corporate governance and accountability...

207 Chapter 10 Our governance arrangements

227 Chapter 11 Our people

246 Chapter 12 Our stakeholders

253 Chapter 13 Our enabling strategies

269 Chapter 14 Our accountability 3Corporate governance and accountability

207Chapter 10 Our governance arrangements Part3 Corporate governance FaHCSIA Annual Report 2008–2009

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Our governance arrangements at a glanceCorporate governance provides the system by which FaHCSIA directs and controls our operations and the structure through which departmental objectives are set and enacted. FaHCSIA’s governance structure comprises the Secretary and the Executive Management Group, supported by boards and committees that provide advice relating to our administration and overall operation.

FaHCSIA also has in place a strategic framework that guides our direction, sets out the leadership and personal values that we uphold and outlines the core business practices and governance processes that will help FaHCSIA to achieve real outcomes for Australian communities, families and individuals.

Our executive

Dr Jeff Harmer, SecretaryJeff Harmer was appointed as Secretary of the Department in October 2004 and reappointed in October 2008. He was previously Secretary of the Department of Education, Science and Training (2003–04), and before that, Managing Director of the Health Insurance Commission, now Medicare Australia (1998–2003). Jeff has held a range of high‑level policy advising positions in the Australian Government.

In February 2009, the Secretary completed a major review into the adequacy of the Age Pension. He is a member of a panel chaired by Dr Ken Henry to review the Australian Tax and Transfer System.

As Secretary, Jeff is responsible for the administration and the corporate and strategic directions of the Department and the portfolio. He provides senior policy counsel on major and sensitive policy issues to the portfolio ministers and parliamentary secretaries. He also represents the Department in a variety of government, industry and business sector forums.

Our governance arrangements10

208 FaHCSIA Annual Report 2008–2009 Part3 Corporate governance Chapter 10 Our governance arrangements

Through these, Jeff develops and maintains high‑level relationships with the Department’s key stakeholders. He sits on the boards of the Australian Research Alliance for Children and Youth and the Melbourne Institute Advisory Board. He is also a Fellow of the Australian Institute of Management and the Institute of Public Administration Australia.

Glenys Beauchamp, Deputy SecretaryGlenys Beauchamp was appointed Deputy Secretary of the Department in January 2006. In addition to assisting the Secretary with the directions and outcomes for the Department, she has responsibility for outcomes covering families, including implementation of the Government’s Paid Parental Leave scheme, child support reforms and welfare payments reform; women; early childhood; mental health; and a range of community‑based programs.

Glenys came to FaHCSIA at the end of 2002 from the ACT Government and since that time has had oversight of a number of functions in the Department. She is a member of the Australian Institute of Family Studies Advisory Board and a member of the Australian Statistics Advisory Committee.

‘2008–09 presented the portfolio, like most others, with meeting additional challenges to address the impacts of the most difficult global economic conditions of recent times. ‘The Department assisted government with the implementation of a short‑term stimulus package in late 2008 through cash payments to pensioners, carers, veterans and families and its medium‑term infrastructure package, including a large investment in social housing.

‘Significant structural changes were announced by the Government in key social policy areas such as reform of the age pension system, the introduction of Australia’s first national Paid Parental Leave scheme, additional investment into areas like homelessness and social housing and an apology to Indigenous Australians.

‘The Department is supporting the delivery of these substantial reforms but has made significant progress in streamlining the administration of community grants, rationalising the number of community‑based programs and commenced consultation in the development of the Government’s compact with the not‑for‑profit sector.

‘The development and implementation of major reforms and initiatives has been an ongoing feature for the Department in 2008–09, and again has had a positive influence on our reputation in the way we have developed and delivered for the Government. I would like to offer a big thanks from the executive to all staff in the professional way these challenges have been met in difficult times.’

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Chapter 10 Our governance arrangements Part3 Corporate governance FaHCSIA Annual Report 2008–2009

Geoff Leeper, Deputy SecretaryGeoff Leeper was Deputy Secretary in the Department of Families, Housing, Community Services and Indigenous Affairs from 2007 to 2009. He was previously Deputy Secretary in the Department of Human Services (2005–07) and Deputy Chief Executive Officer in Medicare Australia (2001–05).

While at FaHCSIA, Geoff assisted the Secretary in managing the Department, with special focus on the Housing, Legal and Compliance, and Indigenous Remote Services Delivery groups and the Office of Indigenous Policy Coordination. He was also the Chair of the Risk Assessment and Audit Committee and was the Commonwealth Director on the Board of the Australian Housing and Urban Research Institute.

Geoff has had a long and distinguished career in social policy, including in the Department of Social Security, Centrelink, the former Department of Family and Community Services, the Health Insurance Commission and the Department of Human Services, and has a great depth of experience in policy, program administration and corporate affairs.

Geoff joined the Department of Climate Change as Deputy Secretary in June 2009.

Robyn McKay, Acting Deputy SecretaryRobyn McKay joined the then Department of Family and Community Services in early 1999 as Group Manager, Families and Children. From 2002 to 2005, she was Minister‑Counsellor, Social Policy, at the Australian Delegation to the OECD in Paris. She led the Social Policy Group in FaHCSIA in 2006 before taking up her role as Acting Deputy Secretary in October 2006.

Robyn has had a long career in social policy spanning employment programs; industrial relations and wages policy; higher education policy and program administration; health, families and income support policy and programs; and commercialisation and privatisation policy. Before joining FaHCSIA she worked in senior executive positions in the departments of Employment, Education and Training (1989–95) and Finance and Administration (1995–98), where she led the Accrual Budgeting Project.

Robyn’s role has been to assist the Secretary in managing the Department, with particular responsibility for strategic policy, the Age Pension, social security relationships and compliance, research, and international engagement, as well as the Office of the Registrar of Indigenous Corporations, the Pension Review Taskforce, and supporting the Secretary in his role on the Henry Tax System review. She was chair of the Research and Evaluation Committee, the Payments Committee and the Budget Policy Committee, and was the FaHCSIA representative on the Board of the Australian Institute of Health and Welfare.


Since the completion of the Pension Review at the end of February, Robyn has been on extended leave, pending retirement later in 2009.

‘The last year has been one of major change, with a strengthened focus on cross‑cutting policy development, reflected in considerable review activity. The Pension Review was a significant achievement of 2008. It highlighted the importance of FaHCSIA’s analytical capacity, strong research base and investment in longitudinal data to make major contributions to work on social inclusion and income support, and the pride our people take in robust analysis and working across organisational boundaries.’

Bernie Yates, Deputy SecretaryBernie Yates has been Deputy Secretary in the Department since January 2006, following the integration of the Office of Indigenous Policy Coordination into FaHCSIA. Bernie assists the Secretary with managing whole‑of‑government policy development in Indigenous affairs, the Department’s program management framework and oversees our network of over 30 offices across urban, regional and remote Australia.

‘This year has seen major advances in the Closing the Gap strategy developed by the Council of Australian Governments (COAG), with major investments through national agreements and partnerships to progress achievement of the ambitious targets in Indigenous early childhood, education, health and employment and to address critical housing requirements. Attention is now being given to implementation of these commitments and ensuring much‑improved outcomes for disadvantaged Indigenous people in urban, regional and remote Australia. A new remote strategy forms a key part of this work, including governments at all levels working in partnership with Indigenous people in identified locations, overseen by a new statutory position of Coordinator‑General for Remote Indigenous Services.

‘As part of the ongoing steps to reset the relationship with Indigenous people, the Government supported the United Nations Declaration on the Rights of Indigenous Peoples and has strengthened consultation and engagement across a range of key initiatives, including development of the new National Indigenous Representative Body and a Healing Foundation.

‘Following an independent review of the Northern Territory Emergency Response, which reported in October 2008, extensive work has been undertaken, including extensive consultations with Indigenous people in the Northern Territory to guide revision of measures to achieve compliance with the Racial Discrimination Act 1975.

‘The Department has also given greater attention to reducing red tape and streamlining requirements for funding of community organisations, working with representatives of service providers to ensure that, as far as possible, funding can be applied to

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better services while ensuring due accountability for outcomes. This is seeing some breakthroughs in how the Department is conducting its program business, working also with other agencies involved in Indigenous program delivery to do likewise.’

Serena Wilson, Deputy SecretarySerena Wilson was appointed as Deputy Secretary of the Department in March 2009. Before joining FaHCSIA, Serena was in the Department of the Prime Minister and Cabinet, where she led the Social Policy Division. Serena’s career has spanned many areas of social policy across a range of Commonwealth departments, including Employment and Workplace Relations, Family and Community Services, Social Security, Health and Community Services, and Housing and Construction. In the 11 years she

spent in the Family and Community Services and Social Services portfolios, Serena led work on welfare reform, income support for people of working age, fraud and compliance policy, carer policy, and strategic analysis and research.

Serena assists the Secretary in managing the Department with particular responsibilities for strategic policy and budget strategy, the Age Pension, social security relationships and compliance, research and international engagement, the Tax‑Transfer Taskforce and the Disability and Carers Group. She is chair of the Department’s Research and Evaluation Committee and Payments Committee and jointly chairs the Budget Policy Committee with Bruce Hunter. Serena is the FaHCSIA representative on the Board of the Australian Institute of Health and Welfare.

‘2008–09 has been a year of great achievement for FaHCSIA. It is particularly significant that far‑reaching reform of the pension system is being undertaken in the centenary year of the Age Pension. The Pension Review was well supported by evidence drawn from key FaHCSIA datasets, including the Household Income and Labour Dynamics in Australia (HILDA) survey, now in its ninth wave. 2008–09 has seen two further milestones in the development of our social policy evidence base: completion of the first wave of data collection for Footprints in Time—the Longitudinal Study of Indigenous children—and the release of Life at Three, supported by the third wave of data from the longitudinal study of Australian children. Continued development of these datasets will position FaHCSIA well in the future to advise on policy reforms across our seven outcomes.’


Bruce Hunter, Deputy Secretary, Chief Operating Officer and Chief Financial Officer

Bruce Hunter took up his role as FaHCSIA’s Deputy Secretary, Chief Operating Officer and Chief Financial Officer on 10 June 2008. In this role Bruce assists the Secretary in managing the Department, and has responsibility for the Business and Financial Services, Corporate Support, and Information Management and Technology groups. While Bruce is a member of the Executive Management and Senior Management groups, he also is the chair of seven key departmental committees including the

Remuneration, People, and Information and Communications Technology committees.

Bruce has many years of experience in the public and private sector and joined FaHCSIA in November 2006 as Group Manager, Business and Financial Services. Before joining FaHCSIA, Bruce was Executive Director Corporate at the Family Court of Australia, where he was responsible for providing strategic leadership and management of the finance, property, human resources, security, contract management and secretariat functions at a national level for the court.

‘I am proud of the achievements of the corporate/enabling areas in supporting the Department to meet a range of significant challenges in 2008–09, such as the COAG reforms, the Pension Review, the Paid Parental Leave scheme, and the Northern Territory Emergency Response. These same enabling areas also responded very efficiently and positioned the Department well for the changing operating environment associated with Operation Sunlight, the Gershon Review, and coordinated procurement.

‘In 2009–10 I will continue to look at ways to better integrate our corporate, finance and IT areas to support the Minister and the Department and ensure FaHCSIA is well positioned to meet future challenges.’

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2009 FaHCSIA Senior Executive Service Future Directions Forum.


Our organisational structureFigure 3.1 Organisational structure as at 30 June 2009

SecretaryDr Jeff Harmer

Deputy SecretaryGlenys Beauchamp

Deputy SecretarySerena Wilson

Families

Barry Sandison

Family Payments

Peter Southwell

a/g

Family Relationship

Services

Sonia Cornelly a/g

Family Policy & Research

Lee Emerson

Child Support Policy

Allyson Essex

Children & Parenting Support

Ty Emerson

Paid Parental Leave

Mark Warburton

Children’s Policy

Fiona Smart

Safety Taskforce

Janet Stodulka a/g

Executive Director Office

for Women

Julia Burns

Group Manager

Children & Family Safety

Cate McKenzie

Office for Women

Sally Moyle

Strategic Projects

Helen Hambling

Community Engagement

& Development

Evan Lewis

Mental Health

Carol Brain

Autism Spectrum Disorder

Vicki Brown

Disaster Preparedness

& Recovery

Beryl Janz

Welfare Payments

Reform

Gavin Matthews

Community Investment

Jill Farrelly

Money Management

Liz Stehr

Social Policy

Sean Innis

Corporate Support

Robert Knapp

Deputy SecretaryChief Operating Officer/CFO

Bruce Hunter

Social Security

Policy

Ben Wallace

Ministerial, Parliamentary & Secretariat

Support

Susan Black

Seniors & Means Test

Alanna Foster

People

Lynette MacLean

Strategic Policy

Bryan Palmer

Long Term Strategies

Unit

Christine Williams

Property Environment & Protective

Security

Dave Agnew

Research and Analysis

Carol Ey

Communications & Media

Andrew Lander

International

Michalina Stawyskyj

Tax-Transfer Taskforce

Nick Hartland a/g

Information Management & Technology

Tony Kwan

Tax-Transfer Review

Andrew Whitecross

a/g

ICT Infrastructure

Projects

Kylie Williams a/g

ICT Applications Development

Max Devereux

ICT Infrastructure

Services

Scott Glare

Information Management

Ingrid Blount

Disability & Carers

Frances Davies

Business & Financial

Services

Steve Jennaway

a/g

Disability & Carers Policy

Helen Bedford

Disability & Carers Programs

Christine Bruce

Disability & Carers

Payments

Nicole Pearson

Procurement & Risk

Management

John Shevlin

Financial Accounting

Kurt Munro

Financial Management & Governance

Scott Dilley

Budget Development

Kim Vella a/g

= Statutory Office Holder

= Temporary Arrangement

Women & Children Policy

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Office of Indigenous

Policy Coordination

Lynne Curran

Legal & Compliance

Anthony Field

Principal Adviser

Matthew James a/g

Commercial & Indigenous

Law

David Fintan

Indigenous Policy

Alison Smith / Bruce Smith

Public Law

Stuart Long a/g

Performance & Evaluation

Stephen Powrie

a/g

Compliance

Phil Brown

Indigenous Investment

Annette Gath a/g

COAG Implementation:

Indigenous

Lisa Foreman a/g

Audit

Loucas Nicolaou

Housing

Peta Winzar

Social Housing Initiative

Chris Lamont

Office of Housing

Cathy Walters a/g

Social Housing Initiative

TBA

Affordable Housing

Programs

Sue Ham a/g

Homelessness

Kate Gumley

Senior Adviser Housing

Clare Wall a/g

Indigenous Remote Service Delivery

Kari Ahmer a/g

Indigenous Economic

Development & CDEP Policy

Keith Ogborn a/g

Indigenous Housing Delivery

Robert Ryan

CDEP Program

Management

Helen Board

Indigenous Housing

Policy

Megan Lees

Land Reform

Caroline Edwards

Indigenous Leadership & Engagement

Kerrie Tim

Reconciliation & Repatriation

Mandy Doherty

Leadership Delivery

Karen Pickering

a/g

Indigenous Engagement

TBA

National Representative

Body

Geoff Richardson

Program Performance

Donna Moody

Portfolio Governance & Program

Support

Mark Garrity

Program Frameworks

Deborah Winkler

Indigenous Programs

Greg Roche

Network Management

Jan Lawless

APY Lands

Adrienne Gillam

Registrar of Indigenous

Corporations

Anthony Beven

Strategic Project

(Office of Coordinator-

General)Di Hawgood

a/g

NTER Operations

CentreMike Zissler

(Commander)Brian Aarons

(Chief of Staff )

Deputy SecretaryBernie Yates

Deputy SecretaryAmanda Cattermole a/g

Township Leasing

Pat Watson

State & Territory ManagersNSW/ACT

Susan Finnigan

James McCormack (Dubbo)

VIC Gwenda Prince

TAS Wendi Key

QLD Anne‑Marie Roberts a/g

Mike Fordham (Cairns)

SA Robyn Fleming

WA Roger Barson

Richard Aspinall (Broome)

David Pedlar (Kumunurra)

NT Brian Stacey

Barry Johson (Deputy State Manager)

Mark Coffey (Regional Director)

Joe Martin‑Jard (Regional Director)


Boards and committeesWithin FaHCSIA, a number of internal committees have been established to provide advice and support to the Secretary and the Executive Management Group on the administration and overall operation of the Department (see Figure 3.2). Generally, internal committees are made up of FaHCSIA employees, although some internal committees may also have one or more independent members who are not FaHCSIA employees.

