part three management and accountabilityresources.fahcsia.gov.au/annualreport/2010/docs/... · 146...

142 Chapter 13 Corporate governance

162 Chapter 14 External scrutiny

168 Chapter 15 Human resources management

183 Chapter 16 Support services

188 Chapter 17 Financial management

Part Three Management and accountability

142 Chapter 13 Corporate governance | Part 3 Management and accountability | FaHCSIA Annual Report 2009–10

Chapter 13Corporate governance

OverviewFaHCSIA directs and controls its operations and sets and enacts its departmental objectives through its governance structure, which is led by the Secretary. He and the five deputy secretaries form the Executive Management Group, which is supported by boards and committees that provide advice relating to our administration and overall operation.

Executive Management Group, left to right, Liza Carroll, Rob Heferen, Jeff Harmer, Bruce Hunter, Andrew Tongue, Peta Winzar (a/g Serena Wilson).

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FaHCSIA Annual Report 2009–10 | Part 3 Management and accountability | Chapter 13 Corporate governance 143

ExecutiveDr Jeff Harmer AO, SecretaryJeff Harmer was appointed Secretary of the Department in October 2004 and was reappointed in October 2008. Prior to that, Jeff was Secretary of the then Department of Education, Science and Training and, before that, Managing Director of the Health Insurance Commission (now Medicare Australia). He has held a range of high-level policy advising positions in the Australian Government.

In February 2009, the Secretary completed a major review of the adequacy of the Age Pension. He was also a member of a panel chaired by Dr Ken Henry AC 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 advises portfolio ministers and parliamentary secretaries on major and sensitive policy issues and represents the Department in a variety of government, industry and business sector forums.

Through those forums, Jeff develops and maintains high-level relationships with the Department’s key stakeholders. He is a member of the Melbourne Institute Advisory Board and the Salvation Army Red Shield Appeal Advisory Committee for the Australian Capital Territory. He is also a Fellow of the Australian Institute of Management and the Institute of Public Administration Australia.

On Australia Day 2010, Jeff was appointed an Officer of the Order of Australia for his public sector work. Jeff holds a Bachelor of Arts with Honours, a Diploma in Education, and a Doctorate of Philosophy from the University of New South Wales.

Liza Carroll, Deputy SecretaryLiza Carroll joined the Department in March 2010. As Deputy Secretary, Liza is responsible for assisting the Secretary in leadership of the Department and strategic outcomes in relation to families, women and children, including family payments, child support policy, paid parental leave, welfare payments, children’s policy and the Office for Women. Liza is also responsible for the Community Engagement and Development Group, which looks after mental health and autism, disaster preparedness and recovery, community investment and money management.

Liza chairs the Payments Committee and is the co-chair of the Program Management Committee. Liza has a Bachelor of Education and a Masters Degree with honours in educational sociology.


Rob Heferen, Deputy SecretaryRob Heferen commenced as a deputy secretary in FaHCSIA in early 2010 and is responsible for the Office of Indigenous Policy Coordination, which deals with Indigenous policy and Indigenous budget coordination, performance and evaluation; the Program Performance Group, including program frameworks; the Indigenous Leadership and Engagement Group, including leadership delivery, governance and community strategies, policy and strategy and engagement; and FaHCSIA state and territory network managers.

Rob is the co-chair of the Program Management Committee, the Network Management Group, and the NTER Redesign Implementation Steering Committee. Rob holds a Bachelor of Arts/Laws, a Bachelor of Arts with Honours and a Graduate Diploma in Economics.

Bruce Hunter, Deputy Secretary and Chief Operating OfficerBruce Hunter commenced as Deputy Secretary and Chief Operating Officer in June 2008. Bruce has responsibility for the Business and Financial Services Group, the Corporate Support Group and the Information Management and Technology Group.

Bruce is the chair of seven key departmental committees, including the Remuneration Committee, the People Committee and the Information and Communications Technology Committee.

Bruce is a Fellow of CPA Australia and has a Bachelor of Commerce (Accounting).

In 2004, Bruce completed the Advanced Management Programme at INSEAD in France. INSEAD is one of the world’s leading and largest graduate business schools and brings together people, cultures and ideas from around the world to change lives and transform organisations.

Andrew Tongue, Deputy SecretaryAndrew Tongue joined FaHCSIA as a deputy secretary in 2009 and is responsible for Australian Government social housing programs, affordable housing, remote Indigenous housing, housing-related economic stimulus measures, remote service delivery, community employment programs and Indigenous economic development.

In the course of his career in the public sector, Andrew has worked in a number of Australian Government departments and dealt with a broad range of issues, such as immigration, housing, health and ageing, local government, regional development and non-metropolitan service delivery.

Andrew chairs the whole-of-government Homelessness Delivery Review Board. Within FaHCSIA, he chairs the Commonwealth–State Relations Committee and the Remote Service Delivery Implementation Board. Andrew holds a Bachelor of Business degree and a Masters in Public Policy.

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Serena Wilson, Deputy SecretarySerena Wilson was appointed Deputy Secretary of the Department in March 2009.

Serena is responsible for strategic policy and budget strategy, the Age Pension, social security relationships and compliance, research and international engagement, the Disability and Carers Group and the Legal and Compliance Group. She is chair of the Department’s Research and Evaluation Committee, the Risk Assessment and Audit Committee and the Compliance and Integrity Committee and joint chair of the Budget Policy Committee. Serena is the FaHCSIA representative on the Board of the Australian Institute of Health and Welfare and is a member of the Australian Housing and Urban Research Institute Board.

Serena holds a Bachelor of Arts with Honours and a Graduate Diploma in Administrative Studies.

Boards and committeesFaHCSIA has a number of boards and committees that provide advice and support to the Secretary and the Executive Management Group on the administration and overall operation of the Department. Internal committees are generally made up of FaHCSIA employees, although some internal committees may also have one or more independent members who are not FaHCSIA employees.

This section provides further information on FaHCSIA’s internal committees, including membership details, roles and responsibilities, and reporting requirements.

Figure 13.1 shows the Department’s governance structure.

FIGURE 13.1 Governance structure, 30 June 2010

Financial Statements Subcommittee

Risk Assessment and Audit Committee

Remuneration Committee

Closing the Gap Committee

Research and Evaluation Committee

People Committee

Program Management

Committee

Budget Policy

Committee

Commonwealth State Relations

Committee

Compliance and Integrity Committee

Project Investment

Board

Information and Communications

Technology Committee

Payments Committee

Secretary

Senior Management Group Executive Management Group


Committees reporting to the Secretary

Executive Management Group

The Executive Management Group is the senior committee in FaHCSIA and provides advice to the Secretary on overall strategic direction, priorities, management and performance. In addition, the group manages the Department’s financial performance by allocating resources, monitoring performance and risk, and ensuring that the Department meets its regulatory requirements.

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

The Executive Management Group is chaired by the Secretary, Dr Jeff Harmer AO. Membership consists of the deputy secretaries.

Senior Management Group

The Senior Management Group is FaHCSIA’s primary forum for executive consultation with senior managers across the Department. It meets weekly to undertake strategic discussions on policy themes and issues, and other high-level matters. The group is made up of the Secretary, who chairs the meetings, deputy secretaries, group managers, state and territory managers and the Registrar of Indigenous Corporations.

Risk Assessment and Audit Committee

The Risk Assessment and Audit Committee (RAAC) is established by the Secretary under the Financial Management and Accountability Act 1997. The role of the RAAC is to provide the Secretary and the Executive Management Group with independent assurance on the Department’s compliance framework, external financial accountability responsibilities, and risk, governance and control processes.

The RAAC consists of four senior executive members from the Department and two external independent members, one of whom possesses financial management expertise. The chairperson of the RAAC is a deputy secretary appointed by the Secretary. In February 2010, Serena Wilson took over the role from Bernie Yates. The RAAC meets six times a year; its August meeting is devoted to reviewing the annual financial statements and providing assurance to the Secretary. The Chief Finance Officer, the Chief Information Officer and the Australian National Audit Office (ANAO) provide regular reports to the RAAC. The RAAC also invites senior executives to provide information and discuss significant risks to the Department.

To assist with its role in financial management assurance, the RAAC established the Financial Statements Subcommittee, which is chaired by an independent external member of the RAAC who reports to the committee at each meeting. The Financial Statements Subcommittee provides overarching assurance for the Department’s annual financial statements.

The RAAC operates in an oversight, review and advisory capacity and its principal role is to provide assurance to the Secretary. Although it has no executive or decision-making authority, it has authority to request information from any employee and to discuss any matter with the Chief Internal Auditor, the contracted service providers or the ANAO. The RAAC can also obtain any independent professional advice it considers necessary.

Remuneration Committee

The Remuneration Committee advises the Secretary on the development and implementation of the Department’s remuneration policy, including the collective agreement and individual remuneration arrangements.

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

Closing the Gap Committee

The Closing the Gap Committee ensures that FaHCSIA continues to deliver on its responsibilities in relation to the Closing the Gap agenda. The committee is chaired by the Secretary. Membership includes all FaHCSIA deputy secretaries and group managers and a number of state managers.

The committee provides strategic oversight of policy development in Indigenous affairs relating to Closing the Gap targets and monitors the implementation of the Council of Australian Governments (COAG) policies and strategies relevant to FaHCSIA business.

Committees reporting to the Executive Management GroupThe Executive Management Group maintains a number of subcommittees, each of which has specific terms of reference. The role of the subcommittees is to develop and provide high-quality recommendations for consideration by the Executive Management Group.

Budget Policy Committee

The Budget Policy Committee manages the Department’s budget policy agenda and its contribution to the federal budget process. The committee advises the Secretary and is jointly chaired by two deputy secretaries, Serena Wilson and Bruce Hunter. Membership includes all deputy secretaries, three group managers and the Budget Development Branch Manager. The Strategic Policy Branch Manager also attends as an observer.

The committee’s role is to:

w identify key areas of focus

w determine departmental priority for budget initiatives in collaboration with the minister

w ensure that the synergies between the various proposals that form the budget strategy are identified and optimised

w assess risks to the Department’s budget policy agenda and develop mitigating strategies.

People Committee

The People Committee ensures that human resource strategies are aligned with the Department’s strategic directions and business priorities. The committee is chaired by Deputy Secretary and Chief Operating Officer Bruce Hunter. Members include the Group Manager Corporate Support; five branch managers (People; Affordable Housing; Seniors and Means Test; Family and Child Support; and Financial Accounting); one state manager (Tasmania); and the Executive Director/Manager of the Townsville Indigenous Coordination Centre.


w oversee, support and monitor the implementation of the Department’s People Strategy—our strategic human resource framework

w provide strategic advice to the Executive Management Group on integrating FaHCSIA’s people planning and development with its strategic directions and business priorities

w provide strategic leadership to foster a workforce that operates in line with the Australian Public Service (APS) Values and Code of Conduct and our departmental values and leadership capabilities


w provide leadership to foster an innovative, safe, flexible, responsive, capable, ethical and accountable workforce

w engage the Executive Management Group in strategic dialogue about current and emerging people issues and provide timely and informed advice against the backdrop of wider workplace reforms and business needs.

Payments Committee

The 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 Liza Carroll. Membership includes six group managers (Social Policy; Families; Disability and Carers; Community Engagement and Development; Housing; Indigenous Programs; and Economic Development) and two branch managers (Social Security Policy and Budget Development).


w support the FaHCSIA Executive in managing social security payments with a cross-payment perspective

w support existing assurances to the RAAC and the Secretary on payment performance and integrity for the Budget and the annual report (this is achieved by regular monitoring and reporting on payment accuracy, payment correctness, debt levels and appeals)

w provide a platform for sharing information on new policy proposals and testing their implications across payments

w support the implementation of high-priority and sensitive initiatives and processes

w support FaHCSIA’s interaction with policy departments (for example, the Department of Education, Employment and Workplace Relations and the Department of Human Services) on social security matters and with Centrelink at bilateral management arrangement committees and strategic business discussions

w provide a forum to establish common approaches to address particular customer groups’ needs

w commission work on the development of an overarching performance framework for payments, including the identification of common key performance indicators and benchmarks.

