Contents
- Part 1 Executive Summary
- Part 2 Performance reporting
- Part 3 Corporate governance and accountability
- Part 4 Appendices
- Part 5 Financial Management
Annual Report 2007–2008
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Annual Report 2007–2008
Annual Report 2007–2008 » Chapter 1: Secretary's Review
This has been a year of significant change for FaHCSIA. Australia’s fifth change of government in 58 years has brought with it new ministers, new functions and new approaches.
Machinery of government changes brought additions to the portfolio of Community Development Employment Projects (CDEP) program, Disability Support Pension, Indigenous Business Australia and the Equal Opportunity for Women in the Workplace Agency. The key responsibilities and functions relating to early childhood policy, child care policy and programs, and the majority of youth programs and policy functions moved to the Department of Education, Employment and Workplace Relations.
I would like to thank and praise FaHCSIA staff for their professionalism in managing this year of change. A caretaker period always presents a challenge for departments to maintain business whilst preparing for the range of possible outcomes that an election may bring. Throughout the pre and post election environments, which placed high demand on the Department, we excelled in providing high quality support for the incoming Government.
The Government brought a range of important election commitments that have directly impacted on the work of this Department and we have given a high priority to implementing these commitments without delay, at the same time ensuring that we do this work to a very high standard.
During this year we undertook a major planning exercise to help us improve the way we do our business. This led to the development of a new Strategic Framework in which we have revised our purpose, objectives, priorities and values.
Significant efforts have also been made in improving our financial management. We have addressed the majority of our outstanding Australian National Audit Office findings, and the Department has no Category ‘B’ findings, as at 30 June 2008.
The Department received awards for our continued commitment to performance reporting, including the Institute of Public Administration Australia’s Gold and Online Awards and a Bronze Award from the Australasian Reporting Awards.
During the last 12 months, significant IT projects were delivered to support the work of the Department, including the development and implementation of the new Electronic Register of Indigenous Corporations for the CATSI Act. We continued to operate and support the Child Care Management System on behalf of DEEWR, which commenced live payments on 4 February 2008 and had transitioned over 1,200 child care services by the end of June 2008.
Evidence is fundamental to our work, and the Government has reinforced the importance of evidence‑based policy in the work that it does. As a key source of advice on social policy issues to the Australian Government, FaHCSIA continues to invest in building our evidence base with strategic investments in research, evaluation and data.
In May 2008, I was given the task of leading the comprehensive review of Australia’s pension system, a significant part of the Government’s broader review of Australia’s Future Tax System. This is an opportunity to review the financial security of seniors, carers, and people with disability. With responsibility for the Disability Support Pension joining the Department, we are able to more comprehensively address the system‑wide issues facing pensioners. Following the Federal Election, the Department implemented a number of enhancements to a range of payments, further helping people who are disadvantaged due to circumstances beyond their control.
There are a number of other review activities that are taking place across the Government that will influence the Department’s agenda. These reviews include: Program by Program, the Northern Territory Emergency Response (NTER), CDEP and Discretionary Grants.
Improving outcomes for Indigenous Australians is a high priority for the Government and FaHCSIA has a key role in coordinating and delivering Indigenous‑related programs. The implementation of the NTER has further increased our responsibilities in this area and significant progress has been made in securing the safety of children and the future of families in the Northern Territory. The Department is currently moving into the review phase of this process, which will enable us to understand the impact of the NTER and the lessons we can take to future activities.
The 2008–09 Budget introduced a number of measures addressing the Council of Australian Governments (COAG) targets for Closing the Gap in Indigenous disadvantage. These targets have set the framework for significant development across all jurisdictions in Indigenous health, education and employment. With the Department now responsible for the CDEP program, we are able to have a real impact on how Indigenous employment programs can be configured to support the efforts of our other Indigenous programs.
