Annual Report 2005–06
Output 1 - Core department: Management and accountability
Page contents:
Corporate governance
This section reports on aspects of the core department’s corporate governance that differ from, or function in addition to, the whole-of-department measures described in the ‘Overview’ chapter.
Table 2 provides information on the committees that made up the core department’s corporate governance framework in 2005–06.
During the year, a review was undertaken of the core department’s corporate governance framework. The recommendations of the review were considered by the Executive Management Group. Any changes to the corporate governance framework arising from the review will be implemented in 2006–07.
Figure 11 Department of Human Services corporate governance framework
Internal scrutiny
The core department continues to undertake a range of activities designed to establish appropriate internal scrutiny mechanisms. In line with the governance framework, management committees have met to discharge their responsibilities under the committee charter.
Under the aegis of the DHS Audit Committee, the Chief Executive Instructions were reviewed and Financial Delegations updated.
An Overarching Fraud Control Plan was developed and will be updated as the fraud control plans for the core department, CSA and CRS Australia are updated.
No instances of fraud, or suspected fraud were detected or investigated in the core department during 2005–06.
In addition, the DHS Audit Committee has arranged for strategic and operational risk assessment exercises to be conducted for the core department, CSA and CRS Australia.
The Security Committee has had carriage of the development and monitoring of the core department’s Protective Security Plan and has approved a core department staff security awareness program, which will be run early next year.
External scrutiny
Administrative tribunals, litigation and Ombudsman
The core department has not received any Administrative Appeals Tribunal appeals, notice of impending litigation or notice of investigations by the Ombudsman.
Australian National Audit Office
The Auditor-General issued two cross-agency audit reports that include information on the operations of the core department:
- Report No. 28 2005–06 Management of Net Appropriations Agreements, tabled 31 January 2006 The core department was found to be in compliance with net appropriation legislative requirements.
- Report No. 48 2005–06 Audit of Financial Statements of General Government Sector Entities for the Year Ending 30 June 2006 , tabled on 22 June 2006 The core department participated in this annual audit of financial controls and financial statements.
The 2005–06 interim audit identified no ‘A’ or ‘B’ findings for the department or CRS Australia.
There were however, four ‘B’ findings related to CSA.
Corrective action taken by CSA since the interim audit is expected to result in a reduction from four to two ‘B’ findings.
Our people
As at 30 June 2006 the core department employed 97 individuals. A total of 94 staff were employed in the core department under the Public Service Act 1999 . This figure includes all ongoing and non-ongoing employees. Inclusion of staff on short-term secondment from Human Services agencies brought this figure to 97.
Detailed information on staffing is provided at Appendix 1.
Human resource management
Since November 2005 recruitment rounds have seen a significant growth in the numbers of staff employed by the core department on either an ongoing or non-ongoing basis. This is mainly as a result of new government initiatives.
The core department has made good use of secondments, drawing on talent from within the Human Services agencies. In many cases, seconded staff have worked in the core department for three to six months before returning to their home agency. The secondment of staff to the core department from Human Services agencies has provided support and collegiality and allowed the core department to draw on their wealth of experience.
A number of committees and working parties across Human Services were established this year to ensure targeted reform. This strategy has enabled improvements in communication between Human Services agencies, aided in ensuring greater consistency in reporting, and facilitated the development of a clear human resources management strategy across Human Services agencies. These include:
- DHS Absence Management Committee
- Human Services Indigenous Employment Task Force
- Human Resources Policy and Practices Working Group
- DHS Superannuation Committee
- DHS WorkChoices Committee
- DHS OH & S working groups.
Remuneration
Australian Workplace Agreements
All ongoing and non-ongoing staff of the core department are covered by Australian Workplace Agreements (AWAs). Employees on secondment remain covered by the employment conditions of their home agencies. The core department has successfully implemented the WorkChoices AWAs under the new WorkChoices legislation.
Remuneration arrangements are based on the principles that remuneration must be:
- fair and competitive
- sufficiently flexible to reflect the particular skills, experience and work responsibilities of individual employees
- designed to reward and remunerate employees reasonably and appropriately for their performance and contribution to the work of the core department
- accountable for efficiency gains including any reductions in administrative complexity and cost achieved through the simplification of rules governing employment.
Salary ranges for core department employees are provided in Appendix 1.
Performance pay
All core department staff are employed on AWAs, which include an eligibility for performance bonuses.
At 30 June 2005, there were 54 staff in the core department. Not all were ongoing staff of the core department; some were on secondment. In total, 29 core department staff were eligible for performance bonuses. Of these, 24 people received performance bonuses, with a total amount paid of $96,300. This amount does not include any bonus paid to the Secretary.
The performance bonuses paid in financial year 2005–06 for performance during the 2004–05 financial year are set out in Table 3.
| Level | Staff eligible | Staff paid | Amount paid ($) | Average ($) |
|---|---|---|---|---|
| APS | 5 | 3 | 4,794 | 1,598 |
| EL | 15 | 12 | 34,513 | 2,876 |
| SESa | 9 | 9 | 56,993 | 6,333 |
| Total | 29 | 24 | 96,300 |
a Does not include any bonus paid to the Secretary.