The following section provides further information on FaHCSIA’s internal committees, comprising membership details, roles and responsibilities, and reporting requirements.

Figure 3.2 FaHCSIA governance structure as at 30 June 2009

Secretary*

Senior Management Group Executive Management Group

Information and Communications

Technology Committee

Research and Evaluation Committee

Commonwealth–State Relations

Committee

People Committee

Payments Committee

Remuneration Committee

Program Management

Committee

Budget Policy Committee

Closing the Gap Committee

Financial Statements

Sub‑Committee

Compliance and Integrity Committee

Project Investment

Board

Risk Assessment and Audit

Committee

* Dr Jeff Harmer, Secretary, FaHCSIA, is Chair of the Executive Management Group, the Senior Management Group and the Closing the Gap Committee.

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Committees reporting to the SecretaryExecutive Management GroupThe Executive Management Group is the senior committee in FaHCSIA and provides advice to the Secretary on overall direction, priorities, management and performance (see Table 3.1). In addition, the group manages the Department’s financial performance by allocating resources, monitoring performance and risk and ensuring the Department meets its regulatory requirements.

The group also provides a forum for cross‑group issues to be managed, and guides, coordinates and champions key organisational reform processes.

The Executive Management Group is chaired by the Secretary, Dr Jeff Harmer. Membership consists of the deputy secretaries and the Group Manager, Corporate Support.

Executive Management Group, left to right: Amanda Cattermole (a/g Deputy Secretary), Robert Knapp, Jeff Harmer, Serena Wilson, Bernie Yates, Glenys Beauchamp.


Table 3.1 FaHCSIA Executive Management Group as at 30 June 2009


Deputy SecretariesGlenys Beauchamp

Amanda Cattermole*Bruce Hunter**Serena WilsonBernie Yates

Group Manager, Corporate SupportRobert Knapp

* As at 30 June 2009, Amanda Cattermole was acting in this role.** As at 30 June 2009, Bruce Hunter was also the Department’s Chief Operating Officer and Chief Financial Officer.

Senior Management Group

Senior Management Group, row 1, left to right: Donna Moody, Glenys Beauchamp, Jeff Harmer, Serena Wilson, Bernie Yates, Tony Kwan, Anthony Bevenrow 2, left to right: Frances Davies, Peta Winzar, Kerrie Tim, Nick Hartlandrow 3, left to right: Cate McKenzie, Anthony Field, Amanda Cattermole, Helen Hambling, Barry Sandison row 4, left to right: Evan Lewis, Steve Jennaway, Chris Lamont, Julia Burns, Robert Knapp.

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The Senior Management Group meets weekly to undertake strategic discussions on policy themes and issues, key organisational risks, performance and evaluation and other high level matters. The group is FaHCSIA’s primary forum for senior executive consultation with group managers from across the Department.

The group is chaired by the Secretary. Membership consists of deputy secretaries, group managers, and the Registrar of Indigenous Corporations (see Table 3.2).

Table 3.2 FaHCSIA Senior Management Group as at 30 June 2009

* As at 30 June 2009, these officers were acting in these roles.** As at 30 June 2009, Bruce Hunter was also the Department’s Chief Operating Officer and Chief Financial Officer.*** Registrar of Indigenous Corporations.

Risk Assessment and Audit CommitteeThe Risk Assessment and Audit Committee is a mandatory committee, established by the Secretary pursuant to the Financial Management and Accountability Act 1997.

The role of the committee is to provide independent assurance and assistance to the Secretary and the Executive Management Group on the design and operation of FaHCSIA’s risk, control and compliance framework, and external accountability and responsibilities.

The committee has the authority to request any information it requires from any employee of FaHCSIA, and to discuss any matter with the Chief Internal Auditor, the contracted internal audit service provider, the Australian National Audit Office and the Office of Evaluation and Audit. The committee is also authorised to take independent, professional advice as it considers necessary.


Deputy Secretaries

Glenys Beauchamp

Amanda Cattermole*

Bruce Hunter**

Serena Wilson Bernie Yates

FaHCSIA Group Managers

Peta WinzarKari Ahmer*

Steve Jennaway*

Evan LewisCate McKenzieDonna Moody

Barry SandisonKerrie Tim

Nick Hartland*Sean Innis

Robert KnappTony Kwan

Chris Lamont

Anthony Beven***Julia Burns

Lynne CurranFrances DaviesAnthony Field


The committee has a Financial Statements Sub‑Committee, which oversees the preparation of FaHCSIA’s financial statements. The Financial Statements Sub‑Committee reports and provides assurance to the committee on all matters regarding the preparation of the Department’s annual financial statements. The Chair of the Financial Statements Sub‑Committee provides a report at each committee meeting.

In addition, the Chief Financial Officer also regularly reports and provides assurance to both this committee and the Executive Management Group on the Department’s financial policy and financial control framework. The committee has two independent external members.

The committee meets six times each year, with one meeting devoted to the examination of the annual financial statements. Following each meeting, the committee reports the key outcomes to the Executive Management Group through its Chair, Deputy Secretary Bernie Yates. Its membership includes two independent members; the Group Manager, Corporate Support; the Group Manager, Families; and the Branch Manager, Social Security Policy.

Remuneration CommitteeThe Remuneration Committee advises the Secretary on the development and implementation of the Department’s remuneration policy, including the Collective Agreement and individual remuneration policy. It also considers and determines individual remuneration proposals that fall outside the scope of the Secretary’s endorsed remuneration policy.

The FaHCSIA Remuneration Committee is chaired by the Chief Operating Officer and Chief Financial Officer, Bruce Hunter. Membership includes all deputy secretaries and the Group Manager, Corporate Support.

Committees reporting to the Executive Management GroupBudget Policy CommitteeThe Budget Policy Committee manages the Department’s budget policy agenda and contribution to the Federal Budget process. The committee advises the Secretary and is jointly chaired by deputy secretaries Serena Wilson and Bruce Hunter. Membership includes all deputy secretaries, three group managers and the Budget Development Branch Manager.

The committee’s role is to:

identify key areas of focus ◗

determine departmental priority for Budget initiatives in collaboration with the Minister ◗

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ensure that the synergies between the various proposals that form the Budget strategy ◗

are identified and optimised

assess risks to the Department’s Budget policy agenda and develop ◗

mitigating strategies.

People CommitteeThe People Committee ensures that human resource strategies are aligned with the Department’s strategic directions and business priorities. Chief Operating Officer and Chief Financial Officer, Bruce Hunter, chairs the committee. Its members are the Group Manager, Corporate Support; the Executive Director of the Office for Women; the branch managers of the People, Mental Health, Land Reform and Financial Accounting branches; the State Manager New South Wales; and the Manager of Dubbo Indigenous Coordination Centre.


oversee, support and monitor the implementation of the Department’s strategic human ◗

resource framework

provide strategic advice to the Executive Management Group on integrating FaHCSIA’s ◗

people planning and development with our strategic directions and business priorities

provide strategic leadership to foster a workforce that operates in line with the APS ◗

Values and Code of Conduct and our departmental values and leadership capabilities

provide leadership to foster an innovative, safe, flexible, responsive, capable, ethical and ◗

accountable workforce

engage the Executive Management Group in strategic dialogue about current and ◗

emerging people issues, provide timely and informed advice against the backdrop of wider workplace reforms and business needs.

Payments CommitteeThe Payments Committee is the key departmental forum for discussion and development of coordinated advice to the Executive Management Group and the Secretary in relation to the management of income support payments (pensions and allowances) and family assistance payments.

The committee is chaired by Deputy Secretary Serena Wilson. Its membership includes the group managers of the Social Policy, Families, Disability and Carers, Housing, Mental Health, Autism and Community Support, Pension Review, Social Security Policy groups, and the Branch Manager, Budget Development Branch.



provide an enabling role to support the FaHCSIA executive in managing social security ◗

payments with a cross‑payment perspective

support existing assurances to the Risk Assessment and Audit Committee and the ◗

Secretary on payment performance and integrity for the Budget and the annual report

provide a platform for information sharing on new policy proposals and testing their ◗

implications across payments

support the implementation of high‑priority and sensitive initiatives and processes ◗

provide a coordination role to support FaHCSIA’s interaction with policy departments ◗

(for example, the Departments of Education, Employment and Workplace Relations and Human Services) on social security matters and with Centrelink at Business Partnership Agreement committees and quarterly business discussions

provide a forum to establish common approaches to address particular customer ◗

groups’ needs

commission work on the development of an overarching performance framework ◗

for payments including identification of common key performance indicators and benchmarks.

In carrying out its role, the committee undertakes a whole‑of‑FaHCSIA approach and focuses on three streams of work: policy, performance management and service delivery, and evidence and data management.

Project Investment BoardThe Project Investment Board provides the executive with advice and recommendations on capital budgeting and investment across the portfolio.

The board is chaired by the Group Manager, Business and Financial Services, and membership comprises the Chief Information Officer and the Group Manager, Corporate Support. Its members are supported by their respective branch managers.

The board’s key objectives are to:

ensure the Department invests in strategically important opportunities ◗

provide the executive with options on balancing demands on capital ◗

set the direction for future investments by annually reviewing 5–10‑year capital and asset ◗

replacement plans

recommend major capital projects to the executive ◗

advise project committees and groups on the strategic directions for the following ◗

financial year.

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Indigenous Policy ForumThe Indigenous Policy Forum was discontinued in January 2009 and replaced by the Closing the Gap Committee (see below).

Closing the Gap CommitteeDuring 2008–09, a new committee was established to ensure the Department delivers on its responsibilities in relation to the Government’s Closing the Gap agenda. It is chaired by the Secretary, Dr Jeff Harmer, and membership includes all FaHCSIA deputy secretaries and group managers and the Queensland State Manager.


provide strategic oversight of policy development in Indigenous affairs ◗

monitor the implementation of COAG policies and strategies relevant to ◗

FaHCSIA business.

The committee aims to ensure that FaHCSIA provides well‑coordinated, seamless policy development and advice to the Ministers.

Compliance and Integrity CommitteeThe Compliance and Integrity Committee further strengthens the focus of FaHCSIA on accountability, good governance and ethical practices both within FaHCSIA itself, and in relation to the entities with which FaHCSIA deals, particularly entities that receive, and so are accountable for, public money. The committee is chaired by Deputy Secretary, Bernie Yates, and its membership consists of Deputy Secretary, Serena Wilson (Deputy Chair), group managers of the Program Performance and Corporate Support groups and the State Manager, New South Wales.


contribute to the overall accountability framework, including (in liaison with the Risk ◗

Assessment and Audit Committee) the Fraud Control Plan and fraud awareness

directly oversee the conduct of all investigation and compliance activities within ◗

FaHCSIA, ensuring that these activities conform with applicable laws, prescribed practices and mandated procedures, as well as with the strategic objectives of FaHCSIA, and are conducted effectively and in a proper and timely manner

stimulate appropriate and prompt reporting ◗

directly oversee any remedial action required as a consequence of investigation or ◗

compliance activities.


The committee’s scrutiny of individual cases provides assurance that any decision made or recommended by individual compliance officers or investigators, and those supervising their activities, is truly accountable and will withstand scrutiny.

Information and Communications Technology CommitteeThe Information and Communications Technology Committee provides leadership and long‑term focus on information and communications technology (ICT) infrastructure and projects within FaHCSIA. It is the major departmental decision‑making body for long‑term infrastructure planning, ICT project planning and project funding within the broad directions set by the Executive Management Group.

Bruce Hunter chairs the committee, whose members in 2008–09 were Deputy Secretary Geoff Leeper, the Chief Information Officer, group managers from the Business and Financial Services and Program Performance groups, and the Registrar of Indigenous Corporations.

The committee’s role is to provide strategic advice to the Executive Management Group on matters relating to ICT. It develops the ICT investment strategy and considers and recommends ICT funding to the Executive Management Group. This involves:

determining relative ICT priorities from a business perspective ◗

ensuring that project benefits are defined and realised ◗

monitoring and advising the Executive Management Group on investment risks ◗

approving, rejecting or deferring ICT proposals. ◗

This committee also oversees ICT project steering committees as determined from time to time.

Program Management CommitteeThe Program Management Committee provides strategic advice on the priorities of FaHCSIA’s grant programs and on the risks and opportunities arising from program management activities.

The committee is co‑chaired by deputy secretaries Bernie Yates and Glenys Beauchamp. Membership consists of group managers responsible for program administration, a state office representative and branch managers from the Program Performance Group.

The committee also provides direction on program management policies, common business processes and the strengthening of program management capability, and provides direction to the Program Branch Managers Forum. In addition, a Funding Management System Steering Committee provides information to the committee on system‑related business development opportunities and directions.

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Research and Evaluation CommitteeThe Research and Evaluation Committee’s role is to facilitate the development of evidence‑based policy by providing strategic advice in relation to FaHCSIA’s research, evaluation and data management activities.

The purpose of the committee is to support the Executive Management Group in its governance responsibilities relating to research, evaluation and data management to ensure that:

the research and evaluation program is focused on the Government’s policy agenda and ◗

aligned to FaHCSIA’s strategic themes

high‑quality research standards are established and maintained ◗

potential risks related to the research and evaluation program are identified and ◗

managed appropriately

research and evaluation activities comply with relevant legislation, regulations and codes ◗

of conduct

data management activities align with business needs and priorities. ◗

The committee is chaired by Deputy Secretary, Serena Wilson. Its membership comprises the group managers of the Social Policy, Office of Indigenous Policy Coordination, Housing, Families and Disability and Carers groups and the branch managers of the Research and Analysis, Office of Women and Information Management branches. The branch managers of Strategic Policy Branch and the Long Term Strategies Unit are advisors to the committee.

The committee has overall responsibility for research and evaluation in FaHCSIA which must be approved by the committee.

Commonwealth–State Relations CommitteeThe Commonwealth–State Relations Committee is a new committee. Its inaugural meeting was held on 16 April 2009.

The committee provides the key departmental forum for discussion and development of coordinated advice to the Executive Management Group and the Secretary on the management of Commonwealth–state business.

The committee is chaired by a deputy secretary. Its members are the managers of the following groups: Women and Children Policy, Disability and Carers, Office of Indigenous Policy Coordination, Housing, Community Engagement and Development, Program Performance, and Social Policy, and two State Managers.


The terms of reference for the committee are to:

oversee, support and monitor the implementation of the Department’s whole‑of‑ ◗

Commonwealth–state business

oversee FaHCSIA‑wide processes and responsibilities under the new COAG Framework ◗

for Federal Financial Relations

ensure FaHCSIA works effectively with ministerial councils and working groups to ◗

progress desired policy outcomes

ensure processes are in place to enable FaHCSIA to provide accurate and timely ◗

information to assist the policy development process

advise the Executive Management Group on current and emerging Commonwealth–state ◗

issues.

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Our people at a glanceTo achieve our purpose of improving the lives of Australians, FaHCSIA relies on the skills and commitment of our staff. We are proud of the diversity in the Department. We know that our people—with their diverse abilities, skills, languages, cultures and backgrounds—are our greatest resource.

FaHCSIA values, recognises and rewards our people. We have a strong performance culture focused on developing staff capability, including leadership and skills development. Our staff respect and encourage diversity in their working environment.

FaHCSIA networkMore than 25 per cent of FaHCSIA staff are based outside Canberra in our national network, comprising seven capital city offices, four regional offices and 30 Indigenous Coordination Centres. Some staff are based in remote Indigenous communities, including Government Business Managers and Indigenous engagement officers.

