Centrelink annual report 2003 – 04 Contact officer

CENTRELINK STRUCTURE

Customer service network

Centrelink Call

Area Support Offices

National Support Office

The National Support Office operates under four business categories:

Customer Service, headed by a Deputy CEO

Business, headed by a Deputy CEO

Digital Business and Business Transformation, headed by a Deputy CEO and Chief Information Officer

Service Management, headed by a Deputy CEO.

Centrelink Executive

The Deputy CEO Business has responsibilities for: Participation and Client Partnerships; Families, Retirement and Payment Support Services; Financial Services; Property and Services; Environmental Management; Resource Management; Contracts and Procurement; People and Corporate Performance; and Risk and Business Assurance.

The Deputy CEO Service Management has specific responsibilities for: the Area Network; Centrelink Call Centers; Business Continuity in Service Delivery; and Service Delivery Integration.

The Deputy CEO Customer Service is responsible for improving the overall quality of customer service. The Customer Service Domain comprises the following Teams: Service Recovery; Indigenous Services; Multicultural Services, Business Liaison and Community Sector Relationships; Current Customer Services and Customer Experience Management.

The Deputy CEO Business Transformation includes the responsibilities of Chief Information Officer, and is accountable for the effective and efficient delivery of information and technology strategy and services. The Deputy CEO Business Transformation is also responsible for creating strategies, processes and solutions that identify cross-organization and whole of government opportunities to redefine Centrelink’s business model.

GOVERNANCE FRAMEWORK

As a core part of the Government’s operations and unlike most statutory authorities, Centrelink is subject to all the mainstream Australian Public Service legislation such as the Public Service Act 1999 and the FMA Act.

The Centrelink Board of Management is responsible for ensuring the corporate governance framework is in place. The Guiding Coalition—a peak management group that includes all Centrelink Senior Executive Service officers—governs Centrelink internally.

Board of Management

decide Centrelink’s goals, priorities, policies and strategies

Ensure that Centrelink functions are properly, efficiently and effectively performed.

The Board is fully accountable for these outcomes through the Chairman to the Minister. The Minister may, by written notice given to the Chairman, give directions to the Board about the performance of Centrelink’s functions. Generally, the Minister’s directions go to client agencies who exercise contractual authority over Centrelink’s delivery of their programs.

Ministerial directions

Board structure and operations

the Chairman

five non-executive directors who serve part-time

one non-voting member who is also a client department secretary

The CEO (the sole executive board member).

The Board usually meets monthly and works from an agenda set by the Chairman. Board papers are circulated a week before meetings and records of discussion and attendance are kept.

The Chairman

Chief Executive Officer

Board committees

There are three committees—the Audit and Risk Committee, the Quality Committee and the I&T (Information and Technology) Committee.

The Audit and Risk Committee supports the Board in ensuring Centrelink operates with proper financial management and internal controls and by contributing and reviewing the audit process. The committee also contributes to and considers the Risk Management Framework.

The Quality Committee promotes and oversees the achievement of quality outcomes in people development, customer service and overall organisational performance.

The I&T Committee provides advice and direction to the Board on strategic I&T issues, particularly those likely to affect Centrelink’s ability to deliver government services.

(For more information about Board committees, see pages 32–35.)

All Board members participate in at least one committee. The Chairman may participate as a member of all the committees. The CEO attends meetings of all committees but cannot be a member of the Audit and Risk Committee. See Table 3 on page 32 for attendance at committee meetings in 2003–04.

Board Members

CHAIR OF THE BOARD

NON-EXECUTIVE DIRECTOR

Managing Director, Phillips Fox Lawyers

Term as Chairman of Centrelink Board: 29 July 2000 to 28 July 2006(a)

John Pascoe AO was appointed as Chair (non-executive) of the Centrelink Board of Management from 29 July 2000 to 28 July 2006. He is the Managing Director, Insurance and Risk Management Division, Phillips Fox Lawyers, and also holds a wide range of board positions in the private, government and community sectors. Mr Pascoe was awarded as an Officer in the Order of Australia on 26 January 2002. The award was for service to business and commerce; children’s health (in particular the needs and rights of patients and their families); the Children’s Hospital at Westmead; and to youth training, nationally and internationally, through the Duke of Edinburgh’s Award Scheme.