In carrying out its role, the committee uses a whole-of-department approach and focuses on three streams of work: policy; performance management and service delivery; and evidence and data management.

Project Investment Board

The Project Investment Board provides the Executive with advice and recommendations on capital budgeting and investment across the Department.

With the introduction of Departmental Capital Budget appropriations under the Government’s Operation Sunlight reforms, from 2010–11 the board will also provide the Executive with recommendations on the Departmental Capital Budget element of the Department’s overall capital budget.

The board is chaired by the Group Manager Business and Financial Services (and Chief Finance Officer); the other members are the Chief Information Officer and the Group Manager Corporate Support. Committee members are supported by their respective branch managers.

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The board’s key objectives are to:

w ensure that the Department invests in strategically important opportunities

w provide the Executive with options for balancing demands on capital, including demands on Departmental Capital Budget appropriations from 2010–11 onwards

w set the direction for future investments by annually reviewing 5–10-year capital and asset replacement plans

w recommend major capital projects to the Executive

w advise project committees and groups on the strategic directions for the following financial year.

Compliance and Integrity Committee

The Compliance and Integrity Committee strengthens FaHCSIA’s focus on accountability, good governance and ethical practices within FaHCSIA and in relation to the entities with which FaHCSIA deals, particularly entities that receive and are accountable for public money. The committee is chaired by Deputy Secretary Serena Wilson. Members include two group managers (Program Performance and Corporate Support), one state manager (Victoria) and one branch manager (Disability and Carers Programs).

The committee:

w contributes to FaHCSIA’s accountability and ethical practices frameworks, including through fraud awareness and control, and the promotion of ethical behaviour by FaHCSIA employees

w oversights criminal investigation, compliance and APS Code of Conduct cases and programs undertaken by FaHCSIA, ensuring that they:

– conform to FaHCSIA’s strategic objectives

– conform to applicable laws, prescribed practices and mandated procedures

– are conducted and completed effectively

– generate appropriate and prompt reporting.

Information and Communications Technology Committee

The Information and Communications Technology Committee provides leadership and a 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 ICT project funding within the broad directions set by the Executive Management Group.

Deputy Secretary and Chief Operating Officer Bruce Hunter chairs the committee. In 2009–10, the other members were the Chief Information Officer; the group managers of Business and Financial Services, Program Performance and Families; the Registrar of Indigenous Corporations; and the Branch Manager Property, Environment and Protective Security.

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, considers and recommends ICT funding to the Executive Management Group and monitors overall ICT performance. This involves:

w determining relative ICT priorities from a business perspective

w ensuring that project benefits are defined and realised

w monitoring and advising the Executive Management Group on investment risks

w approving, rejecting or deferring ICT proposals.

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


Program Management Committee

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

The committee also provides direction on program management policies, common business processes, compliance and legislative requirements and the strengthening of program management capability, and provides direction to the Program Branch Managers Forum.

The committee is co-chaired by deputy secretaries Rob Heferen and Liza Carroll. The other members are group managers responsible for program administration, two state office representatives and branch managers from the Program Performance Group.

During 2009–10, the Funding Management System Steering Committee provided information to the Program Management Committee on system-related business development opportunities and directions.

Research and Evaluation Committee

The 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 committee has overall responsibility for research and evaluation in FaHCSIA and approves all research and evaluation projects.

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

w the research and evaluation program is focused on the Government’s policy agenda and aligned with FaHCSIA’s strategic themes

w high-quality research standards are established and maintained

w potential risks related to the research and evaluation program are identified and managed appropriately

w research and evaluation activities comply with relevant legislation, regulations and codes of conduct

w data management activities align with business needs and priorities.

The committee is chaired by Deputy Secretary Serena Wilson. It comprises five group managers (Social Policy; Office of Indigenous Policy Coordination; Housing; Families; and Disability and Carers) and three branch managers (Research and Analysis; Office for Women; and Information Services). The managers of the Strategic Policy branch and the Performance Management and Modelling branch are advisers to the committee.

Commonwealth–State Relations Committee

The Commonwealth–State Relations Committee discusses relevant issues, develops solutions and provides coordinated advice to the Executive Management Group and the Secretary on the management of the Department’s Commonwealth–state business.

The committee is chaired by Deputy Secretary Andrew Tongue. Its members are senior managers from ten groups (Social Policy; Community Engagement and Development; Families; Women and Children; Disability and Carers; Social Housing Initiative; Indigenous Programs and Economic Development; Office of Remote Indigenous Housing; Office of Indigenous Policy Coordination; and Program Performance) and two state managers from the Network Management Group, currently from Queensland and Tasmania.

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w oversee, support and monitor the implementation of the Department’s Commonwealth–state business

w oversee FaHCSIA-wide processes and responsibilities under the COAG framework for federal financial relations

w ensure that FaHCSIA works effectively with ministerial councils and working groups to progress desired policy outcomes

w ensure that processes are in place to enable FaHCSIA to have access to accurate and timely information to assist the policy development process

w advise the Executive Management Group on current and emerging Commonwealth–state issues.

The committee meets formally six times each year. Its secretariat is administered by the Strategic Policy Branch.

Strategic and business planningFaHCSIA 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. In developing our business plans, we take into account identified strategic risks and other specific risks.

Business planningBusiness planning is the process that defines 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.

FaHCSIA reviews plans formally midway through the year and updates them throughout the year in response to changes in 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 managers are linked to the priorities of their respective business plans.

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

The Executive Management Group is responsible for FaHCSIA’s management of risk, supported by the RAAC, which oversees the implementation and effectiveness of the Department’s risk management strategy.

The 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:

w Strategic risks are identified, treated and monitored at a high level by the Executive and group managers and at an operational level throughout the Department.

w Program-level risks are identified, treated and monitored by branch, section and state managers.

w Project and other operational risks are identified, treated and monitored by section managers and their staff.

Business continuity planning and managementOur business continuity management aims to ensure that the Department is prepared to deal with any interruptions to its critical service delivery. As part of our commitment to effective risk management, we maintain robust business continuity plans across all of our critical business processes and enabling services. The plans support our mission-critical activities to ensure that we can deliver the services that must continue to be provided to our ministers, the community, service providers, suppliers, staff and other governments.

If a disaster with the potential to significantly disrupt our service delivery occurs, we are well prepared to implement alternative strategies to ensure that our critical business processes continue with minimum interruption. We regularly review and test all business continuity plans to ensure that they remain valid and effective.

The Crisis Response Team, chaired by Deputy Secretary and Chief Operating Officer Bruce Hunter, has the authority to officially declare a disaster and activate the Department’s business continuity response. The team comprises senior executive staff drawn from all our critical business areas. At least once a year, FaHCSIA conducts half-day scenario exercises involving senior executive staff with a designated role on FaHCSIA’s Crisis Response Team. FaHCSIA conducted a Crisis Response Team scenario exercise on 11 November 2009.

The Department’s business continuity preparedness enabled FaHCSIA to effectively and efficiently respond to a significant power outage, which occurred at 9.07 am on Friday 11 June 2010. In that outage, Canberra’s Tuggeranong Valley suffered a power failure across several suburbs. The failure extended to the primary information technology (IT) data centre servicing FaHCSIA and Centrelink. As a consequence, power to FaHCSIA and Centrelink offices in Tuggeranong was disrupted and FaHCSIA’s IT systems were shut down abruptly.

The Crisis Response Team was activated to coordinate and manage any business continuity problems, in particular, maintaining ministerial support and the processing of Centrelink payments. These mission-critical activities were successfully addressed by implementing manual workarounds that had been identified and tested in our business continuity planning. As a result, none of FaHCSIA’s critical business processes were interrupted.

Internal audit arrangementsIn 2009–10, FaHCSIA conducted internal audits of risks across the Department and took appropriate action on audit recommendations to reduce its risk exposure. The audits promoted compliance and operational efficiency and effectiveness through better practice. All audit recommendations were closely monitored throughout the year.

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Insourcing and increased capability enabled FaHCSIA to complete the Audit Work Plan at a lower cost. In 2009–10, the RAAC signed off on 19 audit reports on the following topics:

w FaHCSIA’s corporate governance model

w Closing the Gap

w Commonwealth–state funding arrangements

w program monitoring

w mental health and autism programs

w the financial viability of third-party service providers

w the Social Housing Initiative

w remote Indigenous housing

w resourcing of the FaHCSIA network

w regulatory compliance and business processes

w business support functions

w accounts payable functions

w the maturity of risk management practices

w governance and control of business data processes

w IT change management

w IT capacity and performance management

w FaHCSIA’s data centre relocation

w FaHCSIA’s Internet gateway insourcing

w transmission of sensitive information—protected enclave (FaHCSIA’s secure working environment).

Protective securityThe Department produces, collects and holds a considerable amount of official and sensitive information. It is therefore vital for the Department to provide an appropriate security environment that protects its assets—specifically, its people, information, infrastructure, and business reputation.

A National Protective Security Risk Review was completed in December 2009, and key recommendations have been addressed. The Department’s 2010–14 Protective Security Plan is now complete, along with plans to implement FaHCSIA-specific departmental security instructions in 2010.

In 2009–10, the Department continued to conduct security awareness training for staff and contractors. The training covered a range of topics, including information security, physical security, personnel security, and incidents and investigations. Training sessions were delivered to graduates, branches and some Indigenous coordination centres throughout the country, covering 400 ongoing, non-ongoing and contracted staff. In addition, the Department developed and implemented a security awareness deployment program to deliver ongoing key protective and IT security messages to staff and contractors.

In 2009–10, FaHCSIA issued, transferred or reviewed 845 national and non-national security clearances and significantly strengthened contractor access arrangements across the Department.

The Department has implemented a uniform and networked access control system across Australian Capital Territory sites and one state location. This has significantly strengthened physical security at those locations. A long-term strategic plan to link access control systems across the wider FaHCSIA network has commenced.


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

In addition to the obligations imposed by the Privacy Act 1988, legislation administered by FaHCSIA contains 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 Bilateral Management Arrangement with its partner agencies includes mechanisms that allow FaHCSIA to monitor and contribute to the protection of customer privacy and enable parties to cooperate in handling matters related to privacy (see also ‘Fraud and compliance’ below).

Reports by the Privacy Commissioner

FaHCSIA liaises with the Privacy Commissioner on privacy policy development 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 2009–10, the Office of the Privacy Commissioner received three complaints against FaHCSIA. One was declined (and closed); at 30 June 2010, the Privacy Commissioner was still conducting preliminary inquiries into the other two.

Privacy compliance and investigations

FaHCSIA treats its privacy obligations seriously. FaHCSIA ensures that investigations are carried out in relation to any complaints or allegations of breaches of privacy or confidentiality.

Fraud and complianceFaHCSIA’s compliance framework aims to build and support a compliance culture that focuses on FaHCSIA’s outcomes and reflects:

w a commitment to best practice

w the application of risk-based decision making

w transparency and accountability

w the pursuit of continuous improvement.

FaHCSIA’s fraud control framework ensures that the Department has a robust and reliable system in place to aid in preventing, detecting, reporting and responding to fraud allegations throughout the Department. This framework complements Commonwealth laws, FaHCSIA’s corporate priorities, and policies and guidelines on fraud control.

The Compliance Branch provides operational support to FaHCSIA’s state and territory network. The support ranges from providing advice on program compliance to assisting with compliance reviews of FaHCSIA-funded service providers where serious and complex noncompliance is suspected.

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Awareness raising

The FaHCSIA fraud awareness strategy meets the different training needs of staff in the national office, the state and territory network and remote locations. The strategy incorporates a number of different delivery methods, including face-to-face, videoconferencing and online. The strategy also provides regular fraud-related messages to staff.

