Centrelink Annual Report 2001-2002: - United...

2 Corporate overview

IN THIS CHAPTER:

BUS IN ES S AR R AN G EMEN TS

COR PO R ATE G O VER N AN C E

AUD I T AC T I V I T I ES

APPEN D I X

International visits

Major Executive speeches

Commonwealth legislation affecting Centrelink

Organisational chart—list of positions

‘Delivering today and

transforming tomorrow’

CENTRELINK ANNUAL REPORT 2001–022

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Business arrangementsCentrelink is a statutory authority within the Family and Community Services portfolio. Other

agencies in the portfolio are the Department of Family and Community Services (FaCS), the Child

Support Agency (CSA), the Social Security Appeals Tribunal (SSAT) and the Australian Institute of

Family Studies.

LegislationCentrelink operates under the Commonwealth Services Delivery Agency Act 1997 (CSDA Act), which

gives Centrelink responsibility for the provision of Commonwealth services in accordance with

service agreements.

As an Australian Public Service (APS) organisation, Centrelink is subject to the Financial Management and Accountability Act 1997 (FMA Act) and is staffed under the Public Service Act 1999 (other legislation affecting Centrelink is outlined in the Appendix to Chapter 2, page 46).

Funding arrangementsCentrelink’s revenue is provided through Business Partnership Agreements (BPAs) or similar

arrangements with client agencies. Funds are appropriated to the policy agencies and paid to

Centrelink in return for specifi ed services.

Outcome and outputCentrelink has one Government directed outcome, which is ‘effective delivery of Commonwealth

services to eligible customers’. The outcome is supported by the output ‘effi cient delivery of

Commonwealth services to eligible customers’.

Centrelink’s corporate goals are the basis for developing strategies to achieve the outcome and

output. The Balanced Scorecard is Centrelink’s primary instrument for measuring performance

against its corporate goals (see Chapter 3, page 53).

Centrelink functions

Our business

Centrelink contributes to the social and economic outcomes set by Government by delivering

services on behalf of 25 client agencies. These cover a wide range of outputs in the form of

products and services. For the full range of products and services provided by Centrelink, see

Figure 1, pages 14–18. Table 2 shows that the span of Centrelink’s network allows the widest

possible choice of access to all Australians.

CHAPTER 2: CORPORATE OVERVIEW 2

13

TABLE 1: Our business operations

FUNCTIONS: Income support, otherpayments and referral services 2001–02 2000–01

OUR DIMENSIONS

Service delivery points Over 1 000 Australia wide Over 1 000 Australia wide

Number of employees 24 641 24 356

Number of client agencies 25 client agencies (a) 20 client agencies

Payments on behalf of client agencies Approx. $53.4 billion a year Approx. $51.7 billion a year

Mainframe online transactions Approx. 3.7 billion a year Approx. 3.4 billion a year

OUR CUSTOMERS

Number of customers 6.4 million 6.3 million

Number of individual entitlements 9.5 million 9.3 million

Letters to customers Approx. 96.1 million a year Approx. 97.3 million a year

Home visit reviews 35 701 a year 65 267 a year

New claims granted 3.2 million a year 5.2 million a year(b)

Successful telephone calls Approx. 23.3 million a year Approx. 22.5 million a year

Internet web page views 15 million a year 9 million a year

(a) State and Territory Housing Autorities are counted as separate agencies.

(b) New claims lodged.

TABLE 2: Our network

Customer Service Centres (incorporating the Family Assistance Office)

314

Centrelink Agents 320

Rural Visiting Services In identified locations as required

Separate Specialist Service Centres 32

Call Centres 27

Veteran Information Services 13

Service Tasmania Centres 11

Rural Transaction Centres 29

Access Points 127

Area Support Offices 15

National Support Office 1


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FIGURE 1: Our servicesNote: Numbers in brackets relate to client agencies’ respective outputs as outlined in 2001–02 Portfolio Budget Statements.

A key to abbreviations used in this figure appears on page 18.

EMPLOYMENT

FaCS

Newstart Allowance (Output Group 3.1)

Mature Age Allowance (Output Group 3.1)

Partner Allowance (Output Group 3.1)

Widow Allowance (Output Group 3.1)

Employment Entry Payment (Output Group 3.1)

Education Entry Payment (Output Group 3.1)

Mutual Obligation (Output Group 3.1) (DEWR 1.2.8)

Centrelink Employer Contact (Output Group 3.1)

Special Employment Advance (Output Group 3.1)

Advance Payments (Output Group 3.1)

Community Development Employment Project Participant Supplement (Output Group 3.1)

Preparing for Work Agreements (Output Group 3.1) (joint with DEWR)

DEWRJob Seeker Registration (Output 1.2.1)

Application of the Job Seeker Classification Instrument (Output 1.2.1)

Enrolment for Job Matching Services (Output 1.2.1)

Referral to Job Search Training (Output 1.2.1)

Referral to Intensive Assistance (Output 1.2.1)

Referral to New Enterprise Incentive Scheme (Output 1.2.1)

Referral to Self Employment Development Providers (Output 1.2.1)

Special Needs Assessment (Output 1.2.1)

Issue Wage Assistance Cards (Output 1.2.9)

Referral to Work for the Dole (Output 1.2.8)

Return to Work Program (Output 1.2.10)

Maintenance of Employment Self Help Facilities (Output 1.2.3)

Occupational Psychologists (Output 1.2.2)

Community Support Program (Output 1.2.5)

Indigenous Employment Program (Output 1.2.9)

DESTPromotion of New Apprenticeships (Output Group 2.2)

Referral to New Apprenticeships Access Programme (Output Group 2.2)

Referral to Advanced English for Migrants Programme (Output Group 2.3)

Referral to Literacy and Numeracy Programme (Output Group 2.3)

Referral to National Office of Overseas Skills Recognition Courses (Output Group 3.2)

YOUTH & STUDENTS

FaCS

Youth Allowance (Output Group 1.2)

Austudy Payment (Output Group 1.2)

Pensioner Education Supplement (Output Group 3.1)

Student Financial Supplement Scheme (Output Group 1.2)

Reconnect Program (Output Group 1.2)

Fares Allowance (Output Group 1.2)

Youth and Student Line for Youth Allowance and Austudy Payment Enquiries

Parent Liaison Service (Output Group 1.2)


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DEST

ABSTUDY (including Living Allowance and Incidental Allowance) (Output Groups 1.2 and 2.1)

Student Financial Supplement (Loans) Scheme for ABSTUDY customers (Output Group 2.1)

Assistance for Isolated Children (including Distance Education Allowance, Second Home Allowance and Board & Additional Board Allowance) (Output Group 1.2)

ABSTUDY Pensioner Education Supplement (Output Groups 1.2 and 2.1)

Referral to Jobs Pathway Programme (Output Group 2.3)

Referral to Job Placement, Employment and Training (Output Group 2.3)

Referral to Young Offenders’ Pilot Programme (Output Group 2.3)

Career Information Centres (Output Group 2.3)

Career Counselling (Output Group 2.3)

Referral to Green Corps (Output Group 2.4)

RETIREMENT

FaCS

Age Pension (Output Group 3.4)

Wife Pension (Output Group 3.4)

Widow B Pension (Output Group 3.4)

Pension Loans Scheme (Output Group 3.4)

Pension Bonus Scheme (Output Group 3.4)

Financial Information Service* (Output Group 3.4)

Commonwealth Seniors Health Card (Output Group 2.2)

Pension Concession Card* (Output Group 2.2)

Pharmaceutical Allowance* (Output Group 2.2)

Telephone Allowance* (Output Group 2.2)

Bereavement Allowance* (Output Group 3.1)

Nominee Arrangements* * Managed by Retirement Community Segment for all customers.

