Department of Human Services I Annual Report 2009-10If you have feedback or questions about this report, contact:

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ISSN: 1832–8792

© Commonwealth of Australia 2010

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and enquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General’s Department, National Circuit, Barton ACT 2600 or posted at www.ag.gov.au/cca

About this report This year the annual reports for the Department of Human Services, Centrelink and Medicare Australia reflect the move to integration within the Human Services portfolio.

Although three separate reports are required under relevant legislation, the aim was to achieve some common content and design elements to signify the increasingly close working relationship between the three organisations.

Given the implementation of service delivery reform across the Human Services portfolio, this report can be read as a companion with those of Centrelink and Medicare Australia.

This report was prepared according to the Requirements for Annual Reports, issued by the Department of the Prime Minister and Cabinet on 23 June 2010. The report focuses on the

department’s accountability and performance during 2009–10, including reporting on the Child Support Program and CRS Australia.

The annual report requirements have changed so that government agencies and departments now report against the programs they have in place, rather than report against their outputs. Therefore, this report is structured according to its programs with separate overview, management and accountability, and financial performance chapters.

Chapter 1: Overview—contains a review by the Department of Human Services’ Secretary, Finn Pratt, PSM, which summarises the significant issues and performance in 2009–10 and describes the outlook for 2010–11. This chapter also includes a portfolio overview, background information on service delivery reform, and details of the department’s organisational structure and reporting framework.

Chapter 2: Achievements—Central department—sets out the department’s effectiveness and efficiency in meeting key performance indicator targets, expands on service delivery reform implementation, and highlights the department’s involvement in several important government and other initiatives delivered during the year.

Chapter 3: Achievements—Child Support Program—covers the program’s ongoing activities in collecting and delivering child support payments, and includes 2009–10 performance data compared to the previous year(s). This chapter also focuses on delivering excellent services and how the program engages with customers and the community.

Chapter 4: Achievements—CRS Australia —features performance against targets in the delivery of vocational rehabilitation services to help job seekers who have a disability, injury or health condition. This chapter also includes reporting on staffing issues, customer satisfaction, and partnerships with government and non-government sectors.

Chapter 5: Management and accountability—explains the department’s measures to remain transparent and accountable in its expenditure and operating results, including fraud control and internal and external scrutiny. It also covers new governance arrangements, compliance and communication activities, information and communication technology (ICT) performance, and how the department, the Child Support Program and CRS Australia manage their workplace environments and human resources.

Chapter 6: Financial reporting—provides an overview of the department’s financial performance, and the financial statements for the department, including the Child Support Program and CRS Australia, as audited by the Australian National Audit Office.

Thirteen appendices respond to a number of mandatory reporting requirements—including the compliance index—and expand on other areas of interest.

The back of the report contains a glossary, shortened forms list, general index, and department contact details.

Chapter 1: OverviewSecretary's reviewIn September 2009, I was delighted to take up the appointment as Secretary of the Department of Human Services, which includes the Child Support Program and CRS Australia.

My predecessor, Helen Williams AO, provided outstanding leadership and left the department in very good shape to meet the challenges ahead.

Excellent customer service is not something new for the department, and we continue to focus on providing a seamless service for Australians—thinking about our customers in everything we do. In this context, perhaps the biggest challenge for the department was to begin implementing the Government's works for you service delivery reform agenda.

Service delivery reformAnnouncing the reforms in December 2009, the Minister's intent was clear. He said: 'The time has come to redesign our service delivery to maximise convenience for Australians who rely on us for services'.

Encompassing a range of changes designed to deliver more accessible, high-quality, and customer-focused services, I believe the reforms have provided us a once-in-a-lifetime opportunity to rethink how services are delivered, and to make a real difference to people's lives.

We collaborated with central agencies to ensure sound program management arrangements were in place and that the program was aligned with broader government objectives.

To position the portfolio to implement the reforms, we worked with Centrelink and Medicare Australia to set up a number of co-located offices in existing sites and implemented a single portfolio automated telephone number and website for portfolio Budget information. We also engaged with customers, and the community services sector, on service co-design and the development of new customer service offers.

I was proud when I visited the Belmont (WA) office earlier this year. Belmont demonstrates our step forward in service delivery, as it provides Medicare services and Centrelink assistance from one convenient location. Medicare rebates are paid using EFTPOS terminals to credit them straight into people's accounts, while a Centrelink Customer Service Adviser is on hand to help customers with Centrelink enquiries, and assist them with Centrelink's self-service facilities.

Closer to home, actions to support the reforms involved the introduction of new portfolio governance arrangements and organisational structures, as well as the integration of portfolio enabling services, such as ICT infrastructure, finance, legal, corporate support, communication, property management, procurement and human resources.

Apart from service delivery reform imperatives, these initiatives also reflect the Government's blueprint for public service administrative reform, Ahead of the Game: Blueprint for the Reform of Australian Government Administration. In particular, the changes in the Human Services portfolio respond to recommendations in the blueprint for 'delivering better services for citizens' and to 'enable citizens to collaborate with government in policy and service design'.

LeadershipWhile our people across the portfolio are ensuring the necessary steps are taken on the ground, new Human Services portfolio governance arrangements involving senior executives from the department, Centrelink and Medicare Australia were key to managing the reform process.

Weekly meetings of the Secretary and Chief Executive Officers' Committee have been crucial to ensuring a collaborative, strategic and informed approach to service delivery reform, and I extend my heart-felt thanks to Centrelink's CEO—Carolyn Hogg—and to Medicare Australia's CEO—Lynelle Briggs—for their strong support, enthusiasm, know-how, creativity and good humour.

HighlightsDuring the year, the department achieved positive results against most of its key performance indicators. Highlights included:

delivering initial elements of service delivery reform

integrating enabling services across the portfolio

bedding down new governance and planning arrangements

implementing a comprehensive 2009-10 Compliance Plan

rolling out the new BasicsCard to merchants, and 98.5 per cent of income managed customers in the Northern Territory.

While the Minister was satisfied with the timeliness and quality of briefings, work is under way to increase the number of ministerial replies submitted within agreed timeframes.

Working in partnershipAn example of a lower profile, but equally important achievement, was the close work we did with the Department of Families, Housing, Community Services and Indigenous Affairs, and relevant state and territory agencies, on a new child protection data sharing protocol. The protocol improves information sharing across the country about children and families at risk of harm.

We also negotiated agreements with all states and territories to provide a national emergency call centre 'surge' capability.

The department and portfolio agencies signed and released a portfolio Statement of Commitment to Reconciliation. The statement demonstrates our determination to work together in practical ways to improve health, social and welfare outcomes for all Indigenous Australians.

InnovationThe Geo-demographic Interactive Simulation Tool (GIST)—which contributes to evidence- based policy making and supports the portfolio's emergency management response—was upgraded to incorporate new features such as expanded demographic data sets. Three hundred users across 23 Australian Government departments are now using this capability. In fact, GIST was a finalist in the Excellence in eGovernment Awards presented at CeBIT Australia, held in Sydney earlier this year. I send my congratulations to the GIST team.

The department also led the Commonwealth Spatial Data Integration pilot program, designed to integrate and share spatially-enabled Australian Government administrative data to support social inclusion initiatives. The pilot program was undertaken in partnership with Geoscience Australia and the Australian Bureau of Statistics, in consultation with the Australian Government Information Management Office.

Child Support ProgramHeaded up by Deputy Secretary Philippa Godwin, the Child Support Program (CSP) also had a busy year.

Overall the CSP's performance saw increases to the amount of child support transferred between parents and collection rate for registered collect cases. As well, there was an increase in the percentage of private collect cases.

Customer satisfaction improved and the number of complaints reduced by over 25 per cent. An innovative program piloted a redesigned assessment process, which produced significantly shorter timeframes for finalising child support applications.

A major milestone for CSP was the successful implementation of the Alignment of Care 2009-10 budget measure. CSP worked closely with Centrelink to deliver this joined-up service. Mutual customers are now able to contact either CSP or Centrelink to notify care arrangements and either agency will make the determination using the same rules. The care decision is then forwarded to the other agency and applied to the customer's assessment.

In late 2009 an independent review finished its report on improving the effectiveness and efficiency of CSP decision-making and quality-assurance processes. The department set up a work program to respond to the review's recommendations.

In the past six months a new service-delivery model and improvements to front-line customer services were implemented. The CSP plans to implement further review recommendations by June 2011.

CRS AustraliaCRS Australia, led by General Manager Margaret Carmody, continued to make a difference in our community by providing disability employment, assessment and injury management services to enable people to access and remain in work. Its services also supported employers to improve workplace safety and retain their skilled and valuable staff.

In 2010 CRS Australia successfully transitioned to the new Department of Education, Employment and Workplace Relations Employment Services Memorandum of Understanding. Significant investment in learning and development ensured CRS Australia built organisational capability and changed business practices to meet purchaser requirements.

CRS Australia also improved its effectiveness relative to the market with significantly more job seekers being placed in employment than in previous years. The concerted effort, flexibility and effectiveness of staff helped to produce excellent outcomes for its job seekers.

Departmental financial performanceIn 2009-10 the department had an operating surplus of $26.1 million, 3.4 per cent of the income available to it. The result was more than the operating surplus of $4.8 million forecast for the 2009-10 year in the Portfolio Budget Statements 2010-11, predominantly due to us not needing to access the $8.0 million available under the Compensation for Detriment caused by Defective Administration Scheme and a CRS Australia surplus of $7.0 million.

The year aheadThe 2010-11 Budget contained over 60 measures that involve the Human Services portfolio. These measures will allow us to maintain our business-as-usual activities and, in some cases, extend our service delivery responsibilities. Substantial measures include:

establishing a series of pilot projects on compliance approaches for social, health and welfare payments

implementing Paid Parental Leave

implementing the initiatives under the Fifth Community Pharmacy Agreement.

Implementing further elements of service delivery reform in the year ahead, and beyond, will continue to test our planning, management and implementation abilities.

Our people are our greatest strength, and all have valuable and important ideas and experience to contribute. It is the portfolio's extraordinarily capable and highly-skilled workforce that is fundamental to achieving positive outcomes for our customers and the Australian community.

Finn Pratt, PSM

Secretary

Portfolio overviewThe Department of Human Services was established on 26 October 2004, as part of the Finance portfolio, to improve the development and delivery of government social and health-related services to the Australian people. The Department of Human Services and its agencies were transferred to the newly created Human Services portfolio on 30 January 2007.

The portfolio brings together service delivery agencies—Australian Hearing, Centrelink, Medicare Australia and the Department of Human Services. The Department of Human Services includes the Child Support Program and CRS Australia.

MinisterThe Hon Chris Bowen, MP, the Minister for Human Services, was responsible for administering the following legislation:

Australian Hearing Services Act 1991, except to the extent that it is administered by the Minister for Health and Ageing

Child Support (Assessment) Act 1989, insofar as it relates to the exercise of the powers and functions conferred on the Registrar under the Act

Child Support Legislation Amendment (Reform of the Child Support Scheme—Initial Measures) Act 2006, insofar as it relates to the exercise of the powers and functions conferred on the Registrar under the Act

Child Support Legislation Amendment (Reform of the Child Support Scheme—New Formula and Other Measures) Act 2006, insofar as it relates to the exercise of the powers and functions conferred on the Registrar under the Act

Child Support (Registration and Collection) Act 1988, insofar as it relates to the appointment of the Registrar and the exercise of the powers and functions conferred on the Registrar under the Act

Commonwealth Services Delivery Agency Act 1997

Medicare Australia Act 1973.

PORTFOLIO STRUCTUREAt 30 June 2010 the Human Services portfolio consisted of the Department of Human Services, Centrelink, Medicare Australia and Australian Hearing.

The Department of Human Services consists of the central department, the Child Support Program and CRS Australia.

The central department directs, coordinates and brokers improvements to service delivery, provides policy advice on service delivery matters to government, and ensures efficient implementation of government service delivery.

The Child Support Program gives separated parents the financial and emotional support necessary for their children's wellbeing.

CRS Australia helps people with a disability, injury or health condition to get and keep a job, by providing individual rehabilitation programs and helping employers to keep their workplaces safe.

Centrelink delivers a range of government payments and services to Australians, including retirees, families, carers, parents, people with a disability, Indigenous people, and people from diverse cultural and linguistic backgrounds. Centrelink also provides services at times of major change.

Medicare Australia looks after the health of Australians through efficient services and payments, such as Medicare, the Pharmaceutical Benefits Scheme, the Australian Childhood Immunisation Register and the Australian Organ Donor Register.

Australian Hearing is a statutory authority that provides a full range of hearing services for children and young people up to the age of 21, eligible adults and age pensioners, and most war veterans.

Across the Human Services portfolio there are more than 39 000 employees. Of these, approximately three-quarters work in front-line services. Our front-line service staff deal with customers either in offices, or through phone and processing centres.

Figure 1—Human Services portfolio structure at 30 June 2010

Service delivery reformOn 16 December 2009 the Minister for Human Services announced the start of the reform to government service delivery to develop a modern, flexible, whole-of-government service delivery system. This will enable the Australian Government to better meet the needs and expectations of the Australian people, and to achieve policy outcomes, while delivering services more efficiently.

Service delivery reform represents a fundamental transformation of government services delivered through the Human Services portfolio. The portfolio has a combined customer base almost equal to the entire Australian population and a workforce which comprises nearly a quarter of the Australian Public Service.

Service delivery reform is focused on several areas of service delivery improvement that will:

provide more convenient services through the co-location of offices and the integration of portfolio websites and phone numbers to bring services together

deliver more coordinated services through improved assistance and intensive case coordination support for those who suffer from multiple disadvantages

utilise technological advances to provide modern services such as online forms and letters, single online accounts and the automation of customer transactions to reduce the time people have to interact with government

provide tailored services that are targeted to the needs of people and their particular circumstances

improve mobile and visiting services for people living in remote areas or who are socially isolated.

Service delivery reform aims to deliver government social and health related services that are Easy, High Quality and Works for You:

Easy—meaning it is easier for people to do business with government at a time and manner that suits their circumstances

High Quality—meaning people get better quality services and more intensive help and support at times in their lives when they need it

Works for You (the Australian people)— meaning people get service from government that ensures they receive the benefits and support they are entitled to in ways that work for them.

Services will be transitioned from fragmented and separated program and process-based approaches to service offers that are coordinated, tailored and put people first.

Services will be simplified and automated giving people the option to self-manage their own interactions with government.

Moving away from this fragmented approach will progressively enable front-line staff to provide more managed services and improved case coordination for those in need of more intensive support.

This will help to prevent people falling through the cracks and provide better policy outcomes for government.

For the 2010 calendar year the government gave specific commitments to:

co-locate 20 Centrelink and Medicare Australia offices by the end of 2010, and around 40 by 2012

implement a single phone number and a single website for the portfolio by the end of 2010

integrate enabling support services, including ICT, ministerial and parliamentary, legal services, people services, communications, corporate support, audit and assurance functions, finance, property management, procurement and human resources.

As part of the reform the Department of Human Services, Centrelink and Medicare Australia are planning to reconstitute as a single department in 2011.

During 2009-10 work began on implementing service delivery reform. Progress of this work is detailed throughout this report and the Centrelink and Medicare Australia annual reports.

Departmental overviewThe Department of Human Services was created on 26 October 2004, as part of the Finance portfolio, to improve the development and delivery of government social and health-related services to the Australian people.

As a result of Administrative Arrangements Orders (AAOs) issued on 30 January 2007, the department and its agencies were transferred to a newly created Human Services portfolio.

The Department of Human Services provides a central policy and coordination role for the delivery of services across the portfolio as well as being the delivery agency for child support and a provider of disability employment and related services. It works with other departments and agencies to develop policy on service delivery—as clarified by the AAOs issued on 25 January 2008—and to ensure the effective, innovative, and efficient implementation of government service delivery policy.

To continually improve the quality and cost effectiveness of service delivery by portfolio agencies the department makes sure any issues are considered early in the policy development process.

As the first step towards service delivery reform, from 1 March 2010 the portfolio began integrating enabling services such as ICT infrastructure, property management, finance, legal, corporate support, communications, procurement and human resources across the department (excluding CRS Australia), Medicare Australia and Centrelink.

Figure 2—The department at a glance

2009-10

Department of Human Services employees (including CSP) 4584

CRS Australia employees 2053

Department of Human Services employee turnover 10.9 per cent

Job seekers helped by CRS Australia more than 57 000

DEEWR funded job seekers placed in employment by CRS Australia

more than 11 800

CRS Australia conversion rate from job placement to 13-week employment

70 per cent

2009-10

Job seeker satisfaction with CRS Australia services 89 per cent

CRS Australia employee satisfaction 78 per cent

CRS Australia employee turnover 10.9 per cent

Number of CSP child support customers 1.3 million

Customer satisfaction with CSP services 74.9 per cent (target: 70 per cent)

CSP service standard of telephone calls answered within 30 seconds

82.1 per cent

CSP total amount of child support transferred between parents* $2.98 billion

CSP Collect collection rate 91.9 per cent

* These figures are derived for performance reporting and differ from the disclosures in the financial statements. They include debts that have been written off, but exclude overpayments and child support liabilities raised but not yet due. There are also minor differences related to the timing of the separate data extracts. Additionally, international debt for performance reporting purposes differs from the disclosures in the financial statements as it includes collection by overseas governments for custodial parents residing in Australia.

GOALS, ROLES, OBJECTIVES AND STRATEGIESIn 2009-10 the department aimed to meet the specific targets set out in the 2009-10 Portfolio Budget Statements and the 2009-10 Portfolio Additional Estimates Statements (see chapters 2-4 of this report).

Figure 3 sets out the department's outcome and strategies as described in the 2009-10 Portfolio Budget Statements. The department also focused on priorities set out in the Strategic Plan 2009-13 which is available on the department's website at www.humanservices.gov.au.

The plan establishes the department's purpose, values, approach and includes strategies and priorities for Child Support Program and CRS Australia, which also have plans specifically relevant to their services. Supporting the plan, an approach was introduced that integrates planning, risk, financial and people management.

The announcement of service delivery reform in December 2009 has seen the department begin work to replace the current five-year strategic plan with DHS Strategic Directions 2010-11, to be introduced in August 2010. The strategic directions will have a range of portfolio priorities reflecting ongoing business as usual and service delivery reform. This planning approach has been adopted by the department, Centrelink and Medicare Australia.

Figure 3—Outcome and strategies of the Department of Human Services

Outcome Strategies

Informed government decisions on, and access to, social, health and child support services for Australians through policy development and

Working with other government agencies to develop, innovative and flexible service delivery policy that enables access to a high

Outcome Strategies

advice, and the coordination and delivery of services.

standard of service to customers.

Working with the service delivery agencies to deliver value for money in service provision, and sound and sustainable financial and governance arrangements.

Supporting separated parents to transfer payments for the benefit of their children through the delivery of a coordinated approach to child support services.

Providing people with a disability or injury with high quality vocational rehabilitation assessment, injury management and prevention services.

Providing advice and service delivery that balances individuals' preference for service delivery with the risks to taxpayer funds caused by fraud and incorrect payment.

STRUCTURE AND FUNCTIONSFigure 5 on page 12 shows the organisational structure of the department at 30 June 2010.

The structure and working arrangements of the department were reorganised from 1 March 2010. Enabling services across the Human Services portfolio were integrated to provide services for the whole of the portfolio as part of the service delivery reform agenda announced by Minister Bowen on 16 December 2009.

The enabling services included ICT infrastructure, legal, corporate support, communications, property management, procurement and human resources functions.

Under the new arrangements the integration of the portfolio's ICT platform is led by the Department of Human Services.

Centrelink has lead responsibility for the integration of corporate functions.

Medicare Australia has lead responsibility for managing the integration of staff across the portfolio, and the development of the portfolio's staff capability and services.

The Secretary of the department, and the Chief Executive Officers of Centrelink and Medicare Australia, retain separate accountability for the department, Centrelink and Medicare Australia respectively.

ExecutiveThe names of senior executives are shown on the organisational structure in Figure 5 on page 12.

ResponsibilitiesThe Secretary is directly responsible to the Minister for Human Services for the leadership, management and performance of the department. This includes determining priorities and resource allocations.

LEGISLATIONThis annual report includes appendices on reports required by the following legislation:

section 74 of the Occupational Health and Safety Act 1991—see Appendix A— Occupational health and safety

section 8 of the Freedom of Information Act 1982—see Appendix B—Freedom of information

section 311A of the Commonwealth Electoral Act 1918—see Appendix C— Advertising and market research

section 516A of the Environment Protection and Biodiversity Conservation Act 1999— see Appendix D—Ecologically sustainable development and environmental performance

This report also includes reporting under the Disability Discrimination Act 1992—see Appendix E—Commonwealth Disability Strategy.

PLANNING AND REPORTING

Outcome and programsThe 2009-10 Portfolio Budget Statements and the 2009-10 Portfolio Additional Estimates Statements describe the portfolio department as having one outcome and two programs.

The programs are Human Services (Program 1.1) and Child Support (Program 1.2).

Figure 4 shows the department's outcome and program structure.

The department's sole outcome is informed government decisions on, and access to, social, health and child support services for Australians through policy development and advice, and the coordination and delivery of services.

The department is responsible for ensuring that the Australian Government gets best value for money in service delivery while emphasising continuous service improvements and a whole- of-government approach.

Figure 4—Outcome and programs structure 2009-10

Figure 5—Organisational structure and senior staffing, at 30 June 2010

Notes

This organisational chart reflects changes to organisational structures within the Human Services portfolio as part of the government’s service delivery reform agenda. From 1 March 2010 enabling services across the portfolio were integrated to provide services for the whole of the portfolio. The enabling services included ICT infrastructure, finance, legal, corporate support, communication, property management, procurement and human resources functions. Centrelink has lead responsibility for the integration of corporate functions. Medicare Australia has lead responsibility for managing the integration of staff within the portfolio and the development of the portfolio’s staff capability and services. The integration of the portfolio’s information and communications technology platform is led by the Department of Human Services.

Chapter 2: Achievements—Central departmentInformed government decisions on, and access to, social, health and child support services for Australians through policy development and advice, and the coordination and delivery of services.

Case Study—Getting the GISTDeveloped for the Department of Human Services to support service delivery supply and demand modeling, the Geo-demographic Interactive Simulation Tool (GIST) is a user-friendly, web-based geospatial analytics tool designed to enhance the way government approaches evidence-based policy making.

Holding a wealth of information that agencies can tap into quickly and easily for demographic information, GIST has quickly grown to become a cross-government tool.

Today, GIST is deployed to over 300 users across 23 Australian Government departments and agencies through a secure web-based environment. The Australian Bureau of Statistics, Centrelink and Medicare Australia are among the Australian Government departments providing data from which a detailed picture of Australia can be built.

Signaling its growing popularity among government users, GIST was a finalist in the excellence in eGovernment Awards presented at CeBIT Australia, held in Sydney during May 2010.

GIST has an intuitive set of interactive functions that allow users to query, map, profile and chart information at the click of a mouse. The information is presented in a way that shows the impact of government spending and policy decisions on communities and their needs. The type of data it provides includes:

• social and economic indicators

• education attainment

• areas of disadvantage

• government program expenditure

• agency office locations

• Indigenous communities and statistics

• spatial data on the Murray-Darling Basin area and surface water managements areas

• community facilities, such as schools, hospitals or nursing homes.

Through GIST, government can better plan delivery of services and programs for areas of high need, while monitoring environment and economic impacts.

The central department delivers Outcome 1 (2009-10 Human Services Portfolio Budget Statements) by:

provision of advice on the development of service delivery policy and programs, the coordination and development of specific initiatives on behalf of government and the governance of service delivery performance involving portfolio agencies and programs within the Department, including CSP and CRS Australia

delivery of child support assessment, registration, collection and disbursement services and support to separated parents, through CSP

delivery of expert assessment, injury management and employment services to assist people who have a disability or injury to get and keep a job, through CRS Australia. All services and funding are demand driven.

Table 1 on page 18 summarises the department's performance against key performance indicators and targets set out in the 2009-10 Human Services Portfolio Budget Statements. The following sections detail the department's performance in delivering Outcome 1 in 2009-10.

PERFORMANCE HIGHLIGHTS—CENTRAL DEPARTMENTProviding a central policy and coordination role for the delivery of services across the Human Services portfolio, the department coordinates and brokers improvements to policy on service delivery and service delivery reform to improve the delivery of innovative and cost effective social, health, child support and rehabilitation services to the Australian public.

In delivering on these objectives, the department places a strong emphasis on promoting innovation and continuous improvement, and to working across service delivery agencies and the government as a whole.

Performance highlights for 2009-10 include:

supporting the Australian Government's service delivery reform agenda by introducing new portfolio governance arrangements and organisational structures, and integrating portfolio enabling services, including ICT infrastructure, finance, legal, corporate support, communications, property management, procurement and human resources

working closely with the Human Services portfolio agencies on service delivery reforms, which included setting up co-located offices, engaging with customers and the community on service co-design, and developing customer service offers

receiving a Gold Award for the BasicsCard project at the Institute of Public Administration Australia's Prime Minister's Award for Excellence in Public Sector Management 2009; an improved card with more options was rolled out to merchants and 98.5 per cent of income- managed customers in the Northern Territory between March and June 2010

leading the Commonwealth Spatial Data Integration pilot program, designed to develop a coordinated approach to integrating and sharing of spatially-enabled Australian Government administrative data to support social inclusion initiatives.

MAIN RESULTSTable 1—Performance highlights—Central department

Targets Performance 2008-09 Performance 2009-10

Briefs are submitted within agreed timeframes and meet a standard of satisfactory or above.

95 per cent of briefs are submitted within agreed timeframes and meet satisfactory standards or above.

Of the briefs on which the Minister provided a feedback rating, 98.5 per cent received a rating of effective or better.

Feedback received from the Minister's office has indicated that the Minister was satisfied with the timeliness and quality of briefing provided during 2009-10.

Ministerial replies to correspondence are submitted within agreed timeframes.

95 per cent of ministerial replies to correspondence submitted within agreed timeframes.

85 per cent of departmental ministerial replies prepared by the department were submitted within the agreed timeframes. The department is committed to further improvements in this area.

76 per cent of ministerial replies prepared by the department were submitted within the agreed timeframes.

An increase in complex child support matters as a percentage of correspondence processed by the department has contributed to this result.

Efficiencies being realised since the integration of portfolio parliamentary teams in March 2010 are expected to deliver ongoing improvement against this target.

Key initiatives, such as: 1. service delivery reform initiatives, 2. fraud and compliance initiatives, 3. income management card, 4. Commonwealth Spatial Data Integration initiative, are delivered within agreed timeframes and budgets.

All 1. Service delivery reform initiatives

As part of the service delivery reform agenda the department continued work on developing options and business cases for government, taking into account the economic conditions and resulting fiscal constraints. Coordinated customer access and channel management approaches also continued to be formulated. This included agreed principles for co-location of shopfronts and a process for considering new policy initiatives in a multi-channel portfolio-wide environment. The department also worked with portfolio agencies to implement practical reform activities, one example of which was a co-located Centrelink and Medicare office in Narooma that allows customers to access the services of both agencies in one location.

To ensure the timely implementation of enabling services activities associated with service delivery reform, a coordinated portfolio approach to enabling services was established through the development of the Portfolio Integration Steering Committee. The committee oversees coordinated investment decisions and frameworks for ICT, property and other corporate functions.

1. Service delivery reform initiatives

The Minister for Human Services announced service delivery reform in December 2009. This included progressing the deliverable of co-location (20 sites by December 2010), virtual integration of enabling services across the portfolio (from 1 March 2010) and implementation of a single phone and web initiative (piloted in May 2010). The service delivery reform implementation team was established in January 2010, and incorporates the SDR Coordination Division and the Strategy and Planning Division. The implementation team has focused on the design of the reform program and its associated costs for consideration by government in late 2010. The SDR Program Office was established and a supporting Program Management Framework was developed. The framework includes the governance structure, roles and instruments that support decision making and reporting arrangements to ensure accountability and transparency for the service delivery reform program.

The SDR Board was established to support service delivery reform. The Board is a strategic advisory body for service delivery reform. It is responsible for setting the direction and driving service delivery reform across the portfolio, ensuring that key goals and agreed outcomes are achieved and are in line with government objectives.

The SDR Board supports the Secretary and Chief Executive Officers' Committee which meets weekly to discuss portfolio-wide issues, including the progress and strategic direction of the SDR program. Direction and decisions for all service delivery reform activities are provided by this committee.

The department established a Memorandum of Understanding with the Office of the Privacy Commissioner to ensure that privacy considerations are appropriately managed and consistently applied across the reform.

All 2. Fraud and compliance initiatives

The new strategic approach to supporting compliance and combating fraud was advanced by the development and implementation of the 2009-10 Compliance Plan. The plan provides an assessment of current risks associated with fraud and non-compliance, activities to address those risks and performance indicators to measure the effectiveness of those responses. The plan identifies mitigation strategies and opportunities to reprioritise fraud and non-compliance activities towards those that deliver the greatest return on investment. It was considered in the 2009-10 Budget and informed the development of six measures announced in the Budget to further support the new strategic approach.

The development of the 2009-10 Compliance Plan was achieved against agreed timeframes and initial measures identified in the plan were progressed for the 2009-10 Federal Budget. Governance structures to oversee and facilitate implementation were also established within agreed timeframes.

2. Fraud and compliance initiatives

2009-10 was the first year in which a more strategic and integrated approach to supporting compliance and combating fraud was in operation.

The strategic approach was further progressed in the 2010-11 Compliance Plan. The plan provides a high-level framework along five strategic themes:

I. managing risk

II. focus on prevention

III. early intervention

IV. intelligence-led approach

V. managing debt.

The performance report for 2008-09 accompanied the 2010-11 plan and applied to the period before the strategic approach to compliance. Future performance reports will measure the long-term effectiveness of the strategic approach to fraud and non-compliance using newly-developed performance indicators.

The development of the 2010-11 Compliance Plan was achieved against agreed timeframes and initial measures identified in the plan were progressed for the 2010-11 Federal Budget. Governance structures to oversee and facilitate implementation, such as the Strategic Fraud and Non-compliance Steering Committee, managed and facilitated continuing development of the strategic approach to fraud and non-compliance.

All 3. Income Management Card

The Minister was satisfied with both the BasicsCard implementation in 2008 and progress with the procurement of the replacement card solution, as evidenced by his speech

3. Income Management Card

The Minister's March 2009 promise to industry of a competitive tender for a replacement Income Management Card (or 'BasicsCard') was fulfilled in November 2009 with the contract signing of the new card provider. The Minister announced to the media that the new card would continue to support ongoing Income

at the 14th Cards and Payments Conference and various media releases.

The BasicsCard was rolled out between September and December 2008 and the replacement card request for tender was published in May 2009 according to the respective approved project schedules.

Management policy.

The replacement BasicsCard was rolled out to merchants and income-managed customers on schedule from January to June 2010. Improvements include the printing of the customer name on the card and enhanced balance inquiry options such as the 1800-freecall balance checking number.

At 30 June 2010, 98.5 per cent of customers had been provided with the new card.

All 4. Commonwealth Spatial Data Integration (CSDI) initiative

There was no key performance indicator in the 2008-09 Portfolio Budget Statements.

The goal of the CSDI pilot program was to develop and implement a coordinated approach to the integration and sharing of spatially enabled Australian Government administrative data to support social inclusion initiatives.

The CSDI pilot program commenced in March 2009 and was established in partnership with Geoscience Australia (GA) the Australian Bureau of Statistics (ABS), and in consultation with Australian Government Information Management Office.

During 2008-09, the pilot program office was established and the framework for each of the constituent projects, including GIST, was created.

4. Commonwealth Spatial Data Integration (CSDI) initiative

During 2009-10 the 2nd Pass Business Case for CSDI was developed, in partnership with GA, and ABS, in consultation with key Australian Government departments and agencies.

The department also established a CSDI cross-portfolio working group which helped develop whole-of-government data sharing processes including appropriate standards, technology and governance.

The CSDI pilot program finished in June 2010 having successfully developed all critical project deliverables, including the deployment of GIST across 23 government agencies. Funding for a full CSDI program was not sought for 2010-11, as offsets could not be identified from participating agencies.

Key performance indicators1: Service delivery performance against agreed standards and targets is reported to the Minister in agreed timeframes.

Quarterly reports provided to Minister within 6 weeks of end of quarter.2

The Minister's Statement of Expectations and Centrelink's Statement of Intent and Annual Report on achievements were in place in 2008-09. The Minister's Statement of Expectations and Medicare Australia's Statement of Intent and Annual Report on Achievements were in place for 2008-09.

Australian Hearing identifies service delivery targets in its Corporate Plan 2008-11 in accordance with the Commonwealth Authorities and Companies Act 1997 reporting requirements. The Memorandum of Understanding 2008-11 with the Office of Hearing Services, Department of Health and Ageing, prescribes its service delivery targets for Indigenous clients under the Community Service Obligation program.

