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Management and accountability

The Corporate and Business Division, the Legal Group and the Finance and Budget Group provide operational support and strategic advice to the Executive and staff on management and accountability issues.

Corporate governance

Overview

The Department has continued to strengthen its governance structures over the reporting period. This has included a greater role for the Executive, the Executive Management Group and the Audit, Risk and Evaluation Committee. This, coupled with new governance arrangements for the Department's Information Management Committee, including the introduction of project boards and project management guidelines, has led to the improved delivery of corporate services and better reporting on departmental performance to senior management. The development of the Department's new Governance Framework (see page 110) will ensure the Department achieves an appropriate balance between compliance and performance.

The Department offers governance and risk management training as part of its core training calendar and more than 100 staff attended these courses during the year.

The Department also developed a new outcome and output structure for use from 2003-04 onwards. This structure more closely reflects its activities and, in parallel, the Department has developed new performance indicators to improve its performance reporting in the future.

An independent review of the Department's Client Service Charter was completed and the new Client Service Charter was released in June 2003.

Governance Framework

The Department's Governance Framework, pictured below, strategically links its systems, structures and processes to ensure the efficient delivery of its outcomes.

The Framework's key components include effective:

  • compliance with statutory obligations, planning and policy setting, particularly risk, financial, information and people management; and
  • performance monitoring and reporting.

Governance Framework

Senior management committees

The Department's corporate committees form an important element of the Department's governance and leadership framework. The committees advise and support the Secretary and the Executive through strategic management, policy setting and assurance advice. The Executive has continued to review and improve the committees' structures and performance during the year to ensure rigorous governance systems are in place in the Department.

The Department's committee structures and people management initiatives will be further strengthened with the decision to implement a new Human Resource Management Committee and Workplace Diversity and Harassment Committee in the new financial year.

Table 11: the Department's senior management committees for 2002-03

Committee name Role Membership

Executive Group

(meets approximately every 3 weeks)

The Executive Group met for the first time on 19 August 2002 and was established by the Secretary to consider strategic managerial and operational issues. Many of the issues in this forum are then referred to the Executive Management Group for broader discussion before endorsement.

During this reporting period, the issues considered by the Executive Group included succession planning, a new outcome/output structure for the Department, new performance indicators and the revised draft Corporate Plan.

The Secretary, Helen Williams (Chair), Deputy Secretary Arts and Sport, Deputy Secretary Communications and the Chief General Manager Corporate and Business.

Executive Management Group (EMG)

(meets weekly)

EMG considers matters of corporate governance, accountability and operational effectiveness and monitors the financial performance of the departmental and administered programs. It plays a key role in the Department's strategic planning and corporate performance monitoring with all other governance committees regularly providing reports.

As well as receiving these updates throughout the year, EMG regularly discussed draft corporate documents and plans before finalisation. Issues that have policy significance for the Department are also regularly discussed (for example, the Australia-US Free Trade Agreement negotiations).

The Secretary, Helen Williams (Chair), both Deputy Secretaries, all Chief General Managers, General Counsel, Chief Financial Officer, and the Special Adviser Arts and Sport.

Audit, Risk and Evaluation Committee

(meetings held on 11 September 2002, 11 December 2002, 13 March 2003, 12 June 2003, and a special meeting was held on 26 June 2003)

The Audit, Risk and Evaluation Committee, in accordance with the FMA Act, provides independent advice to the Secretary on the Department's control frameworks, externally published financial information, and on compliance with statutory obligations. The Committee considered a range of issues during the year, including the Department's: 2002-03 Internal Audit Plan; Fraud Control Plan; 2001-02 Financial statements; and oversighted the implementation of ANAO Audit report recommendations.

The Deputy Secretary Communications, Fay Holthuyzen (Chair); Mr Peter Kennedy, External Member (Integrity Adviser, ATO); Chief General Manager, Corporate and Business Division; General Manager, ICT Innovation; Special Adviser, Arts; and the Director National Science and Technology Centre.

Representatives from the Australian National Audit Office, the Department's Internal Auditors (KPMG) and the Chief Financial Officer and General Counsel Legal Group attend Committee meetings as observers.

Workplace Consultative Committee (WCC)

(meetings held 25 February 2003 and 4 June 2003)

WCC was established under the Department's Certified Agreement as a mechanism to consult with staff and provide advice to management on workplace issues, oversight implementation of the Certified Agreement and to provide input for the Department's successor agreement.

The Committee considered a range of key issues including: the development of an Executive Level 1 leadership and management program; a report on the implementation of new travel arrangements; and options for suitable broadbanded classifications.

In addition, the Committee established two sub-committees to identify, investigate and report on productivity improvement initiatives for use in subsequent agreement making processes and to identify and report on possible work and family initiatives for implementation in the Department.

The Secretary, Helen Williams (Chair), Chief General Manager Corporate and Business, Chief Financial Officer, Senior Adviser, People Development and Management, elected staff representatives from each division, Old Parliament House and the Department's Graduate Program, and CPSU union representation.

Occupational Health and Safety (OH&S) Committee

(meetings held 30 July 2002, 27 August 2002, 26 November 2002, 17 December 2002, 4 February 2003, 11 March 2003, 9 April 2003, 2 June 2003)

The OH&S Committee reports to the WCC on the Department's progress with meeting its OH&S responsibilities. A detailed report on the Department's OH&S activities is provided at Appendix 4.