Mr Pascoe is non-executive Chairman at George Weston Foods, and Chairman of Sealcorp Ltd; Deputy Chair of the Institute of Early Childhood Foundation; Chairman of Aristocrat Leisure Limited; and Deputy Chancellor of the University of New South Wales. He is also a Member of the Board of Trustees of the Duke of Edinburgh’s International Foundation (United Kingdom).

Mr Pascoe previously held positions as Deputy Chairman and CEO of George Weston Foods, and as a partner in the law firm Stephen Jaques and Stephen. His previous board positions include Chairman of Objective Corporation Ltd and CommSecure Ltd; director of the Aged Care Standards and Accreditation Agency Ltd, Qantas Airways Ltd and Cambooya Investments Ltd. Mr Pascoe was a member of the Board of the Royal Alexandra Hospital for Children and was a member of the Advisory Council of the Australian Graduate School of Management. He was also President of the Corporation and Securities Panel and was a part-time board member of Tourism New South Wales.

(a) John Pascoe resigned as Chairman of the Centrelink Board effective from 14 July 2004 to take up the position of Chief Federal Magistrate.

Executive member

EXECUTIVE MEMBER

CEO, Centrelink

Appointed to Centrelink Board: September 1997

Ms Vardon previously held positions in the South Australia Government as Chief Executive, Department of Correctional Services; Commissioner for Public Employment; CEO, Office of Public Sector Reform; and CEO, Department of Family and Community Services.

Non-executive directors

Don Fraser

CHAIR, QUALITY COMMITTEE

Term as Centrelink Board member: 29 July 2003 to 28 July 2006

Mr Fraser is Chairman of Didasko Ltd; Chairman of the RIRDC Organic Produce Research and Development Committee; member of the South Australian Premier’s Food Council; and an adviser to senior management of several private companies.

Mr Fraser held a range of senior retail executive positions in the United States, the United Kingdom, Europe, Asia and Australia—for example, as Regional Director Australia and New Zealand with Dairy Farm International; Joint Managing Director of Simago Supermarkets, Spain; Fresh Foods Development Director of Dairy Farm International; Regional Director of Woolworths Australia; founding Executive Director of Australian Safeway stores; and Regional Manager of Safeway stores in the United Kingdom.

Mr Fraser holds an MBA from Stanford University and is a graduate of the University of Queensland.

Elizabeth Montano

CHAIR, AUDIT AND RISK COMMITTEE

Term as Centrelink Board member: 29 July 2002 to 28 July 2005

Christina Gillies

CHAIR I&T COMMITTEE

Term as Centrelink Board member: 20 July 1997 to 28 July 2005

Ms Gillies previously held management positions as Program Director, Claims Management Reform, Victorian Work cover Authority (consultancy); Group Executive, Group Services, St George Bank Ltd; Chief Information Officer, Bank of Melbourne; General Manager, Information Technology, Coles Myer Ltd; General Manager, Melbourne Information Technology Services Proprietary Ltd; and Vice President, DMR Group.

Susan Rapley

NON-EXECUTIVE DIRECTOR

Term as Centrelink Board member: 29 July 2002 to 28 July 2005

Ms Rapley held previous management positions including CEO of Harrington Homes Group Pty Ltd and Australian Exports Pty Ltd (United States).

David R. Deans

NON-EXECUTIVE DIRECTOR

Term as Centrelink Board member: 31 March 2004 to 30 March 2007

Born and educated in Western Australia, David was heading a national construction company in Queensland at the age of 30. David remained in the building industry for over 20 years, practising as an arbitrator for much of the 1980s. From 1975 until 1991 he was a member of the Federal Government Indicative Planning Council for the Housing Industry.

In January 2000, David received the Centenary Medal for service to the aged–50 community.

