Fraud control
See Part four—Financial statements—Certification of departmental fraud control arrangements.
Privacy FaCS—privacy
FaCS adopts practices to protect the privacy of the information obtained from people accessing portfolio services.
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 also is bound by the Centrelink Privacy Guidelines, issued by the Minister in June 1999, which complement the current privacy regime, ensure Centrelink fully complies with the principles underlying the Privacy Act, and address privacy issues particular to the Centrelink environment.
FaCS’ business partnership agreements with its partner service delivery agencies includes mechanisms to allow 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 matters related to privacy and freedom of information. FaCS 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 on issues relating to social security and family assistance policy development, and on personal information handling and complaints the Privacy Commissioner received about the department. Complaints about interferences with privacy alleged by clients of FaCS’ service delivery agencies were forwarded directly to those agencies to investigate and resolve.
FaCS consulted the Privacy Commissioner on privacy issues as they arose, such as the implementation of the joint dataset. FaCS also participated as a member of the Privacy Contact Officers Network Steering Committee and participated in regular Privacy Contact Officer meetings.
Complaints, reports and determinations by the Privacy Commissioner
In 2002–03, FaCS received no formal complaints from the Privacy Commissioner’s Office. One complaint received in 2001-02 that involved an allegation of unauthorised use of client personal information was resolved. The breach was substantiated.
Under sections 30 and 52 of the Privacy Act 1988, the Privacy Commissioner may issue a report or determination about FaCS. The Privacy Commissioner did not issue any reports or determinations under these sections.
Under section 73 of the Privacy Act 1988, an agency may apply, in accordance with the regulations, for a public interest determination under section 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
FaCS considers that any improper use or disclosure of personal information by staff, and soliciting of personal information from staff, would be of serious concern. 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 therefore investigates all complaints and allegations of breaches of privacy or confidentiality.
FaCS maintains a memorandum of understanding with Centrelink under which Centrelink investigates alleged breaches of privacy by FaCS staff, service providers or departmental procedures. FaCS’ Administrative Law Protocol with the Australian Taxation Office (ATO) and Health Insurance Commission 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 Health Insurance Commission are yet to report on any investigations carried out in 2002–03.
In 2002–03, FaCS dealt with 15 incidents that alleged the loss, use and unauthorised access to personal information.
Child Support Agency—Privacy
CSA has a strong commitment to protecting its clients’ privacy, and privacy issues are covered in induction and other staff training programs. Most privacy concerns and potential privacy breaches reported by staff and clients of CSA are resolved internally through a national network of privacy officers.
The Office of the Federal Privacy Commissioner refers child support matters to CSA in the first instance. Most concerns are resolved in this way. In 2002–03, four new matters were formally investigated by the Office of the Federal Privacy Commissioner and five cases were finalised. In three cases CSA was found to have breached the Privacy Act 1988, resulting in two compensation payments totalling $750. The other two cases concluded with a finding of no breach of the Privacy Act.
Over the past year CSA has delivered information sessions on child support, both to the steering committee of the Australian Government and ACT Government privacy contact officers network and to staff of the Office of the Federal Privacy Commissioner.
Child Support Agency—Client compensation
In 2002–03, CSA finalised 122 compensation claims, compared to 144 in 2001-02 and 101 in 2000-01. Of the 122 claims finalised, 35 were upheld. CSA paid $61 833 in compensation during 2002–03 compared to $45 487 in 2001-02. This comprised $59 517 in payments under the Compensation for Detriment due to Defective Administration Scheme, and $2316 in payments for legal liability.
Of the total amount paid, $48 843 related to compensation payments offered in 2002–03 and $12 990 related to compensation payments offered in 2001-02.
FaCS—Complaints to the Ombudsman
The Commonwealth Ombudsman received 25 complaints relating to 29 issues about the department, which is a 9 per cent reduction on the 2001-02 figure of 32 issues.
On 28 February 2003 the Ombudsman released his Own Motion investigation into family assistance administration and the impact on Family Assistance Office customers.
Table 72: Complaints received by the Ombudsman
Department/Program
|
2002–03
|
Family and Children’s Program
|
7
|
Disability programs
|
3
|
Tender/contracts
|
3
|
Family Assistance Office
|
1
|
Income security
|
1
|
FOI general access
|
1
|
Other
|
13
| Total | 29 |
Under section 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 2002–03.
The Ombudsman Act also provides for the Ombudsman to make reports to the Prime Minister (section 16), reports to Parliament (section 17) and annual and additional reports (section 19) that may contain comments about departments. The Ombudsman did not release any such reports for FaCS in 2002–03.
Child Support Agency—Complaints to the Ombudsman
The Ombudsman received 2435 complaints about CSA in 2002–03 (2007 were received in the previous year). There were 2509 complaints finalised, covering 3102 issues.
The increase in complaints can be attributed to:
an increase in the CSA client base
some residual implementation issues with the introduction of CSA’s new IT system ‘Cuba’ in March 2002. These issues are now fully resolved and complaint numbers are stabilising in response.