Until 1 April 2009, Health Services Australia's performance was monitored against its Corporate Plan 2008-11 and Statement of Corporate Intent 2008-11 in line with reporting requirements for Government Business Enterprises under the Commonwealth Authorities and Companies Act 1997.

Annual Reports on Achievements were in place for Centrelink, Medicare Australia and Australian Hearing for 2009-10.

In January 2010 the Minister outlined his expectations for Centrelink and Medicare by letters to their CEOs. The letters highlight key agency priorities and emphasise the importance of working closely across the portfolio.

Australian Hearing identified service delivery targets in its Corporate Plan 2010-2013, in accordance with the Commonwealth Authorities and Companies Act 1997 reporting requirements. The Memorandum of Understanding 2008-11 with the Office of Hearing Services, Department of Health and Ageing, prescribes its service delivery targets for clients under the Community Service Obligation. Australian Hearing reports quarterly to the Secretary on performance against both the corporate plan targets and the Community Service Obligations service delivery targets.

The Secretary met with the Minister on matters including service delivery performance, approximately monthly during 2009-10.

1. KPI for 2008-09: Service delivery expectations for 2008-09 are set for the portfolio agencies and business units of the department.

2. KPI targets for 2008-09: Agencies and business units have service delivery expectations set.

Targets Performance 2008-09 Performance 2009-10

Key performance indicators1: Governance arrangements are appropriately implemented and managed for the Portfolio agencies and business units.

Regular performance Centrelink governance Centrelink governance

Targets Performance 2008-09 Performance 2009-10

management meetings and reports provided to the Secretary and Minister.2

meetings were held monthly in 2008-09.

Medicare Australia governance meetings were held monthly in 2008-09 and were reconstructed to enable improved consideration of the most recent data and information.

Australian Hearing governance meetings were held quarterly to review performance. The quarterly shareholder reports are being reviewed for greater clarity of the progress of business imperatives.

Until April 2009 when Health Services Australia left the portfolio, governance meetings were held quarterly.

meetings were held monthly until November 2009, and Medicare Australia governance meetings were held in July, September and November 2009. These meetings were replaced by alternative governance arrangements, including the Secretary and Chief Executive Officers' Committee meeting.

The first Secretary and Chief Executive Officers' Committee meeting was held in October 2009. They were then held approximately weekly for the remainder of 2009-10.

CRS Australia governance meetings were held in July, August and September 2009 and were then discontinued. The General Manager of CRS Australia is a member of the Department of Human Services Management Board.

Australian Hearing governance meetings were held in August and December 2009 and March and June 2010, to review performance against targets within both its corporate plan and Community Service Obligations service delivery targets.

The Secretary met with the Minister on matters including performance reporting, approximately monthly during 2009-10.

1. KPI for 2008-09: Governance arrangements are in place and service delivery performance is monitored against expectations.

2. KPI targets for 2008-09: Performance is monitored through monthly governance meetings (quarterly in the case of HSA group and Australian Hearing).

SERVICE DELIVERY REFORMIn December 2009 the Minister for Human Services announced the start of reform to Australian Government service delivery that is easy, high quality and works for all Australians.

The Minister's announcement committed the portfolio to three deliverables:

1. Twenty co-located Centrelink and Medicare Australia offices by the end of 2010, and approximately 40 by 2012

2. a single portofolio phone number and website by the end of 2010

3. the integration of enabling services, including ICT infrastructure, finance, legal, corporate support, communications, property management, procurement and human resources.

In the short-to-medium term CRS Australia will continue to deliver its current functions, including corporate, human resources and ICT support services; however, changes will be made to align policy and practice where possible.

There has been significant progress on implementing these three key deliverables, together with other key elements of service delivery reform.

Service delivery reform in 2010

Co-locationThe co-location of Medicare and Centrelink offices gives Australians better access to the social, health and welfare services delivered by the portfolio in the convenience of one location. Feedback based on the initial co-located sites shows high levels of collaboration between staff to provide more joined up services, and customers have responded positively to the convenience of a one-stop-shop to undertake transactions across multiple agencies.

Medicare Australia is already co-located with Centrelink in 1 5 sites across Australia and, during 2009-10, four more co-located sites opened in Narooma, Belmont and Warrawong NSW and Belmont WA.

Medicare Australia is leading the development and implementation of the co-location process. More information on the co-location of offices is provided in the Medicare Australia Annual Report.

Single portfolio telephone number and websiteProviding a single telephone number and website will give the Australian people the means to access portfolio information and details about their transactions in their own time.

To ensure that a single portfolio telephone number and website provides enhanced service delivery, pilots were undertaken to test the concept. The pilots were launched to support the 2010-11 Budget announcements by providing customers with easy access to portfolio budget information. Both pilots were evaluated from June 2010, including extensive testing with customers to enable implementation from November 2010.

The single portfolio telephone number (13 24 68) will provide a first point of contact for new customers via an automated telephone service to access information about services across the Human Services portfolio.

The single portfolio website will promote high-quality information about Human Services portfolio services. Work on the single website is closely aligned with the Australian Government Online Service Point and the development of the australia.gov.au portal managed by the Department of Finance and Deregulation.

Integration of enabling servicesIn December 2009 the Minister foreshadowed that the Department of Human Services (including the Child Support Program and CRS Australia), Centrelink and Medicare Australia would become a single department of state. This organisational restructure represents a major transformational change to the portfolio as staff numbers represent approximately one quarter of the Australian Public Service.

From 1 March 2010 enabling functions of the portfolio (excluding Australian Hearing and CRS Australia)—legal services, people services, audit and assurance, information and communication technology, infrastructure, property, corporate services and communications—were brought together. Legislative change is required to effect the creation of the single department of state.

Other achievementsLocal Connections to WorkIn four of the co-located Centrelink offices, a new approach to service delivery called Local Connections to Work (LCTW) was introduced. This initiative, developed by the Taskforce on Strengthening Government Service Delivery for Job Seekers, helps disadvantaged job seekers and their families’ access existing high-quality services under one roof.

LCTW is based on the New Zealand Community Link model. The initiative brings together Australian, state and local government services, employment services providers and other community welfare organisations. Services provided include counselling, housing, mental health, youth, training and financial assistance. Community partners are colocated on a rostered basis at the four Centrelink Customer Service Centres. This means that disadvantaged job seekers can 'tell their story once', and receive the range of services they need (a wrap-around service).

From 24 May 2010—in Frankston (Victoria), Campsie (New South Wales), Ipswich (Queensland) and Elizabeth (South Australia) — LCTW has assisted job seekers overcome disadvantage and barriers to social inclusion and economic participation. LCTW will be evaluated to guide the longer-term development of service delivery reform customer service offers.

Memorandum of Understanding with the Privacy CommissionerA Memorandum of Understanding was entered into with the Office of the Privacy Commissioner, ensuring that key considerations regarding privacy would be built into the structure of service delivery reform from the start.

A Customer Privacy Framework has also been developed to ensure that privacy considerations are consistent across the reform. The framework will ensure that service delivery reform is implemented in a way that fosters trust and respect and maintains or enhances people's choice and control in relation to their personal information. Privacy standards have also been developed in consultation with the Office of the Privacy Commissioner to inform the framework. The privacy standards complement existing obligations under the Privacy Act 1988 and other applicable privacy and secrecy requirements.

Privacy Impact AssessmentsPrivacy Impact Assessments were initiated during the early design phase of service delivery reform to help ensure privacy considerations and protections were considered at the outset.

Privacy Impact Assessments have been undertaken for all customer services. These assessments incorporate an analysis of the effect on an individual's privacy and the identification of privacy issues and strategies for addressing privacy risks. The assessments found that in general there are low privacy risks associated with service delivery reform as the reform is based on informed customer consent in relation to the use and disclosure of personal information.

Co-design, stakeholder and community engagementService delivery reform is focused on putting people at the centre of service delivery, which requires extensive engagement to ensure that community needs are identified and met. The portfolio has implemented a co-design approach that builds on traditional stakeholder engagement to engage with the people who actually use government service delivery and actively seek their views on how services could be better delivered.

Co-design is more than asking for feedback or undertaking consultation or satisfaction surveys. It means engaging with individuals and groups from the beginning to the end of a process.

Our co-design approach will ensure:

genuine partnerships are built with the community

the community has a real and ongoing voice at the table

change delivers a balance of what the Australian Government, the Human Services portfolio and the community want to achieve

the end user is involved in the planning, development and implementation of solutions

outputs are user-friendly and meet the end user's needs

change and new products integrate smoothly with existing systems.

The portfolio held 20 community workshops across Australia to inform the development of future services. Workshops were segmented by customer groups including families, seniors, Indigenous Australians and people accessing mobile servicing.

Findings from these workshops have consistently highlighted the importance of linking up services, and providing well-coordinated services across customer areas of need. Workshops, focus group discussions and electronic media will be used throughout 2010-11 to explore service delivery experiences, reform opportunities and service delivery design.

As part of service delivery reform within the portfolio, Medicare Australia is leading the development and implementation of the co-design process. More information on co-design is provided in the Medicare Australia Annual Report.

Gateway Review ProcessService delivery reform is subject to the Gateway Review Process, facilitated by the Department of Finance and Deregulation. A Gate 0 (Business Need) review was undertaken in April 2010, and received a 'green' rating for the overall delivery confidence for the reform. The green rating indicates the program is on target for the effective and timely delivery of outcomes and, while there may be some findings requiring management attention, these appear readily resolvable at this stage.

Engagement with the Community and Public Sector Union (CPSU)We are working closely with the CPSU given they represent a large number of portfolio staff. A Department of Human Services Deputy CEO/CPSU Working Party on Service Delivery Reform was established earlier this year and it will oversee the development of a portfolio enterprise agreement across the portfolio in the coming year.

Staff integrationBy 1 March 2010 integration of staff across the enabling services of the portfolio into one DHS ICT infrastructure organisation was completed. Under the new structure some staff co-locations took place.

Inter-agency connectivityThe first major milestone in providing cross-organisation connectivity was the development of a network portal for portfolio staff co-located in Centrelink and Medicare Australia sites. The portal allows staff to log in, view their email and work on documents through a virtual portfolio desktop. This made for an easy transition to new work sites by maintaining access to data and services on their previous network.

All staff phone directoryFrom April 2010 all staff across Medicare Australia, the Department of Human Services (excluding CRS Australia) and Centrelink had access to a consolidated portfolio phone directory with the name, agency, location and contact details of staff across the three agencies.

This was an important step towards providing access to information across the portfolio.

Planning for service delivery reform in 2010-11 and beyond

Planning and coordinationOver 2009-10 the portfolio developed high level plans for key elements of the reform program. To ensure successful design and implementation, the department developed a strategy outlining the service delivery vision for 2015 and pathways to achieve it. It also established an umbrella program management and implementation framework, to provide program management and financial coordination.

The department worked closely with central agencies to ensure sound program management arrangements are in place and the program is aligned with broader government objectives. The integration of the portfolio, co-location of offices and the development of a single portfolio telephone number and website will continue throughout 2010-11 together with the next layer of planning for the further deliverables, timeline and associated costs.

Governance structures were established to ensure that appropriate engagement is undertaken across government, and that critical government programs and services continue to be delivered. The governance structure and committees are outlined in more detail on pages 66-71.

Other forums, such as the Strategic Partnerships Interdepartmental Committee and the Health and Human Services Chief Executive Officers' Forum, regularly consider issues related to service delivery reform as part of the broader discussion. These forums are outlined in more detail on page 70.

SERVICE DELIVERY POLICY AND PROGRAM ADVICEIn 2009-10 the department advised the Minister on the development of service delivery policy and programs, coordinated and developed specific initiatives on behalf of the Australian Government relating to service delivery reform, fraud and non-compliance, and managed the governance of service delivery and business agreements involving the portfolio.

Contributions to key government reviewsThe department provided service delivery advice to a range of key government reviews and projects such as the Review of Australia's Future Taxation System and The Reform of Australian Government Administration.

The department worked with The Treasury to coordinate input to the tax system review, including the examination of service delivery implications for the transfer system. The review included several areas of interest for the portfolio in relation to the interaction and administration of the personal tax and transfer systems.

In September 2009 the Prime Minister announced a review of Australian Government administration which was undertaken by an advisory group chaired by the Secretary of the Department of the Prime Minister and Cabinet, Mr Terry Moran AO. The report Ahead of the Game: Blueprint for Reform of Australian Government Administration was released by the government on 29 March 2010. On 8 May 2010 the government agreed to the package of reforms outlined in the report.

The department helped to develop the blueprint which includes aspects of portfolio responsibility, service delivery and areas for performance improvement and reform. The blueprint outlines an ambitious agenda to equip the Australian Public Service and the nation for the challenges of the future. A number of reform areas strongly complement the work being undertaken around service delivery reform. These include delivering better services for citizens, creating more open government, enhancing policy capability, ensuring agency agility, capability and effectiveness, and improving agency efficiency. The department will contribute to initiatives that advance the government's administration reform strategy.

Child protection data sharing protocolThe department worked closely with the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), and relevant state and territory departments, to develop and implement an informationsharing protocol between child protection agencies. The protocol, which aims to improve sharing of information about children and families at risk of harm, began on 1 January 2009, and implementation by relevant Human Services agencies was completed in 2009-10. This represents a commitment by the Australian Government to provide information to help state and territory agencies in their child protection role.

Access and equity

Indigenous AustraliansThe Australian Government's commitment to 'Closing the Gap' aims to reduce Indigenous disadvantage with respect to life expectancy, child mortality, access to early childhood education, educational achievement and employment outcomes.

In 2009-10 agencies developed and implemented a wide range of initiatives to improve Indigenous Australians' ease of access to information and services provided by agencies in urban, regional, and remote communities. Agencies remain active in strengthening and supporting the Council of Australian Governments National Partnership Agreements. In particular, they support the initiatives of the Remote Service Delivery National Partnership where service delivery has extensive geographical reach, including permanent shop fronts and regular outreach visiting services, as well as various forms of third party provided agents and kiosk-like self-service points.

Social inclusionThe Australian Government's social inclusion agenda aims to make sure every Australian has the capability, opportunity and resources to participate in the economy and their community while taking responsibility for shaping their own lives. Released at the inaugural Social Inclusion Conference on 28 January 2010, the national statement on social inclusion A Stronger, Fairer Australia sets out the government's plan for achieving this vision. The department and portfolio agencies provided input to the statement and are represented on the Social Inclusion Consultative Forum.

The Taskforce on Strengthening Government Service Delivery for Job Seekers reported initially to the Australian Social Inclusion Board on the design of the place-based initiative Local Connections to Work and then again on the early implementation experience with the wrap around servicing model. The Australian Social Inclusion Board supported the model and the progress to date.

National compactThe social inclusion agenda recognises the critical role the not-for-profit sector plays in delivering services, advising and developing social policy, and advocating on behalf of marginalised groups. A strong relationship between the government and the sector will be crucial to the success of the agenda and related reforms.

The National Compact: working together, a high- level, aspirational and principle-based document that articulates a mutually respectful relationship between the government and the not-for profit sector to deliver improved policy and services, was launched by the Prime Minister on 17 March 2010. The department and portfolio agencies provided input to the development of the compact and are represented on the National Compact Across Government Working Group.

As a Compact Champion, the Secretary has committed the department to improving the way government and not-for-profit organisations work together to better coordinate the delivery of services for those most in need of support.

An early example of this has been the local community consultation forums undertaken by the Taskforce on Strengthening Government Service Delivery for Job Seekers. These forums were designed to encourage community input to and support for the Local Connections to Work model. The Parliamentary Secretary for Social Inclusion and the voluntary Sector, Senator the Hon Ursula Stephens, attended some of these forums to promote the national compact principles.

HomelessnessIn December 2009 the Australian Government released the report Along the Road Home, outlining key achievements aimed at reducing the level of homelessness over the first year of the White Paper on Homelessness.

The department and Centrelink are represented on the Homelessness Delivery Review Board which is responsible for advancing whole-of- government efforts to reduce homelessness in line with the reforms set out in the White Paper. The department provides strategic support to Centrelink to help it implement White Paper measures, giving Centrelink a larger role in providing support and services to people who are homeless or at risk of becoming homeless.

Family Assistance Office Reforms ProjectThe emerging service delivery reform agenda provided an opportunity to reconsider the Family Assistance Office (FAO) governance arrangements and to pursue greater efficiencies and effectiveness in administration to improve service delivery to FAO customers in 2009-10. The department and FaHCSIA collaborated on the project to assess the ongoing role and function of the FAO service delivery model, governance and operational issues, financial arrangements, and marketing and branding.

As a result of the review, the transfer of FAO governance and website responsibilities from FaHCSIA to DHS took place on 1 June 2010.

Paid parental leaveIn 2009-10 the department worked with portfolio agencies and other Australian Government departments providing advice on service delivery policy and effective program delivery for the Paid Parental Leave scheme. Claimants will be able to lodge claims from October 2010 and payments will begin on 1 January 2011. The Human Services portfolio through the FAO will have a key role in supporting the administration of the scheme.

Income managementIn 2009-10 the department and portfolio agencies worked with FaHCSIA on service delivery policy issues to support the transition and implementation of new arrangements in 2010-11.

STRATEGIC SUPPORTHealth business and delivery policyIn 2009-10 the Health Business and Delivery Policy Branch contributed to policy advice on Cabinet and policy development processes for health-related matters in relation to, for example eHealth, especially the role of Medicare Australia as service operator for the Healthcare Identifier Service, and the potential implications for the portfolio from the health reform agenda.

The department worked with Medicare Australia to implement Budget measures, including the opening of three Medicare offices in Belmont (Western Australia), Belmont and Warrawong (New South Wales), all of which opened on time.

In relation to Australian Hearing, the branch provided advice to government on Community Service Obligations, reviewed quarterly reports, and helped the agency with its interactions with other government portfolios, especially the Office of Hearing Services within the Department of Health and Ageing.

Strategic fraud and non-complianceThe Compliance and Data Branch continues to work closely with portfolio agencies and across government to drive a more integrated response to current and emerging non-compliance risks across the social, health, welfare and child support payment systems.

The branch worked with policy departments and portfolio and central agencies to produce a 2009-10 Compliance Plan which focuses on developing an integrated, strategic approach to compliance activities, including targeting areas of highest risk.

The plan provided material for initiatives announced in the 2009-10 Budget. These initiatives, which included improvements to data matching, debt recovery, earlier detection of inappropriate claiming and identification of customers at highest risk of non-compliance, are estimated to provide savings of $203 million over four years.

Continuing on from the 2009-10 Budget, the branch coordinated the development of further strategies to reduce fraud and non-compliance so that only those who need and are entitled to income support payments receive them.

Initiatives begun included:

better targeting of Newstart Allowance reviews to address compliance risks

detecting undeclared transfer of foreign funds project

full integration of the Child Support Program into the Annual Compliance Plan.

The branch also developed a Strategic Intelligence Training Program for intelligence officers within the Human Services portfolio.

This will give participants practical knowledge of strategic intelligence incorporating research methods, program management, data collection and analysis. They will then have an appreciation and understanding of how strategic intelligence supports decision making and be able to influence, through evidence- based analysis, fraud and compliance priorities within their agencies as well as the broader portfolio strategic priorities.

The branch also coordinated the Australian Government's contribution to the Six Countries forum that brings together social security and employment departments and agencies from Australia, the United Kingdom, Canada, Ireland, New Zealand and the United States to share information on strategies and policies in a number of key areas.

Business intelligenceThe department sources statistical and demographic information from the Australian Bureau of Statistics (ABS), Human Services portfolio and other government agencies to measure, explore and support the department's business activities and decisions.

The functions undertaken by the Business Intelligence Branch include developing reports, applications, technologies and methodologies that support access to and analysis of information needed for strategic decision making and monitoring of service delivery reform, programs and customer impacts.

Commonwealth Spatial Data Integration pilot programThe department led the Commonwealth Spatial Data Integration (CSDI) pilot program. Its goal is to develop and implement a coordinated approach to the integration and sharing of spatially-enabled Australian Government administrative data to support social inclusion initiatives.

The pilot program was established in partnership with Geoscience Australia (GA) and the Australian Bureau of Statistics (ABS), and in consultation with Australian Government Information Management Office.

During 2009-10 the 2nd Pass Business Case for CSDI was developed, in partnership with GA, ABS, and in consultation with key Australian Government departments and agencies.

The department also established a CSDI cross-portfolio working group which helped develop whole-of-government data sharing processes including appropriate standards, technology and governance.

Geo-demographic Interactive Simulation ToolGeo-demographic Interactive Simulation Tool (GIST), the department's geospatial demographic analytical capability, was upgraded to support development of service delivery policy and reform, cross portfolio social inclusion planning and the broader social reform agenda. It now has many new features and datasets to enhance its analytical capability and potential.

The system was initially developed to support service delivery monitoring and planning.

Datasets now available include:

administrative data from Centrelink and Medicare Australia

statistics from the ABS Census 2006

Labour Force and Socio-Economic Indexes for Areas data

infrastructure Economic Stimulus Plan grants data and Priority Employment Areas grants

expenditure data.

In 2010-11 GIST will continue to expand its current evidence base to support the department's strategic priorities for service delivery reform and to improve opportunities and decisions involving individuals, families and communities.

GIST has been deployed to 23 Australian Government departments and agencies and has nearly 300 users.

GIST was a finalist in the excellence in eGovernment Awards presented at the CeBIT Australia, held in Sydney during May 2010.

Disaster and recovery programThe department undertook key work to aid Centrelink prepare its response to Cyclone Ului by identifying at-risk locations. Centrelink's role in the Australian Government's Disaster and Recovery Program is pivotal to the portfolio and vital for a prompt response in delivering services to those affected by disasters. The Business Intelligence Branch contributes in disaster recovery by providing intelligence for disaster areas.

Payment delivery reformIn September 2009 the Minister for Human Services released an Industry Discussion Paper Better Dealings with Government: Innovation in Payments and Information Services to explore ways of using industry capabilities to deliver relevant government payments and related information services. New payment and information service capabilities are crucial to implementing service delivery reform and support broader reform activity across government, including outcomes from the Henry Review of Australia's Future Tax System.

The discussion paper represented the first stage of a closer engagement with industry to identify innovative solutions for payment and information services and government-industry collaborative opportunities.

Portfolio coordination and parliamentaryThe Portfolio Coordination and Parliamentary Branch provides parliamentary, ministerial and government related advice and services to the Minister, departmental executive, department and portfolio agencies. The ministerial and parliamentary functions from within Centrelink and Medicare Australia integrated into the branch on 29 March 2010. The branch now provides related services to the whole portfolio and work is continuing to realise synergies across the functional teams.

Integrated communication functionsTo support service delivery reform the communication functions across the Human Services portfolio, (excluding CRS Australia) were integrated from 1 March 2010.

A high priority is placed on effective communication with customers, potential customers and the Australian community. Effective communication provides Australians with the information they need to make informed choices about Human Services payments and services, and to understand their rights and obligations when they receive these.

Communicating with customers and the community

Communication and educationIn 2009-10 the department continued to communicate with, and to educate, customers and the community to increase their understanding of child support and its connection to the broader family law system.

During the year the department produced 12 national and 230 state and regional CSP media releases on new service options, compliance initiatives, self-help tools and advice on how to handle specific child support issues.

These media activities generated extensive media coverage from national, metropolitan, regional, suburban and trade publications. Independent media analysis in June 2009-May 2010 classified over 95 per cent of all media reports that mentioned the Child Support Agency or child support as positive or neutral.

Independent research into the effectiveness of the communication campaign on the Child Support Scheme by the Open Mind Research Group continued in 2009-10.

The research, first conducted in 2008-09 established a benchmark of awareness of and attitudes to the Child Support Agency and the Child Support Scheme and, subsequently, measured awareness and attitudes against the benchmark.

The most recent research results, from May 2010, show a continued overall positive increase in separated parents' awareness of and attitudes to the Child Support Agency and Child Support Scheme (Figure 6).

Figure 6—Parent perceptions of the child support system

The research showed that 74 per cent of receiving parents and 60 per cent of paying parents agree that the department is communicating better with its customers and the community.

Evaluating media coverageThe media is an effective way of informing the broader community about Australian Government support, services and payments, and media monitoring allows evaluation of issues and messages communicated to the community, as well as the likely impact and ongoing effects on its delivery of services.

Following integration of the communications function across the portfolio, the department implemented a centralised portfolio-wide media monitoring process to achieve a more efficient and cost-effective distribution service. In each portfolio agency fewer than 350 employees have access to full press clips, which reduces the downstream copyright licence fees the external media monitoring provider collects on behalf of Copyright Agency Limited.

Information productsDuring 2009-10 the department updated its core publication The Parent's Guide to Child Support in line with changes to the Child Support Scheme. The guide is a key child support reference for separated parents. It contains comprehensive information about the Child Support Scheme, Family Tax Benefit and support available for separated and separating parents.

Four editions of the regular Child Support Matters newsletter were delivered by mail to parents and stakeholders. The newsletter is also available on the Child Support website— www.csa.gov.au—and keeps CSP customers up-to-date with the Child Support Scheme, CSP and Human Services portfolio.

Twelve editions of eNews for Parents were distributed monthly to online subscribers. This email newsletter provides up-to-date news and information about CSP and child support.

The department also released two new support products for separated and separating parents and children affected by separation or divorce. A third product, a CD-ROM and complementary story and activity book is currently being finalised. These included:

My family is separating—What now? an online tool containing a number of different pathways through the family law system, to help parents more easily navigate the system.

It's not about the money. It's about the kids, an information DVD and online video aimed at Indigenous separated and separating parents and non-parent carers. This product promotes shared parental responsibility for the wellbeing of children, provides information about the role

of the CSP and connections to Family Assistance and Centrelink and explains parents' rights and responsibilities under the Child Support Scheme.

An interactive CD-ROM complementary story and activity booklet for children aged under 12, to complement the successful teen booklet, Family separation—a guide for teens, launched in 2007.

Chapter 3: Achievements—Child Support ProgramDelivery of child support assessment, registration, collection and disbursement services.

Case Study—Financial literacy for parentsI’m helping my kids now with their money management and they each have a savings plan.

In 2008 approximately 53 per cent of Australians weren’t good at managing their money.

Since the Australian Bureau of Statistics published the financial literacy survey results, the Child Support Program (CSP) has partnered with two organisations in an attempt to bring that figure down for separated families.

Budgeting for the household income is more complicated for separated families. Often one partner managed the finances for the household; once separated, both need the skill.

As part of the support services it extends to separated families—legal, emotional, parenting, family violence—CSP is now working with organisations such as the Brotherhood of St Laurence, to enable child support customers to participate in a program called SaverPlus. The program helps low income families to build financial literacy skills and develop long-term saving habits. CSP is also working closely with AFCCRA—the Australian Financial Counselling and Credit Reform Association.

CSP provides an overview of the child support scheme to AFCCRA counsellors, as well as a hotline that financial counsellors can call if they have a client who is also a child support customer requiring advice. The hotline staff can access case files—with the customer’s permission—which gives the financial counsellor a complete picture of the client’s situation.

The partnerships that CSP has with the Brotherhood of St Laurence and AFCCRA are really paying off for separated parents. One client said: ‘I was a bit sceptical when referred to a financial counsellor, but it really has helped. I’m helping my kids now with their money anagement and they each have a savings plan.’

The Child Support Scheme is designed to ensure that both parents contribute to the cost of their children, according to their capacity. The Child Support Program (CSP) contributes to the achievement of Outcome 1 (2009-10 Human Services Portfolio Budget Statements) through the delivery of child support assessment, registration, collection and disbursement services. The following sections detail the CSP's performance for 2009-10.

PERFORMANCE HIGHLIGHTS—CHILD SUPPORT PROGRAMCollectionsCSP improved the overall collection performance during 2009-10; both the collection rate of liabilities and the percentage of private collect customers have increased. CSP also implemented initiatives to enhance the focus on early intervention and targeted collection approaches where customers have outstanding child support.

ComplaintsCSP successfully implemented strategies to reduce the number of escalated complaints. In 2009-10, 9553 complaints were received compared to 12 874 in 2008-09, a reduction of 25.80 per cent. There was also a reduction of just under 50 per cent in the number of complaints relating to staff behaviour during 2009-10.

Telephony responseIn 2009-10 CSP achieved its telephony service standard of 80 per cent of calls answered within 30 seconds.

Early interventionEarly intervention teams continue to successfully contact paying parents and negotiate suitable payment arrangements to minimise the growth of child support debt.

Change of assessmentCSP has begun a trial of the redesigned change of assessment process, which emphasises earlier and more frequent customer contact and significantly shorter timeframes for finalising applications.

Results to date show 67 per cent of applications finalised within 35 days and 88 per cent within 50 days, a significant reduction from 90 days under the existing process.

Customer and stakeholder satisfaction with the redesigned process has been positive and key stakeholders were actively engaged in the redesign process. A full evaluation of the trial will be completed before a decision on the design of a future process is made.

Financial counsellingCSP has partnered with the Australian Financial Counselling and Credit Reform Association to create a 'single point of contact' telephone hotline. The hotline is for financial counsellors who need information about issues on child support when working with mutual customers. Since the hotline's inception in December 2009 it has received 173 calls, enabling customer service officers to work with financial counsellors and customers to make payment arrangements and resolve case specific issues.

Saver PlusThe Saver Plus program is a partnership between the ANZ Bank and Brotherhood of St Laurence designed as a matched savings program to help low-income families develop long-term saving habits and reach an education-focused savings goal. The program helps to build financial literacy.

In May and June 2010 over 46 000 customers were advised of the program's availability. Early indications show a good response from CSP customers.

Child protectionAs a result of the COAG-endorsed National Framework for Protecting Australia's Children 2009-2020, states' child protection agencies can now request certain information from CSP if there are concerns about a child's safety.

Information productsCSP released two new support products for customers affected by separation or divorce. My family is separating—What now? is an online tool containing pathways through the family law system. It's not about the money. It's about the kids, is an information DVD and online video aimed at Indigenous separated and separating parents and non-parent carers.

New technologies and initiatives to better support services to customersNew telephony systems have been piloted to deliver greater flexibility for customers and reduce customer queue wait time.

Automated mail handling solutions are being introduced to streamline management of customer correspondence and responses to customer enquiries.

MAIN RESULTSTable 2—Performance highlights—Child Support Program

Key performance indicators Targets Performance

2008-09

Performance

2009-10

Quality

Increased customer satisfaction with CSP's service

Greater than 70%

72.7% 74.9%

Cost

Cost per case Estimate: $585

$564 $585

Cost per dollar transferred Estimate: 16 cents

16.2 cents 16.2 cents

Effectiveness—adequacy

Total amount of child support transferred between parents

Estimate $2.8 billion

$2.84 billion $2.98 billion

Effectiveness—independence

Child support CSP Collect collection rate Estimate: 91.5%

91.5% 91.9%

Percentage of Private Collect cases to total active cases (CSP and Private Collect cases)

Estimate 52.0%

52.0% 53.8%

These figures in this section are derived for performance reporting and differ from the disclosures in the financial statements. They include debts that have been written off, but exclude overpayments and child support liabilities raised but not yet due. There are also minor differences related to the timing of the separate data extracts.

Additionally, international debt for performance reporting purposes differs from the disclosures in the financial statements as it includes collection by overseas governments for custodial parents residing in Australia. Price is no longer recorded as CSP is now fully integrated into the department.

Analysis/trendsOverall CSP's performance for 2009-10 saw increases in the amount of child support transferred between parents and collection rate for registered collect cases, and an increase in the percentage of Private Collect cases. Customer satisfaction improved across the year reflecting improvements in CSP key services areas.

IMPROVED COLLECTIONIn 2009-10 the department improved child support collection through:

child support transfers

compliance and enforcement

income reconciliation.

Child support transfersSeparated parents who register with the CSP can elect to transfer child support privately (Private Collect), or ask CSP to transfer the payments (CSP Collect).

In 2009-10 CSP worked with separated parents to transfer $2.98 billion to financially support more than 1.19 million children. This compared to $2.84 billion transferred in 2008-09.

Over the life of the Child Support Scheme since 1988—taking into account both CSP Collect and Private Collect—$32.2 billion (or 96.5 per cent of all liabilities raised) has been credited. In 2009-10, 98.2 per cent of all domestic liabilities were credited. This included both CSP Collect and Private Collect liabilities.

There are now 839 925 total cases, an increase of 10 907, or 1.3 per cent compared to 2008-09. The number of ended with arrears cases is 62 508 or 7.4 per cent of CSP's total caseload.

Private collectionCSP encourages and supports parents to independently manage their child support responsibilities through private collection (Private Collect) arrangements. Research shows this method gives the most flexibility to parents who are able to cooperate on parental decisions.

