Annual Report 2002–03 Volume I



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Departmental outputs

Cost

Ratio of departmental expense to administered expense


For every dollar spent on administered items under output Group 1.2, 9.2 cents were spent on departmental outputs.

Policy advice

Quality—Client satisfaction


Ministers and Ministers’ offices satisfied with the quality of policy advice and FaCS meets standards for policy advice

Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Part two—Ministerial and parliamentary services.

Technical quality of policy advice for Outcome 1—Marginally satisfactory.

Quantity


Number of items to Ministers

532 ministerial submissions and other written briefings or advice prepared; 1044 ministerial replies to correspondence completed.


Price


$9.9 million

Purchasing, funding and relationship management

Quality—Assurance


FaCS ensures that service providers meet terms and conditions of funding

In the Youth and Student specification, Centrelink and FaCS agreed Centrelink would deliver programs and services for young people on its behalf. Mechanisms common across most payment types for the monitoring of performance are defined in the FaCS—Centrelink Business Partnership Agreement.

The Reconnect Program ensures that funding agreements are met by requiring service providers to submit a range of reports to FaCS, including quarterly financial reports, annual audited reports and annual self-evaluation reports. Service providers must enter client data onto a system in a timely manner. Each Reconnect service must also be independently evaluated during a three-year funding agreement by a consultant appointed by FaCS.

Formal guidelines apply to the JPET program and regional youth officers complete annual quality assurance reports on service providers. Management information to ensure quality and value for money is gathered through the JPET Internet product and through tri-annual reporting arrangements by the community organisations according to the terms of the funding agreement.

For the Green Corps program, regional youth officers annually monitor 50 per cent of the project sites and assist in the acquittal process of each funding round. The Department of Employment and Workplace Relations surveys participant outcomes and satisfaction on behalf of FaCS, along with the quality of the training given.

Organisations administering TILA are required to adhere to TILA guidelines, provide accurate referral and assessment forms on a quarterly basis and final acquittal reports. In addition to this, agencies and their clientele will participate in TILA evaluation activities.



Service agreements/contracts that meet legislative, government policy and departmental requirements in place with all service providers

FaCS and Centrelink signed a revised Business Partnership Agreement on 31 July 2001, whereby Centrelink undertook to deliver programs and service for young people and students on FaCS’ behalf.

FaCS has an agreement with the Commonwealth Bank of Australia for the provision of the Student Financial Supplement Scheme under the terms of the Social Security Act 1991. This contract was renegotiated for a further 12 months from January 2003.

Services provided through the Reconnect program are delivered in partnership with community organisations that have funding agreements with FaCS. Services provided by the YAS program and associated FLW program are also delivered through service agreements with community organisations.

Services provided through the JPET program are delivered in partnership with community organisations under funding agreements with FaCS.

One national provider with a funding agreement with FaCS delivers services provided through the Green Corps program.

TILA services are delivered in partnership with non-government organisations that have funding agreements with FaCS.

Quantity


Number of contracts/service agreements under management

407 plus Centrelink and the Commonwealth Bank of Australia


Number of service providers under management

Reconnect: 98

YAS/FLW: 98

JPET: 135 service providers

Green Corps: 1 service provider delivering services across 170 project sites

Targeted Youth Assistance Program: 53 service providers

Mentor Marketplace: 4 service providers

TILA: 18 service providers

Price


$9.2 million

Research and evaluation

Quality—Assurance


Research and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development

Research and evaluation during 2002–03 was of a consistently high standard. It met timelines and terms of reference and was methodologically sound.


Quantity


Major pieces of research and evaluation completed

1 (in progress)


Price


$4.5 million

Service delivery

Quality—Assurance


Percentage of service level agreements in which performance is not delivered to the specified standard

Centrelink delivers services to standards agreed with FaCS.



The Business Partnership Agreement with Centrelink sets out key result areas and performance measures that apply to income support payments. Centrelink monitors performance against agreed standards for the delivery of services.

Quality—Client rights and obligations


Number of reviews and appeals

Table 16: Reviews and appeals—Output Group 1.2

Payment type

Authorised Review Officers

Social Security Appeals Tribunal

Administrative Appeals Tribunal

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Austudy

620

32

179

41

40

7.5

Fares Allowance

4

75

1

0

0

0

Student Financial
Supplement Scheme

8

0

0

0

0

0

Youth Allowance

3300

36

578

35

64

33

Independent Homeless Rate

130

17

29

34

2

0

Youth Training Allowance

12

33

3

67

0

0

Control of incorrect payment and fraud: savings in administered items arising from compliance activities

Mechanisms common across most payment types for detection and control of incorrect payment and fraud are described in the section on Right payments to the right people.

In 2002–03, an interrogation of the Centrelink mainframe data indicated that 422 629 Youth Allowance and Austudy Payment reviews were completed. It is estimated that some 77 748 rate reductions resulted in fortnightly savings of $10 653 365 and 50 231 upward variations resulted in fortnightly increases of $4 097 217. The 60 221 debts totalled $74 081 568. Service profiling was introduced gradually in 2002–03. The above figures represent a total of program reviews and service profiling updates for the financial year. Performance outcomes for debt recovery and prosecution activity are reported in the section on Right payments to the right people.

Significant increases in the number of reviews reported over previous years’ results reflect a widening of the definition of what constitutes a review rather than an increase in underlying review activity.


Price


$222.6 million—Centrelink

$1.5 million—Other




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