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Sister Ada Smith, Australian Army Nursing Service, stands outside her tented quarters at the 2nd Australian Casualty Clearing Station at Trois Arbres, France, in 1916. (AWM P00156.058)

PART 2 MANAGEMENT AND ACCOUNTABILITY

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CORPORATE GOVERNANCE

DVA’s governance and management framework (Figure 11) is based on the principles of performance assurance and accountability within a risk management framework. DVA’s tier one governance bodies integrate these principles into DVA operations through strategic planning, engagement with risk, innovation, performance monitoring, and evaluation and review activities.

DVA’s governance framework reflects the importance of collaborative partnerships in shaping the Department’s overall performance results. This results in a tailored governance framework that is fit for purpose and able to be adjusted to meet DVA’s changing needs. For example, an information technology representative from the Department of Human Services (DHS) sits on the Information Committee.

The Executive Management Board is the primary tier one governing body for the Department; its membership incorporates the Secretary and his senior leadership team. Common membership across the Executive Management Board, the Repatriation Commission and the Military Rehabilitation and Compensation Commission ensures an ongoing relationship between the policy and operational facets of the Department.

The tier one committees are supported by subcommittees that focus on various aspects of performance, accountability and risk. Tier three entities, such as the various reference groups and working groups, support and influence governance arrangements through their roles in policy, legislation and operational support.

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Figure 11: DVA governance and management framework

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The Department’s strategic plan, DVA Towards 2020, focuses on three key themes—to be client-focused, responsive and connected. DVA Towards 2020 is the Department’s high-level planning document. More detailed information about business activities, planned performance and measures is provided in the Department’s corporate plan.

LegislationThe primary legislation administered by the Minister for Veterans’ Affairs during 2015–16 was:

�� Anzac Day Act 1995

�� Australian War Memorial Act 1980

�� Defence Service Homes Act 1918

�� Military Memorials of National Significance Act 2008

�� Military Rehabilitation and Compensation Act 2004, except to the extent administered by the Minister for Defence

�� Safety, Rehabilitation and Compensation Act 1988, Part XI except for sections 143(2) and (3), 144(4), 149, 150, 153(2), 156, 158 and 159

�� Veterans’ Entitlements Act 1986.

A full list of the legislation administered by the Minister for Veterans’ Affairs, as detailed in the Administrative Arrangements Order, is available from the Department of the Prime Minister and Cabinet website at www.dpmc.gov.au/resource-centre.

Risk management Risk assessment and management are critical to DVA being able to achieve its objectives efficiently and effectively. The Department’s risk management framework is compliant with the Public Governance, Performance and Accountability Act 2013 and aligns with the Commonwealth Risk Management Policy.

During 2015–16, DVA made a number of improvements to the framework. They included the introduction of mandatory e-learning for all employees, the introduction of quarterly reporting of key business risks, and improvements to DVA’s risk assessment process.

Benchmarking The annual Comcover Risk Management Benchmarking Survey provides DVA with an opportunity to benchmark its risk management maturity and review and measure the extent to which risk management has been integrated into business operations. The survey also assists the Department in identifying areas for improvement and prioritising its risk management activities.

In the 2016 survey, DVA achieved a maturity level of ‘Integrated’. This was in line with the average maturity level of all survey participants in 2016.

Business continuity The Department’s business continuity plan is an integral element of the risk management framework and provides assurance that essential services will continue to be provided following a major disaster or a significant interruption to service delivery. In 2015–16, no incidents occurred that required activation of the business continuity plan.

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Service CharterThe DVA Service Charter provides a high-level overview of the service clients can expect from DVA, including the Department’s standards and service delivery commitments.

The service charter also provides guidance to clients about their rights and outlines how they can assist DVA to continuously improve service delivery by providing feedback about their experiences with DVA.

Client feedbackDVA is committed to recording and responding to client feedback. In 2015–16, DVA developed a framework to manage unreasonable conduct by clients or their representatives when complaining to the Department. The framework is based on best practice guidelines drafted by the Commonwealth and NSW ombudsmen’s offices. While the complainants who exhibit such behaviours make up a small percentage of those who provide feedback, they can have a huge impact on resources and the ability of staff to perform their functions, as well as the health, safety and security of staff.

The framework ensures equity and fairness for all complainants by establishing a consistent process for handling unreasonable behaviour. It also supports the efficient use of departmental resources in dealing with unreasonable conduct. Staff were provided with awareness training in the new framework, which complements the existing feedback management process within DVA.

It is pleasing that the vast majority of complainants remain respectful and courteous to staff when lodging a complaint and when dealing with staff in attempting to resolve issues.

Table 35 shows the numbers of complaints and compliments received over the past five years.

Table 35: Complaints and compliments 2011–12 to 2015–16

2011–12 2012–13 2013–14 2014–15 2015–16

Number of complaints 2,290 2,031 2,021 3,013 2,288

Number of compliments 968 1,116 964 730 699

The three most common areas of complaints related to:

�� administrative matters

�� the accessibility and responsiveness of client service

�� the service and performance of contractors or providers.

The three most common areas of compliments related to:

�� the accessibility and responsiveness of client services

�� the attitude of staff

�� the provision of clear and correct information.

DVA also recorded 286 suggestions for improvement in 2015–16, compared to 224 in 2014–15. As in past years, most of the suggestions related to DVA’s MyAccount online portal.