The number of parents using Private Collect arrangements increased to 53.76 per cent during 2009-10. In 2008-09 it was 53.2 per cent of cases; in 2007-08 it was 52.1 per cent.

CSP collectionParents can ask the CSP to collect their child support (CSP Collect). A total of 353 005 or 46.2 per cent of active child support cases have registered for CSP Collect. Figure 7 shows the increases in total liabilities raised and amount collected by CSP.

Active paying parents without a child support debtThe number and proportion of active paying parents without a child support debt is steadily increasing compared to the previous financial year. Over 72.7 per cent of all paying parents had no debt at end June 2010 compared to 71.9 per cent at end June 2009.

Debt collectionAt 30 June 2010 outstanding domestic and international child support payments totalled $1169.84 million. Domestic debt totalled $868.93 million and international debt totalled $300.91 million.

This compares with the 30 June 2009 total debt of $1088.74 million, $825.32 million in domestic debt, and $263.42 million in international debt.

Figure 7—Increases in total liabilities raised and amount collected using CSP Collect

Reasons for the increase include:

greater focus on the accuracy of assessments arising from increased targeting of cases with non-taxable incomes

an increase in the number of tax returns lodged by CSP customers resulting in increased child support liabilities for previous child support periods

continuing increase in international cases and level of debt owing where one parent lives overseas.

The CSP is implementing a collection strategy to address the rise in debt. It includes dedicated early intervention teams, targeted case selection and ensuring that existing collection-related business processes are as effective as possible.

CSP is continuing to adopt strategies to address the growth in international debt. CSP's international obligations involve the receipt of overseas liabilities and debt which are often significant amounts.

In 2009-10 CSP provided online access to international child support information, issued new procedural instructions and revised its business processes.

Memorandums of understandingThe CSP and the Australian Taxation Office (ATO) have signed a Memorandum of Understanding (MoU) in relation to the joint Lodgement Enforcement Program effective from 1 July 2010. The program's objective is more accurate assessments and debt collection opportunities for child support customers. CSP and the ATO will collaborate to enforce the lodgment of outstanding income tax returns.

The MoU will:

define roles, responsibilities and expectations of the customer (the CSP) and the service provider (the ATO)

define the indicators that measure performance by both parties

ensure there is a mechanism for quick and effective resolution of risks, competing priorities and conflicts

ensure that cooperation between CSP and the ATO continues.

Data matchingCSP and the Australian Securities Investment Commission (ASIC) reached the final stages of negotiation concerning the MASCOT Data Access Agreement. The MASCOT system contains an ASIC stand-alone database which replicates a number of its information registers, as well as some additional information.

Australian Government agencies will now have direct access to certain ASIC registers rather than via mainframe databases.

CSP anticipates that access to the MASCOT system will considerably enhance its collection and enforcement powers.

Compliance and enforcementIn 2009-10 the department continued to expand and improve its compliance programs to build greater integrity into the CSP and to increase public confidence, with an increased focus on early intervention and debt collection.

In July 2006 the Budget measure, Child Support Reforms—Improving Compliance began. Its aim was to collect $339.3 million between July 2006 and June 2010.

From 1 July 2009 the compliance and enforcement activities associated with this measure were incorporated into the business- as-usual activities of the CSP. At 30 June 2010 the activities associated with the program were ahead of the collection target with more than 637 000 customers subject to enforcement activities and $356.4 million in outstanding payments collected.

In 2009-10 to minimise debt, CSP established dedicated proactive intervention teams. Their job is to work with customers who either miss their first payment after registration or who,Table 3—Child support compliance and enforcement actions 2007-08 to 2009-10

while previously compliant, miss a payment. This early intervention is to help potentially non-compliant customers get on or stay on track with their payments and obligations and thereby prevent growth in debt.

The interception of income tax refunds for debt collection purposes also resulted in an additional $103.8 million in outstanding child support liabilities being collected in 2009-10. Results of compliance and enforcement activity are set out in Table 3.

The results and detailed descriptions of child support compliance and enforcement actions conducted in 2009-10 are set out in Table 4.

Table 3—Child support compliance and enforcement actions 2007–08 to 2009–10

Number of actions Child support collected/corrected ($m)

2007-08

2008-09

2009-10

2007-08 2008-09 2009-10

Tax lodgment enforcement1

125095 126281 75 398 19.7 30.5 16.3

Tax Refund Intercept Payment

87 819 114 942

100953 76.0 114.9 103.8

Intensive debt collection 26 385 19 787 23 155 28.4 49.4 47.6

Capacity to pay assessments2

5886 4135 2330 12.5 18.7 19.9

Departure prohibition orders

924 427 183 5.7 5.0 3.4

Litigation 631 559 372 15.3 12.2 9.8

1. Collected figure only.

2. Before 1 July 2009 capacity to pay assessments were referred to as serious avoiders-income minimisers.

Table 4—Results of child support compliance and enforcement activities, 2009-10

Activity Description Results

Enforcement of tax return lodgment

The Lodgement Enforcement project involves the department referring customers to the ATO for investigation of non-lodgment of tax returns and/or attempts to avoid obligations by under-declaring true incomes. From 1 July 2009 the project was integrated into the CSP's business as usual activities.

The department referred 75 398 customers to the ATO, resulting in 78 693 tax returns being lodged. This compares with the referral of 126 281 non-lodgers in 2008-09, which resulted in 153 044 returns being lodged.

The decrease in returns lodged in 2009-10 resulted from an expected decrease in opportunities available following the success of the program over the previous three years.

Interception of tax refunds

An automatic tax refund intercept payment (TRIP) intercepts a customer's tax refund to pay the balance of a child support debt if other collection avenues have been unsuccessful.

TRIP activity collected $103.8 million (compared to $114.9 million in 2008-09).

Intensive debt collection

The Intensive Debt Collection project involved intensively managing customers who have outstanding payments that have proven difficult to collect. From 1 July 2009 the project was integrated into CSP's business-as-usual activities.

Intensive debt collection activity collected $47.6 million (compared to $49.4 million in 2008-09).

Investigation of income minimisation

The Income Minimiser project investigated complex financial arrangements possibly designed to avoid paying the right amount of child support. From 1 July 2009 the project was integrated into CSP's business as usual capacity to pay assessment activities.

Capacity to pay assessments identified $10.9 million in increased child support assessments and collected $19.9 million (compared to $18.7 million in 2008-09).

Prohibition of departure from Australia

The Departure Prohibition Orders project targeted customers with substantial debts who had not made satisfactory arrangements to clear their debt. These customers are prevented from leaving Australia until they make satisfactory arrangements to pay their debt. From 1 July 2009 the project was integrated into CSP's business-as-usual activities.

Departure prohibition orders collected $3.4 million (compared to $5 million in 2008-09).

Activity Description Results

Litigation The department targets parents who repeatedly avoid paying their child support after the department has attempted other enforcement options. Where an asset or income stream is identified as belonging to the parent, the department will take the parent to court to obtain an order for the payment of outstanding child support debt. From 1 July 2009 the project was integrated into CSP's business-as-usual activities.

The Litigation project reduced debt by $9.8 million (compared to $12.2 million in 2008-09).

Optical surveillance

During 2009-10 the department integrated the use of optical surveillance into its enforcement program. Its judicious use in appropriate cases enables the department to address serious and complex cases of avoidance or income minimisation.

The department considered the use of optical surveillance in 253 cases and conducted optical surveillance of 28 customers.

Early intervention

In August 2009 the department implemented an early intervention approach focusing on customers who have recently defaulted on their payment or on their payment arrangement. The aim of this approach is to assist customers who have missed a payment to get back on track. Through this approach, the department seeks to minimise the growth of child support debt associated with these customers while reinforcing compliant behaviour.

Since August 2009 the early

intervention approach has:

made contact with over 43 000 paying parents to discuss their child support debt

negotiated over 29 000 payment arrangements

set up employer deductions for future child support payments for over 6400 customers

made arrangements for over 6700 customers to have additional amounts deducted from their employer to address their debt

secured commitments from customers to pay $14.70 million in child support debt

credited over $2.08 million in payments paid directly by the paying parent to the receiving parent.

Specialised Investigation Unit

During 2009-10 the department continued to develop an enhanced fraud investigation capability by focusing the work of the Specialised Investigation Unit on detecting and investigating allegations of fraud on other criminal

The department completed 113 investigations of fraud allegations and referred seven cases to the Commonwealth Director of Public Prosecutions.

Activity Description Results

activities associated with the Child Support Scheme.

Income reconciliationA small proportion of customers with child support assessments provide an estimate of their income for the current year, rather than using their actual taxable income from the previous year. Customers are able to estimate their income for child support purposes when there has been a significant variation to their financial circumstances.

At the end of the child support period CSP undertakes a reconciliation to ensure that the estimated income is aligned with the actual income earned. If additional child support is incurred because of that reconciliation, a suitable payment arrangement is negotiated with the paying parent.

The process of reconciliation is complex, because child support periods go across 15 month periods, not financial years. Reconciliation of estimated income with actual income therefore involves manually investigating information from a number of sources such as tax returns and group certificates.

The slowness of the process has resulted in a backlog of outstanding reconciliations. As part of the 2009-10 Budget the government provided CSP with additional resources to complete the outstanding reconciliations over the next two years. In 2009-10 CSP reconciled 190 163 estimates, and remains on track to complete all outstanding estimate reconciliations by 30 June 2011.

CUSTOMER SERVICE EXCELLENCEDuring 2009-10 the CSP met the diverse needs of its 1.3 million child support customers through over 3000 service delivery staff situated in 14 metropolitan and regional offices, and in 27 regional service centres.

Following the introduction of the new Child Support Scheme on 1 July 2008— which saw an unprecedented level of contact with all child support customers during 2008-09—the CSP has seen an improvement in customer satisfaction and complaint levels in 2009-10.

The move to deliver services from national business lines, simplification of child support business processes, consistent strong performance in timeliness of answering telephone calls and a focus on the improvement of the quality of administrative decision making have contributed to this improvement.

Communication channelsThe CSP offers customers a range of service options including face-to-face, telephone and online services. The telephone service is the most popular customer channel and during 2009-10 CSP received 3.0 million calls and made 3.2 million outbound calls. In 2009-10 CSP met its service standard answering 82.1 per cent of telephone calls within 30 seconds (up significantly from 73 per cent in 2008-09). The implementation of a national approach for telephone call management was a key factor in improvements in customer satisfaction levels.

Child support websiteThe CSP website was the largest inbound channel to the program for customers, averaging 279 712 visits per month in 2009-10, compared to an average of just over 248 91 5 calls per month to

the program's general inquiry phone number. The average visits per month to the website for 2008-09 was 257 230.

CSAonlineCSP provides a convenient online service option—www.csaonline.gov.au—to customers. Approximately 105 000 customers and 3400 employers conducted close to 200 000 transactions in 2009-10. On average 1400 customers per month have enrolled for online services in 2009-10.

Customers can access their information at a time convenient to them, view and print most correspondence, send general, technical and complaint enquiries via secure method and attach files to their enquiries. CSP can also initiate contact with customers and customers can receive responses to their enquiries electronically. This efficient mode of customer contact can improve customers' ability to meet their child support obligations through more regular disbursement of payments for children.

Employers and financial institutions can also deal with CSP online—500 employers signed up in 2009-10. CSP can now also exchange information electronically with financial institutions and large employers. The average response times for information requests within 14 days have increased from 50 per cent to 80 per cent, reducing the burden of compliance on these organisations.

Customer satisfactionCustomer satisfaction is measured through the CSP's telephone point-of-service customer survey Customers Having a Say (CHAS).

CHAS is designed to measure customer satisfaction against CSP's customer service principles which then contribute to an overall satisfaction rating for CSP and an overall satisfaction rating for service provided by the customer service officer.

During 2009-10 CSP customer satisfaction results tracked consistently above the target of 70 per cent every month peaking at the end of June at 74.9 per cent. Customer dissatisfaction with the overall service provided by CSP decreased in the second half of the year and at June 2010 was 18.8 per cent.

The level of customers who were neither satisfied nor dissatisfied ended the year at 6.3 per cent.

Customer service officers performed consistently well throughout the financial year. Customer satisfaction with the service provided by customer service officers was rated at 84 per cent at June 2010—see Figure 9.

Figure 8—Satisfaction with service provided by CSP overall

Figure 9—Satisfaction with service provided by customer service officers

ComplaintsIn 2009-10 the number of escalated complaints received was significantly less than 2008-09 levels. The key strategies employed to achieve this reduction were:

earlier involvement of front-line supervisors in the management of complaints

the expansion of access to call recordings for team leaders from February 2010 for managing complaints when they are first raised with CSP—this led to earlier and more accurate complaint resolution and resulted in fewer escalations to CSP's complaint service

effective complaints management training provided to staff in April-May 2010.

There has also been an ongoing process of communication with staff via a number of channels, to increase understanding of the impact of complaints and to reinforce the need for complaints to be effectively managed and resolved. A particular focus has been on reducing complaints relating to staff behaviour and this has seen a reduction in these complaints of just fewer than 50 per cent over the course of 2009-10.

ObjectionsCSP has a requirement to finalise all objections received within 60 days for domestic customers and 120 days for international customers. For 2009-10 CSP achieved 93.8 per cent in 60 days for domestic customers and 99.5 per cent in 120 days for international customers. This was an improvement on 2008-09 when CSP achieved 82.1 per cent in 60 days for domestic customers and 97.8 per cent in 120 days for international customers.

Key contributors to this performance were improved national workload management practices across objections teams along with an increased focus on quality and training for staff.

The total number of objections finalised for 2009-10 was 17 688 compared to 19 287 in 09 and 16 671 in 2007-08. Objections to change of assessment decisions also reduced from 5311 in 2008-09 to 4601 in 2009-10.

Social Security Appeals TribunalSince January 2007 CSP customers have been able to seek independent review of child support decisions in the Social Security Appeals Tribunal (SSAT). Before this, court was the primary review option available for customers who disagreed with an objection decision. In 10 there were 2592 appeals compared to 2895 in 2008-09.

Table 5—Service delivery indicators 2007-08 to 2009-10

2007-08 2008-09 2009-10

Change of assessment applications finalised 21 344 22 496 23 313

Objections finalised 16 671 19 287 17 688

Complaints 10 347 12 874 9553

SSAT applications 2174 2895 2592

Figure 10—CSP service delivery indicators 2007–08 to 2009–10

Customer service improvements

Simplifying change of assessment for customersCSP has redesigned the change of assessment administrative process to improve customer satisfaction through a more efficient and effective service offer.

In 2009-10 CSP began a trial of the redesigned process which features earlier and more frequent customer contact with significantly shorter timeframes for finalising change of assessment applications and issuing written decisions. Early results look promising, with approximately 67 per cent of applications being finalised within 35 days and 88 per cent within 50 days. Subject to a favourable evaluation of the trial and detailed costings, CSP hopes to introduce the new process during 2010-11.

CSP is also revising the customer application and response forms based on customer, stakeholder and staff feedback which has shown that forms need to be shorter and simpler. CSP has tested the revised forms with customers and expects to introduce them later in 2010.

CSP is also developing quality assurance measures for the change of assessment process including internal peer review of decisions, sample checking/quality assurance of decisions, revising and establishing improved standards for written decisions and investing in improved training and training materials.

Helping new child support customers in new waysIn March 2010 CSP began a trial of a new registration process for newly separated parents and new staff support tools to guide this process. The process aims to provide customers with a relevant, individually-tailored upfront service with information, available services and appropriate referrals which results in a sustainable child support payment arrangement.

The trial used a parent referral guide which provides a consistent approach for all staff in guiding the customers through what is often their first contact with CSP and a very difficult time. The guide prompts staff to provide broader service options including internet-based applications and use of online publications and self-help tools by new customers.

Over half (54 per cent) of customers using the new registration process have taken up the online support and tools. This form of service delivery allows customers the time and flexibility to inform themselves, explore their options and complete an application for child support at their convenience.

More than 78 per cent of customers chose private collection at registration, with 18 per cent choosing to pay child support via employer deductions. An evaluation of the trial is planned for early 2010-11.

Child protectionImproved information sharing is a key action under the National Framework for Protecting Australia's Children 2009-2020, which was endorsed by the Council of Australian Governments in April 2009. The Information Sharing Protocol between the Commonwealth and Child Protection Agencies is an initiative of the framework. CSP appendix to the protocol was agreed at the Community and Disability Services Ministers' Advisory Council meeting held on 2-3 March 2010.

Child protection agencies can request information from CSP if the agency has concerns about the safety of a child of a separated parent, for example, when trying to locate a parent because of fears for the safety of children in that parent's care.

The protocol has led to improvements in the way CSP shares information with child protection agencies. CSP has developed a system where requests can be submitted by agencies through a secure online messaging system (CSAonline), and are responded to via the same channel. The new process ensures requests for information are processed and responded to quickly to meet the requirements of agencies.

The Child Support Agency is the third agency to be included in the protocol, following the lead of Centrelink and Medicare Australia last year.

Quality assurance frameworkIn 2009-10 and in response to the Delivering Quality Outcomes Review, CSP began work on a new quality assurance framework to further enhance the quality of service provided to customers. The framework will focus on providing support to front-line staff through proactive quality assurance on decision making and reactive support through the development of a clear issues escalation and resolution process. Work began in 2009-10 for implementation in 2010-11.

A new function within CSP was established— Quality Analysis—to implement the framework and to work with CSP business areas and staff to gather and analyse data and feedback to identify potential systemic issues or opportunities for improvement. These areas will then implement a prioritised work plan to address identified systemic issues and viable business improvement opportunities.

Table 6—Child support service connections, 2009-10

Service Purpose Achievements

Parent Support Telephone Service

To provide a professional and confidential telephone counselling service for customers who are at risk of harm to themselves or others or in emotional distress.

CSP referred 570 customers to the service (up from 408 in 2008-09). CSP has worked closely with the provider (Parentline ACT) to build their capacity in the areas of family violence and self-harm. Increased staff confidence in the service has resulted in more child support customers being referred to the service and thereby connecting to further services to meet their broader family support needs.

Family Relationship Advice Line (FRAL)

To assess and refer parents to the support they need to help them to deal with separation.

CSP referred 2745 parents to FRAL in 2009-10. CSP is currently implementing strategies to increase the referral rate to FRAL via staff and customer education.

Centrelink referrals

To deliver government payments and services to Australians.

CSP referred 123 173 parents to Centrelink in 2009-10 (up from 112 331 in 2008-09) to connect them to information on Family Tax Benefits and in some cases to seek exemptions from collecting child support where family violence was an issue.

Other local government/ non-government and community organisation referrals

To build relationships with key local stakeholders to provide information and services to separated and separating families.

Connecting Locally plans were developed and implemented to build relationships with community stakeholders across the country.

Financial counselling services

To work with financial counsellors through their peak body Australian Financial Counselling and Credit Reform Association (AFCCRA) to better connect parents with financial counselling and literacy services.

CSP has worked with AFCCRA to create single points of contact in each state to better connect parents with financial counselling and literacy support. CSP has created a hotline for financial counsellors to call when they are working with a child support customer. Since its inception in December 2009, 173 calls have been dealt with through the hotline.

EFFECTIVE STAKEHOLDER ENGAGEMENTStakeholder engagementCSP takes a collaborative approach to working with key stakeholders in supporting separated families. CSP engages with stakeholders such as advocacy groups, legal organisations, employers, academics, government, community and private industry through a number of forums to ensure that issues are identified early and stakeholder input is considered for product and service design.

Key stakeholder engagement initiatives during 2009-10 included a number of consultation forums for the co-design of new child support services and products. Stakeholders provided input into projects such as the change of assessment and new customers, process reviews and the development of a support tool for young children.

The national and state stakeholder engagement groups continued to meet quarterly with representatives from advocacy groups, the legal sector, community services, academia and other government agencies. They discussed child support related matters such as compliance, administrative decision making, social inclusion and debt reduction strategies.

Members were provided with information about changes to CSP and child support policy to cascade to their constituents. Key recommendations from meetings were submitted to the Minister for Human Services and the Minister for Families, Housing, Community Services and Indigenous Affairs for consideration.

These stakeholder groups also provided input into the Delivering Quality Outcomes Review.

Stakeholder engagement training was delivered to staff across the country to help them prepare and implement effective stakeholder engagement activities that benefit all parties involved. External stakeholders were invited to present to training sessions to provide their perspective on what CSP could do to better engage with their organisations.

CSP also kept key stakeholders updated with child support related matters through monthly email bulletins and mailouts.

CSP monitors levels of stakeholder satisfaction through an annual survey. The 2009-10 survey indicated that 68.5 per cent of respondents believed that CSP was doing a 'good to very good' job at engaging stakeholders (down from 81 per cent in 2008-09), and 78.2 per cent believed that their engagement with CSP assisted their organisation to support separated and separating families (slightly down from 81 per cent in 2008-09).

Key areas for improvement highlighted in the survey results concerned acting on feedback and addressing issues raised by stakeholders (remaining fairly steady at 49.1 per cent) and providing information that is easy to understand (down from 73 per cent in 2008-09 to 52.7 per cent in 2009-10).

CSP stakeholder engagement efforts will continue to be reviewed and improved to ensure that engagement activities are beneficial to key stakeholders and child support customers. CSP will also be proactively taking a co-design approach when designing new services and products so that stakeholders' expertise can contribute to better service delivery to separated families.

Community partnershipsCSP maintains a number of partnerships with community and private organisations to tackle shared priorities and take collective action that will have a positive effect on mutual customers.

In 2009-10 CSP worked closely with existing partner's, beyondblue: the national depression initiative and BoysTown (Kids Helpline) and established a new partnership with the Brotherhood of St Laurence. These partnerships assist CSP to let customers know about support services and products that improve service delivery—to provide better outcomes for separating and separated families and contribute to increased compliance.

Key partnership outcomes in 2009-10 include:

joint media opportunities promoting key support services and products

expert input by partners to new CSP products, for example It's not about the money—It's about the kids: developed by CSP with valued input from BoysTown

CSP input into product development by partners, for example Women and Separation: a national depression initiative by beyondblue

information for customers about support services and products via CSP newsletters or direct mail, for example promotion of the Saver Plus financial literacy program administered by the Brotherhood of St Laurence.

Communicating with customers and communityThe department's child support public education and communication activities help ensure that customers understand their child support responsibilities and the services and support available to assist them. The department also strives to ensure that customers are aware of enforcement programs and the consequences of non-compliance to encourage them to meet their responsibilities in full and on time and to boost confidence in the scheme.

Communication and educationTo support service delivery reforms, the communication functions across the Human Services portfolio were integrated on 1 March 2010.

A high priority is placed on effective communication with customers, potential customers, providers, and the Australian community. Effective communication provides Australians with the information they need to make informed choices about Human Services payments and services, and to understand their rights and obligations when they receive these.

In 2009-10, CSP continued to provide customers and the community with information about its payments and services through a range of accessible channels, including media, print, advertising and, increasingly, online.

See page 32 for further information about CSP communication and education activities.

Excellence in service delivery capability

Delivering Quality Outcomes ReviewIn September 2009 the Secretary of the Department of Human Services commissioned an independent review of CSP. The purpose was to look at the effectiveness and efficiency of decision making and quality assurance processes, and to obtain assurance that they were appropriate and represented better practice in the Australian Government context.

Conducted by David Richmond, AO between 7 September and 30 November 2009 the review:

reviewed over 5000 documents and reports pertaining to the structure, operations and performance of CSP

sent surveys to over 50 stakeholder groups, of which 26 were subsequently interviewed

met with over 430 CSP front-line staff

received 133 written submissions from customers, non-government organisations, stakeholder groups and staff.

The report made 40 priority recommendations and 75 supporting recommendations about:

organisational strategy, structure and governance

customer service improvements

collection and debt management strategies

technology and business support tools

international services

stakeholder and government relations

policy feedback and research.

All 115 recommendations were accepted by CSP and the department, and a work program was established to implement them.

As a result of the review's recommendations, since January 2010 CSP has:

implemented a new organisational structure and governance arrangements

implemented a new service delivery model, including national business lines delivering more consistent, streamlined services to customers

designed and implemented a new customer summary screen within CSP's mainframe customer database to make it easier for staff to help customers

activated a customer research mailbox to capture customer feedback on child support policy.

CSP has also begun to implement improvements for front-line customer service staff. These include:

the introduction of team-based customer service rostering

the introduction of a new streamlined inquiry window in the customer database

the alignment of the customer database and workflows with the new organisational structure

the resolution of a backlog of customer record errors.

In addition CSP has commenced work on key infrastructure elements including:

the redevelopment of its staff training and development strategy

a review of its compliance strategy to incorporate a back to basics approach

the development of a clearly articulated quality framework

a review and realignment of the organisation's business, channel and ICT strategies with core business requirements and the service delivery reform agenda.

Detailed implementation plans have been finalised to implement all remaining recommendations, with the majority expected to be implemented by June 2011.

Specific deliverables have been aligned with the broader service delivery reform agenda, and will result in significant improvements to the quality and consistency of CSP services to customers.

Chapter 4: Achievements—CRS AustraliaDelivery of vocational rehabilitation services to eligible people who have a disability, injury or health condition.

Case Study—CRS Australia and Woolworths team upDebbie Huxley, Store Manager, Woolworths, Katherine, Northern Territory

‘I’m very lucky because I’ve got five great new staff. You see their faces and it’s obvious how happy they are.’

Debbie Huxley, Woolworths' Katherine store manager, can’t say enough about the training program that gave her five highly motivated staff, with the potential for more.

Woolworths Katherine is located 350 kilometres inland from Darwin and currently employs 165 people.

The store is always looking for committed employees, and asked CRS Australia to help them find the right staff. CRS Australia had a number of Indigenous job seekers looking to work in the retail industry, but they needed some training to reach their goal.

Together, Woolworths Katherine, CRS Australia and local training company Starfish Services, developed and implemented a tailored retail training program adapted to Indigenous job seekers, some with disabilities.

The program included job seekers undertaking culturally appropriate pre-employment training, a Woolworths’ Certificate II in Retail Operations, followed by two weeks of on-the-job training.

The program was a great success.

Woolworths Katherine employed five of the graduates (three Indigenous and two non-Indigenous people) who have a range of medical conditions.

‘They’re excited to be here so we’ve already won that battle,’ said Debbie.

Woolworths Training Specialist, James Childs, says: ‘It’s been a very beneficial program. We have five new employees who are bringing a sense of pride to the business. I know that Debbie and the management team are looking forward to the next program’.

Through CRS Australia, the department delivers under Outcome 1 (2009-10 Human Services Portfolio Budget Statements) by delivering expert assessment, injury management and employment services to assist people who have a disability or injury to get and keep a job. All services and funding provided by CRS Australia are demand driven. The following sections detail CRS Australia's performance in delivering under Outcome 1 in 2009-10.

PERFORMANCE HIGHLIGHTS—CRS AUSTRALIA Assisted over 57 000 job seekers in 2009-10, slightly less than 2008-09.

More than 11 800 Department of Education, Employment and Workplace Relations (DEEWR) funded job seekers were assisted into work, up from 10 500 in 2008-09.

CRS Australia maintained over 35 per cent of its service delivery offices in rural and remote Australia.

17 offices were relocated to improve access and services for job seekers and provide operational efficiencies.

Revenues from injury prevention and return to work programs continued to grow.

CRS Australia was accredited as an approved provider of workplace rehabilitation services under the Heads of Workers Compensation nationally consistent framework for workplace rehabilitation providers.

CRS Australia implemented a successful SAP version upgrade to ECC6.

The employee opinion survey conducted in 2010 indicated that employee engagement has improved significantly from 2008 with key improvements achieved in almost all areas.

MAIN RESULTSTable 7—Performance highlights—CRS Australia

Key performance indicators Targets Performance

Certification against Disability Service Standards CRS Australia remains certified

Fully certified

At or above the market average for job seekers that remain in employment for 13 weeks

70% 70%

Analysis/trendsIn the Australian Government's disability employment program, all funded service providers must be certified as compliant with the Commonwealth Disability Services Standards (DSS).

CRS Australia successfully completed its annual DSS surveillance audit in November 2009. No non-conformities were found. For a list of the 12 standards covered in this audit see Other audits, page 78.

CRS Australia achieved a conversion rate from job placement to 13-week employment outcome of 70 per cent, slightly above market average. This demonstrates its commitment to quality vocational rehabilitation, appropriate job placement and effective post-placement support for job seekers and their employers.

SERVICES PROVIDED TO OTHER AGENCIES AND ORGANISATIONSCRS Australia provided an important range of expert services to all Australian, state, territory and local government jurisdictions and other private organisations. Major services included:

Vocational Rehabilitation Service (VRS) and Disability Employment Service (DES) for DEEWR

Job Capacity Assessments (JCA) and Job Capacity Account Services (JCAc) for DEEWR

wage assessments at Australian Disability Enterprises for the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA)

rehabilitation services for serving members of the Australian Defence Force

rehabilitation services for personnel and veterans covered by Department of veterans' Affairs schemes

workplace rehabilitation services for employees under state, territory and Commonwealth workers compensation jurisdictions

injury prevention and occupational health and safety interventions and training for a range of public and private sector organisations.

PROGRAM KEY RESULT AREASCRS Australia's Strategic Plan Forward to 2012 was released to staff and key stakeholders in December 2009. The plan identifies the opportunities, challenges, risks and key result areas for

CRS Australia. It is supported by annual business plans across national, state and territory functions and ensures CRS Australia delivers on its four key result areas, as outlined below in this chapter.

The Strategic Plan Forward to 2012 can be accessed through the publications section of the CRS Australia website at www.crsaustralia.gov.au.

Maximise workforce participationIn 2009-10 DEEWR was the principal purchaser of CRS Australia's services. CRS Australia received approximately 80 per cent of its revenue through a memorandum of understanding (MoU) with DEEWR, for the provision of vRS and DES. On 1 March 2010 CRS Australia transitioned to the new DEEWR DES program. Achievements under these programs are reported in the DEEWR annual report.

Through government-funded vRS and DES programs, CRS Australia assisted over 57 000 job seekers in 2009-10, including more than 26 000 new job seekers and almost 31 000 who were on programs at the start of the financial year. This compares to nearly 59 000 in 2008-09. Job seeker numbers can vary depending on referral volume and market demand, thus the difference in the numbers assisted from year to year.

Figure 11—CRS Australia commencements by disability type, 2009–10

To maximise employment outcomes, programs were intensive and individualised, focusing on the abilities and vocational goals of job seekers, while considering the local labour market. CRS Australia programs improve social inclusion by increasing a person's independence and capability to participate in work and their community.

All job seekers assisted in 2009-10 had a disability, injury or health condition. An estimated 29 per cent of job seekers had a mental health condition as the primary barrier to entering the workforce.

In 2009-10 more than 11 800 job seekers were successfully placed in employment, an increase of 1300 additional job seekers placed in work compared to 2008-09.

CRS Australia intensified its focus on learning and development to build staff skills and increase its ability to work with job seekers to achieve sustainable job outcomes. It also continued to enhance employer relationships and partnerships. National arrangements were established for training and/or employment placement with employers and training providers, including RossJuliaRoss, Telstra and the Australian Retailers Association. These relationships helped strengthen the link between job match and local labour market needs.

During 2009-10 CRS Australia provided JCA and JCAc services for DEEWR. The JCA is an assessment of the job seeker's work capacity and direct referral to the most appropriate intervention that will assist them towards work. CRS Australia's internal quality assurance system ensured the quality of the assessments provided met DEEWR requirements and identified areas for continuous improvement. In 2009-10 over 42 200 JCA assessments were completed, compared with over 40 300 in 2008-09.

The JCAc provides funding for short-term interventions to help eligible job seekers become ready to look for work. CRS Australia offered individual or group services in a cross section of approved categories for JCAc services, including:

pain management

work conditioning

other physical support programs

social case work and support

counselling programs

other social support programs

cognitive behaviour therapy

behaviour management and modification

other psychosocial support programs.

Over 2000 JCAc interventions were completed in 2009-10. CRS Australia actively promoted its JCAc services, refining and developing them to suit local requirements.

CRS Australia also maximised workforce participation outcomes for employers, job seekers and the community by providing services to other Australian Government and state and territory agencies, occupational health and safety authorities, insurance companies and private businesses.

Build leadership, capability and safe workplacesAn employee opinion survey conducted in 2010 by CRS Australia achieved a 69 per cent response rate. Despite tough external factors, survey results made excellent progress since 2008 with almost all categories improving by a moderate to significant degree. Employee engagement has improved significantly from 2008 with key improvements achieved in almost all areas including organisational change, leadership, communication, goals and objectives, job satisfaction and employee development. Managers worked with local teams to discuss results and strategies for actioning and improving identified areas.

During 2009-10 CRS Australia continued to strengthen leadership capability, and succession and workforce planning. Leadership and succession capability was strengthened with the formalisation of regional leadership teams. The change in structure has given regional managers more flexibility to engage and build local relationships within their communities, maximising outcomes for job seekers.