In 1975, David was appointed a director of Later Years, which was the forerunner of National Seniors Association. He remained a director for nine years.

At National Seniors’ helm for 13 years, David fully understands the issues facing seniors.

He actively participates in many government, non-government and business sector committees focusing on areas such as age discrimination, unemployment, crimes against older people, banking services, retirement income, housing, health, aged care, and dementia.

David is also Chief Executive-elect of the organization that will be formed from the merger of National Seniors and the Councils on the Ageing.

Non-voting director

Mr. Mark Sullivan

NON-VOTING DIRECTOR

Appointed as Centrelink Board member: 18 June 2002

Governance changes

John Pascoe was reappointed to the Board for three years, commencing 29 July 2003

Don Fraser was reappointed to the Board for three years commencing 29 July 2003.

Board of Management committees

1. 
   David de Carvalho resigned as at 5 January 2004
   
2. 
   As CEO, Sue Vardon attends all committee meetings, but is not a formal member of the Audit and Risk Committee
   
3. 
   David Deans was appointed on 31 March 2004.
   

Quality Committee charter

Roles and responsibilities

The Quality Committee:

• 
  establishes a framework that supports the achievement of quality outcomes
  
• 
  ensures that there are appropriate ways of measuring quality outcomes
  
• 
  Reports to the Board on the achievement of quality outcomes.
  

Membership

• 
  Don Fraser (committee Chair)
  
• 
  Susan Rapley (non-executive director)
  
• 
  David Deans (non-executive director)
  

Advisers to the committee

Meeting schedule

Information and Technology Committee charter

Role and objectives

the frameworks and processes are in place for the efficient and effective management of the I&T investment and the continuing alignment with business strategies and plans

there are appropriate ways of measuring performance, risk and productivity

there is a sound base behind recommendations to the Board on overall architectural direction, I&T investment and risk management.

To meet the above objectives, the committee focuses on several key aspects of Centrelink’s I&T planning and operations, including:

the business/I&T strategic planning and business alignment processes—particularly to ensure that the business leverages future technology trends and opportunities

the 1–3–5 year migration plan with a focus on risk, investment and Benefit

the capability of the current environment to support current and future business requirements

internal I&T governance arrangements

I&T management capability and sourcing arrangements.

On behalf of the Board, the committee maintains a continuing review and overseeing role across the following key areas:

service performance

risk management

delivery against the business I&T strategic plan.

Membership

Sue Vardon (executive member)

Elizabeth Montano (non-executive director)

Susan Rapley (non-executive director)

Advisers to the committee

Meeting schedule

Audit and Risk Committee charter

Role and responsibilities

It advises the Board on:

• 
  annual financial statements
  
• 
  compliance with statutory and legislative requirements
  
• 
  business assurance requirements of client agencies.
  

It monitors risk exposures to Centrelink by commissioning and approving:

• 
  the Risk Management Framework and implementation
  
• 
  fraud control and security reports
  
• 
  other risk management strategies and reports.
  

It oversees the audit function by:

• 
  approving the internal audit work program
  
• 
  reviewing the effectiveness of its conduct and the major findings
  
• 
  reviewing the major findings of the external auditor
  
• 
  reviewing reports on any management’s actions to respond to these findings and those from other relevant audits
  
• 
  monitoring internal audit liaison with the external auditor, audit committees and bodies of client agencies
  
• 
  receiving reports on disagreement between management and internal audit
  
• 
  ensuring that timely action is taken to resolve any outstanding issues
  
• 
  monitoring the processes and systems for the design of audit programs.
  

Members

• 
  Elizabeth Montano (committee Chair)
  
• 
  John Pascoe (Chairman of the Board)
  
• 
  Mark Sullivan (non-voting director).
  

Advisers

Meeting schedule

Audit activities

Internal audit activity

Seventy-six internal audits were completed in 2003–04, covering financial management and accountability; corporate governance; I&T environment and applications; I&T strategic management; business outcomes; Customer Service Centers; and systems under development.

