health Services Australia
Total assets relinquished
-
(18,477)
(18,477)
Department of Human Services Annual Report //
151
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 13: CASH FLOW RECONCILIATION
2010
$’000
2009
$’000
Reconciliation of cash and cash equivalents as per balance sheet to
cash flow statement
Report cash and cash equivalents as per:
Cash flow statement
Balance sheet
Difference
Reconciliation of net cost of services to net cash from operating
activities:
Net cost of services
Add revenue from Government
Less income tax expense
Adjustments for non-cash items
Depreciation/amortisation
Net write down of non-financial assets
(Gain)/loss on disposal of assets
Other gains
Finance expenses
Changes in assets/liabilities:
(Gain)/loss on write back of make-good
(Increase)/decrease in net receivables
(Increase)/decrease in prepayments
(Increase)/decrease in other non-financial assets
(Increase)/decrease in accrued revenue
Increase/(decrease) in employee provisions
Increase/(decrease) in employee payables
Increase/(decrease) in supplier payables
Increase/(decrease) in lease incentive
Increase/(decrease) in GST payable
Increase/(decrease) in competitive neutrality payable
Increase/(decrease) in leases
Increase/(decrease) in other provisions
Net cash from operating activities
152 // CHAPTER 6: Financial statements
9,551
9,551
-
7,190
7,190
-
(531,316)
557,508
(90)
(493,722)
504,237
(550)
30,701
2,946
116
(357)
126
27,937
118
1,121
-
(27,099)
(3,457)
62
281
7,031
1,465
3,346
1,941
459
(1,563)
2,357
(4,036)
40,421
8
(33,073)
(431)
(31)
484
9,354
(1,962)
5,933
(2,301)
(385)
1,580
4,331
(1,560)
21,088
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 14: CONTINGENT LIABILITIES AND ASSETS
Contingent Liabilities
Balance from previous period
Liabilities recognised
Total Contingent Liabilities
Claims for
damages or costs
2010
$’000
-
2009
$’000
109
(109)
-
TOTAL
2010
$’000
-
2009
$’000
109
(109)
-
Quantifiable Contingencies
At 30 June 2010, the Schedule of Contingencies for the Department reports no contingent
liabilities in respect of compensation claims (2009: $0).
The Schedule also reports no contingent assets (2009: $0).
Unquantifiable Contingencies
At 30 June 2010, the Department had a number of legal claims for which it has denied liability and
is defending the claims. It is not possible to estimate the amount of any eventual payments that
may be required in relation to these claims.
The Department administers payments made under the Scheme for Compensation for Detriment
caused by Defective Administration (CDDA) in relation to the administered Child Support special
account. It is not possible to estimate the amount of any eventual payments that may be required in
relation to potential future claims under CDDA relating to events up to reporting date.
Significant Remote Contingencies
Various organisations have been indemnified from losses they may incur arising from legal actions
which may be initiated by clients of CRS Australia under the work training scheme.
Department of Human Services Annual Report //
153
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 15: EXECUTIVE REMUNERATION
Note 15A: Senior executive remuneration
The number of executives who received or were due1:
2
less than $145,000
$145,000 to $159,999
$160,000 to $174,999
$175,000 to $189,999
$190,000 to $204,999
$205,000 to $219,999
$220,000 to $234,999
$235,000 to $249,999
$250,000 to $264,999
$265,000 to $279,999
$280,000 to $294,999
$295,000 to $309,999
$310,000 to $324,999
$325,000 to $339,999
$340,000 to $354,999
$355,000 to $369,999
$370,000 to $384,999
$415,000 to $429,999
$595,000 to $609,999
Total
2010
2009
2
3
8
7
12
7
3
2
3
1
1
1
1
1
1
53
1
3
2
4
9
13
5
3
1
2
1
1
2
1
1
1
50
1
For the purpose of this note disclosure remuneration includes: salary (including payment for leave taken), movement in annual leave
and long service leave provisions, superannuation (post-employment benefits), motor vehicle and other allowances and reportable
fringe benefits.
2
Excluding acting arrangements and part-year service.
Total expense recognised in relation to senior executive employment
Short-term employee benefits:
Wages and salaries (including annual leave taken)
Changes in annual leave provision
Performance bonus
Other3
Total short-term employee benefits
Superannuation
Changes in long service leave provision
Total
$
8,714,094
139,516
688,700
1,060,684
10,602,994
1,711,724
383,329
12,698,047
$
7,386,048
201,933
733,528
1,147,039
9,468,548
1,514,994
315,467
11,299,009
During the year the entity paid $253,010 in termination benefits to senior executives (2009: $223,528).
3
"Other" includes motor vehicle allowances and other allowances.
The total remuneration for 2009-10 represents the full accrual cost incurred during the financial year, with the
exception of those performance payments where the assessment process had not been completed by the date of
these financial statements being signed.
Some of the Department's senior executives worked at the portfolio level on service delivery reform for part of
the year as the Department's employees - refer Note 3: Service delivery reform.
154 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 15: EXECUTIVE REMUNERATION
Note 15B: Senior executive remuneration
Average annualised remuneration packages for substantive senior executives employed
at the 30 June 2010
As at 30 June 2010
Total remuneration1:
$175,000 to $189,999
$190,000 to $204,999
$205,000 to $219,999
$220,000 to $234,999
$235,000 to $249,999
$250,000 to $264,999
$265,000 to $279,999
$280,000 to $294,999
$295,000 to $309,999
$310,000 to $324,999
$325,000 to $339,999
$340,000 to $354,999
$355,000 to $369,999
$370,000 to $384,999
$415,000 to $429,999
$460,000 to $474,999
$475,000 to $489,999
Total
1
2
Base salary
(including
No. SES annual leave)
2
7
16
4
1
3
4
1
2
1
1
1
1
1
1
46
Total
remuneration
package2
$
$
135,000
139,619
148,538
153,958
175,000
186,492
192,552
206,975
217,000
225,000
235,000
250,000
250,000
365,166
412,787
204,169
213,255
227,566
238,637
251,768
273,510
286,139
301,588
312,673
325,850
346,240
359,500
379,977
428,705
479,514
As at 30 June 2009
Base salary
(including
No. SES annual leave)
$
2
9
13
8
3
3
4
3
2
1
2
1
1
52
126,617
132,319
139,165
143,719
147,689
174,575
183,372
196,338
209,168
227,136
230,000
365,166
400,767
-
Total
remuneration
2
package
$
186,331
199,164
210,630
225,225
238,069
257,528
273,303
286,261
305,725
316,093
332,953
428,704
467,493
-
Excluding acting arrangements, part-year service and long service leave.
Non-salary elements available to senior executives include: performance bonus, motor vehicle allowance and superannuation.
Major differences between Note 15A and 15B
The amounts disclosed in Note 15A may differ from the annualised remuneration package disclosed in Note 15B
depending upon: the amount of leave taken during the year, part year service, periods of leave without pay, acting
arrangements, changes to base salary, salary for superannuation purposes and allowances during the year, and
revaluation of employee provisions.
Note 15A includes acting arrangements and part year service where the $145,000 threshold was reached during the
year. Note 15B reflects only substantive senior executive packages in existence as at 30 June.
Department of Human Services Annual Report //
155
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 16: REMUNERATION OF AUDITORS
2010
$’000
2009
$’000
Financial statement audit services are provided free of charge to the
agency.
The fair value of the services provided was:
Department of Human Services
No other services were provided by the Auditor-General.
156 // CHAPTER 6: Financial statements
413
413
506
506
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 17: FINANCIAL INSTRUMENTS
17A: Categories of financial instruments
2010
$’000
2009
$’000
7A
7B
7C
9,551
6,389
1,066
17,006
7,190
10,210
1,347
18,747
9A
9D
10
40,139
12,337
3,538
56,014
37,440
10,396
4,331
52,167
4E
219
219
219
304
304
304
Notes
Departmental
Financial assets
Loans and receivables:
Cash and cash equivalents
Receivables for goods and services (gross)
Accrued revenues
Carrying amount of financial assets
Financial liabilities
At amortised cost:
Supplier payables
Lease incentives
Finance Leases
Carrying amount of financial liabilities
The Department does not have interest revenues.
17B: Net income and expense from financial liabilities
Financial liabilities - at amortised cost
Interest expense
Net loss financial liabilities - at amortised cost
Net loss from financial liabilities
The total interest expense from financial liabilities not at fair value through profit or loss is $219,000
(2009: $304,000).
Department of Human Services Annual Report //
157
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 17: FINANCIAL INSTRUMENTS
17C: Fair value of financial instruments
Carrying amounts stated above are a reasonable approximation of fair value.
Fair value measurements categorised by fair value hierarchy
Financial assets at fair value
Cash and cash equivalents
Receivables for goods and services (gross)
Accrued revenues
Financial liabilities at fair value
Supplier Payables
Lease incentives
Finance leases1
1
Level in the fair
value hierarchy
2009
2010
1
1
1
1
1
1
1
1
2
1
1
2
Finance leases are categorised as level 2 fair value assets because they are recorded at their discounted fair value based on the
interest rate implicit within the lease agreement - refer Note 10: Interest bearing liabilities.
158 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 17: FINANCIAL INSTRUMENTS
17D: Credit risk
The Department is exposed to minimal credit risk as loans and receivables are cash and trade receivables.
The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is
equal to the trade receivables 2010: $6,389,000 (2009: $10,210,000). The Department has assessed the risk
of the default on payment and has allocated $334,000 in 2010 ($413,000 in 2009) to an allowance for
doubtful debts account.
The Department manages its credit risk by undertaking background and credit checks prior to allowing a
debtor relationship. In addition, the Department has policies and procedures that guide employees debt
recovery techniques that are to be applied.
The Department holds no collateral to mitigate against credit risk.
Credit quality of financial instruments not past due or individually determined as impaired.
Loans and receivables
Cash and cash equivalents
Receivables for goods and services
Accrued revenues
Total
Not Past
Due Nor
Impaired
2010
$'000
9,551
4,571
1,066
15,188
Not Past
Due Nor
Impaired
2009
$'000
7,190
8,509
1,347
17,046
Past Due
Or
Impaired
2010
$'000
1,818
1,818
Ageing of financial assets that are past due but not impaired for 2010
31 to 60
61 to 90
0 to 30 days
days
days
$'000
$'000
$'000
Loans and receivables
Receivables for goods and services
588
179
208
Total
588
179
208
Ageing of financial assets that are past due but not impaired for 2009
31 to 60
61 to 90
0 to 30 days
days
days
$'000
$'000
$'000
Loans and receivables
Receivables for goods and services
526
499
115
Total
526
499
115
Past Due
Or
Impaired
2009
$'000
1,701
1,701
90+
days
$'000
509
509
90+
days
$'000
148
148
Total
$'000
1,484
1,484
Total
$'000
1,288
1,288
Department of Human Services Annual Report //
159
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 17: FINANCIAL INSTRUMENTS
17E: Liquidity risk
The Department's liabilities are payables and other interest bearing liabilities. The exposure to liquidity risk is based on
the notion that the Department will encounter difficulty in meeting its obligations associated with financial liabilities. This
is highly unlikely due to appropriation funding and mechanisms available to the Department (e.g. Advance to the Finance
Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial
obligations.
The following tables illustrate the maturities for financial liabilities:
Other Liabilities
Supplier payables
Lease incentives
Finance leases
Total
Other Liabilities
Supplier payables
Lease incentives
Finance leases
Total
Within 1
year
2010
$'000
On
Demand
2010
$'000
On
Demand
2009
$'000
36,165
2,511
2,878
41,554
Within 1
year
2009
$'000
-
36,337
2,338
3,749
42,424
1 to 2
years
2010
$,000
3,974
1,966
660
6,600
1 to 2
years
2009
$,000
1,103
1,963
582
3,648
2 to 5 years
2010
$'000
5,126
5,126
2 to 5 years
2009
$'000
6,095
6,095
> 5 years
2010
$'000
2,734
2,734
> 5 years
2009
$'000
-
Total
2010
$'000
40,139
12,337
3,538
56,014
Total
2009
$'000
37,440
10,396
4,331
52,167
The Department is appropriated funding from the Australian Government. The Department manages its budgeted funds to
ensure it has adequate funds to meet payments as they fall due. In addition, the Department has policies in place to ensure
timely payment is made when due and has no past history of default.
17F: Market risk
The Department holds basic financial instruments that do not expose the Department to certain market risks. The
Department is not exposed to 'Currency risk' or 'Other price risk'.
The only interest-bearing item on the balance sheet is 'Other interest bearing liabilities'. This bears interest at a fixed
interest rate and will not fluctuate due to changes in the market interest rate.
160 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 18: INCOME ADMINISTERED ON BEHALF OF GOVERNMENT
2010
$’000
REVENUE
2009
$'000
Revenue
Child support penalty recovery revenue
Child support revenue
Competitive neutrality revenue
Dividends
Other sources of revenue
47,802
1,187,847
8,867
5,608
2,140
59,859
1,131,932
9,528
35,118
5,570
Total income administered on behalf of Government
1,252,264
1,242,007
NOTE 19: EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT
EXPENSES
2010
$’000
2009
$’000
Write-down and impairment of assets
Asset Write-downs from
impairment on financial instruments
Total write-down and impairment of assets
69,191
69,191
85,836
85,836
Other expenses
Income management card payments
Payments to Australian Hearing
Child support payments
Job capacity assessment payments1
Total other expenses
3,207
1,157,508
1,160,715
154
19
1,093,588
160,201
1,253,962
Total expenses administered on behalf of Government
1,229,906
1,339,798
1
The Department transferred the Job Capacity Assessment program to DEEWR as at 1 July 2009 as per note 12: Restructuring.
Department of Human Services Annual Report //
161
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 20: ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT
Financial Assets
Cash and cash equivalents
Cash on hand or on deposit
Total cash and cash equivalents
2010
$’000
2009
$’000
248
248
48
48
689,139
9,579
3,022
2,051
641,712
10,605
2,470
1,809
980,064
182,135
1,865,990
(1,240,975)
625,015
931,166
132,147
1,719,909
(1,158,133)
561,776
Other Receivables
Dividends receivable
Competitive neutrality receivable
GST receivable from the Australian Taxation Office
Other
Total other receivables (gross)
Total receivables (net)
2,374
2,693
22
2,141
7,230
632,245
29,562
5,071
2,945
5,570
43,148
604,924
Receivables are expected to be recovered in:
No more than 12 months
More than 12 months
Total trade and other receivables (net)
134,584
497,661
632,245
161,860
443,064
604,924
93,681
122,866
81,721
62,254
53,631
1,581,933
1,873,220
69,959
61,520
56,180
1,452,532
1,763,057
(48,497)
(42,827)
(41,584)
(36,298)
(30,324)
(1,084,272)
(1,240,975)
(37,736)
(34,927)
(33,175)
(1,009,468)
(1,158,133)
Child support related receivables
Client penalty receivables
Customer miscellaneous receivables
Client top up receivables
Costs debt
Maintenance receivable:
Domestic
International
Total child support related receivables (gross)
Less: impairment allowance
Total child support related receivables (net)
Receivables are aged as follows:
Not overdue
Overdue by:
Less than 30 days
31 to 60 days
61 to 90 days
More than 90 days
Total receivables (gross)
The impairment allowance is aged as follows:
Not overdue
Overdue by:
Less than 30 days
31 to 60 days
61 to 90 days
More than 90 days
Total allowance for doubtful debts
162 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 20: ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT (continued)
Reconciliation of impairment allowance:
Opening balance
Amounts written off
Closing balance
Notes
2010
$’000
2009
$’000
(1,158,133)
(82,842)
(1,240,975)
(1,078,156)
(79,977)
(1,158,133)
30,741
30,741
663,234
27,002
27,002
631,974
Non-financial assets
Investments
Shares in Commonwealth companies/entities
Australian Hearing
Total investments
Total assets administered on behalf of Government
24
NOTE 21: LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT
Payables
2010
$’000
2009
$’000
Suppliers
Trade creditors - Child Support program
Other creditors
Total suppliers
26,673
708
27,381
26,341
2,320
28,661
Supplier payables expected to be settled within 12 months:
External entities
Total
27,381
27,381
28,661
28,661
Other payables
Child support payments received in advance
Total other payables
15,025
15,025
27,735
27,735
Total other payables are expected to be settled in:
No more than 12 months
Total other payables
15,025
15,025
27,735
27,735
Department of Human Services Annual Report //
163
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 21: LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT
2010
$’000
2009
$’000
Child support provision
Child support provision
Total child support provision
612,479
612,479
549,945
549,945
Total child support provisions are expected to be settled in:
No more than 12 months
More than 12 months
Total child support provision
278,645
333,834
612,479
116,609
433,336
549,945
549,945
1,187,847
(1,157,508)
32,195
612,479
512,582
1,131,934
(1,056,546)
(38,025)
549,945
654,885
606,341
2010
$’000
2009
$’000
Provisions
Made up of:
Movement in the child support provision
Carrying amount 1 July 2009
Additional provisions made
Amounts used
Amounts reversed
Closing balance 30 June 2010
Total liabilities administered on behalf of Government
NOTE 22: ADMINISTERED RECONCILIATION TABLE
Opening administered assets less administered liabilities as at 1 July
Plus: Administered income
Less: Administered expenses
Administered transfers to/from Australian Government:
Special Account transfers from the Official Public Account
Appropriation transfers from the Official Public Account:
Annual appropriations for administered expenses
Transfers to the Official Public Account
Restructuring
Administered investments
Closing administered assets less administered liabilities as at 30 June
164 // CHAPTER 6: Financial statements
25,633
1,252,264
(1,229,906)
29,680
1,242,007
(1,339,798)
1,030,504
987,952
71,310
(1,147,515)
2,320
3,739
8,349
251,008
(1,107,493)
(18,477)
(19,246)
25,633
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 23: ADMINISTERED CONTINGENT LIABILITIES
Claims for
damages or costs
Contingent Liabilities
2010
$’000
230
51
(230)
51
Balance from previous period
New
Liabilities crystallised
Total Contingent Liabilities
2009
$’000
350
230
(350)
230
TOTAL
2010
$’000
230
51
(230)
51
2009
$’000
350
230
(350)
230
Quantifiable administered contingencies
There are six quantifiable administered contingencies with a total value of $50,535. These
contingent liabilities represent waivers of child support debt awaiting approval from the Department
of Finance and Deregulation as at 30 June 2010 (2009: $230,371)
Unquantifiable administered contingencies
There are no unquantifiable administered contingencies (2009: Nil).
