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Management and accountability

The Executive Management Group (EMG) has responsibility for management and accountability within the Department. The EMG is supported by a number of senior management committees and three key corporate areas: the Corporate and Business Division, the Legal Group, and the Finance and Budgets Group. These three areas provide operational support and strategic advice to the Executive and to staff on issues such as procurement, human resources, governance, asset management, public relations, whole-of-government policy coordination, parliamentary liaison, departmental resources, freedom of information, records management and information technology.

Corporate governance

Overview

Following an internal review in 2002-03 of governance arrangements, including the release of a governance framework and improved governance committee structures, the Department has put considerable work into further improving its performance in this important area. The major focus during the year was the development and release of key governance documents including a new Corporate Plan, Fraud Control Plan, revised Risk Management Policy and Guidelines, and a Business Continuity Plan. Revised Workplace Diversity and Harassment Plans will be finalised for release early in 2004-05.

A stocktake of the Department's intellectual property was also completed during the year. This stocktake forms the first step towards developing a departmental Intellectual Property policy.

In addition, the EMG has overseen the transition to new information technology and communication providers and has established a Human Resource Management Committee. This Committee, coupled with the Department's Workplace Consultative Committee, provides an improved framework for the management of the Department's most important resource, its people. The release of the Department's People Management Plan and a new human resource management model in 2004-05 will further strengthen the gains made this year and increase the focus on staff performance and development.

The Department has also continued to improve its systems for performance reporting and this year's annual report is the first under a revised outcome, output and performance indicator structure. While some problems were experienced in the preparation for the new reporting format, overall the Department has adapted well to these reporting requirements. The introduction of workforce statistic reports, revised evaluation planning, non-financial performance reporting and a new organisational survey next year, combined with the Department's existing monthly budget reporting and annual client service survey, will provide a more holistic approach to performance reporting.

Senior management committees

The Department's corporate committees are an important element of its governance and leadership framework. The committees advise and support the Secretary and the Executive through strategic management, policy setting and assurance that the Department's control mechanisms are working effectively. 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.

A system of committee self-assessment was piloted towards the end of the year and will be fully implemented in 2004-05. The results are reported to the Secretary, providing an important means of assurance to the Secretary that the committee structures are operating effectively. This self-assessment provides a continuous improvement process for each committee.

The Human Resource Management Committee was established during the year. Its first task was the oversight of the introduction of a new human resource delivery model for the Department.

Department's Senior Executive Members of the Department's Senior Executive Service.

Table 3.1 Senior management committees

Committee name

Role

Membership

Executive Committee

(meets approx every three weeks)

The Executive Committee was established by the Secretary to consider high-level strategic, managerial and operational issues.

The issues considered by the Executive Committee included implementation of the new Australian Government branding requirements, consideration of whole-of-government priorities (in the context of the recently released Management Advisory Committee report) and issues surrounding the integration of ATSIS staff transferring to the Department. Issues that are discussed on an ongoing basis in this forum include succession planning and staff movements, corporate planning directions, training and development opportunities for staff, and priority setting.

The Secretary (Chair), Deputy Secretaries and Chief Operating Officer.

Executive Management Group (EMG)

(meets weekly)

EMG considers matters of corporate governance, accountability and operational effectiveness and monitors the financial performance of 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 to EMG.

As well as receiving these updates throughout the year, EMG considered several draft corporate documents and plans before finalisation. In addition, issues that had policy significance for the Department were discussed on an ongoing basis (for example, the AUSFTA negotiations and issues surrounding the integration of ATSIS staff transferring to the Department).

The Secretary (Chair), Deputy Secretaries, All Chief General Managers, General Counsel, Chief Financial Officer, Chief Operating Officer and Special Adviser, Collections and Governance.

Audit, Risk and Evaluation Committee

(meetings held on 11 September 2003, 11 December 2003, 11 March 2004, 10 June 2004, and a special meeting was held on 27 August 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 2004-05 Internal Audit Plan and Risk Plan; the 2002-03 Financial statements; and oversaw the implementation of ANAO and Internal Audit report recommendations.

The Deputy Secretary Communications (Chair), Mr Peter Kennedy, External Member (Integrity Adviser, ATO), Chief Operating Officer, General Manager, ICT Innovation, Special Adviser, Collections and Governance, and the General Manager Public Broadcasting.

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


Table 3.1 Senior management committees (continues)

Committee name

Role

Membership

Workplace Consultative Committee (WCC)

(meetings held on 2 September 2003, 25 November 2003, 9 March 2004, and 23 June 2004)

The 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 issues including the establishment of sub-committees to address a broadbanding system for the Department and initiatives developed by the Productivity Improvements Sub-Committee.

In addition, briefings were provided on a number of key issues, including OH&S workplace inspections; the Department's first Health and Safety week; the HR services tender; capability of the HR system; the certified agreement negotiations; car parking; OPH and NPG employment conditions; and learning and development issues.

The Secretary (Chair), Chief Operating Officer, Chief Financial Officer, Manager HR Strategy, elected staff representatives from each division, Old Parliament House (OPH) and the Department's Graduate Program, and CPSU union representation.

Occupational Health and Safety (OH&S) Committee

(meetings held on 1 July 2003, 5 August 2003, 8 September 2003, 21 October 2003, 8 December 2003, 2 March 2004, and 22 June 2004)

The OH&S Committee reports to the WCC on the Department's progress in meeting its OH&S responsibilities.

The Committee discussed a range of issues including the conduct of the Department's inaugural Health Week; development of the OH&S risk management strategy for inclusion in the Risk Management Plan; issues associated with the refurbishment of departmental premises; and development of OH&S guides for visitors to the Department's premises.