As outlined in the DVA Service Charter, the standard time taken to resolve a complaint is 28 days. DVA consistently resolves most complaints well within this period: in 2015–16 the average time taken to resolve a complaint was 13 days, which was the same as the result in 2014–15.

Levels of satisfaction with the feedback process and its outcomes are shown in Table 36.

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Table 36: Proportion of clients satisfied with the Department’s response to their feedback in 2015–16 (%)

Satisfied Neutral Dissatisfied

Conduct of the feedback process 55 43 2

Outcome of the feedback process 51 44 5

Fraud and non-complianceThe purpose of DVA’s fraud and non-compliance program is to maintain the integrity of DVA and the repatriation system by preventing, detecting, investigating and reporting fraudulent and non-compliant activity. In 2015–16, DVA focused on expanding its fraud and non-compliance prevention measures through education and training. This proved effective in helping DVA clients, service providers, staff and contractors to understand their roles and responsibilities in complying with the fraud control frameworks of DVA and the wider Commonwealth.

DVA uses a community compliance model, which seeks to make it as easy as possible for individuals or groups to meet their obligations. The model also allows for intervention if individuals or groups engage in fraudulent behaviour. If clients and providers do not comply, DVA may refer cases to the Commonwealth Director of Public Prosecutions and law enforcement agencies.

Fraud control In line with its risk management policy, in 2015–16 DVA supported cross-portfolio initiatives and strategies to address fraud and non-compliance risks and implemented action items in the DVA Fraud Control Plan 2015–17.

To ensure that adequate control measures were in place for fraud prevention, detection, investigation and reporting, the Department:

�� developed and implemented a mandatory fraud awareness e-training program specific to DVA—the program was designed to complement the Attorney-General’s Department fraud awareness e-learning that was implemented in 2014–15

�� achieved greater connectivity across the Department and the broader Commonwealth to harness operational and intelligence data through post-payment monitoring and data matching activities

�� improved and streamlined channels for individuals and groups to report suspected fraud and non-compliance, including releasing an online form that members of the public can use to report suspected fraud and non-compliance

�� ensured that investigations were aligned with the Department’s case prioritisation model

�� continued to simplify and standardise fraud reporting processes.

In 2016–17, DVA will continue to focus on reducing the risk of fraud and non-compliance. It will also continue to periodically review its fraud risks and mitigation strategies, and validate the strength of its internal control framework as business needs change. This will include the development of the next fraud control plan.

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Fraud and non-compliance statisticsIn 2015–16, the Department received 338 new cases of alleged fraud or non-compliance and 95 cases were rolled over from the previous financial year. At 30 June 2016, 336 cases had been closed and 97 cases remained open with investigations into fraud and non-compliance underway.

In total, the Department identified around $0.52 million in confirmed fraud and non-compliance investigation cases in 2015–16.

Of the 336 finalised cases, none identified fraud, 25 identified non-compliance and 311 detected no offence. There were no cases within the court system or awaiting hearing during the year.

Table 37 shows fraud investigation activity conducted by DVA over the past five years.

Table 37: Fraud investigation activity 2011–12 to 2015–16

2011–12 2012–13 2013–14 2014–15 2015–16

Current cases at 30 June 38 97 140 95 97

Matters before the courts 1 3 21 22 0

Matters referred to the Commonwealth Director of Public Prosecutions or law enforcement agencies 0 4 1 0 0

Convictions 1 1 4 2 0

Finalised cases (including convictions) 52 174 196 308 336

1 These cases have been counted as current cases at 30 June 2014. 2 These cases have been counted as convictions and finalised cases at 30 June 2015.

Compliance report for financial year 2015–16There are no significant instances of non-compliance with the finance law.

Internal auditIn 2015–16, DVA’s internal audit services were provided by KPMG contractors based in the Canberra office. KPMG carried out independent and objective assurance and consulting activities in accordance with the Department’s internal audit and assurance strategy and the Institute of Internal Auditors’ standards. Activities included program, performance and financial reviews, ICT audits, and advice and assistance in corporate governance, risk management and fraud control.

The internal audit program was coordinated with the work of the Australian National Audit Office and DVA’s other assurance functions, including quality-assurance programs. The internal audit work program was approved by the Secretary and monitored by the Audit and Risk Committee.

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Privacy The Department’s business areas are obliged to notify the Legal Services, Assurance and Deregulation Branch of any potential privacy breaches.

In 2015–16, the branch received 59 notifications of potential breaches, 42 of which related to mail or email. Investigations concluded that breaches had occurred in 36 cases and no breaches had occurred in 16 cases. The remaining cases were resolved in other ways or were still under investigation at the end of 2015–16.

In cases where a privacy breach occurs, privacy refresher training is provided to staff and changes are made to relevant procedures to minimise the risk of future breaches.

DVA is required to report significant privacy breaches to the Office of the Australian Information Commissioner. DVA notified the acting Australian Information Commissioner of two significant breaches that occurred in 2015–16.

In 2015–16, no reports were served under section 30 and no determinations were made under section 52 or section 72 of the Privacy Act 1988.

Freedom of informationAgencies subject to the Freedom of Information Act 1982 are required to publish information to the public as part of the Information Publication Scheme. The scheme specifies categories of information that agencies must publish online and encourages agencies to proactively release information in a consistent way. Each agency must publish on its website a plan describing the information it publishes in accordance with the scheme’s requirements. DVA’s plan is available at www.dva.gov.au/about-dva/freedom-information/information-publication-scheme.

