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CENTRELINK ANNUAL REVIEW 2000 – 01Comments and requests for further information on this review are welcome and can be sent to:
Ms Jan McCann
Telephone (02) 6212 0023
Fax (02) 6212 0480
Email: [email protected]
Strategic Services Team
Centrelink National Support
Box 7788
Canberra Mail Centre ACT 2610
The Annual Review is a 'short form' overview only. It is designed to give a concise summary of Centrelink's activities and financial position for the year ended 30 June 2001. Both the Annual Report and the Annual Review may be accessed through the Internet at www.centrelink.gov.au
Created in 1997, Centrelink is meeting the challenge to provide the Australian Community with a one-stop-shop for Commonwealth Government services. This review is extracted from the Centrelink 2000-01 Annual Report. It describes our performance in the 2000-01 financial year and details our plans for the future.
FROM OUR CHAIRMANThe end of 2000–01 marks my first year as the Chairman of the Centrelink Board. It has been a busy time marked by a number of very challenging issues.
Those issues include business planning and the long-term goals Centrelink must achieve to meet the evolving needs and expectations of citizens and client agencies.
The Government's Australians Working Together initiative will significantly affect the way Centrelink assists people in the future. Over the next year Centrelink will be working collaboratively with client agencies and the community services sector to ensure that customer service management and coordination will be enabled by suitable systems to support both the Government's vision and the needs of its customers.
This year, in the Centenary of our Federation, we have also celebrated the Centenary of the Australian Public Service (APS). I know that Centrelink staff are proud to serve in the APS and they can be assured their contributions are valued.
The Centenary of our Federation coincided with the winding up of the Council for Aboriginal Reconciliation. I trust, however, this marks a new beginning with an ongoing and enduring commitment to equality and improved outcomes for all Indigenous Australians. During the year, a number of Centrelink staff initiated and drafted a Statement of Commitment to Reconciliation and adopted real and practical initiatives to support that commitment. On 14 December 2000, the Statement was signed jointly by Ms Evelyn Scott, Chairperson of the Council for Aboriginal Reconciliation, Sue Vardon, Centrelink's CEO and Pat Turner, Executive Director, Indigenous Services. As Chairman of the Board I was proud to endorse and support the Statement on behalf of all Board members.
In June this year I was pleased to launch Centrelink's Indigenous Employees' Action Plan in Darwin. The Centrelink plan represents the first tangible step by a major public sector employer to achieving practical reconciliation. I believe this will become an ongoing process within Centrelink.
I would like to take this opportunity to thank my fellow Board members for their valuable contributions, including their work as chairs and members of the various committees of the Board. I also extend my appreciation to Sue Vardon, the leadership team at Centrelink, and the thousands of staff working with our customers, all of whom I know to be truly committed to making a difference.
John Pascoe AM
CHAIRMAN OF THE BOARD
FROM OUR CEO‘We look forward to ongoing collaboration with our client partners in continuing to deliver innovative service solutions that will better position our customers to share in Australia’s exciting future’.
SUE VARDON — CEO
Four years after its creation, Centrelink has evolved into a well regarded business with a reputation for delivering responsive, high quality and cost-effective services. We look forward to ongoing collaboration with our client partners in continuing to deliver innovative service solutions that will better position our customers to share in Australia's exciting future.
While much remains to be done, and plans are in place for further efficiency gains, this year's work has provided a solid platform from which Centrelink can begin to deliver the Government's Australians Working Together initiative.
SUMMARY OF SIGNIFICANT ISSUES, DEVELOPMENTS AND CHALLENGESCentrelink now delivers around 140 products and services on behalf of around 20 Commonwealth and State client agencies to around 6.3 million customers. In addition, there are a growing number of clients in the private and government sectors who avail themselves of our business-to-business services such as the Customer Confirmation Service and Centrepay.
This year has seen the successful launch of 560 Family Assistance Office sites located in Centrelink, Medicare and Australian Taxation Offices across the country. The launches provided a great opportunity for staff to work in partnership with three separate government agencies to promote the new Centrelink service delivery model to customers and the community.
Centrelink has always sought to find innovative ways of improving its customer service, and has taken another step towards achieving its vision of a one- stop-shop for all government services by continuing a partnership with Service Tasmania, the Tasmanian Government's shopfront, in ten rural and regional locations. Customers in seven of these sites can access Commonwealth, State and local government services from the one Service Tasmania shop. In three of these shops, customers can talk to a range of government agencies using videoconferencing facilities.
The Service Tasmania model is the way of the future. Increasingly, citizens want to be able to access services — government and commercial — through a variety of channels: electronic, telephonic, face-to-face and in writing. Maintaining all channels is potentially costly and there are significant benefits to be gained by organisations in pooling resources across and within different levels of government.
The challenges organisations face in achieving this level of multi channel services integration are largely ones of governance. Critically, organisations will need to agree to principles on how information is managed and the extent of flexibility and openness between organisations to allow seamless service delivery. Centrelink will continue to work cooperatively with other Commonwealth and State agencies to explore opportunities for partnerships of this kind.
Making it easier to do business with usCentrepay allows Centrelink customers to voluntarily have regular amounts for expenses such as rent, gas, water, or electricity deducted from their social security payments for remittance direct to service providers. This service has experienced major growth over the year, and this is expected to continue next year with a 50 per cent increase in the client agency base and a doubling of the numbers of customers taking part. Centrelink is committed to this facility as it plays a vital role for many customers in safeguarding them from potential debt, evictions and legal problems.
