Annual Report 06 - 07
DEPARTMENT OF HUMAN SERVICES
Correction to the Department of Human Services 2006-07 Annual Report.
The following table is to replace Table A3.1 in Appendix 3 on page 225 of the report.
Table A3.1 Core Department-payments for advertising and market research
Advertising agencies
Payee
Purpose
Amount
Eardrum
To provide radio advertising services for the Drought
Assistance campaign and Access Card campaign
$97,957
George Patterson
Y&R
To provide creative advertising services for the Drought
Assistance campaign and Access Card campaign
$835,321
Grey Worldwide
Pty Ltd
To purchase creative advertising services for the Medicare
Easyclaim campaign
$252,447
Universal
McCann
To purchase advertising space for the Drought Assistance
campaign and Access Card campaign
$4,660,435
Market research organisations
Payee
Purpose
Amount
Blue Moon
Research and
Planning Pty Ltd
To undertake market research for the Medicare Easyclaim
campaign
$636,300
Open Mind
Research Group
To undertake market research for the Drought Assistance
campaign
$340,033
Orima Research
To undertake market research for the Access Card campaign
$1,335,572
Polling organisations
Payee
Purpose
Amount
Nil
Nil
Nil
Direct mail organisations
Payee
Purpose
Amount
Advertising agencies
Solutions
Marketing and
Research Pty Ltd
To conduct direct mail for the Drought Assistance campaign
$157,520
Media advertising organisations
Payee
Purpose
Amount
hma Blaze
To provide employment and tender advertising
$291,313
Prepared by: Department of Human Services with the assistance of WordsWorth Writing
Designed by: Department of Human Services with the assistance of McMillan Printing Group
Printed by: Paragon Printers Australasia
Web address of this report: www.humanservices.gov.au/publications.html
Contact officer: Assistant Secretary
Marketing and Communication Branch
Department of Human Services
PO Box 3959
Manuka ACT 2603
Telephone: 1300 554 479 or 02 6223 4000
Fax: 02 6223 4499
Email: enquiries@humanservices.gov.au Website: www. humanservices.gov.au
ISSN 1832-8792
© Commonwealth of Australia 2007
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 Australian Government, available
from the Attorney-General's Department. Requests and inquiries concerning reproduction and rights
should be addressed to the Commonwealth Copyright Administration, Copyright Law Branch, AttorneyGeneral's Department, National Circuit, Barton ACT 2601, or posted at www.ag.gov.au/cca.
Guide to the Annual Report
Purpose
The annual report of the Portfolio Department of Human Services (DHS) sets out DHS's activities and
performance for the financial year ending 30 June 2007.
It has been prepared in accordance with the guidelines set out in the Requirements for annual reports
for departments, executive agencies and FMA Act bodies, as approved by the Joint Committee of Public
Accounts and Audit under subsections 63(2) and 70(2) of the Public Service Act 1999. It satisfies the
annual reporting requirements set out in the Financial Management and Accountability Act 1997.
This is the report on the performance of the three organisations that constitute DHS—the Core
Department, the Child Support Agency (CSA) and CRS Australia. Information on how the other four
agencies within the Human Services Portfolio report their performance is in the overview section of this
report.
Structure
This report is presented in eight parts:

a review by the Secretary summarising significant developments in 2006-07 and the outlook for
2007-08;

an overview of the Human Services Portfolio explaining the roles of, and relationships between, the
Core Department and the six agencies, and the corporate governance and financial arrangements
that apply to the three organisations that constitute DHS;

an output section reporting on performance and governance in the Core Department;

an output section reporting on performance and governance in CSA;

an output section reporting on performance and governance in CRS Australia;

the audited financial statements of DHS inclusive of the Core Department, CSA and CRS Australia;

appendices containing detailed information and statistics required under legislation and reporting
regulations; and

references, comprising a list of abbreviations, a compliance index and a general index.
Secretary's Review
Secretary Helen Williams AO
The Portfolio Department of Human Services (DHS) consists of the Core Department, the Child Support
Agency (CSA) and CRS Australia.
The Core Department is a small, flexible organisation that provides leadership to CSA, CRS Australia
and the other Human Services Portfolio agencies, including Centrelink, Medicare Australia, Australian
Hearing and the HSA Group.
It is focused on achieving a creative, whole-of-government approach to the delivery of social and healthrelated services, and on ensuring that the need for effective and efficient implementation is taken into
account in policy design and decision making.
CSA supports separated parents to transfer payments for the benefit of their children.
It works with the Core Department in administering the Child Support Scheme, and with the Department
of Families, Community Services and Indigenous Affairs in developing child support policy.
CRS Australia provides vocational rehabilitation, injury management, assessment and prevention
services to people with disabilities, injuries or health conditions to enable them to gain and maintain
employment.
The year 2006-07 saw both DHS and the Human Services Portfolio build on its early successes in
influencing the strategic focus and coordination of service delivery for Australians.
These results are to the credit of my predecessor, Patricia Scott, who met the challenge of establishing
DHS and who led the organisation for much of the year. They also reflect well on staff of both DHS and
the Portfolio agencies, who deserve congratulations for the extent of their achievements in 2006-07.
The year in review
The Core Department continued to provide effective leadership to, and oversight of, the activities of the
Portfolio during the year and achieved significant progress across the major projects which were its
particular responsibility.
Development of the access card
During 2006-07, the Core Department refined key policy aspects of the Access Card Programme, taking
into account ongoing consultations with other Australian Government agencies, state and territory
governments, business and financial organisations, and consumer, privacy, welfare and rural and
remote advocacy groups. In particular, working with the Human Services Agencies and the Department
of Veterans' Affairs, the Core Department made considerable progress in developing the business
requirements for the access card system. Public tenders were invited to build key aspects of the system.
Consultations with the Australian Federal Police, the Australian Security Intelligence Organisation, the
Defence Signals Directorate and the Department of Foreign Affairs and Trade were important in
developing the security of the technology architecture of the card.
An information campaign was conducted to increase awareness of the card, supported by the
establishment of a dedicated telephone line and access card website.
The Core Department also prepared and released exposure drafts of legislation to implement the access
card, taking into account responses from stakeholders and the community.
Job Capacity Assessments
In the first year of the Job Capacity Assessment Programme, more than 363,000 assessments were
conducted to assess job seekers with barriers to employment and to refer them to services to help them
find work. The programme is running ahead of its target of achieving 80 per cent of assessments within
10 working days. More than 76 per cent of assessments resulted in referrals to services provided by the
Job Network, vocational rehabilitation, the disability employment network, the personal support
programme, literacy and numeracy skills training, and community mental health services. The Core
Department continues to work closely with providers and stakeholders to provide feedback to job
capacity assessors, and to adjust training and other support material with the aim of ensuring
assessments are of a high standard. Referrals to short-term interventions funded under the Job Capacity
Account grew rapidly over the year. By year's end, weekly referral rates to short-term interventions such
as counselling and anger and pain management exceeded the target of 6.8 per cent of assessments
completed. The objective of the programme is to enable job seekers who are almost work ready to
receive short-term assistance while being concurrently referred to the Job Network.
Contribute to cross-government policy development
In 2006-07, the Core Department contributed to whole-of-government policy deliberations, providing
advice on service delivery across a range of policy areas. Key areas of influence included the
development of welfare reform proposals and the establishment of a service delivery mechanism for the
LPG vehicle purchase and conversion rebate.
National emergencies
During the year, the Core Department worked with Portfolio agencies to build up the Portfolio's capacity
to respond to situations of national emergency. Through its membership of the Australian Government
Disaster Recovery Committee it contributed to developing a response to disasters and critical incidents.
It was also joint chair with the Department of Families Community Services and Indigenous Affair of the
subcommittee set up to oversee the establishment of the National Emergency Call Centre, which was
implemented in July 2007.
The Core Department has also been working to assist in national emergencies that Australia faced
during the year. Since November 2006, for example, the Core Department has been supporting
Centrelink's mobile assistance services for drought-affected areas of Australia through the Drought
Assistance Campaign. Three drought buses, each staffed by employees of Medicare Australia and
Centrelink (including a social worker and rural service officers), have delivered information, advice and
support services to drought-affected communities, particularly in rural, regional and remote Australia.
The buses have travelled over 60,000 kilometres and visited more than 260 towns.
Efficiency of service delivery
A range of strategies were implemented to increase efficiency and improve service delivery across the
Human Services Portfolio in 2006-07. Around 240 letters and forms from Centrelink, Medicare Australia
and CSA were reviewed, and 38 letters and forms were abolished. It is expected that the changes will
result in savings of more than 10 million pages a year across the three agencies. In addition, the
strategies and targets introduced in 2005-06 continued to reduce levels of absenteeism across the
Human Services agencies and the Core Department worked with agencies to reduce queuing times.
The Core Department also coordinated a trial of flexible service delivery options involving eight sites in
Centrelink and Medicare. The results will inform deliberations about future service delivery strategies.
Arrangements for joint procurement and coordinated property management between agencies continued
to reduce costs and produce operational synergies.
Access to services was improved by co-locating related services. The rollout of Family Assistance
Offices into all Medicare Australia offices was completed ahead of schedule and there was an expansion
in the number of CSA regional service delivery centres that were co-located with Centrelink offices.
Electronic access was improved by the implementation of a secure internet portal that allows people to
access online services from Centrelink, Medicare Australia and CSA using a single password. The portal
also includes a cross-agency search engine, links to self-assessment calculators and access to relevant
announcements.
Fraud and non-compliance
The Core Department continued its coordination role in the 2007-08 Budget, bringing together a crossportfolio package of measures to address social welfare fraud. The Australian Government committed
$113.8 million to this package, which will result in net savings of $269.4 million over three years. As part
of the cross-portfolio package, the Minister for Human Services put forward a measure that will establish
a real-time link between Centrelink and the Department of Immigration and Citizenship from July 2008.
The link will enable Centrelink to confirm eligibility for social welfare payments and concessions, and will
significantly improve payment accuracy and streamline service delivery.
Indigenous Australians
In partnership with the Human Services agencies, the Core Department continued to give priority to
communication strategies aimed at improving access for Indigenous Australians to social and healthrelated services. Centrelink's communication network was enhanced to offer information and services on
behalf of all Human Services Portfolio agencies. The Indigenous Ambassadors Programme was
expanded and has been of significant benefit in improving awareness of government services in
Indigenous communities. Community connections have also been built by agency participation in Access
and Employment Roadshows and by supporting more than 90 joint agency visits to regional and remote
Australia.
Child Support Scheme reforms
CSA implemented the first two of three stages of significant reforms to the Child Support Scheme during
the year. The reforms support the concurrent reform of the family law system, which aims to encourage
shared parental responsibilities and strengthen relationships between intact and separated families.
CSA responded well to the major challenge of implementing the reforms while delivering 'business as
usual', and it worked to ensure that parents affected by the reforms, and employers who deduct child
support payments on behalf of such parents, were kept informed. Staff development and recruitment
activities were undertaken to expand CSA's capability in preparation for the implementation of the final,
most complex stage of the reforms from July 2008.
At the same time, CSA continued to refine many aspects of its operations to improve the experience that
customers have when dealing with the agency, through the Building a Better CSA change agenda. The
benefits of Building a Better CSA were demonstrated through higher customer satisfaction ratings
across many aspects of CSA products and services, as well as lower numbers of complaints.
Through its collection activities, CSA worked with separated parents to transfer a record $2.68 billion to
support approximately 1.2 million children in separated families in 2006-07. During the year, CSA
increased its focus on compliance activities directed to establishing the right amount of child support
payable and to sending a message to those who seek to avoid their responsibilities that CSA will pursue
outstanding amounts.
Vocational rehabilitation services
The high quality of services and operations of CRS Australia was given clear endorsement in 2006-07.
The annual stakeholder satisfaction survey found that 89 per cent of job seekers were satisfied or very
satisfied that their vocational rehabilitation programmes met their needs, and 82 per cent rated CRS
Australia staff highly for their helpfulness, understanding and ability to provide support and assistance
The auditor that assessed the organisation for its ongoing accreditation commented on CRS Australia's
well-managed system, consistent organisational values, strong commitment from both staff and
management to the welfare of clients, excellent compliance with the Disability Service Standards, strong
teamwork approach, and the wide range of skills, experience and qualifications of its staff.
In addition to providing employment outcomes and assisting more than 48,200 job seekers through its
vocational rehabilitation programmes, CRS Australia continued to develop tailored services and
innovative approaches to assist people with disabilities, injuries or health conditions. CRS Australia also
gave priority to reviewing its practices and providing targeted training and development to its staff to help
ensure the organisation's readiness for the introduction of partial contestability for vocational
rehabilitation services from 1 July 2007.
The year ahead
DHS and the Portfolio face another very challenging year in 2007-08. The growing emphasis on the
importance of the delivery of government policy, both in the development and implementation stages,
highlights the significance of the task ahead for the Portfolio as a whole.
In this context, DHS will continue to work towards achieving improved access to social and healthrelated services for Australians through the timely, efficient and effective delivery of Australian
Government commitments and budget measures. This work continues to be underpinned by two
fundamental objectives for social and health-related services: to achieve best value for money in service
delivery and to emphasise innovation and continuous improvement in providing service to the public.
The access card is a major project which has significant potential for service delivery across the health
and welfare area. Responses to the exposure draft of the legislation will feed into the Human Services
(Enhanced Service Delivery) Bill 2007 to go before the Parliament and work will be finalised on the
major contracts to enable the access card system to be built. Throughout 2007-08, detailed work will be
undertaken to finalise administrative rules governing the access card registration process. An important
part of this process will be continuing the work with all stakeholder groups to ensure that registration is
as streamlined as possible for all members of the community. In particular, the needs of vulnerable
people and those in remote communities need to be taken into account.
The Core Department will give priority during the year to its work with other departments and agencies to
develop a more strategic approach to dealing with fraud and non-compliance.
The Core Department will also play a lead role in coordinating and improving the effectiveness of
services provided by Portfolio agencies to Indigenous Australians through the implementation of welfare
reforms and other initiatives to create a safe and healthy environment for children.
CSA will face the particular challenge of implementing the third and most complex phase of the Child
Support Scheme reforms, which involves the introduction of a new formula for calculating child support
assessments. At the same time, CSA will continue to raise the community's awareness of and
confidence in the Child Support Scheme, while building the capability and responsiveness of the agency.
CRS Australia will have the challenge of competing in the new partially contestable vocational
rehabilitation market.
I thank the General Manager of the Child Support Agency, Matt Miller, the General Manager of CRS
Australia, Margaret Carmody, and staff across the Core Department of Human Services for their strong
performance in 2006-07. I look forward to working with them, and with the other Human Services
agencies, to achieve the Portfolio's objectives in 2007-08.
Helen Williams AO
Secretary
OVERVIEW
The Human Services Portfolio
Minister for Human Services
Senator the Hon Chris Ellison
In October 2004, the Department of Human Services was established within the Finance and
Administration Portfolio. In January 2007, the Department became an Australian Government portfolio
department in its own right. Its primary role is improving the development and delivery of government
social and health- related services to the Australian people.
The Minister
The Minister for Human Services is Senator the Hon Chris Ellison, who has been a Senator for Western
Australia since 1993 and Minister for Human Services since 9 March 2007.
The Minister is responsible for the administration of 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 Child Support Registrar under the Act;

Child Support (Registration and Collection) Act 1988, insofar as it relates to the appointment of the
Child Support Registrar and the exercise of the powers and functions conferred on the Registrar
under the Act;

Commonwealth Services Delivery Agency Act 1997; and

Medicare Australia Act 1973.
During the reporting period, the position of Minister for Human Services was also held by the Hon Joe
Hockey MP (to January 2007) and the then Senator the Hon Ian Campbell (to March 2007).
Portfolio structure
The Portfolio Department of Human Services (DHS) includes the Core Department, the Child Support
Agency (CSA) and CRS Australia:

the Core Department directs, coordinates and brokers improvements to service delivery across
Human Services agencies;

the Child Support Agency helps separated parents transfer payments for the benefit of their
children; and

CRS Australia provides vocational rehabilitation services to people with a disability, injury or health
condition, and helps employers keep their workplaces safe.
Centrelink delivers a range of government payments and services for retirees, families, carers, parents,
people who are seeking work or studying, people with disabilities, Indigenous people, and people from
culturally and linguistically diverse backgrounds, and provides wider services at times of major change.
Medicare Australia administers a range of health and payment programmes, including Medicare, the
Pharmaceutical Benefits Scheme, the Australian Organ Donor Register, the Australian Childhood
Immunisation Register and Aged Care Payments to approved aged care providers. Medicare Australia
also delivers Family Assistance Office services.
Australian Hearing provides a range of hearing services for a broad group of eligible Australians,
including children and young people up to the age of 21 years, eligible adults and aged pensioners, and
war veterans.
The HSA Group focuses primarily on providing occupational health, safety and medical assessments.
The Human Services Portfolio is shown in Figure 1.
Figure 1 Human Services Portfolio structure at 30 June 2007
Performance reporting
Section 63 of the Public Service Act 1999 stipulates that departmental annual reports must be prepared
in accordance with the guidelines approved on behalf of the Parliament of Australia by the Joint
Committee of Public Accounts and Audit in Requirements for annual reports for departments, executive
agencies and FMA Act bodies. DHS has prepared this report in accordance with those guidelines and as
required by the Financial Management and Accountability Act 1997.
The agencies within the Human Services Portfolio that do not form part of DHS (Centrelink, Medicare
Australia, Australian Hearing and the HSA Group) report according to different legislative requirements
and publish their own annual reports. Detailed information about the activities and responsibilities of the
agencies may be obtained from each agency's website.
Reporting arrangements for all entities within the Human Services Portfolio are outlined below.
Core Department
The Core Department reports in this annual report on its performance, corporate governance and other
matters as required by legislation. It reports against the Human Services Portfolio Budget Statements
2006-07 and Portfolio Additional Estimates Statements 2006-07.
Internet: www.humanservices.gov.au
Telephone: 1300 55 44 79
Child Support Agency
CSA reports in this annual report on its performance, corporate governance and other matters as
required by legislation. It reports against the Human Services Portfolio Budget Statements 2006-07 and
Portfolio Additional Estimates Statements 2006-07.
Internet: www.csa.gov.au
Telephone: 131 272
CRS Australia
CRS Australia reports in this annual report on its performance, corporate governance and other matters
as required by legislation. It reports against the Human Services Portfolio Budget Statements 2006-07
and Portfolio Additional Estimates Statements 2006-07.
CRS Australia's performance is also reported in the annual report of the Department of Employment and
Workplace Relations in respect of its delivery of vocational rehabilitation services funded by that
department.
Internet: www.crsaustralia.gov.au
Telephone: 1800 277 277
Centrelink
Centrelink, an agency formed under the Commonwealth Services Delivery Agency Act 1997, provides its
own annual report covering its performance, corporate governance and other matters as required by
legislation. It reports against the Human Services Portfolio Budget Statements 2006-07 and Portfolio
Additional Estimates Statements 2006-07.
Internet: www.centrelink.gov.au
Telephone: 1800 050 004
Medicare Australia
Medicare Australia provides its own annual report covering its performance, corporate governance and
other matters as required by legislation. It reports against the Human Services Portfolio Budget
Statements 2006-07 and Portfolio Additional Estimates Statements 2006-07.
Internet: www.medicareaustralia.gov.au
Telephone: 132 01 1
Australian Hearing
Australian Hearing is a Commonwealth Statutory Authority. It publishes its own annual report under the
Commonwealth Authorities and Companies Act 1997 and the Australian Hearing Services Act 1991.
Internet: www.hearing.com.au
Telephone: 131 797
HSA Group
HSA Group is a public non-financial corporation. It publishes its own annual report under the
Commonwealth Authorities and Companies Act 1997.
Internet: www.hsagroup.com.au
Telephone: 1300 361 046
The Portfolio Department of Human Services
The Portfolio Department of Human Services (DHS) comprises the Core Department, the Child Support
Agency (CSA) and CRS Australia. Unless otherwise indicated, references in this document to the
Department refer to these three groups.
Outcome and output structure
The planned outcome of DHS is:
Effective and efficient delivery of social and health-related services, including financial
assistance, to the Australian community.
Each of the three parts that constitute DHS produces one output, as defined in the Portfolio Budget
Statements and Portfolio Additional Estimates Statements, to deliver this outcome. These are set out in
Figure 2 below.
Figure 2 summarises the structure and purpose of DHS at 30 June 2007.
Figure 2 DHS outcome and outputs, at 30 June 2007
Corporate governance
This section describes corporate governance matters that are common to the Core Department, CSA
and CRS Australia. Owing to the particular structure of DHS, the separate corporate governance
arrangements of each group making up DHS are detailed in the output sections of this report.
The executive
Executive responsibilities
The Secretary is directly responsible to the Minister for Human Services for the leadership, sound
management and performance of DHS. She is responsible for delivering strong organisational
performance by determining priorities and resource allocations across DHS, and for shaping the
Portfolio Department's future.
The General Manager of CSA is responsible for the leadership, sound management and performance of
CSA within the delegations established by the Secretary. This position also holds the statutory office of
the Child Support Registrar, which has legal responsibility for the administration of child support
legislation.
The General Manager of CRS Australia is responsible for the leadership, sound management and
performance of CRS Australia within the delegations established by the Secretary.
Executive remuneration
Salary ranges for executive employees are provided in Appendix 1.
Information on executive staff members who received, or were due to receive, total remuneration of
$130,000 or more is set out in Note 13 to the financial statements in this report.
Portfolio Department governance framework
Agency Heads Meeting
A regular meeting is held bi-monthly or more frequently to discuss and resolve matters relating to all
agencies in the Human Services Portfolio. The Agency Heads Meeting is attended by:

Secretary Portfolio Department (as Chair);

Deputy Secretaries Core Department;

General Manager CSA;

General Manager CRS Australia;

Chief Executive Officer Medicare Australia;

Chief Executive Officer Centrelink

Managing Director HSA Group; and

Managing Director Australian Hearing.
The Executive Officer to the Secretary provides secretariat services to the meeting.
Audit arrangements
Medicare Australia, Centrelink, HSA Group and Australian Hearing have separate audit arrangements.
DHS's Audit Committee is responsible for:

reviewing, monitoring and recommending improvements in the corporate governance framework of
DHS, including internal controls, risk management, compliance and financial reporting; and

overseeing internal and external audit processes within DHS.
An external provider delivers internal audit services to DHS.
In 2006-07, the Audit Committee oversaw the integration of the corporate governance frameworks of
DHS into a wider departmental governance framework consistent with the Australian National Audit
Office better practice guide Public Sector Audit Committees.
The membership structure of the Audit Committee in 2006-07 is shown in Table 4 in Output 1 Core
Department. Membership of the committee is determined by the Secretary in consultation with the
Executive Management Committee and is for a fixed term, as determined by the Secretary.
Jeff Popple, Acting Deputy Secretary of the Core Department, chaired the committee (following the
departure of Geoff Leeper in January 2007) in 2006-07. The two independent members, Jenny Morison
and Len Early, have specialist skills in financial reporting, risk management and corporate governance.
As a result of changes to committee membership agreed to in May 2007, the Audit Committee for 200708 will be made up of the Chair and two independent members only.
Financial overview
This section provides a summary of financial performance for 2006-07 of the full Portfolio Department,
including the Core Department, CSA and CRS Australia. Results are shown in the audited financial
statements and this summary should be read in conjunction with those statements.
DHS's total resources are shown in some detail in Table 1. The administered and departmental
expenses incurred in delivering the department's outputs are also detailed in Table 1, as is the budget
allocation for 2007-08.
Departmental financial performance
DHS's statement of financial performance reports an operating surplus of $18.6 million, which is 2.9 per
cent of the revenue available to the Department. The result was less than the operating result of $28.1
million forecast for the 2006-07 year in the Portfolio Budget Statements 2007-08.
Table 1 Total resources for Outcome 1, $'000
(1) Budget
2006-07a
(2) Actual
expenses
2006-07
Variation (2) (1)
Budget 200708b
Administered expenses
Child Support
997,257
1,110,030
112,773
1,040,446
Welfare to Work
119,716
103,539
-16,177
141,130
1,116,973
1,213,569
96,596
1,181,576
Output 1: Core Department
79,157
73,847
-5,310
142,083
Output 2: Child Support
Agency
369,729
370,141
412
466,971
Output 3: CRS Australia1
-
-
-
-
Subtotal departmental
outputs
448,886
443,988
-4,898
609,054
Total administered expenses
Price of departmental outputs
(1) Budget
2006-07a
(2) Actual
expenses
2006-07
Variation (2) (1)
Budget 200708b
Revenue from government
(appropriation) for
departmental outputs
448,886
448,886
-
609,054
Revenue from other sources
233,717
199,419
-34,298
220,178
Total price of outputs
682,603
648,305
-34,298
829,232
1,799,576
1,861,874
62,298
2,010,808
Total for Outcome 1
(price of outputs and administered expenses)
Average staffing level
2006-07
2007-08
5,126
6,509
a Full-year budget, including additional estimates.
b Budget prior to additional estimates.
c
CRS Australia is a business operation and as such did not receive direct appropriations in the 200607 Budget.
Statement of financial performance
Revenue
DHS was appropriated $404.7 million in the 2006-07 Budget. In February 2007, under the 2006-07
Portfolio Additional Estimates Statements, DHS was provided additional funding of $44.2 million,
bringing the total appropriation for 2006-07 to $448.9 million. Of this, $79.2 million was for the Core
Department and $369.7 million was for CSA.
In addition, DHS recognised further revenue of $199.4 million, primarily from the provision of vocational
rehabilitation services by CRS Australia (see Figure 3). Total revenue received by DHS in 2006-07 was,
therefore, $648.3 million.
Expenses
DHS's expenses totalled $630.2 million: $73.8 million for the Core Department, $370.1 million for CSA
and $186.3 million for CRS Australia (see Figure 4).
Figure 3 Departmental revenue by agency
Figure 4 Departmental expense by agency
Figure 5 Departmental expense by type
Statement of financial position
Equity
DHS's total equity is $141.4 million, representing an increase of $79.0 million during 2006-07. This
reflects the retention of the 2006-07 surplus of $18.6 million as well as the impact of injections of equity
into CSA and the Core Department during the year.
Assets
DHS's assets total $294.7 million and can be categorised as:

cash;

fixed assets (infrastructure, plant and equipment, land and buildings);

intangibles (non-physical assets such as software);

receivables; and

other non-financial assets (prepayments).
DHS has $189.3 million recorded as a receivable in the Official Public Account. Of this amount, $55.1
million is held for the Core Department, $69.3 million for CSA and $64.9 million for CRS Australia.
Liabilities
DHS has total liabilities of $153.3 million. This consists of employee provisions of $86.7 million, buildingrelated provisions of $17.9 million, trade creditor provisions of $40.8 million and other payables of $7.8
million.
Administered items
CSA's administered activities include the provision of assessment, registration, collection and
disbursement services that facilitate the transfer of child support payments between separated parents
for the support of their children.
The Core Department receives administered appropriations to fund expenses in respect of Job Capacity
Assessments, administered dividend revenue from Australian Hearing and the HSA Group, and
competitive neutrality revenue from Australian Hearing.
All administered receipts are transferred directly to the Official Public Account.
OUTPUT 1 Core Department
Highlights of 2006-07

Developing the access card business framework including delivery of tender processes, procurement
and contract management activities

Developing strategies for the rollout of the access card capability across participating and registration
agencies

Undertaking an information campaign to raise awareness and inform the Australian community about
the access card

Overseeing the successful first year of implementation of the Job Capacity Assessment Programme,
with more than 363,000 assessments completed, meeting timeliness targets across remote and nonremote areas

Working with CSA and Centrelink on implementation of the first two stages of the Child Support
Scheme reforms

Contributing to more than 50 whole-of-government policy deliberations, providing advice on service
delivery across a range of policy areas, including child support scheme reforms

Coordinating the 2007-08 Budget process for the Human Services Portfolio, securing $315.7 million
over four years to implement a total of 71 measures

Coordinating a cross-portfolio package of 17 measures to reduce health and welfare fraud and
improve compliance efforts across health and social welfare payments

Developing a Reconciliation Action Plan to increase Indigenous employment, and develop and
promote a greater appreciation of and respect for Indigenous Australians

Implementing a range of strategies to improve Indigenous Australians' awareness of and access to
government services

Taking part in a national exercise designed to test the capacity and capability of the Australian health
response to an influenza pandemic, and finalising pandemic influenza plans for the Human Services
Portfolio

Enabling a single sign-on capability through a Human Services web-based portal for people who use
the internet to access government services

Working with Centrelink and Medicare Australia to improve customer access to services through the
deployment of Family Assistance Office services in Medicare offices and the trialling of extended
service delivery options in selected Medicare and Centrelink offices

Working with Centrelink to reduce call centre waiting times (by over 31 per cent, to an average of one
minute and 50 seconds, down from two minutes and 40 seconds in 2005-06).
Introduction
The Core Department plays a leadership and coordinating role across the Human Services Portfolio. In
particular, it focuses on cross-portfolio objectives such as the reduction in health and welfare fraud,
improved access to services for Indigenous Australians and major cross-portfolio programmes such as
the development of the access card and the implementation of Job Capacity Assessments.
At the same time, the Core Department worked to implement successful approaches to improve the
efficiency of Human Services service delivery agencies. These include expanding options for physical
and electronic access, reducing red tape and improving communications, and lowering levels of staff
absenteeism. Through its oversight of joint procurement and property management, and promotion of
other cross-agency synergies, the Core Department also contributes to reduced costs and
environmental impacts across the Portfolio.
Given its broad focus and suite of responsibilities, the Core Department has a unique opportunity to
meet the changing needs of clients and customers. This year's annual report shows that the Core
Department is supported by effective cooperation between agencies.
Output overview
Purpose
The Core Department's purpose is:

to improve the delivery of social and health-related services to the Australian people; and

to ensure that the government is able to get best value for money in service delivery.
The Core Department plays a leadership role in the Human Services Portfolio, working with and through
the Child Support Agency and CRS Australia, which form part of the Department, and also Centrelink,
Medicare Australia, Australian Hearing and the HSA Group, which form part of the Human Services
Portfolio. It also works with other Australian Government departments to ensure that the need for the
most efficient and effective service delivery is taken into account as social and health-related policies are
developed.
Figure 6 Core Department—organisational structure and senior staffing at 30 June 2007
Strategy
The Core Department meets its broad purpose through a set of goals that are clearly defined in its
strategic plan. The Strategic Plan 2006-07 describes how the Core Department will achieve its goals by:

taking a customer perspective in reviewing services offered by Human Services agencies, to promote
simplicity in delivery;

ensuring that products and services meet customer needs;

ensuring that Australians are able to access government services in a contemporary way, including
via the telephone and internet;

balancing customers' preferences for services with the risks to taxpayer funds caused by fraud and
incorrect payment; and

ensuring that the service delivery agencies deliver value for money in service provision, and have
justifiable and sustainable financial arrangements.
The Strategic Plan 2006-07 also identifies the Core Department's approach to its work, and the values
that guide its operations. The plan can be accessed through the publications section of the website at
www.humanservices.gov.au
Structure
In 2006-07, the Core Department was structured around three divisions and the Office of Access Card
(OAC), Medicare Electronic Claiming—with Deputy Secretary Rona Mellor outposted to Medicare to lead
this project—and Legal Branch, as shown in Figure 6.
Service Delivery Operations
The Service Delivery Operations Division is responsible for:

managing the Job Capacity Assessment and Job Capacity Account Programmes;

contributing to the development of high- level service delivery strategies within the portfolio;

implementing effective communication strategies;

developing and driving approaches that use information and communications technology to improve
quality and cost efficiencies of services;

driving the effective governance of major change initiatives;

monitoring and analysing the performance of the Human Services agencies and the services they
provide, to drive performance improvements;

improving service delivery for Members of Parliament, Senators and their constituents through the
Local Liaison Officer Programme; and

analysing audit report findings.
Policy and Strategy
The Policy and Strategy Division is responsible for:

working to ensure that service delivery implications are taken into account in the development and
implementation of Australian Government policy that impacts on the Human Services Portfolio;

developing an annual policy and budget framework that addresses the Minister's priorities;

coordinating input from across the portfolio into the Budget process;

developing and contributing to the implementation of service delivery reforms;

contributing to programme design and service delivery improvements to better meet the needs of
Indigenous Australians;

reviewing, monitoring and overseeing the implementation of government initiatives, including fraud
and compliance measures; and

undertaking specific service delivery projects and developing and maintaining effective networks with
agencies and other departments.
Financial Analysis and Corporate
The Financial Analysis and Corporate Division is responsible for:

providing financial management and support services;

providing corporate governance and support structures, covering legislative compliance and audit,
risk management and fraud control processes;

managing human resources, including recruitment, training and development, and occupational
health and safety matters;

managing corporate services, including information technology and security;

dealing with complaints;

coordinating ministerial and parliamentary services, including correspondence, briefings and answers
to questions; and

coordinating the provision of consistent, accurate and timely portfolio information to the Minister and
the Secretary.
Legal Branch
Legal Branch is responsible for:

providing legal services to the Core Department and the Minister for Human Services;

making sure the Core Department meets legal requirements and manages legal risk;

coordinating legal advice and information on issues involving the Human Services agencies and
particular legal matters affecting or involving more than one agency or the Commonwealth generally,
including in relation to information policy issues;

participating in internal service delivery policy analysis and providing legal advice and legal-policy
advice, including on specific projects requiring legal support;

coordinating and managing the Australian Government's Human Services Portfolio legislative
program; and

considering opportunities for improved synergies in the performance of the Human Services
agencies' legal work.
Office of Access Card
The Office of Access Card (OAC) consists of five divisions and the Access Card Legal Branch.

