Annual Report 2001–02

Management and accountability PDF (376kb)

External scrutiny

FaCS is committed to responding to external scrutiny of its operations. In this section, FaCS, Child Support Agency (CSA) and CRS Australia report on their strategies to meet that commitment.

Fraud control

See Financial statements—Certification of departmental fraud control arrangements.

Privacy

FaCS—privacy

FaCS adopts practices to protect the privacy of information obtained from people who use portfolio services. The department reviews and assesses practices and procedures to achieve best practice across the portfolio.

As a purchaser of services, FaCS is confident that Centrelink and the Family Assistance Office have effective mechanisms in place to protect clients’ personal information. Centrelink is also bound by its own privacy guidelines, which complement the current privacy regime, ensure Centrelink complies with the principles underlying the Privacy Act and deal with privacy issues particular to the Centrelink environment.

FaCS’s business partnership agreement with its partner service delivery agencies allows FaCS to monitor and contribute to the protection of client privacy. FaCS operates an administrative law protocol with its family assistance partner service delivery agencies for handling privacy and freedom of information-related matters. The department also maintains a separate memorandum of understanding in its business partnership agreement with Centrelink. As part of the protocols and memorandum, partner service delivery agencies are required to provide FaCS with quarterly reports on privacy, confidentiality and freedom of information matters. Centrelink and FaCS officers meet regularly to discuss and resolve privacy issues.

Liaison with the Privacy Commissioner

FaCS liaised with the Privacy Commissioner about social security and family assistance policy development issues, and personal information handling and complaints the commissioner received about the department. Complaints about interferences with privacy alleged by clients of service delivery agencies were forwarded to those agencies to investigate and resolve.

FaCS consulted the Privacy Commissioner on privacy issues as they arose, such as the implementation of the Personal Support Programme. FaCS also joined the Privacy Contact Officers’ Network Steering Committee and participated in regular Privacy Contact Officer meetings.

Complaints, reports and determinations by the Privacy Commissioner

FaCS received only one privacy complaint from the Privacy Commissioner’s Office. That complaint involved an allegation of unauthorised use of client personal information. This matter remains under investigation. A complaint referred from the Privacy Commissioner’s Office in 2000–01 was resolved in this financial year. The alleged breach was not substantiated.

Under ss. 30 and 52 of the Privacy Act 1988, the Privacy Commissioner may issue a report or declaration about FaCS. The commissioner did not issue any reports or determinations under these sections.

Under s. 73 of the Privacy Act 1988, an agency may apply for a public interest determination under s. 72 by the Privacy Commissioner, about an act or practice that breaches an information privacy principle. FaCS did not apply for any such determination.

Privacy compliance and investigations

The confidentiality provisions of legislation that fall under the operational jurisdiction of the FaCS portfolio expressly forbid the release of client information, except in limited circumstances. FaCS investigates all complaints and allegations of breaches of privacy and/or confidentiality.

FaCS maintains a memorandum of understanding with Centrelink under which Centrelink investigates alleged breaches of privacy by FaCS’s staff, service providers or departmental procedures. FaCS’s administrative law protocol with the Australian Taxation Office (ATO) and Health Insurance Commission (HIC) requires those agencies to report to FaCS outcomes of investigations they conduct into alleged breaches of privacy involving the service delivery of family assistance to clients. The ATO and HIC reported nil breaches in 2001–02.

FaCS dealt with four incidents that alleged the loss and unauthorised disclosure of personal information. Two of the four allegations were finalised. Both were substantiated. The remaining two matters, one of which was an investigation initiated by the Privacy Commissioner in June 2002, are yet to be finalised.

Privacy Commissioner Information Privacy Principle Audit of the Family Assistance Office

In October 2001 the Privacy Commissioner conducted an audit under to paragraph 27(1)(h) of the Privacy Act 1988 on the records of the Family Assistance Office.

The audit, which was finalised in June 2002, contained four recommendations that the department has agreed to implement.