Remote area servicingCentrelink continued to assist customers in rural and remote areas. In particular, as part of the Sugar Industry Package, Centrelink made payments and provided financial counselling to eligible sugar cane growers and local communities affected by adverse conditions, including flooding and low world sugar prices. Centrelink also delivered grants during the year to flood victims to meet the cost of repairs to buildings and equipment.
In the past 12 months Centrelink further recognised the need of Indigenous communities and opened a small office at Maningrida. Centrelink expects to open similar sites in the coming years and will continue to work with local communities to ensure effective service delivery.
PartnershipsAs part of the Government's budget reforms to assist older Australians and people with disabilities to retain their independence, Centrelink was awarded a contract to operate five of more than 60 new Commonwealth Carelink Centres in Western Australia for the Department of Health and Aged Care. The program offers a unique information and referral service for older Australians and people with disabilities.
Together with the Department of Employment, Workplace Relations and Small Business (DEWRSB) and other Job Network members, Centrelink conducted two pilot programs designed to build better working relationships and develop improved services for job seekers. We hope that these programs will be a continuing feature of our operations.
Assurance issuesDuring the year the Australian National Audit Office (ANAO) undertook a performance audit of Centrelink's processing of new Age Pension claims. In analysing the ANAO's findings, it became clear that there are significant issues about how accuracy is defined and how, and at which point of the assessment process, it is measured and reported. The validity of the accuracy testing tool used by our staff to check each other's work was also the subject of scrutiny. The ANAO concluded that accuracy results, as reported to the Department of Family and Community Services (FaCS), were not reliable.
As a result of this audit, Centrelink and FaCS have agreed in the Business Partnership Agreement 2001-04 to a joint review of the Business Assurance Framework. This is a fundamental and far-reaching review that will affect all quality control and assurance processes for all the payments Centrelink administers. It will involve a clear agreement on what constitutes an accurate outcome, how it is measured and when it is measured. It will also provide for some form of sampling for accuracy, which
will be independent of Centrelink, to enable verification of the robustness of the new assurance arrangements.
The audit also highlighted the complexity of the processes that staff must follow. It questioned the extent to which some of these were warranted in terms of the balance between the risks they address and the costs they incur. These issues are being considered by the Rules Simplification Taskforce conducted jointly with FaCS.
These actions being taken by Centrelink will result in greater alignment between the reported measures of accuracy and the outcomes required by the Government and the Parliament. This will remove a potential cause of concern that total outlays have not been correctly expended.
Skilling people for their jobsA key achievement in supporting our staff this year was the opening of the Centrelink Virtual College in April 2001. The College was established to ensure our staff have access to quality learning to enhance work performance and create career paths by helping them gain nationally recognised qualifications.
Staff satisfactionOur people are Centrelink's greatest asset. As an organisation we have invested and will continue to invest significantly in them. In this way we ensure that we continue to attract and retain the best possible people. There is a direct relationship between the satisfaction of staff with their jobs, the environment in which they work and the way our services are viewed by our customers. For these reasons I am very pleased to report that staff approval against each of the 14 measures we have in place has increased and that in our June 2001 survey more than 70 per cent of our staff rated their job satisfaction as good or better.
Helping the communityIn the International Year of Volunteers, Centrelink officially recognised and acknowledged the outstanding contributions of many of our staff in undertaking voluntary work in their local communities. Centrelink strongly supports the ongoing commitment of its staff to voluntary work this year and beyond.
TechnologyOn 30 January 2001, following the release of the Humphry report, the Centrelink Board announced Centrelink would not continue with the existing IT Infrastructure Outsourcing tender process. As a result, Centrelink is currently developing a strategic sourcing assessment to determine how it will implement the Government's policy, with a focus on value and risk.
Centrelink has seen continued progress in its online capability through the development of new applications to support electronic service delivery and through the further integration of existing systems. This year we launched a new web site based on the life events model and designed to enable customers to more easily find needed products and services. Our challenge for the future is to further enhance our systems to prepare for our new role in service delivery, in line with the Australians Working Together initiative.
OVERVIEW OF PERFORMANCE AND FINANCIAL RESULTSThis review gives an account of our achievements and challenges against our outcome, output and goals measured by the Balanced Scorecard. I am pleased to report strong results in most measures, including that of staff satisfaction, which we targeted for specific improvement last year.
While relationships with our client agencies continued to improve this year, Centrelink again encountered significant challenges in striving to meet some key performance indicators (KPIs). This applies particularly to the indicators in the Business Partnership Agreement (BPA) with DEWRSB.
There were a variety of reasons for this less than optimal result — some outside Centrelink's control — and many lessons were learned about the setting of targets and the management of achievement of those targets.
As a result of these lessons, we have developed a set of core principles for negotiations with all client agencies. These are:
all KPIs must be achievable, within Centrelink's control and able to be measured;
performance pay that affects core funding will not be part of any agreement; and
no additional KPIs or increased benchmarks will be agreed to without appropriate additional funding.
One of the success stories in 2000-01 has been the overall improvement in customer satisfaction with Centrelink's people, services and information. We have received our highest ever customer ratings for our Customer Service Centres and Call Centres. On top of this, our Call Centres have again been benchmarked as best practice within the industry.
Financial resultsCentrelink produced a sound financial result for the reporting year with its Annual Financial Statements again being signed by the Auditor-General without qualification. We achieved:
a significantly improved operating result with a surplus of $26 million;
the return to Government of all required efficiency dividends totalling $225.2 million;
a positive cash position of $124 million; and
a positive net equity position.
To improve the business and cost efficiency of Centrelink services and government outcomes, Centrelink continued work on strategic cost management, a new funding model and an output pricing review. The results of these projects should be reflected in our performance in 2002-03.
…Centrelink will continue to improve its operations by reducing indirect and support costs, improving productivity, enhancing the quality of services, and increasing the responsiveness with which it meets new Government and client agency demand.
