CENTRELINK ANNUAL REPORT 1999 – 2000 · Web viewOverall, customer satisfaction has risen...

Our PurposeCentrelink was created to provide exceptional service to the community by linking Australian Government services and to achieve best practice in service delivery.

CENTRELINK ANNUAL REPORT 1999 – 2000Contact officerComments and requests for further information on this report are welcome and can be sent to:

Ms Jan MC Cann

Telephone (02) 6212 0023

Fax (02) 6212 0480

Email [email protected]

Ms Julie Peard

Telephone (02) 6212 0025

Fax (02) 6212 0480

Email [email protected]

Strategic Services Team

Centrelink National Support Office

Box 7788

Canberra Mail Centre ACT 2610

World Wide Web home page addresswww.centrelink.gov.au

© Commonwealth of Australia 2000

ISSN 1441–4392

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This annual report will be available on the Centrelink Internet site (www.centrelink.gov.au).

About this ReportThis Annual Report has been prepared to inform the Parliament (through the Minister for Community Services), other stakeholders and the community about Centrelink’s performance in providing Australian Government services. The report is a key reference document and a document for internal management. It forms part of the historical record and is the principal formal accountability mechanism between government and Centrelink.

The report uses the same government outcome-output structure that was used to present the Department of Family and Community Services 1999–2000 Portfolio Budget Statements and Portfolio Additional Estimates Statements. It therefore reports on achievement against performance targets set out in the Budget Statements and the Additional Estimates Statements.

The report is structured in the following manner:

Chapter 1 describes Centrelink and its business. Chapter 2 is the Chief Executive Officer’s overview, which focuses on significant issues and

performance and provides an outlook for the following year. It also includes a brief message from the incoming Chairman of the Board.

Chapters 3–8 cover detailed performance reporting using the Balanced Scorecard to measure performance against each of Centrelink’s Key Result Areas.

Chapter 9 gives a corporate overview of Centrelink and outlines the organizational structure. It also covers other corporate matters, recognition of excellence, major conferences and major speeches.

Chapter 10 explains the main corporate governance practices and the framework and structure of the Board of Management.

Chapter 11 contains the audited Financial Statements. Appendices i–xiii contains information required under specific legislation and other useful

information. A glossary and index are located immediately after Appendix xiii.

We would like to acknowledge the efforts of Centrelink employees who provided the majority of photographs in this report (excluding Board members), as part of the Take a Shot photograph competition. This competition was initiated by the Strategic Services and Communication and Marketing Teams, National Support Office.

1. Introducing CentrelinkOur Strategic FrameworkAs a developing organisation, a key priority for Centrelink has been to drive change through the Strategic Framework, which provides a vision for the future, sets clearly defined goals, promotes shared behaviours and facilitates future planning.

The Strategic Framework is reviewed annually in consultation with key stakeholders to ensure it continues to provide a powerful basis for Centrelink’s current operations and future development. In 1999–2000, the Centrelink Strategic Framework 1998–2003 was updated and released as the Centrelink Strategic Framework 1999–2004, Our Business, Our Future. The updated Strategic Framework is presented in a simpler and more useable format for all Centrelink staff. It lists our

achievements up front and explains in plain English our purpose, vision, mission, corporate goals and the underlying philosophies and activities necessary to achieve them.

The first part of the framework, Our Business, develops and reinforces the concepts on which Centrelink was founded—to be first choice of Government and the premier broker and service provider for our customers.

The second part of the framework, Our Future, concentrates on Centrelink’s business outcomes, linking the goals to performance indicators and their associated practical strategies, actions and timeframes.

The Strategic Framework maps the strategies to be put in place over the next three years in order to achieve the Government’s aims when it established Centrelink as the one-stop-shop for service delivery to the Australian community.

The framework is the key element in engaging Centrelink’s people in a common purpose and approach while taking the organisation into the new millennium. It is supported at the local level by Customer Service Improvement Plans, which outline how each Centrelink team will improve service delivery and contribute to achieving Centrelink’s goals and realizing Centrelink’s vision.

In 2000–01 Our Future will be replaced by a Business Plan, a rolling plan incorporating the major issues for Centrelink over the next three years. The theme of the Business Plan 2000–01 is Doing our Current Business Better. The Business Plan has the following seven key objectives:

improve performance to client agencies; position Centrelink to effectively deliver on Welfare Reform initiatives; reduce the complexity of dealing with government for all Australians; align employee culture and skills with business direction and demonstrate Centrelink’s

commitment to its people; enhance services to rural Australia; increase quality; and Move to a more efficient business.

Our MissionBuilding a stronger community by:

providing opportunities for individuals during transitional periods of their lives; delivering innovative, cost-effective and personalised services for individuals, their families and

community groups via a one-stop-shop; being committed to quality; making the best use of available dollars; listening to and enacting the community’s ideas for better service; and Building a quality relationship with customers.

Outcome and Output StructureCentrelink has one outcome which is Effective delivery of Commonwealth services to eligible customers. This outcome is supported by the output of efficient delivery of Commonwealth services to eligible customers (see Chapter 3, Performance Report, page 21 for more information).

Our GoalsTo achieve the commitments to Government and client agencies, customers and staff, Centrelink has set six goals to be achieved progressively over the next three years:

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

Customer and CommunityTo increase customer and community involvement and satisfaction with services.

Centrelink PeopleTo create an environment where Centrelink’s people give value to customers,client agencies and the community through their skills and commitment to service.

Cost EfficiencyTo manage our business efficiently and return a dividend to Government.

InnovationTo provide innovative and personalized solutions , consistent with government policy.

Best PracticeTo be first choice and benchmarked as the best practice in service delivery.

We have also developed key performance indicators and use the Balanced Scorecard to measure our performance against targets for five of these goals. Our sixth goal, best practice, is not measured individually as it is the sum of the total achievement against the other five goals and will be validated through external benchmarking.

Social Justice and EquityCentrelink fully supports the Government’s social justice, access and equity objectives. The needs of Indigenous communities, people from diverse cultural and linguistic backgrounds, people with disabilities, women and people living in rural, remote and isolated areas are all key priorities in delivery of our services.

Our Shared BehavioursOur Shared Behaviours guide work practices, decision making and dealings with our customers, clients and staff. They are:

listening to customers and the community; mutual respect for our customers and for each other; exploring and putting in place innovative and cost-effective ways to provide the right outcome; solving problems and developing opportunities; and Behaving with integrity and in an ethical manner.

Our Quality First PolicyCentrelink’s Quality First Policy provides the link between our Strategic Framework and our operational activities. The Quality First Policy is simply a structured way of how to go about providing quality customer service.

Key elements include:

a customer-driven focus within Centrelink;

an enhanced approach to leadership and team-based working arrangements; a focus on customer service improvement and review; the implementation of Balanced Scorecard methods of performance measurement; best practice identification; benchmarking; performance improvement and process redesign; and the introduction of quality assurance mechanisms.

Our Business ArrangementsCentrelink operates under a purchaser/provider framework. Broadly defined, a purchaser/provider arrangement is one in which:

the purchaser is the agent who decides what is produced; and The provider is the agent who delivers the agreed outputs or outcomes.

Purchaser/provider arrangements clarify areas of responsibility and financial commitments to particular functions. Benefits of such arrangements include:

clarified expectations and responsibilities; enhanced contestability (that is, the prospect of competition); heightened accountability and priorities; improved organisational responsiveness to client agencies and customers; and A reduced risk that the purchaser may be ‘captured’ by the provider.

Centrelink’s business arrangements are outlined in either Business Partnership Agreements or other agreements with client agencies. They outline:

products and services to be provided; performance outcomes and reporting mechanisms; funding provisions; arrangements agreed upon to manage particular issues; and New and priority activities.

Business Partnership Agreements require clear specification of policy and operational outcome requirements and ensure identification of respective purchaser/provider roles and responsibilities. They provide clarity of performance and accountability expectations. The complete list of client agencies with whom Centrelink has business arrangements can be found on Chapter 4, Our Client Partnerships, page 25.

Access to Centrelink ServicesCustomers can now access Centrelink services in a variety of ways, including:

in person (visiting a Customer Service Centre, Specialist Service Centre, or a Centrelink agent); over the phone; electronically (on the Internet); and By mail.

Our BusinessTable 1: Our Business

OUR BASE

Functions Income support, other payments and referral services

OUR DIMENSIONS

Number of sites Over 1000 sites Australia-wide

Number of employees 22 178*

Number of client agencies 13 key agencies

Payments on behalf of client agencies Approx. $43.5 billion per annum

OUR CUSTOMERS

Number of customers 6.4 million

Number of individual entitlements 9.0 million

Letters to customers Approx. 101 million per annum

Home visit reviews 98 673 per annum

Booked office appointments Approx. 6.5 million per annum

New claims lodged 4.4 million per annum

Newstart and Youth Allowance continuations 14.1 million lodged per annum

Mainframe online transactions Approx. 2.9 billion per annum

Successful telephone calls Approx. 22.5 million per annum

Internet web page views 2.3 million per annum

* Includes ongoing and non-ongoing employees.

Figure 1: Summary of Services Provided to Customers by Centrelink

2. The Year in ReviewReport of the Chief Executive Officer1999–2000 has been a year in which tangible outcomes and achievements have begun to demonstrate the full potential of the Centrelink model for delivery and linking of human services.

Since its inception in 1997, Centrelink has been working hard to create an efficient, customer-focused organisation that is highly responsive to government policy requirements. Major process improvements this year have produced important acrossthe-board efficiency gains, particularly in the high profile area of call centre responsiveness.

While much remains to be done, and plans are in place for further efficiency gains, this year’s work has provided a reliable platform from which Centrelink can now look forward and begin to deliver some of its real potential.

Summary of Significant Issues and DevelopmentThe Hon. Larry Anthony MP was appointed Minister for Community Services on 29 July 1999.

Throughout the year, Centrelink supported the Department of Family and Community Services (FaCS) in planning the provision of increased assistance to families, flowing from A New Tax System. As part of this exercise Centrelink consolidated 12 complex payments into three, all payable from a single agency—a new Family Assistance Office (FAO). This initiative has made it significantly easier for families to access services and payments. This major achievement was marked by the opening on 1 July 2000 of 550 FAO sites located in Centrelink, Medicare and Australian Taxation offices (ATO) across the country. This unique partnership involving three separate government agencies will provide a one-stop-shop service to more than two million families.

This year has seen the seamless introduction of the new Payment Cycles arrangements, which removed the fixed payment day that applied in many of the various payment streams. Our customers now have more choice about how they can access payments. At the same time, Centrelink tightened control on ‘over the counter’ part payments that were adding significantly to work load while offering little return in terms of outcomes for customers.

Centrelink has one of the largest information infrastructures in Australia. It supports high profile community support payments, protects private information and processes transactions on a scale not replicated elsewhere in the country. Year 2000 represented a threat to that security and reliability. Centrelink took this threat seriously and put in place a contingency plan that included disaster modelling and a ‘time machine’ that tested every facet of our systems, rolling them into the Year 2000 and out again some 14 times. This was done at a cost much lower than both public service and industry standards for organisations of our size and complexity. We moved smoothly through the transition into the New Year without incident, thanks to the dedication and professionalism of our Year 2000 compliance team.

Good progress was made in the market testing of our Information Technology (IT) infrastructure. Considerable effort went into ensuring that the outcomes of this critical activity will be successful for both Centrelink and the chosen provider.

The National Support Office was restructured during the year to make it more clients focused and better positioned to anticipate and manage change. As part of this restructuring, we created a Service Integration Shop to support business development activities and achieve consistency and best practice across the organisation.

Centrelink successfully managed the transition from cash accounting to an accrual accounting framework for budget estimates. Centrelink is continuing to develop a business-like culture in managing expense and capital budgets and expects this process to be completed within 12 months.

During the year, Centrelink responded positively to the Welfare Reform, instituted by Senator the Hon. Jocelyn Newman, Minister for Family and Community Services, and to the Regional Australia Summit. Our involvement demonstrated that Centrelink is an important asset for government by virtue of its nation-wide infrastructure, its involvement with communities everywhere, and the trust and respect those communities accord the organisation. It is expected that the Government will want to build on these strengths in the coming year, especially in rural Australia.

We look forward to a strong role in making sure the Government’s plans for Welfare Reform are successful.

A feature of the year has been the increasing emergence of community partnerships and strategic alliances such as Rural Transaction Centres. Recent surveys indicate that the majority of our customers (95 per cent) strongly support the importance of having a Centrelink Customer Service Centre as an integral part of, and physically located in, their local community.

This year has seen continuing improvement in the employment market. Centrelink is funded in line with customer number variations, including job seeker numbers, and we have, therefore, had to adjust network resourcing levels in line with the decrease in job seeker numbers.

The Preparing for Work initiative was launched by Centrelink this year and represents a significant improvement in the delivery of employment services to job seekers. Promoted as ‘Helping you find work’, this initiative represents a more integrated, structured and personalized service for job seekers that reinforces Centrelink’s role as the gateway for employment assistance services. All job seeker contacts are now structured to incorporate the key elements of assessment, planning, referral and follow up.

New arrangements for the delivery of Job Network services took effect from 28 February 2000 with the commencement of Round 2 Job Network contracts. Working in close cooperation with the Department of Employment, Workplace Relations and Small Business (DEWRSB), Centrelink played a major role in providing information about the changes and supporting the transfer of affected job seekers to new service providers.

There has been an increase in registrations by Indigenous job seekers as a result of cooperation between Centrelink, DEWRSB and the Aboriginal and Torres Strait Islander Commission (ATSIC) on joint strategies. Through visits to Indigenous communities we have been able to identify Indigenous job seekers, link them to the Job Network and issue them with Indigenous Wage Assistance Cards. Centrelink also worked cooperatively with Community Development and Employment Projects (CDEP) to introduce the CDEP Participant Supplement from March 2000, which also provided access to social security ‘add-ons’ such as the Health Care Card and Rent Assistance.

With an enhanced focus on improving services to rural and remote Indigenous communities, Centrelink has opened a small office in Maningrida NT, and an Indigenous Call Centre in Kalgoorlie WA. We will continue to engage community leadership to help us to maximise services to Indigenous customers and communities.

Overview of Performance and Financial ResultsThis year’s report gives an account of our achievements against our outcome, output and our goals and we are able to report strong results in most measures, including a pleasing lift in most areas of staff satisfaction, an area we targeted for specific improvement in last year’s report.

Relationships with our clients have continued to improve this year; however we have been disappointed with our performance in meeting key performance indicators. This applies particularly to the indicators in the Business Partnership Agreement with DEWRSB.

While there were a variety of reasons for this less than optimal result—some outside Centrelink’s control—many lessons have been learned about setting of targets and the management of achievement of those targets.

As a result of these lessons, enhanced management information systems are a priority to facilitate easy access to information on the performance of individual offices and teams. We have also negotiated ‘stretching’ but achievable targets with our clients rather than accepting targets where we had grave doubts that they could be achieved.

The success story in 1999–2000 has been the turnaround in Call Centre performance. Productivity increased by nearly 50 per cent and customer satisfaction by 15 per cent with average response times reducing from 177 to 70 seconds. Despite answering 22.5 million customer calls, an increase of more than 2 million on 1998–99, our busy rates declined by nearly 60 per cent. Further improvements are planned for 2000–01.

Overall service standards have improved and customers, particularly those in rural Australia, have reported an increase in satisfaction with Centrelink’s people, services and information. On top of this,

we have received our highest ever customer ratings for our Customer Service Centres and Call Centres.

Centrelink produced a sound financial result for the reporting year with its Annual Financial Statements again being signed by the Auditor-General without qualification.

We achieved:

a significantly improved operating result with a surplus before abnormal items of $24.8 million; the return to Government of all required efficiency dividends totaling $210.8 million and

incorporating a 10 per cent reduction in fees paid by client agencies, a standard efficiency dividend of an additional 1 per cent (cumulative each year) of total net operating costs and a dividend of $25.4 million;

a positive cash position of $55 million without recourse to borrowings; and a positive net equity position.

The Next 12 Months and BeyondThe theme for Centrelink’s Business Plan 2000–01 is doing our Current Business Better. The Business Plan identifies seven key objectives, which are outlined in Chapter 1, Introducing Centrelink, page 2. The Business Plan will be used throughout the organisation as the basis for detailed business improvement plans.

Centrelink has embarked on the development of a new service delivery model. The new model means that Centrelink will deliver one-to-one service based on a customer’s ‘life events’. ‘Life events’ are experiences such as having a baby, looking for a job, planning for retirement or arriving to settle in Australia.

The Centrelink ‘life events’ model of service delivery is being developed in consultation with client departments. The first critical step in developing the new service delivery model was the implementation of one-to-one service, which was completed at the end of 1999. Centrelink’s one-to-one service is a personalised approach to service delivery and is increasingly being delivered around the ‘life events’ approach. We are also exploring how to take advantage of the Internet for online service delivery and to position Centrelink for the Government’s Welfare Reform Agenda.

Improving Centrelink’s people management, our least satisfying Balanced Scorecard performance indicator for the last two years, will be a critical factor in our readiness to meet the demands of the new model. It remains, for the Board and management, one of our greatest challenges and it will be the target for substantial effort at all levels throughout Centrelink during 2000–01.

The effective delivery of programs and services in rural and remote areas will continue to be a key priority with a particular focus on increasing services through agents and electronic service delivery.

During the New Year, we intend to sharpen our focus on outcomes and improve consistency through the continued development of a performance-driven culture. While we have been able to demonstrate excellence in specific areas, our challenge for the future is to exceed expectations across all activities at all times. We will need to refine and possibly reduce the present number of key performance indicators to better measure performance in an environment of continuous improvement and the pursuit of excellence.

ConclusionI thank the ever increasing number of clients for putting faith in us to deliver services in a way which meets both their own and their customers’ needs. I also thank members of the Board for their contributions to Centrelink during 1999–2000. In particular, I want to acknowledge Mr Robin Marrett, the inaugural Chairman of the Board, who retired on 26 July 2000, for the part he played in guiding

Centrelink’s development. I also acknowledge the efforts of Mr Philip Pearce, who was a member of the Board and Chair of the Quality Committee until he passed away on 22 October 1999.

The Board was pleased to welcome its new Chairman, Mr John Pascoe AM, and new member, Mr Don Fraser, who bring to it a wealth of experience in corporate strategy and planning and customer service networks.

Most of all, I want to particularly acknowledge the hard work of our people—they have coped well with a rapidly changing organisation and an array of new government policy initiatives over the past 12 months.

Centrelink will continue to make a difference to the people of Australia by delivering the Government’s social policy agenda at increasing levels of service and cost efficiency. We intend to exceed the Government’s expectations of the organisation.

Sue Vardon

Chief Executive Officer

Message from the ChairmanCentrelink is widely recognised as an innovative and leading edge provider of government services and, therefore, it is with much pleasure that I have accepted the appointment of Chairman of the Centrelink Board of Management.

I acknowledge the efforts of Mr Robin Marrett, the inaugural Board Chairman, for the part he played in guiding Centrelink’s early development. I look forward to working with Sue Vardon, the other Board members and the Centrelink team in building on the solid foundation and successes achieved in Centrelink’s first three years of operation.

John Pascoe AM

Chairman

3. Performance ReportTable 2: Centrelink’s Performance at a Glance; Figures 2–5: Our Results

OUR CLIENT PARTNERSHIPS

OUR CUSTOMERS AND COMMUNITY

Our Key Result Areas (Strategic Goals)

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

To increase customer and community involvement and satisfaction with services.

Our Results Figure 2 Figure 3

Our Outcomes The results show outcomes against all key performance indicators set by client agencies. The outcomes for July–November reflect the 1998–99 scorecards, which was replaced in October 1999. Since that time, overall performance remained relatively stable against an increased number of key performance indicators.

The results show the average level of customer satisfaction across a range of Centrelink services, with the overall target represented as ‘1’. Although in May 2000 overall satisfaction with the quality of service fell by 4% to 66% nationally, this was still 1% above the rating achieved 12 months earlier.

Our Achievements Retained 100% of existing business and gained new business

Commenced partnerships with seven newly established Rural Transaction Centres

Achieved 2% above benchmark for social security compliance reviews

Implemented the reforms of the Social Security (Administration) Act 1999

Launched the Preparing for Work initiative

Increased number of Veterans’ Information Services to 15 sites

Increased customer satisfaction in Customer Service Centres and Call Centres

Increased Call Centre performance and established new Indigenous and Rural Call Centres

Implemented one-to-one customer service throughout the network

Implemented the Payment Cycles arrangements

Established a range of community partnerships and strategic alliances

Expanded Centrelink services for Indigenous customers in rural and remote areas

OUR PEOPLE OUR COST EFFICIENT ORGANISATION

OUR INNOVATIVE ORGANISATION

To create an environment where Centrelink’s people give value to customers, client agencies and the community through their skills and

To manage our business efficiently and return a dividend to Government.

To provide innovative and personalised solutions, consistent with Government policy.





















commitment to service.

Figure 4 Figure 5 Centrelink provided an Expense Budget of $65m for projects in 1999–2000 funded from maintenance money. This was allocated between projects focusing on enhancing current





















operations, implementing legislative requirements and developing and enhancing future electronic service delivery. In order to ensure that the limited funding was spent on the most important issues, projects were centred around





















the outcomes specified in the current Business Plan and future service delivery mechanisms. The service delivery enhancements include:

Centrelink Online, which provides the infrastructure





















to support the Call Centre and Families Tax System

Call Centre Automation, which will improve the timeliness and effectiveness of services

Seed funding to explore various options to support





















electronic service delivery of the ‘life events’ model

The results show data collected and reported quarterly. The significant improvement recorded in the October–December quarter is attributed

The results show year to date variance in planned and actual operating results before abnormal items. Centrelink incurred a net operating deficit





















to very positive staff poll results.

of $4.9m (after abnormal items) for the year 1999–2000.

Implemented the new Public Service Act 1999

Conducted two staff polls showing the overall level of staff satisfaction has

Improved operating result with a surplus before abnormal items of $24.8m

Returned to Government the prescribed efficiency

Improved the Call Centre system to include Global Call Handling

Conducted Multimedia Payphone trials in





















generally improved Received public recognition

for Workplace Diversity initiatives

Improved workers’ compensation management led to a reduced prescribed premium for 2000–01

dividend of $210.8m Made additional savings of

$18m from national contract management

Established the Cost Optimisation Project to enhance Centrelink’s approach to strategic cost

partnership with HIC, DEWRSB and Telstra

Participated in the TIGERS project to improve service delivery

Developed a draft version of the Enterprise Architecture to enhance Centrelink’s





















Improved productivity and received a 2.5% pay rise in July 2000

management ability to deliver new and changed business services rapidly

Developed the Rural CD-ROM to increase support for rural agents

Developed 1Business, the Centrelink Education





















Network and CentreThink

The Balanced ScorecardThe key instrument for measuring and reporting Centrelink’s performance in 1999–2000 is the Balanced Scorecard.

The 1999–2000 Balanced Scorecard was developed last year through an extensive consultative process. In September 1999 the Board of Management agreed to adopt the revised Scorecard. Performance measures underlie each Key Result Area of the Scorecard, which correspond directly to the goals in the Strategic Framework.

New measures introduced in the 1999–2000 Scorecard are designed to better reflect our business. For example, a wide range of key performance indicators contained in the Business Partnership Agreements with our client agencies are now measured in the Scorecard. Performance for each scorecard measure is expressed against the relevant target or standard for that measure.

There has been greater acceptance of this revised Scorecard as a planning and monitoring tool with increased alignment to corporate governance, performance feedback and strategic directions. The Scorecard will be applied to each operational unit in Centrelink during 2000–01, improving consistency and comparability across the organisation.

Performance against the Scorecard was reviewed monthly by the Board of Management in order to identify and remedy emerging problems at an early stage.

Figure 6: 1999–2000 Centrelink Balanced Scorecard

4. Our Client PartnershipsGoalCentrelink’s goal is to build partnerships with client agencies that deliver the required results and provide value for money. The Balanced Scorecard measures our performance towards this goal through the Client Partnerships Key Result Area.

OverviewCentrelink is committed to developing and maintaining strong partnerships with its clients to assist in the effective delivery of government outcomes. By providing integrated access to a range of Commonwealth Government services, Centrelink aims to achieve best practice in service delivery for its clients, customers and the Government.

Centrelink’s Community Segment Teams and the Business Development Unit have worked proactively with our client agencies this year under the purchaser/provider framework, which formalises these relationships through our Business Partnership and Service Level Agreements (see Chapter 1, Introducing Centrelink, page 4 for more information).

The Community Segment Teams have prime responsibility for ensuring that client agency policies are properly implemented through the effective delivery of services to the community. These teams provide direct support to staff within the Centrelink network through close links with client agencies, development of consistent and integrated service delivery strategies and a continual focus on improving the quality of services.

The Business Development Unit’s role is to support the Community Segment Teams in establishing and maintaining their relationships with client agencies, to develop new business for Centrelink and to negotiate Business Partnership Agreements.

Key StrategiesCentrelink business strategies and activities are designed to:

build client agency loyalty by delivering Business Partnership Agreement outcomes;

better inform clients about program and delivery performance; deliver value for money services that meet or exceed client requirements; identify and develop new business opportunities and priorities; develop Centrelink’s business capability platform; and deliver performance-assured products and services.

FocusTo achieve our client partnerships goal this year Centrelink has focused its energies on increasing the percentage of our business which is covered by long-term Service Level Agreements and improving the delivery of client agency outputs as specified in our Business Partnership Agreements. Our endeavours have also been focused on working efficiently and effectively with our clients to assist them in maximizing government outcomes.

Outcomes AchievedClient Agency Satisfaction—Consolidating RelationshipsUntil recently client agency satisfaction has been recorded in the Balanced Scorecard through the measurement of the number of Business Agreements that have been renewed with existing clients. During 1999–2000 Centrelink retained 100 per cent of its existing client base and entered into arrangements with a number of new clients. At 30 June 2000, Centrelink had arrangements with the following client agencies:

Department of Family and Community Services (FaCS), including the Child Support Agency (CSA);

Department of Education, Training and Youth Affairs (DETYA); Department of Employment, Workplace Relations and Small Business (DEWRSB); Department of Agriculture, Fisheries and Forestry (AFFA); Department of Health and Aged Care (Health), including the Office of Hearing Services; Department of Transport and Regional Services (DoTRS); Department of Veterans’ Affairs (DVA); Australian Electoral Commission (AEC); Department of Communications, Information Technology and the Arts (DOCITA); Tasmanian State Government; NSW State Government; State and Territory Housing Authorities; and Department of Foreign Affairs and Trade (DFaT).

Client Agency Satisfaction—Value for MoneyDuring 1999–2000 the Balanced Scorecard performance measure for Client Satisfaction was revised and will now be determined through the ‘Value for Money’ question on the Client Agencies Survey. This survey will form part of Centrelink’s integrated research framework and is currently being developed as a major priority for 2000–01.

Business Partnership Agreement Outcomes

Department of Family and Community ServicesCentrelink completed 1999–2000 by meeting a substantial majority of FaCS performance targets. While a number of different indicators have been agreed with FaCS to assess Centrelink’s

performance across the various program types, timeliness and accuracy remain the two key performance measures.

Centrelink exceeded the FaCS Business Partnership Agreement timeliness standards for approximately 83 per cent of all payments during 1999–2000. Call Centre wait times have also continued to be well under the agreed standard despite a sharp increase in FAO and tax reform-related enquiries during the latter part of 1999–2000 (see Chapter 5, Our Customers and Community, page 45).

As the principal service delivery agency for FaCS, Centrelink has prime responsibility for the delivery of specific products and services to the Australian community to a set of agreed standards. Centrelink has worked very closely with FaCS during the year to further refine the Business Partnership Agreement and strengthen this service delivery relationship. Building on this successful partnership, on 26 June 2000, Centrelink and FaCS signed the Business Partnership Agreement 2000–01.

Table 3: FaCS Timeliness and Accuracy Performance

KEY PERFORMANCE INDICATOR

TIMELINESS ACCURACY*

Target

%

Performance

%

Target

%

Performance

%

Age Pension 80 87 95 98

Disability Support Pension 70 73 95 98

Sickness Allowance 85 81 95 98

Carer Payment 80 89 95 98

Carer Payment 70 93 95 97

Mobility Allowance 85 84 95 99

Newstart Allowance 80 84 95 99

Mature Age Allowance 80 94 95 99

Partner Allowance 80 95 95 99

Youth Allowance 70 80 95 99

Austudy Payment 70 73 95 98

Family Allowance 85 94 95 97

Family Tax Payment 85 95 95 99

Parenting Payment (Partnered) 80 91 95 97

Parenting Payment (Single) 90 95 95 98

Maternity Allowance 85 95 95 98



Widow Allowance 75 88 95 99

Special Benefit 90 69 95 98

* The accuracy performance figures above have been extracted using Centrelink’s Procedure and Accuracy Checking Tool for the period 1 July 1999–24 May 2000. From 25 May 2000, Centrelink began upgrading its accuracy checking software to Quality Online.

Major InitiativesDuring the year Centrelink:

implemented the following budget initiatives:– Newly Arrived Residents Waiting Period policy;– Special Employment Advance; and– Moving to an Area of Lower

Employment Prospects. implemented the Social Security (Administration) Act 1999 changes for service delivery (see also

Chapter 5, Our Customers and Community, page 44); developed REMOVE, an Intranet tool to help provide job seekers with quick replies to their

relocation queries (see Chapter 8, Our Innovative Organisation, page 105); issued Health Care Cards to foster carers for the first time as part of the new Foster Carer

Package; implemented the extension of Family Allowance to families with dependent children aged 16–24; developed the Portability Simplification and Comparable Foreign Pension projects; participated with FaCS in a series of workshops with Indigenous families which resulted in an

Extended Family Care Pilot program now taking place in Queensland, New South Wales and South Australia;

commenced a banking trial with the Tangentyere Community near Alice Springs to assist Indigenous customers in transferring from cheque/food voucher payments to the use of banking services (see also Chapter 5, Our Customers and Community, page 53);

introduced Crisis Payment to customers eligible for a Centrelink primary payment who were released from jail, or who were suffering domestic violence and unable to return home, or experiencing a major crisis preventing return to home;

introduced the CDEP Participant Supplement and developed a new administrative system in partnership with ATSIC to manage responsibilities with CDEP participants and social security payments (see also Chapter 5, Our Customers and Community, page 52); and

implemented the extension of Mutual Obligation to job seekers aged 25–34 years (a joint initiative with DEWRSB).

Department of Education, Training and Youth AffairsCentrelink’s overall performance in meeting DETYA outputs has been pleasing with all key performance indicators being achieved, with the exception of Literacy and Numeracy placements. While the number of referrals that resulted in placements in Literacy and Numeracy training was lower than anticipated, the implementation of a number of measures through the year resulted in a substantial improvement over the number of placements achieved in 1998–99.

Table 4: DETYA Performance Summary

KEY PERFORMANCE TARGET PERFORMANCE

Referral and Placement Service

Literacy and Numeracy Assessment referrals

15 000 pa 17 339

Literacy and Numeracy placements

11 400 pa 9 254

New Apprenticeship Access Programme referrals

500 pa 1 053

Advanced English for Migrants Programme referrals

3 200 pa 3 072

There were different performance measures during the financial year for the following DETYA payments:

Effective from 1 July 1999 to 31 December 1999:

ABSTUDY and Assistance for Isolated Children (AIC)—finalise completed applications within seven working days of receipt at the relevant Centrelink processing centre; and

Correctly determine eligibility, entitlement and payment destination.

The following measures were effective post 31 December 1999: Process ABSTUDY and AIC payments within 21 days of claim lodgement; and Accurately determine sampled grants and reassessments.

Table 5: ABSTUDY and AIC Performance 1 July 1999 to 1 December 1999



Target

%

Performance

%

Target

%

Performance

%

ABSTUDY 70 67 95 97

AIC 70 81 95 99

Note: The above data relates to claims processed on the Education Student Assistance Scheme (ESAS) system to the close of the processing period. The processing period ceased in October 1999 and ESAS also closed at this time.

Table 6: ABSTUDY and AIC Performance 1 December 1999 to 30 June 2000



Target

%

Performance

%

Target

%

Performance

%

ABSTUDY 70 72 95 97

AIC 70 75 95 99

Note: The above data relates to the processing period which commenced in December 1999 and ended at 30 June 2000 on CEPS.

Figure 7: DETYA Referrals and Placements Performance Summary

Major InitiativesDuring the year Centrelink:

implemented the Centrelink Education Payments System (CEPS), replacing SAS (see Chapter 8, Our Innovative Organisation, page 103);

introduced the ABSTUDY 2000 policy; actively participated in Youth Week activities (see Chapter 5, Our Customers and Community,

page 57); developed an outreach package for the Centrelink network that included information on DETYA

programs for young people; and Participated in the DETYA Youth Roundtable (see Chapter 5, Our Customers and Community,

page 58).

Compliance Activities—FaCS and DETYAThe Compliance Benchmark is a performance indicator in the Key Result Area of Client Partnerships, under the 1999–2000 Balanced Scorecard. It is composed of four elements:

FaCS Compliance Reviews DETYA Reviews Prosecution Referrals Child Care Service Reviews

Further information on debt prevention activities can be found in Chapter 7, Our Cost Efficient Organisation, page 95 and Appendix ix, Compliance, page 219.

FaCS Compliance ReviewsCompliance review activity focuses on cases considered at high risk of incorrect payment as a result of fraud, misrepresentation, error or omission on the part of the customer. Risk-based reviews are conducted where there is a documented risk of incorrect payment, and include:

data-matching; tip-offs from the public; and Risk-based algorithm reviews.

The benchmark for FaCS compliance review activity totalled $698.6 million in savings and debts. Against this, compliance reviews achieved $712.8 million in combined savings and debts, 2 per cent above the benchmark.

DETYA Reviews

Reviews of entitlements are conducted for recipients of ABSTUDY and AIC where there is considered to be a high risk of incorrect payment due to fraud, misrepresentation, error or omission on the part of the customer. Risk-based review activity includes enrolment checking, tip-offs from the public and data-matching. The benchmark for savings and debts from DETYA compliance activity is $10.4 million. Against this, DETYA reviews achieved $12.7 million, 22.4 per cent above the benchmark.

Prosecution ReferralsThe benchmark for prosecutions was set at 4000 referrals to the Director of Public Prosecutions. This comprises 3950 FaCS payment cases and a further 50 DETYA payment cases. Against this, a total of 4023 cases were referred to the Director of Public Prosecutions for consideration of prosecution action during 1999–2000, 0.6 per cent above the target. Of these, 3967 were FaCS cases and 56 were DETYA cases.