Performance Management Scheme
The core department’s Performance Management Scheme (PMS) draws extensively on the Integrated Leadership System developed by the APSC. Under this scheme, all staff were required to have performance agreements, including learning and development plans, in place for 2005–06.
These agreements form the basis for assessment of how a person has performed in their role and how they have developed during the timeframe of the agreement. The assessment is also used to determine performance bonuses. Bonuses are paid when an employee receives a rating of four (superior) or five (outstanding) on a scale of five.
Enhancing performance
The core department’s induction program begins the development of workforce capability by introducing all new staff to the workplace culture, expectations and values, and prepares them to consider what is needed for their performance agreements. All induction intakes are briefed by the Secretary, the Executive and other senior staff on what is expected of them and the department.
Workforce capability requirements were identified through various sources such as the organisational learning needs analysis conducted for the 2004–05 State of the Service Report, staff survey, individual learning and development plans and consideration by the People and Leadership Committee.
Workforce capability is addressed organisationally by utilising the APSC’s flagship programs such as the Career Development Assessment Centre (CDAC), and Indigenous recruitment initiatives, outbound programs with Human Services agencies, mentoring and coaching and other programs that are related to individual technical learning needs.
In addition, 11 staff attended Centrelink’s Outbound program to gain a better understanding of Centrelink’s operations and customer needs.
During the 2005–06 period the core department delivered skill development and learning to:
- 68 staff members to equip them with further technical skills to perform in their specific roles
- 58 staff members to increase organisational capability through leadership and strategic planning.
The core department conducted a regular seminar series designed to raise staff understanding of the development and implementation of service delivery innovation. Speakers included Dr Shergold, Secretary, Department of the Prime Minister and Cabinet, Matt Miller, General Manager, CSA and senior staff from Centrelink.
Another learning and development initiative included Executive Coaching. As part of the PMS, all ongoing Senior Executive Service (SES) staff have participated in 360–degree review and coaching feedback. As a strategy of the PMS, 12 officers have commenced formal executive coaching to enhance leadership development.
Four SES officers have attended the SES Band 1 Orientation Program and a number of other courses related to their roles. The core department also participated in the recently introduced APSC program for SES Band 3: Leadership Mastery. Four other SES officers attended programs overseas, one attending the Public Service Summit in Stockholm.
Workplace diversity
During 2005–06, the core department continued to build its ongoing commitment to providing a fair and equitable environment for all staff. The DHS Diversity Plan was developed through consultation with all staff and launched during 2005–06. This is an integrated plan that incorporates the Indigenous Employment Strategy, the Disability Strategy and the Diversity Strategy. The plan ensures that diversity is considered in all aspects of Human Services’ work, particularly in recruitment and people management strategies.
During National Reconciliation Week, 27 May to 3 June, the core department, in partnership with the six Human Services agencies, signed a State of Commitment to Reconciliation. This recognises Human Services’ commitment to providing equal life opportunities for all Australians. We work to achieve this goal through improving the delivery of social and health-related services to Indigenous Australians.
A staff survey was conducted that built on the work undertaken in 2004–05 to develop the core department’s culture and characteristics and valuing of staff differences. Following the survey, staff focus groups were held to further define and enhance the DHS Values Statement. As the core department continues to evolve, this work has proven valuable in assisting to embed APS values into all work practices.
Occupational health and safety
The core department’s human resources policies and principles manual and associated OH & S manual underwent a comprehensive review in January 2006, with substantial improvements made.
During 2005–2006, the core department continued to focus attention on the physical work environment. A number of staff were trained as health and safety representatives.
The core department has taken a lead role in the Human Services cross-agency OH & S committees to identify, develop and implement consistent strategies to address OH & S requirements.
Health Week was a feature of the core department calendar, with a health promotion theme. Forty-two members of staff participated in health and lifestyle assessments, and 24 employees took advantage of flu shots. Other activities included the distribution of education and information packages on various health and lifestyle issues. Organisational health activities included a healthy morning tea, staff bike ride and barbecue, and an all-staff health trivia competition.
Resource management
Financial management
The department’s financial management awareness and capability improved in 2005–06 with a strengthened framework of policies, guidelines, systems and controls, and the introduction of more comprehensive and informative monthly management reporting and forecasting.
The department fulfilled its statutory responsibilities throughout the year in respect of financial reporting and management, and provided meaningful and properly supported financial information to the ANAO to facilitate timely completion of their 2005–06 audit of the core department.
Use of consultants and services contractors
Competitive tendering and contracting
The core department, CRS Australia, and CSA went to the market in September 2005 for internal audit services. Ascent was awarded the contract.
Purchasing
All Human Services agencies and the core department, now follow DHS Procurement Guidelines which took effect from 1 January 2006. The objectives of these guidelines are to:
- better meet the Minister for Human Services’ requirements for improved efficiencies in procurement processes across agencies
- give agencies greater responsibility and accountability for their purchasing
- move to common purchasing for all purchases over $1 million by actively participating in joint procurements.
The guidelines, which are in addition to the relevant Commonwealth Procurement Guidelines that apply to purchasing by Human Services agencies, are published on the DHS Internet site and all suppliers and potential suppliers are encouraged to recognise the guidelines in their offers to supply goods and services.