THE NEXT 12 MONTHS AND BEYONDDuring the new year Centrelink will focus on addressing the expectations of Government, client agencies and customers.
The theme for the Business Plan 2001-04 is Delivering Today and Transforming Tomorrow. The Business Plan identifies eight key objectives and provides the context for making decisions about projects and other activities, with a strong focus on positioning Centrelink to implement the Government's Australians Working Together initiative. The Business Plan will be used throughout the organisation as the basis for detailed Business Improvement Plans.
As new Government initiatives are introduced, Centrelink will maintain and improve its core service responsibilities and integrate new policy initiatives into the changing customer service offer from Government. As Centrelink's business grows in complexity, both in terms of the number of programs and
payments it delivers and in the delivery channels it makes available, we will be committed to strong leadership and relationship management across Centrelink.
The Centrelink life events model of service delivery will be consolidated and offer customers a new and wider range of options for accessing services and meeting their needs.
Working with Government agencies, Centrelink will be a focus for the Government's online strategy by providing a primary gateway for Australians who wish to access government services. As the face of government, Centrelink's vast physical and electronic network will help government agencies and community organisations extend and integrate their reach into rural, remote and outer metropolitan areas.
The effective delivery of programs and services in rural, remote and Indigenous communities will continue to be a key priority, with particular focus on creatively using new and emerging technologies.
Despite considerable improvement this year, people management will again be a priority target for substantial effort at all levels throughout Centrelink to ensure that staff are properly supported in an environment of continuous change.
During the new year, Centrelink will continue to improve its operations by reducing indirect and support costs, improving productivity, enhancing the quality of services, and increasing the responsiveness with which it meets new Government and client agency demand. Centrelink will continue to deliver efficiency dividends to Government and the Australian community. While we have been able to demonstrate excellence in specific areas, our challenge for the future is to exceed expectations across all activities at all times. We will need to further refine and possibly reduce the present number of KPIs to better measure performance in an environment of continuous improvement and the pursuit of excellence.
FAREWELL TO ROSS DIVETT, PSMOn 1 May 2001, Deputy CEO Ross Divett lost his battle with mesothelioma. Ross's courage, humour and determination during his illness were an inspiration to all his colleagues and many friends at Centrelink. Ross was in many ways the architect of Centrelink, and his contributions were recognised by the award of the Public Service Medal in the 2000 Queen's Birthday Honours List. To honour Ross's memory, Centrelink staff are establishing the Ross Divett Foundation as a trust through which staff can contribute financially to charities. An annual award for Service Improvement has also been established in Ross's memory.
THANK YOUI thank our client agencies for their support and feedback. I also thank members of the Board for their contributions and continued support throughout the year. Most of all, I want to particularly acknowledge the hard work of our people in embracing the year's challenges with commitment and professionalism.
Centrelink will continue to make a difference to the people of Australia by delivering the Government's social policy agenda at increasing levels of customer service and cost efficiency. We intend to exceed the Government's expectations of our organisation.
Sue Vardon
CHIEF EXECUTIVE OFFICER
CORPORATE OVERVIEW…Centrelink has evolved into a well regarded business with a reputation for delivering responsive, high quality and cost-effective services.
BUSINESS ARRANGEMENTSCentrelink is a statutory authority within the Family and Community Services portfolio. Other agencies in the portfolio are FaCS, the Child Support Agency, the Commonwealth Rehabilitation Service Australia, the Social Security Appeals Tribunal and the Australian Institute of Family Studies.
Purchaser/provider arrangementsCentrelink operates under a purchaser/provider framework where policy departments and agencies enter into BPAs or similar arrangements in order to purchase our services.
The majority of Centrelink's revenue is provided through its BPAs with purchaser agencies, whereby funds are appropriated to the purchaser agencies and paid to Centrelink in return for specified services.
Outcome and outputCentrelink has one Government directed outcome: effective delivery of Commonwealth services to eligible customers. The outcome is supported by one output: efficient delivery of Commonwealth services to eligible customers.
This outcome and output reflect Centrelink's role in delivering specified outputs on behalf of client agencies, which are outlined in detail in BPAs.
OUR PURPOSECentrelink was created to provide exceptional service to the community by linking Australian government services and achieving best practice in service delivery.
OUR VISIONCentrelink will make a difference to the Australian community through responsive, high quality government services and opportunities, and give value for money.
OUR MISSIONOur mission states the scope of our unique business that sets us apart from other organisations and exhibits our commitment to our stakeholders.
Centrelink will build a stronger community by:
providing opportunities for individuals and families during transitional periods in their lives;
delivering innovative, cost effective and personalized services for individuals, their families and community groups via the one-stop-shop;
being committed to quality;
making best use of available dollars;
listening to and enacting the community’s ideas for better service; and
building a quality relationship with customers.
OUR GOALSTo achieve our mission, we have set ourselves six long-term goals. These goals are:
Client PartnershipsTo build partnerships with client agencies that deliver the required results and provide value for money.
Customer and CommunityTo increase customer and community involvement and satisfaction with services.
Centrelink PeopleTo create an environment where Centrelink's people give value to customers, client agencies and the community through their skills and commitment to service.
Cost-EfficiencyTo manage our business efficiently and return a dividend to Government.
InnovationTo provide innovative and personalised solutions, consistent with government policy.
Best PracticeTo be first choice and benchmarked as the best practice in service delivery.
Centrelink's corporate goals provide the basis for developing strategies to achieve our outcome and output.
FIGURE 1: OUR SERVICES
Centrelink delivers around 140 products and services on behalf of its 20 client agencies, thereby contributing to the social and economic outcomes set by Government.