DHAIncome Assessment for Residential Care Fees (Administered Item 3)

DVAVeterans’ Information and Community Support Services in selected sites (Output 4.1)

FAMILIES & CHILDREN

FaCS

Family Tax Benefit (parts A&B) (Output Group 1.1)

Maternity Allowance (Output Group 1.1)

Maternity Immunisation Allowance (Output Group 1.1)

Double Orphan Pension (Output Group 1.1)

Child Support registrations (Output Group 1.3)

Child Care Benefit (Output Group 1.4)

Family Adjustment Payment (Output Group 1.1)

Parenting Payment (single and partnered) (Output Group 3.1)

Jobs, Education and Training (Output Group 3.1)

Concession Cards (Output Group 2.2)

DISABILITY & CARERS

FaCS Disability Support Pension (Output Group 3.2)

Wife Pension (Output Group 3.2)

Newstart Allowance (Incapacitated) (Output Group 3.1)


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Youth Allowance (Incapacitated) (Output Group 3.1)

Sickness Allowance (Output Group 3.2)

Mobility Allowance (Output Group 3.2)

Disability Services (Output Group 3.2)

Disability Employment Services (Output Group 3.2)

Carer Payment (Output Group 3.3)

Carer Allowance (Output Group 3.3)

DEWR Employment Services for Special Groups (People with Disabilities) (Output 1.2.1)

DEST Disabled Apprentice Wage (Output 2.2)

DHACommonwealth Carelink Program (Administered Program)

Hearing Services (Outcome 6, Administered Item 1)

RURAL & HOUSING

FaCSRemote Area Allowance (Output Group 2.1)

Rent Assistance (Output Group 2.1)

Retirement Assistance for Farmers (Output Group 3.4)

AFFA Exceptional Circumstances Relief Payment (Output 1)

Farm Help (Output 1)

Dairy Exit Program (Output 1)

Ex-Gratia Payments for Farmers (Output 1)*

Sugar Industry Assistance Package (Output 1)*

Flood Relief Package (Output 1)* in conjunction with Finance

FinanceEx-Gratia Payments for Farmers (Output 2.1.3)** in conjunction with AFFA

DOTARSRural Transaction Centres (Administered Program 1.1)

Commonwealth Flood Assistance Package — Business Grants (Administered Program 1.1)

Other services Centrelink Agents

Service Tasmania

WA Telecentres

Centrelink Access Points

MULTICULTURAL SERVICES

FaCS

Multicultural Service Officer Program

Centrelink Multilingual Call

Interpreter and Translation Services

Special Benefit* (Output Group 3.1)

Crisis Payment* (Output Group 3.1) * Managed by Multicultural Community Segment for all customers.


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DIMIAAssurance of Support (Output 1.1)

Pilot Work Right Information Line (Output 1.3)

Employers’ Work Right Checking Line (Output 1.3)

INDIGENOUS SERVICES

Indigenous Service Officers (community development)

Indigenous Customer Service Officers (customer contact)

Community Agents

Interpreter Services

Indigenous Service Units

Indigenous Call Centres

Indigenous Employment Outreach Officers

Remote Visiting Teams

SOCIAL WORK SERVICES

Social Work Services for customers with difficult personal and family issues

Domestic and Family Violence Policy and Procedures

Child Support exemptions

Assessment of Youth Allowance for young people in situations of extreme family breakdown

Assessment of Crisis Payment for people leaving situations of domestic violence

Social Work Services for customers facing multiple barriers to participation

INTERNATIONAL SERVICES

Portability of payments

International agreements

Foreign pension access and assessment

OTHER SERVICES

Centrelink Community Officers and other assistance for homeless customers

Centrepay

Customer Confirmation Service

AECElectoral Roll data update (Output 1.1.2)

AGD Family Law Online (Output 1.3)

ATOIndigenous Tax Time program (Output 1.1)

FaCSHealth Care and other Customer Concessions (Output Group 2.2)

Corporate Services

DFATAustralian Passport Information Service Call Centre (Output 2.1.2)

SHARent Deduction Scheme

TSGService Tasmania

DOTARSBass Strait Passenger Vehicle Equalisation Scheme (Administered Program 2.1)

Tasmanian Freight Equalisation Scheme (Administered Program 2.1)


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KEY

Abbreviations Department/agency

AEC Australian Electoral Commission

AFFA Department of Agriculture, Fisheries and Forestry — Australia

AGD Attorney-General’s Department

ATO Australian Taxation Offi ce

DEST Department of Education Science and Training

DETYA Department of Education, Training and Youth Affairs (renamed Department of Education, Science and Training in November 2001)

DEWR Department of Employment and Workplace Relations

DEWRSB Department of Employment, Workplace Relations and Small Business (renamed Department of Employment and Workplace Relations in November 2001)

DFAT Department of Foreign Affairs and Trade

DHA Department of Health and Ageing

DIMIA Department of Immigration, Multicultural and Indigenous Affairs

DOCITA Department of Communications, Information Technology and the Arts

DOTARS Department of Transport and Regional Services

DVA Department of Veterans’ Affairs

FaCS Department of Family and Community Services

Finance Department of Finance and Administration

Social justice and equityCentrelink is a service provider to 6.4 million customers, including retired people, families, sole

parents, people looking for work, people with a short-term incapacity, people with a disability,

students, young people, Indigenous people and people from diverse cultural and linguistic

backgrounds.

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. The Centrelink Customer Charter, translated into a wide range of

community languages, 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 has received external acclaim for

its activities.

A comprehensive communication strategy in languages other than English 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. Centrelink submits an Access and Equity report to

DIMIA in September each year. This report outlines specifi c initiatives and strategies undertaken by


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Centrelink to ensure that service delivery standards are maintained and that customers receive fair

and equitable treatment.

For more detailed information see Chapters 5 to 9.

Strategic framework The Strategic Framework 2001–2006 refl ects the future direction of Centrelink’s business, providing

its purpose, vision, mission, goals and the underlying philosophies and strategies necessary to

achieve them.

This 2001–02 Annual Report provides performance reporting against the framework strategies and

measures outlined in the corporate goals, as well as the performance indicators used to measure

performance against each goal, as contained in Centrelink’s Agency Statement in the Portfolio Budget Statements 2001–02.

As well, this report shows how the Government’s and Centrelink’s priorities have a positive impact

across all its business areas. For more information about performance, see Chapters 3 to 9.

The framework was reviewed in 2001–02 and the new Strategic Directions 2002–07 was published

in early July 2002. This will form the basis for reporting against Centrelink’s performance in the

2002–03 annual report.

Our purposeCentrelink was created to provide exceptional service to the community by linking Australian

government services and achieving best practice in service delivery.

Our visionCentrelink will make a positive difference to Australian individuals, families and communities

particularly during transitional periods in their lives.

Our missionCentrelink’s mission states the scope of our unique business that sets us apart from other

organisations and exhibits our commitment to our customers and stakeholders.

Centrelink will build a stronger community by:

• simplifying access to government services by providing a single entry point;

• providing innovative and personalised services, opportunities and support, that are culturally

appropriate, during key life events;

• maintaining a high level of customer service, while ensuring strong accountability to

stakeholders; and

• building quality relationships with our stakeholders to continually improve the social well-being

of Australian society.


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Our goalsTo achieve Centrelink’s mission, there are six long-term goals.

TABLE 3: Our goals

Client Partnerships To build partnerships with client agencies that deliver the required results and provide value for money

Customer and Community To increase customer and community involvement and satisfaction with services

Centrelink People To provide Centrelink’s people with confidence, knowledge, skills and tools to meet the challenges of current and future business and their own career operations

Cost-Efficiency To manage our business efficiently and return a dividend to Government

Innovation To provide innovative and personalised solutions, consistent with government policy

Best Practice To be first choice and benchmarked as the best practice in service delivery

Business planningCentrelink’s strategic directions and goals are put into operation at national, area and local levels

through the Business Plan and associated processes. The Business Plan has a medium-term focus

on business objectives, priorities, actions and projects and provides the basis for preparing local

Business Improvement Plans for every Centrelink team.

During 2001–02, the Business Plan was reviewed and extensively revised to address the period

2002–05 and it was approved by the Board of Management. The plan includes the theme of

Delivering Today, Transforming Tomorrow, with specifi c priorities and outcomes identifi ed to deliver

the eight business objectives (see Table 4).

TABLE 4: Business Plan objectives

Objectives Themes

Access Providing assisted and more appropriate access for our customers and the Australian community

Business Continuing to improve our strategic and day-to-day operations

Correctness and accuracy Enhancing our capacity to pay the right person under the right program, at the right rate, for the right date

Delivery Maintaining and improving customer-appropriate service delivery

Efficiency and effectiveness Making our operations faster, cheaper and smarter

Focus Providing direct links to federal, state/territory and community-based support organisations

Governance Increasing organisational effectiveness and impact

Helping and supporting employees and contracted agents to achieve business continuity and success

Enabling people to achieve their maximum contribution to our high performing customer service culture


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Turning the Business Plan priorities into actions and initiatives by teams across Centrelink was

reinforced through expanding the network of planning coordinators, completely revising planning

templates and the guide, and a detailed discussion about themes and priorities at the annual

planning conference.

These improvements and a number of timing adjustments made advance preparation for 2002–03

more effective, represented a signifi cant achievement and built on previous planning processes.

In 2001–02 the Business Plan was also used to provide clearer context for considering and

monitoring major projects, with a focus on implementation of the Government’s AWT initiatives

and positioning Centrelink within the Government’s ongoing reform agenda for social welfare.

Decisions on internal priority projects were mapped directly to achieving the eight business

objectives. In the latter part of 2001–02, work commenced on the next developments for business

planning in Centrelink, which involves improving priorities, outcomes and planning processes based

around best practice across Centrelink.