Fraud control and investigation

FaHCSIA’s fraud control framework guides the management of fraud-related activities. The framework includes the following key elements:

w a fraud policy statement and a definition of fraud

w responsibilities for fraud control in FaHCSIA

w strategies and actions

w fraud awareness training

w prosecution policy

w whistleblower policy.

An integral part of the framework is the Fraud Control Plan, which is updated every two years to respond to changes in the Department and to address new and continuing risks. The current plan applies from 1 July 2009 to 30 June 2011. FaHCSIA undertakes a rolling risk assessment process as part of its fraud control planning process. This involves extensive consultation with staff at all levels within the Department. The process also incorporates a fraud risk survey to provide better identification of potential risks through consultation.

During the year, the Compliance Branch investigated allegations of fraud involving FaHCSIA programs and services and allegations of criminal conduct by FaHCSIA employees. Risks identified through the course of investigations were reported to relevant governance committees and program and network areas as required.

All FaHCSIA investigators have the mandatory qualifications outlined in the Australian Government Investigation Standards and the Commonwealth Fraud Control Guidelines 2002.

FaHCSIA works closely with other Australian Government agencies responsible for fraud prevention and investigation by sharing information and developing knowledge of fraud risks, fraud intelligence and trends affecting FaHCSIA’s program areas.

Prosecutions—Centrelink Transfer Payments

In 2009–10, Centrelink referred 760 cases of alleged social security fraud to the Commonwealth Director of Public Prosecutions, who prosecuted 547 cases, resulting in 492 convictions (a 98.5 per cent conviction rate).

Identity fraud

Of the 2,639 reviews conducted in 2009–10, 33 cases of identity fraud were identified, resulting in 421 debts with a value of $5.13 million.


The Department’s fraud control arrangements are certified below.

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Assurance mechanisms for payments and services

Bilateral management arrangement

In September 2008, the Government announced that Centrelink would be directly funded from 1 July 2009. As a result of this change, the bilateral management arrangement (BMA) between the Department of Human Services, Centrelink and FaHCSIA, encompassing relevant relationship, governance and reporting requirements, was developed and agreed by the Strategic Partnerships Interdepartmental Committee on 24 November 2009.

The BMA is a risk management agreement developed to support the multilateral strategic partnership arrangement (see page 24), and specifically defines the objectives, principles, mechanisms and respective roles and responsibilities of the organisations.

The arrangement has streamlined administration and reporting, providing a more strategic focus on outcome performance and business improvement between agencies.

The BMA contains a confidence framework and associated assurances in relation to payments and programs relevant to the relationship between FaHCSIA and the Department of Human Services/Centrelink.

Grant management

FaHCSIA has introduced a common business model for community program funding which supports the achievement of the seven FaHCSIA outcomes. The model is consistent with government priorities to reduce red tape, support provider engagement and provide a greater focus on program performance and impact. It was developed in response to Operation Sunlight, the Government’s reform agenda to improve the openness and transparency of public sector budgetary and financial management and to promote good governance practices.

The common business model is underpinned by a risk-based approach to funding processes and aims to provide greater consistency in applying grant management processes. Importantly, the model is not a one-size-fits-all approach; flexibility across programs and service providers is integral. This means applying a differentiated approach to controls (funding agreements, selection, acquittals, monitoring and reporting), determined by the level of risk assessed for the program, provider and service delivery within a common framework.

Control frameworkThe FaHCSIA control framework focuses on preventing incorrect payments and fraud, maximising payment accuracy and detecting incorrect payments and fraud. It relies on a risk management approach to optimise compliance. FaHCSIA works with Centrelink to:

w develop, implement and support systems and procedures to prevent, identify and investigate incorrect payments and fraud

w undertake activities in debt prevention, reviews, analysis, identification, debt raising and recovery, as well as investigation and prosecution

w monitor, analyse and report on performance

w provide information on 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 the integrity of payments

The FaHCSIA control framework includes:

w alerting customers to their obligations

w verifying relevant facts about customers, including their identity and their personal and financial circumstances

w requiring customers to provide their tax file numbers and, where appropriate, their partners’ tax file numbers as a condition for receipt of payment

w requiring pensions and allowances to be paid directly into customers’ accounts to reduce the occurrence of cheque fraud

w reviewing the circumstances of customers considered to be at risk of receiving incorrect payment

w promptly seeking recovery of debts

w referring more serious cases of suspected fraud to the Commonwealth Director of Public Prosecutions.

Measuring the accuracy of program outlays

The Department’s random sample survey program provides an estimate of the accuracy of program outlays and intelligence about emerging outlay risks. The surveys also provide useful information that assists in the policy development process.

The program provides assurance information required under the BMA. Random samples enable a point in time analysis of customers’ circumstances.

During 2009–10, on FaHCSIA’s behalf, Centrelink undertook random sample surveys of FaHCSIA’s customers.

The surveys are designed to measure inaccuracy as a result of negligence, circumstance or error; they do not capture payment errors due to deliberate fraud. Accuracy can then be derived as the complement of inaccuracy. The results are presented in Table 13.1.

TABLE 13.1 Payment accuracy by payment type, 30 June 2010

Payment typea Number of

customers surveyed Accuracy (%)b

Confidence interval (%)c

Age Pension 5,000 98.80 0.04

Carer Allowance 250 98.34 0.01

Family Tax Benefit 2,250 99.03 0.16

Special Benefit 300 96.87 1.78

Disability Support Pension 2,757 98.68 0.21

Carer Payment 1,500 97.43 0.70

Overall rate of accuracy 98.76 0.07

a Estimates refer to the 12 months to 30 June 2010, except for Carer Allowance, for which the reference period was the 12 months to 31 March 2010.

b Accuracy is the ratio of gross accurate 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.

c The confidence interval shows the range in which the true value is likely to lie and varies with the size of the sample and variability in population.

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Debt raising and recovery

Centrelink raised 649,943 FaHCSIA debts valued at $354.8 million during 2009–10. Of that amount, debts raised for recovery totalled $328.2 million; a further $26.6 million was waived at determination.

Recoveries of FaHCSIA and Family Assistance Office debts by cash and withholdings amounted to $248.9 million. These figures include compensation debts.

The figures exclude Family Tax Benefit reconciliation and tax return non-lodger debts. Details of debt management performance are in Table 13.2.

TABLE 13.2 Debt management performance, 2009–10

Performance indicator Actual

Debt raised Total debt determined as percentage of the undetermined debt base for the financial year was 66.7%

Debt recovered Total debt recovered was 75.8% of debts recovered as a portion of the debts raised (in dollar terms)

Debt under management Total value of debts under recovery as a percentage of the debt base for the financial year was 75.1%

In 2009–10, review activity resulted in savings of:

w $315.37 million from 160,680 compliance and fraud reviews

w $59.49 million from 301,093 profiling reviews.

Compensation payments

The 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 taxpayer-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.

Under the compensation provisions in the Social Security Act 1991:

w people can be compelled to claim for compensation where compensation may be payable

w past payments of social security can be recovered from arrears payments of periodic compensation payments and lump sum compensation payments

w social security payments cannot be paid within preclusion periods due to the receipt of lump sum compensation payments

w periodic payments, such as weekly workers compensation payments, 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 that the community understands the effect of compensation on social security benefits, Centrelink provides information on its web site for compensation recipients, compensation authorities, and legal, insurance, union and community representatives.

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, achieves estimated savings to outlays of $590 million over the period affected by the relevant compensation payments.


Act of grace paymentsDuring the 2009–10 financial reporting year, the total amount of act of grace payments was $0.388 million. The total number of act of grace payments made during the reporting period was 58.

Ethical standardsThe Department has continued to roll out its strategy for the promotion, management and assurance of ethical behaviour in FaHCSIA.

New initiatives under the strategy include:

w the introduction of an ‘Ethical Behaviour in Practice’ statement, which has been published on the Department’s intranet and in a range of departmental manuals that employees use every day

w the development of an ethical behaviours communication plan, which provides the framework for regular messaging to employees on ethical issues

w further enhancement of the ethical behaviours intranet site, which provides employees with advice on a wide range of work-related behavioural issues and links to more detailed information published by the Australian Public Service Commission (APSC)

w the inclusion of a statement on respect and courtesy in the workplace in information provided to all new employees.

The FaHCSIA People Committee regularly evaluates the effectiveness of the ethical behaviour strategy.

The FaHCSIA staff survey conducted in March 2010 showed that 96 per cent of FaHCSIA employees are aware of and have a good understanding of the APS Values and Code of Conduct.

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 to improve service to customers, such as by 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 FaHCSIA’s web site.

Complaints managementThe current model for handling complaints in FaHCSIA was introduced in 2008–09. The goals of the complaints management system are to:

w provide our clients with a timely, professional and consistent approach to handling complaints

w provide information to assist FaHCSIA to improve its customer service and administrative processes.

The complaints handling team provides a central point of contact for clients wishing to express concerns about the Department or one of its funded service providers.

In 2009–10, 73 complaints were recorded. This compares with 93 complaints registered in 2008–09. Of the 73 complaints received for the 2009–10 financial year, 60 have been resolved and 14 are outstanding. The majority of the complaints received by the Department related to FaHCSIA-funded service providers within the Family Relationship Services program.

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Senior Executive Service remunerationSenior Executive Service (SES) employees can negotiate individual remuneration and conditions, which are authorised by determinations made under section 24(1) of the Public Service Act 1999. The FaHCSIA SES remuneration policy sets the framework under which those negotiations take place.

162 Chapter 14 External scrutiny | Part 3 Management and accountability | FaHCSIA Annual Report 2009–10

Chapter 14External scrutiny

The Department’s operations are subject to external scrutiny from a range of entities, including the Australian National Audit Office (ANAO), the Office of Evaluation and Audit, the Commonwealth Ombudsman and parliamentary committees.

Reports by the Australian National Audit OfficeThe Department’s operations were subject to external scrutiny from the ANAO during 2009–10. The Auditor-General tabled five audit reports in parliament relevant to departmental operations. The Department formally responds to ANAO reports in writing, and the ANAO includes the Department’s responses in its reports. The ANAO makes its reports available on its web site <www.anao.gov.au>. The objectives of the 2009–10 engagements are set out below.

No. 17: Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2009 (tabled 17 December 2009)

The financial statements audits are an independent examination of the financial accounting and reporting of the Department. The results of the examination present an audit opinion on whether the financial statements fairly present the entity’s financial position and the results of its operations and cash flows. The accounting treatments and disclosures in the financial statements are assessed against relevant legislation and accounting standards.

No. 19: Child Support Reforms: Stage One of the Child Support Scheme Reforms and Improving Compliance (tabled 18 December 2009)

The audit assessed how effectively the Department of Human Services, FaHCSIA and Centrelink managed the implementation of Stage One of the Child Support Scheme reforms and the Improving Compliance Program.

No. 36: Emergency Management and Community Recovery Assistance in Centrelink (tabled 19 May 2010)

The audit assessed Centrelink’s emergency management framework and community recovery operations in general, with a focus on the 2009 North Queensland floods and Victorian bushfires. It also evaluated FaHCSIA’s role during those events due to its key role in establishing the policy parameters of the services delivered by Centrelink and in addressing issues arising from policy implementation.

No. 40: Application of the Core APS Values and Codes of Conduct to Australian Government Service Providers (tabled 26 May 2010)

The audit assessed the extent to which Australian Government agencies ensure that service providers are made aware of the core Australian Public Service (APS) Values and Code of Conduct and that they are monitored.

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FaHCSIA Annual Report 2009–10 | Part 3 Management and accountability | Chapter 14 External scrutiny 163

No. 41: Effective Cross-Agency Agreements (tabled 26 May 2010)

The audit assessed the administrative processes of agreements between Australian Government agencies. The audit reviewed current government policy and better practice guidelines, and examined cross-agency agreements to establish audit criteria that lead to the ability to identify better practice principles.