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EXTERNAL SCRUTINY

External decisions and reports related to the operations of the Department in 2015–16 are described in this section. In 2015–16, DVA was the subject of three audits by the Auditor-General and made a submission to one Joint Committee of Public Accounts and Audit inquiry.

Decisions by courts and tribunalsA person who is dissatisfied with a decision of the Repatriation Commission or the Military Rehabilitation and Compensation Commission (MRCC) may appeal the decision under the Veterans’ Entitlements Act 1986 (VEA), Safety, Rehabilitation and Compensation Act 1988 (SRCA) or Military Rehabilitation and Compensation Act 2004 (MRCA).

An appeal relating to a compensation matter under the VEA is lodged first with the Veterans’ Review Board (VRB). If the appellant is dissatisfied with the outcome at the VRB, they can lodge a further appeal to the Administrative Appeals Tribunal (AAT).

If a person wishes to appeal an income support decision under the VEA, it is first subject to an internal review by a different decision-maker and then subject to review by the AAT.

An appeal relating to an SRCA matter is first subject to an internal review by a reconsideration delegate. The matter can then be reviewed by the AAT.

An appeal of an MRCA decision may proceed on one of two pathways: appeal to the VRB then to the AAT, or appeal for internal review by the reconsideration delegate then to the AAT. The person must nominate one pathway to the exclusion of the other.

Table 38 sets out the AAT outcomes by Act for 2015–16.

Table 38: VEA, SRCA and MRCA matters considered by the Administrative Appeals Tribunal in 2015–16

Category Applications decided by AAT Decisions affirmed by the AAT1

VEA 180 58

SRCA 79 18

MRCA 48 8

AAT = Administrative Appeals Tribunal, MRCA = Military Rehabilitation and Compensation Act 2004, SRCA = Safety, Rehabilitation and Compensation Act 1988, VEA = Veterans’ Entitlements Act 19861 These figures appear low because they do not include matters that were withdrawn, dismissed or settled by consent.

In accordance with the Legal Services Directions 2005, the Repatriation Commission or the MRCC may lodge an appeal to the AAT or the Federal Court in order to clarify a legal issue or protect the integrity of legislation.

In 2015–16, the Federal Court delivered four decisions, three of which were favourable to the veteran or widow. The Federal Circuit Court also delivered two decisions. The Repatriation Commission was successful in both of those cases. The Full Federal Court delivered three decisions, one of which was favourable to the veteran.

The High Court delivered one decision, Military Rehabilitation and Compensation Commission v May [2016] HCA 16, in which it examined the legal concept of injury and reinforced earlier case law. The MRCC was successful in that case.

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Decisions by the Australian Information Commissioner The acting Australian Information Commissioner handed down one decision in relation to the Department in 2015–16 under the Freedom of Information Act 1982 (FOI Act). There were no determinations made under the Privacy Act 1988.

On 22 April 2016, in David Watts and Department of Veterans’ Affairs [2016] AICmr 26, the acting Australian Information Commissioner set aside a decision by the Department under the FOI Act, regarding emails between departmental officers and Monash University staff and researchers, and chapters of draft Gulf War health study reports. The Commissioner substituted the Department’s decision with his decision to grant greater access to the documents than the level of access provided by the Department.

The Commissioner’s decision considered the applicability of the exemption contained in section 47F of the FOI Act. This provision allows agencies to refuse access to documents where disclosure would involve the unreasonable disclosure of personal informational about any person, and where disclosure would be contrary to the public interest. The Commissioner decided that this provision did not apply to the names and contact details of individuals, and that the Department should release the emails. However, the Commissioner upheld the Department’s decision that giving the applicant access to the draft reports would be contrary to the public interest.

A copy of the decision is at www.oaic.gov.au.

Reports by the Auditor-GeneralReports tabled in Parliament by the Auditor-General were reviewed by senior management and relevant DVA business areas.

In 2015–16, the Auditor-General published the following audit reports that related specifically to DVA:

�� Audit Report No. 4 2015–16, Confidentiality in government contracts: Senate order for departmental and entity contracts (calendar year 2014 compliance)

�� Audit Report No. 5 2015–16, Implementation of audit recommendations

�� Audit Report No. 32 2015–16, Administration of rehabilitation services under the Military Rehabilitation and Compensation Act 2004.

Copies of these reports are available at www.anao.gov.au.

Reports by the Joint Committee of Public Accounts and AuditThe Joint Committee of Public Accounts and Audit examines reports of the Auditor-General that are tabled in Parliament. DVA’s Audit and Risk Committee monitors all reports of the committee.

During 2015–16, DVA made a submission to the committee’s inquiry into the development of the Commonwealth performance framework. A copy of the submission is available at www.aph.gov.au.

Implementation of the Government’s deregulation agenda The Department reported its key red tape savings activities for 2015–16 in the Government’s Annual Red Tape Reduction Report. The report outlines the achievements of the Australian Government in delivering its commitment to regulatory reform and reducing the costs and regulatory burdens imposed by unnecessary red tape.

The report and the Department’s portfolio-specific summary are available on the Cutting Red Tape website at www.cuttingredtape.gov.au/annual-red-tape-reduction-report-2015.

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MANAGEMENT OF HUMAN RESOURCES

The management of the Department’s human resources is the responsibility of the People Services Branch. The branch supports managers and staff across the Department with the full range of people management services, including employment arrangements, industrial relations, workforce planning, learning and development, entry-level programs and recruitment.