FaHCSIA People Strategy 2009–10This year we developed the FaHCSIA People Strategy 2009–10: Great People, Great Future, which aims to ensure that FaHCSIA remains a great place to work with a strong performance culture. The implementation of the strategy will enable the Department to continue to attract people to the organisation and to develop, support and retain them. It will also ensure that our existing staff are supported to achieve their full potential.

Staff surveyIn February 2009 we initiated a comprehensive staff survey system, which will run until 2011. Surveying our staff provides valuable insights into staff views on working in FaHCSIA and supports the design of organisational and local workforce strategies.

Our people11

228 FaHCSIA Annual Report 2008–2009 Part3 Corporate governance

Leadership and capability developmentFaHCSIA continues to invest in leadership and capability development through a suite of training programs. This year we developed a new Executive Level 2 Effective Management Skills one‑day program, which began in March 2009.

FaHCSIA diversity planFaHCSIA is currently developing a new diversity plan. Focus groups with staff have been held across FaHCSIA. The final plan will support a workforce that values and embraces the diversity of our people.

In 2008–09 the Department introduced cultural appreciation and mentoring programs that aim to develop a greater knowledge and appreciation of Aboriginal and Torres Strait Islander culture and provide a mentoring resource for Aboriginal and Torres Strait Islander staff.

We have also implemented a program for staff who are interested in mentoring staff members with disability.

Who we areFaHCSIA is a dynamic and diverse department. Our workforce consists of staff in a Canberra‑based National Office and a network of staff in states and territories.

We have around 3,300 staff throughout Australia, of whom approximately 66 per cent are female and 34 per cent are male.

FaHCSIA’s staff work in 63 branches and our Network across Australia, developing social policy, researching and analysing important and emerging issues, and developing and delivering programs and services. See pages 214–215 for a chart showing our organisational structure.

Our NetworkApproximately 820 staff are in the FaHCSIA national network, operating from capital city offices, regional offices or Indigenous Coordination Centres. Additional staff are based in remote Indigenous communities mainly in the Northern Territory as Government Business Managers and Indigenous engagement officers.

The Network is the operational arm of FaHCSIA. Network staff deliver critical support to portfolio Ministers and the Department by contributing to the design of government programs, providing environmental scanning, identifying areas of need and reporting

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Charities talk about FaHCSIA staff donations making a differenceFaHCSIA launched the Workplace Giving Program in June 2007, and since then many communities have benefited from the generosity of staff contributions. Workplace giving enables staff to make small, effective and regular donations through payroll deductions.

FaHCSIA staff donations have made a big difference to supporting the programs that give vital support to communities, as the following two stories illustrate.

This year, thanks to FaHCSIA’s workplace giving donations, the Smith Family has been able to expand its Learning for Life program, which supports more than 27,000 students, providing them with access to personal development activities such as financial and digital literacy courses, homework clubs and mentors, as well as a host of life‑changing learning opportunities.

The MARANGE Orphanage, supported by the ZOPOM Foundation, not only provides a home for abandoned orphans, but is also the principal employer/institution in the region. The institution employs more than 80 people, including abused and abandoned women, who work directly in the orphanage, and locals who run agricultural activities, including growing vegetables and grain and cultivating an orchard.

230 FaHCSIA Annual Report 2008–2009 Part3 Corporate governance Chapter 11 Our people

on the implementation of programs. They implement many government programs and maintain effective relationships with key partners and stakeholders.

During 2008–09, the Network played a key role in negotiations and consultations with stakeholders in COAG national partnership discussions; managing the Community Development Employment Projects reform, land reform and income management; and supporting government responses to natural disasters, including the Victorian bushfires and floods in Queensland. The network had some 4,000 funding contracts under management, ranging from contracts worth several million dollars to very small community‑based grants, and representing administered funding in excess of $1.1 billion.

Indigenous Coordination CentresThe Network includes 30 Indigenous Coordination Centres across Australia which engage with Indigenous people and act as the coordination point for many of the Government’s programs assisting Indigenous peoples. The centres are multi‑agency units, combining coordination, planning and service functions and housing staff from several departments responsible for various Indigenous programs.

The centres oversee the local delivery of many of the Australian Government’s programs assisting Indigenous people. They also broker innovative and flexible whole‑of‑government solutions to the needs of Indigenous people using both specific and general funding.

Government Business ManagersFaHCSIA has more than 50 Government Business Managers in the Northern Territory working closely with the Indigenous Coordination Centres. They are responsible for leadership, strategic oversight, management and coordination of Australian Government services provided in Indigenous communities and several town camp regions. They work with relevant agencies to maximise benefits to the community.

Indigenous Engagement OfficersThroughout 2008–09 the Department employed and trained 21 Indigenous Engagement Officers (IEOs) to work within selected Northern Territory communities. All IEOs are members of the community in which they work, or are accepted by the community. Their role is to provide feedback about the measures of the Northern Territory Emergency Response between their community and government; promote the community’s role in defining needs, setting goals and formulating policies and plans; and work with community groups to bring about greater community input into Government decision‑making. IEOs have received training in personal leadership, as well as specialised training in community engagement tools, technique and theory to ensure they are best‑placed to represent the needs of their communities.

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Supporting our peopleFaHCSIA has a set of strategies to support and develop staff, including a staff survey, a people strategy, leadership and capability development, networks and services to support diversity, Indigenous staff and staff with disability, workforce planning and an occupational health and safety strategic plan.

Our staff surveyIn February 2009, FaHCSIA initiated an integrated approach to staff surveying to increase organisational awareness of staff views about working in FaHCSIA. Staff surveys provide an effective evidence base to support the achievement of the outcomes of our people strategy and deliver effective corporate and enabling services to the Department.

The staff survey system will run until 2011 and includes annual staff surveying, six‑monthly pulse surveying of staff engagement, and entry and exit surveying. The results of the staff surveys will be reported on a six‑monthly basis in May and November each year in order to support the design of organisational and local workforce strategies and to monitor their effectiveness.

The first survey was conducted between 16 and 27 February 2009 and there was a very high participation rate—86 per cent of staff responded. The survey showed that staff have a positive view of the FaHCSIA work environment, with around three‑quarters of staff satisfied overall with FaHCSIA and their jobs.

Figure 3.3 shows the results for the survey questions on staff satisfaction with their current job and with FaHCSIA as an employer.

Figure 3.3 Overall satisfaction with current job and with FaHCSIA as an employer

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Very dissatisfied

Dissatisfied

Neither satisfied nor dissatisfied

Satisfied

Very satisfiedq58.

Considering everything, how would you rate

your overall satisfaction with FaHCSIA as an

employer? (n=2515)

q25. Considering everything,

how satisfied are you with your current job?

(n=2554)

Very satisfied Neither satisfied nor dissatisfiedSatisfied Dissatisfied Very dissatisfied


Staff rated many key aspects of the FaHCSIA workplace favourably, including team performance and relationships, performance of supervisors, utilisation of their skills, clarity of their goals and the performance of leaders.

Many of FaHCSIA’s staff survey results were well above average when compared to similar large Australian Public Service (APS) agencies. These included staff recognition, appropriateness of workloads, team relationships and performance, career development, internal communications and Executive Management Group performance.

While opportunities for career development were above average when compared to other APS agencies, the survey highlighted that there was still some room for improvement within FaHCSIA. The survey also highlighted other areas for improvement, such as recruitment and selection and sharing of information between areas.

The top 12 drivers of overall staff satisfaction, engagement and organisational commitment were found to be (in order of the importance of their impact):

intrinsic rewards from current job ◗

career progression ◗

job–skills match ◗

work–life balance ◗

diversity and equity ◗

autonomy and empowerment ◗

Executive Management Group performance ◗

goal clarity ◗

recognition and feeling valued ◗

record keeping ◗

IT and information systems ◗

team performance and relationships. ◗

Future directions: our people strategyThe FaHCSIA People Strategy 2009–2010: Great People, Great Future has been developed to support the Department’s strategic framework.

We developed the strategy to achieve two key outcomes: to create a great place to work and to generate a strong performance culture. The strategy provides clear guidance on how each member of staff can contribute to achieving those outcomes.

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Implementation of the strategy will enable FaHCSIA to continue to attract people to the organisation and to develop, support and retain them. It will also ensure that our existing staff are supported to achieve their full potential.

Leadership capabilityFaHCSIA has a strong commitment to enhancing leadership capability among our staff. All Senior Executive Service (SES), Executive Level 2 (EL 2) and Executive Level 1 (EL 1) staff, including staff from regional and remote areas, are encouraged to attend the FaHCSIA Leadership Program.

The Leadership Program is delivered through:

skills‑based workshops for EL and SES staff (43 participants in 2008–09) ◗

a two‑day residential program for EL staff and branch managers, focusing on a current ◗

strategic theme (94 participants in 2008–09)

external leadership development opportunities provided by the Australian and ◗

New Zealand School of Government and the Australian Public Service Commission.

In 2008–09, in recognition of the challenges staff face in managing workloads in an increasingly complex environment, the Department developed a one‑day Effective Management Skills Program. The program is aimed at EL 2 staff and provides participants with practical tools and templates to apply in the workplace, as well as helping to build confidence in their management skills. It covers topics such as management in the FaHCSIA context, role clarity, developing and engaging staff and managing change. This program began in March 2009.

Capability developmentFaHCSIA has a suite of training programs that address organisational and individual capability needs. These programs are conducted in house and are delivered in national and state office locations. The training programs include Financial Management, Writing to and for the Minister, Project Management, Stakeholder Management, Working with Commercial Contracts, Working with Funding Agreements, Understanding your Accountabilities, and Policy Development and Advice.

A key focus for capability development in the Department during 2008–09 was supporting the development of APS 5, APS 6 and EL 1 staff. A range of accredited training programs were conducted over a three‑month period, and on successful completion, staff were awarded either a Certificate IV in Government (19 employees gained accreditation), Diploma of Government (37 employees gained accreditation) or Diploma of Government—Contract Management (40 employees gained accreditation).

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The FaHCSIA People Strategy 2009–10The FaHCSIA People Strategy 2009–10: Great People, Great Future provides a responsive workforce strategy to enable the Department to deliver the Government’s agenda through 2009–10 and beyond. It sets out FaHCSIA’s strategy for attracting, retaining and developing staff in order to deliver the outcomes of the Department’s strategic framework.

The varied and complex nature of work in FaHCSIA, along with the dispersion of FaHCSIA employees, requires an outcomes framework within which each person and part of the organisation has a clear role. This framework assists in making FaHCSIA a great place to work with a strong performance culture.

The key objectives of the strategy are:

effective and efficient human ◗

resource services

people resources aligned to ◗

business objectives

an attractive and flexible ◗

employment framework

a healthy and safe work ◗

environment

evidence‑based decision making ◗

ethical and respectful staff ◗

effective leadership ◗

effective performance management ◗

effective capability. ◗

Achievement against the objectives of the strategy will be regularly measured to monitor progress and an evaluation review of the strategy will be conducted in 2010.

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Online trainingThe FaHCSIA e‑learning system provides staff with a suite of flexible online learning options to develop their capability needs. The current e‑learning programs include Customer Service, Performance Management, Induction, IT and Protective Security, Disability Awareness, Communication, Occupational Health and Safety, Eliminating Workplace Discrimination and Harassment, and APS Values and Code of Conduct.

E‑learning provides an accessible, consistent and cost‑effective option for delivering training programs to FaHCSIA staff.

Individual performance managementPerformance management in FaHCSIA is an ongoing process of regular, constructive feedback and honest communication between a manager and an employee. The performance management process is supported by an online system.

Our approach to individual performance management is to provide managers and employees with opportunities to identify, discuss, review and plan for performance, and ensure links with business outcomes through clear expectations and capability development. Regular feedback conversations, as part of everyday work practice, are fundamental to building a high‑performing culture.

FaHCSIA collective agreement and individual industrial instrumentsThe development of a new FaHCSIA collective agreement started in June 2008 after a majority of staff expressed a preference for a union collective agreement to replace the existing collective agreement.

After extensive management consultation with staff and negotiation with the Community and Public Sector Union and the Media, Entertainment and Arts Alliance, a proposed new agreement went to a staff ballot and 93 per cent of staff who voted supported it.

The Workplace Authority approved the FaHCSIA Collective Agreement 2009–11 on 7 January 2009 and it commenced on 14 January 2009.

SES employees can negotiate individual remuneration and conditions, which are authorised by determinations made under section 24(1) of the Public Service Act 1999. Non‑SES employees can negotiate individual remuneration and conditions to supplement FaHCSIA collective agreement provisions under the agreement’s flexible remuneration and conditions clause.

For further information on the collective agreement and individual industrial instruments, see Appendix 2 of this report (page 307).

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Staff in Focus — Anura SamaraFaHCSIA staff member Anura Samara is both a Section Manager in the Department’s Budget Development Branch and also dons his hat as a volunteer fire‑fighter with the ACT Rural Fire Service (RFS).

After joining the service in 2001, Anura has fought fires around the Australian Capital Territory, including the January 2003 fires, as well as taking part in deployments to fires in New South Wales. In February 2009, Anura was a member of the first ACT contingent of fire‑fighters that was sent to Victoria following their bushfires.

In addition to fire‑fighting, the ACT RFS provides opportunities to educate the community about fire preparedness and risks, take up ongoing skills development, train new recruits and to exercise leadership. Anura has also passed his passion for fire‑fighting to his 17‑year‑old son, who is a new recruit.

FaHCSIA recognises the important part that volunteers play in the community and supports them in their efforts. This support includes providing for both paid and unpaid leave for staff to participate in a variety of volunteering activities.

‘Volunteer fire‑fighting has allowed me to develop skills in leadership, team work, planning and resource management. The reward is being able to help the community’, says Anura.

For further information on how to become a volunteer for ACT RFS, visit www.rfs.act.gov.au.

Volunteer fire-fighter and FaHCSIA staff member Anura Samara in action

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Staff recognitionStaff recognition is guided by our Reward and Appreciate our People Strategy. The strategy provides for formal and informal recognition and highlights the importance of awards at the local level.

As well as participating in external, government‑wide award schemes, we also have our own Secretary’s Awards to recognise contributions and achievements. At the local level, awards can be presented to members of work teams and project teams.

Informal recognition is provided on the job, between a manager and their staff, through individual performance feedback. This is a critical level of recognition and one that is promoted through FaHCSIA’s corporate culture.

DiversityFaHCSIA is committed to inclusive workforce strategies that support diversity in the workplace. We provide opportunities for staff to participate in various networks or interest groups including the Aboriginal and Torres Strait Islander Staff Network, the Carers Network and the FaHCSIA Leadership disAbility Group. The Department continues to coordinate the APS Diversity Network, which meets quarterly to share diversity best practice across the public service.

FaHCSIA Diversity PlanThe FaHCSIA Diversity Plan—Making it real is our plan of action for creating and supporting a workplace that values and embraces the diversity of our people. It builds on the diversity commitment made in FaHCSIA’s Values and Leadership Model. It is a plan for creating opportunities and developing shared values and ways of behaving. A new plan is currently being developed. Focus groups were held across FaHCSIA to ensure that all staff had the opportunity to provide their ideas for inclusion to the new plan.

Commitments to Indigenous staffFaHCSIA has significant responsibility for Indigenous affairs and recognises the richness of Aboriginal and Torres Strait Islander cultures and the unique skills and knowledge that Aboriginal and Torres Strait Islander staff bring to our workplace.

FaHCSIA has a higher proportion of Aboriginal and Torres Strait Islander staff than other APS agencies—9.7 per cent of FaHCSIA staff identify as being Aboriginal or Torres Strait Islander compared to the APS average of 2.1 per cent (based on the 2007–08 State of the Service report). This is mainly due to the Department’s portfolio responsibility for Indigenous affairs and our active recruitment and retention strategy and support network for Aboriginal and Torres Strait Islander staff. The FaHCSIA Aboriginal and Torres Strait Islander Recruitment and Retention Strategy positions the Department as an employer

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FaHCSIA’s Reconciliation Action Plan 2008–09FaHCSIA’s Reconciliation Action Plan reflects the importance we attach to making real progress in closing the gap for Indigenous Australians. We see our plan as a means of building positive relationships between Indigenous and non‑Indigenous people.