Office of Evaluation and AuditBefore merging with the ANAO in December 2009, the former Office of Evaluation and Audit tabled six audit reports in parliament involving FaHCSIA’s operations. The objectives of those engagements are set out below.

Performance Audit of Money Management Service Strategies (tabled July 2009)

The audit assessed FaHCSIA’s management of money management service strategies and tools, and their contribution to achieving the Financial Management Program objectives.

Evaluation of the Capacity Development Program of the Office of the Registrar of Indigenous Corporations (tabled August 2009)

The evaluation assessed the design and delivery of the Office of the Registrar of Indigenous Corporations’ Capacity Development Program. It focused on the governance training component and design of the program and its components; on the impact of the program on the performance of Aboriginal and Torres Strait Islander corporations; and on delivery of the program, including strategic targeting, logistic issues and the resources that support delivery.

Performance Audit of the Indigenous Leadership Program (tabled November 2009)

The audit assessed the performance of FaHCSIA’s management of the Indigenous Leadership Program and the level of achievement of the program’s objectives. It focused on the management and delivery of the program. In particular, the audit assessed the National Leadership Program. The audit included some analysis of the Indigenous Women’s Program.

Evaluation of the Community Development Employment Projects (CDEP) Program (tabled November 2009)

The evaluation assessed the management performance and appropriateness of the CDEP program to Aboriginal and Torres Strait Islander participants and communities in achieving the outcomes of real jobs and viable business enterprises.

Performance Audit of the International Repatriation Program (tabled December 2009)

The audit assessed the performance of FaHCSIA’s management of the International Repatriation Program, with a focus on the effectiveness of program management in achieving the defined outcomes.

Reports by the Commonwealth OmbudsmanThe Commonwealth Ombudsman received 186 approaches about the Department in 2009–10, a decrease from the 200 approaches received in 2008–09. Of the approaches, 31 were by telephone, 4 in writing, 136 in person, 8 via email, 1 by fax, and 6 via the Ombudsman’s online complaints form.

During 2009–10, the Commonwealth Ombudsman closed 185 matters. In seven investigations, a finding of administrative deficiency was recorded.


Judicial decisions

Federal CourtThere was one judicial decision of major significance to the Department in the 2009–10 financial year.

In Shaw v Minister for Families, Housing, Community Services and Indigenous Affairs [2009] FCA 1397, the Federal Court dismissed two applications: one seeking review and prohibition in relation to the Government’s possible acquisition of Aboriginal town camps in and around Alice Springs; the other seeking declarations, injunctions and prohibition in relation to the proposal by various town camp housing associations to grant 40-year subleases to the Commonwealth.

The proceedings arose from the Government’s desire to obtain security of tenure to facilitate substantial public investment in the town camps. Before the proceedings began, the Government and the housing associations had been engaged in lengthy negotiations for a 40-year sublease. The court dismissed the applications, holding, among other things, that the minister had provided natural justice in relation to the possible acquisition, and that the entry into long-term subleases was not contrary to the interests of the residents of the town camps as a whole.

Coroner’s Court of Western AustraliaIn April 2010, the Western Australian Coroner convened an inquest into the death in May 2008 of a person who was to receive respite care funded through the Mental Health Respite component of the Targeted Community Care Program. Services were to be provided via a brokerage arrangement through one of the Commonwealth respite and carelink centres funded jointly by FaHCSIA and the Department of Health and Ageing.

In his findings, handed down in June 2010, the Coroner recommended that the Commonwealth put in place procedures to ensure that providers satisfy basic safety requirements and are aware of, and bound by, contractual obligations requiring compliance with responsibilities as a service provider. The Department will consider the findings and their implications for the current arrangements.

Since 2008, the Commonwealth has produced a guide for community care service providers on the appropriate action to take when a community care client does not respond to a scheduled visit. In addition, the Department has implemented measures to improve intake assessments and referrals to ensure that the respite care provided is appropriate to the needs of the carer and the care recipient.

Administrative tribunal decisionsNo decisions of any administrative tribunals during 2009–10 have had a significant impact on the operations of the Department.

Reports by parliamentary committeesThe portfolio appeared before the Senate Community Affairs Committee Estimates inquiry on three occasions during 2009–10. The portfolio also gave evidence and/or made submissions to a number of parliamentary committee inquiries, as set out below.

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Joint Standing Committee on Treaties—Social Security Agreements between Australia and Poland, the Czech Republic and the former Yugoslav Republic of MacedoniaThe Joint Standing Committee on Treaties reviews and reports on all treaty action proposed by the Government before action that binds Australia to the terms of the treaty is taken.

Witnesses from the Department attended a public hearing for the Agreement between Australia and the Republic of Poland on Social Security on 1 February 2010. The committee reported on 4 February 2010, recommending that binding treaty action be taken.

On 10 May 2010, departmental witnesses appeared in a public hearing relating to agreements with the Czech Republic and the former Yugoslav Republic of Macedonia. The committee reported on 21 June 2010 and recommended that binding treaty action be taken.

Joint Standing Committee on MigrationThe Joint Standing Committee on Migration is inquiring into issues related to health requirements contained in the Migration Act 1958.

The Department provided a submission to the inquiry on 13 November 2009 and appeared before the committee on 25 November 2009. In response to questions taken on notice during its appearance, the Department made a supplementary submission on 9 March 2010. The committee is yet to table its report.

House of Representatives Standing Committee on Employment and Workplace RelationsThe House of Representatives Standing Committee on Employment and Workplace Relations inquired into pay equity and associated issues relating to increasing female participation in the workforce.

Officers from the Equal Opportunity for Women in the Workplace Agency and Office for Women appeared before the committee on 20 August 2009. The committee tabled its report on 23 November 2009.

House of Representatives Standing Committee on Family, Community, Housing and YouthThe Minister for Housing asked the House of Representatives Standing Committee on Family, Community, Housing and Youth to inquire into the role and scope of potential new homelessness legislation.

The Department made a written submission to the inquiry on 28 August 2009, and officers of the Department appeared before the committee on 28 October to give evidence and answer questions. The committee tabled its report, Housing the homeless, on 26 November 2009.

House of Representatives Standing Committee on Aboriginal and Torres Strait Islander AffairsThe House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs inquired into the high level of involvement of Aboriginal and Torres Strait Islander juveniles and young adults in the criminal justice system.


The Department made a submission to the inquiry and appeared before the committee on 27 May 2010. The committee is yet to table its report.

House of Representatives Standing Committee on PetitionsOn 25 November 2009 the Department made a brief oral submission to the House of Representatives Standing Committee on Petitions on a petition relating to disaster recovery payments for residents in Coffs Harbour, Bellingen and Nambucca affected by floods.

On 25 November 2009, the Department gave evidence to the committee on a petition requesting that a national apology be given by the parliament to ‘Forgotten Australians—people who were in institutional care as children’.

Senate Community Affairs Legislation CommitteeThe Senate Community Affairs Legislation Committee inquired into the provisions of the Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Bill 2009; the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (2009 Measures) Bill; and the Families, Housing, Community Service and Indigenous Affairs and Other Legislation Amendment (Restoration of Racial Discrimination Act) Bill 2009 to assess the effectiveness of proposed amendments to:

w improve the social and economic conditions, social inclusion and life outcomes of all the disadvantaged individuals and communities affected by the Northern Territory Emergency Response (NTER) measures, and income management, including in the Northern Territory

w reinstate the Racial Discrimination Act 1975 in relation to the NTER, and the income management regime as it applies in the Northern Territory and Queensland.

The Department appeared before the committee on 4 February 2010 and 26 February 2010 and provided written answers to questions taken on notice during the hearings. The report was tabled on 10 March 2010.

The Paid Parental Leave Bill 2010 was referred to the Senate Community Affairs Legislation Committee on 13 May 2010.

The Department gave evidence to the committee on 19 May 2010 and prepared answers to questions taken on notice during the hearing. The committee tabled its report on 3 June 2010. The legislation was passed by the parliament on 17 June 2010.

Senate Community Affairs References Committee inquiry into suicide in AustraliaThe Senate Community Affairs References Committee inquired into the impact of suicide on the Australian community, including high-risk groups such as Aboriginal and Torres Strait Islander youth and rural communities.

The Department provided a submission to the committee and appeared before it on 1 March 2010 and 18 March 2010. The committee tabled its report on 24 June 2010.

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Senate Legal and Constitutional Affairs Committee—Inquiry into the Native Title Amendment Bill (No. 2) 2009The Department provided evidence to the Senate Legal and Constitutional Affairs Committee inquiry into the Native Title Amendment Bill (No. 2) 2009 through a combined submission with the Attorney-General’s Department and gave evidence at a public hearing on 28 January 2010. The report was tabled on 24 February 2010.

Committees of other parliaments

Drugs and Crime Prevention Committee—Parliament of Victoria

The Drugs and Crime Prevention Committee of the Victorian Parliament conducted an inquiry into people trafficking for sex work. The Department gave evidence to the committee at a public hearing in Canberra on 2 December 2009. The committee tabled its report on 8 June 2010.

Council of Territory Cooperation—Legislative Assembly of the Northern Territory

The Council of Territory Cooperation inquired into the delivery of the Strategic Indigenous Housing and Infrastructure Program.

The Department gave evidence to the committee on 10 November 2009, 19 November 2009, 22 March 2010 and 20 April 2010. The first report was tabled on 24 February 2010 and the second on 6 May 2010.

168 Chapter 15 Human resources management | Part 3 Management and accountability | FaHCSIA Annual Report 2009–10

Chapter 15Human resources management

OverviewFaHCSIA relies on the capabilities and commitment of its staff to achieve its purpose of improving the lives of Australians. We are proud of, and value, the diversity of skills, experience and perspectives our people bring to the work of the Department.

FaHCSIA values, recognises and rewards its people. We have a strong performance culture focused on building staff capability, including leadership, through effective attraction and retention strategies. Our staff respect and encourage diversity in their working environment.

To support its people, FaHCSIA has a comprehensive and integrated human resources management framework, the FaHCSIA People Strategy 2009–2011: Great people, great future. Through successful implementation of key initiatives in the strategy we made great progress in strengthening our people capability during 2009–10. This chapter provides an overview of our key achievements.

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

w understand the factors affecting their workforce

w quantify the staff supply and demand factors affecting the delivery of departmental outcomes

w develop staff attraction, retention and development strategies to meet workforce requirements.

Graduate programFaHCSIA recruits graduates from a range of academic disciplines, including arts, law, social sciences, IT, economics and finance. FaHCSIA also recruits Aboriginal and Torres Strait Islander graduates and cadets through the APSC’s Indigenous Pathways to Employment Program. Incoming graduates form a critical part of the Department’s organisational renewal strategy.

FaHCSIA provides its graduates with a combination of on-the-job development and formal training. By the end of 2010, graduates will complete a course leading to the award of a Certificate IV in Government. Graduates also take part in the internal training available to all FaHCSIA staff.

Participation in the graduate program requires graduates to assume a variety of roles in two discrete work placements in different functional areas of the Department. They undertake a combination of administrative tasks and policy and program development and research.

FaHCSIA Annual Report 2009–10 | Part 3 Management and accountability | Chapter 15 Human resources management 169

Case study: 2010 graduate projects—Indigenous community development, capacity building and planning

In 2010 the FaHCSIA graduate program introduced project work as part of the graduates’ formal Learning and Development calendar.

Each project is designed to expose FaHCSIA graduates to the priority strategic work of the Department and to provide them with an insight into how evidence-based policy is formed. The project work forms part of the assessment for the Certificate IV in Government, which underpins the graduate program.

In order to identify appropriate projects for the 2010 graduate groups, People Branch engaged the FaHCSIA SES to submit project ideas. From these submissions, People Branch facilitated further discussion with the project owners and scoped two distinct FaHCSIA business projects.