Remote administered contingencies
There are no remote administered contingencies (2009: Nil)
NOTE 24: ADMINISTERED INVESTMENTS
The principal activities of each of the Department's administered investments are as follows:
Australian Hearing helping people manage their hearing impairment to improve their quality of
life; a world leader in research and development.
The Australian Government owns 100% of the issued share capital of Australian Hearing which is
valued at net asset value, obtained from the latest available financial statements.
Department of Human Services Annual Report //
165
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 25: ADMINISTERED FINANCIAL INSTRUMENTS
Notes
2010
$’000
2009
$’000
25A: Categories of financial instruments
Loans and receivables
Cash and cash equivalents
Carrying amount of financial assets
20
248
248
48
48
Financial liabilities
Supplier payables
Carrying amount of financial liabilities
21
708
708
2,320
2,320
Carrying amounts stated above are a reasonable approximation of fair value at quoted prices in an active
market.
The administered accounts do not have interest revenues and/or expenses.
166 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 25: ADMINISTERED FINANCIAL INSTRUMENTS
25B: Credit risk
The administered activities of the Department are exposed to minimal credit risk as it is only cash.
Credit quality of financial instruments not past due or individually determined as impaired.
Loans and receivables
Cash and cash equivalents
Total
Not past due
nor impaired
2010
$'000
248
248
Not past due
nor impaired
2009
$'000
Past due or
impaired
2010
$'000
Past due or
impaired
2009
$'000
-
48
48
-
25C: Liquidity risk
The Department's administered financial liabilities are trade creditors, personal benefits payable, payments in advance and child
support payable. The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its
obligations associated with administered financial liabilities. This is highly unlikely due to appropriation funding and mechanisms
available to the Department (e.g. advance to the Finance Minister) and internal policies and procedures put in place to ensure there
are appropriate resources to meet its financial obligations.
The following tables illustrates the maturities for financial liabilities:
Other Liabilities
Supplier payables
Total
Other Liabilities
Supplier payables
Total
On Demand
2010
$'000
Within 1 year
2010
$'000
-
On Demand
2009
$'000
708
708
Within 1 year
2009
$'000
-
1 to 2 years
2010
$'000
2,320
2,320
2 to 5 years
2010
$'000
-
1 to 2 years
2009
$'000
> 5 years
2010
$'000
-
2 to 5 years
2009
$'000
-
Total
2010
$'000
-
> 5 years
2009
$'000
-
708
708
Total
2009
$'000
-
2,320
2,320
The Department is appropriated funding from the Australian Government. The Department manages its budgeted administered
funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Department has policies in place to ensure
timely payment is made when due and has no past history of default.
25D: Market risk
The Department holds basic financial instruments that do not expose the Department to certain market risks. The Department is not
exposed to 'Currency risk' or 'Other price risk'.
There are no interest bearing items on the Department's administered balance sheet, therefore the Department is not exposed to
'Interest rate risk'.
Department of Human Services Annual Report //
167
168 // CHAPTER 6: Financial statements
Balance brought forward from previous period
Appropriation Act:
Appropriation Act (No. 1, 3 and 5) 2009-2010 as passed
Other annual appropriation acts as passed
Appropriations reduced (Appropriation Act section 10, 11 & 12)
FMA Act:
Repayments to the Commonwealth (FMA Act section 30)
Appropriations to take account of recoverable GST (FMA Act section 30A)
Relevant agency receipts (FMA Act section 31)
Transfer of agency function (FMA Act section 32)
Total appropriation available for payments
Cash payments made during the year (GST inclusive)
Appropriations credited to Special Accounts (excluding GST)
Balance of authority to draw cash from the consolidated revenue fund for ordinary
annual services appropriations
Cash at bank and on hand
Departmental appropriations receivable
Undrawn, unlapsed administered appropriations
Net GST payable (to)/from Australian Taxation Office
Section 101.13 adjustments of the Finance Minister's Orders not reflected above
Total
Particulars
172,730
(5,611)
3,941
14,459
195,465
(176,848)
(2,694)
15,923
15,923
15,923
8,193
(13,604)
1,620
275
(2,320)
10,087
(2,774)
(1,628)
5,685
248
5,437
5,685
Administered expenses
Outcome 1
2009
2010
$'000
$'000
9,946
15,923
9,551
236,224
1,094
750
247,619
3,932
29,446
246,782
(844)
1,045,116
(797,497)
247,619
558,258
(5,799)
7,190
202,203
3,948
213,341
23,637
190,531
903,977
(690,636)
213,341
496,458
(827)
2009
$'000
194,178
Departmental outputs
2010
$'000
213,341
Table A1: Acquittal of authority to draw cash from the consolidated revenue fund for ordinary annual services appropriations
NOTE 26: APPROPRIATIONS
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
Total
9,799
236,224
5,437
1,094
750
253,304
5,552
29,721
246,782
(3,164)
1,055,203
(800,271)
(1,628)
253,304
566,451
(19,403)
2010
$'000
229,264
7,190
202,203
15,923
3,948
229,264
3,941
38,096
190,531
1,099,442
(867,484)
(2,694)
229,264
669,188
(6,438)
2009
$'000
204,124
Department of Human Services Annual Report //
169
$172,730,000.00
0
0
$128,816,702.56
$30,309,348.38
0
$159,126,050.94
0
$13,603,949.06
$3,216,128.29
0
0
0
0
$2,755,800.15
$460,328.14
$4,976,871.71
2009
$8,193,000.00
2010
Outcome 1
Administered expenses
$2,755,800.15
$460,328.14
$4,976,871.71
$3,216,128.29
0
0
0
0
$8,193,000.00
2010
2009
$159,126,050.94
0
$13,603,949.06
0
0
$128,816,702.56
$30,309,348.38
0
$172,730,000.00
Total
2
Includes $0.248m drawn down from the Official Public Account on 30 June 2010 to be paid to suppliers.
Administered items for 2009-2010 were reduced to these amounts when these financial statements were tabled in the Parliament as part of the Department of Human Services 2009-2010 Annual Report.
This reduction is effective in 2010-2011 and the amounts in the Total Reduction row will be reflected in the top section of Table A in the 2010-2011 financial statements in the row 'Appropriations reduced
(Appropriation Act sections 10, 11&12 )'.
1
Less administered items required by the agency per Appropriation Act section 11 1 :
Appropriation Act (No. 1) 2009-2010
Appropriation Act (No. 3) 2009-2010
Appropriation Act (No. 1) 2008-2009
Appropriation Act (No. 3) 2008-2009
Other annual appropriation acts
Total administered items required by the agency:
Spent2
Retention
Total reduction in administered items - effective 2010-2011
Reduction in administered items
Total administered items appropriated 2009-2010
Particulars
Table A2: Acquittal of authority to draw cash from the consolidated revenue fund for ordinary annual services appropriations (continued)
NOTE 26: APPROPRIATIONS
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
170 // CHAPTER 6: Financial statements
Appropriation receivable
Net GST payable (to)/from Australian Taxation Office
s101.13 adjustments of the Finance Minister's Orders not reflected
above
Total as at 30 June 2010
Balance brought forward from previous period
Appropriation Act:
Appropriation Act (No. 2, 4 & 6) 2009-10 as passed
Total appropriations available for payments
Cash payments made during the year (GST inclusive)
Appropriations credited to Special Accounts (GST exclusive)
Balance of authority to draw cash from the consolidated revenue fund
for other than ordinary annual services appropriations and as
represented by:
Particulars
2009
$'000
6,340
7,164
13,504
(7,164)
6,340
6,340
6,340
2010
$'000
6,340
6,340
6,340
6,340
6,340
Equity
2010
$'000
-
-
-
-
-
Loans
2009
$'000
-
-
-
-
-
-
-
-
-
7,779
7,779
(7,779)
-
2010
$'000
-
-
-
(7,779)
7,779
2009
$'000
Previous Years’ Outputs
Non – operating
2010
$'000
-
-
-
-
-
2009
$'000
Admin assets and liabilities
Table B: Acquittal of authority to draw cash from the consolidated revenue fund for other than ordinary annual services appropriations
NOTE 26: APPROPRIATIONS
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
-
-
-
-
6,340
-
6,340
7,779
14,119
(7,779)
6,340
2010
$'000
6,340
Total
6,340
(7,779)
14,119
7,164
13,504
(7,164)
6,340
2009
$'000
6,340
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 26: APPROPRIATIONS
Table C: Acquittal of authority to draw cash from the consolidated revenue fund - special
appropriations (unlimited amount)
Child Support (Registration and Collection) Act 1988 Section 77
Purpose: To enable payments to be made to cover shortfalls in the
Child Support special account.
Cash payments made during the year
Appropriations credited to Special Accounts
Estimated actual
2010
$'000
66,669
84,499
2009
$'000
70,414
78,759
Child Support (Registration and Collection) Act 1988 Section 78
Purpose: To enable payments to be made to cover unexplained
remittances in the Child Support special account.
Cash payments made during the year
Appropriations credited to Special Accounts
Repayments to the Commonwealth (net) (FMA Act section 30 )
Total charged to appropriation
Estimated actual
TOTAL
Cash payments made during the year
Appropriations credited to Special Accounts
Repayments to the Commonwealth (net) (FMA Act section 30 )
Total charged to appropriation
Estimated actual
2010
$'000
2010
$'000
2009
50
66,669
84,549
$'000
50
2009
$'000
70,414
78,809
Department of Human Services Annual Report //
171
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 27: SPECIAL ACCOUNTS
2009
2010
$'000
$'000
Legal Authority: Financial Management and Accountability Act 1997 section 20
Appropriation: Financial Management and Accountability Act 1997 section 20
Purpose: To temporarily hold amounts on behalf of persons or entities that are not subject to the FMA Act,
other than the Commonwealth.
Balance carried from previous period
Appropriation for reporting period
Costs recovered
Appropriations to take account of recoverable GST (FMA Act section
30A )
Realised investments
Other receipts
Total increase
Payments made
Repayments debited from the special account
Total decrease
Balance carried to next period and represented by:
Cash - transferred to the Official Public Account
Cash - held in the Official Public Account
Total balance carried to the next period
Other Trust Moneys (Departmental)
2009
2010
$'000
$'000
Legal Authority: Section 73, Child Support (Registration and Collection) Act 1988
Appropriation: Financial Management and Accountability Act 1997 section 21
Purpose: For the receipt of maintenance payments and the making of regular and timely payments to
custodial parents.
Balance carried from previous period
55,789
22,095
Adjustments for prior years
29,822
Child Support (Registration & Collection) Act 1998 Section 77
66,669
70,464
Child Support (Registration & Collection) Act 1998 Section 78
Ordinary annual services
1,628
3,941
Other receipts
1,031,473
994,209
Costs recovered
Appropriations to take account of recoverable GST (FMA Act section
30A )
Total increase
1,155,559
1,120,531
Payments made:
Payments to custodial parents
(1,101,987)
(990,337)
Repayments debited from the special account
(1,619)
(74,405)
Total decrease
(1,103,606)
(1,064,742)
Balance carried to next period and represented by:
51,953
55,789
Cash - held in the Official Public Account
51,953
55,789
Total balance carried to the next period
51,953
55,789
Child Support special account (administered)
172 // CHAPTER 6: Financial statements
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 28: COMPENSATION AND DEBT RELIEF
2010
2009
Administered
$1,998
$5,196
184 waivers of amounts owing to the Australian Government were made pursuant
to subsection 34(1) of the Financial Management and Accountability Act 1997
(2009: 195).
$1,271,015
$911,330
No waivers of amounts owing to the Australian Government were made pursuant
to section 23 of the Disability Services Act 1986 . (2009: Nil).
-
-
No ex-gratia payments were provided for during the reporting period. (2009: No
payments)
-
-
$33,927
$109,687
$136,860
$81,755
Three ‘Act of Grace’ expenses were incurred during the reporting period (2009:
One expense).
Departmental
Six compensation claims were paid during the reporting period. (2009: 10
payments made).
Under the 'Compensation for Detriment caused by Defective Administration
Scheme' (CDDA) 33 payments were made during the reporting period (2009: 25).
This includes an amount of $70,819 which was paid directly to the client.
Department of Human Services Annual Report //
173
DEPARTMENT OF HUMAN SERVICES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2010
NOTE 29: REPORTING OF OUTCOMES
Net Cost of Outcome Delivery
Expenses
Administered
Departmental
Total
Income from non-government sector
Administered
Activities subject to cost recovery
Total administered
Departmental
Activities subject to cost recovery
Total departmental
Total
Other own-source income
Administered
Departmental
Total
Net cost of outcome
Outcome 1
2010
2009
$’000
$’000
1,229,906
741,185
1,971,091
1,339,798
687,979
2,027,777
26,841
26,841
26,841
13,218
13,218
13,218
1,252,264
182,938
1,435,202
509,048
1,242,007
180,489
1,422,496
592,063
Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that
are eliminated in calculating the actual Budget outcome.
174 // CHAPTER 6: Financial statements
Department of Human Services Annual Report //
175
Appendices
Appendix A—Occupational health and safety
Section 74 of the Occupational Health and
Safety Act 1991 (OH&S Act) requires each
Australian Government department to include
details in its annual report of:
• the health and safety management
arrangements of the department
• initiatives taken during the year to ensure
the health, safety and welfare at work of
employees and contractors of the department
• the health and safety outcomes as a result of
initiatives taken during the year
• statistics of any accidents or dangerous
occurrences during the year that arose
out of the conduct of undertakings by the
department or authority and that required
the giving of notice under section 68 of the
OH&S Act
• any investigations conducted during the year
that relate to undertakings carried on by the
employer, including details of all notices given
to the employer under sections 29, 46 and 47
of the OH&S Act during the year
• such other matter required by guidelines
approved on behalf of the parliament by
the Joint Committee of Public Accounts
and Audit.
Department (including
the Child Support
Program, and excluding
CRS Australia)
In 2009–10 the department worked to
improve overall health and safety across the
organisation by:
• implementing the Health and Safety
Management Arrangements (HSMAs),
including ensuring OH&S committees and
other consultative arrangements are in place
and working effectively
• developing and implementing a new
OH&S policy framework to support HSMA
implementation. This saw the development
and endorsement of:
178 // APPENDICES
–– policies to guide decision making—
including the framework that outlines the
department’s OH&S management system
–– procedures to provide practical instructions
and steps required to meet policy and
legislative requirements
–– hazard guidelines to assist risk assessment
processes
–– numerous new report templates and
forms to streamline completion and ensure
consistency and compliance
• developing and implementing a national
OH&S plan to focus strategies on improving
overall OH&S performance. The plan is
reviewed by the national health and safety
sub-committee each quarter
• coordinating two workshops for rehabilitation
case managers and HR officers to build
capability, share information and resolve
issues, with a particular focus on mental
health awareness issues and the management
of complex psychological injury cases
• conducting quarterly workplace hazard
inspections at each site to identify and
address any potential OH&S hazards and
conduct risk assessments associated with
changed business practices and procedures
• developing a Building a Healthier DHS Plan
to provide a consolidated and integrated
approach to achieving a high-performance
workplace culture
• developing and implementing a wellbeing
program to address issues identified from an
earlier health survey. Activities included:
–– providing influenza vaccinations
–– conducting a ten-week walking challenge
–– subscribing to an online wellbeing magazine
–– conducting and promoting seminars and
special events such as Mental Health week
and Safe Work Week
• developing a departmental pandemic plan
and HR support plan in response to the
H1N1 pandemic
• developing an OH&S e-learning module for all
staff along with an OH&S training module for
supervisors and team leaders
Table 15—Department of Human Services (including the Child Support Program)—workers
compensation claims 2008–09 and 2009–10
1
2008–09
2009–10
Increase (%)
New claims lodged with Comcare (lodged in that
financial year regardless of date of injury)
59
59
0
Claims accepted by Comcare (with a date of injury in
that financial year)1
23
31
34.8
New claims that incurred five or more days of incapacity
(per 1000 full-time equivalent employees)
5.8
7.4
27.6
Total weeks of compensation leave incurred by new and
existing claims (per 1000 full-time equivalent employees)
236
259
9.7
At 1 July 2010.
• developing an online OH&S incident reporting
process to streamline reporting, encourage
better incident investigation and support
more efficient reporting. The module will be
implemented in July 2010.
• introducing monthly reporting on the OH&S
induction process with follow up procedures
to ensure 100 per cent compliance
During 2009–10 the department (including
the Child Support Program) had 13 workplace
incidents that required notification to Comcare
under section 68 of the OH&S Act. No notices
were given by or to the department under
sections 29, 46, 47 or 68 during the year.
• promoting Mental Health Week and Safe
Work Week via the CRS Australia intranet and
through health and safety representatives in
each designated work group
CRS Australia
CRS Australia has in place Health and
Safety Management Arrangements (HSMA)
which were developed in consultation with
staff and provide a comprehensive safety
management system.
During 2009–10 CRS Australia worked to
improve OH&S in a number of ways, including:
• monitoring the H1N1 pandemic in
conjunction with other Department of Human
Services agencies and providing safety advice
to all staff via the CRS Australia intranet
• implementing a workplace safety check
list that was completed with 100 per cent
compliance in all offices
• introducing follow-up with managers where
a staff member has in excess of five days sick
leave within one month
• reviewing and updating CRS Australia's
client aggression policy to embrace
Comcare’s best practice procedures
regarding client aggression
• continuing to promote early intervention
strategies and procedures to reduce
unplanned absences and lower compensation
claim rates
• conducting training for all managers on
Comcare premium, the OH&S Act and the
Safety, Rehabilitation and Compensation Act
1988 (SRC Act)
• commencing a review of HSMA to be
completed late 2010.
Department of Human Services Annual Report //
179
During 2009–10 CRS Australia notified
Comcare of 59 workplace incidents under
section 68 of the OH&S Act. No directions were
given under sections 29, 46 or 47. Eighteen
compensation claims were lodged with
Comcare, of which 11 were accepted.
