Contents
- Part 1 Executive Summary
- Part 2 Performance reporting
- Part 3 Corporate governance and accountability
- Part 4 Appendices
- Part 5 Financial Management
Annual Report 2008–2009
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Annual Report 2008–2009
Annual Report 2008–2009 » Chapter 10: Our governance arrangements
Corporate governance provides the system by which FaHCSIA directs and controls our operations and the structure through which departmental objectives are set and enacted. FaHCSIA's governance structure comprises the Secretary and the Executive Management Group, supported by boards and committees that provide advice relating to our administration and overall operation.
FaHCSIA also has in place a strategic framework that guides our direction, sets out the leadership and personal values that we uphold and outlines the core business practices and governance processes that will help FaHCSIA to achieve real outcomes for Australian communities, families and individuals.
Jeff Harmer was appointed as Secretary of the Department in October 2004 and reappointed in October 2008. He was previously Secretary of the Department of Education, Science and Training (2003–04), and before that, Managing Director of the Health Insurance Commission, now Medicare Australia (1998–2003). Jeff has held a range of high-level policy advising positions in the Australian Government.
In February 2009, the Secretary completed a major review into the adequacy of the Age Pension. He is a member of a panel chaired by Dr Ken Henry to review the Australian Tax and Transfer System.
As Secretary, Jeff is responsible for the administration and the corporate and strategic directions of the Department and the portfolio. He provides senior policy counsel on major and sensitive policy issues to the portfolio ministers and parliamentary secretaries. He also represents the Department in a variety of government, industry and business sector forums.
Through these, Jeff develops and maintains high-level relationships with the Department's key stakeholders. He sits on the boards of the Australian Research Alliance for Children and Youth and the Melbourne Institute Advisory Board. He is also a Fellow of the Australian Institute of Management and the Institute of Public Administration Australia.
Glenys Beauchamp was appointed Deputy Secretary of the Department in January 2006. In addition to assisting the Secretary with the directions and outcomes for the Department, she has responsibility for outcomes covering families, including implementation of the Government's Paid Parental Leave scheme, child support reforms and welfare payments reform; women; early childhood; mental health; and a range of community-based programs.
Glenys came to FaHCSIA at the end of 2002 from the ACT Government and since that time has had oversight of a number of functions in the Department. She is a member of the Australian Institute of Family Studies Advisory Board and a member of the Australian Statistics Advisory Committee.
'2008–09 presented the portfolio, like most others, with meeting additional challenges to address the impacts of the most difficult global economic conditions of recent times. 'The Department assisted government with the implementation of a short-term stimulus package in late 2008 through cash payments to pensioners, carers, veterans and families and its medium-term infrastructure package, including a large investment in social housing.
'Significant structural changes were announced by the Government in key social policy areas such as reform of the age pension system, the introduction of Australia's first national Paid Parental Leave scheme, additional investment into areas like homelessness and social housing and an apology to Indigenous Australians.
'The Department is supporting the delivery of these substantial reforms but has made significant progress in streamlining the administration of community grants, rationalising the number of community-based programs and commenced consultation in the development of the Government's compact with the not-for-profit sector.
'The development and implementation of major reforms and initiatives has been an ongoing feature for the Department in 2008–09, and again has had a positive influence on our reputation in the way we have developed and delivered for the Government. I would like to offer a big thanks from the executive to all staff in the professional way these challenges have been met in difficult times.'
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Geoff Leeper was Deputy Secretary in the Department of Families, Housing, Community Services and Indigenous Affairs from 2007 to 2009. He was previously Deputy Secretary in the Department of Human Services (2005–07) and Deputy Chief Executive Officer in Medicare Australia (2001–05).
While at FaHCSIA, Geoff assisted the Secretary in managing the Department, with special focus on the Housing, Legal and Compliance, and Indigenous Remote Services Delivery groups and the Office of Indigenous Policy Coordination. He was also the Chair of the Risk Assessment and Audit Committee and was the Commonwealth Director on the Board of the Australian Housing and Urban Research Institute.
Geoff has had a long and distinguished career in social policy, including in the Department of Social Security, Centrelink, the former Department of Family and Community Services, the Health Insurance Commission and the Department of Human Services, and has a great depth of experience in policy, program administration and corporate affairs.
Geoff joined the Department of Climate Change as Deputy Secretary in June 2009.