Significant investment in learning and development ensured CRS Australia built organisational capability and assisted CRS Australia to successfully transition to the new DES program, meet purchaser needs, and continue to implement the necessary changes to business practices.

Two vocational rehabilitation professionals were sponsored to participate in a one-year correspondence post graduate course through Boston University, in Massachusetts, United States to enhance their skills and knowledge in psychiatric vocational rehabilitation. After completing the course the participants will engage in knowledge sharing across the organisation through formal mentoring, training and developing best practice guidelines.

CRS Australia adjusted its service delivery footprint in 2009-10 in response to changing demand in communities, furthering its aim of enabling people to access vocational rehabilitation and other services close to where they live.

A total of 17 offices were relocated within the communities they serve to improve access and service quality for job seekers and the working environment for staff, including the consolidation of some offices into new larger sites in Brisbane's western and eastern suburbs.

CRS Australia received positive local newspaper media coverage of most office openings, promoting the new improved facilities for job seekers and the opportunities for employers to access a pool of job ready applicants.

To ensure management best practice in providing safe workplaces, CRS Australia used early intervention injury prevention measures such as referrals for short-term counselling, physiotherapy and independent medical assessments to help staff remain at or return to work. CRS Australia

practices were found to be consistent with Comcare's guide for employers, Prevention and management of customer aggression.

As part of CRS Australia's risk management and corporate governance arrangements, an in-depth review of compliance with legislative frameworks was begun. The review is scheduled to be completed in 2010-11.

CRS Australia promotes and celebrates team and individual excellence. Eighteen staff and five teams received national awards, including the Minister for Human Services Awards for Exemplary Service to Customers and Stakeholders, the Australia Day Medallion for Achievement and the CRS Australia General Manager Awards. These awards recognise outstanding performance that is clearly above and beyond what is normally expected of a team or individual.

For more information on CRS Australia's performance against building leadership, capability and safe workplaces see page 90 and Appendix A—Occupational Health and Safety, pages 178-180.

Deliver effective, competitive and innovative servicesSignificant activity was undertaken in 2009-10 to continue to improve and refine the effectiveness in achieving employment outcomes for job seekers. Of particular note were activities surrounding employer engagement, improving business processes, quality assurance, and evaluation and feedback.

During 2009-10 CRS Australia began a project to further streamline business processes and improve efficiencies for direct service delivery. This resulted in the removal, or streamlining, of some work practices and greater consistency in processes used in offices across the country.

National support teams focused on identifying the characteristics of high performing teams and developing methods for sharing this experience across the organisation. Targeted support was provided to teams to refine business and service delivery processes to improve outcomes for job seekers.

The CRS Australia intranet continued to have the principles of simplicity and usability applied when updating and developing new information, and successfully reducing forms in both size and quantity.

QualityCRS Australia's quality framework QUEST for quality continues to evolve to ensure compliance with the Disability Services Standards and key DEEWR requirements through team self-assessment and external audit. Team self-assessment tools have been updated to ensure they reflect the new DEEWR contract requirements.

The QUEST for JCA quality program was rolled out in July 2009. It is an internal quality assurance process that ensures JCA assessments meet DEEWR requirements. It identifies areas in need of improvement or staff development. QUEST for JCA mirrors the DEEWR external quality audit system.

CRS Australia also began implementing a quality framework for workplace rehabilitation services provided to the workers compensation market. This framework ensures CRS Australia is well placed to comply with the new Heads of Workers Compensation Authority's Approval Framework for Workplace Rehabilitation Providers which came into effect on 1 July 2010.

Customer satisfactionCRS Australia routinely requests informal and formal feedback from job seekers and employers for all its services. In 2009-10, 89 per cent of job seekers were satisfied that their program met their needs.

Compliment and complaint feedback is used to evaluate and improve services and inform business planning. All staff are responsible for integrating job seeker and stakeholder feedback into improving service delivery practice or business processes.

Findings from external research and surveys into satisfaction levels of key stakeholders conducted in 2008-09 were used to inform business planning and design to ensure that CRS Australia continued to improve the services it offers.

A post-implementation review of key internal communications vehicles (Manager News, GM e-bulletin, SD e-bulletin, executive video messages) was undertaken and results indicate that the vehicles generally are delivering relevant and meaningful messages. These results were reflected in positive feedback from staff about leadership and communication via the employee opinion survey.

Competitive servicesCRS Australia continued to perform well relative to the market and overall job placement rates for job seekers continued to improve as a result of innovative improvement strategies designed to increase effectiveness.

Focus placed on appropriate rehabilitation processes, correct job matching, ongoing post placement support and employer engagement has enabled CRS Australia to perform slightly ahead of the market average in achieving 13-week to 26-week employment outcome conversion rates.

In addition to DEEWR revenue, CRS Australia continued to build revenues from occupational rehabilitation, specialist assessments, injury prevention and related services that are complementary to its core capabilities. These other revenue categories gradually increased as a percentage of total revenue, from 19.4 per cent in 2007-08 to 19.7 per cent in 2008-09 and 21.4 per cent in 2009-10.

CRS Australia has attracted new business from Australian Government agencies, including FaHCSIA, Centrelink, Medicare Australia, the Department of Defence, the Department of the Environment, Water, Heritage and the Arts and The Treasury. CRS Australia has further increased WorkCover revenues, particularly in NSW and SA.

CRS Australia's key account management function actively reviews performance against key indicators, seeks feedback from purchasers and takes action to improve service delivery standards. The requirements of each contract were clearly articulated to staff and appropriate training was provided.

In 2009-10 CRS Australia was re-accredited for three years in its home jurisdiction of Comcare, as an approved provider of rehabilitation services under the Heads of Workers Compensation nationally consistent framework for workplace rehabilitation providers.

A comprehensive communications and marketing strategy, to inform job capacity assessor referrals and direct registration sources on CRS Australia's services and promote job capacity account and specialist assessment services, was developed.

InnovationIn May 2010 CRS Australia joined other Human Services portfolio agencies and local community stakeholders in the initial roll out of the Local Connections to Work initiatives in Frankston (Victoria), Campsie (New South Wales), Ipswich (Queensland) and Elizabeth (South Australia). Under this initiative CRS Australia will work with a range of government and community organisations to provide improved links between services for disadvantaged job seekers.

A centralised National Referral Management Team (NRMT) for job capacity account services was established and rolled out to WA, victoria, Tasmania, NSW and the ACT. The team provides a

single contact point for the management of all referrals for job capacity account and specialist assessment services and audits all relevant reports for stakeholder quality control. This service will be extended to Qld and NT later in 2010.

CRS Australia has established a centralised wage verification service to enable service delivery staff to verify the wages and conditions of all job placements. This service has enabled a high compliance with Disability Services Standard 9 and has achieved significant time savings for service delivery staff.

Step Two Designs, an independent company specialising in intranets and content management, announced CRS Australia as the Overall Platinum Award winner at the 2009 Intranet Innovation Awards held in Sydney in November 2009. CRS Australia won the award for its intranet workflow inbox, CRSNet white pages and the manager dashboard.

CRS Australia continued to explore new technologies and systems to better enable services. Major ICT projects for 2009-10 included:

SAP version upgrade from ECC5 to ECC6

an employer database to improve relationship management and job seeker employment outcomes

SAP workflow changes for new financial delegations

staff skills and competency database

an organisation-wide telephony message-on- hold system to provide consistent national messages that educate and inform callers about CRS Australia's services and activities

a major review of telephony inventory and call usage

refresh and replacement of Konica multi-function devices where required

an activity snapshot application to record staff activity for business analysis purposes

automated online flex sheet reconciliation with SAP HR leave data

a new online application to record and enable easy compilation and review of performance achievement system ratings

development of an online recruitment management system which should be fully implemented by 2010-11.

Influence the disability employment and social inclusion agendaCRS Australia continued to strengthen and develop strategic networks to better influence broader policy to improve outcomes for people with a disability. CRS Australia participated in and made presentations at the following forums:

National Employment Services Association Ltd (NESA) National Managers Conference in August 2009

National Comcare Conference in September 2009

Indo Australasian Psychiatry Association Conference in December 2009

Working Communities International Congress in March 2010

Australian Rehabilitation Providers Association National Conference in May 2010

NESA Practitioners Conference in June 2010.

During 2009-10 CRS Australia promoted outstanding and effective practice through its nomination of eight employers for the 2009 Diversity@Work Awards. Employer Scan Conversion Services won in the category of Employment and Inclusion of People with Disability for their efforts in

training and employing people with a disability. This prestigious national awards program seeks to build social and workplace inclusion.

In addition CRS Australia Employer Award functions were held to recognise the efforts of local employers in training and employing people with a disability, injury or health condition. Employers were also recognised for their commitment to workplace health and safety. Thirty-six awards were presented at ceremonies throughout the year and local newspaper coverage highlighted the efforts of many of the awarded employers.

CRS Australia recognises and participates in collaborative research and programs across health, employment and training sectors. This research expands on its professional body of knowledge and the capabilities of its teams as well as improving the services and benefits to its stakeholders.

Collaboration with the Brotherhood of St Laurence and the University of Melbourne on the Employment, Retention and Advancement project continued. A review of qualitative data provided by the researchers is underway to identify opportunities for further research and analysis in areas such as understanding the needs of mature age workers and youth, as well as the value of post-placement support to job seekers once they start employment.

CRS Australia staff contributed to a scientific paper based on a one year mental health collaborative, The Transition Mental Health and Family Collaborative. The paper won the Weary Dunlop Award 2009 presented at the Military Medicine Association Annual Scientific Conference. As part of the collaborative, staff gained skills that enhanced service provision for members of the Australian Defence Force.

PURCHASER-PROVIDER ARRANGEMENTSIn 2009-10 CRS Australia had significant and effective purchaser-provider arrangements in place with the following Australian Government department and agencies:

Department of Education, Employment and Workplace Relations

Department of Families, Housing, Community Services and Indigenous Affairs

Department of Defence

Department of Veterans' Affairs

Department of Immigration and Citizenship

Centrelink.

Each purchaser requires CRS Australia to measure and report on performance to satisfy certain indicators. Performance against each contract was actively managed to ensure delivery of purchased services and CRS Australia has been proactive in responding to purchaser requirements, as evidenced by the renewal of key contracts with a range of purchasers.

Chapter 5: Management and accountabilityDEPARTMENT OF HUMAN SERVICES—GOVERNANCEThroughout 2009-10 the department worked to achieve continuous improvement in the areas of planning and governance. This reflects the changes to the department and the broader portfolio after the service delivery reform announcement by the Minister for Human Services in December 2009. It also reflects the objective to integrate better practice approaches to support the delivery of quality outcomes, manage risks, and use resources responsibly and with accountability.

In November 2009 a new governance committee framework was introduced, resulting from a review of the flexibility and transparency of decision making in the department. The resulting

governance committee framework consists of a Management Board supported by five corporate and two operational committees.

In February-March 2010 new portfolio governance arrangements were also established to steer the development and implementation of service delivery reform, including the integration of enabling services across the portfolio. The aim of the new structure was to streamline portfolio governance while meeting the legislative obligations of agency heads and their agencies.

Figure 12 shows the Human Services portfolio governance committee structure at 30 June 2010.

Figure 12—Human Services portfolio governance committee structure at 30 June 2010

Human Services portfolio governance committeesIn October 2009 the Secretary and Chief Executive Officers' Committee was introduced, replacing the agency heads' meeting. In line with the service delivery reform agenda, five other portfolio committees were formed in March 2010 and met regularly. The portfolio committees are:

ICT Infrastructure Integration Program Steering Committee

ICT Governance Committee

Portfolio Finance Committee

Portfolio Customer Committee

Portfolio People and Leadership Committee.

To guide work on service delivery reform across the portfolio, the Service Delivery Reform (SDR) Board was formed. The board is made up of the Secretary, the CEOs of Centrelink and Medicare Australia, and all of the Deputy Secretaries and Deputy CEOs from the Department of Human Services, Medicare Australia and Centrelink.

The work of the SDR Board and each of the five portfolio committees sitting under the Secretary and CEOs' Committee is outlined below.

The portfolio governance committees provide assurance to the Secretary of the Department of Human Services and the CEOs of Centrelink and Medicare Australia in the following areas:

ICT Infrastructure Integration Program Steering Committee—oversees the progress of the DHS ICT infrastructure integration so that it meets its stated outcomes and returns value to government.

ICT Governance Committee—provides assurance that government expectations relating to service delivery reform are delivered through the building of an integrated, innovative and responsive ICT capability. The ICT Investment Sub-committee sits under the ICT Governance Committee and is responsible for the review and assessment of ICT investment proposals.

Portfolio Finance Committee—provides assurance that the management of financial resources is aligned with and supports the portfolio's strategic directions and government priorities. The Portfolio Investment Subcommittee sits under the Portfolio Finance Committee and provides advice to and supports the SDR Board in relation to funding and financial management of SDR activities.

Portfolio Customer Committee—provides assurance that all aspects of customer service in the portfolio support the implementation and progression of the portfolio's strategic directions.

Portfolio People and Leadership Committee—provides assurance on all crossportfolio people matters including service delivery reform and integration within the Human Services portfolio and shared services. It also provides advice to the portfolio agencies on agency-specific people matters.

SDR Board—responsible for driving and setting the direction for service delivery reform. The board also ensures that key goals and agreed outcomes are achieved and are in line with government objectives. various committees sit under the board and assist with SDR planning, performance management, communication and coordination.

Department of Human Services governance committeesTo meet legislative obligations and provide specific assurance to the Secretary concerning the delivery of quality outcomes, a further seven committees operate within the department:

Audit Committee

Risk, Security and Business Continuity Committee

Finance Committee

Child Support Program Business Operations Committee

CRS Australia Executive Committee

Department of Human Services National Consultative Committee

National Health and Safety Committee.

Audit Committee—established in line with the Financial Management and Accountability Act 1997, the Audit Committee provides assurance to the Secretary on the appropriateness of the department's accountability and control framework, particularly those aspects concerning the proper use of Commonwealth resources and the management of risks. Chaired by the Deputy Secretary, Delivery Policy and Compliance and directly accountable to the Secretary, the Audit Committee usually meets quarterly. The committee has established a Financial Statements Sub-committee.

Figure 13—Department of Human Services governance committee structure at 30 June 2010

Risk, Security and Business Continuity Committee—provides assurance to the Secretary that the department has robust risk management, security and a business continuity framework aligned with the department's strategic directions and government priorities. The committee is responsible for making decisions and/or recommendations to the Management Board on matters of risk, security and business continuity for the department. The committee meets monthly and is chaired by the Chief Financial Officer.

Finance Committee—provides assurance to the Secretary that the management of the financial resources is aligned with the department's strategic direction and government priorities. The committee is responsible for making decisions and/or recommendations to the Management Board on financial management issues and policy for the department. The Finance Committee meets monthly. It is chaired by the Deputy Secretary, Service Delivery Reform Implementation.

Child Support Program Business Operations Committee—provides assurance to the Secretary that the Child Support Program's performance is aligned with the department's strategic direction and government priorities. It provides advice on child support matters, has the ability to make applicable decisions and links to other portfolio and departmental committees as appropriate, including escalating matters to the Management Board. The committee meets monthly and is chaired by the Deputy Secretary, Child Support.

CRS Australia Executive Committee—chaired by the General Manager, CRS Australia, and attended by the two deputy general managers, it holds fortnightly meetings. It develops, implements and manages CRS Australia's strategic direction, monitors and reviews corporate and operational performance to direct resources and processes appropriately, ensures appropriate financial management, accountability and legislative compliance and identifies and manages risks.

Department of Human Services National Consultative Committee—provides genuine consultation between Department of Human Services and Child Support management and staff representatives. This forum was established in accordance with clause 291-293 of the Department of Human Services—Child Support Agency Collective Agreement 2008-2011. The committee is not a decision-making body, but rather a mechanism to enable employees to influence decisions. The committee meets at least three times per year and is chaired by CRS Australia General Manager, People Services or a delegate.

National Health and Safety Committee—advises the Secretary on occupational health and safety issues. The committee is established under section 34 of the Occupational Health and Safety Act 1991. The committee is chaired by the People Support Branch Manager and meets every three months.

The department's governance framework also includes a Senior Leadership Group (SLG) and an All Senior Executive Service Forum (All SES Forum). These meetings commenced in 2009. The SLG is a forum for SES Band 2s to be informed of current departmental issues and priorities and meets bi-monthly. Every quarter the SLG expands to become the All SES Forum. Meetings of the SLG follow on from Management Board meetings.

CRS AUSTRALIA— GOVERNANCEThe General Manager of CRS Australia reports to the Secretary, attends weekly department Management Board meetings, and provides a monthly detailed report to the Management Board on CRS Australia's key performance indicators and operational performance.

Because of its competitive business focus, CRS Australia has additional internal governance arrangements (see page 70) to ensure it meets business commitments, complies with legislative requirements and actively manages risks throughout its Australia-wide network. Processes recognise the degree of devolution of decision making necessary to get job seekers into work and to react promptly to local conditions and community needs.

CRS Australia has three committees to assist the CRS Australia executive in these arrangements, including the Strategic Business Group, Risk Management Committee and National Occupational Health and Safety Committee.

Strategic Business Group—chaired by the General Manager and attended by the two deputy general managers, national managers and division managers, meets approximately every six weeks. The group considers and provides advice and recommendations to the executive on strategic and operational matters, makes decisions on national issues when requested by the executive, and monitors performance and provides input to national projects, communities of practice (Networks of Excellence) and other team initiatives.

Risk Management Committee—chaired by the Deputy General Manager Corporate and attended by a divisional manager, the Manager Fraud and Compliance, an independent external member and observers including the National Manager Finance and the department's Chief Internal Auditor, meets at least quarterly each calendar year. The membership of this committee is reviewed annually. The committee sets the direction of, monitors and reviews the risk management, fraud, audit and protective security control environments, reviews the risk registers quarterly, provides input to the department-wide audit plan, oversees business continuity management plans and activities, develops and monitors risk management, fraud, audit and protective security policies and programs of work and provides advice and guidance on risk management issues as required. In 2009-10 CRS Australia reported on relevant matters of risk, fraud and audit to the Department of Human Services' Audit Committee.

National Health and Safety Committee—chaired by a divisional manager and attended by the National OH&S Adviser, a management representative, the National Injury Prevention Coordinator and an elected health and safety representative for each division, meets every six to eight weeks

by teleconference with an annual face-to-face meeting. The committee monitors and provides input to OH&S strategies to address issues affecting CRS Australia employees, facilitates a consultative and participatory approach to health and safety at work, reviews safety and health reports and progress on prevention initiatives, provides input into safety and health policy development, and considers OH&S-related matters raised by employees.

External governance

Interdepartmental committeesSeveral external governance forums create the opportunity to reinforce the interdependence between policy formulation, design and implementation and to more effectively deliver outcomes for the government.

The Strategic Partnerships Interdepartmental Committee (IDC) provides strategic oversight of the Centrelink service delivery system. This includes strategic management of system performance as well as capability development that is in line with the government's service delivery reform agenda. It also focuses on ensuring current service delivery approaches are effectively implemented and not compromised by the implementation of service deliver reform initiatives. The IDC consists of the Secretaries of the Department of Human Services (Chair); the Department of Education, Employment and Workplace Relations; the Department of Families, Housing, Community Services and Indigenous Affairs; and the Chief Executive Officer of Centrelink.

A Health and Human Services Chief Executive Officers' Forum established by the Secretaries of the Department of Human Services and the Department of Health and Ageing facilitates the successful implementation of service delivery reform and health reform agendas.

Service delivery reformA Service Delivery Reform (SDR) Interdepartmental Committee (IDC) chaired by the Department of Human Services first met in January 2010. Its role is to ensure alignment between SDR and the outcomes of the government's broader reform agenda. Membership of the committee is drawn from central agencies, key policy departments, service delivery organisations and the Office of the Privacy Commissioner.

The Department of Human Services is also represented on the Secretaries' Committee on Service Delivery which is chaired by the Secretary of the Department of Finance and Deregulation.

DEPARTMENT OF HUMAN SERVICES—ACCOUNTABILITYExternal scrutiny

External auditsIn 2009-10 the Australian National Audit Office (ANAO) issued several audit reports that involved the department—see Appendix F— Australian National Audit Office activity on page 204.

The department responds to all ANAO recommendations and the Audit Committee monitors progress. ANAO representatives are invited to attend all audit committee meetings as observers.

In many cases ANAO recommendations directly involve the responsibilities of policy departments. The department works with policy departments to help them effectively respond to the recommendations.

The Joint Committee of Public Accounts and Audit Committee is required by the Public Accounts and Audit Committee Act 1951 to examine all Auditor-General reports tabled in the Australian Parliament. The joint committee's review procedures are built around a series of public hearings,

at which evidence is provided by agencies that have been the subject of recent significant audit findings. The Department of Human Services did not attend any hearings in 2009-10.

Commonwealth Ombudsman reportsAs with external audit reports, the department monitored and responded to Commonwealth Ombudsman reports in relation to agencies within the Department of Human Services. The following reports were made in 2009-10:

Australian Federal Police and the Child Support Agency, Department of Human Services: Caught between two agencies: the case of Mrs X—Report no. 14/2009

Putting things right: compensating for defective administration—Administration of decision-making under the scheme for compensation for detriment caused by defective administration—Report no. 1 1/2009

Social Security Appeals TribunalCSP reviews customers' objections to child support assessments and to decisions about the collection of child support. The decisions it makes about these objections are known as objection decisions.

From 1 January 2007 the Social Security Appeals Tribunal (SSAT) became responsible for independently reviewing CSP objection decisions and decisions to refuse an extension of time in which to lodge an objection. The SSAT provides a review mechanism that is inexpensive, informal and quick, and improves the consistency and transparency of child support decisions.

The SSAT received 2665 applications for review of CSP decisions in 2009-10, and finalised 2777 decisions in relation to appeals. Forty-one per cent of these decisions affirmed CSP's objection decision, and 59 per cent set aside or varied the CSP's decision.

In comparison, the number of appeals made to the SSAT constituted 15 per cent of the total number of objection decisions finalised in 2008-09 (17 388).

Freedom of information, information release and privacyFreedom of information reformsThe Australian Information Commissioner Act 2010 and the Freedom of Information Amendment (Reform) Act 2010 passed through the Parliament on 13 May 2010 and received Royal Assent on 31 May 2010. Their objective is a pro-disclosure culture that promotes openness and accountability as well as public debate on policy issues.

CSP will push information into the public arena, in contrast to the previous Freedom of information (FOI) regime which relied on customers and journalists to extract that information from Australian Government agencies through FOI requests.

The former Act and most provisions of the latter will begin on 1 November 2010. The Information Publication Scheme (IPS) will begin from 1 May 2011.

Some of the changes include:

the Office of the Australian Information Commissioner has been created by the Australian Information Commissioner Act 2010: Professor John McMillan AO will be the first Information Commissioner.

All agencies will be accountable to the Information Commissioner regarding the FOI Act and the new IPS.

The Information Commissioner will have the power to investigate an agency's compliance with the IPS.

no application fees (including for internal review) will apply to access requests

no charges will apply to applicants seeking access to their own personal information under the FOI Act

for all other applications, the first hour of decision-making time will be free—except for journalists and not-for-profit community groups where the first five hours will be free

the ability for FOI applications to be submitted online

a database for non-personal FOI decisions will be available online

an FOI IPS plan to be available on 1 May 2011.

Under the IPS, agencies, must publish a range of information on the internet or advertise how the information can be obtained. The information includes operational information held by an agency to assist in exercising powers and functions when making decisions or recommendations affecting customers, as well as any other information that an agency may wish to publish.

CSP is identifying all operational information within the program and will publish this online within the timeframes set out in the new FOI legislation.

CSP project teams will ensure all requirements will be met within the timeframes.

Request statisticsThe department handles requests for access to documents in accordance with the Freedom of Information Act 1982 received by the Department of Human Services, CRS Australia and Child Support Program.

In 2009-10, 500 FOI requests were received. Taking into account cases pending from previous years, 424 requests were finalised. The outcomes of the cases processed were:

applicants withdrew 68 requests before decisions on access were made

full access was granted in 129 cases

part access was allowed in 197 cases

access was refused in 26 cases

four cases were transferred to other agencies.

Reviews of freedom of informationIn 2009-10, 23 FOI requests were received for an internal review of access decisions. Of the reviews completed at the end of the year, 14 requests resulted in access or part access and five resulted in affirming the original decision.

There were three new applications to the Administrative Appeals Tribunal for review of Department of Human Services FOI decisions.

For Department of Human Services statements in accordance with section 8 of the Freedom of Information Act 1982 see Appendix B: Freedom of Information on page 181.

Privacy of personal informationCSP places great emphasis on protecting the privacy of customers and staff. It employs an extensive range of measures that ensure a high standard of privacy and that community standards in relation to privacy continue to be met.

Privacy trainingCSP privacy obligations are reinforced through training, participation in various privacy forums and expert advice to internal and external stakeholders.

All ongoing and non-ongoing employees complete relevant and up-to-date training.

Privacy impact assessmentsCSP maintains an uncompromising commitment to best privacy practice so new projects and program improvements are developed within a robust privacy framework. The privacy impact assessment process continues to be used to mitigate privacy risks and impacts, ensure compliance with legal obligations and build best privacy practice into projects.

In 2009-10 privacy impact assessments (PIAs) on a range of significant projects were completed. Comprehensive privacy analysis continues as part of the process for all identified projects where personal information may be affected.

Access to personal informationProtecting the privacy and confidentiality of personal information is of critical importance. The CSP employs high standards and an extensive range of activities to support the relevant legislation and best privacy practice. Activities include:

induction training for new staff and follow-up training on identified privacy issues relevant to staff in different business areas

privacy impact assessments (PIA) of new CSP initiatives involving the collection, use or disclosure of personal information

proactive audits of access to personal information to identify any unauthorised access by staff

high quality and timely advice to all business areas to encourage the identification and resolution of any privacy issues as they arise

investigating customer complaints and staff reports of possible breaches to address any ongoing risks

specific processes for releasing personal information to another agency or person.

Secrecy provisionsSecrecy provisions contained in Commonwealth legislation, specifically the Child Support (Assessment) Act 1989 and the Child Support (Registration and Collection) Act 1988, make it an offence for CSP staff to disclose information about a person obtained under those Acts, unless in the performance of their duties, or unless one of the disclosure enabling sections contained in the secrecy provisions applies.

All requests for personal child support information are considered case by case according to the secrecy provisions and in many cases require approval by an officer exercising a delegation made by the Deputy Secretary. Information may be disclosed in response to requests, for example, from law enforcement agencies, or in response to requests when a delegate establishes that the disclosure of personal information is necessary in the public interest.

Personal information related to administration of CSP is protected by the Privacy Act 1988 and requests for personal information are considered under the information privacy principles.

Requests for other types of information or documents are, depending on the circumstances, processed under either the Privacy Act or the FOI Act.

Ecologically sustainable development and environmental performanceFollowing the December 2009 announcement of major reform to Australian Government service delivery, integration of enabling service areas of the Human Services portfolio began. Environmental management teams from the department, Centrelink and Medicare Australia joined together to ensure the portfolio agencies continue to conduct their business in an environmentally responsible manner.

Section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) requires Commonwealth organisations to report annually on their environmental performance and contribution to the principles of ecologically sustainable development.

All agencies of the Human Services portfolio are committed to:

complying with all relevant environmental legislation and regulations

conducting their operations in a manner that minimises environmental impacts and prevents pollution

setting environmental objectives and targets to enable continuous improvement.

For further information see Appendix D— Ecologically sustainable development and environmental performance on page 186.

Internal scrutiny

Risk managementThe assessment, treatment and monitoring of risks are an integral part of the department's planning and decision-making process. Effective risk management ensures the department maximises opportunities and minimises the effect of uncertainty on its objectives.

In 2009-10 the department continued to foster a culture where risk management is a key consideration in day-to-day operations and decision making. Establishing the Risk, Security and Business Continuity Committee, providing assurance to the Secretary that the department has a robust risk management, security and business continuity framework is an example of the commitment to effective risk management principles.

Following the release of the new international standard for risk management, AS/NZS ISO 31000:2009 Risk Management— Principles and guidelines, the department revised its Risk Management Framework to ensure it was consistent with best practice and the international standard. The framework is the foundation for effective risk management within the department. It outlines the key elements for identifying and managing risks and consists of authority, accountability, support tools, outputs and reporting.

In March 2010 the department participated in the annual Comcover Risk Management Benchmarking Survey and was awarded a 5.1 per cent discount (out of a possible 10 per cent) on the 2010-11 insurance premium. This score is indicative of the maturity of risk management within the department.

During 2009-10 the Risk, Security and Business Continuity Committee endorsed a new business continuity framework and policy which was approved by the Management Board. This framework articulates the authority for the business continuity strategy and accountability statements, as well as providing reference to the support, tools and resources available to ensure that business continuity management is effective. It links the policy, strategic priorities and overarching risk assessment to the outputs, that is the business continuity plans (BCPs) and articulates the linkage between emergency, incident and business continuity management processes. All departmental sites have emergency management plans, BCPs were reviewed to ensure currency, and an assessment of the criticality of key functions was performed.

In 2009-10 a Portfolio Business Continuity Community of Practice was established and met regularly to discuss better practices. By the adoption of business continuity management best practices, the department endeavours to ensure that business-critical payments and services are not compromised by a major disruptive event.

In line with service delivery reform planning, the management of the department's risk and business continuity functions will be merged with that of Centrelink and Medicare Australia during 2010-11.

Fraud controlTo comply with the Commonwealth Fraud and Control Guidelines 2002, in 2009-10 the Secretary of the Department of Human Services certified that the department complies with the guidelines, conducts risk assessments and prepares fraud control plans. For a copy of the Secretary's signed certificate confirming the department's compliance with the Guidelines, see Appendix G—Commonwealth Fraud Control Guidelines Certification on page 206.

The department's Fraud Prevention Team activities include educating staff in fraud awareness, fraud control planning and investigating allegations of serious misconduct and/or fraud by departmental staff.

All staff must attend face-to-face training in fraud and ethics awareness every two years. Staff can access policies and guidelines on the intranet. The department regularly communicates the importance of adhering to these guidelines through its internal communication channels. It has begun an education strategy for managers and team leaders so they are familiar with the role and capacity of the Fraud Prevention Team.

The department views breaches of the guidelines seriously and investigates all allegations of fraud and serious misconduct by staff.

SecurityThe protective security functions within the Human Services portfolio were consolidated on 1 March 2010. The new team comprising all existing department, Centrelink and Medicare Australia physical and personnel security employees is managed by the Human Services Agency Security Adviser (ASA), a new role that rationalises the roles previously performed by the department, Centrelink and Medicare Australia ASAs. The team reports to the Branch Manager, People Support Branch.

The new Human Services Workplace Security Team is managed from National Support Office and has nine outposted security advisers deployed across the Human Services network. It has a portfolio-wide responsibility for the following strategic and operational security elements:

the physical security of all portfolio employees and customers

the physical security of all buildings and office space

the physical security of portfolio assets and hardcopy information

personnel security for all current and prospective portfolio employees and contractors.

Associated with those responsibilities, are the following tasks:

physical security incident management

physical security reviews

policy advice and development

employee awareness and training

personnel security.

Corporate records managementA new Corporate Records Management branch in Centrelink is now responsible for ensuring the Department of Human Services, Centrelink and Medicare Australia all comply with recordkeeping requirements and responsibilities as Australian Government agencies. This includes ongoing monitoring of practices and ICT systems while preparing for e-records and records-keeping in the context of connected service delivery across government agencies.

Emergency managementIn 2009-10 the department played a significant role in implementing key elements of the government's natural disaster reform agenda, particularly in the areas of call centre overflow, professional service availability and identity management.

National Emergency Call Centre Surge Capability ProjectThe portfolio successfully negotiated and implemented formal agreements with all states and territories for the provision of an emergency call centre 'surge' capability, where calls would overflow to the Australian Government in the event that state or territory capacity had been, or was likely to be, overwhelmed. Frameworks to regularly test activation protocols, telephony routing and information technology connectivity have also been developed.

Joint Service Delivery ProjectThe portfolio has been working through COAG to agree a set of principles to guide cooperation between the Australian Government and the states and territories in joint service delivery following disasters or emergencies.

As part of this work the portfolio has provided states and territories with a catalogue of skills and services within the Human Services portfolio that the jurisdictions may request when their own resources are overwhelmed by a particular disaster or emergency.

The portfolio is continuing to work with jurisdictions to further streamline and improve existing arrangements to ensure timeliness and transparency in joint service delivery in response to major disasters.

Identity Management in a Disaster ProjectIn consultation with all jurisdictions, significant progress was made in relation to the development of a single form that could be used by any state, territory or Australian Government agency to coordinate the re-establishment of key proof of identity documentation for persons affected by a disaster.