Table 16—CRS Australia—workers compensation claims 2008–09 and 2009–10
1
2008–09
2009–10
Change (%)
New claims lodged with Comcare (lodged in that financial
year regardless of date of injury)
20
18
–10%
Claims accepted by Comcare (with a date of injury in that
financial year)1
13
11
–15%
New claims that incurred five or more days of incapacity
(per 1000 full-time equivalent employees)
7
9
+29%
Total weeks of compensation leave incurred by new and
existing claims (per 1000 full-time equivalent employees)
340.57
327.56
–4%
At 1 July 2010.
180 // APPENDICES
Appendix B—Freedom of information
Freedom of information
reforms
The new freedom of information reforms were
passed in parliament on 13 May 2010 with the
principal objective of promoting a pro-disclosure
culture across the Australian Public Service to
build a stronger foundation for more openness
in government.
Department of Human Services agencies
will proactively ‘push’ information into the
public arena, to supplement the current ‘pull’
approach when customers and journalists pull
that information out of Australian Government
agencies through FOI requests.
Some of the reforms include:
• no fees for FOI applications
• no charges for FOI requests for personal
information
• the ability for FOI applications to be
submitted online
• a database for non-personal FOI decisions
available online and an Information
Publication Scheme (IPS) plan to be available
on 1 January 2011.
The IPS requires portfolio agencies to publish
a range of information on the internet, or
advertise how the information can be obtained.
The range of information includes operational
information held by the agency to assist in
exercising powers and functions when making
decisions or recommendations affecting
customers, as well as any other information that
the agency may wish to publish.
The department is required under section 8 of
the Freedom of Information Act 1982 (FOI Act)
to publish a statement setting out the following:
• the department’s particulars and functions
indicating the decision-making powers and
other powers affecting members of the public
in relation to those powers
• the department’s arrangements for persons
outside the organisation to participate in
policy making or implementation
• the categories of documents that the
department possesses
• the procedures that a member of the public
needs to follow to gain access to those
documents under the FOI Act.
Information on the annual statistics of FOI
requests received by the department can be
accessed through the Department of the
Prime Minister and Cabinet’s website at
www.pmc.gov.au.
Particulars and
functions
For particulars and functions of the department,
see pages 8–13.
Decision-making powers
In 2009–10 the Secretary of the Department,
the Child Support Registrar, the General
Manager of CRS Australia and other officers
exercised decision-making powers, made
payments and undertook delivery of programs
under various Acts, or parts of those Acts:
• Child Support (Assessment) Act 1989
• Child Support Legislation Amendment
(Reform of the Child Support Scheme—
Initial Measures) Act 2006
• Child Support Legislation Amendment
(Reform of the Child Support Scheme—New
Formula and Other Measures) Act 2006
• Child Support (Registration and Collection)
Act 1988
• Disability Services Act 1986.
Arrangements for
outside participation
The department is open to the views of
organisations and individuals, and provides
opportunities to contribute to policy
development and its implementation.
Any organisation or person interested in
participating in the department’s formulation
Department of Human Services Annual Report //
181
of policy, or the development of programs to
implement a policy, should write to the Minister
for Human Services, the Secretary of the
Department of Human Services or the General
Manager of CRS Australia.
Categories of documents
The department holds the following categories
of documents:
• documents relating to meetings (such as
agendas, minutes and reports)
• internal administrative records, such as
personnel files, staffing and financial records,
and office procedures
• working files, including departmental
correspondence, analysis and advice
• documents relating to Child Support Program
and CRS Australia’s service delivery, including
individual case files and papers
• government policy documents, including
recommendations and decisions
• documents related to legal advice given and
received, and other legal documents such as
transcripts of proceedings
• papers relating to new and amending
legislation, drafting instructions and draft
legislation
• media releases and copies of public addresses
and presentations
• briefing papers and submissions prepared for
the Minister for Human Services
• copies of questions in the Parliament together
with replies and other related correspondence
• records of papers prepared for Cabinet and
the Federal Executive Council, including
submissions and minutes
• documents that relate to the department’s
specific functions, for example finance
• tender and contract documents.
More information about the classes of personal
information the department holds is available
from the Office of the Privacy Commissioner at
www.privacy.gov.au/government/digest.
182 // APPENDICES
Public access to
documents
The department provides various publications,
including program and service statistics, to the
public. This information may be accessed from
the publications webpage of the department’s
website at www.humanservices.gov.au.
In addition, the department makes information
related to the Child Support Program freely
available to the public, including child support
forms, brochures, CD-ROMS and booklets.
Free copies of policy guidelines, procedural
instructions, rulings and determinations are also
available. Many of these documents may be
accessed at www.csa.gov.au.
CRS Australia also makes brochures and
pamphlets freely available to the public. Many
of these documents may be accessed at
www.crsaustralia.gov.au.
Procedure and contact
details—Department
(including the Child
Support Program)
The department’s contact officer can advise
interested persons on FOI matters and discuss
the nature and scope of an intended request.
A request for access to documents under the
FOI Act must be in writing, should enclose a
$30 application fee and state an address in
Australia to which notices can be sent.
For a prompt response, applicants should
provide as much information as possible about
the documents they wish to access. They should
also include a telephone number or an email
address to allow officers handling their request
to contact them if clarification is needed.
Applicants may be liable to pay charges at rates
prescribed by the Freedom of Information (Fees
and Charges) Regulations. However, in certain
circumstances the fee may not be required and
will be remitted.
The National FOI Coordinator for the
department (including the Child Support
Program) can be contacted at:
GPO Box 9815
Sydney NSW 2000
Phone: 1300 559 365
Procedures and contact
details—CRS Australia
A request to CRS Australia for access to
documents under the FOI Act must be in
writing, should enclose a $30 application
fee and should state an address in Australia
to which notices can be sent. In certain
circumstances the fee is not required or can
be remitted.
Where people seek documents containing their
own information, CRS Australia follows informal
guidelines that eliminate the need for a formal
FOI application in most cases. An informal
request for access to documents can be made
either verbally or in writing to the person’s
rehabilitation consultant.
Information sheets outlining the FOI application
process are available for potential applicants.
CRS Australia officers who can advise on FOI
matters and discuss the nature and scope of an
intended request can be contacted through the
FOI Coordinator.
FOI Coordinator
CRS Australia
Locked Bag 8720
Canberra ACT 2601
Phone: 02 6211 6900
Fax:
02 6211 6902
Department of Human Services Annual Report //
183
Appendix C—Advertising and market research
Section 311A of the Commonwealth Electoral
Act 1918 requires the annual report of each
Australian Government department or agency to
include a statement setting out particulars of the
amounts paid by, or on behalf of, the department
or agency during the financial year to advertising
agencies, market research organisations, polling
organisations, direct mail organisations and/or
media advertising organisations.
For 2009–10 particulars of payments of
less than $10 900 (inclusive of GST) are not
required. The following tables detail payments
of $10 900 or more spent on advertising and
market research by the Department (including
the Child Support Program) and separately for
CRS Australia.
Department of Human Services
Table 17—Department of Human Services—payments for advertising and market research, 2009–10
Advertising agencies
Payee
Purpose
Amount
($)
–
Nil1
Market research organisations
Colmar Brunton
Market Testing of CD-ROM and Storybook
75 000
Open Mind Research
Final Market Research for Child Support Scheme reforms
95 513
Open Mind Research
Joint DHS/Centrelink research on Communicating with
Families Post SDR (paid by DHS)
145 959
Polling Organisations
Nil
–
Direct mail organisations
Rothfield Print
Management
Provide storage, distribution and printing services for DHS
publications (including management of the CSA 1800 call
centre and CSA Webmaster order services)
1 253 643
Salmat Document
Distribution
Manage document distribution (including CSA customers’
monthly statements and CSA customer newsletters)
3 245 238
Media advertising organisations
1
Adcorp
Place non-campaign, non-recruitment advertising
94 730
Adcorp
Recruitment advertising
116 877
Telstra
Place advertising in the 2010 White Pages Directory (capital
cities, regional directories and Telstra White Pages online)
244 449
Child Support Program—no advertising agency spend in 2009–10.
Note: All amounts are goods and services tax exclusive. Totals include Net Media Spend, Adcorp Service Charges and CAF (which is
remitted to Department of Finance).
184 // APPENDICES
CRS Australia
Table 18—CRS Australia—payments for advertising and market research, 2009–10
Payee
Purpose
Amount ($)
Advertising agencies
–
Nil
Market research organisations
–
Nil
Polling organisations
–
Nil
Direct mail organisations
–
Nil
Media advertising organisations
hma Blaze
Non-campaign advertising (non-recruitment)
6901
hma Blaze
Recruitment advertising
8216
Adcorp
Non-campaign advertising (non-recruitment)
Adcorp
Recruitment advertising
Sensis
Yellow Pages print directory advertising
25 745
Telstra
White Pages print directory advertising
78 969
12 707
113 514
Department of Human Services Annual Report //
185
Appendix D—Ecologically sustainable
development and environmental performance
Following the December 2009 announcement
of major reform to Australian Government
service delivery, integration of enabling
service areas of the Human Services portfolio
commenced. Environmental management teams
from Department of Human Services, Medicare
Australia and Centrelink joined together to
ensure the portfolio agencies continue to
conduct their business in an environmentally
responsible manner.
Section 516A of the Environment Protection
and Biodiversity Conservation Act 1999 (EPBC
Act) requires Commonwealth organisations
to report annually on their environmental
performance and contribution to the principles
of ecologically sustainable development (ESD).
All portfolio agencies are committed to:
• complying with all relevant environmental
legislation and regulations
• operating in a manner that minimises
environmental impacts and prevents pollution
• setting environmental objectives and targets
for continuous improvement.
Programs that accord with
the principles of ESD—
section 516A(6)(a)
The department does not administer any
programs that have a direct impact on
ecologically sustainable development. Its
procurement policies, motor vehicle policy and
practice of sustainable office management accord
with ESD principles. Details of those policies
and practices are reported under measures
taken to minimise the effect of activities on the
environment—Section 516(6)(d) on page 187.
How outcomes contribute
to the principles of ESD—
section 516A(6)(b)
The department’s contribution to ESD is the
effective delivery of Australian Government
services with minimised environmental impact.
186 // APPENDICES
The department has developed environmental
management strategies to maximise the
proportion of renewable materials and
energy used to achieve business outcomes
and minimise associated waste production
through efficient consumption of resources
and waste recycling.
Department
(excluding CRS Australia)
How activities accord with
the principles of ESD—
section 516A(6)(a)
During 2009–10 the Department of Human
Services continued to conduct operations in an
environmentally responsible manner. Potential
impacts were mitigated through efficient use
of resources, effective waste management and
pollution prevention. The department continued
the development and implementation of an
environmental management system that aligns
to the International Standard ISO 14001:2004.
Environmental policies, plans and procedures
influence the decision-making processes of the
agency.
Effect of activities on the
environment—section 516A(6)(c)
The department’s daily operations have an
impact on the environment. While carrying
out its business, resources such as electricity,
paper and water are consumed and waste
is generated. The department is committed
to managing the effects of its business
activities on the environment and improving
environmental performance.
Measures taken to minimise
the effect of activities on the
environment—section 516(6)(d)
Environmental management system The department’s Environmental Management
System (EMS) is a tool designed to manage the
impacts of the department’s business activities
on the environment. The system contributes
to the department’s program outcomes and
accords with the principles of ecologically
sustainable development.
Implementation of its EMS has generated
significant environmental benefits for the
department. It has also facilitated better
resource allocation and cost savings, and
contributed to overall staff satisfaction.
Environmental policies, procedures
and guidelines
The department’s policies, procedures and
guidelines inform the public and its staff of
the way it intends to manage its environmental
performance. These policies, procedures
and guidelines ensure the environment is
considered during business planning and
decision-making processes.
2009–10 environmental
management objectives and targets
A major product of the EMS is the development
of a set of environmental management
objectives, targets and performance
indicators that form the basis for measuring
the effectiveness of yearly environmental
management programs. Table 19 outlines the
department’s environmental management targets
for 2009–10.
Table 19—Department of Human Services environmental targets
Measure
Target
Energy
Office —tenant light and power
≤ 7500 MJ per person
Office—central services
≤ 400 MJ per m²
Other buildings
≤ 130 MJ per m²
Greenhouse
Total greenhouse emissions
≤ 17 000 CO2-e tonnes
Total greenhouse offsets
≥ 1500 CO2-e tonnes
Blended fuel utilisation Ethanol
E10 utilisation
Agency specific1
Paper use
External paper use (tonnes)
Agency specific1
Internal A4 copy paper use (tonnes)
Agency specific1
Waste
General office landfill waste of total
1
Agency specific1
Audits to be undertaken to determine agency specific targets for the Department of Human Services.
Department of Human Services Annual Report //
187
Environmentally aware
business culture
was established by Centrelink, the Department
of Defence and the Australian Taxation Office to
drive environmental performance improvements
within public agencies. It has as its aims to:
• share best practice ideas on environmental
management
• initiate best practice activities for public
agencies
• facilitate uptake of ideas within agencies.
The department is adopting a continuous
education program across all locations to train
staff on environmental policies and procedures,
thereby raising environmental awareness and
improving environmental performance.
Internal environment program
The Government Agencies Environment
Network has over 30 participating agencies.
A network of Green Teams has been
established. Green Team members have a
local or regional role of communicating and
promoting green office awareness practices
and overseeing the implementation of
environmental recommendations within the
business generally.
Energy
Stationary energy use
In May 2010 the department rolled out an
automatic computer shutdown program for
desktop computers across all departmental
sites. This initiative is estimated to save up to
$135 000 per year on electricity costs and 900
tonnes in carbon dioxide emissions.
In practice, this arrangement generates
local environmental networks within the
various business units of the department’s
organisational structure. The program is
supported by training and awareness activities
included in the department’s National Induction
Program. All new department employees
participate in this training.
The department now has eight Green Lease
Schedules in accordance with the Energy
Efficiency in Government Operations policy.
Each schedule incorporates a signed Energy
Management Plan between the department
and building owners to achieve required energy
targets for a 4.5 star National Australian Built
Environment Rating Scheme (NABERS) rating.
External—government sector
The Department of Human Services continues
its role as a member of the Government
Agencies Environment Network. The network
Table 20—Stationary energy use for department
Measure
Metric
2007–08
2008–09
Energy
Stationary energy use
GJ
NABERS rated 4.5 or above
Sites
Greenhouse
Greenhouse gas emissions
tCO2-e
11 613
12 185 Greenhouse gas offsets
tCO2-e
607 170
51 0671 2
0 1 0
49 971
1
1
These figures include total stationary energy use for Department of Human Services.
2
Data not available until 31 October 2010.
188 // APPENDICES
2009–10
2
2
Transport
The department continues to ensure that
fleet vehicles, where fit for purpose, have a
Green Vehicle Guide rating of 10.5 or greater.
The department’s E10 fuel policy remains in
place and staff are required to purchase E10
fuel if possible.
Paper
The department has successfully trialled the
implementation of default duplex print settings
for two departmental sites. When rolled out
nationally it is estimated to save the department
12 000 reams of paper per year or potentially
some $60 000 per year.
Waste
Waste audits have been conducted at
11 departmental sites. Recommendations will be
integrated into a national cleaning contract being
developed by Jones Lang Lasalle, the department’s
contracted property management services
provider. This measure will provide nationally
consistent requirements and related KPI’s for
the removal and sorting of waste and improve
diversion of landfill to the recycling stream.
Greening information and
communications technology strategy
In response to the 2008 Gershon Review of
information, Communications and Technology
(ICT) in Government, the department developed
an ICT Energy Management Plan. To improve
the environmental performance of its ICT
estate the Australian Government initiated
the development of a whole-of-government
ICT Sustainability Plan. The plan required
large government agencies to develop an ICT
energy management plan. The department has
identified areas for improvement, considered
how ICT can enable sustainability and estimated
its ICT energy consumption. The department
is committed to working towards ICT energy
consumption targets and reviewing the plan
annually.
Mechanisms for reviewing and
increasing the effectiveness of
environmental management
strategies—section 516A(6)(d)
The department continues to implement its
environmental management system. Objectives
and targets are determined and reviewed on a
regular basis.
Table 21—Department of Human Services transport energy
1
Measure
Metric
2007–08
2008–09
2009–10
Transport energy use
GJ
2155 1607
Cars GVG 10.5 and above
%
Unavailable 100 Ethanol Blend fuel use
(year end)
%
32
58
1
90
1
Data not available until 31 October 2010.
Table 22— Department of Human Services materials use
Measure
Metric
Materials
Paper use (internal copy)
tonnes
Recycled content (copy paper)
%
2007–08
2008–09
2009–10
90
78
89
0
50 50 Department of Human Services Annual Report //
189
CRS Australia
How activities accord with
the principles of ecologically
sustainable development (ESD)
The following sections specifically address
the requirements of section 516A(6) of the
EPBC Act.
Activities and administration
of legislation accord with ESD
principles
CRS Australia does not administer any
legislation that has a direct impact on ESD
principles identified under section 516A(6)(a)
of the EPBC Act. In its procurement policies
its motor vehicle policy and its practice of
sustainable office management it accords
with ESD principles. Details of those policies
and practices are reported under Measures
taken to minimise the effect of activities on
the environment.
Activities that affect the
environment
CRS Australia leased more than 180 offices
nationally, occupying mostly small tenancies.
Lease arrangements limited the ability to control
environmental issues and to measure outcomes,
including energy usage, water and waste.
Policy and procedures are in place for
managing energy consumption within the
contraints of lease agreements. Energy and
waste statistics are reported to the CRS
Australia Executive, to the Government Energy
Efficiency Team at the Department of Climate
Change and Energy Efficiency, and the waste
section of the Department of Environment,
Water, Heritage and the Arts. This data was
released into the public domain. CRS Australia’s
total greenhouse gas emissions associated with
the use of electricity, gas, and vehicles
are outlined in Table 23 on page 191.
190 // APPENDICES
Measures taken to minimise
the effect of activities on the
environment
In 2009–10 CRS Australia focused on
effective environmental management. This was
reflected in its environmental policy and EMS.
The EMS was updated in late 2009 and is based
on the international specification ISO 14001:2004,
which incorporates environmental considerations
in business planning and decision-making.
The EMS targets key areas such as energy
consumption, fleet vehicles, recycling and
increasing environmental awareness.