Child Care Service ReviewsRegarding child care services, Centrelink agreed to conduct a total of 1000 reviews and outreach/educational visits nationally. These reviews are conducted to ensure correct payments are made to providers under the Child Care Service program. This benchmark was included in the FaCS 1999–2000 Business Partnership Agreement. Centrelink conducted 916 reviews and 493 educational visits (1409 in total), 40.9 per cent above the benchmark.

Overall Compliance AchievementThe overall achievements against the Compliance Benchmarks are shown in Figures 8 to 11 below.

Figure 8: FaCS Compliance Reviews

Figure 9: DETYA Reviews

Figure 10: Prosecution Referrals

Figure 11: Child Care Service Reviews

Department of Employment, Workplace Relations and Small BusinessThe 12 DEWRSB key performance indicators continued to be a challenge for Centrelink during 1999–2000. Steady improvement has been achieved against those key performance indicators for which data has been available. Initiatives such as the new Sprite (see Chapter 8, Our Innovative Organisation, page 104), Preparing for Work Agreements, and improvements in system interfaces will enhance our ability to make further progress towards achieving key performance indicators over the coming year.

Table 7: DEWRSB Performance Summary KEY PERFORMANCE TAR


TARGET PERFORMANCE

Job Seeker Satisfaction 80% 79%

Enrolment for Job Matching 100% within 28 days 74%

Job Network Members—

Breaches applied60% of JNM breach notifications are applied

58%

Job Network Members—

Breaches maintained75% of decisions are maintained

80%

Intensive Assistance Point-in- 100% JNM above 97%


TARGET PERFORMANCE

Time Capacity (Job Network Members)

85% PITC

Intensive Assistance Point-in-Time Capacity (Job Network National)

90% 98%

Job Search Training contracted places filled

100% 80%

Indigenous Intensive Assistance

6.2% 5.2%

Work for the Dole Point-in-Time Capacity

75% 49%

Work for the Dole Breach action

85% 65.7%

Work for the Dole—placements 32 500 39 778

Table 8: DEWRSB Service Provider Satisfaction Summary


TARGET%

PERFORMANCE%

Job Seeker Satisfaction— Overall Services

80 79

Service Provider Satisfaction— Overall Services

80 87

Major InitiativesDuring 1999–2000 Centrelink:

upgraded the Employment Self Help facilities in a number of Sydney Olympic gateway sites to enable job seekers to automatically match their résumé against vacancies in the national vacancy database;

facilitated the transfer of job seekers to the new Job Network members as part of the implementation of Round 2 Job Network contracts;

implemented the Return to Work program; managed Centrelink aspects of the introduction of Community Work Coordinators as part of

changes to Work for the Dole; implemented the extension of Mutual Obligation to job seekers aged 25–34 years (a joint initiative

with FaCS); and developed the Preparing for Work Agreements initiative, which was implemented on 1 July 2000.

Department of Agriculture, Fisheries and ForestryCentrelink continued to deliver Farm Help—Supporting Families through Change, Exceptional Circumstances Relief Payment (ECRP) and ex-gratia payments (for Newcastle disease and farmers in hardship in central north-east South Australia) during 1999–2000 on behalf of AFFA. In response to audit findings early in the year, Centrelink has introduced a Rural Processing Unit in Area West Victoria from 1 July 2000 to address concerns around poor timeliness performance for Farm Help. Monitoring by the unit and streamlining of processes will assist in improving timeliness performance. These changes were made in consultation with the client department to provide a more responsive service to farmers.

ECRP’s performance was affected due to the fact that customers are able to be paid up to six months in arrears from the time a claim is lodged, based on the commencement date of their Exceptional Circumstances certificate. Centrelink is currently investigating processes to ensure the timeliness standard is based on when the claim is lodged rather than the date from which arrears payments apply.

Major InitiativesDuring 1999 Centrelink was engaged by AFFA to deliver a major component of the new Dairy Industry Adjustment Package, the Dairy Exit Program. This program is designed to assist dairy farmers through the transition to a deregulated milk market from 1 July 2000 and Centrelink’s role is to assess the entitlements of eligible dairy farmers and deliver exit payments. Service Level Agreements are being negotiated with the Australian Dairy Corporation and Dairy Adjustment Authority to deliver this new program.

Table 9: AFFA Performance Summary

KEY PERFORMANCE INDICATOR TIMELINESS

Target

%

Performance

%

Farm Help 80 71

ECRP 80 38

Note: The Farm Help key performance indicator relates to the percentage of Restart Income Support claims granted within the agreed timeframe.

Table 10: CSA Performance Summary


Target

%

Performance

%

Child Support Applications processed 95 79

Child Support AgencyThe co-location of the CSA at 21 Centrelink sites this year has provided a one-stop-shop for CSA/Centrelink customers. Importantly, Centrelink and CSA are committed to working together over the following year to improve the timeliness of the customer registration process. A best practice

document has been developed in consultation with the CSA and Area Support Offices and system enhancements are being investigated.

Major InitiativesDuring 1999–2000 Centrelink:

improved the Registration Reform Practices; implemented the Government’s $260 minimum liability initiative; and Formalised CSA visiting service arrangements throughout the Centrelink network.

Department of Health and Aged CareDuring 1999–2000 Centrelink continued to improve its processing of income assessments for aged care residents, to enable Health to determine residential care fees. Centrelink consulted with key stakeholder agencies to streamline processing, and has also undertaken considerable additional work to finalise income assessments for a significant number of aged care residents. Enhanced monitoring of processing performance has also been introduced across the network.

Major InitiativesCentrelink submitted a bid for Health’s $42 million four-year tender to establish Carelink Centres in each Home and Community Care region across Australia. As at 30 June 2000, the outcome of the tender had not been announced.

Table 11: Health Performance Summary


Target

%

Performance

%

Matching and providing data to Health within 3 working days

85 85†

Matching and providing data to Health within 8 working days

100 88†

Assessing Non-Pensioner income details within 5 working days

85 100‡

Assessing Non-Pensioner income details within 10 working days

100 100‡

Income assessment updated within 5 working days

85 99§

Income assessment updated within 10 working days

100 99§

* Data not available for May 2000.

† Data relates to timeliness performance from start of aged care income assessment in March 1998 to 30 June 2000.

‡ Data relates to timeliness performance during 1999–2000.

§ Data relates to the population of aged customers as a whole; data specific to aged care residents is not available. Timeliness data relates to performance during June 2000.

Office of Hearing ServicesOn behalf of the Office of Hearing Services, Centrelink maintains a Freecall™1800 telephone service to customers seeking referral to hearing services.

Centrelink also processes applications for hearing assessment, hearing rehabilitation and the selection and fitting of hearing aids.

Measurable performance targets were achieved for approximately three quarters of 1999–2000. The final quarter saw performance drop below the target of 95 per cent of applications processed within three working days of receipt. This was generally attributed to staff turnover. An internal review of processes has been completed, together with the development of a training/retraining program. Centrelink has now implemented more streamlined procedures, which should position it to achieve agreed targets in 2000–01.

Department of Transport and Regional ServicesDuring 1999–2000, Centrelink has implemented the Tasmanian Freight Equalisation Scheme (TFES) Rate Review for DoTRS, as well as managing an increase of 25 per cent in the number of claims withinexisting resources. An organizational review of Centrelink’s Tasmanian Freight Assistance team has been undertaken as well as an internal audit on service delivery. Customer feedback obtained during the year has also shown a high level of customer satisfaction.

Department of Veterans’ Affairs In 1999–2000, Centrelink further increased the number of sites at which it offers an Information Service to the veteran community on behalf of DVA. Located within Centrelink Customer Service Centres, this service offers a separate waiting area for veterans and is staffed by specialist information officers trained by DVA. In three sites, Centrelink also has agreements with DVA to provide a Community Advisor Service for the veteran community.

Major Initiatives

Centrelink successfully tendered in 1999–2000 to provide further Veterans’ Information Services in Bega, Mackay, Roma, Gladstone and Thursday Island. Veterans’Information Services are now available in 15 Customer Service Centres in New South Wales, Queensland and South Australia, with a site to be opened in Tasmania in July 2000.

(See also Chapter 5, Our Customers and Community, page 51.)

Table 12: DoTRS Performance Summary

ACTIVITY TARGET PERFORMANCE

Claims Arrears < 60 days 109

Timeliness—TFES < 8 days 7.9

TFES Claims Age (<15 days)* 100% 90.2%

*Calculated as a percentage of claims on hand where individual claims aged over 15 days could be counted up to four times per month due to time taken to complete processing.

Australian Electoral CommissionCentrelink has been working cooperatively with the AEC in implementing the recommendations of the 1996 Joint Standing Committee on Electoral Matters. This arrangement has contributed to an increase in the participation rate of electors and to improved accuracy of the electoral roll.

Department of Communications, Information Technology and the ArtsCentrelink operates the Government Information Centre in Launceston, Tasmania, on behalf of the Office for Government Online, DOCITA, in cooperation with the Tasmanian State Government. The Government Information Centre provides Call Centre access for information about government services in Tasmania (see also Chapter 8, our nnovative Organisation, page 106).

Tasmanian State GovernmentOperating under a letter of intent, Centrelink has established co-located sites with Service Tasmania, the Tasmanian Government Agency.

These sites provide a one-stop-shop for government services in five sites in Tasmania (see also Chapter 8, Our Innovative Organisation, page 106).

NSW State GovernmentCentrelink provides office accommodation for the NSW State Government’s Department of Housing at the Singleton Centrelink Customer Service Centre. To assist the Department of Housing, Centrelink also provides reception services at this location.

State and Territory Housing AuthoritiesIn order to assist Centrelink’s customers and all State and Territory Housing Authorities, Centrelink is contracted to automatically deduct rent payments from customers’ accounts and then transfer the payment to the relevant housing authority. These are voluntary arrangements whereby Centrelink’s customers can choose to join or opt out whenever required.

Other AchievementsCentrelink’s business priorities in 1999–2000 were to continue to consolidate its business relationships with existing clients and pursue strategic business opportunities to strengthen the Centrelink image within the community.

Implementation of Tax ReformAs a component of the Government’s tax reform agenda, Centrelink became a partner agency with the ATO and the HIC in a unique arrangement to establish the Family Assistance Office (FAO). FAO will provide assistance, information and payments to more than 2 million families.

From 1 July 2000, FAO will be located in all Centrelink Customer Service Centres, Medicare Offices and ATO sites. Families will be able to access an integrated range of family assistance payments and services from over 550 sites across Australia. Centrelink computer systems will process all new FAO payments for all customers.

Family payments and services will be simpler. Twelve complex payments for families with children will be replaced with three new payments. The new payments are Family Tax Benefit Part A, Family Tax Benefit Part B and Child Care Benefit.

Centrelink also responded to changes supporting the New Tax System as part of the Government’s reform initiative. Work was undertaken to prepare for the major tasks of delivering savings bonuses for older Australians and self-funded retirees, the Goods and Service Tax (GST) Assistance Scheme, Family Adjustment Payment, increases in payments for all Centrelink customers, and changes to a number of other payment rules, from 1 July 2000.

The savings bonuses will provide one-off tax-free payments to eligible Australians from 1 July 2000. Around 1.5 million claim forms were issued to Centrelink’s customers, to ensure people who have

income from savings and investments are adequately compensated for the loss of purchasing power following the introduction of the GST. As well as assessing claims from its own customers, Centrelink will receive and process assessments done by the ATO and DVA for their customers.

A GST Assistance Scheme, for those not compensated through either the taxation or income security systems, will be administered by Centrelink.

All payments made by Centrelink will be increased, income and assets thresholds will rise and, for pensioners, the withdrawal rate under the income test will reduce.

Welfare Reform AgendaCentrelink provided a submission to the Reference Group on Welfare Reform containing around 300 individual comments and suggestions from Centrelink’s service delivery network. Centrelink’s one-to-one service delivery model and ‘life events’ approach were considered as part of the recommendations contained in the Reference Group’s interim report released in March 2000. The report and Centrelink’s submission (number 241) can be viewed at the FaCS Internet web site at www.facs.gov.au under Welfare Reform. Centrelink will perform a key gateway role for the implementation of the new government agenda.

Family Law PathwaysCentrelink is represented on the Family Law Pathways Advisory Group convened by FaCS. The group’s terms of reference are to provide advice to Government on how to achieve a family law system that provides effective support for families, coordinates customer-focused information and services, and provides pathways that are effective and appropriate. The establishment of this high-level group forms part of the Stronger Families and Communities Strategy, which has a key component that focuses on outcomes to strengthen marriage and relationships. Centrelink has also provided a full-time staff member to work for the secretariat of this committee.

Youth Pathways Action Plan TaskforceCentrelink is involved in the taskforce’s interdepartmental committee, which supports the taskforce in setting a five-year framework for programdelivery to youth. The framework will focus on the areas of homelessness, family breakdown, employment, education and training, suicide prevention, early intervention and community-based initiatives. The taskforce is made up of government and nongovernment representatives and is chaired by Captain David Eldridge of the Salvation Army. The interdepartmental committee includes representatives from FaCS, DETYA, the Attorney General’s Department, DEWRSB, Health, Prime Minister and Cabinet, DoTRS and Centrelink. Centrelink provided a submission to the taskforce and extensive feedback on the first draft of the report. The taskforce is expected to finalise the report in September 2000 to report back to the Government.

Social Work ServicesIn line with their internal training and support role, Centrelink’s Social Workers are increasingly being asked to provide training for customer contact staff in other human service organisations. In 1999–2000, Centrelink Social Workers provided interpersonal skills training for staff working in the electorate offices of Members of Parliament throughout Australia and for Emergency Relief providers in four pilot sites across Australia. This training focused on improving the communication and referral skills required when working with people with complex difficulties.

Carer AllowanceAn important initiative of the 1998–99 Budget was the introduction of the new Carer Allowance which incorporated the former Child Disability Allowance and Domiciliary Nursing Care Benefit. The implementation of this initiative involved the transfer of 50 000 customers from Health into the Centrelink network. The Centrelink Carers’ Team was awarded an Australia Day Award for their innovative approach and exceptional customer service during the implementation of this project (sees also Chapter 9, Corporate Overview, page 120 for details of other awards).

Joint Operations GroupsA series of Joint Operations Group meetings have been convened between Centrelink and client agencies. The meetings have proved to be an excellent forum to work through operational and technical issues in a collaborative manner. Significant progress has been made on a number of highly complex matters as a result of recent forums. Centrelink will continue to use this forum to aid understanding and improve outcomes for our customers.

New Business

Department of Foreign Affairs and Trade Centrelink has recently won a three-year tender with DFaT to operate the new Passport Information Service from the International Call Centre in Hobart. The scheduled opening date for this service is early July 2000.

Rural Transaction Centres Centrelink is supporting DoTRS in increasing government services to remote and regional Australia with the establishment of Rural Transaction Centres (see Chapter 5 Our Customers and Community, page 51).

Centrelink International ServicesDuring the year Centrelink centralised a range of processing activities in its Centrelink International Services unit, located in Hobart, to take advantage of specialist knowledge and skills. This unit now has prime responsibility for the payment of foreign pensions under the Social Security Agreements that Australia has with other countries. International Services also manages portability of Australian pensions, reimbursement by the New Zealand Government of pensions paid by Australia to ex-New Zealanders now living in Australia, claims for foreign pensions lodged in Australia and other issues that cross international boundaries.

ChallengesSpecial Benefit was subject to an audit conducted by the Australian National Audit Office (ANAO) in 1999–2000. The ANAO concluded that there was a significant degree of non-compliance of Special Benefit new claim assessment decisions with the Social Security Act 1991, the Guide to the Act and other relevant guidelines. It also concluded that procedures used to monitor and report the accuracy of assessments of Special Benefit new claims were not sufficiently reliable.

The monetary effect of the incorrect assessments was relatively small. The resulting net overpayment of Special Benefit was estimated to be approximately $1.4 million or 2.3 per cent of total Special Benefit payments during the period covered by the audit.

These are relatively complex claims and any one office might make only a handful each year. Hence Centrelink has put in place an intensive monitoring program to expedite finalisation of more difficult cases and address broader policy and procedural issues.

Management of the timeliness of Sickness Allowance processing has also been an ongoing challenge. During 1999–2000, the Centrelink network has achieved significant improvement in timeliness figures, but has been unable to consistently meet the agreed standard of 85 per cent within 21 days. Together, FaCS and Centrelink have closely examined the reasons for delays in processing, including changes to entitlement and admission procedures. It was subsequently agreed to adjust the standard to 80 per cent within 21 days, with effect from 1 July 2000. It is expected that this more realistic estimate of the time required to process claims will be reflected in future timeliness results.

Future OutcomesCentrelink’s priorities for our client partnerships goal for 2000–01 are to:

improve our performance in meeting all client departments’ key performance indicators; strengthen our existing client relationships by focusing on efficiency and providing exceptional

value for money; provide our clients with high quality informative program and delivery performance information; work closely with clients to develop strategies to improve customer access to government services

in rural, remote and isolated areas; implement the new integrated research framework to benchmark our performance against client

agencies, staff, customer and community expectations; and Develop a unified, business-driven approach to risk and performance assurance.

5. Our Customers and CommunityGoalOur goal is to increase customer and community involvement and satisfaction with services. The Balanced Scorecard measures our performance towards this goal through the Customer and Community Key Result Area.

OverviewIn 1999–2000, Centrelink has directed its attention towards improving services to customers. We have further advanced personalised one-to-one service for customers and have improved services to customers who live in rural and regional Australia. The provision of improved services through Centrelink’s Call Centre network has also been a key area of focus for the year.

These and other initiatives have resulted in customers reporting an increase in satisfaction with Centrelink—its people, services and information.

Key StrategiesOur key strategies are to:

develop a better understanding of customer and community needs and expectations; design products and services to meet customer, community and client agency needs and

expectations, and assist Centrelink people in the delivery of service;

link customer service with people management, property plans, investment decisions and technology rollout;

create a customer driven culture; measure customer and community satisfaction; and promote Centrelink’s contribution to the wider community.

FocusThe main themes within these strategies for 1999–2000 have been:

improved access to services, including the implementation of one-to-one service throughout the Centrelink network;

improved rural and remote servicing; building partnerships; working with customers and the community; improved access to services and information; and Helping customers through difficult transitions.

Outcomes AchievedCustomer Satisfaction with ServicesCentrelink continues to regularly monitor customer satisfaction with its service through its suite of customer satisfaction surveys (see Appendix xii and Appendix xiii for more details). In the 12 months to May 2000, there was a statistically significant increase in customer satisfaction with Centrelink—its people, services and information—up by 1 per cent to 66 per cent. Overall satisfaction with Centrelink rose by 2 per cent among those customers receiving rural payments. These figures represent a good result given that there were a number of environmental factors that may well have influenced our customers’general perceptions of government service at the time of the survey. The survey period covered the lead-up to the launch of FAO, and other significant external changes including the introduction of the GST and Life Time Health Cover.

Centrelink also regularly monitors customer perceptions of how well it is performing against the key commitments in its Customer Charter. Customer satisfaction with performance against the Customer Charter remained stable. A summary of performance against the Charter commitments can be found in Appendix xiii and the Charter’s status can be found in Appendix xi. Customers’ awareness of the Charter has risen 4 per cent since May 1999, but still remains quite low at only 12 per cent.

Customer Satisfaction with Service Delivery ChannelsCentrelink’s two main methods of delivering services, Customer Service Centres and Call Centres, have recorded their highestever customer satisfaction results in the 12 months to May 2000. Overall, customer satisfaction has risen significantly for both Customer Service Centres (up 4 per cent to 77.2 per cent) and Call Centres (up 9.8 per cent to 70.1 per cent). Customers living overseas continued to be very satisfied with the overall quality of Centrelink service (up 2 per cent to 94 per cent).

Customers accessing Centrelink services through Centrelink’s extensive network of visiting services and agents rated the quality of these methods of access highly, with satisfaction rates of 79.7 per cent and 83.9 per cent respectively.

Customers’ satisfaction with ease of access to Centrelink services significantly increased over the year (up 5 per cent to 59 per cent), with room for further gains.

Centrelink’s telephone service continued to improve over the year reflected by an increase in customer satisfaction, recorded in May 2000, against both ‘time on hold’ (up by 16.5 per cent to 32.4

per cent) and ‘ease of getting through’(up by 11.8 per cent to 60.1 per cent). ‘Ease of getting through’ is the primary key driver of customer satisfaction with Centrelink’s Call Centre service, while ‘time on hold’ is ranked as the fourth most important key driver.

LoyaltySince May 1999 there have been increases in customer loyalty both nationally and across our two main service delivery channels (Customer Service Centres and Call Centres). Nationally the number of customers who have said that ‘if another organisation could offer the same services as Centrelink, they would remain with Centrelink’ increased by 1 per cent to 54 per cent. Levels of customer loyalty are now consistent for both Customer Service Centres and Call Centres (at 50.1 per cent and 50.4 per cent respectively), with an increase of 2.2 per cent for Customer Service Centre customers and a 5.7 per cent increase for Call Centre customers.

FavourabilityOver the last 12 months the favourability rating (the overall impression of the organisation) by Centrelink’s customers has remained stable. In the same period the general community’s favourability rating slightly increased for Centrelink and decreased for all other organizations measured.

Centrelink’s Value to the CommunityCentrelink’s image as an organisation who cares about its customers, understands their needs and is easy to deal with, has improved significantly since May 1999 for both Call Centre and Customer Service Centre customers. Customers continue to place high value in having a physical Centrelink presence in their community (95 per cent). All customer groups rated this feature highly in the 93–99 per cent range. This presence is most important to customers from Disabilities (99 per cent), Rural (98 per cent) and Parenting Payment (Single) (98 per cent) segments.

Other AchievementsImproved Access to Services

One-to-one customer serviceCentrelink made further advances in 1999–2000 towards the implementation of one-to-one service where every customer has one main customer service officer to manage all business that cannot be completed by the customer over the phone. One-to-one service was implemented throughout the network by December 1999.

Having established these arrangements Centrelink is well placed to move to the ‘life events’ approach, where the one-to-one customer service officer will focus on delivering the best mix of products and services to each customer, based on their individual needs and circumstances.

In the National Customer Satisfaction Survey conducted in May 2000, 91 per cent of those customers who had experienced Centrelink’s one-to-one service were satisfied with the one-to-one service arrangement.

Social Security (Administration) Act 1999The Social Security (Administration) Act 1999 was implemented on 20 March 2000. As a result, social security law now comprises the Social Security Act 1991, the Social Security (Administration) Act 1999, and the Social Security (International Agreements) Act 1999. The new legislation makes it easier for customers, or their nominee, to record their intention to claim for financial assistance and to be paid from an earlier date than might otherwise be the case.

The wide ranging reforms had a significant impact on the Centrelink network including through:

the introduction of a standard ‘Intent to Claim’ process across all social security payments and concession cards;

the introduction of a first instalment advance on all social security pensions and benefits; and Changes to notification responsibilities to ensure that all customers notify changes in

circumstances or the likelihood those changes will occur.

Payment Cycles ProjectThe Payment Cycles arrangements announced in the 1997–98 Federal Budget were implemented very successfully by Centrelink in partnership with FaCS.

Payments can now be paid on any week day chosen by the customer and are usually made fortnightly in arrears. Since 1 July 1999, all payments have been based on the number of days in the entitlement period.

All affected customers were advised of the changes to their paydays and transition or adjusting payments were made to 1.3 million customers. Members of a couple had their fortnightly entitlement periods aligned to ensure that changes in circumstances affected both their payments in the same manner. Decisions on the dates of effect of changes have been automated to ensure greater accuracy and consistency when amending entitlements, thereby reducing the risk of overpayments occurring.

The Urgent Payment Policy was reviewed taking into account the impact of Payment Cycles changes. The new policy resulted in a significant reduction in customer enquiries and aggression related to requests for early payments by Electronic Benefit Transfer card and manual cheque. The policy has been favourably received by community agencies who prefer that future payments do not need to be reduced to recover amounts issued early in the pay period. The policy takes account of the needs of customers who are in genuine hardship.

Call CentresIn 1999–2000, Centrelink Call Centres showed unprecedented improvement in overall performance and customer service.

Average speed of answer reduced from 177 seconds in 1998–99 to 70 seconds. Busy rates declined by nearly 60 per cent. Centrelink Call Centres answered 22.5 million customer calls, an increase of more than 2 million on 1998–99. During the course of the year, productivity increased by nearly 50 per cent.

In this year, Centrelink Call Centres were benchmarked internally and externally against other Australian and international Call Centre organisations. Centrelink performed well and achieved many Best in Class performance indicators. Further improvements will be achieved with the Business Plan 2000–01 reflecting areas that require further attention.

Improved call handling capacity resulted from a variety of factors. Firstly our recruitment practices have been fine tuned with higher retention rates of skilled staff. Resource planning and the employment of temporary staff to meet peak demand periods was very successful through both the Payment Cycles implementation and also the traditionally busy Christmas/New Year period.

Online National Information pages were established to enable staff to source all Centrelink change information in real time, thereby enhancing customer service.

The business hours of the Centrelink Call Family and Children line were extended from 8 a.m. to 8 p.m. in 1999–2000, in response to feedback from customers at Value Creation Workshops and via Centrelink’s internal processes.

The lead-up to the implementation of the new tax system and the FAO provided challenges as it was the largest system based change conducted by Centrelink in recent times. The number of customers affected by this change led to unmet call demand through late June 2000 while customers enquired

about the expected changes to their payments. Extensive contingency plans enabled Centrelink Call Centres to continually handle more than 100 000 calls per day through this busy period. An extra 400 staff (both permanent and temporary) were employed between March and August 2000 to meet this expected demand.

Figure 12: Call Wait Time

Centrelink will continue to improve Call Centre operations with the development of automated telephone based customer self service and Interactive Voice Response trials (see Chapter 8, Our Innovative Organisation, page 100). Centrelink has also established a number of additional Call Centre services:

Indigenous Service Line The Indigenous Service Line was implemented in March 2000 as an extension of the Palmerston Indigenous Call Centre, established in December 1998. It provides remote Indigenous customers with personalised service by Indigenous customer service officers located in Darwin and Cairns. Its implementation coincided with the CDEP changes (see Chapter 4, Our Client Partnerships, page 27).

Job Search Training Line The Job Search Training Line provides services to customers on Intensive Assistance and those requiring Job Search Training. A customised service is provided which ensures customers gain access within 15 seconds. All performance standards, contained in the Business Partnership Agreement with DEWRSB, were met.

Additional Call Centre

A new Call Centre was opened at Tweed Heads in March 2000. It is also a FAO site with approximately 80 customer service officers.

Indigenous Call CentreThe Kalgoorlie Indigenous Call Centre, comprising a team of six people, began taking calls in mid July 2000. The official launch will take place in September 2000 during National Aborigines’ and Islanders’ Day Observance Committee week. The catchment area for the KalgoorlieCall Centre will be remote Indigenous communities in Kalgoorlie, Geraldton and South Hedland.

Rural Call CentresIn support of the Government’s commitment to increase services to rural customers to overcome the effects of distance and isolation, Centrelink opened the first of its Rural Call Centres in Maryborough, Queensland, in January 2000. A second Rural Call Centre will open in mid September 2000 in Port Augusta, South Australia. As a result, customers in rural areas of South Australia and Queensland will now have access to a tailored telephone service. As staff employed in these new Rural Call Centres are local, they are more familiar with the needs of our rural customers and specific rural issues.

Consistent with the one-to-one service delivery approach, one operator handles all of a customer’s enquiries, rather than having specialist telephone queues for different payment types.

Centrelink Multilingual CallCentrelink Multilingual Call Centre provides the full range of Call Centre services to customers in their own language and receives on average 20 000 calls each month. Services are provided in 19 languages. An additional nine languages are also supported via a call-back service.

Customer Appointment SystemThe use of appointments to complement Centrelink’s one-to-one service initiative continues to receive a high level of customer approval. From October 1999 to June 2000, appointments on average were

available within 2.6 working days of the customer’s request. In May 2000, 80 per cent of customers were satisfied with the appointment arrangements. Furthermore, 81 per cent of customers were satisfied with the time and date of their appointment. There has been a significant increase in satisfaction with the ease of making an appointment over the phone (up from 76 per cent to 79 per cent).

Since September 1999, an electronic document is attached to each booked appointment, providing an accurate and permanent record of the appointment. This document facilitates a seamless service for the customer from the Call Centre to the Customer Service Centre. The appointment system is also able to record the types of services that particular staff can provide and when those staffs are available. Where a customer has been allocated to a one-to-one customer service officer, the appointment system displays the next available appointment with this officer.

Customer Service CentresPreparation for the establishment of FAO from 1 July 2000 had a major impact on Centrelink Customer Service Centres, requiring a specifically tailored fitout involving changes to signage, image and colour schemes.

The other main changes to Centrelink’s service delivery network during 1999–2000 included:

Positioning Centrelink Customer Service Centres to better meet localised customer demand by expanding shop front services. In addition, 13 Customer Service Centres were relocated to new premises;

improving access in regional and rural Australia through the establishment of eight new small Customer Service Centres; and

Improving access for Indigenous people, through the establishment of an alternative service delivery model for remote Indigenous communities at Maningrida, Northern Territory.

Olympic Jobs InitiativeThe Olympic Games provides a unique opportunity for job seekers to find work in Sydney in the lead up to the Games, and during the actual Games period. Centrelink’s ‘Helping you find work—Gateway 2000 Olympics Employment Strategy’ aims to help as many job seekers as possible find paid work in the greater Sydney area in the lead up to and during the Olympics. In this initiative, Centrelink is working closely with retail, hospitality and catering, transport and logistics and property services (such as security guards), as well as the Olympic Labour Network. This initiative goes beyond the Olympics—the Olympics represent an opportunity to gain skills and experience, but the focus is to assist people into long-term employment.

Case Based Funding TrialIn partnership with FaCS, Centrelink has participated in a trial of case-based funding, a new way of funding disability employment services. Funding is based on a job seeker’s assessed need for assistance in finding and keeping a job. The assessment process involves the application of the Job Seeker Classification Instrument to 1999–2000 Annual Report 48 all participating job seekers. Together with disability factors incorporated through the use of the Work Ability Tables, this information is used to assign a funding band to individual job seekers.

The trial commenced in November 1999 and ended on 30 June 2000. If evaluation results are positive, the trial will lead to a more efficient customer-focused system for funding employment assistance services for disabled customers.

Child Care Crèches for Remote Indigenous CommunitiesJET Childcare Resource Workers and local community councils in a joint initiative with the Jobs, Education and Training program (JET) established crèches at five remote communities in the Northern Territory. JET funding has enabled training needs such as first Aid certificates to be met.

Some of the centres have extended their hours to include out of school care, which has reduced vandalism and other inappropriate activities in the area. One site, at Bathurst Island, was awarded a one-off grant of $20 000 from the FaCS Childcare Program. This enabled the child care centre to extend their service to become a licensed full-time care facility, eligible for Commonwealth child care funding.

Childcare Assistance and immunisationThe Government’s initiative to improve immunisation coverage of children by linking the payment of Childcare Assistance to immunisation status was successfully implemented during the year. In the months leading up to the cancellation action, many customers were contacted personally by Centrelink staff in an effort to maximise the compliance rates and minimise inconvenience for working families. The net effect of the campaign has been to increase immunization rates of children in child care above the national average.

Improving Services to FamiliesWork progressed on a major initiative to improve customer satisfaction with our services for families. Strategies were put in place to:

improve accuracy and consistency of decision making, underpinned by a suite of new electronic reference guides for families staff;

implement innovative ways of providing access to Centrelink products and services; and Develop improved consultative mechanisms to obtain customer feedback from families and key

stakeholders.

Enclaves—Work Opportunities for People with DisabilitiesSeveral Customer Service Centres in Western Australia have initiated innovative projects to provide work opportunities to people with disabilities in their area. Working with local employment and training service providers, the Customer Service Centres have provided opportunities, predominantly to people with intellectual disabilities, to perform administrative work in cooperation with the Centrelink team.

Trial programs have proven very successful, with several offices extending their participation on an ongoing basis. People participating in the programs earn a productivity wage and gain increased self-esteem, independence, and work experience and communication skills. Centrelink staffs receive valuable support in delivering service to customers, while breaking down attitudinal barriers towards people with disabilities and learning about accommodating disabilities in the workplace.

Financial Information Service SeminarsCentrelink’s Financial Information Service (FIS) Seminars are specifically designed to inform people about how to make best use of their financial resources and about the benefits of financial planning for themselves and their families.

The focus in 1999–2000 has been on younger people, with well over half the participants being aged under 55 years. A telephone booking service has been introduced to deal efficiently with demand and to provide customers with attendance options. Of the 90 000 people who attended seminars during the year, about 30 000 used the booking service.

Review and AppealsBy placing the majority of its Authorised Review Officers (AROs) in Customer Service Centres, Centrelink has increased their accessibility to customers and provided a more personalised service to customers who request a review of a decision. This has also enabled AROs to provide more direct coaching assistance to original decision makers in making the correct decision on

customers’entitlements, particularly where the customer’s circumstances and/or policy and legislation are complex.

There were 36 043 requests for internal review in 1999–2000, which represents a decrease of 23.9 per cent over the number of 1998–99 requests. Nationally in 1999–2000, AROs finalised 36 732 reviews within a national average time of 26 days. The corresponding figures for 1998–99 were 46 362 reviews finalised in an average of 39 days.

Improved Rural and Regional Servicing

National StrategySince the implementation of Centrelink’s National Rural and Regional Servicing Strategy in July 1998, Centrelink has been tailoring its services to the particular needs of small rural and regional communities, and has expanded its presence into over 170 new rural communities. Centrelink has also opened new Call Centres dedicated to the needs of Indigenous and rural customers (see Improved Access to Services: Call Centres, page 45).

Centrelink has a strong focus on working together at the local level and in seeking the views of customers, community representatives and other private and government organisations in order to improve services and reduce the possibility of duplication of services.

Centrelink has established partnerships with Federal, state and local governments and the private sector to improve access to Centrelink services for rural customers.

Making Use of TechnologyCentrelink has also implemented a range of technological solutions to improve services to rural and regional customers.

These include:

the use of forms stored electronically on CD-ROM, which support agents in their work by enabling them to print forms for customers;

involvement in the Telstra Multimedia Payphone trials in rural Australia; and Enhancements to Remote Access Services.

(See also Chapter 8, Our Innovative Organisation, page 101–105.)

Rural Transaction CentresThe Commonwealth Government committed up to $70 million (drawn from the Telstra Social Bonus package) over five years to help rural communities establish 200 Rural Transaction Centres (RTCs). RTCs provide access to basic private and government transaction services such as personal banking, some business banking, postal services, Medicare Easyclaim, and telephone and facsimile facilities. Rural communities with populations below 3000 are eligible for assistance to establish a RTC.