The department recognises that jurisdictions have unique needs that may prevent the adoption of a nationally generic form, but remains optimistic that identified improvements will be embedded before any future disaster response.

Internal auditThe department (including CRS Australia) has an active and effective audit function which carries out internal audits to identify risks and opportunities for improvement. The audit program is developed through consultation with business areas within the department and addresses corporate strategic risks to correctly target audit and assurance activities.

The audits provide independent assurance on management performance in maintaining the department's strategic priorities, achieving operational objectives in line with organisational and legislative requirements, and ensuring that high standards of probity and accountability are met.

The department also:

works closely with the ANAO and provides advice to the Joint Committee of Public Accounts and Audit

undertakes periodic external benchmarking to ensure that it continues to conform to best practices

ensures employees undertake professional development activities

fosters external relationships with private and public sector audit organisations

maintains external networks within the Human Services portfolio and other audit areas within public sector departments and agencies and the broader audit community.

Action on audit recommendations is monitored and reported to the department's executive, the Audit Committee and the ANAO.

During the year internal audits and reviews covered:

training and decision making

business continuity management

preparedness for Gershon1

formula compliance

data governance

asset management

recruitment

EDS management of service delivery

payroll

CSP enforcement

income reconciliations

SAP controls

records management

call/service review

regulatory compliance and business processes

CRS Australia—suitable employment outcomes under DEEWR requirements

management of injury management accounts within CRS Australia

property fitouts

complaints handling.

Regulatory compliance quarterly reportsThe Audit Committee provided assurance that risks were identified, reviewed and addressed throughout the year.

1. Review of the Australian Government's use of information and communication technology, Sir Peter Gershon CBEFREng, August 2008.

Management of ethical standardsThe department requires all employees to behave in accordance with the APS values and Code of Conduct, and to maintain a high level of integrity, honesty and professionalism in their work and in their engagement with the broader community.

In 2009-10 all new staff were trained in the APS Values and Code of Conduct as part of the general induction process.

Service chartersThe department delivers services to the public in accordance with:

the Job Capacity Asessment Client Service Charter—Directly Connecting You to the Right Services

the Child Support Agency's Customer Service Commitment.

Each document outlines what customers can expect, how the department aims to deliver quality customer service and to help staff to fulfill customer expectations, and how customers can assist. The charters, which also provide contact details for obtaining further information or making complaints, can be accessed through the department's website www.humanservices.com.au.

Information on 2009-10 performance and broader trends in customer satisfaction with the delivery of services through the Job Capacity assessment and Child Support programs is provided in Chapter 2: Achievements—Central department.

Grants programsNo grant programs were administered in 2009-10 by the department. Further information on grants administration is available from the Grants Policy Team, Department of Finance and Deregulation —email: grants@finance.gov.au.

CRS AUSTRALIA— ACCOUNTABILITYExternal scrutiny

ANAO auditsThe ANAO audits for 2009-10 are detailed in Appendix F—Australian National Audit Office activity on page 204.

Other external auditsCRS Australia participated in the annual surveillance audit of compliance with the Disability Services Standards that is conducted by external auditors on behalf of the Department of Families, Housing, Community Services and Indigenous Affairs. This audit examined the following standards:

Standard 1: Service access

Standard 2: Individual needs

Standard 3: Decision making and choice

Standard 4: Privacy, dignity and confidentiality

Standard 5: Participation and integration

Standard 6: Valued status

Standard 7: Complaints and disputes

Standard 8: Service management

Standard 9: Employment conditions

Standard 10: Service recipient training and support

Standard 11: Staff recruitment employment and training

Standard 12: Protection of human rights and freedom from abuse.

No non-conformities were identified.

DEEWR conducted compliance audits at approximately 50 CRS Australia offices during the year as part of its management of the Vocational Rehabilitation Services Program Memorandum of Understanding and, from 1 March 2010, the Disability Employment Services Program Memorandum of Understanding.

CRS Australia monitored feedback from these audits to ensure that any areas for improvement were identified and strategies to improve performance were implemented.

Appeals against decisionsFor services provided under the Disability Services Act 1986, a person affected by a decision of CRS Australia, or by CRS Australia's failure to make a decision, can appeal first to the Secretary of DEEWR, or the Secretary's delegate, then to the Administrative Appeals Tribunal if the matter is not resolved to their satisfaction.

DEEWR holds delegations for decisions made under the Act, except for section 21A (ending rehabilitation programs) and sections 26(2), (4) and (5) (review of decisions) under Part III of the Act, which CRS Australia also holds.

In 2009-10:

one appeal was lodged by a job seeker with the AAT, and subsequently withdrawn

the Commonwealth Ombudsman's Office received 18 enquiries about CRS Australia during 2009-10. Sixteen matters were closed during this period and no matters were investigated

no new complaints against CRS Australia were lodged with the Australian Human Rights Commission. One matter, which was terminated in August 2008, continues to be defended at the Federal Court level.

Judicial or administrative decisionsNo judicial or administrative tribunal decisions had an impact on the operations of CRS Australia in 2009-10.

Freedom of informationCRS Australia has protocols and procedures in place for managing requests for information under the Freedom of Information Act 1982. Information sheets outlining the FOI application process are available on CRS Australia's website—www.crsaustralia.gov.au— for potential applicants.

Following the Australian Information Commissioner Act 2010 and the Freedom of Information Amendment (Reform) Act 2010 passed through Parliament on 13 May 2010, an internal communication plan has been developed to ensure all staff are informed of the FOI reforms and CRS Australia is well placed to meet the requirements within the allocated timeframes.

For CRS Australia's FOI procedures and FOI coordinator details see Appendix B—Freedom of Information on page 181.

Privacy of personal informationCRS Australia considers protecting the privacy and confidentiality of personal information to be of critical importance. It has an extensive range of activities which support the relevant legislation and best privacy practice. These activities include:

providing high quality and timely privacy advice to network staff to encourage the identification and resolution of privacy issues

reinforcing privacy obligations to staff through training and participation in various privacy forums

investigating complaints and reports of possible privacy breaches to ensure action is taken to address any ongoing risks

specific processes for releasing personal information to third parties.

The management of CRS Australia customer personal information is protected by section 28 of the Disability Services Act 1986 and the Privacy Act 1988.

Secrecy provisions contained in the Disability Services Act 1986 make it an offence for CRS Australia staff to disclose information about a person obtained under the Act, unless that disclosure is in the performance of their duties, or in the administration of the Social Security Act 1991, in the public interest, or to a prescribed authority.

All requests for personal information are considered case by case according to the secrecy provisions and in many cases require approval or certification by an officer of DEEWR exercising a delegation under the Act. Information may be disclosed in response to requests when a delegate establishes that the disclosure of personal information is necessary in the public interest.

Ecologically sustainable development and environmental performanceCRS Australia is committed to the protection of the environment and recognises its responsibility to the Australian Government and the wider community to minimise the impact of its operations on the environment.

The Environmental Management System is available to staff on the intranet and provides guidelines to help consider environmental objectives. A series of environmental strategies promote environmental awareness within CRS Australia, including environmental intranet pages, news items and the Green Team.

CRS Australia reports on its environmental performance in Appendix D—Ecologically Sustainable Development and Environmental Performance on pages 190-193.

Internal scrutiny

Risk managementIn 2009-10 the CRS Australia Risk Management Committee met three times and provided assurance to the general manager on risk, audit, fraud, security, business continuity, ICT and service delivery issues.

CRS Australia's Risk Management Plan considered risk assessments across all areas of the business including service delivery, business planning, management of major projects, fraud, security, OH&S, business continuity and staff management.

A strategic and operational risk assessment was conducted to determine the overall risk profile for CRS Australia; appropriate mitigation strategies and remediation actions were implemented.

The annual test of the Business Continuity Plan was successfully undertaken in December 2009 and provided important information to ensure that planning, processes and response actions were sound and appropriate.

As part of CRS Australia's commitment to continuous improvement, it again participated in the annual Comcover Risk Management Benchmarking Survey, to ensure that processes and practices reflect relevant legislation and standards.

In 2009-10 CRS Australia received a rating of seven out of 10 (equating to a 7 per cent saving on the premiums), which placed it in the top 30 out of 130 participating Australian Government organisations covered by Comcover, and in the top four from 21 organisations in its peer groups. Areas for improvement will be identified and assessed in the coming year.

Fraud controlAs part of its responsibility to protect the public interest, CRS Australia maintained a fraud control program that complies with the Financial Management and Accountability Act 1997 (FMA Act) and the Commonwealth Fraud Control Guidelines. As part of the fraud control program:

fraud risk assessments and fraud control plans were prepared and reviewed regularly

appropriate fraud prevention, detection, correction, investigation and reporting procedures and processes were undertaken by qualified staff

fraud activity was overseen as part of the organisation's Risk Management Committee terms of reference

data on fraud was collected and reported regularly

all strategies and processes were actively reviewed and, where appropriate, updated in accordance with CRS Australia's continuous improvement strategies.

Twenty-nine matters of potential fraud or unethical behaviour were investigated during the year: three external and 26 internal. All were investigated and reported to the appropriate delegate with recommendations on possible sanctions, and prevention strategies were considered and implemented where appropriate. When required, the fraud control plan and risk register were also updated.

In accordance with the Commonwealth Fraud Control Guidelines, CRS Australia collected fraud data and reported as required to the Australian Institute of Criminology.

SecurityCRS Australia complies with the Australian Government's Protective Security Manual and the Information Security Manual as a basis for its protective security framework.

To ensure compliance with information, physical and personnel security requirements, detailed risk assessments, security reviews of offices, and assessments of other threats and weaknesses through incident reports were conducted in 2009-10.

Reviews of metropolitan and rural service delivery sites formed part of protective security activities in 2009-10. Additional controls and remediation strategies were recommended to ensure compliance with minimum mandatory requirements. However, no material control weaknesses were identified.

A security risk assessment, as part of the Protective Security Plan, was reviewed and updated to ensure that identified risks were addressed.

Internal auditThe Department of Human Services manages the internal audit process for CRS Australia. Input is provided into the broader Department Internal Audit Plan based on risk assessments, priorities and business imperatives.

CRS Australia uses internal audit and quality assurance processes to improve overall effectiveness and to provide assurance of consistency and accuracy in decision making, particularly as it is applied to decisions under the FMA Act.

CRS Australia coordinated a range of internal audits and participated in a number of cross-agency audits, including audits of financial statements.

Aside from the internal audit process, CRS Australia undertook a range of additional governance activities to provide further assurance of compliance. These included:

managers' self-audit package

due diligence questionnaire

internal financial and process reviews

analysis of various financial and other reports

start of a rolling process of assessing CRS Australia's compliance with relevant legislation to ensure consistency with internal policy and procedures.

Management of ethical standardsCRS Australia requires all employees to follow the APS values and Code of Conduct both in their delivery of services and in their interactions with each other.

Staff received communication and training on the APS values and Code of Conduct at induction, through line managers at the local level and through regular articles and screensavers published on the intranet. The APS bookmarks relating to the Ethics Advisory Service and the APS Code of Conduct were distributed to staff.

Results of the 2010 CRS Australia Employee Opinion Survey demonstrated CRS Australia's commitment in this area with 70 per cent of staff considering senior management decisions to be consistent with the APS values and CRS Australia service commitments. This is an increase of 16 percentage points since the 2008 survey.

In 2009-10 there was a focus on email communication and ensuring consistency with the Code of Conduct. Regular intranet news items were released and all managers attended presentations by the National Manager Human Resources.

Policies and procedures relating to breaches of the code are available to all staff on the CRS Australia intranet.

During 2009-10, 13 staff were found to have breached the APS Code of Conduct. Three cases were not concluded because one staff member's employment contract expired and two resigned. Sanctions were applied in six cases—two staff members' employment was terminated, one was reduced in salary and reprimanded, two were deducted salary by fine and reprimanded, and one was reprimanded. Seven cases had no sanction applied. In six of these management action was undertaken. In one case the employee resigned before the sanction decision was finalised.

Of the four investigations reported in the 2008-09 annual report as not finalised, two staff members resigned before the investigation was completed, one was found not to have breached the APS Code of Conduct and in the fourth case a sanction of termination of employment was issued.

Resolution of complaintsCRS Australia is committed to a positive and structured approach to managing complaints and appeals. Its complaints management process follows a three-tier resolution model. Complaints are typically made initially at the regional level, and escalated to divisional and national levels as required. CRS Australia uses the Commonwealth Ombudsman's Better Practice Guide to Complaint Handling (2009) as a basis for complaint management.

CRS Australia modified its complaints reporting mechanisms, enabling it to capture a wider range of services and allowing more local staff to handle tier one complaints. There were no internal reviews of decisions made by CRS Australia to end a rehabilitation program. CRS Australia uses complaint information to evaluate and improve programs and services and feedback is also used to inform decision making about future service delivery.

Service charterThe majority of CRS Australia services were covered by the DEEWR Vocational Rehabilitation Service (VRS) Guarantee and the DEEWR Disability Employment Services Programs—your service guarantee from 1 March 2010.

The CRS Australia Service Charter recognises the DEEWR requirements and clarifies expectations on service standards.

During 2009-10 CRS Australia staff complied with the standards set out in the DEEWR Disability Employment Services Programs— your service guarantee and the Employment Services Code of Practice in the delivery of disability employment services. The code of practice outlines the

commitment that disability employment service providers make to providing high-quality services to job seekers on behalf of the Australian Government.

CRS Australia applied both its service charter and the codes of practice required by purchasers of its services.

CRS Australia's service charter remained relevant to the broader range of commercial services delivered by CRS Australia and was available online on the CRS Australia website at www.crsaustralia.gov.au.

Grants programsCRS Australia did not manage any grants programs during 2009-10.

Case Study—An exciting time for staffOne of the many positives that staff have commented on, is that although they have not left their teams, they have new colleagues.

‘Service delivery reform—it’s an exciting time for us all,’ says Jim Rice from the DHS People Capability Division.

Jim is involved in bringing together the three people services areas from the department, Centrelink and Medicare Australia.

The complexity of the task is enormous—merging three policies that until now have been administered by sections in the three agencies—areas such as OH&S, recruitment and human services.

People are still for the most part in virtual teams with members spread over three or four locations, but they are now working under one structure.

Eventually everyone will be co-located in the Tuggeranong area depending on other co-locations that are also happening in areas such as ICT, procurement, legal and finance.

‘The accommodation picture is much bigger than just thinking about the people. The ultimate goal is the entire service delivery arm being viewed as one organisation.

‘One of the many positives that staff have commented on’, says Jim, ‘is that although they may not have left their teams, they have new colleagues.

'We’ve seen enormous cooperation between staff in the three agencies. It’s been difficult, but there’s been a lot of good will. It’s nice to be part of that.’

DEPARTMENT OF HUMAN SERVICES—PEOPLEIntegration of human resources functionsThe People Services functions of the Department of Human Services (excluding CRS Australia), Medicare Australia and Centrelink came together on 1 March 2010.

There are now two people divisions for the portfolio—People Services and People Capability. Both divisions report to the Deputy CEO, People and Operations, who in turn reports directly to the CEO of Medicare Australia, as the leader of the portfolio's People Services.

The combined people divisions are responsible for a broad range of portfolio issues, including:

diversity and strategic recruitment

people development

leadership

employee relations

performance improvement and awards

change management

ethics and values

payroll

workforce planning

workplace health and safety.

Staff profileAt 30 June 2010 the department employed 4584 people, of which 4507 (98.32 per cent) were ongoing and 77 (1.68 per cent) were non-ongoing.

For satatistics on staff by classification, employment status, gender and location see Appendix H—Staffing Statistics on page 207. For salary ranges under the various employment agreements see Appendix I—Employee Remuneration Overview on page 215.

Collective agreementThe Department of Human Services—Child Support Agency Collective Agreement 2008-11 started on 8 July 2008.

The agreement provided the following salary increases for 2009-10:

3.5 per cent effective from 9 July 2009

an additional 0.5 per cent, subject to the achievement of the following corporate objectives:

an increase in either the cumulative collection rate or the percentage of parents who meet more than 75 per cent of their child support liabilities

a reduction in customer dissatisfaction with CSP service

a reduction in the department's average annual unplanned leave.

The agreement also provides the following:

annual salary progression of 3.5 per cent linked to performance that meets or exceeds expectations

for employees at the top of their salary range, a $500 performance bonus for employees who performed above agreed requirements

a health and wellbeing reimbursement of $200 for eligible health related expenditure.

The agreement includes a flexibility clause to enable the approval of additional employment conditions in exceptional circumstances.

Performance managementThe department is committed to being a high performing organisation by linking individual performance agreements to business goals and strategic directions. Effective management of the individual performance of employees is a key contributor to the organisation's success.

All employees participate in a performance management program, the main objectives of which are:

developing a high performing culture

ensuring employees are aware of the standards of performance expected of them

providing employees with an understanding of what they are expected to achieve during the performance year

ensuring employees uphold the Australian Public Service values in the course of their duties

recognising achievement

identifying and addressing capability development needs.

Performance payIn accordance with the CSP Senior Executive Service (SES) and Executive Level Performance Management Schemes, CSP SES and executive level employees covered by an Australian Work Place Agreement (AWA) may have been eligible for a performance bonus for superior or outstanding performance of between five and 15 per cent of base salary.

Table 8 shows the performance bonuses paid in 2009-10 for performance during 2008-09.

ProductivityIn 2008-09 only the cumulative collection rate target was met. In relation to the reduction in customer dissatisfaction target, the Secretary considered the circumstances relating to the introduction of the new Child Support Scheme as 'exceptional', and in line with the provisions of the agreement, awarded a partial increase of 0.08 per cent in place of the 0.17 per cent that would have been awarded if this objective had been achieved.

Accordingly, an additional partial pay increase of 0.25 per cent was approved.

Senior executive remunerationThe remuneration arrangements for all SES employees are governed under individual common law contracts.

Senior executive remuneration is determined by the Secretary and reflects the work value, individual capability, contribution and performance of an executive. Relevant market factors and the organisational performance of the department are also taken into account. Remuneration is reviewed annually at the end of the performance cycle.

For salary ranges for executive employees, see Appendix I—Employee Remuneration on page 215.

Individual agreementsWith the implementation of arrangements for AWA employees to be moved to the collective agreement, 61 employees terminated their AWAs by agreement in 2009-10, and 40 employees remained on AWAs at 30 June 2010.

Table 8—Department of Human Services performance pay for 2008-09, paid in 2009-10

Level Staff eligible Staff paid Amount paid ($) Average ($)

APS 36 16 33 261.29 2079

Executive level 208 130 449 235.89 3456

SES 55 42 497 989.40 11 857

Total 299 188 980 486.58 5215

Note: If an employee had been performing higher duties for the entire 2008-09 performance cycle they have been reported against their higher duties classification.

Workforce planningThe department is developing a new human capital planning strategy to articulate the future direction of its workforce. This will help to ensure portfolio-wide alignment of the workforce with business direction and outcomes.

RecruitmentFollowing the recruitment review in June 2009 the department transferred the recruitment function from Brisbane to Canberra and re-examined its recruitment services to keep improving service delivery.

An online recruitment capability was developed during the year to provide for the electronic lodgment of applications and more streamlined selection processes. This capability will be rolled out early in 2010-11.

As part of portfolio integration, the department's recruitment team also began providing cross-portfolio recruitment services in cooperation with recruitment teams in both Centrelink and Medicare Australia. Further development and implementation of best practice portfolio-wide recruitment arrangements will be undertaken as part of the broader portfolio integration activities.

Staff numbers increased during the year by 1.35 per cent, and the department used a number of strategies to retain high quality employees. These included undertaking management and leadership training, providing internal mobility opportunities, implementing wellbeing programs, and acknowledging staff performance through performance management and rewards and recognition.

Workplace diversityIn 2009-10 the department continued to develop an inclusive and supportive workplace through strategies that recognise the diversity of its workforce.

By 2011 a draft Workplace Diversity Plan should form part of the Human Services Portfolio Workplace Diversity Plan.

All rehabilitation case managers and human resource officers received training by beyondblue in mental health awareness. Participants were guided through the fundamentals of mental health issues in the workplace, including:

an examination of prevention strategies at an organisational level

how to develop appropriate policies and procedures

how to advise managers on addressing mental health issues with their staff.

Indigenous employment and retention strategyIn July 2009 the department—including CSP and CRS Australia as part of the Human Services portfolio—launched the Statement of Commitment to Reconciliation. The statement was signed by the departmental Secretary and portfolio agency heads of Centrelink, Medicare Australia and Australian Hearing. The statement demonstrates the portfolio's commitment to working together in a practical way to improve health, social and welfare outcomes for all Indigenous Australians.

The number of Indigenous employees in the department has remained steady over the past 12 months. The proportion is 1.6 per cent.

The department is committed to increasing the employment and retention of Indigenous employees as a key component of its Reconciliation Action Plan. It has committed to increasing representation to 2.3 per cent by 2012. In 2009 six Indigenous trainees were recruited as part of the Australian Public Service Commission (APSC) Pathways Program; the retention rate is 100 per cent.

In 2010 the department plans to recruit two Indigenous trainees on the DEEWR Indigenous Australian Government Development Program in addition to recruiting more Indigenous trainees, graduates and cadets through the 2011 APSC Indigenous Pathways Program.

The department continues to support Indigenous employees' involvement in both internal and external networks and participation in the APSC's Indigenous Career Trek and targeted Indigenous leadership programs.

In 2009-10 the department undertook awareness raising campaigns to raise the profile of workplace diversity and further the ongoing development of a culture that supports diversity. Campaigns included staff profiles, and celebration of Reconciliation Week, NAIDOC Week, Harmony Day and Families Week.

Workplace change managementConsultation with the Community and Public Sector Union (CPSU) has progressed to a new level of collaboration with the implementation of the Human Services Access Protocols and Facilities Arrangements for the CPSU and the establishment of a framework for consulting with the CPSU on the implementation of service delivery reform.

Learning and developmentOne hundred and twenty employees across CSP completed a Diploma of Government (Management) program in 2009. The program was designed and delivered by the Australian Public Service Commission for CSP APS6-EL1 employees to improve management capability across the organisation. The program included involvement from SES officers and the participants completed action learning projects. The department has committed to delivering accredited management training to 100 staff in 2010-11.

In 2009-10, 44 departmental SES participated in a 360 degree feedback and demographic survey process. Individual feedback sessions were held for participating SES officers, leading to the development of individual development plans.

During 2010 the department commissioned the development of a number of e-learning modules for all staff on records management, fraud awareness, environmental management, business continuity and cultural awareness. The programs will be made available to all staff during 2010.

Human Services Leadership ForumOn 18 June 2010 the inaugural Human Services Leadership Forum was held in Canberra. The forum brought together 45 EL1s and EL2s from across the portfolio to build relationships, share ideas, discuss key issues, identify priorities and engage in two-way dialogue with the executive.

The event explored issues around future directions, organisational change, ICT, workloads, staff identity and communication.

Overall, participant feedback was positive, with 84 per cent of staff rating the event seven out of 10 or higher.

OH&S—Promoting a safe and supportive workplaceThe department continued to reduce the social and financial cost of occupational injury and illness by implementing health and safety management arrangements and developing a supporting OH&S policy framework.

The health and safety management arrangements contain:

the Secretary's statement of commitment towards OH&S management

staff roles and responsibilities

consultative arrangements and dispute resolution procedures.

The policy framework supports good OH&S performance by outlining the department's full OH&S management system, including processes associated with planning, implementing, evaluating and reviewing performance improvement strategies.

A national OH&S plan—endorsed by the health and safety subcommittee and executive— identified strategies to further improve performance. The plan was progressively implemented during the year.

Strategies focused on reducing incidences of workplace injury through better risk assessment, hazard identification and management and staff awareness, and improving rehabilitation and return-to-work processes to support ill or injured staff and speed their return to work.

Despite these efforts there was a slight increase in the number of compensation claims lodged and a slight increase in the compensation premium rate. See also Appendix A— Occupational Health and Safety on page 178.

Workplace healthThe department has maintained a number of strategies to ensure staff health and wellbeing.

Eligible staff were able to claim a $200 reimbursement from the department for activities that promote and support their psychological and physical good health and wellbeing.

Free on-site seasonal flu vaccinations were also offered to staff at major sites, with staff at regional service centres supported to join Centrelink's vaccination program or attend their local medical provider. The activity was well received by employees, with 1 529 staff vaccinated on site.

The department also negotiated corporate rate deals for staff with a number of fitness centre operators across Australia at all major sites and some regional offices.

The department supported the community through a number of charities such as Lifeline, the Smith Family (Christmas Giving Tree), the Starlight Foundation and beyondblue.

Communication activities

Communicating with staffTo support service delivery reform, the communication functions across the Human Services portfolio were integrated on 1 March 2010.

Effective staff communication ensured a range of organisational and business priorities, issues, and changes were communicated to staff in a timely and consistent way.

Departmental Secretary, Finn Pratt, shared and received information through monthly video- on-demand messages and monthly dialogue sessions, regular emails including joint emails from himself and the CEOs of Centrelink and Medicare Australia, and through an 'Ask Finn' mailbox. A bi-monthly newsletter, Human Connection, was produced for all departmental staff as well.

Case Study—a rewarding work environmentAnita Young, Rehabilitation Consultant

Anita Young knew CRS Australia was a leading provider of vocational rehabilitation, helping people with a disability, injury or health condition to get and keep a job.

So in January 2003, after finishing her degree in Occupational Therapy, she started working for CRS Australia as a rehabilitation consultant in the Maroochydore, Queensland office.

Helping her clients to discover their skills, acknowledge their experience, and explore possible career options, Anita helps them to manage their disability and maximise employment opportunities.

‘I focus on getting a really good job match pretty quickly, because when I get that right the rest generally follows,’ says Anita.

The best part about working with CRS Australia is seeing people reach their employment goal: ‘I get a lot of satisfaction from helping my clients find employment, especially when they’ve been out of work for a long time, or have experienced multiple barriers to getting a job—it’s so rewarding to see them get there in the end’.

Anita also delivers injury management and prevention services for employers to help them provide staff with healthy and safe workplaces. She helps injured workers get back to work by developing tailored return to work plans with employers.

For Anita, it's a rewarding career: ‘It’s great working at CRS Australia. My work is varied; I get to help people through challenging times, and see the results at the end of it’.

CRS AUSTRALIA—PEOPLEA priority for CRS Australia over 2009-10 was ensuring the right staff had the right skills, in the right place, at the right time. To maximise outcomes for job seekers, and to deliver effective and competitive services, work focused on learning and development for more experienced rehabilitation consultants, implementing the senior rehabilitation consultant as a permanent role and formalising regional leadership teams.

Staff profileAt 30 June 2010 CRS Australia employed 2053 people (including staff on long-term leave). The number of staff employed by CRS Australia decreased during the year, with 79 fewer employees at 30 June 2010 than at 30 June 2009. The workforce consisted of 1682 (82 per cent) ongoing and 1209 (59 per cent) full-time staff. See Appendix H—Staffing Statistics on page 207.

Collective agreementThe CRS Australia Collective Agreement 2008-1 1 commenced on 15 January 2009. Features of the collective agreement included:

4.25 per cent salary increase on 5 December 2009

one-off productivity payment equal to one per cent of base salary in June 2010 on achieving minimum revenue to salary ratio of 1.75:1

annual salary progression and reward payment of up to six per cent linked to performance that exceeds expectations and funded through productivity efficiencies

use of flexibility clauses and individual section 24(1) determinations to supplement wages and conditions by agreement.

As at 30 June 2010, 2044 staffs were employed under the CRS Australia Collective Agreement 2008-11. Forty-four employees had some terms and conditions of the agreement enhanced by individual determinations under section 24(1) of the Public Service Act 1999 or individual determination under the agreement's flexibility clause.

Individual agreementsSince January 2008, in accordance with Australian Government policy, CRS Australia has been progressively offering staff the opportunity to move off Australian Workplace Agreements (AWAs). At 30 June 2009 nine staffs were employed on AWAs. In 2009-10 four employees terminated their AWAs by agreement, one resigned, and four remain on AWAs at 30 June 2010.

ProductivityThe collective agreement provided for a one-off payment in 2010 equal to one per cent of base salary, conditional on a minimum revenue to salary ratio of 1.75:1 productivity measure being achieved (at the national level) at the end of May 2010. This ratio measured the efficiency of staff resources and their effectiveness in generating revenues. CRS Australia met this productivity measure, achieving a ratio of 1.76:1 and the one-off one per cent payment was made to employees.

Table 9—CRS Australia performance pay for 2008-09, paid in 2009-10

Level Staff eligible Staff paid Amount paid ($) Average ($)

APS levels 1-6 1555 323 903 153 2796

Executive level/SES1 133 48 251 377 5237

Total 1688 371 1 154 530 3112

APS = Australian Public Service

1. Senior Executive Services (SES) have been combined with executive level to ensure that payments to individuals cannot be identified.

Senior executive remunerationSenior executive remuneration is determined by the Secretary and reflects work value, individual capability, contribution and performance. Relevant market factors and the organisational

performance of CRS Australia are also taken into account. Remuneration is reviewed at the end of the annual performance cycle.

Conditions of employment for all senior executives are contained in common law contracts. These arrangements typically provide for salary, superannuation, access to a motor vehicle or equivalent cash out and other applicable allowances and benefits. Contracts will be replaced by section 24(1) determinations from 1 July 2010.

Performance management and payThe Performance Achievement System aligned each employee's behaviour, development and results with the organisational and team objectives critical to the achievement of CRS Australia's goals.

The collective agreement introduced a four- point rating scale to replace a previous three- point rating scale, and only staff who achieved the top rating of 'above expectations' were eligible for performance pay.

The new four-point scale better identifies staff who need additional training and support to be fully effective.

See Table 9 on page 90 for performance bonuses paid in 2009-10 for performance during 2008-09.

Attracting and retaining staffThe external employment market and improved salary and conditions that flowed from the CRS Australia Collective Agreement 2008-11 has seen the reduction in staff turnover continue from 11.66 per cent in 2008-09 to 10.96 per cent in 2009-10.

The collective agreement acknowledges the need for flexibility for the aging workforce. Options being offered to retain this group include flexible working arrangements, purchased leave and adjusting the OH&S environment to suit their needs.

As part of the work to finalise regional leadership teams, senior rehabilitation consultants were implemented as a permanent pay point. An extensive selection process was undertaken nationally to ensure consistency in the appointment of suitably qualified and experienced staff. As some took on a team leadership role as well as a professional leadership role, an extensive training program to support them in their new role was undertaken during the year.

Revised recruitment advertising guidelines resulted in savings in advertising costs. Online recruitment sites are a preferred source for many applicants and are significantly cheaper than press advertisements.

CRS Australia has an active alumnus and publishes a bi-annual newsletter to maintain contact with ex-staff. This enables alumni to keep abreast of changes and future job vacancies.

CRS Australia conducted an employee opinion survey in February 2010. Results indicated improvements in all but one category compared to the 2008 results. In 2009-10, 95 per cent of respondents felt their job made a worthwhile contribution (an increase of two percentage points), with an increasing majority indicating satisfaction with their job (an increase of eight percentage points over the previous survey).

Communications with staffResults of the 2008 employee survey identified communication as needing improvement. In 2009-10 the executive implemented strategies to improve communication, including regular senior management visits to units, vertical slice meetings with staff across the organisation, a General

Manager Bulletin and SBG Managers News following Strategic Business Group meetings. This focus by the executive has seen an improvement in this category of eight percentage points.

Workplace givingNinety per cent of staff fully support the values for which CRS Australia stands. Its service commitment includes taking pride in making a difference in job seekers' lives and communities. To help achieve this, CRS Australia facilitates a workplace giving scheme, through which staff can donate to 12 selected charities. These charities were selected by staff through a nomination process. In 2009-10 staff contributed over $32 500.

OH&S: Promoting a safe and supportive workplaceOH&S principles are included in the CRS Australia Strategic Plan 2009-2012 and are a standard requirement in business plans.

CRS Australia successfully implemented Health and Safety Management Arrangements (HSMA) as required by amendments to the Occupational Health and Safety Act 1991 (OH&S Act).

The HSMA, which were developed in consultation with staff, provide a comprehensive safety management system. A review began in May 2010 with feedback being sought from staff. Recommendations will be available in late 2010.

During 2009-10 CRS Australia maintained 23 designated work groups and ensured all health and safety representatives received the required training.

The National Health and Safety Committee met approximately every six weeks. The committee reports against identified actions, including a research project on body stressing, improving communication channels for health and safety representatives and reviewing the roll out of major projects from an OH&S perspective.

There were no formal Comcare investigations in 2009-10.

Training for managers was conducted in relation to the Safety, Rehabilitation and Compensation Act 1988 (SRC Act) and the OH&S Act. Strategies to address better practice early intervention and rehabilitation for CRS Australia employees were shared.