Energy
As part of its commitment to reduce energy use
and meet government greenhouse gas emission
targets, in 2009–10 CRS Australia:
• purchased 10 per cent of its energy as
certified renewable energy (GreenPower)
in New South Wales, the Australian Capital
Territory, South Australia and Victoria
• encouraged nightly shutdown and the use of
sleep modes for computing and other office
machinery
• continued the automatic shutdown of
computers each weekend and started an
eiPower Pilot—this will allow power policies
to be applied to PCs, so they can be turned
off after specified periods of inactivity.
The objective of the eiPower software is a
reduction in power consumption to meet
green standards and to realise cost savings
• began to implement virtual data centre
servers to reduce the physical footprint and
power consumption
• continued to replace incandescent lighting
with T5 lighting (narrow-diameter fluorescent
light tubes) where possible
• continued to use timers and sensor switches
for lights where possible
• commenced trials for the Desktop Faxing
Project. The project will involve the transition
from physical fax machines to desktop faxing,
which will reduce power usage and costs.
Table 23—CRS Australia stationary energy use
1
Measure
Metric
2007–08
2008–09
Energy
Stationary energy use
GJ
21 636
19 728
Greenhouse
Greenhouse gas emissions
tCO2-e
6 021
5 765 Greenhouse gas offsets
tCO2-e
79.44
128.44
2009–10
1
1
1
Data not available until 31 October 2010.
Transport
in selected sites. Currently all staff have the
Standard Office Communicator software, which
enables Presence and Instant Messaging. An
initial user group also received the Enterprise
Office Communicator software, which enables
video and voice conferencing.
All 220 of CRS Australia’s fleet vehicles
are subscribed to the Green Fleet Carbon
Offset Program. This equates to an offset
of 1002.2 tonnes of CO2-e (carbon dioxide
equivalent), achieved by planting a total of 3740
biodiverse trees.
Reducing waste and promoting
recycling
Under CRS Australia’s motor vehicle policy,
metropolitan offices must have a business
fleet of four-cylinder cars; the same policy is
promoted in regional areas. The use of vehicles
that run on alternative fuels such as ethanolblended fuel is encouraged.
The National Packaging Covenant is
aimed at reducing waste and promoting
recycling. CRS Australia participated in this
initiative and began a rolling replacement
of all multifunction devices (MFDs) in
the organisation in 2010. All MFDs were
defaulted to duplex printing and an overall
reduction in the consumption of paper usage
was encouraged, along with the use of
electronic publishing and communication, and
purchasing paper with 50 per cent recycled
content where possible.
In 2009–10, on average, all vehicles in the fleet
exceeded the Government Green Vehicle Guide
(GVG) efficiency target, and over 80 per cent
rated in the top half.
CRS Australia is also planning to reduce
travel through the implementation of Office
Communicator video and voice conferencing
Table 24—CRS Australia transport energy use
1
Measure
Metric
2007–08
2008–09
Transport energy use
GJ
11 717 10 923 Cars GVG 10.5 and above
%
52
64
Ethanol blend fuel use (year end)
%
11
11 2009–10
1
80 1
Data not available until 31 October 2010.
Department of Human Services Annual Report //
191
Since 2008–09 there has been a general trend
toward increasing energy efficiencies, reducing
consumption (where possible), and an increase
in recycling throughout the organisation.
Though not large in percentage terms,
a general increase in environmental awareness
and behavioural change has meant that
progress is being made.
CRS Australia continued its participation in
Close the Loop®, a printer and toner cartridge
recycling program. All brands of printer
consumables are accepted and there is a
guarantee that no material from this process is
sent to landfill. Mobile phone musters are also
conducted as required.
Most CRS Australia offices use commingled
recycling and paper and cardboard recycling.
It is hard to accurately measure the results
because most offices are leased and have shared
waste and recycling arrangements. Waste is
reported to the Department of Environment,
Water, Heritage and the Arts each year using
the National Packaging Covenant (NPC)
Reporting Tool.
The amount of printer consumables being
recycled has increased slightly, though there has
been a move towards the use of multi functional
devices (MFDs) across the organisation to limit
the number of printers and copiers required.
Conversely, the amount of paper being
purchased has increased. This can be largely
attributed to changed Disability Employment
Service purchaser expectations requiring job
seeker plans to be printed more frequently.
Performance analysis
Almost all paper in the organisation is now
purchased with recycled content, representing
an increase of close to 14 per cent since
2007–08. See Table 25.
CRS Australia experienced fluctuations in
environmental effects between 2008–09 and
2009–10, particularly in the areas of energy
and recycling. As CRS Australia operates
predominantly in office environments, the
greatest benefits can be felt in these areas.
Environmental awareness campaigns are
promoted across the organisation with the
aid of the Green Teams. This represents
an important contribution in the general
trends evident.
Table 25—CRS Australia green procurement
Measure
Metric
Materials
Green office consumables
%
Paper use (internal copy)
tonnes
Recycled content (copy paper)
Recycled print consumables (Close the Loop)
192 // APPENDICES
2007–08
2008–09
2009–10
10.9 14.9 17.7 67.56 55.33 73.61 %
86
99.7
97.6
kg
550
464
482
Mechanisms for reviewing and
increasing the effectiveness of
measures to minimise the impact
of activities
ESD principles are included in the new
CRS Australia Strategic Plan 2009–12 and
are identified as a key strategy in the national
business plan.
The National Environmental Coordinator
reviewed and promoted environmental
initiatives and assisted with addressing reporting
requirements. As well, an Environmental
Management Committee was established to
coordinate and formulate recommendations to
the executive regarding environmental initiatives
across the organisation.
Mechanisms to increase the effectiveness
of measures to minimise impact on the
environment in 2009–10 included raising staff
awareness by:
• creating an Environmental Management
Committee made up of a cross section of
CRS Australia staff to provide information
and feedback on environmental proposals
submitted to the executive. This provides a
measure of transparency and staff support
when developing new initiatives
• developing an online environmental audit
that can be used annually for all offices
to measure behavioural change in the
organisation
• promoting the application of eiPower
policy to all PCs so they can be turned
off automatically after specified periods
of inactivity. This will reduce the power
consumption for PCs, and is currently being
trialled
• hosting an online environmental discussion
group to implement ideas from staff across
Australia
• publishing environmental hints, tips and
articles on the environmental pages of the
intranet site
• promoting and participating in external
environmental initiatives such as National
Recycling Week and Earth Hour 2010
• providing online environmental training
presentations and information sessions for
staff to access at their convenience
• providing assistance and advice to the Green
Team and other interested staff with regard
to environmental activities and requests for
information.
The EMS is reviewed annually to assess current
initiatives and implement updates.
CRS Australia is also part of the Government
Agencies Environmental Network which is
an important mechanism for providing and
receiving feedback on environmental initiatives.
Department of Human Services Annual Report //
193
Appendix E—Commonwealth disability strategy
The Commonwealth Disability Strategy provides
a framework to assist Australian Government
departments and agencies to meet their
obligations under the Disability Discrimination
Act 1992. Australian Government organisations
are required to report annually on their
performance in implementing the strategy.
The department reports its 2009–10 performance
against measures identified in the Department
of Families, Housing, Community Services and
Indigenous Affairs guide to reporting against
the Commonwealth Disability Strategy. The
department reports against the roles of policy
adviser (Table 26), purchaser (Table 27) and
provider (Table 28).
Table 26—Department of Human Services (excluding CRS Australia)—policy adviser role
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
New or revised policy/
program proposals
assess impact on the
lives of people with
disabilities prior to
decision
Percentage of new
or revised policy/
program proposals
that document
that the impact of
the proposal was
considered prior to
the decision-making
stage
The department
assesses the impact
of new or revised
program/policy
proposals on the
lives of people with
disabilities
Maintain
current
arrangements
Maintain
current
arrangements
People with
disabilities are
included in
consultation about
new or revised policy/
program proposals
Percentage of
consultations about
new or revised policy/
program proposals
that are developed
in consultation
with people with
disabilities
The department
consults the Human
Services agency
responsible for
delivering the
proposed policy, and
where appropriate,
consults stakeholders
who may be affected
by the policy. The
process ensures that
the service delivery
impact of new
policies on people
living with disabilities
is considered,
and that targeted
communication
strategies are
developed to support
successful service
delivery
Maintain
current
arrangements
Maintain
current
arrangements
194 // APPENDICES
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Public
announcements
of new, revised or
proposed policy/
program initiatives
available in accessible
formats for people
with disabilities in a
timely manner
Percentage of new,
revised or proposed
policy/program
announcements
available in a range of
accessible formats
Policy announcements
are available on the
website in accessible
formats
Maintain
current
arrangements
Maintain
current
arrangements
Time taken
in providing
announcements in
accessible formats
Policy announcements
are available on the
website in accessible
formats in a timely
manner
Maintain
current
arrangements
Maintain
current
arrangements
Table 27—Department of Human Services (excluding CRS Australia)—purchaser role
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Publicly available
information on
agreed purchasing
specifications are
available in accessible
formats for people
with disabilities
Percentage of publicly
available purchasing
specifications
requested and
provided in:
• accessible electronic
formats
• accessible formats
other than
electronic
Purchasing and
procurement
guidelines and
specifications are
made available on
request
Maintain
current
arrangements
Maintain
current
arrangements
Average time taken
to provide accessible
material in:
• electronic formats
• formats other than
electronic
No requests were
received beyond
suppliers self-accessing
information from the
department’s website
Provide
information
in a timely
manner
Maintain
current
arrangements
Percentage of
processes for
purchasing goods or
services that directly
impact on the lives of
people with disabilities
that are developed
in consultation with
people with disabilities
No tenders had a
direct impact on
people with disabilities
Ensure
consultation
where
practicable
Where
practicable,
ensure that
any purchasing
processes that
impact on
people with
disabilities
take account
of specific
needs and
requirements
Processes for
purchasing goods
or services with a
direct impact on
the lives of people
with disabilities
are developed
in consultation
with people with
disabilities
Where tenders
have direct impact
on people with
disabilities, the
department’s practices
include consultation
with stakeholders
including disability
groups
Department of Human Services Annual Report //
195
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Purchasing
specifications and
contract requirements
for the purchase of
goods and services
are consistent with
the requirements
of the Disability
Discrimination Act
1992 (DDA)
Percentage
of purchasing
specifications for
goods and services
that specify that
tender organisations
must comply with the
DDA
All tender documents
made reference
to compliance
with relevant
Commonwealth
legislation, including
the DDA
Maintain
current
arrangements
Maintain
current
arrangements
Percentage of
contracts for the
purchase of goods
and services that
require the contractor
to comply with the
DDA
All contracts included
the requirement that a
contractor must meet
all requirements as
outlined in the DDA
Maintain
current
arrangements
Maintain
current
arrangements
Publicly available
performance
reporting against the
purchase contract
specifications
requested in
accessible formats
for people with
disabilities is provided
Percentage of publicly
available performance
reports against the
contract purchasing
specification
requested and
provided in:
• accessible electronic
formats
• accessible formats
other than
electronic
Website material
complies with the Web
Accessibility Guidelines
where possible
Maintain
current
arrangements
Maintain
current
arrangements
Average time taken
to provide accessible
material in:
No requests were
received beyond
suppliers self-accessing
information from the
department’s website
Maintain
current
arrangements
Maintain
current
arrangements
All tender documents
contain specific
clauses on complaints
handling procedures
Maintain
current
arrangements
Maintain
current
arrangements
• electronic formats
• formats other than
electronic
Complaints/grievance
mechanisms,
including access to
external mechanisms,
in place to address
concerns raised
about provider’s
performance
196 // APPENDICES
Established
complaints/grievance
mechanisms,
including access to
external mechanisms,
in operation
Table 28—Department of Human Services (excluding CRS Australia)—provider role
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Providers have
established
mechanisms for
quality improvement
and assurance
Evidence of quality
improvement and
assurance systems
in operation
The department
has developed and
implemented a
comprehensive integrated
business management
system that includes
frameworks for managing
quality improvement and
assurance
Maintain
current
arrangements
Maintain
current
arrangements
New quality assurance
and performance
measurement frameworks
for Job Capacity
Assessment services were
introduced on 1 July 2008
as an outcome of the
Job Capacity Assessment
Review
Providers have
an established
service charter that
specifies the roles
of the provider and
consumer and service
standards which
address accessibility
for people with
disabilities
Established
service charter
that adequately
reflects the needs
of people with
disabilities in
operation
The Child Support
Program has a client
service charter that
specifies the role
of the provider and
the consumer—this
document is available on
the CSA website
Maintain
current
arrangements
Maintain
current
arrangements
Complaints/
grievance
mechanisms,
including access to
external mechanisms,
in place to address
concerns raised about
performance
Established
complaints/
grievance
mechanisms,
including access
to external
mechanisms, in
operation
The Child Support
Program has a well
established complaint
service that includes
access to external
mechanisms such as
the Commonwealth
Ombudsman and the
Social Security Appeals
Tribunal
Maintain
current
arrangements
Maintain
current
arrangements
Information from
complaints is fed back
to business decision
makers to improve service
delivery
Department of Human Services Annual Report //
197
Table 29—CRS Australia—purchaser role
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Publicly available
information
on agreed
purchasing
specifications
is available
in accessible
formats for
people with
disabilities
Percentage of
publicly available
purchasing
specifications
requested and
provided in:
• accessible
electronic
formats
• accessible
formats other
than electronic
Average time
taken to provide
accessible material
in:
• electronic
formats
• formats other
than electronic
CRS Australia
did not receive
any requests for
purchasing or
procurements
guidelines to
be provided in
alternate formats
100% of all
requests for
accessible
electronic
information
fulfilled within five
working days
Maintain current
arrangements
Processes for
purchasing
goods or services
with a direct
impact on the
lives of people
with disabilities
are developed
in consultation
with people with
disabilities
Percentage of
processes for
purchasing goods
or services that
directly impact on
the lives of people
with disabilities
that are developed
in consultation
with people with
disabilities
CRS Australia
continued to ensure
that any purchasing
processes that
impact on people
with disabilities
took into account
specific needs and
requirements
198 // APPENDICES
All contracts
included the
requirement
that a contractor
must meet all
requirements as
outlined in the DDA
A review of the
internal processes
for the use of
external service
providers was
conducted by the
National Service
Delivery Support
Team to ensure
that all client
purchases of
goods and services
meet legislative
requirements and
the needs of people
with a disability
100% of all
people requesting
information
in accessible
formats (other
than electronic)
will be advised
of the expected
delivery date of
their preferred
format within five
working days of
the request
100% of all
proposed
purchases
assessed as having
a direct impact
on people with
disabilities will
be developed in
consultation with
them and carers
or advocates
People with
disabilities have
high satisfaction
levels with
consultation about
any purchases of
goods or services
Ensure compliance
with Financial
Management and
Accountability Act
1997
Respond to and
deliver on requests
for information in
accessible formats in
the shortest possible
time
Maintain current
arrangements
All client-related
CRS Australia
purchasing processes
include consultation
and assessment
with clients where
applicable
Link all purchases to
the client’s program
and document
the rationale for
the purchase, for
example, using
an Employment
Pathway Plan
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Purchasing
specifications
and contract
requirements
for the purchase
of goods and
services are
consistent with
the requirements
of the Disability
Discrimination
Act 1992 (DDA)
Percentage
of purchasing
specifications
for goods and
services that
specify that tender
organisations must
comply with the
DDA
All tender
documents
made reference
to compliance
with relevant
Commonwealth
legislation, including
the DDA
100% of
CRS Australia
standard contracts
to include an
explicit reference
to compliance
with the DDA
All contracts to
continue to include
the requirement
that a contractor
must meet all
requirements as
outlined in the
DDA.
Percentage of
contracts for
the purchase of
goods and services
that require the
contractor to
comply with the
DDA
All contracts
included the
requirement
that a contractor
must meet all
requirements as
outlined in the
DDA
Continue to include
an explicit clause
in all requests for
tender standard
and non-standard
contracts specifying
that contractors
must comply with
the requirements
with relevant
Commonwealth
legislation, including
the DDA
Continue to provide
advice to managers
on the need for
DDA compliance
through the contract
management
guidelines
Look at opportunities
to purchase goods
or services from
Australia Disability
Enterprises as
opportunities arise.