The Access Card Legal Branch is responsible for providing legal advice to the Office of Access
Card Divisions on legislative and procurement issues relating to the Access Card Programme,
providing drafting instructions to the Office of Parliamentary Counsel and preparing the explanatory
materials for the access card legislation.

The Programme Management Division is responsible for planning, monitoring and reporting on the
risks, issues, changes, finances and overall progress of the implementation of the Access Card
Programme. In addition, it provides management information to model and support the overall rollout
of the programme.

The Business Division is responsible for the development and implementation of the access card
service delivery arrangements, including registration, customer contact and business processes in
participating agencies and service providers.

The Technology Division is responsible for technical assurance of access card systems to enable
the Office of Access Card Programme delivery a fit for purpose, secure and end-to-end integrated
technology product.

The Procurement and Implementation Division is responsible for key tenders, coordination and
oversight of procurement and contract management activities and developing strategies and detailed
plans for the effective and coordinated rollout of the Access Card capability across participating and
registration agencies.

The Communication and Stakeholder Engagement Division is responsible for the development of
policy advice, the engagement of stakeholders and communication activities for the Access Card
Programme.
The resources of OAC are complemented by expertise from Booz Allen Hamilton, KPMG, Minter Ellison
and the Australian Government Solicitor.
Performance
The Core Department is responsible for Output 1 of the Department of Human Services (DHS) Portfolio:
Facilitation and promotion of effective and efficient delivery of social and health-related services.
Table 2 reports the Core Department's results against the performance measures for Output 1 set out in
the Human Services Portfolio Budget Statements and the Portfolio Additional Estimates Statements for
2006-07.
The following sections describe how the Core Department's performance contributed to Output 1 and
met the objectives of its strategic plan in 2006-07.
Table 2 Core Department—performance measures
Measure
Quantity
Performance
On the basis of experience since the
establishment of the Core Department
in October 2004, the Core Department
expects annually to:

process approximately 7,200 items
of ministerial correspondence;

provide approximately 1,800
briefings to the Minister and his
office; and

prepare draft answers to
approximately 300 parliamentary
questions on notice
Quality
The degree of satisfaction of the
Minister and his office with the quality
and timeliness of advice and the
achievement of key tasks, as expressed
through formal and informal feedback
Price
Price of outputs $79.157 million
In 2006-07, the Core Department:

processed 8,532 items of ministerial
correspondence;

provided 2,197 briefings; and

prepared draft answers to 131
parliamentary questions in writing and 227
written Senate estimates questions
The ability to measure the Minister's
satisfaction with timeliness and quality in
2006-07 was complicated by the need to
collect feedback from three consecutive
Ministers for Human Services and their
respective staff. Feedback from the Minister's
Office indicates a general level of satisfaction
with the day-to-day provision of advice by the
Core Department
Implement the Access Card Programme
The Access Card Programme aims to:

reduce complexity for customers accessing Australian Government services;

facilitate a more convenient, userfriendly and reliable method of accessing Australian Government
benefits and services;

reduce fraud by strengthening identity information; and

improve access to relief in emergency situations.
Since the Office of Access Card was established as part of the Core Department, in May 2006, it has
consulted extensively with interested parties across the public, private and community sectors to ensure
that the implementation of the card meets their needs.
In 2006–07, discussions were held on:

social and health-related policy and service delivery, with non-government consumer, privacy,
charity, welfare, and rural and remote advocacy organisations, government agencies, business
organisations, and financial institutions;

the provision of non–Australian Government concessions to card holders, with business
organisations and state, territory and local governments;

the whole-of-government implementation of the programme, with the Secretaries Group and the
Deputy Secretaries Group on the access card which together represented 14 Australian Government
departments and agencies; and

the security of the technology architecture for the card, with the Australian Federal Police, Australian
Security Intelligence Organisation, Defence Signals Directorate and Department of Foreign Affairs
and Trade.
Table 3 summarises the number of stakeholders (organisations/peak bodies) consulted in each state
and territory during 2006–07.
Table 3 Office of Access Card—number of stakeholders (organisations/peak bodies) consulted to 30
June 2007
Stakeholder
category
ACT
NSW
NT
Qld
SA
Tas.
Vic.
WA
National
Australian
Government
24
-
-
-
-
-
-
-
States and
territories
1
12
-
11
5
5
5
17
Allied health
4
2
-
-
-
-
8
-
Consumer
10
11
-
3
1
1
6
6
Health
11
4
2
1
2
-
4
-
Welfare and
charity
2
1
-
-
-
-
-
1
Business
and retail
3
-
-
-
-
-
-
-
Privacy
1
11
-
1
-
-
2
2
Information
technology
Transaction
delivery
providers
11
2
-
-
-
-
-
-
12
Total
67
43
2
16
8
6
25
26
12
The Core Department also conducted an information campaign to increase awareness of the card. This
campaign included newspaper advertising in 559 publications and radio advertising on 251 stations. In
addition, 850,000 brochures were distributed through Medicare, Centrelink and Department of Veterans'
Affairs offices and a dedicated telephone line and website were established.
In conjunction with Human Services agencies and the Department of Veterans' Affairs, the Core
Department continued to develop the business requirements for the access card system. The Core
Department also invited public tenders to build key aspects of the system. The Australian Government
has committed to ensuring major contracts are not signed until appropriate legislation has been passed.
The Access Card Legal Branch within the Office of Access Card had the lead role in liaising with the
Office of Parliamentary Counsel to prepare exposure drafts of legislation to implement the access card,
including the Human Services (Enhanced Service Delivery) Bill 2007 and the Human Services
(Enhanced Services Delivery) (Consequential Provisions) Bill 2007. In preparing the exposure drafts, the
Office of Access Card considered stakeholder submissions to the previous exposure draft of the
legislation as well as the findings of the inquiry into the earlier draft by the Senate Standing Committee
on Finance and Public Administration. The exposure drafts of the legislation were released during 200607.
The proposed legislation:

clearly states the Australian Government's intention that the access card will not be used as a
national identity card;

addresses a number of issues not covered in previous legislation, including administrative review
mechanisms, privacy issues, and oversight and governance of the access card system;

contains a range of penalties for attempts to demand the card as a form of identification (except for
the limited purposes detailed in the draft), as well as protections against unauthorised access to
personal information contained on the Access Card Register; and

provides considerable detail on how personal information will be protected and who will be
authorised to access information contained in the access card system.
Implement the Job Capacity Assessment Programme
The Job Capacity Assessment Programme provides comprehensive assessment of work capacity, and
referral to early intervention and support, for people with barriers to work.
The Job Capacity Account Programme provides funding for job capacity assessors to purchase shortterm interventions for clients, such as counselling and work conditioning.
The Core Department manages the Job Capacity Assessment and Job Capacity Account programmes.
In 2006-07, about 80 per cent of assessments were undertaken by three government providers
(Centrelink, CRS Australia and the HSA Group), while the remaining 20 per cent were provided by 15
non-government organisations selected through an open tender process.
In 2006-07, the first year of the programme:

assessments were conducted in more than 1,070 locations around Australia;

a total of 363,261 assessments were completed;

approximately 82.5 per cent of assessments in non-remote areas were completed within 10 working
days and 91.9 per cent of assessments in remote areas were completed within 15 working days,
exceeding timeliness targets;

more than 76 per cent of completed assessments resulted in recommended referrals to employment
services— around 70 per cent to employment services such as Job Network and vocational
rehabilitation services, and other social support services such as literacy and numeracy skills training
or community mental health programmes (see Figure 7); and

around 46 per cent of the assessments were used by Centrelink to determine eligibility for the
Disability Support Pension and exemptions from activity requirements for income support payments.
The Job Capacity Account provides funding for job capacity assessors to purchase short-term
assistance programmes, such as pain management and counselling services, to assist people to return
to work. In the first 12 months, more than 11,000 clients were referred to such services. Initially, referrals
built up slowly as job capacity assessors developed a network of organisations to provide the services.
However, since December 2006, assessors have referred more than 7.5 per cent of clients to Job
Capacity Account programmes, exceeding the expected referral rate of 6.8 per cent.
Figure 7 Job Capacity Assessment Programme referrals as percentage of total referrals to services, 3
July 2006 to 29 June 2007
The Core Department improved the support and resources available for job capacity assessors during
the year, with particular emphasis on training and liaison. Highlights included:

the distribution of the Code of Practice in October 2006 and the Client Service Charter in April 2007;

new training in helping people with mental health conditions, developed by an independent expert,
and provided for assessors in December 2006; and

more than 900 random audits of job capacity assessments conducted since December 2006,
providing individual feedback to assessors to assist with continuous improvement.
Working with the Human Rights and Equal Opportunities Commission, the Core Department
implemented a checklist and fact sheet on ensuring access to job capacity assessment sites for people
with disabilities. This work found that all assessment sites were accessible, although providers were
asked to make improvements at 12 sites.
Since meeting with remote service providers in March 2007, the Core Department has been working
with other agencies and job capacity assessment providers to develop approaches to improve job
capacity assessment services in remote communities in 2007-08.
Voluntary referrals and Job Network
Over the past year, voluntary referrals from Centrelink to the Job Network for non-activity tested
customers have been sustained at a high level. In 2006-07, a total of 83,024 people receiving Parenting
Payment or Disability Support Pension were referred to the Job Network by Centrelink. Of these, 74,264
were in receipt of Parenting Payment and 8,760 were receiving Disability Support Pension. This reflects
the ongoing efforts of the Core Department, with the Department of Employment and Workplace
Relations (DEWR) and Centrelink, to support people moving into work. Figure 8 shows the trends, on a
monthly basis from December 2005 to June 2007, in the number of voluntary referrals from Centrelink to
the Job Network. Figure 9 shows the cumulative total of voluntary referrals over the same period.
Figure 8 Monthly voluntary referrals to the Job Network from Centrelink (Disability Support Pension,
Parenting Payment Partnered and Parenting Payment Single)
Figure 9 Cumulative voluntary referrals to the Job Network from Centrelink (Disability Support Pension,
Parenting Payment Partnered and Parenting Payment Single)
Data from DEWR shows that more than 53,000 Parenting Payment customers received jobs through
Job Network in 2006-07. An additional 11,000 jobs were achieved for Disability Support Pension
customers.
Implement child support reforms
In 2006, the Australian Government announced a package of reforms to the Child Support Scheme and
to the way the Child Support Agency (CSA) delivers its services. The reforms support the concurrent
reform of the family law system which aims to encourage shared parental responsibility and to
strengthen relationships in intact and separated families.
The Core Department is working with CSA, Centrelink and the Department of Families, Community
Services and Indigenous Affairs to implement the Child Support Scheme reforms in three stages. Stages
1 and 2 were successfully implemented on 1 July 2006 and 1 January 2007 respectively. The changes
implemented included increasing the minimum child support payment, reducing the income cap on highincome earners, and providing customer access to a mechanism for reviewing CSA decisions through
the Social Security Appeals Tribunal. The final and most complex stage, which includes the introduction
of a new formula for calculating child support payments, will be implemented on 1 July 2008.
The Core Department and CSA continued to work together to implement improvements to the way CSA
delivers its services. Further information about the child support reforms can be found in Output 2—Child
Support Agency.
Contribute to cross-government policy development
Whole-of-government policy development
In 2006-07, the Core Department contributed to whole-of-government policy deliberations, providing
advice on service delivery across a range of policy areas including:

youth and education;

immigration and citizenship,

health, aged care and mental health;

Indigenous Australians;

cultural diversity;

welfare reform;

families and community services, including child care and child support;

business regulation; and

delivery of the LPG rebate.
Budget strategy 2007-08
The Core Department coordinated the 2007-08 Budget process for the Human Services Portfolio. The
Human Services Portfolio will receive $315.7 million over four years to implement a total of 71
measures, focusing on:

providing support to rural communities affected by the drought, particularly irrigators and farmers in
the Murray-Darling Basin;

providing continuous access to human services;

achieving efficiencies in the Human Services agencies through improved work practices, without
compromising effective service delivery; and

addressing gaps and improving levels of payment accuracy through greater prevention and detection
of fraud and non-compliance.
Fraud and compliance strategies
In 2006-07, the Core Department coordinated a cross-portfolio fraud and compliance package, and
examined a range of strategic fraud and compliance issues affecting the management of social, health
and welfare programmes.
In the 2007-08 Budget, the Australian Government announced:

a joint project with the Department of Finance and Administration, in consultation with other
departments, to develop a more strategic approach to fraud and non-compliance; and

17 fraud and compliance measures across the Human Services Portfolio and the portfolios of:

Education, Science and Training;

Employment and Workplace Relations;

Families, Community Services and Indigenous Affairs; and

Veterans' Affairs.
The 17 measures are expected to produce net savings of $269.4 million over three years.
National mental health plan
In April 2006, the Council of Australian Governments (COAG) agreed to a national action plan on mental
health to promote better mental health and provide additional support to people with mental illness, their
families and their carers.
The plan represents a commitment to deliver mental health services in a more integrated way, both
between governments and between the government and non-government sectors. Governments have
agreed to a model of community-based coordinated care for the people with serious mental illness who
are most likely to benefit and who are most at risk of falling through the gaps in the system.
The Core Department and Centrelink participated in developing the plan and are now involved in
implementing the package of measures through membership of the COAG Mental Health
Implementation Interdepartmental Committee. Medicare Australia is also involved in the implementation
of a number of measures in the package.
Commitment to reconciliation
The Core Department contributed to the development of the Australian Government's Reconciliation
Action Plan (RAP) strategy, which aims to reduce the disadvantage experienced by Indigenous
Australians.
The Core Department's Reconciliation Action Plan was registered with Reconciliation Australia on 24
May 2007 and launched at Old Parliament House on 30 May 2007. The plan focuses on:

improved service delivery for Indigenous people and their communities;

increased employment and development of Indigenous people; and

greater appreciation and respect for Indigenous Australians, and the promotion of cultural awareness
across the Core Department.
Immigration policy
The Core Department provided and coordinated advice on the development and implementation of
immigration policy in 2006-07, including:

the delivery of citizenship tests through Centrelink and Medicare Australia offices;

English language training and employment services; and

humanitarian settlement services.
Preparedness for pandemic influenza
In October 2006, the Department of Health and Ageing hosted Exercise Cumpston 06, a national
exercise designed to test the capacity and capability of the Australian response to an influenza
pandemic. The Core Department participated in the decision-making and coordination aspects of the
exercise. Centrelink provided assistance with the national telephone hotline and the monitoring of home
quarantine.
In November 2006, the Core Department finalised pandemic influenza plans for the Human Services
Portfolio, addressing the relevant recommendations of the National Action Plan for Human Influenza
Pandemic, and made changes to business arrangements to ensure that critical services would continue
to be delivered in the event of an influenza pandemic.
Reduce fraud, errors, debts and overpayments
As described in last year's annual report, the Core Department coordinated a strategic package of fraud
and compliance reforms for the 2006-07 Budget. During 2006-07, Human Services agencies
commenced implementing 16 of the measures, including seven Human Services measures.
The 2006-07 fraud and compliance package included measures to address serious fraud, including highprofile and complex cases, and encouraged stronger partnerships across service delivery agencies. The
new measures coordinated by the Core Department for the 2007-08 Budget built on the 2006-07
package, further developing cross portfolio collaboration to achieve a greater reduction of fraud and noncompliance.
Simplify agency forms and letters
Human Services agencies have made significant progress in reducing and simplifying their forms and
letters. In 2006-07, more than 240 letters and forms from Centrelink, Medicare Australia and CSA were
reviewed, and 38 letters and forms were abolished. It is expected that the changes will result in savings
of more than 10 million pages in a year, across the three agencies.
Implement effective communication strategies
Corporate communication
In 2006-07, various communication materials were developed to support business areas and projects in
the Core Department and across DHS. These materials included the Core Department's strategic plan,
the DHS annual report, budget media kits, online communication, and a portfolio-wide newsletter 1+1=3.
Communication campaigns
The Core Department developed and managed the implementation of information campaigns to provide
more proactive, consistent and better targeted communication to Human Services customers during the
year.
In conjunction with Centrelink and with advice from the Department of Agriculture, Fisheries and
Forestry, the Core Department conducted the Drought Assistance campaign from December 2006 to
June 2007. The campaign used television, radio and press advertising, direct mail, the internet and
public relations activities to inform farmers and small businesses that depend on the agricultural sector
about the government assistance available to them. Indicators that the drought campaign was effective
in reaching its intended audience included increased calls to the Drought Assistance Hotline during the
advertising periods, and increased awareness among stakeholder groups, as confirmed through
benchmarking and tracking research undertaken after each phase of the campaign.
In conjunction with Medicare Australia, the Core Department is developing a communication campaign
to inform consumers and medical practices about Medicare Easyclaim—a fast, easy and convenient way
to claim Medicare rebates in the doctor's surgery.
Indigenous Australians
In 2006-07, the Core Department, in partnership with Human Services agencies, continued to implement
communication strategies to improve access to social and health-related services for Indigenous
Australians.
Centrelink's communication network was enhanced to offer information and services on behalf of other
Human Services agencies. The communication network includes the Indigenous Call Centre—which
covers Queensland, Western Australia and the Northern Territory—and the Customer Service Centres,
Remote Area Service Centres and agents in 50 locations across rural and remote Australia.
The Core Department and Human Services agencies built community connections by participating in
Access and Employment Roadshows, attending eight 'Croc Fest' events in regional and remote
Australia, and supporting more than 90 joint agency visits to regional and remote Australia.
The Indigenous Ambassadors Programme, launched in May 2006, was expanded to include women's
touch footballer Bo de la Cruz and Australian Football League player Michael O'Loughlin. The
ambassadors have been very influential in improving awareness of government services in Indigenous
communities. The programme assists the Human Services Portfolio's extensive network of Indigenous
specialist staff to deliver vital services and honour the Government's commitment to work with Aboriginal
and Torres Strait Islander people.
Local liaison
The Local Liaison Officer Programme, which commenced in February 2005, continued to assist federal
parliamentarians with handling constituents' enquiries or grievances about Human Services agencies.
Local liaison officers are assigned to every federal parliamentarian as a single point of contact for
information and support about Human Services agencies.
By the end of 2006-07, approximately 11,091 referrals had been received through the programme, 99.6
per cent of which were responded to within two working days. There has been a very high take-up of this
service—100 per cent of Members of Parliament and 92 per cent of Senators have used the Local
Liaison Officer Programme.
Increase the use of online services
The Core Department continued to investigate ways in which information and communications
technology can improve the delivery of services and the efficiency of Human Services operations.
In March 2007, the Core Department enabled a single sign-on capability for the increasing numbers of
customers who choose to use the internet to access government services. Through the new, secure
internet portal at myaccount.humanservices.gov.au, people who are already registered to use internet
services with Centrelink, Medicare Australia and CSA can now choose to link all of their log-ons together
under one password.
Other features of the portal include:

a cross-agency search engine and office locator;

links to self-assessment calculators and other useful websites; and

access to relevant news and announcements.
The take-up of online services continued to increase across the Human Services Portfolio, with
significant increases evident in both new customer registrations and the use of online information and
transaction services.
Implement Medicare Easyclaim in medical practices
Medicare Easyclaim will allow patients to claim Medicare rebates through EFTPOS terminals at
participating doctors' surgeries. Both doctors and patients will benefit from the facility. Doctors will
receive faster bulk-bill rebates and have less paperwork, and patients will have their rebates paid almost
instantly, directly into their bank accounts, without having to visit a Medicare office.
The Core Department made a strong contribution to the work of the Electronic Medicare Claiming
Interdepartmental Committee and the development of the Cabinet submission for Medicare Easyclaim.
Since the introduction of Medicare Easyclaim was announced by the Prime Minister in August 2006, the
Core Department, working with Medicare Australia, has made strong progress towards the goal of rolling
out the facility in the second half of 2007.
In particular, the Core Department worked with Medicare Australia to develop the commercial
arrangements for the project. Two major banks and one internet-based EFTPOS provider have already
been contracted to deliver the service.
Discussions with other financial institutions are well advanced, with more financial institutions expected
to sign contracts by the end of 2007. The first Medicare Easyclaim transactions were successfully
transmitted in late June 2007.
The communication strategy for the project was developed with leadership from the Core Department.
Direct communication with medical practices to inform them about the new channel and the choices
available for their practices commenced in 2006-07 and will continue as the financial institutions roll out
additional options. A communications campaign for consumers and medical practices is planned for
early 2008.
Improve the efficiency of service delivery agencies
Customer access
In 2006-07, the Core Department continued to coordinate improvements in customer access by colocating related services. The rollout of Family Assistance Offices into all Medicare offices was
completed, ahead of schedule, in November 2006. The new arrangement increases access to a range of
family- related payments previously provided only through Centrelink and the Australian Taxation Office.
In the 2006-07 financial year, around 653,000 customers benefited from this additional flexibility in
service delivery.
The Core Department also coordinated a trial of flexible service delivery options involving Centrelink and
Medicare. Centrelink made some seniors and carers services available through four Medicare sites:

Port Macquarie, New South Wales;

Box Hill, Victoria;

Hillarys, Western Australia; and

Marion, South Australia.
Medicare Australia delivered non-cash services through four Centrelink sites (Sutherland, New South
Wales; Earlville, Queensland; Broome, Western Australia; and Launceston, Tasmania). There was no
reduction in the services offered in the home agency site—for example, where non-cash Medicare
services were offered in a Centrelink site, there was no reduction in the service available in the home
Medicare office.
At the end of the initial six-month trial period, 31 March 2007, a total of 11,014 customers had conducted
business under the flexible service delivery arrangements, including 42 per cent in Medicare offices and
58 per cent in Centrelink offices. The flexible services continue to be delivered in the trial sites with the
results to inform future service delivery decisions.
In 2006-07, Centrelink call centre waiting times were reduced by more than 31 per cent, to an average of
one minute and 50 seconds (from two minutes and 40 seconds in 2005-06).
The Core Department also worked with the agencies to reduce queuing times. These were reduced
through successful management strategies. In 2006-07, 57.6 per cent of Centrelink customers rated the
'length of time in a queue' as either 'good' or 'very good' on their last visit to a Customer Service Centre.
This is an increase from the 2005-06 result of 53.6 per cent.
Procurement
The Core Department and the six Human Services agencies continued to achieve efficiencies through
joint procurement. In 2006-07, Human Services agencies collaborated to purchase a range of goods and
services, including office stationery, personal computers, managed telecommunications services and
legal advice. As in 2005-06, the joint purchasing power of the agencies achieved savings equivalent to
around one per cent of their expenditure on external suppliers. This was achieved through clustered
procurement arrangements and/or synergies and efficiencies achieved by joining existing contracts.
Property management
In 2006-07, the Core Department continued to assist property managers from the Human Services
agencies to work together to leverage their combined assets and achieve efficiencies and benefits to
service delivery through coordinated property procurement, co-location and management.
A major development in 2006-07 was the agreement between agencies to approach the market for a
single property services manager. A single property services contract will result in greater integration
and standardisation of administrative practices, and maximise strategic property alliances for Human
Services agencies that choose to participate. The arrangement will also produce more timely outcomes
for participating agencies, which will support business continuity and enhance customer service. Initially,
Centrelink, Medicare Australia and CSA will participate in the single service provider arrangement.
Environmental performance
The Core Department also negotiated a new cooperative agreement on environmental performance with
the Australian Greenhouse Office, representing a major milestone in reducing the environmental
footprint of the Human Services property network. The environmental policies of Human Services
agencies will now be embedded into business processes; for example, environmentally friendly leases
will be sought and favoured where they are practical and cost effective.
Figure 10 Improvements in rates of unplanned absences across Human Services agencies
Performance management
The Core Department closely monitored the functions, directions, corporate governance and financial
positions of the Human Services agencies in 2006-07. The agencies reported regularly on performance
issues, including audit reports and progress on policy implementation.
The Core Department also continued to monitor monthly achievements against the targets for
absenteeism agreed to by its own staff and the staff of Human Services agencies in 2005-06.
Reductions in unscheduled absences continued to be achieved across the portfolio in 2006-07, leading
to significant productivity gains. Figure 10 shows a consistent improvement across Human Services
agencies in the two reporting periods since the targets were established.
The Core Department continued to regularly brief the Minister on emerging issues and potential
improvements to service delivery across the Human Services agencies.
The Review of the Corporate Governance of Statutory Authorities and Office Holders (Uhrig review)
identified in its report a number of initiatives and policy opportunities for the Government to consider with
a view to improving the performance of statutory authorities. The review indicated that a number of
statutory authorities would benefit from greater clarity in the definition of their purpose, direction and
objectives. To assist the relationship between government, portfolio departments and statutory
authorities, it was recommended that Ministers issue a Statement of Expectations to statutory authorities
within their portfolio where the Minister has a role in providing direction.
In accordance with the recommendations of the Uhrig review, to ensure that the Minister's expectations
were well understood and met, statements of expectations and intent were in place for Centrelink,
Medicare Australia and Australian Hearing during the year. The Core Department also continued to
coordinate quarterly reporting to the Cabinet Implementation Unit on key measures being implemented
across the Human Services Portfolio.
Agency performance audit and risk management
The Core Department's external audit and risk management activities continued to focus on:

providing responses to Australian National Audit Office (ANAO) reports that relate to Human
Services agencies; and

examining and analysing all ANAO performance audits, identifying common themes and lessons to
be applied as better practices within Human Services agencies.
These activities, when combined with other regular reports and executive meetings, provide the Core
Department with the opportunity to proactively manage potential issues in a timely way. The strategic
monitoring of additional mechanisms for external scrutiny, such as reports by parliamentary committees,
enhances the Core Department's capacity to ensure relevant learnings are taken up across the Human
Services Portfolio.
Positioning Human Services agencies to respond quickly to national disasters
Through its membership of the Australian Government Disaster Recovery Committee (AGDRC), the
Core Department provided input to planning for, and management of, the impacts of and recovery from
disasters and critical incidents.
The Core Department and the Department of Families, Community Services and Indigenous Affairs
jointly chair the National Emergency Call Centre (NECC) Subcommittee of the AGDRC. When
implemented in July 2007, the NECC will allow 7,000 call centre operators, from five provider agencies,
to answer calls made to a single disaster hotline in the event of a disaster or emergency of national
significance. This will be supported by systems that provide coordinated, real-time information to the
public and enable the collection and exchange of information between the public and relevant
government authorities.
In 2006-07, the Core Department convened the NECC Operational Steering Committee to provide
operational and technical expertise regarding the implementation of a NECC capability. If the NECC is
activated, a number of agencies in the Human Services Portfolio— Centrelink, Medicare Australia and
CSA—will make a direct contribution to the operation of the NECC.
The Core Department worked with portfolio agencies to build capacity to respond to major emergencies.
In 2006-07, agencies contributed to a number of Australian Government emergency responses,
including the evacuation of Australians from Lebanon in July 2006, the responses to tropical cyclones
George and Jacob in Western Australia in March 2007, and the response to flooding in the Hunter Valley
and Central Coast of New South Wales in June and July 2007.
Since November 2006, the Core Department has been supporting Centrelink's mobile drought
assistance services for drought-affected areas across Australia through the Drought Assistance
campaign. The mobile services involve three 'Drought Buses' travelling to drought-affected communities,
with a primary focus on providing better access to services for communities that do not have a
Centrelink Customer Service Centre. Each bus is staffed by employees of Medicare Australia and
Centrelink and includes a social worker and rural service officers.
In their eight months of operation, the buses have delivered information, advice, drought assistance and
other support services to rural, regional and remote areas in New South Wales, Victoria, Queensland,
Western Australia and South Australia. The buses have visited more than 260 towns, travelled more
than 60,000 kilometres and provided advice and information to more than 8,000 potential and existing
customers.
In June 2007, with cross-agency cooperation within and external to the portfolio, the Murray-Darling
Basin Assistance and Referral Line was established to assist irrigators who face reduced water
allocations and other drought-affected members of rural communities. The telephone assistance line is
supported by cooperation between agencies within the Human Services Portfolio and other Australian
Government agencies.
Vietnamese delegation visits the Department of
Human Services
In May 2007, the Core Department hosted a six-member delegation from Vietnam Social Security, to
share experiences, successes and approaches to delivering social and health-related services, and to
provide an overview of the Core Department's role in managing the Human Services agencies in
Australia.
The Core Department organised and facilitated meetings between the delegates and officials from:

Centrelink and Medicare Australia, to discuss their operations;

the Department of Families, Community Services and Indigenous Affairs, to discuss aged care
policy; and

the Department of Health and Ageing, to discuss health insurance policy.
Participants found the interaction highly valuable. The head of the delegation, Mr Nguyen Thanh Xuyen,
Deputy General of the Vietnam Social Security Agency, stated:
Australia and Vietnam share similar challenges in providing cost-effective social security services to
economically diverse populations in the context of rapidly changing technology and labour markets. I am
impressed at the progress your department is making in addressing these issues.
Figure 11 Core Department—corporate governance framework
Note: The Audit Committee is responsible for CSA and CRS Australia as well as the Core Department.
Management and accountability
Corporate governance
This section reports on aspects of the Core Department's corporate governance arrangements that
function in addition to the whole-of-department measures described in the Overview chapter.
The names and responsibilities of the senior executives of the Core Department are shown in Figure 6.
Governance framework
The Secretary made changes to the corporate governance framework in May 2007. The changes took
effect immediately, except for changes to the Audit Committee membership, which took effect from 1
July 2007.
Figure 11 shows the relationships between the committees that made up the Core Department's
corporate governance framework in 2006-07. Details of those committees and their functions are shown
in Table 4.
Table 4 Core Department—governance committees as at 30 June 2007
Members
Name
Functions
Administration
Helen Williams
Advises on operational matters
and facilitates communication
between SES staff across the
Core Department
Secretariat Executive
Officer to the Secretary
Leadership Group
Secretary (Chair)
Meetings
Weekly
All SES officers
Executive Management Committee
Secretary (Chair)
Helen Williams
Provides advice on policy,
management issues and
priorities
Secretariat
AS Portfolio Coordination
and Corporate
Reviews reports from the Chief
Financial
Deputy Secretaries
Jeff Popple a/g
Kerri Hartland
Rona Mellor
Officer (monthly financial report),
AS Portfolio Coordination and
Corporate (organisational
performance report) and other
governance committees
Meetings
Monitors and, where necessary,
recommends improvements to:
Secretariat Director
Portfolio
Weekly
First Assistant
Secretaries
Audit Committeea
Deputy Secretary
Core Department
(Chair)
Jeff Popple a/g
FAS Financial
Analysis and
Corporate
Chris Dainer
General Manager
CRS Australia
Margaret
Carmody
General Manager
Child Support
Agency
Matt Miller
Two independent
members

risk management
identification and
amelioration;
Coordination (with
Internal Audit)

internal control processes
(including fraud control);
Meetings:

the financial reporting
process;

the functioning of the Internal
Audit Unit;

the external audit process;
and
Quarterly
Members
Name
AS Portfolio
Coordination and
Corporate
(observer)
Functions

processes for monitoring
compliance with legislation,
regulations and government
policy