Centrelink recognised the opportunities provided by RTCs in meeting its commitment to improve access for rural and regional customers and has supported this program since its establishment. When communities develop their business plans for a RTC, Centrelink is consistently one of the most popular services requested for their community. Centrelink is present in seven of the first 13 RTCs established, located in Eugowra, Urana (NSW), Welshpool (Vic), Port Broughton (SA) and Aramac, Crows Nest and Dirranbandi (Qld).

Centrelink contracts the RTC as a Centrelink agent. The centre provides services for customers to obtain information and forms, make simple enquiries, access Centrelink through a dedicated

telephone and facsimile machine, and use the Internetenabled PC to access information on employment and education opportunities.

Services for Veterans in Rural and Regional Australia Centrelink is working with DVA to provide services to the veteran community in rural and regional areas.

Centrelink provides a Veterans’ Information Service in:

seven Customer Service Centres in NSW (Bega, Coffs Harbour, Dubbo, Orange, Port Macquarie, Tamworth and Wagga);

six in Queensland (Cairns, Gladstone, Mackay, Rockhampton, Roma and Thursday Island); and One in each of South Australia (Mt Gambier) and Tasmania (Launceston).

The Veterans’ Information Service enables veterans to make enquiries and receive information about a number of issues including:

eligibility and applications for all DVA income support payments; eligibility and applications for compensation entitlements; enquiries regarding veterans’ current payments and entitlements; new budget initiatives affecting current and potential DVA clients; eligibility for DVA treatment cards; DVA grant programs; and Bereavement payments, funeral benefits and War Graves.

Co-located within these Centrelink Customer Service Centres, the service offers separate waiting and contact areas for veterans, and is staffed by specialist information officers trained by DVA. In Cairns and Launceston, a DVA staff member is co-located in the Centrelink Customer Service Centre and the Centrelink staffs provide relief and backup. All sites have DVA-specific phone lines.

In three sites in NSW (Dubbo, Coffs Harbour and Port Macquarie), DVA has extended the service to include a community development and advisory role. Community Advisors work with community organisations, including ex-service organisations and local health services, to identify the needs of veterans within the community and assist in developing programs to meet these needs.

(See also Chapter 4, Our Client Partnerships, page 34.)

Indigenous EmploymentCentrelink staff worked together with DEWRSB and ATSIC on joint strategies and visits to Indigenous communities in regard to employment assistance. This led to an increase in registrations by job seekers linking to the Job Network and the issuing of Indigenous Wage Assistance Cards.

Centrelink worked cooperatively with ATSIC and CDEP communities to introduce the CDEP Participant Supplement in March 2000. The payment also provides access to ‘add-ons’such as the Health Care Card and Rent Assistance. Centrelink has entered into a Memorandum of Understanding with ATSIC designed to improve the administration of the relationship between Centrelink, CDEP communities and participants with regard to their income support responsibilities.


Expansion of Centrelink services for Indigenous CustomersCentrelink’s expanded servicing capacity in remote areas included providing a number of agents and local Customer Service Centres with video conferencing facilities to allow customers in isolated Indigenous locations direct access to Centrelink for interviews and specialist advice. In Queensland, the Cloncurry and Doomadgee communities have agents assisting customers with income support enquiries as well as résumés and job search activities. These offices have video conferencing facilities with Internet access.

Building Partnerships In addition to its partnership arrangements with client agencies, Centrelink has a wide range of partnerships with community organisations and other levels of government, including through RTCs the TIGERS project and WA Telecentres (see Chapter 8 Our Innovative Organisation, page 106).

Our community partnerships typically start from very small beginnings, often through employee initiative and customer/community feedback. The partnerships all involve Centrelink’s core business activities and are often locationally specific with subsequent strong community ownership.

Different community partnerships can take the form of referring customers to another organisation, making office space and facilities available, providing training, being involved on the board of a community organisation, getting involved in local fundraisers or working together to solve a problem affecting our mutual customers. A number of additional examples are outlined below.

Home and Community Care partnershipCamberwell Customer Service Centre, Melbourne is involved in a community partnership with the local Home and Community Care Service (HACC) funded by the Commonwealth and Victorian Departments of Health. This partnership has been established to identify customers who are not receiving home and community services but may be at high risk. Under the partnering arrangement, Centrelink contacts these customers to offer them a combined home visit by workers from Centrelink and HACC. The joint home visit provides customers with advice and information about Centrelink products and appropriate HACC support.

Partnership with Tangentyere and WestpacCentrelink is involved in an innovative collaboration with Tangentyere Council and Westpac Bank in Alice Springs, working with Indigenous customers who do not access banking facilities. These customers are paid by cheque, which not only limits their opportunity to budget and manage their finances, but can lead to some exploitative practices in the cashing of cheques. The starting point for this project was the Centre for Aboriginal Economic Policy Research report on Improving Indigenous access to the delivery of banking and other financial services in Central Australia, July 1999, which came about through a joint initiative of ATSIC and Centrelink.

Refugee Community Initiative Building LinksThe Refugee Community Initiative ‘Building Links’ combines the efforts of Shepparton Customer Service Centre and a large number of community and state government organisations, as well as the Department of Immigration and Ethnic Affairs. The aim of the initiative is to provide assistance to the community of mainly Iraqi refugees (currently around 200 families) who have moved into the rural townships in the Goulburn Valley from metropolitan centres. Centrelink has contributed to funding a consultant to work directly with the Iraqi community to undertake a more comprehensive needs assessment and to identify requirements for ongoing service provision and coordination in the areas of health, employment, financial and cultural needs. It is intended that the project will yield a regional settlement plan as well as a model for managing service provision to emerging refugee communities in rural areas.

Gold Coast Seniors on the NetCentrelink has been working with a local group of older people who are using the Internet to network, exchange information and establish a ‘community of common interest’. Centrelink has been actively promoting its services, including FIS seminars, through this electronic network.

Working with Customers and the CommunityCentrelink takes every opportunity to involve its community and business partners in the process of listening to customers to understand their needs. One way it does this is by joint participation in Value Creation Workshops, focus groups and reference groups, and community activities.

Value Creation Workshops and Other WorkshopsCommunity Partnerships During the year Centrelink conducted 12 Community Partnership Value Creation Workshops at different locations across Australia. The purpose of these workshops is to clarify the role Centrelink can play in establishing effective working relationships with community organisations with whom we have mutual customers. Some of the themes emerging from these workshops are:

sharing information and knowledge to improve understanding; assisting customers to access services; and Working cooperatively to improve outcomes for customers.

Centrelink is continuing to work with the local community to identify actions both Centrelink and the community can take to strengthen their relationships.

People with DisabilitiesCentrelink provides the gateway to employment assistance for people with disabilities. A series of Value Creation Workshops were conducted during the second half of 1999 on the provision of employment assistance for people with disabilities. The workshops were designed by National Support Office in partnership with Area Brisbane and the FaCS State office in Queensland.

Two types of workshops were held: one with customers with disabilities who had sought assistance in seeking employment; and the other with disability employment service providers. Workshops were conducted in five locations nationally and involved staff from the national, state and local levels of both Centrelink and FaCS.

Valuable feedback was obtained from participants about current policies, processes and levels of satisfaction with services. Strategies are being developed to address the issues raised by customers and disability employment service providers.

One-to-One Service Over the past 12 months, 11 Value Creation Workshops with a theme of ‘Individualising Service’have been conducted throughout Australia to gauge the success of one-to-one service. Of those customers that attended these workshops 71 per cent were satisfied or very satisfied with Centrelink’s service, 83 per cent rated the Centrelink staff from good to excellent and 82 per cent of customers rated staff as helpful or very helpful.

Indigenous CustomersFourteen Value Creation Workshops for Indigenous customers were conducted throughout Australia’s urban, rural and remote areas in 1999–2000. These workshops were run by nine accredited Indigenous facilitators. The use of Indigenous facilitators proved beneficial in encouraging customer feedback during these workshops.

Customers from Diverse Cultural and Linguistic Backgrounds Feedback is sought from customers from a diverse range of cultural and linguistic backgrounds through Value Creation Workshops conducted in customers’ languages. Over the past 12 months, a number of workshops were conducted in five languages, including Arabic, Greek and Vietnamese.

The outcomes of these workshops reflected many of the values determined in standard workshops. Customers who do not have the usual access and feedback channels available because of their linguistic background have an opportunity to contribute to the development of service delivery change in their local Customer Service Centre. In addition to the familiar service values, customers in these workshops emphasised the importance of provision of services in a non-discriminatory manner. Customers indicated the need for staff to understand their cultural difference, while providing a more personalised service.

New review strategy for Parenting Payment customersCentrelink and FaCS conducted a joint project to improve the out-dated review arrangements for Parenting Payment (Single) customers. Through a number of focus groups, customers provided valuable input into this project. As a result, the 12-weekly personal lodgement requirement was replaced with a targeted approach from 4 September 1999.

The new review strategy aims to improve customer service by:

increasing the flexibility of lodgement options; reducing customer contacts by targeting the cyclical review process; and Streamlining the risk based review process.

Consultative GroupsCentrelink Disability Customer Service Reference Group

The Reference Group, which includes representation from peak disability, industry and community organisations, has now been in operation for three years and continues to provide feedback about quality of services and advice on the impact of new initiatives. The membership of the Reference Group has expanded in the past year.

During 1999 the Reference Group worked on the following priority issues:

identifying and communicating with customers with an intellectual disability; the employment assessment process; outsourcing medical assessments; and implementation of recommendations regarding interpreter services.

National Multicultural Reference GroupCentrelink has established a National Multicultural Reference Group to provide an opportunity for peak ethnic community groups to comment on both government policy and Centrelink’s delivery of related services. The group was formed following consultation with peak ethnic community agencies in June 1999. Meetings are held twice yearly with representatives of peak ethnic bodies from around Australia.

The first meeting of the National Multicultural Reference Group was held from 30 November to 1 December 1999. Issues covered included future service delivery, services for refugees and tax reform.

Multicultural Advisory CommitteesCentrelink continues to run State/Territory Multicultural Advisory Committees. The purpose of these consultative forums is to facilitate communication between Centrelink and state-based organizations that deal with migrants and refugees.

Following discussion with peak ethnic leaders in June 1999 on community consultative arrangements, steps were taken to improve the consultation model. It was agreed that each State/Territory should adopt a model with the following criteria:

open membership; a community or Centrelink chair;

a community convenor; secretarial support provided by Centrelink; senior level representation by Centrelink; and Attendance by client agencies.

The majority of State/Territories have since implemented the above model.

Relationship with Carers’ AssociationDuring 1999–2000, members of the Centrelink Carers Team were invited by the Carers’Association to participate in working groups relating to the communication needs of carers. Different groups target different aspects of communication—design and technology, content and development and cultural awareness. Members of the working groups represent peak bodies, government agencies, communication specialists, ethnic and Indigenous community workers and carers. Centrelink’s presence demonstrates a willingness to improve communication channels and provides an opportunity for Centrelink to promote financial assistance and other services.

Community ActivitiesNational Carers’ WeekIn October 1999, Centrelink continued to promote the role of carers in the community through National Carers’ Week under the theme ‘Share the Care’. The week is designed to help raise community awareness of the thousands of people who care for children, relatives or friends who are frail aged or have a chronic illness or disability. Centrelink staff linked with local organisations such as Carers’ Associations to promote information resources, support networks and other services available for carers around Australia.

International Day of People with a DisAbilityThe International Day of People with a DisAbility, 3 December 1999, was a great success. The National Information Communication Awareness Network was commissioned by FaCS and Centrelink to coordinate activities at a national level. Meanwhile, the Centrelink network hosted and participated in local events to celebrate the day and strengthen community partnerships.

Centrelink staff demonstrated strong commitment to the day. Their innovative ideas, including newspaper supplements about disability issues , shopping centre displays and ‘adopting’ a disability for the day, increased community participation and interest. The positive feedback received has encouraged Centrelink people to build on these successes, with planning for 2000–01 underway.

International Day of Older PersonsOn the International Day of Older Persons, 1 October 1999, around 40 Centrelink offices in all States conducted special celebrations. These celebrations included office open days, financial seminars, and morning and afternoon teas for older customers and local representatives of seniors’ organisations. The financial seminars in particular were very successful. A theme for the day was ‘Banking for Seniors’, involving FIS officers and representatives of the banking industry in discussing deeming accounts, fees and charges and self service banking technology. In addition four offices hosted a demonstration of the Older Persons and Banking Technology Project, developed by Health and the Australian Bankers’ Association (ABA), which provided retirees with information about, and an opportunity to use ATM and EFTPOS devices. A special flyer on how customers can reduce bank fees and charges was developed for the day in conjunction with ABA and FaCS, which continues to be an extremely popular product for our customers.

Involvement in seniors’ and Investment ExposCentrelink has been represented at a number of seniors, Money and Investment Expos in all States. The presence of FIS officers at these events has allowed us to provide information to many people

who are still in the workforce, or approaching retirement, as well as to pensioners and self-funded retirees.

Youth Week During Youth Week, 2–8 April 2000, a number of successful promotional activities were undertaken. One major activity was the Centrelink Art Competition. In addition, each Area undertook activities, for example:

an essay competition in Area Tasmania; involvement in a youth festival in Area South Metropolitan NSW; Tweed Heads Customer Service Centre, Area Pacific Central, launched a new training program

for disadvantaged youth; Youth Certificates were awarded in Area South East Victoria to a number of officers who had

successfully completed Community Services Certificate IV— Youth Services; a colourful mural was painted in the Gawler Customer Service Centre, Area South Australia, by

local secondary school students; and Specialist Youth Services Officers at Mt Druitt Customer Service Centre, Area West NSW,

organised ‘Get It Together’, an open air stall day, in which 25 community organisations, 16 secondary schools and around 300 students participated. The event also involved other customers and local businesses.

Centrelink Involvement in the Youth Roundtable Centrelink provides an information and support role to Youth Roundtable members to assist them with their community action projects. The Youth Roundtable comprises 50 members aged between 15 and 25. Each Roundtable member undertakes a community action project to raise government and community awareness of the issues faced by young people today. Centrelink has assisted Youth Roundtable members with projects based around financial issues and the effects of drugs on young people.

Improved Access to Information

Statement Style LettersCentrelink introduced statement style letters in mid 1999 to replace the vast majority of letters, which many customers found confusing and intimidating and often resulted in unnecessary contact with Centrelink. Research indicated that customers had a strong preference for simple and concise point-form letters, which could be easily referenced and understood. Research during 1999–2000 confirmed a marked preference for the new style letters with very high customer acceptance and satisfaction levels.

Some customers (particularly age pensioners) with substantial sources of income or assets, and their financial advisers, have found that the new format does not provide enough information for their requirements. We are continuing to work on ways to improve the quality of our letters for this group and for our customers in general, and to provide more specific details on how a person’s entitlement has been calculated.

Age Pension NewsIn September 1999, the circulation of Age Pension News was extended to include over 200 000 self-funded retirees who hold a Commonwealth Seniors Health Card. In March 2000, Age Pension News was also extended to older Australians who have deferred claiming age pension under the Pension Bonus Scheme. Age Pension News is one of Australia’s largest circulation periodicals, going directly to over two million age and service pensioners and self-funded retirees four times a year. Its readership constitutes around 95 per cent of Australia’s seniors, or 12 per cent of the total population.

It is also produced in 15 community languages with an audio edition available for customers with a visual impairment.

Australian Pension NewsCentrelink International Services publishes Australian Pension Newsfor the 54 000 customers who live overseas. It is published in eight languages (English, Italian, Spanish, Greek, Turkish, Macedonian, Serbian and Croatian) in April and October each year. In addition, recorded cassette versions are produced for visually-impaired customers. Each issue generates hundreds of letters complimenting Centrelink on helping people living overseas to keep in touch with changes to their income support arrangements and with related events in Australia. The newsletter also features general interest items which reinforce the Australian connection. Customers were particularly impressed with the article on the anniversary of the Snowy Mountain Scheme in the October 1999 edition.

Rural NewsThis year Centrelink introduced Rural News, a quarterly magazine aimed at people living in rural and regional Australia. Rural News is the primary publication used by Centrelink to communicate with rural and regional communities. A key focus of the magazine is to provide up-to-date information about Centrelink and other government initiatives to rural people who may be unaware of what is available. The magazine provides information about Centrelink payments and services and how to access them, topical items of interest to these communities and improvements to service delivery to rural and remote areas.

Rural News is mailed out direct to over 16 000 community, business and government organisations such as Centrelink agencies, rural counsellors, accountants and solicitors.

Launch of UnzippedCentrelink has taken publications for young people into a new era with the launch of the Unzipped magazine. The magazine was designed for young school leavers as part of a comprehensive communication strategy that promotes Centrelink as a major provider of services for young people. The magazine is written in plain English and provides information on studying, training, job seeking and personal support while providing a mix of text, colour photos and cartoon graphics. Unzipped was modelled on other magazines read by the target age group.

Unzipped was launched in Youth Week. The inaugural issue announced the National Centrelink Art Competition, which aims to evoke a higher level of appeal and interest among young people through the use of their art work and contributions in subsequent issues of Unzipped.

Multilingual InformationCentrelink is one of the largest government providers of online multilingual information. The Centrelink web site currently has 29 fact sheets and 11 publications available in up to 42 different languages, which can be printed as required. Centrelink also produces a large range of printed brochures and pamphlets in up to 18 languages. These brochures are specially designed to provide clear and succinct information for easy translation.

Fortnightly radio programs are broadcast in 24 languages across Australia on SBS and community radio stations. Efforts will be made in the next year to better target our diverse customer base. This will include coverage of newer arrival languages in future broadcasts and, where possible, increasing the overall number of languages broadcast.

Regular editorial articles are also published in the national ethnic press in eight languages.

Language ServicesCentrelink maintains a panel of around 2000 contracted interpreters and translators to provide language services across its network to customers who cannot communicate in English.

In the last 12 months, Centrelink received over 55 500 requests for interpreter and translating services. For 99 per cent of these requests, Centrelink provided an interpreter or translator within three working days of the request. The internal standard for this service is 85 per cent.

Expansion of language capability at International ServicesCurrently Centrelink International Services has staff with language skills in Dutch, French, German, Greek, Italian, Portuguese, Spanish and Serbo-Croatian. There is a policy to employ staff with language skills, other than English, when needed and this has been a feature of recent recruitment. Centrelink International Services has a dedicated team (separate from the Multilingual Call Centre) to handle phone enquiries from Centrelink International Services customers in Australia and overseas. (Customers may reverse the charges through their local operator so they do not pay for the call.) A full-time Italian translator is employed and a network of other translators provides translations of customer letters, medical reports and other documents. To improve customer service, bilingual letters are sent to Centrelink International Services customers when explaining adverse decisions.

Indigenous CD-ROMIn the next 12 months, Centrelink will develop an Indigenous version of the Rural CD-ROM, a tool designed to assist Centrelink agents in delivering quality services to rural and remote customers.

The Indigenous CD-ROM will be specifically targetted at addressing the needs and issues of community agents. It is envisaged that the Indigenous CD-ROM will assist in meeting the particular cultural and literacy needs of Aboriginal and Torres Strait Islander communities.

(See also Chapter 8 Our Innovative Organisation, page 105.)

Helping customers through difficult transitionsCentrelink is developing a service delivery model based on ‘life events’ of people in the community, rather than the traditional ‘silos’ of government programs. This approach supports our mission to provide opportunities for individuals during transitional periods in their lives. We have taken steps in 1999–2000 to focus on customer needs at particular points in their lives to progress the implementation of Centrelink’s service delivery model.

Preparing for Work InitiativeThe Preparing for Work initiative, introduced in November 1999, represents a dramatic change in the way Centrelink conducts its business with job seekers. The initiative integrates service delivery of social security payments and employment assistance, placing a strong emphasis upon work and social participation outcomes.

This approach has resulted in more tailored employment service delivery with improved targeting of employment assistance. It has also made the job seeker more accountable for their job seeking efforts. The Preparing for Work Agreements initiative, introduced on 1 July 2000 enhances this initiative. The approach complements and reinforces other Centrelink initiatives such as one-to-one service and is a realisation of the concept of a ‘service offer’.

Closure of BHP Steelworks, NewcastleWith the impending closure of the BHP Steelworks, Centrelink adopted some innovative approaches to customer service. Working in conjunction with BHP management, a temporary Centrelink site was opened in the grounds of the steelworks in August 1999. Office hours were those which best suited

the many shift workers at BHP. Using remote accessing technology, Centrelink staff were able to process claims online.

FIS seminars were conducted on site, interpreters were available to help customers complete claim forms and messages were put on employee payslips about Centrelink services. Over 2000 interviews were conducted. Assistance was also provided to the families of those affected by the closure of BHP.

More Intensive and Flexible Services PilotThe More Intensive and Flexible Services Pilot (MIFS) was established in July 1996, by the then Department of Social Security. Administration was transferred to Centrelink in July 1998. The pilot provided secondary rehabilitation (including physiotherapy, occupational therapy, speech therapy and counselling) and pre-vocational training (including budgeting, travel, training, grooming, and self esteem) to customers in receipt of the Disability Support Pension.

The pilot was completed on 30 June 2000. Approximately 2100 customers participated and many customers have been assisted in improving their work ability. The information gathered from the pilot will be used by FaCS to inform the Welfare Reform agenda.

Annual Jobs Education and Training New interview TargetFor the first time, Centrelink exceeded the national target of 55 000 new JET interviews by over 16 per cent. The JET program provides assistance for single parents in transition from the caring role to financial independence. JET continues to be a highly sought after program and throughout the year an emphasis was placed on improving and defining program outcomes.

Social Worker Provision of Crisis ServicesThere is increasing awareness of the need for Social Workers to provide more intensive assistance to some customers at risk of longer term social exclusion. Examples of this are young people without parental support identified as being ‘at risk’, and customers at risk of suicide and family breakdown. An example of the work being done to assist families in crisis is the Family Crisis Childcare pilot project currently being conducted in Townsville. This pilot project entails the provision of an intensive case management service by a Centrelink Social Worker. The pilot is funded by FaCS and aims to explore how child care, in tandem with other support services, can achieve better outcomes for partnered and single young parents (aged between 15 and 25). The results of this pilot to date are encouraging.

In their work with young people Social Workers focus increasingly on assisting them to re-engage with their family, find stable accommodation and return to education or employment. Centrelink also takes part in actions under the National Suicide Prevention Strategy, which has as its initial step the provision of advanced training in suicide prevention to Centrelink Social Workers and occupational psychologists.

Disaster Response and Recovery Centrelink is one of a number of agencies committed to responding to the needs of people and communities devastated by natural disasters. A national strategy has been developed to ensure that, in the event of a disaster, Centrelink continues to provide its normal services to the community as well as additional assistance to those people who have been most affected by the disaster. This additional assistance can take the form of payments such as Special Benefit, Crisis Payment, or Disaster Relief Payment, or counselling services such as providing Social Worker assistance to local community recovery agencies.

During 1999–2000, Centrelink provided financial and counselling assistance to a number of communities that had been affected by several natural disasters, for example:

In north-eastern South Australia, 213 farmers whose income has been affected by long-term drought and locust plague received an ex-gratia payment from March 2000.

During Cyclones Steve, Tessi, Vaughan, and Rosita, which caused rain and severe long-term flooding across Australia during early 2000, Centrelink provided Social Worker assistance and processed numerous payment claims. Centrelink also activated special lodgement/payment procedures to ensure payments to job seekers were not interrupted.

East Timor and Solomon Islands AssistanceCentrelink was involved in providing financial and welfare assistance to Australian citizens evacuated from East Timor (September 1999) and the Solomon Islands (June 2000) due to civil unrest. Centrelink was part of the joint State and Commonwealth Government Emergency Reception Teams that were set up to receive evacuees as they arrived in Australia and was active in attending to numerous requests for financial and welfare support as well as providing ad hoc assistance to the various community welfare organisations.

ChallengesAuthorised Review OfficersAuthorised Review Officers have increased their accessibility to customers and to Customer Service Centre staff. Due to the increased time spent dealing directly with customers, a focus for Authorised Review Officers next year is to achieve consistent performance against their timeliness standards.

The average time taken to finalise a review fell by more than 33 per cent from the previous year, and Authorised Review Officers will aim to continue to reduce the time taken to finalise reviews.

Future OutcomesImplementation of the Centrelink Service Delivery Model The service delivery model means that Centrelink will deliver services based on a customer’s ‘life events’. ‘Life events’ are experiences such as having a baby, looking for a job, planning for retirement or arriving to settle in Australia. The Centrelink ‘life events’ model of service delivery is being developed in consultation with client agencies, and the list of ‘life events’ is being validated through external customer research.

This model touches on everything Centrelink does, including:

how we deliver products and services to customers; proof of identity procedures; the availability and use of electronic services; the way our Customer Service Centres are designed; and The methods of reporting to the clients, the Government and the community.

Within the model, all that is required from customers when they contact Centrelink is for them to describe their circumstances. The customers then receive a personalized solution that best meets their needs. This way of working does not assume the customer already knows which products, services and delivery options are available, which questions to ask or which payments to apply for. Instead, customers receive greater personalized service and Centrelink sorts out the complexities of government for them.

Centrelink’s service delivery model will include:

a one-to-one customer service officer for each customer, who takes responsibility for all of that customer’s business;

individualised service offers based on ‘life events’; decision support systems (incorporating improved compliance and risk assessment measures),

which will assist our people to deliver accurate and appropriate service offers to customers (see Chapter 8, Our Innovative Organisation, page 110);

a wider and better targeted range of access options for our customers, including the Internet and other forms of electronic access, as well as improvements to current face-to-face and phone services;

improved proof of identity procedures, saving time for customers and staff, and providing greater integrity in the delivery of government services; and

Offices in more convenient locations that are suitable for the needs of all the customer groups.

The first step in implementing the new model involved a consolidation phase from September 1998 to December 1999, where Centrelink improved productivity, reduced arrears, cleared up system-generated work, and implemented one-to-one service throughout the network. Continuing implementation of the model will include:

strengthening the basic building blocks of its one-to-one service arrangements, including how we engage customers, assess, plan, refer and follow-through;

capturing data to support stronger local community partnerships, and exploring how this information can be provided to customers via the Centrelink web site;

defining ‘customer relationship management’ and devising an appropriate strategy; and Redesigning the Centrelink web site and publications to reflect the ‘life events’ of our customers.

Figure 13: Customer Centric Service Delivery

Improved Telephone AccessOur Business Plan 2000–01 focuses on further improvements to Call Centres through some key processes:

In 1999–2000 Centrelink Call Centres commenced a First Call Resolution policy to ensure each customer’s queries are finalised on the customer’s first call. Implementation of this policy is expected to be finalised by late 2000 and is a key strategy in improving customer access and satisfaction.

A new comprehensive Quality Assurance Package will provide staff with information about how satisfied customers are with the service of their Call Centre.

A new Workforce Management Tool will be introduced to streamline a very resource-intensive forecasting and scheduling process, automate many of our current processes and provide real time management information.

The implementation of an advanced Telecommunication Platform will further improve customer access.

International Freecall™FacilityAs part of Centrelink’s commitment to improving customer access Centrelink International Services is developing an international Freecall™ facility for customers living overseas to replace the current reverse call option. This will mean that many of our overseas customers will have the same level of access to Centrelink services as those living in Australia. International Freecall™ will be implemented gradually, commencing in 2000–01. The Freecall™ facility will initially be targeted to those countries which host the majority of our overseas customers. Extended business hours for the Centrelink International Services Call Centre are being considered as a means of enhancing the service.

Improving Service to Rural and Regional CustomersThe effective delivery of programs and services in rural and regional areas will continue to be a key priority for Centrelink during 2000–01. Centrelink will build on its achievements through implementation of the National Rural and Regional Servicing Strategy in improving access to Centrelink services for rural and regional customers (including Indigenous customers), through agents, new partnerships and electronic service delivery.

Paralympic GamesWith over 5000 athletes competing in the Paralympic Games, this will be the second biggest sporting event in 2000. Centrelink’s involvement will include co-hosting a display at the Community Pavilion with FaCS to promote the services and products Centrelink provides to people with disabilities. Specific communication products will also be produced to promote participation and increase the profile of the Games.

Review and AppealsThe new Administrative Review Tribunal will be established in 2001.

Centrelink has already been taking action to develop and implement its own best practice in the context of appeals. One example is the participation by some Centrelink Administrative Law staff in a pilot project conducted by the Administrative Appeals Tribunal. The early results of this pilot indicate a significant reduction in the time taken to resolve appeals to the tribunal. The Administrative Law team involved will continue to work within the shorter timeframes achieved and will cooperate with the tribunal in assessing the possible application of the project elsewhere.

6. Our PeopleGoalOur goal is to create an environment where Centrelink’s people give value to customers, client agencies and the community through their skills and commitment to service. The Balanced Scorecard measures our performance towards this goal through the Centrelink People Key Result Area.

Overview During the first two years of Centrelink’s operation, our ‘people’ focus was managing the extraordinary amount of concurrent change while creating a new organization and a new way of doing business. 1999–2000 has been a year of consolidating gains and anchoring new approaches in the culture.

We have used the opportunities provided by initiatives in the Centrelink Development Agreement 1999–2002 and the Public Service Act 1999 to deliver practical, innovative and inclusive people practices and processes, which build the capabilities and commitment of our people to achieve Centrelink goals.

Key StrategiesOur key strategies in developing our people’s skills and commitment to service are to:

create an environment where people can give their best;

promote a culture of high-performing people; promote effective leadership as integral to the Centrelink culture; and create a learning environment within Centrelink.

FocusOur focus, based on the goals in Centrelink’s People Plan 1999–2000, has been to ensure that our people understand the big picture and how their job fits in; have clear responsibilities; have the skills and knowledge development needed to meet those responsibilities; and have the appropriate work tools and work policies.

We have also encouraged team leaders and managers to focus more effectively on achieving positive outcomes for the people measures in the Balanced Scorecard. As the following summary table shows, we achieved our target for all but one measure.

Table 13: 1999–2000 Balanced Scorecard ‘People’ Measure

1999–2000 BALANCED SCORECARD ‘PEOPLE’ MEASURES TARGET NATIONAL RESULT

Learning Individual learning—% of staff with Team & Individual Learning Plans

80% 86%

Learning effectiveness—% of positive responses in regard to learning opportunities

30% 55.9%

Organisational well-being Investment in staff well-being—av. $ spent per full-time equivalent ($/FTE)

$150/FTE $156.64/FTE

Staff satisfaction—% of positive responses in regard to job satisfaction

65% 65.3%

Performance development Recognition of good performance— % of employees with instances of formal recognition*

4% 51%

Performance feedback—% of positive responses in regard to feedback

20% 48.4%

Leadership Quality of leadership—% of positive responses in regard to leadership

45% 62.5%

Cost efficiency Increased attendance—reduction in unplanned leave

16.71 days/FTE

14.73 days/FTE

Comcare—reduction in <1.16% 1.00%

1999–2000 BALANCED SCORECARD ‘PEOPLE’ MEASURES TARGET NATIONAL RESULT

premium rate

* Target was set low as this measure was included for the first time.

Outcomes AchievedCreating an environment where people can give their best.For our people to give their best we need to provide them and their managers with practical, innovative and inclusive people practices and processes which build satisfaction and commitment.

Consulting our PeopleThe Centrelink Development Agreement 1999–2002 recognised Centrelink’s commitment to consultation of employees and their representatives. Employee consultation and involvement in decision making assists Centrelink by:

engaging employees in Centrelink’s strategic directions, so that their ideas and knowledge can contribute to our future;

creating commitment to Centrelink’s directions; and Enabling Centrelink to address and respond to employee concerns.

Centrelink conducted two staff polls in 1999–2000 to provide feedback on a range of job satisfaction, leadership and staff development issues. The national results show the proportion of staff who provide positive or very positive responses to these criteria.

Table 14: Staff Poll Outcomes 1997–2000

STAFF POLL OUTCOMES 1997–2000

1997 1998 1999 2000

Understanding Centrelink’s role

48.0 37.0 80.7 81.8

Understanding your role

13.0 8.0 80.9 82.6

Job satisfaction 65.0 62.0 67.7 65.3

Good leadership 56.0 50.0 68.1 62.5

Learning opportunities

33.0 24.0 58.2 55.9

Feedback on your performance

13.0 8.0 42.8 48.4

Having the tools to do your job

65.0 61.0 64.8 68.4

As the table demonstrates, the overall level of staff satisfaction has generally improved. The 1999 poll results recorded significant improvements in the areas of feedback and learning opportunities. Results from the 2000 poll were similar to the 1999 poll. The most marked improvement was in relation to feedback, which showed a significant improvement in positive responses. We were also pleased with the significant improvement in positive responses in relation to understanding of Centrelink’s and employees’ roles.

As Centrelink’s Indigenous staffing rate has dropped from 3.9 per cent to 3.6 per cent in the last 12 months, we also undertook some survey research to help us understand the issues relating to attraction, retention and satisfaction of our Indigenous employees.

Analysis of the results suggests that development and career opportunities, cultural differences and learning opportunities are the key issues. The outcomes from the survey will be used to develop a revised Indigenous recruitment and career development plan, to be launched early in 2000–01.

At the National Strategic Development Conference conducted in November 1999, management, staff and union representatives developed a ‘top ten’ list of key initiatives that will improve Centrelink’s strategic outcomes. These initiatives have been addressed in the Business Plan 2000–01.

Consultation at other levels has included the National Strategic Consultative Committee which meets twice yearly, as well as formal consultative arrangements at the Area level, and informal and ad hoc arrangements as required. These arrangements are supported by appropriate facilities for those employees with a representative role.

During the year, a review of consultative arrangements was undertaken in accordance with the Centrelink Development Agreement 1999–2002. The review assessed the effectiveness of current arrangements in Centrelink, including a survey of arrangements in other Australian Public Service (APS) agencies. The review’s recommendations, which focus on strategies for broader based consultation with our people, are under consideration.

Implementing the Public Service Act 1999The major issue in implementing the new Public Service Act 1999, which came into effect on 5 December 1999, was the short timeframe between enactment and the date of effect. The changes in the heads of legislation required a major overhaul of Centrelink’s people management delegations. Along with this, all of Centrelink’s current policy and procedures, including our classification structure and matters dealing with the assignment of duties, were updated to ensure compliance with the new legislation.

To date, we have developed new policy and procedures on people management matters such as review of actions, conditions of engagement of ongoing employees, breaches of the APS Code of Conduct, acceptance of gifts and other benefits, resignation, outside employment and non- performance of duties.

