Kathrina Lo - NSW Audit Office - Feedback on NSW 'Performance frameworks in custodial centre operations' Audit

Performance frameworks in custodial

centre operations

Kathrina Lo

Assistant Auditor-General

Introduction

• Performance audit report Performance frameworks in custodial

centre operations

• Report tabled March 2016

• NSW Audit Office website: www.audit.nsw.gov.au

http://www.audit.nsw.gov.au/

Presentation

1. What is the role of the Auditor-General and the Audit Office?

2. What is a performance audit?

3. Why audit the performance framework in Corrective Services NSW?

4. What does a best practice performance framework look like?

5. How well does Corrective Services NSW measure performance?

6. How well are NSW correctional centres performing?

7. How well do NSW correctional centres respond to poor performance?

8. What are the key lessons from the audit?









Auditor-General & Audit Office

Auditor-General

• Independent statutory officer

• Reports directly to Parliament

• Holds government to account for use of public money

Audit Office

• Helps Auditor-General to fulfil role

• Conducts financial and performance audits









Performance audits - The three Es

Effectiveness – meeting the objectives that have been set

Efficiency – getting the most from the available resources

Economy – minimising the cost of resources used

Performance audits – what they

look at

• Government functions, operations, programs, systems

• All or part of an agency

• One or more agency, or issues affecting the whole sector

• Can’t question merits of government policy









Reason for audit

• Challenge of increasing prison population

• Significant issue / significant area of risk

• Government priority / focus

10,512 10,588 10,75011,035

11,28911,529 11,586 11,669 11,836 11,906 11,894 12,057 12,133 12,288

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15









Best practice performance

framework

Consolidate relevant

regulations, legislation

that impact

performance

Define and

prioritise

outcomes

Establish lead

and lag KPIs

Establish short

and medium

term targets

Clear

operational

standards

and

procedures

Appropriate

governance

framework to

manage

delivery

Defined

accountabilities

Support functions with

clear ownership and

accountability

Regular

reporting

Report

analysis

Identify

performance

issues

Assess

performance

against KPIs

Detailed

performance

review plan

Change

management

plan

Re-benchmark/

review KPIs

Risk review and

mitigation

Process to

implement

changes

Deliver

MonitorReview and Refine

Plan


framework

Plan

• Define and prioritise outcomes

• Establish KPIs and targets

Best practice KPIs

• Small number

• Reflect priority outcomes

• Simple to define, measure, collect data and report on

• Balanced


framework

Deliver

• Implement operational standards and procedures

• Implement governance framework

• Work towards achieving goals and operational standards

Monitor

• Track performance against KPIs

• Regularly report


framework

Review and refine

• Review performance

• Identify areas for improvement

• Implement changes where needed









Corrective Services NSW performance

framework

1. Financial performance and reporting

2. Organisational KPIs

3. Operating standards for public correctional centres &

operating specifications for private correctional centres

4. Performance linked fees for private correctional centres


framework

Organisational KPIs

1. Health and wellbeing

2. Minimising risk of harm

3. Efficient and effective operations

4. Safety and security


framework

Areas for improvement

• Cascade organisational KPIs to individual public correctional centres

• Benchmark performance

Consequences of not doing this

• Lack of clarity re which KPIs used to assess public correctional centre

performance

• Not possible to assess individual public correctional centre performance

• Difficult to vary performance expectations


framework

Operating standards for public correctional centres & operating

specifications for private correctional centres

• Legislative requirements

• National Standard Guidelines for Corrections in Australia

• Health Prison Expectations

• ICAC & Ombudsman recommendations


framework

Performance linked fees for private correctional centres

• Aim to incentivise good performance by linking financial

payments to performance

• Used at Parklea and Junee Correctional Centres

• Monthly reporting


framework

Performance linked fees

• Asset management

• Preventative maintenance

• Staff deployment

• Criminogenic program interventions

• AOD treatment

• Reporting


framework

Fee reductions for adverse outcomes

• $100K – non reporting of serious incident

• $100K – adverse coronial finding re death in custody

• $100K – CSNSW intervenes to resolve disturbance

• $10K per day – inmate held in custody beyond legal release

date

• $10K per incident – inmate released from custody before

legal release date


framework

KPIs for private correctional centres

• Escapes

• Self harm

• Assaults

• Lockdowns

• Time out of cells

• Case

management

• Urinalysis

• Programs

• Education

• Employment

• Cost

• Assets

• Staff training

• WHS

• IR


framework

Private correctional centres

• Approach to performance management pretty good

• Scope for improvement - greater focus on outcomes









Performance of public correctional

centres

• In 2014-15, five out of 12 organisational targets met

• Targets not met include nil prisoner-on-prisoner assaults, nil

unnatural deaths, eight hours time out of cells

• Context is important


centres

NSW

VicQld

WA

SA TasACT

0

2

4

6

8

10

12

14

0 50 100 150 200 250 300 350

Tim

e o

ut

of

cells

(a

vera

ge h

ou

rs p

er d

ay)

Cost per prisoner per day ($)

Time out of cells versus cost per prisoner per day in secure centres – 2014–15


centres

“NSW has the lowest number of hours out-of-cell each day for inmates, and this, combined with overcrowding, presents significant risks to the correctional system. Confining two or three inmates to cells designed for one or two for prolonged periods, where they shower, eat and defecate, inevitably raises tensions in an already volatile population. The experience in other jurisdictions has been that this potentially increases the risk of assault, self-harm, suicide and more general correctional centre disorder.”

- NSW Inspector of Custodial Services

Performance of private correctional

centres

Parklea Correctional Centre

• Met all but one performance linked fees

• Met all but one operating specifications

Junee Correctional Centre

• Met all performance linked fees

• Met all operating specifications

Transparency

Better and regular public reporting fosters greater public accountability and enables informed public debate.









Responding to poor performance

Public correctional centres

• Processes aren’t document

• Actions generally driven by Operational Procedure Manual

• Focus on budget and staff KPIs

• No employee performance agreements

• Remedial action may risk of industrial action









Lessons

Focus on outcomes

• Commissioning approach

Follow a best practice performance framework

• Plan, deliver, monitor, and review and refine

• Good set of KPIs

• Cascade KPIs to individual correctional centres and staff

performance agreements

Lessons

Benchmark performance

• Various options

Transparency and public reporting

• Promotes accountability

• Informs public debate

• Contributes to confidence in the criminal justice system

Thank you & questions

Business

Kathrina Lo - NSW Audit Office - Feedback on NSW 'Performance frameworks in custodial centre operations' Audit