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OPERATIONS

Shared Technical Services

Business & Information Protection

MINISTER FOR FAMILY &

COMMUNTY SERVICES

BOARD OF MANAGEMENT

CHIEF EXECUTIVE OFFICERSue Vardon

Business Delivery

Relationship & Demand

Change &Integration

EnterpriseArchitecture

I&T Strategy

Service Integration Shop Gateway

Business Practices

People Management

Virtual College

Business Planning

Financial Services

Business Alliance & Contracts

Resource Management

Communication, Media & Marketing

Area Managers

General Manager Centrelink Call

Chief Auditor

Operational & Performance Audit

IT & Financial Audit

Chief Customer Officer

Strategic Planning

Executive & Board Support

CUSTOMER SERVICE CENTRES

CIO Digital Business

Jane Treadwell

Deputy CEO Business

Graham Bashford

Deputy CEO Business Capability

Paul Hickey

Deputy CEO Customer Service

Pat Turner

BUSINESS ADVANCEMENT

BUSINESS SERVICES

e-

BU

SIN

ES

S

SERVICE INTEGRATION SHOP

Business Integration

Business Transition

Major Projects Group

Community Sector Relationships

CALL CENTRES

Operations

Future Capability

Centrelink Call I&T

CENTRELINK CALL

Service Improvement Team

Indigenous Services

Strategic Services (Customer Service)

Detection & Review

Debt Services

Risk & Business Assurance

Disability & Carers

Families

Psychology Services

Youth & Students

Internal Governance

Rural & Housing

Employment Services

Multicultural Services

Social Work Services

Retirement

Property & Services

COMMUNITY SEGMENT TEAMS

Client Partnership Teams

Business Development Unit

CLIENT PARTNERSHIP GROUP

International Services

National Manager Area Network

Centrelink’s organisational chartFIGURE 2: Our organisational chart (see Table 11, page 48 for moredetail)


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Customer service networkCentrelink’s customer service network includes Customer Service Centres (CSCs) and Call Centres,

along with other specialist customer service outlets and community agents. The network provides

services funded by Centrelink’s client agencies directly to 6.4 million customers.

Centrelink CallCentrelink Call comprises 27 networked Call Centres located around Australia, supported by

Centrelink Call Canberra, which provides operational, fi nancial, human resources (HR) and technical

support. Centrelink Call is headed by a General Manager and two National Managers. All Call Centre

managers and Centrelink Call Canberra business managers and the Executive are members of the

Centrelink Call Leadership Team, which meets bimonthly to discuss strategic Call Centre issues.

Area Support Offi cesCentrelink has grouped its various CSCs and specialist services into 15 geographical areas around

Australia, each with an Area Support Offi ce (ASO) headed by an Area Manager. These offi ces provide

management, administrative and operational support for CSCs.

National Support Offi ce The National Support Offi ce (NSO) is Centrelink’s headquarters and is located mainly in Canberra

with some teams outposted to other states. It supports the Board of Management, Ministers, client

agencies, ASOs and the Centrelink network.

In Centrelink, teams have replaced the traditional divisions and branches. A Senior Executive Service

(SES) offi cer leads each team.

The NSO operates under fi ve business categories:

• Business Delivery, headed by the Chief Executive Offi cer (CEO);

• Business, headed by a Deputy CEO;

• Business Capability, headed by a Deputy CEO;

• Customer Service, headed by a Deputy CEO; and

• Digital Business, headed by a Chief Information Offi cer (CIO).

(See also Figure 2, page 22.)

Centrelink ExecutiveThe CEO is responsible for the day-to-day administration and control of Centrelink’s operations,

and has the power to enter into service arrangements with the heads of client agencies. The CEO

leads the Centrelink management team to implement strategy, measure fi nancial and operational

performance and report to the Board of Management.


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The Deputy CEO Business has specifi c responsibilities for the Business Development Unit, Community

Segment Teams, Major Projects, Community Sector Relationships and Service Integration.

The Deputy CEO Customer Service is responsible for overall customer service delivery reforms,

Service Improvement Team, Indigenous Services, innovation and the application of policy programs

resulting from extensive customer research. This Deputy CEO also identifi es common issues across

Community Segment teams and seeks broad solutions to any problems.

The Deputy CEO Business Capability has specifi c responsibilities for Contestability and Contracts,

Financial Cluster, Communication, Media and Marketing, Strategic Business Alliances, Call Centre

Network, People Management, and Business Assurance Cluster.

The CIO Digital Business has the lead role in Centrelink’s digital business transformation through

information and technology (I&T) capability. As well, the CIO has specifi c responsibilities for:

• realisation and delivery of Centrelink IT products and services;

• maintainance and enhancement of the value of I&T to Centrelink; and

• custody and protection of customer information.

Corporate governance frameworkCentrelink operates under the direction of a Board of Management. Internally, it is governed

by a Guiding Coalition. There are clearly designated roles for the Board of Management and the

Guiding Coalition.

A Corporate Governance Handbook and a condensed version, Board Talk, support Board of

Management operations and increase the understanding of governance structures within Centrelink.

These publications are available to all staff.

Guiding CoalitionThe Guiding Coalition is Centrelink’s internal ‘corporate board’. It includes all Centrelink SES offi cers

and meets every six to eight weeks to discuss strategic issues of importance as well as make

decisions about Centrelink’s management and business directions. Meetings are held in Canberra.

Management committees

The Business Improvement Committee assists the Guiding Coalition in its responsibilities. Its primary

role is to ensure the most effective and effi cient use of Project and National Support maintenance

program funds within Centrelink.


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Board of Management

Board structure

During 2001–02, Centrelink’s Board of Management included:

• the Chairman;

• three part-time non-Executive Directors;

• two non-voting members who were client department secretaries (part-year only), see the

‘Government changes’ section, page 26; and

• the CEO (the sole Executive Board member).

Role of the Board

The Board of Management decides Centrelink’s goals, priorities, policies and strategies and ensures

that functions are properly, effi ciently and effectively performed. Its key governance activities

and practices include providing leadership, ensuring compliance with legislative requirements and

accountability, managing risk, monitoring performance and operating in an effi cient management

environment.

Role of the Chairman

The Chairman’s role is defi ned in the CSDA Act, and includes presiding over the Board of

Management, receiving notices and directions from the Minister for Family and Community

Services to the Board, and presenting Centrelink’s Annual Report to the Minister. In addition, the

Chairman has the formal role of Chief Executive for the purposes of the Financial Management

and Accountability (FMA) Act. Under section 44 of the FMA Act, the specifi ed Chief Executive has

general responsibility for managing the resources of Centrelink.

Role of Board members

The non-Executive Board Directors come from the private sector and have a variety of business skills

and expertise. In 2001–02, each of the non-Executive Directors chaired a Board committee.

Board Committees

Three Board of Management Committees assist the Board in its work.

• The Audit Committee ensures that Centrelink operates with proper fi nancial management and

internal controls.

• The I&T Committee provides advice and direction on strategic I&T issues.

• The Quality Committee is responsible for assuring the Board that Centrelink is delivering services

that will see it remain as the ‘fi rst choice’ for Government and customers, and eventually be

benchmarked as best practice in service delivery.

(For more information about Board Committees, see pages 29 to 32.)


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The Chairman and all Board members participate in at least one committee of the Board. The

Centrelink CEO attends meetings of all committees. Table 5 shows attendance at Board and

Committee meetings in 2001–02.

TABLE 5: Members’ attendance at Board and Committee meetings 2001–02

Board member

Board meetings(12)

Audit Committee (4)

Quality Committee (10)

I&T Committee (11)

John Pascoe 12/12(Board Chairman)

2/4 – 2/11

Chris Gillies 12/12 1/4 – 11/11(Committee Chair)

Don Fraser 12/12 1/4 10/10(Committee Chair)

2/11

John Thame 12/12 4/4(Committee Chair)

– 11/11

Sue Vardon(a) 12/12 3/4 7/10 10/11

David Rosalky(b) 3/12 1/4 – 3/11

Peter Shergold(c) 4/12 – 6/10 –

Mark Sullivan(d) 1/12 – – –

(a) As CEO, Sue Vardon attends all committee meetings, but is not a formal member of the Audit Committee.

(b), (c), (d) (See the ‘Governance changes’ section below).

Governance changes• Dr David Rosalky resigned as Secretary of FaCS and the Board of Management with effect from

10 November 2001.

• Dr Peter Shergold resigned his membership of the Board with his appointment as Secretary of DEST with effect

from 18 January 2002.

• Mr Mark Sullivan was appointed as Secretary of FaCS and to the Board of Management on 18 June 2002.

Profi le of Board members

Chairman of the Board

John Pascoe AO was appointed as Chairman (non-Executive) of the

Centrelink Board of Management from 29 July 2000 to 28 July 2003.

