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Part 3: Management and accountability

Corporate governance and performance

FaCS has distinct governance and management arrangements that recognise the specialist nature of its business.

Boards and committees

The Executive Board prior to the AAO changes comprised the secretary (chair), deputy secretaries, the chief financial officer, all executive directors, the general manager of the Child Support Agency, one senior state and territory office manager, the assistant secretary of the department’s People Branch, another branch head on a rotating basis, and a senior representative of Centrelink.

The board considered reports from board members and committees and agreed actions. Reports dealt with strategic priorities and risks, management of major projects and finances, human resource issues and performance reporting.

After the 2004 Federal Election, the department was restructured and in early 2005 the Executive Management Group was established. Its membership initially comprised the department’s senior executives and principal adviser, social policy. The group now consists of the secretary, deputy secretaries and all group managers.

The Executive Management Group is the principal forum in FaCS’ executive governance arrangements. It meets weekly and considers strategic issues, resource allocation, accountability requirements and financial and resource management, as well as to share information and discuss the progress of major projects.

Committees reporting to the Executive Management Group

The Executive Budget Committee was the primary group responsible for guiding business planning and determining and monitoring resource allocation and expenditure until January 2005. From January 2005, this role was undertaken by the Executive Management Group.

Legally required committees

Cross-department committees

These committees act in an advisory role and bring funding proposals to the Executive Management Group for decision:

Committees reporting to responsible group managers from January 2005

Senior management

FaCS—senior management

Mark Sullivan was secretary to the department until October 2004. From October 2004, FaCS welcomed Dr Jeff Harmer as secretary.

Three deputy secretaries, Wayne Jackson, Stephen Hunter and David Kalisch (acting) help the secretary manage FaCS. They also work with group managers to achieve nominated strategic outcomes.

Group managers are responsible for achieving nominated strategic outcomes, for systemic management of ‘group’ outputs and for making sure that branches work together to achieve objectives. Branch outputs support outcome achievements, and the grouping of branches around outcomes reflects this. Branch managers and state and territory office managers are responsible for managing their respective branches or offices and delivering particular outputs, including programmes and services.

In 2004–05, the department’s deputy secretaries worked with the following group managers:

Wayne Jackson:

Stephen Hunter:

David Kalisch:

Internal audit

FaCS—internal audit

FaCS finalised 10 internal audits in 2004–05 and commenced or continued to work on eight others. These audits were from the audit work plans approved by the Risk Assessment and Audit Committee in 2003–04 and 2004–05. One audit was postponed from the 2004–05 work plan. Ernst and Young was the sole provider for internal audits undertaken during the year.

The following audits were completed during 2004–05:

Work on the following audits continued in 2004–05:

Work on the following audits commenced during 2004–05:

Other major activities included:

Project management

FaCS—project management

The department continued work to increase project management maturity and knowledge through its Project Management Integration Office.

Project management education to national and state and territory office staff also continued. Project planning sessions, one-on-one education, mentoring and coaching are ongoing initiatives with particular focus given to areas transferred to FaCS under the AAO changes.

The project status reporting framework was redeveloped to increase the accuracy and frequency of project reporting. The Executive Management Group will receive status reports under the new arrangements from July 2005.

FaCS continued to work closely with the Department of Prime Minister and Cabinet and other Australian Public Service (APS) agencies to support a whole-of-government approach to applying project management processes and methodologies in major initiatives.

Risk management

FaCS—risk management

FaCS has an integrated risk management framework which includes policies, guidelines and tools available on the FaCS intranet to officers undertaking risk assessments and risk management. In 2004–05, work began to bring this framework up-to-date with the revised Australian and New Zealand risk management standard (AS/NZS 4360:2004). Substantial progress also was made on building risk management processes into the new governance structure established following the AAO changes. Under the new arrangements, strategic (departmental) risks are identified, prioritised for treatment, and reviewed by the Executive Management Group. Operational risks are identified in business and project plans. Integration of the two levels of risk management occurs through the business planning process and by group managers reporting to the Executive Management Group. Risk management is also monitored through the audit programme, business continuity testing and the Risk Assessment and Audit Committee.

Protective security

FaCS—protective security

FaCS continues to commit resources to strengthen and maintain the department’s protective security framework.

The implementation of the 2004 security action plan achieved greater compliance with the Commonwealth Protective Security Manual. An increased emphasis was given to raising staff awareness using a range of initiatives including a planned programme for protective security training. In 2004–05, FaCS had no significant security incidents.

Financial management

Asset management

A revaluation was conducted of FaCS leasehold improvements during the year which resulted in a decrease in value of approximately $287,274. FaCS also conducted a revaluation of its infrastructure, plant and equipment which resulted in a decrease in value of approximately $251,292. A stocktake was carried out on IT and non-IT assets which led to a refinement of asset management processes.