The committee also reviewed and endorsed the following OH&S policies: First Aid; Fitness for Continued Duty; Eyesight Testing for Visually Demanding Tasks; and Occupational Rehabilitation.

The General Manager, Arts Support & M2006 Taskforce (Chair), Manager HR Strategy and elected health and safety representatives from each designated work group (currently ten).


Table 3.1 Senior management committees (continues)

Committee name

Role

Membership

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)

IMC provides strategic advice to EMG 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; initiation of formal ICT governance arrangements for IT related projects, including annual project bidding and quarterly reporting from project boards; a review of options for ICT services post Group 5 arrangements; and oversight of the transition of ICT services to Kaz Technology Services and Macquarie Corporate Telecommunications.

Chief Operating Officer, (Chair), General Manager Information Technology and Facilities, Chief General Manager Broadcasting, Chief Financial Officer, General Manager Regional Communications Policy, General Manager ICT Innovation, General Manager Film and Digital Content, General Manager Strategy, the Executive Coordinator, and Senior Adviser Legal Group.

Human Resource Management Committee (HRMC)

(meetings held on 30 October 2003, 4 December 2004, 25 February 2004, 31 March 2004, and 21 May 2004).

The HRMC was established to provide advice and strategic direction in the management of the Department's human resource needs.

The HRMC guides development of the HR Strategic Plan and is responsible for reporting to the Secretary and EMG on the management of the HR Strategic Plan.

The major issue considered since the committee's establishment was the review of options for HR services post the current outsourcing contract with The Empower Group and the subsequent approval of a new HR sourcing model.

The Chief Operating Officer, (Chair), Chief General Manager Telecommunications, Chief General Manager Arts and Sport, General Counsel, General Manager Digital Broadcasting & Spectrum Management, General Manager Regional Communications Initiatives, General Manager Access, Manager HR Strategy, Manager Corporate Finance, and the Executive Coordinator.

Corporate planning

The Department's Corporate Plan 2003-06 sets out the broad strategic direction and key priorities which the Department pursued in 2003-04 to encourage the continued development of world-class Australian communications, information technology, cultural, sports and information economy sectors, to achieve the outcomes set by the Government.

The Corporate Plan is supported by Business Plans that detail the key activities and outputs for each division in order to meet the Department's outcomes for 2003-04. These plans are underpinned by the Department's performance management system, which guides the management of both individual and team performance.

A Senior Executive Service (SES) planning day was held in April 2004 to consider the strategic environment and key business priorities for 2004-05. Issues discussed included:

  • the implementation of portfolio aspects of the AUSFTA;
  • the integration of language, cultural, broadcasting and sport functions from ATSIS into the Department;
  • the integration of the Information Economy components of the former NOIE; and
  • whole-of-government priority issues.

Revised 2004-05 key priorities were developed following the planning day and these provided the strategic framework for the development of the 2004-05 Divisional Business Plans and individual performance agreements.

Audit, risk and evaluation

The Audit, Risk and Evaluation Committee's major focus during the year was on improved security reporting and the establishment of a business continuity regime within the Department. A revised Risk Management Policy and Guidelines were released and six-monthly reporting on the implementation of the Department's Fraud Control Plan was introduced. The committee has also continued to play an important role in overseeing the implementation of both internal and external audit report recommendations. The committee meets quarterly and provides a report to both the Secretary and the EMG following each meeting.

Internal audit

The Department's internal audit services are provided by KPMG and monitored 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 2003-04 was developed by KPMG, endorsed by the committee and approved by the EMG.

Assignments conducted during this reporting period were:

  • a review of the Department's readiness to report against its new performance indicators;
  • a review of the Department's records management practices which is to be completed in early 2004-05;
  • better practice advice in relation to the development of the Department's new Chief Executive Instructions (CEIs); and
  • a review of the Department's month end budget reporting processes.

The Internal Auditors also undertook a number of additional assignments during the year including, as probity adviser, in relation to the Department's remodelling of its SAP system and Chart of Accounts and, as better practice adviser, in relation to the development of the Department's grant management guidelines.

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 actively manages the implementation of all internal audit recommendations and receives a quarterly status report.

Risk management

The Department's Risk Management Policy and Guidelines aim to ensure that the Department identifies and develops strategies to manage risk, and applies cost effective risk management practices. The Risk Management Plan for 2003-04 was developed through a comprehensive bottom-up risk assessment approach and was approved by EMG.

In addition, the Department finalised its Business Continuity Plan for its premises at 38 Sydney Avenue, 44 Sydney Avenue and 28 National Circuit in Forrest, ACT.

The Department participated in the Comcover Benchmarking Survey. The results indicated that the Department was above the average of those agencies surveyed in its implementation of risk, but could improve in relation to insurance risk transfer, awareness raising and performance measurement of its risk function. As a result, the Department commissioned a risk and insurance gap analysis and has developed an action plan for implementation in 2004-05.

Fraud control

The Department continued to monitor and report on the implementation of the Fraud Control Plan in accordance with the Commonwealth Fraud Control Guidelines 2002, through the Audit, Risk and Evaluation Committee. During the year a Fraud pamphlet was provided to all staff and two Fraud Awareness courses were conducted. The Department will be conducting a new fraud assessment and developing a new Fraud Control Plan in 2004-05.

Evaluation

During the year EMG approved the implementation of a system to identify, conduct, monitor and report on evaluations within the Department. Under the new arrangements, an evaluation plan will be developed to ensure regular evaluations of key programs are conducted over a three-year period. The evaluation plan will be implemented in 2004-05 and the Department's Audit, Risk and Evaluation Committee will monitor implementation of the plan.

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 continue to be integrated into the Department's Corporate Plan, governance framework and training, including the induction program and performance management processes.