He is the Managing Director, Insurance and Financial Services Division,

Phillips Fox Lawyers, and also undertakes a wide range of board positions

in the private, government and community sectors. Mr Pascoe was

awarded as an offi cer in the Order of Australia on 26 January 2002.

The award was for service to business and commerce, to children’s health,

particularly the needs and rights of patients and their families, to the

Children’s Hospital at Westmead and to youth training, nationally and

internationally, through the Duke of Edinburgh’s Award Scheme.


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Mr Pascoe holds the position of Non-Executive Chairman at George Weston Foods, and he is

the Chairman of Sealcorp Ltd, the Deputy Chair of the Institute of Early Childhood Foundation,

Director of the Aged Care Standards and Accreditation Agency Ltd and is a Council Member at the

University of New South Wales. Mr Pascoe is also a member of the Board of the Royal Alexandra

Hospital for Children and is a member of the Advisory Council of the Australian Graduate School of

Management. He is also National Chairman of the Duke of Edinburgh’s Award Scheme in Australia

and is 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 fi rm Stephen Jacques and Stephen (now Mallesons). His previous board positions

included Chairman of Objective Corporation Ltd and CommSecure Ltd, and Director of Qantas

Airways Ltd and Cambooya Investments Ltd. Mr Pascoe was also President of the Corporation and

Securities Panel and was a part-time Board Member of Tourism New South Wales.

Chief Executive Offi cer

Sue Vardon was fi rst appointed as CEO of Centrelink in 1997 and

was reappointed in 2000–01 with effect from 1 September 2001 for

three years. She is currently an Adjunct Professor at the Institute of

Governance, University of Canberra, and is National President of the

Institute of Public Administration Australia. Ms Vardon was recently

appointed as a member of the Interim Board of the proposed Australian

School of Government.

Ms Vardon previously held positions in the South Australian Government

as Chief Executive, Department of Correctional Services; Commissioner for Public Employment; CEO,

Offi ce of Public Sector Reform; and CEO, Department of Family and Community Services.

Non-Executive Directors

Don Fraser was appointed as a non-Executive Director from 29 July 2000

to 28 July 2003 and currently works as an independent management

consultant and corporate adviser and is Chairman of Didasko Ltd.

Mr Fraser previously held a range of management positions 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 Director of Australian Safeway Stores;

and Regional Manager of Safeway Stores in the United Kingdom.


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Chris Gillies was reappointed as a non-Executive Director from 29 July

2000 to 28 July 2002 and currently holds board director positions with

Australian Homecare Services, Emergency Services Victoria, Multiple

Sclerosis Society of Australia, CommSecure Ltd and Sealcorp Pty Ltd.

Ms Gillies is currently undertaking a consultancy with the Bendigo Bank.

Ms Gillies previously held management positions as Program

Director, Claims Management Reform, Victorian Workcover Authority

(consultancy); Group Executive, Group Services, St George Bank Ltd; Chief

Information Offi cer, Bank of Melbourne; General Manager, Information

Technology, Coles Myer Ltd; General Manager, MITS Proprietary Ltd,

Sydney; and Vice President, DMR Group.

John Thame was reappointed as a non-Executive Director from 29 July

2000 to 28 July 2002. He currently serves as a director on the boards of

St George Bank Group Ltd, the Australian Wheat Board Ltd, Reckon Ltd,

the Permanent Trustee Company Ltd, the Council of National Museum

of Australia, and the Village Building Co Ltd. He was previously the

Managing Director, Advance Bank of Australia Ltd.

Non-voting members

Dr David Rosalky was a non-voting Director appointed by the former

Minister for Family and Community Services, Senator the Hon Jocelyn

Newman, in his capacity as the Secretary of FaCS, until his resignation on

10 November 2001.

He previously served as Secretary of the former DEWRSB and Chief

Executive of the Australian Capital Territory Chief Minister’s Department.

Other previous positions included Under Treasurer to the Australian

Capital Territory Government, positions in Finance, as director on the

Canadian Treasury Board, and as Senior Private Secretary to the Prime

Minister of Australia.

Dr Peter Shergold AM was a non-voting Director appointed by the

former Minister for Family and Community Services, Senator the Hon

Jocelyn Newman, in his capacity as the Secretary of the former DEWRSB,

until his appointment as Secretary of DEST effective 18 January 2002.

Dr Shergold previously held other Commonwealth Government chief

executive positions such as Public Service Commissioner, Public Service

and Merit Protection Commission; CEO of Comcare Australia; CEO of the

Aboriginal and Torres Strait Islander Commission; and Head of the Offi ce

of Multicultural Affairs.


29

Mark Sullivan is a non-voting Director appointed to the Board of

Management on 18 June 2002 by the Minister for Family and Community

Services, Senator the Hon Amanda Vanstone, in his capacity as the

Secretary of FaCS.

Mr Sullivan previously served as CEO of the Aboriginal and Torres Strait

Islander Commission and was Deputy Secretary in the former Department

of Immigration and Multicultural Affairs. He is also a Fellow of the Society

of Certifi ed Practising Accountants.

Board of Management Committees

Audit Committee

RESPONSIBILITIES

The Audit Committee supports the Board by ensuring Centrelink operates with appropriate fi nancial

management and internal controls and by reviewing specifi c matters that arise from the audit

process. The Committee:

• advises the Board on the annual fi nancial statements and compliance with statutory and

legislative requirements (including requirements of Chief Executives under the FMA Act and

Finance Minister’s Orders);

• oversees the audit function, including:

– approving Centrelink’s internal work program,

– reviewing the effectiveness of its conduct and major fi ndings,

– reviewing the major fi ndings of the external auditor,

– assessing management’s actions to resolve these fi ndings and those from other relevant

audits,

– internal audit liaison with the external auditor and audit committees and bodies of client

agencies, and

• monitors the risk exposures to Centrelink in fraud control and security reports and through

other risk management strategies and reports.

MEMBERSHIP

Members of the Audit Committee are:

• John Thame (Committee Chairman);

• John Pascoe, AO (Chairman of the Board);

• Dr David Rosalky (non-voting Director); and

Ms Sue Vardon, Executive Director, attends meetings as CEO of Centrelink.


30

ADVISERS TO THE COMMITTEE

The Deputy CEO Business Capability and the Chief Auditor are advisers to the Audit Committee.

MEETING SCHEDULE

Meetings are held quarterly or more frequently if required. The Committee Chair reports to the

Board of Management on the Committee’s work.

Information and Technology Committee

The Board established the I&T Committee because IT is so crucial to Centrelink’s success. At the time

the Board defi ned ‘Information and Technology’ for the Committee to mean

The application of computing, telecommunications and multimedia technologies to the

secure collection, storage, processing and dissemination of information.

RESPONSIBILITIES

So that the Board can make informed decisions, the I&T Committee ensures the Board has a clear

understanding of Centrelink’s IT performance including:

• the scope, composition and costs of the current production environment;

• the capability of the current production environment to support the current business of

the agency;

• the I&T strategic plan and its alignment to Centrelink’s business model, channels, strategies

and plans;

• the technology trends and opportunities that should be considered in positioning Centrelink for

the future;

• governance and investment issues and opportunities relating to Centrelink’s technology future;

and

• the architecture and policies for knowledge and information management within Centrelink and

its subsequent application across government.

The Committee Chair reports to the Board of Management on the Committee’s work. In this role,

the Committee provides timely advice and direction to the Board in the following areas:

• current and strategic I&T issues and their potential impact on the future success of Centrelink;

• the future direction and leadership of I&T specifi cally, and directions in sourcing including

partnerships, alliances and outsourcing; and

• the capability of the current I&T organisation to deal with the rate of change required to

achieve Centrelink’s vision and objectives.

The Committee acts as a reference point for Centrelink’s I&T processes and their contribution to

the accuracy and reliability of Centrelink’s services, and fulfi ls the role of the ‘conscience’ for I&T

management in Centrelink.


31

MEMBERSHIP

The members of the I&T Committee are:

• Chris Gillies (Director and Chair of the Committee);

• John Thame (Director);

• Dr David Rosalky (non-voting Executive Director); and

• Ms Sue Vardon (CEO).

MEETING SCHEDULE

The Committee meets each month, except in January.

Quality Committee

RESPONSIBILITIES

The Quality Committee assists the Board to fulfi l its responsibilities for ensuring that Centrelink’s

functions are properly, effi ciently and effectively performed. The objectives of the Quality

Committee are to:

• establish a framework that supports the achievement of quality outcomes;

• ensure that there are appropriate ways of measuring quality outcomes; and

• report to the Board on the achievement of quality outcomes.

To meet these objectives, the Committee focuses on several key aspects of Centrelink’s operations,

including:

• people management;

• communication, media and marketing;

• strategic thinking;

• customer service; and

• performance and business assurance.