Robyn McKay joined the then Department of Family and Community Services in early 1999 as Group Manager, Families and Children. From 2002 to 2005, she was Minister-Counsellor, Social Policy, at the Australian Delegation to the OECD in Paris. She led the Social Policy Group in FaHCSIA in 2006 before taking up her role as Acting Deputy Secretary in October 2006.
Robyn has had a long career in social policy spanning employment programs; industrial relations and wages policy; higher education policy and program administration; health, families and income support policy and programs; and commercialisation and privatisation policy. Before joining FaHCSIA she worked in senior executive positions in the departments of Employment, Education and Training (1989–95) and Finance and Administration (1995–98), where she led the Accrual Budgeting Project.
Robyn's role has been to assist the Secretary in managing the Department, with particular responsibility for strategic policy, the Age Pension, social security relationships and compliance, research, and international engagement, as well as the Office of the Registrar of Indigenous Corporations, the Pension Review Taskforce, and supporting the Secretary in his role on the Henry Tax System review. She was chair of the Research and Evaluation Committee, the Payments Committee and the Budget Policy Committee, and was the FaHCSIA representative on the Board of the Australian Institute of Health and Welfare.
Since the completion of the Pension Review at the end of February, Robyn has been on extended leave, pending retirement later in 2009.
'The last year has been one of major change, with a strengthened focus on cross-cutting policy development, reflected in considerable review activity. The Pension Review was a significant achievement of 2008. It highlighted the importance of FaHCSIA's analytical capacity, strong research base and investment in longitudinal data to make major contributions to work on social inclusion and income support, and the pride our people take in robust analysis and working across organisational boundaries.'
Bernie Yates has been Deputy Secretary in the Department since January 2006, following the integration of the Office of Indigenous Policy Coordination into FaHCSIA. Bernie assists the Secretary with managing whole-of-government policy development in Indigenous affairs, the Department's program management framework and oversees our network of over 30 offices across urban, regional and remote Australia.
'This year has seen major advances in the Closing the Gap strategy developed by the Council of Australian Governments (COAG), with major investments through national agreements and partnerships to progress achievement of the ambitious targets in Indigenous early childhood, education, health and employment and to address critical housing requirements. Attention is now being given to implementation of these commitments and ensuring much-improved outcomes for disadvantaged Indigenous people in urban, regional and remote Australia. A new remote strategy forms a key part of this work, including governments at all levels working in partnership with Indigenous people in identified locations, overseen by a new statutory position of Coordinator-General for Remote Indigenous Services.
'As part of the ongoing steps to reset the relationship with Indigenous people, the Government supported the United Nations Declaration on the Rights of Indigenous Peoples and has strengthened consultation and engagement across a range of key initiatives, including development of the new National Indigenous Representative Body and a Healing Foundation.
'Following an independent review of the Northern Territory Emergency Response, which reported in October 2008, extensive work has been undertaken, including extensive consultations with Indigenous people in the Northern Territory to guide revision of measures to achieve compliance with the Racial Discrimination Act 1975.
'The Department has also given greater attention to reducing red tape and streamlining requirements for funding of community organisations, working with representatives of service providers to ensure that, as far as possible, funding can be applied to better services while ensuring due accountability for outcomes. This is seeing some breakthroughs in how the Department is conducting its program business, working also with other agencies involved in Indigenous program delivery to do likewise.'
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Serena Wilson was appointed as Deputy Secretary of the Department in March 2009. Before joining FaHCSIA, Serena was in the Department of the Prime Minister and Cabinet, where she led the Social Policy Division. Serena's career has spanned many areas of social policy across a range of Commonwealth departments, including Employment and Workplace Relations, Family and Community Services, Social Security, Health and Community Services, and Housing and Construction. In the 11 years she spent in the Family and Community Services and Social Services portfolios, Serena led work on welfare reform, income support for people of working age, fraud and compliance policy, carer policy, and strategic analysis and research.
Serena assists the Secretary in managing the Department with particular responsibilities for strategic policy and budget strategy, the Age Pension, social security relationships and compliance, research and international engagement, the Tax-Transfer Taskforce and the Disability and Carers Group. She is chair of the Department's Research and Evaluation Committee and Payments Committee and jointly chairs the Budget Policy Committee with Bruce Hunter. Serena is the FaHCSIA representative on the Board of the Australian Institute of Health and Welfare.