The Department's compulsory training program includes courses on the APS Values and Code of Conduct, Eliminating Workplace Harassment, and Capitalising on Workplace Diversity. In this reporting period two induction programs were conducted with 58 staff attending, two Governance courses were conducted with 24 staff attending, two APS Values and Code of Conduct courses were conducted with 16 staff attending, and two Workplace Diversity and three Workplace Harassment courses were conducted with 19 and 39 staff attending respectively. In addition, a copy of the Australian Public Service Commission's APS Values and Code of Conduct in Practice - a Guide to Official Conduct for APS Employees and Agency Heads publication was distributed to all senior managers.

During the year the Department commenced a process to review its Chief Executive Instructions (CEIs) which provide guidance on a range of ethical issues. This will include revised procedural rules on accepting gifts, official hospitality, and on the use of information technology. The revised CEIs and associated procedural rules will be completed in 2004-05.

External scrutiny

The Australian National Audit Office (ANAO) issued a number of reports in 2003-04, some of which involved the Department directly, and others which had a special or general interest for the Department. The Audit, Risk and Evaluation Committee actively oversees the Department's implementation of these reports and receives progress reports on a quarterly basis. The audits that the Department participated in directly during 2003-04 are set out below.

Report No. 11: Annual Performance Reporting

Tabled: 4 November 2003

The Department was one of five agencies audited. The report made two recommendations as set out below:

  • Agencies improve accountability and transparency in annual reports by:
    - using intermediate outcomes and/or explanatory text to better specify their own influence on, and contribution to, broadly stated or shared outcomes;
    - addressing all aspects of performance; and
    - including performance indicators that have targets and/or other bases for comparison.
  • To enable Parliamentarians and other stakeholders to interpret and fully understand agency results in agency annual reports, agencies should:
    - provide an analysis of performance, rather than list activities;
    - assess performance against targets or other bases for comparison;
    - provide and review trends in non-financial and financial performance; and
    - use the results of evaluation where appropriate to provide performance information on quality and effectiveness.

The Department agreed with both recommendations and this is the first annual report under the Department's revised outcome and output structure, and performance indicators, which includes bases of comparison against the quantitative indicators. The Department has established a new performance reporting area within its Corporate Governance section to assist continuous improvement in all areas of performance reporting.

Report No. 12: The Administration of Telecommunications Grants

Tabled: 5 November 2003

The audit was a cross-agency audit of the Department and the Department of Transport and Regional Services (DOTARS). The report made four recommendations but only one related to the Department. Recommendation 4 stated 'The ANAO recommends that both DCITA and DOTARS review the content of annual reports with a view to improving the quality of reporting on program outcomes, efficiency of program delivery and discussion on trends, risks and challenges facing the various programs'. The Department acknowledged that the quality of its reporting could be improved and, as discussed under Audit Report No. 11, has addressed this issue by undertaking a major review of its outcome and output structure and related performance indicators.

Report No. 14: Survey of Fraud Control Arrangements in APS Agencies

Tabled: 28 November 2003

The Department participated in the survey which produced findings but made no specific recommendations relating to the Department. The Department is reviewing its current Fraud Control arrangements in light of these findings.

Report No. 31: The Senate Order for Departmental and Agency Contracts

Tabled: 20 February 2004

The Department was one of the agencies audited under this round of the Senate Order. Although the report did not make any specific recommendations it noted that:

  • there is scope for many agencies to improve the presentation of their Internet listings;
  • agencies should update their chief executive instructions or procurement guidelines to reflect the requirements of the new accountability environment - the report noted that the Department had updated its policy documents to reflect these requirements during the audit; and
  • agencies need to review their current guidance for contracting templates so that they reflect the requirements of the Commonwealth Procurement Guidelines, Finance guidance and the Senate Order.

The Department has implemented all of these suggestions.

Report No. 57: Administration of Freedom of Information Requests

Tabled: 24 June 2004

The Department was one of the agencies audited. The report has made nine recommendations, with four of these directed at the Attorney-General's Department. The Department has either already satisfied, or has now implemented, four of the remaining five recommendations. The Department considers that the objectives of the remaining recommendation (relating to training) are achieved in the Department without implementing the letter of that recommendation.

Report No. 58: Control Structures as part of the Audit of Financial Statements of Major Australian Government Entities for the Year Ending 30 June 2004

Tabled: 30 June 2004

The Department was one of the agencies discussed in the audit report, with favourable comments made about the Department's Corporate Governance arrangements, financial reporting and responsiveness to ANAO recommendations. The report did make some suggestions relating to the handling of IT access and financial management changes, which have been addressed through the SAP and Chart of Accounts remodelling project to be released in early July 2004.

Audits in which the Department has a special interest are listed below.

Report No. 3: Management of Risk and Insurance

Tabled: 27 August 2003

The Department is implementing the recommendations of this report.

Report No. 7: Recordkeeping in Large Commonwealth Organisations

Tabled: 24 September 2003

The Department is implementing the recommendations of this report.

Report No 19: Property Management

Tabled: 17 December 2003

The Department is implementing the recommendations of this report.

Report No. 24: Agency Management of Special Accounts

Tabled: 31 January 2004

The Department is implementing the recommendations of this report.

Report No. 25: Intellectual Property Policies and Practices in Commonwealth Agencies

Tabled: 5 February 2004

The Department has a twofold responsibility in relation to the recommendations of this audit. The first is because of its policy responsibilities for Intellectual Property, particularly copyright. The Department, in conjunction with the Attorney-General's Department and IP Australia will be responsible for implementing the whole-of-government guidelines on Intellectual Property for the Commonwealth (recommendation 2) and as a creator and user of intellectual property the Department is implementing recommendation 1 of the report - the development of an Intellectual Property Policy.