In consultation with Rob Heferen, Deputy Secretary, and Geoffrey Richardson, Branch Manager, Governance and Community Strategies, a piece of work was broadly defined to form the basis of the project for one of the graduate teams. The project was scoped as an action learning project, intended to develop an evidence-base for community development and capacity-building approaches in Australian Indigenous communities. The project findings will inform and underpin the Australian Government’s commitment to resetting the relationship with Aboriginal and Torres Strait Islander people.

Project managers Donna Murray and Doug Hynd provided the scope of the project, which incorporated a range of skill sets so that the graduates could learn from each other in a team environment. The graduate team from People Branch had a central role in liaising with our service provider, CIT Solutions, to ensure that the learning outcomes articulated in the project scope would align with, and satisfy the assessment requirements for, the Certificate IV.

The graduate team members presented their final report to Rob Heferen and Geoffrey Richardson and received very positive feedback from the key stakeholders. The final report will be circulated throughout FaHCSIA to support future Indigenous Australia community development and capacity-building projects and policies.


Graduates gain general experience working in a major policy department that exposes them to the policy development and implementation processes, and familiarises them with work standards and processes in the Australian Public Service (APS).

On completion of their development program, the graduates advance to the APS 4 level.

In 2010, FaHCSIA recruited 82 graduates; most were generalists, but a small number were IT or finance specialists.

The average retention rate each year for the past three years for staff who joined FaHCSIA through the graduate program has been approximately 89 per cent.

Staff retention and turnoverIn 2009–10, the Department’s voluntary separation rate was 10.81 per cent (a decrease from 11.2 per cent in 2008–09). These figures do not include staff who separated from the Department due to the end of their contract or redundancy. The InfoHRM (a benchmarking service subscribed to by a number of APS agencies) target benchmark for APS agencies in 2009 was 8.1 per cent and the median was 9.82 per cent. The lower separation rate in 2009–10 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 as a consequence of the global financial crisis.

The Department had a retention rate of 87.07 per cent, an increase from 82.71 per cent in 2008–09. Retention rates measure the percentage of staff that were retained throughout the entire year. The InfoHRM median benchmark for the 2009 calendar year was 86.46 per cent.

Maximising attendanceThe FaHCSIA Maximising Attendance Strategy was launched in October 2009. It is designed to encourage a positive attendance culture and makes it easier for the Department to manage unscheduled leave. Figures 15.1 and 15.2 respectively show four-year trends in unscheduled absences and unscheduled absences by leave type. The data suggests that we are beginning to see the benefits of the strategy, but ongoing monitoring will be required to track improvements over time.

FIGURE 15.1 Unscheduled absences per full-time equivalent employee, 2006–07 to 2009–10

0

2

4

6

8

10

12

14

16

2006–07

DA

YS

2007–08 2008–09 2009–10

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FIGURE 15.2 Unscheduled absences per full-time equivalent employee by leave type, 2006–07 to 2009–10

0

2

4

6

8

10

12

2006–07 2007–08 2008–09 2009–10

SICK CARERS MISC WORK COMP

DA

YS

In summary, FaHCSIA’s unplanned leave data reveals the following:

w Leave usage was 13.43 days per full-time equivalent (FTE) for 2009–10, a decrease from 13.8 days in 2008–09.

w Sick leave usage decreased from 10.69 days per FTE in 2008–09 to 10.28 days in 2009–10. The decrease in sick leave usage for 2009–10 occurred from August 2009 to January 2010.

w Carer’s leave increased from 1.94 days per FTE in 2008–09 to 2.03 days in 2009–10.

w Miscellaneous leave increased from 0.55 days per FTE in 2008–09 to 0.58 days in 2009–10.

w Workers compensation leave increased from 0.43 days per FTE in 2008–09 to 0.54 days in 2009–10.

Supporting staffFaHCSIA’s strategies to support and develop staff include a staff survey; arrangements for leadership and capability development; networks and services to support diversity, Aboriginal and Torres Strait Islander staff and staff with disability; workforce planning arrangements; and an occupational health and safety strategic plan.

Staff surveyThe Department believes that, if it understands its workforce, it can develop people management strategies that enhance its reputation as an attractive employer. The staff survey increases our understanding of the factors that motivate our staff and support their ongoing engagement and commitment. It also facilitates our ability to track the success of various strategies and programs that are implemented, at a department-wide level and locally within branches and groups, in response to previous survey results. FaHCSIA benchmarks its survey results against the State of the Service results and against other comparable agencies.

In February 2009, FaHCSIA initiated an integrated approach to staff surveys 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.


Staff surveys will be conducted until at least the end of 2011. The surveys include the annual staff survey, six-monthly pulse surveys focusing on staff engagement, and entry and exit surveys. The results of the surveys are reported on a six-monthly basis in May and November each year.

The first annual survey was conducted in February 2009. This was followed by the first pulse survey in October 2009 and the second annual survey in March 2010. The participation rate for both 2009–10 surveys was very high, with 85 per cent of staff responding in October 2009 and 80 per cent in March 2010.

Figure 15.3 shows the March 2010 results for the survey questions on staff satisfaction with their current job and with FaHCSIA as an employer.

FIGURE 15.3 Overall satisfaction with FaHCSIA and current job, March 2010 survey results

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

q62. Considering everything,how would you rate your overall satisfaction with

FaHCSIA as an employer? (n=2493)

q29. Considering everything,how satisfied are you

with your current job? (n=2562)

VERY SATISFIED SATISFIED NEITHER SATISFIED NOR DISSATISFIED DISSATISFIED VERY DISSATISFIED

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

w intrinsic rewards from current job

w career progression

w work–life balance

w job–skills match

w goal clarity

w recruitment and selection

w diversity and equal opportunity

w autonomy and empowerment

w accommodation and occupational health and safety (OHS)

w internal communication

w performance of the Secretary and deputy secretaries

w IT and information systems.

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People strategyThe FaHCSIA People Strategy 2009–2010 was developed to support the Department’s strategic framework. The People Committee approved the extension of the People Strategy to December 2011 to allow for the alignment of a number of key initiatives under the strategy and a greater period between implementation and evaluation, which should allow for more robust data to measure the effectiveness of the initiatives.

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

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.

Staff development and trainingIn November 2009, FaHCSIA launched its Organisational Learning Strategy (OLS). The OLS is a key priority in the FaHCSIA People Strategy 2009–2011. It links to FaHCSIA’s strategic direction and articulates the Department’s vision and priorities in relation to learning and development. The OLS also reflects the nature of the Department’s policy and program work, the way we deliver services and the way we work. One of the outcomes of the OLS is to develop a work environment with a strong learning culture. Underpinning the OLS is a set of tools that assist staff and their managers to assess their capability requirements against each classification level and identify development needs, either for their current position or for career development discussions.

Learning and development priority skills training program activities for 2009–10 included:

w managing funding agreements

w financial management

w managing stakeholder engagement

w policy development and advice

w writing to and for the minister

w understanding accountabilities

w better writing skills

w contract management

w project management

w leadership/management programs.

FaHCSIA also provides learning and development through online e-learning programs to help staff undertake self-paced learning in the workplace.

Performance managementPerformance management in FaHCSIA is a positive process in which managers and employees work together to identify, discuss, review and plan for performance, providing clear expectations in relation to business outcome opportunities for capability development. FaHCSIA’s performance management is supported by the online Individual Performance Management System (IPMS). One of the objectives of performance management is to enhance productivity, accountability, leadership and learning and development. The Department’s Organisational Learning Strategy aims to deliver a culture of shared responsibility for learning and innovation in capability development.


Programs offered ensure that staff have the right skills to enable them to meet the key deliverables in their performance agreements and to develop their careers.

Staff recognitionFaHCSIA seeks to foster a culture of appreciation and recognition for the contributions and achievements of the people who work in the Department. People recognition is integral to all aspects of people management in FaHCSIA, as our people are paramount to our performance. The Recognition and Appreciating People Guideline outlines FaHCSIA’s approach to recognising and showing appreciation to staff in the local workplace and through departmental awards. FaHCSIA wants to make sure that the people who make a valued difference to our work and our workplace know that their contribution is recognised and appreciated. Appreciation is usually expressed informally between those most directly involved at the local workplace level, and each work unit is expected to develop its own approach to staff recognition.

We participate in the Australia Day award scheme and external, government-wide award schemes. We also have internal award schemes, such as our National Aboriginal and Islander Day Observance Committee (NAIDOC) awards.

Workplace 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 such as the Aboriginal and Torres Strait Islander Staff Network, the Carers’ Network and the FaHCSIA Leadership disAbility Group. The Department continues to coordinate the Australian Public Service Diversity Network, which meets quarterly to share diversity best practice across the public service.

Diversity planThe FaHCSIA Diversity Plan—Making it Real has been our plan 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, and recognises the value that each individual brings to our organisation.

The diversity plan has provided the direction for FaHCSIA staff to create opportunities and develop shared ways of behaving.

To build on the plan’s success, we are developing a new diversity action plan. The focus of this revised plan will be for FaHCSIA to:

w be an employer of choice and demonstrate sector-wide best practice in the attraction, recruitment, retention and development of talented people from diverse backgrounds

w recognise that diversity provides a business advantage in innovative thinking and understanding client needs

w build and maintain rewarding networks and effective partnerships, both internal and external, to enhance policy development and program delivery

w show leadership and set the benchmark for diversity across the APS.

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Aboriginal and Torres Strait Islander staffAs the lead agency in the delivery of outcomes to Aboriginal and Torres Strait Islander people, FaHCSIA 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 continues to have a higher proportion of Aboriginal and Torres Strait Islander staff than other APS agencies; 9.5 per cent of our staff identify themselves as being of Aboriginal or Torres Strait Islander origin, compared to the APS average of 2.1 per cent.

FaHCSIA continues to work with other agencies in leading the delivery of outcomes for Aboriginal and Torres Strait Islander people. In 2009–10, the Department committed to increasing its proportion of Aboriginal and Torres Strait Islander staff from its current level of 9.5 per cent to 11.4 per cent by 2015.

To continue building on the solid foundation provided by the FaHCSIA Aboriginal and Torres Strait Islander Recruitment and Retention Strategy and to meet this target, FaHCSIA is finalising work on its Aboriginal and Torres Strait Islander Workforce Strategy 2010–12. This strategy will strengthen the Department’s position as an employer of choice, where Aboriginal and Torres Strait Islander people can effectively contribute to improving the lives of Australians.

We recognise that supporting Aboriginal and Torres Strait Islander people to develop their careers within FaHCSIA is key to achieving many of our outcomes and being an employer of choice for Aboriginal and Torres Strait Islander people. To facilitate this, FaHCSIA has a mentoring program to support Aboriginal and Torres Strait Islander staff in the workplace and assist in their career development. Furthermore, FaHCSIA has recently piloted a structured mentoring framework for Aboriginal and Torres Strait Islander staff that focuses on capability development, and encourages staff to expand their careers within the Department.

FaHCSIA continues to deliver a cultural appreciation program to provide all staff with a greater knowledge and appreciation of Aboriginal and Torres Strait Islander culture. Trained Aboriginal and Torres Strait Islander staff are responsible for the program’s delivery, and in 2009–10 additional training was provided to increase the number of facilitators and improve their facilitation skills. More than 580 FaHCSIA staff participated in the program in 2009–10.

Staff with disabilityIn 2009–10, FaHCSIA successfully achieved all eight objectives outlined in recommendations made by the APSC Management Advisory Committee in its report, Employment of people with disability in the APS.

FaHCSIA continues to have a higher proportion of staff with disability than any other APS agency. In 2009–10, 5.3 per cent of our staff identified as having some form of disability; this compares favourably with the APS average of 2.94 per cent, the figure given in the latest State of the Service report.

We are one of the few agencies that have a designated position of disability access coordinator, with centralised funding made available for reasonable adjustment and assistive technology to support people with disability to reach their full potential in the workplace.