The branch aligns its approach with DVA’s three key strategies—client-focused, responsive and connected—and prioritises its initiatives through the Towards 2020 Workforce Strategy. It assesses its effectiveness using a variety of measures, including the State of the Service employee census. The 2015 census showed that the majority of DVA staff agreed that they had access to effective learning and development.

Employment arrangementsAll employee remuneration and benefits are provided under the Department’s Enterprise Agreement 2015–2018, individual flexibility agreements, or determinations under section 24(1) of the Public Service Act 1999. At 30 June 2016, no DVA employee was covered by an Australian workplace agreement.

Enterprise agreementDVA’s Enterprise Agreement 2015–2018 came into effect on 13 January 2016. The nominal date of expiry is three years from the commencement date.

Individual flexibility agreementsThe enterprise agreement contains provisions allowing the Secretary and an employee to make an individual flexibility agreement varying the effect of the terms of the enterprise agreement.

At 30 June 2016, DVA had in place 15 individual flexibility agreements providing enhanced individual remuneration or benefits.

Public Service Act determinationsAt 30 June 2016, DVA had in place 30 determinations under section 24(1) of the Public Service Act delivering remuneration and conditions for Senior Executive Service (SES) staff.

Performance payPerformance pay is not available to DVA employees.

Non-salary benefitsNon-salary benefits provided to SES staff and a small number of high-performing Executive Level (EL) 2 employees include parking facilities at the workplace, airline lounge membership, and an executive vehicle allowance that may be salary packaged for a novated vehicle lease.

All staff, including the SES, have access to Commonwealth superannuation arrangements as part of their remuneration entitlements.

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Workforce planningIn 2015–16, a new workforce strategy, Towards 2020 Workforce Strategy, was completed. The strategy focuses on four strategic priorities:

�� Lead: Building the capabilities our leaders will need to lead people into the future

�� Engage: Creating a rewarding, responsive and high-performance environment

�� Develop: Investing in our learning

�� Refresh: Being an organisation people want to join and stay a part of.

Ongoing work to recruit talented people and develop workforce planning capability continued in 2015–16, while the Department prepared for the commencement of a project that will:

�� define an agreed future workforce (to 2020) that supports the Department’s vision to efficiently deliver high-quality, connected services

�� identify required

- capability, using the Australian Public Service Commission (APSC) job families model

- capacity, taking into account internal full-time equivalent projections

�� develop steps and actions to achieve a successful transition from the current workforce profile to one that is better structured to reflect the Department’s future business needs.

This forward view of the Department will consider the impact of priority projects such as shared services, veteran-centric reform and digitisation and any significant local (business-specific) initiatives, at all levels of the business.

Learning and developmentIn 2015–16, learning and development, guided by the Towards 2020 Workforce Strategy, focused on:

�� client service

�� leadership

�� management

�� core public administration skills, including project, contract, change and risk management

�� technical competence in DVA’s business.

The national client service workshop, It’s Why We’re Here, was delivered five times. This course enables DVA staff to hear first-hand about the experiences of contemporary veterans, both in deployment and in dealing with the Department. A number of courses focusing on veterans’ mental health were undertaken by staff, through e-learning and face to face.

Leadership and management will be critical areas for DVA as it makes the significant changes required to transform its business and the organisation over the coming years. A pilot of the new Leadership Pathways Program was held for EL staff, with more to be scheduled over the next year for both EL and APS level staff. An SES/EL Forum was held that facilitated presentations and discussions about the changes and challenges facing DVA. Leadership skills continued to be built through workshops in performance conversations and management essentials.

Staff also developed their public service competencies in areas such as working effectively, building resilience, job application and interview skills, selection processes, records management, cultural awareness, and career management. In addition, nine e-learning courses relating to government processes were configured as an essential e-learning plan on the Department’s learning management system. The plan tracks completion rates and sends automatic reminders to staff and managers.

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Business areas provided specific client service training for staff aimed at improving their technical and legislative skills and knowledge, including managing unreasonable conduct by complainants.

Programs were evaluated primarily through feedback sheets, surveys and focus groups. Suggestions from participants will be incorporated into future programs.

Figure 12 shows the expenditure on learning and development over the past six years. The increase from around $4 million in 2014–15 to nearly $5 million in 2015–16 is largely due to the introduction of the nine compulsory e-learning modules.

Figure 12: Expenditure on learning and development 2010–11 to 2015–16

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GraduatesSixteen DVA graduates, including three ICT and two Indigenous graduates, completed the APSC Graduate Development Program in December 2015 and attained a Diploma of Government.

In February 2016, 18 graduates—including three ICT graduates and two Indigenous graduates—commenced with the Department. Graduates in the generalist stream participate in the APSC program and undertake three work placements within DVA that are designed to expose them to the broad range of work that DVA undertakes. Successful completion of the APSC program enables graduates to move into a Master of Public Administration if they wish. ICT graduates who successfully complete the program receive a Graduate Certificate in Advanced Business Informatics through the University of Canberra.

Indigenous employment initiativesDVA’s Indigenous employment staffing level in 2015–16 was 1.6 per cent (32 ongoing staff members in a total of 1,986 staff), the same level as in 2014–15 (31 ongoing staff member and one non-ongoing staff member in a total of 1,968 staff). The Department remains committed to moving towards the Government’s target of 3 per cent Indigenous employment in the APS by 2018.