A review of the Comcare guide for employers on Prevention and management of customer aggression was undertaken and CRS Australia's approach was found to be consistent with the guidelines. Further information and support tools were provided to managers and staff.

Early intervention strategies such as referrals for short-term counselling, physiotherapy and independent medical assessments were provided to help staff remain at or return to work. Ergonomic equipment, furniture and software were provided where required.

For detailed information on CRS Australia's OH&S arrangements and performance, see Appendix A—Occupational Health and Safety on page 178.

Learning and developmentLearning and development programs continued to be aligned with required capability. During 2009-10 activities focused on supporting service delivery staff transition to the new Disability Employment Services program. This included training for staff and updating core induction courses around case management, job seeking and post placement support for job seekers.

There was particular focus on developing senior rehabilitation consultants' business and leadership skills to align with the formalisation of regional leadership teams.

A Learning Pathway and Commencement Plan was developed to support managers. Ongoing communication around the online leadership resource Harvard Manage Mentor, helped to ensure steady take-up rates of online leadership training.

To support regions in developing strong employer relationships, training was released for the employer relationship database and three levels of training were developed for employer sales and relationship management.

The release of a self-paced resilience course, available to all staff, was well timed given the amount of change in 2009-10.

Because CRS Australia is a geographically dispersed organisation it used distance-based learning solutions and flexible scheduling options to ensure a good uptake of regional and divisional requests for training.

In total 3454 days of internal learning and development activities were provided to staff. $2.134 million was spent on external training and conference attendance.

Workplace diversityThe Workplace Diversity Plan and CRS Australia's commitment to fostering a diverse workforce was promoted on the intranet. A range of initiatives were also encouraged including promoting:

National Reconciliation Week and CRS Australia's Reconciliation Action Plan

NAIDOC Week and involvement in NAIDOC activities

relevant elearning resources such as 'Inclusion=Innovation'

development activities aimed at increasing mental health awareness

assistance with vacation care options.

Flexible working conditions continued to enable staff to balance work with family and personal lives. This was validated by a strong positive result in the employee opinion survey; 84 per cent of respondents agreed that work schedules allow sufficient flexibility to meet personal/family needs. Forty-one per cent of staffs are part-time employees.

CRS Australia continued to implement the Indigenous Employment Strategy 2006-2009 and the number of Indigenous employees continued to increase modestly. Four cadets were engaged at the beginning of 2010 making a total of six at end June 2010.

A new Reconciliation Action Plan (RAP) was developed in consultation with Aboriginal and Torres Strait Islander, as well as non-Aboriginal and Torres Strait Islander staff and Reconciliation Australia. Among other aims, the plan committed to the continuation of the RAP working group, consisting of Aboriginal and Torres Strait Islander, as well as non-Aboriginal and Torres Strait Islander peoples, to advise on developing and implementing strategies to increase the recruitment and retention of Indigenous Australians. The new plan commits CRS Australia to the implementation of a range of measurable activities aimed at closing the gap in disadvantage between Indigenous and non-Indigenous Australians.

DEPARTMENT OF HUMAN SERVICES—RESOURCESProcurement

Purchasing activity and contract managementThe department's procurement activities are carried out in accordance with the Commonwealth Procurement Guidelines. The department's Chief Executive's Instructions and related policy and

procedural publications support the guidelines and are regularly reviewed for consistency with the Commonwealth procurement framework.

Since January 2006 the department has joined with portfolio agencies in procurement activity. This has taken the form of either a joint approach to the market (clustering) or through contractual arrangements containing provisions allowing access by other portfolio agencies (often referred to as piggybacking). Clustering and piggybacking have led to reduced tendering costs and savings through economies of scale. Similarly, The department has established clustering and piggybacking arrangements with other Australian Public Service agencies wherever it has been practical to do so.

During 2009-10 the department continued to provide specialist procurement advice, assistance, training and resources to staff to ensure procurement activities were carried out in accordance with the procurement guidelines.

The department has also contributed to a number of whole-of-government coordinated procurement initiatives led by the Department of Finance and Deregulation.

ConsultantsThe department complies with the information published in the Department of Finance and Deregulation's Financial Management Guidance No 15: Guidance on Procurement Publishing Obligations (July 2007) in distinguishing between consultancy and non-consultancy contracts for annual reporting purposes.

During 2009-10, 17 new consultancy contracts were entered into, involving total actual expenditure of $2 127 127. In addition, one ongoing consultancy contract was active during 10, involving total actual expenditure of $113 234 (inclusive of goods and services tax).

Appendix J—Consultancy contracts on page 218 shows all new consultancy contracts let by the department during 2009-10 with a value of $10 000 or more.

Table 10 shows total expenditure on consultancy contracts for the current and previous two financial years. These are combined figures for consultancy contracts by the then-termed core department and the CSP (2007-08) and the department, including the CSP (2008-09 and 2009-10).

Table 10—Expenditure on consultancy services 2007-08 to 2009-10

Financial year Total consultancy services expenditure ($)

2007-08 6 288 621

2008-09 1 293 101

2009-10 2 240 361

Annual reports contain information about actual expenditure on contracts and consultancies. Information on the value of contracts and consultancies is available on the AusTender website at www.tenders.gov.au.

Australian National Audit Office access clausesThe department let seven contracts during 2009-10 that were over $100 000 (inclusive of goods and services tax) that did not provide the Auditor-General with appropriate access to a contractor's premises. Table 11 on page 95 provides details of these.

Exempt contractsDuring the year the department had no contracts or standing offers that were exempted from publication on AusTender.

Property managementThe department—excluding CRS Australia— maintains a leased portfolio of 19 sites occupying 71 648m2. The property portfolio comprises three sites in the ACT, with the remainder located across other Australian capital cities and regional areas.

Following an open market tender process, a new property services contract began in July 2009 with Centrelink's incumbent provider, Jones Lang LaSalle (JLL). This new contract also includes the Department of Human Services/CSP and Medicare Australia with Centrelink as the lead agency.

In 2009-10 office lease and associated costs for the department were $41.1 million.

Management of the property portfolio focused on providing accommodation to meet the needs of a changing service delivery environment. The property and environment branches of Centrelink, Medicare Australia and the department have been integrated into two branches to provide support to the property elements of the portfolio's service delivery reform program.

In an ongoing program to improve service delivery, customer and staff amenity, and enhance the image and presentation of the DHS service delivery network, six DHS sites were partially refurbished or relocated to new premises. In total, $10.9 million was spent on capital improvements to department sites.

See page 97 for details on CRS Australia property management.

CRS AUSTRALIA— RESOURCESOne of the main challenges for CRS Australia managers is managing over 2000 staff located in over 180 primarily small service delivery offices across the nation, with a further 140 visiting sites. Demand for services in local areas fluctuates, depending on economic and demographic conditions.

Financial managementCRS Australia adopts a careful balance of fixed and variable resourcing strategies which means that service delivery units can respond to peaks and troughs in demand while ensuring the overall financial outcome for CRS Australia is positive.

In 2009-10 CRS Australia made a surplus of $2.230 million before accounting adjustments not directly related to operational performance.

Table 11—Contracts over $100 000 (inclusive of GST) that did not provide for the Auditor-General to have access to the contractor's premises

Name of contractor Purpose Value ($) Reason why clause not included

400 George Street (Qld) Pty Ltd

Property lease for Brisbane Premises

128 885 411 Property leases do not contain access clause

Knight Frank Pty Ltd Property lease for Adelaide Premises

3 103 651 Property leases do not contain access clauses

ISIS Projects Pty Ltd Construction works for accommodation

1 857 333 Construction contract. Access to building site only

ISIS Projects (Queensland) Pty Ltd

Fitout and construction 6 050 000 Construction contract. Access to building site only

Primewest Pty Ltd Property lease for Perth premises (short-term lease)

2 611 185 Property leases do not contain access clauses

Primewest Pty Ltd Property lease for Perth premises (long-term lease)

27 389 255 Property leases do not contain access clauses

SMI Group Pty Ltd Fitout and construction 670 802 Construction contract. Access to building site only

Table 12—Summary of CRS Australia consultancy services contracts 2007-08 to 2009-10

2007-08 2008-09 2009-10

Number of new contracts let 13 9 6

Total actual expenditure on new contracts $257 054 $127 499 $185 720

Number of active ongoing contracts 13 9 1

Total actual expenditure on ongoing contracts $602 733 $341 301 $79 625

Number of contracts exempt from AusTender Nil Nil Nil

Note: Expenditure totals include good and services tax and have been rounded to the nearest dollar.

Procurement

Purchasing activity and contract managementPurchasing decisions comply with the Commonwealth Procurement Guidelines and CRS Australia purchasing policies and principles. Most purchases relating to job seeker programs cost less than $1000. These must be outlined in the specific job seeker's Employment Pathway or Program Plan as necessary to achieve a successful return to work.

CRS Australia employs external service providers (contractors) primarily to provide allied health and other vocational rehabilitation and training interventions on a needs basis across Australia.

These providers are critical to meeting surges in demand and to support the specific needs of individual job seekers.

Consultants and services contractorsCRS Australia complies with the information published in the Department of Finance and Deregulation's Financial Management Guidance No 15: Guidance on Procurement Publishing Obligations (July 2007) in distinguishing between consultancy and non-consultancy contracts for annual reporting purposes.

In 2009-10 CRS Australia engaged consultants to provide a range of specialist skills that were not available in-house or where an external independent and impartial view was required.

Six new consultancy contracts were entered into, involving total actual expenditure of $185 720. In addition, one ongoing consultancy contract was active at the beginning of the financial year, involving total actual expenditure of $79 62 5. Total actual expenditure for 2009-10 was $265 345.

Table 12 shows expenditure on consultancy service contracts for 2009-10 and the preceding two years.

See Appendix J—Consultancy contracts on page 218 for all new consultancy contracts let by CRS Australia during 2009-10 with a value of $10 000 or more.

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

Australian National Audit Office access clausesCRS Australia has included ANAO access clauses in all of its contracts, along with provisions in relation to small businesses and sole traders.

Exempt contractsCRS Australia did not have any contracts that were exempted from listing on the AusTender website.

Property managementCRS Australia's national service delivery network consists of more than 180 service delivery offices of which 35 per cent are located in rural and remote Australia. Business support operations are located within the national office in Canberra and divisional offices in Sydney, Melbourne, Brisbane, Perth and Adelaide. Service delivery offices are located conveniently for clients, close to Centrelink offices, transport systems and other community facilities.

In 2009-10, 17 offices were relocated within the communities they serve and 66 leases on existing tenancies were renewed.

Knowledge managementThe Networks of Excellence (NoE) are a knowledge management initiative that drives innovation and improved performance across all aspects of service delivery to job seekers and business management processes. During 2009-10 there were five NoEs working on a range of key projects that aligned with CRS Australia's Strategic and National Business Plan.

To improve knowledge sharing throughout the organisation, CRS Australia began the roll out of Office Communicator software nationally in early 2010. This ICT application supports greater sharing of knowledge across the organisation through instant messaging and document sharing. Video conferencing is a feature being explored.

In 2009-10 CRS Australia knowledge management strategies also included:

the quality assurance and improvement program, which integrated the elements of best-practice quality models, including maintaining quality service delivery practices and contributing to the continuous improvement cycle

the CRS Australia intranet, which gave access to policy, practices and procedures. As part of ongoing continuous improvement, the intranet was revised and streamlined to reflect current and pertinent information

an organisational library to support case management, organisational research, and NoEs

an active program of research, evaluation and innovation

learning and development strategies and coaching strategies

implementation of the Records Authority issued by the National Archives of Australia and Business Classification Scheme for record keeping, allowing for accurate and descriptive file titling for newly created files.

Asset managementDecisions in relation to asset management were driven by operational requirements and considerations such as life-cycle costs, benefits and risks.

CRS Australia's assets largely comprise leasehold improvements, office equipment and computer software. These assets are locally managed and replaced or upgraded based on business requirements. The centrally controlled asset register is updated as assets are purchased, disposed of or retired. An annual centrally managed stock-take checks that all asset disposals and retirements have been recorded. This year all assets were revalued by professional valuers.

Chapter 6: Financial reportingFINANCIAL OVERVIEWThis section provides a summary of the department's financial performance in 2009-10. Results are shown in the audited financial statements and this summary should be read in conjunction with those statements.

Departmental financial performanceIn 2009-10 the department had an operating surplus of $26.1 million, 3.4 per cent of the income available to it. The result was more than the operating surplus of $4.8 million forecast for 2009-10 in the Portfolio Budget Statements 2010-11, predominantly due to an $8.0 million underspend in the Compensation for Detriment caused by Defective Administration Scheme (CDDA), CRS Australia surplus of $7.0 million, and to delayed activities.

Statement of financial performance

IncomeIn 2009-10 the department received total income of $767.3 million ($697.9 million in 2008-09). Of the $767.3 million, $209.8 million was received as other income predominantly by CRS Australia.

Table 13 shows that in 2009-10 departmental income increased by 9.9 per cent compared to the previous year, predominantly due to increased child support activity. Figure 14 on page 101 shows a comparison of income over the past three years.

ExpensesThe department's expenses in 2009-10 totalled $741.2 million compared to $688.0 million in 2008-09.

The department incurred:

employee expenses of $482.1 million

supplier expenses of $222.6 million

depreciation and other expenses of $36.4 million

income tax equivalent expenses of $0.1 million for CRS Australia.

Table 13 shows that in 2009-10, departmental expenses increased by 7.7 per cent compared to the previous year. Figure 14 on page 101 shows a comparison of departmental expenses over the past three years.

Table 13—Departmental income and expenses, 2008-09 and 2009-10

2008-09

($m)

2009-10

($m)

Change

(%)

Income 697.9 767.3 9.9

Expenses 688.0 741.2 7.7

Figure 14—Departmental income and expenses, 2007–08 to 2009–10

Statement of financial position

EquityThe department's total equity at 30 June 2010 was $182.0 million, representing an increase of $23.3 million over the 30 June 2009 figure of $158.7 million. This was predominantly due to the surplus result for the financial year.

AssetsAt 30 June 2010, the department's assets totalled $362.7 million ($329.6 million at 30 June 2009).

Table 14 on page 102 shows that assets increased by 10.0 per cent in 2009-10 compared to the previous year and Figure 15 on page 102 shows the trend in assets over the past three years. The increase was associated with leasehold improvements and increased appropriation receivable due to delayed activities.

LiabilitiesThe department had total liabilities of $180.7 million at 30 June 2010 ($170.9 million at 30 June 2009). Table 14 shows that liabilities increased by 5.7 per cent in 2009-10 compared to the previous year. This was due in part to higher operating lease liabilities and an increase in staff leave provisions. Figure 15 shows the trend in liabilities over the past three years.

Table 14—Departmental assets and liabilities, 2008-09 and 2009-10

2008-09

($m)

2009-10

($m)

Change

(%)

Assets 329.6 362.7 10.0

Liabilities 170.9 180.7 5.7

ADMINISTERED ITEMSThe department transfers child support payments between separated parents for the support of their children and receives appropriations for expenses incurred in delivering the Income Management Card program.

The department also receives dividends and competitive neutrality payments on behalf of the Australian Government from Australian Hearing. On 1 July 2009, Health Services Australia paid a final dividend of $27.0 million relating to its transfer to Medibank Private. All administered receipts are transferred directly to the Official Public Account.

The Job Capacity Assessments program was transferred to the Department of Education, Employment and Workplace Relations on 1 July 2009.

Figure 15—Departmental assets and liabilities, 2007–08 to 2009–10

AppendicesAppendix A—Occupational health and safetySection 74 of the Occupational Health and Safety Act 1991 (OH&S Act) requires each Australian Government department to include details in its annual report of:

the health and safety management arrangements of the department

initiatives taken during the year to ensure the health, safety and welfare at work of employees and contractors of the department

the health and safety outcomes as a result of initiatives taken during the year

statistics of any accidents or dangerous occurrences during the year that arose out of the conduct of undertakings by the department or authority and that required the giving of notice under section 68 of the OH&S Act

any investigations conducted during the year that relate to undertakings carried on by the employer, including details of all notices given to the employer under sections 29, 46 and 47 of the OH&S Act during the year

such other matter required by guidelines approved on behalf of the parliament by the Joint Committee of Public Accounts and Audit.

DEPARTMENT (INCLUDING THE CHILD SUPPORT PROGRAM, AND EXCLUDING CRS AUSTRALIA)In 2009-10 the department worked to improve overall health and safety across the organisation by:

implementing the Health and Safety Management Arrangements (HSMAs), including ensuring OH&S committees and other consultative arrangements are in place and working effectively

developing and implementing a new OH&S policy framework to support HSMA implementation. This saw the development and endorsement of:

policies to guide decision making— including the framework that outlines the department's OH&S management system

procedures to provide practical instructions and steps required to meet policy and legislative requirements

hazard guidelines to assist risk assessment processes

numerous new report templates and forms to streamline completion and ensure consistency and compliance

developing and implementing a national OH&S plan to focus strategies on improving overall OH&S performance. The plan is reviewed by the national health and safety sub-committee each quarter

coordinating two workshops for rehabilitation case managers and HR officers to build capability, share information and resolve issues, with a particular focus on mental health awareness issues and the management of complex psychological injury cases

conducting quarterly workplace hazard inspections at each site to identify and address any potential OH&S hazards and conduct risk assessments associated with changed business practices and procedures

developing a Building a Healthier DHS Plan to provide a consolidated and integrated approach to achieving a high-performance workplace culture

developing and implementing a wellbeing program to address issues identified from an earlier health survey. Activities included:

providing influenza vaccinations

conducting a ten-week walking challenge

subscribing to an online wellbeing magazine

conducting and promoting seminars and special events such as Mental Health week and Safe Work Week

developing a departmental pandemic plan and HR support plan in response to the H1N1 pandemic

developing an OH&S e-learning module for all staff along with an OH&S training module for supervisors and team leaders

developing an online OH&S incident reporting process to streamline reporting, encourage better incident investigation and support more efficient reporting. The module will be implemented in July 2010.

During 2009-10 the department (including the Child Support Program) had 13 workplace incidents that required notification to Comcare under section 68 of the OH&S Act. No notices were given by or to the department under sections 29, 46, 47 or 68 during the year.

Table 15—Department of Human Services (including the Child Support Program)—workers compensation claims 2008-09 and 2009-10

2008-09 2009-10 Increase (%)

New claims lodged with Comcare (lodged in that financial year regardless of date of injury)

59 59 0

Claims accepted by Comcare (with a date of injury in that financial year)1

23 31 34.8

New claims that incurred five or more days of incapacity (per 1000 full-time equivalent employees)

5.8 7.4 27.6

Total weeks of compensation leave incurred by new and existing claims (per 1000 full-time equivalent employees)

236 259 9.7

1. At 1 July 2010.

CRS AUSTRALIACRS Australia has in place Health and Safety Management Arrangements (HSMA) which were developed in consultation with staff and provide a comprehensive safety management system.

During 2009-10 CRS Australia worked to improve OH&S in a number of ways, including:

monitoring the H1N1 pandemic in conjunction with other Department of Human Services agencies and providing safety advice to all staff via the CRS Australia intranet

implementing a workplace safety check list that was completed with 100 per cent compliance in all offices

introducing monthly reporting on the OH&S induction process with follow up procedures to ensure 100 per cent compliance

introducing follow-up with managers where a staff member has in excess of five days sick leave within one month

promoting Mental Health Week and Safe Work Week via the CRS Australia intranet and through health and safety representatives in each designated work group

reviewing and updating CRS Australia's client aggression policy to embrace Comcare's best practice procedures regarding client aggression

continuing to promote early intervention strategies and procedures to reduce unplanned absences and lower compensation claim rates

conducting training for all managers on Comcare premium, the OH&S Act and the Safety, Rehabilitation and Compensation Act 1988 (SRC Act)

commencing a review of HSMA to be completed late 2010.

During 2009-10 CRS Australia notified Comcare of 59 workplace incidents under section 68 of the OH&S Act. No directions were given under sections 29, 46 or 47. Eighteen compensation claims were lodged with Comcare, of which 11 were accepted.

Table 16—CRS Australia—workers compensation claims 2008-09 and 2009-10

2008-09 2009-10 Change (%)

New claims lodged with Comcare (lodged in that financial year regardless of date of injury)

20 18 -10%

Claims accepted by Comcare (with a date of injury in that financial year)1

13 11 -15%

New claims that incurred five or more days of incapacity (per 1000 full-time equivalent employees)

7 9 +29%

Total weeks of compensation leave incurred by new and existing claims (per 1000 full-time equivalent employees)

340.57 327.56 -4%

1. At 1 July 2010.

Appendix B—Freedom of informationFREEDOM OF INFORMATION REFORMSThe new freedom of information reforms were passed in parliament on 13 May 2010 with the principal objective of promoting a pro-disclosure culture across the Australian Public Service to build a stronger foundation for more openness in government.

Department of Human Services agencies will proactively 'push' information into the public arena, to supplement the current 'pull' approach when customers and journalists pull that information out of Australian Government agencies through FOI requests.

Some of the reforms include:

no fees for FOI applications

no charges for FOI requests for personal information

the ability for FOI applications to be submitted online

a database for non-personal FOI decisions available online and an Information Publication Scheme (IPS) plan to be available on 1 January 2011.

The IPS requires portfolio agencies to publish a range of information on the internet, or advertise how the information can be obtained. The range of information includes operational information held by the agency to assist in exercising powers and functions when making decisions or recommendations affecting customers, as well as any other information that the agency may wish to publish.

The department is required under section 8 of the Freedom of Information Act 1982 (FOI Act) to publish a statement setting out the following:

the department's particulars and functions indicating the decision-making powers and other powers affecting members of the public in relation to those powers

the department's arrangements for persons outside the organisation to participate in policy making or implementation

the categories of documents that the department possesses

the procedures that a member of the public needs to follow to gain access to those documents under the FOI Act.

Information on the annual statistics of FOI requests received by the department can be accessed through the Department of the Prime Minister and Cabinet's website at www.pmc.gov.au.

PARTICULARS AND FUNCTIONSFor particulars and functions of the department, see pages 8-13.

DECISION-MAKING POWERSIn 2009-10 the Secretary of the Department, the Child Support Registrar, the General Manager of CRS Australia and other officers exercised decision-making powers, made payments and undertook delivery of programs under various Acts, or parts of those Acts:

Child Support (Assessment) Act 1989

Child Support Legislation Amendment (Reform of the Child Support Scheme—Initial Measures) Act 2006

Child Support Legislation Amendment (Reform of the Child Support Scheme—New Formula and Other Measures) Act 2006

Child Support (Registration and Collection) Act 1988

Disability Services Act 1986.

ARRANGEMENTS FOR OUTSIDE PARTICIPATIONThe department is open to the views of organisations and individuals, and provides opportunities to contribute to policy development and its implementation. Any organisation or person interested in participating in the department's formulation of policy, or the development of programs to implement a policy, should write to the Minister for Human Services, the Secretary of the Department of Human Services or the General Manager of CRS Australia.

CATEGORIES OF DOCUMENTSThe department holds the following categories of documents:

documents relating to meetings (such as agendas, minutes and reports)

internal administrative records, such as personnel files, staffing and financial records, and office procedures

working files, including departmental correspondence, analysis and advice

documents relating to Child Support Program and CRS Australia's service delivery, including individual case files and papers

government policy documents, including recommendations and decisions

documents related to legal advice given and received, and other legal documents such as transcripts of proceedings

papers relating to new and amending legislation, drafting instructions and draft legislation

media releases and copies of public addresses and presentations

briefing papers and submissions prepared for the Minister for Human Services

copies of questions in the Parliament together with replies and other related correspondence

records of papers prepared for Cabinet and the Federal Executive Council, including submissions and minutes

documents that relate to the department's specific functions, for example finance

tender and contract documents.

More information about the classes of personal information the department holds is available from the Office of the Privacy Commissioner at www.privacy.gov.au/government/digest.

PUBLIC ACCESS TO DOCUMENTSThe department provides various publications, including program and service statistics, to the public. This information may be accessed from the publications webpage of the department's website at www.humanservices.gov.au.

In addition, the department makes information related to the Child Support Program freely available to the public, including child support forms, brochures, CD-ROMS and booklets. Free copies of policy guidelines, procedural instructions, rulings and determinations are also available. Many of these documents may be accessed at www.csa.gov.au.

CRS Australia also makes brochures and pamphlets freely available to the public. Many of these documents may be accessed at www.crsaustralia.gov.au.

PROCEDURE AND CONTACT DETAILS—DEPARTMENT (INCLUDING THE CHILD SUPPORT PROGRAM)The department's contact officer can advise interested persons on FOI matters and discuss the nature and scope of an intended request.

A request for access to documents under the FOI Act must be in writing, should enclose a $30 application fee and state an address in Australia to which notices can be sent.

For a prompt response, applicants should provide as much information as possible about the documents they wish to access. They should also include a telephone number or an email address to allow officers handling their request to contact them if clarification is needed.

Applicants may be liable to pay charges at rates prescribed by the Freedom of Information (Fees and Charges) Regulations. However, in certain circumstances the fee may not be required and will be remitted.

The National FOI Coordinator for the department (including the Child Support Program) can be contacted at:

GPO Box 9815

Sydney NSW 2000

Phone: 1300 559 365

PROCEDURES AND CONTACT DETAILS—CRS AUSTRALIAA request to CRS Australia for access to documents under the FOI Act must be in writing, should enclose a $30 application fee and should state an address in Australia to which notices can be sent. In certain circumstances the fee is not required or can be remitted.

Where people seek documents containing their own information, CRS Australia follows informal guidelines that eliminate the need for a formal FOI application in most cases. An informal request for access to documents can be made either verbally or in writing to the person's rehabilitation consultant.

Information sheets outlining the FOI application process are available for potential applicants. CRS Australia officers who can advise on FOI matters and discuss the nature and scope of an intended request can be contacted through the FOI Coordinator.

FOI Coordinator

CRS Australia

Locked Bag 8720

Canberra ACT 2601

Phone: 02 6211 6900

Fax: 02 621 1 6902

Appendix C—Advertising and market researchSection 311A of the Commonwealth Electoral Act 1918 requires the annual report of each Australian Government department or agency to include a statement setting out particulars of the amounts paid by, or on behalf of, the department or agency during the financial year to advertising agencies, market research organisations, polling organisations, direct mail organisations and/or media advertising organisations.

Department of Human ServicesFor 2009-10 particulars of payments of less than $10 900 (inclusive of GST) are not required. The following tables detail payments of $10 900 or more spent on advertising and market research by the Department (including the Child Support Program) and separately for CRS Australia.

Table 17—Department of Human Services—payments for advertising and market research, 2009-10

Payee Purpose Amount ($)

Advertising agencies

Nil1 -

Market research organisations

Colmar Brunton Market Testing of CD-ROM and Storybook 75 000

Open Mind Research Final Market Research for Child Support Scheme reforms 95 513

Open Mind Research Joint DHS/Centrelink research on Communicating with Families Post SDR (paid by DHS)

145 959

Polling Organisations

Nil -

Direct mail organisations

Payee Purpose Amount ($)

Rothfield Print Management

Provide storage, distribution and printing services for DHS publications (including management of the CSA 1800 call centre and CSA Webmaster order services)

1 253 643

Salmat Document Distribution

Manage document distribution (including CSA customers' monthly statements and CSA customer newsletters)

3 245 238

Media advertising organisations

Adcorp Place non-campaign, non-recruitment advertising 94 730

Adcorp Recruitment advertising 116 877

Telstra Place advertising in the 2010 White Pages Directory (capital cities, regional directories and Telstra White Pages online)

244 449

1. Child Support Program—no advertising agency spend in 2009-10.

Note: All amounts are goods and services tax exclusive. Totals include Net Media Spend, Adcorp Service Charges and CAF (which is remitted to Department of Finance).

CRS AustraliaTable 18—CRS Australia—payments for advertising and market research, 2009-10

Payee Purpose Amount ($)

Advertising agencies

Nil -

Market research organisations

Nil -

Polling organisations

Nil -

Direct mail organisations

Nil -

Media advertising organisations

hma Blaze Non-campaign advertising (non-recruitment) 6901

hma Blaze Recruitment advertising 8216

Payee Purpose Amount ($)

Adcorp Non-campaign advertising (non-recruitment) 12 707

Adcorp Recruitment advertising 113 514

Sensis Yellow Pages print directory advertising 25 745

Telstra White Pages print directory advertising 78 969

Appendix D—Ecologically sustainable development and environmental performanceFollowing the December 2009 announcement of major reform to Australian Government service delivery, integration of enabling service areas of the Human Services portfolio commenced. Environmental management teams from Department of Human Services, Medicare Australia and Centrelink joined together to ensure the portfolio agencies continue to conduct their business in an environmentally responsible manner.

Section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) requires Commonwealth organisations to report annually on their environmental performance and contribution to the principles of ecologically sustainable development (ESD).

All portfolio agencies are committed to:

complying with all relevant environmental legislation and regulations

operating in a manner that minimises environmental impacts and prevents pollution

setting environmental objectives and targets for continuous improvement.

Programs that accord with the principles of ESD— section 516A(6)(a)The department does not administer any programs that have a direct impact on ecologically sustainable development. Its procurement policies, motor vehicle policy and practice of sustainable office management accord with ESD principles. Details of those policies and practices are reported under measures taken to minimise the effect of activities on the environment—Section 516(6)(d) on page 187.

How outcomes contribute to the principles of ESD— section 516A(6)(b)The department's contribution to ESD is the effective delivery of Australian Government services with minimised environmental impact.

The department has developed environmental management strategies to maximise the proportion of renewable materials and energy used to achieve business outcomes and minimise associated waste production through efficient consumption of resources and waste recycling.

DEPARTMENT (EXCLUDING CRS AUSTRALIA)

How activities accord with the principles of ESD— section 516A(6)(a)During 2009-10 the Department of Human Services continued to conduct operations in an environmentally responsible manner. Potential impacts were mitigated through efficient use of resources, effective waste management and pollution prevention. The department continued the development and implementation of an environmental management system that aligns to the

International Standard ISO 14001:2004. Environmental policies, plans and procedures influence the decision-making processes of the agency.

Effect of activities on the environment—section 516A(6)(c)The department's daily operations have an impact on the environment. While carrying out its business, resources such as electricity, paper and water are consumed and waste is generated. The department is committed to managing the effects of its business activities on the environment and improving environmental performance.

Measures taken to minimise the effect of activities on the environment—section 516(6)(d)Environmental management systemThe department's Environmental Management System (EMS) is a tool designed to manage the impacts of the department's business activities on the environment. The system contributes to the department's program outcomes and accords with the principles of ecologically sustainable development.

Implementation of its EMS has generated significant environmental benefits for the department. It has also facilitated better resource allocation and cost savings, and contributed to overall staff satisfaction.

Environmental policies, procedures and guidelinesThe department's policies, procedures and guidelines inform the public and its staff of the way it intends to manage its environmental performance. These policies, procedures and guidelines ensure the environment is considered during business planning and decision-making processes.

2009-10 environmental management objectives and targetsA major product of the EMS is the development of a set of environmental management objectives, targets and performance indicators that form the basis for measuring the effectiveness of yearly environmental management programs. Table 19 outlines the department's environmental management targets for 2009-10.

Table 19—Department of Human Services environmental targets

Measure Target

Energy

Office —tenant light and power ≤ 7500 MJ per person

Office—central services ≤ 400 MJ per m2

Other buildings ≤ 130 MJ per m2

Greenhouse

Total greenhouse emissions ≤ 17 000 CO2-e tonnes

Total greenhouse offsets ≥ 1500 CO2-e tonnes

Blended fuel utilisation Ethanol

Measure Target

E10 utilisation Agency specific1

Paper use

External paper use (tonnes) Agency specific1

Internal A4 copy paper use (tonnes) Agency specific1

Waste

General office landfill waste of total Agency specific1

1. Audits to be undertaken to determine agency specific targets for the Department of Human Services.

Environmentally aware business culture The department is adopting a continuous education program across all locations to train staff on environmental policies and procedures, thereby raising environmental awareness and improving environmental performance.

Internal environment program A network of Green Teams has been established. Green Team members have a local or regional role of communicating and promoting green office awareness practices and overseeing the implementation of environmental recommendations within the business generally.

In practice, this arrangement generates local environmental networks within the various business units of the department's organisational structure. The program is supported by training and awareness activities included in the department's National Induction Program. All new department employees participate in this training.

External—government sector The Department of Human Services continues its role as a member of the Government Agencies Environment Network. The network was established by Centrelink, the Department of Defence and the Australian Taxation Office to drive environmental performance improvements within public agencies. It has as its aims to:

share best practice ideas on environmental management

initiate best practice activities for public agencies

facilitate uptake of ideas within agencies.

