Centrelink annual report 1999 – 2000 Contact officer
Corporate Overview of Our Organisation
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- Role of the Board of Management
- Role of the Chief Executive Officer
- The Span of the Centrelink Network
- Restructure of National Support Office
- Senior Management Remuneration
- Discretionary Grants Centrelink does not administer any discretionary grant programs. Assets Management
9. Corporate Overview of Our OrganisationLegislationThe Commonwealth Services Delivery Agency Act 1997 (the CSDA Act) which came into effect on 1 July 1997 formally established Centrelink. Under this Act the Agency comprises:
Other legislation affecting Centrelink is outlined in Appendix i. Centrelink’s FunctionsThe Act confers on the Agency responsibility for:
Role of the Board of ManagementThe Act gives the Board power to do all things necessary or convenient to be done for, or in connection with, the performance of its functions. The Board’s functions are:
The Board must also ensure that general policies of the Commonwealth Government that apply to the Agency, the Board or the employees are carried out. Notifiable EventsUnder Sections 9 and 13 of the CSDA Act, the Board must comply with a direction from the Minister, given in writing to the Chairman, about the performance of its functions, the exercise of its powers or the conduct of its meetings. Particulars of any directions given by the Minister in a financial year must be included in Centrelink’s Annual Report. Section 10 of the CSDA Act requires that, before giving a direction under Section 9, the Minister must ask the Board for its advice and comments on the impact of the direction on the Agency’s operations. Particulars of advice by the Board are also required to be reported in Centrelink’s Annual Report. No notifiable events or ministerial directions were received during 1999–2000.
Guiding CoalitionCentrelink has a flat management structure; the traditional divisions and branches have been replaced with teams. A SES officer leads each team. There is no hierarchical order for these teams and their leaders. Every SES officer is a member of the Guiding Coalition. The Guiding Coalition is Centrelink’s Management Committee. Each member represents his or her people. The Guiding Coalition meets about every six weeks. The Guiding Coalition’s role is, within the directions or policies determined by the Board of Management, to:
The Span of the Centrelink NetworkThe organisational shape of Centrelink has remained dynamic and has been under continual review over the past year as Centrelink has expanded its operational capacity. The organisational structure reflects the business operations logically, and facilitates the ongoing streamlining of organizational levels and functions. It also provides the flexibility to build organisational capabilities that will be required for Centrelink to function in an increasingly contestable environment. Customer Service Centres, agents and community agents are positioned to allow the widest possible access to all Australians, whether they be in metropolitan, rural or remote localities (see Figure 15, Span of the Centrelink Service Delivery Network). This network allows Centrelink to deliver a comprehensive suite of services consistent with the Government’s one-stop-shop policy.
Area Support OfficesGiven its national focus, Centrelink has grouped its various service centres into 15 geographical areas, each with an Area Support Office headed by an Area Manager. These offices provide management, administrative and operational support for Customer Service Centres. Figure 14: Centrelink Organisational Framework and Customer Service Network Figure 15: Span of the Centrelink Service Delivery Network National Support OfficeThe National Support Office is Centrelink’s headquarters and, as its name suggests, supports the Board of Management, Ministers, client agencies and the Centrelink network that interacts directly with customers. There are three main types of teams in the National Support Office: Theme Teams; Community Segment Teams; and Information and Technology (I&T) Teams. Theme Teams manage corporate functions and ensure that Centrelink develops and demonstrates best practice in all aspects of its operations. Community Segment Teams, corresponding to the major customer groups to which Centrelink delivers payments and services, are responsible for ensuring the achievement of performance levels set out in Business Partnership Agreements for their particular customer group. They also provide the main point of liaison for day-to-day contact between Centrelink and its client agencies. I&T Teams are responsible for the development, release and maintenance of IT products and services for Centrelink. (See Figure 14, Centrelink Organisational Framework. ) Other Corporate MattersRestructure of National Support OfficeNational Support Office underwent a major restructure in 1999–2000. The restructure aimed to improve the service that it provides to the network, client agencies, the Board and Ministers and other key stakeholders. It was instigated in response to feedback from clients highlighting concerns with consistency of service across the network and the time lag between announcement of policy changes and actual implementation of those changes by Centrelink. One of the major changes arising from the restructure was the creation of the Service Integration Shop, which will support the development of customised service offers for client agencies and interface extensively with the network and I&T services. This will allow Centrelink to develop a consistent and preferred way of doing business through sharing best practice across Community Segments and the organisation as a whole. The restructure will also allow an increased focus on client relationship management with clients and external stakeholders, and will enable Centrelink to better anticipate and respond to client needs and better position itself for new business opportunities in the future.
Executive AppointmentsMr Paul Hickey has been appointed to the position of Deputy Chief Executive Officer, Business Capability. His previous positions include:
Senior Management RemunerationThe Government’s workplace relations and wages policy supports the determination of wages and conditions as far as possible by agreement at either the enterprise or workplace level. As such, it is Centrelink policy to remunerate the SES by Australian Workplace Agreements. Centrelink does not use classification bandwidths as the basis for remuneration. Discretionary GrantsCentrelink does not administer any discretionary grant programs. Assets ManagementAssets management does not form a significant aspect of Centrelink’s strategic business. Year 2000 ComplianceThe Year 2000 Compliance Project was initiated in March 1996 to address the Year 2000 issue in the Family and Community Services Portfolio. Early recognition of the potential Year 2000 problem and comprehensive testing undertaken during the previous two years has resulted in a successful rollover into the Year 2000 for Centrelink, with no Year 2000 related problems. All Centrelink Customer Service Centres opened for business on Tuesday 4 January 2000, and as expected, Centrelink’s operations during the first business cycle of the New Year was business as usual. Centrelink customers were unaffected by the Year 2000 issue, with all payment systems operating as required. Total expenditure for Centrelink’s Year 2000 project was $21 million over a three year period, which included $11.34 million seed funding from the Office for Government Online. The largest expenses were $6 million to build and maintain a specific Year 2000 testing environment and $5 million to complete an extensive testing program, which was conducted by Centrelink and contract staff. Repairing systems, making transition preparations and coordinating staff accounted for $10 million. Centrelink was diligent in managing Year 2000 expenditure. While Centrelink has one of the largest integrated computing environments in Australia, it managed to keep Year 2000 expenditure to a modest level compared to other national organisations. Centrelink’s Year 2000 project was designed to ensure our customers would not experience any disruptions to payments or service benefits. The Centrelink Business Continuity Plan allowed for alternative measures to be put in place to ensure no disruption in the event of system failure. A Year 2000 simulation exercise was held and formal continuity and business resumption frameworks were established. These practices allow Centrelink to be well positioned for future business and systems continuity issues. During July 1999, the Office for Government Online requested that Centrelink participate in an independent third party review of Year 2000 preparedness. As a result, external consultants Acumen Alliance were selected by Centrelink from the Office for Government Online approved panel of consultants to conduct the review. The scope of the review included appropriateness of Year 2000 Business Continuity Planning and thoroughness of testing and certification. The final report by Acumen Alliance concluded that Centrelink’s estimates for seed funding were accurate and appropriate funds were managed well, a rigorous certification process had been followed, and the Year 2000 Project Office had followed best practice.
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