Publicly available
performance
reporting against
the purchase
contract
specifications
requested
in accessible
formats for
people with
disabilities is
provided
Percentage of
publicly available
performance
reports against the
contract purchasing
specification
requested and
provided in:
• accessible
electronic
formats
• accessible
formats other
than electronic
Website material
complied with
Web Accessibility
Guidelines where
possible
100% of requests
for electronic
information to be
fulfilled within five
working days
Ensure the closing
date for tenders
consider the time
taken to supply
information in
accessible formats,
if appropriate and
in accordance with
the Commonwealth
Procurement
Guidelines (2005)
Department of Human Services Annual Report //
199
Performance
indicator
Complaints/
grievance
mechanisms,
including access
to external
mechanisms, in
place to address
concerns raised
about provider’s
performance
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Average time
taken to provide
accessible material
in:
• electronic
formats
• formats other
than electronic
CRS Australia
did not release
any performance
measures or
reports against
contract purchasing
specifications
100% of all
people requesting
information
in accessible
formats (other
than electronic)
will be advised
of the expected
delivery date of
their preferred
format within five
working days of
the request
Material available
on CRS Australia
website will
comply with
Web Accessibility
Guidelines where
possible
Established
complaints/
grievance
mechanisms,
including access
to external
mechanisms, in
operation
All tender
documents
contained specific
clauses on
complaint-handling
procedures
Maintain current
arrangements
Maintain current
arrangements
200 // APPENDICES
Performance
reports can be
made available (in
accessible formats)
on request
CRS Australia’s
service charter is
available online at
the CRS Australia
website www.
crsaustralia.
gov.au
Table 30—CRS Australia—provider role
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Providers have
established
mechanisms
for quality
improvement
and assurance
Evidence
of quality
improvement
and assurance
systems in
operation
External auditors
reviewed actions
undertaken to
address the two
minor nonconformities
identified in
2008–09 to ensure
certification under
the Disability
Services Standards
(DSS) is maintained
Maintain quality
assurance program
to ensure continuous
improvement of service
provision
Continue implementing
the program cycle and
use of quality data
to ensure the highest
standard of service was
provided to:
• the DEEWR-funded
job seekers with
disabilities
• clients assessed
under the Business
Services Wage
Assessment Tool
program
• job seekers who are
referred for a Job
Capacity Assessment
• clients who are
referred for
a Workplace
Rehabilitation
Program funded
by a Workers
Compensation
insurer
An annual review
audit to ensure
compliance
against the DSS
was conducted
with certification
recommended
with no nonconformities
recommended
CRS Australia
continued to
implement the
Quest for Quality
Program cycle, and
used the results to
improve processes
to ensure clients
receive the highest
standard of service
Obtain feedback from
clients and customers
regarding service
provision and translate
this into service
improvement
Continue evaluating
quality in service
delivery through
quality assurance and
improvement reviews
and analysis of client
and customer feedback
Undergo an annual
review audit to ensure
compliance against
the DSS
Department of Human Services Annual Report //
201
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Providers have
an established
service charter
that specifies
the roles of
the provider
and consumer
and service
standards
which address
accessibility
for people
with
disabilities
Established
service charter
that adequately
reflects the
needs of people
with disabilities
in operation
Through external
audit CRS Australia
obtained feedback
from clients on
their satisfaction
with the
information given
to them when
they commenced
services. No
updates to
resources were
required
CRS Australia staff
observe the standards
set out in the DEEWR
Disability Employment
Services (DES) Service
Guarantee and
Employment Services
Code of Practice in the
delivery of DES
CRS Australia will
obtain feedback
from clients on their
satisfaction with
services provided to
them
Interpreter services
were available
to clients who
required assistance
to understand
the VRS Service
Guarantee and
Employment
and Related
Services Code of
Practice and the
CRS Australia
Service
Commitment
Information in
other languages is
available on
CRS Australia’s
website
202 // APPENDICES
CRS Australia’s service
charter continues to be
available online at the
CRS Australia website
www.crsaustralia.
gov.au, which is
WC3 compliant for
accessibility
Clients are aware of
the service charter and
its content
Interpreter services to
continue to be made
available to job seekers
who require assistance
to understand the DES
Service Guarantee
and Employment and
Related Services Code
of Practice and the
CRS Australia Service
Charter
Appropriate assistance
to be arranged if job
seekers have difficulties
in understanding the
service charter
Office relocations to
consider access for
clients with particular
reference to public
transport, accessibility,
disability access and
facilities
Performance
indicator
Performance
measure
Performance
2009–10
Goals for
2010–11
Actions for
2010–11
Complaints/
grievance
mechanisms,
including
access to
external
mechanisms,
in place
to address
concerns
raised about
performance
Established
complaints/
grievance
mechanisms,
including access
to external
mechanisms, in
operation
An external audit
of CRS Australia’s
complaints
mechanism
was conducted.
Recommendations
will be
implemented in
2010–11
CRS Australia maintains
a comprehensive
complaints/grievance
mechanism which
permits access to
internal and external
mechanisms such as
the Administrative
Appeals Tribunal,
the Commonwealth
Ombudsman and the
Complaints Resolution
and Referral Service
Feedback is actively
sought from clients and
purchasers
Six-monthly
complaints reports
were provided to
the Executive
Concerns raised
by clients in
client feedback
questionnaires
continued to be
monitored at the
local level and
integrated in the
business planning
process to improve
service delivery
Ongoing review
and enhancement
of CRS Australia’s
complaints mechanism
Ensure clients and
staff are aware of the
complaints process
Ensure all DEEWRfunded job seekers
receive a copy of the
DEEWR DES Code
of practice and the
DES programs—your
service guarantee at the
commencement of a
program
Data collected from
audit and complaints
(including trends) to be
analysed and integrated
into the business
planning process to
improve service delivery
Include complaints
and appeal process in
relevant induction and
learning packages
Six-monthly complaints
reports to be provided
to the Executive
Concerns raised
by clients in
client feedback
questionnaires will be
monitored at the local
level
Ongoing review and
enhancement of
CRS Australia’s
complaints mechanism
and resources
Department of Human Services Annual Report //
203
Appendix F—Australian National
Audit Office activity
ANAO liaison
The Portfolio Audit and Assurance Division
works closely with the Australian National Audit
Office (ANAO) to develop and coordinate the
department's contributions to ANAO audit
activities. It also monitors the implementation of
recommendations from the ANAO audit reports.
The department has a collaborative and
productive relationship with the ANAO and
welcomes its audit and assurance activities. It
considers the ANAO Better Practice Guides to
be useful resources to help improve business
practices.
Tabled ANAO audit reports can be found on the
ANAO website at www.anao.gov.au. The full
report is published, including the recommendations.
Relevant Australian National Audit
Office audits tabled 2009–10
Report 17 of 2009–10, tabled 17 December
2009—Audits of the financial statements of
Australian Government entities for the period
ended 30 June 2009.
The preparation of audited financial statements
in compliance with the Finance Minister’s Orders
is a key element of the financial management
and accountability regime applicable to
Australian Government entities.
The ANAO audit found no significant or
moderate issues for the department.
Report 19, tabled 18 December 2009—Child
Support Scheme Reforms (CSSR) and improving
compliance
The audit assessed how effectively the
department, FaHCSIA and Centrelink managed
the implementation of stage one of the CSSR
and the improving compliance program.
The audit report had six recommendations.
The department agreed to all of them.
204 // APPENDICES
Report 39, tabled 24 May 2010—Medicare
Australia’s Administration of the Pharmaceutical
Benefits Scheme
The audit examined the effectiveness of
Medicare Australia’s administration of the
Pharmaceutical Benefits Scheme (PBS). The
ANAO considered:
• Medicare Australia’s relationship with the
PBS policy agency, the Department of Health
and Ageing, and the service delivery policy
agency, the Department of Human Services
• the management arrangements and
processes underpinning Medicare Australia’s
delivery of the PBS—including the means by
which Medicare Australia gains assurance
over the integrity of the PBS
• how Medicare Australia undertakes its three
main responsibilities relating to the delivery
of the PBS, namely—approving pharmacies,
approving authority prescriptions, and
processing PBS claims.
The audit resulted in five recommendations. The
department agreed with the recommendations;
however, none directly affected the department.
Report 46, tabled 22 June 2010—Child Support
Scheme Reforms: Building a Better Child
Support Agency (BBCSA).
The audit assessed CSA's effectiveness in
managing the implementation of the BBCSA
program.
The audit report had six recommendations.
The department agreed to all of them.
Recommendations from the two audits on the
Child Support Scheme reforms (including Report
19) are being addressed together with the
findings of an independent review conducted by
David Richmond AO into the appropriateness,
design and implementation of current decisionmaking processes and quality assurance
arrangements for CSP. See also Delivering
Quality Outcomes Review on page 52.
Report 50, tabled 24 June 2010—Interim phase
of the audit of financial statements of major
general government sector agencies.
This report presents the results of the interim
phase of the 2009–10 financial statement audits
of all portfolio departments and other major
general government sector (GGS) agencies that
collectively represent 95 per cent of the GGS
revenues and expenses.
The report concluded that controls were
operating satisfactorily to provide reasonable
assurance that the department can prepare
financial statements free of material
misstatement.
Continuing ANAO audits
CRS Australia
In June 2010 the ANAO commenced a
performance audit on the CRS Australia
business operation, its governance and
responsiveness to client feedback. The audit will
be finalised in 2010–11.
Other than the routine financial statements
audits, no audits involving CRS Australia were
tabled by the ANAO.
CRS Australia continued to monitor whole-ofgovernment ANAO audit reports to ensure that
compliance and best practice were maintained
within the organisation.
Department of Human Services Annual Report //
205
Appendix G—Commonwealth fraud control
guidelines certification
206 // APPENDICES
Appendix H—Staffing statistics
Department of Human Services
At 30 June 2010, 4584 staff were employed by Department of Human Services under the Public
Service Act 1999. This was an increase of 73 staff or 1.62 per cent since 30 June 2009.
Part-time work participation increased to 17.47 per cent of the workforce. Women comprised
72.47 per cent of all staff. All staff figures are based on headcount at 30 June 2010.
The following tables record staff against the positions they normally occupy, noting that some may be
working temporarily in other positions.
Table 31—Department of Human Services—staff by classification and location
Classification
ACT
NSW
Qld
SA/NT
Tas
Vic
WA
Total
Secretary
1
0
0
0
0
0
0
1
SES Band 3
3
0
0
0
0
0
0
3
SES Band 2
12
0
0
0
0
0
0
12
SES Band 1
27
1
2
3
0
2
1
36
EL 21
123
14
15
6
2
19
2
181
EL 1
215
60
64
22
13
50
15
439
APS 6
146
169
167
52
26
144
44
748
APS 5
84
152
106
46
23
118
36
565
APS 4
75
469
295
147
109
349
109
1553
APS 3
59
306
217
112
46
222
22
984
APS 2
1
14
20
6
1
11
4
57
APS 1
0
1
0
1
0
2
1
5
Total
746
1186
886
395
220
917
234
4584
2
1
Executive level 2.
2
Executive level 1.
Department of Human Services Annual Report //
207
Table 32—Department of Human Services—ongoing and non-ongoing staff by classification
Classification
O
N
Total
Secretary
1
0
1
SES Band 3
3
0
3
SES Band 2
12
0
12
SES Band 1
35
1
36
EL 2
176
5
181
EL 1
424
15
439
APS 6
734
14
748
APS 5
555
10
565
APS 4
1542
11
1553
APS 3
964
20
984
APS 2
56
1
57
APS 1
5
0
5
Total
4507
77
4584
O = Ongoing; N = Non-ongoing
208 // APPENDICES
Table 33—Department of Human Services—full-time and part-time staff by classification
Classification
FT
PT
Total
Secretary
1
0
1
SES Band 3
3
0
3
SES Band 2
11
1
12
SES Band 1
35
1
36
EL 2
176
5
181
EL 1
391
48
439
APS 6
663
85
748
APS 5
474
91
565
APS 4
1148
405
1553
APS 3
835
149
984
APS 2
43
14
57
APS 1
3
2
5
Total
3783
801
4584
FT = full-time; PT = part-time
Table 34—Department of Human Services—staff by gender and location
State/Territory
Female
Male
Total
Australian Capital Territory
454
292
746
New South Wales
944
242
1186
Queensland
635
251
886
South Australia/Northern Territory
291
104
395
Tasmania
141
79
220
Victoria
689
228
917
Western Australia
168
66
234
3322
1262
4584
Total
Department of Human Services Annual Report //
209
Table 35—Department of Human Services—equity and diversity groups
Indigenous
Disability
NESB
Location
O
N
O
N
O
N
Australian Capital Territory
6
0
14
1
56
3
New South Wales
29
0
12
0
62
1
Queensland
19
0
19
0
28
0
South Australia/Northern Territory
5
0
8
0
15
0
Tasmania
5
0
5
0
4
0
Victoria
9
0
15
0
59
0
Western Australia
2
0
2
0
10
0
75
0
75
1
234
4
Total
O = Ongoing; N = Non-ongoing
NESB = Non-English Speaking Background
210 // APPENDICES
CRS Australia
At 30 June 2010, 2053 staff (including staff on long-term leave) were employed by CRS Australia
under the Public Service Act 1999. This is a decrease of 79 staff since 30 June 2009.
The workforce consisted of 1682 (82 per cent) ongoing and 1209 (59 per cent) full-time. Women
comprised 83.58 per cent of all staff. The following tables contain summary information on the
staffing of CRS Australia, a division of the department.
Table 36—CRS Australia—ongoing staff employed, by gender and employment status,
at 30 June 2010
Female
Male
PT
FT
PT
FT
Total1
Senior Executive Service Band 2
0
1
0
0
1
Senior Executive Service Band 1
0
0
0
2
2
Executive Level 2A
0
0
0
1
1
Executive Level 2B
1
5
1
4
11
Executive Level 1
11
54
0
36
101
Senior Rehabilitation Consultant
46
79
0
16
141
Rehabilitation Consultant Level 2
399
285
19
81
784
Rehabilitation Consultant Level 1
13
38
3
11
65
Australian Public Service Level 6
11
26
2
18
57
Australian Public Service Level 5
24
48
8
26
106
Australian Public Service Level 4
21
76
3
27
127
Australian Public Service Level 3
37
74
0
5
116
Australian Public Service Level 2
84
76
1
5
166
Australian Public Service Level 1
2
0
1
1
4
649
762
38
233
1682
Total
FT = full-time; PT = part-time
1
Totals include 41 per cent part-time.
Department of Human Services Annual Report //
211
Table 37—CRS Australia—ongoing staff employed, by location and employment status,
at 30 June 2010
NSW
Vic
Qld
WA
SA
Tas
ACT
NT
PT
FT
PT
FT
PT
FT
PT
FT
PT
FT
PT
FT
PT
FT
PT
FT
SES 2
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
SES 1
0
0
0
0
0
0
0
0
0
0
0
0
0
2
0
0
EL 2A
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
EL 2B
1
2
1
2
0
3
0
1
0
1
0
0
0
0
0
0
EL 1
3
26
1
16
1
24
2
4
3
7
0
3
1
8
0
2
SRC
19
32
13
21
4
16
5
7
4
11
0
5
1
2
0
1
157 122
110
76
61
77
30
27
44
38
10
14
3
6
3
6
RC 2
RC 1
2
19
4
10
2
2
2
3
5
10
0
3
0
1
1
1
APS 6
0
5
2
6
3
21
1
3
2
2
0
0
5
7
0
0
APS 5
16
24
7
21
3
10
2
5
1
4
2
2
1
7
0
1
APS 4
7
27
3
20
6
28
1
7
3
9
1
4
3
7
0
1
APS 3
17
24
12
8
2
23
0
3
5
12
0
1
1
7
0
1
APS 2
39
32
18
18
9
15
8
10
7
3
4
3
0
0
0
0
APS 1
0
0
1
0
0
0
1
0
1
1
0
0
0
0
0
0
91 219
52
70
75
98
17
35
15
49
4
13
Total
261 313
172 198
APS = Australian Public Service; EL = Executive Level; FT = full-time; PT = part-time; RC = Rehabilitation Consultant;
SRC = Senior Rehabilitation Consultant; SES = Senior Executive Service
212 // APPENDICES
Table 38—CRS Australia—non-ongoing staff employed, by gender and employment status,
at 30 June 2010
Female
Male
PT
FT
PT
FT
Total1
Executive Level 2B
0
0
1
0
1
Executive Level 1
0
0
1
2
3
Senior Rehabilitation Consultant
1
0
0
0
1
Rehabilitation Consultant Level 2
37
28
4
12
81
Rehabilitation Consultant Level 1
18
38
4
9
69
Australian Public Service Level 6
2
0
1
2
5
Australian Public Service Level 5
7
8
1
7
23
Australian Public Service Level 4
18
29
2
7
56
Australian Public Service Level 3
6
20
3
5
34
Australian Public Service Level 2
34
40
2
1
77
Australian Public Service Level 1
14
5
1
1
21
137
168
20
46
371
Total
FT = full-time; PT = part-time
1
Totals include 42 per cent part-time and irregular/intermittent staff.
Department of Human Services Annual Report //
213
Table 39—CRS Australia—non-ongoing staff employed, by location and employment status,
at 30 June 2010
NSW
Vic
Qld
WA
SA
Tas
ACT
NT
PT
FT
PT
FT
PT
FT
PT
FT
PT
FT
PT
FT
PT
FT
PT
FT
EL 2B
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
EL 1
0
0
0
1
1
1
0
0
0
0
0
0
0
0
0
0
SRC
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
RC 2
16
14
9
7
7
13
8
2
1
0
0
1
0
0
0
3
RC 1
5
17
9
10
2
11
3
4
2
1
1
1
0
2
0
1
APS 6
1
0
1
1
1
1
0
0
0
0
0
0
0
0
0
0
APS 5
1
3
3
5
1
1
2
3
0
1
0
1
1
2
0
0
APS 4
8
7
3
4
5
17
2
3
2
0
0
2
0
3
0
0
APS 3
3
2
3
3
0
16
1
0
2
2
0
0
0
1
0
1
APS 2
15
13
8
11
4
7
2
5
4
4
1
1
2
0
0
0
APS 1
8
1
0
2
3
3
0
0
2
0
1
0
1
0
0
0
Total
57
57
37
44
24
70
18
17
13
8
3
6
5
7
0
5
APS = Australian Public Service; EL = Executive Level; FT = full-time; PT = part-time; RC = Rehabilitation Consultant;
SRC = Senior Rehabilitation Consultant
Table 40—CRS Australia—equity and diversity groups at 30 June 2010
Total
Female
Male
Indigenous
Disability
NESB
O
N
O
N
O
N
O
N
O
N
O
N
NSW
573
114
499
95
75
19
4
1
19
2
101
25
Vic.
371
81
309
65
61
16
0
0
11
5
63
14
Qld
311
94
254
76
56
18
6
3
7
6
23
7
WA
122
35
99
33
23
2
1
0
9
0
22
4
SA
173
21
140
17
33
4
2
0
10
2
31
4
Tas.
52
9
43
5
9
4
0
0
3
2
3
0
ACT
63
12
51
10
13
2
0
0
2
1
10
1
NT
17
5
16
4
1
1
0
1
1
0
2
0
1682
371
1411
305
271
66
13
5
62
18
255
55
Total
O = Ongoing; N = Non-ongoing;
NESB = Non-English Speaking Background
214 // APPENDICES
Appendix I—Employee remuneration overview
Non-Senior Executive Service remuneration
arrangements
As at 30 June 2010, 4500 non-Senior Executive Service employees were covered by the Department of
Human Services–Child Support Agency Collective Agreement 2008–11 and 40 were on Australian
Workplace Agreements.
Department of Human Services
Staff pay ranges
Table 41 shows the range of job classifications and salary pay range for staff covered by the
collective agreement and Australian workplace agreements.
Table 41—Department of Human Services salary ranges for staff covered by the Certified Agreement
and Australian Workplace Agreements
Classification
Salary range ($)
EL 2
96 802–125 654
EL 1
85 742–105 254
1
1
APS Level 6
68 549–76 831
APS Level 5
61 925–67 209
APS Level 4
55 522–60 954
APS Level 3
49 815–55 521
APS Level 2
44 938–48 500
APS Level 1
39 944–42 893
Salary ranges include professional officers in equivalent groups.