Maintains an effective
working relationship with the
ANAO
Administration
Chief Financial
Officer (observer)
Chief Internal
Auditor (observer)
ANAO Observer
Information Management Committee
FAS Financial
Analysis and
Corporate (Chair)
Chris Dainer
FAS Service
Delivery
Operations
Alex Dolan
Provides advice to the Executive
Management Committee on:


AS Portfolio
Coordination and
Corporate
Neil Skill
AS Agency
Integration, OAC
Drew Baker
General Counsel
Kathryn
Johnson
Executive Officer to
the Secretary
Felicity Woods/
Kristine Schultz
strategies and policies for the
effective use of information
resources; and
the development of
information infrastructure and
services that support
business outcomes
Secretariat Director
Information
Technology Services
Meetings
Quarterly
Oversees the development and
maintenance of knowledge
management and sharing
Reviews the effectiveness of
internal and external
communications
People and Leadership Committee
FAS Policy and
Strategy (Chair)
Jenny Thomson
a/g
Develops capability, with
particular emphasis on:
Secretariat
Members
Name
Functions
Administration
FAS Financial
Analysis and
Corporate
Chris Dainer

corporate culture and values;

succession planning,
workforce planning and staff
development;
Director People
Strategies
AS Portfolio
Coordination and
Corporate
Neil Skill
AS Access Card
Communications
Barbara Flett
AS Marketing and
Communication
Jenny Barbour
a/g
AS Compliance
and Development
Di White
Executive Officer to
the Secretary
Felicity Woods/
Kristine Schultz

links between the strategic
framework, business
outcomes,

people management
strategies, and people's dayto-day work;

people management and
leadership initiatives,
particularly ii career
development, support and
training;

flexible workplace practices
that help people to balance
their work and personal lives;
and

high-level strategic people
management and leadership
need
Meetings
Quarterly
Security and Business Continuity Committee
FAS Service
Delivery
Operations (Chair)
Chief Technology
Architect, OAC
Alex Dolan
Marie Johnson
Oversees, monitors and reports
on the overall management of
security risks and business
continuity management Prepares
responses to the Australian
Government Annual Protective
Security Survey
Implements security education
and training
Instigates new distribution
controls, where appropriate
FAS Financial
Analysis and
Corporate
Chris Dainer
Reviews the protective security
environment against the
requirements of the Protective
Security Manual Annually
reviews the Protective Security
Plan
Secretariat Agency
Security Adviser
Meetings
Quarterly
Members
Name
Functions
Administration
Maintains a robust Business
Continuity
AS Portfolio
Coordination and
Corporate
Neil Skill
Management Plan, including a
pandemic influenza supplement
Maintains a Business Continuity
Procedur Manual for members of
the DHS Business Continuity
Management Central
Executive Officer to
the Secretary
Felicity Woods/
Kristine Schultz
Coordination Team Maintains
Business Continuity Quick
Roadmaps for managers and
staff Maintains the Emergency
Management Plan
e
Chief Internal
Auditor (observer)
ANAO = Australian National Audit Office, AS = Assistant Secretary, FAS = First Assistant Secretary,
OAC = Office of Access Card, SES = Senior Executive Service, a/g = acting
a The Audit Committee is responsible for CSA and CRS Australia as well as the Core Department.
Internal scrutiny
Internal audit, risk management and fraud prevention
The Core Department has taken a comprehensive approach to risk management, including business
continuity, fraud, security, operations and auditing, by integrating its management of these risks under its
Strategic Internal Audit Plan 2006-09. The Core Department plans to test its business continuity plan in
2007-08.
In 2006-07, the Core Department identified operational and strategic risks through strategic risk
assessments, and implemented action plans and strategies to manage these risks. Strategic risk
assessments were updated in December 2006 and May 2007.
The Audit Committee provides assurance that risks are being identified and addressed across the whole
of DHS.
Management of ethical standards
The Core Department explicitly embraces the Australian Public Service (APS) Values and Code of
Conduct in all its corporate documents and practices, including performance assessments. Training in
the APS Values and Code of Conduct is provided in the Core Department's induction programmes for
new staff and through other courses such as those run by the Australian Public Service Commission
(APSC).
Throughout 2006-07, KPMG provided independent advice to government to ensure that the access card
is implemented in an efficient and cost-effective manner. KPMG implemented an assurance framework
for monitoring the Access Card Programme, reviewing the proposed programme implementation plan to
ensure that it is comprehensive and has an effective control framework and performance reporting
regime.
External scrutiny
Judicial or administrative decisions
In 2006-07, there were no judicial decisions or decisions of administrative tribunals that had a significant
impact on the operations of the Core Department.
Audits of financial statements by the Australian National Audit Office
In the interim audit of the financial statements for 2006-07 (Audit Report No 51 2006-07) DHS received
three B (or moderate) findings. This was an improvement on the four B findings received in the ANAO'S
report for 2005-06. Of the three B findings, one-reconciliation processes—related to both the Core
Department and CSA (the other two related to CSA only). The Core Department has addressed the
issue, which related to sign-off procedures, and considers it resolved. See Output 2 for details of the
other two B findings.
Reports by the Commonwealth Ombudsman or parliamentary committees
In 2006-07, no reports were made on the operations of the Core Department by the Commonwealth
Ombudsman.
Both the Core Department and Centrelink provided responses to the Joint Committee of Public Accounts
and Audit's report No. 407, tabled in September 2006, which examined the implementation of findings
from a number of previous audits on Centrelink systems conducted by the Australian National Audit
Office.
On 7 February 2007, the Human Services (Enhanced Service Delivery) Bill 2007 was referred to the
Senate Standing Committee on Finance and Public Administration to examine:
the intended scope and purposes of the card; the information to be included in the card register and
card's chip and on the card's surface; and the range of offences aimed at prohibiting persons requiring
an access card for identification purposes and prohibiting other improper uses of the card.
Public hearings were held in March 2007 in Sydney, Melbourne and Canberra. DHS appeared before
the committee at its meetings in Sydney and Canberra.
DHS coordinated the Australian Government submission to the inquiry and provided it to the committee
on 28 February 2007. On 9 March 2007, DHS submitted a supplementary submission on key issues
raised in the public hearings.
The Senate committee report of 15 March 2007 included one recommendation: that the bill be combined
with the proposed second tranche of legislation for the access card system into a consolidated bill.
The Minister announced his support for this recommendation in a media release of 15 March 2007.
On 21 June 2007, exposure drafts of the consolidated access card legislation were released by the
Minister.
People
Staffing statistics
At 30 June 2007, the Core Department employed 230 people. Of these, 216 were ongoing and 14 were
non-ongoing.
Detailed information on staffing is provided in Appendix 1.
Human resource management
Attracting and retaining staff
In 2006-07, there was a significant growth of 150 per cent in the number of staff employed by the Core
Department on either an ongoing or non-ongoing basis, corresponding with the growth in Human
Services programmes and initiatives.
Throughout 2006-07, the Core Department also continued to benefit from agency staff on temporary
transfers. The use of temporary transfers built collegiality across the Human Services agencies and
allowed the Core Department to draw on a wealth of diverse experience.
Promoting a safe and supportive workplace
The Core Department participated in the Human Services cross-agency working group to identify,
develop and implement consistent strategies to address occupational health and safety (OH&S)
requirements.
During 2006-07, the Core Department provided training for health and safety representatives, continuing
its commitment under the OH&S legislation to promote and provide a safe and supportive work
environment for employees.
During the Core Department's Health Week 2006-07, 47 employees accepted the offer of free influenza
vaccinations. Education and information packages on various health and lifestyle issues were also
distributed.
The Core Department has trained and appointed eight first aid officers to cover the Core Department's
sites.
Workstation assessments were conducted for all new employees and for existing employees whose
physical work circumstances had altered (for example, through a change of work location). Employees
were assessed by CRS Australia professionals who provided one-on-one assessments and consultation
in regard to individual circumstances and requirements.
Appendix 7 provides details of OH&S performance in 2006-07.
Remuneration
Australian Workplace Agreements
All ongoing and non-ongoing staff of the Core Department are employed on Australian Workplace
Agreements (AWAs). 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;

accountable for efficiency gains, including any reductions in administrative complexity and cost; and

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 provision for performance
bonuses.
The Core Department's Performance Management Scheme draws extensively on the Integrated
Leadership System developed by the APSC. Under this scheme, all staff are required to have
performance agreements, including learning and development plans, in place for each year.
Performance assessments are used to determine eligibility for performance bonuses, which are paid
when an employee receives a rating of four (superior) or five (outstanding) on a scale of five. Bonuses
totalling $407,173 were paid to employees in the 2006-07 financial year. This amount does not include
any bonus paid to the Secretary.
In total, 104 Core Department employees were eligible for performance bonuses, including employees
who had separated from the department before the end of the financial year.
Table 5 Core Department—performance pay for 2005-06
Level
Staff eligible
Staff paid
Amount paid ($)
Average ($)
Australian Public
Service
17
11
27,785
2,525
Executive Level
73
48
186,781
3,891
Senior Executive
Service
14
13
192,605
14,815
Totala
104
72
407,173
a Does not include any bonus paid to the Secretary.
The performance bonuses paid in financial year 2006-07 for performance during the 2005-06 financial
year are set out in Table 5.
Learning and development
Workforce capability requirements in 2006-07 were identified through various sources, including the
organisational learning needs analysis conducted for the Australian Public Service Commission's
(APSC's) 2005-06 State of the Service Report, a staff survey, individual learning and development plans,
and advice from the People and Leadership Committee.
During 2006-07, the Core Department delivered skill development and learning opportunities to:

82 staff members to equip them with further technical skills to perform in their specific roles; and

22 staff members to increase organisational capability through leadership and strategic planning.
The Core Department utilised the APSC's flagship programmes, such as the Career Development
Assessment Centre and Indigenous recruitment initiatives, outbound programmes involving Human
Services agencies, mentoring and coaching, and other programmes related to specific technical learning
needs.
The Core Department's induction programme effectively introduced all new staff members to the
workplace culture, expectations and values, and prepared them to formulate their performance
agreements.
As a strategy of the Core Department's Performance Management Scheme, 11 officers commenced
formal executive coaching to enhance their leadership development. Four Senior Executive Service
officers attended the APSC Senior Executive Service Band 1 Orientation Programme and a number of
other courses related to their roles. Two SES officers also attended the APSC Senior Executive Service
Band 2 Leading Across Boundaries Programme.
The Core Department conducted a regular seminar series designed to raise staff understanding of
service delivery innovation. Speakers included the Australian Public Service Commissioner Lynelle
Briggs, former senior Defence officer General John Baker (retired), and DHS Indigenous Ambassador
Bo de la Cruz.
Nine Core Department staff attended Centrelink's outbound programme to gain a better understanding
of Centrelink's operations and customer needs, and six staff members received support to pursue
external studies.
Workplace diversity
The Core Department continued to demonstrate its commitment to providing a fair and equitable
environment for all staff. The DHS Diversity Plan incorporates the Indigenous employment strategy, the
disability strategy and the diversity strategy, and makes sure that equity and diversity are considered in
all aspects of the Core Department's work, particularly in recruitment and people management
strategies.
As part of its Reconciliation Action Plan, the Core Department took part in advertisements promoting the
Human Services Portfolio as an employer of choice for Indigenous Australians.
The Core Department employed three Indigenous staff in 2006-07, including one university graduate.
Resources
Financial management
The Core Department has further strengthened its capabilities for financial management and reporting
from 2006-07 by entering into an arrangement with Centrelink for the provision of its financial
management information system.
During 2006-07, revised Chief Executive's Instructions were promulgated to provide a primary source of
information and advice on the internal financial management framework and practices of the Core
Department, CSA and CRS Australia.
The Department fulfilled its statutory responsibilities throughout the year in respect of financial
management and reporting, and provided meaningful and properly supported financial information to the
ANAO to facilitate timely completion of the 2006-07 audit of the Core Department.
Consultants and services contractors
During 2006-07, the Core Department entered into 40 new consultancy contracts to the value of $10,000
or more, involving total actual expenditure of $26,738,453. In addition, three ongoing consultancy
contracts were active during the year, involving total actual expenditure of $87,905.
Consultants were engaged to provide specialist services where skills were not available in-house or
where an independent and impartial view from outside the Core Department was required.
Detailed information on consultancy contracts is provided in Appendix 4.
Information on expenditure on contracts and consultancies is also available on the AusTender website,
www.tenders.gov.au.
Purchasing
The Core Department's purchasing decisions complied with the Commonwealth Procurement Guidelines
and the DHS Procurement Guidelines which took effect from 1 January 2006. The objectives of the DHS
guidelines are:

to better meet the Minister's requirements for improved efficiencies in procurement processes across
Human Services agencies;

to give agencies greater responsibility and accountability for their purchasing; and

to move to common purchasing for all purchases over $1 million by actively participating in joint
procurements.
Asset management
The Core Department does not have a significant holding of fixed assets. The majority of fixed assets
consist of office fit-out and computing equipment.
Outlook
Job Capacity Assessment Programme
The Core Department will continue to work with service providers, other agencies and stakeholders to
manage the Job Capacity Assessment Programme to ensure it continues to deliver its intended
outcomes. In 2007-08, there will be a particular focus on the effective delivery of assessments in remote
regions.
The Core Department will continue its strong focus on national performance, and on preparing the
market for the next job capacity assessment open tender. Current job capacity assessment contracts
were let for a two-year period, expiring at the end of June 2008. That period is being extended for a
further year, until June 2009. This will align the next open tender for job capacity assessment services
with the procurement cycle for employment services.
Access card
The Core Department will continue to work with Human Services agencies and the Department of
Veterans' Affairs to develop the access card system to enhance delivery of and access to Australian
Government health, veterans' and social services.
In finalising proposed legislation planned to be introduced in 2007-08, the Department will continue
broad consultation with health and community sector stakeholders and key departments and agencies
such as the Department of Families, Community Services and Indigenous Affairs, the Department of
Health and Ageing, the Department of Employment and Workplace Relations, the Attorney- General's
Department and, in particular, the Office of the Privacy Commissioner.
Other key priorities for 2007-08 will be:

finalisation, after passage of legislation, of procurement arrangements for services to build the
access card system and manage card issuance; and

further development of business processes and operations to support the access card registration
process.
Child support reforms
The Core Department and CSA will continue to work to improve the experience that parents have when
dealing with CSA. The Core Department will also work closely with the Department of Families,
Community Services and Indigenous Affairs and the Human Services agencies to implement Stage 3 of
the reforms to the Child Support Scheme.
Budget initiatives
The Core Department will be involved in a range of activities initiated by the 2007-08 Budget, including:

pursuing efficiencies in Human Services agencies;

improving infrastructure to meet existing and expanded responsibilities for service delivery more
effectively;

providing information and support to people affected by drought, particularly in the Murray-Darling
Basin;

working with the Department of Finance and Administration, in consultation with other departments,
to develop a more strategic approach to fraud and non-compliance; and

implementing measures to reduce health and welfare fraud and non-compliance.
OUTPUT 2 Child Support Agency
Highlights of 2006-07

Facilitating the transfer of $2.68 billion in child support payments, and increasing the number of
paying parents who met their child support obligations

Successfully implementing Stage 1 and Stage 2 of reforms to the Child Support Scheme

Successfully completing a four-year intensive debt collection programme, exceeding the target for
the collection of outstanding child support liabilities

Working closely with Department of Families, Community Services and Indigenous Affairs on the
development and implementation of Stage 3 of the Child Support Scheme reforms

Improving customer satisfaction and significantly reducing the number of customer complaints, while
maintaining high levels of service responsiveness

Introducing a national, personalised service involving more intensive assistance for customers with
complex child support issues

Providing greater online functionality for separated parents and employers through CSAonline, which
was a finalist in the Excellence in e-Government Awards 2007

Simplifying customer letters and forms to improve readability

Expanding and improving information and support services for customers, including connecting
parents with the Family Relationship Advice Line, Family Relationships Centres and CSA's Parent
Support Service

Improving accountability through the implementation of call recording

Partnering with beyondblue, the Australian General Practice Network and the Starlight Children's
Foundation to enhance the reach of services and support for separated families

Distributing significantly increased quantities of self-help products, with 85 per cent of customers
rating the products excellent

Improving customer and community awareness and understanding of child support issues and CSA's
performance

Establishing a new quarterly customer newsletter, Child Support Matters, which 90 per cent of
customers surveyed assessed as easy to read

Strengthening CSA's privacy regime through staff training and a new security strategy to monitor and
respond to any unauthorised staff access to customer records

Establishing a Data Quality Improvement Programme to improve the integrity and quality of customer
records

Developing comprehensive training and development, and workforce planning strategies

Initiating major reviews of CSA's performance measures and staff performance management
systems to support CSA's cultural change programme

Developing new customer service principles and commencing Customer First training for all staff,
based on extensive customer feedback workshops

Lowering unplanned leave to better than target levels, and reducing workers compensation costs
through improved management of injuries and the Building a Healthier CSA strategy

Improving service for Indigenous Australians through the recruitment of Indigenous staff, cultural
awareness training for staff and joint outreach activities with other DHS agencies

Improving the effectiveness of financial management processes and compliance activities
General Manager's review
This was both a challenging and successful year for the Child Support Agency (CSA) and for the
separated families CSA works hard to support.
Consistent with the Australian Government's four-year reform agenda announced in 2005-06, CSA
successfully delivered key elements of the Child Support Scheme reforms and the Building a Better CSA
change agenda.
CSA continued to perform strongly across all business areas, despite the challenges of simultaneously
implementing major reforms and maintaining and improving ongoing activities. Separated parents and
their children benefited from these efforts, in terms of the immediate improvement to outcomes and the
progress made towards effective completion of the reform agenda.
Cooperation with portfolio partners and the commitment of CSA staff were vital contributors to these
outcomes.
In April 2007, CSA hosted the 2007 International Child Support Heads of Agencies Conference in
Melbourne. As in previous years, delegates from Canada, New Zealand, the United Kingdom and the
United States met with their Australian counterparts to share best practice and contemporary
understanding of international child support. Delegates were particularly interested to learn more of
Australia's reform initiatives in the areas of family law, child support, and improving the effectiveness and
connectedness of CSA, particularly through Building a Better CSA. CSA remains highly regarded
internationally in terms of its cost-effective transfer of child support.
Improving our service and support for parents
During 2006-07, reflecting Building a Better CSA's emphasis on customer service, CSA developed new
service options for parents with complex circumstances or who seek face-to-face service and continued
to build a customer-focused culture to underpin other service delivery improvements. CSA was able to
better support parents through the provision of advice, targeted referrals to other service providers and
significantly increased provision of support programmes and products. Cooperative partnerships with
providers such as the new Family Relationship Centres and Family Law Advice Line were particularly
important. As a result of these service improvements, high levels of customer satisfaction were raised
further, and numbers of complaints dropped significantly.
Improving collection
CSA increased its focus on compliance activities directed to establishing the right amount of child
support payable and obtaining payments from those seeking to avoid their responsibilities. The
increased focus was applied to both paying and receiving parents. As a result, $2.68 billion was
transferred between parents during 2006-07, an increase compared with $2.56 billion in 2005-06, and a
clear signal was sent to those parents seeking to avoid their responsibilities that CSA would be pursuing
outstanding amounts.
Improving communication
CSA recognises that it is important for separated parents and the broader community to have a good
understanding of child support, to promote shared parental responsibility and confidence in the system.
During 2006-07, CSA expanded outreach activities to build improved awareness and understanding. A
new information bulletin for separated parents, Child Support Matters, was launched, and proactive
media activity increased. Information was extended to separated families through partnerships with
organisations such as beyondblue, the Australian General Practice Network and the Starlight Children's
Foundation. This resulted in significantly greater positive media coverage and customer and community
understanding of child support.
Improving capability and capacity
CSA developed and implemented strategies to ensure strong organisational capability and sufficient
resources during the year. In particular, the implementation of the reform agenda involves substantially
increasing CSA staffing (by approximately 30 per cent). Through robust workforce planning, CSA was
successful in recruiting the planned 617 staff it sought. Attendance rates improved significantly during
2006-07, thereby creating additional frontline capacity to support the delivery of business outcomes.
Despite consciously increasing staffing levels to buffer the impact of the reforms' implementation on
business-as-usual capacity, CSA's ability to sustain business performance outcomes has come under
challenge. The loss of experienced staff to develop and implement the reforms, combined with the
relatively lower productivity of new staff, has created greater service delivery pressures than originally
envisaged. This has reinforced the importance of more sophisticated workforce planning and workload
management capabilities and of effective staff engagement.
Implementing the new scheme
Because of the extent and complexity of the Child Support Scheme reforms, they are being implemented
in three stages over two years. In 2006-07, CSA successfully implemented Stage 1 and Stage 2, and
prepared for the implementation of Stage 3. The feedback from separated parents on CSA's
implementation of the first two stages has been positive.
Looking ahead
The year ahead will present more challenges as 1 July 2008 approaches, the date on which the final and
most complex stage of the Child Support Scheme reforms comes into effect.
CSA will focus in 2007-08 on successfully implementing the most complex stages of the Child Support
Scheme reforms and the balance of the Building a Better CSA agenda, while maintaining services and
support for CSA's 1.4 million customers. It will be important to carefully manage the impacts of this
transition on business as usual performance, as the agency approaches the end of this significant
journey of reform.
The outcomes achieved during 2006-07 clearly show that CSA is heading in the right direction. I look
forward to working with my colleagues and our portfolio partners, stakeholders and customers to achieve
the goals we share in 2007-08.
Matt Miller
General Manager
Output overview
Purpose
CSA's purpose is to support separated parents to transfer payments for the benefit of their children. This
mission emphasises that CSA provides support for separated parents, rather than just collecting money.
CSA's vision is that children can rely on their parents for the financial and emotional support necessary
for their wellbeing. This vision recognises CSA's commitment to shared parental responsibility, and its
approach of working in partnership with other government and non-government organisations to support
separating and separated families in the family law system.
CSA works with the Core Department in administering the Child Support Scheme, and supports the
Department of Families, Community Services and Indigenous Affairs to develop child support policy.
CSA also works closely with other Human Services agencies to ensure efficient and effective delivery of
services to the Australian community.
Strategy
The Child Support Agency Strategic Plan 2006-08 sets out the following goals:

improved collection—more money for more kids;

customer service excellence—transform our customers' experience;

effective stakeholder relations and engagement—from consultation to engagement;

informed customers and community— aware and knowledgeable customers; and

excellence in service delivery capability— our foundation for a better CSA.
CSA is achieving its goals through improving service delivery under the Building a Better CSA change
agenda, increasing compliance and enforcement, rebuilding corporate capability, implementing a new
child support policy regime, and fundamentally changing organisational culture to align with the new
strategic intent. CSA is also focusing on early intervention and connecting with other service providers to
improve our support for parents.
The Strategic Plan 2006-08 also identifies CSA's approaches to managing risk and performance, and
the values that guide its operation. The plan can be accessed through the Publications section of the
website at www.csa.gov.au.
Structure
To improve the way the business supports service delivery, in 2006-07 CSA initiated a minor restructure
into the six business groups shown in Figure 12.
Service Delivery
Service Delivery is responsible for the registration and collection of child support, and responding to
customers' needs through face-to-face, mail, telephone and online services. Service Delivery makes up
85 per cent of CSA's total operations.
Figure 12 CSA—organisational structure and senior staffing at 30 June 2007
External Relations
External Relations is responsible for the development and implementation of internal and external
communication, marketing, and engagement programs for customers, community members, key
stakeholders and staff.
Change Program
Change Program is responsible for the implementation of CSA's reform agenda, which comprises the
Child Support Scheme reforms and Building a Better CSA.
Service Quality and Corporate Support
Service Quality and Corporate Support provides organisational support and other enabling capabilities in
areas such as human resources, policy and legislation, business assurance and national complaints
resolution.
Information and Communications Technology
Information and Communications Technology is responsible for providing all information and
telecommunications services and solutions within CSA. The group also works with other Human
Services agencies and participates in whole-of-government technology initiatives to share resources and
ideas, and collaborates on opportunities to improve customer service, drive synergies and realise
efficiencies through technology.
Finance
Finance is responsible for CSA's financial management. This includes maintaining the financial
management and reporting framework that facilitates CSA's legislative and regulatory compliance and
internal control, and supporting CSA's business managers, budget holders and staff with financial
management, procurement and contract management services, advice and training.
Table 6 CSA—performance measures
Measure
Cost
Performance
Cost per case (estimate: $368)
$367.18
Cost per dollar transferred (estimate: 11 cents)
11.1 cents
Effectiveness—
Adequacy
Total amount of child support transferred between
parents (estimate: $2.6 billion)
$2.68 billion
Effectiveness—
Independence
Child support transfer rate (CSA collect and private
collect) (estimate: 96%)
96.1%
Percentage of private collect cases to total cases
(CSA collect and private collect cases) (estimate:
52.6%)
52.6%
Price of outputs $371.136 million
Price of outputs $369.136
million
Price
Performance
CSA is responsible for Output 2 of the Portfolio Department of Human Services (DHS):
Delivery of child support assessment, registration, collection and disbursement services.
Table 6 reports CSA's results against the performance measures for Output 2 set out in the Human
Services Portfolio Budget Statements, including adjustments in the Portfolio Additional Estimates
Statements for 2006-07.
The following sections describe how CSA's performance contributed to Output 2 and met the objectives
of its strategic plan in 2006-07.
Improved collection
Child support transfers
In 2006-07, CSA worked with separated parents to transfer a record $2.68 billion to financially support
approximately 1.2 million children in separated families. This compared with $2.56 billion transferred in
2005-06. Total caseload growth was approximately 2.2 per cent, with 800,960 cases by 30 June 2007.
The overall domestic collection rate was 92.8 per cent, similar to previous years' outcomes.
Through its targeted debt collection programme, CSA collected $48.7 million, an increase compared with
$41.5 million in the previous year. This brought the total collected through the four-year programme to
$141 million, well in excess of the target of $131 million.
For the first time in a number of years, the level of outstanding Australian- sourced child support debt
increased, by $12.2 million (1.6 per cent) to reach $741.9 million, despite strong collection performance
from compliance and enforcement activities. This can be partly attributed to the flow-on effects of
compliance activities, such as the tax lodgement programme, which established higher liabilities in many
cases.
CSA's international caseload continued to grow during the year, increasing by 5,981 cases to reach a
total of 35,935, of which 27,562 are active cases. Of the total of $24.5 million transferred, $14 million
related to children residing overseas and $10.5 million related to children residing in Australia. The
overall collection performance of approximately 63 per cent was similar to outcomes in previous years
but significantly lower than comparable domestic collection performance levels. This collection rate
reflects the greater difficulty of building parental commitment to child support and enforcement when the
parent is located outside Australia.
The bilateral agreement established last year with the New Zealand Government to collaborate on
collecting outstanding payments in more than 4,000 cases proved effective in reducing outstanding child
support for New Zealand families where the paying parent resides in Australia. In 2006-07, $4.7 million
was transferred through this partnership.
CSA is committed to encouraging and supporting parents to manage their child support responsibilities
independently through private collect arrangements. In 2006-07, 52.6 per cent of cases registered with
the agency opted for private collect arrangements, the same level as in 2005-06.
Access to support programmes
CSA continued to work in partnership with a range of government, community and private sector
organisations to provide support for separated parents. This support is designed to help parents deal
with and resolve specific issues impacting on their shared parenting responsibilities and to build
understanding and commitment to meeting their child support responsibilities.
The acclaimed Staying Connected programme—a half-day programme delivered in the workplace to
help men deal with separation—was promoted to human resource management and occupational health
and safety professionals, and to large employers. For separated fathers, the programme has produced a
significant increase in personal wellbeing and the ability to build a businesslike relationship with the
other parent for the benefit of the children. For employers, the programme has delivered improvements
to the bottom line through decreased unplanned leave, increased productivity and employee loyalty.
The Parent Support Service is a telephone counselling referral service for CSA customers who are
displaying emotional and/or psychological distress. It is provided in recognition of the fact that there is
often a connection between a parent's wellbeing and their ability to address the financial aspects of
family separation. The Parent Support Service provides customers with self-help, parenting and
relationship building skills. In 2006-07,377 CSA customers were supported through this service.
CSA's Being Connected programme continued to provide support for newly separated parents who are
unemployed. This programme offers parents advice on ways to increase their motivation to return to
work, look after themselves, stay connected with their children and have a workable relationship with
their former partner. In 2006-07, 3,009 newly separated parents on Newstart Allowance were supported
through this programme.
Compliance and enforcement
In 2006-07, CSA developed and implemented a comprehensive new compliance and enforcement
programme to collect outstanding child support liabilities, particularly from people with the capacity to
pay but who chose not to pay. The significantly expanded programme also sought to build greater
integrity and public confidence in the child support system. For the first time, the compliance programme
explicitly identified the importance of focusing on the incomes of both the paying parents and receiving
parents.
Table 7 Child support compliance and enforcement actions, 2005-06 and 2006-07
Number of actions
Child support collected/corrected
(*collected figure only)
2005-06
2006-07
2005-06
2006-07
Tax lodgement
enforcement*
24,000
125,000
Unknown
$16 million*
TRIPs
80,873
95,935
$62,580.982*
$72,816,349*
44,993 (over 4
years)
Serious avoiders
Departure prohibition
orders
Litigation
$141,652,722
(over 4 years)
482
474
$6,751,931
$5,945,144
Unknown
786
Unknown
$9,349,697
TRIP = tax refund intercept payment
Key elements of the programme and the results of these actions are set out in Table 7.
Particular emphasis was placed on increased activity in tax lodgement enforcement and investigations of
those who were thought to be trying to avoid their obligations by underdeclaring their true incomes. An
additional 101,000 non-lodging customers were referred to the Australian Taxation Office (ATO) for
lodgement enforcement attention. An additional 100 financial investigators were employed in the latter
half of the year to undertake comprehensive investigations into complex financial arrangements possibly
designed to avoid paying the right amount of child support.
The tax lodgement and income minimiser initiatives not only contributed to increased child support
payments, but also to improved accuracy and fairness of assessments. This resulted in many parents
using the accurate information provided by CSA to enter into agreements and manage their own
arrangements.
CSA received valuable assistance from the ATO, the Department of Immigration and Citizenship, the
Australian Federal Police and the Australian Government Solicitor in achieving these positive outcomes
for separated families.
The right amount of child support at the right time
Child support assessments are calculated using a basic formula that takes into account the parents'
income, the number of children and the family's living arrangements. In some circumstances, child
support assessments may be modified to make sure that assessments are calculated in a more
accurate, balanced way. CSA may consider changing the assessment when parents' financial
circumstances are not accurately reflected in the child support amount.
An example of CSA ensuring that parents pay the right amount of child support, at the right time, is a
case where the paying parent is a nurse. The father provided regular care for their child, who suffered
from a disability.
The paying parent's income for the purpose of the assessment was $34,686 (based on her estimate of
income). In the past, she had accrued some outstanding child support debt that was later recovered by
CSA directly through deductions made by her employer. The paying parent then reduced her estimated
financial income, which in turn reduced the calculated amount of child support.
CSA investigated the customer's financial circumstances and found that her income was greater than
the income supplied for the assessment. As a result, the child support income was increased to $56,493
to reflect the paying parent's actual base rate of pay.
Based on CSA's action, the annual rate of child support payable was increased from $1,604 to $5,530
and now more accurately reflects the paying parent's capacity to provide support for her child.
From a broader government perspective, this successful outcome also resulted in a saving for taxpayers
by reducing the entitlement to Family Tax Benefit.
Customer service excellence
High-quality customer service
During 2006-07, CSA took action to strengthen customer focus within the agency.
'Customer First' training for all staff commenced in the last quarter of the year and delivery of the first of
four modules was completed by 30 June 2007. The training followed extensive development work on the
materials in the modules based on customer feedback from workshops held across Australia. CSA staff
attended these workshops and gained valuable insights into how CSA's customer service was being
perceived by separated parents.
New CSA Customer Service Principles were developed on the basis of the customer feedback. These
principles are being used to generate a new customer commitment charter—a clear statement of the
standards of service separated parents can expect from CSA staff. The charter will be completed in
2007-08.
Other activities undertaken during the year to improve customer service included:

redesigning the change of assessment procedures to simplify the application form and make it easier
for parents to provide the necessary information, and to institute telephone-based support and open
exchange of information between the parents;

simplifying CSA letters and forms to make them easier for customers to understand;

halving the size of service delivery teams and creating new team leader roles and technical support
arrangements to enable more effective team performance;

increasing the functionality of CSAonline to give parents greater flexibility in managing their child
support arrangements, including the ability to access their information and update personal details
outside business hours;

introducing Stage 1 of personalised services and more face-to-face service options for parents with
complex cases, with national rollout planned in the first half of 2007-08;

simplifying employer withholding arrangements for paying parents and their employers;

linking CSA's Indigenous customers with Centrelink's Indigenous Advice Line; and

referring parents to other providers, including Family Relationship Centres and the Family Law
Advice Line.
As a part of a Human Services portfolio- wide project, CSA worked on improving the readability of the
agency's letters and forms. During the year, 23 forms and 76 of CSA's high-volume letters were
reviewed to ensure that they represent best practice in government correspondence. Through the
Department of Human Services' Ministerial Taskforce on Letters and Forms, headed by Senator Richard
Colbeck, 65 of CSA's revised letters received approval.
The introduction of CSAonline has seen a significant growth in the number of parents using the 24-hour,
seven-day service. At 30 June 2007, more than 50,000 parents and employers had enrolled for access.
CSAonline was a finalist in the Excellence in e-Government Awards 2007.
During the year, CSA made 6,112 referrals to the Family Relationship Advice Line and Family
Relationship Centres to help resolve child support matters and other separation issues. These services
referred 133 parents to CSA. Parents appreciated the efforts to provide more seamless service delivery
and help in navigating the family law system.
CSA's telephony performance remained strong, with 85 per cent of customer calls being answered
within 30 seconds, a small decrease compared with 89.3 per cent in 2005-06.
Separated parents again reported improved satisfaction with CSA's customer service. Results from the
agency's point-of-service 'Customers Having a Say' survey showed an increase in customer satisfaction
rating from 5.7 in 2005-06 to 5.8 (out of a maximum score of 7.0) in 2006-07. CSA's other key customer
service rating index— the Professionalism Survey—also confirmed positive gains in customer
satisfaction. In 2006-07, the average rating of the professionalism of staff increased from 3.9 in 2005-06
to 4.1 (out of 5.0) in 2006-07.
Total complaints received in 2006-07 were 9,151, as against 10,403 in the previous year. This decrease
of nearly 12 per cent, despite a 2.2 per cent growth in caseload, followed a 15 per cent reduction from
2004-05 levels.
Objections to CSA decisions also declined, with a total of 17,376 being received during 2006-07
compared with 19,148 in 2005-06. Seventy-five per cent of objections received in 2006-07 affirmed
CSA's earlier decisions.
Improved accountability
CSA introduced call recording in June 2007 to provide improved accountability trails for both customers
and staff. More than 300,000 calls were recorded and feedback from both customers and staff has been
positive. This new system will also assist CSA staff to make better decisions by providing feedback for
future training and development programs.
The implementation of Stage 2 of the Child Support Scheme reforms included the independent review of
CSA's objection decisions by the Social Security Appeals Tribunal (SSAT). Since 1 January 2007, when
the SSAT's jurisdiction over CSA decisions came into effect, less than 15 per cent of CSA objection
decisions have been appealed. Of those, 44 per cent were changed as a result of the SSAT's decisions.
This new independent review mechanism will provide greater public confidence in CSA decisions, for
which external review had previously been limited to more expensive and less timely court processes. It
will also provide CSA with independent views of the policy positions adopted in its internal decision
making, and will allow adjustments where appropriate.
Effective stakeholder relations and engagement
Stakeholder engagement
The development of a CSA stakeholder engagement strategy commenced during the year. To explore
issues and opportunities to achieve mutual outcomes and strengthen relationships, CSA met with key
stakeholders such as:

Australian Institute of Family Studies;

Dads in Distress;

Family Court of Australia;

Family Relationship Centre and Family Relationship Service providers;

Legal Aid;

Lone Fathers Association of Australia;

National Council of Single Mothers and their Children;

Shared Parenting Council of Australia; and

Sole Parents Union.
This engagement occurred at both national and state levels, including through State Manager Advisory
Panels.
Most of these stakeholders are members of the Child Support National Stakeholder Engagement Group,
established in November 2006 by CSA and the Department of Families, Community Services and
Indigenous Affairs. The Group provides for effective engagement and consultation in relation to Child
Support including the implementation of the Child Support Scheme reforms and Building a Better CSA.
Three meetings were held in 2006-07 and feedback confirmed that the initiative was valued by all
involved.
As a part of its plans to promote access to support services for separated parents, CSA initiated an
employer engagement strategy which includes seminars titled 'Connecting with business to improve
workplace productivity and support for separated parents'. This strategy also involves engaging with
large employers and business groups to build greater understanding and collaboration in relation to the
collection of child support and the administrative benefits of CSAonline. The first of the seminars was
held in Perth in May 2007 and similar events are planned for 2007-08.
During the year, CSA continued to engage with key customer representative groups and attended their
meetings and conferences. This cooperation continued to build stronger relationships and understanding
of CSA and the child support system, as well as providing an effective avenue for customer concerns to
be addressed.
CSA also worked closely with Members of Parliament, both through CSA's own local liaison programme
and as a part of the Human Services Portfolio Local Liaison Network. This provided direct access to a
nominated member of staff who took responsibility for helping the constituent navigate the child support
system and get timely outcomes.
CSA invited the Attorney-General's Department to join CSA in working to develop new international
agreements on child support collection and cooperation between countries at The Hague. This work is
expected to be finalised in 2007-08, following a meeting of relevant officials.
Government and community partnerships
Building on a partnership established in May 2006, CSA and beyondblue—the national organisation
working to address issues associated with depression—developed and launched a new information
product, Separated parents and tough times. This resource and other CSA information products were
distributed widely through a key partnership established in 2006-07 between CSA and the Australian
General Practice Network (AGPN), which represents general medical practitioners.
The partnership with the AGPN has been valuable in supporting activities such as joint media releases
and promotions of information resources and services, and the use of CSA's Community Services
Directory to assist general practitioners with non-medical referrals. CSA sees this partnership as a good
example of how joint activity can be leveraged to achieve outcomes that could not be achieved by the
individual organisations.
Another important partnership established during the year involved the Starlight Children's Foundation.
CSA established a memorandum of understanding with the foundation in February 2007, and has been
working with the foundation on ways to derive mutual benefits from collaborative activities. In May 2007,
CSA participated in Starlight Day, the annual fundraising event for the foundation. CSA believes the
partnership has a strong affinity with the agency's mission and its focus on children, and will become an
important vehicle for CSA staff who choose to contribute to the community outside their work.
Discussions commenced with a number of other potential partners that were identified as presenting
opportunities to enhance the effectiveness of CSA's outreach activities.
Seamless referrals
In 2006-07, CSA focused on building commitment and processes to achieve seamless service delivery
for separated parents. CSA worked with Crisis Support Services and Centrelink to provide support
services for parents and, where appropriate, assisted other Human Services' customers using a
customer-focused handover process which involves a three-way discussion between the customer,
CSA's Customer Service Officer and the referral agency.
CSA worked closely with the Department of Families, Community Services and Indigenous Affairs, the
Attorney-General's Department and the newly established Family Law Advice Line and Family
Relationship Centres to ensure a smooth implementation of referrals between organisations. The new
referrals network provided information and mediation services to support separating and separated
parents, and to resolve difficulties they were experiencing with child support and related family law
issues. A total of 6,112 referrals were made during the year. That number is expected to increase in the
future as the number of centres grows and the value of their services becomes more widely known.
Informed customers and the community
Communication and marketing
As foreshadowed last year, CSA continued to build on its investment in communication and education
activities to increase customer and community understanding of child support and how it relates to the
broader family law system.
During 2006-07, CSA established an integrated communication and marketing strategy to achieve a high
level of awareness and understanding among CSA customers and the broader Australian community.
The strategy outlines CSA's communication approach and activities to empower separated and
separating families to make informed decisions about their responsibilities to provide financial and
emotional support for their children, including transferring child support payments.
A network of External Relations Officers was established to work with media representatives and key
stakeholders at a local level.
During the year, 35 national media releases were issued, relating to new service options, compliance
initiatives, self-help tools and advice on how to handle specific child support issues. Collectively, the
releases generated almost 5,000 media articles. This approach to greater media visibility and
accountability has produced a significant increase in awareness of CSA activities. Independent analysis
in May 2007 found that 53 per cent of paying parents, 60 per cent of receiving parents, and 65 per cent
of the broader community were aware of CSA and agreed that CSA was improving its service delivery to
customers.
CSA also ran the communication campaign to inform customers of the new Child Support Scheme. The
campaign began in December 2006 to support the implementation of Stage 2 of the Child Support
Scheme reforms from 1 January 2007. The campaign included a multimedia advertising campaign, new
branding, a new website, a media plan, publications, e-bulletins and internal communication activities.
The multimedia advertising component of the campaign began in May 2007 in preparation for
implementation of the Stage 3 Child Support Scheme reforms from 1 July 2008.
Outreach activities
A total of 62 community information sessions were conducted during the year in local communities,
compared to 51 in 2005-06. Presenters from other government agencies and legal and financial advisers
helped to provide a comprehensive briefing covering child support and issues relating to separation and
family law.
CSA also joined with other Human Services agencies to conduct outreach activities in remote areas,
including in Indigenous communities, to raise awareness of child support issues.
Information products
During 2006-07, CSA developed important new publications, refreshed some existing resources and,
most significantly, greatly improved the distribution of publications to separated parents, stakeholders
and the broader community. Simplified ordering and improved stakeholder connections led to more than
three million copies being distributed in 2006-07, a considerable increase compared with approximately
200,000 in the previous year.
Child Support Matters, CSA's new customer newsletter, was launched during the year. The newsletter
provides important information and self-help advice to separated parents, particularly in relation to the
current reform agenda. A feedback form was included with each copy, and 2,254 customers submitted
feedback. More than 88 per cent of feedback providers rated the newsletter as excellent or satisfactory.
Self-help booklets in the highly acclaimed 'Me and My' series were successfully promoted, with nearly
500,000 copies reaching separated parents and other members of the community. In an important step
to assist non-English speaking parents, this series was translated into Arabic, Chinese, Spanish, Turkish
and Vietnamese.
To assist newly separated parents to understand the Child Support Scheme and their responsibilities,
211,000 'Getting Started' publications were distributed during the year. This is significantly higher than
the 2005-06 total of 88,000 copies, and reflects the importance that CSA places on providing these
valuable resources to all new customers.
A feedback form was included with information products distributed by CSA's print warehouse starting in
May 2007. Up to 30 June 2007,313 customers submitted feedback, with more than 99 per cent of
feedback providers rating the 'Me and My' booklets, 'Getting Started' publication and 'Dealing with
Separation' CD-ROM as excellent or satisfactory.
Excellence in service delivery capability
2006-07 saw a continued focus on building corporate capability and developing increased organisational
capacity to enable delivery of a demanding reform agenda and to sustain CSA's future performance
Improving our management systems and governance
Significant work was undertaken during the year to improve the robustness of key management systems
and governance.
Reviews were undertaken of financial management systems and frameworks, procurement processes
and property management arrangements. Results have led to improved financial management
accountability and a restructure of the property management division. The changes will ensure that CSA
is better able to meet its responsibilities in terms of overall governance and compliance with Australian
Government requirements.
An external review of CSA's information and communications technology governance and capability was
undertaken, resulting in the development of a capability improvement programme. Examples of
capability improvements included:

a greater focus on managing interface issues across the various reform initiatives and between
organisational units within CSA;

the establishment of account managers and an ICT Planning Office to facilitate more effective
partnerships;

an IT Service Management team to delineate and refine key internal processes, and create a single
service desk to improve responsiveness for CSA users;

the establishment of contract arrangements with organisations that can perform systems
development work, providing CSA with greater access to resources to supplement its own capacity in
times of peak workload;

an integrated release schedule and supporting processes to manage the implementation of
technology enhancements to support Child Support Scheme reforms; and

a review of systems architecture by Deloitte, providing a roadmap for the future development of CSA
systems to support customers.
Other important systems improvements were effected during the year through the creation of a new
Business Assurance Branch within the Service Quality and Corporate Support Group. Critical
development work on a new learning management system to support the extensive training and
development associated with the reform agenda was effectively finalised.
In 2006-07, work was initiated on improving CSA's data quality, data classification and security
clearance issues ahead of the implementation in July 2008 of Stage 3 of the Child Support Scheme
reforms. At 30 June 2006, 46 issues had been identified and are in various stages of remediation. This
work has also identified changes to business processes to better support CSA customer service officers.
Systems enhancements to CSA's information management system (Cuba) were effected to address
Australian National Audit Office findings from 2005-06.
Supporting CSA staff
Increased emphasis was placed on supporting staff in 2006-07, because of the very significant impacts
of the Building a Better CSA and the new Child Support Scheme change agenda.
In December 2006, smaller teams were implemented, with the appointment of an additional 100 team
leaders. The average team size in CSA is now 13 staff; previously teams were typically 24 staff. This
reduced team size allows team leaders to focus on supporting staff and delivering customer outcomes.
A new leadership role called a 'service manager' was also introduced, to provide support to team leaders
at their physical location. This local leadership capability allows for improved support for frontline staff,
which in turn leads to improved performance for our customers.
During 2006-07, CSA successfully implemented a number of strategies specifically aimed at supporting
managers and staff in business units to develop a healthier and more productive workplace, and to
better manage workplace absence. These strategies included team leader training focused on improving
people management skills—particularly in the areas of positive work behaviours, injury prevention and
injury management—and implementing nationally consistent management guidelines and practices.
In addition, CSA revised its injury management processes to incorporate more emphasis on early
intervention and timely rehabilitation, and established a network of rehabilitation case managers to
service CSA business units.
Internal communication
During the year an Internal Communication Team was established to support CSA staff. CSA's internal
communication system comprises intranet headlines (for up-to-date news), regularly updated intranet
information channels, General Manager newsletters and emails, monthly news publications such as
Snapshot, deskdrops, and team presentations produced as required. Part of the internal communication
strategy is to ensure that information is given to staff at the right time and delivered in a consistent and
integrated fashion.
'Roadshows' are one of CSA's primary ways of delivering information about the change programme to
staff. Roadshows are national presentations delivered by senior staff across the organisation. In 200607, three national roadshows were delivered to staff to provide information on the implementation of
Child Support Scheme reforms and to maintain the very high level of staff engagement with and support
for CSA's new direction.
A number of different channels were established to give staff the opportunity to raise issues and seek
clarification. One example is GM Direct, a forum of frontline staff who work with the General Manager to
give their insights and provide a litmus test of how the change programme is being viewed by, and
impacting on, staff. Leadership forums were also established, to promote engagement on key
implementation issues and to increase the change leadership effectiveness of the teams.
Creating capacity and developing corporate infrastructure
In 2006-07, a national workforce plan was developed and implemented to adequately meet the
recruitment required to roll out the CSA reforms and other business improvement programmes. The plan
is supported by an accommodation strategy, and includes securing new leases on property, both for the
longer term and as part of CSA's disengagement from the ATO.
The workforce plan sets out a strategy to ensure staff are recruited and trained well in advance of the
implementation of Stage 3 of the Child Support Scheme reforms in July 2008.
More effective management of workplace injury and absence in 2006-07 resulted in significant
reductions in the rate of unplanned absences, number of workers compensation claims, time lost due to
workplace injury, and cost of workers compensation claims. These improvements represent the first year
of a six-year plan of continuous improvement aimed at enhancing our service delivery capability.
CSA's continued efforts to reduce the amount of unplanned leave also increased the organisation's
capacity during the year. In December 2005, CSA's unplanned leave rate was 17.86 days per full-time
equivalent employee; at the end of June 2007, the rate was 12.44 days. This is a tremendous
improvement, and means that CSA has saved approximately 8,000 days of productive capacity. More
importantly, it means the workload of frontline staff is less affected by colleagues being absent. The
proactive approach implemented during 2006-07 will continue during 2007-08.
The Information and Communications Technology group continued to build capacity and capability in
2006-07, particularly in the areas of technology independence, systems strategy and architecture and
telephony.
Through the Technology Independence Programme, CSA is disengaging its technology infrastructure
from that of the ATO. During the year, CSA developed an information and communications technology
governance framework, in conjunction with the ATO; a CSA sourcing strategy; and detailed plans for
infrastructure disengagement. Data requirements and arrangements for system access were defined
and agreed with the ATO, and detailed interface design was completed.
CSA's telecommunications contract with NEC was finalised in 2006-07, delivering significant savings
and providing for increased capacity and capability to cater for rapid growth in staffing, the
commissioning of new sites and the introduction of new technologies such as call recording.
Management and accountability
Corporate governance
This section reports on aspects of CSA's corporate governance that function within the whole-ofdepartment measures and the Secretary's overall responsibility described in the Overview chapter.
The names and responsibilities of the senior executives of CSA are shown in Table 8.
Committees
A number of committees assist in the effective governance of CSA, as described in Table 8.
Table 8 CSA—governance committees
Members
Functions
Meetings
Develops strategic direction
Monthly
CSA National Executive
General Manager (Chair)
Matt Miller
Reviews performance and
monitors the appropriateness of
strategy
Develops priorities and strategic
funding allocations
Deputy General Managers
Samantha Palmer
Patrick Hadley
Trevor Sutton
Dawn Casey
Michael Belcher
Jennifer Cooke
Adviser to the General
Manager
Kylie Perrin
Service Delivery Executive
Deputy General Manager
Service Delivery (Chair)
Jennifer Cooke
Addresses operational
performance issues
Monitors and proposes changes
in service delivery priorities and
strategies
Monitors the consistency of
service delivery and reviews
states' service delivery
performance
Assistant General
Manager National Service
Delivery
Bruce Young
Monthly
State Managers (six)
Lorna Andrews (Qld)
Mina Podbereski
(NSW)
Bill Lodge (Vic.)
David Mole (Tas.)
Brenton Halliday
(SA/NT)
Graeme Charlwood
(WA)
Assistant General
Manager Compliance and
Enforcement
Angela Tillmanns
Assistant General
Manager Transitions
Bill Volkers
Risk Management Committee
Independent member
(Chair)
Glenys Roper
Provides independent assurance
and assistance to the General
Manager and National Executive
on the risk, control and
compliance framework
Independent member
Di Fielding
Meets compliance requirements
of DHS, the Department of
Finance and Administration, the
Australian National Audit Office
and other agencies such as the
Victorian State Manager
Service Delivery
Bill Lodge
Commonwealth Ombudsman
and Comcover
Bi-monthly
Independent member from Brad Clark
Centrelink
Finance Steering Committee
Deputy General Manager
Finance (Chair)
Michael Belcher
Deputy General Manager
Change Programme
Trevor Sutton
Oversees CSA's funding
agreement
Monitors financial position and
ongoing financial
Monthly
Deputy General Manager
Information,
Communications and
Technology (ICT)
Patrick Hadley
Deputy General Manager
Service Delivery
Jennifer Cooke
A/g Assistant General
Manager People Services
Margaret Jamieson
Adviser to the General
Manager
Kylie Perrin
Director National Financial Rebecca Tyler
Management
Management Accountant
National Financial
Management
Zoe Collison
sustainability
Reviews and monitors
processes, controls and
procedures in place to maintain
the integrity of accounting and
financial records and statements
Establishes and reviews the
application of accounting policies
Monitors compliance with
Australian Government budget
and financial reporting
requirements
Establishes, monitors and
reviews financial management
and budget management
processes, including capital
planning strategy
National Executive Change Consultation Meeting
General Manager (Chair)
Matt Miller
Deputy General Manager,
Change Program
Trevor Sutton
Deputy General Manager,
Service Quality and
Corporate Support
Dawn Casey t
Deputy General Manager,
Service Delivery
Jennifer Cooke
Deputy General Manager,
Finance
Michael Belcher
Deputy General Manager,
Chief Information Officer
Patrick Hadley
Deputy General Manager,
External Relations
Samantha Palmer
Executive Director Reform
Delivery
Greg Mills
External Delivery
Assurance Adviser
Tarquin Ralph
Determines and monitors
performance of the change
agenda strategies, priorities and
funding
Determines the change
governance framework
Commissions change initiatives
for review
Ensures effective integration
between the change agenda and
'business as usual'
Monthly
Assistant General
Manager Change
Management
Angela Morella
A/g Deputy Secretary
Core Department
Jeff Popple
Deputy Secretary
Department of
Immigration and
Citizenship. Independent
Member
Carmel McGregor
Deputy Secretary
Department of Families,
Community Services and
Indigenous Affairs.
Independent Member
Geoff Leeper
Security Committee
Assistant General
Manager Business
Assurance and
Governance (Chair)
Tony Hanrahan
Deputy General Manager
Service Delivery
Jennifer Cooke
Deputy General Manager
ICT
Patrick Hadley
Deputy General Manager
Service Quality &
Corporate Support
Dawn Casey
Director Security and
Fraud Prevention
Darryl Prague
Director People Services
Dominic Stokes
A/g Director Legal
Services
Terri McGrath
Provides assurance and
assistance to the General
Manager and the National
Executive on the security risk,
control and compliance
framework, and external security
accountability responsibilities
Twice per year
(minimum)
National Occupational Health and Safety Committee
Assistant General
Manager People Services
(Chair)
Margaret Jamieson
Advises on occupational health
and safety matters in CSA
Quarterly
Director Workplace Health
and Productivity
Tony Gilrane
National Community and
Public Sector Union
(CPSU) organiser
Stuart BrewerMcCabe
Two CSA staff CPSU
delegates
Marcia Batton
Rennea Jochinke
Note: Details of the Audit Committee for the Core Department, CSA and CRS Australia are shown in
Table 4.
Accountability
The General Manager of CSA is accountable to the Secretary of DHS for the overall performance of the
agency, including its financial and risk management. The General Manager and Secretary meet
regularly to ensure effective oversight and early identification of strategic issues. The General Manager
attends meetings of the DHS Audit Committee.
The CSA Executive meets with the Secretary of DHS each month to review CSA's performance from a
governance perspective, including financial performance and strategic issues.
Internal scrutiny
Internal audit
Each financial year, CSA undertakes a planned series of compliance, operational and quality audits of
its operations. Internal audits are performed by an independent provider (Ascent Governance), by CSA's
Legal and Quality Assurance Team, or by CSA's Governance, Risk Management and Internal Audit
Team.
In 2006-07, CSA conducted quality assurance audits in the areas of change of assessment, change in
care and non- agency payments. An additional 'mini- audit' of the change of assessment process was
conducted, focusing on the earning capacity provisions for which the legislation was amended in July
2006 in response to a Commonwealth Ombudsman report.
CSA completed compliance and operational audits and reviews of the following operations in 2006-07:

compliance with the Financial Management and Accountability Act 1997 (FMA Act) (quarterly
review);

business continuity management;

corporate credit card use;

procurement within the CSA Change Programme;

data privacy and information technology security; and

consultation between Human Services agencies and CSA prior to procurement activities.
Audits were commenced but not concluded by 30 June 2007 in relation to:

project and change management in CSA;

payroll; and

the final review of FMA Act compliance for 2006-07.
No control weaknesses or material risks were identified in the audits, although audit recommendations
identified opportunities for improvement.
Internal managers completed a twice- yearly governance and performance survey of the operations of
areas under their responsibility. This manager self-assessment process ensures that managers and their
staff understand the framework within which they work and against which they are required to report.
Senior staff completed quarterly FMA Act due diligence reports, a cornerstone of the FMA Act
compliance framework. The framework provides the General Manager with assurance that CSA staff are
using public funds appropriately, enabling the General Manager to provide the Secretary of DHS with the
assurance needed to endorse the annual FMA Compliance Certificate.
CSA also monitored the publication of new guidelines and whole-of-government Australian National
Audit Office (ANAO) audit reports to ensure that compliance and best practice were maintained within
the organisation.
Risk management
The assessment, treatment and monitoring of risk are integrated into CSA's business planning
framework and guidelines for project management as core business activities.
Risk management is monitored through internal audit activities, and through:

regular review by the Risk Management Committee and Change Steering Committee (details of
these committees are shown in Table 8);

regular monitoring of outcomes by the National Executive; and

management of programmes and contracts by line managers.
CSA continues to work toward an integrated approach to risk identification and management in all
aspects of its business. The risk management methodology used by CSA is largely based on the
Australia-New Zealand risk management standard AS/NZS 4360: 1999. In 2006-07, the CSA Executive
conducted a risk management workshop where it identified the strategic risks facing the agency. The
outcomes of the workshop were used to create the agency's annual strategic audit plans. Risk action
plans are also being developed as a result of the workshop.
The objective of CSA's Risk Management Committee is to provide independent assurance and
assistance to the General Manager and the CSA Executive on CSA's risk, control and compliance
framework, and its external accountability responsibilities. The Risk Management Committee reports
quarterly, through the General Manager, to the DHS Audit Committee.
Business continuity management
Throughout 2006-07, CSA refined its business continuity management framework to ensure the
organisation is prepared to meet its ongoing service delivery and stakeholder commitments and to
continue supporting business outcomes in the event of a major disruptive incident.
An overarching business continuity policy that sets out the roles, responsibilities, and accountabilities of
CSA managers and staff concerning the continuity of child support payments, services and key business
resources was completed. The policy is complemented by additional documents, including a disaster
recovery framework and a comprehensive handbook of procedures for evacuation. CSA also began to
develop an action plan to address issues arising from a possible influenza pandemic.
Fraud prevention
CSA's fraud prevention activities include education, fraud control planning, investigation and prosecution
of staff misconduct and fraud, and monitoring and protection of customer information.
All CSA staff are required to attend face- to-face training in fraud awareness every two years. CSA also
has policies and guidelines relating to fraud and ethics awareness that are easily accessible to all staff
via the agency's intranet.
CSA's current fraud control plan as required under the Commonwealth Fraud Control Guidelines was
completed in 2006-07 and is in place for two years.
CSA views breaches seriously, and CSA's Fraud Prevention Team investigates all allegations of fraud
and serious misconduct by CSA staff or fraud by CSA customers.
In 2006-07, the Fraud Prevention Team received 118 allegations of serious misconduct and criminal
activity by staff, and 15 allegations of fraud by CSA customers.
As a result of the allegations:

49 allegations were found to be unsubstantiated;

22 matters were referred to CSA management or other agencies for action, including disciplinary
action or criminal proceedings;

10 staff members resigned;

22 staff were sanctioned under the Public Service Act 1999; and

48 allegations were under investigation at 30 June 2007.
Security
CSA uses the Australian Government's Protective Security Manual as the basis for security strategy,
policy and procedures.
In 2006-07, CSA conducted formal security assessments of buildings and offsite records storage.
Security assessments were also conducted on CSA's community information sessions. These security
risk assessments were undertaken to identify and quantify the risks to CSA assets and operations. All
identified risks were within an acceptable range or were reduced to an acceptable level.
The security clearance compliance section of the RACS (Restricted Access Customer System)
reclassification project was completed in 2006-07. This ensures that all staff accessing RACS customer
information are cleared to the appropriate security clearance level.
A total of 908 security incidents were reported in 2006-07, representing a slight decrease compared to
971 incidents reported in 2005-06.
The types of incidents reported in 2006-07 included:

allegations of theft in the workplace;

threats of self-harm, harm to children, assault of other customers, staff or third parties or damage to
property by CSA customers;

bomb threats; and

losses of CSA keys, passes, phones and laptops.
Management of ethical standards
The actions and behaviours of CSA staff are guided by the Australian Public Service Values and
Integrated Leadership System. The CSA's Customer Service Principles outline how CSA staff members
will treat their customers and colleagues. These principles apply to all CSA staff. As part of the
engagement process all new staff receive the APS Values and Code of Conduct bookmark. Information
on the APS Values and the APS Code of Conduct is included as part of the formal general induction
program. The Entry Level Program for new customer service officers covers privacy and secrecy, fraud
awareness and customer service principles. National Office staff are required to complete privacy and
secrecy and fraud awareness training within six months of commencing work in CSA. Refresher training
for fraud awareness and privacy and secrecy occurs for all staff every 18 months. Finance and
procurement training is mandatory for all Executive Level staff and above and for those who are budget
holders.
Privacy
CSA has a strong commitment to protecting its customers' privacy. CSA has a national network of
privacy officers, who collectively ensure that concerns of customers and staff in relation to privacy are
addressed quickly and efficiently.
All CSA staff are required to undertake training in privacy awareness when they join CSA, and again
every 18 months to refresh their understanding. A newly developed search tool was implemented in
October 2006 to assist in the detection of inappropriate access, and further enhancements are being
developed to strengthen the regime even further.
Through more than 45,000 proactive checks conducted since October 2006, six suspected cases of
unauthorised access to customer records by CSA staff were identified. Three staff members resigned or
left CSA prior to final disciplinary action. One of these cases is being considered for criminal
proceedings by the Director of Public Prosecutions. The remaining 3 cases were unsubstantiated. Since
staff were made aware of this enhanced screening of access to customer records, only one possible
instance of unauthorised access has been found.
In 2006-07, CSA developed a resource package in relation to privacy impact assessments for CSA
business sponsors and project managers in the Change Program. The package raises awareness of
CSA's obligations to protect the privacy of its customers and staff, and provides instruction in relation to
the development of privacy impact assessments.
Resolution of complaints
CSA has a three-step service for handling complaints, based on the principle of 'first point of contact
resolution'. CSA customers can be confident that the first person they speak to about a complaint will
endeavour to resolve the complaint as quickly as possible. Where resolution is not possible, the
customer can access a more experienced and/or senior staff member who will try to resolve the
complaint.
As a third option, a customer can make a complaint directly to the CSA's Complaints Resolution Service.
This service operates outside the Service Delivery division, to ensure it has the independence and
objectivity necessary to deliver a fair and transparent complaints service. After investigating a complaint,
complaints resolution officers will decide whether to uphold or not uphold the customer's complaint,
depending on whether the facts of the case support the complaint.
Over the past three financial years, the number of complaints made directly to CSA has been declining.
This continuing decline is an indicator of CSA's success in delivering excellent customer service. Total
complaints received in 2006-07 were 9,151, compared with 10,403 received in 2005-06, a decrease of
12 per cent.
External scrutiny
Australian National Audit Office
The interim audit of the financial statements for 2006-07 (Audit Report No. 51 of 2006-07) resulted in
three B findings for CSA:

reconciliations;