Purchasing

The department’s purchasing activities are consistent with the FaCS Chief Executive Instructions and internal procurement guidelines, which are in accordance with the Commonwealth Procurement Guidelines.

Summary of consultancy services contracts

During 2004–05, 192 new consultancy contracts were agreed involving total actual expenditure of $13.6 million. In addition, 68 ongoing consultancy contracts were active during the year involving total actual expenditure of $7.5 million.

Summary information on consultancy services for FaCS and the Social Security Appeals Tribunal (SSAT) is set out below in tables 3.1 to 3.3.

Table 3.1 | New consultancies let in 2004–05, number and financial year expenditure (GST-inclusive)
  number let expenditure in 2004–05 (gst-inclusive)
FaCS core 187 $13,524,470
SSAT 5 $97,829
Total 192 $13,622,299

Note: includes consultancies less than $10,000 in value.

Table 3.2 | Ongoing(a) consultancies active in 2004–05, number and financial year expenditure
  number ongoing expenditure in 2004–05 (gst-inclusive)
FaCS core 67 $7,371,908
SSAT 1 $130,000
Total 68 $7,501,908

(a) An ongoing consultancy is any consultancy let prior to 1 July 2004 that remained active in the 2004–05 financial year.

Note: includes consultancies less than $10,000 in value.

Table 3.3 | Total expenditure on consultancy contracts (new and ongoing) during the financial years 2002–03, 2003–04 and 2004–05 (GST-inclusive)
2002–03 2003–04 2004–05
$16,881,838(a) $19,819,980(b) $21,124,208(c)

(a) Expenditure in 2002–03 includes expenditure relating to consultancy contracts let prior to 2002–03 and consultancies less than $10,000 in value. Includes FaCS core, Child Support Agency and Social Security Appeals Tribunal.

(b) Expenditure in 2003–04 includes expenditure relating to consultancy contracts let prior to 2003–04 and consultancies less than $10,000 in value. Includes FaCS core, Child Support Agency and Social Security Appeals Tribunal.

(c) Expenditure in 2004–05 includes expenditure relating to consultancy contracts let prior to 2004–05 and consultancies less than $10,000 in value. Includes FaCS core and Social Security Appeals Tribunal.

Harm Prevention Charities Register

The Harm Prevention Charities Register (HPCR) was introduced on 1 July 2003 in response to the Inquiry into the Definition of Charities and Related Organisations. The HPCR is a category of deductible gift register for institutions whose principal activities are to promote the prevention and control of harmful and abusive behaviour.

The department assessed 11 applications for the register during 2004–05 against HPCR eligibility criteria. Eligible applications were then submitted to the Minister for Family and Community Services, the Minister for Revenue and Assistant Treasurer for their consideration. There are currently 10 institutions listed on the HPCR.

Fraud control

FaCS—fraud control

FaCS completed its fraud control plan for 2005–07 during the year which complies with the Commonwealth Fraud Control Guidelines.

The FaCS fraud control officer is responsible for managing and coordinating fraud investigations, providing fraud awareness training and advice on policy, guidelines and procedures to staff.

Certification of fraud control arrangements follows.

Certification of Departmental Fraud Control Arrangements

I, Jeffrey Harmer, certify that I am satisfied that for the financial year 2004 / 2005, the Department of Family and Community Services has had:

Dr Jeffrey Harmer
Secretary
Date: 26 Septermber, 2005

Management of ethical standards

FaCS—management of ethical standards

FaCS has built on the APS values by publishing core values that have intrinsic value to the department and are meaningful to staff.

FaCS promotes staff adherence to the APS Code of Conduct and takes appropriate action if a suspected breach of the code occurs. Orientation programs provide information on the code and an online e-learning course provides refresher training for staff.

The APS code and values, and FaCS’ core values and ethics, are also published on the department’s intranet.

Results of investigations

Six investigations on breaches of the code were completed during the year and one is ongoing. In four of the investigations, breaches were found to have occurred involving inappropriate behaviour towards work colleagues, conflict of interest and misuse of official position. Sanctions were applied.

Service charter

FaCS—service charter and performance

The FaCS service charter sets out the standard of service that people who deal with FaCS can expect and the ways they can help FaCS improve service to its customers. The charter also helps FaCS staff develop a better understanding of their roles and responsibilities.

FaCS Complaints Management Scheme

The FaCS Complaints Management Scheme is linked to the FaCS service charter. It provides an effective means of resolving client concerns quickly and effectively and identifying issues that require remedial action.

For 2004–05, FaCS registered 64 complaints. At 30 June 2005, 60 complaints had been resolved and four were still being dealt with.

Of those complaints received, six related to service by FaCS, five to government policy and 53 to service providers. Three of these complaints related to Indigenous issues.

Table 3.4 | FaCS Complaints Management Scheme
category total
FaCS business processes FaCS service standards Policy Programme design Service provider Received Finalised
Nil 6 5 Nil 53 64 60

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