The past year has also seen renewed efforts to combat homelessness and improve housing affordability. In May 2008, we released the Green Paper Which Way Home? A New Approach to Homelessness. This preliminary paper coincided with a series of community consultations from which the Government will establish a national plan of action to 2020, set for release in September 2008. This emphasis on housing is underpinned by recent movements towards a National Affordable Housing Agreement with states and territories.
Indeed, Commonwealth–state relations are a feature of our activities in housing, Indigenous affairs and disability. The Government’s agenda of reform will see new ways of doing business in these areas. The reforms are expected to result in increased flexibility for the use of resources, improved collaborative working arrangements and increased accountability. FaHCSIA has been working intensively to develop these reforms.
The new Government is firmly committed to social inclusion and aspires to create a fair and inclusive society where all Australians have the opportunity to access services, find meaningful employment, connect with others, have their voices heard, and have the capacity to deal effectively with adverse circumstances as they occur throughout their lives. The commitment to social inclusion presents us with opportunities to address entrenched disadvantage and it is informing our activities across a wide range of policy areas.
FaHCSIA’s responsibility for people with disability and carers has driven a number of significant activities, including a review of the effectiveness of Carer Payment (child) in providing a safety net for families of children with profound disability or severe medical condition.
In recent years, child support reform has been a key aspect of the Department’s work. This year, FaHCSIA has been working towards implementing the third phase in the Child Support Scheme reforms to commence on 1 July 2008, building on family law reform to encourage shared parenting and reduction of conflict.
FaHCSIA is also leading the Government’s work in addressing issues around children at risk from child abuse and neglect. We released a discussion paper Australia’s children: safe and well—a national framework for protecting Australia’s children in May that was used as a basis for consultation to develop the National Child Protection Framework. The framework will be presented to COAG at the end of 2008.
The Government’s agenda for reform will continue to demand a high degree of responsiveness from across the public sector. FaHCSIA’s capacity to respond quickly and effectively to major change is underpinned by the quality of our leadership and staff and our genuine commitment to improving the lives of Australians.
Dr Jeff Harmer
The delivery of a National Apology to Australia’s Indigenous Peoples by the Prime Minister on 13 February 2008 highlighted the Government’s commitment to reconciliation. Many of FaHCSIA’s responsibilities in Indigenous affairs support this commitment.
The Department’s work in Indigenous affairs is guided by the COAG Closing the Gap targets for reducing Indigenous disadvantage, agreed on in December 2007 and March 2008. The COAG commitments provide the basis for agreement on a strategic direction across jurisdictions, covering areas including health, education, employment and housing.
The Australian Government and state and territory governments are also working together to develop a national framework for reporting expenditure on services to Indigenous Australians.
Within the Government, a number of whole‑of‑government arrangements and structures have remained in place. At the national level, the Secretaries’ Group on Indigenous Affairs continues its role of leading the whole‑of‑government work across Commonwealth agencies in the development of policy advice and implementation of programs.
A new model of cooperation between governments has been developed to allow for more effective working arrangements. COAG has established a number of working groups, each chaired by an Australian Government Minister, with senior departmental officials from the states and territories acting as deputies.
Four of these working groups are key to the work on Indigenous affairs:
The Closing the Gap targets address life expectancy, literacy and numeracy, child mortality, employment, access to early childhood education and high school attainment amongst Indigenous Australians.
In April 2008, the Prime Minister made a commitment to report to Parliament on the first sitting day of each year on progress towards closing the gap between Indigenous and non‑Indigenous Australians.
The Northern Territory Emergency Response (NTER) has made significant progress in 2007–08. Early signs of benefits are being seen in areas such as community safety, income management, child health, education and housing.
The 12 month review of the NTER will help to build on the positive steps of the first year and ensure that it continues to deliver benefits for Indigenous children, families and communities.
Following the change of government, the Community Development Employment Projects (CDEP) program became the responsibility of this portfolio. In May 2008, a discussion paper titled Increasing Indigenous Economic Opportunities was released. This was followed by nearly 40 public consultation sessions in urban and regional centres and 18 remote community visits. Consultations were also held with employers, industry and unemployed Indigenous people around the country. The paper outlined the principles of reform for the CDEP program.