The Committee maintains a continuing review and overseeing role across several major strategic

functions and activities, including:

• marketing operations;

• Business and Strategic Plans;

• customer service and performance measurement;

• business and quality assurance; and

• people capabilities.

The Committee also develops a workplan to ensure the objectives are met.


32

MEMBERSHIP

The members of the Quality Committee are:

• Don Fraser (Committee Chair);

• Dr Peter Shergold, AM (non-voting Executive Director); and

• Ms Sue Vardon (CEO).

ADVISERS TO THE COMMITTEE

Centrelink staff whose work is particularly relevant to the Committee’s work attend meetings as

advisers to the Committee. They include the Deputy CEO, Business, and the following General and

National Managers:

• Business Development Unit;

• Business Planning;

• Centrelink Virtual College;

• Communication, Media and Marketing;

• People Management;

• Service Integration Shop;

• Risk and Business Assurance;

• Service Improvement; and

• Strategic Services.

In some cases, an Area Manager may be invited to attend Committee meetings. As well, the

Committee sometimes engages consultants or external practitioners to provide input about relevant

and successful programs.

MEETING SCHEDULE

The Committee aims to meet each month.

Risk managementThe application of risk management principles enables Centrelink to improve the way it controls

and manages its business. Through risk documentation, Centrelink is able to provide assurance to its

stakeholders about business control and strategy development. This also assists all Centrelink staff

to understand why changes are introduced and the links between strategic goals and directions.

During 2001–02 Centrelink continued to integrate and improve its risk management skills and

abilities through:

• integration of risk management into business planning processes;

• development of a risk register database;

• completion of more than 57 risk assessment workshops; and

• requirements for risk management data in many key components of the business.


33

FaCS identifi ed six key risks associated with payment correctness. These risks or areas of concern

have given Centrelink the opportunity to demonstrate to FaCS how Centrelink controls these risks

and what plans there are to improve control in these areas. Centrelink will continue to look for

opportunities to demonstrate its ability to meet stakeholder expectations through the provision

of risk-based assurance data.

Risk management support services continue to be provided to teams and leaders throughout

Centrelink. This is to assist with the integration of risk management principles and processes into

business practices.

Risk management challenges for 2002–03 include:

• implementing an integrated risk management framework to build on existing processes;

• using and leveraging our risk register; and

• further integrating risk management into business assurance processes.

Innovative application of risk management

Centrelink’s risk-based planning is one example of the organisation’s innovative approach to

the application of risk management principles. Strategies and actions in team-based Business

Improvement Plans are primarily based on control of risks to the Business Plan objectives. Using this

approach, teams determine the need for extra control activities based on analysis and incorporating

the context in which Business Plan objectives are achieved. As well, teams ensure continued focus

on risks and objectives through risk review processes that allocate responsibilities for review.

Ministerial directions The CSDA Act requires details of ministerial directions to the Board to be published in the

Annual Report:

• On 14 December 2001, the Minister for Family and Community Services issued a notice to

the Chairman under section 8 of the CSDA Act. This enabled Centrelink to deliver payments

on behalf of the New Zealand Ministry of Social Development to people who are victims of

domestic violence and to people who are subject to the New Zealand Police’s Witness Protection

Program where those people are relocated to Australia so as to avoid serious harm.

Audit activitiesAudit activities are the key responsibility of the Board of Management. The Board’s Audit

Committee approves an annual program of internal audits covering all aspects of Centrelink

activities. The audits are to identify signifi cant management issues and improve business operations.

Centrelink is also subject to external audit scrutiny by the Commonwealth Auditor-General.

Internal audit activityThe Chief Auditor, with Centrelink Audit staff and supported by contracted professionals,

undertakes the audits on the annual program. These assist the Board and Management to discharge

their governance responsibilities, particularly in relation to the effi cient and effective management

of business risk and resources.


34

Forty-three internal audit reports were completed in 2001–02. The audits covered fi nancial

management and accountability, corporate governance, IT environment and applications, IT

strategic management, business outcomes, CSCs and systems under development.

Centrelink Audit monitors progress in resolving internal and external audit recommendations.

A progress report is considered at Audit Committee meetings, with the Chief Auditor’s assessment

highlighting instances where it is considered management has not satisfactorily resolved or

progressed an issue. ANAO offi cers review progress against recommendations identifi ed in ANAO

reports. The Audit Committee invites relevant Centrelink National Managers to Committee meetings

when it is warranted.

During the year Centrelink Audit reviewed its audit methodology, and streamlined their approach

with further implementation planned in the new fi nancial year.

Australian National Audit Offi ce Centrelink was involved in the following audits that were issued by the ANAO during 2001–02.

Learning for Skills and Knowledge—Customer Service Offi cers, Report No. 9, tabled 16 August 2001

This audit examined key aspects of HR development in relation to Centrelink’s Customer Service

Offi cers (CSOs). The objective of the audit was to determine whether Centrelink has appropriate

systems and strategies in place to ensure CSOs had access to the skills and knowledge necessary to

meet expected levels of performance and customer service. The audit recommended Centrelink:

• develop a standardised format for developing operational learning plans;

• give priority to establishing appropriate monitoring, review and assessment mechanisms to

ensure proposed training strategies are effectively implemented and can be verifi ed as having

produced the desired outcome; and

• emphasise, learning activities, the importance of delivering technical training in a timely,

comprehensive and consistent manner.

Centrelink agreed with the recommendations.

Management of Fraud and Incorrect Payment in Centrelink, Report No. 26, tabled

14 December 2001

This audit focused on Centrelink’s arrangements for prevention, detection and treatment of

incorrect payments to customers. The ANAO recommended that:

• In collaboration with FaCS as the client agency, Centrelink measures/assesses the effects of

the various education strategies and products on the level of customer compliance.

• In negotiations with client agencies, aimed at obtaining an improved BAF, ensure all reviews

meet established standards.

• Through the BAF, provide an estimate of losses from fraud and error by income support

payment type.

• Centrelink facilitate the effective targeting of compliance areas of high risk by asking FaCS to

develop performance indicators that provide more incentive for Centrelink to reduce losses from

fraud and error as well as discovering fraud.


35

• In collaboration with its client agencies, Centrelink assess the cost effectiveness of developing

its business systems to record and report on the preventive effect of compliance activities and

their impact on voluntary disclosure. Initially, assessing if the NURSES system or its replacement

could record whether payment adjustments were attributable to voluntary disclosures due to

impending review.

Centrelink and FaCS where appropriate agreed with the recommendations.

An Analysis of the Chief Financial Offi cer Function in Commonwealth Organisations, Report No. 28,

tabled 21 December 2001

This benchmarking study evaluated the roles and functions of Chief Financial Offi cers (CFOs)

in 15 Commonwealth agencies. It also involved CFOs providing self-assessments in response

to questions about their role, responsibilities, priorities and challenges. In particular the study

sought to identify the skills, qualifi cations and experience of Commonwealth CFOs and the CFOs

perceptions of their roles, responsibilities and priorities, and how these may have changed in

relation to previous studies.

This study was undertaken in conjunction with the ANAO’s Benchmarking the Finance Function 1999–2000 report.

Centrelink noted the information provided in this report.

Benchmarking Implementation and Production Costs of Financial Management Information Systems, Report No. 36 tabled 13 March 2002

The ANAO undertook a benchmarking study within the Commonwealth budget sector to determine

and report on Financial Management Information Systems (FMIS) implementation and production

costs, and on implementation timeframes. The study provided some data on resource support, size,

volume and use of the FMIS information. The review followed on from the ANAO’s Audit Report

No. 12—Selection, Implementation and Management of Financial Management Information Systems in Commonwealth Agencies, tabled in September 2001.

Centrelink noted the fi ndings of this report.

Management of the Provision of Information to Job Seekers, Report No. 39, tabled 4 April 2002

This audit reviewed DEWR’s management of the provision of employment services information to

job seekers up to the point where job seekers are referred to the Job Network. The audit examined

the administrative effectiveness of DEWR’s management of the provision of information to job

seekers. It focused on determining what information should be provided, developing effective

means to provide information, and assuring that information is delivered effectively. Centrelink

delivers services to the unemployed and was involved in this audit.


36

The ANAO recommended:

• DEWR gain full benefi t from job seeker research by ensuring Centrelink research is considered by

the Business Partnership Review Group;

• minutes from the review group clearly state what action is to be taken on issues discussed at the

meeting, when it is to be completed and who is responsible; and

• DEWR and Centrelink in consultation with peak bodies, identify ways to increase job seekers’

awareness of their rights, and the agencies’ obligations in this respect.

Centrelink agreed with the recommendations.