Child Support Agency—privacy

The majority of privacy concerns and identified privacy breaches are investigated and resolved within the Child Support Agency through its national network of privacy officers. The Privacy Commissioner continues to refer all complaints to the Child Support Agency in the first instance. This year, the commissioner formally investigated only four new matters.

The Child Support Agency maintains representation on the Office of the Privacy Commissioner’s Steering Committee.

Child Support Agency’s complaints service

The Child Support Agency continued to coordinate and manage feedback and complaints by integrating management of the complaints service, ministerial correspondence, complaints made through the Commonwealth Ombudsman and the Office of the Federal Privacy Commissioner, requests for compensation, and media coverage. In 2001–02, 82.6 per cent of all complainants contacted the Child Support Agency’s complaints officers compared with 71.5 per cent in 2000–01 and 66.5 per cent in 1999–2000.

CRS Australia—privacy

CRS Australia maintains client and other files that contain a range of personal information, some of which can be of a sensitive nature. The agency has well-developed systems to ensure the maintenance of an appropriate level of privacy with regard to this information. The relevant principles and practices are extensively documented on the CRS Australia intranet page ‘Managing client information’ and promoted regularly to staff. CRS Australia has identified key elements of best practice as including:

complying with the legislative requirements when collecting, using and storing personal information
keeping the client informed of their rights to access and amend their personal information
ensuring the client understands the purpose for why the information is being collected, and to whom the information will be disclosed
ensuring the appropriate information consent forms have been signed by the client and are up to date
ensuring all reasonable steps have been taken to ensure the security of personal information
ensuring the personal information is accurate, up to date, complete and not misleading
responding to requests for access to personal information (including subpoenas) as soon as practicable and within legislated time limits.

CRS Australia has nominated a senior national officer as the Privacy Contact Officer. This officer coordinates all liaison with the Privacy Commissioner including the investigation of complaints about privacy.

There has been one complaint lodged in 2001–02 with the Privacy Commissioner concerning CRS Australia, relating to an alleged unauthorised release of information to a third party. The Commissioner has yet to make a determination.

Reviews and appeals

FaCS—reviews and appeals

Reviews and appeals information are reported under each output group in Performance reporting.

Child Support Agency—reviews and appeals

Reviews and appeals under the Child Support (Assessment) Act 1989 and the Child Support (Registration and Collection) Act 1988

Child Support Agency clients can object to most decisions the Child Support Agency makes. In 2001-02, 10 997 objections were received. 10 721 objections were finalised including 11.1 per cent upheld or partially upheld. At 30 June 2002, there were 1538 objections in progress.

Child Support Agency—client compensation

In 2001–02, the Child Support Agency received 144 compensation claims compared to 101 in 2000–01 and 150 in 1999–2000. Of the 133 claims finalised (including claims considered from the previous year), the Child Support Agency upheld 60. The Child Support Agency paid $45 487.02 in compensation during 2001–02 compared to $48 236 in 2000–01. This comprised $34 437.02 in payments under the Compensation for Detriment due to Defective Administration Scheme, and $11 050.00 in payments for legal liability.

CRS Australia—reviews and appeals

A person affected by a CRS Australia decision—or its failure to make one—about rehabilitation can appeal first to the Secretary of FaCS then to the Administrative Appeals Tribunal if the matter is not resolved to their satisfaction.

CRS Australia’s internal review process is based on a three-tier complaint resolution model whereby attempts to resolve the complaint are made at regional, divisional and national levels as required.

Table 84 External controls—number of reviews and appeals—CRS Australia
	2001–02	2000–01
Internal reviews	26	18
Administrative Appeals Tribunal	2	1
Judicial review	0	0
Note: CRS Australia believes the increase in internal reviews primarily reflects improved data capture rather than decreased satisfaction.

Reasons for review/appeals (by level or tier)

Internal reviews—26

Review of decision not to provide program: 12

Review of decision to close rehabilitation program: 5

Review of decision to pay specified program costs: 2

Review of decision to release from liability to repay costs: 1

Review of decision to provide training: 2

Review of actions leading to closure: 4

Administrative Appeals Tribunal—2

Of the two appeals, one was against the decision not to provide a rehabilitation program. This appeal was withdrawn by the client before the hearing. The other was against the decision not to waive rehabilitation costs. A hearing date is expected in coming months.