The full range of products and services provided by Centrelink is outlined below.
Note: Numbers in brackets relate to client agencies’ respective outputs as outlined in 2000–01 Portfolio Budget Statements.
EMPLOYMENT
FaCSNewstart Allowance (Output Group 3.1)
Mature Age Allowance (Output Group 3.1)
Partner Allowance (Output Group 3.1)
Widow Allowance (Output Group 3.1)
Employment Entry Payment (Output Group 3.1)
Education Entry Payment (Output Group 3.1)
Mutual Obligation (Output Group 3.1) (DEWRSB 1.2.8)
Centrelink Employer Contact (Output Group 3.1)
Special Employment Advance (Output Group 3.1)
Advance Payments (Output Group 3.1)
Community Development Employment Project Participant
Supplement (Output Group 3.1)
Preparing for Work Agreements (Output Group 3.1) (joint with DEWRSB)
DEWRSBJob Seeker Registration (Output 1.2.1)
Application of the Job Seeker Classification Instrument (Output 1.2.1)
Enrolment for Job Matching Services (Output 1.2.1)
Referral to Job Search Training (Output 1.2.1)
Referral to Intensive Assistance (Output 1.2.1)
Referral to New Enterprise Incentive Scheme (Output 1.2.1)
Referral to Self Employment Development Providers (Output 1.2.1)
Special Needs Assessment (Output 1.2.1)
Issue Wage Assistance Cards (Output 1.2.9)
Referral to Work for the Dole (Output 1.2.8)
Return to Work Program (Output 1.2.10)
Maintenance of Employment Self Help Facilities (Output 1.2.3)
Occupational Psychologists (Output 1.2.2)
Community Support Program (Output 1.2.5)
Indigenous Employment Program (Output 1.2.9)
DETYAPromotion of New Apprenticeships (Output Group 2.2)
Referral to New Apprenticeships Access Programme (Output Group 2.2)
Referral to Advanced English for Migrants Programme (Output Group 2.3)
Referral to Literacy and Numeracy Programme (Output Group 2.3)
Referral to National Office of Overseas Skills Recognition Courses (Output Group 3.2)
YOUTH & STUDENTS
FaCSYouth Allowance (Output Group 1.2)
Austudy Payment (Output Group 1.2)
Pensioner Education Supplement (Output Group 3.1)
Student Financial Supplement Scheme (Output Group 1.2)
Reconnect Program (Output Group 1.2)
Fares Allowance (Output Group 1.2)
Youth and Student Line for Youth Allowance and Austudy Payment Enquiries
Parent Liaison Service (Output Group 1.2)
DETYAABSTUDY (including Living Allowance and Incidental Allowance) (Output Groups 1.2 and 2.1)
Student Financial Supplement (Loans) Scheme for ABSTUDY customers (Output Group 2.1)
Assistance for Isolated Children (including Distance Education Allowance, Second Home Allowance and Board & Additional Board Allowance) (Output Group 1.2)
ABSTUDY Pensioner Education Supplement (Output Groups 1.2 and 2.1)
Referral to Job Pathways Programme (Output Group 2.3)
Referral to Job Placement, Employment and Training (Output Group 2.3)
Referral to Young Offenders' Pilot Programme (Output Group 2.3)
Career Information Centres (Output Group 2.3)
Career Counselling (Output Group 2.3)
Referral to Green Corps (Output Group 2.4)
RETIREMENT
FaCSAge Pension (Output Group 3.4)
Wife Pension (Output Group 3.4)
Widow Allowance (Output Group 3.1)
Widow B Pension (Output Group 3.4)
Pension Loans Scheme (Output Group 3.4)
Pension Bonus Scheme (Output Group 3.4)
Financial Information Service (Output Group 3.4)
Commonwealth Seniors Health Card (Output Group 2.2)
Pension Concession Card* (Output Group 2.2)
Pharmaceutical Allowance* (Output Group 2.2)
Telephone Allowance* (Output Group 2.2)
Bereavement Payment* (Output Group 2.2)
Nominee Arrangements*
* Managed by Retirement Community Segment for all customers.
HealthIncome Assessment for Residential Care Fees (Administered Item 3)
DVAVeterans' Information and Community Support Services in selected sites (Output 4.1)
War Widows Pension (Output 1.2)
FAMILIES & CHILDREN
FaCSFamily Tax Benefit (parts A&B) (Output Group 1.1)
Maternity Allowance (Output Group 1.1)
Maternity Immunisation Allowance (Output Group 1.1)
Double Orphan Pension (Output Group 1.1)
Child Support registrations (Output Group 1.3)
Child Care Benefit (Output Group 1.4)
Family Adjustment Payment (Output Group 1.1)
Parenting Payment (single and partnered) (Output Group 3.1)
Jobs, Education and Training (Output Group 3.1)
DISABILITY & CARERS
FaCSDisability Support Pension (Output Group 3.2)
Wife Pension (Output Group 3.2)
Newstart Allowance (Incapacitated) (Output Group 3.1)
Youth Allowance (Incapacitated) (Output Group 1.2)
Sickness Allowance (Output Group 3.2)
Mobility Allowance (Output Group 3.2)
Disability Services (Output Group 3.2)
Disability Employment Services (Output Group 3.2)
Carer Payment (Output Group 3.3)
Carer Allowance (Output Group 3.3)
DEWRSBEmployment Services for Special Groups (People with Disabilities) (Output 1.2.5)
DETYADisabled Apprentice Wage Subsidy Programme (Output 2.2)
HealthCommonwealth Carelink Program (Outcome 3, Administered Item 2)
Hearing Services (Outcome 6, Administered Item 1)
RURAL & HOUSING
FaCSRemote Area Allowance (Output Group 2.1)
Rent Assistance (Output Group 2.1)
Retirement Assistance for Farmers (Output Group 3.4)
AFFA0Exceptional Circumstances Relief Payments (Output 1)
Farm Help (Output 1)
Dairy Exit Program (Output 1)
Ex-Gratia Payments for Farmers (Output 1)
Sugar Industry Assistance Package (Output 1)*
Flood Relief Package (Output 1)
* in conjunction with Finance
FinanceEx-Gratia Payments for Farmers (Output 2.1.3)*
* in conjunction with AFFA
DoTRSRural Transaction Centres (Administered Program 1.1)
Commonwealth Flood Assistance Package — Business Grants (Administered Program 1.1)
Other services
Rural Agents
WA Telecentres
MULTICULTURAL SERVICES
FaCSMulticultural Service Officer Program Centrelink Multilingual Call Interpreter and Translation Services Special Benefit* (Output Group 3.1)
Crisis Payment* (Output Group 3.1)
* Managed by Multicultural Community Segment for all customers.