FaHCSIA continues to consult a wide range of stakeholders on disability issues. Externally, we remain an active member of the APSC Disability Steering Group. This group has representation from a number of different government agencies that work together to identify and progress APS-wide initiatives on disability.

We continue to work with staff through our FaHCSIA Leadership in disAbility Group to identify and address workplace issues affecting employees with disability.

176 Chapter 10 | Our governance arrangements | Part 3 Corporate Governance | FaHCSIA Annual Report 2008–2009176 Chapter 15 Human resources management | Part 3 Management and accountability | FaHCSIA Annual Report 2009–10

Case study: Pilot traineeship for people with intellectual disability

In August 2009, FaHCSIA launched an 18-month traineeship program for five people with intellectual disability. The focus of the program was to recruit people with intellectual disability and to provide them with a supportive environment that would nurture the development of professional skills to assist them in achieving employment within the APS or the private sector.

The Department worked in partnership with a number of external organisations to ensure that an equitable and supportive process was established for the selection and placement of the trainees into the work, and in the provision of training. Those organisations included the Australian Network on Disability, Disability Works Australia, LEAD Employment, Advance Personnel, and JCE Positive Outcomes.

The trainees participate in 18 hours of work duties each week, three hours of which is dedicated to formal training for a Certificate II in Business Administration. Under the framework, the trainees are provided with a high level of support through internal and external sources. In addition to this, trainees are supported by staff members who have completed a formal mentor training program facilitated by experts specialising in disability mentoring.

The program demonstrates FaHCSIA’s commitment to having an inclusive workplace that embraces workplace diversity. The pilot program assisted FaHCSIA to become the first APS agency to meet all eight objectives outlined in the Management Advisory Committee (MAC 6) Report, Employment of people with disability in the APS.

It also demonstrates FaHCSIA’s commitment to social inclusion through its piloting of programs that help all Australians to have the resources, opportunities and capability to learn, work, engage in the community and have a voice. This program has provided the trainees with the opportunity to further develop their capabilities and confidence in a supportive work environment. It has also had a positive impact in the workplace, through greater disability awareness and demonstrated inclusive work practices.

The trainees will complete the program in February 2011 and FaHCSIA will assist them to move into sustainable employment.

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To strengthen its leadership in disability employment programs, FaHCSIA is participating in the Paralympic Diversity Workplace Program. We will employ a Paralympian for 12 months to help them achieve personal and professional growth while pursuing their sporting endeavours.

In August 2009, the Department launched a traineeship program for five people with intellectual disability. The trainees are participating in an 18-month non-ongoing employment arrangement for 18 hours a week, including three hours of formal training to attain a Certificate II in Business. The traineeship program for people with intellectual disability is a first in the APS, and again demonstrates FaHCSIA’s leadership role in achieving critical outcomes for people with disability.

The Department’s report on its performance in implementing the Commonwealth Disability Strategy is in Appendix C.

Collective agreementsThe FaHCSIA Collective Agreement 2009–11 commenced on 14 January 2009.

The agreement covers all of the Department’s non-SES employees and seeks to:

w make FaHCSIA an employer of choice

w promote work–life balance

w achieve clarity and flexibility in conditions of employment

w motivate employees to build a high-performing and increasingly productive organisation.

The main features of the agreement are:

w salary advancement based on performance

w annual salary increases offset by improved productivity, improved performance, or both

w flexible and family-friendly working arrangements

w a healthy, safe and respectful work environment

w articulation of employee and manager responsibilities to enhance the Department’s culture and contribute to the achievement of FaHCSIA outcomes.

Flexibility agreements—non-SES employeesIn 2009–10, the Department introduced a single remuneration model for negotiating salaries to attract, retain and reward highly valued non-SES employees. The remuneration model has been implemented through individual agreements made under the flexibility clause in the Department’s collective agreement, and replaces various remuneration arrangements that had been included in different individual industrial instruments over time, including Australian workplace agreements.

Australian workplace agreements—SES and non-SES employeesOn 30 June 2010, 61 SES employees were covered by Australian workplace agreements. In 2010–11, SES Australian workplace agreements will be replaced by individual determinations under section 24(1) of the Public Service Act 1999.

Following the introduction of flexibility agreements, the number of non-SES Australian workplace agreements decreased from 310 in 2008–09 to 52 in 2009–10.

Section 24(1) determinationsOn 30 June 2010, remuneration and other terms and conditions of employment for 43 SES employees were provided by individual determinations under section 24(1) of the Public Service Act 1999.


Common law contractsThe Department does not use common law contracts for the employment of staff.

Non-salary benefits to employeesThe Department offers a number of non-salary benefits to employees under the collective agreement, Australian workplace agreements and other individual industrial instruments (Table 15.1).

TABLE 15.1 Non-salary benefits at 30 June 2010

Non-SES staff—collective agreement

Access to employee assistance program

Purchased leave

Maternity and adoption leave

Parental leave

Sabbatical leave

Annual leave

Personal leave

NAIDOC Week leave

War service sick leave

Long service leave

Flextime (not all employees)

Flexible working arrangements

Work–life balance information and referral service

Christmas/New Year close-down and early stand-down at Easter

Mobile phone for official and incidental personal use

Airline club lounge membership

Child and elder care information and referral service

Family care rooms, extra family care costs, school holiday family care subsidy

Study assistance

Time off for long business travel

Business class travel for long-haul flights

Flexible remuneration packaging

Assistance with public transport and parking costs

Influenza vaccination

Promoting good health payment

Voluntary cash-out of annual leave

Payment of professional association memberships

Assistance with relocation expenses

Compensation for loss or damage to clothing or personal effects

Travelling allowance

Remote locality assistance

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Non-SES staff—Australian workplace agreements and other individual industrial instruments

All of the above benefits

SES staff—Australian workplace agreements and other individual industrial agreements

All the above benefits

Executive vehicle allowance

Occupational health and safetyFaHCSIA acknowledges its employer responsibilities under the Occupational Health and Safety Act 1991 (OHS Act) and the Safety, Rehabilitation and Compensation Act 1988 (SRC Act) and is committed to the health and safety of its employees, contractors and visitors.

Health and safety management arrangementsIn June 2009, the Department entered into a three-stage consultation period to revise and update its health and safety management arrangements (HSMAs):

w Stage one involved all health and safety representatives, members of all OHS committees, business support managers and the unions.

w Stage two provided all FaHCSIA staff with an opportunity to comment on the draft HSMAs.

w In Stage three, the draft HSMAs were provided to the National OHS Committee for a final review before being endorsed by the People Committee, the Executive Management Group and the Secretary.

Consultation was conducted through a comprehensive communication strategy involving OHS committees, email and staff intranet notifications. As a result, more staff took part in consultations on the revised HSMAs than in consultations on the original HSMAs in 2007.

In October 2009, the HSMAs were relaunched. The revised HSMAs include:

w organisational OHS targets

w OHS policy

w FaHCSIA’s OHS structure, which includes

– the Occupational Health and Safety Section

– designated work groups

– health and safety representatives

– the National OHS Committee

– state and territory OHS committees

w roles and responsibilities in OHS

w consultation in relation to HSMAs, which includes

– methods of consultation and record keeping in relation to HSMAs

– monitoring and reviewing HSMAs

– dispute resolution—HSMAs

– dispute resolution—OHS issues

– provisional improvement notices

w rehabilitation.


OHS strategic planFaHCSIA’s OHS strategic plan, ‘Building a Safety Culture’, aims to ensure legislative compliance, provide a supportive workplace for return to work following injury or illness, develop a participatory approach to OHS planning, and integrate OHS risk management into business through the development of an integrated OHS management system.

Initiatives in 2009–10

In 2009–10, the Department took a number of actions to promote the health, safety and welfare at work of its employees and contractors (Table 15.2).

TABLE 15.2 Health, safety and welfare initiatives, 2009–10

Goal Action Outcome

To increase participation in a staff vaccination program

Promoted the program through an internal communication strategy

w 1,034 staff vaccinated in the 2009–10 program (a 2.4% increase from 2008–09)

w Increased staff awareness

To increase participation in national health and wellbeing promotions

Promoted the following:

w Safe Work Australia Week (October 2009)

w Safety at work and at home

w World Health Day promoting good health and wellbeing (7 April 2010)

w Healthy Lifestyle Subsidy promotion to staff of effective use of the $300 subsidy (March 2010)

w Increased staff awareness

w Demonstration of FaHCSIA’s investment in staff health and wellbeing

To provide an integrated rehabilitation framework for the management of the return to work of employees with compensable or non-compensable injury or illness

Made available policy guidelines for the effective management of return to work for employees

Delivered information and training for managers

Established a framework that encourages early reporting of absences of 10 days or more

Developed a national, consistent workers compensation file and claim management practice, including consistency in the provision of information provided to employees

Promoted best practice rehabilitation management through effective stakeholder consultation

w Increased staff awareness of leave entitlements and responsibilities

w Accurate, consistent and timely reporting

w Reduced illness and injury claims

w Increased productivity

w Reduced costs associated with absence related to compensable and non-compensable illness and injury


Case study: Return to work after serious motor vehicle accident

In July 2009, FaHCSIA introduced a new framework for assisting employees returning to work following personal or work-related injury or illness. Through national initiatives under the OHS Strategic Plan and the Maximising Staff Attendance Strategy this framework is aimed at early rehabilitation intervention and a safe and productive return to work.

The effectiveness of this new approach is demonstrated by the success of Martin McCabe, Government Business Manager Warruwi Community, in returning to full duties following a serious motor vehicle accident (pictured).

On 27 November 2009, Martin was driving between Angurugu and Umbakumba on Groote Eylandt when he lost control of his Nissan Patrol 4WD and rolled the vehicle three times before it came to rest on its roof.

Martin was rescued from the vehicle by local emergency workers and transported to the local clinic for assessment before being flown to Royal Darwin Hospital.

Martin had sustained serious cervical spinal fractures and was later transferred to Adelaide Hospital for surgery. Isolated from his family, Martin was accompanied by the Director of the Government Business Manager Support Unit to provide support during his surgery.

Although still confined by a cervical brace, Martin was stable enough to return to Canberra in mid-December, to recover under the care of his family and local neurosurgeons. In January 2010, he expressed a strong desire to return to work in the Northern Territory, but it would be a further three months before his fractures healed enough to obtain a medical clearance to remove the cervical brace and to allow him to fly to Darwin.

With the support of the OHS Section, People Branch, Northern Territory state office, the Government Business Manager Support Unit in Darwin, the rehabilitation provider, Comcare, and his medical team, Martin commenced a graduated return to work in the state office in Darwin in April 2010. Despite a concentrated period of physiotherapy in Darwin, it would be a further month before he could drive again, and two months before he could travel to Goulburn Island for a visit.

On 22 July 2010, Martin returned to the Warruwi Community to resume his role as a government business manager. Although Martin has yet to return to full health, his enthusiasm for work and commitment to recovery, coupled with strong support from everyone involved in his rehabilitation, will ensure that he has every opportunity to recover his pre-injury wellbeing.

Scene of the accident involving Martin

McCabe, Government Business Manager

Warruwi Community.


Rehabilitation strategies

In 2009–10, intensive early intervention strategies resulted in a 74 per cent decrease in the interval between notification of injury or illness and rehabilitation intervention compared to the previous financial year, and a 70 per cent success rate in closing long-term cases.

Rehabilitation framework system improvements for managing staff with compensable and non-compensable injury and illness resulted in a 59 per cent decrease in the total duration of additional paid personal leave (from 278.5 weeks in 2008–09 to 114.6 weeks in 2009–10).

These achievements resulted from the implementation of the national initiatives contained within the OHS strategic plan and the Maximising Staff Attendance Strategy, which were aimed at early rehabilitation intervention followed by a safe and productive return to work.

Eliminating bullying and harassment in the workplace

FaHCSIA supports a workplace culture free from bullying and harassment and makes it clear to staff that it will not tolerate any bullying or harassment within the Department.