A significant focus of our plan has been to ensure that our policies and programs are accessible to Aboriginal and Torres Strait Islander peoples. We recognise that to achieve this, Indigenous and non‑Indigenous staff must work together to share knowledge and expertise and use it to effectively consult and engage with Indigenous communities.

We are proud of the progress we have made in implementing our 2008–09 plan, with 14 out of 15 actions achieved.

Photo above: The 2009–2011 FaHCSIA Reconciliation Action Plan working group. Pictured (left to right): Robyn Forester, Peter Bass, Jennifer Pitcher and Jim Ramsay. Not pictured: Anne Davies, Judith Davis-Lee, Bridget Dowling, John Gibbs, Sia Gilmore, John Glynn, David Henri, Benny Mills, Trish Mu, Abby Phillis, Lorraine Rogge.

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of choice for Aboriginal and Torres Strait Islander people. Through this strategy the Department demonstrates our commitment to Aboriginal and Torres Strait Islander staff by promoting career and development opportunities for them.

In 2008–09 the focus has been on retention of Aboriginal and Torres Strait Islander staff through establishing effective networks where staff can support each other in a culturally safe environment. This year the Department introduced a culturally appropriate mentoring program that provides training to mentors and, following this skills development, enables all Aboriginal and Torres Strait Islander staff to self‑select a mentor from those trained.

We also implemented a Cultural Appreciation Program, which aims to develop a greater knowledge and appreciation of Aboriginal and Torres Strait Islander culture across the Department. This program is delivered by fully trained Aboriginal and Torres Strait Islander FaHCSIA staff, and builds the capacity and capability of staff to ensure that our workforce better understands Aboriginal and Torres Strait Islander issues.

Support for staff with disabilityFaHCSIA has successfully achieved seven of the eight objectives outlined in recommendations made by the Management Advisory Committee (MAC) 6 report, Employment of People with Disability in the APS. One of the examples of our commitment to the report is the establishment of the role of a Senior Level Advocate for Staff with Disability, which is held by a FaHCSIA Deputy Secretary.

FaHCSIA has a higher number of staff with disability than any other APS agency—5.3% of our workforce identifies as a person with a disability compared to the APS average of 3.1% (based on the 2007–08 State of the Service report). This is due to FaHCSIA’s portfolio responsibility for disability issues and the strong networks and support services we provide to staff with disability. FaHCSIA is one of a few APS agencies to have a designated position of Disability Access Coordinator. We also provide centralised funds that can be used by staff with a disability for equipment and technology under the Reasonable Adjustment Policy.

The Department continues to consult regularly with staff on disability issues, including through the FaHCSIA Leadership disAbility Group (FLAG). FLAG membership is open to all interested staff, with or without disability. The group’s objective is to identify and address workplace issues affecting employees with an injury, illness or disability. FLAG aims to:

make a difference on strategic issues and overcome systemic barriers ◗

focus on attracting, recruiting and retaining staff with a disability ◗

work on these issues in positive and constructive ways through the encouragement ◗

of best‑practice approaches to peer support, career boosting, buddying, coaching and mentoring.

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The FaHCSIA Leadership disAbility GroupThe FaHCSIA Leadership disAbility Group (FLAG) was formed to advance the status of employees with disability across the Department. The group has around 15 core members, with and without disability, including staff from some state offices.

FLAG works to build FaHCSIA’s leadership in this area, using the valued knowledge and experience of staff. It also reflects FaHCSIA’s commitment to being an employer of choice for staff with disability.

The establishment of FLAG was announced on 3 December 2008 by Deputy Secretary Geoff Leeper, FaHCSIA’s Senior Level Advocate for Staff with Disability. This announcement was made as part of the Department’s celebration of the UN International Day of People with Disability.

FLAG has held a number of meetings, where the group received in‑principle agreement to issue a department‑wide ‘call to action’. The call focuses on encouraging staff to identify, initiate and share information about steps to promote the inclusion of staff with disability.

In conjunction with the call to action, FLAG released a fact sheet, ‘10 things we can each do TODAY to be more disability aware in FaHCSIA’, which provides employees with ideas for action to improve disability awareness in the workplace. Responses to the call to action will be shared through a new online community to encourage continuing improvement and innovation.

Photo above: Members of the FaHCSIA leadership disAbility group.

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FaHCSIA also has a mentoring program for staff who are interested in mentoring staff members with disability. Two training sessions were held in 2008–09, and further sessions are planned for 2009–10.

Workforce planningThe FaHCSIA People Strategy is informed by regular data collection and analysis. Each quarter, the People Branch develops a human resources metrics report that is provided to the Executive Management Group and the People Committee. The report contains numerical and trend data and analysis to support decision making. The information is also used by the human resources advisory team to provide support in operational areas in:

understanding the factors affecting their workforce ◗

quantifying the staff supply and demand factors affecting the delivery of ◗

departmental outcomes

developing staff attraction, retention and development strategies to meet ◗

workforce requirements.

Staff turnover and retentionThe Department’s voluntary separation rate in 2008–09 was 11.72 per cent (14.70 per cent in 2007–08). These figures do not include staff who separated from the Department due to end of contract or redundancy. The InfoHRM (a benchmarking service subscribed to by a number of APS agencies) target benchmark for APS agencies in 2008 was 10.73 per cent and the median was 13.34 per cent. The lower separation rate in 2008–09 was due to a combination of the increased attractiveness of FaHCSIA as an employer and the decrease in employment opportunities in the public and private sectors.

Maximising attendanceIn 2008–09, there were 12.96 days of unscheduled leave per full‑time equivalent (FTE) employee. This included an average of 9.98 days of sick leave, 1.93 days of carers’ leave, 0.62 days of miscellaneous leave and 0.43 days of workers’ compensation leave per FTE employee. The level of unscheduled leave in FaHCSIA is being monitored and addressed through the development and implementation of the FaHCSIA Maximising Staff Attendance Strategy.

The InfoHRM target benchmark for APS agencies in 2008 was 11.57 days per FTE employee and the median was 12.41 days per FTE employee.

Figures 3.5 and 3.6 respectively show four‑year trends in unscheduled absences and unscheduled absences by leave type per FTE FaHCSIA employee.


Figure 3.4 Unscheduled absences per employee (FTE), 2005–06 to 2008–09

Figure 3.5 Unscheduled absences per employee (FTE) by leave type, 2005–06 to 2008–09

0

2

4

6

8

10

12

14

2008–092007–082006–072005–06

Year

Days

0

2

4

6

8

10

Workers' compensation

Miscellaneous

Carers

Sick

2008–092007–082006–072005–06

Year

Days

MiscellaneousCarers Sick Workers' compensation

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Workplace health and safetyManaging depression in the workplaceIn 2008–09, FaHCSIA continued to deliver workshops across Australia for managers and staff under the beyondblue National Workplace Program. Workshops on managing depression in the workplace enhanced managers’ knowledge about the impact of these disorders on individuals, the workplace environment and the organisation. Awareness to Action workshops raised awareness of the signs and symptoms of depression. The workshops aim to provide participants with the necessary skills to intervene early and respond appropriately to help a staff member who may be suffering from depression.

Eliminating bullying and harassment in the workplaceFaHCSIA is committed to supporting a workplace culture free from bullying and harassment.

We have a network of harassment contact officers located in the National Office, state offices and Indigenous Coordination Centres. These officers are trained to provide support and information to staff and managers on bullying and harassment issues.

We are using the findings of an internal audit of the promotion, management and assurance of ethical behaviours in FaHCSIA and the results of the 2009 FaHCSIA staff survey to refine and target our strategy to eliminate bullying and harassment. The strategy includes delivering a range of awareness‑raising, educational and training courses to managers and staff. The FaHCSIA People Committee regularly evaluates the ongoing effectiveness of the strategy.

Occupational health and safetyFaHCSIA acknowledges the responsibilities we have as an employer under the Occupational Health and Safety Act 1991 (OHS Act) and the Safety, Rehabilitation and Compensation Act 1988 and we are committed to the health and safety of our employees, contractors and visitors. We recognise the importance of taking a proactive approach to improving the health and safety of our employees.

Health and Safety Management ArrangementsIn December 2007, FaHCSIA implemented the Health and Safety Management Arrangements, which were developed in consultation with staff. In June 2008, the Blunn Report examined the circumstances surrounding the presence of formaldehyde in container accommodation used by Northern Territory Emergency Response government business managers. The report recommended a review of OHS governance arrangements in the Department.


In response to the report’s findings, the Department developed a strategic plan for managing OHS to help support the framework set out in the Health and Safety Management Arrangements. This two‑year strategic plan was launched in December 2008 under the theme Building a Safety Culture. It is aimed at ensuring legislative compliance, providing a supportive workplace for return to work following injury or illness, developing a participatory approach to OHS planning, and developing an integrated OHS risk management system.

The two‑year strategic plan consists of 25 national OHS initiatives under three major elements:

an OHS framework ◗

a health and wellbeing initiative ◗

an injury management protocol. ◗

We have already achieved significant progress against 20 of the 25 national initiatives included in the two‑year plan.

The Health and Safety Management Arrangements have been redrafted to reflect the governance arrangement recommended by the Blunn Report and included in the OHS strategic plan. In June 2009, we initiated consultations with all staff on the new arrangements.

Health and safety initiativesIn 2008–09, FaHCSIA’s activities to ensure the health, safety and welfare at work of our employees, contractors and visitors included:

vaccinating 1,010 staff under the influenza vaccination program, a 35 per cent increase ◗

on 2007–08

conducting over 500 workstation assessments nationally ◗

conducting OHS training nationally for 616 staff ◗

re‑establishing OHS committees under new terms of reference in FaHCSIA state offices ◗

implementing a nationally consistent process for management and rehabilitation for ◗

compensable and non‑compensable injury and illness

completing a refresh of all first‑aid kits. ◗

Health and safety outcomesIn November 2008, Comcare lifted the improvement notice that was applied to the Department in September 2007. The notice required the Department to address issues relating to meeting our obligations under the OHS Act. The notice was lifted following the

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implementation of processes to identify, assess and control hazards relating to the work undertaken by the Department.

To meet organisational OHS targets, in 2008 we implemented an initiative to assist in the reduction of the time taken (measured in weeks) from notification of injury or illness to initial rehabilitation intervention. This initiative has resulted in a 41 per cent reduction in the number of weeks from notification of injury or illness to initial rehabilitation intervention, compared to 2007–08.

Statistics of any accidents or dangerous occurrence under section 68During 2008–09, the injury frequency rate was 6.24 injuries per 100 employees. Eight of the reports required the giving of notice to Comcare under section 68 of the OHS Act.

Investigations under Part 4 of the OHS ActComcare undertook two investigations under Part 4 of the OHS Act in 2008–09, and completed one.

Occupational health and safety reportFaHCSIA is required under section 74 of the OHS Act to provide a report on occupational health and safety activities and statistics on all notifiable accidents and dangerous occurrences under section 68 and investigations and notices under sections 29, 46 and 47 (see Table 3.3).

Table 3.3 Notifiable accidents and dangerous occurrences under the OHS Act, 2008–09

Action Number

Deaths that required notice to Comcare under section 68 0

Accidents that required notice to Comcare under section 68 3

Dangerous occurrences that required notice to Comcare under section 68 5

Investigations conducted under Part 4 2

Tests on plant, substance, or thing in the course of investigations considered 0

Directions given to FaHCSIA under section 45 (that the workplace etc. not be disturbed) 0

Notices given to FaHCSIA under section 29 (provisional improvement notice) 0

Notices given to FaHCSIA under section 46 (prohibited notice) 1

Notices given to FaHCSIA under section 47 (improvement notice) 0

246 FaHCSIA Annual Report 2008–2009 Part3 Corporate governance Chapter 12 Our stakeholders

Our stakeholders at a glanceFaHCSIA is committed to achieving the best possible outcomes for all Australians. To do so, we engage with a broad range of stakeholders through consultations and advisory forums, research partnerships, contract management and other avenues.

We are committed to supporting open communication and active engagement with our stakeholders, who include:

our Ministers and Parliamentary Secretaries ◗

other Australian Government departments and agencies ◗

state and territory governments ◗

local government ◗

foreign governments ◗

businesses ◗

the not‑for‑profit community sector ◗

peak representative organisations ◗

service providers ◗

research bodies ◗

individuals, families and communities. ◗

Developing open and strong relationships with our stakeholders is central to being able to achieve departmental outcomes. These relationships open the way to exchanging ideas and perspectives from which effective policies and processes can be developed.

Our approach to engaging with our stakeholders recognises the significant skills, expertise and experience that communities can contribute to the design and delivery of programs and services that seek to improve the lives of Australians.

Our stakeholders12

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Chapter 12 Our stakeholders Part3 Corporate governance FaHCSIA Annual Report 2008–2009

Ministerial and parliamentary servicesFaHCSIA delivered services to two portfolio Ministers and two Parliamentary Secretaries in 2008–09: the Hon. Jenny Macklin, MP, Minister for Families, Housing, Community Services and Indigenous Affairs; the Hon. Tanya Plibersek, MP, Minister for Housing and Minister for the Status of Women; the Hon. Bill Shorten, MP, Parliamentary Secretary for Disabilities and Children’s Services and Parliamentary Secretary for Victorian Bushfire Reconstruction; and Senator the Hon. Ursula Stephens, Parliamentary Secretary for Social Inclusion and Parliamentary Secretary for the Voluntary Sector.

Support to Parliament and MinistersMinisterial correspondence increased from 29,786 items in 2007–08 to 32,473 in 2008–09. FaHCSIA and its portfolio agencies prepared a total of 3,287 ministerial minutes and 1,616 requests for briefing from Ministers and Parliamentary Secretaries.

The portfolio received 108 parliamentary questions on notice and 987 Estimates questions on notice. The portfolio prepared 1,713 question time briefs.

Table 3.4 provides information on all ministerial and parliamentary services data that has individual performance indicator reporting requirements to measure trends as set out in the Department’s 2008–09 Portfolio Budget Statements.


Table 3.4 Ministerial and parliamentary services—number of briefings, submissions, items of ministerial correspondence and parliamentary questions on notice, 2008–09

Ministerial correspondence

processedQuestion time briefs1 Briefings2

Submissions minutes3

Parliamentary questions on

notice

Estimates questions on

notice

Outcome 1: Greater self-reliance and economic, social and community engagement for Indigenous Australians

3,532 438 419 1,204 22 225

Outcome 2: Seniors, people with disabilities, carers, youth and women are supported, recognised and encouraged to participate in the community

12,170 480 615 833 9 252

Outcome 3: Families and children have choices and opportunities

3,619 188 98 413 2 90

Outcome 4: Strong and resilient communities

3,860 465 396 460 15 243

Non-output-specific

9,292 142 88 377 60 177

Total

32,473 1,713 1,616 3,287 108 987

1. These figures include both new question time briefings and those that have been substantially revised.2. Ministerial minutes requested by the Ministers and Parliamentary Secretaries.3. Ministerial minutes initiated by departmental officers for the attention of Ministers.

Ministerial CouncilsThe Department has primary administrative responsibility for supporting ministerial participation in a range of Ministerial Councils and other forums including:

Australian Health Ministers’ Conference ◗

Commonwealth, State, Territories and New Zealand Ministers’ Conference on the ◗

Status of Women

Community and Disability Services Ministers’ Conference ◗

COAG Working Group on Indigenous Reform ◗

Housing Ministers’ Conference ◗

Ministerial Conference on Ageing ◗

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Ministerial Council for Education, Early Childhood Development and Youth Affairs ◗

Ministerial Council on Gambling ◗

Ministerial Council for Tertiary Education and Employment. ◗

Working with other government agenciesThe Department develops and maintains strategic relationships with other government agencies, including Centrelink and the Departments of Human Services and Education, Employment and Workplace Relations.

These relationships support FaHCSIA’s effective participation in cross‑government policy development and improve payment integrity and service delivery.