The Government Agencies Environment Network has over 30 participating agencies.

Energy Stationary energy use In May 2010 the department rolled out an automatic computer shutdown program for desktop computers across all departmental sites. This initiative is estimated to save up to $135 000 per year on electricity costs and 900 tonnes in carbon dioxide emissions.

The department now has eight Green Lease Schedules in accordance with the Energy Efficiency in Government Operations policy. Each schedule incorporates a signed Energy Management Plan between the department and building owners to achieve required energy targets for a 4.5 star National Australian Built Environment Rating Scheme (NABERS) rating.

Table 20—Stationary energy use for department

Measure Metric 2007-08 2008-09 2009-10

Energy

Stationary energy use GJ 49 9711 51 0671 2

NABERS rated 4.5 or above Sites 0 1 0

Greenhouse

Greenhouse gas emissions tCO2-e 11 613 12 185 2

Greenhouse gas offsets tCO2-e 607 170 2

1. These figures include total stationary energy use for Department of Human Services.

2. Data not available until 31 October 2010.

TransportThe department continues to ensure that fleet vehicles, where fit for purpose, have a Green Vehicle Guide rating of 10.5 or greater. The department's E10 fuel policy remains in place and staff are required to purchase E10 fuel if possible.

PaperThe department has successfully trialled the implementation of default duplex print settings for two departmental sites. When rolled out nationally it is estimated to save the department 12 000 reams of paper per year or potentially some $60 000 per year.

WasteWaste audits have been conducted at 11 departmental sites. Recommendations will be integrated into a national cleaning contract being developed by Jones Lang Lasalle, the department's contracted property management services provider. This measure will provide nationally consistent requirements and related KPI's for the removal and sorting of waste and improve diversion of landfill to the recycling stream.

Greening information and communications technology strategyIn response to the 2008 Gershon Review of information, Communications and Technology (ICT) in Government, the department developed an ICT Energy Management Plan. To improve the environmental performance of its ICT estate the Australian Government initiated the development of a whole-of-government ICT Sustainability Plan. The plan required large government agencies to develop an ICT energy management plan. The department has identified areas for improvement, considered how ICT can enable sustainability and estimated its ICT energy consumption. The department is committed to working towards ICT energy consumption targets and reviewing the plan annually.

Mechanisms for reviewing and increasing the effectiveness of environmental management strategies—section 516A(6)(d)The department continues to implement its environmental management system. Objectives and targets are determined and reviewed on a regular basis.

Table 21—Department of Human Services transport energy

Measure Metric 2007-08 2008-09 2009-10

Transport energy use GJ 2155 1607 1

Cars GVG 10.5 and above % Unavailable 100 90

Ethanol Blend fuel use (year end) % 32 58 1

1 Data not available until 31 October 2010.

Table 22— Department of Human Services materials use

Measure Metric 2007-08 2008-09 2009-10

Materials

Paper use (internal copy) tonnes 90 78 89

Recycled content (copy paper) % 0 50 50

CRS AUSTRALIA

How activities accord with the principles of ecologically sustainable development (ESD)The following sections specifically address the requirements of section 516A(6) of the EPBC Act.

Activities and administration of legislation accord with ESD principlesCRS Australia does not administer any legislation that has a direct impact on ESD principles identified under section 516A(6)(a) of the EPBC Act. In its procurement policies its motor vehicle policy and its practice of sustainable office management it accords with ESD principles. Details of those policies and practices are reported under Measures taken to minimise the effect of activities on the environment.

Activities that affect the environmentCRS Australia leased more than 180 offices nationally, occupying mostly small tenancies. Lease arrangements limited the ability to control environmental issues and to measure outcomes, including energy usage, water and waste.

Policy and procedures are in place for managing energy consumption within the constraints of lease agreements. Energy and waste statistics are reported to the CRS Australia Executive, to the Government Energy Efficiency Team at the Department of Climate Change and Energy Efficiency, and the waste section of the Department of Environment, Water, Heritage and the Arts. This data was released into the public domain. CRS Australia's total greenhouse gas emissions associated with the use of electricity, gas, and vehicles are outlined in Table 23 on page 191.

Measures taken to minimise the effect of activities on the environmentIn 2009-10 CRS Australia focused on effective environmental management. This was reflected in its environmental policy and EMS. The EMS was updated in late 2009 and is based on the international specification ISO 14001:2004, which incorporates environmental considerations in business planning and decision-making. The EMS targets key areas such as energy consumption, fleet vehicles, recycling and increasing environmental awareness.

EnergyAs part of its commitment to reduce energy use and meet government greenhouse gas emission targets, in 2009-10 CRS Australia:

purchased 10 per cent of its energy as certified renewable energy (GreenPower) in New South Wales, the Australian Capital Territory, South Australia and Victoria

encouraged nightly shutdown and the use of sleep modes for computing and other office machinery

continued the automatic shutdown of computers each weekend and started an eiPower Pilot—this will allow power policies to be applied to PCs, so they can be turned off after specified periods of inactivity. The objective of the eiPower software is a reduction in power consumption to meet green standards and to realise cost savings

began to implement virtual data centre servers to reduce the physical footprint and power consumption

continued to replace incandescent lighting with T5 lighting (narrow-diameter fluorescent light tubes) where possible

continued to use timers and sensor switches for lights where possible

commenced trials for the Desktop Faxing Project. The project will involve the transition from physical fax machines to desktop faxing, which will reduce power usage and costs.

Table 23—CRS Australia stationary energy use

Measure Metric 2007-08 2008-09 2009-10

Energy

Stationary energy use GJ 21 636 19 728 1

Greenhouse

Greenhouse gas emissions tCO2-e 6 021 5 765 1

Greenhouse gas offsets tCO2-e 79.44 128.44 1

1 Data not available until 31 October 2010.

TransportAll 220 of CRS Australia's fleet vehicles are subscribed to the Green Fleet Carbon Offset Program. This equates to an offset of 1002.2 tonnes of CO2-e (carbon dioxide equivalent), achieved by planting a total of 3740 biodiverse trees.

Under CRS Australia's motor vehicle policy, metropolitan offices must have a business fleet of four-cylinder cars; the same policy is promoted in regional areas. The use of vehicles that run on alternative fuels such as ethanol- blended fuel is encouraged.

In 2009-10, on average, all vehicles in the fleet exceeded the Government Green Vehicle Guide (GVG) efficiency target, and over 80 per cent rated in the top half.

CRS Australia is also planning to reduce travel through the implementation of Office Communicator video and voice conferencing in selected sites. Currently all staff have the Standard Office Communicator software, which enables Presence and Instant Messaging. An initial user group also received the Enterprise Office Communicator software, which enables video and voice conferencing.

Reducing waste and promoting recyclingThe National Packaging Covenant is aimed at reducing waste and promoting recycling. CRS Australia participated in this initiative and began a rolling replacement of all multifunction devices (MFDs) in the organisation in 2010. All MFDs were defaulted to duplex printing and an overall reduction in the consumption of paper usage was encouraged, along with the use of electronic publishing and communication, and purchasing paper with 50 per cent recycled content where possible.

Table 24—CRS Australia transport energy use

Measure Metric 2007-08 2008-09 2009-10

Transport energy use GJ 11 717 10 923 1

Cars GVG 10.5 and above % 52 64 80

Ethanol blend fuel use (year end) % 11 11 1

1 Data not available until 31 October 2010.

CRS Australia continued its participation in Close the Loop®, a printer and toner cartridge recycling program. All brands of printer consumables are accepted and there is a guarantee that no material from this process is sent to landfill. Mobile phone musters are also conducted as required.

Most CRS Australia offices use commingled recycling and paper and cardboard recycling. It is hard to accurately measure the results because most offices are leased and have shared waste and recycling arrangements. Waste is reported to the Department of Environment, Water, Heritage and the Arts each year using the National Packaging Covenant (NPC) Reporting Tool.

Performance analysisCRS Australia experienced fluctuations in environmental effects between 2008-09 and 2009-10, particularly in the areas of energy and recycling. As CRS Australia operates predominantly in office environments, the greatest benefits can be felt in these areas.

Since 2008-09 there has been a general trend toward increasing energy efficiencies, reducing consumption (where possible), and an increase in recycling throughout the organisation. Though not large in percentage terms, a general increase in environmental awareness and behavioural change has meant that progress is being made.

The amount of printer consumables being recycled has increased slightly, though there has been a move towards the use of multi-functional devices (MFDs) across the organisation to limit the number of printers and copiers required. Conversely, the amount of paper being purchased has increased. This can be largely attributed to changed Disability Employment Service purchaser expectations requiring job seeker plans to be printed more frequently.

Almost all paper in the organisation is now purchased with recycled content, representing an increase of close to 14 per cent since 2007-08. See Table 25.

Environmental awareness campaigns are promoted across the organisation with the aid of the Green Teams. This represents an important contribution in the general trends evident.

Table 25—CRS Australia green procurement

Measure Metric 2007-08 2008-09 2009-10

Materials

Green office consumables % 10.9 14.9 17.7

Paper use (internal copy) tonnes 67.56 55.33 73.61

Recycled content (copy paper) % 86 99.7 97.6

Recycled print consumables (Close the Loop) kg 550 464 482

Mechanisms for reviewing and increasing the effectiveness of measures to minimise the impact of activitiesESD principles are included in the new CRS Australia Strategic Plan 2009-12 and are identified as a key strategy in the national business plan.

The National Environmental Coordinator reviewed and promoted environmental initiatives and assisted with addressing reporting requirements. As well, an Environmental Management Committee was established to coordinate and formulate recommendations to the executive regarding environmental initiatives across the organisation.

Mechanisms to increase the effectiveness of measures to minimise impact on the environment in 2009-10 included raising staff awareness by:

creating an Environmental Management Committee made up of a cross section of CRS Australia staff to provide information and feedback on environmental proposals submitted to the executive. This provides a measure of transparency and staff support when developing new initiatives

developing an online environmental audit that can be used annually for all offices to measure behavioural change in the organisation

promoting the application of eiPower policy to all PCs so they can be turned off automatically after specified periods of inactivity. This will reduce the power consumption for PCs, and is currently being trialled

hosting an online environmental discussion group to implement ideas from staff across Australia

publishing environmental hints, tips and articles on the environmental pages of the intranet site

promoting and participating in external environmental initiatives such as National Recycling Week and Earth Hour 2010

providing online environmental training presentations and information sessions for staff to access at their convenience

providing assistance and advice to the Green Team and other interested staff with regard to environmental activities and requests for information.

The EMS is reviewed annually to assess current initiatives and implement updates.

CRS Australia is also part of the Government Agencies Environmental Network which is an important mechanism for providing and receiving feedback on environmental initiatives.

Appendix E—Commonwealth disability strategyThe Commonwealth Disability Strategy provides a framework to assist Australian Government departments and agencies to meet their obligations under the Disability Discrimination Act 1992. Australian Government organisations are required to report annually on their performance in implementing the strategy.

The department reports its 2009-10 performance against measures identified in the Department of Families, Housing, Community Services and Indigenous Affairs guide to reporting against the Commonwealth Disability Strategy. The department reports against the roles of policy adviser (Table 26), purchaser (Table 27) and provider (Table 28).

Table 26—Department of Human Services (excluding CRS Australia)—policy adviser role

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

New or revised policy/ program proposals assess impact on the lives of people with disabilities prior to decision

Percentage of new or revised policy/ program proposals that document that the impact of the proposal was considered prior to the decision-making stage

The department assesses the impact of new or revised program/policy proposals on the lives of people with disabilities

Maintain current arrangements

Maintain current arrangements

People with disabilities are included in consultation about new or revised policy/ program proposals

Percentage of consultations about new or revised policy/ program proposals that are developed in consultation with people with disabilities

The department consults the Human Services agency responsible for delivering the proposed policy, and where appropriate, consults stakeholders who may be affected by the policy. The process ensures that the service delivery impact of new policies on people living with disabilities is considered, and that targeted communication strategies are developed to support successful service delivery

Maintain current arrangements

Maintain current arrangements

Public announcements of new, revised or proposed policy/ program initiatives

Percentage of new, revised or proposed policy/program announcements

Policy announcements are available on the website in accessible

Maintain current arrangements

Maintain current arrangements

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

available in accessible formats for people with disabilities in a timely manner

available in a range of accessible formats

formats

Time taken in providing announcements in accessible formats

Policy announcements are available on the website in accessible formats in a timely manner

Maintain current arrangements

Maintain current arrangements

Table 27—Department of Human Services (excluding CRS Australia)—purchaser role

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

Publicly available information on agreed purchasing specifications are available in accessible formats for people with disabilities

Percentage of publicly available purchasing specifications requested and provided in:

accessible electronic formats

accessible formats other than electronic

Purchasing and procurement guidelines and specifications are made available on request

Maintain current arrangements

Maintain current arrangements

Average time taken to provide accessible material in:

electronic formats

formats other than electronic

No requests were received beyond suppliers self-accessing information from the department's website

Provide information in a timely manner

Maintain current arrangements

Processes for purchasing goods or services with a direct impact on the lives of people with disabilities are developed in consultation with people with disabilities

Percentage of processes for purchasing goods or services that directly impact on the lives of people with disabilities that are developed in consultation with people with disabilities

No tenders had a direct impact on people with disabilities

Where tenders have direct impact on people with disabilities, the department’s practices

Ensure consultation where practicable

Where practicable, ensure that any purchasing processes that impact on people with disabilities take account of specific

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

include consultation with stakeholders including disability groups

needs and requirements

Purchasing specifications and contract requirements for the purchase of goods and services are consistent with the requirements of the Disability Discrimination Act 1992 (DDA)

Percentage of purchasing specifications for goods and services that specify that tender organisations must comply with the DDA

All tender documents made reference to compliance with relevant Commonwealth legislation, including the DDA

Maintain current arrangements

Maintain current arrangements

Percentage of contracts for the purchase of goods and services that require the contractor to comply with the DDA

All contracts included the requirement that a contractor must meet all requirements as outlined in the DDA

Maintain current arrangements

Maintain current arrangements

Publicly available performance reporting against the purchase contract specifications requested in accessible formats for people with disabilities is provided

Percentage of publicly available performance reports against the contract purchasing specification requested and provided in:

accessible electronic formats

accessible formats other than electronic

Website material complies with the Web Accessibility Guidelines where possible

Maintain current arrangements

Maintain current arrangements

Average time taken to provide accessible material in:

electronic formats

formats other than electronic

No requests were received beyond suppliers self-accessing information from the department's

Maintain current arrangements

Maintain current arrangements

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

website

Complaints/grievance mechanisms, including access to external mechanisms, in place to address concerns raised about provider's performance

Established complaints/grievance mechanisms, including access to external mechanisms, in operation

All tender documents contain specific clauses on complaints handling procedures

Maintain current arrangements

Maintain current arrangements

Table 28—Department of Human Services (excluding CRS Australia)—provider role

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

Providers have established mechanisms for quality improvement and assurance

Evidence of quality improvement and assurance systems in operation

The department has developed and implemented a comprehensive integrated business management system that includes frameworks for managing quality improvement and assurance

New quality assurance and performance measurement frameworks for Job Capacity Assessment services were introduced on 1 July 2008 as an outcome of the Job Capacity Assessment Review

Maintain current arrangements

Maintain current arrangements

Providers have an established service charter that specifies the roles of the provider and consumer and service standards which address accessibility for people with

Established service charter that adequately reflects the needs of people with disabilities in operation

The Child Support Program has a client service charter that specifies the role of the provider and the consumer—this document is available on the CSA website

Maintain current arrangements

Maintain current arrangements

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

disabilities

Complaints/ grievance mechanisms, including access to external mechanisms, in place to address concerns raised about performance

Established complaints/ grievance mechanisms, including access to external mechanisms, in operation

The Child Support Program has a well-established complaint service that includes access to external mechanisms such as the Commonwealth Ombudsman and the Social Security Appeals Tribunal

Information from complaints is fed back to business decision makers to improve service delivery

Maintain current arrangements

Maintain current arrangements

Table 29—CRS Australia—purchaser role

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

Publicly available information on agreed purchasing specifications is available in accessible formats for people with disabilities

Percentage of publicly available purchasing specifications requested and provided in:

accessible electronic formats

accessible formats other than electronic

Average time taken to provide accessible material in:

electronic formats

formats other than electronic

CRS Australia did not receive any requests for purchasing or procurements guidelines to be provided in alternate formats

All contracts included the requirement that a contractor must meet all requirements as outlined in the DDA

100% of all requests for accessible electronic information fulfilled within five working days

100% of all people requesting information in accessible formats (other than electronic) will be advised of the expected delivery date of their preferred format within five working days of the request

Maintain current arrangements

Ensure compliance with Financial Management and Accountability Act 1997

Respond to and deliver on requests for information in accessible formats in the shortest possible time

Processes for purchasing goods or services with a direct impact on the lives of people with disabilities are developed in consultation with people with disabilities

Percentage of processes for purchasing goods or services that directly impact on the lives of people with disabilities that are developed in consultation with people with disabilities

CRS Australia continued to ensure that any purchasing processes that impact on people with disabilities took into account specific needs and requirements

A review of the internal processes for the use of external service providers was conducted by the National Service Delivery Support Team to ensure that all client purchases of goods and services meet legislative requirements and

100% of all proposed purchases assessed as having a direct impact on people with disabilities will be developed in consultation with them and carers or advocates

People with disabilities have high satisfaction levels with consultation about any purchases of goods or services

Maintain current arrangements

All client-related CRS Australia purchasing processes include consultation and assessment with clients where applicable

Link all purchases to the client's program and document the rationale for the purchase, for example, using an Employment Pathway Plan

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

Publicly available information on agreed purchasing specifications is available in accessible formats for people with disabilities

Percentage of publicly available purchasing specifications requested and provided in:

accessible electronic formats

accessible formats other than electronic

Average time taken to provide accessible material in:

electronic formats

formats other than electronic

CRS Australia did not receive any requests for purchasing or procurements guidelines to be provided in alternate formats

All contracts included the requirement that a contractor must meet all requirements as outlined in the DDA

100% of all requests for accessible electronic information fulfilled within five working days

100% of all people requesting information in accessible formats (other than electronic) will be advised of the expected delivery date of their preferred format within five working days of the request

Maintain current arrangements

Ensure compliance with Financial Management and Accountability Act 1997

Respond to and deliver on requests for information in accessible formats in the shortest possible time

the needs of people with a disability

Purchasing specifications and contract requirements for the purchase of goods and services are consistent with the requirements of the Disability Discrimination Act 1992 (DDA)

Percentage of purchasing specifications for goods and services that specify that tender organisations must comply with the DDA

Percentage of contracts for the purchase of goods and services that require the contractor to comply with the DDA

All tender documents made reference to compliance with relevant Commonwealth legislation, including the DDA

All contracts included the requirement that a contractor must meet all requirements as outlined in the DDA

100% of CRS Australia standard contracts to include an explicit reference to compliance with the DDA

All contracts to continue to include the requirement that a contractor must meet all requirements as outlined in the DDA.

Continue to include an explicit clause in all requests for tender standard and non-standard contracts specifying that contractors must comply with the requirements with relevant

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

Publicly available information on agreed purchasing specifications is available in accessible formats for people with disabilities

Percentage of publicly available purchasing specifications requested and provided in:

accessible electronic formats

accessible formats other than electronic

Average time taken to provide accessible material in:

electronic formats

formats other than electronic

CRS Australia did not receive any requests for purchasing or procurements guidelines to be provided in alternate formats

All contracts included the requirement that a contractor must meet all requirements as outlined in the DDA

100% of all requests for accessible electronic information fulfilled within five working days

100% of all people requesting information in accessible formats (other than electronic) will be advised of the expected delivery date of their preferred format within five working days of the request

Maintain current arrangements

Ensure compliance with Financial Management and Accountability Act 1997

Respond to and deliver on requests for information in accessible formats in the shortest possible time

Commonwealth legislation, including the DDA

Continue to provide advice to managers on the need for DDA compliance through the contract management guidelines

Look at opportunities to purchase goods or services from Australia Disability Enterprises as opportunities arise.

Publicly available

Percentage of publicly

Website material complied with Web

100% of requests for

Ensure the closing date for tenders

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

Publicly available information on agreed purchasing specifications is available in accessible formats for people with disabilities

Percentage of publicly available purchasing specifications requested and provided in:

accessible electronic formats

accessible formats other than electronic

Average time taken to provide accessible material in:

electronic formats

formats other than electronic

CRS Australia did not receive any requests for purchasing or procurements guidelines to be provided in alternate formats

All contracts included the requirement that a contractor must meet all requirements as outlined in the DDA

100% of all requests for accessible electronic information fulfilled within five working days

100% of all people requesting information in accessible formats (other than electronic) will be advised of the expected delivery date of their preferred format within five working days of the request

Maintain current arrangements

Ensure compliance with Financial Management and Accountability Act 1997

Respond to and deliver on requests for information in accessible formats in the shortest possible time

performance reporting against the purchase contract specifications requested in accessible formats for people with disabilities is provided

available performance reports against the contract purchasing specification requested and provided in:

accessible electronic formats

accessible formats other than electronic

Average time taken to provide accessible material in:

electronic formats

formats

Accessibility Guidelines where possible

CRS Australia did not release any performance measures or reports against contract purchasing specifications

Performance reports can be made available (in accessible formats) on request

electronic information to be fulfilled within five working days

100% of all people requesting information in accessible formats (other than electronic) will be advised of the expected delivery date of their preferred format within five working days of the request

consider the time taken to supply information in accessible formats, if appropriate and in accordance with the Commonwealth Procurement Guidelines (2005)

Material available on CRS Australia website will comply with Web Accessibility Guidelines where possible

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11

Actions for 2010-11

Publicly available information on agreed purchasing specifications is available in accessible formats for people with disabilities

Percentage of publicly available purchasing specifications requested and provided in:

accessible electronic formats

accessible formats other than electronic

Average time taken to provide accessible material in:

electronic formats

formats other than electronic

CRS Australia did not receive any requests for purchasing or procurements guidelines to be provided in alternate formats

All contracts included the requirement that a contractor must meet all requirements as outlined in the DDA

100% of all requests for accessible electronic information fulfilled within five working days

100% of all people requesting information in accessible formats (other than electronic) will be advised of the expected delivery date of their preferred format within five working days of the request

Maintain current arrangements

Ensure compliance with Financial Management and Accountability Act 1997

Respond to and deliver on requests for information in accessible formats in the shortest possible time

other than electronic

Complaints/ grievance mechanisms, including access to external mechanisms, in place to address concerns raised about provider's performance

Established complaints/ grievance mechanisms, including access to external mechanisms, in operation

All tender documents contained specific clauses on complaint-handling procedures

Maintain current arrangements

CRS Australia's service charter is available online at the CRS Australia website www. crsaustralia. gov.au

Maintain current arrangements

Table 30—CRS Australia—provider role

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11 Actions for 2010-11

Providers have established mechanisms for quality

Evidence of quality improvement and assurance

External auditors reviewed actions undertaken to address the two minor

Maintain quality assurance program to ensure continuous improvement of

Continue implementing the program cycle and use of quality data to ensure the

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11 Actions for 2010-11

improvement and assurance

systems in operation

nonconformities identified in 2008-09 to ensure certification under the Disability Services Standards (DSS) is maintained

An annual review audit to ensure compliance against the DSS was conducted with certification recommended with no nonconformities recommended

CRS Australia continued to implement the Quest for Quality Program cycle, and used the results to improve processes to ensure clients receive the highest standard of service

service provision

Obtain feedback from clients and customers regarding service provision and translate this into service improvement

highest standard of service was provided to:

the DEEWR-funded job seekers with disabilities

clients assessed under the Business Services Wage Assessment Tool program

job seekers who are referred for a Job Capacity Assessment

clients who are referred for a Workplace Rehabilitation Program funded by a Workers Compensation insurer

Continue evaluating quality in service delivery through quality assurance and improvement reviews and analysis of client and customer feedback

Undergo an annual review audit to ensure compliance against the DSS

Providers have an established service

Established service charter that adequately

Through external audit CRS Australia obtained feedback from

CRS Australia staff observe the standards set out in the DEEWR Disability

CRS Australia will obtain feedback from clients on their satisfaction

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11 Actions for 2010-11

charter that specifies the roles of the provider and consumer and service standards which address accessibility for people with disabilities

reflects the needs of people with disabilities in operation

clients on their satisfaction with the information given to them when they commenced services. No updates to resources were required

Interpreter services were available to clients who required assistance to understand the VRS Service Guarantee and Employment and Related Services Code of Practice and the CRS Australia Service Commitment

Information in other languages is available on CRS Australia's website

Employment Services (DES) Service Guarantee and Employment Services Code of Practice in the delivery of DES

CRS Australia's service charter continues to be available online at the CRS Australia website www.crsaustralia. gov.au, which is WC3 compliant for accessibility

Clients are aware of the service charter and its content

with services provided to them

Interpreter services to continue to be made available to job seekers who require assistance to understand the DES Service Guarantee and Employment and Related Services Code of Practice and the CRS Australia Service Charter

Appropriate assistance to be arranged if job seekers have difficulties in understanding the service charter

Office relocations to consider access for clients with particular reference to public transport, accessibility, disability access and facilities

Complaints/ grievance mechanisms, including access to external mechanisms, in place to address concerns raised about performance

Established complaints/ grievance mechanisms, including access to external mechanisms, in operation

An external audit of CRS Australia's complaints mechanism was conducted. Recommendations will be implemented in 2010-11

Six-monthly complaints reports were provided to the Executive

CRS Australia maintains a comprehensive complaints/grievance mechanism which permits access to internal and external mechanisms such as the Administrative Appeals Tribunal, the Commonwealth Ombudsman and the Complaints Resolution and Referral Service

Feedback is actively sought from clients and purchasers

Data collected from audit and complaints (including trends) to be analysed and integrated into the business planning process to improve service delivery

Performance indicator

Performance measure

Performance 2009-10

Goals for 2010-11 Actions for 2010-11

Concerns raised by clients in client feedback questionnaires continued to be monitored at the local level and integrated in the business planning process to improve service delivery

Ongoing review and enhancement of CRS Australia's complaints mechanism

Ensure clients and staff are aware of the complaints process

Ensure all DEEWR- funded job seekers receive a copy of the DEEWR DES Code of practice and the DES programs—your service guarantee at the commencement of a program

Include complaints and appeal process in relevant induction and learning packages

Six-monthly complaints reports to be provided to the Executive

Concerns raised by clients in client feedback questionnaires will be monitored at the local level

Ongoing review and enhancement of CRS Australia's complaints mechanism and resources

Appendix F—Australian National Audit Office activityANAO LIAISONThe Portfolio Audit and Assurance Division works closely with the Australian National Audit Office (ANAO) to develop and coordinate the department's contributions to ANAO audit activities. It also monitors the implementation of recommendations from the ANAO audit reports.

The department has a collaborative and productive relationship with the ANAO and welcomes its audit and assurance activities. It considers the ANAO Better Practice Guides to be useful resources to help improve business practices.

Tabled ANAO audit reports can be found on the ANAO website at www.anao.gov.au. The full report is published, including the recommendations.

Relevant Australian National Audit Office audits tabled 2009-10Report 17 of 2009-10, tabled 17 December 2009—Audits of the financial statements of Australian Government entities for the period ended 30 June 2009.

The preparation of audited financial statements in compliance with the Finance Minister's Orders is a key element of the financial management and accountability regime applicable to Australian Government entities.

The ANAO audit found no significant or moderate issues for the department.

Report 19, tabled 18 December 2009—Child Support Scheme Reforms (CSSR) and improving compliance

The audit assessed how effectively the department, FaHCSIA and Centrelink managed the implementation of stage one of the CSSR and the improving compliance program.

The audit report had six recommendations. The department agreed to all of them.

Report 39, tabled 24 May 2010—Medicare Australia's Administration of the Pharmaceutical Benefits Scheme

The audit examined the effectiveness of Medicare Australia's administration of the Pharmaceutical Benefits Scheme (PBS). The ANAO considered:

Medicare Australia's relationship with the PBS policy agency, the Department of Health and Ageing, and the service delivery policy agency, the Department of Human Services

the management arrangements and processes underpinning Medicare Australia's delivery of the PBS—including the means by which Medicare Australia gains assurance over the integrity of the PBS

how Medicare Australia undertakes its three main responsibilities relating to the delivery of the PBS, namely—approving pharmacies, approving authority prescriptions, and processing PBS claims.

The audit resulted in five recommendations. The department agreed with the recommendations; however, none directly affected the department.

Report 46, tabled 22 June 2010—Child Support Scheme Reforms: Building a Better Child Support Agency (BBCSA).

The audit assessed CSA's effectiveness in managing the implementation of the BBCSA program.

The audit report had six recommendations. The department agreed to all of them.

Recommendations from the two audits on the Child Support Scheme reforms (including Report 19) are being addressed together with the findings of an independent review conducted by David Richmond AO into the appropriateness, design and implementation of current decision-making processes and quality assurance arrangements for CSP. See also Delivering Quality Outcomes Review on page 52.

Report 50, tabled 24 June 2010—Interim phase of the audit of financial statements of major general government sector agencies.

This report presents the results of the interim phase of the 2009-10 financial statement audits of all portfolio departments and other major general government sector (GGS) agencies that collectively represent 95 per cent of the GGS revenues and expenses.

The report concluded that controls were operating satisfactorily to provide reasonable assurance that the department can prepare financial statements free of material misstatement.

Continuing ANAO auditsCRS AustraliaIn June 2010 the ANAO commenced a performance audit on the CRS Australia business operation, its governance and responsiveness to client feedback. The audit will be finalised in 2010-11.

Other than the routine financial statements audits, no audits involving CRS Australia were tabled by the ANAO.

CRS Australia continued to monitor whole-of- government ANAO audit reports to ensure that compliance and best practice were maintained within the organisation.

Appendix G—Commonwealth fraud control guidelines certificationAustralian GovernmentDepartment of Human ServicesFinn Pratt

Secretary

Annual Report 2009 -10 - Fraud Control Certification

In accordance with Guideline 2.8 of the Commonwealth Fraud Control Guidelines 2002 (‘the Guidelines'), issued by the Minister for Justice and Customs pursuant to Regulation I6A of the Financial Management and Accountability Regulations 1997.1 Finn Pratt, Secretary of the Department of Human Services, hereby certify to the Minister for Human Services that I am satisfied that:

fraud risk assessments and fraud control plans have been prepared and comply with the Commonwealth Fraud Control guidelines:

appropriate fraud prevention, detection, investigation and reporting procedures and processes are in place; and

annual fraud data has been collected and reported that complies with the Commonwealth Fraud Control Guidelines.

Finn Pratt

1 July 2010

Appendix H—Staffing statisticsDEPARTMENT OF HUMAN SERVICESAt 30 June 2010, 4584 staffs were employed by Department of Human Services under the Public Service Act 1999. This was an increase of 73 staff or 1.62 per cent since 30 June 2009.

Part-time work participation increased to 17.47 per cent of the workforce. Women comprised 72.47 per cent of all staff. All staff figures are based on headcount at 30 June 2010.

The following tables record staff against the positions they normally occupy, noting that some may be working temporarily in other positions.

Table 31—Department of Human Services—staff by classification and location

Classification ACT NSW Qld SA/NT Tas Vic WA Total

Secretary 1 0 0 0 0 0 0 1

SES Band 3 3 0 0 0 0 0 0 3

SES Band 2 12 0 0 0 0 0 0 12

SES Band 1 27 1 2 3 0 2 1 36

Classification ACT NSW Qld SA/NT Tas Vic WA Total

EL 21 123 14 15 6 2 19 2 181

EL 12 215 60 64 22 13 50 15 439

APS 6 146 169 167 52 26 144 44 748

APS 5 84 152 106 46 23 118 36 565

APS 4 75 469 295 147 109 349 109 1553

APS 3 59 306 217 112 46 222 22 984

APS 2 1 14 20 6 1 11 4 57

APS 1 0 1 0 1 0 2 1 5

Total 746 1186 886 395 220 917 234 4584

1 Executive level 2.

2 Executive level 1.

Table 32—Department of Human Services—ongoing and non-ongoing staff by classification

Classification O N Total

Secretary 1 0 1

SES Band 3 3 0 3

SES Band 2 12 0 12

SES Band 1 35 1 36

EL 2 176 5 181

EL 1 424 15 439

APS 6 734 14 748

APS 5 555 10 565

APS 4 1542 11 1553

APS 3 964 20 984

APS 2 56 1 57

Classification O N Total

APS 1 5 0 5

Total 4507 77 4584

O = Ongoing; N = Non-ongoing

Table 33—Department of Human Services—full-time and part-time staff by classification

Classification FT PT Total

Secretary 1 0 1

SES Band 3 3 0 3

SES Band 2 11 1 12

SES Band 1 35 1 36

EL 2 176 5 181

EL 1 391 48 439

APS 6 663 85 748

APS 5 474 91 565

APS 4 1148 405 1553

APS 3 835 149 984

APS 2 43 14 57

APS 1 3 2 5

Total 3783 801 4584

FT = full-time; PT = part-time

Table 34—Department of Human Services—staff by gender and location

State/Territory Female Male Total

Australian Capital Territory 454 292 746

New South Wales 944 242 1186

Queensland 635 251 886

State/Territory Female Male Total

South Australia/Northern Territory 291 104 395

Tasmania 141 79 220

Victoria 689 228 917

Western Australia 168 66 234

Total 3322 1262 4584

Table 35—Department of Human Services—equity and diversity groups

Location

Indigenous Disability NESB

O N O N O N

Australian Capital Territory 6 0 14 1 56 3

New South Wales 29 0 12 0 62 1

Queensland 19 0 19 0 28 0

South Australia/Northern Territory 5 0 8 0 15 0

Tasmania 5 0 5 0 4 0

Victoria 9 0 15 0 59 0

Western Australia 2 0 2 0 10 0

Total 75 0 75 1 234 4

O = Ongoing; N = Non-ongoing

NESB = Non-English Speaking Background

CRS AUSTRALIAAt 30 June 2010, 2053 staff (including staff on long-term leave) were employed by CRS Australia under the Public Service Act 1999. This is a decrease of 79 staff since 30 June 2009.