SAP Access and segregation of duties; and

SAP configuration.
CSA considers that the reconciliation findings has been resolved. CSA are actively addressing the SAPrelated findings.
The ANAO commenced one audit involving CSA in 2006-07, in addition to the routine audits of the
financial statements. The objective of the audit is to examine the integrity of electronic records stored on
the Child Support Register (and associated databases) and to report on CSA's management of the data.
In judging CSA's performance the ANAO applied four criteria which are being used to determine whether
or not:

CSA's customer records (Child Support Register and any associated databases) are accurate and
complete;

CSA's electronic customer records are reliable and internally consistent;

CSA has adequate controls and procedures to ensure a high quality of data capture and recording;
and

CSA effectively manages electronic customer records.
Compensation
The Compensation for Detriment caused by Defective Administration Scheme (CDDA Scheme) was
established in October 1995 to enable Australian Government agencies to compensate people who
have been adversely affected by the defective actions or inactions of agencies and have no other
avenues through which to seek redress.
In 2006-07, CSA made 41 offers for compensation, of which 37 were accepted. Compensation of
$89,318 was paid under the CDDA Scheme (an increase compared with $41,252 in 2005-06), and
$15,973 was paid for legal liability (a decrease compared with $39,706 in 2005-06). These figures
include payments offered in previous financial years and accepted in 2006-07.
Commonwealth Ombudsman
As part of its commitment to a fair and transparent complaint handling process, where appropriate, a
CSA customer who is not satisfied with the outcome of a complaint managed by the CSA, may be
referred to the Ombudsman.
The Ombudsman received a total of 1,790 complaints about the CSA in 2006-07. This is a decrease of
seven per cent from the 1,927 complaints received in the previous year. The Ombudsman finalised
1,779 complaints about the CSA and of these 508 complaints were investigated.
From October 2006 the Ombudsman introduced new guidelines in respect of recording administrative
deficiency. In the year 2006-07 the Ombudsman recorded administrative deficiency in 23 cases. Figures
in relation to the previous year were not made available by the Ombudsman; however, in the 2004-05
year the Ombudsman identified 130 records of agency defect against the CSA.
The CSA benefits greatly from the valuable feedback given by the Ombudsman and is committed to
positive engagement so that it can improve the quality of its service to customers. CSA recognises that
in the lead-up to significant reforms to the Child Support Scheme the Ombudsman may experience an
increase in the number of complaints made by customers. The CSA will continue to work with the
Ombudsman over the coming year to ensure that complaints are managed in a fair, effective and timely
manner.
Minister for Finance and Administration
The FMA Act provides that, under certain conditions, the Minister for Finance and Administration may
waive the Commonwealth's right to payment of an amount owing to the Commonwealth. Under this
provision, CSA may consider requests to waive child support debts and refer these to the Minister for
Finance and Administration for a decision.
CSA has experienced a steady increase in the number of waiver requests received from customers over
the past four years. Requests for waivers of child support debts most commonly arise upon the death of
a carer parent where the care of the children is transferred to the surviving parent.
During 2006-07, CSA finalised 51 requests for waiver of debts. The Minister for Finance and
Administration waived 43 of those debts, totalling $219,869 (a decrease compared with $236,333 in
2005-06).
The Minister for Finance and Administration also has the discretion to make act of grace payments to
persons who may have been unintentionally disadvantaged by the effects of Commonwealth legislation
and have no other means of redress. Two act of grace payments, for a total of $15,778, were made
during the reporting year (an increase compared with one payment of $1,296 in 2005-06).
Privacy Commissioner
Privacy is an integral component of CSA business practices. CSA has an important partnership with the
Office of the Privacy Commissioner and benefits from the support and advices it provides in relation to
privacy. CSA worked with the Office of the Privacy Commissioner during the year to address issues
arising from complaints made by staff and customers.
In 2006-07, the Privacy Commissioner began a total of five investigations into CSA-related matters, the
same number as in 2005-06. The investigations into these complaints had not been completed at the
end of the financial year.
Social Security Appeals Tribunal (SSAT)
From 1 January 2007, the SSAT became responsible for independently reviewing CSA objection
decisions and decisions to refuse an extension of time in which to lodge an objection. 'Objection
decisions' refer to CSA's internal process for reviewing customers' objections to the child support
assessments they have received and/or objections to decisions made about the collection of child
support. The new SSAT arrangements provide a review mechanism that is inexpensive, informal and
quick, and improves the consistency and transparency of child support decisions.
From 1 January 2007 until 30 June 2007, CSA was advised by the SSAT of 679 applications for review.
Of those 679 applications, 521 were valid. The other applications were generally invalid, either because
CSA had not made an objection decision, or because the objection decision had been made prior to 1
January 2007.
Since 1 January 2007, applications for review to the SSAT were made in relation to less than 13 per
cent of CSA objection decisions.
Until 30 June 2007,296 of the valid applications for review were in relation to decisions to change a child
support assessment. The remaining 225 concerned CSA decisions in other areas, such as care, the
credit of non-agency payments and the acceptance of estimated incomes.
At 30 June 2007, CSA had been notified of hearings in 265 matters and had received decisions from the
SSAT in 127 matters. In those 127 matters the SSAT decided to affirm CSA's decision in 71 matters (56
per cent).
People
Staffing statistics
At 30 June 2007, CSA employed 4,137 people (including employees on long-term leave) under the
Public Service Act 1999. On average, 3,301 staff were employed over the year, 291 more than in 200506. The workforce included 97.4 per cent ongoing and 85.4 per cent full-time employees.
Detailed information on staffing is provided in Appendix 1.
Human resource management
Attracting and retaining staff
Recruitment activities during the year were promoted through CSAs 'Great place to work' campaign. As
CSA competes for a diverse and sophisticated workforce in a tight labour market, this campaign seeks
to increase both the number of applications received and the retention of existing high-quality
employees, by implementing communication activities to position CSA as an employer of choice.
Recent improvements to recruitment activities have impacted positively on the number of applicants
registering their interest in working for CSA. For instance, the Casual Employment Register initiative has
opened opportunities for targeting people who are not normally pursued by CSA recruitment campaigns.
Promoting a safe and supportive workplace
Appendix 7 provides details of Occupational Health and Safety performance in 2006-07.
Remuneration
Certified agreement
At 30 June 2007, 3,857 staff were employed under Balancing Performance and Wellbeing, the Child
Support Agency Certified Agreement 2005-07.
Salary ranges for employees under the certified agreement are provided in Appendix 1. Under the terms
of the current certified agreement, staff will be entitled to a 4 per cent salary increase from 1 July 2007.
The agreement also provides the following non-salary benefits:

Flexbank, which provides for the accrual and storage of flex-time during CSA's peak business
season and the conversion of up to five days of accrued flex-time annually to cash;

flexible working arrangements, including regular part-time agreements, regular- hours agreements,
flex-time and time off in lieu;

study support;

an Employee Assistance Programme; and

year-end close-down.
The certified agreement has a nominal expiry date of 15 December 2007. A new agreement is currently
being negotiated with staff and representatives of the Community and Public Sector Union.
Australian Workplace Agreements
CSA offered Australian Workplace Agreements (AWAs) to all Senior Executive Service (SES) and
Executive Level officers in 2006-07.
Offers of AWAs are made to officers as individual circumstances arise, particularly to recognise
specialist skills and knowledge or to facilitate unique employment conditions not provided for under the
certified agreement.
CSA AWAs link individual performance to the achievement of corporate objectives and to pay outcomes,
including payment of performance bonuses.
The numbers of CSA staff covered by AWAs and their salary ranges are set out in Appendix 1.
Performance pay
In accordance with the SES and Executive Level Performance Management Schemes, CSA SES and
Executive Level employees covered by an AWA may have been eligible for a performance bonus based
on their individual performance assessment at the end of June 2007. SES employees who received a
superior performance rating (4 out of 5) received up to 10 per cent of their annual base salary and those
with an outstanding rating (5 out of 5) received up to 15 per cent of their annual base salary as
performance pay. Executive Level employees who received a superior performance rating up to 5 per
cent of their annual base salary and those with an outstanding rating received up to 10 per cent of their
annual base salary as performance pay.
The performance bonuses paid in 2006-07 for performance during the 2005-06 financial year are set out
in Table 9.
Table 9 CSA—performance pay for 2005-06
Level
Staff eligible
Staff paid
Amount paid ($)
Average ($)
EL 1
68
41
79,626
1,942
EL 2
52
34
150,411
4,424
SES Bands 1-3
11
9
102,665
11,407
Total all eligible
employees
131
84
332,702
3,961
APS = Australian Public Service; EL = Executive Level; SES = Senior Executive Service
Note: Two payments were deferred salary payments of 6 per cent of salary. Range for SES
classifications not disclosed to protect privacy.
Learning and development
As part of the organisational change in CSA in 2006-07, a core national learning and development
structure was established. The structure includes strategies to ensure staff have the technical, customer
interaction and leadership skills that they need to provide exceptional customer service. The endorsed
training and development plan for CSA includes strategies to ensure a nationally consistent training
outcome across a broad range of subject areas, including customer focus training and targeted technical
training.
In 2006-07, CSA invested $2,755,003 in training activities delivered by external training providers. In
addition, a range of learning programmes were developed internally to meet the special requirements of
the CSA's organisational changes. As well as customer service training, there was a national emphasis
on training in core areas such as employee induction, fraud awareness, privacy and secrecy, finance
and procurement, and project management.
To evaluate the overall outcomes of CSA's learning and development activities, a range of input was
sought from various parts of CSA to define the staff capability measure. In addition, each training
programme was evaluated on completion, and the outcomes of these evaluations were reported to a
reference group for review.
Workplace diversity
Under its Workplace Diversity Plan 2006-08, CSA worked to develop an inclusive and supportive
workplace through a number of strategies and key performance indicators. For example, CSA applied
the principles of reasonable adjustment and provided in-house rehabilitation case managers to support
employees with disabilities. All formal communication and training in CSA used inclusive language and
was delivered in formats accessible to the participants.
As an active participant in the DHS Indigenous Employment Taskforce, CSA sought to attract and retain
Indigenous Australian employees to improve their employment and career opportunities and build the
agency's capability for achieving improved service delivery to Indigenous Australians.
CSA's Indigenous Employment and Career Advancement Strategy 2005-08, which complements
targeted recruitment programmes such as the Australian Public Service Commission Indigenous
Graduate Programme, Indigenous Cadet Programme and Indigenous Trainee Programme, received a
positive response. The number of Indigenous staff in CSA increased by 70 per cent, and the number of
Indigenous staff in more senior positions increased by two people. The proportion of Indigenous
employees in CSA rose from 0.8 per cent of all employees in June 2006, to 1.8 per cent at 30 June
2007. CSA is progressing well towards a target of 2.2 per cent Indigenous employees by June 2008.
Indigenous staff were involved in recruitment processes and leadership and management training, and
CSA's Indigenous Staff Network, which has improved retention by supporting Indigenous employees,
grew to include Indigenous employees around the country. Training to promote awareness of Indigenous
cultures is being delivered to all employees and more than 1,500 employees, (37 per cent) completed
the training in 2006-07.
Resources
Financial management
CSA's operating surplus for 2006-07 was $1.6 million, a decrease compared with $7.7 million in 200506.
Expenses in 2006-07 amounted to $370.1 million, an increase of 28 per cent over the 2005-06
expenditure of $289 million. The increase resulted from an increase in employee expenses arising from
an increase in staff levels and pay rises delivered under the certified agreement.
Financial assets at 30 June 2007 were $75.5 million compared with $42.2 million at 30 June 2006.
This balance comprises $3.4 million in cash at bank, $69.3 million in appropriations receivable and $2.8
million in other receivables.
The increase in financial assets is largely attributable to:

an operating surplus of $1.6 million;

anticipated 2006-07 capital expenditure of $18.8 million being deferred until 2007-08 because of
delays in the fit-out of newly leased accommodation; and

working capital held against supplier and employee liabilities.
Administered appropriations
The total administered annual appropriation drawn down in 2006-07 was $3.1 million. Of this, $0.7
million related to funding the Newly Separated Unemployed Parent initiative.
The total administered annual appropriation returned to the Official Public Account for 2006-07 was $2.2
million. Administered Special Appropriations drawn down in 2006-07 totalled $75 million. CSA collected
and returned $74.7 million in special appropriations for this period. CSA transferred $949 million in child
support payments in 2006-07, which is an increase of $46.9 million from 2005-06.
Consultants and services contractors
During 2006-07, CSA entered into 24 new consultancy contracts. This involved total actual expenditure
of $1,298,458. In addition, three ongoing consultancy contracts were active during 2006-07, involving
total actual expenditure of $911,388.
CSA engaged consultants to provide a range of services, including market research, business modelling
and human resource services.
Detailed information on consultancy contracts is provided in Appendix 4. Appendix 9 corrects errors in
the consultancy information provided in the Annual Report 2005-06.
Information on expenditure on contracts and consultancies in also available on the AusTender website,
www.tenders.gov.au.
Office accommodation
In 2006-07, CSA leased 58,452 square metres of office accommodation at 22 sites, at a cost of $23
million.
CSA continued to work with other Human Services agencies to realise synergies in colocating offices,
and gradually disengaged from shared accommodation arrangements with the ATO.
CSA has negotiated acquisition of an additional 21,925 square metres of office accommodation in Albury
(New South Wales), Dandenong and Geelong (Victoria), Brisbane, Adelaide and Hobart. CSA will
relinquish 14,707 square metres of this additional office accommodation by December 2009 when
consolidation occurs in Albury and Wollongong (New South Wales) and Brisbane.
CSA will be independent from ATO sites in Albury, Sydney, Dandenong, Geelong and Townsville
(Queensland) by 2008.
Purchasing
In 2006-07, CSA continued to follow the DHS Procurement Guidelines that took effect from 1 January
2006. The guidelines, which are in addition to the Commonwealth Procurement Guidelines that apply to
purchasing by Human Services agencies, are published on the DHS website. All suppliers and potential
suppliers are encouraged to recognise the guidelines in their offers to supply goods and services.
CSA's own procurement guidelines, processes, procedures and documentation were revised and
reissued during 2006-07, focusing on compliance with the FMA Act and regulations.
CSA achieved efficiencies by participating in 11 cross-agency contracts in 2006-07. CSA has leadagency responsibility for four procurement activities—market research, workstations and loose furniture,
security and storage units, and office relocations.
Asset management
No asset valuations were undertaken by an external valuer during 2006-07.
In 2006-07, CSA undertook a stocktake of information technology assets and other assets.
Asset capitalisation thresholds for 2006-07 remained the same as 2005-06. The thresholds were
$200,000 for internally developed software, $25,000 for purchased software and $10,000 for leasehold
improvements.
In 2006-07, CSA's computer systems were leased from and managed by EDS under contract with the
ATO. CSA's telephony infrastructure was leased from and managed under contract with NEC.
Records management
In June 2006, CSA completed the movement of paper records (with the exception of Tasmanian records
which will be moved later this year) into the Centrelink Records Management Units. The records were
previously kept with the ATO and the secondary storage providers Ausdoc and Recall.
The move to a centralised records registration and retrieval service with Centrelink achieves synergies
between Human Services agencies. The new arrangement includes three years of free storage.
CSA staff register and retrieve documents using the TRIM interface on the CSA intranet (C3). To ensure
appropriate file-naming conventions are used, CSA staff can seek advice from a Centrelink hotline.
Before the move to the centralised records management arrangement with Centrelink, only 14,500 files
were registered on the database. CSA now has approximately 975,000 files registered on the database.
Additionally, all documents can be tracked using the database. The new retrievals arrangement has
improved both internal and external customer satisfaction levels.
A National Archives of Australia Commonwealth agency self-audit was completed in August 2006,
resulting in 37 recommendations for improvements. Implementation of the recommendations, which
address a large range of records management issues, began in February 2007.
Work on a new records disposal authority began in February 2006, with a view to addressing functions
specifically required by CSA. The aim is to allow for a more efficient system for sentencing and
disposing of records, clearer decision making on the filing of records, an eventual reduction of paper
filing, and a cost saving.
Purchaser-provider arrangements
CSA had no purchaser-provider arrangements during 2006-07.
Outlook
In 2007-08, CSA will focus on implementing the most complex stage of the Child Support Scheme
reforms and the CSA organisational change agenda, while maintaining services and support for 1.4
million customers. CSA will carefully manage the process of reform by continuing to inform customers
and the wider community of the changes to the Child Support Scheme to give them confidence in the
scheme. The agency will continue to communicate with a range of stakeholders, including government
agencies, service providers, advocacy groups, academic researchers and potential support networks for
separated families about the changes.
CSA will also continue to focus on improving collections by encouraging voluntary compliance, helping
to improve the extent to which the Child Support Scheme meets the needs of separated parents, and
building international partnerships to reduce the amount of debt for children of separated parents
overseas.
OUTPUT 3 CRS Australia
Highlights of 2006-07

Delivering an almost 30 per cent increase in new vocational rehabilitation programmes funded by the
Department of Employment and Workplace Relations (DEWR)

Placing 11,759 job seekers in employment, 8,312 of whom were still employed after 13 weeks, with
more than 50 per cent of the 8,312 working 30 or more hours a week

Negotiating and implementing a new Memorandum of Understanding (MOU) with DEWR to provide
vocational rehabilitation services

Delivering job capacity assessment services on behalf of the Core Department

Opening new offices in Marrickville, New South Wales, and Northbridge, Western Australia, in
response to increased demand for vocational rehabilitation programmes

Researching new approaches to personal disclosure, work training, administrative support and
employment strategies and supporting job seekers with substance abuse

Finding, through the 2006-07 stakeholder satisfaction survey, that 89 per cent of job seekers are
satisfied or very satisfied that their vocational rehabilitation programme meets their needs

Completing a comprehensive review of practice and business support resources

Developing employee self-service and business warehouse initiatives for implementation from 1 July
2007

Reducing unplanned leave to 8.40 days per full-time equivalent employee per year (from 10.40 days
in 2005-06), which is below the Australian Public Service median of 8.90 days
General Manager's review
In 2006-07, CRS Australia continued to provide high-quality assessment and vocational rehabilitation
services, helping Australians with disabilities, injuries or health conditions to enter or remain in the
workforce. The number of new vocational rehabilitation programmes delivered on behalf of the
Australian Government increased by close to 30 per cent during the year.
CRS Australia's continued focus on the ability of each individual job seeker resulted in 48,208 new and
existing job seekers being assisted, with 8,312 of these achieving a 13-week employment outcome that
was more than 30 hours per week in more than 50 per cent of cases. The effectiveness of vocational
rehabilitation in building individual work capacity is evidenced by 39 per cent of all job seekers being in
work three months after completion of their programme.
Positive outcomes for job seekers are made possible by an excellent network of allied health
professionals, support staff and managers. CRS Australia staff continued to use innovative and flexible
approaches to bring out the best in job seekers in 2006-07.
CRS Australia is constantly looking for ways to improve the effectiveness of its service delivery. In 200607, a number of new strategies ensured that services were either maintained at their existing high levels
or improved, and that there were better processes to monitor and evaluate performance.
Other significant achievements included the launch of Focus for the Future, CRS Australia's Strategic
Plan 2006-09, and the development of a new memorandum of understanding with the Department of
Employment and Workplace Relations. The strategic plan provides a framework within which CRS
Australia can continue to be a successful, robust and viable organisation.
CRS Australia ended the year with a budget surplus, primarily reflecting continued sound performance
against key contracts. In the years ahead, this secure financial position, combined with expertise,
flexibility and innovative practice, will help to ensure that CRS Australia achieves its vision—to remain
the leading provider of vocational rehabilitation and related services in Australia.
Margaret Carmody
General Manager
Figure 13 CRS Australia—organisational structure and senior staffing at 30 June 2007
Output overview
Purpose
CRS Australia's purpose is to meet the needs of customers by providing high-quality vocational
rehabilitation, assessment, injury management and prevention services to people with a disability, injury
or health condition to enable them to gain and maintain employment.
CRS Australia provides services to job seekers, as well as commercial and government customers, at
more than 177 sites in urban, rural and remote areas across Australia, and through visiting and outreach
services. The largest provider of expert assessment and vocational rehabilitation services in Australia, in
2006-07 CRS Australia was also the sole provider of vocational rehabilitation services to the Australian
Government under the Disability Services Act 1986.
CRS Australia operates as a business unit within the Portfolio Department of Human Services.
Strategy
CRS Australia meets its purpose through a set of goals that are clearly defined in a strategic plan. Focus
for the Future, the Strategic Plan 2006-09, describes how CRS Australia will achieve its goals by
pursuing four strategic themes:

exceeding customer expectations;

growing capability;

building reputation; and

improving effectiveness.
The Strategic Plan 2006-09 also identifies the opportunities, challenges and risks that CRS Australia
faces, and the values that guide its operations. The plan can be accessed through the Publications
section of the website at www.crsaustralia.gov.au.
Structure
In 2006-07, CRS Australia was structured into service delivery and support functions, as shown in Figure
13.
Table 10 CRS Australia—performance measures
Measure
Performance
Quality
Certification against Disability Services
Standards
Certified
Quantity
Number of new clients assisted on a
rehabilitation programme
32,445
Number of rehabilitation clients achieving
durable employment outcomes
8,312
Proportion of clients achieving durable
employment outcomes
33%
Effectiveness and
efficiency
Measure
Price
Performance
Efficiency—CRS Australia must deliver
effective rehabilitation programmes within
the funding provided as a viable business
unit
CRS Australia delivered effective
programmes and had a surplus of
$11.49 million in 2006-07
CRS Australia undertakes a range of other
services for government and private
agencies with each agreement requiring
certain performance indicators to be met
CRS Australia met all
performance requirements; results
against key performance
indicators for government
agencies are detailed in their
annual reports
Price of outputs $232.310 million
Price of outputs:

$197.826 million total

$166.312 million (vocational
rehabilitation excluding
unearned revenue)
Service Delivery Policy
Service Delivery Policy is responsible for:

developing practice and delivery policy, including through research and innovation;

influencing purchaser policy to improve the effectiveness of vocational rehabilitation and related
outcomes;

providing strategic and business analysis data and advice; and

ensuring the efficiency and effectiveness of services in New South Wales,
Victoria, Tasmania and the Australian Capital Territory.
Service Delivery Operations
Service Delivery Operations is responsible for:

implementing new practice or process requirements;

conducting quality assurance and ensuring compliance with customer contracts and memorandums
of understanding (MOUs);

managing key accounts and new business strategies:

developing and implementing effective internal and external communication strategies; and

ensuring the efficiency and effectiveness of services in Queensland, Western Australia, South
Australia and the Northern Territory.
Corporate
Corporate is responsible for:

providing efficient and effective support services to the network;

providing strategic financial advice and management;

managing infrastructure;

managing risk audit and compliance assurance; and

developing and implementing workforce planning to attract and retain staff.
Developments since the end of the financial year
CRS Australia receives more than 80 per cent of its revenue through an MOU with the Department of
Employment and Workplace Relations (DEWR). Income is payable on achievement of milestones and
outcomes. The resource efforts in programme delivery for DEWR often occur over a 24-month period.
On 30 June 2007, CRS Australia analysed its revenue and expenditure items for DEWR clients.
Applying the percentage of completion method for revenue recognition, it determined that $6.5 million
that had been received from DEWR was in relation to work to be performed in a future financial year.
This amount of revenue has been recognised as unearned revenue on the balance sheet.
Performance
CRS Australia is responsible for Output 3 of the Portfolio Department of Human Services (DHS):
Delivery of vocational rehabilitation services to eligible people who have an injury, disability or
health condition.
Table 10 reports CRS Australia's results against the performance measures for Output 3 set out in the
Human Services Portfolio Budget Statements and the Portfolio Additional Estimates Statements for
2006-07.
DEWR is the principal purchaser of CRS Australia services. Performance against the DEWR MOU is
reported in more detail in that department's annual report. DEWR, which undertakes post-programme
monitoring, advises that 39 per cent of all job seekers were in work three months following programme
completion.
The following sections describe how CRS Australia's performance contributed to Output 3 and met the
objectives of its strategic plan in 2006-07.
Meeting the needs of all customers
Overall performance
CRS Australia met the requirements of DEWR and other purchasers, and had a surplus of $11.49 million
at 30 June 2007.
Tailored services
As well as the suite of services provided to DEWR during 2006-07, CRS Australia provided a range of
services to Australian Government agencies and other organisations, including:

rehabilitation services for veterans and military personnel for the Department of Veterans' Affairs;

occupational rehabilitation services for workers compensation insurers;

injury prevention services for a range of public and/or private organisations;

career planning services for the Department of Education, Science and Training;

wage assessments and case management in business services for the Department of Families,
Community Services and Indigenous Affairs; and

job capacity assessments for the Core Department.
The requirements of each contract were clearly articulated to staff and supporting training was provided.
Performance against each contract was actively managed to ensure delivery of purchased services.
Accessible services
CRS Australia offices are located in areas that enable it to respond to demand for services.
Based on advice from DEWR on the distribution of funded programmes for each employment service
area, CRS Australia fine-tuned service provision in 2006-07, furthering its aim of enabling people to
access vocational rehabilitation services close to where they live.
CRS Australia maintained its commitment to rural and remote communities. More than 40 per cent of
service units were located in those areas. CRS Australia sites provide a range of services including
vocational rehabilitation, work capacity and complex assessments, injury prevention and return to work
services.
New offices were opened in Marrickville, New South Wales, and Northbridge, Western Australia, in
response to increased demand for vocational rehabilitation programmes.
Service charter
In delivering services to clients, CRS Australia staff continued to observe the standards set out in the
Client Service Charter.
CRS Australia's service charter outlines its commitment to providing high-quality vocational rehabilitation
and consultancy services to clients, and details what clients can expect. The charter is available online
at the CRS Australia website, www.crsaustralia.gov.au, and is displayed at CRS Australia sites.
CRS Australia measures how well the charter is being met for service recipients, through its internal
quality improvement programme—Quest for Quality. This programme includes:

quarterly audits of client files;

six-monthly site audits by the regional manager;

feedback sought from each service recipient during and at the end of their programme;

focus groups (conducted internally and by external consultants); and

surveys of service recipients.
The 2006-07 Stakeholder Satisfaction Survey found that 89 per cent of job seekers were satisfied or
very satisfied that their vocational rehabilitation programme met their needs.
Certification audit
CRS Australia maintained certification under the Disability Services Act 1986, with no deficiencies
recorded, following an audit by accredited auditor SAI Global during 2006-07. The auditor congratulated
CRS Australia, saying:
The review revealed a well managed system, with a clear focus on promoting consistent organisational
values, ensuring systems were in place to provide services to clients in line with set objectives and
timeframes.
There was a strong overall commitment from both staff and management of CRS Australia to the welfare
of its clients and there is excellent compliance with the Disability Standards as evidenced through the
client interviews, document review and observations made on site.
There was a strong teamwork approach utilised at audited locations with staff having an excellent
understanding of their colleagues skills, expertise and how the team approach could assist in achieving
positive outcomes for clients. The wide range of skills, experience and qualifications of CRS Australia
staff also contributes to achieving good client outcomes.
Evaluation and feedback
Feedback received from employers during 2006-07 indicated a high level of satisfaction with their
working relationships with CRS Australia and the ease of communication with CRS Australia's local
offices. Employers valued the work done by CRS Australia to help job seekers and those wishing to
return to work.
CRS Australia also received performance feedback from external job capacity assessors. Overall,
assessors perceived CRS Australia as a caring organisation, with staff who treat people with dignity,
honesty and respect, are approachable and are experts in their field.
As part of a strategy to improve service delivery effectiveness, CRS Australia also analysed feedback
from job seekers, assessors and stakeholders. In 2006-07, on behalf of CRS Australia, a market
research firm independently surveyed 900 job seekers, asking them to provide feedback on the level of
service provided. A significant proportion of those surveyed (82 per cent) rated CRS Australia staff
highly for their helpfulness, understanding and ability to provide support and assistance to them in
managing their disability.
Maximising employment outcomes
In 2006-07, CRS Australia continued to implement reforms announced in the 2005-06 Budget, including
job capacity assessments and new mutual obligation requirements.
CRS Australia assisted a total of 48,208 job seekers through its Australian Government funded
vocational rehabilitation programmes in 2006-07. The programmes comprised 32,445 new job seekers
and 1 5,763 job seekers who were already on programmes at the start of the financial year.
All of the job seekers who were assisted in 2006-07 had disabilities. An estimated 26 per cent had
mental health conditions as their primary barriers to entering the workforce. Of the 1 1,759 job seekers
who were successfully placed in employment, 8,312 (71 per cent) achieved a 13-week employment
outcome and more than 50 per cent of those outcomes involved 30 hours or more of work each week. A
further 89 job seekers commenced study or apprenticeships.
Developing innovative strategies and service delivery models
New strategies
A number of new strategies were implemented during 2006-07 in anticipation of the introduction of
partial contestability for vocational rehabilitation services from 1 July 2007. Strategies included:

ensuring that services remain flexible and responsive to local circumstances;

reviewing practices for supporting allied health professionals, to increase their time available for work
with job seekers; and