The Department’s harassment contact officers, located in its national office, state offices and Indigenous coordination centres, are trained to provide support and information to staff and managers on bullying and harassment.

In February 2010, FaHCSIA engaged an external consultancy to review its framework for the identification, assessment and control of bullying and harassment in the workplace. The aim of the review was to identify potential gaps between Comcare’s recommended approach and the Department’s framework.

The review report congratulated the Department on its comprehensive systems for the prevention and management of bullying and harassment.

OHS formal reporting requirements

Statistics of accidents or dangerous occurrences under section 68 of the OHS Act

During 2009–10, the injury frequency rate was 3.35 injuries per 100 employees. Eight reports required the giving of notice to Comcare under section 68 of the OHS Act.

Investigations under Part 4 of the OHS Act

Comcare undertook one investigation of FaHCSIA under Part 4 of the OHS Act during 2009–10. The investigation, which related to a motor vehicle accident, concluded that FaHCSIA was not in breach of the OHS Act, and no enforcement action was required.

FaHCSIA Annual Report 2009–10 | Part 3 Management and accountability | Chapter 16 Support services 183

Chapter 16Support services

Support services consist of those elements that provide information and technology to inform policy and program development and the delivery of FaHCSIA’s key objectives.

Research, evaluation and dataFaHCSIA 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. During the year, the Research and Analysis Branch assessed a number of projects for the Research and Evaluation Committee (a subcommittee of the Executive Management Group). Table 16.1 shows the projects assessed during the year.

TABLE 16.1 Projects assessed for the Research and Evaluation Committee, by outcome, 2009–10

Project area Number of projects

Outcome 1 (Families) 12

Outcome 2 (Housing) 4

Outcome 3 (Community Capability and the Vulnerable) 9

Outcome 4 (Seniors) 0

Outcome 5 (Disability and Carers) 5

Outcome 6 (Women) 9

Outcome 7a (Indigenous) 4

Cross-outcome projects 5

a Whole-of-government Indigenous projects are scrutinised through Office of Indigenous Policy Coordination processes.

In 2009–10, FaHCSIA improved its support for policy advice and program design, implementation and development by refining internal processes and encouraging the take-up of key findings by branches across the organisation.

FaHCSIA invested in research, evaluation and related data activities aligned with current and emerging policy priorities, including the implementation of new performance indicators and data collection in the light of Commonwealth–state reform and the Department of Finance and Deregulation’s Operation Sunlight. Research and evaluation projects were undertaken across all outcomes.

The projects ranged from evaluations focusing on specific program elements through to data holdings to support analysis and broad research enabling a better understanding of the social and economic environment.

184 Chapter 16 Support services | Part 3 Management and accountability | FaHCSIA Annual Report 2009–10

The annual FaHCSIA Research and Evaluation Plan was produced to 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.

The Department managed several multi-year programs of social policy research, such as the Social Policy Research Services agreements. The agreements provide a research partnership between FaHCSIA and research centres at the Australian National University and the University of New South Wales. The annual research program for those centres is developed through collaboration between FaHCSIA policy areas and the research providers.

FaHCSIA’s research publication series continued to disseminate findings from research and evaluation projects. During 2009–10, four occasional papers, three editions of Research News and one edition of the Australian Social Policy Journal were published. FaHCSIA research has also been published in Australian and internationally recognised academic journals.

The Household, Income and Labour Dynamics in Australia (HILDA) survey is a large-scale, nationally representative, longitudinal survey of Australian households, with information on labour force status and history, current and financial year income, wealth, family relationships, child care, health status, financial stress, housing, education, retirement intentions and work/family attitudes. To date, more than 1,400 users have registered to have access to one or more releases of HILDA. The majority are Australian academics or Australian government users.

Since the release of the first wave of data in February 2003, HILDA has matured into a highly respected source of evidence-based data for research, providing information about social connectedness, social capital, and disability and housing, and connecting all those elements with income, employment and family dynamics.

The program for waves 9–12 is expected to run from July 2008 to June 2014.

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 2009–10. Information is collected on children’s physical health; social, cognitive and emotional development; and experiences in key environments, such as the family, community, child care and school settings.

In March 2010 the fourth wave of fieldwork commenced. The two cohorts of children are now aged 6–7 years and 10–11 years. A new dataset, including data from the third mid-wave questionnaire (wave 3.5), was released in May.

The study continued its involvement in the ABC Life television series, providing data and advice on the third instalment, Life at 5. Life at 5 is expected to screen in the second half of 2010.

Footprints in Time: the Longitudinal Study of Indigenous Children is designed to explore how Aboriginal and Torres Strait Islander children develop resilience, and what helps to improve their wellbeing and future, and to recognise links between early childhood experiences and later life outcomes. Results from the first wave of the study were launched in a community feedback booklet, Finding our feet, and in the key summary report from wave 1 in October 2009.

Data from the study was released to approved researchers from February 2010. By June 2010 there were 30 registered data users.

Wave 2 data collection was completed in December 2009 with an excellent response rate: 86 per cent of the primary carers for wave 1 children were interviewed for wave 2. The high response rate was partly due to the employment of Indigenous interviewers to collect data and maintain strong linkages with study participants and the communities in which they live.

Wave 3 data collection started in March 2010. Wave 3 focuses on the school experience for the older cohort and revisits a number of areas covered in waves 1 and 2, including child health, behaviour and development; social and emotional wellbeing; major life events; child vocabulary; language; and housing issues.

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Information and communications technologyInformation and communications technology (ICT) is a key enabler which supports FaHCSIA business. Information Management and Technology Group (IMTG) provides and manages the delivery of reliable, efficient and high-quality ICT and information management services to the Department. IMTG’s key objectives are to provide:

w an information base that is a strategic resource for developing and delivering FaHCSIA business

w an application portfolio that is responsive to FaHCSIA’s business needs

w technology platforms that enable and support FaHCSIA’s core business.

During the past 12 months, IMTG has delivered a significant number of key projects and services to support the Department, individuals and community organisations. Some of these are discussed below.

Integrated reporting solutionOver the past 12 months, the Department’s management information capability has been strengthened through further development of the integrated reporting solution. Data from a number of sources, including Centrelink, the Australian Bureau of Statistics, the Australian Institute of Health and Welfare and FaHCSIA’s business systems, including the FaHCSIA online funding management system and grant management system, were integrated into the system to improve reporting outputs.

In particular, great effort was invested in collecting geographical location data relating to the Department’s service providers and the outlets involved in delivering FaHCSIA’s community grants programs. This will help to build a holistic picture of the Department’s service footprint. When overlaid with key payment recipient populations, this information will be used to better target service delivery and plan for the placement of future services.

Consolidation and integration of existing Aboriginal and Torres Strait Islander housing data sources has allowed the Department to report a complete picture of the status of Aboriginal and Torres Strait Islander housing.

The key business benefits and outcomes that these data collections support include the ability to:

w provide consistent longitudinal data for all state and territory governments

w report progress on funding achievements in Indigenous communities in states and territories

w demonstrate how addressing overcrowding in Indigenous communities is closing the gap by showing the proportion of Aboriginal and Torres Strait Islander people living in overcrowded housing in comparison to the proportion of Aboriginal and Torres Strait Islander people in safe and healthy housing

w facilitate economic modelling of future needs based on inclusive and relevant data.

Community Development Employment ProjectsIn line with significant reforms and policy changes to the Community Development Employment Projects (CDEP) program, the Department rebuilt the CDEP manager system. The new system was first released in June 2009.

During 2009–10, the system was further enhanced through:

w interfaces with FaHCSIA’s grant management system and SAP system

w an improved web site to provide a central point for CDEP providers to access information about the program

w new reports via the Hyperion portal and the CDEP manager.

186 Chapter 16 Support services | Part 3 Management and accountability | FaHCSIA Annual Report 2009–10

In 2009, the CDEP manager system received a green rating as part of the Australian Government’s gateway review process, and in 2010 it was a finalist in the Australian Government 2010 Excellence in eGovernment awards.

Remote service delivery supportAs part of its support for the National Partnership Agreement on Remote Service Delivery, the IMTG is deploying a new ICT solution to support the delivery of services in remote communities. The aim is to provide staff working in remote regional areas with the same ICT services as are available to staff in capital cities.

The implementation of a standardised solution will improve connectivity for FaHCSIA staff working in remote communities, allowing:

w improved connectivity with core FaHCSIA ICT systems, resulting in greater functionality and availability of information

w increased 3G network coverage in remote regions, allowing improved access to Internet and corporate resources

w improved ICT support arrangements, with a dedicated remote service delivery support team for staff working in remote regions.

Online formsDuring 2009–10, the IMTG began a project to reduce the use of paper-based forms and streamline processes across the Department through the use of online forms. More than 20 paper-based forms have been replaced with online forms. This has not only improved the end-user experience in lodging requests, but also resulted in decreased processing times. The online forms include an IT services catalogue that has resulted in a significant improvement in processing times for everyday IT requests.

Internet gatewayDuring 2009–10, FaHCSIA insourced its Internet gateway services to deliver cost savings to the Department and improve service delivery. Internal management and hosting of Internet gateway services reduced support costs and improved the Department’s ability to effectively service FaHCSIA’s public-facing systems and applications. The new Internet gateway allows the Department to:

w respond more quickly to changing business requirements

w provide improvements in IT security and incident and problem resolution

w provide an enhanced capability that supports a mobile workforce using the Internet as the transmission medium.

The cost savings derived from the insourcing of gateway services have helped the Department meet its commitments for ICT savings following the Gershon review.

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Improved environmental efficiency in the use of information and communications technology‘Green ICT’ is a frequently used term that commonly refers to reducing energy and other resources consumed in ICT use and the emissions and other waste produced across the ICT lifecycle from manufacture, procurement and the use of ICT in an organisation through to its re-use, recycling and disposal.

FaHCSIA’s Green IT Strategy identifies a number of initiatives for the Department to achieve its vision of being an environmentally sustainable department.

The initiatives that have been implemented include:

w the installation of software to turn computers off when they are not in use

w increasing the ratio of employees per printer from 5.7 in 2007–08 to 7.1 in 2008–09 and reducing the paper used per employee from 18.7 reams in 2007–08 to 8.17 reams in 2008–09

w alignment with national and international green IT procurement standards to ensure that IT equipment is purchased through accredited eco-friendly vendors

w arrangements to recycle toner cartridges and dispose of computer equipment through accredited eco-friendly vendors

w the use of videoconferencing to reduce the need for travel

w the development of online forms and automated workflows to reduce the need for paper-based forms

w the greater adoption of automated online services to deliver programs.

Work on the consolidation and virtualisation of servers is progressing to plan.

188 Chapter 17 Financial management | Part 3 Management and accountability | FaHCSIA Annual Report 2009–10

Chapter 17Financial management

Analysis of financial performance

IntroductionThis section provides a summary of the Department’s financial performance for the 2009–10 financial year. Departmental and administered results are shown in the audited financial statements on pages 198–344 of this report.

Strong financial management across the Department has meant that our total income of $611.2 million continues to be effectively managed. This is reflected in the Department’s operating result for 2009–10 of a $10.2 million deficit. The deficit is attributable to a $17.4 million adjustment associated with the transition to direct appropriation for Centrelink.

The Department continues to address audit recommendations from the Australian National Audit Office (ANAO) in a timely and effective manner. All ANAO findings from the previous year’s audit have been cleared by the ANAO. This has resulted in FaHCSIA having no category B findings and only two category C findings.

Changes affecting FaHCSIA’s 30 June 2010 financial statementsFaHCSIA’s 2009–10 financial statements reflect a number of significant changes to FaHCSIA’s operations as well as a number of whole-of-government changes to financial reporting arrangements. The key changes and their impact are detailed below.

Change in presentation—Statement of comprehensive incomeAs part of the implementation of Operation Sunlight, and improvements identified to the financial framework, there is a change in the presentation of the income statement to focus on net cost of services rather than profit or loss. It is now titled the ‘statement of comprehensive income’. Revenue from government is now included after the net cost of services calculation (expenses less own sourced income).