Complaints to the Ombudsman

FaCS—complaints to the Ombudsman

The Commonwealth Ombudsman received 30 complaints relating to 32 issues about the department, which is a reduction on the 2000–01 figure of 34 issues.

Table 85 shows the number of issues raised by complainants with the Commonwealth Ombudsman.

Table 85 External controls—issues raised with the Commonwealth Ombudsman
Department/Program	2001–02
Family & Children’s Program	5
Disability Programs	4
Income Security	4
Family Assistance Office	2
Tender Contracts	2
Miscellaneous Services	1
Other	12
TOTAL	32

Under s. 15 of the Ombudsman Act 1976, the Ombudsman may report to a department and request details of any action it proposes to take in relation to matters and recommendations included in the Ombudsman’s report. The Ombudsman did not release any such reports for FaCS in 2001–02.

The Ombudsman Act also provides for the Ombudsman to make reports to the Prime Minister (s. 16), reports to Parliament (s. 17) and annual and additional reports (s. 19) which may contain comments about departments. The Ombudsman did not release any such reports for FaCS in 2001–02.

Child Support Agency—complaints to the Ombudsman

The Ombudsman received 2007 complaints about the Child Support Agency in 2001–02. This compares to 2178 CSA complaints received last year (an 8 per cent reduction) and follows a continuing downward trend since 1995–96.

The ombudsman has advised CSA that the continuing downward trend in relation to CSA complaints reflects both improved service standards within the CSA and the effectiveness of the Child Support Agency’s own complaints service for clients.

CRS Australia—complaints to the Ombudsman

The Ombudsman received 23 complaints about CRS Australia, out of which 24 issues were identified. Of these complaints, 2 were found by the Ombudsman to reflect defective administration on the part of CRS Australia.

Of the two found to be defective in administration, the first related to program closure and a claim that CRS Australia did not undertake an appropriate assessment. Although assessment was subsequently arranged, the Ombudsman closed the investigation prior to the results of the assessment. These results supported the decision not to provide rehabilitation services and the client was subsequently advised of the reasons for this decision.

The second complaint found to be lacking related to a time delay in responding to a request for information under the Freedom of Information Act. An apology was provided for this error and the information released to the client.

FaCS—Act of Grace payments

FaCS made 25 Act of Grace payments in 2001–02 totalling $160 955.

FaCS—Australian National Audit Office activity

FaCS was included in the following Australian National Audit Office (ANAO) audits in 2001–02.

No. 61: Managing people for business outcomes

The purpose of the study was to review the effectiveness of people management and human resource (HR) management in agencies. The audit addressed how line managers plan for and manage their staff to help achieve agency and program outcomes, and how the HR function supports people management practices to achieve agency outcomes. FaCS was one of 14 agencies that participated in the study.

FaCS has undergone significant organisational change and has been responsible for some major Government initiatives. The following recommendations were made by the ANAO to assist FaCS to continue to manage those initiatives and prepare staff for future change:

continue to work with FaCS’s strengths, in particular, the quality of the design of people management practices
ensure successful implementation of recent initiatives
improve the strategic role of the HR function.

FaCS is continuing to build on these supportive recommendations.

No. 62: Benchmarking the finance function—follow-on report

FaCS participated in this benchmarking study over three financial years beginning in 1999–2000. This benchmarking study did not report by agency. The study’s findings have enabled FaCS to compare its performance against the benchmarks in the audit report (both of Commonwealth agencies and an international group of public and private sector organisations) to help identify and diagnose areas where business processes may be improved.

No. 64: Management of learning and development in the Australian Public Service

The scope of the audit included the extent to which selected Australian Public Service agencies have developed a strategic approach towards identifying their professional development requirements based on future business needs. Agencies audited included the Australian Bureau of Statistics, Department of Foreign Affairs and Trade, Department of Veterans’ Affairs, Health Insurance Commission and FaCS. Other agencies staffed under the Public Service Act responded to a detailed questionnaire. There were no specific recommendations relating to FaCS in the report. FaCS is cited in the area of best practice for online evaluation of learning activities.