With the simplification of the Act policy and procedures needed to be in place for many issues that were previously prescribed by legislation. Our capacity to make the best use of the opportunities provided by the new Act will not be fully realised until we can undertake the level of consultation with our people to which we are committed.

It has been very important to ensure that our people know about changes arising from the new legislation. Prior to the date of effect Centrelink issued advice via our Human Resource Advisory Units. In addition, we can now explain changes through the new Centrelink People Handbook on CentreNet (Centrelink’s Intranet) and Business TV presentations.

Workplace RelationsGenerally, Centrelink has strengthened its positive relationship with employees and their representatives. Minimal time has been lost due to industrial action. Only two workplaces were affected by stop work meetings.

At the organisational level, only two matters, both related to the implementation of the Centrelink Development Agreement 1999–2002, were the subject of conciliation in the Australian Industrial Relations Commission. One involved the implementation of the performance assessment process and the other, to the development of guidelines under the agreement. Both matters were successfully resolved by agreement between Centrelink and the Community and Public Sector Union.

At the individual employee level, a number of dismissals have been challenged in the Australian Industrial Relations Commission. The vast majority were settled by agreement between Centrelink and the applicant in the case, and no cases were the subject of arbitration against Centrelink.

Workplace DiversityIn line with Centrelink’s Workplace Diversity Plan, Workplace Diversity: A Plan for Change 1997–2000 and the Disability Discrimination Action Plan we are committed to developing a culture that supports the principles of workplace diversity. Detailed Equal Employment Opportunity recruitment and staffing data are located at Appendix iv, Centrelink Employee Overview, page 187.

Our achievements this year under the plan are as follows.

Reaching our goalsThe Public Service and Merit Protection Commission and the Institute of Public Administration co-sponsored the 1999 Workplace Diversity Awards in March 2000. Centrelink won the regional award for two of its initiatives:

the establishment of the Palmerston Indigenous Call Centre to assist Indigenous customers; and The Disability Awareness Training package conducted in Victoria to increase customer service

officers’ awareness of disability issues.

The awards acknowledge the positive work Centrelink has undertaken to utilise the diversity of skills and life experiences of its people.

(See also Chapter 9, Corporate Overview, page 120 for details of other awards.)

Adaptive technology serviceCentrelink provides access to adaptive technology for about 101 employees with a sight or physical impairment that prevents them from using a keyboard and mouse. They are provided with computer-based technical aids that are configured to run in the Centrelink environment. This service helps in meeting our ‘reasonable adjustment’ obligations under the Disability Discrimination Act 1992. It is also a part of our early intervention and rehabilitation programs for employees who have a temporary disability or impairment as a result of Occupational Overuse Syndrome or other injury.

Developing our people’s awareness and understanding of harassment and discrimination in the workplace

Centrelink undertook a promotional campaign to ensure our workplace is free of harassment and discrimination. ‘Harassment—Not Here’ is the key message that appears on promotional material such as posters, stickers, fact sheets and screensavers. The posters and fact sheets also provide information on responsibilities, rights and where to find help.

Linking workplace diversity awareness with customer service training About 15 per cent of Centrelink’s employees come from diverse cultural and linguistic backgrounds and many bilingual employees directly assist customers in their own language. To assist employees

to provide services to customers from diverse cultural and linguistic backgrounds we have produced two new training packages.

The first, developed by the Multicultural Services Team, is a multimedia, computer based training package that uses Centrelink specific scenarios. Modules include:

multicultural (including Indigenous) issues; interpreter and translation services; intercultural (including Indigenous) communication; centrelink Multilingual Services; ethnic Naming Systems; and payments and services for migrants and refugees.

The program links to the Certificates III and IV and the Diploma in Business (Administration) (see Accredited Learning Programs below).

The second is a Cultural Awareness and Sensitivity Training program developed by the specialist staff at Blacktown Customer Service Centre, Area West NSW. The program is available for use by service delivery teams that have a highly diverse range of customers and employees and want to increase the awareness and improve sensitivity of their employees towards each other and their customers.

Centrelink has an ongoing role to assist people who have an impairment to reach the right services, including those related to seeking and undertaking work. In partnership with a range of experts in disability services, vocational rehabilitation and employment, Area Pacific Central and the Disability and Carers’ Community Segment team developed a guide entitled Investing in Ability—a Guide to Understanding, Evaluating and Reducing the Impact of Injury, Illness or Disability in the Workplace. The guide, which will be published in September 2000, will:

assist Centrelink employees and others in the disability community to provide needs-based assessments and employment-related services to people with disabilities;

offer a range of practical information to encourage a holistic understanding of a person’s needs and their work requirements;

look at the real impact of impairment and how it affects people’s daily lives, focusing primarily on issues relating to accessing and undertaking work; and

include information about how adjustments can be made to reduce workplace barriers.

Valuing differences

Celebrating AbilityTo celebrate the International Day of People with a DisAbility, Centrelink and FaCS ran a workshop on career planning for employees with an injury, illness or disability. The idea for the workshop came from participants in the 1998 celebrations. Feedback from this year’s participants suggests that this should become a regular feature, focusing on current issues for employees with disabilities.

Cultural Diversity ForumTo better support our employees from diverse cultural and linguistic backgrounds, we have set up a cultural diversity forum. This forum provides them with an opportunity to discuss current issues and to provide support not available elsewhere.

Celebrating Diversity To raise our people’s awareness of significant cultural and religious events in our community we have prepared and promoted a calendar of international and Australian cultural and religious events.

Support for local communities through fundraising

Centrelink employees have been involved in a wide range of fundraising ventures for charity organizations. Some Customer Service Centres have monthly charity days and others get behind local or national events in their community.

Providing better work/life choicesCentrelink is committed to providing a flexible work environment that recognizes our people’s need for work/life balance. To ensure that we maintain a reasonably high level of employee availability during the December/January school holiday period we offer employees a child care subsidy. This year, because of potential Year 2000 problems, we needed to maintain a higher than usual level of employee availability over the Christmas/New Year period. To highlight and address additional child care requirements during this period we undertook surveys of affected employees. One of the outcomes was a very successful January School Holiday Program for school age children sponsored by Area West Victoria.

In recognition that competing demands on people’s time is often an area of stress in their lives, we are developing an online Work/life Resource Kit that will provide employees with information on how they can find better balance between work and home.

Health and SafetyIn accordance with our Occupational Health and Safety (OH&S) Agreement we have developed an OH&S program. The aim of the program is to create a well-developed health and safety culture in Centrelink. We want workplaces where managers and employees actively identify and eliminate hazards and are committed to the integration of OH&S practices into everyday business.

In order to improve our OH&S performance and make the greatest contribution to our overall business performance, we have focused this year on strategies to:

reduce the number and severity of accidents and incidents occurring in our workplaces; reduce the frequency and cost of workers’ compensation claims; ensure our compliance with OH&S legislative requirements; and integrate OH&S activities into mainstream management practices.

Best practice injury prevention and management

Centrelink recognises that customer aggression is a major occupational health and safety issue. Reducing the severity and incidence of customer aggression has been a priority this year.

Centrelink and Comcare co-sponsored a project to develop best practice principles to identify, assess and control all actual and potential situations and events that may give rise to customer aggression. Major outcomes of the research project are:

an action plan to implement improvements in prevention, incident management and post-incident management of customer aggression; and

the release in February 2000 of a Centrelink/Comcare risk management guide for customer service providers entitled Applying Best Practice Principles to the Prevention and Management of Customer Aggression.

Centrelink Area Support Offices are developing local action plans to apply the best practice risk management principles identified in this research. These plans will include a commitment to monitor our progress and review our approach as our business and working environment evolves.

The release of the guide at a time when the issue of workplace violence was being highlighted in the media and other forums has identified Centrelink as a recognized best practice organization in the prevention and management of customer aggression. As a result, Centrelink is regularly consulted by other customer service provider organisations wishing to develop or further enhance their approach to preventing customer aggression.

Monitoring, Evaluation and Analysis of OH&S Outcomes

Centrelink recognises that effective health and safety management systems make good business sense, represent a cost-effective investment in our people and will lead to a reduction in the high social and financial costs of occupational injury and illness. To ensure that a cooperative and consultative relationship exists between Centrelink and its employees in resolving health and safety issues, all Centrelink Human Resource Advisory Units report quarterly on the:

number of Designated Work Groups; number of Health and Safety Representatives and Deputy Health and Safety Representatives,

and requirements for health and safety training; number of Health and Safety Committee meetings and details on the frequency that committees

meet; and qualitative aspects of health promotion and early intervention activities.

The number of incidents reported to Comcare Australia, including the number of investigations conducted, and directions and notices given to Centrelink during the 1999–2000 periods are shown below.

Table 15: Occupational Health and Safety Details 1999–2000

TYPE OF INCIDENT NUMBER REPORTED TO COMCARE

Death 2

Serious personal injury 24

Incapacity for 30 or more continuous working days or shifts

5

Dangerous occurrence 26

Total 57

Table 16: Investigations conducted by Comcare

DETAILS OF INVESTIGATIONS CONDUCTED NUMBER

Investigations,including tests on plant, substances,objects etc., in the course of such an investigation

8

Notices given to Centrelink under section 29 of the OH&S(CE) Act 1991— Provisional Improvement Notices

2

Directions given to Centrelink under section 45 of the OH&S(CE) Act 1991—Directions that the workplace not be disturbed

0

Notices given to Centrelink under section 46 of the OH&S(CE) Act 1991— Prohibition Notices

0

Notices given to Centrelink under section 47 of the OH&S(CE) Act 1991—Improvement Notices

0

Total 10

Note: OH&S(CE) Act 1991—Occupational Health and Safety (Commonwealth Employment) Act 1991.

With a focus on the proactive aspects of health promotion and early intervention activities, we began from June 1999 to monitor investment in organizational well-being in the Balanced Scorecard. Using external benchmarks from other public sector employers, we set a target of an average of $150 per full-time equivalent employee. We achieved our target with an annual average investment per full-time equivalent of $156.64.

Reducing the Comcare Premium

Comcare has advised that Centrelink’s 2000–01 workers’ compensation prescribed premium rate will be $1.00 for each dollar of wages and salary, down 22 cents from the 1999–2000 rate of $1.22 per wage and salary dollar. Centrelink’s performance compares very favourably with other Commonwealth agencies where the average reduction in prescribed premium rate was only half a cent. However, Centrelink’s premium rate remains slightly higher than the Commonwealth pool rate of $0.98 per wage and salary dollar.

Premium rates are determined by reference to both claim frequency and cost. For Centrelink, this year’s premium rate reduction can be attributed to fewer claims (when compared both to other agencies and to our 1998–99 claim frequency) and a higher proportion of claims without time off work. This result points to the success of our early intervention and prevention strategies.

However, the average cost of our claims rose an average of $1331 in comparison to a $1012 rise for the Commonwealth pool. To address this issue, we will be encouraging our rehabilitation case managers to focus on best practice approaches to managing high cost claims.

Positive Attendance project

We have been monitoring employee attendance through the ‘Improved Attendance’ measure in the Balanced Scorecard since 1997. This measure includes all personal leave (including sick and carer’s leave), short periods of unpaid miscellaneous leave and compensation leave. This measure (minus the compensation leave component) is also included among the measures used to determine pay rises in the Centrelink Development Agreement 1999–2002.

This year we reduced our unplanned absence by 15.68 per cent, which is the equivalent of two days per full-time equivalent employee. This is a good result considering that unplanned absence had risen by 3.6 per cent during 1998–99. However, this year’s overall result of 14.73 days for each full-time equivalent employee remains higher than APS and industry averages.

Maintaining the reduction in unplanned leave is a priority for Centrelink. Under the agreement, the unplanned leave measure is one of the measures used to determine our next pay rise.

To assist us to further reduce unplanned leave, we are working with managers and employees to create a positive attendance culture. We are developing a ‘Supporting Attendance at Work’program that will include:

an attendance policy statement aligned with Centrelink’s current and future business needs; a team leader’s resource kit containing information and tools to assist managers and team leaders

to obtain solutions tailored to local needs; an education program for employees to assist them to understand the extent, nature and cost of

non-attendance; and better attendance monitoring and reporting tools.

Promoting a culture of high performing peopleWe have been working toward creating a high performing workforce by:

clearly articulating the productivity outcomes people need to deliver and linking these outcomes to pay;

providing structured performance feedback that links employees’ objectives to our goals and Shared Behaviours;

improving recruitment and selection processes; and recognising the superior performance and contribution of our people.

Table 17: Centrelink Development Agreement Scorecard

MEASURES TARGET RESULT

1. Client Partnerships timeliness of claims processed

1 1.11

2. Client Partnerships—accuracy standards are met

1 1.04

3. Client Partnerships—compliance benchmark

1 1.10

4. Customer & Community—overall customer satisfaction

1 1.00

5. Customer & Community—satisfaction with personal service

1 1.06

6. Customer & Community—call waiting time

1 3.04

7. Customer & Community—appeals

1 0.97

8. People—Team and Individual Learning Plans

1 0.88

9. Cost-Efficiency—reduced Comcare premium

1 1.16

10. Cost-Efficiency—increased attendance

1 1.07

11. Cost-Efficiency—debt reduction

1 0.89

Overall Average* 1.21

* Assessment based on 31 May 2000 year to date data as June data would not alter outcome.

Linking Pay to PerformanceTo recognise the contribution made by all our people to achieving business outcomes, and to ensure that pay increases are supported by genuine productivity improvements, the Centrelink Development Agreement 1999–2002 links employees’ salary increases with our overall average of performance against the following 11 Balanced Scorecard measures.

As we had met our target, in accordance with the agreement, a 2.5 per cent pay increase was paid from the first full pay period in July 2000. We will continue to focus our efforts on maintaining and improving our performance against these measures because they will also be used to determine the 4 per cent pay rise in July 2001.

Structured performance feedback In 1999 we introduced a new performance assessment system that is linked to individual salary advancement, provides regular, structured feedback and an annual assessment of an employee’s performance. Assessment is based on:

team based assessment of whether an individual’s behaviour is aligned with our Shared Behaviours; and

supervisor assessment of achievement against agreed work objectives.

Implementing the new system has required a change in culture and work organisation, particularly for managers and team leaders carrying out the performance assessments. Employees also have a responsibility to provide feedback to their colleagues, develop their own plan and participate in a self-assessment of their performance.

Staff poll responses indicate that the value of performance feedback is beginning to be noticed. For example, more people agree that they have a clearer understanding of what is expected of them at work. In 1997 only 13 per cent of poll respondents agreed that they knew what was expected of them at work (reflecting a significant uncertainty at the time of the creation of Centrelink). However positive responses increased to 82.6 per cent in June 2000. Similarly, 81.8 per cent of poll respondents indicated they understood Centrelink’s purpose and how it applied to their work in June 2000. This was a 1.1 per cent increase on the October 1999 result and a 44.8 per cent increase on the 1998 result.

Core Selection Criteria that Target Key AttributesIn February 2000 we adopted three core selection criteria for all positions other than the Senior Executive Service (SES). These criteria were developed in consultation with managers and employees who were asked to consider what attributes our people need for the future. The attributes centre on the Centrelink Shared Behaviours, customer service and business acumen.

Local and National Award and Recognition Schemes In Centrelink recognition schemes have been in place at the local level for some time. These schemes focus equally on informal and formal mechanisms to recognise our people’s contributions and develop a common sense of purpose.

The Centrelink National Awards were introduced to provide a more formal framework for recognition and to encourage acknowledgement of the vital role our people play in helping achieve corporate goals and objectives. Awards are made in four categories: Customer Service; Community Partnerships; Change Management; and Support Services, leading to the selection of an overall winner.

The Quality Committee of the Board developed the seven criteria by which nominations are judged. The first National Awards, presented in September 1999, attracted 45 high quality nominees. Overall winner was the Employment Needs Assessment Trial, a joint Centrelink and FaCS initiative, which also won the 81 1999–2000 Annual Report Our People Customer Service category award. Other category winners were:

Community Partnerships: Innovations in Disability Servicing, Area Pacific Central; Support Services: IT Infrastructure Team, National Support Office; Change Management: Quality Team, Area Western Australia.


We also support and encourage a high level of local recognition for individuals and teams through our Balanced Scorecard ‘recognition’ measure. As this was the first time we included this measure, we set a modest target of 4 per cent of all employees. We have been delighted with the outcome of an average of 51 per cent. This outcome is confirmed by the very positive poll results in regard to feedback.

Promoting effective leadership Organisational culture change requires the direct, visible involvement of the Chief Executive Officer (CEO) and top executives. Accordingly, the Guiding Coalition (see Chapter 9, Corporate Overview, page 115) commissioned the development of a Centrelink Leadership Framework which outlines the strategies and tools we need to develop the leadership capabilities required now and in the future.

Recent staff poll results relating to leadership have shown a substantial rise in positive responses from 50 per cent in 1998 to 68.1 per cent in October 1999.

The June 2000 results show a slight drop to 62.5 per cent, which we have started to address through the Leadership Framework.

Developing the Centrelink Leadership FrameworkThe Centrelink Leadership Framework was developed following the identification of needs and priorities for enhancing leadership in Centrelink. In particular, we:

undertook a survey of Guiding Coalition members; analysed the demographics of our leadership groups; considered feedback from previous staff polls;

reviewed the outcomes of 360 degree feedback exercises undertaken in 1998–99; and Added an additional capability to the Centrelink Leadership Capabilities.

Table 18: Centrelink Leadership Framework

STRATEGY TIMEFRAME

Level 1 Enhance the skills of of existing leaders at all levels

Short to medium

Level 2 Foster emerging leadership talent

Medium to long

Level 3 Establish the next generation of leaders

Long-term

Coaching and Feedback Workshops Work on enhancing the skills of existing leaders has already commenced. Coaching, feedback, problem solving and influencing have been identified by the Guiding Coalition as priority issues to be addressed.

A rigorous program to enhance coaching skills was conducted with all Guiding Coalition members. In addition, several Area Leadership Teams have undertaken 360 degree feedback programs and coaching workshops. Using their feedback, we have identified communication and sharing of information, trust and delegation as areas to be addressed.

Leadership Development ProgramsTo enhance the skills of current leaders and develop the skills of future leaders, a wide range of Leadership Development Programs have been conducted across the network. They included issues such as leadership development, visionary leadership, succession planning and management. A mentoring program to develop potential leaders in Centrelink has commenced and will be expanded in the next year.

In addition to our internally developed programs, the Centrelink Leading Change panel of providers continues to provide access, where appropriate, to external expertise in leadership development.

Australian Workplace AgreementsTo provide greater flexibility, accountability, reward and development opportunities for Centrelink senior leaders (SES and nonSES) and to assist Centrelink to retain key employees, we have encouraged them to negotiate and sign Australian Workplace Agreements. To date 55 Centrelink SES and 108 non-SES employees have been paid approximately $607 000 in performance bonuses this year.

Creating a learning environment within CentrelinkThe People Plan 1999–2000 states that Centrelink’s competitive advantage depends on the knowledge and ability of our people and the application of that knowledge and ability to their jobs. As a large and geographically dispersed organisation, the challenge for Centrelink is to target and deliver business-focused learning and development experiences of a consistently high standard across the full range of our people’s learning needs.

We are creating a learning environment that promotes and supports an integrated approach to team and individual learning and development. We want our people’s learning to be:

supported by effective Team and Individual Learning Plans (TILPs); business-focused, competency-based and externally accredited; and delivered using innovative technologies that provide good value for our learning dollar and a return

on the investment of our people’s time.

Our initiatives appear to be having a positive effect. The positive responses in relation to learning opportunities rose from 24 per cent in 1998 to 58.2 per cent in October 1999. They dipped slightly to 55.9 per cent in the June 2000 poll, indicating that we need to continue our efforts.

Team and Individual Learning Consistent with our move to a team-based approach where everyone contributes to meeting team goals, we are encouraging all our people to complete and maintain an up-to-date TILP. Through the TILP process we have the opportunity to identify, plan and deliver current and future learning and development programs to meet the needs of individuals and develop our overall people capability.

To monitor the TILP process we have included the completion and review of TILPs as a measure in the 1999–2000 Balanced Scorecard. To further highlight the value of this process, the measure was also included as one of the 11 measures used to determine salary increase provided for in the Centrelink Development Agreement 1999–2002.

Starting from a base of 46 per cent of employees with TILPs at June 1999, 86 per cent of employees had a TILP in place by 30 June 2000. Slow progress at the commencement of the year meant that we were unable to meet the 80 per cent target by the deadline of 30 December 1999, causing us to miss our pay rise target for this measure. TILPs remain a scorecard measure for pay rises for the life of the agreement.

Accredited Learning ProgramsCentrelink is a Registered Training Organisation, which enables us to develop and deliver several nationally recognized competency-based learning programs. These programs all focus on building skills and knowledge to improve our customer service. We offer a:

Certificate in Business (Office Administration); Certificate in Business (Administration) for front line customer service officers; Diploma in Business (Administration) for Team Leaders; Certificate in Community Services (Youth) for Youth and Students employees; Diploma in Community Services (Disability Work) for Disability employees; and Certificate in Fraud Control (Investigation) for Compliance employees.

Over 270 people are participating in these programs. Their feedback is being used to review the programs and to assist in developing complementary new programs.

Innovative Tools for LearningMeeting the learning and development needs of employees in a national organization with Centrelink’s size and diversity presents a challenge. We are meeting this challenge by using state-of-the-art learning technologies to improve the consistency, access and timeliness of our learning outcomes. Our major innovation in 1999–2000 is the Centrelink Education Network.

(See Chapter 8, Our Innovative Organisation, page 108 for more details.)

To complement the Centrelink Education Network we are developing an Online Learning Centre, which will provide greater access to a range of web-based and computer-assisted learning materials. As with the Education Network programs, these materials are being developed by the actual product designers.

Development ProgramsFeedback from our network suggested that products and policies designed in National Support Office did not always reflect an understanding of their full impact on the network. Two development programs, Inbound and Outbound, have been developed to address these concerns. They provide participants with a better understanding of Centrelink’s business and culture and an opportunity to contribute to the exchange of ideas and knowledge between National Support Office and the network.

Inbound

The Inbound Program, which commenced in November 1999, brings 16 Centrelink Band 4 employees from the network to National Support Office for an intensive five-day residential program during which participants complete projects on critical issues requiring network input and perspective.

The program includes presentations from keynote speakers including the Centrelink Executive, National Managers and the Secretaries of FaCS and DEWRSB. It also includes sessions on the governance of Centrelink and the purchaser/provider relationship with client agencies. A visit to Parliament also gives participants an opportunity to learn about parliamentary history, attend Question Time and meet both portfolio Ministers.

The three Inbounds that have been delivered have received excellent feedback from the 48 participants. The program will continue in 2000–01.

Outbound

The Outbound program, which also commenced in 1999, provides Centrelink Band 4 employees from National Support Office with an individually tailored program of three to five days experience in the network. The program takes them to Customer Service Centres, Area Support Offices and Call Centres where they have opportunities to experience first-hand the service delivery environment. We will be continuing this program as it has also received excellent feedback from the 85 people who have participated.

Noah’s Ark OutboundThe Noah’s Ark Outbound program aims to build mutual understanding and enhance working relationships between Centrelink and FaCS. SES officers from FaCS policy branches are paired with their Centrelink program counterpart for a fourday tour of our network. The schedule is similar to the Centrelink Outbound program but includes an additional visit to a FaCS State Office and other stakeholder agencies. This program will be delivered until December 2000, when a review will be undertaken to determine its future.

Other AchievementsImproving Pay ProcessingInfolink HR (Centrelink’s Human Resource Management System) has been operational since June 1999. Infolink HR has enabled Centrelink to simplify and streamline the processing of employee pay and entitlements, resulting in significant savings. It is estimated that these savings will be in the order of $4 million per year and are directly related to the reduction in the number of employees required to support pay processing.

During the year Centrelink moved from a network of nine ‘transitional’ pay centres to a National Pay Centre at Burnie, a National Compensation Service Centre in Adelaide, a Transfer Service Centre at Box Hill and a Remote Allowances Service Centre in Townsville. The InfoPay Call Centre at Melbourne provides streamlined assistance for employees for pay and pay processing matters.

The National Pay Centre network is supported by the Infolink HR project team. Consistent with the objective of achieving best practice in the delivery of People Management products and services, the team is undertaking enhancements to the current version of Infolink HR, particularly in the area of management reporting.

Improving Access to People Management Information and AdviceFeedback from our people indicated that they needed access to timely, consistent and accurate advice on people management issues. We have been able to improve our ability to communicate with our people using our well-developed Intranet technologies.

People Handbook

A comprehensive People Handbook was launched on the People Management home page in January 2000 and has been very well received. It uses a ‘worklife events’ model similar to the ‘life events’ model used for our external customers.

Information on People Management policies and processes can be accessed through the following seven ‘worklife events’: selecting good people; working; learning; leading and managing; changing jobs; well-being at work; and leaving Centrelink. Navigation through topics is enhanced by links to related Centrelink and external agency sites. The handbook’s contents and structure is continually under review, with updates being posted as required.

Sharing ideas and linking best practice information

We have also used CentreNet to provide our people with the opportunity to contribute and share ideas. The ‘Ideas that Work’ site in the People Handbook is regularly updated with innovative ideas that have been successfully put into practice in Centrelink and other organisations. People can also contribute their suggestions for improving people processes and procedures in Centrelink via an ‘Ideas Bank’. Suggestions are electronically forwarded to the People Management team for consideration and response.

A suggestion received through the Ideas Bank prompted the establishment of the ‘Rumour Mill’during 1999. The Rumour Mill is a question-and-answer based forum where employees can anonymously lodge rumours about what is happening in Centrelink. It provides a way for our people to have issues of concern addressed promptly by those who know the correct answers. Over 680 rumours have been received and answered to date (see also Chapter 8, Our Innovative Organisation, page 107)

Workforce Planning Integrating workforce planning with business planning In order to remain competitive, Centrelink needs to ensure that it has the workforce capability to deliver the outcomes sought by Government and client agencies, especially when tendering for new business.

In 1999–2000 People Management and Strategic Services teams commenced a workforce planning project, in recognition of the importance of this planning activity for Centrelink. The ANAO, in its report on Employee Reductions in the Australian Public Service, recommended that agencies monitor their employee skills and workforce demographics to ensure the ongoing management of agencies’ human capital, corporate knowledge, workforce core skills, diversity profiles and succession planning.

To date, a methodology for workforce planning has been developed and work has been undertaken to assess the people implications of Centrelink’s Business Plan 2000–01. The key outcome of the workforce planning project is that, by June 2001, workforce planning will be fully integrated with business planning processes at all levels in Centrelink.

Information and Technology Graduate recruitment and Talent BankTo build our capabilities to deliver IT services today and to position our workforce for tomorrow’s demands, the Information and Technology (I&T) Group conducted an I&T Graduate Recruitment campaign that resulted in the engagement of 59 graduates in 1999 and a further 29 in 2000. In addition, an I&T Talent Bank has been set up to enable the assignment of people to projects in a way that meets business priorities and individual career development needs. The Talent Bank also supports learning and workforce planning strategies through the integration of assignment, recruitment and learning functions. A skills survey has been completed and capabilities are being recorded and monitored on a database.

(See also Chapter 8, Our Innovative Organisation, page 107.)

Career transition programsWe have developed career transition programs for employees whose functions are being or may be outsourced. The programs deliver a range of products including information kits covering issues related to redundancy, information sessions on HR aspects of redundancy, access to career management services and access to transition training.

Delivery of the career management program has been provided by DBM Australia to employees in most capital cities. Employees have had access to a range of programs designed to assist individuals make career and lifestyle decisions. In addition, employees have had access to $3000 transition training in order to develop new skills and qualifications.

The functions of 40 printing services employees were outsourced in late 1999. Nine employees elected to seek redeployment options within Centrelink and a number of strategies including trial placements, job swaps and referral to external agencies were used to place excess employees. Seven employees have been permanently redeployed, one employee remains on retention and another employee retired during the retention period.

The program has also been available to in-scope employees in our IT Infrastructure team. We have tailored our strategies and initiatives to the needs of employees, targeting specific programs at key points of the process. A high level of support is required to retain employees through the process and to prepare them for a career transition in the event that outsourcing of IT Infrastructure functions occurs. Regular newsletters are published advising employees of scheduled programs and events and providing updates on the market testing process. If a decision to outsource IT Infrastructure functions is made we will be able to provide individualised assistance through on-site Career Transition Resource Centres.

ChallengesDuring 2000–01 we will continue with many of the important activities started in 1999–2000. The following activities have been included in Centrelink’s Business Plan 2000–01 and the People Plan 2000–01.

Continuing the implementation of the Centrelink Development Agreement 1999–2002In accordance with the Centrelink Development Agreement 1999–2002 we will consider the removal of work availability barriers from the classification structure. The barriers were included in the structure to reduce the potential for unwarranted increases in Centrelink’s salary profile due to broadbands. Progress with the work availability barrier project has been steady but slower than expected owing to the complexity of job design in Centrelink.

Leadership Development

We will develop and deliver workshops in business acumen and emotional intelligence for the Guiding Coalition. These workshops will then be rolled out to leaders and managers throughout Centrelink. We will also find ways to provide stronger linkages between the Centrelink’s Shared Behaviours and the Leadership Capabilities.

A Focus on Learning Aligning our people’s skills with our business directions is an important objective of Centrelink’s Business Plan 2000–01. We will undertake a consultative review of our National Learning Strategy and develop a Learning Framework to strengthen the links between accredited learning, technical training, and corporate learning and to identify the best application of innovative learning media.

To improve the coordination of learning planning and delivery and to monitor the knowledge levels and skills of our people we will develop an integrated learning management system.

Employee ConsultationThe Business Plan 2000–01 includes a commitment to monitor and respond to employee satisfaction issues. Action is underway at both the national and local levels to address issues identified through the staff polls. Work is also being undertaken to link staff perception research with feedback from customer, client and community stakeholder research through the integrated research framework.

Upgrading our Human Resources Management SystemThere will be a major upgrade of Infolink to the next version of the SAP software during 2000–01. The new version will incorporate a learning module that will support both learning and development processes and reporting functions.

Developing the People Management Service OfferWe will work with our internal customers and stakeholders to develop a People Management service offer. It will provide a framework through which we can monitor and improve our responsiveness to our customers. We will align and coordinate activities across all People Management functions; develop performance indicators to ensure that we can provide a business focused return on investment; and provide regular feedback on outcomes to stakeholders and partners.

Key activities will include:

a ‘Delivering Human Resources in Centrelink’ conference; a People Management Business Plan; a people management events calendar; and a people management benchmarking project.

Future OutcomesThe primary ‘people’ objective of Centrelink’s Business Plan 2000–01 is to align employee culture and skills with Centrelink’s business direction. This objective and its strategies will form the basis for Centrelink’s People Plan 2000–01. The People Plan, which is part of the Business Plan, includes initiatives which will assist employees to: gain a greater understanding of our business; and develop skills and knowledge to deliver the Government’s Welfare Reform initiatives. Other strategies in the plan, such as workforce planning, aim to build our overall people capability.

7. Our Cost Efficient OrganisationGoalOur goal is to efficiently manage our business and return a dividend to Government. The Balanced Scorecard measures our performance towards this goal through the Centrelink Cost Efficiency Key Result Area.

OverviewCentrelink achieved all its financial goals for 1999–2000, as follows:

a better than break-even operating result before abnormals; returned the required efficiency dividends to Government; achieved a positive cash position (without recourse to borrowings); and a positive net equity position.

These results were in marked contrast to the 1999–2000 Portfolio Budget Statements’ anticipated operating loss and requirement for cash borrowings. The positive results for 1999–2000 were a culmination of actions taken by Centrelink during the year (and prior years) to ensure the return of required efficiency dividends to Government.

Key StrategiesOur key strategies are to:

use external and internal benchmarking and review prices; use benchmark prices to develop and implement a pricing methodology linked to actual costs,

taking into consideration quality risk management and investment strategies; facilitate best practice, innovation and quality in business practice to advance Centrelink’s

competitive price position; ascertain the costs of all operations across Centrelink; ensure business management systems deliver outcomes including the provision of up-to-date

performance and costing data to support Centrelink activities; identify appropriate areas for outsourcing; develop and implement a learning strategy to enhance Centrelink’s business culture; and Assign accountabilities for business outcomes to all managers.

FocusTo meet our cost-efficient goal, Centrelink has focused on achieving a break-even or better operating result before abnormal and a positive cash and net equity position. We have also focused on maintaining high levels of customer service while paying all efficiency dividends to Government and redeveloping the funding model.

Outcomes AchievedOperating ResultCentrelink generated an operating surplus (before abnormals) of $24.8 million for 1999–2000. After abnormal items were taken into account, a net operating deficit of $4.9 million was incurred, which

was a significant improvement on the 1998–99 result of $31 million. This result was achieved after taking into account an efficiency dividend of $211 million that was returned to Government via a reduced revenue base.

The impact of the efficiency dividend is notionally illustrated below.

A summary of 1999–2000 expenditure and staff years is also shown below.

Table 19: Centrelink’s Net Operating Result 1999–2000 and 1998–99

1999–2000$m

1998–99$m

Revenue (net of dividend) 1 679 1 697

Revenue (before dividend) 1 890 1 793

Expenses -1 654 -1 677

Operating Result 236 116

Abnormal Item* -22 -81

Abnormal Item* -8 30

Operating Result before dividend

206 65

Efficiency Dividend -211 -96

Net Operating Result -5 -31

* Financial Statement Note 16.

Table 20: Summary of Resources

BUDGET*1999–2000

ACTUAL1999–2000

BUDGET†2000–01

$’000 $’000 $’000

Price of Agency Output Output: Efficient delivery of Commonwealth Services to eligible customers

Revenue from Government (Appropriation) for Departmental Output

0 0 250

BUDGET*1999–2000

ACTUAL1999–2000

BUDGET†2000–01

$’000 $’000 $’000

Revenue from other sources

1 661 834 1 678 713 1 745 973

Total price of output 1 661 834 1 678 713 1 746 223

Total Revenue for Outcome(Total price of output)

1 661 834 1 678 713 1 746 223

Equity Injection 26 211 26 211 19 202

Loans‡ 64 112 64 112 0

Total Capital for Agency

90 323 90 323 19 202

1999–2000 2000–01

Staffing Years (Number)

20 416 21 254

* Full year budget, including additional estimates.

† Budget prior to additional estimates.

‡ Centrelink fully repaid the $64.112 million loan in 1999–2000.

RevenueFaCS was the major source of revenue, providing 89.9 per cent of Centrelink’s overall revenue. Centrelink’s operating revenue is primarily derived from those client agencies with whom Centrelink negotiates and agrees Business Partnership Agreements. Funds are transferred to Centrelink in accordance with arrangements specified in the Business Partnership Agreements for the delivery of services.