Four outcomes to seven outcomesFor the 2009–10 budget and annual reporting process, a new program reporting framework was implemented as part of the Operation Sunlight Outcome Statements Review. This also resulted in a revision of FaHCSIA’s outcomes from four to seven.

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FaHCSIA Annual Report 2009–10 | Part 3 Management and accountability | Chapter 17 Financial management 189

Asset revaluation Assets are subject to a formal valuation every three years. Formal valuations are carried out by an independent qualified valuer. A complete valuation was conducted in the 2009–10 financial year by the Australian Valuation Office. Where necessary, adjustments were made to valuations to reflect fair value. Both departmental and administered assets were revalued.

Departmental—Revenue from government and payments for service deliveryFrom 1 July 2009, Centrelink received its departmental appropriations directly from the Department of Finance and Deregulation, whereas in 2008–09 its appropriation for service delivery was administered by FaHCSIA. Therefore, FaHCSIA’s revenue from government and payments for service delivery significantly reduced in 2009–10. In 2008–09, $1,081 million of our total departmental expenses of $1,705 million were for payments made to Centrelink for service delivery.

Acquisition of Outback Stores Pty LtdOutback Stores Pty Ltd was acquired by FaHCSIA in March 2010 from Indigenous Business Australia. The investment in Outback Stores Pty Ltd ($39.5 million) is shown at fair value based on the net asset method.

FaHCSIA operating result

Departmental

Operating income

Total operating income was $611.2 million (2008–09: $1,700.9 million). Operating income consists of:

w government appropriations of $573.1 million

w sale of goods and services income of $32.1 million

w other income of $6.0 million.

Revenue from government decreased from $1,657.8 million to $573.1 million due to Centrelink receiving departmental appropriations directly, as well as a significant decrease in appropriation for services provided by the Australian Taxation Office from $10.5 million to $0.6 million.

Operating expenses

Total operating expenses were $621.4 million (2008–09: $1,705.3 million). Operating expenses consist of:

w employee expenses of $333.9 million (2008–09: $313.7 million)—the increase in employee expenses is a reflection of a movement in staff numbers, movement of IT contractor staff to ongoing staff, and an increase in salaries under the Department’s collective agreement

w supplier expenses of $203.3 million (2008–09: $255.7 million)—supplier expenses have decreased due to the Department’s efforts to find savings to meet its efficiency dividend target through undertaking more work in-house.


w payments to other government agencies for service delivery of $26.2 million (2008–09: $1,100.8 million)—payments to other agencies, primarily Centrelink, have decreased due to a reduction in Centrelink appropriation from $1,081 million in 2008–09 to $16.1 million in 2009–10.

w other expenses (including depreciation) of $58.0 million (2008–09: $35.1 million)—the depreciation and amortisation expense increase reflects an increase in leasehold improvements from $14.9 million in 2008–09 to $27.5 million in 2009–10.

Balance sheet

Departmental

Total assets

Total assets at 30 June 2010 were $392.3 million (2009: $428.6 million). The majority of the asset base is in land and buildings, property, plant and equipment and internally developed software. There was an increase in the asset base of $3.5 million due to the assets being revalued, and the major decrease in total assets was a result of the reduction in the Centrelink appropriation as well as a reduction in cash from $5.8 million to $2.9 million.

Total liabilities

Total liabilities at 30 June 2010 were $131.9 million (2009: $211.6 million). Employee provisions and supplier payables comprise a major portion of the liabilities. The decrease in liabilities is due to a reduction in amounts owed to Centrelink as at 30 June 2010.

Administered

Total assets at 30 June 2010 were $4,763.2 million (2009: $4,657.9 million). The increase mainly relates to growth in the value of financial investments ($177 million) held by Aboriginals Benefit Account and the Aboriginal and Torres Strait Islander Land Account. Net receivables fell in 2009–10, mainly due to the increase in the provision for doubtful debts calculated annually by an actuarial assessment.

Total liabilities at 30 June 2010 were $7,576.9 million (2009: $7,845.8 million). This decrease is driven mainly by personal benefits payable, as last year FaHCSIA had made an allowance of almost $800 million relating to one-off stimulus measures for those individuals who were claiming their entitlement through their tax return. Some of this decrease has been offset by an increase in the provision for Family Tax Benefit of $112 million and for the Pension Bonus Scheme of $95 million.

ConsultantsDuring 2009–10, 271 new consultancy contracts were entered into, involving total actual expenditure of $12.1 million. In addition, 140 ongoing consultancy contracts were active during 2009–10, involving total expenditure of $11.2 million.

Summary information on consultancy services for FaHCSIA and the Social Security Appeals Tribunal is set out in Table 17.1, Table 17.2 and Table 17.3.

PA

RT

3 M

anag

emen

t an

d a

ccou

ntab

ilit

y


TABLE 17.1 New consultancies let in 2009–10

NumberExpenditure

($ million, GST inclusive)

FaHCSIA core 266 12.0

Social Security Appeals Tribunal 5 0.1

Total 271 12.1

TABLE 17.2 Ongoing consultancies active in 2009–10

NumberExpenditure

($ million, GST inclusive)

FaHCSIA core 135 10.8

Social Security Appeals Tribunal 5 0.4

Total 140 11.2

TABLE 17.3 Total expenditure on new and ongoing consultancy contracts, 2007–08, 2008–09 and 2009–10

Expenditure ($ million, GST inclusive)

2007–08 2008–09 2009–10

28.9 20.3 23.3

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender web site <www.tenders.gov.au>.

Australian National Audit Office access clauses and exempt contracts

Access clausesDuring 2009–10, no contracts were let that did not require the Auditor-General to have access to the contractor’s premises.

Exempt contractsDuring 2009–10 there were no exempt contracts.

Legal services expenditureUnder paragraph 11.1(ba) of the Legal Services Directions 2005, the Department must report on its legal services expenditure each financial year.

Table 17.4 sets out the legal services expenditure for the portfolio in 2009–10.


TA

BL

E 1

7.4

Leg

al se

rvic

es e

xpen

ditu

re (

dolla

rs, G

ST in

clus

ive)

, 200

9–10

Lega

l Ser

vice

s Ex

pend

itur

e

Abo

rigi

nal H

oste

ls

Lim

ited $

Indi

geno

us

Bus

ines

s A

ustr

alia $

Indi

geno

us L

and

Coun

cil $

Soc

ial S

ecur

ity

App

eals

Tri

buna

l $

Torr

es S

trai

t Re

gion

al A

utho

rity $

Age

ncy’

s To

tal L

egal

Ser

vice

s Ex

pend

itur

e92

,946

3,08

9,43

21,

211,

015

182,

622

2,26

5,26

1

Tota

l Ext

erna

l Leg

al S

ervi

ces

Expe

ndit

ure

92,9

462,

922,

027

553,

083

36,6

471,

305,

117

Tota

l num

ber o

f Cou

nsel

bri

efed

02

32

0

Tota

l num

ber o

f Cou

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dir

ect b

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00

01

Tota

l val

ue o

f Cou

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efs

040

,112

121,

049

11,9

7899

,569

Tota

l of d

isbu

rsem

ents

(exc

l. Co

unse

l)0

338,

408

00

34,8

50

Tota

l of p

rofe

ssio

nal f

ees

paid

92,9

462,

543,

507

432,

034

24,6

691,

170,

698

Tota

l Int

erna

l Leg

al S

ervi

ces

Expe

ndit

ure

016

7,40

565

7,93

214

5,97

596

0,14

4

Sala

ries

014

1,92

051

7,49

213

2,43

153

2,13

4

Ove

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ds (i

nclu

des

adm

inis

trat

ive

supp

ort a

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ccom

mod

atio

n co

sts)

025

,485

140,

440

13,5

4442

8,01

0

Tota

l Cos

ts R

ecov

ered

00

00

0

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rnal

Leg

al S

ervi

ces

Expe

ndit

ure

Coun

sel

Tota

l num

ber

of C

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23

20

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23

20

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00

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0

PA

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Lega

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Abo

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Lim

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Indi

geno

us

Bus

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s A

ustr

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Indi

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and

Coun

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Soc

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ecur

ity

App

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Tri

buna

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Torr

es S

trai

t Re

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Tota

l num

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of C

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00

00

1

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040

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338

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,946

2,54

3,50

743

2,03

424

,669

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0,69

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TA

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dolla

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(co

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l Ser

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pend

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Wre

ck B

ay

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rigi

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Com

mun

ity

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cil $

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ncils $

Offi

ce o

f the

Re

gist

rar o

f In

dige

nous

Co

rpor

atio

ns $

FaH

CSIA

D

epar

tmen

t $Po

rtfo

lio $

Age

ncy’

s To

tal L

egal

Ser

vice

s Ex

pend

itur

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243

1,52

6,49

740

8,6

0611

,767

,473

20,5

46,0

95

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l Ext

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l Leg

al S

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ndit

ure

231

153,

867

185,

525

2,38

8,5

83

7,63

8,0

26

Tota

l num

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f Cou

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13

24

17

Tota

l num

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f Cou

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30

05

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ue o

f Cou

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231

123,

060

12,0

5882

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490,

064

Tota

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ents

(exc

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l)0

07,

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78,6

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9,05

9

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rofe

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nal f

ees

paid

030

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166,

267

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7,97

56,

688,

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l Leg

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Expe

ndit

ure

2,01

21,

372,

630

229,

559

9,42

5,14

012

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Sala

ries

1,84

61,

051,

238

206,

888

6,99

4,86

19,

578,

810

Ove

rhea

ds (i

nclu

des

adm

inis

trat

ive

supp

ort a

nd a

ccom

mod

atio

n co

sts)

166

321,

392

22,6

712,

430,

279

3,38

1,98

7

Tota

l Cos

ts R

ecov

ered

00

–6,4

78–4

6,25

0–5

2,72

8

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rnal

Leg

al S

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Expe

ndit

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Coun

sel

Tota

l num

ber

of C

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rief

ed1

32

417

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ale

coun

sel b

rief

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21

213

* Fe

mal

e co

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01

12

4

PA

RT

3 M

anag

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t an

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Lega

l Ser

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s Ex

pend

itur

e

Wre

ck B

ay

Abo

rigi

nal

Com

mun

ity

Coun

cil $

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Cou

ncils $

Offi

ce o

f the

Re

gist

rar o

f In

dige

nous

Co

rpor

atio

ns $

FaH

CSIA

D

epar

tmen

t $Po

rtfo

lio $

Tota

l num

ber

of C

ouns

el d

irec

t bri

efed

13

00

5

* M

ale

coun

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efed

13

00

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00

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l val

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231

123,

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588

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ale

coun

sel b

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s23

111

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03,

300

39,6

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0

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mal

e co

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012

,650

8,75

842

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63,7

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Dis

burs

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ts (

excl

udin

g Co

unse

l)0

07,

200

78,6

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l pro

fess

iona

l fee

s pa

id0

30,8

0716

6,26

72,

227,

975

6,6

88

,903


PurchasingThe Department’s purchasing activities are consistent with the FaHCSIA Chief Executive Instructions and internal procurement guidelines, which are in accordance with the Commonwealth Procurement Guidelines (December 2008). All activities have ensured the efficient, effective and ethical use of public monies and have delivered value for money. Purchasing decisions have been made in an accountable and transparent manner, complying with Australian Government policies and meeting relevant international obligations.

Assets managementFaHCSIA manages its assets in accordance with guidelines as set out in the Chief Executive Instructions, relevant accounting standards and Department of Finance requirements.

During 2009–10, the Australian Valuation Office undertook a comprehensive revaluation of FaHCSIA’s departmental and administered assets. A comprehensive stocktake of FaHCSIA’s departmental assets was also conducted during February and March 2010.

The outcomes of both processes have been reflected in the financial statements for 2009–10.

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