The General Manager, Research, Statistics and Technology, David Luck (Chair), Senior Adviser, People Development and Management and elected health and safety representatives from each designated work group (currently nine).

Information Management Committee (IMC)

(meetings held on 26 September 2002, 9 December 2002, 4 April 2003 and 26 June 2003. Two special meetings were also held on 30 April and 5 June 2003)

The IMC provides strategic advice to the Executive Management Group on the management of the Department's information technology needs.

The Committee considered a range of issues during the year, including: the 2003-05 ICT Strategic Plan; initiated formal ICT governance arrangements for IT related projects, including annual project bidding and quarterly reporting from project boards; commenced a review of enterprise reporting; and undertook a review of options for ICT services post Group 5 arrangements.

Chief General Manager Corporate and Business, Craddock Morton (Chair), General Manager Information, Technology and Facilities, Chief General Manager Broadcasting, General Manager Regional Communications Policy, General Manager ICT Innovation, General Manager Film and Digital Content and Secretary's Executive Officer.

HR Reference Group and Joint Management Committee

(no meetings in 2002-03 due to Review of HR Services)

Note: this group will be replaced by a new HR Management Committee, which will be established following findings of the review of HR Services.

  

Business planning

The Department's Strategic Plan for 2000-03 provides the broad strategic directions and key priorities which the Department pursued in 2002-03 to encourage the development of communications, information technology, the arts and sport in Australia and to achieve outcomes that meet the Australian Government's objectives for these sectors.

The Strategic Plan is supported by Divisional Business Plans that detail the key activities and outputs for each Division in meeting the Department's outcomes for 2002-03. The Department's Strategic and Divisional Business Plans are underpinned by the Department's performance management system, which guides the management of individual and team performance.

A Senior Executive Service planning day was held in May 2003 to consider the strategic environment and key business priorities for the next three years. Issues discussed included:

  • the impact of inter-generational demographics in the development of policy and delivery of services;
  • the challenge of retaining cultural diversity in the face of increasing pressure for globalisation;
  • the need to capitalise on the wider role of ICT as a driver of growth across the economy and Australian leadership potential in the international ICT sector; and
  • the pressure for greater accountability of Government agencies and corporations.

A new Corporate Plan for 2003-06 was developed for the Department to guide the development of business plans for 2003-04.

Audit, risk and evaluation

The Department's Audit, Risk and Evaluation Committee is responsible for advising the Secretary on the Department's audit, risk and evaluation requirements, in particular to assure the Secretary that the Department is complying with its statutory obligations. During the year, the Committee's major focus was on the establishment of improved reporting on the implementation of audit recommendations and new risk management frameworks, in particular for fraud control and business continuity. Further information on the Department's activities in the audit, risk and evaluation areas is provided below. In addition, the Committee oversighted the implementation of a number of external audit report recommendations made by the Australian National Audit Office (ANAO) - a list of the reports considered during the year is provided under External Scrutiny (see page 116).

Internal audit

The Department's internal audit services are provided by KPMG and oversighted by the Department's Audit, Risk and Evaluation Committee. Following consideration of the Department's Risk Management Plan and discussion with senior management, and in line with the Department's Strategic Audit Plan, a detailed Annual Audit Plan for 2002-03 was developed by the auditors, endorsed by the Committee and approved by the Executive Management Group.

Assignments conducted this reporting period as part of the Annual Audit Plan were:

  • Grant programs - financial profiling of expenditure;
  • Asset Management Plan; and
  • Management of contracts.

Two assignments identified in the Plan - Contractor Management and Purchasing and Delegations - were commenced this year but will not be completed until early in 2003-04. In addition, KPMG undertook a number of additional assignments during the year including a review of Networking the Nation grant performance and an audit of the Department's outsourced human resource services provider.

While a number of recommendations were made, no serious control breaches were found during the reporting period. The Department's Audit, Risk and Evaluation Committee receives a report on the implementation of internal audit recommendations on a quarterly basis.

Risk management

The Department's Risk Management Policy and Guidelines aim to ensure that the Department systematically identifies and proposes strategies to manage risk, and applies cost effective risk management practices. The Risk Management Plan for 2002-03 was developed through a comprehensive bottom-up risk assessment approach and included the addition of risk management training to the Department's compulsory training program. Risks identified included contract management (including grants), staff retention and attraction, systems and security risks and strategic and political risks.

In addition to the Risk Management Plan the Department established a Business Continuity Management Team and commenced work on the development of a Business Continuity Plan, in accordance with the ANAO's Better Practice Guide, for its main premises at 38 Sydney Avenue. The Plan will be completed in September 2003.

Fraud control

The Department is committed to effective fraud management and control and to the minimisation of fraud through the identification of risk and the development, implementation and regular review of a range of fraud prevention and detection strategies. The Department conducted a new fraud risk assessment and issued a revised Fraud Control Plan during the year to meet its obligations under the Commonwealth Fraud Control Guidelines 2002.

Ethical standards

The Department is committed to supporting and promoting the Australian Public Service (APS) Values and Code of Conduct in accordance with the Public Service Act 1999. The APS Values and Code of Conduct are integrated into the Department's governance, training and performance management processes.

In addition, the Department's compulsory training program includes courses on the APS Values and Code of Conduct, Eliminating Workplace Harassment and Capitalising on Workplace Diversity. The Department's Induction Program also includes information addressing all of these matters. In this reporting period two Induction Programs were conducted with 64 staff attending and five APS Values and Code of Conduct courses were conducted with 180 staff attending. The Australian Pubic Service Commission also conducted seminars on the APS Values and Code of Conduct for 178 departmental staff.