Table 21: Revenue to Centrelink 1999–2000

CLIENT AGENCY REVENUE

$(’000)

Department of Family and Community Services 1 509 489

Department of Employment, Workplace Relations and Small Business

121 250

Department of Education, Training and Youth Affairs

24 462

Department of Health and Aged Care 2 401

Department of Agriculture, Forestry and Fisheries Australia

3 677

Other Revenue 17 434

Total 1 678 713

Abnormal ItemsThe 1999–2000 abnormal expense item of $29.8 million comprises $21.4 million in voluntary redundancies and a write-off of $8.4 million in internally developed software due to the development and implementation of a new family payments system in 2000–01 (see Chapter 11, Financial Statements, note 5, page 157).

Balance Sheet and Cash FlowA positive cash position of $55 million was reported for 1999–2000. Centrelink managed its funds under new devolved banking arrangements implemented on 1 July 1999. Centrelink’s investment strategy enabled it to generate almost $5 million in interest revenue for the year. Centrelink’s revenue has been reduced by a total of $5 million in 2000–01 on the basis of it continuing this positive performance.

Prescribed Efficiency DividendIn 1999–2000, for the third year in a row, Centrelink delivered government efficiency dividends in the form of a reduction in the fees paid to Centrelink by client agencies. In recognition of Centrelink’s need to achieve significant efficiencies through the integration of services and the removal of duplication across several agencies, a special dividend, in addition to the standard annual efficiency dividend of 1 per cent of total net running costs, was applicable. In 1999–2000, the level of the additional efficiency dividend was 10 per cent. The special efficiency dividend resulted in the return to Government of $139.4 million in 1999–2000.

Since its inception Centrelink has returned a total of $361 million in efficiency dividends to Government.

The Financial Statements section of the Annual Report (see Chapter 11 Financial Statements, page 137) shows revenue net of the dividend. The effects of the dividends are illustrated in the table below, which provides a breakdown of the individual components of the dividend.

Table 22: Government Dividend Requirements

1999–2000 1998–99

$m $m

Normal 46.0 31.0

Special 139.4 59.2

IT infrastructure 25.4 5.9

Total 210.8 96.1

Other AchievementsDebt Prevention ActivitiesCentrelink is committed to ensuring that all customers are paid correctly and that the incidence of incorrect payment is, where possible, reduced. This goal is promoted through a framework of business procedures, controls and systems and by targeting specialist debt prevention resources to identify and address the major causes of preventable debt.

Specialist Debt Prevention and Monitoring Officers, in partnership with relevant Centrelink Community Segment Teams, play a key role in the development, implementation and promotion of debt prevention strategies. The Debt Prevention and Monitoring function includes:

identifying and applying strategies to minimise and prevent customer debts to Centrelink; monitoring debt activity to ensure debts are processed in a timely manner; conducting debt prevention information and outreach programs within the community; and raising Centrelink staff awareness of debt-related issues.

As a high number of debts occur because some Centrelink customers do not correctly advise changes to their income, Centrelink has introduced a wide range of preventative measures. These measures include:

targeting outreach to employers with a high number of casual or temporary staff, who are traditionally more likely to incur income-related debts;

contacting Family Allowance customers to confirm the accuracy of their estimated income; educating customers about their responsibility to advise Centrelink of changes in their

circumstances through seminars and information strategically placed in Centrelink customer publications;

identifying and educating Newstart Allowance customers who have recently incurred an income-related debt in an attempt to minimise the risk of these customers incurring future debts;

reviewing the Rent Assistance entitlement of customers who appear to be paying an excessive amount of rent; and

distributing specially produced Centrelink information leaflets with payslips to casual AEC employees (6000 for the 9 October 1999 ATSIC election and 80 000 for the National Republic referendum of 6 November 1999).

During 1999–2000, there were over 900 000 individual customer contacts carried out as part of various debt prevention initiatives.

Additional information about compliance activities can be found in Chapter 4, Our Client Partnerships, page 29, and Appendix ix, Compliance, page 219.

Cost Per Service—Activity Based CostingThe Cost Optimisation Project has been established to enhance Centrelink’s approach to strategic cost management including the use of Activity Based Costing.

Regular up-to-date output costing data will inform business pricing, cost benchmarking, process re-engineering and resource allocation processes. Activity Based Costing is being conducted in consultation with Centrelink’s client agencies. To date, two surveys of staff effort have been conducted to map inputs to activities and outputs. It is expected that systems-based transaction data will be available early in 2001.

Funding ModelsCentrelink, its client agencies and the Department of Finance and Administration (DoFA) are working together to develop a new funding model for Centrelink.

Current funding arrangements are out of date, complex, different for each client, create instability, encourage accountability for inputs not outputs and do not capture changes in cost drivers across all payment types.

The new funding model should be in place for use in the 2001–02 Budget and in the next round of Business Partnership Agreements.

GST ImplementationCentrelink undertook a considerable amount of work to ensure it was GST-ready on 1 July 2000. Changes were made to policies, procedures, systems and structures during 1999–2000 and as a result Centrelink was able to meet its legislative obligations in respect of A New Tax System from 1 July 2000.

Contract ManagementDuring 1999–2000, Centrelink has achieved savings of approximately $18 million as a result of prudent management of national contracts. These savings have been achieved through the contracts associated with:

outgoing telecommunications services; travel services; managed voice services; motor vehicle leases; and photocopier and mail services.

The savings have been realised as a result of negotiating new contracts or contract management activities including:

cost reductions from better practices; reduction in or waiver of supplier invoices; liquidated damages and rebates; and reimbursement of costs from inter-agency activities.

Outsourcing initiativesDuring 1999–2000, Centrelink market-tested three activities previously undertaken in-house. As a result of the competitive tendering and contracting (CTC) process, three separate contracts were let. Details relating to these contracts are provided below.

Mail Sorting and Transfer Services A contract for mail sorting and transfer services was let in September 1999 with a total contract value of $220 000. The term of the contract is for one year. $64 000 in savings were identified as a result of the CTC process.

Publishing, Printing, Distribution and Services for Personalisation and MailingIn early 1999, through a CTC process, Centrelink incorporated a number of functions previously independently contracted out into one combined contract. The function of personalisation was added to the overall contract arrangement for the first time. The term of the contract is for five years and commenced in August 1999. The estimated value of the contract is $135 million and savings are estimated at over $3 million.

Legal Services Centrelink conducted a CTC process in late 1999 for the renewal of its legal services contract arrangements. As a result, a standing offer panel contract was established for the provision of legal services for a three year period with an estimated value of $8.53 million.

ETI*Extract The Knowledge Team has developed a new data warehousing tool, ETI*Extract, which has significantly improved programming practices, reduced maintenance costs and reduced computer processing time by more than half. This initiative considerably enhances the Knowledge Teams’ delivery of management information to all Centrelink staff. As this project is still in its first phase of implementation, Knowledge Team expects the flow through from the use of this product to continue to deliver significant efficiency.

ChallengesCentrelink faced a number of challenges to achieving required operating results and positive cash and equity positions for 1999–2000. These included:

implementing and managing under devolved banking arrangements; total efficiency dividends to be returned to Government increasing from $96.1 million in 1998–99

to $210.8 million in 1999–2000, while at the same time ensuring satisfactory service standards were maintained or improved;

improved economic conditions reducing agency revenue under purchaser/provider arrangements as a result of reductions in Newstart and Youth Allowance customers. Remedial action to expenses was required to ensure the achievement of a breakeven operating result;

consolidating financial and budgeting arrangements under an accrual framework; and ensuring Centrelink GST-readiness for 1 July 2000.

Future OutcomesEnergy ManagementCentrelink will undertake a two stage Energy Management Program through AGL (Australian Gas Light Company), designed to ensure it meets the Government’s energy reduction targets. Subject to the Stage 1 data validation process, it is hoped to enter into an Energy Performance Contract to be funded and managed by AGL, with guaranteed energy reduction outcomes. Centrelink’s Property Operating Expense will reduce as energy savings are realised. Should the contract proceed,

Centrelink will be the first Commonwealth Agency to enter such an arrangement. This should establish Centrelink as a lead Agency in energy performance contracting.

Pricing ReviewCentrelink is scheduled for a DoFA Pricing Review in 2001–02. The work that has been done in 1999–2000 on strategic cost management, benchmarking and the development of a new funding model will place Centrelink in a good position to commence this review.

8. Our Innovative OrganisationGoalOur goal is to provide innovative and personalised solutions consistent with government policy.

OverviewCentrelink undertakes a wide range of projects and initiatives designed to enhance Centrelink’s ability to deliver a range of services. Many of these projects are the backbone of our future services, providing the architecture and infrastructure to enable Centrelink to be flexible and responsive. These projects and initiatives show how prevalent the culture of innovation is in Centrelink.

Highlights include the development of Centrelink Online and Decision Support (Expert) Systems to support future electronic service delivery. Other innovative projects include the development of the Rural CD-ROM, 1Business, the Centrelink Education Network and CentreThink.

Key StrategiesThe key strategies are to:

use new and emerging technologies to personalise service, expand choice, increase convenience, support decision making and support the one-to-one model of customer service;

build business partnerships and strategic alliances for a ‘single window’ to government ervices; encourage innovation and creativity in Centrelink people; and develop an Enterprise Architecture.

FocusWhile continuing to deliver the business today to meet the expectations of our clients, customers, the community and Government, Centrelink is always looking to the future to maximise its opportunities and to transform tomorrow in a way that will exceed the expectations of our stakeholders.

Outcomes AchievedIn improving current performance, Centrelink seeks to use new and emerging technologies to personalise service, expand choice, increase convenience, support decision making and support the one-to-one model of customer service.

Delivering Customer Service Today

Call Centre AutomationCentrelink receives over 20 million calls each year. To meet this demand Centrelink’s Call Centre system has been improved. Technical improvements such as Global Call Handling, which moves calls around the network to even out peaks and flows in individual centres, and CallScan, which provides valuable management information, have been implemented to improve the waiting times for our customers.

A number of trials of automated telephone based customer self services are being undertaken. A trial of automated phone-based self service payment details commenced in April 1998 in WA, and is currently being redeveloped for national rollout in 2000–01.

A trial of phone lodgement of fortnightly mandatory continuation forms commenced in December 1999 and will finish in August 2000. The trial is being held in a sample of Customer Service Centres in Area South Australia, covering a cross section of customer demographics. Approximately 2200 customers chose to take part.

Customers ring a dedicated phone number (for the cost of a local call) and answer a series of questions, including declaring earnings, using the number pad on their telephone. Customer records are updated and payment generated using this information. Customer response has been overwhelmingly positive, especially customers with part-time or casual earnings.

Telstra Multimedia PayphoneCentrelink, HIC and DEWRSB, together with Telstra, have been conducting trials of a touch-screen based payphone which, besides allowing standard phone calls, can connect the user directly to participating ‘content providers’. These Multimedia Payphones combine payphone, smartcard, printer, multimedia and Internet technologies, offering the potential for delivery of a wide range of services and information.


The trial is limited to 10 locations in rural Australia and will cease on 30 September 2000.

The Centrelink site contains a wide range of information covering the payments and services delivered by Centrelink, the location of the nearest Centrelink Customer Service Centre and information on specialist services. It will soon be enhanced to allow customers to register and make enquiries online regarding their own payment information.

Emergency and General Assistance PaymentThe Emergency and General Assistance payment (EMG) system was developed and implemented by Centrelink under the Disaster Assistance Payments project.

The EMG system is one part of a suite of IT developments designed to allow Centrelink to react quickly and efficiently in times of disaster. Centrelink is now able to make ex-gratia payments to customers affected by disasters, or other emergency situations, at very short notice. In the most extreme cases, payments can be made available within hours of the event. The flexibility built into the EMG system allows Centrelink to tailor payments to the requirements of individual situations, and to address many different situations simultaneously if the need arises.

Self help facilities for rural customersCentrelink has also focused on providing a range of technological solutions to improve services to rural and regional customers.

The provision of self help facilities in very small communities have given rural customers better access to government services including through:

a dedicated Internet enabled personal computer to allow access to job vacancy details, information about the Job Network and a list of available local providers and other relevant information;

dedicated facsimile and phone equipment to provide direct access to Centrelink staff and specialist services; and

v Figure 14: Centrelink Organisational Framework and Customer Service Network ideo conferencing facilities and printers (in some locations).

Video conferencing facilities are used by some Centrelink agents. This has enabled rural and remote customers to have face to face interviews and obtain specialist advice with staff in Centrelink offices.

Remote Access ServicesThe Remote Access Services (RAS) Program allows Centrelink to deliver services in situations where no Centrelink office exists. With the aid of a specially configured laptop computer, staff can:

offer services in otherwise isolated parts of Australia; assist in areas cut off by natural disasters; visit customers physically unable to attend an office; and Work from home.

RAS is a viable low-cost small office alternative. Customer service officers have made substantial efficiency gains with the use of RAS. In 1999–2000, we achieved the following improvements:

RAS architecture has been moved to a very stable and highly scalable platform. It is highly secure with hardware and user authentication and full encryption services.

The number of RAS laptops has risen from 600 to over 1200, and is expected to further increase.

Income RecordCentrelink implemented the Income Record form for job seekers with earnings after a version was successfully trialled in Tasmania. The Income Record form assists job seekers to easily keep track of their earnings each fortnight in order to minimise errors and to promote accurate notification of earnings. By recording the amount earned each day on the Income Record, job seekers have a better understanding of the amount they are required to declare to Centrelink. One version of the record allows for piece rates while another is designed for the job seeker’s employer to stamp or sign the form to verify the amount declared. This significantly reduces the number of times Centrelink has to contact employers to verify amounts earned by job seekers.

Centrelink Education Payments System (CEPS)Centrelink was engaged by DETYA to migrate the Education Student Assistance System (ESAS) across to Centrelink’s claims and payments processing infrastructure. ESAS supported a number of important student assistance programs, namely:

ABSTUDY; AIC; Pensioner Education Supplement; and Financial Supplement Loan Scheme.

The implementation of CEPS provides a number of benefits to Centrelink and its customers:

Customers are Figure 14: Centrelink Organisational Framework and Customer Service Network able to advise a change of circumstances at any Centrelink office or Call Centre to have their records updated.

the system allows the management of continued entitlement by interface with other family members’ records.

the system was built to facilitate a claim and annual review service rather than an annual claim process.


Centrelink IT ServicesCentrelink IT systems availability and response-time performance exceeded the 99 per cent targets set in Business Partnership Agreements for 1999–2000. Since June 1999, IT systems releases have progressively increased in size and complexity. The major June 2000 release was twice the size of the June 1999 release, and was the largest release ever undertaken by the I&T Group. Over the past 12 months the I&T Group has changed 21 per cent of its internally developed software functions, altered 15 000 computer application procedures and increased the overall application asset holdings by 11 per cent. In the same time period, attention to defect metrics has resulted in a 78 per cent reduction in release bug screen defects.

Centrelink has developed an extensive IT capability over the past 15 years. We are currently ranked by industry experts as the fourth largest IT user in Australia. Our technological capabilities are aligned with the growing business demand that arises from technology advances, allowing us to implement more complex applications, process increasing volumes of information, increase the sophistication of our Call Centre services and extend our presence onto the Internet.

IT InfrastructureThe Network 2000 project focused on providing Year 2000 compliant computing infrastructure for Centrelink. With all major deliverables completed by September 1999, Network 2000 was a complex logistical exercise impacting on all Centrelink sites and resulting in the comprehensive upgrading of computing hardware and software.

The project provided an immediate increase in overall network stability as well as the current 32 bit operating platform (Windows NT) necessary to deliver Centrelink’s future major information technology projects.

Supporting Staff

Internet, Intranet and Extranet Services in CentrelinkThe Internet, Intranet and future Extranets will continue to provide a common platform on which a substantial amount of customer information can be collected, integrated, analysed and shared.

Our corporate Intranet, known as CentreNet, was established to deliver information and interactive services to our staff throughout Australia. The scale of CentreNet makes it one of the largest public or private Intranets deployed in Australia.

CentreNet provides an online phone book, entitlement ready reckoners, people management interrogation tools including employment/pay self service, ideas laboratories and information about our products and services and the teams within Centrelink who provide these services.

The Centrelink Internet site provides over 1000 pages of information and basic email query options. It is being redeveloped for ‘life events’and will have increased interactivity via email with a secure messaging capability, as well as a number of downloadable forms. It also provides hotlinks to a range of other services both public and private.

ATO and HIC staff in FAO will be provided with access to the Intranet via the new Extranet to enable them to make use of the assessment tools.

Mapstat‘Mapstat’ allows staff from any Call Centre to quickly locate specific information about local Centrelink Customer Service Centres and relevant services for customers on the phone. This information includes detailed maps and photos to assist the customer in finding the location of offices, as well as information on services offered and contact details. Call Centre operators can be advised of changes or new information within seconds providing a consistent, reliable and efficient service to customers. This application has potential for deployment on the Internet for direct customer access.

Sprite An Intranet business IT support tool known as Sprite was deployed for employment services staff. It supports customer service officers with a range of job seeker contacts.

Sprite facilitates an online claim process and provides significantly increased decision support. In addition, it provides a ‘Statement of Circumstances’, a printout of the information held by Centrelink, for use in the review process. The job seeker simply certifies its correctness or indicates any changes of circumstances.

Other key features and benefits are:

productivity gains from more efficient mainframe updates; a summary of complex job seeker information with the option of ‘drilling down’ for the detail; reduced system complexity, with increased surety that the customer service officer has taken the

action that is required; and links to other Intranet sites such as the DEWRSB ‘vacancy database’.


Support for Rural Agents A Rural CD-ROM was developed during 1999–2000 to help provide better support to Centrelink agents and to improve the quality of information and services provided to their rural and regional customers. The content and presentation of the Rural CD-ROM is in line with the ‘life events’ approach and is updated and distributed quarterly.

The Rural CD-ROM provides agents with access to:

a wide range of printable Centrelink forms and publications, and up-to-date reference information on Centrelink payments and services;

a customer screening support tool, which guides agents through a series of questions to identify the payments and services best suited to individual customers; and

training modules for new initiatives.


Relocation ToolCentrelink has developed an Intranet tool called REMOVE (Reduced Employment Moving Test) to assist job seekers with relocation queries. REMOVE makes an initial assessment of whether a move or an intended move complies with legislative requirements. The tool uses CentreNet to link the national localities database to small area labour market data and will then apply business rules in accordance with the policy and legislation. The complete package includes a detailed reference guide and is easy for staff to use.

REMOVE has been very successful in assisting Centrelink staff to readily advise a job seeker whether their move would invoke a deferment period. REMOVE has been consistently in the top 15 sites visited on CentreNet suggesting its widespread application and its high value to Centrelink staff.


Building business partnerships

TIGERSThe Trials of Innovative Government Electronic Regional Services (TIGERS) project is part of the Federal Government’s accessing the Future program funded from the Telstra Social Bonus Package. It is the lead demonstration project to encourage Commonwealth, state and local government agencies to harness IT and telecommunications in order to integrate service delivery and improve customer service. It consists of four sub-projects:

The Government Information Centre, Launceston, will be further developed to enable telephone services for all three levels of government.

A single point of entry through the Internet will be developed to enable clients to undertake ‘all in one’ transactions with agencies. This will include electronic application lodgement and online payments. The new web site will act as a front page for the Tasmanian State Government by providing ‘cutting edge’ searching and information retrieval facilities in a user friendly format.

Selected over the counter Commonwealth and local government services will be delivered through Service Tasmania’s network of 24 shopfronts.

Innovative ways of delivering services will be explored, taking advantage of new technologies and related programs.

Service Tasmania and Centrelink have been working together over the past two years to jointly deliver services to their customers. The TIGERS project will expand the locations and range of services for Centrelink customers. This will be done, initially, in two phases.

The first phase will see enhancements to agent arrangements with Service Tasmania. Centrelink agencies have been established at Service Tasmania shops in Sheffield, Scottsdale, Deloraine, New Norfolk, Triabunna, Smithton and Georgetown. These Service Tasmania shops will deliver a range of Centrelink services including providing assistance with claims, form lodgment and general enquiries.

The second phase of the Centrelink partnership will identify and use appropriate technology to build on business relationships with the aim of further expanding services in rural communities.


WA TelecentresThe WA Government has established the WA Telecentres to provide rural and regional communities with local access to enhanced IT services and a supportive network across Western Australia. Centrelink has negotiated an arrangement with the WA Department of Commerce and Trade to deliver a range of basic information access services from 57 WA Telecentre locations. Centrelink customers are able to use the facilities to collect forms and other Centrelink information, make basic enquiries, and obtain free access to a photocopier and telephone, facsimile and Internet facilities to contact Centrelink.


Encouraging innovation and creativity in Centrelink’s people

CentreThinkCentreThink provides a forum for staff to discuss, promote and share ideas for improving Centrelink. As part of Centrelink’s strategic framework, it is committed to providing opportunities for Centrelink people to influence our future through their ideas and innovations. CentreThink is the mechanism for this process as it is available to staff at all levels of the organisation, and at all sites.

CentreThink comprises three components:

‘Ideas Bank’ allows staff to propose ideas for improvement and innovation. Over 700 ideas were submitted in 1999–2000.

‘Let’s Talk’ permits staff to discuss problems and ideas that have been implemented at the local level. Approximately 65 postings were made to ‘Let’s Talk’ each day in 1999–2000.

‘Rumour Mill’ allows staff to obtain an official response to rumours in the workplace. There were over 680 postings in 1999–2000.

(See also Chapter 6, Our People, page 87.)

Creativity SupportCentrelink encourages the use of Electronic Service equipment in combination with creativity products, tools and techniques by facilitators at workshops and conferences. The products include Decisions (Grouputer), MindManager and Six Thinking Hats.

Talent BankThe I&T Talent Bank has been developed to enable the assignment of people to projects in a way that meets business priorities and individual career development needs.


ITWorksA monthly Business TV Program ITWorks is produced by Centrelink’s I&T Group. The program provides IT related information and training to Centrelink staff and showcases new and innovative technologies.

Enterprise ArchitectureDuring 1999–2000, Centrelink developed a draft version of the Enterprise Architecture. The primary aim of the Enterprise Architecture is to enhance Centrelink’s ability to deliver new and changed business services rapidly. The data and technology components of the architecture are currently defined to a much greater level of detail than the business and information components. This imbalance will be addressed in the forthcoming year in line with the business strategy and business process re-engineering developments.

Centrelink is committed to ensuring that the business and IT components of the architecture are aligned and comprehensively documented. This will enable greater levels of speed, flexibility and cost-effectiveness of all operations.

Other AchievementsCentrelink Education NetworkIn April 2000, Centrelink launched the Education Network, an interactive distance learning facility that can provide a virtual classroom in almost every workplace. Using business television and interactive keypads, any number of ‘students’ at a given time can answer questions or ask for help, and can speak to the trainer via a built-in microphone.

The Education Network has enabled us to target learning opportunities to the needs of specific workgroups, delivering highly consistent learning and catering to different levels of knowledge. In addition, staff can now receive their technical training directly from subject-matter specialists. For these reasons, this technology has proved to be a popular way to learn.

Since its commencement, the Education Network has broadcast an average of four learning sessions per day covering a wide range of topics. Within the first 15 days, learning sessions delivered six subject categories to over 2000 participants. This initiative demonstrates Centrelink’s commitment to

finding innovative and effective ways of giving our people the tools they need to deliver even better service to Centrelink customers.


1Business1Business focuses on aligning Centrelink’s I&T capabilities and services to the rest of the business to assure quality outcomes. It is a process for both parties in a partnership to describe current levels of satisfaction, outline the issues or barriers to improved performance and to identify a range of improvement actions in an agreed timeframe. At a local and national level, it enables both sides of the business to better understand the factors affecting the achievement of exceptional service from their customers’perspective.

CentrepayCentrepay allows Centrelink customers to voluntarily have regular amounts deducted from their social security payments for expenses such as rent, gas, water, or electricity direct to organizations providing that service. Following increased demand for Centrepay from a number of organisations, various enhancements to the electronic deduction facility will be introduced in 2000–01.

Centrelink’s existing IT Model 204 structure and SAP functionality will be combined with developments in electronic communications and networking to enable the timely electronic exchange of information between Centrelink and service providers.

ChallengesChanging Expectations and NeedsCentrelink customer expectations are changing, as they increasingly expect faster, more flexible and simpler options to access information and other services. Customers expect Centrelink to organise its business to provide them with the right service at the right time and in the right place.

Communities are today becoming wired up online. The ability to find information, tap into services, and communicate with others over long distances is becoming very real. As this empowerment increases, people are beginning to demand the same services from Centrelink, regardless of their rural, remote, or urban location.

E-business strategies are growing around the world, to the extent that services can now largely be provided by anyone, anywhere, anytime. Customers are no longer bound by what exists in their locality and brand loyalty has taken on a very different meaning. Centrelink has to develop a new image for both the customers of its services and the purchasers of the service delivery.

Within a contestable environment, Centrelink must be more flexible in order to accommodate the diverse business requirements of clients. Business clients want high-quality performance information on their products and Centrelink’s service delivery.

Centrelink needs to be aware of emerging technologies in order to position itself ahead of potential competitors, in respect of research and development, technology acquisition and skills.

The emergence and availability of the home PC and other electronic devices with the ability to connect to the Internet has meant that new forms of security and customer authentication are required in order to conduct e-business and protect the customer’s privacy.

Knowledge management, particularly in relation to its scope and scale, will continue to be a critical issue for Centrelink.

Centrelink will need to take advantage of the opportunities that arise to forge a broad range of alliances and partnerships with federal, state, local government, community and private sector organisations to expand its services.

Future OutcomesTransforming Tomorrow

Centrelink OnlineThe Centrelink Online project delivers the new IT infrastructure required to enable Centrelink’s electronic service delivery initiatives to proceed. The goals of Centrelink Online are to:

facilitate service delivery across multiple access channels (for example Interactive Voice Response, Web, Kiosk);

allow business logic in IT systems to be reused across access channels; provide separation of workflow (business processes) from business rules; provide for seamless access to multiple back-end IT systems; leverage existing legacy IT systems; and be scalable, flexible, open, secure, manageable, cost-effective and outward looking.

In essence, Centrelink Online provides application developers with a set of standard functions and facilities that hide underlying complexities and enables the rapid development and delivery of electronic service delivery initiatives.

Andersen Consulting, as systems integrator, worked with Centrelink staff during 1999–2000 to develop and deliver two versions of Centrelink Online, namely:

Version 1—to support the initial implementation of Call Centre Automation (Screen Pop, Softphone and payment details); and

Version 2—to support the electronic service delivery aspects of FAO (Intranet access by FAO staff located in ATO and HIC offices; Intranet access to the Childcare Operators System).

Once testing has been completed in the early part of 2000–01, Centrelink Online Version 3 will support further Centrelink electronic service delivery initiatives including Accessing Centrelink, Customer Internet Services and Expert Systems. Call Centre Automation and FAO will also migrate to Version 3.

By the end of 2000–01, Centrelink Online will have provided major components of the robust and flexible architecture and infrastructure required to underpin Centrelink’s electronic service delivery capability and integrate with existing systems and data. This capability will significantly enhance Centrelink’s ability to personalise service, expand choice and increase convenience for customers.

Decision Support (Expert) Systems The payments and services offered by Centrelink are complex, wide-ranging and subject to high levels of change. In such an environment the development of Decision Support (Expert) Systems will assist our staff to deliver accurate and appropriate service offers to customers (see also Chapter 5, Our Customers and Community, page 63).

Softlaw Corporation, an Australian company and industry leader in expert system technologies, has been engaged to assist in jointly developing a Decision Support (Expert) System with Centrelink and FaCS.

Softlaw Corporation will provide their expert system software ‘Statute Expert’ and manage overall system development, in addition to providing staff training and support services to staff of both

Centrelink and FaCS. Staff from Centrelink, FaCS and Softlaw Corporation were co-located in Canberra from March 2000 to begin development of the Decision Support (Expert) System.

The system will:

guide staff through the necessary policy rules and legislation to help them determine a customer’s likely entitlements as they enter customer information;

provide a record of the decision path; generate up front a customer letter of likely entitlement at interview; and Include a ‘what if’ capability to enable customers to test a number of scenarios in assessing the

impact of possible changes in their circumstances.

The Decision Support (Expert) System will assist staff in their day-to-day processing and service functions and address customer concerns about accuracy, consistency, clarity and completeness of information.

The system will support the FAO implementation in 2000–01. Customer Service Centres will initially receive the system in stand-alone mode. A version integrated with existing Centrelink systems is scheduled to be released in 2001–02, and it is envisaged that the system will later become available on the Internet for customer self-service.

The longer term possibility of extending the Decision Support (Expert) Systems rulebase approach to cover all the business of client agencies and allowing customers access to their own records for restricted access or update is being examined.

Accessing Centrelink The Accessing Centrelink project will assist staff to accurately and efficiently deliver service offers to new customers experiencing a ‘life event’. The tool will create a generic admission procedure across all ‘life events’ with access to all products and services. In this regard it can be seen as a low level decision support tool for customer streaming and admission purposes for all ‘life events’.

The benefits of such a tool are that:

accurate, complete and consistent advice is given on first contact; customer information is provided and recorded once only; and customer satisfaction is increased due to the reduction in form-filling as it is an online claim.

The first phase of the project will be delivered by January 2001 and by April 2001 the second phase will be introduced to cover all major Centrelink services.

Call Centre AutomationThe Centrelink Service Delivery Strategy sets a clear direction for enhancing our service offers over the coming decade. Call Centre Automation is the first real step in offering multiple channels of electronic access for current and future Centrelink customers.

To move forward into the new online service delivery environment required of all Federal agencies by Government, and to position Centrelink to be at the forefront of developments, the following directions are now ready for development over the next two years:

Computer Telephony Integration (integrating telephony and computer technologies) will provide new customer self-service choices and bring new tools directly onto the desktop of Centrelink’s customer service officers.

Interactive Voice Response will provide voice recognition, greater matching of customer needs to Centrelink staff skills, and lead towards integration with web-based services.

Inbound and Outbound Strategies will involve proactively contacting customers on a personalised basis, resulting in fewer letters and more direct contact at times that suit customers.

Centrelink is putting the following building blocks in place in 2000–01 to enable these developments to proceed. These include:

developing new Call Centre tools such as Screenpop (presenting customer information right on the desktop) and Softphone (literally putting the phone into the computer to improve processes);

fully automating transactions for customers, starting with expanding telephone based customer self service inquiries to personal data; and

enhancing call routing and performance reporting information.

e:CommerceIn line with the Government Online Strategy, developed by the Office for Government Online, the Centrelink e:Commerce project aims to electronically deliver the processes associated with materials and services purchasing and supplier payment by the end of December 2001.

The Infolink I&T team is currently performing a technical evaluation of the available e:Commerce solutions through site visits, meetings with suppliers and independent research. A pilot project is planned for late 2000 with a subsequent complete rollout by December 2001. These initiatives will enable Centrelink to take advantage of the business opportunities and operational efficiencies associated with electronic trading.

9. Corporate Overview of Our OrganisationLegislationThe Commonwealth Services Delivery Agency Act 1997 (the CSDA Act) which came into effect on 1 July 1997 formally established Centrelink. Under this Act the Agency comprises:

a Board of Management; the Chief Executive Officer; and the employees.

Other legislation affecting Centrelink is outlined in Appendix i.

Centrelink’s FunctionsThe Act confers on the Agency responsibility for:

the provision of Commonwealth services in accordance with service arrangements, and activity included in the arrangements that is incidental, conducive or related to the provision of the services;

any functions conferred on the Agency under any other Act; any functions that the Minister, by written notice given to the Chairman, directs the Agency to

perform; and activity incidental, conducive or related to the performance of any of its other functions.

Role of the Board of ManagementThe Act gives the Board power to do all things necessary or convenient to be done for, or in connection with, the performance of its functions. The Board’s functions are:

to decide the Agency’s goals, priorities, policies and strategies; and to ensure that the Agency’s functions are properly, efficiently and effectively performed.

The Board must also ensure that general policies of the Commonwealth Government that apply to the Agency, the Board or the employees are carried out.

Notifiable EventsUnder Sections 9 and 13 of the CSDA Act, the Board must comply with a direction from the Minister, given in writing to the Chairman, about the performance of its functions, the exercise of its powers or the conduct of its meetings. Particulars of any directions given by the Minister in a financial year must be included in Centrelink’s Annual Report.

Section 10 of the CSDA Act requires that, before giving a direction under Section 9, the Minister must ask the Board for its advice and comments on the impact of the direction on the Agency’s operations. Particulars of advice by the Board are also required to be reported in Centrelink’s Annual Report.

No notifiable events or ministerial directions were received during 1999–2000.

Role of the Chief Executive OfficerThe CEO is responsible for the day-to-day management of Centrelink and Centrelink’s operations.

Guiding CoalitionCentrelink has a flat management structure; the traditional divisions and branches have been replaced with teams. A SES officer leads each team. There is no hierarchical order for these teams and their leaders.

Every SES officer is a member of the Guiding Coalition. The Guiding Coalition is Centrelink’s Management Committee. Each member represents his or her people. The Guiding Coalition meets about every six weeks.

The Guiding Coalition’s role is, within the directions or policies determined by the Board of Management, to:

guide the organisation; set enabling direction and take key decisions; establish a culture for the future; and Be an educative forum.

The Span of the Centrelink NetworkThe organisational shape of Centrelink has remained dynamic and has been under continual review over the past year as Centrelink has expanded its operational capacity.

The organisational structure reflects the business operations logically, and facilitates the ongoing streamlining of organizational levels and functions. It also provides the flexibility to build organisational capabilities that will be required for Centrelink to function in an increasingly contestable environment.

Customer Service Centres, agents and community agents are positioned to allow the widest possible access to all Australians, whether they be in metropolitan, rural or remote localities (see Figure 15, Span of the Centrelink Service Delivery Network). This network allows Centrelink to deliver a comprehensive suite of services consistent with the Government’s one-stop-shop policy.

Area Support OfficesGiven its national focus, Centrelink has grouped its various service centres into 15 geographical areas, each with an Area Support Office headed by an Area Manager. These offices provide management, administrative and operational support for Customer Service Centres.

Figure 14: Centrelink Organisational Framework and Customer Service Network

Figure 15: Span of the Centrelink Service Delivery Network

National Support OfficeThe National Support Office is Centrelink’s headquarters and, as its name suggests, supports the Board of Management, Ministers, client agencies and the Centrelink network that interacts directly with customers.