reviewing internal and external benchmarks and performance indicators, to ensure they remained
appropriate to drive effective practice and performance.
Agency efficiencies
CRS Australia participated actively in portfolio-wide reforms to improve the overall efficiency and
effectiveness of government service delivery in 2006-07. This included improvements in purchasing
practice, better support for staff in delivering services to communities and more general sharing of better
practice approaches.
Arrangements with the Department of Employment and Workplace Relations
CRS Australia maintained its good working relationship with its primary purchaser, DEWR, in 2006-07.
Under the new MOU reached with DEWR during the year, CRS Australia retains an estimated 70 per
cent of the Australian Government's vocational rehabilitation programme.
In 2006-07, the MOU resulted in new work processes and performance targets, and different funding
arrangements. One significant outcome of the MOU is that from 2007-08 the majority of performance
targets will enable CRS Australia's performance to be benchmarked with that of other service providers.
CRS Australia staff gained experience in working with the new DEWR funding model and MOU
conditions during 2006-07. Significant training was rolled out to ensure staff were appropriately trained to
use ES Smartclient, the case management system used by all providers of Australian Government
employment services. ES Smartclient will allow staff to track and manage individual cases as job
seekers move through CRS Australia programmes. This experience and training, along with strong
existing expertise, will mean that CRS Australia staff are well prepared to deliver competitive levels of
service when other service providers enter the vocational rehabilitation market from 1 July 2007.
Best practice and knowledge sharing
CRS Australia's high-quality service delivery in 2006-07 was underpinned by a strong commitment to
lifelong learning and active knowledge sharing.
Eight Networks of Excellence (Communities of Practice) continued to identify, support and promote
opportunities to apply best practice and improve effectiveness and efficiency throughout CRS Australia.
A range of research and evaluation projects were undertaken in areas such as seasonal employment,
participation reporting and exploring vocational options. CRS Australia commenced a trial of the use of
webcam technology to improve knowledge sharing across virtual teams.
CRS Australia also completed the development of a business warehouse that integrated the electronic
information sources across CRS Australia and external sources into one database, and provided
managers with a more flexible reporting tool. The warehouse will be implemented in July 2007 and will
provide better management information to inform business operations.
Staff members also completed innovative research in a number of service-related areas, including
substance abuse, personal disclosure, work training, administrative support and employment strategies.
This research will be used to improve and enhance service delivery strategies to benefit all stakeholders.
CRS Australia staff made a range of presentations at international and national conferences, including
meetings of the World Federation of Occupational Therapists, the International Forum on Disability
Management, Services for Australian Rural and Remote Allied Health, the International Association for
Child and Adolescent Psychiatry and Allied Professions, ACT Knowledge Management, the Case
Management Society of Australia, and the Australasian Pain Society. Staff research papers were
published in the Australian and New Zealand Journal of Psychiatry and the Journal of Rehabilitation.
In January 2007, CRS Australia staff delivered presentations and training on case management, return
to work services and the benefits of early intervention to 20 staff from the Malaysian Social Security
Organisation, as part of a Malaysian Government initiative on return to work.
Supporting our staff and employing the right people
As well as the job seeker survey, which provided highly favourable feedback on staff performance, CRS
Australia conducted a poll of 25 per cent of its staff members in 2006-07. The staff survey reported the
agency's strengths to be its direct managers, client focus, use of effective methods of communication
and the method of rewarding staff for good performance.
The survey results were provided to senior managers, who are using them to identify areas of
improvement in each division and functional area. Strategies to implement improvements will be
included in relevant business plans.
CRS Australia aims to provide a family-friendly workplace and relevant professional development
opportunities for staff. Significant progress was made in 2006-07 to improve attendance rates and
ensure that staff members experiencing personal or work tensions had access to support. Specific
strategies reduced unplanned absences from 10.40 to 8.40 days per full-time equivalent by the end of
June 2007. This significant change is equivalent to having 16 full- time staff now available to work with
and support job seekers. CRS Australia also reinvigorated its occupational health and safety
management approaches during the year, ensuring safer workplaces.
Extensive development and testing was undertaken in 2006-07 on the new Employee Self Services
(ESS) programme that will enable staff to directly undertake leave and banking transactions and review
their personnel profiles online. This initiative will result in the automatic processing of over 18,000 leave
applications, thus freeing up staff to better support the organisation's workforce. The ESS programme
will be fully implemented in 2007-08.
Positive attitude plus CRS Australia professionalism equals success
Kym Hayward, 33, was working as a chef when he was diagnosed with a cyst in his brain. Surgery was
an option, but he faced the possibility of death or the effects of an acquired brain injury as a result. The
risk was severe enough for Kym to be advised to say goodbye to his wife and two young children.
Fortunately, Kym survived the surgery, although not without injury. The side effects included slight shortterm memory and concentration issues, persistent headaches, balance problems, reduced capacity to
use his left hand, fatigue and, initially, social anxiety.
Kym wrote a note of encouragement to himself: 'Life is too short. Live now, not tomorrow and do what
you can do today.' Following his own advice, he became an active participant in a vocational
rehabilitation programme with CRS Australia, determined to return to his job.
From the outset, Kym's determination, positive attitude and commitment to his goal ensured he was
focused on success. 'He never gave in, and did everything that was asked of him and more, ' says
Kym's rehabilitation consultant, Leanne O'Leary.
During a graduated return to work, Leanne provided support, advice and information to Kym and his
employer. She played a vital role in ensuring both Kym and his employer understood Kym's capabilities.
Kym trusted CRS Australia implicitly, and the outcome was a story of outstanding success. Not only did
Kym regain his health and fitness—the further skills and experience he gained through the programme
enabled him to continue working as a chef in a great new job.
Kym says, 'Nothing was too much trouble for CRS Australia, I couldn't have done it without them. '
Kym Hayward
Management and accountability
Corporate governance
This section reports on aspects of CRS Australia's corporate governance arrangements that function
within the whole-of-department measures and the Secretary's overall responsibility described in the
Overview chapter.
The names and responsibilities of the senior executives of CRS Australia are shown in Figure 13.
Governance framework
Committees
A number of committees assist in the effective governance of CRS Australia, as described in Table 11.
Accountability
The General Manager of CRS Australia is accountable to the Secretary of DHS for the overall
performance of the agency, including its financial and risk management. The General Manager and
Secretary meet regularly to ensure effective oversight and early identification of strategic issues. The
General Manager attends meetings of the DHS Audit Committee.
The CRS Australia Executive meets with the Secretary of DHS each month to review CRS Australia's
performance from a governance perspective, including financial performance and strategic issues.
Table 11 CRS Australia—governance committees
Members
Functions
Meetings
Fortnightly
Executive Committee
General Manager
(Chair)
Margaret Carmody
Develops and implements CRS
Australia's strategic direction and
priorities for the future
Deputy General
Manager Corporate
Michael Callan
Monitors, reviews and manages
progress against CRS Australia's
Strategic Directions
Deputy General
Managers Service
Delivery
Carl Princehorn
Seeks and responds to staff, job seeker
and customer feedback Actively
identifies and manages risks Approves
national policies
Susan Kable
Monitors financial performance and
develops remedial action
Strategic and Business Group
General Manager
(Chair)
Margaret Carmody
Deputy General
Managers
Michael Callan
Susan Kable
Carl Princehorn
National Managers
Jeremy Gregson
Chris Harvey
Gabriel Herr
Alison Lane
Geoff McInnes
Patricia McAlpine
Makes decisions on national issues
where requested by the Executive, and
provides advice and recommendations
to the Executive Considers substantial
issues relating to business operations
Monitors and provides input to national
projects, Communities of Practice
(Networks of Excellence) and other
internal committees
Every six
weeks
Divisional
Managers
Ademola Bojuwoye
Jan Byers
Peter Davies
Rowena Hodgson
Ian McInnes
Trevor Wilkins
Jacci Young
Chief Financial
Officer
Peter Hausknecht
Information Technology Investment Board
General Manager
(Chair)
Margaret Carmody
Plays a key role in information
technology (IT) corporate governance
Deputy General
Managers
Michael Callan
Has a strategic, high-level and financial
investment focus on IT
Susan Kable
Carl Princehorn
National Manager
Information
Technology
Jeremy Gregson
Chief Financial
Officer
Peter Hausknecht
An external
representative
Vipan Mahajan
Quarterly
Ensures that IT is strategically aligned to
business needs
Oversees the IT asset replacement
strategy Provides leadership in the
evaluation and prioritisation of IT
projects
Risk Management Committee
Deputy General
Manager Corporate
(Chair)
Michael Callan
National Manager
Information
Technology
Jeremy Gregson
National Risk
Manager (Agency
Security Adviser)
Adam Smith
Sets the direction of, monitors and
reviews the risk management, fraud,
audit and protective security control
environments
Reviews the risk register on a quarterly
basis Develops the forward audit
programme for Executive consideration
Oversees business continuity
management plans and activities
Quarterly
IT Security Adviser
Chris Brookes
A divisional
manager
Jacci Young
Develops and monitors risk
management, fraud, audit and protective
security policies and programmes of
work
A regional manager
Vacant
Provides advice and guidance on risk
management issues as required
Independent
representatives
from the Core
Department and
CSA
Ray Gunning Tony
Hanrahan
An independent
observer
Tony Hoff
Occupational Health and Safety Committee
Divisional Manager
(Chair)
Peter Davies
Oversees the development of OH&S
policies and strategies
National OH&S
Advisor
Andrew Lott
Oversees the implementation, operation
and
Management
representative
Janelle Graham
review of the CRS Australia OH&S
agreement Promotes the concept of a
healthy workforce, safe
National Injury
Prevention
Coordinator
Sharon Leahy
work practices and awareness of OH&S
to employees
Health and safety
representatives
Annie Moller
Reviews statistics on hazardous
incidents, injuries and illnesses related to
the work environment and system of
work
Sandina Bailey
Sandra Samarin
Krysten Bury
Jaspreet Cowley
Quarterly
Promotes efficiency through the
reduction of workplace hazards,
accidents and injuries and minimising
personal and organisational losses
Oversees the application of
Commonwealth and national OH&S
regulations, standards and codes of
practice
Note: Details of the Audit Committee for the Core Department, CSA and CRS Australia are shown in
Table 4.
Internal scrutiny
Internal audit
CRS Australia's internal audit and quality assurance processes are used strategically to identify learning
and development opportunities, undertake improvements to overall effectiveness and provide assurance
of consistency in decision making, in particular as it applies to decisions under the Disability Services
Act 1986 and the Financial Management and Accountability Act 1997 (FMA Act).
In 2006-07, extensive work was completed to ensure CRS Australia met new certificate of compliance
requirements under the FMA Act. The work included education of managers and delegates, additional
audit processes and certification by managers that processes under their control had been reviewed for
compliance. A breach register was established for reporting purposes.
CRS Australia also conducted a number of internal audits and participated in a variety of cross-agency
audits, including audits of financial statements.
CRS Australia was again certified through the annual surveillance and certification audit conducted
against the Disability Service Standards on behalf of the Department of Families, Community Services
and Indigenous Affairs. No major non-conformities were identified during the audit.
CRS Australia maintains client files and other files that contain a range of personal information, some of
which can be of a sensitive nature. CRS Australia has well-developed systems and processes to ensure
an appropriate level of privacy is maintained. An internal review conducted in 2006-07 identified scope to
improve compliance with privacy best practice, and its recommendations are being implemented.
All managers completed the twice-yearly self-audit package, which assists them to ensure that the
business units for which they are responsible comply with relevant statutory and internal policy
requirements. Self-audits were undertaken in November 2006 and April 2007.
CRS Australia monitored the publication of new guidelines and whole-of-government Australian National
Audit Office (ANAO) audit reports to ensure that compliance and best practice were maintained within
the organisation.
Risk management
CRS Australia's risk management plan is informed by risk assessments undertaken across all areas of
the organisation, including staff management, business planning, continuity and management of major
projects, change processes, and occupational health and safety (OH&S). During 2006-07, a strategic
and operational risk assessment was conducted to determine the overall risk profile for CRS Australia
and appropriate mitigation strategies were implemented.
As part of the organisation's commitment to continuous improvement, CRS Australia participates in the
annual Comcover risk management benchmarking survey to ensure that process and practices reflect
relevant legislation and standards. In 2007, CRS Australia obtained an eight out of 10 benchmark rating,
which placed the organisation in the top five out of 125 Australian Government agencies covered by
Comcover.
The membership and functions of CRS Australia's Risk Management Committee are outlined in Table
11.
Fraud prevention
As part of its responsibility to protect the public interest, CRS Australia maintains a fraud control
programme that complies with the FMA Act and the Commonwealth Fraud Control Guidelines.
In 2006-07, the National Fraud Control Plan was reviewed and updated with the endorsement of the
DHS Audit Committee. As part of the fraud control programme:

fraud risk assessments and fraud control plans are prepared;

appropriate fraud prevention, detection, correction, investigation and reporting procedures and
processes are undertaken by qualified staff;

data on fraud is collected and reported annually; and

all processes and procedures are actively reviewed and, where appropriate, updated in accordance
with CRS Australia's continuous improvement strategies.
Ten matters of fraud were investigated during the year with two matters not yet resolved. The other
matters involved five external and three internal allegations of fraudulent activity, all of which were
thoroughly investigated and reported to the appropriate delegate. Recommendations on appropriate
sanctions and prevention strategies were approved and implemented. Where required, the fraud control
plan and risk register were also updated.
Security
CRS Australia's protective security framework is based on detailed risk assessments, security reviews of
offices, and assessments of other threats and weaknesses, as required by the Australian Government's
Protective Security Manual and the Australian Communications Security Instructions (ACSI 33).
Protective security activities in 2006-07 included a number of reviews of metropolitan and rural service
delivery sites. Although no major control weaknesses or material risks were identified by the reviews, a
number of recommended additional controls and remediation strategies were implemented.
Management of ethical standards
All new staff members of CRS Australia receive a copy of the Australian Public Service (APS) Values
and Code of Conduct as part of their welcome kit when they begin work. The values and code are
reinforced through staff induction training, which is conducted at a national level, and in local
presentations to staff by managers.
Managers and other staff are required to follow the APS Values and Code of Conduct both in their
delivery of services and in their interactions with each other. Policies and procedures relating to
breaches of the code are available to all staff on the CRS Australia intranet—CRSNet.
During 2006-07, there were 10 investigations for breaches of the APS Code of Conduct. Nine staff
members were found, on the balance of probabilities, to have breached the APS Code of Conduct and
one investigation is still in progress. Some staff members were found to have multiple breaches or were
given multiple sanctions. The sanctions imposed were two terminations of employment, five reprimands,
and one deduction from salary by way of a fine. No sanction was applied in relation to two staff who
were found to have breached the APS Code of Conduct; however, an "other" management action was
applied to one of these staff members.
Resolution of complaints
CRS Australia's complaints management process follows a three-tier resolution model. Complaints are
made initially at the regional level, and escalated to divisional and national levels as required.
During 2006-07, there were five internal reviews of decisions. One related to a decision to close
programmes, and four related to decisions not to waive programme costs. All requests for review were
resolved.
The number of internal reviews was 40 per cent lower in 2006-07 than in the 2005-06 reporting period.
External scrutiny
Under the Disability Services Act 1986, a person affected by a decision, or failure to make a decision, of
CRS Australia can appeal first to the Secretary of DEWR or their delegate, then to the Administrative
Appeals Tribunal (AAT) if the matter is not resolved to their satisfaction. Amendments to the Act will
change review and appeal processes from 1 July 2007.
Administrative Appeals Tribunal
Two clients lodged applications for the review of CRS Australia decisions with the AAT in 2006-07. One
application was withdrawn and the other is continuing.
Australian National Audit Office
The Australian National Audit Office (ANAO) conducted one audit involving CRS Australia in 2006-07 in
addition to the routine audits of the financial statements. This was a follow-up audit examining
superannuation for independent contractors. CRS Australia also participated in the ANAO survey of
labour hire arrangements.
One finding which arose from the audit of superannuation for independent contractors has been
addressed and remediation action has been implemented to ensure best practice is achieved.
Commonwealth Ombudsman
The Commonwealth Ombudsman's office received 31 inquiries about CRS Australia. Of these, two were
investigated and resolved. No deficiencies were found in CRS Australia's administration.
Human Rights and Equal Opportunity Commission
The Human Rights and Equal Opportunity Commission (HREOC) made one inquiry into a matter related
to CRS Australia during 2006-07. The matter was terminated on the grounds that it was misconceived.
CRS Australia was advised by HREOC of a number of other complaints made by one individual, all of
which were terminated as being misconceived and/or lacking in substance. The individual has filed
applications in the Federal Magistrates Court, naming CRS Australia as one of a number of
respondents, as a result of the termination of these complaints.
People
Staffing statistics
At 30 June 2007, CRS Australia employed 2,088 people under the Public Service Act 1999. On average,
2,084 staff were employed over the year, 83 more than in 2005-06. Of these, 86 per cent were ongoing
employees and 62 per cent were full-time employees.
Detailed information on staffing is provided in Appendix 1.
Human resource management
Attracting and retaining staff
In 2006-07, CRS Australia built workforce capabilities through targeted recruitment, learning and
development activities and coaching. Managers were assisted by a range of information resources,
including regular workforce reports on relevant demographic information, staff absences and turnover.
An expression of interest database and portal for prospective and current employees was implemented
to increase the pool of candidates for positions. Sessions on attraction and commitment drivers of the
different generations of potential and existing employees were delivered at the CRS Australia National
Managers' Conference.
To assist CRS Australia in responding to the growth in the number of funded vocational rehabilitation
places, a major recruitment campaign was undertaken and a suite of advertising templates for branded
recruitment was implemented. The lessons learnt from bulk recruitment exercises were discussed at the
biennial National Conference of Services for Australian Rural and Remote Allied Health (SARRAH).
As part of its management of workforce capability, CRS Australia also participated in the Australian
Public Service Commission (APSC) Absence Management Working Party, the DHS Absence
Management Committee, the Workers' Compensation Premium Reduction Working Group and a DHS
reference group examining superannuation choice of funds.
CRS Australia successfully implemented a range of strategies to reduce unplanned leave to levels below
the APS median of 8.90 unplanned leave days per employee. As a result absences were reduced from
10.40 days per full-time equivalent in 2005-06 to 8.40 in 2006-07, a reduction of 19 per cent.
A range of commitments made in relation to the Certified Agreement 2005-08 were advanced in 200607. Extensive resources were applied to the review of workforce policies to ensure consistency and
better practice. Work progressed on both a mature-aged worker policy and an overall workforce plan.
These initiatives focus on attracting and retaining essential workforce elements to enable services to be
provided to meet customer requirements. The increasingly tight market for allied health workers has
required more active attraction and retention strategies; CRS Australia will continue to do work in these
areas in 2007-08.
Promoting a safe and supportive workplace
As part of the broader DHS initiative, CRS Australia joined with the Core Department and Child Support
Agency in a commitment to implement strategies to meet the national OH&S and rehabilitation
performance improvement targets. Those strategies include:

senior management commitment to improved practice;

pre-management information for all managers;

induction training encompassing OH&S;

manager training on early intervention in response to signs of stress; and

integration of OH&S with organisational risk and business management.
Through those strategies, and under the guidance of its new National OH&S Committee, CRS Australia
reinvigorated its approach to OH&S during the year.
Appendix 7 provides more details of OH&S performance in 2006-07.
Remuneration
Certified agreement
At 30 June 2007, 1,977 staff were employed under CRS Australia's Certified Agreement 2005-08.
Salary ranges for employees under the certified agreement are set out in Appendix 1.
The certified agreement provides for continued productivity gains and affordability, achieved through a
shared commitment to improving the organisation's performance, productivity and work environment.
This involves reviewing and improving practices and procedures, and gaining efficiencies through
innovation and simplification. An element of salary increase is directly related to both productivity and
performance.
Australian Workplace Agreements
CRS Australia offered Australian Workplace Agreements (AWAs) to both existing and new staff in 200607. As at 30 June 2007, there were 111 employees employed under AWAs.
The salary ranges of CRS Australia staff covered by AWAs are set out in Appendix 1.
Performance pay
The Performance Achievement System is designed to align each individual employee's results,
behaviour and development with the organisational and team objectives critical to the achievement of
CRS Australia's goals. A three-point rating scale is used, and only those staff who achieve the top rating
are eligible for performance pay.
The performance bonuses paid in 2006-07 for performance during the 2005-06 financial year are set out
in Table 12.
Learning and development
In 2006-07, learning and development activities focused on strengthening CRS Australia's effectiveness
and on training staff to meet the DEWR MOU requirements.
Table 12 CRS Australia—performance pay for 2005-06
Level
Staff eligible
Staff paid
Amount paid ($)
Average ($)
SES
4
3
28,079
9,360
EL 2
15
7
33,247
4,750
EL 1
120
39
126,013
3,231
APS levels 1-6
1,826
553
936,782
1,694
Total
1,965
602
1,124,121
1,867
APS = Australian Public Service; EL = Executive Level; SES = Senior Executive Service
New practice resources were developed, based on internal and international best practice, focusing on
the nature of welfare reform and the increasing complexity of job seekers' needs. Staff completed
extensive learning and development activities in the areas of expert assessments, employment
strategies and ensuring compliance with purchaser requirements. Other priorities included developing
facilitation and coaching skills for rehabilitation consultants and building Administrative Service Officer
capability.
Human resource capabilities were also built through participation in projects and committees with other
Human Services agencies, professional conferences and seminars, training with the Australian Human
Resource Institute and the Australian Public Service Commission (APSC), and participation in other
human resources professional development programmes.
In total, 879 staff (34 per cent) benefited from internal learning and development activities and computerbased training for staff learning to use the new DEWR vocational rehabilitation modules.
Evaluations of the effectiveness of training, including post-course feedback from participants, feedback
from managers and surveys, inform the ongoing development and improvement of courses.
Workplace diversity
In 2006-07, CRS Australia developed its Workplace Diversity Plan 2007-10. The plan was developed
with input from staff and stakeholders. CRS Australia recognises that having a talented and diverse
workforce is a key competitive advantage and critical to meeting the needs of the community in which
the organisation operates. The objectives of the plan are to provide a culture where diversity is valued
and to encourage people from diverse backgrounds to work in CRS Australia.
CRS Australia continued to participate in the DHS Indigenous Employment Taskforce, which oversaw
the development of both the CRS Australia Indigenous Employment Strategy and the CRS Australia
Reconciliation Plan. These plans can be accessed online at www.crsaustralia.gov.au. CRS Australia's
strategies aimed at increasing its proportion of Indigenous employees included participation in the APSC
Indigenous graduate, cadet and traineeship programmes, and support mechanisms to improve retention
of the Indigenous Australians already employed. CRS Australia recruited four Indigenous cadets who
are studying to be allied health professionals.
Under the auspices of the taskforce, Indigenous employees attended conferences, and cross-cultural
awareness training was delivered to many staff. CRS Australia participated in special Indigenous
employment events and took part in advertisements promoting the Human Services Portfolio as an
employer of choice for Indigenous Australians.
Resources
Financial management
CRS Australia continued to show a strong financial performance in 2006-07. Over the year this enabled
growth in delivery of services, investment in additional staff and implementation of improved
infrastructure.
CRS Australia is now in full compliance with the Australian Equivalents to International Financial
Reporting Standards, and both its 2006-07 closing balances and its 2005-06 comparatives were
calculated on this basis.
CRS Australia continued to adhere to its systematic internal budgeting and reporting framework. Each
manager received timely management information on financial performance. In 2006-07, CRS Australia
developed a forecasting tool for all cost centres that will help the organisation to manage its financial
performance more effectively.
CRS Australia processed more than 50,000 invoices, worth more than $60 million, in 2006-07. These
invoices were handled by a centralised accounts processing area with the assistance of a distributed
administrative and financial officer network. High standards for the timely payment of vendors, including
small businesses, were maintained, with more than 99 per cent of payments being made within 30 days.
CRS Australia achieved this by ensuring sound working relationships with business partners.
Consultants and services contractors
During 2006-07, CRS Australia entered into 14 new consultancy contracts to the value of $10,000 or
more, involving total actual expenditure of $395,000. In addition, 13 ongoing consultancy contracts were
active during the year. Total actual expenditure on all consultancies was $938,000.
Consultants were engaged to provide specialist services where skills were not available in-house or
where an independent and impartial view from outside CRS Australia was required.
Detailed information on consultancy contracts is provided in Appendix 4.
Information on expenditure on contracts and consultancies is also available on the AusTender website,
www.tenders.gov.au
Office accommodation
CRS Australia's national service delivery network consists of 177 permanent offices, with over 40 per
cent of sites located in rural and remote Australia. Business support operations take place within the
national office in Canberra and divisional offices in Sydney, Melbourne, Brisbane, Perth and Adelaide.
CRS Australia seeks to locate service delivery outlets conveniently for clients, close to Centrelink offices,
transport systems and other community facilities.
There were 12 moves and three major refits during 2006-07. Two new offices were opened, in
Marrickville, New South Wales, and Northbridge, Western Australia. Twelve existing offices were
relocated, in most cases with expanded capability, within the communities they serve. Partial refits were
undertaken at a further five existing offices to improve facilities and enhance service delivery
capabilities.
Purchasing
CRS Australia complied with the Commonwealth Procurement Guidelines and DHS Procurement
Guidelines in developing and implementing purchasing decisions during 2006-07.
Asset management
CRS Australia's asset management decisions in 2006-07 were driven by business requirements and
took life-cycle costs, benefits and risks into consideration.
Table 13 CRS Australia fixed assets at 30 June 2007
Write-down ($)
Write-up or offset
previous reserve ($)
Net effect ($)
Personal computers
844,105
14,862
829,243
Office equipment
42,014
-11,806
53,820
General equipment
26,177
-19,287
45,464
Other computer equipment
553,879
52,132
501,747
Leasehold improvement
493,935
1,492,171
-998,236
Furniture and fittings
36,329
-24,975
61,304
1,996,439
1,503,097
493,342
Asset class
Total
A stocktake of assets, which confirmed the location and the condition of each asset, was undertaken in
March 2007. All asset holdings are reviewed annually to ensure cost-effectiveness and whole-of-life
utilisation. Depreciation/amortisation rates are also reviewed annually and necessary adjustments are
recognised in current and future reporting periods.
In November 2006, a revaluation of all fixed assets, excluding land and buildings, was completed. The
approach was to allow for the reinstatement of an asset on the basis of an estimated retail cost
excluding GST and any allowance for discounts. The revaluation was carried out on a single asset basis
(that is, not by asset class). The results are summarised in Table 13. The accounting impact of the
variations is detailed in the Financial Statements in this annual report.
Knowledge management
CRS Australia's knowledge management strategies in 2006-07 included:

the quality assurance and improvement programme, which integrates 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 provides access to policy, practices and procedures, and supports
discussion groups and chat rooms;

an organisational library, which supports case management, organisational research, and the
communities of practice;

an active programme of research, evaluation and innovation;

learning and development and coaching strategies;

the eight Networks of Excellence (Communities of Practice);

the Business Warehouse initiative, which integrates CRS Australia's data systems to provide more
accessible management information; and

a project with the National Archives of Australia to develop and implement a record-keeping system.
Purchaser-provider arrangements
In 2006-07, CRS Australia had significant purchaser-provider arrangements in place with the Australian
Government departments of Employment and Workplace Relations; Families, Community Services and
Indigenous Affairs; Human Services; Education, Science and Training; and Veterans' Affairs.
Further performance information for CRS Australia is reported in the annual reports of those
departments.
Outlook
Service delivery
There will be some refinements to CRS Australia's MOU with DEWR in 2007-08. Changes in the mix of
job seekers referred to CRS Australia are also expected to occur, when new participation requirements
are introduced for recipients of parenting payments.
Strategies responding to feedback received in 2006-07 will be implemented with the aim of ensuring that
CRS Australia remains relevant in the broader market, delivers on its promises, and grows and
diversifies its revenue base.
CRS Australia's Service Charter will be reviewed in 2007-08 to ensure that it continues to meet the
needs of service recipients and applies better practice.
CRS Australia will continue to work with communities, employers and job seekers to achieve mutually
beneficial and sustainable outcomes.
Staff
In 2007-08, CRS Australia will implement human resource management and development strategies
drawing on internal and external evidence of best practice. These strategies are directed towards
ensuring CRS Australia is successful, sustainable and profitable by:

acknowledging that people are at the heart of CRS Australia's activities, and their engagement and
development are key to CRS Australia, success and cannot be compromised;

recognising that CRS Australia's success depends on its ability to identify and respond to influences
that shape the way work is done; and