The Department has in place a number of policies and guidelines on a range of ethical issues from the Chief Executive Instructions to use of the Internet and ownership of shares. During the year, the Department revised its guidelines on ownership of shares by departmental officers. These guidelines assist staff in meeting their legal obligations under laws dealing with conflict of interest and the improper use of official or inside information as they relate to share ownership.

External scrutiny

The ANAO issued a number of reports in the 2002-03 financial year, which were either of specific or general interest to the Department. The Department's Audit Risk and Evaluation Committee oversights the implementation of these reports on a quarterly basis. Audits in which the Department participated were:

Report No. 27: Management of Commonwealth Guarantees, Warranties, Indemnities and Letters of Comfort (Tabled 30 January 2003)

The report recommends that those departments and agencies with guarantees, warranties, indemnities and letters of comfort (which have not already done so):

  1. maintain an appropriate register of these instruments;
  2. consider the implementation of a contract register system, which among other benefits would be an aid to effective records management of these instruments; and
  3. review their physical security measures with a view to establishing appropriate safe custody and access arrangements for the documents associated with the instruments.

The Department was one of a number of agencies audited. The Department has an appropriate register of indemnities in place and its document security system for indemnities in relation to high value art exhibitions has been cited in the report as an example of sound practice. A list of current contracts over $100 000 is regularly updated and displayed on the Internet. The Department will consider the implementation of the remaining recommendations through its 2003-04 risk management processes and in its review of its Chief Executive Instructions.

Report No. 36: Monitoring of Industry Development Commitments under the IT Outsourcing Initiative DCITA (Tabled 31March 2003)

The audit reviewed the progress in the delivery of contractual commitments for industry development for the five contracts awarded under the IT outsourcing initiative, in particular the effectiveness of the Department's monitoring arrangements.

The ANAO recommended that, to assess the implementation and effectiveness of industry development policy for major ICT contracts, the Department should enhance the data it collects from agencies by requiring details of:

  1. all ICT contracts awarded with a value of $20 million or more;
  2. small-to-medium sized enterprises participation levels committed to by the external service providers under those contracts;
  3. the categories of goods and service to be supplied under those contracts; and
  4. annual reports of achievement against the contracted SME participation levels.

The Department accepted the recommendations and will implement a new monitoring system to collect the recommended data in 2003-04.

Report No. 45: Reporting of Financial Statements and Audit Reports in Annual Reports (Tabled 4 June 2003)

This report examined the publication of financial statements and audit reports in the hardcopy and website forms of the annual reports of 117 Commonwealth reporting entities, which included the Department.

The ANAO recommended that annual reports be made available on websites as soon as possible after tabling in the Parliament, preferably within five days of tabling; a procedure for correcting errors in financial statements after receiving an audit report; ensuring that certified financial statements and audit reports are correctly replicated in annual reports; and where errors are found in the financial statements in an annual report consider taking corrective action, including notifying the responsible Minister, as appropriate. The Department is currently implementing the recommendations.

Report No. 52: Absence Management in the Australian Public Service (Tabled 20 June 2003)

The audit reviewed the management of unscheduled absence in 74 APS agencies, including the Department. The objective of the audit was to assess the extent and cost of unscheduled absence in the APS; to examine whether unscheduled absence in the APS was being managed efficiently and effectively; and to identify opportunities for improvement. The audit report listed the Department's unscheduled absence at the best practice level. The Department will continue to monitor and actively manage unscheduled absences.

Audits in which the Department has a special interest were:

  • Report No. 16: The Administration of Grants (Post Approval) in small to medium organisations (Tabled 4 November 2002)
  • Report No. 53: Business Continuity Management Follow-on Audit (tabled 23 June 2003)

Audits in which the Department had a general interest include:

  • Report No.8: The Senate Order for Departmental and Agency Contracts, September 2002 (Tabled 18 August 2002)
  • Report No. 13: Benchmarking the Internal Audit Function Follow-on Report (Tabled 23 October 2002)
  • Report No. 18: Management of Trust Monies (Tabled 27 November 2002)
  • Report No. 22: Payment of Accounts and Goods and Services Tax Administration by small Commonwealth organisations (Tabled 12 December 2002)
  • Report No. 23: Physical Security arrangements in Commonwealth Agencies (Tabled 20 December 2002)
  • Report No. 24: Energy Efficiency in Commonwealth operations - Follow-up Audit (Tabled 20 December 2002)
  • Report No. 25: Audits of the Financial Statements of Commonwealth Entities for the period ending 30 June 2002 (Tabled 23 December 2002)
  • Report No. 32: The Senate Order for Departmental and Agency Contracts, Spring 2002 Compliance (Tabled 5 March 2003)
  • Report No. 41: Annual Reporting on Ecologically Sustainable Development (Tabled 7 May 2003)
  • Report No. 50: Managing People for Business Outcomes, Year Two (Tabled 18 June 2003)
  • Report No. 54: Capitalisation of Software (Tabled 23 June 2003)
  • Report No. 60: Closing the Books (Tabled 27 June 2003)
  • Report No. 61: Control Structures as part of the Audit of Financial Statements of Major Commonwealth Entities for the year ending 30 June 2003 (Tabled 30 June 2003)

Judicial decisions and decisions of administrative tribunals affecting the operation of the Department

There were no judicial decisions or decisions of administrative tribunals affecting the operations of the Department during 2002-03.