'2008–09 has been a year of great achievement for FaHCSIA. It is particularly significant that far-reaching reform of the pension system is being undertaken in the centenary year of the Age Pension. The Pension Review was well supported by evidence drawn from key FaHCSIA datasets, including the Household Income and Labour Dynamics in Australia (HILDA) survey, now in its ninth wave. 2008–09 has seen two further milestones in the development of our social policy evidence base: completion of the first wave of data collection for Footprints in Time—the Longitudinal Study of Indigenous children—and the release of Life at Three, supported by the third wave of data from the longitudinal study of Australian children. Continued development of these datasets will position FaHCSIA well in the future to advise on policy reforms across our seven outcomes.'
Bruce Hunter took up his role as FaHCSIA's Deputy Secretary, Chief Operating Officer and Chief Financial Officer on 10 June 2008. In this role Bruce assists the Secretary in managing the Department, and has responsibility for the Business and Financial Services, Corporate Support, and Information Management and Technology groups. While Bruce is a member of the Executive Management and Senior Management groups, he also is the chair of seven key departmental committees including the Remuneration, People, and Information and Communications Technology committees.
Bruce has many years of experience in the public and private sector and joined FaHCSIA in November 2006 as Group Manager, Business and Financial Services. Before joining FaHCSIA, Bruce was Executive Director Corporate at the Family Court of Australia, where he was responsible for providing strategic leadership and management of the finance, property, human resources, security, contract management and secretariat functions at a national level for the court.
'I am proud of the achievements of the corporate/enabling areas in supporting the Department to meet a range of significant challenges in 2008–09, such as the COAG reforms, the Pension Review, the Paid Parental Leave scheme, and the Northern Territory Emergency Response. These same enabling areas also responded very efficiently and positioned the Department well for the changing operating environment associated with Operation Sunlight, the Gershon Review, and coordinated procurement.
'In 2009–10 I will continue to look at ways to better integrate our corporate, finance and IT areas to support the Minister and the Department and ensure FaHCSIA is well positioned to meet future challenges.'
2009 FaHCSIA Senior Executive Service Future Directions Forum.
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Social Policy - Sean Innis
Tax-Transfer Taskforce - Nick Hartland a/g
Disability & Carers - Frances Davies
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Corporate Support - Robert Knapp
Information Management & Technology - Tony Kwan
Business & Financial Services - Steve Jennaway a/g
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Families - Barry Sandison
Strategic Projects - Helen Hambling
Women & Children Policy
Group Manager Children & Family Safety - Cate McKenzie
Executive Director Office for Women - Julia Burns
Community Engagement & Development - Evan Lewis
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Housing - Peta Winzar
Social Housing Initiative - Chris Lamont
Office of Indigenous Policy Coordination - Lynne Curran
Indigenous Remote Service Delivery - Kari Ahmer a/g
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Indigenous Leadership & Engagement - Kerrie Tim
Legal & Compliance - Anthony Field
Township Leasing - Pat Watson
Program Performance - Donna Moody
Registrar of Indigenous Corporations - Anthony Beven
State & Territory Managers
Within FaHCSIA, a number of internal committees have been established to provide advice and support to the Secretary and the Executive Management Group on the administration and overall operation of the Department (see Figure 3.2). Generally, internal committees are made up of FaHCSIA employees, although some internal committees may also have one or more independent members who are not FaHCSIA employees.
The following section provides further information on FaHCSIA's internal committees, comprising membership details, roles and responsibilities, and reporting requirements.
Figure 3.2 FaHCSIA governance structure as at 30 June 2009
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The Executive Management Group is the senior committee in FaHCSIA and provides advice to the Secretary on overall direction, priorities, management and performance (see Table 3.1). In addition, the group manages the Department's financial performance by allocating resources, monitoring performance and risk and ensuring the Department meets its regulatory requirements.
The group also provides a forum for cross-group issues to be managed, and guides, coordinates and champions key organisational reform processes.
The Executive Management Group is chaired by the Secretary, Dr Jeff Harmer. Membership consists of the deputy secretaries and the Group Manager, Corporate Support.
Executive Management Group, left to right: Amanda Cattermole (a/g Deputy Secretary), Robert Knapp, Jeff Harmer, Serena Wilson, Bernie Yates, Glenys Beauchamp.