The CSA complaints service continues to be an effective mechanism to resolve client concerns. In 2002–03, the Ombudsman referred 78 per cent of all complaints made about CSA back to the complaints service before investigating. CSA continues to draw valuable learnings from issues raised through the Ombudsman to drive improvements in the quality of client service.
Act of Grace Payments
FaCS made 25 Act of Grace payments in 2002–03 totalling $144 419.80.
Australian National Audit Office (ANAO) activity
The following ANAO performance audits undertaken in 2002–03 included reference to FaCS or were cross-agency reviews.
No. 44: Review of the Parenting Payment Single Program
The objective of the audit was to determine whether the controls and measures employed by FaCS and Centrelink to deliver Parenting Payment Single (PPS) payments were effective and efficient.
Recommendations from the key findings from this audit included:
application of ANAO better practice performance information criteria
transparency in reporting of and calculating errors
increased skills training for Centrelink customer service officers.
FaCS is monitoring the implementation of these recommendations.
No. 45: Reporting of financial statements and audit reports in annual reports
This cross-agency report examined the publication of financial statements and audit reports of 117 Commonwealth reporting entities. The objective of the audit was to determine whether the financial statements and audit reports published in the annual reports of Commonwealth reporting entities agreed in all respects with their certified financial statements and audit reports.
There were no specific recommendations for FaCS; however, FaCS has in place the necessary framework to implement the generally relevant recommendations.
No. 27: Management of Commonwealth guarantees, warranties, indemnities and letters of comfort
This ANAO cross-agency audit sought to capture the extent of the Australian Government’s exposure to contingent financial exposures (for example, guarantees, warranties and indemnities), report on progress in implementing previous ANAO recommendations and identify examples of better practice. ANAO made three recommendations aimed at improving departments’ and agencies’ management practices associated with Australian Government guarantees, warranties, indemnities and letters of comfort. FaCS was one of several government agencies that agreed with the audit recommendations and have a process in place for the implementation of these recommendations.
No. 17: Age Pension entitlements—FaCS and Centrelink
The objective of the audit was to assess whether the controls employed by FaCS and Centrelink to ensure the correctness of payments made under the Age Pension Program were effective and efficient. The audit resulted in the following recommendations:
both agencies to look closely at quality assurance on error information resulting from random sample Surveys
Centrelink to monitor and assess the revised guidelines for Pensioner Entitlement Reviews (PERs)
Centrelink to look at and assess the new decision-making tools for improving correctness of payments, and to assess whether customer service officers require additional technical training to reduce administrative errors in processing PERs.
FaCS is monitoring the implementation of these recommendations.
No. 24: Energy efficiency in Commonwealth operations—Follow-up audit
This was a follow-up audit on Energy Efficiency in Commonwealth Operations carried out in 1999. In general, agencies in this follow-up audit have pursued the intent of those recommendations publishing a clear indication of how they will achieve the Energy Policy objectives; adopting a strategic and planned approach to introducing energy efficiency initiatives; and demonstrating a willingness to report on agency achievements in relation to energy use and the outcomes of energy efficiency initiatives.
FaCS is implementing the recommendations of the audit.
No. 16: Administration of grants (post-approval) in small to medium organisations
The recommendations set out in this report also have relevance to other Australian Government organisations. There were generally opportunities for organisations to enhance their performance in this significant area of operations by adopting the sound and better practices highlighted in this report.
No. 7: Client Service in CSA—Follow-up audit
The report from the most recent ANAO performance audit of CSA was tabled in Parliament in September 2002. It was a positive report, noting the strong progress CSA had made in implementing the 12 recommendations of the previous ANAO audit and the three recommendations pertaining to it in Joint Committee of Public Accounts and Audit Report 367 of 1999. The audit report concluded that CSA’s performance has improved in many aspects of client service since the previous ANAO audit, and that CSA has made substantial achievements against previous recommendations. There were four new recommendations arising from the report. CSA has largely completed implementation of all four.
Parliamentary committees Senate Standing Committee on Community Affairs
The committee examined the department’s Annual Report 2001-02 and tabled its report on 23 October 2002. It noted that all requirements were met in a ‘user-friendly’ structure and that performance information is generally well presented. The committee also said it would have liked to see more analysis and evaluation in acknowledging where outcomes have not been achieved. Performance reporting across output groups was not consistent in this respect.
Supplementary Budget Estimates 2002–03 hearings were held on 21 November 2002. The portfolio subsequently provided written answers to 184 questions either taken on notice or received in writing from committee members.
On 19 March 2003 the committee tabled the report on the portfolio Additional Estimates hearings of and 13 February 2003. The committee discussed much of the information contained in the Portfolio Additional Estimates Statements, particularly relating to Family Tax Benefit, Child Care Benefit, data matching and issues around overpayments. The portfolio had provided written answers to 145 questions taken on notice or received in writing from committee members.
On 4 and 5 June 2003 the committee held its 2003-04 Budget Estimates hearings. Written answers were provided in July 2003 to 166 questions taken on notice or received in writing from committee members.