On 14 February 2003, the High Court granted the Hurstville City Council and other local government bodies special leave to appeal the Full Federal Court decision of Telstra Corporation Limited & Ors v Hurstville City Council & Ors; Optus Vision Pty Ltd & Ors v Warringah Council & Ors (2002) FCA 385.

On 4 April 2002, the Full Court of the Federal Court allowed an appeal by Telstra Corporation Limited and Optus Vision Pty Ltd challenging decisions of various local government bodies in Sydney and Melbourne to levy rates and charges on Telstra and Optus in respect of the land or airspace occupied by their telecommunications cables.

The Court held the rates and charges had the effect of discriminating against a carrier, or carriers generally, contrary to subclause 44(1) of Schedule 3 to the Telecommunications Act 1997 and therefore to that extent were of no effect under section 109 of the Constitution. The High Court appeal from this decision is currently scheduled for hearing in early October 2003.

Commonwealth Ombudsman

The Commonwealth Ombudsman received one complaint on departmental matters during the year concerning a broadcasting issue. This complaint was from New South Wales and is due to be finalised in August 2003.

The Ombudsman made no recommendations during 2002-03 for act of grace payments.

Parliamentary committees

During 2002-03 the Department was involved in 18 Parliamentary Committee Inquires. This compares with 14 in 2001-02.

The Department coordinated the Government's response to six Parliamentary Committee Inquiry reports and provided input to a further three Government responses. The Department also made written submissions or gave evidence to a further nine Parliamentary Committee Inquiries.

Details on the Department's involvement in Parliamentary Committee Inquiries for 2002-03 are at Appendix 10.

Client Service Charter

The Department is committed to providing quality client service, and monitoring and responding to feedback from its clients. The Department's Client Service Charter was independently reviewed during the year in consultation with its stakeholders, clients and staff. The review found that the Department was delivering its services to its clients in accordance with its Charter. Nevertheless, some improvement areas were identified and the Department's Client Service Charter 2003 was released in June 2003. The Charter explains the range and standards of services the Department's clients can expect and outlines its client's rights and responsibilities and the steps that they can take if service standards are not met.

A copy of the Client Service Charter is available on the Department's website at www.dcita.gov.au or on written request from the:

Client Service Manager
Department of Communications Information Technology and the Arts
GPO Box 2154
Canberra ACT 2061

The Department has continued to measure its client's satisfaction through its annual client survey. The Department has recently surveyed a representative sample of the Department's clients to obtain feedback on the Department's service delivery. A summary of the results of the survey is provided at Table 12.

Overall, the survey indicated 98 per cent of the Department's clients rated the service of departmental staff as satisfactory to excellent. Particular areas of strength were departmental staff's courteousness, the provision of fair and professional treatment of clients and the timeliness of advice to clients.

The survey identified two specific areas, however, where the Department could improve its service:

  • consultation with clients with regard to the development and review of policy and legislation; and
  • raising the awareness of clients of the Client Service Charter (more than 80 per cent of respondents indicated that they were not aware of the Client Service Charter prior to the survey).

The Department's Executive Management Group (EMG) has considered the results of the survey and will take these into account in developing a new survey and re-examining how it is used for 2003-04.

Table 12: Outcomes of 2002-03 Client Service Charter Survey

Survey category Client charter standard Results (rated performance as satisfactory to excellent)

Communication with clients - quality

Courteousness

100%

Responsiveness

98%

Willingness to assist clients

98%

Fair and professional treatment

99%

Timely oral and written advice that is clear, concise, accurate and complete

97%

Technical/professional competence in providing advice

98%

Sensitivity to diversity issues

97%

Telephone dealings with clients

Handling of telephone calls between 9.00 am and 5.00 pm

100%

Staff identify themselves by name and/or work area

99%

Resolution of less complex inquiries over the telephone

99%

Resolution of more complex inquiries within three working days

97%

Email dealings with clients

Responding to inquiries as soon as possible

100%

Responding to more complex inquiries within three working days

97%

Written or fax inquiries

Responding to inquiries as soon as possible, or if more complex within 20 days, or if not possible a suitable timeframe provided

97%

Administration of programs

Programs, application procedures and program policy issues were publicised using a range of methods

98%

Equitable access to DCITA programs and services

99%

Fairly administered, in accordance with relevant published guidelines, criteria, regulations or legislation

96%

Payments made within four weeks of acceptance of reports, and/or in accordance with relevant deeds

98%

Development and review of policy and legislation

Consultation with interested parties as early as practicable, where appropriate

90%

Consultation designed to include those most affected by changes on policy or legislation

91%

Management of human resources - Core Department

In 2002-03, Human Resource (HR) services were provided by The Empower Group as a continuation of a three-year HR outsourcing contract, which began in September 2001. The contract with The Empower Group covers the delivery of human resource management services including recruitment planning and selection, learning and development, performance management, remuneration management and occupational health and safety management.

In October 2002, the Department commenced a formal evaluation of the outsourced HR services. KPMG was engaged to undertake the audit aspects of the evaluation. The review found that the outsourcing of HR services had not delivered all the benefits that were envisaged on entry into the contract. The recommendations are currently being considered and implemented as appropriate, including a review of requirements for the provision of outsourced HR services and undertaking a market-testing process to establish a contract for provision of services post September 2004.