1
Table is based on annualised full-time pay rates.
Table 42—Department of Human Services common law contract salary ranges at 30 June 2010
Classification
Salary range ($)
–
SES Band 31
SES Band 2
160 000–180 000
SES Band 12
129 480–160 000
1
SES Band 3 salaries have not been included, as this would enable identification of individual packages because of the small number
of staff at that level.
2
Salary ranges include professional officers in equivalent groups.
Notes: A
ll SES employees are entitled to the use of private-plated vehicles or cash-out arrangements.
Table is based on annualised full-time pay rates.
Department of Human Services Annual Report //
215
Table 43— Department of Human Services—performance pay
Employee groups
Employees
paid
Amount
paid ($)
Average
($)
Range
($)
Senior Executives (incl. CEO)
41
497 989
11 857
2746–34 070
Executive Level 2
53
217 048
4095
795–13 273
Executive Level 1
76
243 364
3202
174–9561
APS 6 and below
16
33 261
2079
560–4462
187
991 662
5303
174–34 070
Total
CRS Australia
Non-Senior Executive Service remuneration arrangements
Table 44 shows the number of staff covered by the CRS Australia Collective Agreement 2008–11,
Australian Workplace Agreements, and other arrangements.
Table 44—CRS Australia—employment arrangements at 30 June 2010
Senior executive service
Non–senior executive service
Australian workplace agreement
0
4
Collective agreement
0
2002
Common law contract
3
22
Section 24(1)1
0
422
1
Determination under section 24(1) of the Public Service Act 1999.
2
Employees contained within these numbers have employment conditions underpinned by the Collective Agreement.
Collective agreement 2008–2011—staff pay ranges
Tables 45 to 48 show the range of job classifications and salary pay range for staff
covered by the various agreements.
Table 45—CRS Australia—Collective Agreement salary ranges at 30 June 2010
Minimum ($)
Maximum ($)
Executive Level 2A
113 796
113 796
Executive Level 2B
95 320
110 048
Executive Level 1
82 474
91 035
Senior Rehabilitation Consultant
82 450
82 450
216 // APPENDICES
Minimum ($)
Maximum ($)
Rehabilitation Consultant Level 2
65 106
78 499
Rehabilitation Consultant Level 1
48 158
64 531
Australian Public Service 6
65 106
75 480
Australian Public Service 5
59 736
64 531
Australian Public Service 4
53 665
59 346
Australian Public Service 3
48 158
52 865
Australian Public Service 2
42 ,227
47 680
Australian Public Service 1
37 425
41 918
Table 46—CRS Australia—Australian Workplace Agreement salary ranges at 30 June 2010
Minimum ($)
Maximum ($)
Executive Level 1
82 474
87 322
Rehabilitation Consultant Level 2
65 106
77 532
Australian Public Service Level 6
65 106
81 651
Table 47—CRS Australia—section 24(1) determination salary ranges at 30 June 2010
Minimum ($)
Maximum ($)
Executive Level 2A
113 796
113 796
Executive Level 2B
95 320
110 048
Executive Level 1
82 474
98 500
Australian Public Service 6
65 106
75 480
Australian Public Service 5
59 736
64 531
Australian Public Service 4
53 665
59 346
Table 48—CRS Australia—common law contract salary ranges at 30 June 2010
Minimum ($)
Maximum ($)
–
–
Executive Level 2B
95 320
110 048
Executive Level 1
82 474
91 035
SES Band 1 and Band 2
1
1
S ES Band 1 and 2 salaries have not been included, as this would enable identification of individual packages because of the small number
of staff at that level (three SES staff).
Department of Human Services Annual Report //
217
Appendix J—Consultancy contracts
Under the Financial Management and
Accountability Act 1997 Australian
Government departments and agencies must
describe their policies for the selection and
engagement of consultants and must publish
details of all contracts let during the reporting
year to the value of $10 000 or more in their
annual reports.
Annual reports contain information
about actual expenditure on contracts for
consultancies. Information on the value of
contracts and consultancies is available on the
AusTender website at www.tenders.gov.au.
Principles
The Department of Human Services, including
the Child Support Program and CRS Australia,
follow the Commonwealth Procurement
Guidelines and adhere to the principle of
achieving value for money by:
• encouraging competition by ensuring nondiscrimination in procurement and pursuing
competitive procurement processes
• promoting the efficient, effective and ethical
use of resources
• making decisions in an accountable and
transparent manner.
The use of consultants also reflects the
department-wide principles of:
• alignment with government strategic
direction
• innovation
• consultation with Human Services agencies to
capitalise on purchasing
• access by the department and the Human
Services agencies to each other’s contracts,
where appropriate.
Selection process
The Commonwealth Procurement Guidelines
(December 2008) allow consultancies to be
procured through four types of selection process:
• Open tender—a procurement procedure
in which a request for tender is published
inviting all businesses that satisfy the
conditions for participation to submit
tenders. Public tenders are generally sought
from the Australian Government AusTender
internet site.
• Select tender—a procurement procedure
in which the procuring agency selects which
potential suppliers are invited to submit
tenders. This procurement process may only
be used under certain defined circumstances.
• Direct sourcing—a form of restricted
tendering, available only under certain
defined circumstances, with a single potential
supplier or suppliers being invited to bid
because of their unique expertise and/or their
special ability to supply the goods and/or
services sought.
• Panel—an arrangement under which a
number of suppliers, usually selected through
an open tender process, may each supply
property or services to an agency as specified
in the panel arrangements. Quotes are sought
from suppliers that have pre-qualified on the
agency panels to supply to the government.
This category includes standing offers and
supplier panels where the supply of goods
and services may be provided for a predetermined length of time, usually at a prearranged price.
Table 49 on page 219 notes the selection
process the department (excluding
CRS Australia) used for each contract in
2009–10. Table 50 notes the selection process
that CRS Australia used for each contract.
Justification for decisions to use consultancy:
• A—skills currently unavailable within agency
• B—need for specialised or professional skills
• C—need for independent research or
assessment.
218 // APPENDICES
Table 49—Department of Human Services (excluding CRS Australia)—consultancy services to the value
of $10 000 or more let during 2009–10
Reference
number
Consultant Name
Description
Contract Price
($) (incl GST)
Selection
Process
Justification
06DHS195/A-03
Accenture Australia
Organisational integration
and workforce Planning
and Change Management
170 780
Panel
B
10DHS015
David Richmond
Consulting Pty Ltd
Review of the Decision
Making and Quality
Assurance
160 000
Direct
Sourcing
C
06DHS234/A-05
Ernst & Young
Development of the Debt
Improvement Strategy for
the Child Support Program
437 000
Panel
B
06DHS234/A-04
Ernst & Young
Develop Quality Assurance
Framework
132 000
Panel
B
08CSA151-01
Greythorn Pty Ltd
Review of the existing Child
Support Agency Project
Management Framework
24 000
Panel
B
10DHS347-17
KPMG
Provide high level project
assurance for the Service
Delivery Reform Program
299 200
Panel
B
10DHS183
MyriaD Consultants
Pty Ltd
Family Violence Project
Evaluation and Research
79 130
Direct
Sourcing
B
06DHS214-13
Price Waterhouse
Coopers
Development of a financial
management and resource
allocation framework for
the Child Support Program
46 200
Panel
B
06DHS214-12
Price Waterhouse
Coopers
Benefits framework for
Reducing Paper Initiative
and Outcome and
Performance measures
framework
270 000
Panel
B
07CSA296-04
SMS Consulting
Group Ltd
Establishment of program
management function
$36 300
Panel
B
06DHS244/A-01
The Boston
Consulting Group
Pty Ltd
Business plan for Service
Delivery Reform
1 093 400
Panel
C
06DHS244/A-02
The Boston
Consulting Group
Pty Ltd
Strategic advice on Service
Delivery Reform
366 350
Panel
C
06DHS244/A-03/B
The Boston
Consulting Group
Pty Ltd
Business Framework for
Service Delivery Reform
Program
3 804 618
Panel
B
Department of Human Services Annual Report //
219
Reference
number
Contract Price
($) (incl GST)
Selection
Process
Justification
Services to Assist with
Organisational Cultural
Change
107 290
Panel
B
Thinkplace
Development of a Portfolio
Strategy for Co-design
307 814
Panel
B
08DHS182/A-08
Yellow Edge Pty Ltd
Develop staff engagement
philosophy and structured
change management
approach
71 300
Panel
B
08DHS182-07
Yellow Edge Pty Ltd
Change management
advice on technical
communications functions
44 000
Panel
B
Consultant Name
Description
06DHS217/A-08
The Nous Group
Pty Ltd
10DHS162-01/A
Total
7 449 382
Table 50—CRS Australia—consultancy services to the value of $10 000 or more let during 2009–10
Reference
Number
Consultant name
Description
CN1721
WO/2010/03
LKA Group P/L
Provision of staff grievance and code
of conduct investigative services for
CRS Australia
30 000
Panel
B
CN1721
WO/2010/02
LKA Group P/L
Provision of staff grievance and code
of conduct investigative services for
CRS Australia
20 000
Panel
B
CN1677
NCS International
Certification services to assess
CRS Australia against the Disability
Services Standards
333 600
Select
tender
C
CN1315
WO2366901
Quality Management
Solutions P/L
Provision of staff grievance and code
of conduct investigative services for
CRS Australia
44 103
Panel
B
CN1315
WO2358822
Quality Management
Solutions P/L
Provision of staff grievance and code
of conduct investigative services for
CRS Australia
34 340
Panel
B
CN1303
WO2443025
IFocus P/L
Provision of advice for search engine
optimisation and web improvements
for CRS Australia
27 720
Select
tender
C
Total
220 // APPENDICES
Contract Selection
Price ($)
Process
(incl GST)
489 763
Justification
Appendix K—Resource statements
Table 51—Agency resource statements 2009–10
Actual available
appropriation for
2009–10
$'000
Payments made
2009–10
Balance remaining
$'000
$'000
(a)
(b)
(a) – (b)
Prior year
appropriation
209 393
38 753
170 640
Departmental
appropriation
557 508
496 051
61 457
s31 relevant agency
receipts
246 782
233 104
13 678
1 013 683
767 908
245 775
Outcome 1
8193
2499
Total
8193
2499
1 021 876
770 407
Ordinary annual services1
Total
Administered expenses
Total ordinary annual
services
1
A
Other services
2
Departmental nonoperating
Prior year
appropriations
6340
Previous years'
outputs
7779
7779
0
14 119
7779
6340
14 119
7779
1 035 995
778 186
Total
Total other services
B
Total available annual
appropriations and
payments
6340
Special appropriations
Special appropriations
limited by criteria/
entitlement
Child Support
(Registration and
Collection) Act 1988
Section 77 unremitted deductions
66 669
Section 78 unexplained
remittances
Total special
appropriations
0
C
66 669
Department of Human Services Annual Report //
221
Actual available
appropriation for
2009–10
$'000
Payments made
2009–10
Balance remaining
$'000
$'000
Special Accounts
Opening balance
55 789
Appropriation
receipts3
68 297
on-appropriation
N
receipts to Special
Accounts
1 031 473
Payments made
Total Special Account
1 101 987
D
1 155 559
1 101 987
2 191 554
1 946 842
1628
66 669
2 189 926
1 880 173
Total resourcing and
payments
A+B+C+D
Less appropriations
drawn from annual or
special appropriations
above and credited to
special account
Total net resourcing
and payments for
Department of Human
Services
1 A
ppropriation Bill (No.1) 2009–10 and Appropriation Bill (No.3) 2009–10
2 A
ppropriation Bill (No.2) 2009–10
3 A
ppropriation receipts from Department of Human Services annual and special appropriations for 2009–10 included above
222 // APPENDICES
Table 52—Expenses and resources for Outcome 1
Outcome 1: Informed government decisions
on, and access to, social, health and child
support services for Australians through policy
development and advice, and the coordination
and delivery of services.
Actual
available
appropriation
for 2009–10 *
$'000
Payments
made
2009–10
$'000
$'000
(a)
(b)
(a) – (b)
3966
3207
759
Ordinary annual services (Appropriation Bill No. 1)
557 508
508 081
49 427
Revenues from independent sources (Section 31)
202 811
233 104
-30 293
-4328
0
-4328
759 957
744 392
15 565
Balance
remaining
Program 1.1: Human Services
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1)
Departmental expenses
Expenses not requiring appropriation in the Budget
year
Total for Program 1.1
Program 1.2: Child Support
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Special Accounts
Expenses not requiring appropriation in the budget
year
Total for Program 1.2
1438
1619
-181
71 933
66 669
5264
1 055 260
1 089 220
-33 960
96 506
69 191
27 315
1 225 137
1 226 699
-1562
5404
4826
578
Outcome 1 Totals by appropriation type
Administered Expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
71 933
66 669
5264
1 055 260
1 089 220
-33 960
96 506
69 191
27 315
Ordinary annual services (Appropriation Bill No. 1)
557 508
508 081
49 427
Revenues from independent sources (Section 31)
202 811
233 104
-30 293
Expenses not requiring appropriation in the Budget
year
-4328
0
-4328
1 985 094
1 971 091
14 003
2008–09
2009–10
5332
5724
Special Accounts
Expenses not requiring appropriation in the budget
year
Departmental expenses
Total expenses for Outcome 1
Average Staffing Level (number)
* As published in the Portfolio Budget Statements 2010-11 page19.
Department of Human Services Annual Report //
223
Appendix L—Corrections to errors in the
2008–09 annual report
No errors were reported for the Department of Human Services and CRS Australia 2009–10 annual
report.
224 // APPENDICES
Appendix M—Compliance index
Reference
in Annual
Report
Guidelines
Description
Requirement
A.4
Letter of transmittal
Mandatory
iii
A.5
Table of contents
Mandatory
vii
A.5
Index
Mandatory
A.5
Glossary
Mandatory
232
A.5
Contact officer(s)
Mandatory
ii
A.5
Internet home page address and
Internet address for report
Mandatory
ii
Review by departmental secretary
Mandatory
2–4
9.2
Summary of significant issues and
developments
Suggested
2–4
9.2
Overview of department’s
performance and financial results
Suggested
4, 100–102
9.2
Outlook for following year
Suggested
4
9.3
Significant issues and developments
– portfolio
Portfolio
departments—
suggested
Overview description of department
Mandatory
10.1
Role and functions
Mandatory
8–10
10.1
Organisational structure
Mandatory
12–13
10.1
Outcome and program structure
Mandatory
11
10.2
Where outcome and program
structures differ from PB Statements/
PAES or other portfolio statements
accompanying any other additional
appropriation bills (other portfolio
statements), details of variation and
reasons for change
Mandatory
No change
10.3
Portfolio structure
Portfolio
departments—
mandatory
Review of performance during the
year in relation to programs and
contribution to outcomes
Mandatory
16–63
Actual performance in relation to
deliverables and KPIs set out in PB
Statements/PAES or other portfolio
statements
Mandatory
16–63
9.1
10
11.1
11.1
Part of report
Review by
Secretary
Departmental
Overview
Report on
Performance
Page
number(s)
in report
2–4, 6–7,
24–27
8–13
Department of Human Services Annual Report //
5–6
225
Reference
in Annual
Report
Guidelines
Description
Requirement
Performance of purchaser–provider
arrangements
If applicable—
suggested
11.1
Where performance targets differ
from the PBS/PAES, details of
both former and new targets, and
reasons for the change
Mandatory
22–23
11.1
Narrative discussion and analysis of
performance
Mandatory
16–63
11.1
Trend information
Mandatory
16–63
11.1
Significant changes in nature of
principal functions/services
Suggested
6–7, 24–27
11.1
Factors, events or trends influencing
departmental performance
Suggested
16–63
11.1
Contribution of risk management in
achieving objectives
Suggested
74–75, 80
11.1
Social justice and equity impacts
Suggested
86, 93
11.2
Performance against service
charter customer service
standards, complaints data, and
the department’s response to
complaints
If applicable—
mandatory
11.3
Discussion and analysis of the
department’s financial performance
Mandatory
100–102
11.3
Discussion of any significant
changes from the prior year or from
budget.
Suggested
2–4, 6–7,
24–27, 100
11.4
Agency resource statement and
summary resource tables by
outcomes
Mandatory
221–223
11.5
Developments since the end of the
financial year that have affected
or may significantly affect the
department’s operations or financial
results in future
If applicable—
mandatory
100–102
12.1
Part of report
Page
number(s)
in report
63
16–17, 24–
33, 41–53,
60–63
Management
Accountability
66–97
Corporate
Governance
66–71
12.1
226 // APPENDICES
Statement of the main corporate
governance practices in place
Mandatory
66, 69
Reference
in Annual
Report
Guidelines
Description
Requirement
12.1
Names of the senior executive
and their responsibilities
Suggested
6, 12–13
12.1
Senior management committees
and their roles
Suggested
66–70
12.1
Corporate and operational planning
and associated performance
reporting and review
Suggested
8–9
12.1
Approach adopted to identifying
areas of significant financial or
operational risk
Suggested
30, 41, 60,
69, 70,
74–75, 80,
88
12.1
Agency heads are required to certify
that their agency comply with the
Commonwealth Fraud Control
Guidelines.