Table 3.1 FaHCSIA Executive Management Group as at 30 June 2009
* As at 30 June 2009, Amanda Cattermole was acting in this role.
** As at 30 June 2009, Bruce Hunter was also the Department's Chief Operating Officer and Chief Financial Officer.
Senior Management Group, row 1, left to right: Donna Moody, Glenys Beauchamp, Jeff Harmer,
Serena Wilson, Bernie Yates, Tony Kwan, Anthony Beven
row 2, left to right: Frances Davies, Peta Winzar, Kerrie Tim, Nick Hartland
row 3, left to right: Cate McKenzie, Anthony Field, Amanda Cattermole, Helen Hambling, Barry Sandison
row 4, left to right: Evan Lewis, Steve Jennaway, Chris Lamont, Julia Burns, Robert Knapp.
The Senior Management Group meets weekly to undertake strategic discussions on policy themes and issues, key organisational risks, performance and evaluation and other high level matters. The group is FaHCSIA's primary forum for senior executive consultation with group managers from across the Department.
The group is chaired by the Secretary. Membership consists of deputy secretaries, group managers, and the Registrar of Indigenous Corporations (see Table 3.2).
Table 3.2 FaHCSIA Senior Management Group as at 30 June 2009
* As at 30 June 2009, these officers were acting in these roles.
** As at 30 June 2009, Bruce Hunter was also the Department's Chief Operating Officer and Chief Financial Officer.
*** Registrar of Indigenous Corporations.
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The Risk Assessment and Audit Committee is a mandatory committee, established by the Secretary pursuant to the Financial Management and Accountability Act 1997.
The role of the committee is to provide independent assurance and assistance to the Secretary and the Executive Management Group on the design and operation of FaHCSIA's risk, control and compliance framework, and external accountability and responsibilities.
The committee has the authority to request any information it requires from any employee of FaHCSIA, and to discuss any matter with the Chief Internal Auditor, the contracted internal audit service provider, the Australian National Audit Office and the Office of Evaluation and Audit. The committee is also authorised to take independent, professional advice as it considers necessary.
The committee has a Financial Statements Sub-Committee, which oversees the preparation of FaHCSIA's financial statements. The Financial Statements Sub-Committee reports and provides assurance to the committee on all matters regarding the preparation of the Department's annual financial statements. The Chair of the Financial Statements Sub-Committee provides a report at each committee meeting.
In addition, the Chief Financial Officer also regularly reports and provides assurance to both this committee and the Executive Management Group on the Department's financial policy and financial control framework. The committee has two independent external members.
The committee meets six times each year, with one meeting devoted to the examination of the annual financial statements. Following each meeting, the committee reports the key outcomes to the Executive Management Group through its Chair, Deputy Secretary Bernie Yates. Its membership includes two independent members; the Group Manager, Corporate Support; the Group Manager, Families; and the Branch Manager, Social Security Policy.
The Remuneration Committee advises the Secretary on the development and implementation of the Department's remuneration policy, including the Collective Agreement and individual remuneration policy. It also considers and determines individual remuneration proposals that fall outside the scope of the Secretary's endorsed remuneration policy.
The FaHCSIA Remuneration Committee is chaired by the Chief Operating Officer and Chief Financial Officer, Bruce Hunter. Membership includes all deputy secretaries and the Group Manager, Corporate Support.
The Budget Policy Committee manages the Department's budget policy agenda and contribution to the Federal Budget process. The committee advises the Secretary and is jointly chaired by deputy secretaries Serena Wilson and Bruce Hunter. Membership includes all deputy secretaries, three group managers and the Budget Development Branch Manager.
The committee's role is to:
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The People Committee ensures that human resource strategies are aligned with the Department's strategic directions and business priorities. Chief Operating Officer and Chief Financial Officer, Bruce Hunter, chairs the committee. Its members are the Group Manager, Corporate Support; the Executive Director of the Office for Women; the branch managers of the People, Mental Health, Land Reform and Financial Accounting branches; the State Manager New South Wales; and the Manager of Dubbo Indigenous Coordination Centre.
The committee's role is to:
The Payments Committee is the key departmental forum for discussion and development of coordinated advice to the Executive Management Group and the Secretary in relation to the management of income support payments (pensions and allowances) and family assistance payments.