In terms of the management of human resources, emphasis during this year has been on staff development, workforce planning and occupational health and safety (OH&S) management. These issues are addressed in greater detail below.

Workforce planning

The Department, along with other APS agencies, faces new challenges in continuing to deliver high-quality business outcomes. The Department's ability for continuous improvement means workforce planning is becoming an increasingly critical issue.

The Department is developing a systematic approach to workforce planning which will assist in the management of risk, attraction and retention of staff and better allocation of resources for training, development and recruitment. This work is under way and will be completed in 2003-04.

Staffing overview

At 30 June 2003, there were 607 ongoing and non-ongoing staff members. This figure represents a five per cent increase in the overall number of staff in the Department since last year's report. The variation is a combination of the finalisation of function transfers between NOIE and the Department, Machinery of Government changes relating to the transfer of the Sport functions to the Department and commencement of the Melbourne 2006 Commonwealth Games Taskforce. Additional staffing details can be found at Appendix 8.

An analysis of the Department's employment shows that:

  • the Executive Level 1 (EL1) classification grouping contains the greatest number of employees;
  • there was a slight decline in numbers of staff at the Executive Level 2 (EL2) classification;
  • the number of staff in the APS4 and APS5 classifications has increased; and
  • the turnover for the Department was 22 per cent, slightly higher than last year's figure of 19 per cent, due mainly to the function transfers outlined above.

Certified Agreement

A new Agency Agreement was developed by an Agreement Working Group and presented to staff for consideration in September 2002. Seventy one per cent of the 522 eligible voters participated in the ballot, with a 78 per cent Yes vote. The Agreement was certified by the Australian Industrial Relations Commission on 14 October 2002. The nominal expiry date of the new Agreement is 30 June 2004.

The Agreement was negotiated through a formal consultative process in line with the objective of continuing a strong commitment to involving all staff. The new Agreement provided a 3.5 per cent salary increase across all classifications on the date of certification.

The Agreement provided a further two per cent salary increase effective from 1 July 2003, with an additional two per cent salary increase available on 1 July 2003 subject to the Department achieving the four specified pre-conditions outlined below. Achievement of each pre-conditional component qualified staff for a further 0.5 per cent increase to base salary.

The full two per cent salary increase was approved for payment based on the following results:

  • Pre-condition 1 Requirement: 95 per cent of eligible staff having completed mid-cycle performance reviews by 13 December 2002. Outcome: 99.79 per cent completed by due date.
  • Pre-condition 2 Requirement: 95 per cent of eligible staff having completed end-of-cycle performance reviews by 31 May 2003. Outcome: 100 per cent completed by due date.
  • Pre-condition 3 Requirement: 95 per cent attendance at scheduled training courses by staff who nominated for such courses. Outcome: 98.51 per cent attendance rate achieved.
  • Pre-condition 4 Requirement: A demonstrable increase in the reporting of OH&S incidents and hazards. Outcome: increase in reporting.

As is the case across the APS, it is becoming increasingly difficult to identify productivity initiatives and cost savings required to fund salary increases for staff covered by Certified Agreements. To address this, the Workplace Consultative Committee has established sub-committees to:

  • identify, research and cost initiatives relating to productivity and working hours;
  • conduct a review of performance management arrangements; and
  • consider options for broadbanding.

It is hoped that initiatives identified through this process are able to be used to fund salary increases in future Agreements.

Australian Workplace Agreements

Senior Executive Service (SES)

All SES employees have remuneration arrangements agreed through an Australian Workplace Agreement (AWA).

Remuneration is determined by the Secretary having regard to individual performance and job requirements and guided by the annual Department of Employment and Workplace Relations SES Remuneration Survey. The Agreements are comprehensive and generally include performance pay, superannuation, executive vehicle, and development provisions.

Non-SES

As at 30 June 2003, there were 59 non-SES staff members on AWAs. Combined with SES staff, this represents a total of 14 per cent of staff on AWAs. The decline from last year's figure (16 per cent as at 30 June 2003) is attributable to staff transfers under Machinery of Government changes and the termination of expired AWAs which had no continuing relevance. In these cases, staff reverted to Certified Agreement provisions. The largest proportion of non-SES AWAs are at the EL2 classification. During the year, 62 per cent of EL2 staff signed onto a new collective AWA program.

Non-SES AWAs rely on the Department's Certified Agreement for general terms and conditions of employment. All non-SES AWAs include access to performance-based payments and can include individual salary or allowance and non-salary items such as information technology packages and enhanced professional development provisions. AWAs are sufficiently flexible to allow the Department to attract, retain and reward staff.

Performance payments

Performance bonus payments are only available to staff covered by AWAs who have access to a scale of payments depending on their performance assessment outcome.

Staff covered by the Department's Certified Agreement continued to have access to at-risk salary increments until 30 June 2003. The at-risk component was offered (under the terms of the Department's 2000-02 Certified Agreement) as an incentive for high performing staff at any non-SES classification. This component was not retained in the 2002-04 Agreement. However, those staff who had qualified for the at-risk component for two successive years under the 2000-02 Agreement had this allowance rolled into their base salary on 1 July 2003.

Key staff development strategies

The Department's emphasis for training and development during the reporting year was on the development and presentation of a comprehensive core training calendar for all staff and tailored Leadership programs for EL2 staff.

Four leadership programs were conducted during the year, with all EL2 staff required to attend. A further leadership development program for EL1 staff is being developed for delivery in 2003-04.