Inquiry into Family and Community Services Legislation Amendment (Special Benefit Activity Test) Bill 2002
FaCS provided a detailed submission to the committee that included an overview of the legislation, the possible impacts upon those affected and some of the services that would be available to them. The committee’s report was tabled on 2 December 2002. Parliament passed the legislation on December 2002 and it received Royal Assent on 19 December 2002. The activity test commenced on 1 January 2003.
Inquiry into Participation requirements and penalties
This inquiry related to the passage of the Family and Community Services Legislation (Australians Working Together and other 2001 Budget Measures) Bill 2002. FaCS lodged a written submission and also appeared at public hearings on 6 August 2002. The report of the committee was tabled on 25 September 2002 and made a total of 13 recommendations. The Government responded to the recommendations through a number of government amendments to the Bill, which was passed on 27 March 2003 and received Royal Assent on 24 April 2003 as the Family and Community Services Legislation (Australians Working Together and other 2001 Budget Measures) Act 2003.
Inquiry into poverty and financial hardship
FaCS provided a detailed submission to the committee on 31 March 2003 covering lifetime participation, technical measurement issues and the environment, as well as economic and social trends. FaCS witnesses appeared before the committee on 20 June 2003.
Senate Employment, Workplace Relations and Education Legislation Committee (Inquiry into the Workplace Relations Amendment (Paid Maternity Leave) Bill 2002)
FaCS witnesses appeared before the committee on 22 August 2002.
Senate Select Committee on Superannuation (Inquiry into superannuation and living standards in retirement)
The committee examined the adequacy of the tax arrangements for superannuation and related policy to address the retirement income and health care needs of aged Australians. FaCS lodged a submission in July 2002 and FaCS witnesses appeared before the committee on 19 July 2002 and 8 October 2002.
Senate Select Committee on Superannuation (Inquiry into planning for retirement)
The committee examined mechanisms that help people to plan and make the transition from work to retirement. FaCS lodged a submission in April 2003, and on 15 May 2003 FaCS witnesses appeared before the committee to highlight the importance of boosting labour force participation as a critical pathway to helping people plan and build their retirement income.
A treaty agreement between Australia and the United States for the reciprocal enforcement of maintenance obligations was tabled on 18 June 2002. Child Support Agency witnesses appeared before the committee at its public hearings on 12 July 2002. The committee recommended that binding treaty action be taken and the new treaty came into effect on 12 December 2002, replacing former non-treaty agreements with US states.
New social security treaties with Belgium, Chile and Slovenia were tabled in Parliament on 14 May 2003. FaCS witnesses appeared before the committee at its public hearing on 16 June 2003.
A new social security treaty with Croatia was tabled in Parliament on 17 June 2003.
Joint Standing Committee on the National Capital and External Territories
In April 2003 the Joint Standing Committee on the National Capital and External Territories sought FaCS’ views and suggestions on possible ways to improve governance on Norfolk Island, in particular the possibility of the Australian Government providing Norfolk Island residents with income support payments and programs that are currently provided to the rest of the Australian community.
FaCS prepared a submission to the committee, which outlined Australia’s social security and family assistance systems and their applicability to Norfolk Island. The submission discussed the reasons for the different arrangements that currently apply to residents of Norfolk Island and issues arising from any changes to governance arrangements on the island.
Joint Standing Committee on Foreign Affairs, Defence and Trade (Inquiry into Australia’s relations with Indonesia)
FaCS provided a submission to this inquiry in November 2003 and gave evidence and supplementary information to the sub-committee on 15 June 2003.
Joint Committee on Public Accounts and Audit
FaCS witnesses appeared in June 2002 before the Joint Committee on Public Accounts and Audit in response to an ANAO Audit of Age Pension New Claims. FaCS provided its response to the committee in December 2002 and this was tabled in June 2003.
Joint Committee on Corporations and Financial Services (Inquiry into the level of banking and financial services in rural, regional and remote areas of Australia)
In September 2002, FaCS provided a submission to the Joint Committee on Corporations and Financial Services and gave evidence before the committee at hearings on 12 November 2002.
The House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs (Inquiry into Capacity Building in Indigenous Communities)
The committee is examining strategies to help Aboriginal and Torres Strait Islander peoples to better manage the delivery of services within their communities. A submission was provided to the committee in September 2002 advising of the work being done by FaCS, including findings, lessons learned, research and strategic options to address the issues identified by the committee.
House of Representatives Standing Committee on Ageing (long-term strategies to address the ageing of the Australian population over the next 40 years)
FaCS provided a submission to the Standing Committee on Ageing on 16 December 2002 and appeared before the committee on 7 February 2003. At the hearing, FaCS witnesses expanded on the key themes of increasing participation, consolidating retirement incomes, supporting family formation and resilience, and responding to ageing communities.
The committee complimented FaCS on the quality of its submission, and asked for extra information prompted by the 140 submissions it had received. FaCS met this request on 5 May 2003.
House of Representatives Standing Committee on Legal and Constitutional Affairs (Inquiry into crime in the community: victims, offenders and fear of crime)
FaCS provided a submission to the committee on 16 August 2002 outlining potential for countering and preventing crime through select programs such as the Stronger Families and Communities Strategy and the Family and Community Networks Initiative.
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