No. 34: Management of travel (use of taxis)

This cross-agency ANAO report included CRS Australia within its sample agencies. Travel policy and procedural rules are being amended to enhance and strengthen the control environment and facilitate cost-effective taxi travel management.

No. 33: Audit of the Senate Order of 20 June 2001

The ANAO noted that FaCS has complied with the Senate Order of 20 June 2001, which requires agencies to list current contracts of $100 000 or more on the Internet.

No. 21: Developing policy advice

This cross-agency ANAO report included FaCS within its sample agencies. It focused on the policy advising outputs concerning briefing documents, submissions and oral briefings provided to ministers and Cabinet. The audit concluded that agencies audited had appropriate elements of a quality management system but that quality assurance procedures were not used consistently in all policy advising projects examined. FaCS is ensuring that the better practice principles identified are examined and adopted.

No. 18: Performance information published in Portfolio Budget Statements

This audit assessed the appropriateness of performance information in Portfolio Budget Statements (PBS) and annual reports. FaCS and nine other agencies were included in this audit. The ANAO examined the performance information in the 2000–01 PBS and the reporting or performance information in 1999–2000 annual reports.

FaCS’s achievements in respect of the scope of this audit compared well with the other agencies. Further improvement to performance information and reporting have been made since the period of the audit examination. The issue of balancing annual performance reporting with the longer time frames over which social policy outcomes are achieved requires careful handling. FaCS’s performance reporting framework tailors government reporting requirements to address this issue.

Data quality and management continues to be the most significant challenge facing performance information for FaCS. A quality assured repository for FaCS’s management information and data is under development, which is expected to largely address this challenge.

Child Support Agency—ANAO Audit

The ANAO began a general performance audit of the Child Support Agency in October 2001. The audit focused on:

progress on implementation of audit recommendations made in 1997–98
review of corporate governance processes
general review of performance in relation to client service.

The ANAO’s fieldwork was completed in March 2002 and a draft Section 19 Report has been prepared. It is expected that the report will be tabled in Parliament in September 2002.

Parliamentary committees

Joint Standing Committee on Treaties

Revised social security treaties with Austria, Canada, the Netherlands and Spain were tabled in Parliament on 7 August 2001. The new treaty with Germany and revised treaty with Portugal were tabled in Parliament on 21 August 2001.

FaCS witnesses appeared before the committee at its public hearings on 20 August and 17 September 2001 when it reviewed the treaties. The committee recommended that binding treaty action be taken in all cases.

A new social security treaty between Australia and the United States of America and an Exchange of Notes amending the new social security treaty with New Zealand were tabled in Parliament on 12 March 2002. FaCS witnesses appeared before the committee at its public hearing on 13 May 2002 when it reviewed the treaty and Exchange of Notes. The committee recommended that binding treaty action be taken in all cases.

Senate Community Affairs Legislation Committee

The Disability Services Amendment (Improved Quality Assurance) Bill 2001 was introduced into the Senate on 23 August 2001. On 19 September 2001 the Senate referred the Bill to the Senate Community Affairs Legislation Committee for inquiry and report. On 25 September 2001 FaCS appeared before the Senate Committee to provide evidence on the Bill. FaCS provided a submission and answered questions raised by the Senate Committee on the new quality assurance system for disability employment services. ACROD and the National Caucus of Disability Consumer Organisations also provided evidence. As a result of the federal election announcement, a report was not produced. The Bill was re-introduced into the Senate on 13 February 2002 and the legislation was passed on 21 March 2002.

The Senate Committee’s report on ‘Scrutiny of Annual Reports No. 1 of 2002’ commented that the FaCS annual report for 2000–01 was ‘well structured, “reader-friendly” and the sections on performance reporting provide a useful overview of Departmental outcomes’. The Senate Committee also noted that the assessment and reporting on the achievement of outcomes had improved from the previous annual report in line with the Senate Committee’s comments.