The training and development calendar for 2002-03 included a broad range of courses. These included professional development, career development skills courses and interpersonal skills development, presented as:

  • a core skills series concentrating on policy formulation, project management, contract management, corporate governance, economics for non-economists, writing skills and working with others;
  • a compulsory skills series concentrating on APS Values and the Code of Conduct, OH&S awareness, security awareness, performance management, workplace diversity, grants management and government accounting; and
  • a networking series concentrating on Executive Level and APS Level staff seminars.

A total of 122 courses were run during the year, with 1637 participants. Courses attracting the highest attendance covered a diverse range of topics including risk management, contract management, capitalising on workplace diversity, APS Values and security awareness.

Course evaluations were collected after each program. A total of 89 per cent of staff submitted evaluation forms, of which 75 per cent rated the training programs as very good to excellent.

Workplace diversity

Development of a new Workplace Diversity and Harassment Plan commenced during 2002-03 and is to be finalised in the first quarter of the new financial year.

The Department has a high ratio of female employees (60 per cent) who are well represented at senior levels. A total of 33 per cent of SES employees and 90 per cent of professional employees are female.

Of the 70 per cent of staff who volunteered diversity data, 12 per cent identified themselves as being from diverse cultural and linguistic backgrounds, one per cent as being of Aboriginal and Torres Strait Islander background and one per cent as having a disability.

During the year, the Department engaged an Indigenous cadet with the assistance of the National Indigenous Cadetship Program managed by the Department of Workplace Relations. Full details of workplace diversity statistics can be viewed in Appendix 8 - Staffing Statistics.

Management of human resources - ScreenSound Australia

2002-03 was the second year of ScreenSound Australia's Performance Management Scheme and the first year where employees' salary advancement was directly linked to assessment of their performance over the 12 month cycle. Key components of the scheme include Individual Work Plans, Personal Development Plans and a mid-term review of employees' performance. At the end of June 2003, approximately 90 per cent of the mid-term reviews had been completed.

The focus of training during the year was on the development of professional and management skills, particularly at the middle management levels. Employees participated in a number of external programs, including the Australian Public Service Commission's Senior Women in Management Program and the joint collecting institutions' Cultural Management Development and Advanced Workplace Skills Programs. As well as continuing an Indigenous cadetship, ScreenSound Australia also provided a placement for an Indigenous trainee who successfully completed a Business and Administration Certificate in conjunction with the Canberra Institute of Technology.

Negotiations for the 2003-05 Certified Agreement concluded successfully, with 98 per cent of staff who voted endorsing the Agreement. The Agreement, which incorporates a number of new measures designed to improve organisational performance and flexibility, was certified by the Australian Industrial Relations Commission on 6 March 2003.

Management of human resources - Questacon

As part of the Building an Even Better Questacon framework, Questacon continued to refine its People and Business Performance Management scheme and its human resource development plan this reporting period. The performance management scheme articulates Questacon's key organisational values and skills and informs individual work plans and performance indicators which are reviewed every six months. The human resource development plan, known as Developing Q People, comprises individual career development and corporate training and development plans.

Information technology

The Department's Information Technology and Communication services were provided by Telstra Enterprise Services (TES) under the Group 5 Agreement for IT&T Services and Industry Development. On 4 June 2002, Telstra announced the planned integration of TES into Telstra. A revised Contract Deed of Performance, which commenced on 20 December 2002, was developed for the Group 5 contract to reflect the changed operational environment and, in particular, to strengthen the confidentiality and security provisions.

The Group 5 Contract with TES expires on 30 June 2004 and the Department has been examining its options in line with current requirements and in the context of the recommendations of the Humphry Review. The outcome of this examination was a decision to market test these services on a 'select sourcing' basis. An open Request for Tender (RFT) for the IT support packages was released on 12 May 2003. A second restricted tender for a Voice Services package was issued on 12 May to signatories of the Whole of Government Telecommunications Agreement (WOGTA) that supply such services. Both RFTs closed on Monday 16 June and evaluation of the tenders is currently underway.

A new departmental website was launched on 15 July 2002 following a protracted development period since 2000. Due to significant increases in the project's budget and delivery timeframe, an internal review of the project completed in October 2001 had highlighted project problems stemming from poor project management and governance arrangements and over ambitious expectations. Revised IT project management arrangements were implemented in March 2002 to ensure that an incident of this nature does not recur.

A new IT Strategic Plan for the period 2003-05 was approved by the EMG in May 2003, with an emphasis on consolidation of services and systems, building on the initiatives of the past three years, and on ensuring the cost-effectiveness and value for money of the Department's information and communication technology processes and investments.

Legal services

During the year, internal legal advice for the Department was provided by the Legal Group and supplemented by advice from external sources, predominantly from the Australian Government Solicitor. The Contracts Unit within the Legal Group provided procedural advice relating to the calling of tenders and contract documents used by the Department and coordinated the Department's reporting on contracts to meet various accountability requirements.

The Legal Group also performed a departmental coordination and liaison role in relation to legislation bids, regulation impact statements, Freedom of Information (FOI) requests and privacy issues. A total of 12 FOI requests were processed by Legal Group during the year.

During the year, the Legal Group assisted in preparing ten Bills which were passed or introduced and 12 Statutory Rules which were made during the year. The Legal Group drafted 13 other statutory instruments.

Major legislation requiring significant input from Legal Group during the year included the following:

Telstra (Transition to Full Private Ownership) Bill 2003

This Bill provides for the sale of the remaining Government shareholding in Telstra.