There are three main types of teams in the National Support Office: Theme Teams; Community Segment Teams; and Information and Technology (I&T) Teams.

Theme Teams manage corporate functions and ensure that Centrelink develops and demonstrates best practice in all aspects of its operations.

Community Segment Teams, corresponding to the major customer groups to which Centrelink delivers payments and services, are responsible for ensuring the achievement of performance levels set out in Business Partnership Agreements for their particular customer group. They also provide the main point of liaison for day-to-day contact between Centrelink and its client agencies.

I&T Teams are responsible for the development, release and maintenance of IT products and services for Centrelink.

(See Figure 14, Centrelink Organisational Framework. )

Other Corporate MattersRestructure of National Support OfficeNational Support Office underwent a major restructure in 1999–2000. The restructure aimed to improve the service that it provides to the network, client agencies, the Board and Ministers and other key stakeholders. It was instigated in response to feedback from clients highlighting concerns with consistency of service across the network and the time lag between announcement of policy changes and actual implementation of those changes by Centrelink.

One of the major changes arising from the restructure was the creation of the Service Integration Shop, which will support the development of customised service offers for client agencies and interface extensively with the network and I&T services. This will allow Centrelink to develop a consistent and preferred way of doing business through sharing best practice across Community Segments and the organisation as a whole.

The restructure will also allow an increased focus on client relationship management with clients and external stakeholders, and will enable Centrelink to better anticipate and respond to client needs and better position itself for new business opportunities in the future.

Executive AppointmentsMr Paul Hickey has been appointed to the position of Deputy Chief Executive Officer, Business Capability.

His previous positions include:

Executive Director, Australian Quarantine and Inspection Service; and Deputy Secretary, Department of Employment, Education and Training (now DETYA).

Senior Management RemunerationThe Government’s workplace relations and wages policy supports the determination of wages and conditions as far as possible by agreement at either the enterprise or workplace level. As such, it is Centrelink policy to remunerate the SES by Australian Workplace Agreements. Centrelink does not use classification bandwidths as the basis for remuneration.

Discretionary GrantsCentrelink does not administer any discretionary grant programs.

Assets ManagementAssets management does not form a significant aspect of Centrelink’s strategic business.

Year 2000 ComplianceThe Year 2000 Compliance Project was initiated in March 1996 to address the Year 2000 issue in the Family and Community Services Portfolio. Early recognition of the potential Year 2000 problem and comprehensive testing undertaken during the previous two years has resulted in a successful rollover into the Year 2000 for Centrelink, with no Year 2000 related problems. All Centrelink Customer Service Centres opened for business on Tuesday 4 January 2000, and as expected, Centrelink’s operations during the first business cycle of the New Year was business as usual. Centrelink customers were unaffected by the Year 2000 issue, with all payment systems operating as required.

Total expenditure for Centrelink’s Year 2000 project was $21 million over a three year period, which included $11.34 million seed funding from the Office for Government Online. The largest expenses were $6 million to build and maintain a specific Year 2000 testing environment and $5 million to complete an extensive testing program, which was conducted by Centrelink and contract staff. Repairing systems, making transition preparations and coordinating staff accounted for $10 million.

Centrelink was diligent in managing Year 2000 expenditure. While Centrelink has one of the largest integrated computing environments in Australia, it managed to keep Year 2000 expenditure to a modest level compared to other national organisations.

Centrelink’s Year 2000 project was designed to ensure our customers would not experience any disruptions to payments or service benefits. The Centrelink Business Continuity Plan allowed for alternative measures to be put in place to ensure no disruption in the event of system failure.

A Year 2000 simulation exercise was held and formal continuity and business resumption frameworks were established. These practices allow Centrelink to be well positioned for future business and systems continuity issues.

During July 1999, the Office for Government Online requested that Centrelink participate in an independent third party review of Year 2000 preparedness. As a result, external consultants Acumen Alliance were selected by Centrelink from the Office for Government Online approved panel of consultants to conduct the review. The scope of the review included appropriateness of Year 2000 Business Continuity Planning and thoroughness of testing and certification.

The final report by Acumen Alliance concluded that Centrelink’s estimates for seed funding were accurate and appropriate funds were managed well, a rigorous certification process had been followed, and the Year 2000 Project Office had followed best practice.

Recognition of ExcellenceCustomer Charter AwardsCentrelink has won the silver award for ‘Excellence in integrating Service Charter-driven customer service outcomes with core business practices.’ This was one of nine awards in three categories to Commonwealth agencies that competed in the inaugural Service Charters—Awards for Excellence in Customer Service scheme (see also Appendix xi, Customer Charter Status and Customer Feedback Handling Report, page 227).

The awards were established as an incentive for agencies to improve the quality and efficiency of service delivery. The scheme was open to Commonwealth agencies with a service charter in place. The objective of the scheme was to recognise and encourage agencies and their staff to provide a high standard of service to the public and encourage agencies to set even higher levels of performance.

Australia Day Honours ListFrank Astone, Area WA, was awarded a Public Service Medal in the Australia Day Honours List for support provided to sight impaired staff to use computer based systems and adaptive software.

Centrelink Australia Day 2000 AwardsCentrelink recognised a wide range of staff from across the network for their exceptional efforts throughout 1999 with Australia Day awards.

Queens Birthday 2000 Honours List—Public Service MedalsTwo of the 15 Public Service Medals in the Queen’s Birthday 2000 Honours List went to Centrelink staff for their outstanding service:

Ross Divett, Deputy CEO, was awarded a medal in honour of his contribution to the creation of Centrelink.

Dieu Hanh Nguyen, Cabramatta NSW, was recognised for her services to occupational psychology.

In addition, Julie McLane, Cluster Training Coordinator, Dubbo NSW, received the Australian Fire Service Medal for dedicated service as a volunteer in the NSW Fire Services.

Workplace Diversity AwardsThe Public Service and Merit Protection Commission and the Institute of Public Administration co-sponsored the 1999 Workplace Diversity Awards in March 2000. Centrelink won the regional award for two of its initiatives:

the establishment of the Palmerston Indigenous Call Centre to assist Indigenous customers; and The Disability Awareness Training package conducted in Victoria to increase customer service

officers’ awareness of disability issues.


Australian Teleservice Association AwardsIn June 2000, Lisa Thomas of Centrelink Call Adelaide won an Australian Teleservice Association Award for Call Centre Champion. Lisa was recognised for her contribution to improving Call Centre services through training.

WA Community Service Industry AwardsBunbury Customer Service Centre received a finalist award at the WA Community Service Industry Awards in November 1999, recognizing Centrelink’s Caterpillar Cottage, a staff child care centre.

Adult Multicultural Education Service AwardsThay Horn, Multicultural Service Officer, Dandenong Customer Service Centre, Victoria, received a Commendation in the Humanitarian section of the Adult Multicultural Education Service Awards, for services to the Cambodian community.

Commonwealth Executives’ Forum Innovations AwardIn the Commonwealth Executives’ Forum Innovations Awards, the Ballarat Marketing Team and Area North Victoria received awards regarding Disability Awareness Training for customer service officers.

Centrelink National Awards The first Centrelink National Awards, presented in September 1999, attracted 45 high quality nominees. The overall winner was the Employment Needs Assessment Trial, a joint Centrelink and FaCS initiative which also won the Customer Service category award. Other category winners were:

Community Partnerships: Innovations in Disability Servicing, Area Pacific Central; Support Services: IT Infrastructure Team, National Support Office; and Change Management; Quality Team, Area Western Australia.


ISO 9002 Standard CertificationRecognition in the form of certification to the ISO 9002 standard has been achieved for the national IT Support Help Desk and for the printing services administered by Output Management. This standard requires excellence in the provision of customer service and a focus on continuous improvement.

International AssistanceChina Visit During November 1999, Brian Pacey, National Manager Detection and Review Team conducted workshops at a training program on Social Security and Social Welfare Management in the People’s Republic of China. The theme was ‘The Implications of Private Sector and Mixed Models for the Finance and Delivery of Social Security’. Centrelink was represented at two workshops on ‘Risk management and compliance in cash based social security programs’and ‘Retirement and labour market cash benefits service delivery’.

Our Centrelink representative, and other selected workshop participants, also met with the Executive of the Chinese Ministry of Labour and Social Security. The Chinese officials were keen for future cooperation with Centrelink on a broader range of issues.

Bulgaria ConsultancyMembers of the Audit, Centrelink Call and Detection and Review Teams undertook an eight month consultancy in Bulgaria with IDP Education. They formed part of a team of eight business consultants drawn from both Centrelink and FaCS to work on a World Bank project. The project involved redesigning business practices and developing application software for the Bulgarian National Social Security Institute.

Centrelink Major ConferencesGenerating Service Delivery Opportunities and Outcomes for Aboriginal Communities ConferenceThe Business Manager of Centrelink’s Indigenous Community Segment Team presented a paper entitled Centrelink’s Commitment to Maximise Service Provision to Aboriginal and Torres Strait Islander Communities—A National Perspective.

International Caring ConferenceCentrelink was a major sponsor of the International Caring Conference held in Brisbane from 29–31 March 2000. The conference brought together international guest speakers to discuss the future of caring. The conference also provided a forum for carers, organisations and departments to discuss emerging issues such as Welfare Reform. It was also an opportunity to showcase Centrelink to key international figures.

International Executive Conference—Focus on Social SecurityOn 9 May 2000, Virginia Mudie, National Manager, Employment Services Community Segment, presented a paper entitled ‘Vision and Strategy of Centrelink—Customer/Client Orientation with Life Events’at the International Executive Conference—Focus on Social Security, held in Potsdam, Germany.

Six Countries Conference on Benefit Fraud in New ZealandTwo officers from the Detection and Review Team attended the Six Countries Conference on Benefit Fraud in New Zealand in September 1999 and presented a paper on ‘Fraud Prevention and Detection—Liaison Between Revenue and Welfare Agencies’.

Six Countries Conference on Internet ApplicationsJane Treadwell, Chief Information Officer, attended the Six Countries Conference on Internet Applications in Baltimore USA, in September 1999 and made a joint presentation, with FaCS, on the Internet and electronic service delivery.

Joint International Federation of Social Workers and Australian Association of Social Workers ConferenceCentrelink was a major sponsor of the joint IFSW/AASW Conference, which was held in Brisbane in September 1999. A number of Centrelink Social Workers presented papers, and the conference included a presentation by Ms Sue Vardon, CEO.

Major SpeechesSue Vardon, CEOThe Importance of Inclusive Service Delivery and Social Supports for Regional Development

‘Beyond our Boundaries’

Regional Multicultural Conference, Port Lincoln South Australia 6 April 2000

Best Practice in Federal Government Service Delivery

Share the Care

2nd International Conference on Caring, Carers Association of Australia, Brisbane 30 March 2000

Address to the National Press Club 2 February 2000

One-To-One: The Art of Personalised Service

The Case Management Society of Australia, 3rd Annual Conference 1 February 2000

Graham Bashford, Deputy CEOThe New Interface between Government and the Community on Social Welfare Delivery: Centrelink, is it working as hoped?

‘Public and Private Sector Governance in Australia: Exploring the changing boundaries’

Inaugural National Institute for Governance Conference Canberrra, April 2000

Jane Treadwell, Chief Information OfficerServing Australia on land and online: Clicks and mortar in the 21st century

World Bank, Poland May 2000

10. Corporate GovernanceGovernance FrameworkCentrelink is located within the Family and Community Services portfolio and operates under the Commonwealth Service Delivery Agency Act 1997(CSDA Act). It is subject to the Financial Management and Accountability Act 1997(the FMA Act) and is staffed under the Public Service Act 1999, which replaced the Public Service Act 1922 on 5 December 1999.

Many of Centrelink’s governance features are innovative. Unlike other government bodies under the FMA Act, Centrelink has a Board with executive powers that is fully accountable to the Minister. It has

an independent Chairman (who is also the Chief Executive under the FMA Act) and the majority of the Board members come from private sector backgrounds.

The governance framework allows the direct participation of at least two of the heads of the purchasing agencies on the Centrelink Board. This ensures a strong stewardship for the purchasing agencies and the Government since Centrelink is responsible for the disbursement of large sums of public monies on behalf of its client agencies.

The Board’s structure and processes and its reporting arrangements facilitate appropriate leadership, management environment, risk management, and monitoring and accountability in the organisation. Ministerial involvement ensures effective accountability with sufficient flexibility to allow greater capacity for innovation and improved customer service.

The Board of ManagementBoard membership as at 30 June 2000

The CSDA Act specifies that the Board should consist of:

the Chairman; the CEO of Centrelink; and at least four other members including at least two who are not principal officers of Commonwealth

authorities.

Board MembersCHAIRMAN

Mr Robin Marrett

Current Positions:

Director, Ruskin Industries Limited.

Previous Positions:

Chairman, Electricity Trust of South Australia; Chairman and Chief Executive of the Economic Development Authority of South Australia; General Manager and Chief Executive of the Electricity Trust of South Australia; and Chairman and Managing Director of Mobil Oil, New Zealand and Hong Kong/China.

Mr Robin Marrett retired from the Chairman’s position in July 2000.

CHIEF EXECUTIVE OFFICER

Ms Sue Vardon

Current Positions:

Adjunct Professor, Institute of Governance, University of Canberra.

Previous Positions:

Chief Executive, Department of Correctional Services, South Australia; Commissioner for Public Employment, Office of the Commissioner for Public Employment, South

Australia; CEO, Office of Public Sector Reform, South Australia; and CEO, Department of Family and Community Services, South Australia.

DIRECTORS

Ms Chris Gillies

Current Positions:

Group Executive—Group Services, St George Bank, Sydney; and Director, CPT Global Limited.

Previous Positions:

Head of Information Technology, Bank of Melbourne; General Manager, Information Technology, Coles Myer Limited; and General Manager, MITS Proprietary Limited, Sydney.

Mr John Thame

Current Positions:

Chairman, Permanent Trustee Company Limited; Member, Council of the National Museum of Australia; Director, Australian Geographic Group; Director, Australian Wheat Board; Director, St George Bank Group; and Director, Reckon Limited.

Previous Positions:

Managing Director, Advance Bank of Australia Limited.

Mr Philip Pearce

Mr Pearce was a member of the Board and was Chair of the Quality Committee until he passed away on 22 October 1999. He was then the:

Chairman, James Boag & Son Limited; National Manager Rothschild & Son Australia Proprietary Limited.

Previous Positions:

Chief Financial Executive, Woolworths Limited; and Director, Accounting and Audit, Arthur Anderson & Company.

NON-VOTING MEMBERS

Dr David Rosalky

Current Positions:

Secretary, Department of Family and Community Services (FaCS).

Previous Positions:

Secretary, Department of Workplace Relations and Small Business; Secretary, Australian Capital Territory Chief Minister’s Department; Under Treasurer, Australian Capital Territory Government; First Assistant Secretary, Commonwealth Department of Finance; Group Chief, Canadian Treasury Board; and Senior Private Secretary to the Prime Minister of Australia.

Dr Peter Shergold AM

Current Positions:

Secretary, Department of Employment, Workplace Relations and Small Business (DEWRSB); and Chairman, Board of the Public Sector Management Course.

Previous Positions:

Public Service Commissioner, Public Service and Merit Protection Commission; CEO, Comcare Australia; CEO, Aboriginal and Torres Strait Islander Commission; and Head, Office of Multicultural Affairs.

NEW CHAIRMAN

Mr John Pascoe AM

Mr John Pascoe AM was appointed as the new Chairman of the Board and non-Executive Director on 26 July 2000.

Current Positions:

Non-Executive Chairman, George Weston Foods; Director, Cambooya Investments Limited; Chairman, Objective Corporation Limited; Chairman, CommSecure Limited; Chairman, Sealcorp Limited; Member of the Board, Royal Alexandra Hospital for Children; Member of the Advisory Council, Australian Graduate School of Management; National Chairman, The Duke of Edinburgh’s Award Scheme in Australia; Member of the Board of Trustees, The Duke of Edinburgh’s International Foundation (UK); and Part-time Board Member, Tourism of New South Wales.

Previous Positions:

CEO, George Weston Foods; Director, Qantas; Chairman, Corporation and Securities Panel; and Partner, Stephen Jacques and Stephen (now Mallesons).

NEW DIRECTOR

Mr Don Fraser

Mr Don Fraser was appointed as a non-executive Director to the Board on 26 July 2000, replacing Mr Philip Pearce.

Current Positions:

Independent Management Consultant and Corporate Adviser.

Previous Positions:

Consultant to Dairy Farm International; Regional Director, Dairy Farm International; Fresh Foods Development Director, Dairy Farm International; Joint Managing Director, Dairy Farm Spain; State General Manager, Woolworths Qld; and Executive Director, Australian Safeway Stores.

Board Appointments and RemunerationThe Chairman and members of the Board (who are not principal officers of Commonwealth agencies) were appointed on a part-time basis by Senator the Hon. Jocelyn Newman, then Minister for Social Security, on 1 September 1997 for three years. All are eligible for re-appointment.

Board members who are principal officers of Commonwealth agencies hold office during the Minister’s pleasure or while they remain the principal officers of the agencies (s. 23(2) and 27 of the CSDA Act). Currently, two principal officers of Commonwealth departments which have a service agreement with Centrelink (FaCS and DEWRSB) sit as non-voting members of the Board.

The Remuneration Tribunal determines the remuneration and allowances paid to Board members.

The CEO is appointed by the Board on a full-time basis. Part 4 of the CSDA Act states that the CEO holds office on terms and conditions, including remuneration and allowances, determined by the Board in writing. The Board is required to obtain advice from the Remuneration Tribunal in relation to the terms and conditions, including remuneration and allowances, on which the CEO holds office.

Disclosure of InterestsBoard members provide statements to the Chairman advising of their directorships of other companies and organisations. The CSDA Act requires that any Director who may have a direct or indirect pecuniary interest in a matter being considered discloses the nature of the interest at a meeting of the Board.

Board OperationsThe Board meets each month to deal with the significant issues relating to Centrelink’s operations. It works from an agenda agreed by the Chairman in conjunction with the CEO who reports to the Board on Centrelink’s financial and operational performance. The Chairman provides a report of each meeting to the Minister for Family and Community Services and to the Minister for Community Services outlining the key issues discussed and any significant decisions taken at the meeting.

Board CommitteesThe Board uses three committees to keep it fully informed about the details of Centrelink’s work. They are:

An Audit Committee to support the Board in ensuring Centrelink operates with proper financial management and internal controls.

An Information and Technology Committee to provide advice and direction to the Board on strategic IT issues, particularly those likely to impact on Centrelink’s ability to deliver government services.

A Quality Committee whose responsibility is to assure the Board that Centrelink is delivering services that will see it remains as the ‘first choice’ for Government and customers and is benchmarked as best practice in service delivery.

The Chairman and all non-Executive Directors participate in at least one committee of the Board. The CEO attends meetings of all committees. The charter of each of these committees is at Appendix ii. The table on the next page provides details of the Board members’ attendance at Board and Committee meetings.

Corporate and Operational PlansCentrelink’s strategic, business and operational planning is reported on in Chapter 1 Introducing Centrelink, page 2. The associated performance reporting and review is covered in Chapter 3 Performance Report, page 17.

Risk Management and Fraud Control

Risk Management in CentrelinkCentrelink has a structured overall risk management regime,which is a unified approach seeking to align language and methodology and make risk integral to all planning, management and reporting. It is also a staged approach to achieve cultural change and avoid being just the imposition of another process.

In 1999–2000 Centrelink built further on its tradition of risk management, including:

an active audit program providing assurance across the business; an enhanced financial statements ‘sign off’ process that includes all managers; a quality assurance framework; program risk assessments; large scale compliance activity; fraud control strategies and action plans; debt prevention strategy; business continuity and disaster recovery plans; project risk assessments; and Internal risk management workshops.

Late in 1999, Centrelink reinforced the use of standard language and methodology in its Risk Management Guidelines for strategic and corporate planning, management and reporting. Risk management will be an integral part of the business improvement planning process for 2000–01.

Last year a ‘vertical slice’of people from across Centrelink prepared its first Strategic Risk Management Plan. This built on work in program risk assessment and has been endorsed by the Board for use in corporate and strategic planning. It contains messages not only about the most important risks to Centrelink’s survival and how they are being controlled, but also about how it views risk.

Table 23: Members’Attendance at Board and Committee Meetings

BOARD MEMBER

BOARD MEETINGS

AUDIT COMMITTEE

QUALITY COMMITTEE

INFORMATION TECHNOLOGY COMMITTEE

(12 meetings) (3 meetings) (1 meeting) (8 meetings)

R. Marrett 11/12

(Board Chairman)

2/3

(C’ttee Chair)

1/1 –

C. Gillies 11/12 – – 8/8

(C’ttee Chair)

P. Pearce* 0/4 – 1/1

(C’ttee Chair)

–

J. Thame 12/12 3/3 – 8/8

S. Vardon 11/12 2/3† 1/1 6/8

D. Rosalky 11/12 3/3 – 6/8

P. Shergold 12/12 – – –

* Mr Pearce passed away on 22 October 1999.

† As CEO, Ms Vardon attends meetings but is not a member of the Audit Committee.

Ethical StandardsThe Public Service Act 1999, which replaced the Public Service Act 1922, came into effect on 5 December 1999 and contains both the APS Values and Code of Conduct. In accordance with the new Act, Agency Heads must promote the APS Values and establish procedures for determining whether an APS employee has breached the Code of Conduct. The APS Values are espoused in Centrelink’s Expectations Statement which sets out standards of behaviour applicable to Centrelink employees. A presentation on the new Act, including the APS Values, was given to Centrelink’s Guiding Coalition. In addition, the values have been promoted in People Matter, a bulletin issued to all Centrelink employees.

The CEO established procedures for determining whether an APS employee has breached the Code of Conduct on 5 December 1999. Due to the short timeframe between enactment and date of effect of the new Act there was insufficient time to finalise consultation with the union and employees on the procedures, prior to them being established. Consultation is currently under way and may result in amendments to the procedures.

When establishing the procedures, Centrelink sought to streamline the process for determining whether a breach had occurred, while maintaining the integrity and natural justice elements of the process. Centrelink aimed, by publicising the code of conduct, to ensure that all employees understood their obligations.

The procedures have been made available to all Centrelink employees via the People Handbook on CentreNet and the Expectations Statement will shortly be added to the handbook.

Since 5 December 1999 a number of employees have been subject to the procedures. The nature of the breaches of the Code of Conduct and the sanctions imposed vary. However, a number of

employees have had their employment terminated in accordance with the procedures for breaches of the code of conduct, including breaches of privacy and misuse of Centrelink facilities, specifically email.

Overall, implementation of the code of conduct and the new procedures has been successful. The code itself is straightforward and the simpler procedures are easy to understand. In order to assess their overall effectiveness, Centrelink will continue to monitor the arrangements over the next 12 months.

(See also Appendix vii, Privacy, page 213, for details of action taken against employees involved in privacy breaches.)

11. Financial StatementsAppendicesAppendix iCommonwealth Legislation Relevant to Centrelink

Enabling LegislationCommonwealth Services Delivery Agency Act 1997

Legislation Conferring Functions on CentrelinkAged Care Act 1997

Child Care Act 1972

Child Care Rebate Act 1993

Child Support (Assessment) Act 1989

Child Support (Registration and Collection) Act 1988

Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997

Defence (Re-establishment) Act 1965

Disability Discrimination Act 1992

Disability Services Act 1986

Employment Services Act 1994

Farm Household Support Act 1992

Gift Duty Assessment Act 1941

Health Insurance Act 1973

Hearing Services Administration Act 1997

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

National Health Act 1953

Re-establishment and Employment Act 1945*

Social Security Act 1991

Social Security (Administration) Act 1999

Social Security (International Agreements) Act 1999

Student Assistance Act 1973

Veterans’ Entitlements Act 1986

ComplianceCrimes Act 1914

Data-matching Program (Assistance and Tax) Act 1990

Financial AccountabilityAuditor General’s Act 1997

Financial Management and Accountability Act 1997

Fringe Benefits Tax Assessment Act 1986

Fringe Benefits Tax Act 1986

Lands Acquisition Act 1989

People ManagementDisability Discrimination Act 1992

Human Rights and Equal Opportunity Commission Act 1986

Long Service Leave (Commonwealth Employees) Act 1976

Maternity Leave (Commonwealth Employees) Act 1973

Occupational Health and Safety (Commonwealth Employment) Act 1991

Public Employment (Consequential and Transition) Amendment Act 1999

Public Service Act 1922†

Public Service Act 1999

Racial Discrimination Act 1975

Safety, Rehabilitation and Compensation Act 1988

Sex Discrimination Act 1984

Superannuation Act 1922



Workplace Relations Act 1996

Administrative LawActs Interpretation Act 1901

Administrative Decisions (Judicial Review) Act 1977

Administrative Appeals Tribunal Act 1975

Federal Court of Australia Act 1976

Freedom of Information Act 1982

Judiciary Act 1903

Ombudsman Act 1976

Privacy Act 1988

GeneralCommonwealth Electoral Act 1918

Electronic Transactions Act 2000‡

* The Re-establishment and Employment Act 1945 was repealed by the Statute Stocktake Act 1999 with effect from 22 September 1999.

† The Public Service Act 1922was repealed with effect from 5 December 1999 as a result of the commencement of the Public Service Act 1999.

‡ The Electronic Transactions Act 2000will establishes the legal validity of electronic transactions where affected legislation specifically permits only paper-based transactions. At present no legislation that significantly impacts on Centrelink’s corporate operations or client services is affected by this Act.

Appendix iiCommittees of the Board

Charter for the Audit Committee of the Board of ManagementBackgroundThe Audit Committee assists the Board of Centrelink with its responsibilities for financial reporting, maintaining an efficient system of internal controls and reviewing specific matters that may arise from the external audit process.

MembershipAs at 30 June 2000 the members of the Audit Committee were:

Mr Robin Marrett (Chairman and Chair of the Committee); Mr John Thame (Director); and Dr David Rosalky (Director)

Ms Sue Vardon attends meetings in her capacity as CEO of Centrelink.

With the appointment of Mr John Pascoe AM, Chairman, and Mr Don Fraser, Non-Executive Director, the membership of the committee was changed at the Board meeting of 8 August 2000 as follows:

Mr John Thame (Chair of the Committee); Mr John Pascoe AM (Chairman of the Board); Mr Don Fraser (Director); and Dr David Rosalky (Director).

Ms Sue Vardon will continue to attend meetings in her capacity as CEO.

MeetingsMeetings shall be held at least quarterly or more frequently if required.

The Chair of the Committee will report to the Board on meetings of the Audit Committee.

Responsibilities The Audit Committee’s specific responsibilities are:

overseeing the agency’s internal audit function and its liaison with external auditors and audit committees of client agencies;

overseeing compliance with statutory and legislative requirements; approving the internal audit work program; reviewing the major findings of internal and external audits, and the adequacy of action taken; monitoring the effectiveness of the internal audit function; and Monitoring Centrelink’s accounting policies and practices against world best practice.

Charter for the Information and Technology CommitteeBackgroundBecause of the criticality of IT to the success of Centrelink, the Board has agreed to the establishment of an I&T Committee under the following charter and noting that the words ‘Information Technology’ for this Committee mean:

The application of computing, telecommunications and multimedia technologies to the collection, storage, processing and dissemination of information.

CharterThe Committee will ensure the Board has a clear understanding of Centrelink’s IT including:

the scope, composition and costs of the current IT environment; the capability of the current IT environment to support the current business of the agency and

issues surrounding this support; the IT strategic plan and its alignment to Centrelink’s business strategy; and The technology trends and opportunities which should be considered in positioning Centrelink for

the future.

MembershipAs at 30 June 2000 the members of the I&T Committee were:

Ms Chris Gillies (Director and Chair of the Committee); Mr John Thame (Director); Dr David Rosalky (Director); and Ms Sue Vardon (CEO).

With the appointment of Mr John Pascoe AM, Chairman, and Mr Don Fraser, Non Executive Director, the membership of the committee was changed at the Board meeting of 8 August 2000 as follows:

Ms Chris Gillies (Director and Chair of the Committee); Mr John Thame (Director); Mr John Pascoe AM (Chairman of the Board); Dr David Rosalky (Director); and Ms Sue Vardon (CEO).

MeetingsThe Committee meets each month.

ResponsibilitiesThe I&T Committee’s specific responsibilities are to provide timely advice and direction to the Board in the following areas:

current and strategic IT issues and their potential impact on the future success of Centrelink; the future direction and leadership of IT specifically, the why, what, when and how of outsourcing; the capability of the current IT organisation to deal with the rate of change required to achieve

Centrelink’s vision and objectives;

as a reference point for Centrelink’s IT processes; and As the ‘conscience’ for IT in Centrelink.

Charter for the Quality Committee of the Board of ManagementBackgroundTo assist the Board to fulfil its responsibilities for ensuring that Centrelink’s functions are properly, efficiently and effectively performed, the Quality Committee has set the following objectives for its work:

establish a framework that supports the achievement of quality outcomes; ensure that there are appropriate ways of measuring quality outcomes; and Report to the Board on the achievement of quality outcomes.

Achievement of OutcomesTo meet the above objectives, the Committee will focus on a number of key aspects of Centrelink’s operations, including:

people management; communication and marketing; strategic thinking; customer service; and Performance and business assurance.

Focus of the Committee’s Review Work On behalf of the Board, the Committee will maintain a continuing review and overseeing role across several major strategic functions and activities, including:

Centrelink’s marketing operations; business and strategic planning; customer service and performance measurement; business and quality assurance; and People capabilities.

The Committee will develop a workplan to ensure the objectives are met.

Membership of the CommitteeAs at 30 June 2000 the Committee comprised the following members:

Ms Sue Vardon (Chair); and Dr Peter Shergold.

Mr Philip Pearce was previously the Chairman of this Committee until 22 October 1999.

With the appointment of Mr John Pascoe AM, Chairman, and Mr Don Fraser, Non-Executive Director, the membership of the committee was changed at the Board meeting of 8 August 2000 as follows:

Mr Don Fraser (Director and Chair of the Committee); Dr Peter Shergold AM (Director); and Ms Sue Vardon (CEO).

Advisers to the CommitteeCentrelink staff whose work is of key relevance to the Committee’s objectives will be advisers to the Committee and will attend meetings of the Committee.

They include the following General and National Managers:

Service Integration Shop;

Future Service Delivery Project; Performance Assurance and Evaluation; Communication and Marketing; Service Improvement; People Management; and Strategic Services.

In addition, an Area Manager may be invited to attend meetings of the Committee when appropriate.

Where the Committee considers it of benefit, it will engage consultants or external practitioners to provide input about other relevant and successful programs.

MeetingsMeetings of the Committee will be held quarterly or more frequently if required. Reports on the Committee’s work will be provided to each meeting of the Board of Management.

Appendix iiiInternal and External Scrutiny

The Audit Process in 1999–2000The Chief Auditor with Assurance and Assessment staff, augmented by a panel of audit and evaluation firms, continued to assist the Board and Management to discharge their responsibility for controlling Centrelink in a manner that results in the efficient and cost-effective management of risk with proper financial management and internal controls.

The Audit Committee comprises the Chairman and two non-executive Board members and met quarterly during the year. An annual work program was developed on a risk assessment basis in consultation with the Australian National Audit Office and client agencies. It was considered by the Audit Committee and approved by the Board. The Committee monitored closely the progress and conclusions of audit work, responses to all internal and external audit findings, the financial statements process and the control environment. The Committee now considers quarterly reports on the operation of fraud and security controls.

Audits covered all aspects of operations, including information systems, financial operations and systems and performance. Ad hoc audits and special investigations were added to the program as required.

Assurance and Assessment coordinated the development of Centrelink’s first Strategic Risk Management Plan. This built on work in team, function, project and program risk assessment. The plan was endorsed by the Board for use in Centrelink’s corporate and strategic planning.

Major evaluations are managed in parallel with the audit process. Assurance and Assessment also supported team-based evaluations and developed an Evaluation Handbook.

Internal AuditForty eight internal audit reports were issued. A number of other reports were issued by the external auditor (see ANAO below).

There were 143 unresolved findings and recommendations at the end of 1999–2000 and 222 were resolved during the year compared with 147 unresolved findings and 169 resolved in 1998–99. These numbers reflect both the importance of audit in the corporate governance of Centrelink and the very successful model for focusing management attention on resolution of issues identified.

Assurance and Assessment surveys Centrelink managers about their progress in resolving all internal audit findings and external audit recommendations quarterly.These reports are considered at each of the Committee’s meetings with the Chief Auditor’s assessment, highlighting instances where he considered management had not resolved an issue or progress was unsatisfactory and the CEO’s views. In the case of ANAO reports, ANAO officers provided their assessment. The Committee invites relevant managers to present where warranted.

Australian National Audit Office ActivitySignificant external audits conducted by the ANAO that impacted on Centrelink were as follows:

Report No 1, 1999–2000, Performance Audit, Implementing Purchaser/Provider Arrangements between Department of Health and Aged Care and CentrelinkThe objective of the audit was to determine the administrative effectiveness of the implementation of the service delivery arrangements between Centrelink and the Department of Health and Aged Care (Health) by examining project planning for, and management of, the implementation, and the establishment of ongoing purchaser/provider arrangements.

The ANAO concluded that Centrelink and Health had achieved the implementation of aged care service delivery by the amended due date of 1 March 1998, as required by Government. Both Centrelink and Health complied with government policy, and legislative requirements.

Report No 8, 1999–2000, Performance Audit, Managing Data Privacy in CentrelinkThe objective of the audit was to assess the systems put in place to protect data privacy.The audit reviewed the adequacy of the policies, procedures and the administrative framework associated with data privacy and the computer systems that are used to store and disseminate data. The ANAO also examined compliance with legislative requirements.

The ANAO concluded that Centrelink had established key elements of a sound framework to meet the Information Privacy Principles in the Privacy Act 1988 and confidentiality provisions in other legislation. Generally, suitable policies, procedures and systems relevant to privacy issues are also in place. It made recommendations to improve Centrelink’s framework for the management of data privacy.

Centrelink has accepted the findings in the report and is acting on them with a view to making further improvements in the protection of customers’privacy. In particular, Centrelink has introduced a Quality Assurance Framework which promotes and supports risk assessment at the team level and has developed its first Strategic Risk Management Plan which forms the overarching context for the development of individual risk assessments.

Report No 10, 1999–2000, Financial Statements Audit, Control Structures as Part of Financial Statements of Major Commonwealth Agencies for the period ended 30 June 1999The ANAO examined Centrelink’s control structures as part of its financial statements audit.