Centrelink Audit monitors progress in resolving internal and external audit recommendations. A progress report is considered at each of the Audit and Risk Committee meetings, with the Chief Auditor’s assessment highlighting instances where it was considered management has not satisfactorily resolved or progressed an issue. When necessary the Audit and Risk Committee invites relevant General Managers and National Managers to attend committee meetings.

Centrelink Audit continues to support staff development and learning. As part of an ongoing program to continually upgrade the skills of our auditors and to help meet the challenges of auditing in such a complex organization, several are currently studying for post graduate certificates in performance auditing at the University of Canberra.

Australian National Audit Office activity

Administration of three key components of the Agriculture–Advancing Australia package

Report No. 1, tabled 31 July 2003

The audit objective was to assess the adequacy of the Australian Government’s administration of three key components of the Agriculture–Advancing Australia package—the FarmBis II program, the Farm Help program and the Farm Management Deposits scheme. Centrelink was responsible for delivering the program on behalf of the Department of Agriculture, Fisheries and Forestry Australia.

Broadly, the audit examined the areas of strategic management, managing compliance, program promotion, performance monitoring and evaluation, and performance results.

The ANAO made nine recommendations aimed at strengthening the overall administration of the Agriculture–Advancing Australia package in the areas of strategic management, compliance, and performance management. Only one of the recommendations related to Centrelink, and action is under way to address this recommendation.

Business continuity management and emergency management in Centrelink

This audit assessed whether Centrelink has effective business continuity management and/or associated risk management procedures and plans in place that minimise the likelihood of a significant business outage; and in the event of such an outage, minimise disruption of critical services to customers. The audit also assessed whether Centrelink services satisfy special community demands during emergencies.

The ANAO made 11 recommendations to further improve Centrelink’s business continuity management and emergency management capacity. Centrelink agreed to all of the recommendations and is currently addressing them.

Compensation payment and debt relief in special circumstances

The audit examined a number of the discretionary compensation and debt relief mechanisms that are available to Australian Government agencies, where individuals or entities have been disadvantaged by legislation, or actions by agencies or staff, or some other negative circumstances. It deals mainly with two legislative mechanisms, namely, act of grace payments and waivers of debt, and one administrative mechanism, the Compensation for Detriment caused by Defective Administration scheme.

The main objective of the audit was to assess whether the management of claims for compensation and debt relief in special circumstances was in accordance with relevant legislative requirements and Australian Government guidelines, and whether the current administrative policies and procedures were adequate.

The ANAO made 11 recommendations, seven of which were directed at agencies (such as Centrelink) that receive claims for compensation and debt relief. Centrelink agreed to these recommendations and has started to address them.

Guiding Coalition

The role of the Guiding Coalition is to:

• 
  guide the organisation
  
• 
  set direction and lead change
  
• 
  establish a culture for the future
  
• 
  be an educative forum
  
• 
  Communicate decisions.
  

National Indigenous Coalition

Representation includes the National Manager and members of the Indigenous Services Team; Indigenous Service Unit Managers and Area Business Managers with Indigenous responsibilities; the Indigenous Communications Manager; and the Indigenous Call Centre Manager. The National Indigenous Coalition meets three to four times a year to discuss strategic issues of importance to Indigenous Australians and to provide input to Centrelink’s management and business directions.

Centrelink Project Management

The CPMF is modelled specifically to meet the needs of the organisation and provides governance that reflects Centrelink’s commitment to improve its operational efficiency.

The framework includes:

• 
  Centrelink’s Project Management Policy, setting out roles and responsibilities of Business Owners, Project Managers, Service Providers and Steering Committees
  
• 
  a high level project life cycle with supporting workflows, processes and templates, along with a single contact point for assistance in relation to methodology and procedures, reporting, brokering referral and escalation of issues
  
• 
  linkages to specialist support groups in Centrelink that provide a wide range of services that assist in the incorporation of more reliable and accountable planning of projects
  
• 
  Streamlined electronic reporting of project progress.
  