continuing to encourage and support social and environmental responsibility.
The implementation of the Employee Self Services programme in the new financial year will provide
automated processing of leave and personal details for staff, improving staff access to payroll services.
Risk management
To position the organisation for a strong and sustainable future in an increasingly commercial
environment, CRS Australia will also implement strategies to manage risks and enhance its demand
management and financial management capabilities.
Financial Statements
APPENDICES
Appendix 1 Staffing statistics
This appendix provides statistics on staff, including numbers, gender, locations and salaries, as
stipulated in the Requirements for annual reports for departments, executive agencies and FMA Act
bodies.
Core Department
Tables A1.1 to A1.3 contain summary information on the Core Department's actual staffing, not including
seconded staff. All staff of the Core Department were employed in the Australian Capital Territory.
All ongoing and non-ongoing staff of the Core Department are covered by Australian Workplace
Agreements.
Table A1.1 Core Department—staff employed, by classification, gender and employment status, at 30
June 2007
Female
Part-time
Male
Full-time
Part-time
Full-time
Total
Secretary
1
1
Senior Executive Service
Band 3
1
1
2
Senior Executive Service
Band 2
4
5
9
Senior Executive Service
Band 1
11
11
22
28
66
Executive Level 2
1
36
1
Executive Level 1
3
28
21
52
Australian Public Service
Level 6
3
15
9
27
Female
Male
Part-time
Full-time
1
12
Australian Public Service
Level 5
Australian Public Service
Level 4
13
Australian Public Service
Level 3
3
Total
8
Part-time
1
Full-time
Total
4
17
3
17
3
124
2
82
216
Table A1.2 Core Department—non-ongoing staff employed, by classification, gender and employment
status, at 30 June 2007
Female
Part-time
Senior Executive Service
Band 1
Male
Full-time
Part-time
1
1
Australian Public Service
Level 6
Total
1
1
1
2
Australian Public Service
Level 4
2
Total
1
Executive Level 1
Australian Public Service
Level 5
Full-time
1
3
6
2
8
8
4
14
Table A1.3 Core Department—standard salary ranges at 30 June 2007
Minimum ($)
Maximum ($)
Senior Executive Service Band 2 and
Band 3
135,200
194,688
Senior Executive Service Band 1
108,160
129,424
Executive Level 2
93,342
106,429
Minimum ($)
Maximum ($)
Executive Level 1
77,226
88,475
Australian Public Service Level 6
62,408
72,035
Australian Public Service Level 5
56,351
59,812
Australian Public Service Level 4
50,727
54,080
Australian Public Service Level 3
45,103
48,456
Notes: Median figures are not provided as they would allow the remuneration of individuals to be
identified.
Child Support Agency
Tables A1.4 to A1.8 contain summary information about the Child Support Agency's actual staffing.
Table A1.4 CSA—staff employed, by location, gender and employment status, at 30 June 2007
Female
Location
Full-time
SES Band 3
National
office
SES Band 2
National
office
3
SES Band 1
National
office
7
NSW/ACT
1
Executive
Level 2
Male
Part-time
Full-time
Part-time
Total
1
1
2
5
8
16
1
2
Qld
1
1
Vic./Tas.
2
2
WA
1
National
office
35
NSW/ACT
Qld.
1
1
4
32
71
6
3
9
2
4
1
7
Female
Location
Full-time
Male
Part-time
SA/NT
Executive
Level 1
APS 6
APS 5
Vic./Tas
5
WA
1
Full-time
Part-time
Total
1
1
4
9
1
National
office
110
14
76
NSW/ACT
29
3
6
38
Qld.
9
3
12
25
SA/NT
7
1
1
9
Vic./Tas
17
4
12
33
WA
12
1
6
19
National
office
86
20
42
NSW/ACT
92
14
24
Qld.
69
8
24
SA/NT
22
2
8
32
Vic./Tas
79
14
34
127
WA
27
4
16
47
National
office
55
3
20
1
79
NSW/ACT
80
24
37
1
142
Qld.
65
12
22
2
101
SA/NT
33
3
8
Vic./Tas
74
15
28
1
118
WA
36
11
10
1
58
2
1
202
149
130
1
102
44
Female
Location
APS 4
APS 3
APS 2
APS 1
Male
Full-time
Part-time
Full-time
National
office
34
3
16
NSW/ACT
176
74
50
4
304
Qld.
116
27
45
3
191
SA/NT
29
6
11
Vic./Tas
163
54
57
10
284
WA
37
20
19
2
78
National
office
15
NSW/ACT
264
72
94
6
436
Qld.
191
28
66
3
288
SA/NT
85
9
37
Vic./Tas
217
61
117
6
401
WA
91
13
36
2
142
NSW/ACT
4
4
6
Qld.
7
5
6
SA/NT
3
2
2
7
Vic./Tas
4
3
7
14
WA
1
1
2
46
18
131
14
1
1
19
5
0
1
1
Qld.
SA/NT
Total
53
3
National
office
NSW/ACT
Part-time
0
1
1
Female
Location
Full-time
Male
Part-time
Vic./Tas
Total
4
1
1
National
office
1
1
Qld
3
3
Vic./Tas.
APS Cadet
Part-time
4
WA
APS Trainee
Full-time
1
1
1
2
NSW/ACT
1
Qld
1
1
Vic./Tas.
1
1
Total
2,408
545
1,025
50
4,028
APS = Australian Public Service Level, EL = Executive Level, SES = Senior Executive Service Band
Table A1.5 CSA—Actual non-ongoing staff employed, by classification, gender and location, at 30 June
2007
Female
Part-time
Male
Classification
Region
Full-time
Part-time
Full-time
Total
SES Band 1
National
office
Executive
Level 2
National
office
1
Executive
Level 1
National
office
9
2
6
1
18
APS 6
National
office
3
2
2
2
9
APS 5
National
office
6
1
3
Vic. /Tas.
1
1
1
2
3
10
1
Female
Male
Classification
Region
Part-time
APS 4
National
office
6
1
7
APS 3
National
office
5
3
8
Qld
3
2
5
Vic. /Tas.
5
1
6
WA
12
2
14
Vic. /Tas.
10
1
3
14
WA
7
1
2
10
National
office
1
2
3
APS 2
APS 1
Grand Total
69
Full-time
Part-time
7
30
Full-time
Total
3
109
APS = Australian Public Service Level, EL = Executive Level, SES = Senior Executive Service Band
Table A1.6 CSA—staff employed under Australian Workplace Agreements and certified agreement at
30 June 2007
Australian Workplace
Agreement
Certified agreement
Senior Executive Service
19
0
Non-Senior Executive Service
261
3,857
Total
280
3,857
Table A1.7 CSA—certified agreement salary ranges at 30 June 2007
Minimum ($)
Maximum ($)
Executive Level 2a
84,572
84,572
Executive Level 1
74,909
80,890
APS Level 6/CSO Level 6
59,888
67,125
Minimum ($)
Maximum ($)
APS Level 5/CSO Level 5
54,102
57,995
APS Level 4/CSO Level 4
48,508
53,253
APS Level 3/CSO Level 3
43,521
46,972
Graduate APS
43,521
43,521
APS Level 2/CSO Level 2
39,260
42,373
APS Level 1/CSO Level 1
34,897
37,475
APS = Australian Public Service, CSO = Customer Service Officer
a Temporary performance—the certified agreement applies to classifications up to EL1; permanent
EL2s are covered by individual AWAs.
Table A1.8 CSA—Australian Workplace Agreement salary ranges at 30 June 2007
Minimum ($)
Maximum ($)
Senior Executive Service Band 2 and
Band 3
140,000
200,000
Senior Executive Service Band 1
115,000
135,000
Executive Level 2
92,986
111,051
Executive Level 1
78,655
89,114
Note: A remuneration band does not apply to employees on Indigenous Cadet Australian Workplace
Agreements. Remuneration consists of an annual allowance and pro rata salary depending on the length
of the work placement.
CRS Australia
Tables A1.9 to A1.15 contain summary information on CRS Australia's actual staffing. They are not
directly comparable to the corresponding tables in the Annual Report 2005-06, which recorded
substantive staffing figures.
Table A1.9 CRS Australia—ongoing staff employed, by gender and employment status, at 30 June 2007
Female
Senior Executive Service
Band 2a
Male
Part-time
Full-time
Part-time
Full-time
Total
0
1
0
1
2
Female
Male
Part-time
Full-time
Part-time
Full-time
Total
Senior Executive Service
Band 1
0
1
0
1
2
Executive Level 2A
0
0
0
2
2
Executive Level 2B
1
6
0
10
17
Executive Level 1
15
56
0
49
120
Rehabilitation Consultant
Level 2
432
450
24
102
1,008
Rehabilitation Consultant
Level 1
24
83
1
14
122
Australian Public Service
Level 6
7
24
1
21
53
Australian Public Service
Level 5
24
34
5
31
94
Australian Public Service
Level 4
25
56
2
20
103
Australian Public Service
Level 3
29
69
0
7
105
Australian Public Service
Level 2
72
79
1
4
156
Australian Public Service
Level 1
3
5
0
1
9
Australian Public Service
Cadet
0
4
0
0
4
632
868
34
263
1,797
Total
Note: Totals include 37.06 per cent part-time staff.
a SES Band 2 nominal occupant on leave at 30 June 2007.
Table A1.10 CRS Australia—-ongoing staff employed, by location and employment status, at 30 June
2007
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
2
0
0
SES 1
0
0
0
0
0
0
0
0
0
0
0
0
0
2
0
0
EL 2A
0
0
0
1
0
0
0
0
0
0
0
0
0
1
0
0
EL 2B
0
5
1
4
0
3
0
1
0
2
0
0
0
1
0
0
EL 1
2
26
4
20
3
28
2
6
2
10
0
3
2
10
0
2
RC 2
160 197 120
94
75
115
39
51
40
59
13
15
6
10
3
11
RC 1
10
28
3
11
4
16
3
14
5
21
0
5
0
0
0
2
APS 6
0
6
1
6
4
20
1
1
0
3
0
0
2
9
0
0
APS 5
13
14
5
22
3
8
3
6
2
2
2
4
1
7
0
2
APS 4
13
14
2
12
6
25
3
6
1
7
0
3
2
8
0
1
APS 3
16
21
10
18
2
20
0
2
0
5
0
0
1
8
0
2
APS 2
38
27
9
14
8
16
8
9
4
14
5
3
0
0
1
0
APS 1
0
2
1
2
1
1
1
0
0
1
0
0
0
0
0
0
APS
Cadet
0
0
0
0
0
2
0
1
0
1
0
0
0
0
0
0
60
97
54
125
20
33
14
58
4
20
Total
252 340 156 204 106 254
APS = Australian Public Service Level, EL = Executive Level FT = full-time, PT = part-time, RC =
Rehabilitation Consultant Level, SES = Senior Executive Service Band
Table A1.11 CRS Australia—non-ongoing staff employed, by gender and employment status, at 30
June 2007
Female
Male
Part-time
Full-time
Part-time
Full-time
Total
Executive Level 1
0
0
1
1
2
Rehabilitation Consultant
Level 2
35
24
2
7
68
Rehabilitation Consultant
Level 1
11
45
1
11
68
Australian Public Service
Level 6
1
1
0
0
2
Australian Public Service
Level 5
5
3
2
3
13
Australian Public Service
Level 4
5
9
2
6
22
Australian Public Service
Level 3
11
17
0
2
30
Australian Public Service
Level 2
35
24
2
4
65
Australian Public Service
Level 1
12
7
1
1
21
Total
115
130
11
35
291
Note: Totals include 43.30 per cent part-time and irregular/intermittent staff
Table A1.12 CRS Australia—non-ongoing staff employed, by location and employment status, at 30
June 2007
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 1
0
0
0
1
0
0
0
0
1
0
0
0
0
0
0
0
RC 2
13
7
11
12
8
7
2
2
1
1
1
1
1
0
0
1
RC 1
1
17
6
10
1
15
3
5
0
2
0
3
0
0
1
4
APS 6
1
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
APS 5
2
3
3
1
0
1
2
1
0
0
0
0
0
0
0
0
APS 4
5
4
0
1
1
7
0
0
0
1
0
0
1
2
0
0
APS 3
2
5
3
3
4
7
0
1
1
3
0
0
1
0
0
0
APS 2
8
8
12
5
8
6
0
2
7
4
0
2
1
1
1
0
APS 1
5
5
1
0
2
2
4
1
1
0
0
0
0
0
0
0
APS
Cadet
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
37
49
36
34
24
45
11
12
11
11
1
6
4
3
2
5
APS = Australian Public Service Level, EL = Executive Level, FT = full-time, PT = part-time, RC =
Rehabilitation Consultant Level
Table A1.13 CRS Australia—certified agreement salary ranges at 30 June 2007
Minimum ($)
Maximum ($)
Executive Level 2A
$99,917
$99,917
Executive Level 2B
$83,696
$96,627
Executive Level 1
$72,414
$79,933
Rehabilitation Consultant Level 2
$57,165
$68,925
Rehabilitation Consultant Level 1
$43,522
$56,661
Australian Public Service Level 6
$57,165
$66,274
Australian Public Service Level 5
$52,450
$56,661
Minimum ($)
Maximum ($)
Australian Public Service Level 4
$47,119
$52,108
Australian Public Service Level 3
$42,283
$46,416
Australian Public Service Level 2
$37,075
$41,864
Australian Public Service Level 1
$32,860
$36,804
Table A1.14 CRS Australia—staff employed under Australian Workplace Agreements and certified
agreement at 30 June 2007
Australian Workplace
Agreements
Certified agreement
Senior Executive Service
4
0
Executive Level 2
18
1
Executive Level 1
74
48
Australian Public Service levels 1-6
15
1,928
Table A1.15 CRS Australia—Australian Workplace Agreement salary ranges at 30 June 2007
Minimum ($)
Maximum ($)
SES Band 1 and Band 2
$108,160
$158,000
Executive Level 2A
$97,957
$100,887
Executive Level 2B
$83,696
$100,000
Executive Level 1
$70,304
$80,793
Rehabilitation Consultant Level 2
$57,165
$73,655
Rehabilitation Consultant Level 1
$43,522
$56,661
Australian Public Service Level 6
$57,165
$70,000
Australian Public Service Level 5
$52,450
$57,211
Australian Public Service Level 4
$47,119
$56,661
Australian Public Service Level 3
$42,283
$46,416
Minimum ($)
Maximum ($)
Australian Public Service Level 2
$37,075
$41,864
Australian Public Service Level 1
$32,860
$36,804
Appendix 2 Freedom of information
Section 8 of the Freedom of Information Act 1982 (the FOI Act) requires each Australian Government
department or agency to publish a statement setting out its roles, structure and functions, its
arrangements for persons outside the organisation to participate in policy making or implementation, the
documents it has available for public inspection, and the procedures for gaining access to those
documents. This appendix, in conjunction with information in the body of the annual report, meets those
requirements.
Annual statistics on the handling of freedom of information (FOI) requests by Australian Government
departments and agencies are reported on the website of the Attorney- General's Department,
www.ag.gov.au.
Arrangements for outside participation
The Department of Human Services is open to the views of non-Australian Government organisations or
members of the community and provides opportunities to contribute to the development of policy and the
implementation of that policy. A non-Australian Government organisation or a person interested in
participating in the core Department's formulation of policy or development of programmes to implement
a policy should write to the Minister for Human Services or the Secretary of the Department of Human
Services.
Core Department
Procedures and contact points
Contact officers at the Core Department can advise on FOI matters and discuss the nature and scope of
an intended request.
A request to the core Department 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.
FOI inquiries relating to the Core Department may be addressed to:
FOI Contact Officer
Department of Human Services
PO Box 3959
Manuka ACT 2603
Phone: 1300 55 44 79
Fax: 02 6223 4499
Categories of documents
The Core Department holds:

internal administration papers and records;

ministerial, interdepartmental and general correspondence and papers;

policy documents, including recommendations and decisions;

requests for legal advice and copies or notes of advice given, and other legal documents;

papers relating to new and amending legislation, drafting instructions and draft legislation;

media releases;

copies of text of various public addresses;

briefing papers prepared for the Minister for Human Services;

records of Cabinet matters, including Cabinet submissions and Cabinet minutes;

records prepared for the Executive Council;

documents that relate to the Core Department's specific functions—for example, finance;

manuals, instructions and guidelines for staff;

reports relating to research and investigations; and

tender documents.
Child Support Agency
Procedures and contact points
A request to CSA 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 personal information, CSA follows informal
guidelines that eliminate the need for a formal FOI application in most cases.
General FOI information for the Child Support Agency (CSA) is available from the website at
www.csa.gov.au or from any CSA office or regional service centre.
Contact details for CSA offices and regional service centres can be accessed from the website or by
telephoning 131 272. FOI enquiries and application relating to CSA may be addressed to:
Victoria & Tasmania
FOI Contact Officer
Child Support Agency
GPO Box 9815
Melbourne VIC 3001
Phone: 03 9659 5188
Fax: 03 9659 5854
Queensland
FOI Contact Officer
Child Support Agency
PO Box 9815
Brisbane QLD 4001
Phone: 07 3001 4151
Phone: 07 3001 4160
Fax: 07 3001 4391
Western Australia
FOI Contact Officer
Child Support Agency
PO Box 9815
Perth WA 6848
Phone: 08 9338 2584
Fax: 08 9338 2899
New South Wales & Australian Capital Territory
FOI Contact Officer
Child Support Agency
PO Box 474
Newcastle NSW 2300
Phone: 02 4908 7561
Fax: 02 4908 7873
South Australia & Northern Territory
FOI Contact Officer
Child Support Agency
PO Box 9815
Adelaide SA 5001
Phone: 08 8112 1876
Fax: 08 81 12 1854
Categories of documents
CSA holds:

ministerial, interdepartmental and general correspondence;

CSA legislation and policy documents and procedural instructions;

proposals for legislation, drafting instructions and draft legislation;

copies of instruments of delegation or authorisation given to, or by, the Child Support Registrar and
regional registrars;

transcripts of proceedings before courts and tribunals;

financial reports, expenditure estimates and expenditure reports;

statistical reports detailing the number of child support cases, assessments issued and amounts
collected;

accounting records;

speeches by senior agency officers, media releases and press clippings; and

the CSA business plan.
Public access to documents
CSA makes child support forms, brochures and booklets freely available to the public. Free copies of
policy guidelines, procedural instructions, rulings and determinations are also available. Many of these
documents are available at www.csa.gov.au.
CRS Australia
Procedures and contact points
A 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.
To enable a prompt response, the applicant should provide as much information as possible about the
documents they are seeking. It is also advisable for the applicant to 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.
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 relevant rehabilitation consultant.
Information sheets outlining the FOI application process and the general release 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, whose contact details
are below.
Formal requests for access should be sent to:
The FOI Coordinator
CRS Australia
PO Box 2691
Sydney NSW 2001
Phone: 02 9242 4852
Fax: 02 9242 4855
Categories of documents
CRS Australia holds:

briefs, submissions and reports;

administration documents from areas such as human resources, finance, property management and
resource management;

documents relating to the provision of CRS Australia rehabilitation services, individual case files and
papers;

separate records of management meetings, such as agendas and minutes;

general correspondence and associated categories of documents according to subject matter;

documents, maintained separately, which relate to specific functions;

ministerial, interdepartmental and general correspondence;

internal administration papers;

CRS Australia policy documents;

copies of instruments of delegation;

requests for legal advice and copies of notes and advice given;

briefing papers prepared for ministers, and answers to parliamentary questions;

training materials;

FOI request files and papers relevant to the consideration of those requests; and

financial reports, expenditure estimates and expenditure reports.
Public access to documents
CRS Australia makes brochures and pamphlets freely available to the public. Free copies of the service
charter, code of conduct and the mental health and acquired brain injury kits are also available.
Many of these documents are available at www.crsaustralia.gov.au
Appendix 3 Advertising and market research
Section 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 all 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. For the 2006-07 financial year, particulars of payments of value less than $10,300
(inclusive of GST) are not required. This appendix meets those requirements.
Table A3.1 Core Department—payments for advertising and market research
Advertising agencies
Payee
Purpose
Amount
Eardrum
To provide radio advertising services for the drought
assistance campaign and Access Card campaign
$86,787
George Patterson Y&R
To provide creative advertising services for the drought
assistance campaign and Access Card campaign
$764,003
Grey Worldwide Pty
Ltd
To purchase creative advertising services for the Medicare
Easyclaim campaign
$327,533
Universal McCann
To purchase advertising space for the drought assistance
campaign and Access Card campaign
$4,037,992
Market research organisations
Payee
Purpose
Amount
Blue Moon Research
and Planning Pty Ltd
To undertake market research for the Medicare Easyclaim
campaign
$578,503
Open Mind Research
Group
To undertake market research for the drought assistance
campaign
$325,990
Orima Research
To undertake market research for the Access Card
campaign
$1,076,399
Payee
Purpose
Amount
Nil
Nil
Nil
Polling organisations
Direct mail organisations
Payee
Purpose
Amount
Solutions Marketing
and Research Pty Ltd
To conduct direct mail for the drought assistance campaign
$143,200
Media advertising organisations
Payee
Purpose
Amount
hma Blaze
To provide employment and tender advertising
$291,313
Table A3.2 CSA—payments for advertising and market research
Advertising agencies
Payee
Purpose
Amount
Universal McCann
To communicate phase 1 of the Child Support Scheme
reforms
$3,260,687
Market research organisations
Payee
Purpose
Amount
Blue Moon Research
and Planning
To conduct a market evaluation of an additional publication
in the Me and My series of support booklets
$20,727
Chat Link and
Associates
To conduct a professionalism survey
$39,550
Client Wise Pty Ltd
To provide monthly and quarterly Clients Having a Say
reports
$69,520
Colmar Brunton Social
Research Australia
To conduct research to gain feedback on the proposed
changes to CSAonline
$55,200
Hitwise
To analyse customer internet behaviour
$90,000
mediascape
To conduct a 12-month tracking study to evaluate media
response to CSA initiatives, legislation reforms and new
service delivery arrangements
$60,000
Millward Brown
Voice Box recording (quarterly analysis)
$30,909
Open Mind Research
Group
To evaluate the Child Support Scheme reforms
communication campaign
$166,486
Open Mind Research
Group
To evaluate and make recommendations for the
development of new products for teenagers from separated
families
$50,000
The Value Creation
Group
To evaluate customer preferences for service delivery
$158,556
Payee
Purpose
Amount
Nil
Nil
Nil
Polling organisations
Direct mail organisations
Payee
Purpose
Amount
Rothfield Print
Management
To provide storage, distribution and printing services for
CSA bulk publications (including management of the CSA
1800 call centre service and CSA Webmaster order
service)
$885,000
Salmat
To manage document distribution (including CSA
customers' monthly statements)
$2,482,238
Media advertising organisations
Payee
Purpose
Amount
Google
To provide links to CSAonline website (three-month trial)
$30,000
hma Blaze
To place recruitment advertising (national and regional)
$1,176,909
hma Blaze
To place non-campaign, non-recruitment advertising
$277,000
Telstra White Pages
To place advertising in the 2007 White Pages directory
(capital cities, regional directories and Telstra White Pages
online)
$448,835
Table A3.3 CRS Australia—payments for advertising and market research
Advertising agencies
Payee
Purpose
Amount
Nil
Nil
Nil
Market research organisations
Payee
Purpose
Amount
Fenton
Communications
To develop, design and market test publications targeted to
employers
$21,800
Fenton
Communications
To research, assess and make recommendations on how
to improve CRS Australia's communications, particularly
publications
$30,500
Market Solutions
To conduct a stakeholder survey
$86,557
Payee
Purpose
Amount
Nil
Nil
Nil
Polling organisations
Direct mail organisations
Payee
Purpose
Amount
Nil
Nil
Nil
Media advertising organisations
Payee
Purpose
Amount
hma Blaze
To place recruitment advertising
$244,879
Australian Public
Service Commission
To place recruitment advertising in the Australian Public
Service Gazette
$21,564
Seek
To place recruitment advertising on www.seek.com.au
$18,750
hma Blaze
To place non-campaign, non-recruitment advertising in
newspapers
$14,462
Sensis
To place advertising in local, regional and metropolitan
Yellow Pages directories
$95,312
Telstra
To place advertising in White Pages directories
$70,451
Appendix 4 Use of consultants and service contractors
Under the Financial Management and Accountability Act 1997, Australian Government departments and
agencies are required to describe their policies for the selection and engagement of consultants, and to
publish details of all contracts let during the reporting year to the value of $10,000 or more in their
annual reports. This appendix, in conjunction with information in the body of the annual report, meets
those requirements.
Principles
The Portfolio Department of Human Services (DHS) follows the Commonwealth Procurement Guidelines
and adheres 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; and

making decisions in an accountable and transparent manner.

The use of consultants by DHS also reflects the department-wide principles of:

alignment with government strategic direction;

innovation;

consultation with Human Services agencies to capitalise on purchasing; and

access by the Core Department and Human Services agencies to each other's contracts, where
appropriate.
Selection processes
The tables in this appendix note the selection process used for each contract in 2006-07. The
Commonwealth Procurement Guidelines 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 sought
from the marketplace using national and major metropolitan newspaper advertising and 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. Tenders are invited from a short list of competent suppliers;

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; and

panel—an arrangement under which a number of suppliers, usually selected through a single
procurement process, may supply property or services to an agency as specified in the panel
arrangements.
The following tables detail the use of consultancy service contracts by the Core Department, the Child
Support Agency (CSA) and CRS Australia in 2006-07.
Table A4.1 Core Department—summary of consultancy services contracts, 2005-06 and 2006-07
2005-06
2006-07
21
43
$3,271,449
$26,738,435
1
3
Total actual expenditure on ongoing contracts
$52,800
$87,905
Number of contracts exempt from AusTender
Nil
Nil
Number of new contracts let
Total actual expenditure on new contracts
Number of active ongoing contracts
Note: Expenditure totals include GST and have been rounded to the nearest dollar.
Table A4.2 Core Department—consultancy services to the value of $10,000 or more let during 2006-07
Consultant
Name
Description
Pricea
Process
Reasonb
Acumen
Alliance
Review and develop overarching DHS
risk, security, governance and
information, communications and
technology policies
$62,370
Panel
C
Acumen
Alliance
Provide specialist procurement and
tender services advice for the Office of
Access Card
$1,056,918
Select
B
Acumen
Alliance
Provide assistance in a benchmarking
review
$80,000
Panel
C
Australian
Government
Solicitor
Provide legal services
$16,500
Panel
B
Australian
Government
Solicitor
Provide legal advice on establishing a
secure customer registration system for
the Access Card
$45,863
Panel
B
Australian
Government
Solicitor
Provide probity advice relating to
interacting with industry providers and the
Medicare Easyclaim project
$115,000
Panel
B
Australian
Government
Solicitor
Provide legal advice in contract
negotiations with Lead Advisor and
advice to the Office of Access Card
$41,446
Select
B
Consultant
Name
Description
Pricea
Process
Reasonb
Australian
Government
Solicitor
Provide probity advice relating to
procurement activity for the Access Card
programme
$682,000
Panel
B
Australian
Government
Solicitor
Provide legal advice
$682,000
Panel
B
Booz Allen
Hamilton
Provide expert advice on banking and
payment system issues related to
procuring services from industry
providers
$120,000
Open
B
Booz Allen
Hamilton
Provide lead adviser services specific to
the health and social services Access
Card
$2,000,000
Open
B
Booz Allen
Hamilton
Provide a lead technical adviser to the
Office of Access Card
$4,300,000
Open
B
Booz Allen
Hamilton
Provide lead adviser services specific to
the Office of Access Card
$5,035,966
Open
B
Booz Allen
Hamilton
Provide lead adviser services specific to
the health and social services Access
Card
$6,291,980
Open
B
Booz Allen
Hamilton
Provide lead adviser services specific to
the health and social services Access
Card
$7,247,000
Open
B
Clayton Utz
Provide legal services for the Medicare
Easyclaim project
$491,000
Panel
B
EDS
(Australia)
Pty Ltd
Review administrative activities in DHS
$60,000
Panel
C
Holocentric
Pty Ltd
Provide services for the development of
business modelling
$211,000
Direct
A
Hope
Reviews Pty
Ltd
Review the development of the search
and seizure budget proposal
$17,600
Direct
C
Consultant
Name
Description
Pricea
Process
Reasonb
KPMG
Provide programme monitoring and
assurance services specific to the health
and social services Access Card
$32,677.70
Open
B
KPMG
Provide programme monitoring and
assurance services specific to the health
and social services Access Card
$48,950
Open
B
KPMG
Provide programme monitoring and
assurance services specific to the health
and social services Access Card
$250,000
Open
B
KPMG
Provide programme monitoring and
assurance services specific to the health
and social services Access Card
$431,750
Open
B
KPMG
Provide programme monitoring and
assurance services specific to the health
and social services Access Card
$656,700
Open
B
KPMG
Provide programme monitoring and
assurance services specific to the health
and social services Access Card
$681,450
Open
B
KPMG
Provide programme monitoring and
assurance services specific to the health
and social services Access Card
$844,580
Open
B
KPMG
Provide programme monitoring and
assurance services specific to the health
and social services Access Card
$1,254,000
Open
B
KPMG
Provision of specialist advice to OAC in
preparation for Senate inquiry
$42,240
Direct
B
McGrath
Nicol and
Partners
Review of fraud and compliance in
Centrelink
$116,600
Panel
C
Mike
Goldstein
Provide specialist consulting services for
the Office of Access Card
$74,250
Direct
B
Mike
Goldstein
Provide specialist consulting services for
the Office of Access Card
$48,400
Direct
B
Consultant
Name
Description
Pricea
Process
Reasonb
Mike
Goldstein
and
Associates
Pty Ltd
Provide specialist consultancy services
for the Office of Access Card
$79,200
Direct
B
Minter Ellison
Provide legal adviser services to the
Office of Access Card
$20,000
Open
B
Minter Ellison
Provide legal adviser services to the
Office of Access Card
$200,000
Open
B
Minter Ellison
Provide legal adviser services to the
Office of Access Card
$930,000
Open
B
Minter Ellison
Provide legal adviser services to the
Office of Access Card
$1,630,000
Open
B
Minter Ellison
Provide legal adviser services to the
Office of Access Card
$1,900,000
Open
B
Office of the
Provide privacy advice in relation to the
Privacy
health and social services Access Card
Commissione system
r
$1,650,000
Direct
B
Peter Ilyk
Provide legislation consultancy services
$78,000
Direct
B
Phillips Fox
Provide a legal officer
$31,878
Panel
B
Porter Novelli
Pty Ltd
Conduct communications and issues
management for the Office of Access
Card
$428,883.40 Select
B
Pricewater
House
Coopers
Provision of financial accounting services
for the Health Benefits, Veteran's and
Social Services Access Card
$49,500
Open
B
SMS
Consulting
Group Ltd
Provide consultancy services for the
flexible service delivery project
$142,575
Panel
B
a
Contract prices include GST
b
Justification for decision to use consultancy:
A—skills currently unavailable within agency
B—need for specialised or professional skills
C—need for independent research or assessment
Table A4.3 CSA—summary of consultancy services contracts, 2005-06 and 2006-07
2005-06
Number of new contracts let
2006-07
20
25
$1,847,816
$1,298,458
Number of active ongoing contracts
18
3
Total actual expenditure on ongoing
contracts
$3,152,273
$911,388
Nil
Nil
Total actual expenditure on new contracts
Number of contracts exempt from
AusTender
Note: Expenditure totals include GST and have been rounded to the nearest dollar.
Table A4.4 CSA—consultancy services to the value of $10,000 or more let during 2006–07
Consultant
Name
Description
Pricea
Process
Reasonb
Ascent
Consulting
Review nature and scope of the CSA
change agenda
$450,000
Panel
B
Ascent
Consulting Pty
Ltd
Provide an implementation plan for the
introduction of the Child Support
Scheme reforms
$77,760
Panel
B
Axiom
Associates Pty
Ltd
Develop a methodology for administered
provision for doubtful debts
$19,360
Direct
B
Changedrivers
Pty Ltd
Provide a research report of the
Australian employment market in the
medium term and identify issues for
recruitment and retention of CSA staff
$22,000
Panel
B
Convergence ebusiness
Solutions Pty Ltd
Provide assessment and advice services
regarding the Australian Government
authentication framework for CSAonline
$14,882
Panel
B
CPT Global Ltd
Conduct a data management and
corporate services analysis and review
$35,310
Panel
B
CPT Global Ltd
Develop an ICT infrastructure sourcing
strategy for CSA
$40,000
Panel
B
Consultant
Name
Description
Pricea
Process
Reasonb
Deloitte Touche
Tohmatsu
Conduct business process mapping
$26,840
Panel
B
Deloitte Touche
Tohmatsu
Provide business continuity
management services
$75,000
Panel
B
Deloitte Touche
Tohmatsu
Develop CSA business architecture with
service-oriented architecture principles
as part of an overall enterprise
architecture project
$80,000
Panel
B
Dominic Downie
and Associates
Review CSA human resources functions
$33,000
Direct
B
Gartner
Australasia Ltd
Provide a conceptual design and
implementation plan for an Australian
Taxation Office-CSA data link
$36,740
Panel
B
Informatica Pty
Ltd
Review and advise on PowerCentre
software implementation and utilisation
$13,717
Direct
B
PA Consulting
Services Pty Ltd
Clarify information and communications
technology technical parameters and
convene a workshop
$15,000
Panel
B
People and
Strategy
Review and redesign existing
performance management process
$75,000
Direct
B
Plaut IT Australia SAP Financial Management Information
Integration review
$50,010
Panel
B
Programming
Planning
Professionals
Pty Ltd (Pcubed
Australia)
Provide programme and portfolio
management capability
$49,500
Direct
B
SMS Consulting
Group Ltd
Provide advice on ICT Capability
Improvement Project
$106,920
Panel
B
SMS Consulting
Group Ltd
Establish an effective ICT engagement
model and implement a number of
strategies and planning
recommendations for the Capability
Improvement Project
$150,480
Panel
B
Consultant
Name
Description
Pricea
Process
Reasonb
The Open Mind
Research Group
Communicate the Child Support Scheme
reforms
$165,110
Direct
B
Three S
Holdings Pty Ltd
Review call authentication for CSA
$65,000
Direct
B
Yarrendale Pty
Ltd
Developing the Rewards and
Recognition implementation plan
$35,000
Direct
B
Yellow Edge
Provide independent advice on
corporate services positioning within
CSA
$21,000
Panel
B
Yellow Edge
Conduct a management review of CSA's
Western Australian office
$23,320
Panel
B
Yellow Edge
Review national office outposted
functions
$50,000
Panel
B
a
Contract prices include GST.
b
Justification for decision to use consultancy:
A—skills currently unavailable within agency
B—need for specialised or professional skills
C—need for independent research or assessment
Table A4.5 CRS Australia—summary of consultancy services contracts, 2004-05 to 2006-07
2004-05
2005-06
2006-07
10
9
15
$247,526
$236,410
$410,462
Number of active ongoing contracts
12
9
13
Total actual expenditure on ongoing
contracts
$725,248
$221,418
$528,019
Nil
Nil
Nil
Number of new contracts let
Total actual expenditure on new contracts
Number of contracts exempt from AusTender
Note: Expenditure totals include GST and have been rounded to the nearest dollar.
Table A4.6 CRS Australia—consultancy services to the value of $10,000 or more let during 2006-07
Consultant
name
Description
Pricea
Process
Reasonb
Aulich and Co
Pty Ltd
Conduct a privacy review
$21,890
Select
B
Candle Australia
Ltd
Provide project management advice for
the project preparation phase of the
Customer's Business
Warehousing/Employee Self Service
solution
$20,000
Select
B
Fenton Strategic
Communications
Pty Ltd
Develop, design and market test new
publications
$46,200
Select
C
Fenton Strategic
Communications
Pty Ltd
Audit and review communications
$47,124
Select
C
Gartner Australia
Pty Ltd
Provide research and advisory services
$49,280
Direct
B
Gibson QuaiAAS Pty Ltd
Provide mobility strategy consultancy
services
$42,526
Select
B
HBA Consulting
Provide an assessment and review of
salary levels
$20,000
Direct
B
iFocus Pty Ltd
Conduct an information architecture
review of the CRSNet
$79,464
Select
B
Key Energy and
Resources
Provide energy consultancy services
$27,225
Select
B
Market Solutions
Pty Ltd
Conduct the Stakeholder Survey 200607
$79,680
Select
C
SAP Australia
Pty Ltd
Provide development of SAP Smart
Forms and Web Dynpro Consultancy
developmental services
$11,220
Direct
B
Southern Cross
Computing Pty
Ltd
Provide a SAP business intelligence
consultant
$60,720
Select
B
Supply Chain
Consulting Pty
Ltd
Provide a human resources functional
consultant
$84,700
Select
A/B
Consultant
name
Description
Pricea
Process
Reasonb
Supply Chain
Consulting Pty
Ltd
Provide a SAP workflow consultant
$93,940
Direct
A
a
Contract prices include GST.
b
Justification for decision to use consultancy:
A—skills currently unavailable within agency
B—need for specialised or professional skills
C—need for independent research or assessment
Appendix 5 Commonwealth Disability Strategy
The 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 annually report on their performance in
implementing the strategy. This appendix meets that requirement.
In the following tables, performance in 2006-07 is reported against measures identified in the
Department of Families, Community Services and Indigenous Affairs guide to reporting against the
Commonwealth Disability Strategy.
The Core Department reports on its performance against the roles of policy adviser, purchaser and
employer. The Child Support Agency reports against their roles of policy adviser, purchaser, provider
and employer. CRS Australia reports against their roles of purchaser, provider and employer.
Table A5.1 Commonwealth Disability Strategy—policy adviser role
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
New or revised
programme/policy
proposals assess
the impact of the
proposals on the
lives of people
with disabilities
before a decision
is made
Percentage of
new or revised
policy/programme
proposals that
document that the
impact of the
proposal was
considered before
the decisionmaking stage
The Core
Department, in
consultation with
CSA and CRS
Australia as
appropriate,
assesses the
impact of new or
revised
programme/policy
proposals on the
lives of people
with disabilities
CSA, in
conjunction with
the Core Dept and
CRS Australia as
appropriate,
assesses the
impact of new or
revised
programme/policy
proposals on the
lives of people
with disabilities
Currently CSA
undertakes no
annual sampling
of the proposals it
develops
CRS Australia, in
conjunction with
CSA and the Core
Dept as
appropriate,
assesses the
impact of new or
revised
programme/policy
proposals on the
lives of people
with disabilities
Currently CRS
Australia
undertakes no
annual sampling
Measured by: an
annual sampling
of new or revised
policy/programme
proposals
developed by the
agency
Currently the Core
Department
undertakes no
annual sampling
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
of the proposals it
develops
People with
disabilities are
included in
consultations
about new or
revised
policy/programme
proposals
Percentage of
consultations
about new or
revised policy/
programme
proposals that are
developed in
consultation with
people with
disabilities
Measured by: an
annual sampling
of new or revised
policy/programme
proposals
developed by the
agency
Policy advisers
consult the
Human Services
agency
responsible for
delivering the
proposed policy
and, where
appropriate, also
consult
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
In developing and
revising policy for
the Job Capacity
Assessment
programme, the
Core Department
regularly seeks
input from, and
consults with, a
wide range of
representatives of
people with
disabilities, such
as the Human
Rights and Equal
Opportunity
Commission,
ACROD (National
Industry
Association for
CRS Australia
of the proposals it
develops
Policy advisers
consult the
Human Services
agency
responsible for
delivering the
proposed policy
and, where
appropriate, also
consult
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
DEWR, as primary
purchaser of CRS
Australia's
services,
undertakes
consultation with
disability
stakeholders on
policy and
programme issues
that CRS Australia
is subsequently
funded to deliver
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
Disability
Services) and the
National Disability
Advisory Council
Public
announcements of
new, revised or
proposed
policy/programme
initiatives are
available in
accessible formats
for people with
disabilities in a
timely manner
Percentage of
new, revised or
proposed
policy/programme
announcements
available in a
range of
accessible
formats. Time
taken in providing
announcements in
accessible formats
Measured by:
annual sampling
of the accessibility
of the mediums
used for new,
revised or
proposed policy/
programme
announcements
Policy
announcements
are available on
the website in
accessible formats
CSA provides
information to
customers online
via multiple
formats (HTML,
RTF and PDF) to
Job Capacity
improve
Assessment (JCA) accessibility. CSA
information is
ensures that web
available in
pages and PDF
accessible formats documents are
on the JCA
visible to screen
website
readers in an
appropriate
reading flow.
Policy
announcements
are available on
relevant websites
in accessible
formats
CSA also provides
media releases
online in HTML
format and
information on
major initiatives in
the three formats
above
Table A5.2 Commonwealth Disability Strategy—purchaser role
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
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:
Purchasing and
procurement
guidelines are
made available in
accessible formats
upon request
100 per cent of
these documents
are
Purchasing and
procurement
guidelines are
made available in
accessible formats
upon request