Managing People for Business Outcomes, Report No. 61, tabled 25 June 2002

This benchmarking study examined how line managers plan for and manage their staff and how the

HR function supports them. Effective people management was categorised into nine practice areas,

to enable comparisons between the participating agencies. The study assessed people management

practice areas against four criteria: quality, HR integration, effectiveness and effi ciency and business

contribution.


(See also Chapter 8, page 169.)

Benchmarking the Finance Function Follow-on-Report, Report No. 62, tabled 26 June 2002

This benchmarking study reviewed the fi nance function and reported on overtime, quantitative and

qualitative data, relating to fi nance function activities operating in Commonwealth organisations.

The three-year study revealed that the majority of participating organisations have shown an

improvement in their quantitative and/or qualitative benchmark results across the range of fi nance

function activities.

The report does not provide specifi c reasons for differences in performance. However, it does

provide guidance on some of the better practices that participating organisations, and the wider

public sector may wish to adopt, or adapt to achieve improved performance in fi nance function.


Control Structures as Part of the Audit of Financial Statements of Major Commonwealth Entities for the Year ending 30 June 2002, Report No. 67, tabled 28 June 2002

This report summarises audit fi ndings relating to entity internal control structures arising from

the interim phase of the fi nancial statement audits of major Commonwealth entities for 2001–02.

Examination of these issues is designed to assess the reliance that can be placed on control

structures to produce complete, accurate and valid information for fi nancial reporting purposes.



37

OmbudsmanA valuable measure of the satisfaction of Centrelink’s customers with the service they receive is the

number and type of complaints they make to the Ombudsman’s Offi ce.

The cooperative working relationship established with the Ombudsman’s Offi ce continued during

the 2001–02 fi nancial year enabling the timely resolution of issues raised. It is worth noting that

the Ombudsman exercised discretion in 7304 issues, referring the complainant back to Centrelink,

ordinarily to a Customer Relations Unit (CRU) in 75.9 per cent of these issues. Customers’ concerns

embraced a wide range of matters including their perceptions of the fairness of legislation

governing their benefi ts and disagreement with decisions that affected them. Most complaints were

quickly resolved at the local level while a much smaller number which involved more general issues

of procedure and delivery were referred to the CEO.

The Social Support Team established within the Ombudsman’s Offi ce this year has seen an increase

in the number of Own Motion Investigations undertaken. Of the fi ve investigations commenced,

Own Motion—the use of external legal advice in relation to claims for Compensation for Detriment caused by Defective Administration (CDDA), has been completed with the fi nding that the

Ombudsman is satisfi ed that Centrelink has satisfactory procedures in place for seeking legal advice.

The advice provided indicated that the Ombudsman believes that the legal providers have a good

understanding of the difference between negligence and CDDA. The Social Support Team has also

provided comments to a review of the internal guidelines Centrelink uses in customer compensation

matters.

In 2001–02, there were 8859(a) customer contacts with the Ombudsman’s Offi ce. This represents a

decrease of 1202 on the previous year which is in keeping with decreased complaint and review

activity generally.

(a) Source: Commonwealth Ombudsman’s Offi ce.


38

Customer Relations UnitsCentrelink’s CRUs handle customer complaints, compliments, suggestions and general information

requests, with a total of 202 051 customer contacts recorded in 2001–02, compared with 231 447

in 2000–01. This indicates a decrease of 29 396 contacts. The 202 051 contacts were made up of

131 261 general enquiries as opposed to a complaint, compliment or suggestion.

A three-tier scale based on the complexity of the contact is used to classify contacts, with

complaints having to be resolved in 90 per cent of cases within the specifi ed time targets. Tier one

contacts to be resolved in two working days, tier two within fi ve working days and tier three within

10 working days (see Table 15, page 58).

Ministerial correspondenceIn 2001–02, Centrelink handled 3416 items of priority correspondence, an increase of 241

over 2000–01. This increase can be attributed to the federal election in November 2001 and

the announcement of a number of legislative changes, which are still in the process of being

implemented.

The BPA with FaCS requires Centrelink to fi nalise 90 per cent of all cases within 13 working

days, including making contact with the customer to ensure all issues have been fully addressed.

Table 6 compares the 2000–01 outcomes to 2001–02.

TABLE 6: Ministerial representations fi nalised

Financial year Completed within standard

2001–02 94.2%

2000–01 99.2%

Appeals and reviewsCentrelink undertakes reviews of decisions on entitlements of FaCS payments through Authorised

Review Offi cers (AROs). Centrelink also manages the lodgement of applications for review to the

Social Security Appeals Tribunal (SSAT) and at the Administrative Appeals Tribunal (AAT).

TABLE 7: Applications for review

Review type 2001–02 2000–01

AROs 37 699 40 820

SSAT 7 647 8 253

AAT 1 543 (1 261 lodged by customers)(282 on behalf of FaCS)

1 389 (1 200 lodged by customers)(189 on behalf of FaCS)


39

Centrelink has adapted internal timeliness performance targets for AROs measured in the Balanced

Scorecard as follows:

• 75 per cent of all ARO reviews completed within 28 days. In 2001–02, Centrelink achieved a

76 per cent completion rate.

• 95 per cent of ARO reviews where a customer has no income to be completed within 14 days,

against which we achieved an 80 per cent completion rate.

The number of requests for review received by AROs and SSAT in 2001–02 decreased in comparison

to 2000–01, while there was an increase in the number of applications for review to the AAT.

The SSAT response requirements for review are:

• Centrelink must forward to SSAT, within seven days, any application for review lodged at a

Centrelink Offi ce. This requirement was met in 85 per cent of cases (86 per cent in 2000–01).

• Centrelink is required, within 28 days of receiving an ‘appeal has been lodged’ notice from SSAT,

to submit a statement of fact detailing evidence and reasons for the decision being appealed,

which was met in 96 per cent of cases (94 per cent in 2000–01).

Section 37 of the Administrative Appeals Tribunal Act 1975 specifi es statements have to be lodged

with the Tribunal within 28 days.

• Centrelink, on behalf of the Secretary of FaCS lodged 1448 statements in 2001–02 (1300 in

2000–01).

• Centrelink met the timeliness standard in 78 per cent of cases (91 per cent in 2000–01).

TABLE 8: Appeal outcomes

Unchanged decisions Changed decisions

2001–02 2000–01 2001–02 2000–01

AROs 67.80%(25 992)

68.40% (27 848)

32.20%(12 347)

31.60% (12 886)

SSAT 66.76%(5 270)

65.40% (5 189)

33.24%(2 624)

34.60% (2 743)

AAT—Customer appeals

70.00%(799)

67.00%(915)

30.00%(344)

33.00% (447)

AAT—FaCS Secretary appeals

56.56%(112)

62.78%(140)

43.43%(86)

37.22%(83)

Note: Figures are sourced from Centrelink’s Appeals Management Information System. These fi gures differ from

those provided by the SSAT due to different methods of accounting of appeals and their outcomes.


40

Federal Court, Full Federal Court and High Court Appeals

Where the outcome of the appeal is not satisfactory to both parties, cases can be appealed in the

Federal Court. In 2001–02, there were 33 appeals to the Federal Court (18 in 2000–01). A total of

29 decisions were handed down by this court over the course of the year, with 22 favouring the

Secretary and seven favouring the customer (17 decisions handed down in 2000–01, of which

15 favoured the Secretary and two favoured the customer). These fi gures include cases which

were dismissed and those set aside.

The Full Federal Court had six appeals lodged during the 2001–02 fi nancial year (two appeals lodged

in 2000–01). There were four decisions handed down by this court over the course of the year,

all being dismissed in the favour of the Secretary (one decision handed down in 2000–01, also in

favour of the Secretary).

The High Court had three appeals lodged during the year, all by customers (no appeals in the

2000–01 year). One decision was handed down by this court over the course of the year, which

was dismissed in favour of the Secretary.

International Study ToursCentrelink also hosts an extensive program of visits by international counterparts. In 2001-02,

Centrelink received around 52 study tours and delegations from overseas countries, with particular

interest shown by the People’s Republic of China (PRC). Other countries included: Vietnam, Japan,

Mozambique, South Africa, the OECD, New Zealand (NZ), Indonesia, the United Kingdom (UK),

France, Thailand, Malaysia, the United States of America, Norway, Korea, Hong Kong, Singapore,

Sri Lanka, the Netherlands, India, Canada and Tajikistan.

The visit programs vary between one day and one week depending on the range of subjects to be

covered. Areas of common interest are service delivery, staff training and people management

issues, compliance, detection and fraud control, the balanced scorecard and our I&T capabilities.

The management and operation of our Call Centres and CSCs are also of signifi cant interest.