The review of the Community Housing and Infrastructure Program (CHIP) provided a basis for much needed reform in Indigenous housing throughout 2007–08. In 2008–09, CHIP is being replaced by the Australian Remote Indigenous Accommodation (ARIA) program.
The ARIA program is being used to provide construction, repair and maintenance of housing stock in remote locations across Australia where Indigenous housing need is greatest.
In 2007–08, FaHCSIA implemented a number of Budget measures to assist senior Australians.
Bonus payments of $500 were made to seniors. The Utilities Allowance was increased to $500 a year (for singles or eligible couples combined) and was extended to recipients of Disability Support Pension, Carer Payment and a range of other payments.
The Seniors Concession Allowance was increased to $500, while the Telephone Allowance was also increased to $132 a year (for singles or eligible couples combined) for seniors, carers and people with disability receiving income support who have a home internet connection.
FaHCSIA implemented the halving of the pension assets test taper, as part of the Better Superannuation reforms, and a number of other changes to help seniors, including enhancements to the Pension Bonus Scheme.
In 2007–08, FaHCSIA undertook a range of activities to assist people with disability and their carers. These activities aimed to enhance support options, as well as provide opportunities for people with disability to find employment and increase their participation in society.
Activities included providing capital funding for supported accommodation, establishing the Disability Investment Group, increasing employment opportunities, hosting the National Disability Awards, and assisting in developing the National Mental Health and Disability Employment Strategy.
FaHCSIA also successfully negotiated for state and territory governments to provide $901 million in additional funding for disability services on top of the Government’s $901 million in funding under the Commonwealth State Territory Disability Agreement for accommodation, respite and in-home care. In total, the $1.8 billion in funding will deliver over 24,800 new places in disability services.
FaHCSIA is enabling increased access to appropriate services for children with Autism Spectrum Disorders and their families. From July 2008, FaHCSIA will implement a number of initiatives under the Helping Children with Autism package across the nation. These will relate to education and support for families and carers and increased access to early intervention programs for children aged zero to six.
In 2007–08, FaHCSIA implemented the Government’s income support changes to further assist carers.
On 7 February 2008, the Minister for Families, Housing, Community Services and Indigenous Affairs, Jenny Macklin, released the Carer Payment (child) Review Taskforce’s report titled Carer Payment (child): A New Approach. This report examined the effectiveness of support to carers of children with a severe disability or medical condition.
Lump‑sum bonus payments were provided to eligible carers who receive Carer Payment or Carer Allowance, a Health Care Card to ex‑Carer Allowance (child) students aged 16–25 years, and an annual Child Disability Assistance Payment of $1,000 to recipients of Carer Allowance who are caring for a child with disability under the age of 16.
FaHCSIA’s mental health initiatives, under the COAG National Action Plan on Mental Health 2006–11, include the Personal Helpers and Mentors Program, the Mental Health Respite Program and the Mental Health Community Based Program. In 2007–08, the first phases of these initiatives were successfully implemented by the Department.
Considerable progress has been made with other portfolios and jurisdictions in the improved integration of services, treatment and community support programs. The programs enhance family and community resilience, increase the level of social inclusion for individuals, and link people with the range of assistance they require, including housing and drug and alcohol services.
FaHCSIA continues to coordinate the Government’s responsibilities on issues affecting women. A National Council was established to oversee the development of a National Plan to Reduce Violence against Women and their Children. A draft plan will be delivered in December 2008.
In February 2008, the Government asked the Productivity Commission to examine models to improve support for parents with new born children. A key focus of the inquiry is on examining the provision of paid maternity, paternity and parental leave. The Productivity Commission’s final report, due in February next year, will address the cost effectiveness of options and impacts on families and business and interactions with the social security and tax systems.