Mandatory
206
12.1
Policy and practices on the
establishment and maintenance of
appropriate ethical standards
Suggested
77, 81
12.1
How nature and amount of
remuneration for SES officers is
determined
Suggested
85, 90–91,
215
Significant developments in external
scrutiny
Mandatory
71–74, 78–79
12.2
Judicial decisions and decisions of
administrative tribunals
Mandatory
71–73, 78–79
12.2
Reports by the Auditor-General, a
Parliamentary Committee or the
Commonwealth Ombudsman
Mandatory
71–72,
78–79, 215
Assessment of effectiveness in
managing and developing human
resources to achieve departmental
objectives
Mandatory
84–93
12.3
Workforce planning, staff turnover
and retention
Suggested
86–87, 91–92
12.3
Impact and features of enterprise
or collective agreements,
determinations, common law
contracts and AWAs
Suggested
84–85, 90–91
12.3
Training and development
undertaken and its impact
Suggested
87, 92–93
12.3
Occupational health and safety
performance
Suggested
87–88, 92,
178–180
12.2
12.3
Part of report
External Scrutiny
Management
of Human
Resources
Page
number(s)
in report
Department of Human Services Annual Report //
227
Reference
in Annual
Report
Guidelines
Part of report
Description
Requirement
Page
number(s)
in report
12.3
Productivity gains
Suggested
85, 90–91
12.3
Statistics on staffing
Mandatory
84, 90,
207–214
12.3
Enterprise or collective agreements,
determinations, common law
contracts and AWAs
Mandatory
84–85,
90–91,
215–217
12.3
Performance pay
Mandatory
85, 91
12.4
Assets
management
Assessment of effectiveness of
assets management
If applicable—
mandatory
93–95,
96–97, 102
12.5
Purchasing
Assessment of purchasing against
core policies and principles
Mandatory
93–94, 96
12.6
Consultants
A summary statement of new
consultancy services contracts let
during the year and their total
actual expenditure; ongoing
consultancy contracts and their
total actual expenditure
Mandatory
94, 96,
218–220
12.7
Australian
National Audit
Office Access
Clauses
Absence of provisions in contracts
allowing access by the AuditorGeneral
Mandatory
95
12.8
Exempt contracts
Contracts exempt from the
AusTender
Mandatory
Nil
12.9
Commonwealth
Disability
Strategy
Report on performance in
implementing the Commonwealth
Disability Strategy
Mandatory
194–205
13
Financial
statements
Financial statements
Mandatory
103–174
14.1
Occupational health and safety
(section 74 of the Occupational
Health and Safety Act 1991)
Mandatory
87–88,
92–93,
178–180
14.1
Freedom of Information (subsection
8(1) of the Freedom of Information
Act 1982)
Mandatory
72–72, 79,
181–183
14.1
Advertising and Market Research
(Section 311A of the Commonwealth
Electoral Act 1918) and statement on
advertising campaigns
Mandatory
184–186
Other
Information
228 // APPENDICES
Reference
in Annual
Report
Guidelines
Part of report
14.1
14.2
Other
Description
Requirement
Ecologically sustainable development
and environmental performance
(Section 516A of the Environment
Protection and Biodiversity
Conservation Act 1999)
Mandatory
74, 79,
186–193
78, 82
Grant programs
Mandatory
14.3
Correction of material errors in
previous annual report
If applicable—
mandatory
F
List of requirements
Mandatory
Page
number(s)
in report
224
225–228
Department of Human Services Annual Report //
229
References
Glossary
Administered items
Revenues, expenses, assets and liabilities that the government controls, but which
an agency or authority manages on the Commonwealth’s behalf.
Appropriation
An amount of public moneys parliament authorises for spending for a particular
purpose.
AusTender
The Australian Government’s web-based procurement system, which provides
centralised access to all publicly available approaches to market, multi-use lists,
annual procurement plans and reported contracts.
Australian
workplace
agreement
An individual written agreement between an employer and an employee about the
terms and conditions of employment, made under the Workplace Relations Act 1996.
Average staffing
level (ASL)
The average number of employees receiving salary or wages (or compensation in
lieu of salary or wages) over a financial year, with adjustments for casual and parttime employees to show the full-time equivalent.
Collective
agreement
A collective agreement relating to employment conditions made directly between
an employer and a group of employees.
Commonwealth
Procurement
Guidelines
The Commonwealth Procurement Guidelines establish the core procurement policy
framework and articulate the government’s expectations for all FMA Act agencies
and their officials when performing duties related to procurement.
NABERS
NABERS is a voluntary environmental rating system for office premises. NABERS
ratings for offices include NABERS Energy (previously Australian Building Greenhouse
Rating), NABERS Water, NABERS Waste and NABERS Indoor Environment.
Non-ongoing staff
member
A person engaged as an Australian Public Service (APS) employee under
subsection 22(2)(b) or 22(2)(c) of the Public Service Act 1999.
Ongoing staff
member
A person engaged as an ongoing APS employee under subsection 22(2)(a) of the
Public Service Act 1999.
Key performance
indicators
These are financial and non-financial measures used to help define and evaluate an
organisation’s success. An indicator is usually selected on the basis of relevance as a
measure of some aspect of a specific project or operation.
Outcome
An outcome is the intended result, consequence or impact of government actions
on the Australian community.
Policy departments
Australian Government policy departments are responsible for developing and
implementing policies and programs for the Australian community. Centrelink
and Medicare Australia deliver payments and services on behalf of a number
of Australian Government policy departments and agencies.
Portfolio agencies
Different government agencies which are accountable to the same minister.
Portfolio Budget
Statements
Budget-related paper detailing Budget initiatives and explanations of appropriations
specified by outcome and program by each agency within a portfolio.
Programs
Australian Government programs deliver benefits, services or transfer payments
to individuals, industry/business or the community as a whole and are the primary
vehicles for government agencies to achieve the intended results of their outcome
statements.
232 // REFERENCES
Shortened forms
AAOs
Administrative Arrangements Orders
ABS
Australian Bureau of Statistics
AFCCRA
Australian Financial Counselling and Credit Reform Association
AGIMO
Australian Government Information Management Office
ANAO
Australian National Audit Office
APS
Australian Public Service
APSC
Australian Public Service Commission
ASIC
Australian Securities Investment Commission
ATO
Australian Taxation Office
AWA
Australian Workplace Agreement
CEO
Chief Executive Officer
CHAS
Customers Having a Say
COAG
Council of Australian Governments
CSA
Child Support Agency
CSDI
Commonwealth Spatial Data Integration
CSP
Child Support Program
DEEWR
Department of Education, Employment and Workplace Relations
DES
Disability Employment Services
DEWHA
Department of Environment, Water, Heritage and the Arts
DHS
Department of Human Services
EMS
Environmental Management System
EPBC Act
Environment Protection and Biodiversity Conservation Act 1999
ESD
ecologically sustainable development
FaHCSIA
Department of Families, Housing, Community Services and Indigenous Affairs
FAO
Family Assistance Office
FAS
First Assistant Secretary
FMA Act
Financial Management and Accountability Act 1997
FOI Act
Freedom of Information Act 1982
FRAL
Family relationship advice line
FRCs
Family Relationship Centres
GA
Geosciences Australia
GIST
geo-demographic interactive simulation tool
GVG
Government Green Vehicle Guide
HSMA
Health and Safety Management Arrangements
233 // SHORT FORMS
Department of Human Services Annual Report //
233
ICT
Information and Communication Technology
IDC
Interdepartmental Committee
IPS
Information Publication Scheme
JCAc
Job Capacity Assessments and Job Capacity Account services
MFDs
multifunction devices
MoU
Memorandum of Understanding
NGO
non-government organisation
NoE
Networks of Excellence
NPC
National Packaging Covenant
NRMT
National Referral Management Team
OH&S Act
Occupational Health and Safety Act 1991
PAES
Portfolio Additional Estimates Statements
PBS
Portfolio Budget Statements
PMF
Program Management Framework
PPL
paid parental leave
RAP
Reconciliation Action Plan
SDR
service delivery reform
SEIFA
s ocio-economic indexes for areas. An ABS rating for locations based on
a variety of socio-economic factors
SES
Senior Executive Service
SRC Act
Safety, Rehabilitation and Compensation Act 1988
SSAT
Social Security Appeals Tribunal
TRIP
tax refund intercept payment
VRS
vocational rehabilitation services
234 // REFERENCES
Index
A
abbreviations, 233–234
access to contractors’ premises, 94, 95, 96
access to documents, 182
access to personal information, 73
accountability see management and
accountability
address and contact information
annual report, ii
Department of Human Services, 235
freedom of information, 182–183
Human Services Agencies, 235
single portfolio telephone number and
website, 24
administered items, 102
Administrative Appeals Tribunal, 73
Administrative Arrangements Orders, 8
administrative tribunal decisions, 79
advertising and market research
communication campaign, 32
CRS Australia, 185
Department of Human Services, 184
Agency Heads Meeting see Secretary and Chief
Executive Officers’ Committee
aggression of customers, 60, 92
Ahead of the Game: Blueprint for Reform of
Australian Government Administration, 27
All Senior Executive Service Forum (All SES
Forum), 69
Along the Road Home, 29
Annual Report 2008-09 corrections, 224
ANZ Bank, Saver Plus program, 38
appeals
child support assessments, 71
disability services matters, 78
appropriations see financial statements
assessments (CSP), 37
asset management, 97
assets, Departmental, 101
Audit Committee (DHS Committee), 68
Auditor-General see Australian National Audit
Office
audits
ANAO, 78, 204–205
CRS Australia, 57, 78, 81, 205
Department of Human Services, 71, 76–77
see also external scrutiny
Australia Day Medallion for Achievement, 60
Australian Bureau of Statistics, 30, 31
Australian Defence Force, 58, 63
Australian Financial Counselling and Credit
Reform Association, 38
Australian Government Disaster and Recovery
Program, 31
Australian Government Information
Management Office, 31
Australian Government Online Service Point, 24
Australian Hearing, 5, 25, 30
Australian Hearing Services Act 1991, 5
Australian Human Rights Commission, 71
The Australian Information Commissioner Act
2010, 72
Australian Institute of Criminology, 80
Australian National Audit Office, 71, 76, 77, 94,
96, 204–205
Australian Public Service Commission, 86, 87
Australian Public Service Values and Code of
Conduct, 77, 81
breaches of, 81–82
see also ethical standards
Australian Retailers Association, 59
Australian Securities Investment Commission, 41
Australian Social Inclusion Board, 28
Australian Taxation Office, 41
Australian Workplace Agreements
CRS Australia, 216, 217
Department of Human Services, 215
Australia’s Future Taxation System (Henry
Review), 27, 31
awards
Australia Day Medallion for Achievement, 60
Department of Human Services Annual Report //
235
B
Centrelink, 5
access to all staff phone directory, 26
co-located facilities, 24, 25
CRS Australia services to, 61, 63
governance of service delivery, 67
integration of enabling services, 24
interdepartmental committees, 70
ministerial and parliamentary functions, 31
natural disaster response, 31
risk and business continuity functions, 75
role in reducing homelessness, 29
BasicsCard project, 17
certified agreements (DHS), 215
Better Dealings with Government: Innovation in
Payments and Information Services, 31
change management
Child Support Program, 48
workplace, 87
BasicsCard project, 17
CRS Australia General Manager Awards, 60
Diversity@Work Awards, 63
eGovernment, 31
for exemplary service to customers and
stakeholders, 60
Intranet Innovation Award, 62
Weary Dunlop Award, 63
beyondblue: the national depression initiative, 51
bonuses see performance pay
BoysTown (Kids Helpline), 51
breaches
code of conduct, 81–82
fraud control guidelines, 75
charitable donations, 92
Chief Executive Officers’ Forum, 27
child protection, 28, 38, 49
Child Support (Registration and Collection) Act
1988, 5, 73, 181
Brotherhood of St Laurence, 38, 51, 63
Child Support (Assessment) Act 1989, 5, 73, 181
business continuity plans
CRS Australia, 80
Department of Human Services, 74–75
Child Support Agency, 32, 49
see also Child Support Program
business planning for service delivery reform, 27
child support debts, 40–41
C
case studies
financial literacy for parents, 36
Geo-demographic Interactive Simulation Tool
(GIST), 16
job seekers, people with disabilities, 56
service delivery reform, 83
working with CRS Australia, 89
Central Department, 11, 15–33
case study, Geo-demographic Interactive
Simulation Tool, 16
natural disaster response, 31
performance report, 18–23
service delivery policy and programs, 27–29
service delivery reform, 24–27
strategic support, 29–33
see also Department of Human Services
236 // REFERENCES
child support collection arrangements, 39–44
Child Support Legislation Amendment (Reform
of the Child Support Scheme—Initial
Measures) Act 2006, 5, 181
Child Support Legislation Amendment (Reform
of the Child Support Scheme—New Formula
and Other Measures) Act 2006, 5, 181
Child Support Matters, 33
Child Support Program, 35–53
case study, financial literacy for parents, 36
change management, 48
child support transfers, 39
collection arrangements, 39–44
complaints, 37, 47
compliance and enforcement, 41–44
customer service and communication, 45–53
debt and debt collection, 40–41
income reconciliation, 44
information and publications, 32–33, 51
integration of enabling services, 24
objections to decisions, 47, 71
occupational health and safety see
occupational health and safety
online services, 45
performance, 39
plans for, 9
quality assurance, 49
requests for access to documents, 72
service charter, 77
service delivery, 45–50, 52–53
stakeholder engagement, 50–53
strategic plan, 9
Child Support Program Business Operations
Committee (DHS Committee), 69
Commonwealth Disability Strategy
CRS Australia, 198–203
Department of Human Services, 194–197
Commonwealth Fraud and Control Guidelines
2002, 75
Commonwealth Ombudsman, 71, 76
Commonwealth Services Delivery Agency Act
1997, 5
Commonwealth Spatial Data Integration pilot
program, 17, 30–31
communicating with customers and community,
32–33, 52
communicating with staff, 88, 91
Child Support Registrar
decision-making powers, 181
communication channels, 45
see also publications; websites
Child Support Scheme, 32, 33, 36, 37, 39, 45, 85
see also Child Support Program
communications technology see information
and communications technology
Childs, James, 56
Community and Public Sector Union, 26
classification levels of staff
CRS Australia, 211
Department of Human Services, 207
performance pay, 85, 91
workplace agreements, 26, 84, 85, 90
see also Senior Executive Service (SES)
Community Service Obligations, 30
client service charters see service charters
compliance activities, 30, 41–44, 77
Closing the Gap, 28
compliance audits, CRS Australia, 78
co-design approach to service delivery reform,
25–26
Compliance Plan 2009–10, 30
co-located offices, 24, 25
COAG See Council of Australian Governments
Code of Conduct, 77
breaches of, 81–82
collective agreements
CRS Australia, 90, 216–217
DHS/CSA, 84, 215
Comcare, 60, 62, 92, 179, 180
Comcover, 74, 80
committees see senior management committees
common law contracts (employment)
CRS Australia, 217
Department of Human Services, 215
Commonwealth Disability Services Standards, 57
Compact Champion, 29
complaints
Child Support Program, 37, 47
CRS Australia, 82
conduct, code of, 77
breaches of, 81–82
conference participation
CRS Australia, 63
Department of Human Services, 28
consultancy services, 218–220
CRS Australia, 96, 220
Department of Human Services, 94, 219–220
consultative arrangements, 181–182
see also customer satisfaction; stakeholder
engagement
contact information see address and contact
information
contracting see procurement
Copyright Agency Limited, 33
corporate governance see governance
Department of Human Services Annual Report //
237
strategic plan, 58
transitioned to new DEEWR DES program, 58
website, 58
workforce participation outcomes, 59
see also job seekers; vocational rehabilitation
services
correspondence, 38
Council of Australian Governments
joint service delivery following disasters or
emergencies, 76
National Framework for Protecting Australia’s
Children 2009–2020, 38, 49
National Partnership Agreements, 28
natural disaster reform agenda, 76
Remote Service Delivery National Partnership, 28
court proceedings, 78
crisis management see emergency management
CRS Australia, 55–63
access to services, 26, 32, 60
advertising and market research, 185
awards for team and individual excellence, 60
capability development, 59–62
case studies, 56, 89
consultancy services, 96, 220
disability strategy, 198–203
ecologically sustainable development, 79
freedom of information, 79, 182–183
governance, 69–70
information and communications
technology, 62
innovation, 62
integration of services, 24–25
key result areas, 58–63
knowledge management, 97
management and accountability, 78–82
MoU with DEEWR, 58
occupational health and safety see
occupational health and safety
people management, 90–93 see also staff
performance, 55–63
performance audit, 205
plans for, 9
purchaser-provider arrangements, 63
quality assurance, 61
requests for access to documents, 72
resources, 95–97
revenue, 61
safe workplaces, 60
service charter, 82
service delivery, 60–61, 61–62
services to other agencies, 58, 61
staff see staff
stakeholder engagement, 61–62
238 // REFERENCES
CRS Australia Executive Committee (DHS
Committee), 69
CRS Australia General Manager Awards, 60
CSAonline website, 45
customer aggression, 60, 92
customer complaints see complaints
Customer Privacy Framework, 25
customer satisfaction
Child Support Program, 37, 45–46
CRS Australia, 61
see also complaints; stakeholder
engagement
customer service see service delivery
customer service charters see service charters
Cyclone Ului, 31
D
data-matching, 41
data-sharing arrangements, 28, 31
debt and debt collection, 40–41
decision-making powers, 181
definitions of terminology, 232
Delivering Quality Outcomes Review, 49, 51,
52–53
Department of Defence, 61, 63
Department of Education, Employment and
Workplace Relations, 58, 61, 63, 70
Department of Families, Housing, Community
Services and Indigenous Affairs, 28, 29, 58,
61, 63, 70, 78
Department of Finance and Deregulation, 24, 26
Department of Health and Ageing, 30, 70
Department of Human Services
access to all staff phone directory, 26
Annual Report 2008-09 corrections, 224
case study, service delivery reform, 83
disability strategy, 194–197
ecologically sustainable development, 74
Family Assistance Office governance
arrangements, 29
financial overview, 100–102
financial statements, 103–174
freedom of information, 72–73, 181–182
functions, 10
goals, roles, objectives, strategies, 9
governance, 68–69
integration of enabling services, 24
interdepartmental committees, 70
legislation, 10
management and accountability, 71–78
occupational health and safety see
occupational health and safety
organisation and structure, 10, 12–13
people management, 84–88 see also staff
planning and reporting, 11
resources, 93–95
risk and business continuity functions, 75
see also Portfolio
Standards), 79, 181