Telecommunications Competition Act 2002

This Act implements the Government's response to the Productivity Commission's Inquiry Report on Telecommunications Competition Regulation and aims to increase the level of competition and investment in the telecommunications market.

Australian Postal Corporation Amendment Bill 2003

This Bill addresses various regulatory and consumer issues relating to Australia Post.

Communications Legislation Amendment Bill (No. 2) 2002

This Bill aims to enhance the security of Australia's telecommunications services and provides for improved arrangements for call data disclosure and interception services.

Broadcasting Services Amendment (Media Ownership) Bill 2002

This Bill provides for changes to the current restrictions on foreign ownership and cross media interests affecting broadcasting services.

Communications Legislation Amendment Bill (No. 3) 2002

This Bill includes amendments to the digital television regime (including in relation to underserved markets and HDTV quotas).

Australian Film Commission Amendment Act 2003

This Act amended the powers and functions of the Australian Film Commission (AFC) and its CEO to facilitate the transfer of ScreenSound Australia from the Department to the AFC. Instruments made under this Act transferred the relevant ScreenSound Australia assets to the AFC.

Telstra Carrier Charges - Price Control Arrangements, Notification and Disallowance Determination No. 1 of 2002

This instrument imposes price control arrangements in relation to certain Telstra services from 1 July 2002 to 30 June 2005.

Carrier Licence Conditions (Telstra Corporation Limited) Declaration 1997 (Amendment No. 4 of 2002)

This instrument establishes the Network Reliability Framework to improve the reliability of Telstra's telephone services.

Australian Competition and Consumer Commission (Accounting Separation - Telstra Corporation Limited) Direction (No. 1) 2003

This instrument seeks to encourage a more transparent market for telecommunications services by requiring enhanced accounting separation of Telstra's wholesale and retail operations.

During the year, the EMG approved revised instructions on obtaining legal advice and other legal services. These identify situations where legal assistance will be required. In addition, general administration of the Chief Executive Instructions (CEIs) was transferred from the Corporate and Business area to Legal Group. Legal Group is managing the process for the review of the CEIs, which is currently underway.

Legal Group also took an active role in the review of the Risk Management and Fraud Control Plans during the year.

Financial management

As a result of an internal departmental structure change during the year, the Chief Financial Officer (CFO) position now reports directly to the Secretary, further emphasising the importance of financial and budgetary management in the Department. The CFO is a member of the Department's EMG.

The Department has continued to make progress in enhancing its financial and budgetary management practices, processes and procedures during the year.

The primary focus during 2002-03 for the Finance and Budgets Group has been on business improvements. In particular, the focus has been on improved internal reporting which captures monthly information at division and output and outcome level; improved controls and processes including accounts processing; and end of month and year processes including preparation of annual financial statements, which have been recognised by ANAO as a clear improvement. A revision and update of the Department's financial delegations was undertaken during the year to ensure that they continue to meet financial environment changes and internal departmental requirements.

The Department has also incorporated the internal budget into the overall business planning. The development and refinement of the internal monthly reports supplied to the EMG, including the introduction of forecast reporting, has resulted in closer scrutiny of internal budget performance.

Specific in house coordinated departmental training programs have been introduced, which are intended to raise the skills level of departmental staff through improved internal financial and budgetary awareness.

The Department's reporting of special accounts in the Portfolio Budget Statement (PBS) was used by the Department of Finance and Administration in developing enhanced reporting for special accounts in the 2003-04 PBS guidance for agencies.

The Department has been actively working with the Department of Finance and Administration in preparing for the implementation of recommendations resulting from the Budget Estimates and Framework Review.

The Department received an unqualified audit report in respect of its financial statements for the 2001-02 financial year.

The Department's revenue for 2002-03 totalled $174.499 million. Revenue from Government accounted for 84.91 per cent ($148.134 million), sales of goods and services accounted for 8.3 per cent ($14.484 million), other revenue accounted for 6.13 per cent ($10.713 million), interest accounted for 0.63 per cent ($1.114 million), and revenue from disposal of assets accounted for remaining 0.03 per cent ($0.54 million). At the end of 2002--03, the Department recorded a $9.671 million surplus after taking into account the capital user charge. This surplus is predominantly related to commitments for the following year.

Purchasing

The Department purchasing processes are consistent with the requirements of the Commonwealth Procurement Guidelines issued by the Department of Finance and Administration and amended from time to time. The Department promotes small-to-medium enterprises (SMEs) as well as Australian and New Zealand supplier participation in its procurement practices.

Asset management

Old Parliament House and the National Portrait Gallery

Asset management is integral to the operation of Old Parliament House (OPH) and the National Portrait Gallery (NPG).

Home of the Commonwealth Parliament from 1927 until 1988, OPH is of national historic, social and architectural significance. In recognition of its heritage significance OPH is listed on the Register of the National Estate. The building's net book value is $32 million, with a replacement cost of $89 million. OPH houses significant collections of furniture associated with the building and its history and the net book value is $3.4 million. Most of the collection is housed on-site with those items not currently on display or in use in public areas of the building being kept in standard storage conditions.

The building is conserved in accordance with the OPH Conservation Management Plan 2000. This plan ensures that the heritage values of the building are preserved while the public is also able to access the site. OPH is also being refurbished and maintained in accordance with the long-term Master Building Plan, Fire Safety Strategy and Services Strategies.