DIMAAssurance of Support (Output 1.1)
Pilot Work Rights Information Line (Output 1.3)
INDIGENOUS SERVICESIndigenous Service Officers (community development)
Indigenous Customer Service Officers (customer contact)
Community Agents
Interpreter Services
Indigenous Service Units
Indigenous Call Centres
Indigenous Employment Outreach Officers
Remote Visiting Teams
SOCIAL WORK SERVICESSocial Work Services for customers with difficult personal and family issues
Domestic and Family Violence Policy and Procedures Child Support exemptions
Assessment of Youth Allowance for young people in situations of extreme family breakdown
Assessment of Crisis Payment for people leaving situations of domestic violence
INTERNATIONAL SERVICESPortability of payments
International agreements
Foreign pension access and assessment
OTHER SERVICESCentrelink Community Officers and other assistance for homeless customers
Centrepay
Customer Confirmation Service
AECElectoral Roll data update (Output 1.1.2)
AGDFamily Law Hotline (Output1.3)
ATOIndigenous Tax Time program (Output 1.1.1)
DoCITAGovernment Information Centre (Output 2.2)
FaCSHealth Care and other Customer Concessions (Output Group 2.2) Corporate Services
DFATAustralian Passport Information Service Call Centre (Output 2.1.2)
SHARent Deduction Scheme
TSGService Tasmania
DoTRSBass Strait Passenger Vehicle Equalisation Scheme (Administered Program 1.1)
Tasmanian Freight Equalisation Scheme (Administered Program 2.1)
FIGURE 2: SPAN OF THE CENTRELINK SERVICE DELIVERY NETWORK
CLIENT AGENCIES Australian Electoral Commission
Dept of Agriculture, Fisheries and Forestry— Australia
Attorney General's Department
Australian Dairy Corporation
Australian Taxation Office
Child Support Agency
Dairy Adjustment Authority
Dept of Communications, Information Technology and the Arts
Dept of Education, Training and Youth Affairs
Dept of Employment, Workplace Relations and Small Business
Dept of Family and Community Services . ,
Dept of Finance and Administration 1
Dept of Foreign Affairs and Trade
Dept of Health and Aged Care
Dept of Immigration and Multicultural Affairs
New South Wales State Government
State and Territory Housing Authorities
Tasmanian State Government
Dept of Transport and Regional Services
Dept of Veterans' Affairs
OUR BUSINESS 20 client agencies
6.3 million customers
9.3 million individual entitlements
5.2 million new claims
$51.7 billion in payments
97.3 million letters
22.5 million successful telephone calls
9 million Internet web page views
OUR NETWORKOver 1000 service delivery points Australia wide including:
312 Customer Service Centres (incorporating FAO offices)
28 Call Centres
33 Separate Specialist Services
15 Area Support Offices
1 National Support Office
15 Veteran Information Services
16 Rural Transaction Centres
Around 70 Access Points
7 Service Tasmania Centres
260 Community Agents
Rural Visiting Services as required
24 356 staff
FIGURE 3: CENTRELINK ORGANISATIONAL STRUCTURE AS AT 30 JUNE 2001
CORPORATE GOVERNANCECentrelink’s highly skilled Board of Management has the collective experience that provides the vision to drive our organisation in achieving excellence.
CORPORATE GOVERNANCE FRAMEWORKCentrelink operates under the direction of a Board of Management, while internally it is governed by a Guiding Coalition. There are clearly designated roles for the Board and the Guiding Coalition.
Guiding CoalitionThe Guiding Coalition is Centrelink's internal corporate Board. It comprises all the SES officers of Centrelink and meets every six to eight weeks to discuss strategic issues of importance as well as make decisions about Centrelink's management and business directions.
Meetings are held in various locations around Australia, most in capital cities but at least one in a major country area. This provides a valuable opportunity for National and Area Managers to visit a range of offices throughout the year and to have face-to-face contact with many Centrelink staff.
Management committeesThe Business Improvement Committee assists the Guiding Coalition in its responsibilities. It has the primary role of ensuring the most effective and efficient use of project and National Support maintenance program funds within Centrelink.
Board of Management
Board structureThe Board of Centrelink comprises:
the Chairman, Mr John Pascoe, AM;
three non-Executive directors: Mr Don Fraser, Ms Chris Gillies and Mr John Thame;
principal officers of the Commonwealth: Dr David Rosalky, Secretary FaCS, and Dr Peter Shergold AM, Secretary DEWRSB; and
the CEO, Ms Sue Vardon (the sole Executive Board director).
Board committeesThree Board Committees assist the Board in its work.