For the payment side of our business, this collaboration includes:

providing the key contact point between FaHCSIA, the Department of Human Services ◗

and Centrelink

monitoring of the Business Partnership Agreement between FaHCSIA and Centrelink ◗

(see pages 285–286)

management of the Random Sample Survey program and FaHCSIA’s ongoing compliance ◗

measures (see page 287)

undertaking research to identify risks to outlays for those FaHCSIA programs that are ◗

delivered by Centrelink and the development of appropriate cost‑effective measures to address these risks

coordinating FaHCSIA’s involvement with the Social Security Appeals Tribunal. This ◗

includes managing our relationships with the tribunal, providing advice to it and facilitating the appointment of its members.

Working with the community sectorFaHCSIA manages funding relationships with a large number of community sector organisations. The Department has continued to improve the way it manages its grants programs to ensure consistent, efficient and effective administrative processes within and across programs through the new Common Business Model for Grants Management. For more information on this model, see page 258.

The Commonwealth Government has a wide‑ranging agenda to develop the community sector, including a review of the social and economic contribution of the not‑for‑profit sector in Australia and the ongoing work to harmonise regulations and reduce red tape for the sector through COAG.


Through FaHCSIA, the Government provides in excess of $1.5 billion in essential support to non‑government community services organisations around Australia, enabling the sector to provide much‑needed support and assistance to individuals and families in local communities. This annual report details the outcomes of these programs, which include:

emergency relief that provides immediate assistance to families in distress ◗

family relationship and support services ◗

parenting, youth and early childhood ◗

disability employment assistance and advocacy ◗

addressing homelessness ◗

money management training ◗

mental health and autism ◗

carer respite ◗

targeted programs to meet the needs of Indigenous people. ◗

FaHCSIA’s support for community‑based organisations enables the sector to do essential work, which will at some time assist almost every Australian family.

The delivery of many of these services is changing from silo approaches, where initiatives are delivered in isolation, to approaches that strive to wrap around individuals and families and provide seamless access to support with less red tape.

At the same time, especially in rural and remote Australia, FaHCSIA, in partnership with other agencies and levels of government, is taking an evidence‑based approach to identifying service gaps and developing local solutions in identified locations. This is particularly evident in the COAG work with 29 remote Indigenous communities, where regional operations centres are being established to focus on improved service outcomes, but the approach is also occurring in non‑Indigenous communities with larger populations.

Funding for peak bodiesFaHCSIA provides funding to peak body organisations to contribute to government policy and act as an effective conduit for information flow between the Government and their membership. Table 3.5 illustrates the peak bodies FaHCSIA funds.

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Table 3.5 FaHCSIA support to peak bodies, 2008–09

Peak body Funding ($)*

Australian Council of Social Services 499,694

Australian Federation of Disability Organisations 300,469

Australian Financial Counselling and Credit Reform Association 60,000

Blind Citizens Australia 193,160

Brain Injury Australia 160,966

Community Housing Federation of Australia 241,426

Deaf Australia 193,160

Deafness Forum Australia 193,160

Early Childhood Australia 268,276

Families Australia 268,276

Family Relationship Services Australia 433,925

Homelessness Australia 325,936

Lone Fathers Association 58,984

National Council of Single Mothers and their Children 58,984

National Council on Intellectual Disability 160,966

National Disability Services 268,276

National Ethnic Disability Alliance 160,966

Physical Disability Council of Australia 160,966

Secretariat of National Aboriginal and Islander Child Care 255,828

Volunteering Australia 268,276

Women with Disabilities Australia 160,966

Total 4,692,660

* All amounts are exclusive of GST.


Our Service CharterThe FaHCSIA Service Charter sets out the standard of service that people who deal with the Department can expect and the ways they can help the Department improve service to customers, such as providing feedback. The charter also helps FaHCSIA staff to develop a better understanding of their roles and responsibilities. Further information on the charter can be found on our website.

Complaints Management SystemA new model for handling complaints in FaHCSIA was introduced in 2008–09. The goals of FaHCSIA’s new Complaints Management System are to:

provide our clients with an accessible process that handles complaints in a timely, ◗

professional and consistent manner

provide information to assist FaHCSIA to improve its customer service and ◗

administrative processes.

Under the new system, there is now a complaints‑handling team in National Office. This team provides a central point of contact for clients wishing to express concerns about the Department or one of our funded service providers.

The new team is responsible for recording all incoming complaints. This ensures that we are able to handle complaints consistently and improves our ability to identify and report on systemic issues.

During 2008–09, 93 complaints were registered on the Complaints Management System. This is an increase from last year’s figure of 26. The increase can be attributed to the more consistent recording of complaints received as well as the improved accessibility that the centralised team offers to complainants.

As at 30 June 2009, 85 of these complaints had been resolved and eight were still being actioned.

253Chapter 13 Our enabling strategies Part3 Corporate governance FaHCSIA Annual Report 2008–2009

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Our enabling strategies at a glanceOur enabling strategies consist of those elements that provide future direction, good governance, a sound evidence base and various internal controls that support information security and quality outcomes. We also have operational strategies that support our commitment to ecologically sustainable practices and improvement.

Planning for the futureFaHCSIA develops business plans at the beginning of the financial year to establish business objectives, align priorities with available resources and prepare for opportunities and challenges that may arise. We have identified a set of five corporate strategic risks. We take these risks into consideration within the business planning process and plans, along with other specific risks.

Our Executive Management Group recently endorsed a Common Business Model for Grants Management, which applies a risk‑based approach to improving program impact, efficiency and accountability.

Environmental managementEnvironmental management and performance in the Department covers such components as contributing to development of the Carbon Pollution Reduction Scheme, incorporating ecologically sustainable development principles in our use of water, energy and transportation and our handling of waste, sustainability reporting, and the development of our Environmental Management System.

ResearchFaHCSIA’s research publication series continued its contribution to the social policy evidence base and provided a record of findings from research and evaluation projects. During 2008–09, six occasional papers, three social policy research papers, one issue of the Australian Social Policy Journal and one statistical paper were published.

Our enabling strategies13

254 FaHCSIA Annual Report 2008–2009 Part3 Corporate governance

Information management and technologyDuring the last 12 months a number of key information and application projects and services were delivered, including:

the migration of applications and infrastructure supporting Indigenous Coordination ◗

Centres from the Department of Education, Employment and Workplace Relations

improvements to the whole‑of‑department electronic document and records ◗

management system

commencement of the Integrated Reporting Solution project, which will consolidate data ◗

into one source for reporting and analysis.

Planning for the future

Business planningBusiness planning is the process that defines our required business outcomes and current priorities at all levels within the Department. Effective business planning is critical to ensuring that we are able to meet the Government’s expectations and achieve the Department’s key objectives (see page 2).

We develop business plans at the beginning of the financial year to establish business objectives, align priorities with available resources and prepare for opportunities and challenges that may arise. We integrate business planning and risk management by including risk plans in business plans. We review plans formally midway through the year and update them throughout the year in response to changes to the business environment and emerging business priorities, issues and risks.

Business planning provides a line of sight from the FaHCSIA Strategic Framework 2008–10 through to individual performance agreements. The business priorities and activities articulated in the strategic framework cascade into group, branch and state office plans. Individual performance agreements entered into by FaHCSIA staff with their respective managers are linked to the priorities of their respective business plans. Further information on performance agreements can be found in Chapter 11.

Business monitoringWe monitor our business by measuring our performance, reporting on the status of our projects and managing risks.

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Chapter 13 Our enabling strategies Part3 Corporate governance FaHCSIA Annual Report 2008–2009

Performance frameworkFaHCSIA has implemented a standard performance framework that provides a clear line of sight between monitoring and reporting the performance of individual funded services, overall program performance and the contribution of these programs to the achievement of FaHCSIA outcomes.

Risk‑based decision‑making will drive the way we do business in terms of the agreements we use, and the monitoring of service delivery and quality. For example, the new suite of plain English streamlined funding agreements is an integral reform under the Common Business Model for Grants Management, see page 258.

Risk managementFaHCSIA’s risk management policy, guidelines and tools are based on the Australian and New Zealand Risk Management Standard 4360:2004.

We have invested considerable effort in strengthening our risk management arrangements in recent years. These efforts were formally recognised in November 2008 when FaHCSIA won the Enterprise‑Wide Risk Management category in Comcover’s annual Awards for Excellence in Risk Management.

Strategic risk managementThe executive has identified five strategic risks (covering programs, policy, compliance, workforce and whole‑of‑government) and an Executive Management Group member has been nominated as the owner of each risk. Each owner is supported by groups across the Department with key responsibilities for activities related to each risk.

Reference to the strategic risks is built into the risk plans prepared at every level of the organisation. Offices and business units preparing risk plans are required to specify in their plans the strategic risks to which their identified risks relate.

Broadly, risks in FaHCSIA are managed at each level of the organisation as follows:

strategic risks are identified, treated and monitored at a high level by the executive and ◗

group managers, and operationally throughout the Department

program‑level risks are identified, treated and monitored by branch, section and ◗

state managers

project and other operational risks are identified, treated and monitored by section ◗

managers and their staff.

256 FaHCSIA Annual Report 2008–2009 Part3 Corporate governance Chapter 13 Our enabling strategies

Business continuity planning and managementOur business continuity management aims to ensure that the Department is prepared to deal with any interruptions to our critical service delivery. As part of our commitment to effective risk management, we have developed and maintain robust business continuity plans across all of the Department’s critical business processes and enabling services. These plans support our mission critical activities—the critical services that must continue to be provided to our Ministers, service providers, suppliers, staff and other governments.

In the event of a disaster occurring with potential to significantly disrupt our business, we are well prepared to implement alternative strategies to ensure that our critical business processes continue with minimum interruption.

To ensure our business continuity plans remain valid and effective, we regularly review and test all plans. In addition to this program, half‑day scenario exercises are conducted at least twice a year involving senior executive staff with a designated role on FaHCSIA’s Crisis Response Team. In 2008–09, FaHCSIA conducted scenario exercises in July, August and December 2008.

The Crisis Response Team, chaired by the Deputy Secretary who is also the Chief Operating Officer, has the authority to officially declare a disaster and activate the Department’s business continuity response. The team is comprised of senior executive staff from across all of our critical business areas.

Program frameworkThe Program Performance Group supports and guides FaHCSIA managers in reforming and improving the way we manage programs. The primary goals of these improvements are to:

maximise opportunities for consistency, efficiency and effectiveness in relation to ◗

community services, Indigenous business, whole‑of‑government processes and program delivery

improve how we work within FaHCSIA as one entity ◗

provide better outcomes for service providers. ◗

The Department continued to participate in external cross‑government reviews which had begun in 2007–08. The outcomes of the following reviews have provided the framework for ongoing program improvements:

outcomes review (Operation Sunlight)—to improve the transparency and accountability ◗

of programs and funding; including the redesign of agency Portfolio Budget Statements to provide a more strategic focus and an increased emphasis on agency performance

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FaHCSIA a winner in Comcover awardsOn 7 November 2008, FaHCSIA won the Enterprise‑Wide Risk Management category in the 2008 Comcover Awards for Excellence in Risk Management. The awards recognise exceptional and inspiring examples of risk management and demonstrate how essential risk management is to the success of Australian Government agencies.

The award citation noted that FaHCSIA has undertaken a systematic, coordinated and executive‑led review of departmental risk management practices and procedures. FaHCSIA has also developed a number of methods to communicate and raise awareness of its risk management policy and processes both internally and externally. These include a risk management site on the Department’s intranet, with links to tools and guidance, and regular information and training programs for FaHCSIA staff. FaHCSIA also supports the portfolio’s agencies and service providers in managing risk by sharing those tools and guidance, and by providing other risk management resources on the Department’s website.

As well as the award, FaHCSIA earned a discount of 3 per cent on its annual Comcover insurance premium for 2009–10. The discount was in addition to the 8.7 per cent saving earned as a result of our performance in the 2009 Comcover Risk Management Benchmarking Survey.

Photo above: Departmental officers accepting FaHCSIA’s award at the 2008 Comcover Excellence in Risk Management Awards. Left to right: Josephine Phillips, Meg Hargreaves, Richard Woods, John Shevlin, Will Allan, David Slater, Rakesh Patel, Emma O’Keefe.


program by program review to align policy priorities of government, improve the quality ◗

of expenditure and achieve efficiencies

discretionary grants review—a strategic review of the management and administration of ◗

discretionary grants to improve efficiency, effectiveness, transparency and accountability.

Common Business Model for Grants ManagementThe Common Business Model for Grants Management, endorsed by the Executive Management Group in April 2009, focuses on achieving improvements in program impact, program efficiency and accountability, service provider experience, and understanding of accountabilities.

The model applies a risk‑based approach, which in practice means applying different approaches to controls such as funding agreements, selection, acquittals, reporting, and monitoring.

Deciding on which agreement to use, and the related schedule arrangements, will be determined by a number of factors, including:

risk analysis ◗

the nature of the funding ◗

the funding amount ◗

the type of provider. ◗

The risk levels and treatments included in funding agreements will allow funding agreement managers to focus on monitoring and stakeholder engagement activities, with effort on those risk areas that have the most impact on program outcomes.

The implementation of the model is supported by key reforms and processes, including:

development of new, streamlined funding agreements that use plain English for FaHCSIA ◗

Indigenous and mainstream programs and other Australian Government agency Indigenous programs administered through the Grants Management System

improved training and support for FaHCSIA staff by implementing the Diploma of ◗

Government (Contract Management) and other program specific training

consultation with service providers on accountability reforms ◗

enhancements to FaHCSIA’s funding management system to support new programs and ◗

improve its use by staff and funded organisations

applying a risk‑based approach to funding agreements, acquittals, monitoring ◗

and reporting

development and implementation of program management tools and guidance to better ◗

assist staff in effective program management

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New FaHCSIA funding agreementsFaHCSIA seeks to achieve outcomes for specific target groups and the wider community by providing grants for services, primarily through funding arrangements with the not‑for‑profit sector.

The Hon. Jenny Macklin, MP, Minister for Families, Housing, Community Services and Indigenous Affairs, has reiterated the Government’s commitment to reducing the administrative burden on these service providers.

In line with this commitment and ultimately to improve funding outcomes for all Australians, we have been reforming all our grant‑related administrative practices.

The aim is to achieve a balance between the requirements we place on providers and our responsibility to ensure funds are used effectively.

As a result of consultation with more than 50 funded organisations and other Australian Government agencies, we have implemented a more user‑friendly suite of funding agreements, which will achieve significant reductions in red tape for a large number of our service providers. This includes using plain English for standard terms and conditions, which makes the new agreements around one‑third shorter than previous versions. For the first time, standard terms and conditions will be used across all FaHCSIA Indigenous‑specific programs, as well as by a number of other Commonwealth agencies for these programs.

Many organisations have indicated their support for the new funding arrangements and reporting requirements, endorsing it as a timely and positive initiative.


communication with community service providers through the FaHCSIA Community ◗

Grants Update

ongoing development of a provider engagement strategy to provide a consistent ◗

approach to working with service providers with funding arrangements with the Department.

Environmental managementFaHCSIA has a number of mechanisms in place that underpin better environmental management and performance. These cover such components as contributing to the development of the Carbon Pollution Reduction Scheme, incorporating ecologically sustainable development principles in our use of water, energy and transportation and our handling of waste, sustainability reporting, and the development of our Environmental Management System.

How FaHCSIA’s outcomes contribute to ecologically sustainable developmentIn accordance with section 516A of the Environment Protection and Biodiversity Conservation Act 1999, FaHCSIA supports the principles of ecologically sustainable development through responsibility for the implementation of social policies and social support.

FaHCSIA’s Strategic Policy Branch has responsibility for contributing to the development of the Carbon Pollution Reduction Scheme and of climate change and energy efficiency policies, particularly in respect of their impacts on low income households. Strategic Policy will consult with relevant areas of the Department as these policies develop.

During 2008–09, FaHCSIA has remained committed to the principles of ecologically sustainable development as outlined in the Act.