The committee is chaired by Deputy Secretary Serena Wilson. Its membership includes the group managers of the Social Policy, Families, Disability and Carers, Housing, Mental Health, Autism and Community Support, Pension Review, Social Security Policy groups, and the Branch Manager, Budget Development Branch.
The committee's role is to:
In carrying out its role, the committee undertakes a whole-of-FaHCSIA approach and focuses on three streams of work: policy, performance management and service delivery, and evidence and data management.
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The Project Investment Board provides the executive with advice and recommendations on capital budgeting and investment across the portfolio.
The board is chaired by the Group Manager, Business and Financial Services, and membership comprises the Chief Information Officer and the Group Manager, Corporate Support. Its members are supported by their respective branch managers.
The board's key objectives are to:
The Indigenous Policy Forum was discontinued in January 2009 and replaced by the Closing the Gap Committee (see below).
During 2008–09, a new committee was established to ensure the Department delivers on its responsibilities in relation to the Government's Closing the Gap agenda. It is chaired by the Secretary, Dr Jeff Harmer, and membership includes all FaHCSIA deputy secretaries and group managers and the Queensland State Manager.
The committee's role is to:
The committee aims to ensure that FaHCSIA provides well-coordinated, seamless policy development and advice to the Ministers.
The Compliance and Integrity Committee further strengthens the focus of FaHCSIA on accountability, good governance and ethical practices both within FaHCSIA itself, and in relation to the entities with which FaHCSIA deals, particularly entities that receive, and so are accountable for, public money. The committee is chaired by Deputy Secretary, Bernie Yates, and its membership consists of Deputy Secretary, Serena Wilson (Deputy Chair), group managers of the Program Performance and Corporate Support groups and the State Manager, New South Wales.
The committee's role is to:
The committee's scrutiny of individual cases provides assurance that any decision made or recommended by individual compliance officers or investigators, and those supervising their activities, is truly accountable and will withstand scrutiny.
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The Information and Communications Technology Committee provides leadership and long-term focus on information and communications technology (ICT) infrastructure and projects within FaHCSIA. It is the major departmental decision-making body for long-term infrastructure planning, ICT project planning and project funding within the broad directions set by the Executive Management Group.
Bruce Hunter chairs the committee, whose members in 2008–09 were Deputy Secretary Geoff Leeper, the Chief Information Officer, group managers from the Business and Financial Services and Program Performance groups, and the Registrar of Indigenous Corporations.
The committee's role is to provide strategic advice to the Executive Management Group on matters relating to ICT. It develops the ICT investment strategy and considers and recommends ICT funding to the Executive Management Group. This involves:
This committee also oversees ICT project steering committees as determined from time to time.
The Program Management Committee provides strategic advice on the priorities of FaHCSIA's grant programs and on the risks and opportunities arising from program management activities.
The committee is co-chaired by deputy secretaries Bernie Yates and Glenys Beauchamp. Membership consists of group managers responsible for program administration, a state office representative and branch managers from the Program Performance Group.
The committee also provides direction on program management policies, common business processes and the strengthening of program management capability, and provides direction to the Program Branch Managers Forum. In addition, a Funding Management System Steering Committee provides information to the committee on system-related business development opportunities and directions.
The Research and Evaluation Committee's role is to facilitate the development of evidence-based policy by providing strategic advice in relation to FaHCSIA's research, evaluation and data management activities.
The purpose of the committee is to support the Executive Management Group in its governance responsibilities relating to research, evaluation and data management to ensure that:
The committee is chaired by Deputy Secretary, Serena Wilson. Its membership comprises the group managers of the Social Policy, Office of Indigenous Policy Coordination, Housing, Families and Disability and Carers groups and the branch managers of the Research and Analysis, Office of Women and Information Management branches. The branch managers of Strategic Policy Branch and the Long Term Strategies Unit are advisors to the committee.
The committee has overall responsibility for research and evaluation in FaHCSIA which must be approved by the committee.
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The Commonwealth–State Relations Committee is a new committee. Its inaugural meeting was held on 16 April 2009.
The committee provides the key departmental forum for discussion and development of coordinated advice to the Executive Management Group and the Secretary on the management of Commonwealth–state business.
The committee is chaired by a deputy secretary. Its members are the managers of the following groups: Women and Children Policy, Disability and Carers, Office of Indigenous Policy Coordination, Housing, Community Engagement and Development, Program Performance, and Social Policy, and two State Managers.
The terms of reference for the committee are to:
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