The Audit Committee ensures that Centrelink operates with proper financial management and internal controls.
The Information and Technology (I&T) Committee provides advice and direction on strategic I&T issues.
The Quality Committee is responsible for assuring the Board that Centrelink is delivering services that will see it remain as the 'first choice' for Government and customers and eventually be benchmarked as best practice in service delivery.
FINANCIAL SUMMARYFINANCESOperating resultCentrelink generated an operating surplus of $26 million for 2000-01, which represents 1.5 per cent of net annual revenue. This result was achieved after taking into account an efficiency dividend of $225.2 million that was returned to Government via a reduced revenue base.
TABLE 1: Net operating result 2000-01 and 1999-2000
2000-01 1999-2000 a
$('000) $('000)
Revenue from Government 5 333 4 746
Revenue from independent sources 1 767 964 1 676 419
Revenue (net of dividend) 1 773 297 1 681 165
Revenue (before dividend) 1 998 497 1 891 965
Expenses -1 747 289 -1 686 100
Operating Result before dividend 251 208 205 865
Efficiency Dividend -225 200 -210 800
Net Operating Result 26 008 -4 935
a 1999-2000 comparative figures have been adjusted to conform with the revised presentation of the 2000-01 Annual Financial Statements.
REVENUEFaCS was the major source of revenue, providing 90.5 per cent of Centrelink's overall revenue. Centrelink's operating revenue is primarily derived from those client agencies with whom Centrelink negotiates and agrees BPAs. Centrelink is paid in accordance with arrangements specified in the BPAs for the delivery of services.
Prescribed efficiency dividendIn 2000-01, as in previous years, Centrelink successfully delivered government efficiency dividends in the form of a reduction in revenue paid to Centrelink by client agencies. Centrelink is subject to three separate dividends:
the standard efficiency dividend of 1 per cent of total net running costs;
the special efficiency dividend, applied in recognition of Centrelink's ability to remove duplication and streamline government services previously provided by a range of government departments; and
the IT infrastructure efficiency dividend.
Since its inception Centrelink has returned a total of $586.2 million in efficiency dividends to Government.
TABLE 2: Centrelink revenue 2000-01
Source of revenue $(‘000)
FaCS 1 602 787
DEWRSB 109 664
DETYA 14 095
AFFA 10 798
Health 2 747
Other revenue 33 206
Total revenuea 1 773 297
a Represents all revenue received, and includes revenue specified within the BPAs and revenue for services delivered outside those Agreements. Only the top five revenue sources from client agencies have been identified. All others are included under 'Other Revenue'.
TABLE 3: Government dividend requirements
2000-01 1999-2000 1
$m $m
Standard 61.0 46.0
Special 139.4 139.4
IT Infrastructure 24.8 25.4
Total 225.2 210.8
FIGURE 4: OUTCOME AND OUTPUT
Performance at a glanceOUR CLIENT PARTNERSHIPSOur goal is to build partnerships with client agencies that deliver the required results and provide value for money.
ResultsGenerally, Centrelink met most of the major client agency KPIs with significant improvements over 1999-2000 in some areas, particularly timeliness. A number of the existing KPIs over which Centrelink has limited control remained a challenge. Recent business partnership negotiations have resulted in the replacement of some of these KPIs with a smaller number of outcomes focused measures.
Key achievements retained 100 per cent of existing business during 2000-01 and gained new business;
joint participation with FaCS in the Rules Simplification Taskforce;
effectively delivered client agency outputs; and
provided input for policy development.
FIGURE 5: Client partnerships performance
Key challenges managing client agencies' KPIs;
addressing issues identified by the ANAO about Age Pension new claims; and
providing additional value to our client agencies through feedback on policy implementation and contributing ideas for future policy consideration.
CASE STUDY: Sugar industry assistanceThe Australian sugar industry, based mostly in central and northern Queensland, has experienced a severe downturn, with canegrowers significantly affected by extensive damage to crops caused by cyclones and flooding, rust disease and rat plague. In some areas, yields have been reduced by up to 40 per cent. These problems were compounded by sustained low world sugar prices, and have resulted in significant hardship for canegrowers and local communities.
A comprehensive and rapid response was required by Centrelink on behalf of AFFA. Building on the already strong networks with local farmer organisations and communities in the area, Centrelink had teams in place in less than a week, running information seminars and ready to receive claims for financial assistance at local canegrowers organisations.
In January 2001, the Chairman of Queensland Canegrowers, Harry Bonanno, publicly stated on behalf of Queensland's 6500 sugar cane growers that the successful working relationship between Centrelink and canegrowers was a model for future community support schemes, paying tribute to the outstanding cooperation, understanding and flexibility shown by Centrelink.
OUR CUSTOMERS AND COMMUNITYOur goal is to increase customer and community involvement and satisfaction with our services.
ResultsThe results show a comparison of customer satisfaction across a range of Centrelink services between 1999- 2000 and 2000-01, and with an overall target of 80 per cent. From June to December 2000, overall satisfaction with the quality of Centrelink's services rose by 10 per cent to reach 76 per cent nationally. From 2001, customer satisfaction surveys will be undertaken annually; the next survey will be in November-December 2001.
Key achievements launched 312 Family Assistance Offices in various sites on 1 July 2000;
launched the Statement of Centrelink's Commitment to Reconciliation on 14 December 2000;
strengthened and supported the life events approach;
increased customer satisfaction in Customer Service Centres and Call Centres;
established a range of community partnerships and strategic alliances; and
expanded Centrelink services for Indigenous customers in rural and remote areas.