The workforce consisted of 1682 (82 per cent) ongoing and 1209 (59 per cent) full-time. Women comprised 83.58 per cent of all staff. The following tables contain summary information on the staffing of CRS Australia, a division of the department.

Table 36—CRS Australia—ongoing staff employed, by gender and employment status, at 30 June 2010

Female Male

Total1PT FT PT FT

Senior Executive Service Band 2 0 1 0 0 1

Senior Executive Service Band 1 0 0 0 2 2

Executive Level 2A 0 0 0 1 1

Executive Level 2B 1 5 1 4 11

Executive Level 1 11 54 0 36 101

Senior Rehabilitation Consultant 46 79 0 16 141

Rehabilitation Consultant Level 2 399 285 19 81 784

Rehabilitation Consultant Level 1 13 38 3 11 65

Australian Public Service Level 6 11 26 2 18 57

Australian Public Service Level 5 24 48 8 26 106

Australian Public Service Level 4 21 76 3 27 127

Australian Public Service Level 3 37 74 0 5 116

Australian Public Service Level 2 84 76 1 5 166

Australian Public Service Level 1 2 0 1 1 4

Total 649 762 38 233 1682

FT = full-time; PT = part-time

1. Totals include 41 per cent part-time.

Table 37—CRS Australia—ongoing staff employed, by location and employment status, at 30 June 2010

NSW Vic Qld WA SA Tas ACT NT

PT FT PT FT PT FT PT FT PT FT PT FT PT FT PT FT

SES 2 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

SES 1 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0

NSW Vic Qld WA SA Tas ACT NT

PT FT PT FT PT FT PT FT PT FT PT FT PT FT PT FT

EL 2A 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

EL 2B 1 2 1 2 0 3 0 1 0 1 0 0 0 0 0 0

EL 1 3 26 1 16 1 24 2 4 3 7 0 3 1 8 0 2

SRC 19 32 13 21 4 16 5 7 4 11 0 5 1 2 0 1

RC 2 157 122 110 76 61 77 30 27 44 38 10 14 3 6 3 6

RC 1 2 19 4 10 2 2 2 3 5 10 0 3 0 1 1 1

APS 6 0 5 2 6 3 21 1 3 2 2 0 0 5 7 0 0

APS 5 16 24 7 21 3 10 2 5 1 4 2 2 1 7 0 1

APS 4 7 27 3 20 6 28 1 7 3 9 1 4 3 7 0 1

APS 3 17 24 12 8 2 23 0 3 5 12 0 1 1 7 0 1

APS 2 39 32 18 18 9 15 8 10 7 3 4 3 0 0 0 0

APS 1 0 0 1 0 0 0 1 0 1 1 0 0 0 0 0 0

Total 261 313 172 198 91 219 52 70 75 98 17 35 15 49 4 13

APS = Australian Public Service; EL = Executive Level; FT = full-time; PT = part-time; RC = Rehabilitation Consultant; SRC = Senior Rehabilitation Consultant; SES = Senior Executive Service

Table 38—CRS Australia—non-ongoing staff employed, by gender and employment status, at 30 June 2010

Female Male

Total1PT FT PT FT

Executive Level 2B 0 0 1 0 1

Executive Level 1 0 0 1 2 3

Senior Rehabilitation Consultant 1 0 0 0 1

Rehabilitation Consultant Level 2 37 28 4 12 81

Rehabilitation Consultant Level 1 18 38 4 9 69

Australian Public Service Level 6 2 0 1 2 5

Female Male

Total1PT FT PT FT

Australian Public Service Level 5 7 8 1 7 23

Australian Public Service Level 4 18 29 2 7 56

Australian Public Service Level 3 6 20 3 5 34

Australian Public Service Level 2 34 40 2 1 77

Australian Public Service Level 1 14 5 1 1 21

Total 137 168 20 46 371

FT = full-time; PT = part-time

1. Totals include 42 per cent part-time and irregular/intermittent staff.

Table 39—CRS Australia—non-ongoing staff employed, by location and employment status, at 30 June 2010

NSW Vic Qld WA SA Tas ACT NT

PT FT PT FT PT FT PT FT PT FT PT FT PT FT PT FT

EL2B 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0

EL 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0

SRC 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0

RC 2 16 14 9 7 7 13 8 2 1 0 0 1 0 0 0 3

RC 1 5 17 9 10 2 11 3 4 2 1 1 1 0 2 0 1

APS 6 1 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0

APS 5 1 3 3 5 1 1 2 3 0 1 0 1 1 2 0 0

APS 4 8 7 3 4 5 17 2 3 2 0 0 2 0 3 0 0

APS 3 3 2 3 3 0 16 1 0 2 2 0 0 0 1 0 1

APS 2 15 13 8 11 4 7 2 5 4 4 1 1 2 0 0 0

APS 1 8 1 0 2 3 3 0 0 2 0 1 0 1 0 0 0

NSW Vic Qld WA SA Tas ACT NT

PT FT PT FT PT FT PT FT PT FT PT FT PT FT PT FT

Total 57 57 37 44 24 70 18 17 13 8 3 6 5 7 0 5

APS = Australian Public Service; EL = Executive Level; FT = full-time; PT = part-time; RC = Rehabilitation Consultant; SRC = Senior Rehabilitation Consultant

Table 40—CRS Australia—equity and diversity groups at 30 June 2010

Total Female Male Indigenous Disability NESB

O N O N O N O N O N O N

NSW 573 114 499 95 75 19 4 1 19 2 101 25

Vic. 371 81 309 65 61 16 0 0 11 5 63 14

Qld 311 94 254 76 56 18 6 3 7 6 23 7

WA 122 35 99 33 23 2 1 0 9 0 22 4

SA 173 21 140 17 33 4 2 0 10 2 31 4

Tas. 52 9 43 5 9 4 0 0 3 2 3 0

ACT 63 12 51 10 13 2 0 0 2 1 10 1

NT 17 5 16 4 1 1 0 1 1 0 2 0

Total 1682 371 1411 305 271 66 13 5 62 18 255 55

O = Ongoing; N = Non-ongoing;

NESB = Non-English Speaking Background

Appendix I—Employee remuneration overviewNON-SENIOR EXECUTIVE SERVICE REMUNERATION

ARRANGEMENTSAs at 30 June 2010, 4500 non-Senior Executive Service employees were covered by the Department of Human Services—Child Support Agency Collective Agreement 2008-11 and 40 were on Australian Workplace Agreements.

DEPARTMENT OF HUMAN SERVICES

Staff pay rangesTable 41 shows the range of job classifications and salary pay range for staff covered by the collective agreement and Australian workplace agreements.

Table 41—Department of Human Services salary ranges for staff covered by the Certified Agreement and Australian Workplace Agreements

Classification Salary range ($)

EL 21 96 802-125 654

EL 11 85 742-105 254

APS Level 6 68 549-76 831

APS Level 5 61 925-67 209

APS Level 4 55 522-60 954

APS Level 3 49 815-55 521

APS Level 2 44 938-48 500

APS Level 1 39 944-42 893

1. Salary ranges include professional officers in equivalent groups.

Table is based on annualised full-time pay rates.

Table 42—Department of Human Services common law contract salary ranges at 30 June 2010

Classification Salary range ($)

SES Band 31 -

SES Band 2 160 000-180 000

SES Band 12 129 480-160 000

1.SES Band 3 salaries have not been included, as this would enable identification of individual packages because of the small number of staff at that level.

2.Salary ranges include professional officers in equivalent groups.

Notes: All SES employees are entitled to the use of private-plated vehicles or cash-out arrangements.

Table is based on annualised full-time pay rates.

Table 43— Department of Human Services—performance pay

Employee groups Employees paid

Amount paid ($)

Average ($)

Range ($)

Senior Executives (incl. CEO)

41 497 989 11 857 2746-34 070

Executive Level 2 53 217 048 4095 795-13 273

Employee groups Employees paid

Amount paid ($)

Average ($)

Range ($)

Executive Level 1 76 243 364 3202 174-9561

APS 6 and below 16 33 261 2079 560-4462

Total 187 991 662 5303 174-34 070

CRS AUSTRALIA

Non-Senior Executive Service remuneration arrangementsTable 44 shows the number of staff covered by the CRS Australia Collective Agreement 2008-11, Australian Workplace Agreements, and other arrangements.

Table 44—CRS Australia—employment arrangements at 30 June 2010

Senior executive service Non-senior executive service

Australian workplace agreement 0 4

Collective agreement 0 2002

Common law contract 3 22

Section 24(1)1 0 422

1. Determination under section 24(1) of the Public Service Act 1999.

2. Employees contained within these numbers have employment conditions underpinned by the Collective Agreement.

Collective agreement 2008-2011—staff pay rangesTables 45 to 48 show the range of job classifications and salary pay range for staff covered by the various agreements.

Table 45—CRS Australia—Collective Agreement salary ranges at 30 June 2010

Minimum ($) Maximum ($)

Executive Level 2A 113 796 113 796

Executive Level 2B 95 320 110 048

Executive Level 1 82 474 91 035

Senior Rehabilitation Consultant 82 450 82 450

Rehabilitation Consultant Level 2 65 106 78 499

Rehabilitation Consultant Level 1 48 158 64 531

Minimum ($) Maximum ($)

Australian Public Service 6 65 106 75 480

Australian Public Service 5 59 736 64 531

Australian Public Service 4 53 665 59 346

Australian Public Service 3 48 158 52 865

Australian Public Service 2 42 227 47 680

Australian Public Service 1 37 425 41 918

Table 46—CRS Australia—Australian Workplace Agreement salary ranges at 30 June 2010

Minimum ($) Maximum ($)

Executive Level 1 82 474 87 322

Rehabilitation Consultant Level 2 65 106 77 532

Australian Public Service Level 6 65 106 81 651

Table 47—CRS Australia—section 24(1) determination salary ranges at 30 June 2010

Minimum ($) Maximum ($)

Executive Level 2A 113 796 113 796

Executive Level 2B 95 320 110 048

Executive Level 1 82 474 98 500

Australian Public Service 6 65 106 75 480

Australian Public Service 5 59 736 64 531

Australian Public Service 4 53 665 59 346

Table 48—CRS Australia—common law contract salary ranges at 30 June 2010

Minimum ($) Maximum ($)

SES Band 1 and Band 21 - -

Executive Level 2B 95 320 110 048

Executive Level 1 82 474 91 035

1. SES Band 1 and 2 salaries have not been included, as this would enable identification of individual packages because of the small number of staff at that level (three SES staff).

Appendix J—Consultancy contractsUnder the Financial Management and Accountability Act 1997 Australian Government departments and agencies must describe their policies for the selection and engagement of consultants and must publish details of all contracts let during the reporting year to the value of $10 000 or more in their annual reports.

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

PRINCIPLESThe Department of Human Services, including the Child Support Program and CRS Australia, follow the Commonwealth Procurement Guidelines and adhere to the principle of achieving value for money by:

encouraging competition by ensuring non-discrimination in procurement and pursuing competitive procurement processes

promoting the efficient, effective and ethical use of resources

making decisions in an accountable and transparent manner.

The use of consultants also reflects the department-wide principles of:

alignment with government strategic direction

innovation

consultation with Human Services agencies to capitalise on purchasing

access by the department and the Human Services agencies to each other's contracts, where appropriate.

SELECTION PROCESSThe Commonwealth Procurement Guidelines (December 2008) allow consultancies to be procured through four types of selection process:

Open tender—a procurement procedure in which a request for tender is published inviting all businesses that satisfy the conditions for participation to submit tenders. Public tenders are generally sought from the Australian Government AusTender internet site.

Select tender—a procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders. This procurement process may only be used under certain defined circumstances.

Direct sourcing—a form of restricted tendering, available only under certain defined circumstances, with a single potential supplier or suppliers being invited to bid because of their unique expertise and/or their special ability to supply the goods and/or services sought.

Panel—an arrangement under which a number of suppliers, usually selected through an open tender process, may each supply property or services to an agency as specified in the panel arrangements. Quotes are sought from suppliers that have pre-qualified on the agency panels to supply to the government. This category includes standing offers and supplier panels where the supply of goods and services may be provided for a predetermined length of time, usually at a prearranged price.

Table 49 on page 219 notes the selection process the department (excluding CRS Australia) used for each contract in 2009-10. Table 50 notes the selection process that CRS Australia used for each contract.

Justification for decisions to use consultancy:

A—skills currently unavailable within agency

B—need for specialised or professional skills

C—need for independent research or assessment.

Table 49—Department of Human Services (excluding CRS Australia)—consultancy services to the value of $10 000 or more let during 2009-10

Reference number

Consultant Name

Description Contract Price ($)

(incl GST)

Selection Process

Justification

06DHS195/A-03

Accenture Australia

Organisational integration and workforce Planning and Change Management

170 780 Panel B

10DHS015 David Richmond Consulting Pty Ltd

Review of the Decision Making and Quality Assurance

160 000 Direct

Sourcing

C

06DHS234/A-05

Ernst & Young

Development of the Debt Improvement Strategy for the Child Support Program

437 000 Panel B

06DHS234/A-04

Ernst & Young

Develop Quality Assurance Framework

132 000 Panel B

08CSA151-01

Greythorn Pty Ltd

Review of the existing Child Support Agency Project Management Framework

24 000 Panel B

10DHS347-17

KPMG Provide high level project assurance for the Service Delivery Reform Program

299 200 Panel B

10DHS183 MyriaD Consultants Pty Ltd

Family violence Project Evaluation and Research

79 130 Direct

Sourcing

B

06DHS214-13

Price Waterhouse Coopers

Development of a financial management and resource allocation framework for the Child

46 200 Panel B

Reference number

Consultant Name

Description Contract Price ($)

(incl GST)

Selection Process

Justification

Support Program

06DHS214-12

Price Waterhouse Coopers

Benefits framework for Reducing Paper Initiative and Outcome and Performance measures framework

270 000 Panel B

07CSA296-04

SMS Consulting Group Ltd

Establishment of program management function

$36 300 Panel B

06DHS244/A-01

The Boston Consulting Group Pty Ltd

Business plan for Service Delivery Reform

1 093 400 Panel C

06DHS244/A-02

The Boston Consulting Group Pty Ltd

Strategic advice on Service Delivery Reform

366 350 Panel C

06DHS244/A-03/B

The Boston Consulting Group Pty Ltd

Business Framework for Service Delivery Reform Program

3 804 618 Panel B

06DHS217/A-08

The Nous Group Pty Ltd

Services to Assist with Organisational Cultural Change

107 290 Panel B

10DHS162-01/A

Thinkplace Development of a Portfolio Strategy for Co-design

307 814 Panel B

08DHS182/A-08

Yellow Edge Pty Ltd

Develop staff engagement philosophy and structured change management approach

71 300 Panel B

08DHS182-07

Yellow Edge Pty Ltd

Change management advice on technical communications functions

44 000 Panel B

Total 7 449 382

Table 50—CRS Australia—consultancy services to the value of $10 000 or more let during 2009-10

Reference Number

Consultant name

Description Contract Price ($)

(incl GST)

Selection Process

Justification

CN1721 WO/2010/03

LKA Group P/L Provision of staff grievance and code of conduct investigative services for CRS Australia

30 000 Panel B

CN1721 WO/2010/02

LKA Group P/L Provision of staff grievance and code of conduct investigative services for CRS Australia

20 000 Panel B

CN1677 NCS International

Certification services to assess CRS Australia against the Disability Services Standards

333 600 Select tender

C

CN1315 WO2366901

Quality Management Solutions P/L

Provision of staff grievance and code of conduct investigative services for CRS Australia

44 103 Panel B

CN1315 WO2358822

Quality Management Solutions P/L

Provision of staff grievance and code of conduct investigative services for CRS Australia

34 340 Panel B

CN1303 WO2443025

IFocus P/L Provision of advice for search engine optimisation and web improvements for CRS Australia

27 720 Select tender

C

Total 489 763

Appendix K—Resource statementsTable 51—Agency resource statements 2009-10

Actual available appropriation for 2009-10 $'000

Payments made 2009-10$'000

Balance remaining $'000

Ordinary annual services1

Prior year appropriation

Departmental appropriation

s31 relevant agency receipts

(a)

209 393

557 508

246 782

(b)

38 753

496 051

233 104

(a) - (b)

170 640

61 457

13 678

Total 1 013 683 767 908 245 775

Administered expenses1

Outcome 1 8193 2499

Total 8193 2499

Total ordinary annual services A 1 021 876 770 407

Other services2

Departmental non-operating

Prior year appropriations 6340 6340

Previous years' outputs 7779 7779 0

Total 14 119 7779 6340

Total other services B 14 119 7779

Total available annual appropriations and payments 1 035 995 778 186

Special appropriations

Special appropriations limited by criteria/ entitlement

Child Support (Registration and Collection) Act 1988

Section 77 - unremitted deductions 66 669

Actual available appropriation for 2009-10 $'000

Payments made 2009-10$'000

Balance remaining $'000

Section 78 - unexplained remittances 0

Total special appropriations C 66 669

Special Accounts

Opening balance 55 789

Appropriation receipts3 68 297

Non-appropriation receipts to Special Accounts 1 031 473

Payments made 1 101 987

Total Special Account D 1 155 559 1 101 987

Total resourcing and payments

A+B+C+D 2 191 554 1 946 842

Less appropriations drawn from annual or special appropriations above and credited to special account 1628 66 669

Total net resourcing and payments for Department of Human Services 2 189 926 1 880 173

1. Appropriation Bill (No.1) 2009-10 and Appropriation Bill (No.3) 2009-10

2. Appropriation Bill (No.2) 2009-10

3. Appropriation receipts from Department of Human Services annual and special appropriations for 2009-10 included above

Table 52—Expenses and resources for Outcome 1

Outcome 1: Informed government decisions on, and access to, social, health and child support services for Australians through policy development and advice, and the coordination and delivery of services.

Actual available appropriation for

2009-10 *

$'000

Payments made 2009-

10

$'000

Balance remaining

$'000

(a) (b) (a) - (b)

Program 1.1: Human Services

Administered expenses Ordinary Annual Services (Appropriation Bill No. 1) 3966 3207 759

Departmental expenses

Ordinary annual services (Appropriation Bill No. 1) 557 508 508 081 49 427

Revenues from independent sources (Section 31) 202 811 233 104 -30 293

Expenses not requiring appropriation in the Budget year -4328 0 -4328

Total for Program 1.1 759 957 744 392 15 565

Program 1.2: Child Support

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 1438 1619 -181

Special appropriations 71 933 66 669 5264

Special Accounts 1 055 260 1 089 220 -33 960

Expenses not requiring appropriation in the budget year 96 506 69 191 27 315

Total for Program 1.2 1 225 137 1 226 699 -1562

Outcome 1 Totals by appropriation type

Administered Expenses

Ordinary annual services (Appropriation Bill No. 1) 5404 4826 578

Special appropriations 71 933 66 669 5264

Special Accounts 1 055 260 1 089220 -33 960

Expenses not requiring appropriation in the budget year 96 506 69 191 27 315

Departmental expenses

Ordinary annual services (Appropriation Bill No. 1) 557 508 508 081 49 427

Revenues from independent sources 202 811 233 104 -30 293

(Section 31)

Expenses not requiring appropriation in the Budget year -4328 0 -4328

Total expenses for Outcome 1 1 985 094 1 971 091 14 003

2008-09 2009-10

Average Staffing Level (number) 5332 5724

* As published in the Portfolio Budget Statements 2010-11 page19.

Appendix L—Corrections to errors in the 2008-09 annual reportNo errors were reported for the Department of Human Services and CRS Australia 2009-10 annual report.

Appendix M—Compliance index

Reference in Annual Report Guidelines

Part of report Description Requirement Page number(s)

in report

A.4 Letter of transmittal Mandatory iii

A.5 Table of contents Mandatory vii

A.5 Index Mandatory

A.5 Glossary Mandatory 232

A.5 Contact officer(s) Mandatory ii

A.5 Internet home page address and Internet address for report

Mandatory ii

9.1 Review by Secretary

Review by departmental secretary

Mandatory 2-4

9.2 Summary of significant issues and developments

Suggested 2-4

9.2 Overview of department's performance and financial results

Suggested 4, 100-102

Reference in Annual Report Guidelines

Part of report Description Requirement Page number(s)

in report

9.2 Outlook for following year Suggested 4

9.3 Significant issues and developments - portfolio

Portfolio departments— suggested

2-4, 6-7, 24-27

10 Departmental Overview

Overview description of department

Mandatory 8-13

10.1 Role and functions Mandatory 8-10

10.1 Organisational structure Mandatory 12-13

10.1 Outcome and program structure

Mandatory 11

10.2 Where outcome and program structures differ from PB Statements/ PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change

Mandatory No change

10.3 Portfolio structure Portfolio departments—mandatory

5-6

11.1 Report on Performance

Review of performance during the year in relation to programs and contribution to outcomes

Mandatory 16-63

11.1 Actual performance in relation to deliverables and KPIs set out in PB Statements/PAES or other portfolio statements

Mandatory 16-63

Performance of purchaser-provider arrangements

If applicable— suggested

63

11.1 Where performance targets differ from the PBS/PAES, details of both former and

Mandatory 22-23

Reference in Annual Report Guidelines

Part of report Description Requirement Page number(s)

in report

new targets, and reasons for the change

11.1 Narrative discussion and analysis of performance

Mandatory 16-63

11.1 Trend information Mandatory 16-63

11.1 Significant changes in nature of principal functions/services

Suggested 6-7, 24-27

11.1 Factors, events or trends influencing departmental performance

Suggested 16-63

11.1 Contribution of risk management in achieving objectives

Suggested 74-75, 80

11.1 Social justice and equity impacts

Suggested 86, 93

11.2 Performance against service charter customer service standards, complaints data, and the department's response to complaints

If applicable— mandatory

16-17, 24-33, 41-53,

60-63

11.3 Discussion and analysis of the department's financial performance

Mandatory 100-102

11.3 Discussion of any significant changes from the prior year or from budget.

Suggested 2-4, 6-7, 24-27, 100

11.4 Agency resource statement and summary resource tables by outcomes

Mandatory 221-223

11.5 Developments since the end of the financial year that have affected or may significantly affect the department's operations or financial results in future

If applicable— mandatory

100-102

Reference in Annual Report Guidelines

Part of report Description Requirement Page number(s)

in report

Management Accountability

66-97

12.1 Corporate Governance

66-71

12.1 Statement of the main corporate governance practices in place

Mandatory 66, 69

12.1 Names of the senior executive and their responsibilities

Suggested 6, 12-13

12.1 Senior management committees and their roles

Suggested 66-70

12.1 Corporate and operational planning and associated performance reporting and review

Suggested 8-9

12.1 Approach adopted to identifying areas of significant financial or operational risk

Suggested 30, 41, 60, 69, 70, 74-75, 80, 88

12.1 Agency heads are required to certify that their agency comply with the Commonwealth Fraud Control Guidelines.

Mandatory 206

12.1 Policy and practices on the establishment and maintenance of appropriate ethical standards

Suggested 77, 81

12.1 How nature and amount of remuneration for SES officers is determined

Suggested 85, 90-91, 215

12.2 External Scrutiny Significant developments in external scrutiny

Mandatory 71-74, 78-79

12.2 Judicial decisions and decisions of administrative

Mandatory 71-73, 78-79

Reference in Annual Report Guidelines

Part of report Description Requirement Page number(s)

in report

tribunals

12.2 Reports by the Auditor-General, a Parliamentary Committee or the Commonwealth Ombudsman

Mandatory 71-72, 78-79, 215

12.3 Management of Human Resources

Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

Mandatory 84-93

12.3 Workforce planning, staff turnover and retention

Suggested 86-87, 91-92

12.3 Impact and features of enterprise or collective agreements, determinations, common law contracts and AWAs

Suggested 84-85, 90-91

12.3 Training and development undertaken and its impact

Suggested 87, 92-93

12.3 Occupational health and safety performance

Suggested 87-88, 92, 178-180

12.3 Productivity gains Suggested 85, 90-91

12.3 Statistics on staffing Mandatory 84, 90, 207-214

12.3 Enterprise or collective agreements, determinations, common law contracts and AWAs

Mandatory 84-85, 90-91, 215-217

12.3 Performance pay Mandatory 85, 91

12.4 Assets management

Assessment of effectiveness of assets management

If applicable— mandatory

93-95, 96-97, 102

12.5 Purchasing Assessment of purchasing against core policies and principles

Mandatory 93-94, 96

12.6 Consultants A summary statement of new Mandatory 94, 96, 218-

Reference in Annual Report Guidelines

Part of report Description Requirement Page number(s)

in report

consultancy services contracts let during the year and their total actual expenditure; ongoing consultancy contracts and their total actual expenditure

220

12.7 Australian National Audit Office Access Clauses

Absence of provisions in contracts allowing access by the Auditor- General

Mandatory 95

12.8 Exempt contracts Contracts exempt from the AusTender

Mandatory Nil

12.9 Commonwealth Disability Strategy

Report on performance in implementing the Commonwealth Disability Strategy

Mandatory 194-205

13 Financial statements

Financial statements Mandatory 103-174

Other Information

14.1 Occupational health and safety (section 74 of the Occupational Health and Safety Act 1991)

Mandatory 87-88,

92-93,

178-180

14.1 Freedom of Information (subsection 8(1) of the Freedom of Information Act 1982)

Mandatory 72-72, 79, 181-183

14.1 Advertising and Market Research (Section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory 184-186

14.1 Ecologically sustainable development and environmental performance (Section 516A of the Environment Protection and Biodiversity Conservation

Mandatory 74, 79, 186-193

Reference in Annual Report Guidelines

Part of report Description Requirement Page number(s)

in report

Act 1999)

14.2 Other Grant programs Mandatory 78, 82

14.3 Correction of material errors in previous annual report

If applicable— mandatory

224

F List of requirements Mandatory 225-228

ReferencesGlossary

Administered items Revenues, expenses, assets and liabilities that the government controls, but which an agency or authority manages on the Commonwealth's behalf.

Appropriation An amount of public moneys parliament authorises for spending for a particular purpose.

AusTender The Australian Government's web-based procurement system, which provides centralised access to all publicly available approaches to market, multi-use lists, annual procurement plans and reported contracts.

Australian workplace agreement

An individual written agreement between an employer and an employee about the terms and conditions of employment, made under the Workplace Relations Act 1996.

Average staffing level (ASL)

The average number of employees receiving salary or wages (or compensation in lieu of salary or wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

Collective agreement

A collective agreement relating to employment conditions made directly between an employer and a group of employees.

Commonwealth Procurement Guidelines

The Commonwealth Procurement Guidelines establish the core procurement policy framework and articulate the government's expectations for all FMA Act agencies and their officials when performing duties related to procurement.

NABERS NABERS is a voluntary environmental rating system for office premises. NABERS ratings for offices include NABERS Energy (previously Australian Building Greenhouse Rating), NABERS Water, NABERS Waste and NABERS Indoor Environment.

Non-ongoing staff member

A person engaged as an Australian Public Service (APS) employee under subsection 22(2)(b) or 22(2)(c) of the Public Service Act 1999.

Ongoing staff member

A person engaged as an ongoing APS employee under subsection 22(2)(a) of the Public Service Act 1999.

Key performance indicators

These are financial and non-financial measures used to help define and evaluate an organisation's success. An indicator is usually selected on the basis of relevance as a measure of some aspect of a specific project or operation.

Outcome An outcome is the intended result, consequence or impact of government actions on the Australian community.

Policy departments Australian Government policy departments are responsible for developing and implementing policies and programs for the Australian community. Centrelink and Medicare Australia deliver payments and services on behalf of a number of Australian Government policy departments and agencies.

Portfolio agencies Different government agencies which are accountable to the same minister.

Portfolio Budget Statements

Budget-related paper detailing Budget initiatives and explanations of appropriations specified by outcome and program by each agency within a portfolio.

Programs Australian Government programs deliver benefits, services or transfer payments to individuals, industry/business or the community as a whole and are the primary vehicles for government agencies to achieve the intended results of their outcome statements.

Shortened forms

AAOs Administrative Arrangements Orders

ABS Australian Bureau of Statistics

AFCCRA Australian Financial Counselling and Credit Reform Association

AGIMO Australian Government Information Management Office

ANAO Australian National Audit Office

APS Australian Public Service

APSC Australian Public Service Commission

ASIC Australian Securities Investment Commission

ATO Australian Taxation Office

AWA Australian Workplace Agreement

CEO Chief Executive Officer

CHAS Customers Having a Say

COAG Council of Australian Governments

CSA Child Support Agency

CSDI Commonwealth Spatial Data Integration

CSP Child Support Program

DEEWR Department of Education, Employment and Workplace Relations

DES Disability Employment Services

DEWHA Department of Environment, Water, Heritage and the Arts

DHS Department of Human Services

EMS Environmental Management System

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

ESD ecologically sustainable development

FaHCSIA Department of Families, Housing, Community Services and Indigenous Affairs

FAO Family Assistance Office

FAS First Assistant Secretary

FMA Act Financial Management and Accountability Act 1997

FOI Act Freedom of Information Act 1982

FRAL Family relationship advice line

FRCs Family Relationship Centres

GA Geosciences Australia

GIST geo-demographic interactive simulation tool

GVG Government Green vehicle Guide

HSMA Health and Safety Management Arrangements

ICT Information and Communication Technology

IDC Interdepartmental Committee

IPS Information Publication Scheme

JCAc Job Capacity Assessments and Job Capacity Account services

MFDs multifunction devices

MoU Memorandum of Understanding

NGO non-government organisation

NoE Networks of Excellence

NPC National Packaging Covenant

NRMT National Referral Management Team

OH&S Act

Occupational Health and Safety Act 1991

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PMF Program Management Framework

PPL paid parental leave

RAP Reconciliation Action Plan

SDR service delivery reform

SEIFA socio-economic indexes for areas. An ABS rating for locations based on a variety of socio-economic factors

SES Senior Executive Service

SRC Act Safety, Rehabilitation and Compensation Act 1988

SSAT Social Security Appeals Tribunal

TRIP tax refund intercept payment

VRS vocational rehabilitation services

ContactsDEPARTMENT OF HUMAN SERVICES

Department of Human Services

For enquires about the policy of service delivery, or the coordination of services across the Human Services portfolio.

Telephone: (02) 6223 4400 (Switchboard)

Fax: (02) 6223 4499

Email: enquiries@humanservices.gov.au

Website: www.humanservices.gov.au

Street address: 65 Canberra Avenue Griffith ACT 2603

Postal address: PO Box 3959 Manuka ACT 2603

ABN: 90 794 605 008

HUMAN SERVICES AGENCIES

Child Support Agency

Enquire over the phone or online, locate your nearest CSA office and provide feedback on the CSA website or service you received.

Within Australia 131 272 (Local call charge excluding mobile and public phones)

Within New Zealand 0800 440 953 (freecall)

From other countries* +61 131 272 or

+61 3 6216 0864

(International call charges apply)

Teletypewriter (TTY) 1800 631 187 (For people with hearing and/or speech difficulties)

Call recordingMost calls to and from CSA are now monitored and recorded for quality assurance purposes, to improve customer service and increase confidence in accountability.

CSA also uses call recording to review customer interactions when investigating and resolving customer complaints or reviewing objections. If you choose not to have your conversation recorded, visit us face-to- face, write to us, or use our secure online service at www.csaonline.gov.au.

CRS AustraliaTo request information on CRS Australia's services', make a referral, or provide feedback, call 1800 277 277 to be connected to your nearest office or visit www.crsaustralia.gov.au.