The NPG, housed within OPH, currently has a permanent collection with a net book value of $10.6 million. The collection is housed on-site with those items not currently on display housed in specially controlled climate and humidity storage facilities.

Questacon

As the annual number of visitors to Questacon continues to increase, asset management plays an increasingly vital role within the management of the Centre. Questacon manages an asset base of $38 million. Lifecycle maintenance cycles are programmed on a 15-year projected cycle with the focus on the current five-year period 2001-06. The ongoing asset replacement plan is reviewed annually to keep pace with technological and environmental advancements as well as the operational requirements of the Centre.

During 2002-03, Questacon embarked on a comprehensive program of visitor facility refurbishments including the toilet facilities and parent rooms. During the year, Questacon leased 2000 square metres of additional workshop and office administration space located in Fyshwick ACT. By moving the Design and Workshop teams to the new leased premises in December 2002, several new function rooms and visitor areas were created as part of a major accommodation project. The need for additional space within the Centre at Parkes for both Questacon visitors and staff places increased pressure on the public areas within the building.

The high number of visitors to Questacon and the increased operational hours of the Centre have resulted in a corresponding increase in the usage rates of the public areas. Facilities management programs have included the recent tendering of facility maintenance services including security, cleaning, building controls and lighting, and heating, ventilation and air conditioning.

As part of Questacon's ongoing commitment to environmental sustainability, and to reduce the effect on the environment as a result of the Centre's operations, Questacon has commenced formulating an Environmental Management System (EMS). The EMS will be to International Quality Standard 14002, in line with the Commonwealth Government's Energy Initiatives.

ScreenSound Australia

ScreenSound Australia, the National Screen and Sound Archive, is custodian of Australia's national audiovisual collection. This collection has more than one million items and as at 30 June 2003 had a value of $175 million. The collection is housed in specialist climate and humidity controlled storage facilities in Mitchell. Two of these facilities are owned by ScreenSound Australia and two are leased.

ScreenSound Australia monitors the collection continuously in accordance with a collection assessment and monitoring program that is based on externally validated statistical methodology. The results of this monitoring are used to determine asset preservation priorities. ScreenSound Australia's preservation, collections, corporate and public program activities are located in a heritage listed art deco building at Acton, which is open to the public for research, presentations, film screenings and exhibitions.

The land and building are valued at $29 million and are maintained in accordance with a conservation management plan. This plan ensures that the heritage value of, and public access to, the building are maintained.

Artbank

Artbank's assets are predominantly artworks, consisting of nearly 9000 works valued at $19.4 million. Artbank operates from leased premises in Rosebery, New South Wales.

As the national art rental scheme, over 60 per cent of Artbank's collection is on display with clients throughout Australia and overseas at Australian Embassies and High Commissions. The Artbank collection is managed through an ongoing conservation strategy.

Consultants

The Department's policies on selection and engagement of consultants are based on the Commonwealth Procurement Guidelines, the Department's Chief Executive Instructions, and various other Australian Government policies. The Department gives full weight to all Australian Government legislation, policies and guidelines relating to procurement.

The Department's internal policies are flexible, and are based on a relatively decentralised model. Greater responsibility and accountability is achieved by giving project officers responsibility for developing requirements and managing contracts. Important checking and control mechanisms are in place, however, as a senior officer must approve any consultancy contract, and the Legal and Contracts area provides advisory and administrative support to project officers who are involved in contracting.

The Department's selection procedures are based on contract value, market conditions, and the nature of any given requirement. Typically, contracts of any significant value are offered publicly, being advertised in the press, the Commonwealth Electronic Tender system website and/or the Purchasing and Disposals Gazette. Consultancies of a lower value are routinely arranged through restricted tender processes. Where market conditions or other special circumstances make it appropriate, the Department may enter into consultancies without competitive tendering.

Consultants are engaged for a wide variety of purposes in the Department. They are typically engaged to provide complex professional services that the Department does not have the ability to perform in-house. These services include matters such as technical advice, financial advice and specialised information technology services.

For the 2002-03 financial year, the Department administered a total of 124 consultancy contracts incurring a total expenditure for the year of $9 109 439.80.

A list of all consultancy contracts let to the value of $10 000 or more (inclusive of GST) is included in this Report at Appendix 3.

Competitive tendering and contracting

In line with the Government's Competitive Tendering and Contracting initiative, contracted service providers deliver a range of Departmental services. The Department's objectives in outsourcing such services comply with the principles specified in the Commonwealth Procurement Guidelines ensuring value for money outcomes, encouraging innovation and improving accountability and performance in the delivery process.

Currently, the Department has in place contracts with:

  • The Empower Group to deliver human resource management services including recruitment planning and selection, staff learning and development, performance management and remuneration management. This contract, Human Resources Outsourcing Agreement between DCITA and The Empower Group Pty Ltd, runs until 24 September 2004;
  • Fujitsu Australia Ltd to redevelop and maintain the Department's website. This contract, DCITA Website Redevelopment and Facilities Provision, runs until 29 December 2003;
  • Telstra Enterprise Services (formerly Advantra Pty Ltd) to deliver information technology and telecommunications services. This contract, Group 5 Agreement for IT&T Services and Industry Development, runs until June 2004; and
  • Recall Total Information Management to deliver records management and archiving services. This contract, Information Management Services for the Ongoing Sentencing, Retention and Disposal of DCITA Portfolio Records, runs until 31 December 2003.
 
Document ID: 12424 | Last modified: 6 February 2008, 9:43am