Report No. 30: Quality Internet Services for Government Clients - Monitoring and Evaluation by Government Agencies

Tabled: 20 February 2004

The Department is implementing the recommendations of this report.

Report No. 35: Compensation Payment and Debt Relief in Special Circumstances

Tabled: 24 March 2004

The Department is implementing the recommendations of this report.

Report No. 38: Corporate Governance in the Australian Broadcasting Corporation

Tabled: 31 March 2004

The Department was not included in the audit. The Department's interest in this audit is because the ABC is a portfolio agency.

Report No. 42: Financial Delegations for the Expenditure of Public Monies in FMA Agencies

Tabled: 16 April 2004

The Department is implementing the recommendations of the report.

Report No. 49: The Use and Management of HRIS in the Australian Public Service

Tabled: 31 May 2004

The Department is taking into consideration the recommendations of the audit in relation to the implementation of its new human resource model and related systems.

Report No. 55: Management of Protective Security

Tabled: 23 June 2004

The recommendations will be considered at the September 2004 Audit, Risk and Evaluation Committee meeting.

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

There were no judicial decisions or decisions of administrative tribunals that had a significant impact on the operations of the Department during 2003-04. However, in two High Court matters, the validity of certain provisions of portfolio legislation was considered and upheld.

In Broadcast Australia Pty Ltd v Minister Assisting the Minister for Natural Resources (NSW) [2004] HCA 4, the High Court confirmed the intended operation of provisions of the National Transmission Network Sale Act 1998. As part of the network sale process, in 1999 the Minister for Finance and Administration made a declaration under that Act which transferred all property rights held by the Commonwealth relating to the national television transmission network to the buyer of the network. The Court held that this declaration was effective in transferring the Commonwealth's rights under a permissive occupancy granted to the Commonwealth in 1961 by the relevant NSW Minister under NSW legislation. The condition of the NSW grant requiring the tenant to obtain the consent of the NSW Minister before parting with possession of the land could have no effect because of section 109 of the Constitution.

In Bayside City Council and Others v Telstra and Others [2004] HCA 19, the High Court held that various local government bodies in Sydney and Melbourne had no power to levy rates and charges on Telstra and Optus in respect of the land or airspace occupied by their telecommunications cables. This was because the rates and charges discriminated against carriers contrary to clause 44 of Schedule 3 to the Telecommunications Act 1997, and therefore were of no effect under section 109 of the Constitution. This decision was on appeal from the Full Federal Court decision that was reported last year.

Commonwealth Ombudsman

During 2003-04, the Commonwealth Ombudsman:

  • received five complaints about the Department's actions; and
  • made no findings of defective administration by the Department, or recommendations for act of grace payments.

Parliamentary Committees

During 2003-04, the Department was involved in 21 Parliamentary Committee Inquiries. This compares with 18 in 2002-03.

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

Details on the Department's involvement in these Parliamentary Committee Inquiries are at Appendix 2.

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 explains the range and standards of services the Department's clients can expect and outlines clients' rights and responsibilities as well as 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 2601

The Department has continued to measure client satisfaction through its annual client survey. The Department outsourced the survey to the Wallis Group this year and it surveyed a representative sample of 1924 of the Department's clients to obtain feedback on the Department's service delivery for 2003-04. This is the first year that the Department has reported the survey results at both the departmental and output levels. A summary of the Department-wide results of the survey is provided at table 3.2, with the results against each output level reported in section 2 of this report under each output.

The Department has continued to maintain a high overall level of client satisfaction with 97 per cent of the Department's clients rating the service of departmental staff as satisfactory to excellent, compared with 98 per cent in 2002-03. Particular areas of strength were the handling of client queries by telephone and email, and a continued high satisfaction level in relation to the quality of communication with clients.

Nevertheless, some areas for improvement were identified. These concerned in particular, awareness among clients of the Department's Client Service Charter, the timeliness of consultations with interested parties and the speed of decision making in relation to grant applications.

The EMG has considered the results of the survey and will implement the report's recommendations during 2004-05 to ensure the Department is continually improving its service to its clients. In addition the Department will introduce trend analysis of survey results in the 2004-05 annual report.

Survey category

Client Service Charter standard

Results (rated performance as satisfactory to excellent) - %

Communication with clients - quality

Courteousness

99

Willingness to assist clients

98

Responsiveness

96

Fair treatment

97

Advice that is clear, concise and complete

96

Technical/professional competence in providing advice

97

Sensitivity to diversity issues

97

Telephone dealings with clients

Availability of staff to take telephone calls during the day

98

Staff identify themselves by name and/or work area

99

Ability of staff to deal with clients' inquiries

96

Email dealings with clients

Responding to clients' inquiries as soon as possible

96

Satisfactory responses to inquiries

98

Written inquiries

Speed of responses to clients' inquiries

93

Keeping clients informed of the progress of their inquiries

90

Providing further contact details for follow-up

94

Administration of grants programs

Grant programs are adequately publicised

89

Publicising how to apply for grants within programs

91

Equitable access to grant programs

88

Fair administration of grant programs, in accordance with relevant guidelines, criteria, regulations or legislation

92

The speed of decision making in relations to grant applications

81

Development and review of policy and legislation

Consultation with interested parties in good time

87

Using appropriate processes to establish the lines of consultation

91

Inclusion of those likely to be affected by changes in policy or legislation, in the consultative process

92

Breadth of the consultation process

90


Management of human resources

In August 2001, the Department outsourced the provision of all Human Resource (HR) services to The Empower Group. The contract is for three years (September 2001-September 2004) with the option for a two year extension. A formal review in June 2003 concluded that the contract had not delivered the benefits envisaged and recommended that the Department re-test the market.