Evaluating our business

The Centrelink Evaluation Handbook was updated and issued in January 2004. It received high praise within Centrelink, from other Australian Government agencies, and from Canberra Evaluation Forum participants. It provides guidance on and sets the standards for evaluations undertaken within Centrelink. The handbook assists in building a strong evaluative culture within Centrelink and is designed to improve the quality and cost effectiveness of Centrelink evaluations by:

• 
  providing a clear consistent framework, focused on business and service objectives
  
• 
  ensuring Centrelink evaluations are adapted to context and local circumstances
  
• 
  providing pointers to methods, resources and other sources of assistance
  
• 
  encouraging use of all sources of performance information in evaluations
  
• 
  encouraging learning from other evaluations
  
• 
  ensuring that evaluation findings are used to improve processes, and inform decision making and strategic planning.
  

• 
  the Tiered Proof of Identity Model—that was found to provide a good balance between the need to be seen as tough to deter fraud and the requirement to pay customers their entitlements under the legislation
  
• 
  centrelink’s response to homelessness—that found that Centrelink is doing much good work with homeless customers, however, there was scope to improve the operational guidelines to assist staff with their responses to customers
  
• 
  service Profiling—that found that the service updates conducted under Service Profiling appeared to produce better longer-term outcomes than the program reviews they replaced.
  

Risk management

Comcover provides an independent assessment of our application of risk management. Analysis for 2004 was conducted in May. Centrelink improved its rating to 4 star—Advanced Implementation level from its previous rating of 3 stars. Improvements that were recognised since 2003 were across the following Key Performance Indicators: Risk Management Framework, Non-Insurance Risk Transfer, Insurance Risk Transfer, Business Continuity Planning, and Measuring Performance. These results reflect the efforts made across the financial year to build and consolidate on the foundations previously developed.

Integrated risk management

Strategic and operational risk management

Centrelink’s Business Plan 2003–2004 details operational initiatives that were specifically framed to manage those risks. Each initiative is assigned to a team(s) that is then responsible for its delivery. In this way our goals become operational. Therefore, the new Business Plan is, in effect, our Risk Management Plan and is the vertical link between strategic goals and operational action.

Risk Management Framework

• 
  New Business
  
• 
  Project Management
  
• 
  Business Operations
  
• 
  Program Integrity.
  

Risk Management Toolkit

Risk assessment workshops

New Business—Business Cases

Business assurance

Random sample surveys form part of Stage One of the Business Assurance Framework, assuring the correctness and accuracy of social security outlays.

Implementation of the other stages of the Business Assurance Framework will:

• 
  negotiate suitable and meaningful assurance measures, including reciprocal measures with external parties for other non-payment services
  
• 
  ensure quality measures and assurance processes for the customer experience
  
• 
  ensure results are valid, reliable and independent.
  

Social justice and equity

Centrelink recognises the importance of ensuring that customers have equitable access to the full range of client agency products and services, and that people are not disadvantaged by service delivery arrangements. Translated into a variety of languages, the Centrelink Customer Charter is Centrelink’s primary service offer to all its customers. The Charter sets out the type of service customers can expect, their basic rights and responsibilities, and how they can give Centrelink feedback. At the same time, Centrelink is committed to developing a workplace culture that supports the principles of workplace diversity and it has received external acclaim for its activities.

A comprehensive communication strategy for customers who do not have English as their first language is in place within Centrelink. This includes printed and online information products, radio programs and free interpreter and translation services.

Centrelink provides a wide range of specialist services to customers with special needs and undertakes comprehensive consultations both with customers and peak community bodies who represent customers.

Within the framework of the Charter of Public Service in a Culturally Diverse Society, Centrelink submits an Access and Equity report to the Department of Immigration, Multicultural and Indigenous Affairs (DIMIA) in September each year. This report outlines specific initiatives and strategies undertaken by Centrelink to ensure that service delivery standards are maintained and that customers receive fair and equitable treatment.

For more information about social justice and equity see Chapters 3 to 7.