FaHCSIA integrates these principles into our daily operations by using the sustainability reporting (triple bottom line) approach of environmental, economic, and social sustainability.

Some key measures FaHCSIA has undertaken over during 2008–09 include:

continuing with the development of the Greening FaHCSIA Program (formally the ◗

Environmental Strategic Plan)

reviewing and renewing the Aboriginal and Torres Strait Islander Recruitment and ◗

Retention Strategy 2006–09.

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releasing a report on FaHCSIA’s 2008–09 Reconciliation Action Plan, highlighting the ◗

progress made to date, and the current implementation of the 2009–11 Reconciliation Action Plan. For further information on FaHCSIA’s Reconciliation Action Plan, see page 238.

implementing the Disability Action Plan 2006–09. (For further information on FaHCSIA’s ◗

Disability Action Plan, see page 308.)

Effect of FaHCSIA’s activities on the environmentAs a large government agency with diverse operations being undertaken throughout Australia, the effect of FaHCSIA’s activities on the environment falls into five main categories:

electricity consumption and greenhouse gas pollution ◗

water use ◗

waste generation ◗

paper use ◗

transportation. ◗

Measures FaHCSIA is taking to minimise the impact of its activities on the environmentFaHCSIA is undertaking the following key measures to minimise the impact of its activities on the environment, in an effort to meet the targets set by Government:

when undertaking new building design, refit or refurbishment, or entering into new lease ◗

agreements, FaHCSIA continues to ensure that, where practicable, the premises have the highest possible energy and water efficiencies

where inefficiencies are identified in existing buildings, all possible steps are undertaken ◗

to improve environmental performance

when constructing and commissioning Indigenous Coordination Centres and offices ◗

in regional and remote locations, we use simple and supportable systems to improve energy efficiency

we have ongoing waste reduction strategies at national and state office sites, including ◗

the provision of organic waste facilities in the café at Tuggeranong Office Park

we take environmental sustainability into account when procuring paper, appliances and ◗

pool vehicles

we identify and implement measures to improve energy efficiency, including the ◗

completion of energy audits at a number of our office sites. Measures have also been taken to reduce waste going to landfill, and to reduce water consumption in our office buildings.


During the year, staff were encouraged to consider their individual impacts on climate change through the Earth Hour climate change event.

FaHCSIA has adopted two primary mechanisms to review and increase the effectiveness of these measures:

the Sustainability Report ◗

the Environmental Management System. ◗

Sustainability ReportFaHCSIA will publish its seventh Sustainability Report later this year. The 2008–09 Sustainability Report will again only be published on the FaHCSIA website to reduce our carbon footprint.

The report sets social, environmental and economic commitments for FaHCSIA, and details progress made toward these commitments in the previous reporting period. This assists the Department in monitoring our performance and evaluating opportunities for future improvements, and provides transparency about our wider economic, social and environmental impacts.

Environmental Management SystemFaHCSIA is committed to the ongoing development of our Environmental Management System. This year, the Department achieved recertification of the system, and expansion of its scope to include Tuggeranong Office Park as well as Centraplaza and Juliana House to the new ISO 14001 standard.

We continue to work on our Greening FaHCSIA Program, which identifies areas where significant gains in environmental performance can be made cost effectively, as well as long‑term measures where more significant expenditure can deliver significant and measurable improvements. The program also provides information on our Environmental Communication Plan and Greening IT Strategy.

Other priorities for the Environmental Management System are:

improved collection and monitoring of data on energy use, water consumption and waste ◗

management in all national office buildings

assessment of the effectiveness of current green procurement processes for the ◗

purchasing of paper, furniture, information technology, energy and vehicles.

FaHCSIA’s 2007–08 Sustainability Report and previous triple bottom line reports are available on our website, or by emailing [email protected], or by writing to the Branch Manager, Property Environment and Protective Security Branch, PO Box 7576, Canberra Mail Centre, ACT 2610.

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Building an evidence baseFaHCSIA places a high priority on building a robust evidence base to inform policy and program development. The Department invests in research, evaluation, data and large surveys across its range of responsibilities.

In 2008–09 FaHCSIA increased its focus on sharing findings across the Department to support policy advice and program design, implementation and development.

There has been increased effort during 2008–09 toward developing effective performance indicators and data collection in light of Commonwealth–state reform and the Department of Finance and Deregulation’s Operation Sunlight. Targeted research, evaluation and data investment has supported this work.

Research, evaluation and dataIn 2008–09 FaHCSIA invested in research, evaluation and related data activities across all outcomes. Activities ranged from evaluations focusing on specific program elements through to data holdings to support analysis, and broad research that enabled a better understanding of the social and economic environment.

FaHCSIA’s annual Research and Evaluation Plan was further refined in 2008–09 to more fully capture current and planned activities within the policy environment of our major outcome areas. This and other strategic planning processes were overseen by the Research and Evaluation Committee, a sub‑committee of the Executive Management Group (see page 225).

FaHCSIA continued its research partnerships with research centres at the Australian National University and the University of New South Wales, administered under Social Policy Research Services agreements.

FaHCSIA’s research publication series continued to provide a record of findings from research and evaluation projects. During 2008–09, six occasional papers, three social policy research papers, one issue of the Australian Social Policy journal and one statistical paper were published and FaHCSIA research was published in Australian and international academic journals.

The Household Income and Labour Dynamics in Australia (HILDA) longitudinal survey of Australian households has matured into a highly respected data source, providing information about social connectedness, social capital, disability and housing, and connecting all these elements with income, employment and family dynamics. To date, more than 1,050 users have registered to have access to one or more releases of HILDA.


Growing Up in Australia, the Longitudinal Study of Australian Children, continued to address a range of key questions about children’s development and wellbeing in 2008–09. Information was collected on the children’s physical health and social, cognitive and emotional development, as well as their experiences in key environments, such as the family, community, child care and school settings. In June 2009 a brief questionnaire assessing school transition, parental school involvement, life events, technology use, and puberty was mailed to parents. The study continued its involvement in the ABC Life television series, with an agreement to collaborate on the production of a documentary, Life at 5, signed in June 2009.

The Longitudinal Study of Indigenous Children completed collecting Wave 1 data in 2008 and commenced collecting Wave 2 data from the 1,850 children and families in the study in early 2009. The Wave 2 survey has an enhanced focus on preschool and schooling as a number of the study children in the four to five year cohort have commenced formal education. Qualitative information continues to be collected from families, elders and other community members.

Table 3.6 Number of projects assessed by Research and Evaluation Committee (attributable at outcome level only), 2008–09

Outcome Number

Outcome 1* 5

Outcome 2 21

Outcome 3 23

Outcome 4 54

Cross‑branch 6

* Whole‑of‑government Indigenous projects are scrutinised through Office of Indigenous Policy Coordination processes.

Protective securityThe Department produces, collects and holds a considerable amount of security classified information. It is therefore important for the Department to provide a security environment that protects our employees, information, assets and capabilities.

In November 2008, FaHCSIA undertook an internal audit on the framework and underlying processes, practices and procedures that are directly related to the storage, handling and management of sensitive information, and to identify potential gaps and associated risks to FaHCSIA. The audit report made a number of recommendations to strengthen FaHCSIA’s protective security arrangements.

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The Department has created an Executive Security Working Group to oversee the management of FaHCSIA’s protective, information and IT security functions and to strengthen governance and cross‑branch collaboration in developing and implementing security policy. The working group has assigned lead responsibilities and already addressed many of the audit recommendations.

A National Protective Security Risk Review was completed during the financial year. As a result, work has commenced on rewriting the Department’s Protective Security Plan, along with implementing FaHCSIA’s Departmental Security Instructions.

In 2008–09, FaHCSIA delivered an increased number of security awareness training programs to staff and contractors. These programs addressed a wide range of topics, including information security, physical security, personnel security, and incidents and investigations. Training sessions were delivered to 786 ongoing, non‑ongoing and contracted staff during 2008–09. In addition, an ongoing program of security messages to staff and contractors continued to enhance the organisation’s security awareness.

In 2008–09, FaHCSIA issued, transferred or reviewed 528 national and non‑national security clearances and significantly strengthened contractor access arrangements across the Department.

The Department has implemented a uniform and networked electronic access control system across ACT sites. This has significantly strengthened physical security at these locations. Further planning has commenced with an aim to link access control systems across the wider FaHCSIA Network.

Information management and technologyDuring the last 12 months FaHCSIA’s Information Management and Technology Group delivered a significant number of key information and application projects and services to support the Department, individuals and community organisations.

Migration projectBetween March 2008 and March 2009, a number of systems that support Indigenous business in FaHCSIA and a number of other Commonwealth agencies, including those of the Office of the Registrar of Indigenous Corporations, the Grants Management Program and the Indigenous Coordination Centres, were migrated from the Department of Education, Employment and Workplace Relations. The project was successfully completed without disruption to business and with strong positive feedback from clients. The migration affected 1,451 staff in FaHCSIA and in other agencies supported by the Indigenous systems.


Information and records management systemDuring 2008–09 the Department continued to progress a whole‑of‑organisation approach to physical and electronic information and records management that will enable users to seamlessly create, capture, store, find and manage information across all areas of the business.

The improvements included:

FaHCSIA‑wide implementation of the redesigned system, supported by a comprehensive ◗

communication and training strategy. The system has embedded records management principles that will enable FaHCSIA to manage its electronic information in line with relevant legislation and compliance requirements

implementation of an enhanced corporate phone book and active directory to meet ◗

FaHCSIA’s user management and accessibility needs. These enhancements have automated access to the system to ensure security is guaranteed and intuitive to users

implementation of on‑line management of system workspaces and folders. ◗

This initiative has enabled identified users to manage access to relevant information and self‑help in a number of areas within the system.

Integrated Reporting Solution projectA strategic project to review and consolidate program reporting requirements across the Department, the Integrated Reporting Solution project, began in 2008.

This project lays the foundation for the development of a mature business intelligence environment for FaHCSIA. It maps out the consolidation of data into one source for reporting and analysis to provide the evidence to support policy development and decision making. Reporting requirements for FaHCSIA’s data are complex and, in response, FaHCSIA continues to develop an integrated reporting solution to minimise the effort required to compare data from multiple sources. The project aims to provide this as a key outcome by the end of the 2010–11 reporting period.

Over the course of 2008–09, Phase 1 of this project was completed. Phase 1 delivered four Indigenous reports to meet basic Grants Management System user needs, and will result in the decommissioning of a reporting tool which will help to simplify FaHCSIA’s business intelligence technical environment.

Additional phases of the project will commence in 2009–10, and will continue to deliver processes leading to improved sustainability in the management and use of data assets in line with the One FaHCSIA approach to data and information management.

Specific objectives for 2009–10 include the development of integrated reports from the Grants Management System and the FaHCSIA Online Funding Management System. The project will also consider reporting needs for the Australian Remote Indigenous Accommodation system and the National Indigenous Information System.

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Redevelopment of business systemsDuring 2008–09 FaHCSIA has implemented a number of new systems using Microsoft (MS) SharePoint 2007 and the .Net framework. These new systems have been developed to assist in the efficient delivery of FaHCSIA’s business and address both internal and external processes.

In the past year, FaHCSIA has progressed internal collaboration facilities through the development of SharePoint team sites. These sites provide a single central place to capture and share ideas, information, communication, and documents relevant to a specific target audience. The sites facilitate collaboration within FaHCSIA, particularly where members are not colocated. Team sites can be customised to support a simple business process, and can provide the functionality to develop surveys.

Approximately 50 sites and surveys have been developed within FaHCSIA to support a range of business requirements, including:

a mentors’ network ◗

a secretariat for several committees ◗

a change management process ◗

a network of environmental contacts across all FaHCSIA offices ◗

the Indigenous Staff Network ◗

assistive technology users ◗

parliamentary recordings. ◗

We undertook significant work during the year to upgrade SAP, our financial management and human resource system:

incorporating changes resulting from the transfer of the Community Development ◗

Employment Projects (CDEP) Redevelopment Project to the Department

adding the SAP Budget Allocation Tool to facilitate improved budget development and ◗

allocation activities

upgrading the Project Systems module to improve management and reporting on major ◗

capital and new policy proposals and activities related to the Business As Usual project

migrating the Travel module from a .Net front end to the SAP ESSentials portal. ◗

Community Development Employment projectsResponsibility for the CDEP program was transferred from the former Department of Employment and Workplace Relations to FaHCSIA in December 2007. In December 2008 the Australian Government announced reforms to the CDEP program and policy changes, to take effect from 1 July 2009. FaHCSIA became involved in a major rebuild and migration


of the CDEP manager system. This was successfully achieved despite tight timeframes, with the new system released in June 2009. The following changes were implemented in the system:

interfaces with Centrelink, the Department of Education, Employment and Workplace ◗

Relations, Grants Management System and FaHCSIA’s SAP system

a secure website as a central point for CDEP providers to access information about ◗

the program

a training database ◗

a reporting database ◗

the successful migration and archiving of data from the existing CDEP Manager system ◗

the decommissioning of the existing CDEP manager system. ◗

Support for the Northern Territory Emergency Response and Victorian bushfiresThe Information Management and Technology Group continues to provide support for Northern Territory Emergency Response staff in many remote locations. Due to the nature of the sites, the Information and Communication Technology (ICT) solutions required are often complex and support is more difficult than in urban centres.

The group provided timely support to the staff involved in the Victorian bushfires, quickly configuring a SharePoint team site to enable communication and collaboration between emergency workers and volunteers.

Gershon ReviewFaHCSIA responded to the requirements of the Australian Government Independent Review of ICT conducted by Sir Peter Gershon (the Gershon Review) and has engaged with the Department of Finance and Deregulation to progress recommendations arising from the Gershon Review.

During 2008–09 this work involved:

written submissions detailing FaHCSIA’s IT environment, project management and ◗

governance processes

data collection of ICT financial information for 2007–08, including IT business as usual ◗

volume and metrics data

identification of savings initiatives to meet the target for 2009–10 of a 5 per cent ◗

reduction in IT business as usual spending

participation on whole‑of‑government working groups for green IT, data centre strategy, ◗

workforce planning and coordinated procurement.

269Chapter 14 Our accountability Part3 Corporate governance FaHCSIA Annual Report 2008–2009

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Our accountability at a glanceThe Department has a comprehensive suite of mechanisms to meet our accountability obligations. These mechanisms assure stakeholders of our compliance with statutory and other obligations and include a fraud control plan, ensuring the right payments are made to the right people, appearing before parliamentary committees and transparently submitting to external reviews.

External scrutinyIn 2008–09 the Department participated in a number of external scrutiny activities, including appearing before Senate Estimates on three occasions. The portfolio also gave evidence and/or made submissions to a number of parliamentary committee inquiries and participated in external audits. There have been four judicial decisions of major significance to the Department.

Fraud controlFaHCSIA works closely with other Australian Government agencies responsible for fraud prevention and investigation by sharing information and developing knowledge of identified fraud risks, fraud intelligence and trends that have an impact on the Department’s program areas.

Internal auditFaHCSIA has broad risk‑based internal audit coverage. We ensure that we action all audit recommendations appropriately. Audits promote better practice and generate advice on legislative and regulatory compliance as well as operational efficiency and effectiveness.

Our accountability14

270 FaHCSIA Annual Report 2008–2009 Part3 Corporate governance Chapter 14 Our accountability

Payment accuracy and recovery actionsFaHCSIA and Centrelink work closely together to ensure that payments made to programs and individuals are correctly assigned, paid on time and go only to properly identified and eligible parties. With Centrelink, we have developed a control framework that samples customers in order to estimate payment accuracy and emerging trends and addresses fraudulent activity. Follow‑on processes are used to recover outstanding debts or, where necessary, to pursue prosecutions.

External scrutiny

Parliamentary committeesThe portfolio appeared before the Senate Community Affairs Committee (Senate Estimates) on three occasions during 2008–09. The portfolio also gave evidence and/or made submissions to a number of parliamentary committee inquiries. These are set out below.