APPENDIX TO CHAPTER 2: CORPORATE OVERVIEW 2

41

Appendix to Chapter 2: Corporate OverviewTABLE 9: International visits

Date Delegation Areas of interest

10 July 2001 Mozambique delegation • Customer Focus• One-stop-shop approach to government payments

19 July 2001 High level delegation from the State Development Planning Commission, People’s Republic of China

• Establishing and managing Call Centres• Systems for establishing databases and efficient

delivery• Management and service delivery• Accountability, reporting, transparency• Site visits to Dickson Call Centre, Belconnen CSC and

Canberra Data Centre

23-27 July 2001 South African Department of Social Development

• Extensive program—high level meetings with Centrelink management covering the implementation of Centrelink, service delivery, how Centrelink brings in/catches new business, maintaining good relations with business partners, detection and review, Call Centres, and I&T briefings

8 August 2001 Dr Park Young-shik, Counsellor & Special Adviser to National Assembly Representative Kim Chan-woo, former Chairman of the Health and Welfare Standing Committee, Seoul

• Visit to Liverpool (Centrelink Overview, Call Centre and CSC briefing and tour)

15 August 2001 (1)20 August 2001 (2)

OECD Delegation (Employment, Labour and Social Affairs Directorate)

• Meeting representatives from Employment Services, Families, Indigenous and Social Work Services (1)

• Visit to Liverpool (Centrelink Overview, Call Centre and CSC briefing and tour) (2)

3 September 2001 Delegation from the Ministry of Labour, NZ

• Visit to Windsor CSC

5 September 2001 (1)6 September 2001 (2)

Visit by Rt Hon Alistair Darling (UK Secretary of State for Work & Pensions)

• Overview of Virtual College/Centrelink Education Network, e-Reference, Edge Project, Meeting with Sue Vardon (1)


10-20 September 2001 Visit by French Official—Eric Lanau

• Extensive program—high level meetings with Centrelink management covering service delivery, how Centrelink brings in/catches new business, maintaining good relations with business partners, service delivery in remote areas, I&T briefings

13 September 2001 Visit by Social Security Office, Thailand

• Employment Services—overview and demonstration of Sprite

• Visit to Tuggeranong CSC

17 September 2001 Employees Provident Fund of Malaysia

• Balanced Scorecard• Visit to Dickson Call Centre

17 September 2001 Delegation from the Baoshan District, Shanghai, PRC


(1) and (2) relate to number of visits.


42


18 October 2001 (1)19 October 2001 (2)

Chinese Delegation—AusAID Capacity Building Project

• Meeting with Employment Services Team (1)• Visit to Braddon CSC and Career Info Centre (1) • Visit to Liverpool (Centrelink Overview, Call Centre

and CSC briefing and tour) (2)

26 October 2001 (1)29 October 2001 (2)

Ministry of Labour and Social Security (MoLSS), PRC

• Meeting with Employment Services Team (1)• Visit to Canberra Data Centre (1)• Visit to Liverpool (Centrelink Overview, Call Centre


31 October 2001 Ms Janice Wardon, Former Deputy Commissioner —United States Social Security Administration

• Meeting with Centrelink Executives

7 November 2001 (1)14 November 2001 (2)

MoLSS, PRC—World Bank Funded Enterprise Housing & Social Security Reform Project, Social Insurance and Policy Making Training Workshop in Australia—organised by the National Graduate School of Management, Australian National University

• Meeting with Retirement Services Team (1)• Meeting with Employment Services Team (1)• Visit to Tuggeranong CSC (1)• Briefing on Fraud, Compliance and Detection (2)


State Development Planning Commission, PRC

• Meeting with Retirement Services Team (1)• Visit to Liverpool (Centrelink Overview, Call Centre

and CSC briefing and tour, focus retirement) (2)


Shanghai Municipal Labour and Social Security Bureau

• Full day visit to Liverpool Call Centre—overview of Centrelink (1)

• Visit to Canberra Data Centre (2)

4 December 2001 Chinese Bureau of Foreign Experts

• Visit to Bankstown Employment Services and Youth and Students CSCs

6 December 2001 Vietnam Social Security • Overview of Centrelink • I&T Service Delivery

5 & 7 December 2001 Norwegian Government IT Forum delegation

• I&T Overview and I&T service delivery tools (edge, e-Reference, and so on)

24 January 2002 Delegation from PRC • Delivery of Youth & Students payments

31 January 2002 Delegation from the Health and Welfare, Republic of Korea—led by Assistant Minister


1 February 2002 (1)5 February 2002 (2)

Delegation of Swedish Government Chief Information Officers


• I&T Briefings (overview of Centrelink’s I&T, internet, intranet, e-Reference, customer confirmation & Edge) (2)

7 February 2002 (1)8 February 2002 (2)

Visit by Patrick Nip, Deputy Secretary for Health and Welfare, Hong Kong and colleagues

• Overview of Centrelink (1)• Visit to Liverpool (Centrelink Overview, Call Centre




43


22 February 2002 Visit by Delegation from the Singapore Ministry of Finance —led by Deputy Secretary

• Outsourced Centrelink services

25 February 2002 to 1 March 2002

Visit by delegation from Jamsostek, Indonesia (funded by International Labour Organisation, Jakarta)

• Extensive program—high level meetings with Centrelink management covering service delivery, means testing and targeting social security benefits, how Centrelink brings in/catches new business, maintaining good relations with business partners, service delivery in remote areas, service delivery in a multicultural social security environment, 1½ days of I&T briefings, visit to Liverpool

28 February 2002 Visit by delegation from Japanese Ministry of Health, Labour and Welfare

• Visit to Moreland CSC Victoria

28 February 2002 Visit by delegation from the Korean Ministry of Health & Welfare


1 March 2002 Visit by delegation from the United States General Accounting Office

• Overview of Centrelink, discussion on efforts to integrate/join-up service delivery, efforts to improve the quality of service delivery and make it more citizen-centred; attempts to survey or measure citizen/customer satisfaction; efforts to facilitate citizen access to government services through the use of single-window portals and one-stop-shops, particularly through the use of e-Government; and visit to Tuggeranong CSC

4 – 8 March 2002 Delegation from the UK Department of Work and Pensions and the Northern Ireland Social Security Agency

• Extensive program—high level meetings with Centrelink management covering: Melbourne—visit to Windsor CSC to view and discuss employment self help area, open plan layout and reception area; visit to a Job Network Member Canberra; Executive Briefings including how Centrelink does business; staff terms and conditions; current work practices; customer focused-culture; life events, Getting it Right; channel management and internal and external marketing. Centrelink Virtual College and Centrelink Education Network, briefings on the Call Centre network; I&T overview; Edge presentation; and visit to Liverpool

12 March 2002 Visit by Madam Zhai Hongxiang, Vice Mayor of Beijing

• Visit to Tuggeranong CSC

19 March 2002 Visit by delegation from the Employment Services Corporation Association, PRC


21 March 2002 Visit by Robert Westcott, Director-General, Business Planning & Information System, UK Department of Work and Pensions

• I&T, contracts/outsourcing and visit to Belconnen CSC

26 March 2002 Visit by Dutch I&T Study Group • Overview of Centrelink, visit to Centrelink Call, I&T overview, briefings from I&T executive (including e-Government, Colframe, access and authentification and Edge)



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26 March 2002 Visit by Professors Yamamoto and Miyagawa, Japanese Centre for National University Finance

• Briefings on people management issues, financial management, balanced scorecard and meeting with CEO

26 March 2002 Visit by delegation from Sri Lanka


27 March 2002 Visit by John Reid, Performance Manager, UK Department of Work and Pensions

• Briefings on Balanced Scorecard, Call Centres, Centrelink Virtual College and Centrelink Education Network and visit to Tuggeranong CSC

5 April 2002 Visit by Peter Hughes, CEO, NZ Ministry of Social Development

• Executive briefings on service delivery, Edge, visit to Woden CSC and signing of MoU with Centrelink CEO

8 April 2002 Visit by Satish Roopa and Mildred Qokela, City Council, Potchefstroom, South Africa

• Executive briefings

9 April 2002 Delegation from the UK National Audit Office

• Electronic services for the ageing (focus)—visit meeting with Retirement Team

10 April 2002 Visit by Sharad Paware, Member of Parliament and Vice-Chairman, Government of India and delegation

• Welfare payments specific to disaster relief

11 April 2002 Delegation from Chinese Council Group

• Visit to Liverpool (Centrelink Overview, Call Centre and CSC briefing and tour, employment focus)

30 April 2002 Visit by Dan Burke, Canadian Public Servant

• Visit to and briefings on Centrelink Virtual College and Centrelink Education Network

13 May 2002 Visit by Frank De Mot (Acting Secretary-General Belgian Ministry of Home Affairs) and colleagues

• Briefing on e-Government and Centrelink databases

13 May 2002 Visit by Mr Jung-Han Lee, Deputy Director, Ministry of Labour, Korea and colleagues


21 May 2002 Visit by Beijing Women’s Federation

• Briefing on Social Work Services, Parenting Payment and visit to Woden CSC

22 May 2002 Tajikistan Public Administration Reform Study Tour

• Briefings on change management, strategic focus practices, Balanced Scorecard, meeting with CEO