In December 2003, the Department endorsed a new service delivery model for HR services. The core of the model is the strategic repositioning of the Department's HR services delivery. This includes bringing the responsibility and accountability for the Department's HR service delivery back within the Department as well as the functions of strategic advice, recruitment and operational management.

The remaining services of payroll and leave administration were market tested during the second half of 2003-04 by an open tender process and a new services agreement was signed on 2 July 2004 with United KFPW for four years, with an option for a two-year extension.

The implementation of the in-house capability required under the new model is underway. The Department is working towards the transition to the new services provider, for leave and payroll administration, by the end of September 2004.

The focus of HR management in 2003-04 has been on staff development, occupational health and safety management and the development of a new Certified Agreement.

Workforce planning

As with other Australian Public Service (APS) agencies, workforce planning is becoming an increasingly critical issue for the Department especially with regard to succession planning and appropriate use of training and development resources. The emphasis for the year has been on the collection and analysis of workforce data and, as part of the implementation of the new HR model, new resource arrangements have been put in place to develop a more systematic approach to workforce planning in the coming year.

Graduate program

The Department has a comprehensive Graduate Program each calendar year which has proved to be a valuable source of higher level recruits. The 2003 Graduate Program involved 14 graduate recruits and ten graduates were recruited for the 2004 program from a national advertising campaign. A further three graduates from the former National Office for the Information Economy (NOIE) joined the Department in April 2004.

The program involves three development placements within the Department, a significant development program and the availability of a mentor network. Graduates are offered a wide range of learning opportunities throughout the year ranging from core APS skills, through to more complex writing, policy development, project and program management skills, and guidance on working with Ministers and their offices.

Staffing overview

At 30 June 2004, there were 696 ongoing and non-ongoing staff members compared with 607 at 30 June 2003. This figure represents a 14.66 per cent increase in the overall number of staff in the Department since last year's report. The variation is largely the result of the transfer of the Information Economy function from the former NOIE to the Department on 8 April 2004.

Additional staffing details can be found at Appendix 3.

Workplace diversity

The Department is committed to creating an inclusive work environment that is free from harassment and that enables staff to contribute to their full potential. The Department's Workplace Diversity Plan and its companion Eliminating Workplace Harassment Plan were finalised during the year and will be released in early 2004-05. The plans outline complementary initiatives that will assist the Department to build a harmonious, productive and rewarding workplace.

2004 Graduate Administrative Assistants The Department's 2004 Graduate Administrative Assistants with the Secretary, Helen Williams.

The implementation of the plans' strategies will be monitored by the workplace diversity and harassment committee. This is supported by the Department's workplace diversity and harassment contact officers who are responsible for promoting the benefits of diversity and providing advice and support to management and staff on workplace harassment matters.

Full details of departmental workplace diversity statistics are provided in Appendix 3.

In summary, women represented 58 per cent of total staff as at 30 June 2004, slightly higher than the APS average of 53.7 per cent as at June 200314. The Department also compares well against the APS average for total women in the SES with 32 percent of women in the SES in the Department compared to 30.4 per cent APS-wide15.

Of the 78 per cent of staff who volunteered diversity data, an increase of eight per cent from 2003-04, 37 per cent identified themselves as being from diverse cultural and linguistic backgrounds, a significant increase from 2002-03. Less than one per cent of staff identified themselves as being of Aboriginal and Torres Strait Islander background, a decrease from one per cent in 2002-03, and one per cent as having a disability, remaining stable with 2002-03. In comparison with average APS statistics, the Department compares well in relation to staff from a diverse cultural and linguistic background but not as well in relation to staff of Aboriginal and Torres Strait Islander background or staff with a disability16.

14 State of the Service Report 2002-03, page 6
15 State of the Service Report 2002-03, page 7
16 State of the Service Report 2002-03, chapter 8

Certified Agreement

A new Certified Agreement was developed in consultation with staff and unions. The Agreement was certified by the Australian Industrial Relations Commission on 28 June 2004 and has a nominal expiry date of 30 June 2007.

The Agreement ballot achieved a 75.8 per cent participation rate and a 92 per cent 'Yes' vote.

The new Agreement provides a four per cent salary increase across all classifications on 1 July 2004. A further two per cent salary increase is effective from 1 July 2005 and 1 July 2006, with an additional two per cent salary increase also available on 1 July 2005 and 1 July 2006 subject to the achievement of the four specified pre-conditions outlined below. Achievement of each pre-condition will qualify staff for a further 0.5 per cent increase to base salary. Achievement of the pre-conditional components will be monitored by the Workplace Consultative Committee (WCC) throughout the term of the Agreement.

Pre-condition 1

Requirement for 95 per cent of eligible staff to complete mid-cycle performance reviews by 13 December 2004, 2005 and 2006.

Pre-condition 2

Requirement for 95 per cent of eligible staff to complete end-of-cycle performance reviews by 31 May 2005 and 2006.

Pre-condition 3

Requirement for 95 per cent attendance at scheduled training courses by staff who nominate for such courses.

Pre-condition 4

Requirement for a demonstrated commitment to adoption of IT initiatives, including the introduction of the records management system, TRIM, participation in TRIM training and the reduction of data holdings during the period 1 July 2004 to 30 June 2005 and 1 July 2005 to 30 June 2006.

Funding of the Agreement will be achieved through the productivity gains and direct savings flowing from achievement of the pre-conditional components together with benefits gained from moving to a three year Agreement.

When used in the 2002-04 Agreement, the pre-conditional components relating to the performance management system proved to be both a useful incentive for staff and an effective tool for management in achieving high levels of participation in the system. This, in turn, ensured that performance discussions and identification of development needs was uniformly undertaken across the Department.