In 2015–16, DVA participated in the whole-of-government Indigenous Apprenticeship Program. One Indigenous apprentice commenced in October 2015, in DVA’s Brisbane office, and two more apprentices will commence in October 2016. DVA has also participated in the Indigenous Cadetship Program; at 30 June 2016, there was one remaining cadet participating in the Indigenous Cadetship Program.

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Recruitment and turnoverAt 30 June 2016, DVA had a total of 1,986 employees, an increase compared with 1,968 in 2014–15. This figure includes employees paid from administered funds and excludes staff on more than three months unpaid leave.

Non-ongoing employees made up 7 per cent of DVA’s total workforce at 30 June 2016, an increase compared with 4 per cent at 30 June 2015.

In 2015–16, the turnover rate of ongoing employees was 11.3 per cent, an increase compared with 7.1 per cent in 2014–15. Table 39 shows the numbers of ongoing and non-ongoing commencements and cessations at 30 June 2016.

Table 39: Number of ongoing and non-ongoing commencements and cessations in 2015–16

Employee commencements Employee cessations

Ongoing Moved within APS: Promoted 6 Moved within APS: Promoted/transferred 46

Moved within APS: Transferred 32

Ongoing engagement of non-ongoing 40 Redundancy 35

Statutory office holder engaged 1 Left APS: Resigned or retired 128

Joined APS: Engaged 66 Death 2

End statutory appointment 1

Dismissal 2

Total commencements 145 Total cessations 214

Non-ongoing Total commencements 216 Total cessations1 142

All employees All commencements 361 All cessations 356

APS = Australian Public Service1 Includes cessation of non-ongoing employees to enable ongoing engagement.

Workplace absenceThe APSC changed the definition of workplace absence effective from 2014–15; it now excludes unauthorised and workers compensation leave. Table 40 shows the number of days of workplace absence for the past five years under both the old and the new definitions.

In 2015–16, the rate of workplace absence for DVA employees Australia-wide was 14.7 days per full-time equivalent employee.

Table 40: Number of days of workplace absence per full-time equivalent employee 2011–12 to 2015–16

2011–12 2012–13 2013–14 2014–15 2015–16

New definition (days) 13.3 12.8 13.0 13.9 14.7

Removed types (days) 1.7 1.3 1.5 1.6 1.0

Old definition (days) 15.0 14.1 14.5 15.5 15.7

Note: Workplace absence includes absences for personal, carer’s and miscellaneous leave.

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ASSETS MANAGEMENT

DVA runs an effective asset management program, registering assets on receipt in the financial management system and conducting an annual stocktake. Asset accounting functions and the management of intangible assets are centrally controlled, while day-to-day management of physical assets is decentralised to regional locations.

AccommodationIn 2015–16, DVA continued to review its accommodation requirements across Australia, aiming to minimise the expense and extent of leased accommodation while maintaining quality and service delivery capability.

As a part of the portfolio management process, the Department facilitated the end of lease arrangements for a number of sites across the country, including Veterans’ Access Network sites. Three network shopfronts were closed during the year:

�� Toowoomba, Queensland, on 30 June 2015

�� Tweed Heads, Queensland, on 7 August 2015

�� Geelong, Victoria, on 7 August 2015.

The Department continued to provide alternative ways for clients to access services in these areas through DHS and DVA outreach services.

After DVA’s lease of Lovett Tower expired, the Department, under a memorandum of understanding arrangement, co-located with the Australian Taxation Office in shared office accommodation in Canberra’s central business district.

PURCHASING

The Contract Advisory Unit provides services in support of procurement and contracting activities in accordance with the Commonwealth Procurement Framework. The unit provides specialist business advice to the Repatriation Commission, the MRCC and all areas of the Department engaged in procurement. Its services include developing contract templates, providing better practice guides on all aspects of the procurement cycle, providing contract management advice, and ensuring compliance with mandatory reporting requirements.

The Department is subject to internal and external (Australian National Audit Office) audits of compliance with the Commonwealth Procurement Framework. The Contract Advisory Unit works with the auditors to improve the Department’s performance against the core principles of Commonwealth procurement.

CONSULTANTS

The Department engages consultants where it lacks specialist expertise or when independent research, review or assessment is required. DVA’s selection processes:

�� observe government and departmental procurement policies

�� are publicly defensible, promoting fair competition and effective service

�� are based on predetermined selection criteria

�� realise best value for money.

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During 2015–16, 52 new consultancy contracts were entered into involving total actual expenditure of $6.70 million. In addition, 28 ongoing consultancy contracts were active during 2015–16, involving total actual expenditure of $3.31 million.

Table 41 shows the total expenditure on consultancies over the past three years.

Table 41: Total expenditure on consultancies 2013–14 to 2015–16

2013–14 2014–15 2015–16

Expenditure ($m) 6.97 11.03 10.01

Note: Total comprises expenditure paid in departmental and administered programs during the reporting period, inclusive of applicable GST.

AusTenderAnnual reports contain information about actual expenditure on contracts for consultancies. Information on the estimated value of contracts and consultancies is available on the AusTender website, www.tenders.gov.au.

Exempt contracts DVA did not seek any exemptions from gazettal under the FOI Act in 2015–16.