24 May 2002 Hong Kong delegation • Visit to Liverpool (Centrelink Overview, Call Centre and CSC briefing and tour, focus labour market programs)

31 May 2002 (1)4 June 2002 (2)

MoLSS, PRC • I&T briefings (1)• Visit to Brisbane for overview of Centrelink,

Centrelink Call and a tour of Call Centre (2)

5 June 2002 Visit by Mr Heng, Singapore official

• Briefing from Retirement Team and visit to Tuggeranong CSC

20 June 2002 Senior Officials from Ministry of Health, PRC


24 June 2002 Delegation from State, Economic & Trade Commission, PRC




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TABLE 10: Major speeches by Centrelink Executive

Date Conference Title

Sue Vardon—CEO Centrelink

24 August 2001 Institute of Public Administration, Australia (IPAA)—Corporate Governance Building Trust and Credibility—Brisbane Queensland

’Trust us we’re from Centrelink‘

8 November 2001 South Australia Financial Counsellor’s Conference—Adelaide South Australia

’Delivering Today—Transforming Tomorrow‘

16 April 2002 Department of Defence—QUANTUM Leadership Group

’Leadership in Centrelink‘

8 March 2002 (ongoing)

Centrelink (several venues) ’Creating Centrelink—The new journey‘

Paul Hickey—Deputy CEO Business Capability

20 June 2002 French Ministry of Finance—Improving Public Performance—the articulation between different levels of administration—Paris, France

’Australia: Centrelink: A model for Horizontal and Vertical Integration‘

Graham Bashford–Deputy CEO Business

28–29 January 2002 Asia Business Forum Pty Ltd, Singapore ‘Centrelink Balanced Scorecard’

31 May 2002 IPAA Conference, Press Club, Canberra ‘Improving Government Decision Making’

Jane Treadwell—CIO Digital Business

July 2001 PSMPC Graduate Program ‘Releasing Knowledge & Managing Information in Centrelink’

October 2001 Singapore Government’s e-Government Forum, Singapore

‘The Face of Government in Australia—Centrelink’

December 2001 70 Companies ‘Briefi ng the IT Industry on Centrelink’s Digital Business Strategy—Its approach to strategic sourcing’

February 2002 National Conference on Government Portals, Canberra

‘Portals & Service Transformation—There is no wrong door’

6 March 2002 CIO 2002 Conference, Sydney ‘Information Technology as a Revenue Generator’

22 May 2002 Australian Information Industry Association ‘Strategy, Transformation, Sourcing & Relationships— Centrelink’s current & Future Directions’

June 2002 e-Government Conference, Regione Emilia, Romagna, Bologna, Italy

‘Centrelink & e-Government’

7 June 2002 Welfare Reform Consultative Forum ‘Connecting Communities’


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Commonwealth legislation affecting Centrelink

Enabling legislation

COMMONWEALTH SERVICES DELIVERY AGENCY ACT 1997

Legislation conferring functions on Centrelink

A New Tax System (Bonuses for Older Australians) Act 1999, Parts 1, 2 & 5

A New Tax System (Family Assistance) Act 1999

A New Tax System (Family Assistance) (Administration) Act 1999

A New Tax System (Family Assistance and Related Measures) Act 2000

Aged Care Act 1997

Child Care Act 1972

Child Support (Assessment) Act 1989

Child Support (Registration and Collection) Act 1988

Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997

Disability Discrimination Act 1992

Disability Services Act 1986

Employment Services Act 1994

Farm Household Support Act 1992

Gift Duty Assessment Act 1941

Health Insurance Act 1973

Hearing Services Administration Act 1997

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

National Health Act 1953

Social Security Act 1991

Social Security (Administration) Act 1999

Social Security (International Agreements) Act 1999

Social Security (Rewrite) Transition Act 1991

Student Assistance Act 1973

Veterans’ Entitlements Act 1986

Compliance legislation

Crimes Act 1914

Data-matching Program (Assistance and Tax) Act 1990

Financial accountability

A New Tax System (Goods and Services Tax) Act 1999

A New Tax System (Goods and Services Tax Transition) Act 1999

Auditor-General’s Act 1997


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Bankruptcy Act 1966

Criminal Code Act 1995

Financial Management and Accountability Act 1997

Fringe Benefi ts Tax Act 1986

Fringe Benefi ts Tax Assessment Act 1986

Lands Acquisition Act 1989

Taxation Administration Act 1953

People management

Disability Discrimination Act 1992

Human Rights and Equal Opportunity Commission Act 1986

Long Service Leave (Commonwealth Employees) Act 1976

Maternity Leave (Commonwealth Employees) Act 1973

Occupational Health and Safety (Commonwealth Employment) Act 1991

Public Employment (Consequential and Transition) Amendment Act 1999

Public Service Act 1999

Racial Discrimination Act 1975

Safety, Rehabilitation and Compensation Act 1988

Sex Discrimination Act 1984

Superannuation (Productivity Benefi t) Act 1988

Superannuation Act 1922



Workplace Relations Act 1996

Administrative law

Acts Interpretation Act 1901

Administrative Appeals Tribunal Act 1975

Administrative Decisions (Judicial Review) Act 1977

Copyright Amendment (Moral Rights) Act 2000

Federal Court of Australia Act 1976

Freedom of Information Act 1982

Judiciary Act 1903

Ombudsman Act 1976

Privacy Act 1988

General

Commonwealth Electoral Act 1918

Electronic Transactions Act 1999


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TABLE 11: Centrelink’s organisational chart—list of positions

CEO Sue Vardon

Chief Auditor Mike Goldstein

Operational and Performance Audit Andrew Cox

IT and Financial Audit Brad Clark

Strategic Planning Katrina Edwards

Chief Customer Offi cer Sheila Ross

Executive and Board Support Annette Gath

Area Managers Trish Mercer, Paul Goodwin, Lyn Agnew, Gordon Pitts, Peter Smith, Mandy Ritchie, Peter Doutre, David Walsh, Jenni Colwill, Gavin McCairns, Norman Walker, Barbara Clements, Annette Drury, David Batchelor, Mary Kosiak

General Manager Centrelink Call Christine Hagan

CIO Digital Business Jane Treadwell

Operations Eija Seittenranta

Business Delivery Lynette Seeto, Tuan Dao, Linda Argall, Helen Skrzeczek

Shared Technical Services Christine Miller, Nico Padovan, Peter Bickerton

Business and Information Protection Luke Woolmer

Business Advancement Trevor Smallwood, Kate Muir, Lesley Tannahill

Relationship and Demand Julie Fursman

Change and Integration Martin Kos, Elaine Ninham

Enterprise Architecture Helen Austin, Peter Cornish, Steve Crisp, Peter Gunning, Ken Watt

I&T Strategy Hylkia de Greve

Business Services Ian McShane

e-Business Glenn Archer

Deputy CEO Business Graham Bashford

Service Integration Shop Carolyn Hogg

Service Integration Shop Gateway Olga Fijalkowski

Business Practices Wayne Smith

Business Integration Mark Wellington

Business Transition Brian Silkstone

Community Segment Teams

Disability and Carers Peter Fisher

Youth and Students Peta Fitzgibbon

Internal Governance Trisha Moran

iness


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Families Sally Babbage

Rural and Housing Robin Salvage

Psychology Services Karen Butler

Employment Services Michelle Gunasekera

Multicultural Services Peter Rock

Social Work Services Desley Hargreaves

Retirement Jan Bush

International Services David Batchelor

Client Partnership Group

Client Partnership Teams Grant Tidswell, Margaret Browne, Brian Pacey

Business Development Unit Brian Pacey

Major Projects Group John Wadeson, Greg Divall

Community Sector Relationships Marcia Williams

Deputy CEO Business Capability Paul Hickey

People Management Carmel McGregor

Virtual College Margaret Hamilton

Business Planning Paul Conn

Financial Services Marilyn Prothero

Resource Management Karel Havlat

Business Alliance and Contracts Rod Gibson

Communication, Media and Marketing Hank Jongen

Risk and Business Assurance Helen McKenna

Detection and Review Phil Richardson

Debt Services Tony Schell

Centrelink Call Christine Hagan

Operations Graham Maloney

Future Capability Sheryl Lewin

Centrelink Call I&T (Automation) Kevin Parsons

National Manager Area Network John Regan

Property Services Colin Parker

Deputy CEO Customer Service Pat Turner

Service Improvement Team John Browne

Indigenous Services Barbara Causon

Strategic Services (Customer Service) Katrina Edwards

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