The ANAO concluded that certain aspects of Centrelink’s information technology control structure and risk management practices could be improved to increase the level of assurance over the accuracy and validity of benefit payments. Significant audit findings were made in the areas of IT controls, the income support system, the Financial Management Information System and risk management. The ANAO acknowledged that considerable work had been undertaken by Centrelink in an effort to resolve all of the above issues.

Report No 20, 1999–2000, Performance Audit, Special BenefitsThe audit examined the extent to which new claims for Special Benefit had been determined in compliance with the Social Security Act 1991, the Guide to the Act and other relevant guidelines, and whether Centrelink and FaCS had appropriate procedures to help ensure such compliance. The audit

also examined whether procedures had been established to ensure that relevant and timely information is available to intending migrants, and newly arrived migrants, concerning their eligibility for Special Benefit.

The ANAO concluded that there was a significant degree of non-compliance of Special Benefit new claim assessment decisions with the Act, the Guide to the Act and other relevant guidelines and that the procedures used to monitor and report the accuracy of assessments of Special Benefit new claims were not sufficiently reliable.

The monetary effect of the incorrect assessments was relatively small. The resulting net overpayment of Special Benefit was estimated to be approximately $1.4 million or 2.3 per cent of total Special Benefit payments during the period covered by the audit. In relation to the provision of information concerning Special Benefit to intending and newly arrived migrants, the ANAO concluded that appropriate action had been taken.

Centrelink agreed with the ANAO findings and has put in place processes and procedures to address the issues. The ANAO considered that the actions initiated and planned by Centrelink will, if implemented effectively, considerably improve the accuracy of the assessments of new claims for Special Benefit.

Report No 21, 1999–2000, Financial Statements Audit, Audits of the Financial Statements of Commonwealth Government Agencies for the period ended 30 June 1999The Financial Statements for the period ended 30 June 1999 were unqualified.

While Centrelink experienced difficulty throughout the financial year reconciling the Financial Management Information System, significant effort was applied to improve controls, and at year-end, to perform the reconciliation. The ANAO considered that Centrelink successfully completed the overall reconciliation within satisfactory materiality parameters.

Report No 43, 1999–2000, Performance Audit, Planning and Monitoring for Cost Effective Service Delivery—Staffing and Funding ArrangementsThe overall objective of the audit was to determine whether Centrelink’s planning, monitoring and costing arrangements provide a sound basis to underpin its delivery of quality, cost-effective customer services.

The ANAO concluded that Centrelink’s strategic and financial planning processes are sound, essentially reflecting good practice. However, it recommended more prescription to Area managers on resource distribution methodologies to ensure an appropriate alignment of staffing resources to meet local service delivery demands and an improved availability of management information at service outlet level. It also recommended an accelerated development of Activity Based Costing methodologies to improve capacity to report to Government on output costs and further improve cost effectiveness.

Centrelink agreed with the ANAO’s findings and recommendations. While Centrelink accepted the need to continue to provide guidelines and to maximise national consistency across Australia, it saw final resource allocation decisions continuing to be based on local conditions in Areas. Also, Centrelink took careful note of the specific criticisms of its initial approach to Activity Based Costing and it has made considerable progress in addressing these issues since the time of the audit.

Report No 52, 1999–2000, Financial Statements Audit, Control Structures as part of the Audits of Financial Statements of Major Commonwealth Agencies for the period ended 30 June 2000Generally the ANAO acknowledged progress and focused on the need for further risk management.

The ANAO concluded that the risk management framework should be strengthened to include an overarching assessment of the adequacy of existing mechanisms to maintain the risk of incorrect payment at an acceptable level and a high level risk management strategy focusing on the critical

elements of Centrelink’s business. It also raised a number of remaining unresolved issues relating to information technology systems and controls, the IT general control environment, income support systems and compliance activity.

OmbudsmanA valuable measure of the satisfaction of Centrelink’s customers with the service they receive is the number and type of complaints they make to the Ombudsman’s Office. Customers’concerns embrace a wide range of matters, including their perception of the fairness of legislation governing their benefits and disagreement with decisions which affect them. Typically there have been increases in complaints when rules change or new pay arrangements are put in place.Fortunately only little more than half of the total contacts with the Ombudsman’s Office by Centrelink customers are related to perceived faults with how Centrelink delivers services to them.

The remainder are related to:

disputed decisions; Centrelink administrative policies and practices; and Legislative provisions.

For the 2885 issues investigated, the Ombudsman concluded that there was:

an arguable defect in Centrelink’s administration in 39 per cent of instances; no apparent defect in 33 per cent of instances; and No conclusion to be drawn in the remaining 28 per cent.

It is particularly pleasing that the number of all customer contacts with the Ombudsman’s Office has significantly decreased from 11 599 in the previous reporting year to 9674 in the year just concluded, a decrease of 16.1 per cent.

Most complaints are quickly resolved at local level while a much smaller number which involve more general issues of procedure and delivery are referred to the CEO. Increasingly there is close cooperation between the Ombudsman’s Office and Centrelink’s National Community Segments, with regular contact between officers of both agencies enabling a constructive exchange of information with the aim of resolving any problems relating to systemic matters. The emergence of a monitoring role for the Ombudsman’s Office in these matters is warmly welcomed.

The past year has also seen quarterly reporting by the Office of complaints received from Centrelink’s customers. This has proved very valuable in tracking those payments which attract the greater number of complaints and in identifying any procedural matters which are affecting customer satisfaction. Centrelink, together with FaCS, provides a briefing to the Minister in relation to these quarterly Ombudsman releases.

Centrelink has also been working closely with the Ombudsman’s Office to improve its customer feedback mechanisms.

As indicated in its report, Balancing the Risks, issued in 1999, the Ombudsman’s Office is concerned that customers of Commonwealth agencies have ready access to information which affects their lives. The Ombudsman’s Office indicated then that the ‘life events’ model of customer service delivery being developed by Centrelink promised much greater effectiveness in this regard. The Ombudsman’s Office continues to monitor Centrelink’s steady progress in achieving this goal.

AppealsCentrelink provides advocacy services and manages appeals to external tribunals on behalf of FaCS and AFFA. Details of appeals to the Social Security Appeals Tribunal, the Administrative Appeals Tribunal and the Federal Court can be found in the FaCS and AFFA annual reports.

Appendix IVCentrelink Employee OverviewThe following tables show employee numbers by various employment categories as at 30 June 2000. Further information on people management initiatives in general can be found in Chapter 6, Our People, and page69.

Table 24: Centrelink Staffing

ALL CENTRELINK

Classification TOTAL Female Male FT PT Ongoing Non-ongoing

CEO 1 1 0 1 0 1 0

Centrelink SES 59 24 35 58 1 59 0

Centrelink 4 971 422 549 957 14 967 4

Centrelink 3 4 535 2 581 1 954 4 219 316 4 494 41

Centrelink 2 14 807 10 395 4 412 12 149 2 658 13 440 1 367

Centrelink 1 604 421 183 486 118 221 383

Centrelink Professional 1

416 350 66 291 125 321 95


288 221 67 237 51 281 7

Centrelink IT 232 57 175 225 7 230 2

Centrelink IT Manager

230 51 179 221 9 229 1

Centrelink IT Technical

4 2 2 4 0 4 0

Centrelink Public Affairs 1

8 3 5 8 0 8 0


7 5 2 5 2 6 1


2 0 2 2 0 2 0

Trainees/Cadets 14 10 4 14 0 9 5

Total 22 178 14 543 7 636 18 877 3 301 20 272 1 906

ALL CENTRELINK


NATIONAL SUPPORT OFFICE


Centrelink SES 43 18 25 42 1 43 0

Centrelink 4 554 259 295 544 10 552 2

Centrelink 3 892 470 422 852 40 867 25

Centrelink 2 384 256 128 359 25 331 53

Centrelink 1 76 56 20 72 4 12 64


0 0 0 0 0 0 0


4 3 1 4 0 4 0

Centrelink IT 228 57 171 221 7 226 2


230 51 179 221 9 229 1


4 2 2 4 0 4 0


8 3 5 8 0 8 0


7 5 2 5 2 6 1


2 0 2 2 0 2 0


Total 2 437 1 184 1 253 2 339 98 2 289 148

CALL CENTRE NETWORK


Centrelink SES 1 1 0 1 0 1 0

ALL CENTRELINK


Centrelink 4 46 15 31 46 0 46 0

Centrelink 3 435 292 143 415 20 435 0

Centrelink 2 3 670 2 773 897 2 835 835 3 011 659

Centrelink 1 28 21 7 22 6 4 24


0 0 0 0 0 0 0


18 15 3 16 2 17 1

Centrelink IT 0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


Total 4 198 3 117 1 081 3 335 863 3 514 684

AREA HUNTER NEW SOUTH WALES



Centrelink 4 26 11 15 26 0 26 0

Centrelink 3 221 130 91 182 39 220 1

AREA HUNTER NEW SOUTH WALES


Centrelink 2 668 469 199 522 146 644 24

Centrelink 1 16 13 3 12 4 4 12


20 18 2 10 10 16 4


15 9 6 13 2 15 0



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 967 650 317 766 201 926 41

AREA EAST COAST NEW SOUTH WALES



Centrelink 4 27 8 19 27 0 27 0

Centrelink 3 230 117 113 216 14 229 1

Centrelink 2 815 515 300 668 147 760 55

Centrelink 1 44 22 22 38 6 40 4

AREA EAST COAST NEW SOUTH WALES



30 26 4 20 10 23 7


16 11 5 14 2 16 0



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 1 163 700 463 984 179 1 096 67

AREA WEST NEW SOUTH WALES



Centrelink 4 21 8 13 21 0 21 0

Centrelink 3 127 66 61 119 8 126 1

Centrelink 2 522 383 139 435 87 505 17

Centrelink 1 18 13 5 14 4 11 7


23 19 4 19 4 18 5

AREA WEST NEW SOUTH WALES



14 11 3 11 3 14 0



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 726 500 226 620 106 696 30

AREA SOUTH WEST NEW SOUTH WALES



Centrelink 4 19 7 12 19 0 19 0

Centrelink 3 158 99 59 148 10 157 1

Centrelink 2 495 374 121 426 69 491 4

Centrelink 1 7 6 1 6 1 7 0


19 16 3 15 4 15 4


17 13 4 14 3 16 1

AREA SOUTH WEST NEW SOUTH WALES




0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

2 1 1 2 0 2 0

Total 718 516 202 631 87 708 10

AREA SOUTH METROPOLITAN NEW SOUTH WALES



Centrelink 4 13 4 9 13 0 13 0

Centrelink 3 148 87 61 141 7 147 1

Centrelink 2 552 396 156 476 76 488 64

Centrelink 1 14 5 9 13 1 9 5


24 19 5 18 6 18 6


14 14 0 11 3 14 0



AREA SOUTH METROPOLITAN NEW SOUTH WALES


Manager


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 766 525 241 673 93 690 76

AREA PACIFIC CENTRAL



Centrelink 4 31 14 17 31 0 31 0

Centrelink 3 286 178 108 268 18 283 3

Centrelink 2 935 648 287 786 149 869 66

Centrelink 1 31 22 9 24 7 12 19


35 32 3 30 5 27 8


21 19 2 17 4 20 1



0 0 0 0 0 0 0


AREA PACIFIC CENTRAL


Technical


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 1 340 913 427 1 157 183 1 243 97

AREA BRISBANE QUEENSLAND



Centrelink 4 28 12 16 28 0 28 0

Centrelink 3 258 142 116 239 19 258 0

Centrelink 2 969 642 327 845 124 914 55

Centrelink 1 82 65 17 71 11 19 63


41 31 10 26 15 33 8


22 20 2 18 4 22 0



0 0 0 0 0 0 0


0 0 0 0 0 0 0

Centrelink 0 0 0 0 0 0 0

AREA BRISBANE QUEENSLAND


Public Affairs 1


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 1 401 912 489 1 228 173 1 275 126

AREA CENTRAL & NORTHERN QUEENSLAND



Centrelink 4 24 15 9 23 1 22 2

Centrelink 3 180 117 63 171 9 178 2

Centrelink 2 498 371 127 442 56 435 63

Centrelink 1 20 16 4 16 4 6 14


27 23 4 19 8 19 8


13 11 2 11 2 12 1



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


AREA CENTRAL & NORTHERN QUEENSLAND


Public Affairs 2


0 0 0 0 0 0 0

Trainees/Cadets

4 2 2 4 0 1 3

Total 767 556 211 687 80 674 93

AREA NORTH CENTRAL VICTORIA



Centrelink 4 25 8 17 25 0 25 0

Centrelink 3 249 153 96 225 24 249 0

Centrelink 2 910 577 333 731 179 873 37

Centrelink 1 35 22 13 28 7 24 11


30 26 4 19 11 23 7


24 19 5 17 7 24 0



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


AREA NORTH CENTRAL VICTORIA


Public Affairs 3

Trainees/Cadets

0 0 0 0 0 0 0

Total 1 275 806 469 1047 228 1 220 55

AREA SOUTH EAST VICTORIA



Centrelink 4 26 16 10 26 0 26 0

Centrelink 3 239 127 112 229 10 237 2

Centrelink 2 831 546 285 706 125 801 30

Centrelink 1 47 34 13 42 5 15 32


30 26 4 19 11 18 12


19 15 4 15 4 18 1



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/ 0 0 0 0 0 0 0

AREA SOUTH EAST VICTORIA


Cadets

Total 1 194 765 429 1 039 155 1 117 77

AREA WEST VICTORIA



Centrelink 4 24 6 18 24 0 24 0

Centrelink 3 254 119 135 241 13 254 0

Centrelink 2 802 519 283 681 121 745 57

Centrelink 1 33 23 10 29 4 13 20


37 29 8 26 11 31 6


20 13 7 17 3 19 1



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 1 172 709 463 1 020 152 1 088 84

AREA WEST AUSTRALIA



Centrelink 4 36 14 22 34 2 36 0

Centrelink 3 297 181 116 265 32 295 2

Centrelink 2 1085 799 286 888 197 990 95

Centrelink 1 49 32 17 17 32 11 38


40 33 7 23 17 31 9


28 17 11 24 4 28 0



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 1 536 1 076 460 1 252 284 1 392 144

AREA WEST AUSTRALIA



AREA WEST AUSTRALIA


Centrelink 4 36 14 22 34 2 36 0

Centrelink 3 297 181 116 265 32 295 2

Centrelink 2 1085 799 286 888 197 990 95

Centrelink 1 49 32 17 17 32 11 38


40 33 7 23 17 31 9


28 17 11 24 4 28 0



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 1 536 1 076 460 1 252 284 1 392 144

AREA SOUTH AUSTRALIA



Centrelink 4 40 13 27 40 0 40 0

Centrelink 3 309 166 143 285 24 309 0

AREA SOUTH AUSTRALIA


Centrelink 2 967 651 316 755 212 929 38

Centrelink 1 34 18 16 25 9 19 15


36 31 5 27 9 31 5


29 21 8 23 6 28 1



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 1 416 901 515 1 156 260 1 357 59

AREA NORTH AUSTRALIA



Centrelink 4 12 7 5 12 0 12 0

Centrelink 3 81 50 31 77 4 80 1

Centrelink 2 232 181 51 218 14 217 15

Centrelink 1 24 20 4 23 1 6 18

AREA NORTH AUSTRALIA



8 8 0 8 0 5 3


6 5 1 6 0 6 0



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

0 0 0 0 0 0 0

Total 366 273 93 347 19 327 39

AREA TASMANIA



Centrelink 4 19 5 14 18 1 19 0

Centrelink 3 171 87 84 146 25 170 1

Centrelink 2 472 295 177 376 96 437 35

Centrelink 1 46 33 13 34 12 9 37


16 13 3 12 4 13 3

AREA TASMANIA



8 5 3 6 2 8 0



0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0


0 0 0 0 0 0 0

Trainees/Cadets

1 1 0 1 0 1 0

Total 735 439 296 595 140 659 76

Employee numbers by various employment categories as at 30 June 2000.

Key to Centrelink staffing tables: FT—Full-time, PT—Part-time

Table 25: Senior Executive Service (SES) Information

SES STAFFING LEVELS AT 30 JUNE 2000

Total Female Male Full Time Part Time

SES Band 3 2 0 2 2 0

SES Band 2 6 2 4 6 0

SES Band 1 51 22 29 50 1

All SES Classifications

59 24 35 58 1

(See Note 14, Financial Statements, page 165.)

INTER-AGENCY MOBILITY

Transfer from Other Department/Agency

Commenced work in the APS

SES Band 3 1 0

SES Band 2 0 0

SES Band 1 1 0

All SES Classifications 2 0

INTER-AGENCY MOBILITY

Within National Support Office

National Support Office to Area Management

Area Management to National Support Office

Within Area Management

0* 0 0 0

* No formal transfers occurred however a restructure of National Support Office in mid 2000 resulted in changes to some team names and functions.

GAINS AND LOSSES BETWEEN 1 JULY 1999 AND 30 JUNE 2000

Appointed to SES SES Band 1 x 1

Transfer from other Departments/Agencies SES Band 1 x 1

SES Band 3 x 1

Temporary transfer from other Departments/Agencies

Nil

Transfer to different Departments/Agencies Nil

Retired or resigned SES Band 1 x 1

Acting in SES for 3 months or more SES Band 1 x 4

Table 26: Equal Employment Opportunity*Key to Centrelink Equal Employment Opportunity (EEO) tables: EEO—Equal Employment Opportunity; ATSI—Aboriginal and Torres Strait Islander people; PWD—People with a disability; NESB1—Australians of (or from) diverse cultural and linguistic backgrounds, first generation; NESB2—Australians of (or from) diverse cultural and linguistic backgrounds, second generation.

Note: Table contains full-time and part-time ongoing staff.

APPOINTMENT TO CENTRELINK BY EEO CATEGORY 1999–2000

Total Female ATSI PWD NESB1 NESB2

Area Hunter NSW

3 3 1 0 0 0

Area East Coast NSW

8 6 0 0 0 0

Area West NSW

13 12 0 0 0 0

Area South West NSW

43 35 6 1 0 1

Area South Metropolitan NSW

13 10 0 0 2 0

Area Pacific Central NSW and QLD

18 15 1 0 0 1

Area Brisbane QLD

30 22 1 0 0 6

Area Central and Northern QLD

25 23 2 0 0 2

Area South-East VIC

48 32 1 2 1 3

Area North-Central VIC

14 9 2 0 1 1

Area West VIC 27 20 0 0 0 2

Area West Australia

24 19 0 0 0 1

Area South Australia

5 2 0 0 0 0

Area Tasmania 10 9 0 0 1 1

Area Northern Australia

22 21 2 0 0 1

Call Centre Network

807 634 10 6 1 24

APPOINTMENT TO CENTRELINK BY EEO CATEGORY 1999–2000

Total Female ATSI PWD NESB1 NESB2

National Support Office

234 132 4 8 7 15

Total Appointments 1999–2000

1 344 1 004 30 17 13 58

EEO groups as % total engagements (ongoing employees)

74.70 2.23 1.26 0.97 4.32

Ongoing employees at 30 June 2000

20 272 13 050 751 1 100 987 2 533

EEO groups as % total ongoing employees

64.37 3.70 5.43 4.87 12.50

* Now referred to as Workplace Diversity.

EEO GROUPS AS % OF CLASSIFICATION GROUP

Classification Group

Salary Range

(%)

Female

(%)

ATSI

(%)

PWD

(%)

NESB1

(%)

NESB2

(%)

Centrelink SES More than $76 044

40.68 0.00 6.78 3.45 8.62

Centrelink 4 $56 283–$76 043

43.46 0.41 4.53 2.72 10.38

Centrelink 3 $40 706–$51 902

56.91 3.35 6.06 3.44 13.25

Centrelink 2 $32 745–$40 705

70.20 4.19 4.76 4.48 11.50

Centrelink 1 $15 245–$31 881

69.70 2.48 8.94 3.26 8.62

Centrelink Professional

$30 657–$76 043

81.11 0.28 3.98 5.59 16.33

Centrelink IT $35 342– 23.61 0.00 3.00 22.22 15.78

EEO GROUPS AS % OF CLASSIFICATION GROUP

Classification Group

Salary Range

(%)

Female

(%)

ATSI

(%)

PWD

(%)

NESB1

(%)

NESB2

(%)

$76 043

Centrelink Public Affairs

$37 655–$77 340

47.06 0.00 11.76 0.00 13.33

Trainees/Cadets $8 751–$31 881

71.43 35.71 0.00 0.00 15.38

All Classifications 65.57 3.60 5.08 4.60 11.85

Figure 16: Staffing Profile as at 30 June 2000

Appendix vConsultancy ServicesPolicy for Selection and Engagement of ConsultantsCentrelink’s policy on the selection and engagement of consultants is based on the relevant Commonwealth Procurement Guidelines/Circulars and Chief Executive Instructions.

It is Centrelink’s policy to restrict the use of consultants to circumstances where the required expertise or services are unavailable when required from within the Australian Public Service, and the task is short-term and discrete. In general, Centrelink’s requirements for consultancy services can be identified against a number of broad categories which may include market research, statistical information gathering and analysis, advertising and promotional campaigns, business analysis and review, training and service delivery advice.

Selection ProceduresThe method of selection of consultants is based on principles consistent with the procurement methodology adopted for obtaining other goods and services and is predicated on the principles of value for money and open and effective competition. Factors taken into account in the selection of consultants include the extent of competition available in the market place, the complexity and the estimated cost of the proposed consultancy, the available timeframe and the cost of approaching the market and evaluating offers.

Centrelink considers that this is best achieved through a combination of public and restricted tendering processes. Due to the nature of consultancy services required, there are some instances where consultants may be engaged without a competitive selection process but this is usually limited to instances where similar services have been provided to other Commonwealth agencies or where the consultant may have provided the services previously and has a comprehensive understanding of the objectives of the program.

In instances where a proposal has been made to confine an inquiry to a particular consultant, the delegate must be satisfied that the method of procurement selected has been fully justified in accordance with the relevant requirements under both Commonwealth and Centrelink procurement policies, guidelines, Chief Executive Instructions and protocols.

Explanatory NotesThe following legend serves as an explanatory guide to the data contained in Table 27:

‘How Engaged’ Codes

P/T = Public Tender

R/T = Restricted Tender

Justification for Codes

A = Skills currently unavailable within the Agency

B = Requirement for collection of quantitative statistical information

C = Requirement for independent or impartial research/assessment by an independent organisation

D = Requirement for specialist/professional expertise

SummaryThe total number of consultancy services contracts let during 1999–2000 was 132. Of these, 76 were consultancies where the total contract value was $10 000 or greater and these are individually shown in the table below. These consultancies are divided into two broad categories: General and Human Resources.

An additional three market research consultancies with a value of greater than $1500 but less than $10 000 have been included here, as required under section 311A of the Commonwealth Electoral Act 1918 (see also I, page 209). The total dollar value of the three consultancies is $25 782.

The total dollar value of consultancy contracts greater than $10 000 let during the year is $5.03 million.

The total amount paid on all consultancy services contracts in 1999–2000 was $9.31 million. This figure includes amounts for consultancy service contracts let in the preceding financial years that were still active in 1999–2000.

Table 27: Consultancy services contracts let to the value of $10 000 or more in both General and Human Resource categories during the year 1 July 1999 to 30 June 2000

CONSULTANCY SERVICE

Consultant Consultancy Service Provided

How Engaged

Justification Code

General Consultancies (Total Value)

Human Resources Consultancies (Total Value)

Allstaff Australia Pty Ltd

Preparation of communication strategies and promotion of Centrelink’s role in the wider community

R/T D $101 088.00

Arplan Assessment and evaluation of bids for tender process

R/T A, D $75 600.00

CONSULTANCY SERVICE


How Engaged

Justification Code



Box Hill Institute TAFE

Workplace assessment

R/T D $33 643.00

Brightstar Information Technology Group Pty Ltd

SAP Data extract reporting

R/T A Standing Offer

Brightstar Information Technology Group Pty Ltd

SAP consulting in relation to service based costing project

R/T D $100 000.00

Computer Corporation of America (CCA)

Model 204 training for National Support Office staff

R/T A,D Standing Offer

Deloitte Consulting Pty Ltd

Advice on IT infrastructure outsourcing

P/T C, D $478 000.00


Provision of cost per service for customer using activity based costing, price benchmarking and fixed and variable funding

P/T A $736 000.00


Consultancy for an improved child care provider payment plan

R/T D $69 000.00

Energy Efficient Strategies Pty Ltd

Audit of Telstra lines

R/T D $25 600.00

Enterprise Marketing &

Ascertain from business people

R/T A,C $240 000.00

CONSULTANCY SERVICE


How Engaged

Justification Code



Research the time taken to complete government forms

Eureka Research

Analysis of questionnaire forms

R/T A,C $14 088.00

Interactive Media Pty Ltd

Design of HTML prototype for balanced scorecard

R/T A $10 000.00

IPMS Pty Ltd Review of National Support Office accommodation arrangements

R/T A $21 000.00

Jonson Business Consulting Services

Development of an integrated framework for Stakeholder Research

P/T A $ 200 000.00

Mark Dignam Research to review the operations of Centrelink business TV unit

R/T A,C $20 000.00

Market Access Communication needs and preferences for youth and students customers

R/T A,C $40 000.00

Market Access* Evaluate Telstra multimedia pay phone trial

R/T A,C $59 000.00

Market Attitude Market test the R/T A,C $40 000.00

CONSULTANCY SERVICE


How Engaged

Justification Code



Research revised Youth Allowance claim package

Market Solutions

To undertake survey gauging service, consistency of advice and office presentation in two areas

R/T A,C $15 000.00

Market Solutions

Assistance for Isolated Children survey

R/T A,C $20 529.00

Matra Pty Ltd Advice in relation to assessing the value for money aspects of mainframe software

R/T D $30 000.00

Matra Pty Ltd t/a the Tennyson Group

Review of software contracts

R/T D $33 000.00

Meta Group Asia Pacific Ltd

Enterprise architecture strategies

R/T D $215 000.00

Millar Watson Project management architectural and construction

R/T D $20 700.00

Millar Watson Project management architectural and construction

R/T D $24 400.00

CONSULTANCY SERVICE


How Engaged

Justification Code



Millward Brown Australia

Validation of ‘life events’ research with Centrelink customers and the wider community

R/T D $45 668.00


Qualitative research for customer charter annual review

P/T A, B, C $28 250.00


National customer satisfaction research for May 2000

P/T A, B, C $80 885.00


Service delivery model

R/T A,C $49 465.00

Myriad Consultancy

Market research on customer service in rural and remote areas

R/T C $9 700.00

New Focus Marketing of Centrelink’s payment deduction service, Centrepay

R/T A,C $147 000.00

Newton Wayman Chong

Evaluate customer response to intended refinements and simplification of data on statement style

R/T A $14 948.00

CONSULTANCY SERVICE


How Engaged

Justification Code



letters

Newton Wayman Chong

Statement style letters follow-up

R/T A $22 000.00

Newton Wayman Chong

ABSTUDY survey

R/T A,C $65 222.00

Novell Consulting

Standing offer for specialist IT services

R/T D $170 000.00

OPTUS Administration

Training solution for the Call Centre network

P/T A Standing Offer

Orima Research Information needs of Disability and Carer customers

R/T A,C $37 800.00

Orima Research Centrelink Call Centre survey

R/T A,C $32 350.00

Orima Research Market test Family Allowancev 18–24 brochure

R/T A $19 780.00

Orima Research Pre-test the updated booklet What to do when someone dies

R/T A,C $14 970.00

Orima Research Pre-test Unzipped magazine

R/T A,C $19 200.00

Orima Research Pre-test Disability Connections

R/T A $7 682.00

CONSULTANCY SERVICE


How Engaged

Justification Code



Orima Research*

Market test government’s savings bonus initiative

R/T A,C $53 385.00

Performance Mentors

Mentoring program

R/T D $21 000.00

Pricewaterhouse Coopers

Crisis simulation exercise and crisis plans

R/T A $110 536.00

Pricewaterhouse Coopers

Taxation advice, project management assistance

R/T A,D $150 000.00

Professional Impressions Pty Ltd

Benchmarking tours/workshops

R/T D $12 900.00

PSI Consulting Replacement Medical Assessment panel contracts

P/T D $27 800.00

PSI Consulting† Rent Assistance review

R/T A $23 164.00

PSI Consulting† Rent Assistance review

R/T A $27 000.00

PSR Software Pty Ltd

Business analysis of technical specifications for performance data management system


Qantas Airways Ltd

Performance management and coaching seminars

P/T D $15 000.00

CONSULTANCY SERVICE


How Engaged

Justification Code



Quadrant Research

Pre-test Rural News

R/T A,C $11 900.00

Quadrant Research

Market test Employment Update—1999–2000 editions

R/T A,C $44 100.00

Quadrant Research

Pre test Student Update

R/T A,C $8 400.00

Quasar Professionals

Recruitment service for I&T personnel

R/T A, D $150 000.00

RAP Activities Pty Ltd

Provision of training materials for GST and train the trainer

R/T A,D $149 000.00

Research Advantage

Evaluate statement of circumstances

R/T A,C $26 632.00

Research Advantage

Concept testing new Families imagery

R/T A,C $40 396.00

Roger Monk Provision of media liaison services

R/T A,D $52 000.00

Rogers & Jefferis

Provision of structural engineering services


Ross Begbie Results through people training

R/T D $29 780.70

Roy Morgan Market test Client Magazine

R/T A,C $15 000.00

Roy Morgan Market test the R/T A $11 200.00

CONSULTANCY SERVICE


How Engaged

Justification Code



casual income record—employer verified form

Russell Reynolds

Recruitment of Chairman and board member

R/T A , C $75 000.00

Seranova Develop new prototype for balanced scorecard

R/T C , D $16 000.00

SMS Consulting Group

SAP Data extract reporting


SMS Consultancy Pty Ltd

Risk management plan for performance data management system

R/T D $45 000.00

SMS Consultancy Pty Ltd

Project management and business analysis in relation to performance data management system

R/T D $97 500.00

Sweeney Research

Market test tax reform measures

P/T A,C,D $58 750.00

Sweeney Research

Treating doctor’s report review

R/T A,C $13 850.00

Synerlogic Microsystems

Specialist IT services

R/T D $200 000.00

CONSULTANCY SERVICE


How Engaged

Justification Code



Pty Ltd

Team Systems Pty Ltd

Design and facilitate a team building process to accelerate the process of team formation across the recently expanded strategic services team

R/T D $10 875.00

The Customer Connection

Customer service skills

R/T A,D $25 000.00

The Riches Group

Leadership training

R/T A,D $10 000.00

Upton Martin Consulting

Preparation and facilitation of training courses as requested

P/T A Standing Offer

Yann Campbell Hoare Wheeler (now Millward Brown Australia)

National customer satisfaction research for November ’99

P/T A, B, C $78 600.00

Yann Campbell Hoare Wheeler

Implementation of new Rural Call Centre

R/T A $56 660.00

* Funded by Electronic Service Delivery Team, DEWRSB and HIC.

* Financial responsibility shared between Centrelink $20 648.97, ATO $19 004.98, DVA $13 731.95.

† 50% of the consultancy funded by Department of Family and Community Services.

Appendix viAdvertising and Direct MailThis appendix outlines expenditure on payment to the value of $1500 or more made to advertising agencies, direct mail organisations and media advertising organisations, in accordance with Section 311A of the Commonwealth Electoral Act 1918.

Any payments of $1500 and over made to market research organisations and polling organisations are listed under Appendix v, Consultancy Services, page 201, in addition to reporting of other consultancies.

Table 28: Advertising and Direct Mail Expenditure

PAYEE AMOUNT PURPOSE

AIS Media $50 290 Advertising for Family Allowance for 16 to 24 year olds

AIS Media $8 887 Ethnic press advertising for Welcome to Centrelink

AIS Media $14 950 Advertising for Pension Bonus Scheme

AIS Media $7 290 Advertising for Rural Call Centre Maryborough

AIS Media $2 351 Advertising for Multimedia Payphones

AIS Media $1 957 Advertising for ABSTUDY

AIS Media $2 863 Advertising for Victorian Seniors Health Card

AIS Media $11 129 Advertising for Unzipped magazine

AIS Media $9 815 Advertising for Rental Assistance

Payments of $1500 and over to media advertising organisations—master advertising agencies that have placed Centrelink advertising in the media. This covers both campaign and non-campaign advertising.


National Indigenous

Radio Service$90 000 Radio programs targetting Indigenous

people

Radio for the Print Handicapped $40 411 General information for the print

handicapped

Special Broadcasting Service $253 990 Provision of multicultural broadcasting services


Independent & General $76 520 Dissemination of Centrelink information to the ethnic community

Payments of $1500 and over to advertising agencies and other agencies that have developed advertising campaigns.Payments of $1500 and over to direct mail organizations.


PMP Communications $875 098 Preparation and mailout of agency material

PMP Communications

(as sub-contractor to POL Corporation)

$2 282 163 Preparation and mailout of Age Pension News

Toll Logistics $456 956 Preparation and mailout of agency material

Chandler Direct Mail $13 595 Preparation and mailout of agency material

National Mailing and Marketing $43 330 Preparation and mailout of agency material

Canberra Mailing $38 277 Preparation and mailout of agency material

Salmat Mailing Services $70 890 Preparation and mailout of agency material

J S McMillan $23 706 Preparation and mailout of agency material

Bounty Services $3 677 Preparation and mailout of agency material

Appendix viiPrivacy

Liaison with Privacy CommissionerCentrelink has informal administrative arrangements in place with the Privacy Commissioner’s Office which enable Centrelink to deal with complaints as efficiently as possible. These arrangements resulted in the Privacy Commissioner’s Office deciding not to investigate six cases after making preliminary inquiries under section 42 of the Privacy Act 1988. In addition, other cases were handled more effectively.

Complaints Referred by the Privacy CommissionerThe Privacy Commissioner formally referred nine cases to Centrelink during 1999–2000 and after receiving reports from Centrelink has finalised six cases under paragraphs 41(1)(a) or 41(2)(a) of the Privacy Act 1988. Paragraph 41(1)(a) involves a finding that there has been no interference with privacy while a dismissal of a complaint under paragraph 41(2)(a) is based on a finding that Centrelink adequately dealt with the complaint.

Reports and Determinations by the Privacy CommissionerThe Privacy Commissioner may issue a report or declaration under sections 30 and 52 of the Privacy Act 1988 regarding Centrelink. These statutory reports and determinations enable the Privacy Commissioner to report directly to a Minister and to make a decision either to dismiss or to substantiate a complaint. During 1999–2000, the Privacy Commissioner did not issue any reports or determinations under the above sections.