The training pre-condition is both a cost saving and a productivity improvement. The Department runs a comprehensive training calendar throughout the year. The cost of providing this program is significant and there are obvious savings if courses are fully subscribed rather than having vacancies due to non-attendance which cannot be utilised by other staff. Participation in developmental training and career progression programs identified through the performance management process assists in improvements to individual and agency productivity.

The fourth pre-condition requires participation in the records management system (TRIM) training which will aid in the utilisation of the TRIM system and better use of electronic records management technology within the Department. In addition to the TRIM initiatives, the Department is reviewing and reducing electronic data holdings which will improve the efficiency of the IT network.

In preparation for the 2004-07 Agreement, the WCC established a series of sub-committees to identify, research and cost initiatives which could be utilised to satisfy the Policy Parameter requirements for Agreement Making in the APS. The Productivity sub-committee will continue to operate during the life of the current Agreement.

Australian Workplace Agreements (AWAs)

Senior Executive Service (SES) AWAs and remuneration

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

Remuneration is determined by the Secretary, having regard to individual capacity and job requirements. The AWAs are comprehensive and generally include performance pay, superannuation, executive vehicle, and development provisions.

Non-SES AWAs

As at 30 June 2004, there were 80 non-SES staff on AWAs. Combined with SES, this represents a total of 16.26 per cent of staff on AWAs. The increase, from 14 per cent last year, is largely due to take-up of the EL2 collective AWA with 67 per cent of staff at that level on an AWA.

Non-SES AWAs tend to be single issue agreements with access to performance-based pay, salary, allowances and/or non-salary items. Non-salary items might include access to designated car parking, participation in significant development opportunities or a slight variation to working arrangements. Terms and conditions of employment are drawn from the Department's Certified Agreement.

Performance payments

Movement through classification salary ranges is dependent on performance. Staff are not eligible for advancement unless a performance agreement has been developed and performance is assessed as being at least 'Good'.

One-off performance bonus payments are only available to staff who are party to an AWA. Determination of the bonus amount is dependent on a performance assessment outcome of 'Very Good' or 'Outstanding'. Actual payments are determined with regard to the performance outcome and the sliding scale of payment outcomes provided by the AWA.

Key staff development strategies

The Department has continued to develop a comprehensive training calendar for all staff based on departmental capability requirements and personal development plans. The training and development calendar for 2003-04 included professional development, career development skills and interpersonal skills development courses. There were 97 courses conducted with 1036 participants.

Courses covered a broad range of topics including management and supervision, policy, project, financial and grants management, and a range of APS specific training including OH&S, diversity, eliminating workplace harassment, security awareness, corporate governance and the APS Values. A number of new programs were identified and delivered which included Internet technology and voice network overview, fraud awareness, stress management, career directions, coaching and mentoring, and working effectively together.

Course evaluations were submitted by 83 per cent of staff of which 71 per cent rated the training programs as very good to excellent.

Course numbers were lower than the previous reporting year as a number of regular courses reached saturation. The training calendar is being revised with a view to introducing a number of new programs in 2004-05.

Occupational health and safety (OH&S) performance

The major OH&S activity during the year was the introduction of a Health Week initiative, which was conducted from 17-21 November 2003. The event was very successful with more than 500 attendances at sessions with extremely positive feedback received from staff on the content and organisation of the week.

During Health Week, 31 sessions were conducted covering 13 different topics. Sessions ranged from physical activities including volleyball, walking, and yoga to individual health checks, and seminars presented by health professionals. As a result of the positive feedback from staff, the Department is planning a similar program in 2004-05.

The OH&S Committee continued to be very active during the year. Issues discussed at meetings included follow up on the safety inspections conducted on all sites, including Old Parliament House and the review of OH&S related policies.

Ongoing initiatives include the:

  • provision of OH&S representatives and First Aid Officers at all departmental locations;
  • management of issues such as return to work, rehabilitation and workstation assessments for the Department by SRC Solutions; and
  • the provision of a contracted Employee Assistance Program (EAP) Provider for all staff. This service can be accessed free of charge to the staff member, to deal with any issues which disrupt their life at work and/or home.

There were no incidents requiring notice to be given under section 68 of the Occupational Health and Safety (Commonwealth Employment) Act 1991 in 2003-04. There were no investigations conducted and no directions or notices were issued under sections 29, 45, 46 or 47.

Information technology

Following an open Request for Tender (RFT), released in May 2003, the contract for the delivery of the Department's Information Technology (IT) services was awarded to Kaz Technology Services. The contract was signed on 17 September 2003 and is for a period of three years from the date of handover from the former services provider, Telstra Enterprise Services. The transition of services, including the simultaneous deployment of a new Standard Operating Environment, took place on 13 April 2004.

A tender for the provision of voice services was undertaken during the same period and a contract for an initial three year period was signed with Macquarie Corporate Communications (MCT) on 17 September 2003. Voice services were successfully transferred from Telstra Enterprise Services on 30 June 2004.

An indicative cost of the contracts is $4.275 million for IT services and $832 000 for voice services. These figures are for the initial three-year period of base services only and do not include transition in, project related, call volume, or other miscellaneous costs.

During the year, a SAP re-modelling project was undertaken with the objective of re-structuring the Chart of Accounts to allow greater reporting flexibility, and to enhance functional capacity in other areas such as budgeting. The development work was conducted by CSC Australia under a work order arrangement in accordance with the terms and conditions of the current service contract for SAP support. The redevelopment commenced in February 2004 and was completed and accepted on time for the commencement of the 2004-05 financial year.