During 2007–08, the Department contributed to addressing the issues faced by women through a number of activities. These included preparing Australia’s report on the implementation of the United Nations Convention on the Elimination of all forms of Discrimination Against Women, representing Australia at the APEC Women Leaders’ Network and Gender Focal Point Network meetings in May 2008, and leading the Australian Government’s delegation to the annual meeting of the UN Commission on the Status of Women.
In May 2008, the Minister launched the discussion paper, Australia’s children: safe and well—a national framework for protecting Australia’s children, signalling the Government’s commitment to addressing the circumstances that put children at risk. Through COAG, the National Child Protection Framework is being developed. This is an ongoing endeavour for the Department, drawing on expertise across jurisdictions and in the non‑government sector.
During 2007–08, funding was provided in the Budget for a range of measures to ensure that payments such as Family Tax Benefit Part B and the Baby Bonus will be better targeted to the families who need them most. These payments will no longer be available to families who have annual incomes in excess of $150,000. Adoptive families will have greater access to the Baby Bonus and to the Maternity Immunisation Allowance, which will be paid in two instalments to encourage parents to immunise their children before they start school. Further efforts will be made to reduce Family Tax Benefit debts by adjusting payments through the year if families notify of increases in income, and by precluding families from receiving fortnightly instalments of Family Tax Benefit if they do not confirm their actual income within 18 months of the end of financial year. Administration of Family Tax Benefit will be streamlined by no longer delivering payments through the Australian Taxation Office.
Housing affordability and homelessness were prominent issues impacting on the work of the Department over the past year. A number of significant activities commenced in 2007–08, aimed at resolving both short‑term pressures and long‑term supply and affordability issues.
In May 2008, FaHCSIA released the homelessness Green Paper, Which Way Home—A New Approach to Homelessness and commenced a series of community consultations with a view to producing a White Paper for release in September.
FaHCSIA has been fully engaged in the process established by COAG to develop a new model of cooperative Commonwealth–state arrangements. COAG established a Housing Working Group with key priorities to implement five important housing initiatives and develop a new National Affordable Housing Agreement. FaHCSIA has prime responsibility for managing the work of this group and driving the critical discussions with states and territories needed to progress the COAG reform agenda.
In 2007–08, FaHCSIA helped strengthen disadvantaged communities by providing funding support projects that build community capacity and help families and communities to develop self‑reliance. Assistance was also provided to community organisations through Volunteer Small Equipment Grants funding for the purchase of equipment to support their volunteers.
The Australian Government Disaster Recovery Payment is an essential part of the Government’s ability to respond to disasters and critical events and meet need where it is acutely felt. Over the past year, the payment has provided timely and essential assistance to more than 40,000 people adversely affected by storms and floods in NSW and Queensland. Significant wage supplements have also been paid to over 6,000 workers in the equine industry impacted by the outbreak of equine influenza.
This section provides a summary of the Department’s financial performance for 2007–08. Departmental and administered results are shown in the audited financial statements in Part 5 of this report. The resource summary of the price of outputs and administered programs can be found under each outcome in Part 2 of this report.
The Department made excellent progress during the year in addressing outstanding recommendations from the ANAO. The Department has addressed the majority of these recommendations and is committed to addressing the remaining recommendations in a timely manner. It is particularly noteworthy that the Department has zero B findings as at 30 June 2008, following ANAO’s audit of the financial statements.
Under the Administrative Arrangements Order (AAO) of 3 December 2007, the Department assumed responsibility for the Community Development Employment Projects Program and Disability Support Pension from the former Department of Employment and Workplace Relations. Indigenous Business Australia also transferred to the portfolio.
Under the revised AAO of 25 January 2008, the Department relinquished responsibility for child care and youth engagement programs which transferred to the new Department of Education, Employment and Workplace Relations.
In addition, responsibility for Family Impact Statements moved to the Department of the Prime Minister and Cabinet.