ANAO access clausesAll DVA contractual arrangements have in place a facility for the Auditor-General and accountability personnel to access contractual material, including at the contractor’s premises.

PROCUREMENT INITIATIVES TO SUPPORT SMALL BUSINESS

The Department supports small business participation in the Commonwealth Government procurement market. Participation statistics for small and medium-sized enterprises and small enterprises are available on the Department of Finance’s website at www.finance.gov.au/procurement/statistics-on-commonwealth-purchasing-contracts.

The Department recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website, www.treasury.gov.au.

The Indigenous Procurement Policy requires agencies to direct a percentage of business to Indigenous suppliers. The target for DVA in 2015–16 was four contracts, which it exceeded by letting seven contracts in the period.

DVA’s procurement practices support small and medium-sized enterprises, consistent with paragraph 5.4 of the Commonwealth Procurement Rules. The Department:

�� uses the Commonwealth Contracting Suite for low-risk procurements valued under $200,000

�� strives to communicate in clear, simple language and presents information in an accessible format, in all documents

�� uses electronic systems to facilitate on-time payment performance, including the use of payment cards.

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DISABILITY REPORTING MECHANISMS

Since 1994, Commonwealth departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007–08, reporting on the employer role was transferred to the APSC’s State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010–11, departments and agencies have no longer been required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010–2020, which sets out a 10-year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high-level two-yearly report will track progress against each of the six outcome areas of the strategy and present a picture of how people with disability are faring.

The first of these progress reports was presented to the Council of Australian Governments in December 2015. The report provides an overview of the range of actions and activities undertaken across all levels of government that advanced the objectives of the strategy between 2011 and 2014. The report also includes analysis of draft trend indicator data.

A copy of the progress report is available on the Department of Social Services website, www.dss.gov.au.

GRANTS

Information on grants awarded by DVA during the period 1 July 2015 to 30 June 2016 is available at www.dva.gov.au/consultation-and-grants.

Grants administered by the Department are set out in Table 42.

Table 42: Grant programs administered by DVA in 2015–16

Grant program Purpose

PBS program

Building Excellence in Support and Training (BEST) program

The BEST program is designed to support ex-service organisations’ pension and welfare practitioners and advocates. It assists by offering grants to help these organisations and practitioners provide advice and assistance to the veteran and defence communities.

A BEST grant is intended to be a contribution towards an organisation’s costs in providing services to the veteran and defence communities. It is not to offset all costs, and grant recipients are expected to provide in-kind or other support to their pension, welfare and advocacy officers.

There is one BEST funding round each year. Funding is for the period of the next financial year. Payment of grants is subject to previous funding being acquitted as required.

1.4

Veteran and Community Grants program

Veteran and Community Grants are available to organisations for projects that benefit veterans, their partners, widows/widowers, carers, dependants and other members of the ex-service community. Projects may also benefit the wider community.

The program supports activities and services that sustain and/or enhance health and wellbeing. It provides seeding funds for projects that support a healthy, quality lifestyle for members of the veteran community and assist them to remain living independently in their own homes. It also provides funding for initiatives that reduce social isolation, support carers and improve access to community services.

Funding rounds occur on an ongoing, rolling basis. When sufficient applications are received or a two-month period has elapsed, a funding round will be processed for the Minister’s decision.

2.4

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Grant program Purpose

PBS program

Grants-in-Aid program

The Grants-in-Aid program forms part of the Government’s commitment to support the role of national ex-service organisations, which provide coordinating and representational support within the veteran and defence community.

The maximum annual grant to any national organisation is $10,000 and is subject to accountability requirements. Depending on the demand for funding and the prioritisation of all applications, part funding only may be offered.

There is one funding round per year. Rounds open around March each year and approved grants are paid early in the following financial year.

2.4

Saluting Their Service program

The Saluting Their Service grants program is designed to preserve our wartime heritage and to involve communities in a wide range of activities and projects that highlight the service and sacrifice of Australia’s servicemen and servicewomen in wars, conflicts and peace operations.

Three categories of grants were available under the program in 2015–16:

• Community Commemorative Grants—grants of up to $4,000 for community-based commemorative projects and activities

• Major Commemorative Grants—grants for commemorative projects and activities that are significant from a national, state or territory perspective

• Vietnam War Commemorative Grants—grants of between $4,000 and $20,000 for community-based projects and activities that directly commemorate any aspect of the Vietnam War, and that focus on camaraderie.

3.1

Overseas Privately Constructed Memorial Restoration Program

The program assists Australian veterans and other individuals in restoring and preserving military unit and battle memorials that were privately constructed overseas.

3.1

PBS = Portfolio Budget Statements

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SOCIAL JUSTICE AND EQUITY

Indigenous Veterans’ StrategyThrough the Indigenous Veterans’ Strategy, DVA identifies Indigenous veterans and their dependants to ensure they know of and can access DVA services and benefits. The strategy also raises awareness about their contribution to the nation by commemorating their war service.

The Department developed the strategy with an understanding of the cultural impediments that may prevent Indigenous veterans from accessing their DVA entitlements, and with the knowledge of the diversity of Aboriginal and Torres Strait Islander cultures.

In 2015–16, DVA continued to provide services and programs under the strategy, to improve its service delivery to the Indigenous veteran community and improve the cultural knowledge of DVA staff.