Changes in the Department's requirements for web services delivery combined with the additional requirements stemming from the Department's acquisition of functions from the former NOIE led to a re-evaluation of the web delivery infrastructure. A recommendation to replace the web content management system with an open source solution at the expiration of the current contracted arrangements was endorsed by the IMC and by EMG. A project was initiated to implement the new arrangements by the end of 2004.

IMC met quarterly to provide advice and strategic direction in the management of the Department's information needs and to review ongoing status reports on the progress of approved IT projects. The committee was also convened for three additional special meetings to provide closer guidance and oversight of the IT and voice services market testing processes.

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.

In June 2004 the Department invited, by public tender, firms to register as legal service providers to the Department.

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 14 FOI requests were received during the year.

The Legal Group assisted in preparing ten Bills which were passed or introduced and six Statutory Rules which were made during the year. The Legal Group drafted 12 other subordinate statutory instruments, and a number of appointment instruments.

Major legislation requiring significant input from the Legal Group during the year is set out below.

Members of the Legal Group Members of the Legal Group.

Left to right: Amy Nichol, Dianne Betts, Michael Honan and Frances Forrest.

Australian Sports Drug Agency Amendment Act 2004

This Act amended the Australian Sports Drug Agency Act 1990 in order that the Australian Sports Drug Agency could perform particular functions required as a result of the introduction of World Anti-Doping Code.

Postal Services Legislation Amendment Act 2004

This Act amended the Australian Postal Corporation Act 1989 and the Trade Practices Act 1974 to address various postal regulatory issues.

Communications Legislation Amendment Act (No. 1) 2004

This Act improved administrative arrangements relating to telecommunications interception, in response to the Review of the Longer-Term Cost-Effectiveness of Telecommunications Interception, and enhanced national security by strengthening Commonwealth powers in relation to carrier licensing.

Telstra (Transition to Full Private Ownership) Bill 2003

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

Broadcasting Services Amendment (Media Ownership) Bill 2002

This Bill amends the Broadcasting Services Act 1992 to repeal the media specific foreign ownership restrictions and to allow for exemptions from cross-media ownership rules.

Broadcasting Services Amendment (Anti-Siphoning) Bill 2004

This Bill amends the anti-siphoning scheme to extend the automatic de-listing period from six weeks to 12 weeks. This Bill relates to the reforms made by the Broadcasting Services (Events) Notice (No. 1) 2004.

Broadcasting Services (Events) Notice (No. 1) 2004

This instrument revoked and remade the previous anti-siphoning list, and provided a revised list of events for the period commencing on 1 January 2006 and ending on 31 December 2010.

Premium Service Determination 2004 (No. 1)

This determination specifies premium short messaging services (SMS), multimedia messaging services (MMS) and mobile services supplying proprietary network content as 'premium services' for the purposes of the Telecommunications Regulations 2001.

Australian Communications Authority (Service Provider Determination) Direction 2004 (No. 1)

This direction requires the Australian Communications Authority (ACA) to make a service provider determination in relation to the provision of information to consumers of premium services, and to investigate and report to the Minister on industry action to improve credit management processes in relation to a wide range of telecommunications services, including premium rate services.

Australian Communications Authority (Service Provider Determination) Direction 2004 (No. 2)

This direction requires the ACA to make a service provider determination to:

  • prohibit the supply of material classified 'X' or 'RC' on premium rate mobile services (SMS, MMS or proprietary network services);
  • require adult MMS (containing 'MA' or 'R' rated content) and adult SMS (sex services) to be provided only on number ranges to be specified by the ACA; and
  • put in place appropriate measures to restrict access to premium rate mobile services that include adult content.

The Legal Group provided advice and assistance to Divisions on a range of issues during the negotiation of the AUSFTA and the drafting of the amendments relating to copyright in the US Free Trade Agreement Act 2004.

The Legal Group also took an active role in the ANAO's audit of freedom of information administration.

During the year, the Ombudsman commenced a cross-agency investigation into freedom of information administration. The Department is included in that investigation.

Purchasing

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

Consultants

The Department's policies on the selection and engagement of consultants are based on the CPGs, the CEIs, and Government policies. The Department complies with all 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 Divisions responsibility for developing requirements and managing contracts. However, important checking and control mechanisms are in place. A senior officer in the relevant Division must approve any consultancy contract, and the Legal and Contracts area provides, on request, 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 the particular requirement. Major contracts are usually offered publicly, by advertising on the AusTender website and in the press. 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.

In 2003-04, the Department and the former NOIE:

  • entered into 158 consultancy contracts; and
  • incurred a total expenditure on consultancy services of $7 255 324.

These figures include:

  • contracts let by the former NOIE which relate to functions or programs that were transferred to the Department on 8 April 2004; and
  • expenditure on those contracts during the year by both NOIE and the Department.

Further details are provided in the consultancy list available on the Department's website www.dcita.gov.au.

Competitive tendering and contracting

Contracted service providers deliver a range of services to the Department. The Department's objectives in outsourcing such services are to obtain value for money, encourage innovation and improve accountability and performance in the service delivery process, in line with the CPGs.

Current departmental contracts with service providers worth $100 000 or more are listed in table 3.3.

Table 3.3 Contracts over $100 000

Contractor

Nature of services

Contract period

The Empower Group Pty Ltd

Human resource management services

September 2001 to September 2004

KAZ Technology Services Pty Ltd

IT&C services

September 2003 to April 2007 (for services from April 2004)

Macquarie Corporate Telecommunications Pty Ltd

Voice communications services

September 2003 to June 2007 (for services from July 2004)

Fujitsu Australia Ltd

Website redevelopment

December 2000 to September 2004

Recall Total Information Management

Archival and disposal
services for records

October 2001 to December 2004

Exempt contracts

There are no current contracts in excess of $2000 (inclusive of GST) or standing offers that have been exempted by the Secretary from being published in the Purchasing and Disposal Gazette on the basis that they would disclose exempt matters under the Freedom of Information Act 1982.