House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs—Inquiry into Remote Community StoresThe committee is inquiring into the operation of local community stores in remote Aboriginal and Torres Strait Islander communities, with a particular focus on:

food supply, quality, cost and competition issues ◗

the effectiveness of the Outback Stores model, and other private, public and community ◗

store models

the impact of these factors on the health and economic outcomes of communities. ◗

FaHCSIA provided a submission and appeared before the committee on 12 March 2009. The committee is yet to table its report.

House of Representatives Standing Committee on Family, Community, Housing and Youth—Inquiry into Better Support for CarersThe committee released its report on 1 May 2009 into the role and contribution of carers in society and how this should be recognised, the barriers to social and economic participation for carers, and practical measures required to better support carers, including key priorities for action.

On 28 November 2008, FaHCSIA led a presentation to the committee on a joint submission with the Department of Health and Ageing and the Department of Veterans’ Affairs following a presentation to the committee in the previous financial year.

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Chapter 14 Our accountability Part3 Corporate governance FaHCSIA Annual Report 2008–2009

The report of the inquiry was tabled on 1 May 2009. Immediate financial relief for carers is a key recommendation of the report, as well as an urgent increase in respite and in‑home assistance for carers, with current demand far exceeding supply. Better coordination of support services is also needed, with the committee recommending a one‑stop‑shop for information on community care services, as well as support systems that are nationally consistent and more streamlined.

House of Representatives Standing Committee on Climate Change, Water, Environment and the Arts—Inquiry into climate change and environmental impacts on coastal communitiesThe committee is inquiring into issues related to climate change and environmental pressures experienced by Australian coastal areas, particularly in the context of coastal population growth.

The Department provided a submission to the inquiry dated 5 August 2008 and officers from Disaster Preparedness and Recovery Branch and the Office of Indigenous Policy Coordination gave evidence at a public hearing on 19 March 2009. The committee is yet to table its report.

Joint Standing Committee on Treaties—Agreement between Australia and the Republic of Finland on Social SecurityThis committee reviews and reports on all treaty actions proposed by the Government before action is taken that binds Australia to the terms of the treaty.

The Department appeared at a public hearing on 10 November 2008 to review the proposed agreement between Australia and the Republic of Finland on social security.

House of Representatives Standing Committee on PetitionsIn July 2008, the Department provided information for a response to a petition referred to the Minister for Housing on funding for housing and accommodation services 2008. Two group managers, two branch managers and two section managers attended a public hearing on 24 September 2008.

The Department also provided evidence at a public hearing on 25 February 2009, at which five branch managers and a section manager were in attendance. The hearing was to examine a petition on the issue of disability and the Age Pension.


House of Representatives Standing Committee for Employment and Workplace Relations—Inquiry into pay equity and associated issues relating to increasing female participation in the workforceAt the request of the then Acting Minister for Employment and Workplace Relations, the Hon. Brendan O’Connor, MP, in June 2008, the House of Representatives Standing Committee for Employment and Workplace Relations is conducting an inquiry into pay equity and associated issues related to increasing female participation in the workforce. The Office for Women made a submission to the inquiry in September 2008 and also appeared before the committee to discuss the submission. The committee is expected to report on its findings in late 2009.

Joint Standing Committee on Treaties—Optional Protocol to the Convention on the Elimination of all Forms of Discrimination against Women of 18 December 1979The Attorney‑General’s Department, supported by the Office for Women, conducted an assessment of the likely impact on Australia of the Optional Protocol to the Convention on the Elimination of all Forms of Discrimination against Women and prepared a national interest analysis. A copy of the analysis was provided to the Joint Standing Committee on Treaties, which conducted a public hearing on 15 September 2008. The Office for Women, the Attorney‑General’s Department and the Department of Foreign Affairs and Trade appeared at the hearing. The committee reported to Parliament in favour of acceding. A special meeting of the Executive Council considered this matter on 24 November 2008 and accepted this recommendation. The instruments for accession to the Optional Protocol were formally lodged on 4 December 2008.

Joint Committee of Public Accounts and AuditThe Committee held a public hearing on 12 November 2008 to review the Australian National Audit Office (ANAO) Audit Report No. 42 of 2007–08, Management of Customer Debt—Follow-up Audit.

Two departmental officers provided answers to questions as well as providing information on request from committee members. The Department also provided a written response to questions on notice arising from the hearing. Overall, the committee is satisfied with the progress made in the management of customer debt, but has recommended that Centrelink, the Department of Education, Employment and Workplace Relations and FaHCSIA conduct an analysis to determine a cost‑effective debt waiver, and that this figure be reported to the committee within six months of the tabling of its report. The committee tabled its report on 22 May 2009. The Department also provided a submission to the committee on Report No. 412, Audit reports reviewed during the 41st Parliament.

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Senate Community Affairs Committee—Inquiry into Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Bill 2009On 17 June 2009 the Senate, on the recommendation of the Selection of Bills Committee, referred these provisions for inquiry and report by 23 June 2009. The short timeframe imposed by the Senate was to ensure that the Bill passed Parliament in time to enable the pension changes to commence by the indicated dates. The committee examined only a small number of the issues in the Bill—tapering, indexation, pension age, restrictions on who receives the increase and impact on single parents.

Departmental officers appeared at public hearings on 19 June 2009. The committee report was completed on 24 June 2009. The committee recommended that the Bill be passed.

Senate Community Affairs Committee—Inquiry into Social Security Legislation Amendment (Improved Support for Carers) Bill 2009 [provisions]The committee was requested to examine the provisions of the Bill to ensure that they adequately met the needs of carers.

The Department provided a submission to the inquiry. Two departmental officers gave evidence at a public hearing on 28 April 2009 and the Department provided responses to questions on notice arising from the hearing. The final report was completed on 7 May 2009. Overall, the committee welcomed the proposed amendments because they ensure that more carers who are unable to support themselves, because of the demands of caring for children with disability or medical conditions, are receiving financial support.

Senate Community Affairs Committee—the provisions of the Family Assistance and Other Legislation Amendment (2008 Budget and Other Measures) BillProvisions in the Bill enable review of NT income management regime decisions and implements reforms to the Community Development Employment Projects (CDEP) program.

The Department sent six departmental officers to a public hearing on 28 April 2009 and provided responses to questions on notice arising from the hearing.

The report of the inquiry was completed on 7 May 2009. The committee noted that the measures in the Bill were an initial step in the expansion of appeal opportunities in relation to the Northern Territory Emergency Response income management regime, that further reforms of the income management regime to bring it into line with the Racial Discrimination Act 1975 are a matter of urgency and that the Government has committed to this work. The committee also acknowledged that transitional issues in relation to


the CDEP program are difficult. The committee shared the concerns regarding potential problems for those CDEP participants who transfer to income support and the associated compliance processes. This will be an area the committee will continue to monitor.

Senate Community Affairs Committee—Inquiry into Petrol Sniffing and Substance Abuse in Central AustraliaRepresentatives from the four partner agencies to the Petrol Sniffing Strategy (FaHCSIA, the Department of Health and Ageing, the Department of Education, Employment and Workplace Relations and the Attorney‑General’s Department) appeared at a public hearing on 12 March 2009 and presented a statement on behalf of the four agencies. A formal joint submission was also provided to the inquiry in August 2008.The report was tabled on 19 March 2009.

The committee inquired into:

the ongoing effectiveness of the eight‑point plan in combating petrol sniffing in ◗

central Australia

the extent of the rollout of Opal fuel ◗

the delivery of youth services in affected areas ◗

the effectiveness and adequacy of resources provided to address petrol sniffing and ◗

substance abuse in central Australia

what more needs to be done to effectively address petrol sniffing. ◗

Senate Community Affairs Committee—Inquiry into Appropriation (Nation Building and Jobs) Bill (No.2) 2008–09 relating to the social housing programThree officers of the Department attended a public hearing on 10 February 2009 and tabled information on the state‑by‑state breakdown of the Social Housing Initiative at that hearing. The inquiry was completed on 10 February 2009.

Senate Community Affairs Committee—Inquiry into Government Expenditure on Indigenous Affairs and Social Services in the Northern TerritoryThe committee was to inquire into the levels of federal and Northern Territory Government expenditure on Indigenous affairs and social services in the Northern Territory, including expenditure on services for families, children and people with disability in the Northern Territory. Two departmental officers presented evidence at a public hearing on 11 November 2008. The inquiry reported on 4 December 2008.

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Senate Community Affairs Committee—Inquiry into Social Security and Veterans’ Entitlements Legislation Amendment (Schooling Requirements) Bill 2008The principal issues for consideration in this inquiry were the effectiveness of the proposed measures and the impact on children and families. FaHCSIA and Centrelink provided input into a submission by the Department of Education, Employment and Workplace Relations (DEEWR) and an officer attended the public hearing on 3 November 2008. The report was tabled on 13 November 2008.

Senate Community Affairs Committee—Inquiry into National Rental Affordability Scheme Bill 2008 and National Rental Affordability Scheme (Consequential Amendments) Bill 2008Reasons provided for referral of the Bills to the committee and principal issues for consideration are:

whether the Bills are targeted to deliver affordable housing to those in greatest need ◗

whether the Bills are an efficient and effective way to deliver increased ◗

affordable housing

whether the Bills facilitate investment in social housing by not‑for‑profit community ◗

housing organisations, as well as private investors.

A submission was made to the inquiry and officers appeared at a public hearing on 6 November 2008. The report of the inquiry was tabled on 12 November 2008.

Senate Community Affairs Committee—Inquiry into Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Further 2008 Budget and Other Measures) Bill 2008Referral of the Bill and the issues for consideration by the committee related to amendments to child support legislation in Schedule 3 of the Bill. On 23 October 2008 the committee decided that, in light of the correspondence it has received, it would also accept submissions relating to Schedule 2 of the Bill regarding the partner service pension.

No submission was made by the Department; however, three officers appeared before the committee at a public hearing on 3 November 2008 and the inquiry report was completed on 10 November 2008.


Senate Community Affairs Committee—Building trust: Supporting Families through Disability TrustsThe Senate Committee released its report on 16 October 2008, making 14 recommendations in relation to:

why more families of dependants with disability are not making use of the current ◗

provisions to establish Special Disability Trusts

the effectiveness of Part 3.18A of the ◗ Social Security Act 1991

barriers in the relevant legislation to the establishment of Special Disability Trusts ◗

possible amendments to the relevant legislation. ◗

The Government tabled its response to this report in Parliament on 14 May 2009.

The following two tax measures to benefit Special Disability Trusts were announced in the 2009–10 Budget.

The unexpended income of a Special Disability Trust will be taxed at the beneficiary’s ◗

personal income tax rate rather than at the top personal tax rate plus Medicare Levy, with effect from the 2008–09 income year.

The capital gains tax main residence exemption will be extended to include a residence ◗

that is owned by a Special Disability Trust and used by the beneficiary as their main residence, with effect from the 2009–10 income year.

The Government has agreed to consider further those recommendations with significant budgetary and legislative implications. The consideration of these recommendations will take into account work being undertaken within the broader carer and disability policy environment.

The Department has commenced a revision of the guidelines setting out what are, and what are not, reasonable care and accommodation needs for principal beneficiaries of Special Disability Trusts.

Senate Legal and Constitutional Affairs Committee—Inquiry into the Native Title Amendment Bill 2009The Department provided evidence to the committee through a combined submission with Attorney‑General’s Department and attended a public hearing on 16 April 2009. The report was tabled on 13 May 2009.

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Senate Select Committee on Regional and Remote Indigenous CommunitiesSix officers gave evidence at public hearings on 22 May 2009, 9 June 2009 and 14 November 2008. The Department also provided responses to a series of questions on notice from the committee. The first report on this inquiry was tabled on 30 September 2008.

Senate Community Affairs Committee—Inquiry into the Implementation of the Recommendations of the Lost Innocents and Forgotten Australians ReportsThis inquiry was to consider the implementation of the recommendations in the Community Affairs References Committee’s Lost Innocents and Forgotten Australians reports. The Department provided evidence to the committee through a written submission and attended a public hearing on 8 April 2009.

Following this hearing, the Department provided additional written information. The report was tabled on 25 June 2009 and recommended improving responses in several areas of Commonwealth responsibility.

Senate Community Affairs Committee—Poker Machine Harm Reduction Tax (Administration) Bill 2008; Poker Machine Harm Minimisation Bill 2008; ATMs and Cash Facilities in Licensed Venues Bill 2008The committee considered three Bills that aim to reduce the harm caused by problem gambling through:

a harm minimisation tax on revenue from poker machines ◗

technological solutions in gaming machines and automatic teller machines to reduce ◗

problem gambling

limiting the installation of automatic teller machines and cash facilities in ◗

licensed venues.

FaHCSIA appeared before the committee on 25 September 2008. The committee tabled its report on 10 November 2008 and recommended that the Bills not be passed at that time, acknowledging that findings from the Productivity Commission’s inquiry into Australia’s gambling industries would be available in 2009.


Approaches to the OmbudsmanThe Commonwealth Ombudsman received 200 approaches about the Department in 2008–09, an increase from 165 (21.2 per cent) approaches received in 2007–08.

Of the 200 complaints received, 146 were in relation to the Emergency Response or other Indigenous programs in the Northern Territory.

During 2008–09, 164 approaches were finalised. Of these, the Ombudsman investigated 88 and exercised discretion not to investigate 76. Of the 88 approaches investigated by the Ombudsman, there was one finding of administrative deficiency.

Australian National Audit Office activityThe Auditor‑General tabled five audit reports in Parliament relevant to departmental operations. The objectives of the engagements are below.

No. 11: Disability Employment Services (tabled 4 December 2008)This audit assessed how effectively FaHCSIA and the Department of Employment, Education and Workplace Relations undertook their roles and responsibilities for specialist disability employment services under the current (third) Commonwealth State Territory Disability Agreement.

No. 13: Australian Government Agencies’ Management of their Websites (tabled 16 December 2008)This audit assessed how effectively government agencies managed aspects of their websites. The audit involved a survey of 40 agencies and visits to some of those agencies.

No. 14: Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2008 (tabled 17 December 2008)The annual Financial Statements audit has been conducted as an independent external examination of the financial accounting and reporting of public sector entities.

No. 25: Green Procurement and Sustainable Office Management (tabled 11 March 2009)This audit assessed the progress of government agencies in achieving better practice in green office procurement and sustainable office management.

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No. 30: Support for Victims of People Trafficking (tabled 29 April 2009)This audit assessed the arrangements for overseeing the Australian Government’s Action Plan to Eradicate Trafficking in Persons and to identify whether the plan’s new measures had been administered effectively to deliver the intended results.

No. 42: Interim Phase of the Audit of Financial Statements of General Government Sector Agencies for the Year ending 30 June 2009 (tabled 22 June 2009)The annual Financial Statements audit has been conducted as an independent external examination of the financial accounting and reporting of public sector entities.

Office of Evaluation and Audit activityThe Office of Evaluation and Audit provides objective advice to the Australian Government about the management and performance of its programs for Aboriginal and Torres Strait Islander peoples. It makes recommendations about how Indigenous‑specific programs can be improved and how the Australian Government can deliver better outcomes for Aboriginal and Torres Strait Islander peoples.

During 2008–09, the Director of the Office of Evaluation and Audit tabled four audit reports in Parliament in relation to which FaHCSIA was a key stakeholder. The objectives of the engagements have been outlined below.

Aboriginals Benefit Account (tabled November 2008)This engagement examined the efficiency, effectiveness and economy of the Aboriginals Benefit Account, and its overall management.

Centrecorp Aboriginal Investment Corporation Pty Ltd (tabled March 2009)This engagement examined Centrecorp, Yeperenye Nominees and Central Australian Aboriginal Motor Vehicles (CAAMV) Pty Ltd’s corporate governance arrangements, the sourcing and application of Australian Government funds and benefits that accrue for Aboriginal people in Central Australia.

Indigenous Land Corporation—Follow-up of Aspects of the National Indigenous Development Centre (tabled November 2008)This engagement was a recommendation of the Office of Evaluation and Audit’s 2006–07 audit of the operation of the Indigenous Land Corporation. The audit examined the costs, benefits, risks and long‑term viability of the National Indigenous Development Centre.