These changes have resulted in movements of both departmental and administered assets and liabilities between departments. These movements are disclosed in the financial statements.
FaHCSIA had an operating deficit of $9.8 million in 2007–08 ($5.4m deficit in 2006–07). This deficit reflects a reduction in the departmental appropriation relating to the Northern Territory Emergency Response; the outcome of machinery of government changes and changes to measures following the change in government.
Total income was $1,475.7 million (2006–07: $1,217.7 million). Operating income consists of:
Government appropriations for the delivery of programs and services increased by $249.6 million in 2007–08. This was due to funding for implementing new policy measures, an increase in service delivery funding associated with programs transferred to FaHCSIA and the implementation of the Northern Territory Emergency Response (NTER).
Total operating expenses were $1,485.4 million (2006–07: $1,223.1 million). Operating expenses consist of:
Operating expenses increased in line with funding for new measures and the implementation of the NTER.
Figure 1.1 Departmental revenue and expenses
FaHCSIA administered programs of $55.7 billion in 2007–08 on behalf of the Government (2006–07: $46.8 billion).
| 2007–08 $’000 |
2006–07 $’000 |
|
|---|---|---|
| Personal benefits | 51,767,854 | 43,278,241 |
| Grants | 3,697,005 | 3,043,077 |
| Suppliers | 161,504 | 174,752 |
| Write‑down and impairment of assets | 329 | 207,167 |
| Subsidies | 12,862 | 12,586 |
| Other | 77,766 | 77,494 |
| Total administered expenses | 55,717,320 | 46,793,317 |
The increase in administered expenses is mostly related to the transfer of programs to FaHCSIA under the Administrative Arrangements Order, indexation adjustments, new policy measures for existing programs and the implementation of the NTER.
Figure 1.2 Actual administered expenses
The net asset position at 30 June 2008 was $195.9 million (2007: $171.3 million).
Figure 1.3 Departmental assets and liabilities
Total assets at 30 June 2008 were $338.2 million (2007: $298.3 million). Non‑financial assets increased by $55.5 million, due to acquisition of new office space for the Department together with staff accommodation and other infrastructure relating to the NTER.
Total liabilities at 30 June 2008 were $142.4 million (2007: $127.0 million). The increase in liabilities of $15.4 million is primarily associated with increased payables to suppliers, reflecting the particularly intensive nature of implementing the NTER.
Total assets at 30 June 2008 were $4,105.9 million (2007: $3,175.9 million). This increase of $930.0 million is due to the recognition of a new administered investment in Indigenous Business Australia as part of the AAO changes, together with an increase in personal benefits receivables.
Total liabilities at 30 June 2008 were $4,255.0 million (2007: $4,190.7 million). This increase of $64.3 million reflects the increase in the provision for personal benefits payments, offset by a reduction in the payables for programs that transferred from FaHCSIA under the AAO.
Our new Strategic Framework 2008–10 has been developed to guide the work of the Department over the next three years. It will set the broader framework for measuring the Department’s performance in delivering the Government’s commitments and enable us to plan for the future. The first part of our Strategic Framework consists of our Purpose and Key Objectives and is detailed below. How we aim to achieve our objectives is outlined in the second part of our Strategic Framework, which can be found in the corporate governance and accountability section of this report.
Improving the lives of Australians by creating opportunities for economic and social participation by individuals, families and communities.
These reflect our Ministers’ higher level priorities and are supported by business plans across the Department.
FaHCSIA’s Key Objectives are to:
Close the gap between Indigenous and non‑Indigenous Australians
In 2008–09 we will:
Build a modern social and income support system
In 2008–09 we will:
Provide better support and services for those in need
In 2008–09 we will:
Deliver family policy that best fosters the development, wellbeing and safety of children
In 2008–09 we will:
Reduce homelessness and make housing more affordable
In 2008–09 we will:
Promote women’s safety, economic security and participation
In 2008–09 we will:
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