Community-related activities during the year included:

�� supporting the Indigenous Veterans’ Liaison Officer network, which provides appropriate support services to Indigenous veterans

�� supporting Indigenous-specific commemorations

�� promoting DVA benefits and entitlements throughout Indigenous communities

�� developing partnerships with Indigenous communities and key government and non-government stakeholders

�� developing Indigenous-specific promotional material

�� attending local and national Indigenous community events, forums and conferences

�� participating in national Indigenous networks.

Activities within the Department included:

�� delivering cultural awareness training for DVA staff

�� developing a new DVA Reconciliation Action Plan

�� developing a new DVA Indigenous Employment Strategy

�� participating in the APS Indigenous Graduate Program

�� supporting Indigenous staff participation in the APS Indigenous Employees Staff Network

�� participating in the Jawun Indigenous APS Community Secondment Program (executive level employees).

Research projectDVA is a major partner in a jointly funded research project led by Professor Mick Dodson and Professor Ann McGrath at the Australian National University, Serving Our Country: a history of Aboriginal and Torres Strait Islander people in the defence of Australia.

The four-year project, launched in March 2014, aims to identify and record the stories of Indigenous veterans. As one of the project partners, DVA is contributing $400,000 in cash as well as up to $100,000 worth of in-kind support.

In 2015–16, the research team continued to conduct a number of state and territory community meetings and yarning circles inviting Indigenous veterans and their families to share and record their stories. The team will collate the information and finalise the project in late 2017 and report on its outcomes and publications.

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Indigenous Champion projectDVA continued working in partnership with the National Rugby League to promote recognition of Indigenous veterans and help to ensure that veterans are aware of their service-related entitlements.

As part of the initiative, retired Gold Coast Titans player Preston Campbell was appointed as an Indigenous Champion and has been raising awareness about the valued role of Indigenous servicemen and servicewomen.

In 2015–16, Mr Campbell attended a number of community and commemorative events and met with Indigenous veterans and other members of Indigenous communities. Mr Campbell heard the stories and history of Indigenous veterans and encouraged other Indigenous veterans to share their stories and history with their families and communities.

CeremoniesIn 2015–16, DVA continued its support for national and international ceremonies to honour the service and sacrifice of all veterans, including the contributions made by Aboriginal and Torres Strait Islander servicemen and servicewomen in wars, conflicts and peacetime operations.

The Department also supported Indigenous-specific commemorative events during National Reconciliation Week 2016, which included:

�� the Western Australian Indigenous Veterans Ceremony in Perth

�� the Victorian Aboriginal Remembrance Service in Melbourne at the Shrine of Remembrance

�� the NSW Indigenous Veterans Ceremony in Sydney at the ANZAC Memorial in Hyde Park

�� the Queensland Indigenous Veterans Ceremony in Brisbane at the Shrine of Remembrance.

DVA continued to observe National NAIDOC Week by supporting local and national events, including the Australian War Memorial’s 2015 NAIDOC Week ceremony.

LEGAL SERVICES

DVA’s Legal Services, Assurance and Deregulation Branch provides a range of legal and assurance services to the Minister, the Repatriation Commission, the MRCC and other areas of the Veterans’ Affairs portfolio (for example, the Australian War Memorial).

Legislation programDuring 2015–16, the branch supported the development and passage through Parliament of several Acts relating to the portfolio.

Veterans’ Affairs Legislation Amendment (2015 Budget Measures) Act 2015The Act included amendments that enhanced the operation of the Veterans’ Vocational Rehabilitation Scheme and amended the regulation-making power under the Defence Act 1903 to authorise the repatriation of the remains of veterans’ dependants who were interred in the Terendak Military Cemetery in Malaysia. The amendment to the regulation-making power enabled the making of the Defence Force Amendment (Repatriation of Bodies from Malaysia) Regulation 2016.

Social Services Legislation Amendment (Cost of Living Concession) Act 2015The Act amended the VEA to exclude the cost of living concession payment made by the South Australian Government from being assessed as income under the veterans’ affairs income test.

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Defence Legislation Amendment (First Principles) Act 2015The Act provides for the full command of the Australian Defence Force (ADF) to be given to the Chief of the Defence Force. It also made some minor consequential amendments to the MRCA.

Defence Legislation Amendment (Superannuation and ADF Cover) Act 2015The Act was part of a package of bills to establish new superannuation arrangements for people joining the ADF on or after 1 July 2016 and included some minor consequential amendments to the MRCA.

Other legislationMinor amendments were made to portfolio-related legislation by the Acts and Instruments (Framework Reform) (Consequential Amendments) Act 2015, Omnibus Repeal Day (Autumn 2015) Act 2016, Statute Law Revision Bill (No. 2) Act 2015 and Statute Law Revision Act (No. 1) 2016.

As part of the ongoing sunset program for legislative instruments, the Department reviewed approximately 46 legislative instruments that were due to sunset on 1 October 2015 and 1 April 2016. As a result of those reviews, approximately 35 instruments (not including instruments relating to Statements of Principles) were remade by the Repatriation Commission, the MRCC or the Minister, as required.

Legal services expenditureThe following information about legal services expenditure is required to be published under paragraph 11.1(ba) of the Legal Services Directions 2005 issued by the Attorney-General under section 55ZF of the Judiciary Act 1903.

In 2015–16, DVA spent a total of $10.62 million on legal services, compared to $10.04 million in 2014–15. Expenditure included external and internal legal services.