Northern Land Council—governance component (tabled December 2008)This engagement examined whether the governance and management structures and processes of the Northern Land Council were appropriate, efficient and effective for a statutory authority established under the Aboriginal Land Rights (Northern Territory) Act 1976.

Judicial decisionsThere have been four judicial decisions of major significance to the Department in the 2008–09 financial year.

In Wurridjal & Ors v The Commonwealth of Australia & Anor [2009] HCA 2, the High Court rejected a challenge to the constitutional validity of parts of the Northern Territory National Emergency Response Act 2007 and the Families, Community Services and Indigenous Affairs and Other Legislation Amendment (Northern Territory National Emergency Response and Other Measures) Act 2007. In particular, a majority of the High Court rejected the plaintiffs’ arguments that the grant of five‑year leases of Aboriginal land to the Commonwealth and the modifications to the so‑called ‘permit system’ effected an acquisition of property other than on just terms.

In Northern Territory of Australia v Arnhem Land Aboriginal Land Trust [2008] HCA 29 (‘the Blue Mud Bay case’), the High Court held that fishing licences issued under Northern Territory fishing legislation do not negate the need for the holders of those licences to obtain the further permission of the relevant Land Trust or traditional Aboriginal owners where the holder of the licence wishes to take fish from the inter‑tidal zone, tidal rivers or estuaries within the boundaries of Aboriginal land granted under the Aboriginal Land Rights (Northern Territory) Act 1976.

In Commonwealth v David Leigh as Liquidator of Durahrwa Training & Development Aboriginal Corporation (In Liquidation) [2008] FCA 1513, the Federal Court held that real property purchased with a grant provided by the former Aboriginal and Torres Strait Islander Commission was charged, pursuant to a purposes agreement, to secure repayment of the grant amount and the Commonwealth’s claim for costs and expenses incurred in enforcing repayment was secured upon the property by virtue of item 201 of Schedule 1 to the Aboriginal and Torres Strait Islander Commission Amendment Act 2005 (Amendment Act). The Court also found that the fact that the property was vacant and not being used for any purpose was enough to find a breach of the designated use clause of the purposes agreement, and hence to support the validity of a notice seeking repayment issued under item 199 of Schedule 1 to the Amendment Act.

In Elliot v Secretary, Department of Education, Employment and Workplace Relations [2009] FCAFC 37, beneficiaries under a testamentary life discretionary trust had been assessed

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as having ‘beneficial interests in the corpus or income of the trust’ under paragraph 1207V(2 (d) of the Social Security Act 1991. The Court found that this was not, in fact, the case, as beneficiaries of a discretionary trust cannot be described as having a ‘beneficial interest’ in respect of the trust. The Department is considering the impact of the decision.

PrivacyFaHCSIA has a strong framework of measures in place to protect the privacy of individuals. This framework includes secrecy legislation, privacy legislation, arrangements with the service delivery agencies and a number of detailed measures, such as confidentiality deeds and declarations with providers and staff.

In addition to the obligations imposed by the Privacy Act 1988, legislation administered by FaHCSIA contains broad secrecy provisions that expressly prohibit the release of customer information, except in limited circumstances. Those provisions include criminal offences that may result in a term of imprisonment.

FaHCSIA’s business partnership agreements with its partner agencies include mechanisms that allow FaHCSIA to monitor and contribute to the protection of customer privacy and enables all parties to cooperate on handling matters related to privacy. (See also ‘Fraud control’ below.)

Office of the Privacy CommissionerFaHCSIA liaises with the Privacy Commissioner on policy development related to privacy issues relating to social security, family assistance, Indigenous affairs and the handling of personal information.

The Office of the Privacy Commissioner may investigate a privacy issue whether or not a complaint has been made and issue a report or determination following that investigation. During 2008–09 the Office of the Privacy Commissioner did not investigate a privacy issue or issue any report or determinations in relation to FaHCSIA.

Commonwealth OmbudsmanThe Commonwealth Ombudsman received one complaint regarding the handling of personal information by FaHCSIA. An internal investigation found that a breach of privacy had occurred and the matter was resolved between the Department and the complainant with the assistance of the Commonwealth Ombudsman.

Privacy compliance and investigationsThe improper use and disclosure of personal information by staff, or the collection of personal information from staff, are matters treated seriously by the Department. FaHCSIA ensures that investigations are carried out in relation to any complaints or allegations of breaches of privacy or confidentiality.


Freedom of Information requestsFaHCSIA handles all Freedom of Information (FOI) requests in accordance with the Freedom of Information Act 1982. Supplementary materials, such as the FOI Guidelines, are used to inform the handling of FOI requests where necessary. These guidelines are available at www.pmc.gov.au.

Procedures for gaining access to documentsThe FOI Coordinator in FaHCSIA provides advice on FOI matters to any interested parties and liaises with applicants.

Formal applications for access to documents under FOI must be made by letter or written request. It must be accompanied by a $30 application fee, though this may be waived in certain circumstances. The application should be submitted to the FOI Coordinator in National Office or with a state FOI contact officer from any of FaHCSIA’s state offices. Further details are provided at Appendix 7 on page 342.

Fraud controlFaHCSIA has a fraud control plan in place that complies with the Commonwealth Fraud Control Guidelines 2002.

During the year, the Department addressed its fraud control responsibilities mainly through the Audit and Fraud Branch and the Indigenous Programs Investigation Branch.

The Audit and Fraud Branch provided fraud awareness training and advice on policy, guidelines and procedures to FaHCSIA staff. The branch managed the investigation of fraud allegations against FaHCSIA programs (excluding Indigenous Programs) and allegations of criminal conduct by FaHCSIA employees. The Branch was also responsible for monitoring FaHCSIA’s Fraud Control Plan 2007–2009 and reporting on fraud‑related matters for the Department.

The Indigenous Programs Investigation Branch investigated fraud committed against FaHCSIA’s Indigenous programs and services, and coordinated investigations requiring a whole‑of‑government response.

In April 2009, the two branches merged to form the Compliance Branch. This move gave us the opportunity to consolidate our fraud control and investigation functions.

Due to additional responsibilities in program areas, and in keeping with the Commonwealth Fraud Control Guidelines, FaHCSIA maintained our emphasis on fraud control programs, awareness raising and reporting. In particular, we implemented all recommended action

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items under our Fraud Control Plan and the addendum to it. The addendum addressed fraud control risks associated with the Northern Territory Emergency Response.

All FaHCSIA investigators have the mandatory qualifications outlined in the Australian Government Investigation Standards and the Commonwealth Fraud Control Guidelines.

FaHCSIA works closely with other Australian Government agencies responsible for fraud prevention and investigation by sharing information and developing knowledge of identified fraud risks, fraud intelligence and trends that have an impact on our program areas.

The Department’s fraud control arrangements are certified below.


Internal auditFaHCSIA ensures that there is broad risk‑based internal audit coverage across the Department and that appropriate action is taken on audit recommendations to reduce our overall risk exposure. The audits also promote better practice and generate advice on legislative and regulatory compliance and operational efficiency and effectiveness.

FaHCSIA continued to build its in‑house internal audit function with the assistance and cooperation of the Department’s newly contracted primary internal audit service provider, Oakton, and secondary service providers Deloitte Touche Tohmatsu and PricewaterhouseCoopers. Audits were performed either individually by service providers or as a co‑sourced arrangement with the in‑house capability on matters that included:

Strategic Housing Alliance ◗

FaHCSIA relationship with the community services sector ◗

property management ◗

workforce planning ◗

procurement and contract management ◗

credit card processes ◗

procurement and contract management for the Northern Territory Emergency Response ◗

budget and expenditure allocation for the Northern Territory Emergency Response ◗

management of Disability Support Pension, Carers Allowance and Carers Payment ◗

MaPS.NET business information system ◗

management of expenditure performance ◗

access to sensitive information ◗

Office of the Registrar of Indigenous Corporations business processes ◗

administration of Rent Assistance ◗

regulatory compliance and business processes ◗

management of staff housing ◗

acquittals processes ◗

reforms to the Community Development Employment Projects program ◗

management of grants ◗

contracting of longitudinal studies. ◗

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Social Security Appeals TribunalThe Social Security Appeals Tribunal is a statutory body under the Social Security (Administration) Act 1999 that conducts merit reviews of administrative decisions made under a number of enactments, in particular the social security law, family assistance law and child support law. The tribunal’s primary objective is to provide a mechanism of review that is fair, just, economical, informal and quick. It submits an annual report to the Minister for Families, Housing, Community Services and Indigenous Affairs, which is presented to the Parliament.

FaHCSIA provides advice to the Minister and works with external stakeholders, including the Department of Education, Employment and Workplace Relations, the Department of Human Services and Centrelink, on matters relating to the tribunal.

Activities include:

facilitating the appointment and resignation processes for members ◗

coordinating cross‑agency involvement on policy‑related issues ◗

providing advice and assistance with the implementation of process improvements. ◗

A memorandum of understanding between FaHCSIA and the tribunal covers the administrative services support FaHCSIA provides to it. FaHCSIA provides financial and personnel management information systems to the tribunal to assist it in performing purchasing, accounts payment, budgeting and staff management functions.

Act of grace paymentsGenerally, act of grace payments are a means of providing compensation to persons who may have been unfairly disadvantaged by the Australian Government, but who have no legal claim against it.

During the 2008–09 financial reporting year, the total amount of act of grace payments was $410,498.94. The total number of act of grace payments during the reporting period was 55.

Right payments to the right peopleFaHCSIA and Centrelink work closely together to ensure that payments to programs and individuals are paid on time and only to the properly identified and eligible parties.

The Business Partnership Agreement 2006–10 governs the business relationship between FaHCSIA and Centrelink. The agreement sets out the performance measures and assurance mechanisms for payments and services delivered by Centrelink on behalf of FaHCSIA.


FaHCSIA ensures Centrelink has controls in place to minimise the incidence of incorrect payment and fraud. This in turn leads to a framework that maximises correct payment and the accuracy of program outlays. The success of this approach is measured through a set of performance indicators agreed to by FaHCSIA and Centrelink. For more information on fraud, see pages 282–283.

Control of program and incorrect paymentThe FaHCSIA control framework focuses on prevention and detection of incorrect payment and fraud, and relies on a risk management approach to optimise compliance. FaHCSIA works with Centrelink to:

develop, implement and support systems and procedures to prevent, identify and ◗

investigate incorrect payments and fraud

undertake activities in debt prevention, reviews, analysis, identification, raising and ◗

recovery, as well as investigation and prosecution

monitor, analyse and report on performance ◗

inform of compliance issues, trends, projects and results. ◗

Controls are designed to be cost effective, while minimising customer impacts. Customers are promptly notified of determinations resulting from reviews that affect a rate of payment or result in a debt or action to recover a debt.

Maximising correctness of paymentsThe FaHCSIA control framework includes:

alerting customers to their obligations ◗

verifying relevant facts about customers, including their identity, personal and ◗

financial circumstances

requiring customers to provide their tax file numbers and, where appropriate, their ◗

partner’s tax file numbers as a condition for receipt of payment

requiring pensions and allowances to be paid directly into customers’ accounts to reduce ◗

the occurrence of cheque fraud

reviewing the circumstances of customers considered to be at risk of receiving ◗

incorrect payment

promptly seeking recovery of debts ◗

referring more serious cases of suspected fraud to the Commonwealth Director of ◗

Public Prosecutions.

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Measuring the accuracy of outlaysThe Random Sample Survey program provides an estimate of the accuracy and inaccuracies of program outlays and intelligence about emerging outlay risks. The surveys also provide useful information that assists the policy development process.

The program also provides assurance information required under the Business Partnership Agreement. Random samples are a point in time analysis of customers’ circumstances.

During 2008–09, on FaHCSIA’s behalf, Centrelink undertook random sample surveys of:

5,000 Age Pension customers ◗

250 Carer Allowance customers ◗

1,500 Carer Payment customers ◗

2,250 Family Tax Benefit customers ◗

500 Special Benefit customers ◗

2,757 Disability Support Pension customers. ◗

The results of these surveys are presented in Table 3.7.

Table 3.7 Payment inaccuracy by payment type, 30 June 2009

Payment type Inaccuracy (95% confidence interval)

Age Pension 1.5% (1.2%–1.8%)

Carer Allowance 1.6% (0.5%–2.7%)

Family Tax Benefit 1.3% (1.2%–1.4%)

Special Benefit 3.7% (1.4%–6%)

Disability Support Pension 2.2% (1.4%–3%)

Carer Payment 2.6% (1.7%–3.5%)

Overall rate of inaccuracy 1.6% (1.4%–1.8%)

Notes:

Inaccuracy is the ratio of gross inaccurate payment (annualised) to annual outlay (amounts being paid) to the same population. Because this rate is estimated using sample data it is subject to sampling error. The effect of the sampling error is reflected in the width of the confidence interval.

The random sample surveys are designed to measure inaccuracies as a result of negligence, circumstance or error. They do not capture payment errors due to deliberate fraud.

Estimates refer to the 12 months to 30 June 2009 except for Carer Allowance, where the reference period is the 12 months to 31 March 2009.

A small sample results in a wide confidence interval.

The confidence interval reflects the small sample and variability in population.


Table 3.8 Achievement against performance indicators

Performance indicator Target Actual

Compliance and fraud Savings of $359.19 million In 2008–09, savings from 241,068 reviews was $305.30 million

Profiling reviews Savings of $43.6 million In 2008–09, savings from 359,306 reviews was $38.6 million

Debt raised 70% of the undetermined debt base

Total debt determined as percentage of the undetermined debt base for the financial year was 77.4%

Debt recovered 72% of debts recovered as a portion of the debts raised (in dollar terms)

Total debt recovered was 72.0% of debts recovered as a portion of the debts raised (in dollar terms)

Debt under management 65% of debts under recovery as the percentage of the total debt base

Total value of debts under recovery as a percentage of the debt base for the financial year was 74.0%

Overall outlay accuracy Overall outlay accuracy—95%

98.4%

Debt raising and recoveryCentrelink raised 740,792 FaHCSIA debts valued at $359.3 million. Of these, debts raised for recovery totalled $335.8 million with a further $23.5 million waived at determination.

Recoveries of FaHCSIA and Family Assistance Office debts by cash and withholdings amounted to $241.6 million. These figures include compensation debts.

Total debt determined as a percentage of the undermined debt base for the financial year was 77.4 per cent.

Total value of debts under recovery, as a percentage of the debt base for the financial year, was 74.0 per cent.

The figures exclude Family Tax Benefit reconciliation and tax return non‑lodger debts.

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CompensationThe compensation provisions in the Social Security Act 1991 are structured to encourage people to use private financial resources, such as compensation payments, before accessing the tax‑payer funded social security system. The provisions also ensure that people who receive compensation for an injury or illness have those payments considered in the calculation of any social security benefits.

Compensation provisions provide for:

compelling people to claim for compensation where compensation may be payable ◗

recovery of past payments of social security from arrears payments of periodic ◗

compensation payments and lump‑sum compensation payments

preclusion periods within which social security payments cannot be paid due to the ◗

receipt of lump‑sum compensation payments

periodic payments, such as weekly workers’ compensation payments, to reduce directly ◗

dollar‑for‑dollar, the rate of social security payments otherwise payable—any excess is treated as income for partners of compensation recipients.

To ensure the community understands the effect of compensation on social security benefits, Centrelink provides information on its website for compensation recipients, compensation authorities, legal, insurance, union and community representatives.

In 2008–09, application of the compensation provisions across all income support payments made under the Social Security Act 1991, administered by FaHCSIA and the Department of Education, Employment and Workplace Relations, achieved estimated savings to outlays of $558.5 million.

ProsecutionsIn 2008–09, 905 cases of alleged social security fraud were referred to the Commonwealth Director of Public Prosecutions, who prosecuted 544 cases, resulting in 489 convictions (a 98.7 percent conviction rate).

Identity fraudOf the 1,908 reviews conducted in 2008–09, 63 cases of identity fraud were identified, resulting in 581 debts with a value of $8.3 million.

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