Under section 73 of the Privacy Act 1988, an agency may apply in accordance with the regulations for a public interest determination under section 72 by the Privacy Commissioner about an act or practice that breaches an Information Privacy Principle. Centrelink has not applied under section 73 to the PrivacyCommissioner for any such determination.

Privacy Incident StatisticsCentrelink’s policy is to investigate all privacy incidents which include mailout errors, alleged privacy breaches from the public and staff, auditing of computer accesses to detect unauthorised accesses and any privacy incidents at Customer Service Centres and Call Centres. In 1999–2000 Centrelink completed 1394 privacy incident investigations. These investigations resulted in only 33 per cent of incidents being substantiated as a breach of privacy or confidentiality.

Table 29: Investigation Outcomes 1999–2000

FINALISED SUBSTANTIATEDSUBSTANTIATED-FAULT OF EXTERNAL AGENCY

SUBSTANTIATED-WITHDRAWN

Number 1 394 471 8 915

% 100 33.8 0.6 65.6

Included in the privacy incidents investigated are cases of information fraud. The criterion used to identify these cases includes the elements of benefit or financial gain. Thesecases are prosecuted under the criminal sanctions imposed by provisions of the Social Security Act 1991, the Social Security (Administration) Act 1999, Student Assistance Act 1973 and the Crimes Act 1914 in relation to the unauthorised access to use or release of customer information. Criminal acts under these provisions would generally come within the definition of fraud as defined by the Commonwealth Law Enforcement Board in the ‘Best Practice for Fraud Control—Fraud Control Policy of the Commonwealth’.

Information fraud may also occur with the unauthorised release of staff information or other agency documents of a confidential or commercial-in-confidence nature where the above elements are present.

There is a considerable difference between the number of complaints made and the number which actually are proven to have substance. The use of Automatic Data Processing logging information was used to assist in proving or disproving an allegation in 779 of the 1394 cases finalised in 1999–2000.

Automatic Data Processing logging involves Centrelink retaining records of accesses by Centrelink officers to the computer data bases. The use of Automatic Data Processing logging information in the detection of breaches has provided investigation staff with a very accurate and positive investigative tool. Centrelink is able to provide substantial evidence to determine the guilt or innocence of a staff member who has allegedly breached a customer’s privacy. It also has the ability to substantiate to a customer whether the customer’s privacy has been breached through an unauthorised or improper access to customer records on payment systems.

Table 30: Types of Incidents Reported and number substantiated 1999–2000

TYPES OF INCIDENT REPORTED 1999-2000 NUMBER REPORTED FINALISED INCIDENTS

SUBSTANTIATED

Information Privacy Principles 1–3 Privacy Act 1988 12 1



Unauthorised Access—Browsing 522 114

Unauthorised Disclosure—Browsing 395 39

Unauthorised Use 16 8

Mail House Error 55 49

Misdirected Mail—Officer Error 211 194

Soliciting Disclosure 10 2

Untrue Representations 12 2

Survey Related Incident 9 2

Other 81 16

Total Incidents Reported 1416 471

Of the 1394 investigations finalised during 1999–2000, criminal charges were laid in two cases resulting in the officers being placed on Good Behaviour Bonds. Disciplinary action was undertaken against 102 members of staff, resulting in these officers being either dismissed, fined, counselled or having a warning letter issued to them. In other cases such as misdirected mail, feedback was provided and procedures addressed to prevent a recurrence of the incident.

(See also Chapter 10, Corporate Governance, page 133.)

Appendix viiiFreedom of Information

Information AccessRelease of Information Authorised by LawCentrelink releases information to law enforcement agencies and missing persons agencies in the public interest under ministerial guidelines issued in accordance with the Social Security Act 1991.

Centrelink also releases specific information to other government agencies in relation to jointly administered programs. Details of this information are provided on claims and notices issued by Centrelink under Information Privacy Principle 2 of the Privacy Act 1988.

Freedom of Information Practices and ProceduresCentrelink has instituted practices and procedures to improve the access of customers to their records and documents. A wide range of personal information documents are made available to customers outside the formal Freedom of Information (FOI) processes. This has provided a more timely and effective service to customers.

Requests from customers for more detailed documents or those involving third party information are still handled through the normal FOI processes. Decision making expertise and the necessary delegations to make decisions under the Freedom of Information Act 1982 are usually held in Centrelink Area Offices. This provides an effective and expert service to customers.

Each Customer Service Centre has a FOI contact officer, whose main duties include the release of documents outside the formal FOI process, providing advice to customers on how to lodge a formal FOI request, accepting requests, negotiating with customers about requests and providing access to documents. Selected officers in each Area undertake reviews of FOI decisions.

The Privacy and FOI Team in National Support Office manages the FOI function and maintains manuals and instructions. The team develops information guides and training packages for use in Customer Service Centres.

Freedom of Information Request StatisticsDuring 1999–2000, 6297 requests for access to documents under FOI were received by Centrelink and 6390 requests were answered. This figure includes unfinalised requests from 1998–99. A total of 440 remained outstanding at 30 June 2000. The figure of 6297 represents a decrease of 9 per cent from the previous year.

Of the requests finalised in the period:

61 per cent resulted in full access to the requested records; 26 per cent resulted in part access to requested records; 10 per cent were refused access; 9 cases were transferred to other agencies; and 188 cases were withdrawn by the applicant.

Of those applicants granted access, 30 sought an amendment to documents which they believed contained information which was incomplete, incorrect, out of date or misleading.

Of those requests for access under FOI which were finalised during the financial year, 69.5 per cent were finalised within the 30 days permitted. A further 15.8 per cent were finalised within 60 days.

Under the exemption provision of the Freedom of Information Act 1982, Centrelink may refuse to provide access to documents. The majority of exemptions claimed in 1999–2000 were to protect the confidentiality/privacy of third parties or other customers.

Freedom of Information Reviews and AppealsIn the past year, 98 requests were received for an internal review where the applicant was not satisfied with a decision about access. Of the reviews completed at the end of the year, there were 25 matters where access or part access was granted, and 65 where the original decision was affirmed.

Of those where the original decision was affirmed, 17 applicants requested a further review by the Administrative Appeals Tribunal. The result of matters with the Administrative Appeals Tribunal was:

one case where the original decision was varied; and Eight cases where the decision was dismissed.

Publication of Certain Documents and InformationSection 8 Freedom of Information Act 1982

IntroductionSection 8 of the Freedom of Information Act 1982 requires the publishing in the annual report of agency statements concerning:

particulars of the organisational structure and functions indicating decision making powers affecting members of the public;

arrangements for external input to the decision making process; the categories of documents that are maintained by the Agency; the facilities in place to assist members of the public to obtain access to documents of the Agency;

and Information about the procedures in place to assist in providing members of the public access to

documents.

Organisational Structure and Functions StatementInformation about the structure, functions and organisation of Centrelink is provided in Chapter 9 Corporate Overview, page 116.

Arrangements for External Individuals and Agencies to Provide Advice to CentrelinkIndividuals or organisations outside Centrelink’s administration may express their views about its policy formulation or about its administration of schemes.

This can be done by making representations to the Minister or the CEO or by being invited to serve on committees, working parties or advisory bodies which are established to provide the Minister or the CEO with advice on specific issues and programs.

Centrelink also receives comment and feedback on programs from various focus groups of community members organised by external consultants or Centrelink officers.

Categories of Documents Maintained by CentrelinkCentrelink makes manuals, instructions and guidelines available on request for inspection and purchase by the public. These can be purchased from Centrelink’s Online Reference Unit, Tuggeranong Office Park, Box 7788, Canberra Mail Centre, ACT 2610.

Centrelink has also complied with its obligation under the Freedom of Information Act 1982 to produce and update an index of all manuals and guidelines. The index is available for inspection at an Australian Archives ‘Information Access Office’in all capital cities.

Documents in the Possession of CentrelinkDocuments held by Centrelink may be categorised as:

separate records of decision making bodies such as agenda and minutes; separate records of Cabinet matters, including Cabinet submissions and Cabinet minutes; general correspondence and associated categories of documents according to subject matter; and Documents maintained separately which relate to administrative functions, for example, finance

and personnel documents, assets listings and payroll records.

None of these documents are:

open to the public as part of the public register or otherwise, in accordance with an enactment other than the Freedom of Information Act 1982, where that access is subject to a fee or other charge;

available for purchase by the public in accordance with arrangements made by Centrelink, with the exception of manuals, instructions or guidelines; or

Customarily made available to the public other than under the Freedom of Information Act 1982, free of charge on request.

Centrelink officers make forms and leaflets relating to payments and other services freely available to the public.

Facilities for Access to DocumentsCentrelink Customer Service Centres have facilities for inspection of documents accessed under the Freedom of Information Act 1982. Agency publications may also be inspected at these locations.

Information on these facilities can be obtained from the FOI Contact Officer in each Customer Service Centre, the FOI Action Officer in each Area Office or from the Business Manager, Privacy and FOI Team,in National Support Office.

Procedures for Gaining Access to DocumentsAll offices will provide, on request, access to some personal documents held by the office. This is outside of the formal FOI process.

Applications for access to documents under the Freedom of Information Act 1982 must be made by letter, statement or by completing a form. Centrelink has developed FOI request forms available in all customer service delivery offices, to ensure that requests for access to documents are handled quickly.

There are two forms. These are:

the form I want to access, or change my information about mewhich is used to request access via photocopies or inspection or make changes to documents; and

The form I want to ask for a Review which is used by applicants to appeal against and request an internal review of a decision about access to documents under Freedom of Information.

These forms have tear off leaflets that explain the FOI process and customer rights. These forms can be filled out in the office, where a FOI Contact Officer is available to assist, or can be posted out on request. Requests made under the Freedom of Information Act 1982 may be lodged at, or posted to, any Centrelink office.

General enquiries about FOI may be directed to the FOI Contact Officer in any Centrelink Customer Service Centre.

Appendix ixCompliance Activity Throughout the year a more focused approach to the prevention of fraud and the early detection of incorrect payments to customers has been taken. The establishment of the Centrelink/ATO Special Project Officers, the scope of feasibility studies currently being undertaken, and the extension of our data-matching capability, all contribute to this preventative strategy.

During 1999–2000, Centrelink completed 2 288 810 reviews of eligibility and entitlement on behalf of client agencies. These include 2 274 138 reviews of welfare payments for FaCS, and 1409 child care service reviews. A total of 13 263 reviews were conducted for DETYA.

As a result of this review activity there were 260 054 instances where incorrect payments were identified. FaCS payments were either reduced or cancelled on 254 634 occasions and reviews of DETYA payments led to rate variations in 5420 cases.

Savings to future outlays for FaCS payments totalled $34.7 million a fortnight, and savings of $3.9 million for the year were identified for DETYA payments.

During 1999–2000, 338 249 debts were raised as a result of this review activity to the value of $301.9 million. Of these, 331 810 were FaCS debts worth $293.1 million and 6439 were DETYA debts worth $8.8 million.

A total of 4023 cases were referred to the Director of Public Prosecutions for consideration of prosecution action during 1999–2000, of which 3967 were FaCS cases and 56 were DETYA cases.

During 1999–2000, 2964 cases were prosecuted through the courts. Of these, 2935 cases were prosecuted for FaCS fraud with a conviction rate of 98 per cent, and a further 29 cases were prosecuted for DETYA fraud resulting in a conviction rate of 97 per cent.

Within these overall figures there were the following highlights:

With regard to FaCS payments:

The Data-matching Program continued its strong performance with five datamatching cycles conducted in 1999–2000. This review activity resulted in the cancellation or reduction in the rate of 35 261 payments with 65 984 debts being raised. Savings to future outlays from these matches totalled $1.9 million a fortnight and $75.7 million in debts were identified for recovery action.

Employment Declaration Form reviews resulted in the cancellation or rate reduction of 34 079 payments. These reviews achieved fortnightly savings to future outlays of $6.3 million and identified debts totalling $123.4 million.

55 009 reviews were conducted from tip-offs received from the public resulting in 3911 cancellations to payment, with a further 10 602 rate reductions, and debts totalling $29.9 million being identified.

There were 2881 convictions recorded for welfare fraud involving $27.1 million.

With regard to DETYA payments:

Data-matching of enrolment details with educational institutions resulted in 3564 cases of savings to future outlays worth $2.5 million and 5556 cases of debts being identified to the value of $6.9 million.

There were 28 convictions recorded for fraud involving $176 426.

Report to Parliament The Minister tables reports in Parliament every six months on review activity undertaken by Centrelink of payments made on behalf of FaCS. This report and the press coverage it receives

increases the profile of the control activities being undertaken by Centrelink. This in turn helps ensure that FaCS payments are only received by those who are entitled to them.

In line with the deterrence provisions of the Fraud Control Policy of the Commonwealth, giving publicity to court cases of welfare fraud is also designed to create public recognition of the risks and penalties involved in attempting to defraud the system and to encourage voluntary compliance.

Enhanced Investigation InitiativeFollowing a national tender process, Centrelink contracted 21 companies to provide surveillance services on its behalf. Stringent privacy and security safeguards are in place to protect the information passed to companies during the period of the review. Probity checks were also made of the companies and their operatives.

In July 1999 Centrelink sent the first cases to the service providers. To the end of June 2000, a total of 1446 cases were referred to providers. Of these, 1063 have been finalised resulting in a debt or reduction in payment to 747 cases. Savings to future outlays as a result of cancellation or reduction of payments total $4.2 million. Debts of $4 million have been identified for recovery action. The initiative has a successful outcome in 70 per cent of cases and has a cost benefit ratio of 1:5.

The Enhanced Investigation Initiative has proven itself to be a success in providing evidence of fraudulent activity, which would not have been collected if traditional investigation methods had been used. It has proven that by using the evidence gathering power of this initiative, inroads can be made into areas of welfare fraud, such as those associated with the cash economy.

The publicity associated with this initiative encourages voluntary compliance and further enhances the integrity of the welfare system.

Outposted Centrelink OfficersIn 1999–2000 funding was provided to support 23 full-time Centrelink/ATO Special Project Officers within the ATO’s Branch Office structure. This initiative is designed to maximise the effectiveness of inter-agency cooperation in terms of both program savings to Centrelink and debt prevention activity.

The role of these officers is to assess information about Centrelink customers that would otherwise not be gained and, from this, to identify customers who may not be receiving their correct entitlement. Information exchange is conducted with full regard for the legislative provisions in place in both organisations including the Privacy Act 1988. The Centrelink officers have established a working relationship with ATO field audit and intelligence teams focusing on designated cash economy activities. The officers also undertake community activities in association with ATO staff in order to identify non-compliance and encourage voluntary compliance.

The project has proved a success with savings and debts of $6.7 million identified.

Feasibility Studies for Further Data-matching Funding was provided in the 1999 Federal Budget to conduct a feasibility study into data-matching with the Australian Stock Exchange Clearing House Electronic Sub-Register System to detect cases of undisclosed assets (share holdings) and State and Territory Superannuation Authorities to detect cases of undisclosed superannuation payments.

Customers across all Centrelink payment types were matched. The feasibility studies have confirmed the suitability of data to match with these agencies. The studies have also identified additional share registry data sources separate to the Australian Stock Exchange as well as more centralized superannuation information which is held by the ATO. An evaluation of both studies will be prepared early in 2000–01.

Assets Review PilotCentrelink undertook a pilot focusing on undisclosed assets. The pilot was based on data-matching information with the ATO and identified anomalies between details of properties advised to Centrelink and those advised to the ATO. The pilot has addressed a risk that Centrelink customers may not be fully disclosing assets which may affect their entitlement.

Specialist teams have been established in Brisbane and Adelaide to investigate these reviews.

The pilot identified $1.4 million in debts and savings to outlays.

Pilot of the NSW Missing Persons Unit For some years the Privacy Team within Centrelink has been assisting the police and voluntary agencies involved in searching for missing persons. In mid 1999 Centrelink was approached by the National Missing Persons Unit asking that it assist in conducting a national search for long-term missing persons.

The national pilot covered approximately 1500 persons and Centrelink was able to trace 10 per cent of these people—a successful outcome. Some missing persons records date back to the 1940s.

Previously, searches of Centrelink customer records were conducted on a manual basis for each missing person. This was seen to be a cumbersome process and a more efficient method was needed. The Detection and Review Team conducted a trial electronic search using its data-matching facilities and the concept proved to be both efficient and effective.

As a result of this success the National Missing Persons Unit asked Centrelink if it could conduct a regular electronic search for long-term cases. The concept of an electronic national search was put to and accepted by the National Police Consultative Group.

The pilot has since been extended to all State and Territory Police Missing Persons Units and in May 2000 a data-match was conducted on their behalf. The matched results have been returned to the relevant Missing Persons Units where the cases will be followed up.

Debt-related Activity

Debt Identification, Raising and RecoveryDuring 1999–2000, 1 462 129 debts were raised with the value of $794.6 million. Of these, 1 440 326 were FaCS debts worth $778.34 million (including compensation matters). A total of 15 219 were DETYA debts worth $13.39 million while an additional 6584 debts worth $2.87 million were raised on behalf of other government agencies.

Refunds/repayments to Centrelink for 1999–2000 totalled $653.97 million. Of this, $640.99 million was recovered against FaCS debts. An additional $2.14 million was recovered on behalf of other government agencies and $10.84 million was recovered against DETYA debts.

Centrelink recovered a total of $119.78 million under the compensation recovery provisions of the Social Security Act 1991 (included in the $640.99 million figure above).

Appendix xPurchasing ActivityUp until 30 June 2000, Centrelink purchasing has operated in a devolved and geographically dispersed purchasing network. Purchasing activities were primarily undertaken in three business units within the Centrelink organisational structure:

National Support Office; Area Support Offices; and Customer Service Centres.

National Support Office Centrelink currently operates a central procurement unit which conducts less complex purchasing activities for much of the National Support Office. A proposal has been developed which will require that all such purchases for the National Support Office be undertaken by that unit.

Purchasing is carried out in accordance with the Financial Management and Accountability Act 1996, Centrelink Chief Executive Instruction (CEI) and the Commonwealth Procurement Guidelines Core Policies and Principles. Purchases are made through the raising of Purchase Orders from the Agency’s Financial Management Information System (Infolink) and through the Australian Government Credit Card (Purchasing Card) for transactions less than $2000.

Customer Service Centres and Area Support OfficesApart from the purchasing card, all purchasing activity from 1 July 2000 has been centralised to a specialist purchasing unit in each Area Support Office. Some of these staff already have procurement competencies and experience in purchasing. An initial purchasing training program was completed in June 2000 to prepare staff for the transition to the new arrangements. Work is underway to commence higher level competency assessment for all Area Support Office purchasing staff.

This restructure has reduced costs for training and has enabled targeted policy implementation. It also has the added benefit of creating an identifiable and consolidated purchasing function in which, staff may be able to develop specialist skills.

Purchasing Card TransactionsCentrelink has approximately 1072 purchasing cards, each of which can be used for purchases up to $2000 in value. For the period 29 June 1999 to 30 June 2000 there were 20 096 individual transactions with an aggregate value of approximately $4.7 million (an average of $233.94 per transaction).

Complex Procurement Actions For the more complex purchases (usually consultancies valued at over $30 000 and goods/services valued at over $100 000), all requests regardless of where they originate throughout the Centrelink network, are routed through the National Purchasing and Contracts Unit in the National Support Office. That unit is staffed with experienced procurement and contracting specialists as well as an in-house contracts lawyer and is tasked with developing and providing tender and contract documentation and providing associated policy advice to project officers and delegates on key steps in the tendering and contracting process.

The volume of referrals to the National Purchasing and Contracts Unit in the six months to 30 June 2000 as compared to the six months to 31 December 1999, has increased by 45 per cent. There is recognition of the role of competitive tendering and contracting in contributing to Centrelink’s cost efficient operation. The routing of complex work through the National Purchasing and Contracts Unit allows a focus on these issues and affords the opportunity for value added from procurement specialists.

New Chief Executive InstructionOn 1 July 2000 a new ‘Chief Executive Instruction’ on complex procurement was released online located on CentreNet and is available to all staff. The new instruction includes:

reinforcement of the role of the National Purchasing and Contracts Unit in procurement and contracting activity;

best practice guidance on all aspects of the purchasing and contracting function including compliance with other government policies such as Affirmative Action, environmental purchasing and industry development;

commitment to ANZ/SME (Australian New Zealand/Small and Medium Enterprises) suppliers including a new policy that where all other evaluation considerations are equal, the ANZ product will be purchased;

all tenders valued at $5 million or more to contain the Commonwealth’s ‘model industry development criteria’; and

a focus on contract management through a chapter dedicated to that subject under the sponsorship of the National Contracts Management Unit (responsible for the management of Centrelink’s national contract managements).

Standard Documents ‘Standard Documents’ have been developed for tendering and contracting with the aim of improving consistency and protection across the organisation. Centrelink is evaluating the potential for those documents to be housed in a purpose built database designed to further improve the efficiency and effectiveness of compiling the documents and also speed up the implementation of changes to them.

National ContractsCentrelink has been increasing the number of national contracts primarily for support services such as property management, travel, managed voice services, photocopying and desktop printers and that trend is expected to continue.

These national contracts are subject to competitive tendering processes and managed by the National Contracts Management Unit in the National Support Office. This strategic approach to procurement in Centrelink is estimated to deliver significant savings and the benefits of the contracts are maximized with fewer contractual problems.

AuditsCentrelink has undertaken a program of audits to monitor the purchasing function with further audits planned in 2000–01.

Appendix xi Customer Charter Statusand Customer Feedback Handling Report

Centrelink’s Customer CharterCentrelink’s commitment to its Customer Charter was recognised when, in December 1999, it won the silver award for ‘Excellence in Integrating Service Charter-driven customer service outcomes with core business practices.’This was one of nine awards in three categories to Commonwealth agencies that competed in the inaugural Service Charters—Awards for Excellence in Customer Service scheme.


Following its second annual review, the third edition of the Customer Charter was issued in November 1999. The content of the Charter stood up very well to this round of consultation and review, with customers saying that its content is still relevant and important to them. Customers strongly supported the addition of a reference to the one-to-one service delivery approach introduced in 1999 because they saw it as a service priority and its inclusion in the Charter would create an image of a more personal approach to service.

To help raise awareness of the Customer Charter, a placemat version was developed and introduced in late 1999. The Customer Charter Placemat contains the key elements of the Charter and is intended to be displayed on the desktop of all customer service staff, facing the customer.

The Customer Charter was also made more accessible to customers whose first language is not English. A Customer Charter Fact Sheet was created and translated into 24 languages and made available to customers on Centrelink’s web site and to staff via the Intranet.

In March 2000, the third and most extensive annual review of the Customer Charter got underway. As usual, the review process involved consultation with customers, community groups, client departments and staff. The main focus for this review is possible inclusion of:

key service responsiveness standards (to complement the standards already included that described the quality of the Centrelink service experience);

some general corporate information (e.g. a brief description of Centrelink, a list of client departments, and the main methods of contacting Centrelink); and

an expanded section on customer appeal rights.

The fourth version of the Customer Charter is due to be released in September 2000.

Customer awareness of the Charter has risen by 4 per cent in the last year (from 8 per cent in May 1999 to 12 per cent in May 2000) but remains low. Further strategies are being either explored or implemented to further embed the Charter into the business over the next year.

Customer FeedbackThe Customer Charter encourages customers to provide feedback if they are happy or unhappy with our service. The four main ways that customers provide feedback to Centrelink are by either:

phoning the Customer Relations Line on Freecall™1800 050 004; completing a customer comment card (available at all Customer Service Centres); completing an online customer comment card found at the Centrelink web site

(www.centrelink.gov.au); and Speaking to any customer service officer in person.

Use of FeedbackInformation from feedback on customer service is used in the following ways:

referring the feedback to the action officer concerned; drawing the feedback to the attention of other staff; improving and changing the way things are done; and Feeding the response into Centrelink’s strategic planning and service improvement processes.

Feedback ActivityThe instances of feedback (not including general information calls) requiring issues to be resolved were much lower this year. This is because a large proportion of the 1998–99 feedback received included ‘Call Centre Busy’ complaints. The number of Call Centre Busy complaints reduced dramatically during 1999–2000 dropping as low as 193 in September (the previous year saw the figure exceed 7900 in a single month).

In 1999–2000 there were 66 000 instances of feedback requiring issues to be resolved compared to 90 782 during the previous 12 months.

A high proportion of customer contacts received by the 1800 Customer Relations staff are general information calls. Around 100 000 general information calls were received nationally. These calls averaged around 8000 per month and were in addition to customer feedback contacts.

Average Time to Resolve Feedback

Most feedback was addressed and resolved at the ‘tier one’ level or source of the complaint and within the standard for resolution at that level, which is two working days. During March and May 2000 the number of ‘tier two’ level complaints was higher than ‘tier one’ but these were also resolved within the standard which is five working days.

Feedback SystemCentrelink’s Customer Relations Line services are delivered nationally from 14 sites around the country (most are based in Area Offices). All customer complaints, compliments, suggestions and general information requests are recorded by Customer Relations staff onto a database at each site. At the end of each month the feedback is collated nationally and refined ready for reporting.

Improvements to Service Delivery Made as a Result of Customer Feedback Many improvements have been made as a result of customer feedback. Area South Australia for example, received a number of calls from customers complaining that they had not been able to do business with us on behalf of someone else. This was usually because their ‘permission to enquire’ had not been recorded on the customer’s record. After some investigation it was noted that ‘permission to enquire’was often overlooked by the customer service officer when recording customer details as it was not placed in a prominent section of our various forms. The forms were subsequently redesigned and the ‘permission to enquire’ section is now located at the signature block making it much easier for the customer service officer to see and then enter onto the customer’s record.

The Four Most Common Complaints disagree with assessment/decision delay in processing lack of respect/rude/unfriendly information inaccurate/incomplete/ambiguous

The Four Most Common Compliments friendly/helpful/respectful went out of way to help Centrelink services are excellent efficient

Links to Customer Feedback SystemIn conjunction with the Social Security Appeals Tribunal Centrelink has established a facility to link the tribunal with the Customer Feedback System. This enables tribunal members to provide feedback on service delivery issues which may come to their attention but which are not strictly relevant to the decision of a customer appeal.

Some Centrelink advocates took part in a pilot project conducted by the Administrative Appeals Tribunal, the early results of which indicate a significant reduction in the time taken to resolve disputes about entitlements. The advocacy team involved will continue to work within the shorter timeframes achieved for the pilot project and Centrelink is studying the possible application of the project elsewhere, with the cooperation of the tribunal.

Appendix xiiCustomer Satisfaction Performance TableCentrelink undertakes a comprehensive customer satisfaction research program. Overall, customer satisfaction has remained stable over 1999–2000.

Table 31: Overall Satisfaction (As measured by various Customer Satisfaction Surveys)

NOV 1999

%

MAY 2000

%

Overall Quality of Centrelink (including people, services and information)* 70.0 66.0

Overall Level of Service by Customer Service Centres (including quality of people, services and information)†

77.1 77.2

Overall Level of Service by Call Centres (including quality of people, services and information)‡

69.7 70.1

Overall Level of Service by International Services (including quality of people, services and information)§

95.5 94.0

Overall Level of Service by Visiting Service (including quality of people, services and information)†

N/A 79.7

Overall Level of Service by Community Agent/Agency (including quality of people, services and information)†

N/A 83.9

Centrelink staff overall* 78.0 77.0

Sources

* National Customer Satisfaction Survey (Millward Brown Australia).

† Customer Service Centre Customer Satisfaction Survey (Roy Morgan Research).

‡ Call Centre Customer Satisfaction Survey (Roy Morgan Research).

§ International Services Customer Satisfaction Survey (Roy Morgan Research).

Appendix xiiiCustomer Charter Performance TablesKey

A-CSC Customer Satisfaction Survey.

B-Call Centre Customer Satisfaction Survey.

C-International Customer Satisfaction Survey.

D-National Customer Satisfaction Survey.

Table 32: Customer Charter Performance for the Customer Service Network

A A B B C C D D

We will help you by:

Nov ’99 May ’00 Nov ’99 May ’00 Nov ’99 May ’00 Nov ’99

May ’00

1. Making it easy to access government services delivered by Centrelink

– Overall, how easy is it to access government services provided by Centrelink?* * * * * * * 58.0 59.0

2. Offering you a package of services and products that can help you with what is happening in your life

– How much did the package offered help you?* * * * * * * 73.0 73.0

3. Providing or referring you to other services you may need

– Were you referred to other services? (% said YES)

– Handling of referral

8.2

65.8

8.0

67.2

18.0

59.1

18.0

61.1

*

*

*

*

*

*

*

*

4. Having one person familiar with your situation who can be your on going point of contact to help you with business you can’t do over the phone:

– Satisfied with

*

*

*

*

*

*

*

*

*

*

*

*

92.0

8.0 91.0

9.0

A A B B C C D D



May ’00

the service

Of one-to-one contact?*

– Yes

– No

5 Making an appointment for you to visit us or for us to phone you at a time that suits you

– How would you rate the appointment system on: how well the time and date suited you?* * * * * * * 81.0 81.0

6. Identifying ourselves when we talk with you

– Did staff identify themselves to your satisfaction?

– Yes

–No

73.2

15.3

73.5

14.3

87.8

7.9

86.5

8.2

52.2

18.9

86.5

8.0

*

*

*

*

7. Listening carefully to what you say to us

– Communications skills listening 76.3 76.9 77.5 78.4 95.5 95.5 * *

8. Being friendly, helpful, respectful and sensitive to your individual needs

– Staff friendliness

– Staff helpfulness

–Way staff treated

79.9

80.1

80.4

61.3

80.1

80.6

80.1

61.7

82.4

79.0

80.8

59.0

83.0

79.0

80.5

58.5

98.0

94.5

96.5

77.1

97.0

96.0

95.0

89.0

*

*

*

*

*

*

*

*

A A B B C C D D



May ’00

you

– Understands customers’ needs

9. Explaining the things you need to know

– Communication skills—explaining 74.3 74.2 73.3 75.7 94.1 94.0 * *

10. Providing accurate and consistent information that is easy to understand

– Accuracy of information

– Consistency of information

– Information that is easy to understand*

70.0

63.0

*

71.2

63.4

*

67.0

61.4

*

68.4

62.2

*

84.1

88.0

*

89.1

88.0

*

*

*

73.0

*

*

65.0

11.Giving you prompt and efficient service

– Staff speed and efficiency 63.7 63.8 77.8 77.1 93.0 94.0 * *

12.Fixing mistakes

– Purpose of last visit/call to

fix a mistake

– Rating of mistake resolution

21.2

58.4

19.8

58.0

31.7

59.2

31.2

61.8

27.9

76.8

43.0

89.5

*

*

*

*

13. Improving our letters and

telephone services

– Letters overall*

*

*

*.

*

*

69.7

*

70.1

*

*

*

*

71.0

*

66.0

*

A A B B C C D D



May ’00

– Telephone service overall*

14. Making it clear what you need to do

– Explaining what you need to do 74.0 73.2 75.0 74.1 88.1 94.5 * *

GlossaryExplanation of terms used in the Report‘Life events’: A ‘life event’is a significant change that affects a person, family or community, which causes people to approach Centrelink for assistance. They include experiences such as having a baby, looking for a job, planning for retirement or arriving to settle in Australia.

‘One-to-one’: ‘One-to-one’refers to Centrelink’s new service delivery model, under which every customer has one main customer service officer who manages all the business that a customer cannot do over the phone.

Outcomes: The results the Government expects to achieve in a particular area.

Outputs: The goods and services an agency produces to contribute to the achievement of outcomes.

Explanation of acronyms and abbreviations used in the ReportAASW Australian Association of Social Workers

AAT Administrative Appeals Tribunal

ABA Australian Bankers’Association

ACM Accelerated Claimant Matching

AEC Australian Electoral Commission

AFFA Department of Agriculture, Fisheries and Forestry Australia

AGL Australian Gas and Light Company

AIC Assistance for Isolated Children

AM Member of the Order of Australia

ANAO Australian National Audit Office

APS Australian Public Service

ARO Authorised Review Officer

ATM Automated Teller Machine

ATO Australian Taxation Office

ATSI Aboriginal and Torres Strait Islander Commission

BHP Broken Hill Proprietary Company Limited

BSPVES Bass Strait Passenger Vehicle Equalisation Scheme

CDEP Community Development Employment Project

CD-ROM Computer Disk-Read-Only Memory

CEO Chief Executive Officer

CEPS Centrelink Education Payments System

CPSU Community and Public Sector Union

CSA Child Support Agency

CSDA Commonwealth Services Delivery Agency

CTC Competitive Tendering and Contracting

DETYA Department of Education, Training and Youth Affairs

DEWRSB Department of Employment, Workplace Relations and Small Business

DFAT Department of Foreign Affairs and Trade

DIMA Department of Immigration and Multicultural Affairs

DOCITA Department of Communications, Information Technology and the Arts

DoFA Department of Finance and Administration

DoTRS Department of Transport and Regional Services

DRP Disaster Relief Payment

DVA Department of Veterans’Affairs

ECRP Exceptional Circumstances Relief Payment

EEO Equal Employment Opportunity

EMG Emergency and General Assistance Payment system

EFTPOS Electronic Funds Transfer at Point of Sale

ESAS Education Student Assistance Scheme system

FaCS Department of Family and Community Services

FAO Family Assistance Office

FFRS Farm Family Restart Scheme

FIS Financial Information Service

FMA Financial Management and Accountability

FMIS Financial Management Information System

FOI Freedom of Information

FT full-time

FTE full-time equivalent

GIC Government Information Centre

GST Goods and Services Tax

HA State and Territory Housing Authorities

HACC Home and Community Care Health Department of Health and Aged Care

HIC Health Insurance Commission

HR Human Resource

IFSW International Federation of Social Workers

I&T Information and Technology (group or team)

IT Information Technology (system or application)

JET Jobs, Education and Training

MIFS More Intensive and Flexible Services

MOU Memorandum of Understanding

MP Member of Parliament

NESB non-English speaking background (or diverse cultural and linguistic background)

NSW New South Wales

NT Northern Territory

OH&S Occupational Health and Safety

PBS Portfolio Budget Statements

PC personal computer

PT part-time

PWD person with a disability

QLD Queensland

RAS Remote Access Services

REMOVE Reduced Employment Moving Test

RTC Rural Transaction Centre

SA South Australia

SAP Software Application Product

SBS Special Broadcasting Service

SES Senior Executive Service

TAS Tasmania

TFES Tasmanian Freight Equalisation Scheme

TIGERS Trials of Innovative Government Electronic Regional Services

TILP Team and Individual Learning Plan

TSG Tasmanian State Government

USA United States of America

VIC Victoria

WA Western Australia

CENTRELINK ANNUAL REPORT 1999 – 2000 · Web viewOverall, customer satisfaction has risen...

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