External legal servicesIn 2015–16, DVA spent $8.16 million on external legal services, compared to $7.22 million in 2014–15. Included were disbursements and the engagement of counsel who advised on litigation, procurement, contracting and management issues.

In accordance with Guidance note 8 to the Legal Services Directions, Table 43 shows expenditure on total external legal services and details the number of male and female counsel briefed and the value of this work in 2015–16.

Table 43: External legal services expenditure (GST exclusive) and number of male and female counsel briefed 2015–16

Type Value ($m)

Solicitors 6.606

Counsel Female (24) 0.126

Male (45) 0.393

Total (69) 0.519

Other disbursements1 1.035

Total 8.161

1 Costs incurred for goods and services that are not counsel or professional fees (e.g. filing fees, costs for expert witnesses and costs of administrative tasks such as photocopying).

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Internal legal servicesDVA provides internal legal services in areas such as:

�� legislation administered by the Minister for Veterans’ Affairs

�� management of the Minister’s legislation program

�� drafting of legislative instruments and related documentation

�� legal advice on DVA’s portfolio legislation

�� conduct of all non-military compensation litigation at superior courts for matters involving claims under the VEA.

The VRB also has internal staff who provide services of a legal nature.

In 2015–16, the total direct salary and overhead cost for DVA legal services was $2.46 million, compared to $2.82 million in 2014–15.

SUPPORT SERVICES

Client contactThe traditional access points through the Veterans’ Access Network (VAN) offer flexibility in nationally managing telephone calls and face-to-face visits. The national network ensures the provision of continued and uninterrupted service to the veteran community should any one state or location be affected by a natural disaster, power outage or other unforeseen event.

In 2015–16, the Department continued to review its operations in specific locations and introduced new arrangements with DHS following the closure of three standalone VAN shopfronts. This included new co-location arrangements between DVA and DHS in Victoria, New South Wales and Queensland, providing the same network-type service delivered by DVA staff. An additional Veterans’ Information Service was implemented in Queensland. The service is operated by DVA-trained DHS staff in accordance with the agreed arrangements under the schedule to the memorandum of understanding between DVA and DHS.

Demand for the On Base Advisory Service continued, with 11,008 ADF members using the face-to-face service on base in 2015–16. The service ensures that serving members have access to information about DVA support, entitlements and services directly from DVA staff.

Clients can also contact the Department by mail, telephone or SMS, or online via email or social media. DVA has expanded its social media presence to include Facebook, Flickr, Twitter and YouTube.

Coordinated Client SupportVAN is supplemented by the Coordinated Client Support (CCS) service, which provides more intensive support to clients who have complex circumstances or multiple needs. Since its implementation in February 2016, the CCS service has proven to be an important initiative for DVA clients who are affected by numerous factors which can affect their health and wellbeing.

CCS combines a number of DVA programs into one service, providing a clear pathway for clients to access support through a primary point of contact for the whole the Department. The CCS service is not dependent on the client going through the claims process. Instead, CCS recognises the personal circumstances of each individual client and takes a holistic view to provide a flexible, tailored service to meet their needs.

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Through the CCS model, the Department now provides a tiered level of support to DVA clients. There are three levels of support:

�� Level 1 support is generally provided through the Department’s On Base Advisory Service and VAN for clients who are able to self-manage their interactions with DVA with minimal assistance.

�� Level 2 is targeted at clients with complex and/or multiple needs who require some guided support occasionally or over a short period.

�� Level 3 support is provided to those clients with the most complex circumstances requiring a comprehensive level of support.

CCS provides many benefits for clients, starting with a defined referral entry point: an initial assessment determining the level of support required with a focus on early intervention. CCS coordinators draw upon various stakeholders to assist clients to achieve their goals. This may involve a client’s immediate circle of support, specialist expertise, and community and government services.

The Department does not envisage that all clients accepted into the service will require the coordination service throughout their entire DVA journey. Generally, once the coordinator and the client are satisfied that all the identified needs have been met, and it is evident that the client can self-manage, the client is transitioned to a suitable level of support.

From the implementation of CCS through until 30 June 2016, 297 clients accessed additional support through the service. Overall, feedback from clients who have used the service has been positive, with many noting the value in having someone understand them and help in navigating DVA.

Online servicesDVA provides a range of online services to clients, their nominated representatives, ex-service organisations and service providers, in addition to digital information via websites and apps.

In 2015–16, DVA’s online services were enhanced to improve services related to the lodgement and tracking of claims. Work was also done to fine tune and improve performance to enhance the client experiences relating to lodging claims online, and uploading documents and submitting attachments online.

Major enhancements included the addition of:

�� the ‘Request benefits’ option in the online single claim form, so that clients who have had liability for injury or disease accepted under the Safety, Rehabilitation and Compensation Act 1988 or Military Rehabilitation and Compensation Act 2004 can apply for reassessment or additional benefits

�� the MyAccount Inbox, so that clients can view correspondence and return correspondence to the Department in relation to claims for initial liability, incapacity, permanent impairment, rehabilitation, special rate disability pension or needs assessment

�� the Return to MyGov button, which enables clients who access MyAccount via MyGov to return to MyGov after they have finished using MyAccount.

Access to correspondence via the ESO Portal was also improved, so that ex-service organisations can access and download, save or print certain correspondence for the claims they are representing.

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A chaplain reads the burial service over an Australian who had been mortally wounded at Pozières and died at the casualty clearing station near Bécourt Wood in August 1916. (AWM EZ0064)