accessible
electronic
formats; and

accessible
formats other
than electronic
available in
electronic formats
and other
All requests for
accessible formats information (in
accessible
The time taken to
formats) are
provide
fulfilled within an
average time of 24
hours
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
Average time
taken to provide
accessible
material in:
these documents
has not been

electronic
formats; and
There were no
requests for

formats other
than electronic
documentation in
other formats
CRS Australia
routinely recorded
Measured by:
annual sample of
publicly available
specifications
developed during
the period
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 placed
had a direct
impact on people
with disabilities
No tenders placed
had a direct
impact on people
with disabilities
All contracts
include the
requirement that a
contractor must
meet all
requirements as
outlined in the
Disability
Discrimination Act
All tender
documents made
reference to
compliance with
relevant
Commonwealth
legislation,
including the
All tender
documents made
reference to
compliance with
relevant
Commonwealth
legislation,
including the
All tender
documents made
reference to
compliance with
relevant
Commonwealth
legislation,
including the
Measured by:
annual
assessment of
new purchasing
processes that
directly impact on
the lives of people
with disabilities,
developed by the
agency
Purchasing
specifications and
contract
requirements for
the purchase of
goods or services
are consistent with
the requirements
Percentage of
purchasing
specifications for
goods and
services that
specify that tender
organisations
must comply with
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
of the Disability
Discrimination Act
the Disability
Discrimination Act
Disability
Discrimination Act
Disability
Discrimination Act
Disability
Discrimination Act
Website material
complies with
Web Accessibility
Guidelines where
possible
Website material
complies with
Web Accessibility
Guidelines where
possible
Website material
complies with
Web Accessibility
Guidelines where
possible
Percentage of
contracts for the
purchase of goods
and services that
require the
contractor to
comply with the
Disability
Discrimination Act
Measured by:
annual sampling
of tenders for the
provision of goods
and services
required by the
agency Annual
sampling of
contracts for the
provision of goods
and services
required by the
agency
Publicly available
performance
reporting against
the purchase
contract
specifications
requested in
accessible formats
for people with
disabilities is
provided
Percentage of
publicly available
purchasing
specifications
requested and
provided in:

accessible
electronic
formats; and

accessible
formats other
than electronic
Average time
taken to provide
accessible
material in:

electronic
formats; and

formats other
than electronic
CRS Australia did
not release any
performance
measures or
reports against
contract
purchasing
specifications
Performance
reports can be
made available (in
accessible
formats) upon
request
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
All tender
documents
contain specific
clauses on
complainthandling
procedures
All tender
documents
contain specific
clauses on
complainthandling
procedures
All tender
documents
contain specific
clauses on
complainthandling
procedures
Measured by:
annual
assessment of all
performance
reports
undertaken for
purchase
contracts
Complaints/grieva
nce mechanisms,
including access
to external
mechanisms, in
place to address
concerns raised
about the
providers'
performance
Established
complaints/grieva
nce mechanisms,
including access
to external
mechanisms, in
operation
Measured by:
annual
assessment
Table A5.3 Commonwealth Disability Strategy—provider role
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
Providers have
established
mechanisms for
quality
improvement and
assurance
Evidence of
quality
improvement and
assurance
systems in
operation
Job Capacity
Assessment
Providers are
required to have
quality
improvement and
assurance
mechanisms in
place.
CSA has
developed and
implemented a
comprehensive
integrated
business
management
system that
includes
frameworks for
managing quality
improvement and
assurance
In 2006-07, CRS
Australia:
Measured by:
annual
assessment of
quality
improvement and
assessment
systems
In addition, the
Core Department
runs independent
quality assurance
audits to provide
feedback to JCA
providers and to
continually
improve the
quality of the JCA
programme
 was recertified
under the
Disability
Services
Standards of
the Disability
Services Act
1986:
 continued
implementing
the Quest for
Quality
Programme
cycle and use
of quality data
to ensure the
highest
standard of
service is
provided to
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
clients with
disabilities; and
 continued
evaluating
quality in
service delivery
through quality
assurance and
improvement
reviews and
analysis of
client and
customer
feedback
Providers have an
established
service charter
that specifies the
roles of the
provider and
consumer and
service standards
which address
accessibility for
people with
disabilities
Established
service charter
that adequately
reflects the needs
of people with
disabilities in
operation
Measured by:
annual
assessment of
provider's service
charter
Job Capacity
Assessment
Providers are
required to display
the DHS approved
JCA charter in all
their sites. This
document is also
available on the
JCA website.
All JCA providers
are obliged under
the terms of their
contract to
operate from
premises that are
fully accessible to
all customers
referred for an
assessment, and
conform to all
relevant legislation
DHS contracted
the services of a
consultant with
expertise in
accessibility to
develop a fact
sheet and
checklist about
accessibility
requirements.
CSA has a client
service charter
that specifies the
roles of the
provider and the
consumer; this
document is
available on the
CSA website
CRS Australia's
Service Charter
specifies the role
of the agency and
the consumer and
identifies CRS
Australia's
performance
standards
The charter is
available on CRS
Australia's
website, which
isWC3 compliant
for accessibility
The charter is also
available to clients
by request at
commencement of
their programme
Appropriate
assistance is
arranged where
the client may
have difficulties in
understanding the
service charter; for
example, where
an Auslan
interpreter may be
required
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
CSA has a wellestablished
complaints service
that includes
access to external
mechanisms such
as the
Commonwealth
Ombudsman
CRS Australia has
a comprehensive
complaints/grieva
nce 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
customers
The checklist has
been applied by
site managers at
all JCA sites. The
Human Rights and
Equal Opportunity
Commission
helped to produce
these documents
Complaints/grieva
nce mechanism,
including access
to external
mechanisms, in
place to address
issues and
concerns raised
about
performance
Established
complaints/grieva
nce mechanisms,
including access
to external
mechanisms, in
operation
Measured by:
annual
assessment
Job Capacity
Assessment
Providers are
required to
establish and
maintain a
complaints
register for all
sites and ensure
all stakeholders
are aware of the
complaints
handling
procedures.
Clients are made
aware of
complaint
handling
processes through
the JCA Service
Charter and the
client Fact Sheet,
this includes
access to external
mechanisms such
as the Centrelink
Customer
Relations Unit and
the
Commonwealth
Ombudsman
Feedback is
actively sought
from clients
through the JCA
Hotline and
mailboxes
managed by the
Core Department
Information from
complaints is fed
back to business
decision makers
to improve service
delivery
Data collected
from complaints is
analysed and
integrated into the
business planning
process to
improve service
delivery
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
Data collected
from complaints is
analysed and
integrated into
improvements to
service delivery
Table A5.4 Commonwealth Disability Strategy—employer role
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
Employment
policies,
procedures and
practices comply
with the
requirements of
the Disability
Discrimination Act
Number of
employment
policies,
procedures and
practices that
meet the
requirements of
the Disability
Discrimination Act
Requirements of
the Disability
Discrimination Act
are incorporated
in employment
policies,
procedures and
guidelines
The CSA Certified
Agreement 200507 adheres to
relevant
Commonwealth
legislation,
including the
Disability
Discrimination Act
CSA regularly
reviews the
following policies
and programmes
to ensure they
comply with the
Disability
Discrimination Act:
Requirements of
the Disability
Discrimination Act
are incorporated
in employment
policies,
procedures and
guidelines, and a
log of policy and
procedural
compliance with
the Act is
maintained
Measured by:
annual
assessment of
employment
policies,
procedures and
practices
A log of policy and
procedural
compliance with
the Act is
maintained The
department has
established
human resources
policies and
governance
committees which
raise and support
disability issues
 orientation
programme;
 entry-level
training
programme;
 graduate
programme;
 team leader
development
programme;
 human
resources
management
procedures and
corporate
guidelines; and
CRS Australia
annually reviews
the following
policies or
programmes in
keeping with the
Act:
 orientation
programme;
 human
resources
management
procedures and
corporate
guidelines; and
 recruitment
management
procedures
CRS Australia has
reviewed its
Workplace
Performance
indicator
Recruitment
information for
potential job
applicants is
available in
accessible formats
on request
Performance
measure
Percentage of
recruitment
information
requested and
provided in:
 accessible
electronic
formats; and
 accessible
formats other
than electronic
Average time
taken to provide
accessible
information in:
 electronic
format; and
 formats other
than electronic
Measured by:
annual sampling
of all recruitment
information
Child Support
Agency
CRS Australia
 recruitment
management
procedures
Diversity Action
Plan to ensure it
complies with the
best practice
100 per cent of
recruitment
information is
provided
electronically
through the Core
Department
website
Potential
applicants are
informed through
the CSA website
that service
information can be
provided in
alternative formats
Potential
applicants are
informed through
the website that
recruitment
information can be
provided in other
accessible formats
on request No
requests for
information in
other accessible
formats were
received in 200607
Of the applicant
information
provided in 200607:
Potential
applicants are
informed through
the CRS Australia
website that
service
information can be
provided in
alternative formats
Internal and
external
recruitment
agencies and
panels are made
aware of
procedures for
handling requests
for information in
accessible formats
Core Department
 95 per cent was
provided in
electronic
formats such as
PDF and RTF
via the website
and email; and
 5 per cent was
provided in
hard-copy
formats such as
printed packs
On average,
applicant kits are
sent:
 to the applicant
by email on the
same working
day as the
request is
received; and
Applicant kits are
provided in
accessible formats
via website, email
or by printed
packs sent by post
A disability
register is created
to capture details
of applicants
requiring
information in
alternative formats
The closing date
for receipt of
applications can
 to Australia Post
be extended by
for delivery on
the manager upon
the same
request on a caseworking day as
by-case basis
the request is
received;
delivery by
Australia Post
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
occurs within 24
hours
Agency recruiters
and managers
apply the principle
of 'reasonable
adjustment'
Percentage of
recruiters and
managers
provided with
information on
'reasonable
adjustment'
Measured by:
annual sampling
of information
provided on
'reasonable
adjustment'
Training and
development
programmes
consider the
needs of staff with
disabilities
Percentage of
training and
development
programmes that
consider the
needs of staff with
disabilities
Measured by:
annual sampling
of training and
development
programmes
100 per cent for
recruiters 100 per
cent for managers
All recruitment
contracts specify
that reasonable
adjustments are to
be made during
the recruitment
and selection
process
100 per cent for
recruiters 100 per
cent for managers
All recruitment
contracts specify
that reasonable
adjustments are to
be made during
the recruitment
and selection
process
100 per cent for
recruiters 100 per
cent for managers
All recruitment
contracts specify
that reasonable
adjustments are to
be made during
the recruitment
and selection
process
100 per cent of
programmes
100 per cent of
programmes
100 per cent of
programmes
The needs of
participants with
disabilities
continue to be
considered and
integrated into all
planned learning
and development
activities
The CSA training
database enables
employees to
identify specific
needs at the time
of nomination
All learning and
development
programmes
consider the
needs of staff with
disabilities
Training
programmes are
developed taking
into account
individual learning
styles, needs and
preferences for
accessing
information
All training
evaluations seek
to identify needs
not met during the
training
Training and
development
programmes
include
information on
disability issues as
Percentage of
training and
development
programmes that
include
information on
100 per cent of
programmes
100 per cent of
programmes
100 per cent of
programmes
Performance
indicator
Performance
measure
they relate to the
content of the
programme
disability issues as
they relate to the
programme
Core Department
Child Support
Agency
CRS Australia
The Core
Department has
established
processes for
handling
complaints and
grievances,
including access
to external
mechanisms
The CSA Certified
Agreement 20052007 and CSA's
Corporate
Guidelines set out
established
processes for
handling
complaints,
including access
to external
mechanisms
All relevant human
resources policies
include reference
to complaints and
grievance
mechanisms that
include access to
external
mechanisms
Measured by:
annual sampling
of training and
development
programmes
Complaints/grieva
nce mechanism,
including access
to external
mechanisms, in
place to address
issues and
concerns raised
by staff
Established
complaints/grieva
nce mechanisms,
including access
to external
mechanisms, in
operation
Measured by:
annual
assessment
The
complaints/grieva
nce mechanism is
detailed in the HR
Principles and
Policy Manual
available on the
intranet, to which
all staff have
access The
intranet also
provides links to
the Australian
Public Service
Commission
website
New employees
are provided with
information on the
processes and
policies for
resolving
complaints and
grievances, during
their induction
All staff are
provided with
advice on the
complaints/grieva
nce process
during orientation
and can access
the relevant
guidelines via
CSA's intranet on
an ongoing basis
Staff are advised
of complaints and
grievance
mechanisms, as
well as any
changes to human
resources policies,
through the
certified
agreement, the
intranet and
induction
processes
Exit interview data
and Employment
Assistance
Programme
service reports are
monitored
The agency's
internal and
external complaint
mechanisms are
continually
assessed to
identify the
potential barriers
Performance
indicator
Performance
measure
Core Department
Child Support
Agency
CRS Australia
for staff with
disabilities
Appendix 6 Environmental performance
Under section 516A of the Environment Protection and Biodiversity Conservation Act 1999, Australian
Government departments and agencies are required to report on:

how the organisation's outcomes, activities and administration of legislation during the period
accorded with the principles of ecologically sustainable development;

the effect of the organisation's activities on the environment;

any measures the organisation is taking to minimise the environmental impact of its activities; and

any mechanisms for reviewing the effectiveness of those measures.
This appendix meets those requirements.
Shared activities
In 2006-07, the Core Department, the Child Support Agency (CSA) and CRS Australia drew up a
cooperative agreement and took part in several shared activities to improve environmental performance
across the Portfolio Department of Human Services (DHS).
The use of 'Green Teams' was extended across DHS as a mechanism to champion environmental
initiatives at the local level and to share approaches to improving environmental performance between
organisations at the national level. Green Teams are site-based, with the ability to promote and
implement national environmental initiatives locally to improve the environmental performance of
individual sites.
The three groups of the Portfolio Department joined Australian Greenhouse Office's Greenhouse
Challenge Plus, a programme to lower the carbon dioxide emissions generated by the use of electricity,
fuels and waste. By joining, DHS made a commitment to:

reduce greenhouse emissions;

accelerate the uptake of energy efficiency;

integrate greenhouse issues into its business decision-making; and

provide more consistent reporting of greenhouse emission levels.
DHS subscribed to Greenfleet, a not-for- profit organisation that plants native trees to offset the
greenhouse gas emissions produced by motor vehicles during the year. Greenfleet will facilitate, on the
Portfolio Department's behalf, a one-off planting of 17 trees for each vehicle in the three fleets.
Representatives of the three groups discussed and developed strategies at monthly environmental
forum meetings and the first annual Environmental Champions Conference.
Core Department
In line with Australian Government policy, ethanol-enriched fuel was used in the Core Department's
vehicles whenever possible. By June 2007, the rate of ethanol use in the Core Department had reached
10 per cent of fuel consumption.
Under the Greenfleet initiative, a total of 129 trees were planted in 2006-07 on behalf of the Core
Department. Each year the trees will offset the carbon emissions of the Department's fleet. As vehicles
are added to the fleet they are automatically signed up to this initiative.
The Core Department purchased electricity with at least eight per cent 'greenpower', and actively
participated in recycling waste paper, with 21 recycling containers provided to employees for use. These
containers were collected on a weekly basis for recycling. Energy use and paper consumption were
continually monitored to identify potential for further efficiencies and for opportunities to enhance the
Core Department's environmental performance. On 5 June 2007, the Department of Human Services
signed up to the Greenhouse Challenge Plus Programme run by the Australian Greenhouse Office. This
program is voluntary and is aimed at improving energy efficiency and reduction of greenhouse gas
emissions.
Child Support Agency
In 2006-07, CSA continued to develop a corporate environmental management system (EMS), based on
existing CSA and DHS best practice, to satisfy the requirements of:

Australian Government environmental guidelines;

the Greenhouse Challenge Plus Cooperative Agreement;

the Department of Environment and Water's Energy Efficiency in Government Operations (EEGO)
Policy; and

the recommendations in the report of the Australian National Audit Office's cross-portfolio audit of
green office procurement (tabled in parliament on 22 December 2005).
Environmental issues were highlighted for CSA staff through the introduction of environmental
awareness training into the induction process, and the promotion of events such as World Environment
Day, National Walk to Work Day and National Recycling Week.
CSA decreased its impact on the environment during the year by:

requiring all fleet vehicles to have four cylinders, a Green Vehicle Guide rating of 10.5 or greater and
a fuel consumption rating of no more than 10.8 litres per 100 kilometres;

revising and strengthening the ethanol- blended fuel policy for fleet vehicles, to increase the
proportion of E10 fuel consumed;

monitoring the amounts of electricity and paper used, and the number of printer and fax cartridges
recycled;

negotiating to have a 'green lease schedule' attached to the leases of four new sites, setting out the
legal mechanisms for CSA and the building owners to achieve energy efficiency in leases;

working with building owners and agents to implement the terms of the revised EEGO Policy to
ensure the appropriate Australian Building Greenhouse Ratings are achieved; and

increasing energy efficiency in new fit-outs in line with the initiatives of the EEGO Policy, such as
energy-efficient lighting and switching, timers on appliances, and power saving features on office
equipment.
CRS Australia
In 2006-07, CRS Australia strengthened its commitment to the protection of the environment by
endorsing a new environmental management plan and manual. The plan integrates environmental
considerations into business planning and decision-making processes including using a lifecycle costing
approach in purchasing decisions, and including environmental clauses in tender and contract
documentation.
The launch of the plan was supported by a comprehensive communication strategy that included
establishing an online environmental discussion group, expanding the existing eco-aware intranet site,
and using email and internal news articles to deliver information to staff. Staff were also encouraged to
participate in external activities with environmental objectives, such as Earth Hour and Clean Up
Australia Day.
CRS Australia also developed an action plan to reduce waste and promote recycling in accordance with
the National Packaging Covenant. The action plan builds on existing recycling programmes such as the
Close the Loop toner cartridge programme and programmes to reduce the amount of waste from mobile
phones and personal computers sent to landfill.
Reductions in energy and paper consumption were achieved, by:

investigating sites using more than 10,000 megajoules of electricity per person per year, conducting
regular reviews of the operating times of larger air-conditioning systems, commencing a strategy to
replace fluorescent lights with more efficient incandescent bulbs, and minimising the use of nonessential equipment; and

enabling multi-function devices, making duplex printing the default on replacement printers,
encouraging the use of electronic publishing and communication, conducting awareness campaigns
to encourage less printing, and purchasing paper with 50 per cent recycled content.
CRS Australia also adopted an environmentally friendly motor vehicle policy that requires four-cylinder
cars to be used for the business fleet in metropolitan offices, promotes the use of alternative fuel
vehicles and encourages the use of ethanol-blended fuel in government vehicles. On average, all
vehicles in the CRS Australia fleet exceeded the government Green Vehicle Guide efficiency target, and
43 per cent of the CRS Australia fleet were rated in the top half of the Green Vehicle Guide. The Green
Vehicle Guide determines a car's environmental footprint in terms of its fuel consumption and
greenhouse gas emissions.
Appendix 7 Occupational health and safety
Section 74 of the Occupational Health and Safety Act 1991 (the 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;

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;

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 during the year;
and

such other matter required by guidelines approved on behalf of the Parliament by the Joint
Committee of Public Accounts and Audit.
This appendix, in conjunction with information in the body of the annual report, meets those
requirements.
Core Department
Amendments to the OH&S legislation in 2006-07 introduced new requirements to be implemented in
consultation with employees before September 2008.
In 2006-07, the Core Department undertook a number of activities, including the election and training of
health and safety representatives and deputies and the establishment of designated work groups, in line
with the new requirements.
A Health and Safety Committee, with membership drawing on a cross-section of the Core Department,
was established. The Committee reports quarterly to the Executive Management Committee. Through
the Committee, consultations commenced on ways to support and meet obligations under the new
legislative requirements.
The Core Department also participated in the Human Services cross-agency working group to identify,
develop and implement consistent strategies to address OH&S requirements.
During 2006-07, the health, safety and welfare of Core Department employees were supported by:

education, information and activities, in particular through Health Week activities, which included the
provision of free influenza vaccinations;

workstation assessments conducted for all new employees and existing employees whose
circumstances changed;

training in OH&S requirements provided for new employees through induction programs; and

the appointment and training of first aid officers to cover the Core Department's work areas.
During 2006-07, one employee lodged a compensation claim.
There were no accidents or dangerous occurrences during 2006-07 that required the giving of notice
under section 68.
There were no notices given to the Core Department under section 29 (Provisional Improvement
Notices), section 46 (Power to issue prohibition notices) or section 47 (Power to issue improvement
notices) of the Occupational Health and Safety Act 1991 during the year.
Child Support Agency
In 2006-07, CSA worked to improve overall health and safety across the organisation by:

engaging a consultant to review the customer service officer role to identify inherent job requirements
and job stressors and to review CSA recruitment practices accordingly (the consultant's report was
received in June 2007 and a number of recommendations are currently under consideration);

conducting quarterly workplace inspections at each site to identify and address any potential OH&S
risks;

conducting workstation assessments for all staff;

training team leaders to improve their knowledge of OH&S and their role in providing a supportive
and productive work environment for staff;

assessing new projects and work sites for health and safety; and

increasing OH&S content in induction training for new staff.
CSA also focused on reducing injury- related time off work through timelier and more effective return-towork strategies. These included:

engaging an additional five rehabilitation case managers, bringing the total number of case
managers to 14 nationally;

implementing early intervention by immediately reporting any injuries or illnesses arising from
employment, initiating contact with injured employees within 24 to 48 hours, arranging early
assessment of an employee's capacity for return to work, and providing access to employer-funded
medical intervention in certain cases to reduce the number of claims;

engaging Comcare-approved rehabilitation providers for complex cases and psychological stress
injuries; and

continuing to work with CRS Australia, Comcare and the HSA Group to devise additional strategies.
By establishing targets, CSA actively engaged its leaders in managing the workers compensation
premium.
Better reporting and analysis of claims information provided managers with up- to-date status reports on
their progress towards targets. Table A7.1 shows the success of the strategies and targets in reducing
Comcare claims and lost time.
Table A7.1 CSA—Comcare compensation claims 2005–06 and 2006–07
2005-06
2006-07
Decrease (%)
New claims lodged with Comcare
126
89
29
Claims accepted by Comcare (with a date of
injury in any financial year)
101
49
51
New compensation claims that incurred five or
more days of incapacity (per 1,000 full-time
equivalent employees)
18.2
14.3
21.4
Total weeks of compensation leave incurred by
new and existing claims (per 1,000 full-time
equivalent employees)
601
498
17
During 2006-07, CSA had three workplace incidents that required notification to Comcare. No notices
were given by or to CSA under sections 29, 46, 47 or 68 of the OH&S Act during the year.
CRS Australia
CRS Australia reinvigorated its approach to OH&S during 2006-07. Its National OH&S Committee was
reactivated in October 2006, and subsequently:

met at approximately six-weekly intervals by teleconference;

endorsed the Organisational Occupational Health and Safety Business Plan 2006-08; and

began a systematic review of OH&S policies and education in CRS Australia.
An election for health and safety representatives was conducted, establishing a representative in every
designated work group. Work commenced on an online hazard and injury report form to replace the
current manual system and assist CRS Australia to identify and address injury trends and meet its
reporting obligations to Comcare.
The requirements of the improvement notices issued in 2005-06 under section 47 and section 68 of the
Occupational Health and Safety Act 1991, regarding necessary risk assessments for motor vehicle
selection, driver education and training and for not complying with mandatory reporting periods, were
met, and the investigations were closed. All managers completed a risk assessment relating to motor
vehicle selection, driver education and terrain, and were educated about the requirements of section 68
reporting.
In 2006-07, 29 staff and seven clients lodged compensation claims. At 30 June 2006, 23 claims by staff
and three claims by clients had been accepted.
The Staff Health Team case managers provided support to staff with compensable or non-compensable
conditions, as well as clients who injured themselves while on CRS Australia programmes. The Staff
Health Team had 18 fitness for continued duty cases at 30 June 2007, and documented 50 'one-off'
cases (cases that can be handled quickly and are not ongoing) during the year. Case managers focused
on early intervention and effective return-to-work programmes.
As a result of changes to the Safety, Rehabilitation and Compensation Act 1986 and to insurance
arrangements for CRS Australia clients, the number of compensation claims is expected to decrease in
2007-08. In addition, an early intervention scheme commencing on 1 July 2007 will provide funds
enabling managers to implement interventions such as workstation assessments and to engage
rehabilitation consultants to facilitate the safe, early return of ill and injured staff.
No notices were given by or to CRS Australia under sections 29, 46, 47 or 68 of the OH&S Act during
the year.
Appendix 8 Discretionary grants
This appendix provides details of discretionary grant programmes administered during the year, as
stipulated in the Requirements for annual reports for departments, executive agencies and FMA Act
bodies.
Discretionary grants are payments in relation to which the minister or paying department or agency has
discretion in determining whether or not a particular applicant receives funding and may or may not
impose conditions in return for the grant.
Core Department
There were no discretionary grant programmes administered by the Core Department in 2006-07.
Child Support Agency
There were no discretionary grant programmes administered by the Child Support Agency in 2006-07.
CRS Australia
There were no discretionary grant programmes administered by CRS Australia in 2006-07.
Appendix 9 Corrections to errors in the previous Annual Report
This appendix provides corrections to material errors in the Department of Human Services Annual
Report 2005-06.
Core Department
There were no material errors in the Core Department's reporting in the Department of Human Services
Annual Report 2005-06.
Child Support Agency
Consultancies
The Child Support Agency information in the Annual Report 2005-06 incorrectly omitted one consultancy
(see Table A9.1). The omitted consultancy was originally not on the contract register.
Customer service—complaints
There was an error in CSA's Goal 2: Customer Service Excellence section. It read:
"Another indicator of CSA's success in improving customer service is the continuing decline in
complaints received and upheld under independent review.
Total complaints received in 2005-06 were 10,403 compared with 12,258 in 2004-05, a decrease of
nearly 18 per cent."
It should have read:
"Another indicator of CSA's success in improving customer service is the continuing decline in
complaints received and upheld under independent review. Total complaints received in 2005-06 were
10,403 compared with 12,258 in 2004-05, a decrease of 15 per cent."
Financial management
On page 82 of the 2005-06 annual report, CSA reported total financial assets of $42.1 million. However
this figure should have been $42.2 million. The error occurred due to the rounding down of the full figure
$42.172 million to $42.1 million rather than rounding up to $42.2 million in line with all other figures
reported in commentary of the annual report. The actual amount of $42.2 million has been used in
comparative statements in the 2006-07 annual report.
Table A9.1 CSA—consultancy services to the value of $10,000 or more incorrectly omitted from the
2005-06 Annual Report
a
Consultant Name
Description
Contract price
(GST
inclusive)
Selection process
Justification
Tarcus Pty Ltd
External delivery assurance
adviser implementation of
CSA's service delivery and
scheme reforms
$588,000
Panel (Centrelink) Ba
Need for specialized or professional skills.
Comcare claims
The figure of 114 claims accepted in Appendix 8 on page 255 of the 2005-06 annual report has been
amended to 101 claims accepted. (This has been amended for consistency in reporting).
CRS Australia
The schedule of commitments on page 191 for the 2005-06 financial year reported $52.586 million.
However subsequent to the publishing of the annual report it was discovered that amount was erroneous
and that it should have been $29.260 million. In the 2006-07 annual report the comparative 2005-06
data in the schedule of commitments has been changed to the correct amount of $29.260 million.
Appendix 10 Fraud control certification
REFERENCES
Abbreviations list
AAT
Administrative Appeals Tribunal
AEIFRS
Australian Equivalents to International Financial Reporting Standards
AGDRC
Australian Government Disaster Recovery Committee
AGPN
Australian General Practice Network
ANAO
Australian National Audit Office
APS
Australian Public Service
APSC
Australian Public Service Commission
ATO
Australian Taxation Office
AWA
Australian Workplace Agreement
CDDA Scheme
Compensation for Detriment caused by Defective Administration Scheme
COAG
Council of Australian Governments
CSA
Child Support Agency
DEWR
Department of Employment and Workplace Relations
DHS
Portfolio Department of Human Services (includes Core Department, CSA and
CRS Australia)
EEGO Policy
Energy Efficiency in Government Operations Policy
EMS
environmental management system
FaCSIA
Department of Families, Community Services and Indigenous Affairs
FMA Act
Financial Management and Accountability Act 1997
FOI Act
Freedom of Information Act 1982
HREOC
Human Rights and Equal Opportunity Commission
Human Services
Portfolio
DHS, Centrelink, Medicare Australia, Australian Hearing, HSA Group
MOU
memorandum of understanding
NECC
National Emergency Call Centre
OH&S
occupational health and safety
OH&S Act
Occupational Health and Safety Act 1991
RACS
Restricted Access Customer System
RAP
Reconcilliation Action Plan
SES
Senior Executive Service
SSAT
Social Security Appeals Tribunal
TRIP
tax refund intercept payment