Key challenges settling in the Family Assistance Office;
dealing with increasing demand on Call Centre services, as well as the changing nature and complexity of caller enquiries;
introducing key messages and concepts from the Australians Working Together initiatives to our people;
providing consistent and equitable access to services across all customer groups;
strengthening and supporting the life events approach;
becoming a key part of local communities;
continuing to improve service delivery to rural, remote and Indigenous customers;
reducing the number of letters sent to customers and regulating the creation of new letters; and
managing the different channels for customer contact (face-to-face, phone, online, mail) as customer needs become more complex.
FIGURE 6: Customer and community performance
CASE STUDY:
MOVING FORWARDMoving Forward is an innovative method of service delivery designed specifically for job seekers from Indigenous backgrounds. This personalised service aims to ensure that each contact with Centrelink moves Indigenous job seekers closer to their employment goals. Moving Forward has been fully implemented in Cairns, Queensland, and is being extended to other offices in the region.
Moving Forward is run by specially trained staff who can deliver Centrelink services in creative and innovative ways that move beyond the traditional office setting. These include conducting Centrelink business outdoors using remote access technology and developing strong relationships with external bodies such as the Job Network, DEWRSB, the Group Training Scheme, TAFEs and the New Apprenticeship Centre.
OUR PEOPLEOur goal is to create an environment where Centrelink's people give value to customers, client agencies and the community through their skills and commitment to service.
ResultsVery positive results from the December 2000 and June 2001 staff polls assisted Centrelink to improve on its previous year's performance by 20 per cent.
Key achievements developed the Centrelink Leadership Qualities;
established the Centrelink Virtual College;
achieved outstanding performance in the National Pay Centre;
signed the Statement of Centrelink's Commitment to Reconciliation;
developed the Indigenous Employees' Action Plan; and
achieved a 4 per cent productivity-based pay rise for our people.
FIGURE 7: People performance
Key challenges a risk assessment approach to managing customer aggression;
skilling and supporting Customer Service Officers; and
implementation of the Centrelink Development Agreement and associated human resources policies.
CASE STUDIES:INTERNATIONAL YEAR OF VOLUNTEERS ,as 2001 is the International Year of Volunteers, Centrelink has taken the opportunity to recognise the enormous contributions many Centrelink employees make to our community.
VOLUNTEERING WITH THE STATE EMERGENCY SERVICE Andreas Bischof is part of Centrelink Call Moreland (Victoria) and has been a member of the Victoria State Emergency Service since early 1998. His volunteering duties have included storm damage repair, flood assistance, search and rescue for missing persons, and the rescue of victims from vehicles at the site of an accident.
Andreas says his involvement gives him a sense of purpose in giving back to the community of which he is a part.
OUR COST-EFFICIENT ORGANISATIONOur goal is to manage our business efficiently and return a dividend to Government.
ResultsThe graph shows the 2000-01 operating performance, and the end-of-year cash and equity positions compared to the equivalent period last year. Centrelink earned a net operating surplus of $26 million in 2000-01.
Key achievements improved operating result with a surplus of $26 million;
returned to Government all required efficiency dividends totalling $225.2 million;
achieved a positive cash position of $124 million; and
achieved a positive net equity position.
FIGURE 8: Cost-efficiency performance
Key challenges management of the Comcare premium, especially high cost claims;
increasing Call Centre automation;
implementing robust cost management methodologies;
effectively using service delivery channels; and
developing the new funding model and the output pricing review.
CASE STUDY: ECOLOGICALLY SUSTAINABLE DEVELOPMENTCentrelink is the third largest consumer of energy (in terms of gigajoules) of Commonwealth agencies. This is largely due to the fact that Centrelink has the largest single property network among all Commonwealth agencies. Centrelink therefore aims wherever possible to minimise its impact on the environment through energy management and waste minimisation programs.
Centrelink has embarked on a two stage program for outsourced energy management services through the Australian Gas Light Company (AGL). This program aims to reduce Centrelink's energy consumption to meet government targets. Stage one, a detailed feasibility study, has been completed and final evaluation of the stage two proposal is nearly complete. Subject to final approval, the program will be delivered via an energy performance contract, funded and managed by AGL, with guaranteed energy reduction outcomes. The contract will be the largest yet undertaken by a Commonwealth agency and will establish Centrelink as a leader in the energy management field.
The majority of Centrelink's offices have programs in place for recycling of confidential paper waste and smaller scale schemes for recycling glass, plastic and cans. Recharged toner cartridges and paper with recycled content are also used. At Tuggeranong Office Park, Canberra, in addition to recycling, remaining waste is compacted on site to minimise its volume, while all landscaping and kitchen wastes are composted on site and reused.
OUR INNOVATIVE ORGANISATIONOur goal is to provide innovative and personalised solutions consistent with Government policy.
ResultsCentrelink coordinated and consolidated a range of business improvement projects in 2000-01. These projects focused on improving current operations, as well as positioning for future service delivery.
Projects focused on the outcomes specified in the Centrelink Business Plan and included:
Centrelink Online, which provides the infrastructure to support the Call Centre and Families Tax System;
Call Centre Automation, which will improve the timeliness and effectiveness of services;
various initiatives to explore and progress the life events approach to service delivery;
initiatives to improve servicing in rural and regional areas, and to Indigenous customers;
Centrelink Education Network to improve the delivery of training to Centrelink employees; and
initiatives to improve the accuracy of our decision making.
Key achievements conducted Community Connections trials in four sites;
achieved major growth in the Centrepay facility;
extended Remote Access Service technology allowing better access to Centrelink;
completed the Centrelink online project;
launched the new Centrelink web site; and
developed a standalone configuration of Edge (Decision Support System) in partnership with FaCS and Softlaw Corporation.