decision appeal process, 78
disability strategy see Commonwealth Disability
Strategy
disasters see natural disasters
diversity in the workplace see workplace
diversity
Diversity@Work Awards, 63
documents held, 182
DSS surveillance audit, 57
E
early intervention (CSP), 37
ecologically sustainable development
CRS Australia, 79, 190–193
Department of Human Services, 74, 186–189
eGovernment Awards, 31
eHealth, 29
emergency call centre surge capability, 76
Department of Human Services National
Consultative Committee, 69
emergency management, 75, 76
Department of Human Services–Child Support
Agency Collective Agreement 2008–11, 215
Department of the Environment, Water,
Heritage and the Arts, 61
employment services
code of practice, 82
CRS Australia, 58
delivery of, 17
providers, 25
Department of the Prime Minister and Cabinet,
27
enabling services, integration of, 10, 24–25,
26, 84
Department of Veterans’ Affairs, 58, 63
energy use see ecologically sustainable
development
Department of Immigration and Citizenship, 63
Deputy CEO/CPSU Working Party on Service
Delivery Reform, 26
employees (Departmental) see staff
eNews for Parents, 33
Deputy Secretaries, 12–13
enforcement activities see compliance activities
determinations under section 24(1), 217
enterprise agreement, 26
DHS Strategic Directions 2010–11, 9
Environment Protection and Biodiversity
Conservation Act 1999, 74, 186
disabilities, employees with, 210, 214
successful job seekers, case study, 56
see also Commonwealth Disability Strategy
environmental performance see ecologically
sustainable development
Disability Discrimination Act 1992, 194
equity see social justice and equity
disability employment services, 57, 58, 63
equity (financial), 101
Disability Services Act 1986 (Disability Service
ethical standards
Department of Human Services Annual Report //
239
CRS Australia, 81–82
Department of Human Services, 77
Evans, Chris, 16
full-time staff
CRS Australia, 211, 212, 213
Department of Human Services, 209
exempt contracts, 94, 97
expenses, 100–101
expenses (Departmental), 100
external scrutiny
CRS Australia, 78–79
Department of Human Services, 71–73
interdepartmental committees, 70–71
G
Gate 0 (Business Need) review, 26
Gateway Review Process, 26
gender of staff
CRS Australia, 211, 213
Department of Human Services, 209
F
General Manager, CRS Australia, 13
decision-making powers, 181
Family Assistance Office, 29
Geo-demographic Interactive Simulation Tool,
16, 31
Family separation—a guide for teens, 33
Family Tax Benefit, 33
feedback see customer satisfaction
Geoscience Australia, 30–31
Gershon Review, 189
financial counselling, 38
governance
CRS Australia, 69–70
Department of Human Services, 68–69
Portfolio, 67
see also management and accountability;
plans and planning
financial literacy for families, 36, 38
grant programs, 78, 82
financial management (CRS Australia), 95
Green Fleet Carbon Offset Program, 191
Financial Management and Accountability Act
1997, 68, 80, 218
Green Lease Schedules, 188
financial overview, 100–102
Green Teams, 188
financial performance, 4, 100
greenhouse gas emissions see ecologically
sustainable development
female staff
CRS Australia, 211, 213
Department of Human Services, 209
Finance Committee (DHS Committee), 69
financial statements, 103–174
Forward to 2012, 58
fraud control, 30
certification, 206
CRS Australia, 80
Department of Human Services, 75
see also risk management
freedom of information, 181–183
CRS Australia, 79, 183
Department of Human Services, 72–73,
182–183
Freedom of Information Act 1982, 72, 181
Freedom of Information Amendment (Reform)
Act 2010, 72
240 // REFERENCES
green procurement, 192
greening strategy for information and
communications technology, 189
Griffiths, Robert, 16
H
Health and Human Services Chief Executive
Officers’ Forum, 70
health and wellbeing, 88
see also occupational health and safety
health business and delivery policy, 29–30
Healthcare Identifier Service, 29
Henry Review of the taxation system, 31
injury prevention, 58, 60, 88
Homelessness Delivery Review Board, 29
inter-agency connectivity, 26
human resources see people management; staff
interdepartmental committees to deliver
outcomes for the government, 70–71
Human Rights Commission, 71
Human Services agencies
child protection data sharing protocol, 28
Human Services Agency Security Adviser, 75
Human Services Portfolio see Portfolio
Huxley, Debbie, 56
internal scrutiny
CRS Australia, 80–82
Department of Human Services, 74–77
international debt, 40–41
see also debt and debt collection
It’s not about the money. It’s about the kids, 33,
38, 51
I
ICT see information and communications
technology
identity management in a disaster, 76
income management, 29
income reconciliation, 44
Indigenous Australians
DHS employees, 86–87
Reconciliation Action Plan, 86
social justice and equity, 28
Indigenous staff, 210, 214
individual agreements
CRS Australia, 90
Department of Human Services, 85
information and communications technology
CRS Australia, 62, 97
government use of (Gershon Review), 189
greening strategy, 189
ICT Governance Committee (Portfolio
Committee), 66, 67
ICT Infrastructure Integration Program
Steering Committee (Portfolio Committee),
66, 67
integration of enabling services, 24–25, 26
telephony infrastructure, 38
J
Job Capacity Account Program, 58, 62
Job Capacity Assessment Program
service charter, 77
services to DEEWR, 58, 59
transferred to DEEWR, 102
job seekers
assisted by CRS Australia, 57–59
case study, 56
Local Connections to Work, 25, 28, 29, 62
judicial decisions, 79
K
key performance indicators see performance
indicators
key result areas for CRS Australia, 58
Kids Helpline, 51
knowledge management (CRS Australia), 97
L
leadership development, 87
information campaigns see advertising and
market research
learning and development see staff learning and
development; training
information management see knowledge
management; records management
legislative framework (Portfolio), 5
information products, 38
see also websites
liabilities, 102
Information Publication Scheme, 72
letter of transmittal, iii
libraries, 97
Department of Human Services Annual Report //
241
Local Connections to Work, 25, 28, 29, 62
misconduct see fraud control
location of staff
CRS Australia, 212, 214
Department of Human Services, 209
Moran, Terry, 27
Lodgement Enforcement Program, 41
My family is separating—What now?, 33, 38
N
M
National Archives of Australia Records
Authorities, 97
male staff
CRS Australia, 211, 213
Department of Human Services, 209
The National Compact: working together, 28
management and accountability
CRS Australia, 78–82
Department of Human Services, 71–78
see also governance
Management Board (DHS), 66, 68
market research see advertising and market
research
MASCOT Data Access Agreement, 41
McMillan, John, 72
McNab, Chris, 16
media coverage
Child Support Program, 32
monitoring of, 33
media monitoring, 33
media releases, 32
Medicare Australia, 5
access to all staff phone directory, 26
co-design process, 26
co-located facilities, 24, 25
CRS Australia services to, 61
governance of service delivery, 67
integration of enabling services, 24
ministerial and parliamentary functions, 31
service operator for the Healthcare Identifier
Service, 29
National Compact Across Government Working
Group, 28
National Framework for Protecting Australia’s
Children 2009–2020, 38, 49
National Health and Safety Committee
CRS Australia, 70
Department of Human Services, 69
National Occupational Health and Safety
Committee, 92
National Partnership Agreements, 28
National Referral Management Team, 62
natural disasters
reform agenda, 76
response to, 31
network portal for portfolio staff, 26
Networks of Excellence, 97
New Zealand Community Link model, 25
non-compliance see compliance activities
non-English speaking background staff, 210
non-ongoing staff
CRS Australia, 213, 214
Department of Human Services, 208
non-senior executive service remuneration,
215–217
not-for-profit sector, 28–29
Medicare Australia Act 1973, 5
memorandums of understanding (MoUs), 25,
41, 58
mental health and job seekers, 59
Minister for Human Services Awards, 60
Ministerial briefs and correspondence, 3, 18, 182
242 // REFERENCES
O
objections to child support decisions, 47, 71
occupational health and safety
Child Support Program, 178–179
CRS Australia, 92, 179–180
Department of Human Services, 87–88,
178–179
services provided by CRS Australia, 58
Occupational Health and Safety Act 1991, 69,
92, 178
Office of Hearing Services, 30
Office of Hearing Services, Department of
Health and Ageing, 30
Office of the Privacy Commissioner, 25, 71
Ombudsman see Commonwealth Ombudsman
ongoing staff
CRS Australia, 211, 212
Department of Human Services, 208
online service delivery see service delivery
Open Mind Research Group, 32
organisation and structure
Department of Human Services, 10, 12–13
departmental reorganisation, 10, 24–25
Portfolio, 5–7
outcome and programs, 11
Outcome 1 see Central Department
Program 1.1 Human Services see Department
of Human Services
Program 1.2 Child Support see Child Support
Program
outlook for year ahead, 4
outside participation, arrangements for,
181–182
see also stakeholder engagement
P
Paid Parental Leave scheme, 29
paper use see ecologically sustainable
development
parental leave, 29
The Parent’s Guide to Child Support, 33
part-time staff
CRS Australia, 211, 212, 213
Department of Human Services, 209
partnerships see stakeholder engagement
pay see remuneration
payment reform, 31
people management
case study, 83
CRS Australia, 90–93
Department of Human Services, 84–88
integration of Portfolio human resources
functions, 84
see also staff
performance indicators
Central Department, 18–23
Child Support Program, 39
CRS Australia, 57
performance pay
CRS Australia, 91
Department of Human Services, 85, 216
performance reports
Central Department, 18–23
Child Support Program, 39
CRS Australia, 57
personal information, privacy of, 25, 73, 79
personnel see staff
plans and planning
business continuity, 74–75
business planning for service delivery reform,
27
compliance, 30
CRS Australia, 58, 80
emergency management, 75
Reconciliation Action Plan, 86
strategic, 9
workforce planning, 86–87
portal for portfolio staff, 26
Portfolio
cross-Portfolio service improvement, 6–7
ecologically sustainable development, 74
emergency call centre surge capability, 76
governance, 67
legislative framework, 5
media monitoring process, 33
organisation and structure, 5–7
parliamentary, ministerial and government
related advice, 31
protective security functions, 75
services see service delivery
Strategic Intelligence Training Program, 30
Department of Human Services Annual Report //
243
Portfolio Agency Heads Meeting see Secretary
and Chief Executive Officers’ Committee
publications, 33, 48, 58, 182
Portfolio Budget Statements, 9
purchasing see procurement
Portfolio Business Continuity Community of
Practice, 75
Portfolio Customer Committee, 66, 67
Portfolio Department of Human Services see
Department of Human Services
Portfolio Finance Committee, 66, 67
Portfolio People and Leadership Committee,
66, 67
purchaser-provider arrangements, 63
Q
quality assurance
Child Support Program, 49
CRS Australia, 61
job capacity assessments, 61
press clips, 33
R
Prevention and management of customer
aggression, 60
Reconciliation Action Plan, 86
Privacy Act 1988, 74
privacy impact assessments, 25, 73
privacy of personal information, 25, 73, 79
private collection arrangements (child support), 40
procurement
CRS Australia, 63, 96–97
Department of Human Services, 93–95
green procurement, 192
whole-of-Portfolio approach, 93
see also advertising and market research;
consultancy services
productivity measures and payments, 85, 90–91
Program 1.1 Human Services see Department of
Human Services
Program 1.2 Child Support see Child Support
Program
property management
CRS Australia, 97
Department of Human Services, 94–95
protective security
CRS Australia, 80–81
Department of Human Services, 75
public access to documents, 182
Public Accounts and Audit Committee Act
1951, 71
Public Service Act 1999, 90, 207, 211
section 24(1) determinations (employment),
217
244 // REFERENCES
records management, 76, 97
recruitment see staff recruitment and retention
recycling see ecologically sustainable
development
The Reform of Australian Government
Administration, 27
rehabilitation services see CRS Australia;
vocational rehabilitation services
Remote Service Delivery National Partnership, 28
remuneration
CRS Australia, 216–217
Department of Human Services, 215–216
performance pay, 85
Senior Executive Service Officers, 85
reorganisation see organisation and structure
requests for access to documents, 72–73
research projects, 32, 63
resources
CRS Australia, 95–97
Department of Human Services, 93–95
resource statements, 221–223
retail training program for job seekers, 56
retention of staff see staff recruitment and
retention
revenue (Departmental), 100
Review of the Australian Government’s Use of
ICT (Gershon Review), 189
reviews
Australia’s Future Taxation System (Henry
Review), 27
Delivering Quality Outcomes Review, 49, 51,
52–53
Gate 0 (Business Need) review, 26
rewards and recognition, 63
see also awards
Forum), 69
remuneration, 85, 91
Senior Leadership Group, 69
senior management committees
CRS Australia, 69–70
Department of Human Services, 68–69
Rice, Jim, 83
separated and separating parents, support
services for, 33, 48–49, 51
Risk, Security and Business Continuity
Committee (DHS Committee), 69, 74
service charters, 77
risk management
CRS Australia, 80
Department of Human Services, 74–75
international standard for, 74
Risk Management Committee (CRS Australia), 70
The Road Home: a national approach to
reducing homelessness (White Paper), 29
service delivery
Central Department performance summary,
17–23
Child Support Program, 45–50, 52–53
improvements, 48–49
policy and program advice, 27–29
see also CRS Australia; Job Capacity
Assessment Program
salaries see remuneration
service delivery reform, 2–3, 6–7, 8, 9
business intelligence, 30
case study, 83
Central Department (Outcome 1), 24–27
Geo-demographic Interactive Simulation Tool
(GIST), 31
payment reform, 31
satisfaction with performance see customer
satisfaction; stakeholder engagement
Service Delivery Reform Board (Portfolio
Committee), 66, 67
Saver Plus, 38
scrutiny see external scrutiny; internal scrutiny
Service Delivery Reform Interdepartmental
Committee, 71
2nd Pass Business Case for CSDI, 31
shortened forms, 233–234
secrecy provisions in Commonwealth legislation,
73–74
Six Countries forum, 30
Secretary
Compact Champion, 29
decision-making powers, 181
responsibilities, 10
review of year, 2–4
Service Delivery Reform Board, 67
social justice and equity, 28–29
see also Commonwealth Disability Strategy
Robertson, Peter, 16
Roden, Michael, 16
S
Secretary and Chief Executive Officers’
Committee, 3, 66, 67
section 24(1) determinations (employment), 217
security see protective security
senior executive of Department, 12
Senior Executive Service (SES)
All Senior Executive Service Forum (All SES
social inclusion, 3, 63
Social Security Appeals Tribunal, 47, 71
spatial data, 17, 30–31
staff
all staff phone directory, 26
CPSU and, 26
CRS Australia staff statistics, 211–214
Department staff statistics, 207–210
equity and diversity groups, 210, 214
ethical standards, 77, 81–82
senior executive of Department, 12
see also Secretary
Department of Human Services Annual Report //
245
staff integration, 26
staff learning and development
Child Support Program, 53
CRS Australia, 60, 92–93
Department of Human Services, 87
fraud and ethics awareness, 75
privacy training, 73
staff profile
CRS Australia, 90
Department of Human Services, 84
staff recruitment and retention
CRS Australia, 91
Department of Human Services, 86
stakeholder engagement
Child Support Program, 37, 50–53
CRS Australia, 61–62
service delivery reform, 25–26
see also customer satisfaction
Step Two Designs, 62
Strategic Business Group (CRS Australia), 70
Strategic Intelligence Training Program, 30
Strategic Partnerships Interdepartmental
Committee, 27, 70
Strategic Plan 2009–13, 9
strategic plans, 9
A Stronger, Fairer Australia, 28
structure see organisation and structure
support services for separated and separating
parents, 33, 48–49, 51
training
CRS Australia training and development
strategy, 53
mental health awareness for staff, 86, 93,
178
retail training program for job seekers, 56
see also staff learning and development
The Transition Mental Health and Family
Collaborative, 63
transport see ecologically sustainable
development
The Treasury, 27
CRS Australia services to, 61
U
University of Melbourne, 63
V
values see Australian Public Service Values and
Code of Conduct
Vocational Rehabilitation Service, 58
vocational rehabilitation services, 57, 58
working with CRS Australia, case study, 89
see also CRS Australia
W
wages see remuneration
surge capability, emergency call centre, 76
wages assessments, 58, 62
T
waste management see ecologically sustainable
development
Taskforce on Strengthening Government Service
Delivery for Job Seekers, 25
Weary Dunlop Award, 63
websites, 9, 24, 45, 58, 181, 204
taxation system review, 31
White Paper on Homelessness, 29
telephone services (CSP), 37
Women and Separation: a national depression
initiative, 51
telephony infrastructure see information and
communications technology
Telstra, 59
tendering see procurement
terminology (definitions), 232
246 // REFERENCES
WorkCover revenues, 61
workers compensation claims
CRS Australia, 180
Department of Human Services, 179
workers compensation premiums, 88, 179
workforce participation outcomes, 59
workforce planning, 86–87
workplace agreements, 26, 84, 85, 90,
215–217
workplace change management, 87
workplace diversity
CRS Australia, 93
Department of Human Services, 86
Diversity@Work Awards, 63
workplace giving, 92
workplace rehabilitation services see vocational
rehabilitation services
workplace safety, 87–88, 92
Y
year ahead, outlook for, 4
Young, Anita, 89
Department of Human Services Annual Report //
247
Contacts
Department of Human Services
Department of Human Services
For enquires about the policy of service delivery, or the coordination of services across the Human Services
portfolio.
Telephone:
(02) 6223 4400 (Switchboard)
Fax:
(02) 6223 4499
Email:
[email protected]
Website:
www.humanservices.gov.au
Street address:
65 Canberra Avenue
Griffith ACT 2603
Postal address:
PO Box 3959
Manuka ACT 2603
ABN:
90 794 605 008
Human Services Agencies
Child Support Agency
Enquire over the phone or online, locate your nearest CSA office and provide feedback on the CSA website
or service you received.
Within Australia
131 272
(Local call charge excluding mobile and public
phones)
Within New Zealand
0800 440 953
(freecall)
From other countries*
+61 131 272 or
+61 3 6216 0864
(International call charges apply)
Teletypewriter (TTY)
1800 631 187
(For people with hearing and/or speech difficulties)
Call recording
Most calls to and from CSA are now monitored and recorded for quality assurance purposes, to improve
customer service and increase confidence in accountability.
CSA also uses call recording to review customer interactions when investigating and resolving customer
complaints or reviewing objections. If you choose not to have your conversation recorded, visit us face-toface, write to us, or use our secure online service at www.csaonline.gov.au.
CRS Australia
To request information on CRS Australia’s services’, make a referral, or provide feedback, call 1800 277 277
to be connected to your nearest office or visit www.crsaustralia.gov.au.
248 // REFERENCES
Department of Human Services Annual Report //
249