Financial management

The primary focus for the Finance and Budgets Group during 2003-04 has been on business improvement. The Department continues to make improvements in the quality and presentation of the monthly financial data that is available to the Secretary, Executive and divisions for evaluation and monitoring purposes.

End-of-month processes have been tightened for business and accrual accounting purposes. This includes ongoing improvements to the capture of end of month accrual information and review processes. Increased assistance has been provided to staff in operational areas to upgrade information recording. In addition, specific in-house coordinated departmental training programs on internal financial and budgetary awareness continue to be provided on a regular basis to raise the level of financial skills of staff.

The Department's Financial Management Information System (FMIS) was further developed to provide greater flexibility and to enhance reporting to clients and the Department of Finance and Administration. This included implementation of changes to the Chart of Accounts to better align the FMIS to organisational and outcome and output structures. The changes will take effect from 1 July 2004 and refinement of the redevelopment will continue in 2004-05 including consideration and possible implementation of a reporting tool to provide additional flexibility for management and external reporting.

Finance and Budget Group members Finance & Budget Group members.

Left to right: Maisie Minikin, Cassandra Askerlund, Ravi Ravishanker and Robert Davey.

The Department has put considerable effort into the effective implementation of the Budget Estimates and Framework Review recommendations including the development of monthly estimates for external reporting, meeting earlier deadlines for external estimates updates, improvements in areas of increased reporting (cash and accrual) to the Department of Finance and Administration, and just-in-time banking drawdowns.

As well as the improvements mentioned above, business processes generally continued to be reviewed and improved to strengthen departmental financial management and decision making. This included the publication of an internal Finance and Budgets User Guide addressing finance and budget procedures and processes for departmental staff, as well as the initial planning for the implementation of Australian Equivalents to the International Financial Reporting Standards, to apply from 2005-06.

Financial management changes associated with the integration of the former NOIE staff and functions into the Department were successfully achieved. Preliminary work was undertaken on the integration of new service delivery arrangements for Indigenous Affairs previously delivered by the Aboriginal and Torres Strait Islander Commission (ATSIC) and Aboriginal and Torres Strait Islander Services (ATSIS).

The Department received an unqualified audit report in respect to its financial statements for the 2002-03 financial year.

The Department's revenue for 2003-04 totalled $130.327 million, as identified in table 3.4.

At the end of 2003-04, the Department recorded a $31.774 million surplus. This surplus is predominantly related to appropriation revenue of $22 million relating to ScreenSound Australia (SSA), which was transferred to the Australian Film Commission (AFC) via equity, and commitments for 2004-05.

Asset management

Departmental

The Department manages both current and non-current assets in accordance with guidelines set out in the CEIs and Australian Accounting Standards.

Table 3.4 2003-04 departmental revenue

Revenue item

2003-04 result
$m

% of total revenue

Revenue from Government

120.909

92.77

Sales of goods and services

5.879

4.51

Interest

0.079

0.06

Disposal of assets

0.069

0.05

Other revenue

3.391

2.60

Total

130.327

100.00

Artbank

Artbank's assets are predominantly artworks, consisting of nearly 9200 works valued at $23.5 million. Artbank operates from leased premises in Sydney.

As the national art rental scheme, more than 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.

National Portrait Gallery (NPG)

The NPG, which is located within OPH and with a temporary display facility at Commonwealth Place in the ACT, currently has a permanent collection that is valued at approximately $12 million. The collection is housed on the OPH site with those items not on display stored in specialist climate and humidity controlled facilities.

Other assets

The Department has leasehold improvements and furniture and fittings valued at $7.3 million. During 2003-04, a number of fit-outs and refurbishments were undertaken at leased premises at 38 Sydney Avenue, 44 Sydney Avenue, and 28 National Circuit in Forrest, ACT.

These included:

  • refit of all Department conference rooms;
  • refurbishment of the executive area;
  • lease and fit-outs of Level 1, 44 Sydney Avenue;
  • numerous minor fit-outs throughout 38 Sydney Avenue; and
  • re-assignment of the lease at MTAA House to the Defence Housing Authority.

The Department also has software, computer and office equipment valued at $2.7 million. These assets are managed in accordance with the Department's Information and Communications Technology Strategic Plan 2003-05.

Administered

Old Parliament House (OPH)

Asset management is integral to the operation of OPH.

The OPH building is valued at $45.5 million, with a replacement cost of $110.5 million. OPH houses a significant collection of furniture associated with the building and its history, valued at $2.7 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 kept in standard storage conditions.

The building is conserved in accordance with the OPH Conservation Management Plan 2000 and specific heritage studies that are undertaken for major projects. These ensure 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 its long term Capital Works Plan, Fire Safety Strategy and Services Strategy.

National Institute of Dramatic Art's (NIDA) building

NIDA's current facilities are owned by the Commonwealth. Stage 1, completed in 1988, consists of two theatres, five rehearsal rooms, carpentry workshops, props and costume facilities, lecture rooms and administration offices. Stage 2, an award-winning building funded under the Federation Fund and opened by the Prime Minister in October 2001, includes a 730-seat theatre, 120-seat studio, soundstage, library and additional rehearsal rooms.

The building is valued at $36.7 million with a replacement cost of $60.6 million. NIDA manages the building on the Government's behalf and a ten-year Asset Management Plan for the site was completed in December 2003.

 
Document ID: 15916 | Last modified: 6 February 2008, 9:59am