Key challenges business process re-engineering to capture the advantages of the service delivery model and e-
technology;
removing the complexity from customer service in order to meet the expectations of the community for service anywhere, anytime;
finding a balance between accessibility and convenience, and cost, complexity and risk; and
developing people strategies for the new business process.
CASE STUDY: VIDEO-CONFERENCINGCentrelink is using video-conferencing in selected Areas to take specialist services to some of the remotest parts of Australia.
Centrelink's video-linking facilities are currently involved in a trial with the South Australian Government's Justice Unit and Legal Services Commission. This three-way partnership, known as Bushlink, connects Centrelink Ceduna with Port Augusta Prison, so that inmates and their families in remote communities can have face-to- face contact without having to travel for five or more hours. This was one of the recommendations of the Royal Commission into Aboriginal Deaths in Custody. Prisoners may also use these facilities to access advice from the Legal Services Commission, while witnesses can give evidence at trials, to avoid lengthy travel to urban centres. The facilities have even been used by a magistrate to witness the signing of a legal document by a signatory based in a remote area. In return
for providing access to its facilities, Centrelink gains access to the other partners' facilities sited in Indigenous communities in the north-west of South Australia.
BEST PRACTICEOur goal is to be first choice and benchmarked as best practice in service delivery.
Performance against the best practice goal is not measured individually as it is the sum of the total achievement against the other five goals and will be validated through external benchmarking.
Key achievements conducted over 50 Risk Assessment Workshops;
implemented the Getting it Right strategy;
conducted several benchmarking projects;
conducted mystery shopping trials in 152 Customer Service Centres;
received a wide range of awards; and
hosted a wide range of international visits.
Key challenges exploring internal and external benchmarking;
increasingly being benchmarked as best practice; and
sharing best practice.
RECOGNISING AND SHARING BEST PRACTICECentrelink recognises best practice through internal award programs and is in turn recognised in a wide variety of forums for innovative best practice. Participation in various award programs at the local, national and international levels gives recognition to Centrelink people for service delivery excellence. It also provides a further opportunity to benchmark performance against other organisations in the public, private and community sectors.
Centrelink has received a wide range of external awards in 2000-01 in recognition of best practice in areas of our business. Centrelink Call in particular was very successful in winning numerous industry and community awards during 2000-01, reflecting its high level of innovation and best practice.
CASE STUDIES: FRAUD CONTROLCentrelink is recognised around the world for expertise in fraud control. Specialised staff are sought to undertake consultancies to assist in the development of fraud programs for domestic and international organisations.
IBM, FaCS and Centrelink are conducting a Consultancy Study on Risk Management on Social Security Schemes for the Government of Hong Kong represented by the Social Welfare Department. Ray White, Detection and Review, will reside in Hong Kong for the six-month duration of the consultancy.
Brian O'Malley, Detection and Review, is on a two-year outposting to Canada's Human Resources Development Department to assist with the development of their fraud control programs.
A whole-of-government, proof of identity scoping study is under way with the Criminal Justice and Security Division of the Attorney-General's Department.
INTERNATIONAL STUDY TOURSCentrelink also hosts an extensive program of visits by international counterparts. Centrelink received around 17 study tours and delegations from overseas countries in 2000-01, with particular interest shown by the People's Republic of China. Areas of common interest are Centrelink's service delivery and I&T capabilities.
Centrelink will continue to make a difference to thepeople of Australia by delivering the Government’s social policy agenda at increasing levels of customer service and cost efficiency.
STATEMENT OF CENTRELINK’SCOMMITMENT TO RECONCILIATIONA united Australia which respects this land of ours: values the Aboriginal and Torres Strait Islander heritage and provides justice and equity for all.
CENTRELINK IS COMMITTED to working in practical ways with Indigenous peoples and their communities, Client Departments and other Agencies to achieve integrated services which improve economic and social outcomes for Indigenous Australians.
Centrelink is committed to making a difference to the Aboriginal and Torres Strait Islander peoples through responsive high quality government services and opportunities.
Centrelink affirms the fundamental importance of reconciliation for a community which values diversity and the contribution of all people. For Centrelink, reconciliation means working with our people, Indigenous customers and their communities to deliver improved outcomes for Indigenous people.
Centrelink recognises Aboriginal and Torres Strait Islander peoples as the first Australians, with unique cultures, languages and the spiritual relationships to the land and seas.
Centrelink acknowledges the history of Aboriginal and Torres Strait Islander peoples and commits to working with Indigenous Australians to achieve:
‘A united Australia which respects this land of ours: values the Aboriginal and Torres Strait Islander heritage and provides justice and equity for all’.
VISION OF THE COUNCIL FOR ABORIGINAL RECONCILIATION
Centrelink acknowledges the diversity and differences within and between Aboriginal and Torres Strait Islander cultures.
For Indigenous Australians and their communities Centrelink is committed to:
Acknowledge and overcome the barriers faced by Indigenous Australians in accessing Centrelink services. We will develop partnerships with Indigenous communities and agencies to improve the design, delivery and access to Centrelink services.
Improve access to employment, education and training.
Increase the satisfaction of Indigenous Australians with Centrelink services.
Ensuring an Indigenous voice in developing Centrelink services, and encouraging the active involvement of our Indigenous employees in shaping future directions.
As an employer Centrelink values its Indigenous employees and is committed to:
Providing greater employment opportunities for Indigenous Australians, reflecting the indigenous customer profile in our staffing levels.
Ensuring Indigenous employees receive appropriate support.
Assisting Indigenous employees to fulfill their career goals through the provision of development and learning opportunities.
Increasing our understanding of the identity and experiences of Indigenous Australians and reflecting this awareness in our internal relationships and external service delivery.
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